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1991 Annual Comprehensive Financial Report (91-009)PERMANENT RECORD DO NOT DESTROY GS50-03D-02, Rev. 1 (CAFR) ►A 1991 Comprehensive Annual, Finanolal Report City of Federal Way, Washington Comprehensive Annual Financial Report Year Ended December 31, 1991 City of Federal Way Washington Prepared by Department of Finance CRY OF C� ,- COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 1991 Table of Contents Statement Reference Rage INTRODUCTORY SECTION Letter of Transmittal .......................................... City Officials and Administrative Officers ............................. 1 City Functional Organization Chart ................................. 2 GFOA Certificate of Achievement .................................. 3 FINANCIAL SECTION Auditor's Opinion ............. ......... 7 Combined Financial Statements - Overvi ("Liftable" General Purpose Finance Statements) 9 Combined Balance Sheet - All Fund Types and Account Groups ................ 1 10 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Funds ................. 2 13 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General, Special Revenue and Debt Service Fund Types ...... 3 14 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types ..................................... 4 16 Combined Statement of Cash Flows - All Proprietary Fund Types .............. 5 17 Notes to the Financial Statements .................................. 19 Combining, Individual Fund and Account Groua Statements and Schedules General Fund .............................................. 49 Balance Sheet ............................................ 51 Statement of Revenues, Expenditures, and Changes in Fund Balance ........... 52 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budgetand Actual ........................................ 53 Schedule of Expenditures Compared to Budget ........................ 54 Special Revenue Funds ........................................ 59 Combining Balance Sheet ..................................... 62 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ... 64 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual ..................... . ......... . ........ 66 Debt Service Fund ........................................... 71 Balance Sheet ......... ..... ...... ...-----.----......... 73 Statement of Revenues, Expenditures, and Changes in Fund Balance ........... 74 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual ........................................ 75 Table of Contents (Cont'd) Combining, Individual Fund and Account Group Table Page Statements and SchedvlI_ [continued] Capital Project Funds ............................. . .......... 77 Combining Balance Sheet ............. . . . . . . .................. 79 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 80 Internal Service Funds ........................................ 81 Combining Balance Sheet .................................. ... 83 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings ... 84 Combining Statement of Cash Flows .................. ............ 85 Trust and Agency (Fiduciary) Funds ....... ........ . . . . . 87 Combining Balance Sheet ...................................... 89 Federal Way Retirement System Expendable Trust Fund Balance Sheet .......................................... 90 Statement of Revenues, Expenditures, and Changes in Fund Balance ......... 91 Combining Statement of Changes in Assets and Liabilities - All Agency Funds ......... ................................ 92 General Fixed Assets Account Group ............................... 93 Schedule of General Fixed Assets - By Source 95 Schedule of General Fixed Assets - By Function and Activity ............ ... 96 Schedule of Changes in General Fixed Assets - By Function and Activity ........ 97 STATISTICAL SECTION General Governmental Expenditures and Other Uses by Function - General, Special Revenue and Debt Service Funds ...................... 1 101 Schedule of Major Revenues and Other Financing Sources by Source - General, Special Revenue and Debt Service Funds ...................... 2 102 Tax Revenue by Source - General, Special Revenue and Debt Service Funds ........ 3 103 Property Tax Levies and Collections ................................ 4 104 Assessed and Estimated Actual Value of Taxable Property ................... 5 105 Property Tax Rates - Direct and Overlapping Governments .................. 6 106 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita . 7 107 Computation of Limitation of Indebtedness ............................ 8 108 Computation of Direct and Overlapping Debt ........................... 9 109 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures ................................ 10 110 Demographic Statistics ......................................... 11 111 Property Value, Construction, and Bank Deposits .. . . .................... 12 112 Principal Taxpayers ........................................... 13 113 Schedule of Insurance in Force .................................... 14 114 Salaries and Surety Bonds of Principal Officials ......................... 15 116 Miscellaneous Statistical Data ..................................... 16 117 ff CITY OF � ��� EQ ■ ■ 1 33530 1ST WAY SOUTH • FEDERAL WAY, WASHINGTON 98003 June 29, 1992 People of the City of Federal Way Honorable Mayor and City Council THE COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF FEDERAL WAY The comprehensive annual financial report of the City of Federal Way for the year ended December 31, 1991 is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. FINANCIAL REPORTING STANDARDS AND FORMAT The comprehensive annual financial report is presented in three sections: introductory, financial, and statistical. The introductory section includes this transmittal letter, the City's organizational chart and a list of principal officials. The financing section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the State Auditor's report on the general purpose financial statements. