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HomeMy WebLinkAboutCity Council Committees - Operations - 11/06/2012 • KEN T WASH NOTON Operations Committee Agenda Councilmembers: Dennis Higgins * Jamie Perry * Les Thomas, Chair November 6, 2012 4:00 p.m. Item Description Action Speaker Time Page 1. Approval of Minutes YES 1 Dated, October 16th, 2012 2. Approval of Check Summary YES Report dated October 1st, 2012 thru October 15th , 2012 3. B & O Gross Receipts and YES Tom Brubaker 15 Min 3 Administrative Provisions — Ordinance-Adopt 4. Financial Summary Report as of NO Bob Nachlinger 5 Min 89 September 30th, 2012 (Information only) Unless otherwise noted, the Operations Committee meets at 4:00 p.m. on the first and third Tuesday of each month. Council Chambers East, Kent City Hall, 220 4th Avenue South, Kent, 98032-5895. Dates and times are subject to change. For information please contact Satwinder Kaur at (253) 856-5705. Any person requiring a disability accommodation should contact the City Clerk's Office at (253) 856-5725 in advance. For TDD relay service call the Washington Telecommunications Relay Service at 1-800-833-6388. This page intentionally left blank 1 T WgBHIN OPERATIONS gpm AT COMMITTEE MINUTES October 1 , 212 Committee Members Present: Les Thomas, Chair, Dennis Higgins and Jamie Perry The meeting was called to order by L. Thomas at 4:02 p.m. 1. APPROVAL OF MINUTES DATED SEPTEMBER 18, 2012 J. Perry moved to approve the Operations Committee minutes dated September 18, 2012. D. Higgins seconded the motion, which passed 3-0. 2. APPROVAL OF CHECK SUMMARY REPORT DATED SEPTEMBER 16, 2012 THROUGH SEPTEMBER 30, 2012. D. Higgins moved to recommend that the City Council approve the Check Summary Report dated September 16, 2012 thru September 30, 2012. J. Perry seconded the motion, which passed 3-0. 3. CONSULTANT SERVICE AGREEMENT- JABEZ & ASSOCIATES DBA THE EDGE ADVISORY GROUP L. Patterson presented the consultant agreement for the advisory group to conduct Cultural Competency training for the City of Kent. The training is done in three different phases. First phase is an intensive phase with senior management team. This phase is a 2 day seminar which includes where we are, how we got there and where we want to be and how to get there. That will help with the curriculum for training the employees. All employees will be trained by 2014. It is a 3 year agreement. Six companies applied to the RFP and four were chosen to come to the interview. The Edge Advisory Group was the best fit for this service. The City employees did not have cultural competency training even though there was diversity training available for the employees. Motion by J. Perry, seconded by D. Higgins, to move to recommend that the Mayor be authorized to enter into a consultant services agreement with Jabez and Associates dba The Edge Advisory Group which provides training and delivers a tactical approach to support the city of Kent in achieving the strategic goal of fostering inclusiveness, in an amount not to exceed $40,000 per year for 2012, 2013, and 2014. The motion passed 3-0. 4. FINANCIAL SUMMARY REPORT AS OF AUGUST 31sT1 2012 B. Nachlinger explained that there is an increase in General Fund of $638,000 for the year. That is up by 160,000 from last month. We are anticipating revenues to be down about $490,000 from budget and expenses to be down as well. Dennis asked if this is before the changes that take affect November 1st. and B. Nachlinger replied that is correct. Dennis asked if there is a way to turn this economy around with Sales tax. Bob replied that the internet sales are up and the big discount stores are doing fairly well. We do not have big discount stores in the City of Kent so it does not 2 Operations Committee Minutes September 18, 2012 Page: 2 help with our revenues. The committee members, B. Nachlinger and Mayor discussed the budget issues. The meeting was adjourned at 4:20 p.m. by L. Thomas. r Satwinder Kaur Operations Committee Secretary 3 LAW DEPARTMENT Tom Brubaker, City Attorney Phone: 253-856-5782 KENT Fax: 253-856-6770 WASHING70N Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 November 6, 2012 To: Operations Committee From: Tom Brubaker, City Attorney Regarding: B & O Gross Receipts and Administrative Provisions - Ordinance-Adopt MOTION: Recommend repealing the prior business and occupation tax ordinance numbers 4052 and 4053 and replace them with two revised and amended ordinances that re-establish a business and occupation tax, together with a square footage tax component, and related administrative provisions. SUMMARY: At discussion during a council workshop, it appeared that council preferred to eliminate the $80 registration fee. Accordingly, staff has eliminated that fee. See section 3.29.030. Because council has not had an opportunity to consider this amendment, the proposed ordinance is offered as a draft for discussion. Additionally, at the request of some members of the business warehouse community, staff slightly shifted the structure of the tax to clarify that these ordinances are, primarily, a business and occupation tax and that the square footage tax component is ancillary to the B&O tax. As a result, the square footage tax only comes into play if it exceeds the taxpayer's B&O tax, and then only the amount of square footage tax that exceeds the B&O tax becomes due and payable. Finally, we clarified, pursuant to council direction, that the $62,500 quarterly gross receipts total is an exemption, not a threshold, and we created a threshold for application of the square footage tax. Under that threshold, the square footage tax only becomes potentially due and payable if the business has over 4000 square feet of warehouse space or 12,000 square feet of"other business" space. Again, staff from both the finance and the law departments will be available to answer questions. BUDGET IMPACT: Income from revenues, expenses related to implementation and financial management. 1 4 ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, repealing Ordinance No. 4052 and adopting a new Chapter 3.28 to the Kent City code entitled, "Business and Occupation Tax Gross Receipts," and establishing an effective date. RECITALS A. One of the most important functions of a government, including municipal government, in setting and implementing tax policy is to strive for fairness, consistency, equity, and efficiency. B. In recognition of concerns over the business and occupation (B & O) tax, and legislative debates over how to address those concerns, the Association of Washington Cities (AWC) and six B & O tax jurisdictions formed a Task Force to analyze these issues. C. The Task Force, with the concurrence of the majority of other Washington cities levying gross receipts B & O taxes, has developed a model ordinance that creates greater uniformity and consistency among city gross receipts business and occupation taxes; includes a system of deductions to prevent multiple taxation of the same gross receipts; makes the city gross receipts business and occupation taxes simpler, more 1 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 5 predictable, and easier to administer; provides examples of activities that constitute "engaging in business" and establishes safe harbors for de minimis activities that a person may engage in without having to register or becoming subject to tax; and contains sufficient flexibility to provide local control over the city tax structure. D. The model ordinance also strives to minimize any major revenue impact on cities levying gross receipts B & O tax; and retains local control over B & O tax rates, thus preserving "local control" and revenue- protection measure that are critical to all cities in the State of Washington. E. Adoption of the model ordinance is also vital in demonstrating to the Washington State Legislature that cities are sensitive to legitimate complaints over the local B & O tax and are serious about ensuring that it more fairly, equitably, consistently, and efficiently administered. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. - -Repealer. Ordinance No. 4052 is hereby repealed in its entirety. SECTION 2. - Amendment. Title 3 of the Kent City Code is amended to adopt a new Chapter 3.28, entitled "Business and Occupation Tax - Gross Receipts," as follows: CHAPTER 3.28 Business and Occupation Tax - Gross Receipts 2 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 6 Sec. 3.28.010. Purpose. This section implements Washington Constitution Article XI, Sec. 12 and RCW 35A.82.020 and 35A.11.020, which gives municipalities the authority to license for revenue. In the absence of a legal or constitutional prohibition, municipalities have the power to define taxation categories as they see fit in order to respond to the unique concerns and responsibilities of local government. The city of Kent has developed over the last half century into a major manufacturing/warehousing hub. However, due to recent changes in sales tax and property tax laws, the city no longer receives sufficient revenue from warehousing activities to support the transportation infrastructure needed to serve warehouse activities. As a result, the city no longer generates sufficient revenue to maintain the level of general city services that supports this business base, and to maintain and operate its considerable past investment in local streets and arterial infrastructure. This ordinance, then, is intended to generate additional revenue to maintain, repair, and operate the city's existing transportation network in order to fairly allocate the cost to provide those services and to maintain that infrastructure to those business entities that contribute most to the use and degradation of city streets. Sec. 3.28.020. Exercise of revenue license power. The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the city code. Sec. 3.28.028. Administrative Provisions. The administrative provisions contained in chapter 3.29 shall be fully applicable to the 3 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 7 provisions of this chapter except as expressly stated to the contrary herein. Sec. 3.28.030. Definitions. In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular. A. "Advance," "reimbursement." (1) "Advance" means money or credits received by a taxpayer from a customer or client with which the taxpayer is to pay costs or fees on behalf of the customer or client. (2) "Reimbursement" means money or credits received from a customer or client to repay the taxpayer for money or credits expended by the taxpayer in payment of costs or fees of the customer or client. B. "Agricultural product," "farmer." (1) "Agricultural product" means any product of plant cultivation or animal husbandry including, but not limited to: A product of horticulture, grain cultivation, vermiculture, viticulture, or aquaculture as defined in RCW 15.85.020; plantation Christmas trees; turf; or any animal including but not limited to an animal that is a private sector cultured aquatic product as defined in RCW 15.85.020, or a bird, or insect, or the substances obtained from such an animal. "Agricultural product" does not include animals intended to be pets. (2) "Farmer" means any person engaged in the business of growing or producing, upon the person's own lands or upon the lands in which the person has a present right of possession, any agricultural product whatsoever for sale. "Farmer" does not include a person using such products as ingredients in a manufacturing process, or a person growing or producing such products for the person's own consumption. 4 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 8 "Farmer" does not include a person selling any animal or substance obtained therefrom in connection with the person's business of operating a stockyard or a slaughter or packing house. "Farmer" does not include any person in respect to the business of taking, cultivating, or raising timber. C. "Business." "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. D. "Business and occupation tax." "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business. E. "Commercial or industrial use." "Commercial or industrial use" means the following uses of products, including by-products, by the extractor or manufacturer thereof: (1) Any use as a consumer; and (2) The manufacturing of articles, substances or commodities; F. "Competitive telephone service." "Competitive telephone service" means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made. G. "Consumer." "Consumer" means the following: 5 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 9 (1) Any person who purchases, acquires, owns, holds, or uses any tangible or intangible personal property irrespective of the nature of the person's business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for a consumer other than for the purpose of: (a) resale as tangible or intangible personal property in the regular course of business; (b) incorporating such property as an ingredient or component of real or personal property when installing, repairing, cleaning, altering, imprinting, improving, constructing, or decorating such real or personal property of or for consumers; (c) incorporating such property as an ingredient or component of a new product or as a chemical used in processing a new product when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new product; or (d) consuming the property in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; (2) Any person engaged in any business activity taxable under section 3.28.050(21)(g); (3) Any person who purchases, acquires, or uses any competitive telephone service as herein defined, other than for resale in the regular course of business; (4) Any person who purchases, acquires, or uses any personal, business, or professional service defined as a retail sale or retail service in section 3.28.030, other than for resale in the regular course of business; (5) Any person who is an end user of software; 6 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 10 (6) Any person engaged in the business of "public road construction" in respect to tangible personal property when that person incorporates the tangible personal property as an ingredient or component of a publicly-owned street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle by installing, placing or spreading the property in or upon the right- of-way of a publicly-owned street, place, road, highway, easement, bridge, tunnel, or trestle or in or upon the site of a publicly-owned mass public transportation terminal or parking facility; (7) Any person who is an owner, lessee or has the right of possession to or an easement in real property which is being constructed, repaired, decorated, improved, or otherwise altered by a person engaged in business; (8) Any person who is an owner, lessee, or has the right of possession to personal property which is being constructed, repaired, improved, cleaned, imprinted, or otherwise altered by a person engaged in business; (9) Any person engaged in "government contracting." Any such person shall be a consumer within the meaning of this subsection in respect to tangible personal property incorporated into, installed in, or attached to such building or other structure by such person. Nothing contained in this or any other subsection of this section shall be construed to modify any other definition of "consumer." H. "Delivery" means the transfer of possession of tangible personal property between the seller and the buyer or the buyer's representative. Delivery to an employee of a buyer is considered delivery to the buyer. Transfer of possession of tangible personal property occurs when the buyer or the buyer's representative first takes physical control of the 7 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 11 property or exercises dominion and control over the property. Dominion and control means the buyer has the ability to put the property to the buyer's own purposes. It means the buyer or the buyer's representative has made the final decision to accept or reject the property, and the seller has no further right to possession of the property and the buyer has no right to return the property to the seller, other than under a warranty contract. A buyer does not exercise dominion and control over tangible personal property merely by arranging for shipment of the property from the seller to itself. A buyer's representative is a person, other than an employee of the buyer, who is authorized in writing by the buyer to receive tangible personal property and take dominion and control by making the final decision to accept or reject the property. Neither a shipping company nor a seller can serve as a buyer's representative. It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property. Delivery terms and other provisions of the Uniform Commercial Code (Title 62A RCW) do not determine when or where delivery of tangible personal property occurs for purposes of taxation. I. "Director." "Director" means the finance director of the city or any officer, agent or employee of the city designated to act on the director's behalf. J. "Digital automated service," "digital code," and "digital goods." "Digital automated service," "digital code," and "digital goods" have the same meaning as in RCW 82.04.192. K. "Digital products." "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(b). 8 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 12 L. "Eligible gross receipts tax." The term "eligible gross receipts tax" means a tax which: (1) Is imposed on the act or privilege of engaging in business activities within section .050; and (2) Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax; and (3) Is not, pursuant to law or custom, separately stated from the sales price; and (4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and (5) Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a country, state, province, or any other non-local jurisdiction above the county level. M. "Engaging in business." (1) The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2) This section sets forth examples of activities that constitute engaging in business in the city, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the city without having to register and obtain a business license or pay city business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1). If an activity is not listed, whether it constitutes engaging in business in the city 9 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 13 shall be determined by considering all the facts and circumstances and applicable law. (3) Without being all inclusive, any one of the following activities conducted within the city by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license. (a) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the city. (b) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the city. (c) Soliciting sales. (d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. (e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing, or supervising installation or construction of, real or tangible personal property. (g) Soliciting, negotiating, or approving franchise, license, or other similar agreements. (h) Collecting current or delinquent accounts. (i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. U) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system 10 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 14 services, surveying, and real estate services including the listing of homes and managing real property. (k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. (1) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (m) Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the city, acting on its behalf, or for customers or potential customers. (n) Investigating, resolving, or otherwise assisting in resolving customer complaints. (o) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (p) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (q) Accepting or executing a contract with the city, irrespective of whether goods or services are delivered within or without the city, or whether the person's office or place of business is within or without the city. (4) If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the city but the following, it need not register and obtain a business license and pay tax. (a) Meeting with suppliers of goods and services as a customer. 11 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 15 (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business, such as a member of a board of directors who attends a board meeting. (d) Renting tangible or intangible property as a customer when the property is not used in the city. (e) Attending, but not participating in a "trade show" or "multiple vendor events". Persons participating at a trade show shall review the city's trade show or multiple vendor event ordinances. (f) Conducting advertising through the mail. (g) Soliciting sales by phone from a location outside the city. (5) A seller located outside the city merely delivering goods into the city by means of common carrier is not required to register and obtain a business license, provided that it engages in no other business activities in the city. Such activities do not include those in subsection (4). (6) The city expressly intends that engaging in business includes any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts. N. "Extracting." "Extracting" is the activity engaged in by an extractor and is reportable under the extracting classification. 12 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 16 O. "Extractor." "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; or persons meeting the definition of farmer. P. "Extractor for Hire." "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor. Q. "Gross income of the business." "Gross income of the business" means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. R. "Gross proceeds of sales." "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property, 13 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 17 digital goods, digital codes, digital automated services or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. S. "Manufacturing." "Manufacturing" means the activity conducted by a manufacturer and is reported under the manufacturing classification. T. "Manufacturer," "to manufacture." (1) "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty percent (20%) of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire, and not a manufacturer. A business not located in this city that is the owner of materials or ingredients processed for it in this city by a processor for hire shall be deemed to be engaged in business as a manufacturer in this city. (2) "To manufacture" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include: (a) The production of special made or custom made articles; 14 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 18 (b) The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; (c) Crushing and/or blending of rock, sand, stone, gravel, or ore; and (d) The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables. "To manufacture" shall not include the production of digital goods or the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser. U. "Newspaper," "magazine," "periodical." "Newspaper" means a publication offered for sale regularly at stated intervals at least once a week and printed on newsprint in tabloid or broadsheet format folded loosely together without stapling, glue, or any other binding of any kind. "Magazine, or periodical" means any printed publication, other than a newspaper, issued and offered for sale regularly at stated intervals at least once every three (3) months, including any supplement or special edition of the publication. Any publication meeting this definition qualifies regardless of its content. 