2012 Comprehensive Annual Financial Report - the City of Tukwila

CITY OF TUKWILA: 2012 CAFRNOTES TO THE FINANCIAL STATEMENTSThe share of equity belonging to the five participating cities is as follows:ITEM RENTON KENT AUBURN TUKWILAFEDERALWAYTOTALEquity January 1, 2012 $ 4,996,753 $ 7,052,093 $ 4,723,727 $ 2,812,717 $ 3,258,408 $ 22,843,698Current Year Increase/(Decrease 65,681 87,685 59,850 30,690 66,176 310,082Equity December 31, 2012 $ 5,062,434 $ 7,139,778 $ 4,783,577 $ 2,843,407 $ 3,324,584 $ 23,153,780Percent of Equity 21.86% 30.84% 20.66% 12.28% 14.36% 100.00%Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. InAugust 1993, Valley Com entered into an interlocal cooperation agreement, pursuant to RCW 39.34RCW, with the subregions of King County, Seattle, and the Eastside Public Safety CommunicationsAgency. This agreement governs the development, acquisition and installation of the 800 MHzemergency radio communications system funded by a $57 million King County levy approved inNovember 1992. This agreement provides that upon voluntary termination of any subregion’sparticipation in the system, it surrenders its radio frequencies, relinquishes its equipment and transfersany unexpended levy proceeds and associated equipment replacement reserves to another subregion orconsortium of subregions. Thus, in accordance with this agreement, the participating cities of Valley Comhave no equity interest in Valley Com’s 800-MHz communications system.During 2000, the Valley Communications Center Development Authority was created to issue$12,758,000 in General Obligation Bonds to finance construction, equipment, and land for a new facilitycompleted in 2002. Each of the five participating cities is responsible for one-fifth of the debt obligation,which originally was $2,551,600 per City. The basic agreement shall not be terminated until all bondsissued by Valley Communications Center Development Authority have been paid and retired.A complete set of financial statements are available from Valley Communications Center, 27519 108 thAve SE, Kent, WA 98030, or by telephone 253-372-1300.South Correctional Entity (SCORE)The South Correctional Entity (SCORE) consolidated correctional facility was established February 25,2009, when an interlocal agreement (the “Original Interlocal Agreement”) was entered into by sevenparticipating municipal governments, the “Member Cities” of Auburn, Burien, Des Moines, Federal Way,Renton, SeaTac and Tukwila, under the authority of the Interlocal Cooperation Act (RCW 39.34). This“Original Interlocal Agreement” was amended and restated October 1, 2009 and named the City of DesMoines as the “Host City” and the remaining Member Cities as “Owner Cities”. This interlocal agreementis known as the “Formation Interlocal Agreement”. Pursuant to a separate “Host City Agreement” datedOctober 1, 2009, the Host City will not enjoy the same equity position as the Owner Cities until all debtsissued are paid and the Host City fulfills all of its obligations as outlined in the Agreement.SCORE, a governmental administrative agency pursuant to RCW 39.34.030 (3), has the power toacquire, construct, own, operate, maintain, equip, and improve a correctional facility known as the“SCORE Facility” and to provide correctional services and functions incidental thereto, for the purpose ofdetaining arrestees and sentenced offenders in the furtherance of public safety and emergencies within77