09-20-2022 Council Packet - SpecialCITY OF
deral Way
Centered on Opportunity
CITY COUNCIL
SPECIAL MEETING AGENDA
City Hall — Council Chambers*
*remote attendance available via zoom
September 20, 2022 — 5:00 p.m.
Mayor and Council encourage you use one of the following ways to participate in the meeting remotely if you are
unable to attend in person:
• Watch the meeting live via Zoom, Federal Way YouTube Channel, or FWTV Channel 21 (via Comcast)
• Call in and listen to the live meeting: (888) 788-0099 or 253-215-8782
• Public Comment may be submitted in -person or online here; written comments are accepted here.
• Zoom meeting code: 938 0263 0822 and passcode: 370773
1. CALL MEETING TO ORDER
2. PLEDGE OF ALLEGIANCE
3. STUDY SESSION
a. Budget Overview — Revenue Forecast & Economic Assumptions
• Staff: Finance Director Steve Groom
b. Council Questions/Discussion
4. EXECUTIVE SESSION
• Collective Bargaining Pursuant to RCW 42.30.140(4)(b)
• Potential Litigation Pursuant to RCW 42.30.110(1)(i)
5. ADJOURNMENT
Regular Meetings are recorded and televised live on Government Access Channel 21.
To view Council Meetings online please visit www.cityoffederalway.com.
n
M.
jPlPIjIjIWJvjjF"r T ETMWIV.77aw .If
•� :. � '�•� Kam' }+� � �'#i# �''*
+ i
�� k •- 1, ��,
dl
Als
Ij
F !-
!Is
CITY OF FEDERAL WAY 2023-24 BUDGET
2023-2024 BIENNIAL BUDGET
PUBLIC MEETINGS
The following City Council meetings have been scheduled to consider the 2023-24 Biennial Budget.
All meetings will be held in -person in Council Chambers at City Hall, with a remote option available.
Tuesday, September 20, 2022 at 5:00 p.m. Workshop/Study Session
• Budget Overview - Revenue Forecast & Economic Assumptions (Groom & Davis)
Tuesday, September 20, 2022 at 6:30 p.m. Regular City Council Meeting
• Mayor Ferrell Presents Proposed 2023-2024 Biennial Budget to Council
Monday, September 26, 2022 at 5:00 p.m.
Workshop/Study Session
Budget Presentations:
• Federal Way Municipal Court (Judge Larson & Judge Bales)
• Finance; Human Resources; City Clerk's Office; Legal; Community Development;
Economic Development; Emergency Management; Information Technology, City Council
and Mayor's Office (Davis)
• Performing Arts & Event Center, Dumas Bay, and Federal Way Community Center & Parks
Department (Hutton)
Thursday, September 29, 2022 at 5:00 p.m. Workshop/Study Session
Budget Presentations Continued:
• Police Department (Chief Hwang); and Public Works (Walsh);
• Debt: Operations Shop and Capital Planning (Davis, Groom, Walsh)
Tuesday, October 4, 2022 at 5:00 p.m. Workshop/Study Session
• City Council Deliberations on the 2023-2024 Biennial Budget
Tuesday, October 18, 2022 at 5:00 p.m. Workshop/Study Session
• Continue City Council Budget Deliberations on the 2023-2024 Biennial Budget
Tuesday, October 18, 2022 at 6:30 p.m. Regular City Council Meeting
• Revenue Public Hearing: Proposed 2023 Property Tax Levy (required by RCW
84.55.120)
• Preliminary Public Hearing: 2023-2024 Biennial Budget (required by RCW 35A.34)
Tuesday, November 1, 2022 at 6:30 p.m. Regular City Council Meeting
• Final Budget Public Hearing: continued from Oct 18 meeting (required by RCW 35A.34)
• Introduction Ordinance/2023-2024 Biennial Budget
• Introduction Ordinance/2023 Property Tax Levy
Tuesday, November 15, 2022 at 6:30 p.m.
• Enactment Ordinance/2023-2024 Biennial Budget
• Enactment Ordinance/2023 Property Tax Rate
• Resolution/2023 Fee Schedule
Regular City Council Meeting
2
CITY OF FEDERAL WAY 2023-24 BUDGET
ERICA NORTON
Councilmember #2
2022 CITY OFFICIALS
EXECUTIVE & LEGISLATIVE BODY
LINDA KOCHMAR
Council President
JIM FERRELL
Mayor
SUSAN HONDA
Deputy Mayor
HOANG V. TRAN
Councilmember #4
LYDIA ASSEFA-DAWSON
Councilmember #1
JACK WALSH
Councilmember #5
Term
Position
Incumbent
Expires
Mayor
Jim Ferrell
12/31/2025
Position #1
Lydia Assefa-Dawson
12/31/2023
Position #2
Erica Norton
12/31/2025
Position #3
Susan Honda,
12/31/2023
Deputy Mayor
Position #4
Hoang V. Tran
12/31/2025
Position #5
Jack Walsh
12/31/2023
Position #6
Jack Dovey
12/31/2025
Position #7
Linda Kochmar,
12/31/2023
Council President
JACK DOVEY
Councilmember #6
3
CITY OF FEDERAL WAY 2023-24 BUDGET
CITY ADMINISTRATION
Mayor..........................................................................................Jim Ferrell
Interim City Administrator.......................................................... Brian Davis
CityAttorney................................................................................. Ryan Call
City Clerk......................................................................
Stephanie Courtney
Community Development Director .............................................
Brian Davis
Economic Development Director......................................................
Vacant
Finance Director.....................................................................
Steve Groom
Human Resources Manager ...............................................
Vanessa Audett
IT Director..........................................................................Thomas
Fichtner
ParksDirector...........................................................................
John Hutton
Police Chief.............................................................................
Andy Hwang
Public Works Director...................................................................
EJ Walsh
JUDICIAL BRANCH
Presiding Judge...................................................................... David Larson
Judge.......................................................................................... Brad Bales
Court Administrator................................................................ Tiziana Giazzi
FINANCE DEPARTMENT STAFF
Deputy Finance Director ..................................................... Chase Donnelly
Accounting Specialist...........................................................Jennifer Pettie
Accounting Technician........................................................Donielle
Nevels
Administrative Assistant......................................................... Sherri Nelson
Financial Analyst....................................................................... David Liang
Financial Analyst ................................................
Haileen Valdez Madarang
Payroll Analyst........................................................................... Janet Nolte
Sr Financial Analyst................................................................. Linda Walker
4
CITY OF FEDERAL WAY 2023-24 BUDGET
TABLE OF CONTENTS
INTRODUCTION
Schedule of Budget Study Sessions ......
City Officials, Legislative Body and Staff
TABLE OF CONTENTS ...............................
................. 2
................. 3
BUDGET TRANSMITTAL MESSAGE
Overall City Revenue, Expenditure, and Fund Balance........................................................
2023-24 Budget Goals............................................................................................................
Challenges of the 2023-24 Budget.........................................................................................
Accomplishments of the 2023-24 Budget...............................................................................
Revenue Forecasting..............................................................................................................
CitywideDebt.........................................................................................................................
CitywideCash Position...........................................................................................................
Expense Management and Course Correction......................................................................
OPERATING BUDGET - CITYWIDE
2023 Proposed Budget — Summary of Revenues and Expenditures — All Funds ..................
2024 Proposed Budget — Summary of Revenues and Expenditures — All Funds ..................
Explanation of Major Changes in Fund Balances..................................................................
Fund Structure and City Departments....................................................................................
Sources and Uses — All Funds...............................................................................................
Expenditure Summary — All Funds.........................................................................................
General and Street Fund Consolidated Summary.................................................................
Expenditure Summary — General Fund..................................................................................
City -Wide Staff Positions........................................................................................................
Funded and Unfunded Budget Needs...................................................................................
Major Revenue Forecasts......................................................................................................
OPERATING BUDGET BY DEPARTMENT
Mayor's Office.........................................................................................................................
CityCouncil.............................................................................................................................
Community Development Services........................................................................................
Finance...................................................................................................................................
Information Technology..........................................................................................................
Law.........................................................................................................................................
MunicipalCourt.......................................................................................................................
Parks, Recreation and Cultural Services................................................................................
Police......................................................................................................................................
PublicWorks...........................................................................................................................
DEBT
DebtSummary........................................................................................................................
CAPITAL BUDGET
Proposed Capital Improvement Projects................................................................................
APPENDIX
Organization chart .................................
Citymap ..................................................
Budget process .......................................
Financial policies ....................................
Basis of accounting .................................
GFOAAward ..........................................
9
7
8
9
10
11
14
14
15
17
18
19
20
22
23
24
25
26
27
28
34
36
37
39
40
42
43
45
47
49
52
56
61
62
63
64
71
73
5
CITY OF FEDERAL WAY 2023-24 BUDGET
Budget
Transmittal
Message
I k —t"4I r
4
CITY OF FEDERAL WAY 2023-24 BUDGET
Budget Transmittal Message
September 15, 2022
Dear Citizens of the City of Federal Way and Members of the City Council:
This budget, the culmination of months of combined effort by city staff in every department, fulfills the
following purposes:
• Communicates transparently our commitment to serve our 2023.24 Budget
citizens, residents and taxpayers. —
• Provides an operational guide to balancing prioritized service
delivery with demonstrated accountability to budgetary
controls. � ~
• Communicates the long-term vision of City Council and City rt
Management.
r
• Links funding to service delivery commitments, keeping
within our means.
This transmittal message and accompanying material presents summary information to give the reader
a clear picture of the city's structure and overall services plan in sufficient detail to assure transparency
and accountability.
The 2023-24 Budget, once adopted by City Council, incorporates all the direction discussed and
approved during the entire public budget process. This document presents a balanced General Fund
budget; revenues and available resources exceed expenditures resulting in a positive contribution to
reserves.
2023-24 Proaosed Budaet Summ
As shown in the table below, the proposed budget shows forecasted revenues and expenses compared
to current and prior year with ending fund balance:
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23 Proposed 22 Ad'
Adopted
Adjusted
Projected
Chg
%Ch
BEGINNING FUND BALANCE
$ 69,236,800
S 72,206,885
S 60,598,909
S 92,287,328
$ 92,287,328
$ 71,207,836
$ 62,292,146
S (21,079,492)
-22.8%
Total Revenues
117,605,137
141,472,804
116,601,304
146,840,628
153,703,035
145,171,974
169,649,382
(1,668,654)
-1.1%
Total Expenditures
1 114,635,052
1 121,392,361
1 121,334,610
174,724,524
174,782,524
154,087,665
1 175,504,723
(20,636,861
-11.8%
Changes in Fund Balance
2,970,085
1 20,080,443
4,733,306
27,883,896
21,079,489
8,915,691
5,855,341
18,968,204
-68.0%
ENDING FUND BALANCE:
$ 72,206,885
1 $ 92,287,328
1 $ 55,865,604
1 $ 64,403,432
1 $ 71,207,836
$ 62,292,146
$ 56,436,805
1 $ 2,111,287
-3.3%
7
CITY OF FEDERAL WAY 2023-24 BUDGET
2023-24 Budget Goals
The budget process requires us to evaluate annually the city's priorities, between immediate services
and infrastructure, across many funds, being mindful of long-term fiscal sustainability. The goals of this
Budget are:
• Make increased investments in the City's commitment to public safety
• Achieve a balanced budget in every fund
• Assure appropriately -prioritized service delivery
• Provide for on -going fiscal strength and sustainability
• Continue to fulfill commitments to existing infrastructure obligations
The 2023-24 Budget achieves all of these goals.
Functions of this Budget
• Policy Document. This budget articulates service delivery and long-term fiscal sustainability
decisions. As a policy document, the budget makes specific linkages between desired goals and
current and foreseeable circumstances.
• Communications Document. The budget is the result of a process that is a conversation with
citizens, voters and taxpayers of the City. The budget is more about services than it is about
money, the result of citizen input prioritizing how limited resources are best used to serve the
needs of our city.
• Operations Guide. The budget lists every department and program of the city. Demand for
services always exceeds resources.
• Legal Authorization. The budget is the legal appropriation authorization to fund the various
operations of the City in the attainment of policy issues and goals. It must meet all the legal
requirements, time lines and constraints of state statute, municipal codes and city charter.
Prioritizing Expenditures at the Policy Level
City Council authorizes, at the moment of budget adoption, city staff to execute both the service delivery
and the ongoing care of the city's infrastructure.
At the policy level, the balancing of service levels and
maintenance of infrastructure is as fundamental as it gets.
Further, the incremental additions of services and
infrastructure in response to the ever-growing demands
requires balancing near- and long-term planning, and
involves defending the fiscal health and sustainability of the
city.
This proposed budget balances current -year service
delivery and maintaining and replacing the city's perpetual
infrastructure care.
Revenues
Service DehivM
Infrastructure
r'l
"I
Police
bpwntown
strouts
Fadlitifs
Cade Enforcement
Parks
PlanniM1g
Streets
Parks
Surface Water
Court
Systems
AdmIniswive
Vehicle,
N..�
CITY OF FEDERAL WAY 2023-24 BUDGET
Challenaes of the 2023-24 Budaet
The 2023-24 budget funds the commitment to maintain services at existing levels as well as maintaining
infrastructure. State law requires cities to have a balanced budget each year - expenses cannot exceed
available resources, which means both incoming revenues plus unspent reserves. Why does the city
face this as a challenge every year? Existing obligations have created a growing challenge for every
city, even before new ideas are suggested. Citizens, residents and taxpayers continue to expect
service delivery in new ways, however the City's ability to maintain services with increasing costs and
refresh existing infrastructure are a challenge that stretch cities' resources.
• Staffing. Budget -balancing efforts of past years have always put stress on the city's staff to be
increasingly efficient and to prioritize effectively. Every budget year, the City seeks to prudently
add more staff in response to service delivery demand. During the last biennium the City added
public safety staff for increased police officers and support. This budget maintains that
commitment.
• Jail Cost. With the dual causation of pandemic and legislative changes, incarceration volume
dropped, creating short-lived savings, but has risen during 2022. The first six months of 2022
are seeing a 57% increase over the same period in 2021. Simultaneously, there has been an
increased cost in the City's share of underlying cost.
• Streets Infrastructure. The City's infrastructure is the City's largest asset, with 315 miles of
streets to maintain, stripe and light. The past expenditures for road maintenance have been
chronically challenging, less than adequate for on -going maintenance and scheduled
replacement. Over the years, funding has been limited in all
funds and continues to be limited in the General Fund as Existing Obligations?
employee costs increase and property tax funding fails to keep Perpetual infrastructure
pace. This is a major challenge impacting the repair and and equipment
maintenance of infrastructure.
replacement must be
• Vehicles. The City's vehicles include a wide variety: police assured before anything
patrol SUV's, large industrial mowers, specialized street new can be added.
construction equipment, and a fleet of vehicles serving citizens
across every department and program. The planning process
to replace on a scheduled rotation requires every program to set aside as part of its budget one
year's share of total replacement. On one hand funds should be there when needed, but
alternatively by systematically replacing vehicles on schedule, perpetual replacement is assured.
This, too, is a major challenge since predicted useful lives vary as well as the quantity of total
vehicles as city circumstances evolve.
• Parks Infrastructure. A city with a single park might finance the playground and other assets
over the life of the equipment thereby spreading the costs appropriately across the users. Our
city saves financing costs by perpetually replacing of park infrastructure on a pay as we go basis,
replacing each one of twenty parks each year. Equipment therefore has to last twenty years, so
pausing even one year could harm the entire park system. Park Management within existing
budgets has proved challenging and this year inflation has put additional pressure on the Parks
Budget.
• Property Tax cap. The state statutes concerning property taxation in general limit increase of
property tax revenue to 1 % for existing property valuation. Properties in Federal Way have
enjoyed increased value in recent years of 6-13%, while the levy on them has been capped at
1 %. The results is a squeeze on the city's budget, putting increasing reliance on other revenue
sources, primarily Sales Tax and Utility Taxes. Services and infrastructure that were reliably
financed by property tax in the past are still required, with reduced financing available. The city
A
CITY OF FEDERAL WAY 2023-24 BUDGET
has juggled and course -corrected by managing savings judiciously every year. Continued
careful management will be required in 2023 and 2024.
• Economic effects of COVID-19. As in most cities in America, the COVID-related economic
consequences of business restrictions and closures impacted the City's Sales Tax, Lodging Tax,
Building Permit Fees, Business Licenses, Utility Tax, Gambling Tax and various criminal justice
revenues. Sales Tax revenue suffered the greatest immediate dollar amount decrease to the
City's budget but rebounded after two months. Lodging Tax suffered the greatest prolonged
dollar amount decrease and is projected to return to pre-COVID levels after two years, an
indicator of the protracted harm to the hotel and related business sector, a component of the
broader city's economy. As the development of this budget, the future still holds significant
uncertainties.
• Inflation and Recession concerns. July's report of the US Bureau of Labor Statics reported
that inflation decreased slightly to 8.5% from
a}5 [PI Inflation
9.1%, however it was the 14th month above
5%. While inflation will work to raise both s
rik iS7 iA IYa
sales tax and the assessed values underlying „• „.
property tax, recession concerns put a damper
on expectation of the volume of sales activity. Jill
The situation hardly new; the 12-month trend ;
is enough of a baseline to give us some
confidence to extrapolate.
• Addressing the chronic Budget Squeeze.
Even though inflation is going up by as much as 3% a year, and even though the value of homes
is increasing as much as 14% or 15% a year (and in some areas even more), by state law, the
city can only increase property tax revenue by 1 % annually on existing property. This has
hampered the ability to ensure that funding for core services is growing at the same or similar
rate as population and inflation. This is especially challenging since about 22% of all general
fund revenue comes from property tax.
AccomDlishments of the 2023-24 Budaet
Budget needs were submitted from all departments and citywide needs, as every year, exceed
forecasted funding. It is not a surprise that money will fix every problem in the city and there is not
enough money. Therefore, the budget process itself must rigorously
consider all requests so that the adopted budget represents the highest What's In and What's
priorities of the city within available revenues. The top priorities that Out? Money will fix
funding will cover include: every problem in the
• Staffing — Public Safety. During 2021, an unprecedented 13 city but there's not
police officers were added along with 3 support staff, to pro- enough money. That's
actively combat what is a nation-wide situation. The 2023-24 why budgeting
Budget maintains this commitment to public safety. matters.
• Staffing — Public Information Requests. The addition of a
public records position will respond to increased volume of public document requests to alleviate
workload across several departments.
• Staffing — Public Works. Winter operations staffing is increased slightly following multiple
years of consistent workload.
10
CITY OF FEDERAL WAY 2023-24 BUDGET
• Parks Infrastructure - Alderbrook and Celebration Parks are next in the rotation for
playground equipment for 2023 and 2024
• Insurance increase - premiums on existing insurance increased as did our self -insured
deductible reserve for pre-2020 cases.
• Jail cost - the budget absorbed a non -discretionary jail cost expense increase.
• Public Safety Communications — ValleyComm contract, the 911 cost -sharing arrangement
with Auburn, Tukwila, Renton, Des Moines and Kent, increased in non -discretionary equipment
and staffing costs.
• Lakehaven hydrant maintenance - increased due to our share of maintenance costs.
• PD Vehicle -perpetual replacement increase due to expansion of patrol car fleet.
• Road salt - an increase for winter operations in line with prior -year actual usage trend.
Revenue Forecasting
In preparing the city's budget, care has been taken to forecast revenues cautiously, conservatively, so
that the resulting budget has a high degree of confidence that the budgeted revenue will be realized
and the expenditures authorized that rely on that revenue are supported. Ordinarily, simple
extrapolation of the historical trend of each revenue is reliable, however due to the economic impacts
of the COVID pandemic of 2020 and following, trend analysis has required a bit more analysis and
evaluation of the circumstances specific to this city.
The city's three most material tax revenues are:
2023
2024
Sales Tax
$ 19.7 million
$ 20.8 million
Utility Taxes
$ 17.4 million
$ 17.4 million
Property Tax
$ 11.5 million
$ 11.7 million
Federal Way Local Economy and Sales Tax Forecast
ales iax - AEtua: ana F areca_ . S:Atis Fak AtWag tubd Fbrecasted by Month
2D36 A20 x[uol 2021 2QId Ilareram"
wiliooe
1VW ".
fafne,m= F7Agq,ra-
3lw.vn
lamt .I
s
-� LIY ip YH IWI WI iy* $G: VIS I
]076 N11 3Md Mh X?* ]a7 ?W iCgl NJ& 74i7 .•,nJCI ao7l,kw ;"Ps ■ 201?*1
Id Ad ra ■r1 A. 1A al hr ruaae ler..l .ti+l ■ 2a2i Acm ■ Xj21 Fi ■ M13 r-m w
s!1 r., «)., Ia.In 7473r MIM I«77 rrar 1J.}rll 45LLU r0.m ;LArl ...w ■hNg7 ,rrsa.l
Sales Tax is the single biggest economic indicator of how well businesses in Federal Way are thriving,
as well as the citizens' ability to prosper. The revenue remitted to the city from the state in the first six
months of 2022 exceeded the same six months in the prior year by 6.9%, each month ranging from
3.1 % to 11.0% over the same month in prior year. The remainder of 2022, 2023 and 2024 is forecasted
at an average increase of 5.7% over the same month in the prior period. This results in an estimated
increase of $1,063,000 for 2023 over 2022 and of $1,123,000 for 2024 over 2023.
11
CITY OF FEDERAL WAY 2023-24 BUDGET
Assessed Valuation and Property Tax Forecast
Property Valuation. King County Assessor's office provides certified assessed value (AV) by
September 25th every year. The graph at right, shows the
historical trend and it is expected to continue. Property Assessed Property Value
values have proven to be resilient in the City of Federal Way, 5..............
resultingin value to property owners that has exceeded the
� p p Y 61°.°°°.°°°.°°°
pace of property taxation.
58,000,000,000
66,000,000,000 - _ - - - _ - - _■_
The $1.60 Levy Cap. The state constitution establishes the 8.5% 11% 6.0% 5.6% 12% 5%
maximum regular property tax levy for all taxing districts °�°° °°°
g p p Y Y 9 5_
combined at 1 %, or $1 0 per $1 ,000 of a property's market 2013 2014 2015 2016 2017 2018 2019 20M 2021 2022 10-
Soutce:King"'tyhttps//kingro ty gov/depts/assessor/Repom/statistical-lports.aspx os of9/612022
value. This cap is further divided by statute to the various
taxing districts, with the maximum regular property tax levy of $3.60 per thousand dollars assessed
valuation (AV), however cities do not receive this amount, it is allocated across all taxing districts, of
which the city is only one. The City's property tax allocation is reduced by $0.50 allocated to library
and $1.50 to fire district. Therefore, the City's maximum levy is capped at $1.60.
Property Tax Levy. The City's property tax levy amount is regulated by state statute (RCW 84.52).