15 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 19 V. "Non-profit corporation or non-profit organization." "Non-profit corporation or non-profit organization" means a corporation or organization in which no part of the income can be distributed to its members, directors, or officers and that holds a current tax exempt status as provided under Sec. 501(c)(3) of the Internal Revenue Code, as hereafter amended, or is specifically exempted from the requirement to apply for its tax exempt status under Sec. 501(c)(3) of the Internal Revenue Code, as hereafter amended. Where the term non-profit organization is used, it is meant to include a non-profit corporation. W. "Office", "place of business." "Office" or "place of business" means a fixed location or permanent facility where the regular business of the person is conducted and which is either owned by the person or over which the person exercises legal dominion and control. The regular business of the person is presumed conducted at a location: (1) Whose address the person uses as its business mailing address; (2) Where the place of primary use is shown on a telephone billing or a location containing a telephone line listed in a public telephone directory or other similar publication under the business name; (3) Where the person holds itself out to the general public as conducting its regular business through signage or other means; and (4) Where the person is required to obtain any appropriate state and local business license or registration unless they are exempted by law from such requirement. A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not an office or place of business. A post office box is not an office or place of business. If a person has an office or place of business, the person's home is not an office or place of business unless it meets the criteria for office or place of 16 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 20 business above. If a person has no office or place of business, the person's home or apartment within the city will be deemed the place of business. X. "Person." "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co- partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit, or otherwise and the United States or any instrumentality thereof. Y. "Processing for hire." "Processing for hire" means the performance of labor and mechanical services upon materials or ingredients belonging to others so that as a result a new, different or useful product is produced for sale, or commercial or industrial use. A processor for hire is any person who would be a manufacturer if that person were performing the labor and mechanical services upon that person's own materials or ingredients. If a person furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to twenty percent (20%) or more of the total value of all materials or ingredients that become a part of the finished product, the person will be deemed to be a manufacturer and not a processor for hire. Z. "Product", "Byproduct." "Product" means tangible personal property, including articles, substances, or commodities created, brought forth, extracted, or manufactured by human or mechanical effort. "Byproduct" means any additional product, other than the principal or intended product, which results from extracting or manufacturing activities 17 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 21 and which has a market value without regard to whether or not such additional product was an expected or intended result of the extracting or manufacturing activities. AA. "Retailing." "Retailing" means the activity of engaging in making sales at retail and is reported under the retailing classification. BB. "Retail Service." "Retail service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: (1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquet ball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. "Amusement and recreation services" also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons. (2) Abstract, title insurance, and escrow services; (3) Credit bureau services; (4) Automobile parking and storage garage services; (5) Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; 18 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 22 (6) Service charges associated with tickets to professional sporting events; and (7) The following personal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, turkish bath services, escort services, and dating services. (8) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator. CC. "Sale," "casual or isolated sale." (1) "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale," or "retail service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. (2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis. DD. "Sale at retail," "retail sale." (1) "Sale at retail' or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal 19 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 23 property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who: (a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or (b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or (c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or (d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or (e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in (a), (b), (c), (d), or (e) of this subsection following such use. (f) Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection (7) of 20 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 24 this section, if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person. (2) "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under section 3.28.050(21)(g). (3) "Sale at retail' or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following: (a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin-operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture; (c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such 21 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 25 construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner; (d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting; (e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter 82.16 RCW; (f) The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same; (g) The installing, repairing, altering, or improving of digital goods for consumers; 22 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 26 (h) The sale of or charge made for tangible personal property, labor and services to persons taxable under (a), (b), (c), (d), (e), (f), and (g) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail' or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (1) of this section and nothing contained in subsection (1) of this section shall be construed to modify this subsection. (4) "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. (5)(a) "Sale at retail" or "retail sale" shall also include the sale of prewritten software other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user. For purposes of this subsection (5)(a) the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the software into use. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may be characterized by the vendor or by the purchaser. The term "sale at retail" or "retail sale" does not include the sale of or charge made for: (i) Custom software; or (ii) The customization of prewritten software. (b)(i) The term also includes the charge made to consumers for the right to access and use prewritten computer software, where possession of the software is maintained by the seller or a third party, 23 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 27 regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis. (ii)(A) The service described in (b)(i) of this subsection 5 includes the right to access and use prewritten software to perform data processing. (B) For purposes of this subsection (b)(ii) "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. (6) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state, the State of Washington, or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind. (7) "Sale at retail" or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value 24 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 28 of the agreement is included in the sales price of the tangible personal property covered by the agreement. (8) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation. (9) "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development. (10) "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action. (11) "Sale at retail" or "retail sale" shall also include the following sales to consumers of digital goods, digital codes, and digital automated services: (a) Sales in which the seller has granted the purchaser the right of permanent use; (b) Sales in which the seller has granted the purchaser a right of use that is less than permanent; (c) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and 25 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 29 (d) Sales in which the purchaser is obligated to make continued payment as a condition of the sale. A retail sale of digital goods, digital codes, or digital automated services under this subsection 3.28.030.DD(11) includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services. For purposes of this subsection, "permanent' means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent. (12) "Sale at retail" or "retail sale" shall also include the installing, repairing, altering, or improving of digital goods for consumers. EE. "Sale at wholesale," "wholesale sale." "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property, digital goods, digital codes, digital automated services, prewritten computer software, or services described in section 3.28.030.DD(5)(b)(i), which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property and retail services, if such charge is expressly defined as a retail sale or retail service when rendered to or for consumers. Sale at wholesale also includes the sale of telephone business to another telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715. FF. "Services." "Services" includes those activities that do not fall within one of the other tax classifications used by the city. 26 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 30 GG. "Software", "prewritten software," "custom software," "customization of canned software," "master copies," "retained rights." (1) "Prewritten software" or "canned software" means computer software, including prewritten upgrades, that is not designed and developed by the author or other creator to the specifications of a specific purchaser. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software. Prewritten computer software includes software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than such purchaser. Where a person modifies or enhances computer software of which such persons is not the author or creator, the person shall be deemed to be the author or creator only of the person's modifications or enhancements. Prewritten computer software or a prewritten portion thereof that is modified or enhanced to any degree, where such modification or enhancement is designed and developed to the specifications of a specific purchaser, remains prewritten computer software; however where there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for the modification or enhancement, the modification or enhancement shall not constitute prewritten computer software. (2) "Custom software" means software created for a single person. (3) "Customization of canned software" means any alteration, modification, or development of applications using or incorporating canned software to specific individualized requirements of a single person. Customization of canned software includes individualized configuration of software to work with other software and computer hardware but does not include routine installation. Customization of canned software does not 27 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 31 change the underlying character or taxability of the original canned software. (4) "Master copies" of software means copies of software from which a software developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies for sale or license. The software encoded on a master copy and the media upon which the software resides are both ingredients of the master copy. (5) "Retained rights" means any and all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, that are owned or are held under contract or license by a software developer, author, inventor, publisher, licensor, sublicensor, or distributor. (6) "Software" means any information, program, or routine, or any set of one (1) or more programs, routines, or collections of information used, or intended for use, to convey information that causes one or more computers or pieces of computer-related peripheral equipment, or any combination thereof, to perform a task or set of tasks. "Software" includes the associated documentation, materials, or ingredients regardless of the media upon which that documentation is provided, that describes the code and its use, operation, and maintenance and that typically is delivered with the code to the consumer. All software is classified as either canned or custom. HH. "Taxpayer." "Taxpayer" means any "person", as herein defined, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter. 28 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 32 II. "Tuition fee." "Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the state and includes educational programs that such educational institution cosponsors with a non-profit organization, as defined by the Internal Revenue Code Section 501(c)(3), as hereafter amended, if such educational institution grants college credit for coursework successfully completed through the educational program, or an approved branch campus of a foreign degree-granting institution in compliance with chapter 28B.90 RCW, and in accordance with RCW 82.04.4332 or defined as a degree-granting institution under RCW 28B.85.010(3) and accredited by an accrediting association recognized by the United States secretary of education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions. I]. "Value proceeding or accruing." "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. KK. "Value of products." 29 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 33 (1) The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller. (2) Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported or transferred out of the city, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or article extracted or manufactured, including direct and indirect overhead costs. The director may prescribe rules for the purpose of ascertaining such values. (3) Notwithstanding subsection (2) above, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to: (a) the retail selling price of such new or improved product when first offered for sale; or (b) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale. 30 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 34 LL. "Wholesaling." "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification. Sec. 3.28.040. Agency — sales and services by agent, consignee, bailee, factor or auctioneer. (1) Sales in own name - sales or purchases as agent. Every person, including agents, consignees, bailees, factors or auctioneers having either actual or constructive possession of tangible personal property or having possession of the documents of title thereto, with power to sell such tangible personal property in the person's own name and actually so selling shall be deemed the seller of such tangible personal property within the meaning of this chapter. The burden shall be upon the taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling tangible personal property but is acting merely as broker or agent in promoting sales or making purchases for a principal. Such claim will be recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with: (a) The books and records of the broker or agent show the transactions were made in the name and for the account of the principal, and show the name of the actual owner of the property for whom the sale was made, or the actual buyer for whom the purchase was made. (b) The books and records show the amount of the principal's gross sales, the amount of commissions and any other incidental income derived by the broker or agent from such sales. The principal's gross sales must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed 31 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 35 according to a set percentage or amount, which is agreed upon in the agency agreement. (c) No ownership rights may be conferred to the agent unless the principal refuses to pay, or refuses to abide by the agency agreement. Sales or purchases of any goods by a person who has any ownership rights in such goods shall be taxed as retail or wholesale sales. (d) Bulk goods sold or purchased on behalf of a principal must not be co-mingled with goods belonging to another principal or lose their identity as belonging to the particular principal. Sales or purchases of any goods which have been co-mingled or lost their identity as belonging to the principal shall be taxed as retail or wholesale sales. (2) If the above requirements are not met the consignor, bailor, principal or other shall be deemed a seller of such property to the agent, consignee, bailee, factor or auctioneer. (3) Services in own name - procuring services as agent. For purposes of this subsection, an agent is a person who acts under the direction and control of the principal in procuring services on behalf of the principal that the person could not itself render or supply. Amounts received by an agent for the account of its principal as advances or reimbursements are exempted from the measure of the tax only when the agent is not primarily or secondarily liable to pay for the services procured. Any person who claims to be acting merely as agent in obtaining services for a principal will have such claim recognized only when the contract or agreement between such persons clearly establishes the relationship of principal and agent and when the following conditions are complied with: (a) The books and records of the agent show that the services were obtained in the name and for the account of the principal, and show the actual principal for whom the purchase was made. 32 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 36 (b) The books and records show the amount of the service that was obtained for the principal, the amount of commissions and any other income derived by the agent for acting as such. Amounts received from the principal as advances and reimbursements must not be reflected as the agent's income on any of the agent's books and records. Commissions must be computed according to a set percentage or amount, which is agreed upon in the agency agreement. Sec. 3.28.050. Imposition of the tax - tax or fee levied. Except as provided in subsection (3) of this section, there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the city, whether the person's office or place of business be within or without the city. The tax shall be in amounts to be determined by application of rates against the rg oss proceeds of sale. gross income of business. or value of products, including byproducts- bus®ess--of cc-or f v °v"ffi the—eity, and by application of rates against the square footage of business office or facility space within the cityg s;ness-,-f—,e-a,;• , ts, as the case may be, as follows: (1) Gross receipts_tax._ (a_)...........Upon_every_personen_gagn_g within_the cit_y_=in__=b_u_sness asan extractor, as tosuchpersonstheamount-,_of thetax-,with-__respect__to such business shall be equal to the value of the__prod_uc�d_ ng__by-_ products,__extra_cted__w th n__the_C ty__f0[__sal e__or for commercial_ or industrial use__mu-Iti-plied=_by_therateof=0=,_1.52h_undredths=_of=one==percent,j0 001.52=h The measure of_the tax is the value of_the_produ_cts,__ nclud ngb_y-prod_u;M soextracted re_ga rd_l ess of_th e_p lace of_saleo r_the fact that d el iver es__may be_made-to_po_nts-_outside_=the=_cit-y., 33 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 37 (b"pga=ever�r__person engAgjng within the cityjp==b_u_sness as a manufacture of the tax with_respect to such business shall be rod u ctsjncbud_-__n_-_g=_b=y-_ 6 hundredths of one of the tax is the value of the pjqdMqM incluclrnq=by-proclucts��� rqgAT41ge� tside the city, jc)=„ UOon=_-every—Person engag business of making sales at who lesa =let__as__to=_such__personsg__the_amount_of tax with res ual to the ross proceeds of such sales of the business without r of article the rate of 0.152 hundredths of one pgrcent kq,�. (d business of making=5AIgs,,,at,,,reta=i_Ig___a_s,,,to___such-__personslhg=Anjgypk=QLtax with res sales of the business commodities or merchandise sold,==DjMjPpJJgq==,4y the rate of 0.046 hundredths of one pgrcent kq,�. every___person,,,,,engagnQ___within___the__cty___in__the business of tIj=,prIQUM (iil=kgo==Rrinting==and__publishing=DgW§pd_pe[S magAKWAe,.periodicals -- W puhRa" newspapgM magazing§,a nd_period=cals ,_(v� extracting for hire, and W processing__fo_r-_hire, as to such personA,=j4e=Ajjj9MRt=9jAax_on_such business shall be equal to the lied by the rate of 0.046 hundredths of one in the business of makin to such amount of tax with res ross 34 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance 38 the rate of 0.152 hundredths of one RREWRLWA015ZL an in addition to those enumerated in the above subsectionsl==as_to=_such=_perso_ns of such activities shall be e the business multi 152 hundredths of one percent (0.0004 and without HmH:ing=jbg=,5Me hereof I used in the sses to another accession,==UjeTggLK other than in the business of developing re or of custoMJzMg canned software_ pgreons=_engaged_in=_the business of rendering an" stitute a sale at retail ervice. *ts-� e—yame-Fepeftift (2) Square footage tax. Upon every person who leases, owns, occupies, or otherwise maintains an office, warehouse, or other place of business within the city for purposes of engaging in business activities in the city, the tax shall be measured by the number of square feet of warehouse business floor space or other business floor space for each office, warehouse, or other place of business leased, owned, occupied, or otherwise maintained within the city during the reporting period, calculated to the nearest square foot. (a) Subject to the reductions established in subsection f), Tthe amount of the tax due shall be equal to the sum of the number of 35 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance 39 square feet of business warehouse floor space for each business warehouse leased, owned, occupied, or otherwise maintained within the city multiplied by the rate of $0.03 quarterly for each calendar year, and the number of square feet of other business floor space for each office or other place of business leased, owned, occupied, or otherwise maintained within the city multiplied by the rate of $0.01 quarterly for each calendar year. (b) For purposes of this section, "business warehouse" means a building or structure, or any part thereof, in which goods, wares, merchandise or commodities are received or stored, whether or not for compensation, in furtherance of engaging in business. (c) For purposes of this section, 'other business floor space" means the floor space of an office or place of business, other than a business warehouse. (d) For purposes of this section, the square footage shall be computed by measuring to the inside finish of permanent outer building walls and shall include space used by columns and projections necessary to the building. Square footage shall not include stairs, elevator shafts, flues, pipe shafts, vertical ducts, heating or ventilation shafts, janitor closets, and electrical or utility closets. (e) Persons with more than one office, warehouse, or other place of business within the city must include all business warehouse floor space and other business floor space for all locations within the city. When a person rents space to another person, the person occupying the rental space is responsible for the square footage business tax on that rental space only if the renter has exclusive right of possession in the space as against the landlord. Space rented for the storage of goods in a warehouse where no walls separate the goods, and where the exclusive right of possession in the space is not held by the person to whom the space is rented, and space rented out in "self-storage" facilities whereby 36 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 40 customers have direct access to individual storage areas by separate entrances, shall be included in the warehouse business floor space of the person that operates the warehouse business, and not by the person renting the warehouse space. (f) The-4ff-eetef—mdy-Vfemu-4gate-- Fu-Ies-�d--Fegu4atF&-n--- fegaf4fflg-th-e-�' t ® see Tf the square footage tax imposed in this subsection L1 is less than or equal to the gross receipts h no square footage tax will be duea it the square footage tax imposed in this subsectio�n2j exceeds the grossreceipts tax imposed in subsection U the excess over-the-gross receiRLs tax payable under subsection 1). SUC4�- .. m.L.a.I I_ ffes=M" eWy- (3) Ta*-th-resheId--. 