2012 Comprehensive Annual Financial Report - the City of Tukwila
2012 Comprehensive Annual Financial Report - the City of Tukwila 2012 Comprehensive Annual Financial Report - the City of Tukwila
CITY OF TUKWILA: 2012 CAFRMANAGEMENT’S DISCUSSION AND ANALYSISArterial street overlay and work on bridges contributed the additional $1.4 million in capital assets.Land Acquisition, Recreation & Park Development activities consist of $1.1 million in land acquisitionfor the Duwamish Hill Preserve and improvements. Several projects have added $270,736 inconstruction in progress costs for the year.Other governmental funds’ activity provided an additional $472,215 in capital assets and $266,348 inwork in progress for the year. The Neighborhood Resource Center improvements, City HallPolice/Suite 205/Conference Room #3 remodels, and various software and licensing purchases aresome of the completed projects in 2012.Business-type activities consisted of $1.5 million in additional construction in progress work for theyear. Major projects in the utility funds comprise of the following: Small Drainage Projects, $883,000 Southcenter Parkway Extension, $403,000 Andover Park West Strander, $106,000A total of $143,000 in purchases of meters, hydrants, mains, intakes and service connections werecapitalized for the year.Long-term DebtAt the end of the current fiscal year, the City had total bonded debt outstanding of $21,900,000. Ofthis amount, $18,360,000 is general obligation bonds, and $3,540,000 is revenue bonds for thewater/sewer and surface water utilities. The reduction in outstanding bonds is due to the principalpayments redeemed for the year. The City currently maintains a rating of A1 with Moody’s and AAwithFitch’s Investor Service for its general obligation debt.The following schedule summarizes the City’s bonded debt:Governmental Activities Business-type Activities TotalAs of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11General obligation bonds $ 18,360,000 $ 20,260,000 $ - $ - $ 18,360,000 $ 20,260,000Revenue bonds - - 3,540,000 3,980,000 3,540,000 3,980,000$ 18,360,000 $ 20,260,000 $ 3,540,000 $ 3,980,000 $ 21,900,000 $ 24,240,000Below is a summary of additional long-term debt of the City:Other Long-term DebtPublic Works Trust Fund loans $ 6,621,364Employee leave benefits 3,452,943Due to other governments$7,392,60017,466,907More detailed information on long-term debt is provided in Note 11.28
CITY OF TUKWILA: 2012 CAFRMANAGEMENT’S DISCUSSION AND ANALYSISEconomic FactorsThe outlook for 2013 is positive. The economy is showing steady signs of recovery. The City ofTukwila has a small residential population, yet the City works hard to serve the regional economyand has become an economic powerhouse providing jobs and revenue for the region and State.Several major pending developments will have significant positive impacts on the future of Tukwila’seconomy: Tukwila South – In 2009, the City executed development agreements and completedannexation of 259 acres as part of the 500 acre Tukwila South development. Developmentactivities in 2012 were minimal. The new Southcenter Parkway Extension project wascompleted in 2012 and will allow for the future development to continue.Tukwila Village - On June 6, 2011 the City Council selected Tukwila Village DevelopmentAssociates, LLC (also known as the Senior Housing Assistance Group or “SHAG”) as thedeveloper and authorized the Mayor to enter into negotiations. In June 2012 the Board of theKing County Library System (KCLS) voted to undertake a fundraising program to increasethe size of the future Tukwila Library to be 10,000 square feet. The key deal terms betweenthe City and KCLS were approved by City Council on June 25, 2012.On October 22, 2012, City Council approved the main agreement (Disposition andDevelopment Agreement, DDA). Project design is scheduled to be completed in 2013 withconstruction starting in 2013. The first phase is scheduled to open in late 2014 and the finalphase in 2015.Tukwila Urban Center Access – Designed to improve traffic flow, Southcenter