2013–2014 BIENNIAL BUDGET - the City of Tukwila

2013-2014 Biennial Budget City of Tukwila, Washington2013-2018 Plan HighlightsIn developing Attachment A, assumptions have been made on future economic conditions andother factors influencing revenue growth. The 2013-2018 projection assumes a gradual butcontinual improvement in the local economy creating growth in the retail and new constructionsectors and increasing employment in the area. The operating expenditure projections reflectprogressive cost containment measures.The projection rates were developed using information known about the City and the currentstate of the economy at the time this document was published. If economic indicators changeand/or the City changes financial priorities, these projections will need to be updated.Budgeted operating revenues, excluding one-time revenues, reflect modest growth of 2.1% overthe biennial period. Property and retail sales taxes are expected to increase due to a potentialannexation; utility rate increases are expected to generate more utility tax revenue; collection ofback gambling tax increased the budget for this revenue item.Budget highlights include appropriations for public safety of over $1 million in new programs toreduce crime by hiring five new Police Department employees, expanding Urban Renewalholdings, continued funding for the Neighborhood Resource Center, equipment and support forthe International Boulevard bicycle patrol, additional staffing to enforce the Chronic NuisanceOrdinance and Code Enforcement. Funding is appropriated for public outreach as an extensionof the strategic planning efforts. Technology initiatives including funding for the new permitsystem, laptop upgrades to enable communication with the new Valley Communication system,site licensing for software programs and membership to an on-line web based applicationsystem.The budget also reflects the consolidation of replacement reserve activities, whereby all Cityequipment, including fire engines, will be part of one replacement program in the EquipmentRental & Replacement fund. City vehicles with low usage have been identified and surplused toreduce carrying costs. Two new fire engines have been budgeted for purchase in this biennium.Budget and projections for the planning period, 2013-2018, include $4.9 million for residentialstreet improvements some of which has been earmarked for sidewalks.GENERAL REVENUESSales TaxThis revenue category includes retail sales tax, criminal justice sales tax and natural gas use taxand sales tax mitigation. Retail sales tax has historically comprised 94% to 96% of this revenuecategory, excluding the sales tax mitigation. The sales tax estimate for 2013 reflects a 1.7%increase from 2012 budget. Growth of 1.5% is expected in 2015 and 3% in 2016 through 2018 fortaxes other than the sales tax mitigation.Sales tax mitigation is paid to the City by the State. To offset a revenue shortfall, the Statereduced the sales tax mitigation payments for their 2011-2013 biennium by 3.4% annually. The3.4% reduction is reflected in the 2013 budgeted amount. The sales tax mitigation is not expectedto grow over this period due to state budgetary constraints.Page 349