37 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance 41 q- e-&"aeft apply-te—i*y-pefse n-whese-gFess-pfaceeds-ef �i��ross receipts exeptionlsquare footage old. LalAny— income of the business, and value of products, including by products, as the case maw from all activities conducted within the city during any quarter is equal to or less than $62 500.00 durincl that quarter shall be chapter.exempt from the gross receipts tax imposed in this The applicable tax rates shall onl�ap�ly to amounts in excess of $62 500.00 during any rter. (h) The square foot--- tax imposed in subsection (2hshall not applyany- I floor area of business space within the city exceeds the following old: M 4-QQ0 re feet of business warehouse SR4C�o r Ni 12 QQQ '--hlg souare feet of other business floor space. This is a threshold and not an exemption. Tf the square foot-cIe t-x A"Hes it applies to all business space leased, owned, occupied or otherwise aint-fined by the t-raver during the applicable reporting Remd. 38 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance 42 L4} Rules. The director may promulgate rules and regulations re ag rding the manner means d method of calculating any taximposed under this section. Sec. 3.28.070. Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes. (1) Persons who engage in business activities that are within the purview of two (2) or more subsections of section 3.28.050 shall be taxable under each applicable subsection. (2) Notwithstanding anything to the contrary herein, if imposition of the city's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the city's tax, and still apply the city tax to as much of the taxpayer's activities as may be subject to the city's taxing authority. (3) To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied and that the taxpayer paid the amount of tax sought to be credited. (4) Credit for persons that sell in the city products that they extract or manufacture. Persons taxable under the retailing or wholesaling classification with respect to selling products in this city shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (a) with respect to the manufacturing of the products sold in the city, and (b) with respect to the extracting of the products, or the ingredients used in the products, sold in the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. 39 Amend KCC Title 3 New Chapter 3.28 B & 0 Tax Ordinance 43 (5) Credit for persons that manufacture products in the city using ingredients they extract. Persons taxable under the manufacturing classification with respect to manufacturing products in this city shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products. (6) Credit for persons that sell within the city products that they print, or publish and print. Persons taxable under the retailing or wholesaling classification with respect to selling products in this city shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the city. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. Sec. 3.28.075. Deductions to prevent multiple taxation of certain manufacturing activities involving more than one city with an eligible gross receipts tax. A person manufacturing products within the city using products manufactured by the same person outside the city may deduct from the measure of the manufacturing tax the value of products manufactured outside the city and included in the measure of an eligible gross receipts tax paid to the other jurisdiction with respect to manufacturing such products. Sec. 3.28.076. Assignment of gross income derived from intangibles. Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the jurisdiction where the person is domiciled (its headquarters is located). 40 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 44 Sec. 3.28.077. Allocation and apportionment of income when activities take place in more than one jurisdiction. Gross income, other than for persons subject to the provisions of chapter 82.14A RCW, shall be allocated and apportioned as follows: (1) Gross income derived from all activities other than those taxed as service or royalties under section 3.28.050(21)(g) shall be allocated to the location where the activity takes place. (2) In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs. (3) In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: (a) The seller's place of business if the purchaser receives the digital product at the seller's place of business; (b) If not received at the seller's place of business, the location where the purchaser or the purchaser's donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller; (c) If the location where the purchaser or the purchaser's donee receives the digital product is not known, the purchaser's address maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith; (d) If no address for the purchaser is maintained in the ordinary course of the seller's business, the purchaser's address obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith; and (e) If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital 41 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 45 code is first made available for transmission by the seller or the address from which the digital automated service or service described in RCW 82.04.050 (2)(g) or (6)(b) was provided, disregarding for these purposes any location that merely provided the digital transfer of the product sold. (4) If none of the methods in subsection 3.28.077(3) for determining where the delivery of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided in subsections 3.28.077(3)(a) through 3.28.077(3)(e), then the city and the taxpayer may mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products. The taxpayer will be responsible for petitioning the city to use an alternative method under this subsection. The city may employ an alternative method for allocating the income from the sale of digital products if the methods provided in subsections 3.28.077(3)(a) through 3.28.077(3)(e) are not available and the taxpayer and the city are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products. (5) For purposes of subsections 3.28.077(3)(a) through 3.28.077(3)(e), "Receive" has the same meaning as in RCW 82.32.730. (6) Gross income derived from activities taxed as services and other activities taxed under section 3.28.050(21)(g) shall be apportioned to the city by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service-income factor and the denominator of which is two. (a) The payroll factor is a fraction, the numerator of which is the total amount paid in the city during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the city if: (i) The individual is primarily assigned within the city; 42 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 46 (ii) The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty percent or more of his or her service for the tax period in the city; or (iii) The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty percent or more of his or her service in any city and the employee resides in the city. (b) The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the city during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the city if: (i) The customer location is in the city; or (ii) The income-producing activity is performed in more than one location and a greater proportion of the service-income- producing activity is performed in the city than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or (iii) The service-income-producing activity is performed within the city, and the taxpayer is not taxable in the customer location. (c) If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer's business activity in the city or cities in which the taxpayer does business, the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer's business activity, that one of the following methods be used jointly by the cities to allocate or apportion gross income, if reasonable: (i) Separate accounting; (ii) The use of a single factor; 43 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 47 (iii) The inclusion of one or more additional factors that will fairly represent the taxpayer's business activity in the city; or (iv) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income. (47) The definitions in this subsection apply throughout this section. (a) "Apportionable income" means the gross income of the business taxable under the service classifications of a city's gross receipts tax, including income received from activities outside the city if the income would be taxable under the service classification if received from activities within the city, less any exemptions or deductions available. (b) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal internal revenue code. (c) "Individual" means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer. (d) (d) "Customer location" means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place. (e) "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties. (f) "Service-taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification. (g) "Tax period" means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the 44 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 48 previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year. (h) "Taxable in the customer location" means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so. (58) Assignment or apportionment of revenue under this Section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. Sec. 3.28.078. Allocation and apportionment of printing and publishing income when activities take place in more than one jurisdiction. Notwithstanding RCW 35.102.130, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this state from which the taxpayer's business is directed or managed. As used in this section, the activities of printing, and of publishing newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.280(1) by the department of revenue. Sec. 3.28.090. Exemptions. (1) Non-profit corporations or non-profit organizations. This chapter shall not apply to non-profit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as hereafter amended, except with respect to retail sales of such persons. 45 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 49 (2) Health maintenance organization, health care service contractor, certified health plan. This chapter does not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under RCW 48.14.0201. (3) Public utilities. This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the utility tax provisions of Chapter 3.18 of the Kent City Code. (4) Investments - dividends from subsidiary corporations. This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations. (5) International banking facilities. This chapter shall not apply to the gross receipts of an international banking facility. As used in this subsection, an "international banking facility" means a facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and which is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25(a) of the Federal Reserve Act, 12 United States Code 611-631, or an Agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601-604(a), that includes only international banking facility time deposits (as defined in subsection (a)(2) of Section 204.8 of Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal Reserve System), and international 46 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 50 banking facility extensions of credit (as defined in subsection (a)(3) of Section 204.8 of Regulation D). (6) Insurance business. This chapter shall not apply to amounts received by any person who is an insurer, or their appointed insurance producer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020, and provided further, that the provisions of this subsection shall not exempt any bonding company from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor. (7) Farmers - agriculture. This chapter shall not apply to any farmer in respect to amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk poultry, meats or any other agricultural product that is raised, caught, produced, or manufactured by such persons. (8) Athletic exhibitions. This chapter shall not apply to any person in respect to the business of conducting boxing contests and sparring or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Boxing Commission. (9) Racing. This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the Washington State Horse Racing Commission. (10) Ride sharing. This chapter does not apply to any funds received in the course of commuter ride sharing or ride sharing for persons with special transportation needs in accordance with RCW 46.74.010. (11) Employees. (a) This chapter shall not apply to any person in respect to the person's employment in the capacity as an employee or servant as 47 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 51 distinguished from that of an independent contractor. For the purposes of this subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended. (b) A booth renter is an independent contractor for purposes of this chapter. (12) Amounts derived from sale of real estate. This chapter shall not apply to gross proceeds derived from the sale of real estate. This, however, shall not be construed to allow an exemption of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions. This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of thirty (30) days or longer. (13) Mortgage brokers' third-party provider services trust accounts. This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third-party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. (14) Amounts derived from manufacturing, selling or distributing motor vehicle fuel. This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.36.010 and exempt under RCW 82.36.440, provided that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter. (15) Amounts derived from liquor, and the sale or distribution of liquor. This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120. (16) Casual and isolated sales. This chapter shall not apply to the gross proceeds derived from casual or isolated sales. 48 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 52 (17) Accommodation sales. This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (1) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article and (2) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within fourteen days to reimburse in kind a previous accommodation sale by the buyer to the seller. (18) Taxes collected as trust funds. This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, and admission tax. (19) United States, Washington State governmental entities. This chapter shall not apply to gross income received by the United State or any instrumentality thereof and by the State of Washington or any municipal subdivision thereof. (20) Research and development under federal contracts. This chapter shall not apply to amounts received for research and development activities performed on behalf of, under contract to, or in partnership with the United States government. For purposes of this section, "research and development activities" means activities performed to discover technological information, and technical and non-routine activities concerned with translating technological information into new or improved products, processes, techniques, formulas, inventions, or software, the application of which is intended to be useful in the development of a new or improved federal project or component thereof. Sec. 3.28.100. Deductions. In computing the license fee or tax, there may be deducted from the measure of tax the following items: 49 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 53 (1) Compensation from public entities for health or social welfare services - exception. In computing tax, there may be deducted from the measure of tax amounts received from the United States or any instrumentality thereof or from the State of Washington or any municipal corporation or political subdivision thereof as compensation for, or to support, health or social welfare services rendered by a health or social welfare organization (as defined in RCW 82.04.431) or by a municipal corporation or political subdivision, except deductions are not allowed under this subsection for amounts that are received under an employee benefit plan. For purposes of this subsection, "employee benefit plan" includes the military benefits program authorized in 10 USC Sec. 1071 et seq., as amended, or amounts payable pursuant thereto. (2) Interest on investments or loans secured by mortgages or deeds of trust. In computing tax, to the extent permitted by Chapter 82.14A RCW, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest received on investments or loans primarily secured by first mortgages or trust deeds on non-transient residential properties. (3) Interest on obligations of the state, its political subdivisions, and municipal corporations. In computing tax, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest paid on all obligations of the State of Washington, its political subdivisions, and municipal corporations organized pursuant to the laws thereof. (4) Interest on loans to farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives. In computing tax, there may be deducted from the measure of tax amounts derived as interest on loans to bona fide farmers and ranchers, producers or harvesters of aquatic products, or their cooperatives by a lending institution which is owned exclusively by its borrowers or members and 50 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 54 which is engaged solely in the business of making loans and providing finance-related services to bona fide farmers and ranchers, producers or harvesters of aquatic products, their cooperatives, rural residents for housing, or persons engaged in furnishing farm-related or aquatic-related services to these individuals or entities. (5) Receipts from tangible personal property delivered outside the State. In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property that is delivered by the seller to the buyer or the buyer's representative at a location outside the State of Washington. (6) Cash discount taken by purchaser. In computing tax, there may be deducted from the measure of tax the cash discount amounts actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the "value of product' provisions. (7) Credit losses of accrual basis taxpayers. In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis. (8) Constitutional prohibitions. In computing tax, there may be deducted from the measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United States. (9) Receipts from the sale of tangible personal property and retail services delivered outside the city but within Washington. Amounts included in the gross receipts reported on the tax return derived from the sale of tangible personal property delivered to the buyer or the buyer's representative outside the city but within the State of Washington may be 51 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 55 deducted from the measure of tax under the retailing, retail services, or wholesaling classification. (10) Professional employer services. In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement. Sec. 3.28.120. Tax part of overhead. It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons. Sec. 3.28.130. Limitation of revenue received. Revenue received from the tax imposed by this chapter shall first be applied to the cost of administering this tax, which shall not exceed $300,000 per annum. This allocation for administrative costs shall be adjusted annually in accordance with the applicable inflation factor listed in the consumer price index. One hundred percent of the remaining revenue shall be allocated to the design, construction, maintenance, improvement, operation, and repair of the city's transportation infrastructure and appurtenant improvements including, without limitation, streets, curbs, gutters, sidewalks, bicycle and pedestrian lanes and paths, street trees, 52 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 56 drainage, lighting, and signalization up to a total annual allocation of four million seven hundred thousand dollars ($4,700,000). Any remaining revenues received shall be applied to the capital improvement fund and allocated according to the direction of the city council. Sec. 3.28.140. Severability Clause. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. SECTION 3. — Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state or federal laws, codes, rules, or regulations. SECTION 4. — Petition for referendum. A referendum procedure is required pursuant to RCW 35.21.706 for cities first imposing a business and occupation tax. A referendum petition may be filed with the City Clerk within seven (7) days of passage of this ordinance. Within ten (10) days, the City Clerk shall confer with the petitioner concerning the form and style of the petition, issue the petition an identification number, and secure an accurate, concise, and positive ballot title from the City Attorney. The petitioner shall have thirty (30) days in which to secure the signatures of not less than fifteen (15) percent of the registered voters of the city, as of the last municipal general election, upon petition forms which contain the ballot title and the full text of the measure to be referred. The City Clerk shall verify the sufficiency of the signatures on the petition and, if sufficient valid signatures are properly submitted, shall certify the 53 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 57 referendum measure to the next election ballot within the city or at a special election ballot as provided pursuant to RCW 35.17.260(2). This above procedure shall be the exclusive method of referendum for this ordinance and shall supersede the procedures provided under chapters 35.17 and 35A.11 RCW and all other statutory or other provisions for initiative or referendum that might otherwise apply. SECTIONS. — SeverabilitY. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, that decision shall not affect the validity of the remaining portion of this ordinance and that remaining portion shall maintain its full force and effect. SECTION 6, — Effective Date. This ordinance shall take effect and be in force beginning January 1, 2013, which is at least thirty (30) days from and after its passage and publication, as provided by law. SUZETTE COOKE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK 54 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 58 APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY PASSED: day of 12012. APPROVED: day of 12012. PUBLISHED: day of 12012. I hereby certify that this is a true copy of Ordinance No. passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) BRENDA JACOBER, CITY CLERK 55 Amend KCC Title 3 New Chapter 3.28 8 & O Tax Ordinance 59 ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, repealing Ordinance No. 4053 and adding a new Chapter 3.29 to the Kent City Code entitled, "Business and Occupation Tax - Administrative Provisions." THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. - Repealer. Ordinance No. 4053 is hereby repealed in its entirety. SECTION 2. - Amendment. Title 3 of the Kent City Code is amended to adopt a new Chapter 3.29, entitled, "Business and Occupation Tax - Administrative Provisions," as follows: Chapter 3.29 Business and Occupation Tax - Administrative Provisions 1 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 60 Sec. 3.29.010. Purpose. The purpose of this chapter is to provide administrative guidelines and provisions to implement, administer and enforce the city's business and occupation tax ordinance, chapter 3.28 of the Kent City Code. Sec. 3.29.015. Application of chapter stated. The provisions of this chapter shall apply with respect to the taxes imposed under chapter 3.28 KCC and under other titles, chapters, and sections in such manner and to such extent as indicated in each such title, chapter or section. Sec. 3.29.020. Definitions. For purposes of this chapter, the definitions contained in chapter 3.28 KCC shall apply equally to the provisions of this chapter unless the term is defined otherwise in this chapter. In addition, the following definitions will apply: A. "Reporting period." "Reporting period" means: (1) A one-month period beginning the first day of each calendar month (monthly); or (2) A three-month period beginning the first day of January, April, July or October of each year (quarterly); or (3) A twelve-month period beginning the first day of January of each year (annual). B. "Return." "Return" means any document a person is required by the city to file to satisfy or establish a tax or fee obligation that is administered or collected by the city and that has a statutorily defined due date. C. "Successor." "Successor" means any person to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or 2 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 61 otherwise conveys, directly or indirectly, in bulk and not in the ordinary course of the taxpayer's business, any part of the materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any person obligated to fulfill the terms of a contract shall be deemed a successor to any contractor defaulting in the performance of any contract as to which such person is a surety or guarantor. D. "Tax year," "taxable year." "Tax year" or "taxable year" means the calendar year. Sec. 3.29.021. Definitions -- References to Chapter 82.32 RCW. Where provisions of Chapter 82.32 RCW are incorporated in Section 3.29.090 of this chapter, "Department" as used in the RCW shall refer to the "Director" as defined in section 3.28.030 and "warrant" as used in the RCW shall mean "citation or criminal complaint." Sec. 3.29.025. Registration requirements. Any person who engages in any business or performs any act that is subject to the provisions of Title 5 KCC or chapter 3.18 KCC, relating to utility business taxes, chapter 3.20 KCC, relating to natural or manufactured gas line use taxes, chapter 3.21 KCC, relating to gambling taxes, chapter 3.23 KCC relating to lodging taxes, chapter 3.26, relating to admissions taxes, and chapter 3.28 KCC, relating to business and occupation taxes, even if that person is not subject to any tax imposed thereby, shall apply under the rules and regulations as the department may prescribe and, upon approval, receive from the department a registration certificate applicable to all such business engaged in or activity performed. No person shall engage in any business without being registered in compliance with the provisions of this section. and anperson who is so registered must also comply with chapter 5.01 C. 3 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 62 Sec. 3.29.030. Registrationi4ieense certificates. A . The city will issue a registration certificate free of charge, acknowledging registration—a* The registration certificate shall be personal and nontransferable and shall be valid as long as the taxpayer continues in that business and pays any tax imposed by the city. " e Tac� a— 82 84-199ot , , t13tIC.5:Tll Clle p ted F iff rry srv& Fn ra f rr.srvr L<n Fln nru G CVl fYCT LC4A—L"V—a U IYYCI"C,l L 3L-Cfl f 1 eYCY"e,l Ce—UA� l�Cfl CY"YP f:SC e-" t r F F4 t3�VTV 11"9 . In the event business is transacted at two or more separate places by one taxpayer, a separate registration certificate for each place at which business is transacted shall be required. These additional certificates shall be issued at no additional fee. Where a taxpayer changes the nature of business conducted or conducts additional activities upon which a tax is imposed by Title 5 KCC or chapter 3.18 KCC, relating to utility business taxes, chapter 3.20 KCC, relating to natural or manufactured gas line use taxes, chapter 3.21 KCC, relating to gambling taxes, chapter 3.23 KCC relating to lodging taxes, chapter 3.26, relating to admissions taxes, and chapter 3.28 KCC, relating to business and occupation taxes, that taxpayer shall apply for and receive a new registration certificate at no additional fee. 4 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 63 Each registration certificate shall be numbered and shall show the name, business location, mailing address and any other information that the director deems necessary. The certificate of registration shall be posted in a conspicuous place at the place of business for which it is issued. Where a place of business of the taxpayer is changed, the taxpayer shall notify the department and upon approval, the department will issue a new certificate at no additional fee. Sec. 3.29.040. When due and payable - Reporting periods - Monthly, quarterly, and annual returns - Threshold provisions or Relief from filing requirements - Computing time periods - Failure to file returns. (1) Gther t tThe tax imposed by this chapter shall be due and payable in quarterly installments. At the director's discretion, businesses may be assigned to a monthly or annual reporting period depending on the tax amount owing or type of tax. Tax payments are due on or before the last day of the next month following the end of the assigned reporting period covered by the return. (2) Taxes shall be paid as provided in this chapter and accompanied by a return on forms as prescribed by the director. The return shall be signed by the taxpayer personally or by a responsible officer or agent of the taxpayer. The individual signing the return shall swear or affirm that the information in the return is complete and true. (3) Tax returns must be filed and returned by the due date whether or not any tax is owed. (4) For purposes of the tax imposed by chapter 3.28 KCC, any person whose value of products, gross proceeds of sales, or gross income of the 5 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 64 business, subject to tax after all allowable deductions, is equal to or less than Sixty Two Thousand Five Hundred Dollars ($62,500) in the current quarter, and whose combined taxable business warehouse square footage within the city is four thousand (4 0001 souare feet or less and whose combined taxable other business square footage is twelve thousand (12,000)_square feet or less, shall file a return, declare no tax due on their return, and submit the return to the director. The gross receipts and deduction amounts shall be entered on the tax return even though no tax may be due. (5) A taxpayer that commences to engage in business activity shall file a return and pay the tax or fee for the portion of the reporting period during which the taxpayer is engaged in business activity. (6) Except as otherwise specifically provided by any other provision of this chapter, in computing any period of days prescribed by this chapter the day of the act or event from which the designated period of time runs shall not be included. The last day of the period shall be included unless it is a Saturday, Sunday, or city or federal legal holiday, in which case the last day of such period shall be the next succeeding day which is neither a Saturday, Sunday, or city or federal legal holiday. (7) If any taxpayer fails, neglects or refuses to make a return as and when required in this chapter, the director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the director's estimate of the tax or fees due. Such assessment shall be deemed prima facie correct and shall be the amount of tax owed to the city by the taxpayer. The director shall notify the taxpayer by mail of the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. 6 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 65 Sec. 3.29.050. Payment methods - Mailing returns or remittances - Time extension - Deposits - Recording payments - Payment must accompany return - NSF checks. (1) Taxes shall be paid to the director in United States currency by bank draft, certified check, cashier's check, personal check, money order, cash, or by wire transfer or electronic payment if such wire transfer or electronic payment is authorized by the director. If payment so received is not paid by the bank on which it is drawn, the taxpayer, by whom such payment is tendered, shall remain liable for payment of the tax and for all legal penalties, the same as if such payment had not been tendered. Acceptance of any sum by the director shall not discharge the tax or fee due unless the amount paid is the full amount due. (2) A return or remittance that is transmitted to the city by United States mail shall be deemed filed or received on the date shown by the cancellation mark stamped by the Post Office upon the envelope containing it. The director may allow electronic filing of returns or remittances from any taxpayer. A return or remittance which is transmitted to the city electronically shall be deemed filed or received according to procedures set forth by the director. (3) If a written request is received prior to the due date, the director, for good cause, may grant, in writing, additional time within which to make and file returns. (4) The director shall keep full and accurate records of all funds received or refunded. The director shall apply payments first against all penalties and interest owing, and then upon the tax, without regard to any direction of the taxpayer. (5) For any return not accompanied by a remittance of the tax shown to be due thereon, the taxpayer shall be deemed to have failed or refused to file a return and shall be subject to the penalties and interest provided in this chapter. 7 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 66 (6) Any payment made that is returned for lack of sufficient funds or for any other reason will not be considered received until payment by certified check, money order, or cash of the original amount due, plus a "non- sufficient funds" (NSF) charge of twenty-five dollars ($25.00) is received by the director. t C YPf Tf U ISN.C.YIC CTTCCk w , 1 ned—te—1-e eeftgFea-t�, kte- _e)4s . _. _.ved. (7) The Director is authorized, but not required, to mail tax return forms to taxpayers, but failure of the taxpayer to receive any such forms shall not excuse the taxpayer from filing returns and making payment of the taxes or fees, when and as due under this chapter. Sec. 3.29.060. Records to be preserved - Examination - Estoppel to question assessment. Every person liable for any fee or tax imposed by this chapter shall keep and preserve, for a period of five (5) years after filing a tax return, such records as may be necessary to determine the amount of any fee or tax for which the person may be liable; which records shall include copies of all federal income tax and state tax returns and reports made by the person. All books, records, papers, invoices, vendor lists, inventories, stocks of merchandise, and other data including federal income tax and state tax returns and reports shall be open for examination at any time by the director or its duly authorized agent. Every person's business premises shall be open for inspection or examination by the director or a duly authorized agent. (1) If a person does not keep the necessary books and records within the city, it shall be sufficient if such person (a) produces within the city such books and records as may be required by the director, or (b) bears the cost of examination by the director's agent at the place where such books and records are kept; provided that the person electing to bear 8 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 67 such cost shall pay in advance to the director the estimated amount thereof including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination. (2) If national security clearance status or federal regulation bars access to certain documents, facilities or other necessary information, the auditor can implement alternative audit methods that determine, as accurately as possible and with the least possible expenditure of time, the amount of tax due. (3) Any person who fails, or refuses a department request, to provide or make available records, or to allow inspection or examination of the business premises, shall be forever barred from questioning in any court action, the correctness of any assessment of taxes made by the city for any period for which such records have not been provided, made available or kept and preserved, or in respect of which inspection or examination of the business premises has been denied. The director is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the estimate of the tax or fees due. Such fee or tax assessment shall be deemed prima facie correct and shall be the amount of tax owing the city by the taxpayer. The director shall notify the taxpayer by mail the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. Sec. 3.29.070. Accounting methods. (1) A taxpayer may file tax returns in each reporting period with amounts based upon cash receipts only if the taxpayer's books of account are kept on a cash receipts basis. A taxpayer that does not regularly keep books of account on a cash receipts basis must file returns with amounts based on the accrual method. 9 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 68 (2) The taxes imposed and the returns required hereunder shall be upon a calendar year basis. Sec. 3.29.080. Public work contracts - Payment of fee and tax before final payment for work. The director may, before issuing any final payment to any person performing any public work contract for the city, require such person to pay in full all license fees or taxes due under this title from such person on account of such contract or otherwise, and may require such taxpayer to file with the director a verified list of all subcontractors supplying labor and/or materials to the person in connection with said public work. Sec. 3.29.090. Underpayment of tax, interest, or penalty — Interest. (1) If, upon examination of any returns, or from other information obtained by the director, it appears that a tax or penalty less than that properly due has been paid, the director shall assess the additional amount found to be due and shall add thereto interest on the tax only. The director shall notify the person by mail of the additional amount, which shall become due and shall be paid within thirty (30) days from the date of the notice, or within such time as the director may provide in writing. (2) (a) The director shall compute interest in accordance with RCW 82.32.050 as it now exists or as it may be amended. (b) If section 3.29.090(2)(a) is held to be invalid, then the provisions of RCW 82.32.050 existing at the effective date of this ordinance shall apply. Sec. 3.29.095. Time in which assessment may be made. 10 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 69 The director shall not assess, or correct an assessment for, additional taxes, penalties, or interest due more than four years after the close of the calendar year in which they were incurred, except that the director may issue an assessment: (1) Against a person who is not currently registered or licensed or has not filed a tax return as required by this chapter for taxes due within the period commencing 10 years prior to the close of the calendar year in which the person was contacted in writing by the director; (2) Against a person that has committed fraud or who misrepresented a material fact; or (3) Against a person that has executed a written waiver of such limitations. Sec. 3.29.100. Over payment of tax, penalty, or interest - Credit or refund - Interest rate - Statute of limitations. (1) If, upon receipt of an application for a refund, or during an audit or examination of the taxpayer's records and tax returns, the director determines that the amount of tax, penalty, or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer's account or shall be refunded to the taxpayer. Except as provided in subsection (2) of this section, no refund or credit shall be made for taxes, penalties, or interest paid more than four (4) years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed. (2) The execution of a written waiver shall extend the time for applying for, or making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the director discovers that a refund or credit is due. 11 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 70 (3) Refunds shall be made by means of vouchers approved by the director and by the issuance of a city check or warrants drawn upon and payable from such funds as the city may provide. (4) Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the same manner, as provided in subsection (3) of this section, upon the filing with the director a certified copy of the order or judgment of the court. (5) (a) -The director shall compute interest on refunds or credits of amounts paid or other recovery allowed a taxpayer in accordance with RCW 82.32.060 as it now exists or as it may be amended. (b) If section 3.29.100(5)(a) is held to be invalid, then the provisions of RCW 82.32.060 existing at the effective date of this ordinance shall apply. Sec. 3.29.110. Late payment - Disregard of written instructions - Evasion - Penalties. (1) If payment of any tax due on a return to be filed by a taxpayer is not received by the director by the due date, the director shall add a penalty in accordance with RCW 82.32.090(1), as it now exists or as it may be amended. (2) If the director determines that any tax has been substantially underpaid as defined in RCW 82.32.090(2), there shall be added a penalty in accordance with RCW 82.32.090(2), as it now exists or as it may be amended. (3) If a citation or criminal complaint is issued by the director for the collection of taxes, fees, assessments, interest or penalties, there shall be added thereto a penalty in accordance with RCW 82.32.090(3), as it now exists or as it may be amended. 12 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 71 (4) If the director finds that a person has engaged in any business or performed any act upon which a tax is imposed under this title and that person has not obtained from the director a 4eense registration certificate as required by KCC 3.29.025 - .030, the director shall impose a penalty in accordance with RCW 82.32.090(4), as it now exists or as it may be amended. No penalty shall be imposed under this subsection (4) if the person who has engaged in business without a registration certificate 4cen®se-obtains a registration certificate r®ce®®se prior to being notified by the director of the need to be __.._ _registered. (5) If the director determines that all or any part of a deficiency resulted from the taxpayer's failure to follow specific written tax reporting instructions, there shall be assessed a penalty in accordance with RCW 82.32.090(5), as it now exists or as it may be amended. (6) If the director finds that all or any part of the deficiency resulted from an intent to evade the tax payable, the director shall assess a penalty in accordance with RCW 82.32.090(6), as it now exists or as it may be amended. (7) The penalties imposed under subsections (1) through (5) above of this section can each be imposed on the same tax found to be due. This subsection does not prohibit or restrict the application of other penalties authorized by law. (8) The director shall not impose both the evasion penalty and the penalty for disregarding specific written instructions on the same tax found to be due. (9) For the purposes of this section, "return" means any document a person is required by the city to file to satisfy or establish a tax or fee obligation that is administered or collected by the city, and that has a statutorily defined due date. 13 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 72 (10) If incorporation into the Kent City Code of future changes to RCW 82.32.090 is deemed invalid, then the provisions of RCW 82.32.090 existing at the time this ordinance is effective shall apply. Sec. 3.29.120. Cancellation of penalties. (1) The director may cancel any penalties imposed under section 3.29.110(1) if the taxpayer shows that its failure to timely file or pay the tax was due to reasonable cause and not willful neglect. Willful neglect is presumed unless the taxpayer shows that it exercised ordinary business care and prudence in making arrangements to file the return and pay the tax but was, nevertheless, due to circumstances beyond the taxpayer's control, unable to file or pay by the due date. The director has no authority to cancel any other penalties or to cancel penalties for any other reason except as provided in subsection (3). (2) A request for cancellation of penalties must be received by the director within 30 days after the date the department mails the notice that the penalties are due. The request must be in writing and contain competent proof of all pertinent facts supporting a reasonable cause determination. In all cases the burden of proving the facts rests upon the taxpayer. (3) The director may cancel the penalties in section 3.29.110(1) one time if a person: (a) Is not currently i®$cnsed registered and filing returns; (b) Was unaware of its responsibility to file and pay tax; and (c) Obtained a registration certificate and an}�applicable business licenses and filed past due tax returns within 30 days after being notified by the department. (4) The director shall not cancel any interest charged upon amounts due. 14 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 73 Sec. 3.29.130. Taxpayer quitting business - Liability of successor. (1) Whenever any taxpayer quits business, sells out, exchanges, or otherwise disposes of his business or his stock of goods, any tax payable hereunder shall become immediately due and payable. Such taxpayer shall, within ten (10) days thereafter, make a return and pay the tax due. (2) Any person who becomes a successor shall become liable for the full amount of any tax owing. The successor shall withhold from the purchase price a sum sufficient to pay any tax due to the city from the taxpayer until such time as: a) the taxpayer shall produce a receipt from the city showing payment in full of any tax due or a certificate that no tax is due, or b) more than six (6) months has passed since the successor notified the Director of the acquisition and the director has not issued and notified the successor of an assessment. (3) Payment of the tax by the successor shall, to the extent thereof, be deemed a payment upon the purchase price. If such payment is greater in amount than the purchase price, the amount of the difference shall become a debt due such successor from the taxpayer. (4) Notwithstanding the above, if a successor gives written notice to the director of the acquisition, and the director does not within six (6) months of the date it received the notice issue an assessment against the taxpayer and mail a copy of that assessment to the successor, the successor shall not be liable for the tax. Sec. 3.29.140. Administrative Appeal. Any person, except one who has failed to comply with section 3.29.060, aggrieved by the amount of the fee or tax determined by the director to be required under the provisions of this chapter may pay the amount due and appeal from such determination by filing a written notice of appeal with the city clerk within 30 days from the date written notice of such amount was mailed to the 15 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 74 taxpayer. A $250.00 filing fee shall be submitted with the appeal, which filing fee is required to process the appeal. The city's hearing examiner shall, as soon as practical, fix a time and place for the hearing of such appeal, and shall cause a notice of the time and place thereof to be delivered or mailed to the parties. The hearing shall be conducted in accord with the provisions of chapter 1.04 KCC. The decision of the hearing examiner shall indicate the correct amount of the fee or tax owing. Sec. 3.29.150. Judicial Review of Director's Determination. Any person, except one who has failed to comply with section 3.29.060, having paid any tax as required and feeling aggrieved by the amount of the tax assessed, and after first exhausting the right of administrative appeal set forth in this chapter, may seek judicial review in the King County Superior Court within 21 days of the date of the decision of the hearing examiner. The taxpayer shall set forth the amount of the tax imposed upon the taxpayer that the taxpayer concedes to be the correct amount of tax and the reason why the tax imposed should be reduced or abated. The trial in the Superior Court shall be de novo in accordance with the laws of the State of Washington. The burden shall rest upon the taxpayer to prove that the tax paid by the taxpayer is incorrect, either in whole or in part, and to establish the correct amount of the tax. Sec. 3.29.160. Director to make rules. The director shall have the power, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with law for the purpose of carrying out the provisions of this chapter and it shall be unlawful to violate or fail to comply with, any such rule or regulation. 