Even though the value of homes has increased historically Property Tax Leyy
in recent years as much as 12% a year (citywide average), 5.a000,00.
by state law, the city can only increase property tax on
existing property by 1 % annually. Property tax revenue is
estimated to increase 1.5% annually because there does 6.�
9% 1.4% 1.9% 1.7% 1.7% 1.5%
continue to be a thriving increase to property due to new
construction, supported by recent historical trends. $2Ir°M0
5
2013 2014 2015 2016 2U17 2018 2013 2020 2021 2022 2023 est
51-King Counry https//kingcounry.gov/depts/assessor/Reports/stanstiml-repom.aspx as 1f91612022
Property Tax Rate. In 2022, the King County Assessor levied $11,608,378 on City of Federal Way's
Assessed Value of $14,324,776,457, therefore the Property Tax rate was approximately $0.81 per
thousand dollars AV. It is important to note that the City has Property Tax Rate
no ability for rate -setting. The rate is purely a function of 51.5°°°°
assessed value, provided by the County Assessor, and the
levy, which is capped by State statute. Therefore, the
resulting decline in property tax rate, shown in the graph to $1 000
right, is purely a result of property tax valuation increase and
--------------------------------------------------------------------------------
a cap on the levy which is not permitted to keep pace with 507000°
property values. The calculated tax rate for 2023 is 2113 1°°4 2111 2111 111] 1111 1111 1121 -21 -22 2°23est
estimated at $0.7800, pending preliminary estimated AV. 5— Km9—tyhttps//k'nyroun".yov/depn/o`senor/Repoml,mttt¢ol-rtpom.usprn 1f9/6/2022
12
CITY OF FEDERAL WAY 2023-24 BUDGET
Overlapping property tax rates. As of the last annual audit, for the year ended December 31, 2021,
most recent data is shown in the graphic here. Subsequent NWkTap kuco-
changes are thought to be minimal and no material ry� �� ;•;• ,�,,h „
increases or decreases are known at this time. This shows
that the average Federal Way property owner sees these L
agencies on their tax bill and the City represents about 8% sas23:4sPof the total.
Utility Tax Revenue Forecast
As with many municipalities, Utility Taxes are a consolidation of several individual utility taxes:
telephone, electric, natural gas, cable, surface water, sewer, solid waste, and water utilities. Cities in
Washington State are authorized to levy a business and Utility Tax- Actual and Forecast
occupation tax (RCW 35.22.280(32)) on public utility 20.000.000
businesses based on utilities within the city or town, known ...... —
16,°°O,l%10
as a utility tax. The rate of taxes for electric, phone, and
natural gas utilities are limited to 7.75% (RCW 35.21.870). 1200_
10,000,000
Utility taxes are a general-purpose revenue source that are
allocated in a balanced budget to fund commitments to -
capital projects, debt service and city services.
2015 Act 201] Act 2018 Act 2019 Act 2020 Act 2021 Act 2022 Est 2023 2024 2025
Utility taxes received a 10% increase when the solid waste f_� fa ,t f—'t
rate changed from 7.75% to 17.75% in 2019. Rates for the 2023-24 are not being changed by any city
council action; the forecasted increase in revenue is attributable to a slight increase in projected volume
and the underlying rates charged by the utilities.
Lodging Tax Revenue Forecast
In formulating the 2023-24 Budget, with six months of actual lodging tax remitted to the City of Federal
Way, the remaining six months were forecasted, using pre-COVID 2019 data, month by month, and
extrapolating the recovery the tourism industry has
slowly experienced. March 2020 was the initial
month that overnight hotel stays dropped
precipitously, with two months experiencing a 77% ,„T
drop compared to prior year. Twenty-eight months ,.�..
later, hotels in the City of Federal Way generated .�
revenues in the first half of 2022 that are still only up
to 90% of 2019 levels. Not only have volumes of Um
hotel stays suffered, but hotels may have resorted to I I I I I 111111 :41 �*
drastic price cuts in order to facilitate the return of
tourism -related business. Again, the City of Federal
Way depends on the hotel and tourism sector to thrive in order for the City's lodging tax revenue to
return and thereby fund the expenditures that the City can provide to foster and encourage tourism
activity.
On August 8th, city staff advised the Lodging Tax Advisory Committee of forecasted Lodging Tax
revenue projections and provided a proposed budget allocation for tourism enhancement grants in
2023-24.
13
CITY OF FEDERAL WAY 2023-24 BUDGET
Citvwide Debt
The City's current debt consists of the remaining debt for capital projects that were financed over
multiple years. Debt issued resulting from the facility built in partnership with other jurisdictions for the
SCORE jail facility continues through 2037.
Ci.v o: F&Ejes.11 .4V0y - 41eG: hE,n-.n-ary - Ali Fs.nic,
Debt issued for the construction of the Federal :,a D1M [Hw
Way Community Center continues through
2032. Debt issued for construction of the
Performing Arts and Event Center has two AG.M.00] _
components which will be extinguished in
2029and 2035.M
0 0 0 0 0 4 o a CD'� M.a n o o a o-0 o
N f4 N M N A N r.i N ry N N it r4 F4 i-f N f4 h.l
No debt is proposed at this time for the 2023- ■IM IVA T"GO nniida.rlpi, Y]033 HO..10 vdlCnmmunri Lanier
�i*LTGO [SCORE) A20340 LTG6 Th. •--'IRkEll
24 Budget, however planning for a „
. luil F
maintenance and operations shop for Public
Works, Parks and Police Vehicles is being evaluated which will likely rely on debt funding. While that
would be an amendment to the Budget, it is prudent to keep a long-term view.
Citvwide Cash Position
The City's cash position has grown increasingly stronger in recent years. The American Rescue Plan
Act grant infused $19.2 million dollars which will be spent over the next two to three years, however is
currently largely invested pending disbursement. Total cash .....,.,.
is largely comprised of funds across the city's many
restricted funds, each fund spendable only for its restricted
purpose.
New for 2023-24, investment revenue is budgeted at $1.8
million dollars per year, the result of investment activity on a
pooled basis that commenced in 2021. As shown in the
graph at right, investments had completely matured and the
city has revived the investment program resulting in a
revenue stream that has allowed the budget to be balanced.
S 1(13.030 1)
�80,644.0}G
TI60.G20.000
544MOMD
;XD30.000
■ Irwas manuoligid7 "GIP [iqu1dlhJ '- Oieeiing Jsalely)
By systematically laddering maturity dates $1 million at a time instead of leaving in the variable -rate
government investment pool managed by the state treasurer, spendable yield has been created while
maintaining safety and liquidity and assuring sufficient cashflow for operations, capital expenditures
and debt service.
American Rescue Plan Act (ARPA
The City of Federal Way was awarded $19.2 million under this Federal legislation, designed to assist
cities with mitigating the economic impact of COVID and rebuilding cities' financial stability and long-
term fiscal health. A very long list of eligible uses has been considered over the past two years and
even as this budget is being prepared, some decisions remain to be finalized. This budget
contemplates the continued work on prioritizing and approving and assumes a high probability for
spending on projects currently proposed. There exists, however, some chance that further course
correcting could be possible should ARPA not ultimately fund needs that would need to be otherwise
budgeted.
14
CITY OF FEDERAL WAY 2023-24 BUDGET
Expense Management and Future Course Correction
As in past years, the city manages year-round, each department carefully monitoring and tracking
month by month. As circumstances change, department heads have authority to transfer budget
between lines, and the Mayor has executive authority to transfer budget between departments within
each fund. Budget Amendments are brought to City Council approximately quarterly to effect needed
changes across funds and to recognize off -setting new revenues and expenses. This careful
management sometimes yields net savings to the city, however more commonly this allows course
corrections such as being able to green -light priorities awaiting funding on the budget request lists that
were formulated and prioritized during the months -long budget process. This permits the Mayor to
maximize service delivery using citywide priorities.
Summary
2023-24 Budget
✓ Increases Investment in Public Safety
✓ Navigates Economic Uncertainty
The development of the city budget requires an enormous ✓ Maintains City's Commitments to
commitment by all City Departments and the Finance Services and Infrastructure
Department's Budget Team. The Finance team works year-
round meeting and coordinating with all city departments with an eye toward each up -coming budget.
The coordination, calculations and technical expertise of Finance staff to make this document possible
deserve recognition for their skilled efforts. We are proud of the work done day in and day out by all
City staff, which goes on continuously, necessarily coinciding with budget work. With the support of the
City Council, it is the efforts of our outstanding employees that make the City work for our residents
and make Federal Way an exceptional place to live, work and play.
This budget demonstrates our commitment to making the City of Federal Way an increasingly financially
well -managed city.
Respectfully submitted,
Ferrell, Mayor, City of Federal Way
15
CITY OF FEDERAL WAY 2023-24 BUDGET
Citywide
Operating
Budget
1b, .-.o k I -
0 14 Oil
16
CITY OF FEDERAL WAY 2023-24 BUDGET
2023 BUDGET - SUMMARY OF REVENUE AND EXPENDITURES - ALL FUNDS
FUND/DEPARTMENT
Beginning
Fund Balance
2023
Revenues
2023
Expenditures
Ending Fund
Balance
% Change in
Fund Balance
General Fund
12,415,532
56,445,231
59,685,154
9,175,609
-26.1%
Special Revenue Funds:
i
Street
210,983
5,690,475
5,401,458
500,000
137.0%
Arterial Street
100,001
1,563,000
1,563,000
100,001
0.0%
Affordable & Support. Housing Sales/Use Tax
140,702
125,000
125,000
140,702
0.0%
Utility Tax
4,579,047
11,830,565
11,619,868
4,789,743
4.6%
Solid Waste and Recycling
311,052
722,200
641,647
391,604
25.9%
Special Studies/Contract
462,890
-
-
462,890
0.0%
Hotel/Motel Lodging Tax
1,720,995
293,000
65,000
1,948,995
13.2%
Community Center
980,517
2,799,376
2,279,893
1,500,000
53.0%
Traffic Safety
3,109,153
3,000,000
3,786,735
2,322,419
-25.3%
Utility Tax Proposition 1
1,612,395
3,859,478
4,471,873
1,000,000
-38.0%
Performing Arts & Event Center
541,702
2,387,767
2,483,359
446,111
-17.6%
Soid Waste 10% Utility Tax
152,012
2,200,000
2,200,000
152,012
0.0%
Community Development Block Grant
28,268
858,193
858,193
28269
0.0%
Paths and Trails
1,895,150
170,600
100,000
1,965,750
3.7%
Technology
235,810
149,250
-
385,060
63.3%
Jail
164,252
2,335,748
2,500,000
(0)
-100.0%
Strategic Reserve
3,000,001
-
-
3,000,001
0.0%
Parks Reserve
1,120,891
5,000
-
1,125,891
0.4%
Total Special Revenue Funds
20,365,822
37,989,652
38,096,027
20,259,447
-0.5%
Debt Service
3,118,184
2,446,368
2,446,368
3,118,184
0.0%
Total Debt Service Fund
3,118,184
2,446,368
2,446,368
3,118,184
0.0%
Capital Project Funds
Real Estate Excise Tax
4,110,900
5,521,000
7,060,343
2,571,557
-37.4%
Downtown Redevelopment
3,496,123
-
205,000
3,291,123
-5.9%
Capital Project -Municipal Facilities
175,185
-
-
175,185
0.0%
Capital Project - Parks
1,497,896
367,000
367,000
1,497,896
0.0%
Capital Project - Surface Water Mgt
1,744,296
2,044,312
3,359,608
429,000
-75.4%
Capttal Project - Transportation
1,125,725
19,179,000
19,822,000
482,725
-57.1%
Capital Project Reserve
369,963
-
-
369,963
0.0%
Total Capital Project Funds
12,520,088
27,111,312
30,813,951
8,817,448
-29.6%
Enterprise Funds
Surface Water Management
2,897,393
6,226,871
6,450,608
2,673,656
-7.7%
Dumas Bay Centre
1,132,949
1,155,846
764,097
1,524,599
34.6%
Total Enterprise Funds
4,030,242
7,382,717
7,214,705
4,198,254
4.2%
Internal Service Funds
Risk Management
1,158,255
2,307,763
2,657,763
808255
-30.2%
Information Systems
3,734,945
3,243,845
3,646,229
3,332,561
-10.8%
Mail and Duplication
255,919
135,947
154,901
236,965
-7.4%
Fleet and Equipment
7,621,866
2,425,039
3256,067
6,790,838
-10.9%
Building and Furnishings
2,161,252
728,099
789,772
2,099,579
-2.9%
Health Insurance
3,579,885
4,956,000
5256,726
3,279,159
-8.4%
Unemployment Insurance
245,846
-
70,000
175,846
-28.5%
Total Internal Service Funds
18,7579968
13,796,693
15,831,458
1697239203
-10.80
Grand Total
$ 71,207,836
$145,171,974
$154,087,665
$ 62,292,146
-12.5%
17
CITY OF FEDERAL WAY 2023-24 BUDGET
2024 BUDGET - SUMMARY OF REVENUE AND EXPENDITURES - ALL FUNDS
FUND/DEPARTMENT
Beginning
Fund Balance
2024
Revenues
2024
Expenditures
Ending Fund
Balance
% Change in
Fund Balance
General Fund
9,175,609
60,649,378
60,824,985
9,000,002
-1.9%
Special Revenue Funds:
Street
500,000
5,495,163
5,495,163
500,000
0.00/0
Arterial Street
100,001
1,563,000
1,563,000
100,001
0.0%
Affordable & Support. Housing Sales/Use Tax
140,702
125,000
125,000
140,702
0.0%
Utility Tax
4,789,743
11,782,564
15,072,308
1,500,000
-68.7%
Solid Waste and Recycling
391,604
722,200
654,343
459,462
17.3%
Special Studies/Contract
462,890
-
-
462,890
0.00/0
Hotel/Motel Lodging Tax
1,948,995
308,000
65,000
2,191,995
12.5%
Community Center
1,500,000
2,306,857
2,306,857
1,500,000
0.00/0
Traffic Safety
2,322,419
3,000,000
4,122,419
1,200,000
-48.3%
Utility Tax Proposition 1
1,000,000
4,603,704
4,603,704
1,000,000
0.0%
Performing Arts & Event Center
446,111
2,259,757
2,483,359
222,509
-50.1%
Soild Waste 10% Utility Tax
152,012
2,300,000
2,300,000
152,012
0.0%
Community Development Block Grant
28,269
760,717
760,717
28,268
0.00/0
Paths and Trails
1,965,750
172,216
600,000
1,537,966
-21.8%
Technology
385,060
149,250
-
534,310
38.8%
Jail
(0)
2,700,000
2,700,000
(0)
13.8%
Strategic Reserve
3,000,001
-
-
3,000,001
0.0%
Parks Reserve
1,125,891
5,000
1,130,891
0.4%
Total Special Revenue Funds
20,259,447
38,253,429
42,851,870
15,661,006
-22.7%
Debt Service
3,118,184
2,446,459
2,446,459
3,118,184
0.0%
Total Debt Service Fund
3,118,184
2,446,459
2,446,459
3,118,184
0.0%
Capital Project Funds
Real Estate Excise Tax
2,571,557
5,576,000
5,788,245
2,359,312
-8.3%
Downtown Redevelopment
3,291,123
-
100,000
3,191,123
-3.0%
Capital Project - MunicipalFacilities
175,185
-
-
175,185
0.00/0
Capital Project - Parks
1,497,896
767,000
767,000
11497,896
0.00/0
Capital Project - Surface Water Mgt
429,000
1,556,230
1,805,273
179,957
-58.1%
Captial Project - Transportation
482,725
39,875,649
38,455,000
1,903,373
294.3%
Capital Project Reserve
369,963
-
-
369,963
0.00/0
Total Capital Project Funds
8,817,448
47,774,879
46,915,518
9,676,809
9.7%
Enterprise Funds
Surface Water Management
2,673,656
6,228,298
8,104,300
797,654
-70.2%
Dumas Bay Centre
1,524,599
792,696
773,784
1,543,510
1.2%
Total Enterprise Funds
4,198,254
7,020,994
8,878,084
2,341,164
-44.2%
Internal Service Funds
I
Risk Management
808,255
2,120,877
2,329,131
600,001
-25.8%
Information Systems
3,332,561
3,288,845
3,393,541
3,227,865
-3.1%
Mail and Duplication
236,965
135,947
161,901
211,011
-11.00/0
Fleet and Equipment
6,790,838
2,399,475
1,711,734
7,478,580
10.1%
Building and Furnishings
2,099,579
603,099
664,772
2,037,906
-2.9%
Health Insurance
3,279,159
4,956,000
5,256,726
2,978,433
-9.2%
Unemployment Insurance
175,846
-
70,000
105,846
-39.8%
Total Internal Service Funds
16,723,203
13,504,243
13,587,805
16,639,641
-0.501(
Grand Total
$ 62,292,146
$ 169,649,382
$175,504,723
$ 56,436,805
In
CITY OF FEDERAL WAY 2023-24 BUDGET
Explanation of Major Changes in Fund Balance
Fund balances are budgeted to remain within the required balances of council -authorized fund balance reserve policy.
Broadly, the General Fund's fund balance reflects the one-time inflow and then the expenditure of $19.2 million from the
ARPA grant. Capital Fund fund balances indicate a decrease due to some prior -year revenues being spent in 2023 and
2024. Compared to the previous biennium budget, the following are material changes:
General Fund —The 2023 ending fund balance decreased due to addition of 13 new Police Officers, 2 Records Specialists,
2 Public Records Officers, 0.5 FTE Admin Assistant II reclassified to 1 Human Resources Technician, 5 Maintenance
Workers, 1 City Administrator, and ValleyComm 911 contract increase.
Street Fund — The 2023 ending fund balance increased due to additional General Fund support provided to the fund for
operations.
Federal Way Community Center Fund — The 2023 ending fund balance increased due to additional Utility Tax Fund
support provided to the fund for operations.
Traffic Safety Fund — The 2023 ending fund balance decreased due to increased costs for body worn cameras, and salary
and benefit increases for Police positions.
Utility Tax Proposition 1 Fund — The 2023 ending fund balance decreased due to salary and benefit increases for Police
positions, and increased public defender contracted services.
Capital Project — Surface Water Management Fund — The 2023 ending fund balance decreased due to funding surface
water management capital projects.
Capital Project — Transportation Fund — The 2023 ending fund balance decreased due to funding street and
transportation capital projects.
Dumas Bay Centre Fund — The 2023 ending fund balance increased due to additional Utility Tax Fund support provided
to the fund for operations.
Risk Management Fund — The 2023 ending fund balance decreased due to increased insurance premium costs.
Fleet & Equipment Fund — The 2023 ending fund balance decreased due to progress on replacing overdue vehicle and
equipment.
19
CITY OF FEDERAL WAY 2023-24 BUDGET
The City's Funds Structure
All Funds except General Fund are restricted for a specific purpose
Governmental Funds Proprietary Funds
Debt Service
General Fund Special Revenue Funds Funds Capital Project Funds Enterpise Funds Internal Service Funds
Non - Debt Service Downtown Surface Water
Street Risk Management
T)Pnarhnwntal Fund Redevelopment Mana ement
City Council I �— J Arterial Street
Mayor's Office
Utility Tax
Municipal Court
Solid Waste &
Recycling
Finance
Special
Studies/Contract
Law
Hotel
Motel/Lodging Tax
Community
Development
Police/911
Community Center
Traffic Safety
Parks and
Recreation
Utility Tax -Prop 1
P=egE
Solid Waste 10%
Utility Tax
Commun=Ga
Bloc
Paths & Trails
Strategic Reserve
Technology
Afford. & Support.