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis. This report includes all funds and account groups of the City. There were no other governmental organizations and activities for which the City exercised oversight responsibility during the reporting period. As an aid to the reader, the major sections of this report have been segregated by divider pages which provide introductions to the sections. In the same manner, fund categories are segregated within the Combining/Individual Financial Statements section of this report. The fund types are presented in the combined general purpose statements in the same sequence in which they appear in the combining section. REPORTING ENTITY The City is a noncharter Optional Code City with a Council -Manager form of government. The City Council consists of seven councilmembers, all of whom are elected at large. The Council elects the Mayor from its members. Throughout 1991, the City Council completed the second of its two-year term as an interim council. All seven council seats were filled as a result of the November S, 1991 election. Effective January 1, 1992, four members were elected to serve four-year terms and three members were elected to serve two-year terms. After January 1, 1993, the four-year terms will be staggered to provide for Council elections every two years. The City Manager, who serves as the chief executive officer, is responsible for day-to-day 'administration of personnel, policies and programs. He is appointed by, reports directly to, and serves at the pleasure of the City Council. In response to direction given by the City Council, the number of staff members has been kept low (81 full-time salaried and no part-time employees), and many services are contracted through private entities. The services provided include: police protection, construction and maintenance of streets, building inspection, jail services, planning and zoning, park maintenance, recreation programs, public health services, surface water management, municipal court services, and general administration, including finance. The seven major departments are the City Manager; Law; Personnel; Parks, Recreation and Human Services; Public Works; Community Development; and Finance. Services for a land use hearing examiner are contracted. Fire protection and emergency medical services are provided by Fire District No. 39. The Federal Way Water and Sewer District delivers water and sewer services. Metro provides public transportation services. Public housing services are the primary focus of the King County Housing Authority. The King County Library System engages City residents through its library and reference services. Schooi District No. 210 offers educational programs for kindergarten through high school students, in addition to vocational training. ECONOMIC TRENDS The City of Federal Way incorporated on February 28, 1990. It is the sixth largest city in Washington State with a population of 70,660 as of April 1, 1991. Federal Way is located on a plateau adjacent to the Puget Sound in King County, eight miles north of downtown Tacoma and 25 miles south of downtown Seattle. The City occupies approximately 19 square miles, and is served by Interstate 5 and state highways 99 and 509. The population in the area now known as the City of Federal Way continues to grow at a moderate pace, with the population as of April MY OF FEDERAL WAY POPULATION TRENDS 1970 TO 2000 100-1 ra324 70. 0 1970 t9eo 1990 19MM ,99e loon YEAR 1, 1992 estimated to be 72,324. This is a 2.4% increase over the 1991 figure of 70,600, provided by the State Office of Financial Management. Extending similar assumptions, the City is projected to reach a population base of 79,000 by the year 2000. In 1991, there were 29,726 housing units in Federal Way. Of these units, 60% were single family and 40 % were multi -family units. These statistics for housing units show a 6.5 % increase over 1990, with projections for the year 2000 reaching the 34,000 level. The community is residential and commercial, with the populace employed locally and in neighboring cities such as SeaTac, Kent, Tacoma, Bellevue, and Seattle. Employment in Federal Way is highly concentrated (83 %) in the retail and service sectors which respond primarily to the needs of the local market area population. Employment was estimated at 10,349 in 1988, 21,885 in 1991, and is projected to grow to 27,561 by the year 2000 - a 266% increase over 12 years. Major employers are the SeaTac Mall, Weyerhaeuser, the School District, St. Francis Community Hospital and Virginia Mason Clinic. iv CITY OF FEDERAL WAY Housrg Urdb-1970-2= (taws -ftu M0 �r+� 7.773 1970 1m) leco 7ew 1G12 2oo YEAR The City's 1991 taxable retail sales were $770.1 million, a 19% increase over the annualized estimate ($647 million) for 1990. The retail sector of the local economy is anchored by the SeaTac regional mall, Costco, Fred Meyer, and many other businesses adjacent to the City center. According to a recent listing of businesses registered with the City of Federal Way and sorted by Standard Industrial Classification, the business economy appears to be configured as follows: construction 8.4%; manufacturing 8.2 %; transportation and public utilities 1.8 %; wholesale trade 0.2%; retail trade 18.2%; services 61.6%; nonclassified 1.6%. In 1991, new improvements to real estate totalled approximately $115.6 million or 3.6% of the City's assessed valuation. The total assessed value of taxable property in Federal Way increased 3.2 %, from $3.1 to $3.2 billion between 1990 and 1991. Real estate sales, following national and regional trends, declined 15%, from $317.8 million in 1990 to $270.5 million in 1991. Along those same trend lines, a total of 1,594 building permits were issued in 1991 with a total valuation of $44.2 million. These figures were lower than 1990's results by 9 % and 21 %, respectively. Permits for single family residential housing totalled 