16 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 75 Sec. 3.29.170. Ancillary allocation authority of Director. The director is authorized to enter into agreements with other Washington cities which impose an "eligible gross receipts tax": (1) To conduct an audit or joint audit of a taxpayer by using an auditor employed by the city of Kent, another city, or a contract auditor, provided, that such contract auditor's pay is not in any way based upon the amount of tax assessed; (2) To allocate or apportion in a manner that fairly reflects the gross receipts earned from activities conducted within the respective cities the gross proceeds of sales, gross receipts, or gross income of the business, or taxes due from any person that is required to pay an eligible gross receipts tax to more than one Washington city. (3) To apply the city's tax prospectively where a taxpayer has no office or place of business within the city and has paid tax on all gross income to another Washington city where the taxpayer is located; provided that the other city maintains an eligible gross receipts tax, and the income was not derived from contracts with the city. Sec. 3.29.180. Mailing of Notices. Any notice required by this chapter to be mailed to any taxpayer, re isg trant or licensee shall be sent by ordinary mail, addressed to the address of the taxpayer, registrant or licensee as shown by the records of the director. Failure of the taxpayer, registrant or licensee to receive any such mailed notice shall not release the taxpayer, re isg trant or licensee from any tax, fee, interest, or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. It is the responsibility of the taxpayer to inform the director in writing about a change in the taxpayer's address. 17 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 76 Sec. 3.29.190. Tax declared additional. The lieense- d-tax And an-aapplicable fee herein levied shall be additional to any license-er re fee or tax imposed or levied under any law or any other ordinance of the City of Kent except as herein otherwise expressly provided. Sec. 3.29.200. Public disclosure - Confidentiality - Information sharing. (1) For purposes of this section, defined terms shall be as set forth in section 3.29.020: (a) "Disclose" means to make known to any person in any manner whatever a return or tax information. (b) "Tax information" means: (i) A taxpayer's identity; (ii) The nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemption, credits, assets, liability, net worth, tax liability deficiencies, over assessments, or tax payments, whether taken from the taxpayer's books and records or any other source; (iii) Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing; or (iv) Other data received by, recorded by, prepared by, or provided to the city with respect to the determination or the existence, or possible existence, of liability, or the amount thereof, of a person under chapter 3.28 KCC for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense. However, data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Nothing in this chapter requires any person possessing data, material, or documents made 18 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 77 confidential and privileged by this section to delete information from such data, material or documents so as to permit its disclosure. (c) "City agency" means every city office, department, division, bureau, board, commission, or other city agency. (d) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer. (2) Returns and tax information are confidential and privileged, and except as authorized by this section, neither the director nor any other person may disclose any return or tax information. (3)-_This section does not prohibit the director from: (a)- Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding: (i) In respect of any tax imposed under chapter 3.28 if the taxpayer or its officer or other person liable under this title is a party in the proceeding; or (ii) In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding. (b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to section 3.29.160, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax information not received from the taxpayer must not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or 19 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 78 another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court; (c) Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof; (d) Disclosing such return or tax information, for official purposes only, to the mayor or city attorney, or to any city agency, or to any member of the city council or their authorized designees dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions; (e) Permitting the city's records to be audited and examined by the proper state officer, his or her agents and employees; (f) Disclosing any such return or tax information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the return or tax information may disclose that return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the return or tax information originally was sought or where otherwise allowed to be disclosed under this section; (g) Disclosing any such return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its 20 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 79 provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of the city; (h) Disclosing any such return or tax information to the United States department of justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies or their successors, for official purposes; (i) Publishing or otherwise disclosing the text of a written determination designated by the director as a precedent pursuant to RCW 82.32.410; (j) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, revenue tax registration numbers and the active/closed status of such registrations, state or local business license registration identification and the active/closed status and effective dates of such licenses, reseller permit numbers and the expiration date and status of such permits, North American industry classification system or standard industrial classification code of a taxpayer, and the dates of opening and closing of business. Except that this subsection may not be construed as giving authority to the City or any recipient to give, sell, or provide access to any list of taxpayers for any commercial purpose; (k) Disclosing such return or tax information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of 21 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 80 chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure; (1) Disclosing such return or tax information to the United States department of agriculture, or successor department or agency, for the limited purpose of investigating food stamp fraud by retailers; (m) Disclosing to a financial institution, escrow company, or title company, in connection with specific real property that is the subject of a real estate transaction, current amounts due the city for a filed tax warrant, judgment, or lien against the real property; (n) Disclosing to a person against whom the director has asserted liability as a successor under section 3.29.130 return or tax information pertaining to the specific business of the taxpayer to which the person has succeeded; (o) Disclosing real estate excise tax affidavit forms filed under chapter 3.19 KCC in the possession of the city, including real estate excise tax affidavit forms for transactions exempt or otherwise not subject to tax; (p) Disclosing such return or tax information to the court or hearing examiner in respect to the city's application for a subpoena if there is probable cause to believe that the records in possession of a third party will aid the director in connection with its official duties under this title or a civil or criminal investigation. (4) (a) —The director may disclose return or taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in section 3.29.200(4). The disclosure must be in connection with the director's official duties under KCC Title 3, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the return or tax information to be disclosed. The director may disclose return or tax information such as invoices, contracts, bills, statements, resale or 22 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 81 exemption certificates, or checks. However, the director may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents. (b) Before disclosure of any tax return or tax information under section 3.29.200(4), the director must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The director may not disclose any tax return or tax information under section 3.29.200(4) until the time period allowed in subsection (c) of section 3.29.200(4) has expired or until the court has ruled on any challenge brought under subsection (c) of section 3.29.200(4). (c) The person in possession of the data, materials, or documents to be disclosed by the director has twenty (20) days from the receipt of the written request required under subsection (b) of section 3.29.200(4) to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the director if the court determines that: (i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive; (ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the director, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or (iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner. 23 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 82 (d) The director must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed. (e) Requesting information under subsection (b) of section 3.29.200(4) that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax return or tax information under this section. (5) Service of a subpoena issued by the court or by the hearing examiner pursuant to chapter 2.32 KCC and the ancillary administrative rules does not constitute a disclosure of return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena issued by the court or by the hearing examiner may disclose the existence or content of the subpoena to that person's legal counsel. (6) Any person acquiring knowledge of any return or tax information in the course of his or her employment with the city and any person acquiring knowledge of any return or tax information as provided under subsections (3)(d), (e), (f), (g), (h), (i), or (k) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, such person must forfeit such office or employment and is incapable of holding any public office or employment in this city for a period of two years thereafter. Sec. 3.29.210. Tax constitutes debt. Any lieense-applicable fee or tax due and unpaid under this chapter, and all interest and penalties thereon, shall constitute a debt to the City of Kent and may be collected in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. 24 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 83 Sec. 3.29.220. Unlawful actions - Violation - Penalties. (1) It shall be unlawful for any person subject to the tax, fee or registration provisions of b®ter fees-ufde this chapter: (a) To violate or fail to comply with any of the provisions of this chapter or any lawful rule or regulation adopted by the director; (b) To make any false statement on any license or registration application or tax return; (c) To aid or abet any person in any attempt to evade payment of a license or fee, or tax; (d) To fail to appear or testify in response to a subpoena; (e) To testify falsely in any investigation, audit, or proceeding conducted pursuant to this chapter. (2) Violation of any of the provisions of this chapter is a gross misdemeanor. Any person convicted of a violation of this chapter may be punished by a fine not to exceed $1,000, imprisonment not to exceed one year, or both fine and imprisonment. Penalties or punishments provided in this chapter shall be in addition to all other penalties provided by law. (3) Any person, or officer of a corporation, convicted of continuing to engage in business after the revocation of a license registration certificate shall be guilty of a gross misdemeanor and may be punished by a fine not to exceed $5,000, or imprisonment not to exceed one year, or both fine and imprisonment. Sec. 3.29.230 Suspension or Revocation of registration certificate. (1) The director, or designee, shall have the power and authority to suspend or revoke any license r istration certificate issued under the provisions of this chapter. The director, or designee, shall notify such r®cen®see—registrant in writing by certified mail of the suspension or 25 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 84 revocation of his or her registration certificate ; -e-nse-and the grounds therefor. Any registration certificate ice®®se-issued under this chapter may be suspended or revoked based on one or more of the following grounds: (a) The registration certificate . e-was procured by fraud or false representation of fact. (b) The 4eensee—registrant has failed to comply with any provisions of chapters 3.28 and 3.29 KCC. (c) The liee®®see—registrant has failed to comply with any provisions of the Kent City Code. (d) The rice®®see registrant is in default in any payment of any license fee or tax under chapters 3.28 and 3.29 KCC. (e) -The eensee registrant or employee has been convicted of a crime involving the business. (2) Any licensee-registrant may, within 30 days from the date that the suspension or revocation notice was mailed to the 4eensee e isg tram, appeal from such suspension or revocation by filing a written notice of appeal ("petition") setting forth the grounds therefor with the director. A copy of the petition must be provided by the re isg trantnder, �to the director and the city attorney on or before the date the petition is filed with the city clerk. The hearing shall be conducted in accordance with the procedures for hearing contested cases set out in KCC 3.29.140. The hearing examiner shall set a date for hearing said appeal and notify the registrant; ee®®see-_by mail of the time and place of the hearing. After the hearing thereon the hearing examiner shall, after appropriate findings of fact, and conclusions of law, affirm, modify, or overrule the suspension or revocation and reinstate the registration certificate, and may impose any terms upon the continuance of the registration certificate . No suspension or revocation of a registration certificate issued pursuant to the provisions of this subchapter shall take effect until 26 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 85 30 days after the mailing of the notice thereof by the director, and if appeal is taken as herein prescribed the suspension or revocation shall be stayed pending final action on the appeal. All registration certificatesr®ee-n®sc -which are suspended or revoked shall be surrendered to the city on the effective date of such suspension or revocation. The decision of the hearing examiner shall be final. The _ __..___ registrant and/or the director may seek review of the decision by the Superior Court of Washington in and for King County. If review is sought as herein prescribed the suspension or revocation shall be stayed pending final action by the Superior Court. th+s sube etffncd t thcnee® Sec. 3.29.240. Closing agreement provisions. The director may enter into an agreement in writing with any person relating to the liability of such person in respect of any tax imposed by any of the chapters within this title and administered by this chapter for any taxable period(s). Upon approval of such agreement, evidenced by execution thereof by the director and the person so agreeing, the agreement shall be final and conclusive as to the tax liability or tax immunity covered thereby, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact: (1) The case shall not be reopened as to the matters agreed upon, or the agreement modified, by the director or the taxpayer, and (2) In any suit, action or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded. 27 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 86 Sec. 3.29.250. Charge-off of uncollectible taxes. The director may charge off any tax, penalty, or interest that is owed by a taxpayer, if the director reasonably ascertains that the cost of collecting such amounts would be greater than the total amount that is owed or likely to be collected from the taxpayer. SECTION 3. - Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state or federal laws, codes, rules, or regulations. SECTION 4. - Petition for referendum. A referendum procedure is required pursuant to RCW 35.21.706 for cities first imposing a business and occupation tax. A referendum petition may be filed with the City Clerk within seven (7) days of passage of this ordinance. Within ten (10) days, the City Clerk shall confer with the petitioner concerning the form and style of the petition, issue the petition an identification number, and secure an accurate, concise, and positive ballot title from the City Attorney. The petitioner shall have thirty (30) days in which to secure the signatures of not less than fifteen (15) percent of the registered voters of the city, as of the last municipal general election, upon petition forms which contain the ballot title and the full text of the measure to be referred. The City Clerk shall verify the sufficiency of the signatures on the petition and, if sufficient valid signatures are properly submitted, shall certify the referendum measure to the next election ballot within the city or at a special election ballot as provided pursuant to RCW 35.17.260(2). This above procedure shall be the exclusive method of referendum for this ordinance and shall supersede the procedures provided under 28 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 87 chapters 35.17 and 35A.11 RCW and all other statutory or other provisions for initiative or referendum that might otherwise apply. SECTIONS. - SeverabilitY. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, that decision shall not affect the validity of the remaining portion of this ordinance and that remaining portion shall maintain its full force and effect. SECTION 6, - Effective Date. This ordinance shall take effect and be in force beginning January 1, 2013, which is at least thirty (30) days from and after its passage and publication, as provided by law. SUZETTE COOKE, MAYOR ATTEST: BRENDA JACOBER, CITY CLERK 29 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 88 APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY PASSED: day of 12012. APPROVED: day of 12012. PUBLISHED: day of 12012. I hereby certify that this is a true copy of Ordinance No. passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) BRENDA JACOBER, CITY CLERK 30 Amend Title 3 New Chapter 3.29 Business& Occupation Tax Administrative Provisions Ordinance 89 City of Kent, Washington Summary Financial Report 4^0 KEN T WASH IN G T O N As of September 30, 2012 90 City of Kent MONTHLY FINANCIAL REPORT Table of Contents EXECUTIVE SUMMARY AND GRAPHIC ANALYSIS Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 General Fund Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 General Fund Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 PropertyTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 SalesTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 UtilityTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Building Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Plan Check Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Recreation Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Fines And Forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Water Operating Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Sewer&Drainage Operating Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Golf Operating Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 CURRENT BUDGET ANALYSIS General Fund Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Annexation Budget Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Street Operating Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Lodging Tax Operating Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Youth/Teen Programs Operating Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Capital Improvement Operating Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Criminal Justice Operating Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Golf Operating Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 INTERNAL SERVICE FUNDS PROFIT AND LOSS Fleet Services Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Central Services Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Information Technology Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Facilities Operating Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Unemployment Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Workers Compensation Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Health and Employee Wellness Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 LEOFF 1 Retirees Benefits Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Liability Insurance Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Property Insurance Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 REVENUE AND EXPENSE SUMMARIES Monthly Comparison 2009,2010,2011 and 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 System Reports General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 39 Special Revenue Operating Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Debt Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Water Utility Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Sewerage Utility Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Golf Course Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Internal Services-excluding Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Insurance Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Street Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Parks Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Other Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Technology Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Facilities Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Water Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Sewerage Capital Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 91 City Of Kent Monthly Financial Summary for September 2012 General Fund Summary Based on information available through September, ending fund balance will grow by $842,292 and is estimated to end the year at $2,141,075 or 3.8% of the expenditure budget. Revenues Overall revenues are estimated to end the year approximately $365,589 or 0.6% under budget. Sales tax, utility tax, and fines and forfeitures are currently lagging below budget, while property tax, permits, plan check fees and recreation fees are trending above budget. Highlights include: • Sales Tax revenues are no longer showing a slight improvement over last year. Receipts in May and June were down significantly, while recent months are more consistent with expected revenues. If the current lag continues, sales tax revenues are estimated to end the year about 5.5%, or $901,938 below budget. • Utility Tax revenues are expected to come in about 1.6% below budget. • Building Permits and Plan Check Fees combined thru September are up 43.2% from the same time last year. This is the eighth consecutive month of double digit increases over last year, which indicates a strong upward trend. These revenues are projected to end the year about $260,000 above budget. • Fines and Forfeitures continue to trend approximately 9% below budget. Staff is researching to find the underlying cause. • Recreation Fees are expected to end the year about $50,000 above budget. Exoenditures Current projections end the year at about $1,143,699 or 1.9% below the budget. A continued lag in hiring is expected to contribute towards expenditures coming in below budget, as well as significant savings in supplies and services. Fund Balance The expected savings in expenditures offsets lagging revenues and grows fund balance by $842,292. Ending fund balance is estimated to be $2,141,075, which equates to 3.8% of the expenditure budget. 