Housing Sales Tax
Parks Reserve
Jail Fund
g
Municipal
Information
Dumas Bay
Facilities
Systems
Parks
Mail & Duplication
Surface Water
=Equipment
Management
Buildings &
Transportation
Furnishings
Capital Project
Health Insurance
Reserve
Perforating Arts
_FUnemployment
& Event Center
Insurance
Real Estate
Excise Tax
CITY OF FEDERAL WAY 2023-24 BUDGET
Fund #/Fund Name
001/101 General/Streets
502 Information Systems
503 Mail & Duplication
107 Special
Contracts/Studies Fund
121 Technology
113 Real Estate Excise
Tax Fund
120 Path & Trails
189 Parks Reserve Fund
303 Parks
504 Fleet & Equipment
111 Federal Way
Community Center
114 Prop 1 Utility Tax
115 Performing Arts &
Event Ctr Operations
402 Dumas Bay Centre
Fund
505 Buildings &
Furnishings
112 Traffic Safety Fund
122 Jail Fund
102 Arterial Street
116 Solid Waste 10%
Utility Tax
304 Surface Water
Management
306 Transportation
106 Solid Waste &
Recycling
401 Surface Water
Management
104 Affordable &
Supportive Housing Sales
Tax
119 CDBG
109 Hotel/Motel Lodging
Tax
501 Risk Management
506 Health Self Insurance
Fund
507 Unemployment
Insurance Fund
103 Utility Tax
188 Strategic Reserve
Fund
201 Debt Service
301 Downtown
Redevelopment
302 Municipal Facilities
307 Capital Project
Reserve Fund
Infrastructure & Services
IT
Parks
Police
PW
Ops
Ops
Ops
Ops
Cap
Cap
Ops
Ops
Cap
Cap
Cap
Cap
Cap
Cap
Cap
Cap
Ops
Ops
Ops
Ops
Ops
Ops
Ops
Ops
Ops
Cap
Cap
Cap
Cap
Ops
Ops
Operations - Services/Support
Capital - Infrastructure
Operations & Services Only
I CD I Clerkl Council I Econ I Finance I HR I Legal I
Ops
Cap
Ops
Court
Mayor
Non -Dept
Ops
Ops
Ops
Ops
Ops
Ops
Ops
Ops
Ops
Cap
Cap
Cap
Cap
21
CITY OF FEDERAL WAY 2023-24 BUDGET
SOURCES & USES - ALL FUNDS
Citywide Revenue Citywide Expenditure
180-0 169.6 200-0
1415 146.8 153.7 145.2 190.0 174.7 174.8 175.5
150-0 .154.1
140-0 66.1 160-0
117.6 116.E
120-0 67.3 1400 114.E 121.4 121.3 76.0 76. D 66.3
100-0 65.2 65.3 62.1 120.0 65.1
80.0 58.1 52.7 100-0 56A 53.5
80 n 57.1
60-0 60.0
40-0 ® ® i '400
20-0 200
2020 2021 2022 2022 2022 2023 2024 2020 2021 2022 2022 2022 2023 2024
Actual Actual Adopted Adjusted Projected Proposed Proposed Actual Actual Adopted Adjusted Projected Proposed Proposed
■Other Funds GF&ST Funds ■Other Funds GF&Sr Funds
Item
2020 2021
Actual Actual
2022
2023
Pro osed
2024
Pro osed
23 Pro osed - 22 Ad'
Ado ted
Adjusted
I Proected
Ch
%Ch
BEGINNING FUND BALANCE
1 $ 69,236,800 $ 72,206,885
$ 60,598,909
$ 92,287,328
$ 92,287,328
$ 71.207,836
IS 62,292,146
1 $ (21,079,492)
-22.8%
REVENUE:
Property Taxes
$ 11,092,158
$ 11,260,318
$ 11,357,280
$ 11,357,280
$ 11,357,000
$ 11,527,639
$ 11,700,554
$ 170,359
1.5%
Sales Tax
16,127,570
17,494,058
15,949,755
16,949,755
18,589,455
19,652,000
20,775,000
2,702,245
15.9%
Criminal Justice Sales Tax
2,807,139
3,270,840
3,027,361
3,027,361
3,200,000
3,027,361
3,027,361
-
0.01/0
Utility Tax
14,672,457
16,992,709
15,177,606
15,677,606
17,391,748
17,391,000
17,443,000
1,713,394
10.9%
Real Estate Excise tax
4,467,111
5,174,908
3,640,000
4,421,454
6,015,754
5,521,000
5,576,000
1,099,546
24.9%
Other Taxes
789,015
2,513,742
762,513
887,513
1,481,834
1,064,865
1,132,371
177,352
20.0%
Licenses and Permits
3,916,412
3,843,510
3,800,552
3,800,552
4,429,444
4,295,044
3,892,249
494,492
13.0%
Intergovernmental
13,357,061
19,303,885
8,691,893
30,834,979
29,925,764
15,087,453
8,266,950
15,747,526
-51.1%
Charges for Services
22,152,975
30,537,511
25,181,793
28,258,690
29,441,521
33,234,217
28,103,557
4,975,527
17.6%
Fines and Penalties
2,898,187
3,782,220
3,699,428
3,699,428
4,483,000
3,828,937
3,856,040
129,508
3.5%
Miscellaneous
2,589,913
2,221,573
4,152,311
3,902,311
3,736,310
4,234,456
36,239,456
332,145
8.5%
Proprietary Fund Revenue
808,069
301,265
488,000
488,000
154,506
490,250
490,250
2,250
0.5%
Other Financing Sources
21,927,070
24,776,267
20,672,812
23,535,699
23,496,699
25,817,751
29,146,593
2,282,052
9.7%
Total Revenues
117,605,137
141,472,804
116,601,304
146,840,628
153,703,035
145,171,974
169,649,382
1,668,654
-1.1%
EXPENDITURE:
City Council
471,319
504,501
530,695
523,580
523,581
488,045
491,279
35,535)
-6.8%
Ma ofs Office
1,536,235
1,779,512
1,729,923
1,901,301
1,901,301
2,228,763
2,246,453
327,462
17.2%
Perfonning Arts & Event Center
1,452,916
1,653,440
2,299,757
2,631,641
2,631,641
2,483,359
2,483,359
148,282
-5.6%
Munici alCourt
1,955,894
2,028,413
2,074,615
2,509,634
2,509,634
2,268,321
2,312,376
241,313)
-9.6%
Finance
1,023,437
1,128,174
1,287,736
1,077,480
1,077,480
1,331,417
1,381,464
253,937
23.6%
City Clerk
595,379
804,823
560,410
619,413
619,413
848,565
857,669
229,151
37.0%
Human Resources
483,770
590,414
536,319
594,623
594,623
698,224
714,037
103,601
17.4%
Information Technology
2,473,826
2,542,978
2,906,915
4,461,315
4,461,315
3,801,130
3,555,442
660,185
-14.8%
Law -Civil
3,411,822
2,717,873
2,740,068
2,914,808
2,914,808
3,946,590
3,643,093
1,031,783
35.4%
Law -Criminal
709,570
768,882
776,142
916,028
916,028
995,576
1,013,080
79,548
8.7%
Coninunity Development
2,715,958
2,839,527
2,792,217
3,530,338
3,530,338
3,722,867
3,774,224
192,529
5.5%
Econon>ic Development
398,512
382,498
284,756
286,423
286,423
334,768
346,326
48,344
16.9%
Community Services
1,862,645
1,964,717
1,733,503
3,143,371
3,143,371
2,013,410
1,935,407
(1,129,961)
-35.9%
Jail Contract Costs
2,712,884
2,223,602
3,319,584
1,819,584
1,819,584
2,500,000
2,700,000
680,416
37.4%
911 Dispatch
2,719,126
2,587,211
2,748,692
2,748,692
2,748,692
3,079,131
3,300,000
330,439
12.0%
Police
23,103,329
24,802,094
25,343,757
26,246,162
26,246,162
29,822,715
31,432,265
3,576,553
13.6%
Parks, Recr & Cultural Svcs
6,662,136
8,888,413
8,969,962
9,816,314
9,816,314
9,368,489
10,234,412
447,826
-4.6%
Public Works
21,424,781
26,471,164
26,436,182
52,626,958
52,626,958
43,416,384
60,827,382
(9,210,573)
-17.5%
Non -Departmental
38,921,516
36,714,126
34,263,378
56,356,858
56,414,858
40,739,909
42,256,452
15,616,949
-27.7%
Total Expenditures
114,635,052
121,392,361
121,334,610
174,724,524
174,782,524
154,087,665
175,504,723
(20,636,861)
-11.8%
Changes in Fund Balance
2,970,085
20,080,443
(4,733,306)
(27,883,896)
(21,079,489)
(8,915,691)
(5,855,341)
18,968,204
-68.0%
ENDING FUND BALANCE:
$ 72,206,885
$ 92,287,328
$ 55,865,604
$ 64,403,432
1 $ 71,207,836
1 $ 62,292,146
1 $ 56,436,805
$ (2,111,287)
-3.3%
22
CITY OF FEDERAL WAY 2023-24 BUDGET
EXPENDITURE SUMMARY — ALL FUNDS
Code
Item
2020
a
2021
Actual
2022
2023
Pro osed
2024
Pro osed
23 Proposed - 22 Adj
Adopted
Adjusted
Projected
Ch °/u Ch
Expenditures:
I
I
1XX
Salaries & Wages
$ 31,747,430
$ 34,212,459
$ 37,037,724
$ 38,229,848
$ 38,229,848
$ 41,906,643
$ 43,300,544
$ 3,676,794
9.6%
2XX
Benefits
11,019,373
11,475,128
12,003,324
12,178,014
12,178,014
13,976,083
14,525,663
1,798,069
14.8%
3XX
Supplies
2,426,789
3,162,113
2,026,274
2,737,736
2,737,736
2,819,922
2,816,573
82,186
3.01/o
4XX
Services and Charges
23,552,206
22,621,865
20,397,528
25,633,093
25,693,093
22,775,870
22,285,856
(2,857,224)
-11.1%
5XX
Intergovernmental
6,003,315.48
6,500,766.76
7,324,283.15
6,134,427.15
6,134,427.15
6,998,328.15
7,406,371.15
863,901
14.1%
6XX
Capital Outlay
8,445,210
8,290,153
11,563,290
55,510,728
55,510,728
27,855,966
44,301,073
(27,654,762)
-49.8%
7XX
Debt Service -Principal
1,890,181
1,948,716
2,162,716
2,162,716
2,162,716
1,654,000
1,704,000
(508,710
-23.5%
8XX
Debt Service -Interest
1,083,181
1,041,374
1,022,171
1,022,171
1,022,171
794,290
744,381
(227,881)
-22.3%
9XX
Internal Services/Other
6,771,229
8,152,005
7,124,488
7,698,503
7,698,503
9,488,810
9,273,667
1,790,307
23.3%
OXX
Other Financing Use
21,696,137
23,987,781
20,672,812
23,417,287
23,415,287
25,817,751
29,146,593
2,400,464
10.3%
Total Expenditures-
$114,635,052
$121,392,361
$ 121,334,610
$ 174,724,524
$ 174,782,524
$ 154,087,665
$ 175,504,723
$ (20,636,861)
-11.8%
1. Salaries & Wages/Benefits increase due to adding 13 Police Officers, 2 Records Specialists, 0.5 FTEAdmin Assistant II reclassified to 1 Human Resources Technician
6 Maintenance Workers, 2 Public Records Officers, I Senior Engineering Technician, and 1 Engineering Construction Inspector.
2. Services and Charges decrease due to decreased SWM and Transportation capital expenditures categorized under services and charges instead of capital outlay.
3. Capital outlay decrease is due to elimination of one-time ARPA expendituures, and capital prjects in 2022 for SWM, transportation, and overlay projects that are not yet
carried forward into 2023.
4. Intergovemrrental increase is due to increased Valleycomm and jail services.
5. Internal Service increase is due to increase in contribution to fleet and equipment fund.
All Funds 2023 Revenues $145.17M
All Funds 2D23 Expenditures L%.04 M
Other, 12.95,
PropertyTaxrs,T1.53,8%
Publkwwks.
-city C'ouna.
43.42, 2.A96
D,45 09d
9'�
REET r 5.52,
inigA , 15J08,
4%
rr
f
%
mayor's,
ia46
Other Taxes,
f4¢ry-
2,23.1'�S
A.Q9, 3',5
DrparGnrnlal ,
4S1.7d, 26
Muni iVrt,
ptlrlyTax,�,�6
V 3%17%
Charges for
Comm Devi.
5erw'M r
169 , Ada
33,2.3r 239�
orther
Parks, "2r 6'k
Sales Tax ,
Financing
�
1945,13%
� 105 t
Poli re fl aiff pupa
ether , 13-11 r
25.62,1836
35.40, 21%
23
CITY OF FEDERAL WAY 2023-24 BUDGET
GENERAL AND STREET FUND CONSOLIDATED SUMMARY
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
o osed
Proposed - 22 Ad'
Ado ted
Adjusted
Projected
HL$1!C--t
g
% Ch
BEGINNING FUND BALANCE
$ 11,604,046
$ 12,575,815
$ 10,252,674
$ 21,339,329
$ 21,339,329
$ 12,626,515
$ 9,675,609
$ (8,712,814)
-40.8%
REVENUE SUMMARY.•
Property Tax
11,092,158
11,260,318
11,357,280
11,357,280
11,357,000
11,527,639
11,700,554
170,359
1.5%
Sales Tax
16,127,570
17,494,058
15,949,755
16,949,755
18,589,455
19,652,000
20,775,000
2,702,245
15.9%
Criminal Justice Sales Tax
2,807,139
3,270,840
3,027,361
3,027,361
3,200,000
3,027,361
3,027,361
-
0.0%
Other Tans
221,613
869,785
452,513
452,513
743,000
485,265
536,155
32,752
7.2%
Licenses and Pernuts
3,844,916
3,778,743
3,800,552
3,800,552
4,399,444
4,295,044
3,892,249
494,492
13.0%
hitergovemmental
8,343,375
13,369,986
3,304,000
13,284,219
12,902,888
3,905,260
3,946,233
(9,378,959)
-70.6%
Charges for Services
2,955,999
4,563,366
4,974,910
5,034,655
4,504,057
5,397,108
5,139,471
362,453
7.2%
Fines and Penalties
737,582
872,906
824,986
824,986
612,000
826,937
854,040
1,950
0.2%
Miscellaneous
1,542,620
724,446
1,034,630
1,034,630
1,498,000
2,399,448
2,404,448
1,364,818
131.9%
Other Financing Sources*
10,427,377
8,967,991
7,985,575
9,484,399
9,482,399
10,619,645
13,869,030
1,135,246
12.0%
Total Revenues
$ 58,100,350
$ 65,172,439
$ 52,711,562
$ 65,250,350
$ 67,288,244
$ 62,135,706
$ 66,144,541
$ (3,114,644)
-4.8%
EXPENDITURE SUMMARY.•
City Council
$ 471,319
$ 504,501
$ 530,695
$ 523,580
$ 523,580
$ 488,045
$ 491,279
$ (35,536)
-6.8%
Mayor's Office
851,226.75
1,069,546
923,847
1,095,225
1,095,225
1,412,687
1,430,377
$ 317,462
29.0%
Municipal Court
1,780,793
1,871,113
1,818,905
2,253,925
2,253,925
2,007,913
2,048,723
$ (246,011)
-10.9%
Finance
1,023,437
1,128,174
1,287,736
1,077,480
1,077,480
1,331,417
1,381,464
$ 253,937
23.6%
City Clerk
595,379
804,823
560,410
619,413
619,413
848,565
857,669
$ 229,151
37.0%
Human Resources
483,770
590,414
536,319
594,623
594,623
698,224
714,037
$ 103,601
17.4%
Law -Civil
825,669
679,317
974,797
921,433
921,433
980,618
995,113
$ 59,185
6.4%
Law -Criminal
709,570
768,882
776,142
916,028
916,028
995,576
1,013,080
$ 79,548
8.7%
Community Development
2,614,486
2,743,475
2,683,103
3,171,225
3,171,225
3,477,402
3,524,299
$ 306,178
9.7%
Economic Development
398,512
382,498
284,756
286,423
286,423
334,768
346,326
$ 48,344
16.90/.
Community Services
917,560
875,800
975,180
911,305
911,305
1,155,217
1,174,690
$ 243,913
26.8%
Jail Contract Costs
2,712,884
-
-
-
-
-
-
$ -
n/a
911 Dispatch
2,719,126
2,587,211
2,748,692
2,748,692
2,748,692
3,079,131
3,300,000
$ 330,439
12.0%
Police
18,706,106
19,654,107
20,492,402
20,649,002
20,649,002
24,073,081
25,252,581
$ 3,424,078
16.6%
Parks, Recr & Cultural Svcs
3,808,310
4,561,865
4,193,695
4,720,147
4,720,147
4,949,176
5,000,901
$ 229,028
4.9%
Public Works
4,061,117
4,198,731
4,567,989
4,838,794
4,838,794
5,173,188
5,266,894
$ 334,394
6.9%
Non -Departmental
14,449,318
13,988,468
10,109,569
30,673,763
30,673,763
14,081,604
13,522,714
$ (16,592,159)
-54.1%
Total Expenditures
$ 57,128,581
$ 56,408,925
$ 53,464,236
$ 76,001,058
$ 76,001,058
$ 65,086,612
$ 66,320,148
$ (10,914,446)
-14.40/.
Changes in Fund Balance
$ 971,769
$ 8,763,514
$ (752,674)
$ (10,750,708)
$ (8,712,814)
$ (2,950,906)
$ (175,607)
$ 7,799,802
-72.60/.
ENDING FUND BALANCE:
$ 12,575,815
$ 21,339,329
$ 9,500,000
$ 10,588,621
$ 12,626,515
$ 9,675,609
$ 9,500,002
$ (913,012)
-8.6%
24
CITY OF FEDERAL WAY 2023-24 BUDGET
EXPENDITURE SUMMARY - GENERAL FUND
Code
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23 Proposed -22 Ad'
Adopted Adjusted
Projected
$Ch %Ch
Expenditures:
I
1XX
Salaries & Wages
$ 23,627,515
$ 24,591,%0
$ 25,967,379
$ 26,788,483
$ 26,788,483
$ 30,447,057
$ 31,585,656
$ 3,658,574
13.7%
2XX
Benefits
8,002,259
8,253,131
8,732,062
8,831,894
8,831,894
10,181,485
10,608,174
1,349,590
15.3%
3XX
Supplies
1,574,845
1,259,067
875,006
1,156,664
1,156,664
1,151,543
1,148,194
(5,121)
-0.4%
4XX
Services and Charges
7,077,552
6,230,151
5,081,460
5,946,516
5,946,516
6,041,091
6,050,709
94,574
1.6%
5XX
hitergovemmental
5,256,543
4,076,371
3,891,205
3,931,349
3,931,349
4,440,588
4,661,457
509,239
13.0%
6XX
Capital Outla
1,211,854
113,412
-
19,167,491
19,167,491
-
19,167,491
-100.0%
9XX
Internal Services
5,709,689
7,013,907
6,201,298
6,775,313
6,775,313
8,562,620
8,347,477
1,787,307
26.4%
OXX
Other Financing Use
4,668,324
4,870,926
2,715,826
3,403,348
3,403,348
4,262,228
3,918,481
858,880
25.2%
Total Expenditures:
$ 57,128,581
$ 56,408,925
$ 53,464,236
$ 76,001,058
$ 76,001,058
$ 65,086,612
$ 66,320,148
$ (10,914,446)
1. Salaries & Wages/Benefits increase due to adding 13 Police Officers, 2 Records Specialists, 0.5 FTEAdmin Assistant lI reclassified to 1 Human Resources Technician,
5 Maintenance Workers, 2 Public Records Officers, and 1 City Administrator.
2. Intergovernmental increase is due to Valleycomm 911 Contract increase.
3. Capital Outlay decrease is primarily due to one-time ARPA expenditures.
4. Internal Services increase is due to increase in contribution to fleet and equipment.
Ganaral and Weat Fund 2023 RimenmesSQ.I, W
Other FnRxing
fines � i
Saur€e5
176
1 T75
Chargesior
�{YwiSeti
97K
Intgvu
G�6
Licenses and
Perm its
r9S
lasses
Glamarml and Strut Fund 2023 Exp"Rum
60.09m
Non -
Public Works CQvncW
�.9�9f 0,75y6
departinrMal I hiay�'sdEface
2�,4a 11
2.17%
[ylunisip,llrqurt
Parks, R2tr $ FlrlarKe
Cultural S -5 �'Oi96 City Clerk
7.69% 1.SUN
+a+'a� �esoowfs
og7x
Lew
i.Oh96
Comrnurtlt�
Police{JailfUispa �.��
tch Community Eaanoinlc
di-7245 SetwC.eI oewelopmertt
3.69�6 U,�S�6
25
CITY OF FEDERAL WAY 2023-24 BUDGET
CITY-WIDE SERVICE DELIVERY AND SUPPORT STAFF
(full-time equivalent positions)
Department / Division
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
Adopted
Adjusted
Projected
Subtotal City Council
4.20
4.20
4.20
4.20
4.20
4.20
4.20
Mavor's 0 cc
Administration*
5.34
5.34
5.34
5.34
5.34
6.34
6.34
Economic Development
1.00
2.00
1.00
2.00
2.00
2.00
2.00
Emergency Management
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Human Resources*
3.50
4.00
3.50
3.50
3.50
4.00
4.00
City Clerk*
2.50
2.50
2.50
2.50
2.50
3.50
3.50
Subtotal Mayor's Office
13.34
14.84
13.34
14.34
14.34
16.84
16.84
Subtotal Information Technology
8.00
10.00
8.00
10.00
10.00
10.00
10.00
Munici al Court
Court Operations
13.00
13.00
13.00
13.00
13.00
13.00
13.00
Probation Services
3.00
3.00
3.00
3.00
3.00
3.00
3.00
Subtotal Municipal Court
16.00
16.00
16.00
16.00
16.00
16.00
16.00
Subtotal Finance
10.00
10.00
10.00
10.00
9.00
9.00
9.00
Law
Civil Legal Services
4.30
4.30
4.30
4.30
4.30
4.30
4.30
Criminal Prosecution Services
8.20
9.20
8.20
9.20
9.20
9.20
9.20
Subtotal Law
12.50
13.50
12.50
13.50
13.50
13.50
13.50
Communit Develo meet
Administration
4.58
4.58
4.58
5.50
5.50
5.50
5.50
Planning
6.80
6.80
5.80
6.80
6.80
6.80
6.80
Building
11.00
13.00
11.73
13.00
13.00
13.00
13.00
Contrnunity Services
3.80
2.50
3.07
3.50
3.50
3.50
3.50
Subtotal Community Development
26.18
26.88
25.18
28.80
28.80
28.80
28.80
Police
Administration
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Support Services
62.00
57.00
76.00
57.00
58.00
58.00
58.00
Field Operations
103.00
127.00
92.00
127.00
126.00
126.00
126.00
Subtotal Police*
167.00
186.00
170.00
186.00
186.00
186.00
186.00
Park. Recreation & Cultural Services
Administration
1.80
1.80
1.80
1.80
1.80
1.80
1.80
General Recreation
6.83
7.13
6.83
7.13
1 7.13
7.13
7.13
Community Center
11.33
11.33
11.33
11.33
11.33
11.33
11.33
Dumas Bay Centre
3.00
3.00
3.00
3.00
2.00
2.00
2.00
Park Maintenance
16.25
17.00
17.00
17.00
17.00
20.00
20.00
Perforrning Arts & Event Center
-
-
-
-
-
-
-
Subtotal Park, Recreation & Cultural Services *
39.21
40.26
39.96
40.26
39.26
42.26
42.26
Public Works
Administration
1.61
1.61
1.61
1.61
1.61
1.61
1.61
Development Services
2.85
2.70
2.85
2.85
2.70
2.70
2.70
Traffic Services
5.28
5.28
5.28
7.28
7.28
7.28
7.28
Street Services
12.00
14.05
12.00
14.00
14.05
15.05
15.05
Operational Services
19.00
22.15
21.00
23.00
25.15
28.15
28.15
Solid Waste/Recychng
2.41
1 4.71
1 2.41
2.41
2.71
2.71
2.71
Surface Water Management
12.85
14.50
14.85
13.85
11.50
12.50
12.50
Subtotal Public Works*
56.00
65.00
60.00
65.00
65.00
70.00
70.00
Total Ongoing City Staffing
352.43
386.68
359.18
388.10
386.10
396.60
396.60
* 1 FTE City Administrator added to Mayor's office
* 0.5 FTE Administrative Assistant II reclassified to 1.0 FTE Human Resources Technician in Human Resources Department
* 1 FTE Public Records Officer added to City Clerk Department
* 13 FTE Police officer, 2 FTE Records Specialist, and 1 FTE Public Records Coordinator added to Police Department
* 3 FTE Maintenance Worker Il added to Parks Department, and reduction of 1 FTE Chef/Kitchen Coordinator
* 3 FTE Maintenance Worker Il, 1 FTE Senior Engineering Technician, and 1 FTE Engineering Construction Inspector added to Public Works Department
CITY OF FEDERAL WAY 2023-24 BUDGET
FUNDED AND UNFUNDED NEEDS
Limited by revenue, the following shows what budget needs have been prioritized into the 2023-24
Budget. The unfunded needs represent what is not yet able to be funded in the budget, so would be
eligible for the next dollars available either through higher -than -budgeted revenue or expense savings.
These lists are shown in descending order of materiality, not priority.
Top 10+ additions to the 2023 Budget
1. Public Safety Salaries & Benefits increase
$1,500,000
2. Jail cost increase $680,000
3. Citywide Insurance cost increase $598,000
4. PD Body -worn camera increase
$460,000
5. Required self-insurance reserve increase
$350,000
6. ValleyComm 911 system cost increase
$330,000
7. PD Vehicle replacements $308,000
8. Lakehaven hydrant support costs $281,000
9. PW winter operations staffing
$257,000
10. Parks playground perpetual replacement
$162,000
11. Contractual accrued vacation payouts
$120,000
12. Road salt in line with historical usage
$105,000
13. Public records staffing to keep pace with
demand $103,000
14.Increased election costs $100,000
Top 10+ unfunded needs in 2023
1.
Vehicle replacement reserve due to delayed
replacement and cost increases
2.
Vehicle replacement backlog
3.
Opticom traffic signal preemption system
upgrade
$1,500,000
4.
Additional PD special emphasis
$537,000
5.
City Hall roof replacement
$500,000
6.
City Hall fire panel replacement
$500,000
7.
Parks Tennis Court renovations
$500,000
8.
IT CRAC unit replacement
$200,000
9.
Sacajawea Park track replacement
$200,000
10. Public Works Streetlight program increase
$190,000
11. Public Works tree canopy management
increase $150,000
12. Social Services Grants $123,000
13. City wi-fi enhancement $75,000
27
CITY OF FEDERAL WAY 2023-24 BUDGET
Major Revenue Forecasts
Sales Tax Forecast
Revenue remitted to the city from the state in the first six months of 2022 have exceeded the same six
months in prior year by 6.9%, each month ranging from 3.1 % to 11.0% over the same month in prior
year. The entire year of 2019 exceeded 2018 by 8.0%, 2021 exceeded 2020 by 8.5%. The year of
2020 was impacted by COVID, particularly the two months of April and May, after which sales tax
returned to pre-COVID levels and above. That year did impact simple extrapolation and therefore every
month is forecasted separately, attempting to exclude the anomaly of COVID. The remaining months
are forecasted at the average increase of 5.7% over the same month in the prior period and that same
figure is used going forward through every month of 2025 to produce the 2023 and 2024 budgeted
Sales Tax Revenues. This results in an estimated increase of $1,063,000 for 2023 over 2022 and of
$1,123,000 for 2024 over 2023.