Parkwayreopened on October 13, 2011. The preliminary assessment roll for Local ImprovementDistrict No. 33 to fund a portion of the project is estimated to be $9.9 million and theassessment is scheduled for 2013.Major Tenant Improvements/Additions – Tenant improvements and additions werecompleted for Sabey Data Center, Boeing renovation, King County Housing Authority, andre-roofing of King County Metro and Boeing. Completed demolitions for the year includeBow Lake and Boeing Plant 2. This added $235,651 in revenue receipts, which added $19.7million in property values.Requests for InformationThis financial report is designed to provide a general overview of the City of Tukwila’s finances forreaders with an interest in the City’s finances. Questions concerning this report, or requests foradditional information, may be addressed to the Finance Director, City of Tukwila, 6200 SouthcenterBlvd, Tukwila, WA 98188-2544.29
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CITY OF TUKWILA: <strong>2012</strong> CAFRMANAGEMENT’S DISCUSSION AND ANALYSISArterial street overlay and work on bridges contributed <strong>the</strong> additional $1.4 million in capital assets.Land Acquisition, Recreation & Park Development activities consist <strong>of</strong> $1.1 million in land acquisitionfor <strong>the</strong> Duwamish Hill Preserve and improvements. Several projects have added $270,736 inconstruction in progress costs for <strong>the</strong> year.O<strong>the</strong>r governmental funds’ activity provided an additional $472,215 in capital assets and $266,348 inwork in progress for <strong>the</strong> year. The Neighborhood Resource Center improvements, <strong>City</strong> HallPolice/Suite 205/Conference Room #3 remodels, and various s<strong>of</strong>tware and licensing purchases aresome <strong>of</strong> <strong>the</strong> completed projects in <strong>2012</strong>.Business-type activities consisted <strong>of</strong> $1.5 million in additional construction in progress work for <strong>the</strong>year. Major projects in <strong>the</strong> utility funds comprise <strong>of</strong> <strong>the</strong> following: Small Drainage Projects, $883,000 Southcenter Parkway Extension, $403,000 Andover Park West Strander, $106,000A total <strong>of</strong> $143,000 in purchases <strong>of</strong> meters, hydrants, mains, intakes and service connections werecapitalized for <strong>the</strong> year.Long-term DebtAt <strong>the</strong> end <strong>of</strong> <strong>the</strong> current fiscal year, <strong>the</strong> <strong>City</strong> had total bonded debt outstanding <strong>of</strong> $21,900,000. Ofthis amount, $18,360,000 is general obligation bonds, and $3,540,000 is revenue bonds for <strong>the</strong>water/sewer and surface water utilities. The reduction in outstanding bonds is due to <strong>the</strong> principalpayments redeemed for <strong>the</strong> year. The <strong>City</strong> currently maintains a rating <strong>of</strong> A1 with Moody’s and AAwithFitch’s Investor Service for its general obligation debt.The following schedule summarizes <strong>the</strong> <strong>City</strong>’s bonded debt:Governmental Activities Business-type Activities TotalAs <strong>of</strong> 12/31/12 As <strong>of</strong> 12/31/11 As <strong>of</strong> 12/31/12 As <strong>of</strong> 12/31/11 As <strong>of</strong> 12/31/12 As <strong>of</strong> 12/31/11General obligation bonds $ 18,360,000 $ 20,260,000 $ - $ - $ 18,360,000 $ 20,260,000Revenue bonds - - 3,540,000 3,980,000 3,540,000 3,980,000$ 18,360,000 $ 20,260,000 $ 3,540,000 $ 3,980,000 $ 21,900,000 $ 24,240,000Below is a summary <strong>of</strong> additional long-term debt <strong>of</strong> <strong>the</strong> <strong>City</strong>:O<strong>the</strong>r Long-term DebtPublic Works Trust Fund loans $ 6,621,364Employee leave benefits 3,452,943Due to o<strong>the</strong>r governments$7,392,60017,466,907More detailed information on long-term debt is provided in Note 11.28
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