92 General Fund Revenues (excluding Annexation) 12,000,000 10,000,000 �16,8,000,000 6,000,000 a, c 4,000 000 �' Ylnr^"`"" 2,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual 11 Act 112Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 3,289,156 3,214,732 4,791,631 9,749,613 3,973,008 4,571,406 3,174,325 2,683,261 4,065,667 9,139,978 3,703,200 4,150,377 12 Bud 3,224,582 3,028,322 4,477,271 10,931,956 5,109,546 4,223,979 3,511,794 3,215,657 4,074,211 10,327,980 3,770,938 4,225,658 12 Pct 3,110,563 3,667,409 4,646,335 9,549,882 5,254,735 4,492,624 3,513,188 3,138,721 4,764,030 +/- (114,019) 639,086 169,064 (1,382,074) 145,189 268,645 1,394 (76,936) 689,819 Put+/- -3.5% 21.1% 3.8% -12.6% 2.8% 6.4% 0.0% -2.4% 16.9% General Fund Revenues (excluding Annexation) 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12Bud Cumulative Budget vs Actual """11AG .12Ac[ ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 3,289,156 6,503,888 11,295,520 21,045,133 25,018,141 29,589,547 32,763,872 35,447,133 39,512,801 48,652,]]9 52,355,979 56,506,356 12 Bud 3,224,582 6,252,904 10,730,175 21,662,132 26,771,678 30,995,657 34,507,451 37,723,107 41,797,319 52,125,299 55,896,237 60,121,895 12 Pct 3,110,563 6,777,971 11,424,306 20,974,188 26,228,923 30,721,547 34,234,735 37,373,456 42,137,486 +/- (114,019) 525,067 694,130 (687,944) (542,754) (274,110) (272,716) (349,651) 340,168 Put+/- -3.5% 8.4% 6.5% -3.2% -2.0% -0.9% -0.8% -0.9% 0.8% 93 General Fund Expenditures (excluding Annexation) 6,000,000 � ,r�//, � ri i,%%„gym 4,000,000 3,000,000 2,000,000 1,000,000 p Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual 11 Act 112Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 4,004,555 4,278,233 4,703,037 4,008,910 4,394,052 4,164,634 5,111,082 3,976,956 4,404,857 4,523,901 4,650,263 4,193,905 12 Bud 4,893,096 4,762,131 5,208,703 4,911,791 5,292,412 4,624,008 5,238,083 4,017,786 4,875,064 4,592,990 5,065,990 4,174,681 12 Pct 3,920,818 4,780,445 4,613,724 4,565,843 4,731,962 4,442,759 5,080,919 4,461,378 4,608,106 +/- (972,278) 18,313 (594,979) (345,948) (560,450) (181,249) (157,165) 443,593 (266,958) Put+/- -19.9% 0.4% -11.4% -7.0% -10.6% -3.9% -3.0% 11.0% -5.5% General Fund Expenditures (excluding Annexation) 70,000,000 60,000,000 50,000,000 era„ 40,000,000 rG 30,000,000 i rd 20,000,000 v 10,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12Bud Cumulative Budget vs Actual """11AG .12Ac[ ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 4,004,555 8,282,789 12,985,826 16,994,736 21,388,789 25,553,423 30,664,505 34,641,461 39,046,318 43,570,220 48,220,483 52,414,388 12 Bud 4,893,096 9,655,227 14,863,930 19,775,721 25,068,134 29,692,142 34,930,225 38,948,011 43,823,075 48,416,064 53,482,054 57,656,735 12 Pct 3,920,818 8,701,263 13,314,987 17,880,830 22,612,792 27,055,551 32,136,469 36,59,848 41,205,954 +/- (972,278) (953,964) (1,548,943) (1,894,891) (2,455,342) (2,636,591) (2,793,756) (2,350,163) (2,617,121) Put+/- -19.9% -9.9% -10.4% -9.6% -9.8% -8.9% -8.0% -6.0% -6.0% 94 Property Tax (excluding Annexation) 8,000,000 7,000,000 6,000,000 A, 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 `lhi, llE r , Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12Bud Monthly Budget vs Adjusted Actual uf 11 Act �12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 0 180,243 523,653 6,751,005 1,184,844 40,525 4,748 87,368 337,694 6,203,844 1,162,259 113,146 12 Bud 0 139,100 449,571 6,738,625 1,405,042 47,966 33,479 78,856 310,128 6,329,055 1,284,910 140,584 12 Pct (3,392) 119,956 411,883 6,005,997 2,213,628 112,122 28,103 96,095 328,944 +/- (3,392) (19,144) (37,688) (732,628) 808,586 64,156 (5,376) 17,239 18,817 Put+/- 0.0% -13.8% -8.4% -10.9% 57.5% 133.8% -16.1% 21.9% 6.1% Property Tax (excluding Annexation) 18,000,000 16,000,000 .. 14,000,000 12,000,000 10,000,000 8,000,000 n, 6,000,000 4,000,000 / 2,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Cumulative Budget vs Actual '""." 11 Act �12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 0 180,243 703,896 7,454,901 8,639,745 8,680,270 8,685,018 8,772,386 9,110,080 15,313,924 16,476,183 16,589,329 12 Bud 0 139,100 588,671 7,327,297 8,732,339 8,780,305 8,813,783 8,892,640 9,202,767 15,531,822 16,816,732 16,957,316 12 Pct (3,392) 116,564 528,447 6,534,444 8,]48,0]2 8,860,194 8,888,297 8,984,392 9,313,336 +/- (3,392) (22,536) (60,224) (792,852) 15,733 79,889 74,514 91,752 110,569 Put+/- 0.0% -16.2% -10.2% -10.8% 0.2% 0.9% 0.8% 1.0% 1.2% 95 Sales Tax (excluding Annexation) 2,500,000 sf 2,000,000 1,500,000 y o� G 1,000,000 in 500,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual -"Aa t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 880,130 1,258,493 2,090,512 788,947 1,008,194 2,291,698 966,265 1,017,202 2,146,124 942,125 1,022,236 2,176,465 12 Bud 862,666 1,200,527 2,059,348 827,708 1,035,860 2,212,480 891,739 997,704 2,175,858 940,256 1,030,527 2,268,108 12 Pct 907,756 1,198,096 2,014,990 810,864 882,252 1,878,097 906,674 996,584 2,129,283 +/- 45,089 (2,431) (44,358) (16,844) (153,608) (334,383) 14,935 (1,120) (46,575) Put+/- 5.2% -0.2% -2.2% -2.0% -14.8% -15.1% 1.7% -0.1% -2.1% Sales Tax (excluding Annexation) 18,000,000 16,000,000 +n" 14,000,000 12,000,000 L" 10,000,000 8,000,000 6,000,000 4,000,000 " 2,000,000 „ 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Cumulative Budget vs Actual 11 Act t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 880,130 2,138,623 4,229,135 5,018,082 6,026,276 8,317,974 9,284,239 10,301,441 12,447,565 13,389,690 14,411,926 16,588,391 12 Bud 862,666 2,063,193 4,122,541 4,950,249 5,986,109 8,198,589 9,090,327 10,088,031 12,263,889 13,204,146 14,234,673 16,502,781 12 Pct 907,756 2,105,852 4,120,842 4,931,706 5,813,958 7,692,054 8,598,728 9,595,312 11,724,595 +/- 45,089 42,658 (1,699) (18,543) (172,151) (506,534) (491,599) (492,719) (539,295) Put+/- 5.2% 2.1% 0.0% -0.4% -2.9% -6.2% -5.4% -4.9% -4.4% 96 Utility Tax (excluding Annexation) 2,000,000 1,800,000 1,600,000 1,200,000 ro��„u, %p o, iov ii,,,.ov,� ��oi 1,000,000 ////G , 9'r�r 800,000 ,,,.,.i,�i�d 600,000 " 400,000 200,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12Bud Monthly Budget vs Adjusted Actual ft 11 Act .12Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 1,477,066 1,079,613 1,190,380 1,272,756 979,284 1,103,687 1,222,489 763,421 677,848 1,097,386 872,585 937,859 12 Bud 1,720,720 1,291,641 1,318,059 1,527,083 1,200,384 1,234,212 1,419,607 1,035,936 1,017,397 1,364,774 1,100,522 1,054,900 12 Pct 1,619,454 1,288,955 1,221,167 1,511,280 1,087,909 1,154,716 1,360,856 1,081,742 1,165,697 +/- (101,267) (2,685) (96,892) (15,803) (112,475) (79,496) (58,752) 45,806 148,300 Put+/- -5.9% -0.2% -7.4% -1.0% -9.4% -6.4% -4.1% 4.4% 14.6% Utility Tax (excluding Annexation) 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 oYj�r 8,000,000 6,000,000 4,000,000 2,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud ✓...11 Alt Cumulative Budget vs Actual .12Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 1,477,066 2,556,679 3,747,059 5,019,815 5,999,099 7,102,786 8,325,276 9,088,696 9,766,544 10,863,930 11,736,516 12,674,375 12 Bud 1,720,720 3,012,361 4,330,420 5,857,503 7,057,887 8,292,099 9,711,706 10,747,642 11,765,039 13,129,814 14,230,335 15,285,235 12 Pct 1,619,454 2,908,409 4,129,576 5,640,855 6,728,764 7,883,480 9,244,336 10,326,078 11,491,775 +/- (101,267) (103,952) (200,844) (216,647) (329,123) (408,618) (467,370) (421,564) (273,264) Put+/- -5.9% -3.5% -4.6% -3J% -4J% -4.9% -4.8% -3.9% -2.3% 97 Building Permits (excluding Annexation) 300,000 25 0,000 200,000 150,000 100,00050,000 /%//,,w,w, '• �1/i 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual ,11 Alt t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 58,256 69,498 143,089 194,314 96,717 165,124 112,325 152,484 126,708 114,693 125,660 139,655 12 Bud 41,614 85,293 145,074 161,756 188,720 204,250 190,921 164,584 130,526 114,024 102,443 94,802 12 Pct 25,055 172,710 167,250 183,913 184,131 198,651 158,301 240,085 223,792 +/- (16,559) 87,416 22,176 22,157 (4,589) (5,599) (32,620) 75,502 93,266 Put+/- -39.8% 102.5% 15.3% 13.7% -2.4% -2J% -17.1% 45.9% 71.5% Building Permits (excluding Annexation) 1,800,000 1,600,000 1,400,000 1,200,000 u.Z 1,000,000 800,000 600,000 400,000 200,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Cumulative Budget vs Actual 11 Act t 12AR ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 58,256 127,754 270,843 465,157 561,874 726,998 839,323 991,807 1,118,515 1,233,209 1,358,869 1,498,524 12 Bud 41,614 126,908 271,981 433,737 622,457 826,707 1,017,627 1,182,211 1,312,737 1,426,761 1,529,204 1,624,006 12 Pct 25,055 197,765 365,015 548,927 733,058 931,709 1,090,009 1,330,095 1,553,887 +/- (16,559) 70,857 93,033 115,190 110,601 105,002 72,382 147,884 241,150 Put+/- -39.8% 55.8% 34.2% 26.6% 17.8% 12.7% 7.1% 12.5% 18.4% 98 Plan Check Fees (excluding Annexation) 200,000 180,000 160,000 140,000 120,000 100,000 80,000 �kol a 60,000 niHnir 40,000 20,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual ,11 Alt t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 52,177 69,976 90,348 114,538 99,915 156,022 78,574 114,226 86,540 65,284 111,525 73,676 12 Bud 68,035 142,983 142,766 159,183 162,336 171,478 154,661 142,284 128,450 112,211 112,001 101,788 12 Pct 66,766 141,814 114,843 169,667 148,793 184,929 107,092 170,656 177,974 +/- (1,269) (1,168) (27,923) 10,484 (13,543) 13,451 (47,569) 28,372 49,524 Put+/- -1.9% -0.8% -19.6% 6.6% -8.3% 7.8% -30.8% 19.9% 38.6% Plan Check Fees (excluding Annexation) 1,800,000 1,600,000 1,400,000 1,200,000 800,000 c� 600,000 400,000 200,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Cumulative Budget vs Actual 11 Act t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 52,177 122,153 212,501 327,039 426,954 582,976 661,550 775,777 862,317 927,601 1,039,127 1,112,803 12 Bud 68,035 211,017 353,783 512,967 675,303 846,781 1,001,442 1,143,726 1,272,176 1,384,387 1,496,388 1,598,176 12 Pct 66,766 208,580 323,423 493,090 641,884 826,813 933,905 1,104,561 1,282,536 +/- (1,269) (2,437) (30,361) (19,877) (33,419) (19,968) (67,537) (39,165) 10,360 Put+/- -1.9% -1.2% -8.6% -3.9% -4.9% -2.4% -6J% -3.4% 0.8% 99 Recreation Fees (excluding Annexation) 250,000 200,000 100,000 0 50,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual ..Aa t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 90,442 30,061 115,292 196,017 ]6,]69 40,512 139,797 103,175 147,392 42,461 43,398 106,335 12 Bud 99,705 35,295 ]3,]39 196,228 74,532 40,951 141,314 104,294 148,991 42,922 43,869 107,489 12 Pct 106,827 39,]]1 90,603 192,227 70,696 50,428 162,378 103,085 148,637 +/- 7,123 4,476 16,864 (4,001) (3,836) 9,476 21,065 (1,209) (354) Put+/- 7.1% 12.7% 22.9% -2.0% -5.1% 23.1% 14.9% -1.2% -0.2% Recreation Fees (excluding Annexation) 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Cumulative Budget vs Actual 11 Act t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 90,442 120,503 235,795 431,812 508,581 549,093 688,890 792,065 939,456 981,918 1,025,316 1,131,651 12 Bud 99,705 134,999 208,738 404,966 479,499 520,450 661,764 766,058 915,048 957,970 1,001,839 1,109,328 12 Pct 106,827 146,598 237,200 429,427 500,124 550,551 712,929 816,015 964,652 +/- 7,123 11,598 28,462 24,461 20,625 30,101 51,166 49,957 49,603 Pct+/- 7.1% 8.6% 13.6% 6.0A 4.3A 5.8A ].]A 6.5A 5.4A 100 Fines & Forfeitures (excluding Annexation) 180,000 160,000 140,000 A 120,000 ,"u' ✓, ,:.. i11Y1' .....alai.. �.%2/ ,,,,,D/in„ ,,,,,,, 100,000 80,000 60,000 40,000 20,000 p Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual -."Act t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 120,297 138,193 159,857 132,864 126,771 124,272 125,723 149,747 124,193 121,304 118,703 118,480 12 Bud 118,990 139,141 154,404 135,034 118,505 132,628 117,475 138,632 119,428 112,842 104,943 106,939 12 Pct 88,688 128,588 148,075 129,454 123,587 121,287 105,670 111,370 107,144 +/- (30,302) (10,553) (6,330) (5,579) 5,082 (11,341) (11,805) (27,262) (12,284) Put+/- -25.5% -7.6% -4.1% -4.1% 4.3% -8.6% -10.0% -19J% -10.3% Fines & Forfeitures (excluding Annexation) 1,800,000 1,600,000 p, 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud 11 Act Cumulative Budget vs Actual t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 120,297 258,489 418,346 551,210 677,981 802,253 927,976 1,077,722 1,201,915 1,323,220 1,441,923 1,560,403 12 Bud 118,990 258,131 412,535 547,569 666,074 798,702 916,177 1,054,809 1,174,236 1,287,078 1,392,021 1,498,960 12 Pct 88,688 217,276 365,351 494,805 618,392 739,679 845,349 956,718 1,063,862 +/- (30,302) (40,855) (47,185) (52,764) (47,682) (59,023) (70,828) (98,090) (110,374) Put+/- -25.5% -15.8% -11.4% -9.6% -7.2% -7.4% -]J% -9.3% -9.4% 101 Water Operating Revenues (excluding Annexation) 2,500,000 2,000,000 ....rye �� 1,500,000 ',, 1,000,000 500,000 p Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual -."Act t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 1,287,443 992,936 1,079,243 1,033,639 1,260,273 1,314,426 1,710,389 1,564,575 1,982,268 1,399,436 996,767 1,363,229 12 Bud 1,340,004 1,015,549 1,055,626 1,063,072 1,314,926 1,373,475 1,656,790 1,713,451 2,045,330 1,290,923 1,077,039 1,310,206 12 Pct 1,327,353 1,012,681 1,027,632 1,044,570 1,367,405 1,428,526 1,661,086 1,673,155 2,063,752 +/- (12,650) (2,868) (27,994) (18,501) 52,478 55,051 4,296 (40,296) 18,422 Put+/- -0.9% -0.3% -2J% -1J% 4.0% 4.0% 0.3% -2.4% 0.9% Water Operating Revenues (excluding Annexation) 18,000,000 16,000,000 14,000,00012,000,000 n,v 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud 11 Act Cumulative Budget vs Actual t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 1,287,443 2,280,379 3,359,622 4,393,261 5,653,534 6,967,960 8,678,349 10,242,924 12,225,192 13,624,628 14,621,396 15,984,625 12 Bud 1,340,004 2,355,553 3,411,179 4,474,251 5,789,177 7,162,652 8,819,442 10,532,893 12,578,224 13,869,147 14,946,186 16,256,392 12 Pct 1,327,353 2,340,035 3,367,667 4,412,237 5,779,642 7,208,168 8,869,254 10,542,409 12,606,161 +/- (12,650) (15,518) (43,512) (62,013) (9,535) 45,516 49,812 9,516 27,938 Put+/- -0.9% -0J% -1.3% -1.4% -0.2% 0.6% 0.6% 0.1% 0.2% 102 Sewer and Drainage Operating Revenues (excluding Annexation) 4,000,000 3,500,000 - IYA 3,000,000 I'd 2,500,000 /// 2,000,000 1,500,000 1,000,000 500,000 p Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual 9 11 Act 112Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 3,439,530 2,901,019 3,181,459 3,290,332 3,121,048 3,022,877 3,674,916 3,031,060 3,512,992 3,088,626 2,689,774 3,564,352 12 Bud 3,299,376 2,772,650 2,994,070 3,114,719 3,013,243 2,939,628 3,394,588 2,962,163 3,257,839 3,001,131 2,785,909 3,343,292 12 Pct 3,473,066 2,988,938 3,081,870 3,390,448 3,234,163 3,098,707 3,601,095 3,154,570 3,307,082 +/- 173,690 216,288 87,800 275,729 220,920 159,079 206,507 192,407 49,242 Put+/- 5.3% 7.8% 2.9% 8.9% 7.3% 5.4% 6.1% 6.5% 1.5% Sewer and Drainage Operation Revenues (excluding Annexation) 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud 11 Alt Cumulative Budget vs Actual t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 3,439,530 6,340,550 9,522,009 12,812,341 15,933,389 18,956,266 22,631,182 25,662,242 29,175,234 32,263,860 34,953,634 38,517,986 12 Bud 3,299,376 6,072,027 9,066,097 12,180,816 15,194,059 18,133,687 21,528,275 24,490,437 27,748,277 30,]49,40] 33,535,316 36,878,608 12 Pct 3,473,066 6,462,004 9,543,874 12,934,322 16,168,486 19,267,192 22,868,287 26,022,857 29,329,939 +/- 173,690 389,977 477,777 753,506 974,426 1,133,506 1,340,012 1,532,420 1,581,662 Put+/- 5.3% 6.4% 5.3% 6.2% 6.4% 6.3% 6.2% 6.3% 5.7% 103 Golf Operating Revenues (excluding Annexation) 600,000 5 00,000 400,000 300,000 ,n 200,000 .............. /%�' %ii 100,000 "'" uc ",i ,m„ ill�6< p Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Monthly Budget vs Adjusted Actual ......a1Act 112Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 63,971 102,256 142,969 225,930 233,397 317,321 368,596 367,101 238,734 166,476 78,990 143,288 12 Bud 102,819 137,258 186,137 274,712 304,421 408,348 488,967 476,903 298,682 209,635 108,]]6 157,685 12 Pct 66,561 93,636 125,860 246,460 284,901 311,823 359,641 343,856 247,964 +/- (36,259) (43,622) (60,276) (28,252) (19,520) (96,525) (129,326) (133,046) (50,718) Put+/- -35.3% -31.8% -32.4% -10.3% -6.4% -23.6% -26.4% -27.9% -17.0% Golf Operating Revenues (excluding Annexation) 3,500,000 3,000,000 2,500,000 vo,, 2,000,000 1,500,000 1,000,000 (' 500,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 12 Bud Cumulative Budget vs Actual 11 Act t 12 Act ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 11 Pct 63,971 166,227 309,196 535,126 768,523 1,085,844 1,454,440 1,821,541 2,060,275 2,226,751 2,305,741 2,449,029 12 Bud 102,819 240,078 426,215 700,927 1,005,348 1,413,696 1,902,663 2,379,566 2,678,247 2,887,883 2,996,659 3,154,344 12 Pct 66,561 160,197 286,058 532,518 817,419 1,129,242 1,488,882 1,832,739 2,080,703 +/- (36,259) (79,881) (140,157) (168,409) (187,929) (284,454) (413,781) (546,827) (597,544) Pct+/- -35.3 A -33.3% -32.9% -24.0 A -18.7 A -20.1 A -21.7 A -23.0 A -22.3 A 104 GENERALFUND (without Annexation) As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Prelim Prelim Beginning Fund Balance 2,182,698 1,298,783 1,298,783 1,936,791 3,156,155 Revenues Taxes: Property 16,589,329 16,957,316 17,063,337 17,294,918 17,596,447 Sales Tax 16,588,391 16,502,781 15,600,843 15,598,428 15,758,948 Utility 12,674,375 15,285,235 15,047,885 15,259,554 15,478,494 Other 794,095 786,518 802,898 2,024,118 2,044,198 Licenses and Permits 2,237,590 2,479,461 2,847,333 2,955,471 3,071,283 Intergovernmental Revenue 1,440,895 1,301,206 1,488,772 A 1,148,204 1,503,543 Charges for Services 3,411,504 3,996,731 4,189,703 4,221,242 4,301,149 Fines and Forfeitures 1,543,311 1,498,960 1,419,990 1,537,250 1,552,429 Miscellaneous Revenue 1,209,774 1,313,687 1,295,545 1,236,384 1,246,807 Transfers In 1,001,277 975,000 975,000 994,139 1,006,524 TOTAL REVENUES 57,490,541 61,096,895 60,731,306 62,269,708 63,559,822 Expenditures Salaries& Benefits 41,058,578 43,144,850 42,763,021 42,832,989 43,743,825 Supplies 1,699,727 2,196,084 1,922,601 2,263,679 2,289,702 Services &Charges 19,962,057 22,889,846 22,089,966 22,750,038 23,552,086 Capital Outlay 20,416 140,816 140,816 Cost Allocations (10,326,390) (10,714,861) (10,403,368) (10,611,337) (10,642,278) Transfers Out 5,960,068 3,375,978 3,375,978 3,814,975 3,323,456 TOTAL EXPENDITURES 58,374,456 61,032,713 59,889,014 61,050,344 62,266,791 Net Revenues less Expenditures (883,915) 64,182 842,292 1,219,364 1,293,031 Ending Fund Balance 1,298,783 1,362,965 2,141,075 3,156,155 4,449,186 Target for Contingency 5,241,439 5,765,674 5,651,304 5,723,537 5,894,334 Difference (3,942,656) (4,402,709) (3,510,229) (2,567,382) (1,445,148) 2.5% 2.4% 3.8% 5.5% 7.5% Major Drivers: A - WA State budget cut Liquor Excise Tax to local governments for their FY 3uly 2012 thru June 2013. As a result, estimated actuals are reduced by $110,500 for 2012. The reduction has been fully offset by $243,753 in one-time additional revenues received from the disposal of state liquor stores. 105 ANNEXATION As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Prelim Prelim Beginning Fund Balance (1,356,589) (988,677) (655,268) 415,875 500,122 Revenues Taxes: Property 2,778,301 2,824,923 2,830,387 2,881,141 2,931,373 Sales Tax 4,199,570 4,212,630 4,308,754 4,304,061 4,359,680 Utility 2,869,930 2,582,602 2,671,253 2,962,011 2,984,136 Other 336,295 385,400 332,344 332,501 335,826 Licenses and Permits 11,431 6,378 Intergovernmental Revenue 1,089,069 929,407 982,099 A 834,153 940,933 Charges for Services 6,176 3,158 TOTAL REVENUES 11,290,772 10,934,962 11,134,373 11,313,867 11,551,948 Expenditures Salaries &Benefits 5,797,107 5,259,167 4,988,237 5,563,848 5,677,882 Supplies 461,091 763,215 374,554 931,590 949,543 Services &Charges 4,336,902 4,823,770 4,576,067 4,734,182 4,847,907 Capital Outlay 112,156 Cost Allocations (117,805) (26,869) TOTAL EXPENDITURES 10,589,451 10,846,152 9,911,989 11,229,620 11,475,332 Net Revenues less Expenditures 701,321 88,810 1,222,383 84,247 76,616 Ending Fund Balance (655,268) (899,867) 567,115 500,122 576,738 Major Drivers: A - WA State budget cut Liquor Excise Tax to local governments for their FY July 2012 thru June 2013. As a result, estimated actuals are reduced by $31,900 for 2012. The reduction has been fully offset by $70,362 in one-time additional revenues received from the disposal of state liquor stores. 