2016 Act 2017 Act 2018 Act 2019 Act
Jan
$ 1,407,385
$ 1,427,326 $
1,502,207 $
1,501,715
Feb
967,408
1,023,938
1,084,522
1,104,726
Mar
1,031,972
984,581
1,025,585
997,513
Apr
1,169,154
1,251,616
1,319,134
1,346,880
May
1,148,897
1,020,631
1,144,354
1,229,332
Jun
1,191,650
1,113, 539
1,148,178
1,263,066
J u I
1,308,122
1,288,291
1,297,748
1,502,252
Aug
1,230,986
1,210,774
1,220,004
1,401,269
Sep
1,271,590
1,221,028
1,228,595
1,438,593
Oct
1,241,815
1,346,048
1,363,500
1,528,439
Nov
1,133,454
1,130,197
1,184,206
1,316,631
Dec
1,120,063
1,181,491
1,213,777
1,278,447
14, 222,496 14,199, 460 14, 731, 810 15, 908, 863
(23,036) 532,350 1,177,053
-0.2% 3.7% 8.0%
Sales Tax - Arctidd and Forecast
]' MIMI
3t"IM-
]9
rcE6L9U
)..4 JAI, ?r.6 M. ?NZ +rgI. wj• Poly �7i J��
�tl ia1 lac is W r -I 1■1Lab haul
U W.T■■ WI ; 14.1H JA724 4klM 1«77 rrar 1J.PI {SLcae 10.an ,LAM
' i nitial economic dip
due to pandemic"
Estimated escalator for forecasted months
105.7% 105.7% 10L
2020 Act 2021 Act 2022 Act 2022 Est 2023 forecast 2024 forecast
1,632,752 $ 1,604,220 $ 1,653,281 $ 1,653,281 $ 1,748,000 $ 1,848,000
1,182, 535 1,228,579 1,284,275 1,284,275 1,358,000 1,436, 000
1,066,267 1,185,132 1,314,196 1,314,196 1,389,000 1,468, 000
1,130, 545 1,508,266 1,636,738 1,636,738 1,730,000 1,829,000
1,154, 633 1,401,831 1,556,411 1,556,411 1,645,000 1,739,000
1,423,588 1,473,417 1,532,555 1,532,555 1,620,000 1,713,000
1,473,117 1,607,373 - 1,699,000 1,796,000 1,899,000
1,511,762 1,566,626 1,656,000 1,751,000 1,851,000
1,419,920 1,520,312 1,607,000 1,699,000 1,796,000
1,456,510 1,509,402 1,596,000 1,687,000 1,783,000
1,351,208 1,455,577 1,539,000 1,627,000 1,720,000
1,324,732 1,433,324 1,515,000 1,602,000 1,693,000
16,127,569 17,494,058 18,589,455 19,652,000 20,775,000
218,706 1,366,489 1,095,397 1,062,545 1,123, 000
1.4% 8.5% 6.9% 6.3% 5.7% 5.7%
Sates TAx Attoal and Forecasted by Month
WlfiA20 x u■I 2021-2Q24{orecasim
w 11����Id�il�lvi11111
S■]
CITY OF FEDERAL WAY 2023-24 BUDGET
Property Tax Levy. Even though the value of homes has increased historically in recent years as
much as 12% a year (citywide average), by state law, the city can only increase property tax revenue
by 1 % annually on existing property values. The City's property tax levy amount is regulated by state
statute (RCW 84.52). Pending updated valuation figures from King County Assessor's Office, property
tax revenue is forecasted at 1.50% increase per year.
Estimated escalator for forecast months
98.1% 101.5% 101.5%
2016
2017
2018
2019
2020
2021
2022
2022Est
2023forecast
2024forecast
Jan
932
(3,140)
2,035
277
1,998
(919)
1,170
$ 1,170
$ 1,000
$ 1,000
Feb
104,649
81,198
79,236
121,654
129,750
98,681
19,670
19,670
20,000
20,000
Mar
314,946
391,741
440,319
398,493
412,465
511,477
604,601
604,601
614,000
623,000
Apr
2,763,153
2,969,370
4,003,599
3,742,631
3,610,605
3,393,639
2,730,982
2,730,982
2,772,000
2,814,000
May
2,303,522
2,114,970
1,084,573
1,466,187
1,036,964
1,964,521
2,808,598
2,808,598
2,851,000
2,894,000
Jun
54,021
33,271
69,818
53,981
609,643
73,616
73,666
73,666
75,000
76,000
Jul
23,467
34,813
23,479
48,704
94,490
37,568
27,328
27,328
28,000
28,000
Aug
65,357
8,113
39,795
66,266
68,126
52,928
-
52,000
53,000
54,000
Sep
308,183
203,034
192,851
215,895
195,148
215,737
212,000
215,000
218,000
Oct
1,665,244
1,573,495
3,730,348
3,554,163
3,738,736
1,366,173
1,340,000
1,360,000
1,380,000
Nov
2,818,648
3,030,822
1,070,714
1,141,913
1,100,636
3,473,277
3,406,000
3,457,000
3,509,000
Dec
64,332
69,884
62,894
107,265
93,599
82,231
81,000
82,000
83,000
10,486,454
10,507,571
10,799,658
10,917,429
11,092,160
11,268,928
6,266,014
11,357,014
11,528,000
11,700,000
100.2%
102.8%
101.1%
101.6%
101.6%
88,086
170,986
172,000
Property Tax Revenue
$12,000,000
$11,500,000
11,000,000
no
Omni
$10,500,0()0
� -
�i
10,D00,000
.
kim
9,500,000
2016 2017
2018 2019 2020
2G21 2022 Est 2023
2024
forecast forecast
We
CITY OF FEDERAL WAY 2023-24 BUDGET
Utility Tax Revenue Forecast
Utility Taxes are a consolidation of several individual utility taxes: telephone, electric, natural gas, cable,
surface water, sewer, solid waste, and water utilities. Cities in Washington State are authorized to levy
a business and occupation tax (RCW 35.22.280(32)) on public utility businesses based on utilities within
the city or town, known as a utility tax. The rate of taxes for electric, phone, and natural gas utilities are
limited to 7.75% (RCW 35.21.870). Utility taxes received a 10% increase when the solid waste rate
changed from 7.75% to 17.75% in 2019. Rates for the 2023-24 are not being changed by any city
council action; the forecasted increase in revenue is attributable to a slight increase in projected volume
only, estimated at 3% per year.
103.796 100.0% 100.3%
2016 Act 2017 Act 2018 Act 2019 Act 2020 Act 2021 Act 2022 Act 2022 Est 2023 forecast 2024 forecast
Jan $ 1,140,664 $ 1,148,307 $ 1,085,651 $ 781,055 $ 996,379 $ 1,396,834 $1,692,180 1,692,180 1,692,000 1,697,000
Feb $ 1,072,515 $ 1,242,665 $ 1,147,253 $ 1,108,776 $ 1,122,530 $ 1,420,015 $1,642,378 1,642,378 1,642,000 1,647,000
Mar $ 1,164,983 $ 1,164,062 $ 1,110,736 $ 1,376,813 $ 1,096,086 $ 1,505,864 $1,755,285 1,755,285 1,755,000 1,760,000
Apr $ 938,297 $ 1,214,103 $ 1,217,269 $ 939,409 $ 963,935 $ 1,627,736 $1,413,785 1,413,785 1,414,000 1,418,000
May $ 811,091 $ 896,598 $ 889,403 $ 815,993 $ 797,507 $ 1,820,591 $1,389,291 1,389,291 1,389,000 1,393,000
Jun $ 909,581 $ 900,058 $ 833,485 $ 797,694 $ 2,398,996 $ 1,236,109 $1,213,829 1,213,829 1,214,000 1,218,000
Jul $ 403,486 $ 380,887 $ 778,972 $ 785,130 $ 1,083,596 $ 1,232,554 $ 1,278,000 1,278,000 1,282,000
Aug $ 1,286,236 $ 1,317,904 $ 782,716 $ 786,724 $ 870,098 $ 1,197,098 $ 1,242,000 1,242,000 1,246,000
Sep $ 1,045,923 $ 1,007,614 $ 979,316 $ 866,190 $ 1,428,106 $ 1,438,956 $ 1,492,000 1,492,000 1,496,000
Oct $ 820,144 $ 879,697 $ 845,425 $ 771,503 $ 1,090,121 $ 1,141,163 $ 1,184,000 1,184,000 1,188,000
Nov $ 994,070 $ 1,032,190 $ 930,920 $ 961,516 $ 1,195,279 $ 764,192 $ 793,000 793,000 795,000
Dec $ 1,330,127 $ 1,253,864 $ 1,128,298 $ 1,118,788 $ 1,635,543 $ 2,213,907 $ - 2,296,000 2,296,000 2,303,000
11,917,116 12,437,948 11,729,444 11,109,580 14,678,176 16,995,019 9,106,748 17,391,748 17,391,000 17,443,000
520,832 (708,504) (619,864) 3,568,596 2,316,843 (5,571,428) 2,713,572 (748) 52,000
4.4% -5.7% -5.3% 32.1% 15.8% -38.0% 18.5% 0.0% 0.3%
Utility Tax - Actual and Forecast
20,000,000
18,000'aG 0 -
16,00 0, 00 D -
14,0 0 0, �00
12,000,000 -
1 I�,O 0 D,OUO
-
�,000,000 -
4,000,000
2,0{}0,040
2016 Act 2017 Act 2018 Act 2019 Act 2020 Act 2021 Act 2022 Est 2023 2024 2025
forecast forecast forecast
30
CITY OF FEDERAL WAY 2023-24 BUDGET
Real Estate Excise Tax (REET)
REET is a function of both volume of real estate transactions and of property values. While the property
value trend has increased steadily and reliably, recent rate hikes in the mortgage and commercial
lending space have cast doubt on the pace of transactions in the future. In order to budget cautiously,
past remittances have been analyzed for large one-time transactions and forecasting has excluded the
assumption that large properties will continue. The volume of residential properties was left as a
baseline, so that should residential transactions slow, the elimination of commercial transactions from
the estimate will serve as the hedge. That produces a revenue forecast that should be attainable.
Should revenue fall short of forecast, capital spending could be managed at a slower pace, and should
revenue exceed forecast, budget amendments can be brought with equal and offsetting additional
revenue and expenditures, green -lighting additional REET-eligible projects. Out -months are forecasted
at a 1 % increase.
one-timeI a rge transactions
2.0%
1.0%
1.0%
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Jan
155,922
386,409
239,882
201,603
242,395
193,226
193,639
241,514
244,000
246,000
Feb
150,860
533,534
194,677
176,339
588,487
273,266
237,843
269,472
272,000
275,000
Mar
331,315
165,413
969,730
250,809
253,664
164,884
339,701
458,276
463,000
468,000
Apr
148,984
245,886
221,872
533,980
237,306
185,348
427,556
489,224
494,000
499,000
May
302,118
220,243
385,350
295,897
296,386
309,742
381,942
927,268
382,000
384,000
Jun
345,929
328,219
384,086
330,483
493,407
237,980
509,935
544,704
550,000
556,000
Jul
302,572
331,410
352,290
373,877
327,771
315,033
438,542
653,733
660,000
667,000
Aug
324,637
289,291
333,709
321,824
799,244
286,510
898,086
649,564
656,000
663,000
Sep
199,688
933,582
301,674
219,285
349,971
432,262
419,855
428,000
432,000
436,000
Oct
246,044
987,072
248,500
438,041
388,533
317,205
551,866
563,000
569,000
575,000
Nov
189,651
590,835
315,762
368,949
258,753
272,994
353,248
360,000
364,000
368,000
Dec
333,438
253,246
278,806
729,735
935,728
1,478,659
422,693
431,000
435,000
439,000
3,031,159
5,265,138
4,226,336
4,240,825
5,171,643
4,467,111
5,174,908
6,015,754
5,521,000
5,576,000
74%
-20%
0%
22%
-14%
16%
16%
-8%
1%
City of Federal way
REET
$2,0-A44
9e,U94.D00
S5AMMO
y .iioa a
5a,00uAur
52.DWAnrs
"
M? Af7 2W AN M9 icl 2020 Act 2021 +ti 2022 €u IW ra 2024 U ZM ER
31
CITY OF FEDERAL WAY 2023-24 BUDGET
Lodging Tax Revenue Forecast
In formulating the 2023-24 Budget, with six months of actual lodging tax remitted to the City of Federal
Way, the remaining six months were forecasted, using pre-COVID 2019 data, month by month, and
extrapolating the recovery the tourism industry has slowly experienced. March 2020 was the initial
month that overnight hotel stays dropped , "DIN UK
precipitously, with two months experiencing a 77% 7-1-
drop compared to prior year. Revenues in the first Pq, - -
half of 2022 are up to 90% of 2019 levels. -" MEMO- -
1-WLL
kd-k
JNLr JGJr� JGJLh M1w
amp Jml}l
N1- W N1-ur I-
L'. ^- 1-.' 1- 313A lnA
Figures in red, below, indicate the months of depressed economic activity, and the blue indicates
estimated recovery compared to pre-COVID (2019) levels:
Actual
I forecast
2016 2017 2018 2019 2020 2021 2022
1 2022 2023 2024
Jan
15,431
15,621
16,916
22,862
20,477
7,186
15,770
15,770
22,000
23,000
Feb
15,983
16,835
18,162
17,340
18,201
8,765
16,937
16,937
17,000
18,000
Mar
20,565
21,304
22,378
21,015
12,425
9,582
19,965
19,965
21,000
22,000
Apr
22,013
24,629
25,072
26,343
6,289
13,702
26,925
26,925
26,000
27,000
May
19,591
20,733
21,482
21,450
11,734
16,381
19,237
19,237
21,000
23,000
Jun
22,788
25,010
25,192
23,485
5,397
15,774
20,135
21,000
23,000
25,000
J u I
30,642
33,813
30,269
31,724
10,228
21,509
-
29,000
32,000
33,000
Aug
34,121
37,288
34,273
31,912
9,697
26,408
30,000
32,000
34,000
Sep
37,138
37,094
34,135
32,607
10,950
24,748
31,000
33,000
35,000
Oct
26,933
27,262
27,704
26,575
9,957
19,722
25,000
27,000
28,000
Nov
20,758
22,865
15,633
26,284
12,109
17,395
25,000
27,000
28,000
Dec
17,255
19,147
14,509
11,389
6,309
14,547
11,000
12,000
12,000
283,220
301,603
285,725
292,986
133,773
195,720
118,968
270,834
293,000
308,000
Prior year vs.
2019 vs
2022
2023
2024
2017
2018
2019
2020
2021
2022
forecast
forecast
forecast
Jan
101.2%
108.3%
135.1%
89.6%
31.4%
69.0%
98.0%
102.5%
Feb
105.3%
107.9%
95.5%
105.0%
50.5%
97.7%
98.0%
102.5%
Mar
103.6%
105.0%
93.9%
59.1%
45.6%
95.0%
98.0%
102.5%
Apr
111.9%
101.8%
105.1%
23.9%
52.0%
102.2%
99.0%
102.5%
May
105.8%
103.6%
99.9%
54.7%
76.4%
89.7%
99.0%
105.0%
Jun
109.7%
100.7%
93.2%
23.0%
67.2%
91.0%
99.0%
105.0%
Jul
110.4%
89.5%
104.8%
32.2%
67.8%
92.0%
100.0%
105.0%
Aug
109.3%
91.9%
93.1%
30.4%
82.8%
93.0%
100.0%
105.0%
Sep
99.9%
92.0%
95.5%
33.6%
75.9%
94.0%
100.0%
107.5%
Oct
101.2%
101.6%
95.9%
37.5%
74.2%
95.0%
101.0%
105.0%
Nov
110.2%
68.49/o
168.1%
46.1%
66.2%
96.0%
101.0%
105.0%
Dec
111.0%
75.8%
78.5%
55.4%
127.7%
97.0%
101.0%
105.0%
Dropoff due to
economic effects of
pandemic
Gradual actual and
projected recovery
32
CITY OF FEDERAL WAY 2023-24 BUDGET
Operating
Budgets by
Department
-L . tom: VEEP
MML .1
-ram
_-___11i1�� fTT7
M
q
IQN�AJ7�
33
CITY OF FEDERAL WAY 2023-24 BUDGET
OPERATING BUDGETS
MAYOR'S OFFICE
Mayor Jim Ferrell
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The Mayor's Office is the executive branch of City government
and includes the Mayor, who is elected by and represents the
people of Federal Way. The Mayor's Office provides
management direction and coordination of all City departments
and activities, in accordance with policies and direction of the
Mayor/City Council.
The Mayor's Office includes the following divisions;
Administration, Economic Development, Emergency
Management, Human Resources, and City Clerk.
GOALS/OBJECTIVES:
• Instill a customer service culture and can -do attitude in the City Government.
• Manage city resources in a responsible and responsive manner.
• Lead and coordinate the City's role in local, regional, and federal issues.
• Implement Economic Development initiatives.
• Facilitate Council decision making and policy development by providing unbiased, thorough, and professional
analysis.
• Carry out Mayor/City Council polices and directions effectively and efficiently.
• Lead and coordinate proactive and effective communications with citizens, the news media, and city employees.
• Communicate the City's vision, mission, and goals as well as day-to-day service information to constituents and
key stakeholders.
DEPARTMENT SUMMARY:
Code
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23Proposed -22Adi
1
Ado ted Adjusted Projected
$ Ch % Ch
General Fund Operating Expenditure Summary:
MO
Admin
662,442
865,309
715,168
886,546
886,546
1,184,417
1,202,107
297,872
33.6%
ED
Economic Development
398,512
382,498
284,756
286,423
286,423
334,768
346,326
48,344
16.9%
CK
City Clerk
595,379
804,823
560,410
619,413
619,413
848,565
857,669
229,151
37.0%
HR
Human Resources
483,770
590,414
536,319
594,623
594,623
698,224
714,037
103,601
17.4%
Subtotal Operating Exp.:
$ 2,140,102
$ 2,643,044
$ 2,096,654
$ 2,387,006
$ 2,387,006
$ 3,065,974
$ 3,120,141
$ 678,968
28.4%
Other Funds Operating Expenditure Summary:
101
Emergency Operations
188,786
204,237
208,679
208,679
208,679
228,270
228,270
19,590
9.4%
114
Proposition 1
656,222
675,573
651,076
651,076
651,076
751,076
751,076
100,000
15.4%
109
1 Hotel Motel LodOng Tax
28,785
34,393
155,000
155,000
155,000
65,000
65,000
(90,000)
-58.1%
Subtotal Operating Exp.:
$ 873,793
$ 914,203
$ 1,0149755
$ 1,014,755
$ 1,014,755
$ 1,044,346
$ 1,044,346
$ 29,590
2.9%
Total Expenrlitures:
$ 3,013,895
$ 3,557,247
$ 3,111,409
$ 3,4019761
$ 3,4019761
$ 4,110,320
$ 4,164,486
$ 708,559
20.8%
34
CITY OF FEDERAL WAY 2023-24 BUDGET
HIGHLIGHTS/CHANGES:
The Mayor's Office's proposed operating budget totals $4.11 M in 2023 and $4.16M in 2024. This is a 20.8% or $0.71 M
increase to the 2023 proposed budget from the 2022 adjusted budget. Major line items changes include:
• Salaries & Wages/Benefits — Increase of $0.60M is due to reclassifying a Human Resources Technician position
from Administration Assistant ll, adding City Clerk Public Records Officer position, and adding City Administrator
position.
• Services and Charges — Increase of $0.10M is due to increase in public defender contracted services.
EXPENDITURE SUMMARY:
Code
Item
2020
Actual
2021
Actual
1 2022
2023
Proposed
2024
Proposed
23 Proposed - 22 Ad'
Adopted I Adjusted Projected
$ Ch % Ch
Expenditure Summary:
1XX
Salaries & Wages
1,301,611
1,496,140
1,285,916
1,406,130
1,406,130
1,912,448
1,953,074
506,317
36.0%
2XX
Benefits
468,572
508,537
487,698
481,232
481,232
571,801
583,019
90,569
18.8%
3XX
Supplies
14,090
28,485
20,711
27,293
27,293
28,499
28,499
1,206
4.4%
4XX
Services and Charges
982,966
1,087,294
1,088,634
1,208,655
1,208,655
1,219,122
1,221,445
10,466
0.9%
5XX
intergovernmental
245,061
436,792
228,450
278,450
278,450
378,450
378,450
100,000
35.9%
6XX
1 Capital Outlays
1,596 ' -
-
n/a
Totally nditures:
$ 3,013,895 $ 3,557,247 $ 3,111,409
1 $ 3,401,761
$ 3,401,761
$ 4,110,320
$ 4,164,486
$ 708,559
20.8%
35
CITY OF FEDERAL WAY 2023-24 BUDGET
CITY COUNCIL
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The City Council is the seven -member legislative branch of city
government elected by and representing the people of Federal
Way. Council Members elect one of their members as the Council
President and the Mayor is elected by Federal Way residents.
The City Council is the policy determining body of the City and
exercises all legislative powers authorized under the State
Constitution which are not specifically denied by State law,
including adoption of ordinances, levying of taxes, and
appropriation of funds.
Budgeted expenses include statewide association dues, training
and education, travel reimbursement, supplies and other
operating expenses.
ii MEN=MidI!ihmm
MINI
■■1 ENN E1I
M�■ paten �r
GOALS/OBJECTIVES:
• Integrate the public safety strategy into all facets of City operations, building on a strong community -based approach.
• Create a multi -use urban city center that is pedestrian friendly, linked to neighborhoods and parks, and services as
the social and economic hub of the City.
• Establish Federal Way as an economic leader and job center in South King County by attracting a regional market for
high quality office and retail businesses.
• Maintain the capital facilities plan and provide financing options for transportation and surface water improvements,
parks, recreation, cultural arts and public facilities.
• Ensure a responsive service culture within the City organization where employees listen carefully, treat citizens and
each other respectfully and solve problems creatively, efficiently, and proactively.
• Position Federal Way as a regional leader by working collaboratively with other local and regional jurisdictions in order
to leverage resources.
• Increase sustainable revenue streams to fully fund the city budget, programs and infrastructure.
• Address public safety issues for residents and businesses.
• City government will develop a plan to realize our 2030 vision of becoming a tech hub.
• Develop a plan to address and prevent homelessness and related issues.
HIGHLIGHTS/CHANGES:
The City Council's proposed operating budget totals $0.49M in 2023 and $0.49M in 2024. This is a 6.8% or $0.04M
decrease to the 2023 proposed budget from the 2022 adjusted budget. Major line item changes include:
• Services and Charges: Decrease of $0.03M due to moving South King County Housing & Homelessness Partners
contracted services to Community Services budget.
EXPENDITURE SUMMARY:
Code
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23 Proposed - 22 Ad'
Ado ted
Adjusted
Projected
$ Ch
% Ch
Expenditure Summary:
1XX
Salaries & Wages
162,679
178,965
168,512
190,178
190,178
171,224
173,568
(18,953)
-10.0%
2XX
Benefits
87,040
88,469
120,527
91,748
91,748
105,065
105,956
13,318
14.5%
3XX
Supplies
6,756
4,911
6,537
6,537
6,537
6,537
6,537
-
0.0%
4XX
Services and Charges
214,844
232,155
235,118
235,118
235,118
205,218
205,218
(29,900)
-12.7%
Total 1 nditures :
$ 471,319
$ 504,501
$ 530,695
$ 523,580
$ 523,580
$ 488,045
$ 491,279
1 $ (35,535)
-6.8%
36
CITY OF FEDERAL WAY 2023-24 BUDGET
COMMUNITY DEVELOPMENT
Brian Davis, Director
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The mission of the Community Development Department is to
help maintain and improve the quality of life in Federal Way by
managing and fostering the safe, orderly, and beneficial
development and implementation of land use, building
construction, code enforcement, and community services
programs with the input from Federal Way's citizens and within
the policy framework provided by the City Council.
