2013–2014 BIENNIAL BUDGET - the City of Tukwila

2013-2014 Biennial Budget City of Tukwila, WashingtonCapital BudgetThe capital budget authorizes and provides the basis of control of expenditures for the acquisition ofsignificant city assets and construction of capital facilities.Separation of the budget into these two components separates key policy issues in order to facilitate theirconsideration. The policy officials can examine the level at which existing programs should be funded,what program improvements should be made and at what level of funding.Capital PlanningThe Capital Improvement Program (CIP) was originally adopted as an element of the CityComprehensive Plan that provides the City’s plans to finance capital facilities that will be needed duringthe next 20 years. The CIP includes both long-range strategy and a specific six-year plan of projects. TheCIP is maintained and reports are published separately from the budget. The Capital Budget, in thisbudget document, includes a summary of the projects and their appropriations for the upcomingbiennium. For more detailed information see the Financial Planning Model and Capital ImprovementProgram.Implementation, Monitoring and AmendmentThe financial aspects of the budget are monitored in periodic reports issued by the Finance Departmentcomparing actual expenditures and revenues with the budget. In these reports, financial data can bepresented at a higher level of detail than the final budget. These reports include an analysis of the City’sfinancial condition.From time to time it becomes necessary to modify the adopted budget. The procedure for amending thebudget depends upon the type of change that is needed. One type of change does not affect the “bottomline” total for a department or a fund. These changes, mainly transfers from one line-item to anotherwithin a department’s operating budget or changes between divisions within a department is presentedby administration to City Council for their consideration and approval.The second type of budget amendment brings about a change in the total appropriation for a departmentor fund. Examples of these changes include but are not limited to the following: the acceptance ofadditional grant money, an adjustment to reflect increased revenues such as tax receipts, theappropriation of additional funding if expenditures are projected to exceed budgeted amounts, and reappropriationof monies from one fund to another when deemed necessary. These changes requirecouncil approval in the form of an ordinance. The status of the budget is comprehensively analyzedduring the mid-biennial review and periodically through each year to identify any needed adjustments.All requests for amendments are first filed with the Finance Department.Basis of BudgetingAll governmental fund type budgets are prepared on the modified accrual basis of accounting inconformity with generally accepted accounting principles (GAAP). The budget for proprietary funds isprepared on an accrual basis, also in accordance with GAAP. The legal level of budgetary control whereexpenditures cannot exceed appropriations is at the individual fund level. Revisions that alter the totalexpenditures of any fund must be approved by the City Council and adopted by ordinance.Chapter 35.33 of the Revised Code of Washington (RCW) mandates the City’s budget procedures. Thebudget, as adopted biennially by the City Council, constitutes the legal authority for expenditures. TheCity’s budget is adopted at the fund level and expenditures may not legally exceed appropriations atthat level of detail.Page 35