106 STREET OPERATING FUND As of September 30,2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Prelim Prelim Beginning Fund Balance (1,402,940) 355,417 355,417 271,151 392,517 Revenues Fuel Tax- Unrestricted 1,809,260 1,934,060 1,837,357 1,886,725 1,905,592 Water Utility Tax 158,630 165,694 160,217 167,414 172,436 Sewer Utility Tax 225,584 228,153 224,584 231,245 238,182 Drainage Utility Tax 157,496 167,553 170,096 173,236 178,433 Electric Utility Tax 1,110,606 1,081,102 1,099,500 1,119,842 1,131,040 Gas Utility Tax 385,646 377,313 401,072 393,959 397,899 Garbage Utility Tax 215,379 204,536 158,856 205,866 207,925 Telephone Utility Tax 685,771 676,428 692,629 669,929 669,929 Other Tax 4,275,000 4,275,000 Miscellaneous Revenues (48,474) 70 70 Transfers In 2,105,000 Total Revenues 6,853,374 4,834,839 4,695,837 9,123,286 9,176,506 Total Resources 5,450,434 5,190,256 5,051,254 9,394,437 9,569,023 Expenditures&Transfers Debt Service PW Trust Fund Loan 800,835 797,201 797,200 793,499 789,798 LTGO Bonds 2000 202,899 203,679 203,679 146,660 148,276 LTGO Bonds 2002 647,206 650,056 650,056 650,945 652,007 GO Refund (96) 2004 151,806 136,393 136,393 139,507 151,089 GO Refund 2005(93,95,00,96TF) 38,016 37,789 37,789 114,714 112,485 LTGO Bonds 2008 449,880 487,066 487,066 466,921 472,025 LTGO Bonds 2009 207,797 207,213 207,213 207,107 207,637 Total Debt Service 2,498,438 2,519,397 2,519,396 2,519,353 2,533,317 Operating Costs Street Utility Operations 2,062,248 1,742,774 1,725,346 1,674,419 1,697,543 Street Tree Maintenance Program 240,239 249,834 244,837 267,968 274,145 Engineering Services Allocation 259,359 264,546 264,546 265 180 265,180 Total Operating Costs 2,561,846 2,257,154 2,234,730 2,207:567 2,236,868 Arterials Asphalt Overlays 4,275,000 4,275,000 84th Avenue Rehabilitation 137,733 4th Avenue Improvement 999,127 212th UPRR/BN Grade Separation 95,813 BNSF Grade Separation 459,525 Closed and other Arterial Projects (1,689,479) (7,228) Total Arterials 2,719 (7,228) 4,275,000 4,275,000 Intersection Improvements Traffic Signal Control Cabinets (6,845) Signal Battery Backup 961 Closed and Other Intersection Imps (100,000) Total Intersection Improvements (105,884) Other Improvements Transportation Master Plan 6,017 Mero Transit Services 35,000 155,000 155,000 Russell Road Maint Facility 67,108 2nd Avenue Pedestrian Imp 29,772 Total Other Improvements 137,898 155,000 155,000 Total Effective Transportation System 2,596,579 2,412,154 2,382,502 6,482,567 6,511,868 Total Expense&Transportation 5,095,017 4,931,551 4,901,897 9,001,920 9,045,185 Change In Fund Balance 1,758,357 (96,712) (206,060) 121,366 131,321 Ending Fund Balance 355,417 258,705 149,357 392,517 523,838 107 LODGING TAX OPERATING FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Prelim Prelim Beginning Fund Balance 48,624 86,810 86,810 94,907 130,839 Revenues Lodging Tax 182,840 181,160 186,497 194,382 196,812 Miscellaneous Income 33 300 110 50 50 Total Revenues 182,873 181,460 186,607 194,432 196,862 Total Resources 231,498 268,270 273,417 289,339 327,701 Expenditures Seattle Southside Visitor Services 120,000 120,000 120,000 120,000 120,000 Tourism Unallocated 5,000 25,000 25,000 20,000 20,000 Tourism Chamber 18,500 18,500 18,500 18,500 18,500 Total Expenditures 143,500 163,500 163,500 158,500 158,500 Transfers Out - ShoWare Marquee Project 1,188 Transfers Out - ShoWare Impact Study 5,000 5,000 Transfers Out - Ballfield Portable Fencing 10,000 10,000 Total Expenditures and Transfers 144,688 178,500 178,500 158,500 158,500 Change in Fund Balance 38,186 2,960 8,107 35,932 38,362 Ending Fund Balance 86,810 89,770 94,917 130,839 169,201 108 YOUTH/TEEN PROGRAMS OPERATING FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget BEGINNING FUND BALANCE (57,001) 20,579 20,579 119,957 126,448 REVENUES Utility Taxes: Water 47,589 52,279 53,207 50,224 51,731 Sewer 67,675 68,437 70,006 69,374 71,455 Drainage 47,249 50,476 50,806 55,971 57,650 Electric 333,182 338,293 331,847 335,885 339,244 Gas 115,694 115,261 110,596 118,164 119,346 Garbage 64,614 61,481 57,499 61,824 62,442 Telephone 205,731 202,928 206,378 200,938 200,938 Miscellaneous Revenues 223 474 429 250 255 TOTAL REVENUES 881,957 889,629 880,768 892,630 903,061 TOTAL RESOURCES 824,956 910,208 901,347 1,012,587 1,029,509 EXPENDITURES Valued Government Services Transfer Out - General Fund Teen Programs 762,377 775,000 775,000 844,139 856,524 Teen Golf Program 42,000 42,000 42,000 42,000 42,000 TOTAL EXPENDITURES (TRANSFERS) 804,377 817,000 817,000 886,139 898,524 Change In Fund Balance 77,580 72,629 63,768 6,491 4,537 ENDING FUND BALANCE 20,579 93,208 84,347 126,448 130,985 109 CAPITAL IMPROVEMENT OPERATING FUND Including Both Portions of Estate Excise Taxes As of September 30, 2012 2011 2012 2012 2013 2014 Actuals Budget Est Actual Prelim Prelim Total Beginning Fund Balance (8,209,839) (12,052,614) (12,052,614) (12,411,319) (6,709,703) Revenues&Other Fin Sources Sales Tax 3,784,084 4,855,698 4,336,560 4,340,469 4,405,576 Real Estate Excise Tax 1,050,162 925,272 1,572,828 1,017,799 1,148,819 Real Estate Excise Tax-2nd Qtr 1,050,162 925,272 1,572,828 1,017,799 1,148,819 Real Estate Excise Tax-St Percent 134,852 164,399 Miscellaneous Revenues 3,381 3,518 3,518 3,939 3,978 Transfer In - Facilities 260,000 260,000 Sale of Property 6,000,000 6,000,000 Long-Term Leases 100,000 Other Tax 1,500,000 1,500,000 Transfer In - GF 450,000 2,090,929 2,090,929 2,193,787 2,259,600 Total Rev/Other Fin Sources 6,572,640 15,060,689 10,001,062 16,073,793 10,466,792 Total Resources (1,637,199) 3,008,075 (2,051,553) 3,662,474 3,757,089 Expenditures (Transfers) Debt Service Non-Voted Debt Service 7,533 4,205 LTGO Bonds 2000 539,945 542,021 542,021 390,284 394,587 Valley Communications 157,790 250,030 250,030 240,880 229,280 LTGO Bonds 2002 508,244 510,393 510,393 263,105 263,532 LTGO /Taxable Bonds 2003 666,259 667,275 667,275 666,340 186,491 GO Refund (96) 2004 1,611,435 1,447,830 1,447,830 1,480,875 1,603,821 GO Refund 2005 (93,95,00,96TF) 63,492 63,112 63,112 191,579 187,857 LTGO Bonds 2006 782,000 770,000 770,000 758,000 1,246,000 LTGO Bonds 2008 1,418,970 1,412,334 1,412,334 1,306,679 1,324,575 GO Refund 2009 (Part 1999) 723,670 721,641 721,641 721,268 723,120 ShoWare Debt Service 2,793,077 2,500,000 2,500,000 2,500,000 2,400,000 Interfund Loan Debt Service 1,053,167 1,053,167 Subtotal Debt Service 9,272,415 8,884,636 8,888,841 9,572,177 9,612,430 Facilities Floor Coverings (51) HVAC Lifecycle Replacements 205,000 75,000 75,000 Kent Meridian Pool Repairs/Mtc 78,288 25,000 25,000 Parks Maintenance Shop Renovation 35,000 35,000 Public Building Major Maintenance 2,876 50,000 50,000 Sealcoat Parking Lots 35,000 35,000 Security Camera Software Upgrade 40,000 40,000 Closed and Other Facilities Projects (181,114) Subtotal Facilities 105,000 260,000 260,000 0 0 Information Technology Hardware Lifecycle Replacmnts 120,000 120,000 Technology Projects 1,007,500 Closed &Other Info Tech Projects Subtotal Information Technology 0 1,127,500 120,000 0 0 Parks Adopt-a-Park Program 38,516 Eagle Scout Projects 26,873 Earthworks Stairs 75,000 Kent Parks Foundation 23,127 Lake Meridian Play Equipment 41,283 110 CAPITAL IMPROVEMENT OPERATING FUND Including Both Portions of Estate Excise Taxes As of September 30, 2012 2011 2012 2012 2013 2014 Actuals Budget Est Actual Prelim Prelim Lifecycle Parks System 18,434 400,000 400,000 500,000 500,000 Park Land Acquisition 707,401 Park Master Plans 6,526 Rental Houses Demolition 25,000 Town Square Park 19,270 Turnkey Neighborhood Park 42,179 Urban Forestry 5,000 15,000 15,000 Closed and Other Parks Projects (315,608) (450,000) (450,738) Subtotal Parks 713,000 (35,000) (35,738) 500,000 500,000 Public Safety Closed &Other Public Safety Projects Subtotal Public Safety 0 0 0 0 0 Other Event Center Lifecycle 300,000 300,000 300,000 300,000 300,000 Annexation Study (48,076) (48,076) Neighborhood Matching Grants 25,000 Street Projects 1,007,500 Subtotal Other 325,000 1,259,424 251,924 300,000 300,000 Total Expenditures (Transfers) 10,415,415 11,496,560 9,485,027 10,372,177 10,412,430 Change in Fund Balance (3,842,776) 3,564,129 516,035 5,701,616 54,362 Total Ending Fund Balance (12,052,614) (8,488,485) (11,536,580) (6,709,703) (6,655,341) 111 CRIMINAL JUSTICE OPERATING FUND September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget Beginning Fund Balance (737,912) 327,985 327,985 512,961 574,021 Revenues Sales Tax - Local Option (1) 1,847,825 1,792,028 1,821,955 1,814,268 1,841,482 MVET - Basic Crime 88,583 92,080 89,693 92,899 93,829 MVET - High Crime 140,978 185,500 123,498 191,199 193,110 MVET - Special Programs 70,949 74,453 77,178 74,406 75,150 Miscellaneous Revenues 865 131 100 100 Transfers In 980,000 Total Revenues 3,128,335 2,144,926 2,112,454 2,172,872 2,203,671 Total Resources 2,390,422 2,472,911 2,440,439 2,685,833 2,777,692 Expenditures Law Salaries & Benefits 605,802 634,513 566,206 554,171 561,938 Supplies 20,265 30,194 21,630 30,554 30,922 Services &Charges 11,745 22,684 14,181 22,349 22,754 Domestic Violence Salaries & Benefits 247,605 186,473 160,105 138,291 140,497 Services &Charges 8,861 8,037 8,740 8,198 8,361 KYFS - Youth Violence Prevention Services &Charges 25,000 25,000 25,000 25,000 25,000 Police Salaries & Benefits 1,058,299 1,126,892 1,036,836 1,135,553 1,145,683 Supplies 31,837 49,298 42,246 58,064 71,828 Services &Charges 36,524 87,691 57,555 123,132 130,396 Total Expenditures 2,045,938 2,170,782 1,932,499 2,095,312 2,137,379 Transfers Out 16,500 16,500 16,500 16,500 16,500 Total Expenditures and Transfers 2,062,438 2,187,282 1,948,999 2,111,812 2,153,879 Increase (Decrease) In Fund Balance 1,065,897 (42,356) 163,456 61,060 49,792 Ending Fund Balance 327,985 285,629 491,440 574,021 623,813 (1) Council resolution allocated 11% of Criminal Justice sales tax to Domestic Violence. 112 GOLF OPERATING FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actuals Budget Est Actual Budget Budget Beginning Working Capital (1,740,829) (2,174,297) (2,174,297) (2,295,795) (2,138,505) Revenues IS Hole Course Green Fees 1,022,112 1,438,000 1,186,037 1,438,000 1,438,000 Cart &Club Rentals 141,477 204,000 165,839 204,000 204,000 Restaurant Lease 50,724 60,000 48,195 60,000 60,000 Par 3 Course Green Fees 222,051 285,000 222,051 285,000 285,000 Cart &Club Rentals 12,082 14,000 12,082 14,000 14,000 Food & Beverage Sales 11,065 20,000 10,221 20,000 20,000 Driving Range Driving Range Fees 449,488 415,000 449,488 415,000 415,000 Mini Putt Fees 23,909 60,000 30,792 60,000 60,000 Lesson Fees 86,947 120,000 91,178 120,000 120,000 Cart &Club Rentals 756 1,693 Food & Beverage Sales 29,464 35,000 29,464 35,000 35,000 Merchandising Merchandise Sales 449,538 563,344 494,492 563,344 563,344 Other Insurance Reimbursement 115,861 115,861 Miscellaneous Revenues 1,498 3,984 Driving Range Cell Tower Lease 20,100 23,128 Total Revenues 2,521,209 3,330,205 2,884,502 3,214,344 3,214,344 Total Resources 780,380 1,155,908 710,205 918,549 1,075,839 Expenditures (Transfers) 18 Hole Course 1,751,861 1,683,062 1,625,875 1,724,636 1,754,017 Par Course 308,692 325,284 310,141 294,944 299,546 Driving Range 408,786 452,223 417,964 479,598 488,012 Merchandising 442,200 549,161 469,261 554,930 565,013 Repair Damaged Assets 115,861 117,861 Other Expenses 3,246 3,652 2,946 Total Expenditures (Transfers) 2,914,785 3,125,591 2,944,753 3,057,054 3,106,588 Net Change in Working Capital (393,576) 204,614 (60,251) 157,290 107,756 Total Working Capital (2,134,405) (1,969,683) (2,234,548) (2,138,505) (2,030,749) Working Capital Difference 39,892 204,614 61,247 (2,138,505) (2,030,749) 113 FLEET SERVICES FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Prelim Prelim Beginning Working Capital 2,483,059 2,628,235 2,628,235 1,528,371 1,237,151 Operating Revenue Fleet Operations 3,058,613 2,805,692 2,861,806 3,187,651 3,335,555 Fleet Replacement 367,422 372,616 372,616 792,850 1,042,850 Miscellaneous Revenues 3,590 13,835 12,165 13,835 13,835 Total Operating Revenue 3,429,625 3,192,143 3,246,587 3,994,336 4,392,240 Total Resources 5,912,684 5,820,378 5,874,822 5,522,707 5,629,391 Expenditures Salaries & Benefits 761,307 808,986 792,806 827,334 835,845 Supplies 1,365,507 1,413,345 1,413,345 1,583,964 1,615,815 Services 704,829 754,789 754,789 739,124 756,212 Capital Outlay 238,385 1,385,511 1,385,511 1,135,000 500,000 Total Expenditures 3,070,027 4,362,631 4,346,451 4,285,422 3,707,872 Transfers Out 214,422 134 Total Expenses and Transfers 3,284,449 4,362,631 4,346,451 4,285,556 3,707,872 Net Change In Working Capital 145,176 (1,170,488) (1,099,864) (291,220) 684,368 Total Working Capital 2,628,235 1,457,747 1,528,371 1,237,151 1,921,519 114 CENTRAL SERVICES FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Prelim Prelim Beginning Working Capital (66,659) (122,352) (122,352) (124,116) 192 REVENUE Central Stores 132,922 236,376 134,963 217,827 222,183 Postage 200,572 355,264 213,784 296,204 301,610 Misc Revenue 120,882 Total Revenue 333,495 591,640 348,747 634,913 523,793 Total Resources 266,836 469,288 226,395 510,797 523,985 EXPENSE Central Stores 130,063 203,386 108,688 207,454 211,603 Postage 240,201 273,096 217,327 282,099 287,248 Central Services 18,923 19,301 19,301 19,361 19,555 Total Expense 389,187 495,783 345,316 508,914 518,406 Net Operating Income (55,693) 95,857 3,431 125,999 5,387 Ending Working Capital (122,352) (26,495) (118,921) 1,883 5,579 115 INFORMATION TECHNOLOGY FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Prelim Prelim Beginning Working Capital (203) 399,972 399,972 414,500 458,698 Revenues Contributions & Other 4,139,517 4,670,110 4,512,074 4,212,504 4,324,362 Utility Tax 1,040,000 1,045,200 Intergovernmental - RFA 445,964 410,839 410,839 444,012 452,893 Technology Fees 240,000 356,400 374,800 389,308 Total Revenue 4,585,481 5,320,949 5,279,313 6,071,316 6,211,763 Total Resources 4,585,278 5,720,921 5,679,285 6,485,816 6,670,461 Expenditures Computer Systems &Tech Svcs Salaries & Benefits 1,608,751 2,232,566 2,166,389 1,976,384 2,003,262 Supplies 95,662 41,923 138,603 42,629 43,349 Services &Charges 1,116,749 1,214,957 1,214,957 1,221,064 1,259,113 Subtotal 2,821,162 3,489,446 3,519,949 3,240,077 3,305,724 Telecommunications Salaries & Benefits 140,210 149,266 147,824 147,009 149,498 Supplies 19,643 14,496 14,482 14,774 15,058 Services &Charges 311,469 396,600 371,600 406,661 415,337 Subtotal 471,322 560,362 533,905 568,444 579,893 Printing/Graphics/Cable TV Salaries & Benefits 551,459 561,238 550,238 574,237 583,105 Supplies 38,785 74,389 38,128 75,821 77,282 Services &Charges 302,578 318,994 318,994 343,739 351,336 Subtotal 892,822 954,621 907,360 993,797 1,011,723 Total Operating Expense 4,185,306 5,004,429 4,961,214 4,802,318 4,897,340 Transfers Out-LT Lifecycle 240,000 321,147 1,226,491 1,247,808 Total Exp &Transfers 4,185,306 5,244,429 5,282,360 6,028,809 6,145,148 Net Income 400,176 76,520 (3,048) 42,507 66,615 Ending Working Capital 399,972 476,492 396,925 457,007 525,313 116 FACILITIES OPERATING FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget Beginning Working Capital 1,526 306,190 306,190 614,930 499,850 Operating Revenue Intergovernmental -RFA 677,689 852,227 843,316 843,316 843,316 Rental Fees - Internal 3,869,088 4,240,371 4,240,371 3,997,582 4,178,609 Leases 156,692 29,909 26,916 26,916 Miscellaneous Revenue 12,429 83,762 21,845 16,269 16,269 Total Revenue 4,715,898 5,176,360 5,135,441 4,884,083 5,065,110 Total Resources 4,717,424 5,482,550 5,441,631 5,499,013 5,564,960 Operating Expense Salaries and benefits 2,271,279 2,435,914 2,287,817 2,165,481 2,209,721 Supplies 291,157 371,171 308,539 321,244 329,655 Services and charges 4,209,918 1,989,469 1,806,700 1,903,323 1,951,217 Cost allocation (2,514,022) Total Operating Expense 4,258,332 4,837,054 4,403,056 4,390,048 4,490,593 Other Financial Uses Transfers Out - Projects 260,000 260,000 456,212 448,811 Transfers Out - Debt 152,903 152,903 152,903 152,903 152,903 Total Non Operating Rev (Exp) 152,903 412,903 412,903 609,115 601,714 Total Expenses and Uses 4,411,235 5,249,957 4,815,959 4,999,163 5,092,307 Net Change In Working Capital 304,663 (73,597) 319,483 (115,080) (27,197) Ending Working Capital 306,190 232,593 625,672 499,850 472,653 117 UNEMPLOYMENT FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget Beginning Working Capital 42,250 201,790 201,790 219,379 188,738 Revenues Contributions 401,758 402,324 390,728 402,324 402,324 Miscellaneous Revenue 197 100 241 250 250 Total Revenues 401,956 402,424 390,969 402,574 402,574 Total Resources 444,205 604,214 592,760 621,953 591,312 Expenditures Salaries & Benefits 25,966 24,706 17,706 23,951 24,262 Supplies 250 444 222 4,177 4,260 Claims Paid 1st Quarter 43,309 100,000 77,395 100,000 92,500 2nd Quarter 59,289 100,000 101,465 100,000 92,500 3rd Quarter 37,379 100,000 72,841 100,000 92,500 4th Quarter 73,425 100,000 100,000 100,000 92,500 Other Services & Charges 2,796 4,987 3,107 5,087 5,189 Total Expenditures 242,415 430,137 372,735 433,215 403,711 Net Income 159,541 (27,713) 18,234 (30,641) (1,137) Ending Working Capital 201,790 174,077 220,024 188,738 187,601 118 WORKERS COMPENSATION FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget Beginning Working Capital (128,109) (509,195) (509,195) 50,489 160,609 Revenues Contributions 1,405,995 1,816,362 1,613,797 1,656,075 1,656,075 Miscellaneous Revenue 2,744 5,000 3,315 3,000 3,000 Total Revenue 1,408,740 1,821,362 1,617,111 1,659,075 1,659,075 Total Resources 1,280,631 1,312,167 1,107,917 1,709,564 1,819,684 Expenditures Salaries & Benefits 105,315 109,148 93,078 106,022 107,262 Judgements & Damages 820,745 992,168 707,775 1,000,000 950,000 Ultimate Loss Adjustment 563,979 Liability Insurance 60,636 76,700 64,720 78,234 79,799 Intergovernmental Services 137,804 204,000 140,560 204,000 204,000 Administrative Expenses 59,153 52,723 60,337 53,777 54,853 Debt & Financial services 9,916 Other Expenses 18,650 16,302 16,302 16,660 16,962 Safety Program 23,544 88,492 20,994 90,262 92,066 Total Expenditures 1,789,826 1,549,449 1,103,766 1,548,955 1,504,942 Net Income (381,086) 271,913 513,346 110,120 154,133 Ending Working Capital (509,195) (237,282) 4,151 160,609 314,742 Claims Reserve* Reserve Amount 2,433,563 2,433,563 2,433,563 - - Actuary Recommended 2,293,198 2,293,198 2,293,198 2,293,198 2,293,198 *Claims reserve is not included in ending working capital. It is adjusted annually on December 31st. The variance between reserve amount booked and actuary recommended amount is due to a timing difference between when the actual entries must be made versus receipt of the actuary report. 119 HEALTH AND EMPLOYEE WELLNESS FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget Beginning Working Capital 3,219,631 4,634,833 4,634,833 5,128,725 6,062,526 Revenues Contributions Blue Cross 9,019,416 9,149,130 9,182,488 9,606,586 10,086,916 Group Health 411,121 471,704 395,467 424,534 445,761 Employee Share Blue Cross 915,841 993,399 915,605 1,043,069 1,095,222 Group Health 53,183 61,640 51,184 55,476 58,250 RFA Contributions 3,732,861 3,789,581 3,654,869 COBRA 123,219 82,173 135,540 86,282 90,596 Miscellaneous 179,176 141,017 188,894 148,068 155,471 Total Revenue 14,434,817 14,688,644 14,524,047 11,364,015 11,932,216 Total Resources 17,654,448 19,323,477 19,158,880 16,492,740 17,994,742 Expenditures Salaries & Benefits 317,259 350,273 331,089 350,704 356,411 Blue Cross Claims 10,547,107 10,467,322 10,880,898 8,045,679 8,881,459 Blue Cross Admin Fees 657,522 570,188 567,763 397,404 417,274 Blue Cross Audit Fees 58,169 58,169 59,332 60,519 Delta Dental Claims 978,315 1,010,993 937,868 811,325 860,816 Delta Dental Admin Fees 53,133 49,858 62,610 46,015 48,316 Vision Service Plan Claims 125,750 144,947 120,864 95,021 95,021 Vision Service Plan Admin Fees 27,195 22,277 26,276 14,293 15,008 Stop Loss Fees 397,437 469,598 439,148 415,113 477,380 Stop Loss Reimbursements (410,512) (349,793) (349,793) (349,793) (349,793) Group Health Premiums 464,304 461,973 446,651 531,269 610,959 IBNR Adjustment (173,300) 113,700 (110,300) (127,800) 61,700 Wellness 12,100 57,172 15,129 88,314 89,482 Other Professional Services 23,305 52,254 54,453 53,338 54,345 Total Expenditures 13,019,615 13,478,931 13,480,825 10,430,214 11,678,897 Change in Working Capital 1,415,202 1,209,713 1,043,222 933,801 253,319 Ending Working Capital 4,634,833 5,844,546 5,678,055 6,062,526 6,315,845 IBNR 863,400 753,100 753,100 609,300 669,300 Target Fund Bal @ 2 X IBNR 1,726,800 1,506,200 1,506,200 1,218,600 1,338,600 Ending Working Capital Less 2 X IBNR 2,908,033 4,338,346 4,171,855 4,843,926 4,977,245 120 LEOFF 1 RETIREES BENEFITS FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget Beginning Working Capital 647,099 527,368 527,368 472,982 337,680 Revenues Contributions 623,268 757,949 608,589 673,806 751,294 Contributions - Dependents 108,855 121,418 62,400 60,000 72,000 Miscellaneous Revenue 1,042 2,500 745 2,500 2,500 Total Revenues 733,165 881,867 671,734 736,306 825,794 Operating Transfers In 250,000 250,000 250,000 250,000 250,000 Total Resources 1,630,264 1,659,235 1,449,102 1,459,288 1,413,474 Expenditures Blue Cross Claims 810,202 714,122 703,306 764,122 814,122 Blue Cross Admin Fees 57,803 60,600 58,863 61,812 63,048 Delta Dental Claims 44,601 45,880 43,269 50,468 52,991 Delta Dental Admin Fees 4,415 4,680 5,083 4,774 4,869 Vision Service Plan Claims 7,066 5,512 6,464 7,441 7,813 Vision Service Plan Admin Fees 1,718 1,768 1,768 1,803 1,839 Stop Loss Reimbursements (25,000) (6,249) (25,000) (25,000) Stop Loss Fees 34,450 50,425 43,766 50,425 51,434 IBNR Adjustment 19,500 8,000 (14,400) 4,900 5,300 Medical Reimbursements 119,207 197,327 115,769 184,682 191,416 Other Professional Services 3,934 15,863 10,775 16,181 16,505 Total Expenditures 1,102,897 1,079,177 968,413 1,121,608 1,184,337 Change in Fund Balance (119,732) 52,690 (46,679) (135,302) (108,543) Ending Working Capital 527,368 580,058 480,689 337,680 229,137 IBNR 67,100 52,700 52,700 57,600 62,900 Target Fund Bal @ 2 X IBNR 134,200 105,400 105,400 115,200 125,800 Ending Working Capital Less 2 X IBNR 393,168 474,658 375,289 222,480 103,337 121 LIABILITY INSURANCE FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget Beginning Working Capital 163,462 831,667 831,667 1,267,091 1,595,118 Revenues Contributions 2,295,112 2,341,016 2,340,300 2,340,300 2,340,300 Miscellaneous Revenue 4,061 4,000 4,322 4,000 4,000 Total Revenues 2,299,173 2,345,016 2,344,623 2,344,300 2,344,300 Total Resources 2,462,635 3,176,683 3,176,290 3,611,391 3,939,418 Expenditures Salaries & Benefits 103,864 98,806 92,793 95,684 96,924 Claims & Judgements 568,796 1,466,936 816,936 1,000,000 1,000,000 Insurance Premiums 830,422 685,476 685,476 719,750 755,737 Other Expenses 127,886 200,551 148,425 200,839 204,857 Total Expenditures 1,630,968 2,451,769 1,743,630 2,016,273 2,057,518 Net Income 668,205 (106,753) 600,993 328,027 286,782 Ending Working Capital 831,667 724,914 1,432,660 1,595,118 1,881,900 Claims Reserve* Reserve Amount 2,171,321 2,171,321 2,171,321 Actuary Recommended 1,964,167 1,964,167 1,964,167 - - *Claims reserve is not included in ending working capital. It is adjusted annually on December 31st. The variance between reserve amount booked and actuary recommended amount is due to a timing difference between when the actual entries must be made versus receipt of the actuary report. 122 PROPERTY INSURANCE FUND As of September 30, 2012 2011 2012 2012 2013 2014 Actual Budget Est Actual Budget Budget Beginning Working Capital 70,267 104,731 104,731 142,923 146,843 Revenues Contributions 444,697 453,593 453,593 562,455 568,080 Miscellaneous Revenue 20 100 114 100 100 Total Revenues 444,717 453,693 453,708 562,555 568,180 Total Resources 514,984 558,424 558,439 705,478 715,023 Expenditures Insurance Premiums 384,285 386,131 620,851 510,000 520,200 Insurance Premiums-2013 prepaid (254,725) Property Claims/Deductibles 24,684 24,684 24,684 25,178 Other Expenses 25,967 24,706 24,706 23,951 24,262 Total Expenditures 410,253 435,521 415,516 558,635 569,640 Net Income 34,464 18,172 38,191 3,920 (1,460) Working Capital 104,731 122,903 142,923 146,843 145,383 !„ ° ° : : zzzzz < 7 ifTE > K } K » f ( ff \ \ / ( } { / > » { \ { { / \ } \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ ) ) \ \ \ \ \ \ \ \ !,a 7 } \ � \ � \ 125 a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a m a o a a a a a a a a a $ a W a a a a a c c a c a s 33 a a a a a a W a a � a a a a a E a c c a m m a a m a a a a a a � z E a a a a a a a a a a a a a a a a a a a a a a a a a $ a a m a a a o m E c m - r !„ � 4 } \ \ � \ � \ { § ; \ \ \ \ \ \ \ \ ) \ \ \ } \ } \ } \ \ \ 127 0 M � m o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c L C O Ol O N T N T (O OJ OJ OJ M M (O (O N (O O V OJ M (O (O V O N N a � d N O T O I� M O N O T T OJ O O r OJ T N N r T OJ T OJ OJ OJ T O Y O O o fY d Y o. 