_ ice;•- .
-�--4ti tier �5
- fill
.rr
. r F - JN V ' --C' s
J J `.4.
The Community Development Department is organized into four '
divisions. ' The Administrative Division provides the overall _
management and support of the department, accepts passport
applications, and manages public records requests. The Permit Center provides discerning customer service throughout an
applicant's development process and supports the Planning Commission. 2 The Planning Division administers and enforces
land use, subdivision, and environmental codes and policies. In addition, the division performs long-range planning and
policy work, including comprehensive plan updates and amendments, code revisions, and annexations, as well as subarea
and/or special planning projects. The division also supports the Planning Commission. S The Building Division administers
and enforces building codes for construction, mechanical, electrical, plumbing, and signs, including plan review and
inspection. In addition, through code compliance, it enforces land use and building code provisions to abate illegal and/or
nuisance conditions throughout the city.' The Community Services Division assists our community with providing funding
and support for critical services for low- and moderate- income citizens, including administration and operation of the Home
Repair Program and Commercial Loan Program. Additionally, the division supports the Human Services Commission and
Diversity Commission.
GOALS/OBJECTIVES:
• Ensure that planning efforts and the regulatory environment provide for a balance between protection of the
environment and neighborhoods and accommodating new development to house a growing population and jobs
• Strengthen human service agencies and the social wellbeing and economic health of the community by
administering and monitoring grants as a CDBG direct -entitlement city
DEPARTMENT SUMMARY:
Code
Item
2020
Actual
2021
Actual
1 2022
2023
Proposed
2024
Proposed
23 Proposed - 22 Ad'
1
I Adopted I Adjuste I Projected
$ Ch % Ch
Expenditure Summary
71
Administration
494,125
497,651
503,605
549,162
549,162
620,593
632,222
71,431
13.0%
73
Planning
816,841
867,569
804,333
1,264,333
1,264,333
1,386,799
1,400,186
122,466
9.7%
74
Building
1,303,520
1,378,255
1,375,166
1,357,730
1,357,730
1,470,011
1,491,891
112,281
8.3%
83
Community Services
917,560
875,800
975,180
911,305
911,305
1,155,217
1,174,690
243,913
26.8%
Subtotal GF Operating Exp.:
1 $ 3,532,046
1 $ 3,619,275
1 $ 3,658,283
1 $ 4,082,529
1 $ 4,082,529
1 $ 4,632,619
1 $ 4,698,989
$ 550,090
13.5%
Non -General Fund Operating Expenditure Summary:
104
Sales/Use Tax-Affrd. &
250,000
250,000
125,000
125,000
(125,000)
-50.0%
114
Prop 1 Fund
101,472
96,052
109,114
109,114
109,114
120,465
124,925
11,352
10.4%
119
Comm Dev Block Grant
945,084
1,088,917
758,323
2,232,066
2,232,066
858,193
760,717
(1,373,873)
-61.6%
Subtotal Non-GF Oper. Exp.:
$1,046,556
$1,184,969
$ 867,437
$ 2,591,180
$ 2,591,180
$1,103,658
$1,010,643
$ (1,487,522)
-57.4%
Total Expenditures:
1 $ 4,578,603
1 $ 4,804,244
1 $ 4,525,720
1 $ 6,673,709
1 $ 6,673,709
1 $ 5,736,277
1 $ 59709,632
1 $ (937,431)
-14.0%
37
CITY OF FEDERAL WAY 2023-24 BUDGET
HIGHLIGHTS/CHANGES:
The Department of Community Development overall proposed operating budget totals $5.74M in 2023 and $5.71 M in 2024.
This is a 14.0% or $0.94M decrease to the 2023 proposed budget from the 2022 adjusted budget.
Major line item changes include:
Services and Charges - Decrease of $1.29M due to reduction in one-time Community Development Block Grant
projects and one-time COVID Child Care services.
EXPENDITURE SUMMARY:
Code
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23 Pro osed - 22 Ad'
I Adopted Adjusted Projected
$ Ch % Ch
Expenditure Summary:
1XX
Salaries and Wages
2,018,348
2,172,525
2,156,170
2,241,290
2,241,290
2,608,735
2,648,003
367,446
16.4%
2XX
Benefits
775,671
804,028
807,974
747,076
747,076
983,176
1,001,518
236,100
31.6%
3XX
Supplies
27,658
17,336
21,800
55,700
55,700
24,300
24,300
(31,400)
-56.4%
4XX
Services and Charges
1,419,810
1,714,827
1,225,350
3,315,218
3,315,218
2,025,016
1,940,761
(1,290,202)
-38.9%
5XX
Intergovernmental
97,420
92,993
87,350
87,350
87,350
1 92,050
92,050
4,700
5.4%
7XX
IDebt Service -Principal
159,000
-
159,000
159,000
159,000
-
-
(159,000)
-100.0%
8XX
IDebt Service -Interest
80,696
2,534
68,075
68,075
68,075
-
-
(68,075)
-100.0%
9XX
I Internal Service/Other
-
-
-
-
-
3,000
3,000
3,000
100.0%
Total Expenditures:
$ 4,578,603
$ 4,804,244
$ 4,525,720
$ 6,673,709
$ 6,673,709
$ 5,736,277
$ 5,709,632
$ (937,431)
-14.0%
38
CITY OF FEDERAL WAY 2023-24 BUDGET
FINANCE
Steve Groom, Finance Director
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The purpose of the Finance Department is to provide accurate financial
information from which educated judgments can be made on the
financial health of the City and decisions can be made by management
regarding City operations. The Finance Department's responsibilities
include accounts payable, accounts receivable, payroll, general
accounting, financial planning, cash and investment management, cash
receipting, business licensing, internal control monitoring, audit,
monthly, quarterly and annual financial reporting, budget preparation
and financial analysis.
GOAL/OBJECTIVES:
• Provide timely and accurate accounting and financial reporting to citizens, City Council, and city staff.
• Process Payroll semi-monthly accurately and on time.
• Ensure proper internal control in City operations to safeguard City resources.
• Pay Accounts Payable invoices accurately and timely.
• Develop a comprehensive Budget process
• Invest city cash to maximize spendable yield, assuring safety and liquidity.
HIGHLIGHTS/CHANGES:
The Finance proposed operating budget totals $1.33M in 2023 and $1.38M in 2024. This is a 23.6% or $0.25M increase to
the 2023 proposed budget from the 2022 adjusted budget.
EXPENDITURE SUMMARY:
Code
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23 Pro osed - 22 Ad'
Ado ted
Adjusted
I Pro'ected
$ Ch
% Ch
Expenditure Summary:
1XX
Salaries & Wages
688,419
722,134
891,080
722,899
722,899
921,907
958,173
199,008
27.5%
2XX
Benefits
245,234
262,876
308,023
265,949
265,949
320,878
334,659
54,929
20.7%
3XX
Supplies
4,366
5,440
5,620
5,620
5,620
5,620
5,620
-
0.0%
4XX
Services and Charges
8,420
62,511
16,796
16,796
16,796
16,796
16,796
0.0%
5XX
Intergovernmental
1 76,998
1 75,212
1 66,216
1 66,216
1 66,216
1 66,216
1 66,216
1
0.0%
Totalapenclitures:
$ 1,023,437
1 $ 1,128,174
1 $1,287,736
1 $1,077,480
1 $1,077,480
1 $1,331,417
1 $1,381,464
1 $ 253,937
23.6%
39
CITY OF FEDERAL WAY 2023-24 BUDGET
INFORMATION TECHNOLOGY
Thomas Fichtner, Information Technology Director
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
orAmuni ation hardaare
supportcomputeriN �databa e
�.
� I formotion
servers Technolo
The Information Technology Department provides city-wide
information technology needs and services. This includes net ol� � security
designing, purchasing, configuring, maintaining, supporting and �j
upgrading all data, voice, and video systems; manage contracted software
services, staff training; Geographical Information Systems (GIS); Oppli .'atlons de -sign
Government Access Channel (GAC) broadcasting; cable;
Internet/Intranet services; and mail and duplications. Communication Services include technical services, support,
maintenance and enhancements for city telephone systems, cellular phones, pagers, radio equipment, building wiring and
all other communications -related needs. GIS services include developing and maintaining the city's spatial database,
producing maps, analyzing data, generating reports, providing staff training, and developing user-friendly interfaces. AN,
GAC & Cable Rate Services include local government information broadcasting (live -broadcast City Council meetings and
taped video programs, as well as news, events, and general city information via billboard -type messages). In addition, the
division oversees cable TV franchise agreements and regulations, and is responsible for coordinating and responding to
citizens' complaints regarding cable services. Internet, Intranet, & Web Services include developing and maintaining the
city's web site, secure fire sharing, email, remote access, and intergovernmental services; providing training for staff;
monitoring system security; developing interfaces; and integrating internal systems with Internet services.
GOALS/OBJECTIVES:
• Streamline City operations through integration and systems automation.
■ Seek new technology and apply where it is cost effective.
■ Improve access to City services and information through online systems.
■ Provide a secure and reliable information technology infrastructure.
■ Provide up-to-date hardware and software tools for staff.
DEPARTMENT SUMMARY:
Code
Item
2020
Actual
2021
Actual
1 2022
2023
Proposed
2024
Proposed
1 23 Proposed - 22 Adj
I Adopted Adjusted I Projected
$ Ch % Ch
Expenditure Summary:
107
Special Contract
6,484
-
-
450,000
450,000
(450,000)
-100.0%
121
Technology Fee
44,488
48,913
14,300
284,300
284,300
(284,300)
-100.0%
502
Information Technology
2,356,522
2,398,821
2,707,608
3,542,008
3,542,008
3,646,229
3,393,541
104,221
2.9%
503
Mail & Duplication
66,332
95,245
185,007
185,007
185,007
154,901
161,901
(30,106)
-16.3%
Total nclitures:
$ 2,473,826
$ 2,542,978
$ 2,906,915
$4,461,315
$4,461,315
$3,801,130
$3,555,442
$ (660,185)
44.8%
40
CITY OF FEDERAL WAY 2023-24 BUDGET
HIGHLIGHTS/CHANGES:
The Information Technology proposed operating budget totals $3.80M in 2023 and $3.56M in 2024. This is a 14.8% or
$0.66M decrease to the 2023 proposed budget from the 2022 adjusted budget. Major line items changes include:
• Services and Charges - Increase of $0.05M due to increased cost of IT services, purchase of software, and
additional cost for services for Microsoft licenses.
• Capital Outlay - Decrease of $0.94M due to less equipment scheduled for replacement, and one-time project
completion.
EXPENDITURE SUMMARY:
Code
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23 Proposed - 22 Ad'
Adopted
I Adjusted
I Projected
$ Ch
% Ch
Expenditure Summary:
1XX
Salaries & Wages
721,776
813,294
813,886
883,886
883,886
1,016,399
1,049,234
132,513
15.0%
2XX
Benefits
257,292
280,920
282,565
282,565
282,565
378,442
390,919
95,877
33.9%
3XX
Supplies
33,191
59,983
66,056
66,056
66,056
66,056
66,056
-
0.0%
4XX
Services and Charges
937,913
1,064,783
1,212,055
1,436,355
1,436,355
1,490,555
1,535,555
54,200
3.8%
5XX
I Intergovernmental
149,749
165,794
156,778
156,778
156,778
1156,778
-
0.0%
6XX
Capital Outlay
373,906
158,203
375,575
1,635,675
1,635,675
�69#2,900356,900
(942,775)
-57.6%Total
n(litures:
$ 2,473,826
$ 2,542,978
$ 2,906,915
$4,461,315
$4,461,315
$3555,442
$ (660.185)
-14.8%
41
CITY OF FEDERAL WAY 2023-24 BUDGET
LAW DEPARTMENT
Ryan Call, City Attorney
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The City Attorney's office is divided into three divisions: Civil,
Criminal, and Risk Management. ' The Civil Division provides
legal services to the Mayor, City Council, Municipal Court, Boards
and Commissions, City management and staff. 2 The Criminal
Division assists in providing prosecution, pre -sentencing and
sentencing, and providing assistance and safety and the criminal
justice system information to domestic violence victims. 3 The
evaluates the risk throughout the City.
Risk Management Division administers insurance and
GOALS/OBJECTIVES:
• Provide quality and cost-effective legal advice and services to the Mayor, City Council, Municipal Court, Boards and
Commissions and City Departments;
• Defend or prosecute all litigation involving the City;
• Advise and train City staff to minimize potential litigation.
DEPARTMENT SUMMARY:
Code
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
I Proposed
23 Pro osed - 22 Adj
Adopted
Adjusted
Projected
$ Ch
% Ch
General Fund Operating Expenditure Summar •:
112
Traffic Safety
-
2,269
-
-
-
-
-
-
n/a
51
Civil Legal Svcs
825,669
679,317
974,797
921,433
921,433
980,618
995,113
59,185
6.4%
52
Criminal Prosecution
709,570
768,882
776,142
916,028
916,028
995,576
1,013,080
79,548
8.7%
Subtotal Operating ExA:
$ 1,535,239
$1,450,468
$1,750,938
$1,837,460
$1,837,460
$1,976,194
$ 2,008,193
$ 138,734
7.6%
Non -General Fund Operating Ex enditure Summa .
114
Proposition 1
237,322
247,963
278,996
278,996
279,996
308,209
318,848
29,213
10.5%
501
Risk Management
2,348,831
1,788,325
1,486,275
1,714,379
1,714,379
2,657,763
2,329,131
943,384
55.0%
Subtotal Non-GF Oper. Exp.:
$ 2,586,153
$ 2,036,288
$1,765,271
$1,993,375
$1,993,375
$ 2,965,972
$ 2,647,979
$ 972,597
48.8%
Total nditures:
$ 4,121,392
$ 3,486,755
$ 3,516,210
$ 3,830,836
$ 3,830,836
$ 4,942,166
$ 4,656,173
$ 1,111,331
29.0%
HIGHLIGHTS/CHANGES:
The Law Department's proposed operating budget totals $4.94M in 2023 and $4.66M in 2024. This is a 29.0% or $1.1 M
increase to the 2023 proposed budget from the 2022 adjusted budget. Major line item changes include:
• Services and Charges - Increase of $0.94M due to increase in insurance premiums and one-time legal
settlements.
Expenditure Summary:
Code
Item
2020
Actual
2021
Actual
1 2022
2023
Proposed
2024
Proposed
23 Pro osed - 22 Ad'
Adopted
I Adjusted
Projected
$ Ch
% Ch
Expenditure Summary:
1XX
Salaries & Wages
1,138,860
1,185,296
1,214,230
1,338,069
1,338,069
1,400,239
1,430,949
62,170
4.6%
2XX
Benefits
382,048
389,472
461,407
424,090
424,090
527,567
538,945
103,477
24.4%
3XX
Supplies
2,536
6,584
5,525
5,525
5,525
6,225
6,225
700
12.7%
4XX
Services and Charges
2,447,948
1,905,403
1,834,547
2,062,651
2,062,651
3,007,635
2,679,553
944,984
45.8%
5XX
Intergovernmental
-
-
500
500
500
500
500
-
0.0%
OXX
I Other Financing Use
150,000
-
-
n/a
Total nditures:
$ 4,121,392
$ 3,486,755
$ 3,516,210
1 $ 3,830,836
1 $ 3,830,836
$ 4,942,166
1 $ 4,656,173
1 $ 1,111,331
29.0%
42
CITY OF FEDERAL WAY 2023-24 BUDGET
MUNICIPAL COURT
David Larson, Presiding Judge
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The Municipal Court of the City of Federal Way is organized
under RCW 3.50 with jurisdiction over violations of the Federal
Way Revised Code and Revised Code of Washington provisions
adopted by the City that occur within the boundaries of the City
of Federal Way.
GOALS/OBJECTIVES:
• Provide an accessible forum for individuals to resolve issues.
• Provide a forum to settle disputes in a fair, efficient, courteous
and dignified way in accordance with due process of law.
DEPARTMENT SUMMARY:
Code
Item
2020
Actual
2021
Actual
1 2022 2023
I Adopted Adjusted I Projec Proposed
2024
Proposed
23 Pro osed - 22 Ad•
$ Ch
% Ch
General Fund Operating Expenditure Summary:
022 1 General Operations
�4 ------
021 (Probation
1,417,982
362,811
1,494,116
376,998
1,433,566
385,340
1,775,540
, 478,385
1,775,540 1,584,120 1,614,396
478,385 423,794 1 434,327
$ (191,420)
(54,592)
10.8%
1 --
-11.4%
Subtotal Operating Exp:1 $ 1,780,793
$ 1,871,113
$ 1,818,905 $ 2,253,925
$ 2,253,925 $ 2,007,913 1 $ 2,048,723
$ (246,011)' -10.9%
Non -General Fund Operating Expenditure Summary:
112
Traffic Safety
-
7,577
61,550
61,550
61,550
61,550
61,550
0.0%
114
Proposition 1
175,101
149,723
194,159 194,159
194,159
198,857
202,103
4,698
2.4%
Prop 1 and Traffic Safety Fxp:
$ 175,101
$ 157,300
$ 255,709 $ 255,709
$ 255,709
$ 260,407
$ 263,653
$ 4,698
1.8%
Total F*nclitures: l $ 1,955,894
$ 2,028,413
$ 2,074,615 • $ 2,5099634
$ 2,509,634
$ 2,2689321
1 $ 293129376
$ (241,313) � -9.6%
43
CITY OF FEDERAL WAY 2023-24 BUDGET
HIGHLIGHTS/CHANGES:
The Municipal Court's proposed operating budget totals $2.27M in 2023 and $2.31 M in 2024. This is 9.6% or $0.24M
decrease to the 2023 proposed budget from the 2022 adjusted budget. Major line item changes include:
• Services and Charges - Decrease of $267,928 due to elimination of one-time Administrative Office of Courts grant
services.
EXPENDITURE SUMMARY:
Code
2020
Item Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23 Pro osed - 22 Adj
Ado ted
Adjusted
Projected
$ Ch
% Ch
Municipal Court General Fund Operations Expenditure Summary:
1XX
Salaries & Wages
896,880
976,835
963,701
1,011,875
1,011,875
1,055,307
1,077,246
$ 43,432
4.3%
2XX
Benefits
358,432
373,807
343,216
344,089
344,089
374,265
382,602
30,176
8.8%
3XX
Supplies
19,570
7,903
10,050
10,050
10,050
12,950
12,950
2,900
28.9%
4XX
Services and Charges
87,674
135,570
116,598
409,526
409,526
141,598
141,598
(267,928)
-65.4%
6XX
I Capital Outlay
55,427
1 -
-
-
-
n/a
Subtotal Operating Epp:
$ 1,417,982
1 $ 1,494,116
$ 1,433,566
$ 1,775,540
$ 1,775,540
$ 1,584,120
$ 1,614,396
1 $ (191,420)
-10.8%
Probation Office General Fund Expenditure Summary:
1XX
Salaries & Wages
196,188
216,844
214,344
275,694
275,694
244,628
252,261
(31,066)
-11.3%
2XX
Benefits
87,221
90,109
81,451
113,147
113,147
92,921
95,821
(20,226)
-17.9%
3XX
Supplies
-
995
6,900
6,900
6,900
3,000
3,000
(3,900)
-56.5%
4XX
Services and Charges
79,402
69,050
82,645
82,645
82,645
83,245
83,245
600
0.7%
Subtotal Probation Exp:
I $ 362,811
$ 376,998
$ 385,340
$ 478,385
$ 478,385
$ 423,794
$ 434,327
$ (54,592)
-11.4%
Prop 1 Fund Expenditure Summary:
1XX
I Salaries & Wages
131,500
115,295
140,695
140,695
140,695
144,099
146,451
$ 3,404
2.4%
2XX
JBenefits
43,601
34,427
53,464
53,464
53,464
54,758
55,652
1,294
2.4%
Subtotal Prop 1 :
$ 175,101
$ 149,723
$ 194,159
$ 194,159
$ 194,159
$ 198,857
$ 202,103
$ 4,698
2.4%
Traffic Safety Fund Expenditure Summary:
4XX
I Services and Charges
-
7,577
61,550
61,550
61,550
61,550
61,550
0.0%
Subtotal Traffic Safety lip:
$ -
$ 7,577
$ 61,550
$ 61,550
$ 61,550
$ 61,550
$ 61,550
$
0.0%
Total FkWnc6tures:
$ 1,955,894
$ 2,028,413
$ 2,074,615
$ 2,509,634
$ 2,509,634
$ 2,268,321
$ 2,312,376
1 $ (241,313)
-9.6%
44
CITY OF FEDERAL WAY 2023-24 BUDGET
PARKS, RECREATION AND CULTURAL SERVICES
John Hutton, Parks Director
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The Parks, Recreation, and Cultural Services Department
consists of five divisions: Parks Administration, Parks General
Recreation, Federal Way Community Center, Dumas Bay Centre,
and Parks Maintenance. The Department's mission is to enrich
community life through the provision and stewardship of parks,
leisure and cultural experiences.
GOALS/OBJECTIVES:
• Provide cost-efficient quality recreation and cultural programs to meet the needs of all ages, interests and abilities.
• Provide a high quality of maintenance for all park areas and facilities.
• Provide a balance of services and programs in parks and facilities for Federal Way's diverse population
• Plan and implement ongoing acquisition and development of parks to meet the goals and objectives outlined in the Park
Plan updated in 2019.
• Promote ongoing public involvement through commissions, volunteers, public outreach and surveys.
• Manage and maintain all City buildings and structures.
• Promote a culture of teamwork and public service in all parks, recreation, and cultural activities.
DEPARTMENT SUMMARY:
Code
Item
2020
Actual
1 2021
Actual
1 2022
2023
Proposed
2024
Proposed
23 Proposed - 22 Ad'
I Adopted I Adjusted I Projected
$ Chg % Chg
General Fund Operating Expenditure Summary:
310
Administration
395,938
406,609
281,647
841,643
841,643
473,229
481,652
(368,414)
-43.8%
33x
Maintenance
2,497,587
2,944,293
2,391,575
2,474,401
2,474,401
2,832,440
2,871,652
358,039
14.5%
35x
I General Recreation
914,785
1,210,962
1,520,473
1,404,104
1,404,104
1,643,507
1,647,597
239,403
17.1%
Subtotal GFOperating Exp.:
$ 3,808,310
S 4,561,865
$ 4,193,695
S 4,720,147
S 4,720,147
$ 4,949,176
$ 5,000,901
$ 229,028
4.9%
Non -General Fund Operating Expenditure Summary:
III I FW Community Center
1,367,316
2,128,650
2,756,334
2,756,334
2,756,334
2,279,893
2,306,857
(476,441)
-17.3%
Subtotal New Comm Center
$ 1,367,316
$ 2,128,650
$ 2,756,334
$ 2,756,334
$ 2,756,334
$ 2,279,893
$ 2,306,857
$ (476,441)
-17.3%
114 Prop 1 Fund
111,084
110,719
104,802
104,802
104,802
118,551
121,097
13,749
13.1%
Subtotal Prop 1Fund
$ 111,084
$ 110,719
$ 104,802
S 104,802
$ 104,802
$ 118,551
$ 121,097
$ 13,749
13.1%
115 PAEC Op erating Fund
1,452,916
1,653,440
2,299,757
2,631,641
2,631,641
2,483,359
2,483,359
(148,282)
-5.6%
Subtotal 115 PAEC Oper. Fund
$ 1,452,916
$ 1,653,440
$ 2,299,757
$ 2,631,641
$ 2,631,641
$ 2,483,359
$ 2,483,359
$ (148,282)
-5.6%
189 Parks Reserve
-
15,793
15,793
15,793
-
(15,793)
100.0%
btotal 189 Parks RR Oper. Fund
$
$ -
$ 15,793
$ 15,793
$ 15,793
$ -
$ -
$ (15,793)
-100.0%
120 Paths & Trails
200,000
-
30,000
30,000
100,000
600,000
70,000
233.3%
Subtotal 120 P&T Oper. Fund
$
$ 200,000
$ -
$ 30,000
$ 30,000
$ 100,000
$ 600,000
$ 70,000
233.3%
303 Parks CIP
217,428
68,735
375,000
595,000
595,000
367,000
767,000
(228,000)
-38.3%
Subtotal Parks CIP Fund
$ 217,428
$ 68,735
$ 375,000
$ 595,000
$ 595,000
$ 367,000
$ 767,000
$ (228,000)
-38.3%
402
Dumas Bay Ccntrc
602,682
632,483
930,210
1,000,110
1,000,110
764,097
773,784
(236,014)
-23.6%
505
Bldg & Furnishings
555,315
1,185,961
594,127
594,127
594,127
789,772
664,772
195,645
32.9%
Enterprise Fund Oper
$ 1,157,997
$ 1,818,444
$ 1,524,337
$ 1,594,237
$ 1,594,237
$ 1,553,869
$ 1,438,556
$ (40,369)
2.5%
Total Expenditures:Expenditures:1
$ 8,115,052
1 $ 10,541,853
$11,269,719
$12,447,955
$12,447,955
$11,851,848
$12,717,771
$ (596,108)
-4.8%
45
CITY OF FEDERAL WAY 2023-24 BUDGET
HIGHLIGHTS/CHANGES:
The Parks Department's proposed operating budget totals $11.85M and $12.72M in 2023 and 2024 respectively. This is a
decrease of $0.60M or 4.8% to the 2023 proposed budget from the 2022 adjusted operating budget. Major line item
changes include:
• Salaries & Wages/Benefits - Net Increase of $0.25M due to adding 3 Parks Maintenance Workers.
• Services and Charges - Decrease of $0.18M due to decreasing services due to elimination one-time grant for
Performing Arts & Event Center services.
• Capital Outlays - Decrease of $0.73M due to less Parks CIP projects, and 2022 capital projects that are not
yet carried forward into 2023.
EXPENDITURE SUMMARY:
Code
Item
2020
Actual
2021
Actual
1 2022
2023
Proposed
2024
Proposed
23 Pro osed - 22 Adj
I Adopted I Adjusted Projected
$ Ch % Ch
Expenditure Summary:
1XX
Salaries and Wages
3,300,083
4,025,168
4,340,413
4,524,645
4,524,645
4,844,317
4,911,266
319,673
7.1%
2XX
Benefits
1,238,723
1,371,143
1,095,039
1,347,259
1,347,259
1,280,354
1,304,329
(66,905)
-5.0%
3XX
Supplies
476,332
567,675
745,662
745,662
745,662
745,662
745,662
-
0.0%
4XX
Services and Charges
2,711,478
3,537,347
4,001,554
4,493,338
4,493,338
4,318,256
4,193,256
(175,082)
-3.9%
5XX
Intergovernmental
32,732
92,172
50,105
50,105
50,105
50,105
50,105
-
0.0%
6XX
I Capital Outlays
1 215,731
1 41,670
1 875,000
1 1,095,000
1,095,000
1 367,000
767,000
(728,000)
-66.5%
9XX
Internal Services/Othei
139,972
144,265
146,153
146,153
146,153
146,153
146,153
-
0.0%
OXX
I Other Financing Use
-
762,414
15,793
45,793
45,793
100,000
600,000
54,207
118.4%
Total ntlitures:
$ 8,115,052
$ 10,541,853
$11,269,719
1 $12,447,955
$129447,955
$ 119851,848
$ 12,717,771
$ (596,108)
-4.8%
46
CITY OF FEDERAL WAY 2023-24 BUDGET
POLICE
Andy J. Hwang, Police Chief
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The Police Department provides city-wide community -based law 16ii
enforcement services. The department strives to use innovative
methods and advanced technology to enhance its efficiency and
effectiveness, to provide safety to the Community. The Police
Department works cooperatively with local law enforcement
agencies such as the Valley Special Weapons and Tactics Team
(SWAT); Valley Independent Investigative Team (VIIT) and police
dispatch services through Valley Communications. Through teamwork and dedication, the agency remains committed to
its new mission of providing the highest quality law enforcement, community education, and support services possible.
GOALS/OBJECTIVES:
The Federal Way Police Department strives to:
- Provide a safe environment through community involvement, innovation, and education.
- Be familiar with and practice current and modern law enforcement techniques and tactics.
- Maintain a dedicated, well trained, equipped force function with integrity, accountability, and team work.
DEPARTMENT SUMMARY:
Code
Item
2020
Actual
2021
Actual
1 2022
2023
Proposed
2024
Proposed
23 Proposed - 22 Ad'
I Adopted I Adjusted Projected
$ Ch % Ch
Expenditure Summary:
91
Office of the Chief
375,477
383,038
402,109
146,307
146,307
438,140
438,140
291,833
199.5%
92-97
Support Services
6,996,780
6,776,859
7,939,370
8,070,180
8,070,180
8,657,175
9,078,732
586,995
7.3%
11X
IFicid Operations
11,333,850
12,494,210
12,150,923
12,432,516
12,432,516
14,977,766
15,735,709
2,545,250
20.5%
Subtotal Fx W/O contract
$ 18,706,106
$19,654,107
$ 20,492,402
$ 20,649,002
$ 20,649,002
$ 24,073,081
$ 25,252,581
$ 3,424,078
16.6%
98
Jail Services
2,712,884
-
-
-
-
-
-
-
n/a
98
Valley Communications
1 2,719,126
1 2,587,211
1 2,748,692
1 2,748,692
2,748,692
1 3,079,131
1 3,300,000
330,439
12.0%
Subtotal Fxp Contract
1 $ 5,432,009
1 $ 2,587,211
1 $ 2,748,692
$ 2,748,692
$ 2,748,692
$ 3,079,131
1 $ 3,300,000
$ 330,439
12.0%
Non -General Fund Expenditure Summary:
112
Traffic Safety
1,938,474
2,604,496
2,019,227
2,765,031
2,765,031
2,774,920
3,094,030
9,888
0.4%
114
jProp 1 Fund
2,458,749
2,543,491
2,832,128
2,832,128
2,832,128
2,974,715
3,085,654
142,586
5.0%
122
1 Jail Fund
-
2,223,602
3,319,584
1,919,584
1,819,584
2,500,000
2,700,000
680,416
37.4%
$ 4,397,222
$ 7,371,589
$ 8,170,940
$ 7,416,744
$ 7,416,744
$ 8,249,635
$ 8,879,684
$ 832,891
11.2%
Total ixpenckures :
1 $ 28,535,339
1 $ 29,612,907
1 $ 31,412,033
$ 30,814,438
$ 30,814,438
$ 35,401,846
1 $ 37,432,265
$ 4,587,408
14.9%
47
CITY OF FEDERAL WAY 2023-24 BUDGET
HIGHLIGHTS/CHANGES:
The Federal Way Police Department's primary objective will be to actively address crimes that impact the quality of life for
our residents. The Police Department builds relationships with both private and public sector partners and the community
itself, to bring every possible resource to bear. The Police Department will maintain its focus of continuing to identify quality
individuals to fill anticipated vacancies. The agency will focus on its formal training programs in an effort to keep up with
ever changing trends and legal issues. The department will also focus on continued improvement of service delivery, as it
conducts a continual review of policies and procedures, as required by CALEA for National Accreditation.
The Police Department's proposed operating budget is $35AM in 2023 and $37AM in 2024. This is a 14.9% or $4.6M
increase to the 2023 proposed budget from the 2022 adjusted budget. The table below includes General Fund, Traffic
Safety Fund, and Proposition Fund. The Major line item changes include:
• Salaries & Wages/Benefits — Net Increase of $3.56M due to adding 13 new Police Officer FTE's, 2 new
Records Specialists, and 1 Public Records Officer.
• Intergovernmental Services — Increase of $O.98M due to increased Valley Communication Services, and
increase jail services.
EXPENDITURE SUMMARY:
Item
2020
Actual
2021
2022
2023
2024
23 Proposed - 22 Ad'
$ Ch % ChCode
Expenditure Summary:
1XX
Salaries & Wages
16,061,832
17,133,287
18,057,400
18,497,356
18,497,356
20,897,629
21,883,895
2,400,273
13.0%
2XX
Benefits
5,307,021
5,459,848
6,151,406
5,913,844
5,913,844
7,073,788
7,448,569
1,159,944
19.6%
3XX
Supplies
506,599
1,280,264
336,655
836,259
836,259
941,455
941,455
105,196
12.6%
4XX
Services and Charges
1,101,509
1,274,033
1,180,724
1,226,724
1,226,724
1,323,724
1,323,724
97,000
7.9%
5XX
Intergovernmental
3,997,761
4,314,941
5,668,992
4,168,992
4,168,992
5,148,393
5,556,436
979,401
23.5%
6XX
Capital Outlay
86,353
133,678
-
154,406
154,406
-
-
(154,406)
-100.0%
9XX
Internal Services/Other
16,857
16,857
16,857
16,857
16,857
16,857
16,857
0.0%
OXX
Other Financing Use
1,457,406
-
-
-
-
261,329
n/a
Total E nditures :
$ 28,535,339
$ 29,612,907
$ 31,412,033
$ 30,814,438
$ 30,814,438
$ 35,401,846
$ 37,432,265
$ 4,587,408
14.9%
48
CITY OF FEDERAL WAY 2023-24 BUDGET
PUBLIC WORKS DEPARTMENT
EJ WALSH, P.E., PUBLIC WORKS DIRECTOR
DEPARTMENT OVERVIEW
PURPOSE/DESCRIPTION:
The Public Works Department is organized into six divisions. 1
The Administrative Division provides the overall management of , Awl
the department. 2 The Development Services Division provides
the engineering plan reviews, permitting, and inspections of
private development and Right of Way projects. 3 The Traffic -
Division provides transportation planning, traffic operations, and
neighborhood traffic services. 4 The Engineering Division
provides city wide engineering support and the feasibility analysis, engineering design, bidding and construction oversight
for all capital projects. 5 The Environmental Services Division manages the Solid Waste/Recycling Utility and Surface Water
Utility enforcement, water quality, and education functions. 6 The Operations Division manages street and storm water
operations and maintenance and the Fleet Maintenance Division which provides oversight on maintenance of all City non -
police vehicles and equipment.
DEPARTMENT SUMMARY:
Code
Item
2020
Actual
2021
Actual
2022
2023
Proposed
2024
Proposed
23 Pro osed - 22 Ad'
Ado ted Adjusted Pro'ected
$ Chg Ch
Street Fund Operating Expenditure Summary:
210
Administration
252,976
251,668
284,931
284,931
284,931
315,218
317,110
30,287
10.6%
220
Development Svcs
381,023
327,354
374,048
374,048
374,048
360,636
371,667
(13,412)
-3.6%
230A260
Traffic Services
1,448,294
1,403,518
1,400,364
1,508,213
1,508,213
1,594,424
1,604,039
86,211
5.7%
240
Street Services
500,389
565,021
1,018,600
1,018,600
1,018,600
1,133,276
1,164,183
114,676
11.3%
240 Operation
Street Services - Operation
1,478,435
1,651,170
1,490,046
1,653,002
1,653,002
1,769,635
1,809,896
116,633
7.1%
Subtotal STOperating Fxp.:
$ 4,061,117
$ 4,198,731
$ 4,567,989
$ 4,838,794
$ 4,838,794
$ 5,173,188
$ 5,266,894
$ 334,394
6.9 %
Non-StreetFund Operating Expenditure Summary:
102
Arterial Street Overlay
1,910,468
2,332,950
3,051,111
2,077,917
2,077,917
1,563,000
1,563,000
(514,917)
-24.8%
106
Solid Waste & Recycling
580,419
562,166
545,844
681,624
681,624
641,647
654,343
(39,976)
-5.9%
112
Traffic Safety Fund
583,233
729,829
694,741
703,141
703,141
950,265
966,839
247,124
35.1%
116
Solid Waste 10%Utility Tax
-
994,212
-
3,418,862
3,418,862
2,200,000
2,300,000
(1,218,862)
-35.7%
306
Transportation CIP
6,746,549
7,131,617
7,773,566
26,274,109
26,274,109
19,822,000
38,455,000
(6,452,109)
-24.6%
304
Surface Wtr Mgmt CIP
467,283
330,676
1,767,000
4,330,080
4,330,080
3,359,608
1,805,273
(970,472)
-22.4%
401
Surface Wtr Mgmt
3,193,455
5,454,458
4,652,652
4,927,652
4,927,652
4,480,333
6,089,726
(447,319)
-9.1%
401 Operation
Surface Wtr Mgmt - Operation
1,213,663
1,283,513
1,463,377
1,463,377
1,463,377
1,970,275
2,014,574
506,898
34.6%
504
Fleet & Equipment
2,668,595
3,453,012
1,919,901
3,911,401
3,911,401
3,256,067
1,711,734
(655,334)
-16.8%
Subtotal Non-ST Oper. Fxp.:
$17,363,665
$ 22,272,433
S 21,868,192
$ 47,788,163
$ 47,788,163
S 38,243,196
$ 55,560,488
$ (9,544,967)
-20.0%
Total Expenditures:
$ 21,424,781
$ 26,471,164
$ 26,436,182
$ 52,626,958
$ 52,626,958
$ 43,416,384
$ 60,827,382
$ (9,210,573)
-17.5%
49
CITY OF FEDERAL WAY 2023-24 BUDGET
HIGHLIGHTS/CHANGES:
The Public Works proposed operating budget totals $43.42M in 2023 and $60.83M in 2024. This is a 17.5% or $9.21 M
decrease to the 2023 proposed budget from the 2022 adjusted budget.
Major line item changes include:
• Services and Charges — Net decrease of $2.60M due to decreased 304 SWM capital expenditures and 306
Transportation capital expenditures categorized under services and charges instead of capital outlay.
• Capital Outlays — Net decrease of $7.08M due to capital projects in 2022 for SWM, transportation, and overlay projects
that are not yet carried forward into 2023.
EXPENDITURE SUMMARY:
Code
Item
2020
ctual
2021
Actual
2022
2023
Proposed
2024
Pro osed
23 Poposed - 22 Adj
Ado tea
I Adjusted
Projected
$ Chia
% Ch
Expenditure Summary:
1XX
Salaries and Wages
4,727,496
5,176,676
6,574,878
6,745,794
6,745,794
6,689,709
6,816,423
(56,085)
-0.8%
2XX
Benefits
1,746,596
1,811,492
1,810,553
1,813,301
1,813,301
2,213,068
2,283,676
399,768
22.0%
3XX
Supplies
851,581
1,152,755
800,758
972,134
972,134
979,618
976,269
7,484
0.8%
4XX
Services and Charges
4,507,351
4,960,741
3,068,584
1 4,852,744
4,852,744
2,254,673
2,254,673
(2,598,071)
-53.5%
5XX
Intergovernmental
1,357,404
1,268,990
1,021,592
1,011,736
1,011,736
1,075,836
1,075,836
64,100
6.3%
6XX
Capital Outlay
6,716,095
7,956,603
10,312,715
33,878,080
33,878,080
26,796,066
43,177,173
(7,082,014)
-20.9%
8XX
Debt Service -Interest
-
-
1,922
1,922
1,922
1,922
1,922
-
0.0%
9XX
InternalServices/Other
896,772
1 1,098,313
835,180
843,580
843,580
835,180
835,180
(8,400)
-1.0%
OXX
Other Financing Uses
621,487
3,045,594
2,010,000
1 2,507,667
2,507,667
2,570,312
3,406,230
62,645
1 2.5%
Total Expenditures:
$ 21,424,781
$ 26,471,164
$ 26,436,182
$ 52,626,958
$ 52,626,958
$ 43,416,384
$ 60,827,382
1 $ (9,210,573)
-17.5%
50
CITY OF FEDERAL WAY 2023-24 BUDGET
Debt
e
gem III
Yri�is
y
lei
10 1
ALI
— 47C
4
CITY OF FEDERAL WAY 2023-24 BUDGET
LONG-TERM DEBT
Legal Debt Limit. Under RCW 39.36.020(2), the public may vote to approve bond issues for general government in an
amount not to exceed 2.5% of the value of all taxable property within the City. Within the 2.5% limit, the City Council may
approve bond issues not to exceed 1.5% of the City's assessed valuation. This can be used for any municipal purpose.
The voter -approved capacity is generally referred to as unlimited tax general obligation debt, which requires 60% voter
approval and the election must have a voter turnout of at least 40% of those who voted in the last State general election.
With this vote, the voters approve additional property tax levied above and beyond the constitutional and statutory caps on
property tax.
In addition to general purpose debt capacity, RCW 39.36.030(4) also allows voters to approve park facilities and utility bond
issues, each limited to 2.5% of the City's assessed valuation. Therefore, the City can issue up to a total of 7.5% of the
City's assessed valuation in bonds for $1.04 billion. In the table below debt capacity is reflected for the City of Federal Way
at December 31, 2021.
COMPUTATION OF LMITATION OF INDEBTEDNESS
December 31, 2021
General Debt Capacity
Excess Levy
Excess Levy
(Limited)
(Unlimited)
Open Space
Utility
Total Debt
DESCRIPTION
Councilmanic
Excess Levy
and Park
Purposes
Capacity
Statutory debt limit:
I
I
I
I
I
I
(2021 TAV=$14,210,298,330 (A)
I
I
11.50% A V 100%
$ 213,154,475 ' $ (213,154,475)I
$
$
I $
--------t-----------
12.50% AV a100%
---------------------
- 355,257,458
--------------------------------------
1 355,257,458
t--- ---------------
355,257,458
-------------------t---------------------
1 1,065,772,375
Add:
- ------t
ICash reserved for
--------------------------------------------------
Idebt redemption (B)
t----------
---------------------t------------------
3,192,943 , -1
----------t------------------
I
-
-------------------t---------------------
-
-------------------t---------------------
I
I 3,192,943
Less:
!Bonds and COPS outstanding
(29,686,656), -
I -
-
I (29,686,656)
Remaining Debt Capacity $ 186,660,762 $ 142,102,983 $ 355,257,458 $ 355,257,458 $ 1,039,278,661
Existing Debt Funding. In the table below is the City's general obligation debts outstanding at December 31, 2021. Real
Estate Excise Tax and Utility Tax are the two primary sources to meet the City's general obligation debt services.
The City has the ability to service its debt, and the City does not issue new debt until an additional source of revenue is
identified.
SUMMARY OF OUTSTANDING LOANS/BONDS
Date of Final Interest
Amount
Bond Rating
12/31/21
Principal Payment
Description
I Purpose
Issue Maturity , Rates (%)
I Issued
I Ca, issuance
Balance
2023
I 2024
R.O. Bonds
(Community Center 2013
12/01/13 12/1/2033 2.67
12,415,000
1 Aa3
8,300,000
600,000
1 620,000
-----------
----------------------
----------=------------'-----------t-------------t-------------
-------------
--------------t------------
G.O. Bonds
SCORE
12/11/19 12/1/2038 2.75-5.00
10,945,000
Aa2
10,175,000
430,000
1 450,000
---i----------------------
G.O. Bonds
PAEC
----r-------------T-------------
12/11/19 12/1/2029 - 1.95-2.65
1 4,840,000
1 Aa2
--
3,960,000
---T------------
465,000
1 475,000
------
HUD Loan
------------
Section 108 HUD Loan
----------------------•---------
03/28/19 - 8/1/2035 - 2.54-3.49 11
2,712,000
1 na
2,235,000
159,000
------------
1 159,000
1 $ 30,912,000
1
$ 24,670,000
$ 1,654,000
$ L704,000
52
CITY OF FEDERAL WAY 2023-24 BUDGET
Lona-term Debt
The various components of the city's long-term debt liabilities reflected on the City's financial
statements are as follows.
General obligation bonds are backed by the City's full faith and credit. Proceeds are typically used
for the acquisition or construction of major capital UIV of Fudura1 wdy -Debt Samirw,w - AN F unds
facilities or equipment. "Councilmanic Bonds" are ,.GNLOM
general obligation bonds issued by City Council SjaDKOW
without voter approval. For the two years
contemplated in the 2023-24 budget, the City has no "s 10016m
voter -approved bonds outstanding or contemplated. s1DA1K —
All principal and interest payments on general obligation debts are budgeted in the City's Debt
Service Fund.
Construction of Federal Way Community Center. In 2013, the City issued $12,415,000 of general
obligation refunding bonds with an average interest 201a �du:ne Ltd/cornmuNty Centre
rate of 2.67 percent to provide resources to refinance 5axo.ow
2003 GO Federal Way Community Center debt. The s7•o n-wo
remaining balance at December 31, 2022 is '6-fo °`'
$7,725,000 and will be repaid through 2033.,,
Sl�O'YJ 1
SCORE Jail Services contract. The City, in conjunction with the Valley Communications joint venture
comprised of several other South King County cities 2019ALMO0ondISCORE)
(Auburn, Burien, Renton, SeaTac, Tukwila), built a
shared incarceration facility. The total bond in 2009 j'_3.M4L-w
was $86.3 million and the City of Federal Way's 5:1,mom
portion at that time was $15.5 million. The City Council9
subsequently withdrew from the SCORE (South��
Correctional Entity) interlocal agreement in 2018. In 51•aaa�aoo �n
2019 the City Council authorized bonding for the City ,,tea I I IF]!'
-=,
portion of the SCORE debt. In 2019, the City issued
$10,945,000 of limited tax general obligation bond with
interest rates ranging from 2.75 percent to 5.00 percent to refinance the balance on the 2009 SCORE
Bond of $12,891,600. The remaining balance at December 31, 2022 is $9,765,000 and will be repaid
through 2038.
53
CITY OF FEDERAL WAY 2023-24 BUDGET
Performing Arts Center — General Obligation Debt
tax general obligation bond with interest rates ranging
from 1.95 to 2.65 percent, and a maturity due date of
December 1, 2029. Proceeds were used to pay for a
portion of the Performing Arts and Events Center and
to pay costs of issuing 2019B Bonds. The remaining
balance at December 31, 2022 is $3,500,000 and will
be repaid through 2029.