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O O M M O) N N M Ifl O O IV y O N O M N M M m I� OJ M T T C r N M T Ifl N V I� T M c d c c c c c c e c c c e e a C f/I O Ifl T N T I� M T (O T OJ OJ d a O Ifl O V O (O V y m OJ r T y y a N O I� T W W I� r Ifl (O r l0 l0 � I C a Ifl M N Ifl M T T T O O O O d D1 N OJ T N N N I� O M OJ N d V M T T N l0 V M M M OJ Ifl M T T T M N M T T T K a l0 N l0 V V O r OJ OJ M a y IV d L M V V Ifl l0 l0 IV N I O — d r T T Ifl (O (O OJ N r_ M Ifl OJ CO O O OJ U mp d d N N O l0 M T OJ OJ N O Ifl V O O N W O O V V OJ O T N OJ M N N T Iq L OJ Ifl M ITM co r N r N N (O l0 I� N N IV c M T Ifl Ifl Ifl M O O T I� M T d O IT IT Ifl Cl Cl O N ID N T O N lV lV IV T T T OJ V (O OJ T OJ (O M c c l0 l0 CO Ifl N l0 CO CO l0 l0 O N N (O Ifl V I� N N OJ M M IV d V V Ifl T (O OJ T N I OJ N l0 l0 T O N N N N V IDOJ V T V Ifl It It M mI I I I I I I N Y U N C d d U ro o c a rn m m � m d u H d d d O) O N N U C N J d 9 N N 2 p] c m - U z O m Q a 0 0 w c voi y 0 m p, p n Q F F H W H W 135 M � O o 0 0 0 0 0 0 0 0 0 0 0 0 0 c L C O OI (O M r V N Ifl T M (O V (O (O l0 l0 'O r (O r O (O N Ifl N OJ T r M M � d Y O O o fY d OJ OJ V M M r (O M T OJ O V N V M M � O a � Ifl Ifl m T N � O m 0 l0 V OJ OJ O Ifl l0 l0 O W O r r Ifl O V M Ifl V LO T V V OJ (O M M OJ d d O O O r N N O O OJ O N R V N d M V N N M M Yal M OJ T (O OJ r N f V 2 r Ifl Ifl M T T O O M O OJ T OJ r r O OJ N V N M V (O OJ r r r r V O N O O r r T H O N (O OJ M M M r (O (O r V O O IV C r '15 r (O (O l0 N V (O r r T d 0 d m O O N Ifl OJ OJ c d c c c c c c c o c c c c c e e a d a O V (O r M (O O OJ N T O Ifl M M y d O O T O N O M M r M N O IV IV d N O Ifl r Ifl T OJ OJ OJ (O V r N OJ l0 l0 a j m I V O Ifl T M Ifl (O N N T � M OJ M M OJ C a N Ifl V T Ifl V V (O (O N M M M d r T T m Lo co m 6 o OJ OJ T O V M Ifl M M N o v u� N V OJ O N Ifl O V V (O V OJ O (O l0 l0 C H N d a r r r r ifl � N c r LL d O p, y = a a c c d a M N Co v_ m N N w It U : u d d o o v o u� co m of v o r o o ai ai m d x f0 r r V OJ OJ N m OJ N OJ N c c N N N N Ifl T T OJ Itm CO Ifl T O ' I N Ifl Ifl r r OJ OJ r N r OJ OJ O y N OJ OJ (O (O N IV V OJ V (O M M O ifl T Lo N O (O W O r r N « I � I OJ OJ V V M O Ifl (O � Ifl M � Ifl r � M OJ OJ M r OJ Ifl T M IVCI T O N T V l0 l0 l0 Ifl Ifl N m T T O (O V r OJ O T O O O O OJ O (O N T O V N N V l0 l0 y r r OJ T Ifl Ifl c T N r OJ OJ OJ V � N N r (O M OJ N r M M OJ OJ IV mI I I I I I d0 U J C N N a i c z O m Q w a a a 0 0 vo m m m p, ° F F H W H W 136 M � o a m o 0 0 0 0 0 0 c c rn w rn m o a N W T Cl Ifl N N (O r T N N N d d m OJ T OJ r T T T Y O O aI o \1 d (O (O OJ (O T N T N N N O a a N N OJ r (O T l0 N IV IV N C L W O r r O M v O N OJ OJ OJ c O O OJ CD T T � d N N N M N IV IV IV > ° Ia N O M T T V V V N N V r OJ Cl M M r r IT CDT M l0 O N O O V v C � a al o 00 0 0 00 0 a m o v ri r eo . � I m l o o V N T OJ m w m m o d � w r it co N K a OJ N O O OJ OJ OJ O ° " dl y m a a c c O °' d M M (O O T r M M M T O a r (O (O (O N (O O V V V M r Q d N N M N M r CD T T IV U U U d d V V N OJ � N W OJ W W O �( N O 0 r N_r O V N r M M M l0 W « _ r N N IV IV 0 O N N � N N IV IV IV (O (O N IV IV OJ d N r N OJ OJ OJ OJ OJ T d � r N IV N IV IV M N M M O N N IV T (O (O O T T M T T T N N N O O ID OJ N N N r N n n M O OJ N c c O O M O M T co M M ml � � I I I I U O CO i E U U d O K c c m U oa m m Iof d (If O c 0 4 d c a rn m d rn m c m m ol & W W 137 i M � o v m o 0 0 0 0 0 0 0 0 0 0 0 0 0 cL C Ol Ifl (O r O O N Ifl OJ M r Ifl d d m T T O (O T T (O O OJ T (O O T T Y O O aI o fY d W � OJ OJ Ifl O N OJ Ifl T V M M r Ifl N V V N� N N M Ifl O Ifl M OJ O (O (O N r M O l0 l0 W O m M r O IV O OJ M O V T T M d d M M S O N � V c Ifl V V � V c IV Yal V � � O N V OJ r r V M (O OJ Ifl V r (O V V M V N IV m (O N V � O O r O � r V OJ M Ifl T T r r r OJ Ifl N OJ OJ OJ S H O m OJ N N IV r V N Ifl N � V V C r '�. N Ifl (O Ifl N M O O l0 l0 aI o 000 00 0 0000000 c N o rn rn o o u� o (o M r o w m m y d O O M (O O M OJ (O r M N O O O � N O r r r ifl r r V r (O r ifl W r r N c � m LL � pl O O O OJ V T N V V Ifl r N M N N O O l0 d C O V (O V Ifl OJ OJ OJ O (O N Ifl Ifl OJ OJ T C d p] O V Ifl O (O (O l0 M M V r (O (O N i N r Ifl Ifl r V � (O O Ifl OJ r r l0 l0 K V M OJ Ifl OJ OJ N N r N N r d O p ` ° ° M - " I y .3 a a c c O 3 d � W W r OJ (O T N T T OJ N N OJ N N M M l0 N j « N N N M r IT T M I N T O Ifl Ifl IV IV O. d OJ N N O V OJ O V OJ OJ V V OJ V j x d < < N M Ifl O (O r W N N V (O (O o T Ifl« r LO T M V OJ r r M M � V N LL W N N OJ r COOJ Ifl r N O O K T T OJ d d d T y I L r M V (O l0 M (O T O T T l0 d a OJ r O (O l0 (O r N Ifl � O N T N Cl N (O T � O O IV E V O O N M M N O O IV OJ OJ (O (O O M Ifl M M T V � M M M M O N N (O O N O T c OJ N Ifl M O O O O IV o CO r rn rn r v o (o rn rn r r v Ifl 4 V N c IV mI Ea I I I I I I I y d d u y 0 0 m m a p, ° no Q � W W 138 r N � o v m o 0 0 0 0 0 0 0 0 0 c L C Ol O O l0 (O O r OJ N M M O 'O M M l0 OJ O r O N N OJ OJ OJ N (O OJ M OJ d d m T T T OJ (O T N T T T Y O O o fY d W N N M M l0 M O N M OJ r r W LL'l LL'l b O (O V M V T T l0 � y � V V V' T ifl of T ifl 00' 00' N r W W W O N Co M N m m W .L al o 00 0 000000 0 C N O M M l0 LL'l O M M V N N d a O r r IV N (O M N l0 l0 y d O M M T N T M O OJ OJ OJ d N O r r r (O y r V V t0 t0 a C a r r r N V O (O O M M N d (O (O l0 OJ V N OJ V IV IV N W LO IT y 0 V j N N N M N N a d o y LL a 'm c c o u d � r r o o r o co o co N N c V 0 U d d M M N N l0 r r V OJ (O (O (O M M T (O (O N V T T O �j N r N N N N r N r T m (O N N IV o N N v v of rn of � r T T T N T M N N IV IV r y r r r N � o o rn rn N r rn � rn � r r m N N M M l0 M V M (O N O O c OJ OJ T V T r N OJ OJ d (O (O r OM V N M V V N O N N r r T V N V V V M M l0 = N N T T M N OJ 0 l0 ml � � I I I I o y _ d m u y y ° m : E m y m d o U u a y o U a m m c Qd, c m � � d d Q � m Z` O c d Q 2 a d y d > a c d m o x m m o m Q c a' W c m F H W H W R55JCO21 City of Kent 10/18/201214:TP.25 Fiscal Year: 12 Period: 9 Street Capital Projects Fund Page - 1 Budget Prior Years Fiscal YTD Prj to Date Variance % Beginning Fund Balance 12,936- 10,188.78- 10,188.78- 2,747.22- 78.76 Fund Balance Adjustments 2,747 2,747.00 Licenses&Permits 9,260- 9,260.00- 9,260.00- 100.00 Intergovernmental 46,735,171- 42,534,583.81- 595,951.58- 43,130,535.39- 3,604,635.61- 92.29 Charges for Services 73,334- 93,125.80- 1,817.19- 94,942.99- 21,608.99 129.47 Miscellaneous Revenues 25,639,901- 19,653,978.89- 288,016.11- 19,941,995.00- 5,697,906.00- 77.78 Non Revenues 16,703,117- 20,619,174.91- 20,619,174.91- 3,916,057.91 123.45 Other Financing Sources 31,822,352- 27,914,334.30- 500,000.00- 28,414,334.30- 3,408,017.70- 89.29 Operating Transfers In 12,690,991- 12,242,990.19- 7,227.81 12,235,762.38- 455,228.62- 96.41 Total Available Resources 133,684,315- 123,077,636.68- 1,378,557.07- 124,456,193.75- 9,228,121.25- 93.10 Unallocated Street Projects 15,783 41,096.00 41,096.00 25,313.00- 260.38 Street Mitigation Receipts 438,923 438,923.00 Street Light Wiring Upgrade 120,000 49,955.74 2,861.29 52,817.03 67,182.97 44.01 Misc Intersection Signals 200,000 124,788.87 124,788.87 75,211.13 62.39 Pedestrian Walkways 339,418 415,929.48 415,929.48 76,511.48- 122.54 Kent-Kangley Pedestrian Improv 413,200 3,458.26 34,642.21 38,100.47 375,099.53 9.22 Railroad Quiet Zone 52,807 2,853.10 1,874.27 4,727.37 48,079.63 8.95 108th&208th Intersection Imp 27,956.28 27,956.28 27,956.28- Asphalt Overlays2009 1,493,099 753,434.83 344,946.63 1,098,381.46 394,717.54 73.56 Sidewalk Renovations 2008 1,910,739 1,495,636.62 1,495,636.62 415,102.38 78.28 Kent Station 4,327,772 3,987,374.81 2,130.56 3,989,505.37 338,266.63 92.18 Downtown ITS Improvements 3,850,489 4,967,245.94 30.48 4,967,276.42 1,116,787.42- 129.00 84th Avenue Rehabilitation 7,379,096 6,994,436.79 25,052.57 7,019,489.36 359,606.64 95.13 Lincoln Ave/Smith St Improv 765,012 365,734.01 491,784.57 857,518.58 92,506.58- 112.09 256th Street- 116th to 132nd 58,000 58,000.00 BNSF Grade Separation 23,877,044 19,243,746.19 67,807.58 19,311,553.77 4,565,490.23 80.88 Military/Reith Intersection 164,125 30,031.01 30,031.01 134,093.99 18.30 272nd Extension (KK to 256th) 7,325,139 6,659,105.73 2,324.03 6,661,429.76 663,709.24 90.94 4th Ave Impr(James to Cloudy) 2,499,126 2,499,447.90 2,499,447.90 321.90- 100.01 Willis St UPRR/BNRR Grade Sepr 881,627 235,978.75 3,832.44 239,811.19 641,815.81 27.20 James Ave Impr(4th to UPRR) 2,869,097 2,884,087.32 1,847.29 2,885,934.61 16,837.61- 100.59 256th Imps(Kent Kangley-116th) 2,315,358 238,246.14 155,625.75 393,871.89 1,921,486.11 17.01 Aerial Flight 34,893 34,892.70 34,892.70 .30 100.00 212th UPRR/BN Grade Separation 116,972 16,983.92 402.96 17,386.88 99,585.12 14.86 LID 341-196th Corridor Mid 34,836,448 34,023,566.11 34,023,566.11 812,881.89 97.67 LID 353224th-228th Corridor 30,861,440 32,032,203.25 102,890.93 32,135,094.18 1,273,654.18- 104.13 224th-228th Corridor East Leg 2,104,688 1,525,121.88 293,126.15 1,818,248.03 286,439.97 86.39 Russell Road Maint. Facility 313,462 313,897.96 313,897.96 435.96- 100.14 196th Street-East-Mitigation 501,726 530.78 291.80 822.58 500,903.42 .16 East Hill Operations Center 3,542,369 1,493,294.89 29,207.35 1,522,502.24 2,019,866.76 42.98 72nd Ave Imps (5.196th-200th) 42,496.17 42,496.17 42,496.17- Pacific Highway HOV 76,463 75,350.20 75.55 75,425.75 1,037.25 98.64 R55JCO21 City of Kent 10/18/201214:11195 Fiscal Year: 12 Period: 9 Street Capital Projects Fund Page - 2 Budget Prior Years Fiscal YTD Prj to Date Variance % Total Expenditures 133,684,315 120,508,429.18 1,631,206.86 122,139,636.04 11,544,678.96 91.36 Ending Balance 2 56 2207.50- 252 649.79 2 31 5557.71- R55JCO21 City of Kent 10/18/201214:12148 Fiscal Year: 12 Period: 9 Parks Capital Projects Fund Page - 1 Budget Prior Years Fiscal YTD Prj to Date Variance % Beginning Fund Balance 1,057,317- 1,061,224.72- 1,061,224.72- 3,907.72 100.37 Intergovernmental 5,674,141- 5,276,849.91- 248,218.98- 5,525,068.89- 149,072.11- 97.37 Charges for Services 43.84- 43.84- 43.84 Miscellaneous Revenues 1,006,528- 1,081,371.25- 198,441.14- 1,279,812.39- 273,284.39 127.15 Other Financing Sources 359- 358.38- 358.38- .62- 99.83 Operating Transfers In 3,375,512- 2,950,512.73- 2,950,512.73- 424,999.27- 87.41 Total Available Resources 11,113,857- 10,370,316.99- 446,703.96- 10,817,020.95- 296,836.05- 97.33 ARRA-Comm Putting Prev.to Wk 180,000 80,649.40 30,854.98 111,504.38 68,495.62 61.95 Regional Trails/KC Levy 698,457 373,620.50 373,620.50 324,836.50 53.49 Boat Launch Fees 24,895 1,995.41 1,622.03 3,617.44 21,277.56 14.53 Lake Fenwick 106,614 111,860.69 111,860.69 5,246.69- 104.92 Paths and Trails 122,243 68,982.49 68,982.49 53,260.51 56.43 Adopt-a-Park Program 474,398 429,214.83 22,534.88 451,749.71 22,648.29 95.23 Street Tree Replacements 112,603 97,255.77 97,255.77 15,347.23 86.37 Rental Houses Demolition 140,000 109,671.92 47,942.18 157,614.10 17,614.10- 112.58 Park Land Acquisition 5,848,649 5,860,619.19 5,860,619.19 11,970.19- 100.20 Big Blue Mobile Computer Lab 45,000 8,676.83 4,367.39 13,044.22 31,955.78 28.99 Light Pole Replacement 626,115 444,581.46 444,581.46 181,533.54 71.01 Eagle Scout Projects 154,327 149,105.87 16,847.84 165,953.71 11,626.71- 107.53 Multi-use Ballfields/KSD 20,000 22,946.46 22,946.46 2,946.46- 114.73 Earthworks Stairs 229,368 157,824.90 68,872.55 226,697.45 2,670.55 98.84 Park Lifecycle Program 696,681 184,380.45 170,389.01 354,769.46 341,911.54 50.92 Lake Meridian Play Equipment 423,450 423,449.84 153.52 423,603.36 153.36- 100.04 Urban Forestry Plan 211,617 193,785.61 30,953.53 224,739.14 13,122.14- 106.20 Community Parks Reinv. Program 57,225 57,225.00 Parks Land Acquisition 942,215 1,150,818.46 32,665.52 1,183,483.98 241,268.98- 125.61 Total Expenditures 11,113,857 9,869,440.08 427,203.43 10,296,643.51 817,213.49 92.65 Ending Balance 500 876.91- 19 500.53- 520 377.44- R55JCO21 City of Kent 10/18/201214:13134 Fiscal Year: 12 Period: 9 Other Capital Projects Fund Page - 1 Budget Prior Years Fiscal YTD Prj to Date Variance % Intergovernmental 78,600,000- 63,575,208.71- 63,575,208.71- 15,024,791.29- 80.88 Miscellaneous Revenues 131,929- 339,194.73- 1,365.65- 340,560.38- 208,631.38 258.14 Non Revenues 347,076- 343,641.11- 343,641.11- 3,434.89- 99.01 Other Financing Sources 35,264,500- 34,764,500.00- 34,764,500.00- 500,000.00- 98.58 Operating Transfers In 8,120,463- 7,658,155.52- 7,658,155.52- 462,307.48- 94.31 Total Available Resources 122,463,968- 106,680,700.07- 1,365.65- 106,682,065.72- 15,781,902.28- 87.11 ShoWare Center Marquee 225,000 213,308.48 213,308.48 11,691.52 94.80 Kent Station 1,300,000 300,000.00 300,000.00 1,000,000.00 23.08 Event Center 85,695,463 80,455,308.88 80,455,308.88 5,240,154.12 93.89 LTGO Bonds 2002 9,486,429 9,485,126.12 9,485,126.12 1,302.88 99.99 GO Refunding 2009 8,757,076 8,757,076.15 8,757,076.15 .15- 100.00 Kent City Center Garage 126,188.29 10,325.28 136,513.57 136,513.57- LTGO Bonds 2008 17,000,000 16,109,050.81 618,515.66 16,727,566.47 272,433.53 98.40 Total Expenditures 122,463,968 115,146,058.73 928,840.94 116,074,899.67 6,389,068.33 94.78 Ending Balance 8 465 358.66 92 4475.29 9 392 833.95 R55JCO21 City of Kent 10/18/201214:T4A Fiscal Year: 12 Period: 9 Technology Capital Projects Page - 1 Budget Prior Years Fiscal YTD Prj to Date Variance % Miscellaneous Revenues 1,283.42- 1,283.42- 1,283.42 Operating Transfers In 6,956,445- 6,321,796.79- 388,146.02- 6,709,942.81- 246,502.19- 96.46 Total Available Resources 6,956,445- 6,323,080.21- 388,146.02- 6,711,226.23- 245,218.77- 96.47 Software Business Sys Replace 321,605 321,605.07 321,605.07 .07- 100.00 Hardware Lifecycle Replacemnts 1,847,690 1,712,165.18 44,324.97- 1,667,840.21 179,849.79 90.27 IT Administration 126,151 126,151.03 126,151.03 .03- 100.00 IT Systems 2,209,039 1,934,390.86 76,501.84 2,010,892.70 198,146.30 91.03 IT Tech Services 2,182,806 2,182,806.60 2,182,806.60 .60- 100.00 IT Multi Media 29,154 29,153.64 29,153.64 .36 100.00 Long Term Lifecycle Replacemts 240,000 240,000.00 Total Expenditures 6,956,445 6,306,272.38 32,176.87 6,338,449.25 617,995.75 91.12 Ending Balance 16 807.83- 355 969.15- 372 776.98- R55JCO21 City of Kent 10/18/201214:151 0 Fiscal Year: 12 Period: 9 Facilities Capital Projects Page - 1 Budget Prior Years Fiscal YTD Prj to Date Variance % Intergovernmental 1,167,658- 1,167,658.01- 1,167,658.01- .01 100.00 Operating Transfers In 7,715,000- 7,040,913.31- 617,267.36- 7,658,180.67- 56,819.33- 99.26 Total Available Resources 8,882,658- 8,208,571.32- 617,267.36- 8,825,838.68- 56,819.32- 99.36 East Hill Shops Artwork 50,000 23,035.26 23,035.26 26,964.74 46.07 CKCF Improvements 1,167,658 85,473.43 85,473.43 1,082,184.57 7.32 Aukeen Court Expansion 7,590,000 7,145,717.19 387,871.45 7,533,588.64 56,411.36 99.26 Security Camera Software Upgrd 40,000 40,000.00 Parks Maintenance Renovation 35,000 35,000.00 Total Expenditures 8,882,658 7,254,225.88 387,871.45 7,642,097.33 1,240,560.67 86.03 Ending Balance 954345.44- 229395.91- 1183741.35- R55JCO21 City of Kent 10/18/201214:t51Z Fiscal Year: 12 Period: 9 Water Fund Page - 1 Projects Only Budget Prior Years Fiscal YTD Prj to Date Variance % Beginning Fund Balance 193,927- 193,926.30- 193,926.30- .70- 100.00 Intergovernmental 581,522- 591,020.75- 591,020.75- 9,498.75 101.63 Charges for Services 1,764- 4,238.36- 4,238.36- 2,474.36 240.27 Miscellaneous Revenues 771,649- 2,851,670.05- 23,610.08- 2,875,280.13- 2,103,631.49 372.62 Non Revenues 43,055,889- 43,055,888.33- 43,055,888.33- .20- 100.00 Other Financing Sources 1,000,000- 2,500,903.04- 2,500,903.04- 1,500,903.04 250.09 Operating Transfers In 38,650,294- 35,650,294.14- 1.24- 35,650,295.38- 2,999,998.62- 92.24 Total Available Resources 84,255,044- 84,847,940.97- 23,611.32- 84,871,552.29- 616,508.12 100.73 Seismic Vulnerability Assess 752,158 752,570.88 21,217.37 773,788.25 21,630.25- 102.88 Water Comp Plan Update 2007 693,311 679,120.79 2,030.04 681,150.83 12,160.17 98.25 2009 Revenue Bonds 74,605 97,591.78 97,591.78 22,986.78- 130.81 Water Conservation Plan 475,193 480,883.67 5,836.32 486,719.99 11,526.99- 102.43 Rock Creek Mitigation Projects 735,000 32,292.50 10,410.00 42,702.50 692,297.50 5.81 Guiberson Reservoir Repair 3,545,000 149,355.72 28,887.26 178,242.98 3,366,757.02 5.03 Tacoma Intertie 44,485,507 39,464,797.37 39,464,797.37 5,020,709.27 88.71 Clark Springs Tran Main Repair 490,000 1,327.25 1,327.25 488,672.75 .27 Clark Springs Well#2VFD Repl. 9,748 9,748.38 9,748.38 .38- 100.00 Seismic System Controls 78,783 21,217.37- 21,217.37- 100,000.37 26.93- Corrosion Control 2,874,470 2,477,457.68 261,672.26 2,739,129.94 135,340.06 95.29 Pump Station#3 Replacement 2,008,534 108,751.41 108,751.41 1,899,782.59 5.41 Kent Springs Source Upgrade 627,779 319,284.46 319,284.46 308,494.07 50.86 Kent Springs Trans Main Repair 506,528 8,601.49 8,601.49 497,926.51 1.70 Misc Water Improvements 5,612,940 2,966,012.66 1,776,487.13 4,742,499.79 870,440.21 84.49 Additional Water Source Dev 1,470,476 1,056,022.10 1,056,022.10 414,453.90 71.81 Well Head Protection 431,384 180,316.08 180,316.08 251,067.92 41.80 Security Improvement per VA 70,000 14,655.70 14,655.70 55,344.30 20.94 East Hill Pressure Zone 4,700,503 76,879.39 12,512.97 89,392.36 4,611,110.64 1.90 Impoundment Reservoir 2,226,286 2,126,325.63 19.81 2,126,345.44 99,940.56 95.51 SE 248th Watermain 357,871 365,417.08 365,417.08 7,546.08- 102.11 West Hill Reservoir 50,000 50,000.00 East Hill Reservoir 4,944,304 4,915,226.90 9,806.76 4,925,033.66 19,270.34 99.61 East Hill Well Generator 475,000 1,685.21 150.13 1,835.34 473,164.66 .39 Clark Springs Source Imprvmnts 574,278 5,126.20 35,442.28 40,568.48 533,709.52 7.06 Landsburg Mine 200,000 241,400.94 14,531.44 255,932.38 55,932.38- 127.97 Clark Springs HCP 212,722 212,712.28 466.95 213,179.23 457.23- 100.21 Hydrant Replacement 2005 90,043 32,944.52 13,681.57 46,626.09 43,416.91 51.78 Large Meter/Vault Replace 2008 130,341 109,680.99 20,629.56 130,310.55 30.45 99.98 Kent Station -Water 109,198 109,197.68 109,197.68 .32 100.00 Downtown ITS Improvements 233,131 233,131.16 233,131.16 .16- 100.00 84th Avenue Rehabilitation 298,660 298,659.62 298,659.62 .38 100.00 Remote Telemetry Upgrade 489,575 466,528.54 2,545.87 469,074.41 20,500.59 95.81 BNSF Grade Separation 1,205,000 777,124.00 777,124.00 427,876.00 64.49 R55JCO21 City of Kent 10/18/201214:T5% Fiscal Year: 12 Period: 9 Water Fund Page - 2 Projects Only Budget Prior Years Fiscal YTD Prj to Date Variance % 272nd Extension (KK to 116th) 303,759 303,759.61 303,759.61 .61- 100.00 Scenic Hill -Water 413,141 413,324.31 413,324.31 183.31- 100.04 Aerial Flight 34,688 34,687.50 34,687.50 .50 100.00 LID 341-196th Corridor Mid 194,003 194,002.60 194,002.60 .40 100.00 LID 353 224th-228th Corridor 155,901 155,900.56 155,900.56 .44 100.00 East Hill Operations Center 1,465,225 1,466,200.87 1,047.51 1,467,248.38 2,023.38- 100.14 Lower East Hill Improvements 450,000 475,510.59 475,510.59 25,510.59- 105.67 Total Expenditures 84,255,044 61,814,216.10 2,196,157.86 64,010,373.96 20,244,670.21 75.97 Ending Balance 23 033 724.87- 2 172 546.54 20 86 1178.33- R55JCO21 City of Kent 10/18/201214:161 6 Fiscal Year: 12 Period: 9 Sewerage Fund Page - 1 Projects Only Budget Prior Years Fiscal YTD Prj to Date Variance % Beginning Fund Balance 488,467- 488,466.98- 488,466.98- .02- 100.00 Intergovernmental 18,205,778- 13,015,560.33- 1,569,538.34- 14,585,098.67- 3,620,679.33- 80.11 Charges for Services 4,000- 295,558.60- 776.24- 296,334.84- 292,334.84 '******* Miscellaneous Revenues 259,652- 1,040,657.39- 7,521.37- 1,048,178.76- 788,526.76 403.69 Non Revenues 12,786,845- 12,786,844.80- 12,786,844.80- .20- 100.00 Other Financing Sources 1,500,000- 1,500,000.00- 1,500,000.00- 100.00 Operating Transfers In 41,786,138- 33,472,657.25- 1,139,311.70- 34,611,968.95- 7,174,169.05- 82.83 Total Available Resources 75,030,880- 62,599,745.35- 2,717,147.65- 65,316,893.00- 9,713,987.00- 87.05 NPDES Permit 3,397,335 2,504,490.18 181,715.12 2,686,205.30 711,129.70 79.07 Drainage Master Plan 1,432,645 1,426,827.90 5,816.28 1,432,644.18 .82 100.00 2009 Revenue Bonds 86,845 97,592.43 97,592.43 10,747.43- 112.38 Green River Flood Protection 3,718,123 3,743,582.59 6,387.17 3,749,969.76 31,846.76- 100.86 Misc Environmental Projects 435,562 403,972.05 25.53 403,997.58 31,564.42 92.75 Meridian Valley Creek 450,000 124,129.97 106,802.99 230,932.96 219,067.04 51.32 Hawley Road Levee 330,000 378,749.16 83,667.06 462,416.22 132,416.22- 140.13 Citywide Stm Pipe/Culvert Mtc 4,100,000 3,233,629.18 319,194.70 3,552,823.88 547,176.12 86.65 S. 228th Drainage Bypass 6,950,000 5,532,645.64 51,175.26 5,583,820.90 1,366,179.10 80.34 Mill Ck/James St. Pump Station 2,791,670 1,074,306.39 1,972,401.31 3,046,707.70 255,037.70- 109.14 Upper Mill Creek Dam 2,435,000 70,622.18 123,421.79 194,043.97 2,240,956.03 7.97 Outfall Treatment Facilities 240,000 240,000.00 Seven Oaks Pond Imps 2,935 2,934.60 2,934.60 .40 99.99 Lower Garrison Creek 1,122,815 1,158,973.29 1,158,973.29 36,158.29- 103.22 Johnson Creek 580,738.38 1,175.84 581,914.22 581,914.22- Earthworks Overlays 1,196,621 1,179,093.37 1,592.85 1,180,686.22 15,934.78 98.67 Lake Fenwick Restoration 2009 20,895 8,869.86 345.62 9,215.48 11,679.52 44.10 256th Flume 510,000 439,796.93 439,796.93 70,203.07 86.23 Lake Meridian Outlet 2,718,065 2,711,034.12 1,732.03 2,712,766.15 5,298.85 99.81 Upper Meridian Valley Creek 90,000 79,482.62 1,111.06 80,593.68 9,406.32 89.55 E Fork Soosette Crk/144th Clvt 97,526 97,525.60 97,525.60 .40 100.00 Meridian Valley Crk Revegetate 800 800.00 800.00 100.00 Big Soos Creek/SE 256th Bridge 225 224.91 224.91 .09 99.96 81 st Av So Storm Drainage Impr 150,000 129,958.12 129,958.12 20,041.88 86.64 Surface Water Manual 100,000 87,954.67 87,954.67 12,045.33 87.95 Mill Creek @ James-Fld Protect 600,000 461,561.97 7,313.69 468,875.66 131,124.34 78.15 Riverview Park 2,990,000 2,048,287.01 44,962.65 2,093,249.66 896,750.34 70.01 Downey Farmstead 550,000 250,286.17 7,609.24 257,895.41 292,104.59 46.89 Bauer Property 310,000 108,531.24 18,119.59 126,650.83 183,349.17 40.86 Mill Crk @ 76th Av-Fld Protect 800,000 27,315.03 2,966.47 30,281.50 769,718.50 3.79 Horseshoe Bend Levee Impr. 10,629,417 7,378,064.46 572,739.19 7,950,803.65 2,678,613.35 74.80 Upper Russell Road Levee Impr. 2,353,121 815,575.83 213,326.16 1,028,901.99 1,324,219.01 43.72 Lower Russell Rd Levee-S231st 300,000 295,498.27 38,512.13 334,010.40 34,010.40- 111.34 Lowest Russell Rd-Van Dorens 290,000 176,239.85 17,714.47 193,954.32 96,045.68 66.88 R55JCO21 City of Kent 10/18/201214:t6196 Fiscal Year: 12 Period: 9 Sewerage Fund Page - 2 Projects Only Budget Prior Years Fiscal YTD Prj to Date Variance % Boeing Levee Improvements 420,000 529,036.21 518,590.60 1,047,626.81 627,626.81- 249.43 Briscoe Levee Improvements 290,000 259,409.68 256,630.40 516,040.08 226,040.08- 177.94 Desimone Levee Improvements 300,000 246,661.28 245,246.61 491,907.89 191,907.89- 163.97 Green River Sandbag Removal 3,000,000 540,802.05 540,802.05 2,459,197.95 18.03 Misc Drainage 2008 2,053,373 1,565,960.44 20,670.16 1,586,630.60 466,742.40 77.27 Drainage Imp.w/Rd Imp.Unalloc 524,577- 524,577.00- Drainage Infractructure Improv 473,379 463,248.62 463,248.62 10,130.38 97.86 Kent Station -Drainage 142,758 142,758.17 142,758.17 .17- 100.00 Downtown ITS Improvements 107,315 158,406.09 158,406.09 51,091.09- 147.61 84th Avenue Rehabilitation 19,644 19,644.39 19,644.39 .39- 100.00 Lincoln Ave/Smith St Improv 60,000 41,443.50 41,443.50 18,556.50 69.07 Remote Telemetry Upgrade 114,930 112,384.00 2,545.88 114,929.88 .12 100.00 BNSF Grade Separation 993,000 434,964.00 434,964.00 558,036.00 43.80 272nd Extension (KK to 116th) 538,373 538,373.48 538,373.48 .48- 100.00 256th Imps(Kent Kangley-116th) 7,819.06 31,464.65 39,283.71 39,283.71- Aerial Flight 34,687 34,687.50 34,687.50 .50- 100.00 LID 341-196th Corridor Mid 1,165,295 1,167,076.54 1,167,076.54 1,781.54- 100.15 224th-228th Corridor 2,004,580 1,514,842.52 786.99 1,515,629.51 488,950.49 75.61 Russell Road Maint. Facility 313,901 313,898.68 313,898.68 2.32 100.00 East Hill Operations Center 1,465,385 1,465,385.07 1,465,385.07 .07- 100.00 Lower East Hill Improvements 50,000 33,400.54 33,400.54 16,599.46 66.80 Sanitary Sewer Master Plan 300,000 264,238.45 16,532.99 280,771.44 19,228.56 93.59 Unallocated Sewer Projects 111,110 111,247.11 111,247.11 137.11- 100.12 Kentview Sewer Interceptor 215,044 17,418.96 214,818.39 232,237.35 17,193.35- 108.00 Skyline Sewer Interceptor 20,000 6,670.33 6,670.33 13,329.67 33.35 LID 360-SE 227th Sewer 216,000 304,656.40 304,656.40 88,656.40- 141.04 Linda Heights Pump Station 150,000 45,173.14 45,173.14 104,826.86 30.12 Misc Pump Station Replacements 100,000 100,000.00 Derbyshire 50,000 50,000.00 Misc Sewer 2007 5,846,559 5,604,283.48 355,974.44 5,960,257.92 113,698.92- 101.94 Kent Station -Sewer 93,935 93,935.42 93,935.42 .42- 100.00 Downtown ITS Improvements 12,968 12,967.74 12,967.74 .26 100.00 84th Avenue Rehabilitation 233,740 233,740.40 233,740.40 .40- 100.00 Remote Telemetry Upgrade 123,647 121,101.40 2,545.88 123,647.28 .28- 100.00 272nd Extension (KK to 116th) 526,229 526,228.68 526,228.68 .32 100.00 Scenic Hill -Sewer 65,895 65,895.00 65,895.00 100.00 Aerial Flight 34,687 34,687.50 34,687.50 .50- 100.00 LID 341-196th Corridor Mid 8,738 8,737.87 8,737.87 .13 100.00 224th-228th Corridor 136,400 136,400.07 136,400.07 .07- 100.00 Russell Road Maint. Facility 313,899 313,898.00 313,898.00 1.00 100.00 East Hill Operations Center 1,465,386 1,465,385.00 1,465,385.00 1.00 100.00 Lower East Hill Improvements 785,000 1,116,583.30 394.92 1,116,978.22 331,978.22- 142.29 Total Expenditures 75,030,880 56,068,655.02 6,080,119.13 62,148,774.15 12,882,105.85 82.83 R55JCO21 City of Kent 10/18/201214:T6426 Fiscal Year: 12 Period: 9 Sewerage Fund Page - 3 Projects Only Budget Prior Years Fiscal YTD Prj to Date Variance % Ending Balance 6 53 0090.33- 3 362 971.48 3 168 118.85-