- In 2019, the City issued $4,840,000 of limited
201,38 LTGo Tam Bond [PAEC)
54?Ufyj.Mn
S9,U�}IF,ODG
52
$7,SffIF,{7116
MOW
53,SQ1PW
5t ;s5fwaw
5D 1
Performing Arts Center — HUD Debt. In 2016 the City entered into a Contract Loan Guarantee with
Housing Urban Development for development of the
2019-d Section 106 HUD M
Federal Way Performing Arts and Events Center. This��,�
Section 108 Loan is authorized up to $3,030,000 with,
advances of $3,030,000 with a variable rate that�,�,
converted to a fixed rate in 2019. The remaining
balance at December 31, 2022 is $2,076,000 and will
be repaid through 2035. ��,,�„ ��,�■_
s�
Interfund Debt. In 2017, the City issued $6,000,000 of limited tax general obligation bond to refinance
the 2014 Key Bank Bond Anticipation Note used to City of Federal Waw - InterFund Deb[
purchase the old Target building property. AW09,
mandatory balloon payment of $5,016,656 due $WC.W,
November 2022 was authorized by City Council in
August 2022 to be refinanced using a three-year,¢,
interest -only interfund loan from restricted but�,,,s,
available balances on deposit in the city's Fleet &1,a,,
Equipment, Downtown Redevelopment and
Transportation Capital funds. �yo
Potential New Debt. The City is currently conducting feasibility and site evaluation studies for the
construction of a maintenance and operations facility for Public Works, Surface Water Maintenance
and Parks vehicles, materials and staff. Construction of this facility will have to be financed over
multiple years. While even estimated figures are unavailable at this time, this budget contemplates the
reality of potential new debt service commencing in 2024 coming from both fund balances and on -going
revenues in the Real Estate Excise Tax and Surface Water Maintenance funds. Offsetting bond
proceeds and construction spending of $32 million are budgeted in 2024 in the Transportation CIP.
Financing itself will need to come to city council and may be amended as further details become known
so that further phased design, planning, demolition, construction and other steps can proceed
methodically and debt service is within forecasted resources.
54
CITY OF FEDERAL WAY 2023-24 BUDGET
Capital
Expenditures
Budgets
e r ii;A
A
i
7 -
i � kls�a
'+rii{i
rlsts� ■;7:Sc4 VAL st}rr 1 ilhrr
55
CITY OF FEDERAL WAY 2023-24 BUDGET
SUMMARY OF CAPITAL
I. Overview
The Capital Investment Plan (CIP) presents current and planned public improvements that are scheduled within the six -
year planning horizon in the City's perpetual infrastructure maintenance and replacement program. Project costs are
appropriated up to and include 2024. Project costs and the allocation of future resources beyond the current 2023-2024
biennium are proposed as an integral part of the plan and will be reviewed and updated during each subsequent biennium.
CIP Programs
The Federal Way CIP projects are organized into three program areas: Parks System; Surface Water Management System;
and Transportation System.
Definition
The City defines a CIP Project to be any project that possesses all of the following characteristics:
• Exceeds an estimated cost of $25,000; and
• Involves new physical construction, reconstruction, replacement of an existing system or acquisition of land or
structures; and
• Is funded by the City, in whole or in part, or involves no City funds but is the City's responsibility for implementation,
such as a 100% grant -funded project.
The project budget is an estimate of the resources required to take a project from beginning to completion. The continuation
of fully funded projects while affects the work load, are not repeated in the Plan document.
III. 2023/24 FUNDING RECOMMENDATION
The Proposed Capital Funding Plan totals $70.62 million in 2023/24.
a. Implement $1.13M in Parks improvements by using REET and paths and trails levy funding to fund Park CIP
projects for 2023/24.
b. Implement $4.76M in Surface Water Management improvements by using $3.81VI in user fees from prior years
combined with $1.01VI in grants in 2023.
c. Implement $64.73M in Transportation improvements & Arterial Street Overlay by providing funding in 2023/24
including $32.0 million in bonds; $10.8 million in grants, $7.9 million in REET, $4.5 million in utility tax, $3.6 million
in Sound Transit fees, $3.3 million in mitigation/traffic impact funds, $1.7 million in surface water management
fees, , and $0.3 million in LIFT sales tax.
56
CITY OF FEDERAL WAY 2023-24 BUDGET
6 YEAR CAPITAL IMPROVEMENT PLAN
PARKS CIP
(dollars in thousands)
Total Project costs $5.6 Million
■ Redevelopment
■ Neighborhood Parks
Total funding sources $2.7 Million
■ REET
■ Paths & Trails Levy
IrT-D Thru
Pro sed
Planned
---
Funding Sources By Year
2022
2023 2024
2025 2026 2027 2028
Total
Real Estate Excise Tax
$ 500
$ 267 1 $ 267
$ 267 I $ 267 , $ 267 $ 267
$ 2,102
Paths & Trails Lev
-
100 1 00
-��
600
Subtotal Ci Sources
$ 500
$ 367 1 $ 767
$ 267 $ 267 $ 267 $ 267
$ 2,702
Project By Year:
Proj.
#
Project Name
L-T-D Thru
2022
2
024
2025
I
I 2026
2027
2028
Total
Unfunded
1
1
129
132
Major Maint & hnpr - Existing Park Fac
Annual Playground Re & Re 1 Pro
________ 100
400
105
162
105
162
105
-----F-----
162
1 105 105 105
-------
I 162 162 162
730
--
1,372
----------
1
150
Korean Garden
-
100
-
-
-
- -
100
1
151
Asphalt Trail Repair
500
----
----------
500
1
152
----
Steel Lake Dock Replacement
-
---
1,500
--
----------
----
1,500
1,500
2
153
SacajaweaTrack Replacement
200
200
200
-----
2
154
--------
Tennis Court Renovations
500
-
------
-
500
---
500
2
155
Sacajawea Turf Replacement
700
700
700
Total Project Costs
367
$ 767
$ 3,167
$ 267 $ 267 $ 267
$ 5,602
$ 2,900
Infunded.- -
$
$ 2,900
S - $ - S -
$ 2,900
$ -
Project Impact on M&O Costs
$
$
S
S -
$ - $ $
$
$ -
Priority 1 = Projects addressing Safety and Service
Priority 2= Projects addressing Park Plan Core Values
Priority 3 = Long Range Planning Projects
57
CITY OF FEDERAL WAY 2023-24 BUDGET
SWM CIP
(dollars in thousands)
Total Project Costs 34.8 million Total Funding Sources $20.1 Million
■ Small CIP
■ Other
■ User Fees/Prior Year
Funding
■ Grants
Sources and Uses
I-T-D
thru 2022
Proposed
--
2023 i 2024
I Planned
1 :
1 2025 2026 i 2027 i 2028
Total
Unfunde
User Fee(may-as ou o�/Prior year Funding
Bond Proceeds
11 4,499
$ 3,016
I $ 1,497
I $ 917 $ 917
I $ 917
I $ 917
$ 12,680
$
Grants/Contributions Received
1,000
-
-
1,000
Grants/Contributions Anticipated
-
2,500
3,900
6,400
Misc./Transfers
-
-
-
-
Total CIP Resources
$ 4,499
$ 4,016
I $ 1,497
I $ 3,417 $ 917
1 $ 917
I $ 4,817
$ 20,080
$
No.
Pro'ectName
I I I
Small CIP -- Annual Pro ram
$ 600
$ 150
$ 150
$ 150
�1,150
$ 1501$
150
$ 150
$ 1,500
$
Y r
271 -
---
ertW. Hylebos Conservation Propy Acquisition
2,280
1,150
150
150
----
1 150
--
--- 150
----
5,180
272
South 356th Street Culvert Replacement
60
94
225
1,021
-
-
1,400
521
274
South 349th Street Weir Repair
-
-
-
-
258
632
890
890
278
West H lebos Educational Center and Trail
110
1,590
1,700
1,700
281
West H lebosTrail (Spring Valle
220
7,580
7,800
3,900
286
2018 Storm Drain CCTVIns ection and Assessmer
600
100
100
100
100
100
100
1,200
-
288
Ifte Rehabilitation Project
884
317
317
317
317
317
317
2,786
-
292
Cold Creek Culvert Replacement
550
50
80
1,150
960
150
860
3,800
21120
293 'Redondo Creek Culvert Replacement at 16th Ave
250
850
-
-
-
-
1,100
-
294 , Citywide Water Quality Monitoring
-
100
100
100
100
100
100
600
295
Annual CB Re air
225
75
75
75
75
75
75
675
296
Neighborhood Drainage Program
50
25
25
25
25
25
25
200
m
33rd PIS Drainage lEprovernents
-
-
-
-
-
-
340
340
340
xvc Hidden Pond Feasibility
-
-
60
-
60
60
xs<c- S 324th St and SR-99 Draian a m roveents
75
275
-
350
-
------
Pipe Ljpsizina at SW Campus Drive, West of9th A
--
30
-
-----
30
-
_xvc
xxac 'North Fork West H lebos Watershed Trail
500
4,7001
5,200
5,200
xlac SWM Contribution to PW O&M Shop
- -
I
I
-
-
Total Pro ects
$ 5,499
$ 3,016
$ 1,497
$ 4,588 $ 6,637
1 $ 1,655
$ 11,919
$ 34,811
$ 14,731
Unfunded Needs
$ -
$ -
$ -
$ 1,171 $ 5,720
$ 738
$ 7,102
$ 14,731
$ -
Project Impact on M&O Costs
$ 10
$ 10
$ 10
$ 10 $ 15
$ 10
$ 10
$ 75
$ -
CITY OF FEDERAL WAY 2023-24 BUDGET
Transportation CIP
Total Project Costs $304.1 Million
J
50%
■ Capacity
Traffic Flow/Safety
■ Overlay
(dollars in thousands)
Total Funding Sources $176.5 Million
User Fee
Misc&Transfers, tW REET
Mitigation/TIF
5%
`u I -es tax
1%
Uti I ityTax
0%
ceds
Financing Sources
LrT-D
thru 2022
Proposed
2023 2024
Planned
2025 2026 2027 2028
Total
User Fee
$ 1,465
$ -
$ -
$ -
$ -
$ -
$ -
$ 1,465
Real Estate Excise Tax
10,013
4,570
1,423
2,373
2,663
2,583
1,163
24,788
Fuel Tax
1,789
811
805
1,055
1,370
2,320
820
8,970
Utah Tax
598
598
Bond Proceeds
32,000
32,000
_
L2PI' Sales Tax
_
900
205
100
1 100
100
100
100
1,605
SWM Transfer
550
350
1450
50
50
5o
50
2550
Misc./Transfers- Utilit Tax
1,402
1,402
Misc./Transfers - Sound Transit
300
300
Misc./Transfers - 102 Overlay45
776
821
Misc./Transfers - Solid Waste UtilityTax
2,200
2,300
2,360
2,360
2,360
2,360
13,940
Misc./Transfers - Xfr 120 Paths and Trails
370
100
470
_
Misc./Transfers - General Fund
_
403
_
403
Misc./Transfers - Iakehaven
536
536
Misc./Transfers - Verizon
229
30
30
30
30
349
Misc./Transfers - Real Estate Excise Tax
2,133
2,133
Misc./Transfers -Mitigation/Traffic Inolmect Fee
484
180
664
Grants/Contributions Received
29,327
9,195
2,718
1,900
43,140
Mitigation Sound Transit
126
2,474
2,600
Mitigation/Traffic act Funds Received
1,178
2,156
937
906
5,177
Anticipated
19,991
_
- 11,500
31,491
M./Contributions
non/Traffic Trapact Fees -Anticipated
"10'1,100
Total CIP Resources
$ 51,948
$ 22947
$ 41863
$ 29 5
$ 18,073
$ 7,413
$ 4493
$ 176,502
Project By Year:
Project Nance OEM
4T-D
thto 2022
�
2023 2024
2025
I
1 2026
2027
I
I 2028
Total
Unfunded
102
1 Annual Asphalt Overlay Program
1,563
1,563
1,563
1,563
1,563
1,563
9,378
116
Overly -Residential
2,200
2,300
2,360
2,360
2,360
2,360
13,940
131
S 320th St @ tat Ave South
150
303
4,409
3,000
7,862
165
SR99HOVL-es PHV
30,376
100
100
30,576
168
SW 336th Wa/SW 340th Street: 26th Place SW -Ho Road
310
7688
7998
7688
177
S320th Street at 1-5 Bridge Widenin
20000
10000
35336
35336
100672
100672
178
Cit wlde Pedestrian Crossing Irovements
1551
-
-
160
320
320
320
2,671
-
202
Ada tive Traffic Control S stem_Prjeet Phase I
-
20
-
-
-
-
-
20
-
204
SR509: SW 312th St-21stAve SW SRTS Project
Z746
60
2,806
- 205
207
S 312th St Steel Ialv; Park-28th Ave SSPedestrian and Bicycle Safe Project
_____iron___ _______-__-_
Cat Center Access Phase I - Environmental ro update
toss
m_ -
3,922
_ -
500
1,100
300
2,335
__
-
-
_______-___
-
-
____________
-
-
-
3,435
4,722
1,235
-
-208
213
Street Light I3a Conversion -
Variable Lane Use Control j i n
1,970
866
100
11
100
100
too
877
216
Adaptive Traffic Controls stemProject Phase M
-
5
-
-
-
_
-
-
5
217
47th Ave SW and SW Dash Point Road Co act Roundabout
1,543
10
1,553
219
loth Ave Trail - S 308th Street to S 288th Street
1,000
3,235
635
3,815
8,685
0
Sound Transit
3,730
897
1 198
4,815
223
S 314th St Iniprovenent
100
218
1,050
2,920
4,288
224
SR99 P S 373rd St Roundabout w/Median Control
200
200
540
4,100
5,040
225
21st Ave S 320th St Traffic Signal
200
1,520
1,720
228
Citywide ADA Retrofit
400
250
250
550
550
400
400
2,800
900
229
S 356th St. -1st Ave S - SR 99
500
600
300
10,500
9,500
21,400
230
SR 509 @ 4th Ave. S Co act Roundabout
1,000
1,000
1,000
231
Federal Transit Center
1,000
1,000
1,000
232
SW 344th St. 27th Ave SW ConpactRourodabout
150
920
1,070
233
Adaptive Traffice Signal Control System- City Center Stage 2-Detection Upgrade
75
700
775
234
Citywide Pedestrian Safety System huproveanents,
300
1,436
1,736
235
Cif e RRFB Upgrades
140
690
830
236
Military Rd S: S 320th St - SR 18 Preservation Project
45
1,205
1,250
237
SW King County Regional Trail Plan
50
125
125
300
238
S 288th St - Pac Hwy S. to 34th Ave S Bike & Ped ro-ts
240
1,650
1,910
3,800
239
FiberOpticNetwork Loop -317thto S272nd
126
2,474
2,600
240
SW 340th St - 31st Ave SW - 37th Ave SW
1,805
515
4,400
1,725
8,445
8,445
241
S 348th preservation
90
1026
1,116
610
Joint eeations&Maintenance Facih1X_
500
2000
32000
-
-
W -
-
W 34500
-
XXX
S 320th St at 21st Ave S Cade Separation
25
200
75
300
Local lPro ram
900
300
300
300
1,800
1,800
__222L
_xxx
cay_cepter aeenway --
100
XXX
High Friction Surface Treatments
10
3,825
3,835
2,937
- XXX
XXX
Ctywide Street Vegetation Mana ement
Adaptive Traffic Controls atemPhaseN 1st Ave S)
-
-
-
89
450
661
I50
_
150
150
900
750
900
661
Total Projects
Unfunded Needs
Project Impact on M&O Costs
$ 51,015
$ 120
$ 23,385
1 $ 53
$ 42,118
1 $ 80
$ 68,311
$ 38,526
1 $ 88
$ 29.408
$ 11,115
S 106
$ 41,749
$ 40,336
1 S 99
1 $ 42,I54
$ 37,661
1 $ 107
$ 31,11
$ 127,638
1 S 653
$ 127,638
S 653
59
CITY OF FEDERAL WAY 2023-24 BUDGET
Appendices
-a n e y`,i
*�
CITY OF FEDERAL WAY 2023-24 BUDGET
CITY OF FEDERAL WAY ORGANIZATION CHART AND OPERATIONS SUMMARY
Municipal Court
Misdemeanors & Gross Misdemeanors
Traffic & Non -traffic Infractions
Probation Services
Civil Impounds
Code Compliance
21 Actual/22 Projected FIE- 16.00/16.00
23/24 Proposed FIE- 16.00/16.00
Community Development
* Land Use Management
--Permit process
* Building Permits & Inspection
* Code Compliance
* Health & Human Services
* Comm. Dev. Block Grin
* Neighborhood Development
* Passport Services
21 Actual/22 Projected FIE- 26.88/28.80
23/24 Proposed FIE- 28.80/28.80
Economic Development
Business Recruitment
21 Actual/22 Projected FIE- 2.00/2.00
23/24 ProposedFIE- 2.00/2.00
CITIZENS OF FEDERAL WAY
MAYOR'S OFFICE
* City-wide Operations and Budget Administration
* Regional Affairs Coordination
* Emergency Management
*Human Resources
*City Clerk
21 Actual/22 Projected FIE- 12.84/12.34
23/24 Proposed FIE- 14.84/14.84
Finance
* Accounts Payable
* Accounts Receivable
* Audit Preparation and Coordination
* Banking and Investments
* Budget Process and Reporting
* Business License
* Financial Planning andAnalysis
* Financial Reporting
* General Accounting
* Internal Controls
* Payroll
* Purchasing
21 Actual/22 Projected F1E- 10.00/9.00
23/24 Proposed FIE- 9.00/9.00
Law
* Civil Legal Services
and Litigation
* Legislative Support
* Prosecution
* Provide Legal Counsel
* Draft Contracts
and Ordinances
* Negotiate Contracts
and Real Estate
Transactions
* Risk Management
21 Actual/22 Projected FIE- 13.50/13.50
23/24 Proposed FIE- 13.50/13.50
Crime Analysis/Prevention
Traffic Safety Educ. & Enfrc.
Investigation
Patrol
Community Safety and
Education Programs
Field Operation
Support Services
Animal Control Services
Civilian Operation
City Council
* Represents the People of FW
* Adopt Ordinances and Resolutions
* Grant Franchises
* Levy Taxes and Appropriate Funds
* Establish Policies & Guidelines
21 Actual/22 Projected FIE- 4.20/4.20
23/24 Proposed FIE- 4.20/4.20
Public Works
* Development Services
--Permitting
--Inspection
* Maint., Operating, &
Development of
--Public Right -of -Way
--Traffic Systems
--Surface Water Mgmt.
* Solid Waste/Recycling
* Fleet Management
l Actual/22 Projected FIE- 186.00/186.00 21 Actual/22 Projected FIE- 65.00/65.00
3/24 Proposed FIE- 186.00/186.00 1 23/24 Proposed FIE- 70.00/70.00
Parks, Recreation & Cultural Services
* Recr & Athletic Progs
* Park maint/operation
& Development
* Comm Events & Arts
* Public Facility Mgt
& Development
* Open Space Mgmt
* Performing Arts and Event Center
21 Actual/22 Projected FIE- 39.96/39.26
23/24 Proposed FIE- 41.26/41.26
Information Technology
* Technology Operations
-- Customer Support
-- Infrastructure Support
-- Data and System Security
-- Communications
-- Technology Refresh
* Business Application and Integrations
* Geographic Information System Mapping
* Audio/Video & Channel 21
* Web/Internet
* Safe City
21 Actual/22 Projected FIE- 10.00/10.00
23/24 Proposed FIE- 10.00/10.00
61
CITY OF FEDERAL WAY 2023-24 BUDGET
Puget
Sound
Fsu
CITY MAP
� .: A1,131ith 7t
fir#
Qos
Moines,
s�??nl
Y+}i
1
Ab
xasrvl at,'
FederalOM
�Iklkllf
Lr,ke
'11Ph Si
5W d2Gt11 5,
�kF
'
554V �51h
r.4 3':.(�I• rII
_[
-
T
MOW Zi
3YI034vI
,,„�,
r'7
�I' �ZCOI�e� I r+l 4 •�
us SW 344!dl 51 e � Vl `
#i1f, }IorII S1II *. w K ' I444gr el
s 3,f'"At,' 1
IJI
Milton
fe
Tent
e�lr
r � 5 64t Lalre'�. A
R6
s Emma'
7
soh tiI
oo+lhrlaka
i � 3r16v1
fslr Q �
I
y a:
O�—It I ' 6 2na si'I
�t
_ VWM BL
LAk4
'II
i SI'
167a
Key io Facilliles:
Llty Faaluuas
ivtty Parks
O Flahats P42h,9 Park
Panlhet Lnk-9 Park
4 Brooklake Commuonlly Conker
0 Adelaide Pork
$ Frehth Lake Park
Saoafawea PmHr
a Cily Nall
ID Alderbrook Park
40 H0FR0g0 Woods Park
ID Saghalie Park
Q dum0¢ Ray ir,en7rp
ID Adclardala Park
ig Hyleho# Blueberry Farm 1b Stool Lake Park
O Frderal Way Communlly Center & BPA Trall
ID Lake Grove Park
ID SW 2121h SPartn Courts
Q S14pg1 LoKe Arinpx
(D Coder Grpwe Park
49 Lakb Kik�arnisy Park
0 Town ,"square Park
Cvle6relian Pork
ilb Lakota Pork
0 Wodgwood Paik
Corono4o Park
lb Laurnlwoor, Park
0 Wnmt Campuc Troll
W 1}a11ah P'Plnl Highlands Park
Q Madrn„o Park
CD West Hylahos Wmilends Park
& Pum0s Roy COFJITM Pork
0 Mlrrcr Lake Park
lb Wlldwood Park
CD Durnpi RPk $ancluary Pork
0 Olyrnpm Vigw Prrrk
IS Mnrp Park
It English Gardons Park
It Palmndas Park
The City is located in southwestern King County, 25 miles south of downtown Seattle, 8 miles north of downtown Tacoma, and
has 8 miles of Puget Sound waterfront. Federal Way has easy access to Sea-Tac International Airport (12 miles) and the Ports of
Seattle and Tacoma, connected to primary transportation routes at three exits along Interstate 5, as well as access points to State
Highways 18, 509, 161 and Pacific Highway/State Route 99.
62
CITY OF FEDERAL WAY 2023-24 BUDGET
BUDGET PROCESS
Procedures for Adopting the Original Budget - The City's budget process and the time limits under which the biennial
budget must be prepared are defined by the Revised Code of Washington (RCW) 35A.34. These elements, with which
the City continues to comply, resulted in the following general work plan and calendar for 2022:
During 2022
Jan
I Feb
I Mar I Apr
May
Jun
Jul
I Aug
Sep
Oct
Nov
Dec
Revenue forecasting Jan. 1 Finance
----------------- ---------- - - ---- -----
Internal Dept Reviews Quarterly All Depts
----------------------------------------------------------
Council Financial Reports Monthly Finance
-----------------------------------------------------------
Strategic Planning Feb. 26 City Council ,
-----------------------------------------------------------------------
2021 roll-fwd appropriation Apr_6 Finance
----
Senior Staff Budget Kickoff Jul. 1 Finance
------L
I
----- I
-
-
-----
------
------r-----
-----
I
I
-----
-----
-----
-----
-----
-----
------r------------------------------
--- -
I
I
-----
2022 MidYear Report Jul. 20 Finance
2022 Course Corrections Jul. 20 Finance
-----------------------------------------------------------------------
Dept HR/PR Staffing Review Jul. -Aug All Depts
- - -------------
Policy/Project identification Aug -Oct All Depts
------
I
-----
I
-----
--
------------
-----
-
-----
-----
-----
-
-----
----
----------I
T I
i
-----
-----
Revenue forecast final Aug_ 1 Finance
Mayor's Budget Sep_ 1 All Depts
-- - -- ---
County Assessed Value Sep. 25 Co. Assessor;
- - --- ---- -- -------- --- -----
Set dates for Nov. Hearings Oct. 5 Finance
----------------------------------------------------------------------
City -Council----Study--Sessions-----Oct. -5,7,12,-14--All Hands -
-------------------------------------------
Ad Valorem Rate Hearing Nov. 1 Finance
------F-----F-----
-
I
I
I
I
I
I
- --I
-----I
-
I
I
I
-----
--
-----
---
-----
-
----
-----
-
I
I
I
--------L ----- ----- -----------
Budget Hearings --------------- Nov.1,15-----Finance----- -----------�-----t----
Budget --- -
adoption Dec. Finance I---
- ------------------ ---------- - -------------------L ---- ------I---- -------------------
Key Deadlines
Key Council Meeting Dates:
9/2S/21
9/30/21
9/20/22
9/26/22
9/29/22
10/4/22
10/18/22
10/18/22
11/1/22
11/1/22
11/15/22
Property tax valuations from County, preliminary proposed tax rate
Preliminary Budget filed with City Clerk, post on City website
Presentations to City Council Study Session
Presentations to City Council Study Session
Presentations to City Council Study Session
Presentations to City Council Study Session
Public Hearing and Ordinances on Ad Valorem Tax Rate
1st Budget Public Hearing
2nd Budget Public hearing
Council passes Budget Ordinances adopting Budget and tax rate
Budget adoption, and last month of actuals for audit prep
Mid -Biennium Review and Modification - The biennial budget statute referenced above requires jurisdictions electing a
biennium budget to perform a mid -biennium review and modification of the adopted budget per RCW 35.34.130. The review
and modification shall occur no sooner than eight months after the start nor later than conclusion of the first year of the fiscal
biennium.
Amending the Budget — As described in the Budget Ordinance, the City Council may increase or decrease the
appropriation for a particular fund by ordinance approved by a simple majority. The Mayor is authorized to transfer budgeted
amounts between departments within any fund. The Department Directors are authorized to transfer budgeted amounts
between accounts within a department.
63
CITY OF FEDERAL WAY 2023-24 BUDGET
BUDGET POLICIES
OPERATING BUDGET
A. OVERALL
The budget is a performance, financing and spending plan incorporating recommendations
from Department Directors, proposed by the Mayor, and approved by City Council. It
contains information and data regarding expected revenues, expected expenditures and
expected performance.
The Finance Department prepares and annually refines written policies and goals to guide
the preparation of performance, financing and spending plans for the budget. Adopted
budgets will comply with the Council -adopted budget policies and priorities.
A comprehensive business plan, the budget should provide the following critical elements:
public policies, financial plan, operations guide, and communications device.
4. The City's budget presentation should display the City's service delivery/performance plan
in a Council/constituent-friendly format and will use a program -budgeting format to convey
the policies for and purposes of City operations. The Finance Department will make
available the line -item format materials on request.
Decision making for capital improvements will be coordinated with the operating budget to
prioritize the City's limited resources for operating and maintaining facilities in conjunction
with annual service delivery.
Under the Mayor's direction, Department Directors have primary responsibility for: a)
formulating budget proposals in line with Mayor and City Council priority direction, and b)
implementing those proposals once they are approved.
B. FISCAL INTEGRITY
1. The City will maintain the fiscal integrity of its operating, debt service, and capital
improvement budgets which provide services and maintain certain public facilities, streets
and utilities. It is the City Council's intent to maximize the level of public goods and services
while minimizing the level of debt.
2. The City Council will adopt a balanced budget for all funds. Balanced budget for operating
funds means ongoing operating program costs do not exceed the amount of ongoing
revenues to finance those costs. The ongoing revenue will be identified along with new
program costs including impact from new capital projects. Any available carryover balance
will only be used to offset one-time or non -recurring costs. Balanced budget for non -
operating funds means total resources equal to or exceed total uses.
3. Fund balances in excess of the amount required to maintain reserve policy will be used to
fund one-time or non -recurring costs.
4. Infrastructure funded by restricted revenues shall be only for the projects or purpose for
which they were intended.
C. FUND RESERVES
The City shall maintain an operating cash flow reserve of $9 million or 17 % of operating
expenditures in the General Fund. The purpose of operating cash flow reserve is to maintain
a minimum of two month's operating expenditure in reserve to manage the fluctuation in tax
receipts, grant revenues, and general cash flow management.
The City shall maintain a Strategic Reserve Fund in order to accommodate unexpected
operational changes, legislative impacts, or other economic events affecting the City's
64
CITY OF FEDERAL WAY 2023-24 BUDGET
operations which could not have been reasonably anticipated at the time the budget was
prepared. Funding shall be $3 million.
3. The City shall maintain a minimum of $1.125 million in the Parks Reserve Fund for the
equipment, turf, and other major needs of the City's Park System.
4. The City will maintain a minimum emergency reserve fund for snow and ice removal of $0.5
million in Street Fund.
5. The City will maintain a minimum emergency reserve fund of $0.1 million in Arterial Street
Fund for unexpected natural disaster to restore roads to original condition.
6. The City will maintain a minimum cash flow reserve with the Utility Tax Fund in amount
equal to $2.5 million ($1.0 million Proposition 1 and $1.5 million Utility tax).
7. The City will maintain a one-year revenue reserve in the fund and may be spent down
ONLY upon the Council' s approval.
8. The City will maintain a minimum $0.2 million reserve in the Hotel/Motel Lodging Tax Fund.
9. The City shall maintain a minimum $1.5 million reserve in the Community Center Fund for
general capital and equipment needs.
10. The City shall maintain a minimum of $1.2 million contingent reserve in Traffic Safety Fund.
11. The City shall maintain adequate reserve in Debt Service Fund in accordance with the bond
ordinance or a minimum of one-year debt service amount.
12. The City shall maintain a reserve for the future general capital needs for the city buildings
or other capital projects in Capital Project Reserve Fund. The Finance Director may transfer
excess revenue over expenditure in the General fund to this fund for future use of the City.
13. The City shall maintain a minimum of $1.5 million in a reserve for the general capital needs
of the building and equipment in Dumas Bay Centre Fund.
14. The City will maintain a reserve in an amount of not less than 13 weeks of budgeted
expenses as recommended by our consultant in the Health Insurance Fund.
15. The City will maintain a reserve in an amount of not less than $0.25 million or annual
unemployment expenses in the Unemployment Insurance Fund.
16. The City will maintain a reserve in an amount of not less than one year's expenses from the
prior year or $0.6 million in Risk Management Fund.
17. The City shall maintain an operating reserve within the Surface Water Management Fund
in amount not less than 17% of operating expenses from the prior year. Any excess may be
transferred to the Capital Project Fund - SWM for future capital projects.
18. The City shall maintain Emergency/Contingent reserve for unexpected catastrophic events
or system failures of not less than $0.5 million in Capital Project Fund -SWM.
19. The City will maintain adequate reserves for capital replacement to replace both hardware
and software in the Information System Fund.
20. The City will maintain an adequate reserve to replace copy and mailing equipment in the
Mail and Duplication Fund.
21. The City will maintain an adequate reserve to provide for perpetual replacement of city
vehicles and other capital equipment in the Fleet and Equipment Fund.
65
CITY OF FEDERAL WAY 2023-24 BUDGET
22. The City will maintain a reserve of not less than $2.0 million for equipment, roof, and other
major upgrades to City Buildings other than Community Center, and Dumas Bay Centre.
D. REVENUES
1. Revenue estimates shall not assume any growth rate in excess of inflation. Real growth
that occurs will be recognized through budgetary adjustments only after it takes place. In
the event that revenues are less than expected, it minimizes the likelihood of severe cutback
actions which may be profoundly disruptive to the goal of providing a consistent level of
quality services.
2. Investment income earned through the City's pooled reserves shall be budgeted in
accordance with the council -approved investment policy.
E. CONTRACTUAL SERVICES
1. The City will continue to thoroughly investigate the feasibility of contracting certain public
services in accordance with Council Resolution No. 92-103.
F. MINIMIZATION OF ADMINISTRATIVE COSTS
1. An appropriate balance will be maintained between resources allocated for direct services
to the public and resources allocated to assure sound management, internal controls, and
legal compliance.
G. RETIREMENT
1. The budget shall provide for adequate funding of the City's retirement system.
H. MONTHLY REPORT
1. The budget will be produced so that it can be directly compared to the actual results of the
fiscal year and presented in a timely monthly report.
2. All budget amendments, both revenues and expenditures, will be noted in the monthly
report.
MULTI -YEAR ESTIMATES
1. With each budget, the City will update expenditure and revenue projections for the next six
years. Projections will include estimated operating costs for capital improvements that are
included in the capital budget.
2. This budget data will be presented to elected officials in a form that will facilitate budget
decisions, based on a multi -year perspective.
J. CITIZEN INVOLVEMENT
1. Citizen involvement shall be encouraged in the budget decision making process through
public hearings and study sessions.
2. Involvement shall also be facilitated through City boards, task forces and commissions,
which shall serve in advisory capacities to the Mayor and City Council.
K. FEES
1. Fees shall be phased toward covering 100% of the cost of service delivery, unless such
amount prevents an individual from obtaining an essential service. Fees or service charges
should not be established to generate money in excess of the cost of providing service.
CITY OF FEDERAL WAY 2023-24 BUDGET
Fees may be less than 100% if other factors (e.g. market forces, competitive position, etc.)
need to be recognized.
L. NONPROFIT ORGANIZATIONS
Future funding decisions regarding nonprofit organizations will be based on guidelines,
policies and priorities determined by the City Council and availability of financing based on
General Fund spending priorities.
CAPITAL BUDGET
A. FISCAL POLICIES
1. Capital project proposals should include as complete, reliable, and attainable cost estimates
as possible. Project cost estimates for the Capital Budget should be based upon a thorough
analysis of the project and are expected to be as reliable as the level of detail known about
the project. Project cost estimates for the Six -Year City Capital Improvement Plan will vary
in reliability depending on whether they are to be undertaken in the first, fifth or sixth year of
the Plan.
2. Capital proposals should include a comprehensive resource plan. This plan should include
the amount and type of resources required, and the funding and financing strategies to be
employed. The specific fund and timing should be outlined. The plan should indicate
resources needed to complete any given phase of a project in addition to the total project.
3. All proposals for the expenditure of capital funds shall be formulated and presented to
Council within the framework of a general capital budget and, except in exceptional
circumstances of an emergency nature, no consideration will be given to the commitment
of any capital funds, including reserve funds, in isolation from a general review of all capital
budget requirements.
4. Changes in project estimates for the comprehensive resource plan should be fully reported
to the City Council for review and approval.
Project proposals should indicate the project's impact on the operating budget, including,
but not limited to, long-term maintenance costs necessary to support the improvement.
At the time of contract award, each project shall include reasonable provision for
contingencies:
a. The amount set aside for contingencies shall correspond with industry standards
and shall not exceed ten (10) percent, or a percentage as otherwise determined by
the City Council of the total contract amount.
b. Project contingencies may, unless otherwise determined by the City Council, be
used only to compensate for unforeseen circumstances requiring additional funds
to complete the project within the original project scope and identified needs.
C. For budgeting purposes, project contingencies are a reasonable estimating tool. At
the time of the contract award, the project's budgeted appropriation, including
contingency, will be replaced with a new appropriation equal to the approved project
contract contingency developed in the manner described above.
The City Administration shall seek ways of ensuring that administrative costs of carrying out
the Capital Improvement Plan are kept at appropriate levels.
The Annual Capital Budget shall include only those projects which can reasonably be
accomplished in the time frame indicated. The detail sheet for each budgeted capital project
should include a projected schedule.
67
CITY OF FEDERAL WAY 2023-24 BUDGET
Capital projects which are not encumbered or completed during the fiscal year will be
rebudgeted or carried over to the next fiscal year except as reported to and subsequently
approved by the City Council. All re -budgeted capital projects should be so noted in the
Adopted Capital Budget. Similarly, multi -year projects with unencumbered or unexpended
funds will be carried over to the subsequent year(s).
10. If a proposed project will cause a direct negative impact on other publicly -owned facilities,
improvements to the other facilities will be required as part of the new project and become
a part of the new project's comprehensive costs.
11. Capital projects will not be budgeted unless there are reasonable expectations that
revenues will be available to pay for them.
B. DEBT POLICIES
1. Short-term lines of credit, tax or Revenue Anticipation Notes may be used only when the
City's ability to implement approved programs and projects is seriously hampered by
temporary cash flow shortages. No long-term debt will be used to finance ongoing
operational costs.
2. The Finance Director shall identify alternative sources of funding and shall examine the
availability of those sources in order to minimize the level of debt.
3. When possible, the City shall use special assessment, revenue, or other self-supporting
bonds instead of general obligation debt.
4. Long term general obligation debt will be incurred based upon the ability of the City to
incorporate into a balanced budget. This debt shall be limited to those capital improvements
that cannot be financed from existing revenues and with an effort to match repayment of
debt by those who benefit from the assets financed. The project should also be integrated
with the City's long term financial plan and City Improvement Plan.
5. The maturity date for any debt will not exceed the reasonable expected useful life of the
project so financed.
6. Fifty percent (50%) of the principal of any long term indebtedness should be retired over 10
years.
Current year revenues shall be set aside to pay for the subsequent year's debt service
payments to protect bondholders from revenue volatility.
The Finance Director shall encourage and maintain good relations with financial and bond
rating agencies, and will follow a policy of full and open disclosure on every financial report
and bond prospectus.
No bond proceeds will be budgeted without accompanying debt service budgeted
concurrently.
C. CAPITAL IMPROVEMENT PLAN (CIP) POLICIES
Transparency in the Capital Improvement Program is a priority.
a. The Capital Improvement Plan shall be provided to the City Council in a timely
manner to allow time for the Council members to review the proposal with
constituents before it is considered for adoption.
b. Council study sessions on the Capital Improvement Plan shall be open to the public
and advertised sufficiently in advance of the meetings to allow for the attendance
of interested citizens.
CITY OF FEDERAL WAY 2023-24 BUDGET
C. Prior to the adoption of the Capital Improvement Plan, the City Council shall hold
noticed public hearings to provide opportunities for citizens to express their opinions
on the proposed plan.
d. The City Planning Commission shall review the proposed City Improvement Plan
and provide its comments on the Plan's contents before the Council considers the
Plan for adoption.
2. All projects included in the Capital Improvement Plan shall be consistent with the City's
Comprehensive Plan. The goals and policies for services, facilities, and transportation
should be followed in the development of the City Improvement Plan. The Comprehensive
Plan service level goals should be called out in the City Improvement Plan.
3. Capital projects shall be financed to the greatest extent possible through user fees and
benefit districts when direct benefit to users results from construction of the project. Refer
to Debt Policies for further detail.
4. Projects that involve intergovernmental cooperation in planning and funding should be
established by an agreement that sets forth the basic responsibilities of the parties involved.
5. The Council will annually review and establish criteria against which capital proposals
should be measured. Included among the factors which will be considered for priority -
ranking are the following:
a. Projects which have a positive impact on the operating budget (reduced
expenditures, increased revenues);
b. Projects which are programmed in the Six -Year Operating Budget Forecast;
C. Projects which can be completed or significantly advanced during the Ten -Year
Capital Improvement Plan;
d. Projects which can be realistically accomplished during the year they are
scheduled;
e. Projects which implement previous Council -adopted reports and strategies.
.•
CITY OF FEDERAL WAY 2023-24 BUDGET
CRITERIA FOR DETERMINING PROJECT INCLUSION/PRIORITY
(In Priority Order)
1. Projects which are required by statute or by an existing agreement with another agency.
2. Projects which are essential to public health or safety.
3. Projects which are required to perpetually replace or maintain existing infrastructure.
4. Projects which are urgently needed by some other criteria than public health or safety, e.g. environmental or public
service.
5. Projects which have exhibited a high degree of public support.
6. Projects which are grant funded and whose maintenance and replacement can be reasonably assured in long-term
budgeting.
7. Projects which, if not acted upon now, would result in the irrevocable loss of an opportunity, or other major
alternative actions would have to be initiated.
8. Projects which would preserve an existing capital facility, avoiding significantly greater expenses in the future (e.g.
continuation of a ten-year cycle street maintenance program).
9. Projects which would result in significant savings to operating costs.
10. Projects which would fulfill a City commitment (evidenced by previous inclusion in the annual CIP and community
support) to provide minimal facilities in areas which are deficient according to adopted standards.
11. Projects which would provide significant benefits to the local economy and tax base.
12. Purchase of land for future projects at favorable prices prior to adjacent development.
13. Purchase of land for future City projects (land banking).
14. Projects which would provide new facilities which have minimal or no operating costs or which have operating costs
but have been designated as exceptions to the operating cost policy by previous City Council actions.
15. Projects which would be constructed in conjunction with another agency with the other agency providing for the
operating costs.
16. Projects which would generate sufficient revenue to be essentially self-supporting in their operation.
17. Projects which would make an existing facility more efficient or increase its use with minimal or no operating cost
increase.
18. Projects which would fulfill City commitment (evidenced by previous inclusion in the annual CIP and community
support) to provide greater than minimal facilities.
19. Projects which are grant funded but would require increased operating costs in the General Fund, including reserve
for eventual replacement.
20. Projects which are not grant funded and would require increased operating costs in the General Fund, and have
not been designated as exceptions to the operating cost policy by previous City Council actions.
70
CITY OF FEDERAL WAY 2023-24 BUDGET
BASIS OF ACCOUNTING AND BUDGETING
Accounting records for the City are maintained in accordance with methods prescribed by the State
Auditor under the authority of Washington State law, Chapter 43.09 R.C.W., and in compliance with
generally accepted accounting principles as set forth by the Governmental Accounting Standards
Board.
Basis of Presentation - Fund Accounting
The accounts of the City are organized on the basis of funds and account groups. Each fund is a
separate accounting entity with a self -balancing group of accounts. There are three broad fund
categories, seven generic fund types within those categories and two account groups. A purpose and
description of the fund is provided on the fund pages in the Budget by Fund section of this budget
document.
Basis of Accounting
Basis of accounting refers to when revenues, expenditures, expenses, transfers and the related assets
and liabilities are recognized and reported in the financial statements. Basis of accounting relates to
the timing of the measurements made, regardless of the measurement focus applied.
The accrual basis of accounting is used by proprietary fund types. Under this method, revenues are
recognized when earned, and expenses are recognized when incurred.
The modified accrual basis of accounting is used by governmental, expendable trust and agency
funds. Revenues and other financial resources are recognized when they become susceptible to
accrual, i.e., when the related funds become both measurable and available to finance expenditures
of the current period. To be considered "available", revenue must be collected during the current
period or soon enough thereafter to pay current liabilities.
Basis of Budgeting
The City uses the same revenue and expenditure recognition principles for budgeting as for
accounting with the exception of depreciation or amortization expenses in proprietary funds.
Balanced Budget
The state law prescribes a balanced budget where total expenditures and other uses not to exceed
total resources (current revenue plus beginning fund balance). The city's budget policy further
requires that expenditures not to exceed revenues. Therefore, a balanced budget for Federal Way
must meet both conditions.
Budgetary Fund Balances
Budgetary fund balance is the difference between current liability and current assets of a fund. This
is the amount available for appropriations during the budget period. It is different than the fund equity
or the net position reported in the entity -wide financial statements as it does not include capital assets
or long-term liabilities that are not available or due within current budget period.
Scope of Budget and Fund Descriptions
Budgets are adopted for the general, special revenue, and debt service funds on the modified accrual
basis of accounting. Certain special revenue and capital project funds, however, are budgeted on a
project -length basis. For governmental funds, there are no differences between the budgetary basis
and generally accepted accounting principles. Budgets for project/grant related special revenue funds
and capital project funds are adopted at the level of the individual project and for fiscal periods that
correspond to the lives of projects.
Legal budgetary control is established at the fund level; i.e., expenditures for a fund may not exceed
the total appropriation amount. The Mayor may authorize transfers of appropriations within a fund,
but the City Council must approve by ordinance any increase in total fund appropriations. Any
unexpended appropriations for budgeted funds lapse at the end of the year. Appropriations for other
special purpose funds that are non -operating in nature, such as capital projects, are adopted on a
"project -length" basis and, therefore, are carried forward from year to year without re -appropriation
until authorized amounts are fully expended or the designated purpose of the fund has been
accomplished.
71
CITY OF FEDERAL WAY 2023-24 BUDGET
ACCOUNTING FOR FUNDS
The individual funds within each fund type which are included in the City's budget are listed below.
General Fund - This fund is used to account for all financial resources except those required to be
accounted for in another Fund.
Special Revenue Funds - These funds are established to account for proceeds of specific revenue
sources that are either designated by policy or are legally restricted to expenditure for specified
purposes.
Street Fund
Arterial Street Fund
Utility Tax Fund
Utility Tax Proposition 1 Fund
Community Development Block Grant Fund
Paths and Trails Reserve Fund
Technology Fund
Jail Fund
Community Center Fund
Traffic Safety Fund
Solid Waste/Recycling Fund
Special Contract/Studies Fund
Hotel/Motel Lodging Tax Fund
Performing Arts & Event Center Fund
Affordable & Support. Housing Sales/Use Tax Fund
Reserve Funds — These funds are established to account for special reserves set aside to provide
the liquidity to respond to economic opportunity and future capital needs.
Strategic Reserve Fund Capital Project Reserve Fund
Parks Reserve Fund
Debt Service Fund - This fund is to account for the accumulation of resources for, and the payment
of, general long-term debt principal and interest.
Capital Project Funds - These funds account for financial resources to be used for the acquisition or
construction of major capital facilities.
Downtown Redevelopment Fund Surface Water Management Projects Fund
Municipal Facilities Fund Transportation Systems
Park Project Fund Performing Arts and Event Center Fund
Real Estate Excise Tax Fund
Enterprise Fund - This Fund is to account for operations that are normally financed and operated in
a manner similar to a private business enterprise where the intent of the governing body is that the
costs of providing goods and services to the general public on a continuing basis be financed or
recovered primarily through user charges.
Surface Water Management Fund Dumas Bay Centre Fund
Internal Service Funds - These Funds are established to account for the financing of goods and
services provided by one department of the governmental unit to other units on a cost reimbursement
basis.
Risk Management Fund
Information Systems Fund
Mail and Duplication Services Fund
Fleet and Equipment Fund
Buildings and Furnishings Fund
Health Self Insurance Fund
Unemployment Insurance Fund
72
CITY OF FEDERAL WAY 2023-24 BUDGET
EW
Distin -Y-u h eBudgct Prcsailation,
r°1zU11 Yd
City of Federal Way
washinaton
FOE the Biennium Beyinn in g
January- 01, 2021
046�7--� P. Armtw
ExecudRT Director
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Distinguished Budget Presentation Award to the City of Federal Way for its biennial budget for the
biennium beginning January 1, 2021. The City has earned this award since 1990. The award
represents a significant achievement. It reflects the commitment of the governing body and staff to
meeting the highest principles in governmental budgeting. In order to receive the budget award, a
governmental unit must publish a budget document that meets program criteria as a policy document,
as an operations guide, as a financial plan, and as a communications device.
This award is valid for a period of two years only. We believe our current budget continues to conform
to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.
73
CITY OF FEDERAL WAY 2023-24 BUDGET
'►z.�� fit,
OOMd
4
74