422 and were valued at $30 million - an average of $70,800 each, or 31 % below 1990. Commercial permits totalled 114 and had a value of $6 million which reflects a 26% decrease from 1990. Two of these, for Orion Industries and the Federal Way Library, accounted for over $2.3 million of this total. While the overall employment outlook for the State of Washington is cautious - two years of slow job growth ahead - the bright spots in the picture appear to be service -sector jobs, which are expected to dominate nationally and in Washington through the year 2000. Experts predict that the growth in services in the state will outpace aerospace and manufacturing through 1995. The fastest -growing occapations appear to be in the fields of health care and computer technology, with retail clerks the number one category. Given the strong retail base and significant service sector in the local economy as discussed above, Federal Way is well positioned to climb those growth curves. SIGNIFICANT EVENTS AND ACCOAHUSEMEENTS Since the City officially incorporated on February 28, 1990, 1991 was the first full year of service to the community. Specific events or accomplishments in this dynamic year include the following: The City acquired over 100 acres and maintained over 447 acres of park land, developed a variety of recreational classes for fall and winter, offered a series of summer concerts, managed contracts with 11 agencies for the provision of human services, and initiated a joint school/city use agretiment. Over 30 employees were recruited, hired and provided with orientation training in order to fill minimal foundation staff positions in almost every City department. The City Council approved an innovative performance -based pay plan to be implemented in 1992. v The City undertook major public works projects, such as asphalt overlay, developing a recycling program to begin in 1992, improving traffic flow and safety, and maintaining the City's street and drainage systems. • Cooperative agreements were established with King County Streets Maintenance, Washington State Department of Transportation, and Federal Way Water and Sewer District. ° The City received its first entitlement grant from the U.S. Department of Housing and Urban Development, which was earmarked in accordance with Government regulations for the benefit of low or moderate income persons, addressing slums or blight, or meeting a particularly urgent community need. An ambitious planning project was undertaken - and will extend through 1993 - to guide future growth and development in Federal Way. The City entered into a major project jointly with private sector interests to develop a long range vision and plan for a City center. OUTLOOK FOR THE FUTURE Long Term The blueprint for Federal Way's future is found in its adopted Comprehensive Plan. Key economic development goals in the plan include: Housing and Po elation 6 Preserve the predominantly single-family character and appearance of the community by establishing population densities consistent with neighborhood and citywide objectives. A Create a diverse population by encouraging residential development with a mix of housing types at affordable costs, particularly for senior citizens and lower income families. a Assure the high quality of new and existing housing by consistent enforcement of reasonable housing and building standards that do not unnecessarily increase housing costs. • Maintain safe, economically stable and attractive neighborhoods by providing a high level of public services, including utilities, streets, sidewalks, parks and recreation facilities. • Produce new housing that is planned and developed to protect natural systems and meet community design and landscaping standards. Commercial Iln du str i al Provide employment opportunities within the community by attracting new industries and professional offices. • Establish well-defined and limited neighborhood business centers to provide convenience services to adjacent neighborhoods without adversely impacting neighborhood quality. Control strip development on major arterials while maintaining existing vital businesses. vi 0 Define and implement a development and design concept for the City Center that establishes a vibrant focal point and identity for the community. • Build a transportation system that adequately serves commercial areas, encourages use of alternative modes of transportation for work trips, and allows commercial and industrial growth without creating additional congestion. • Establish design standards for commercial areas that are closely related to their functions but encourage attractive appearance and protection of the environment. • Protect industrial areas from encroachment by other uses and upgrade the quality of existing industrial areas. Open spaces should be identified and preserved to maintain the natural beauty of the community and to provide views, protection of sensitive areas, recreation and other benefits. Natural systems and natural features recognized for their sensitivity to urban development should be protected as open space when development occurs. Transportation Develop a transportation system that provides mobility, and emphasizes safety and aesthetics as well as capacity concerns. Plan and design transportation improvements in a regional context that integrates land use and circulation systems. Natural Environment Preserve the natural character of sensitive areas, habitats, wetlands, stream corridors, lakes and aquifer recharge areas in order to protect public health, safety and welfare, and maintain the beauty of the community. Protect the quality of surface and groundwater, and maintain an adequate public water supply. Overlaid upon these goals is the Growth Management Act of 1990, which requires that all cities within counties planning under the Act adopt a comprehensive land use plan on or before July 1, 1993. Mandatory elements in the comprehensive plan are the following: 1) land use, 2) housing, 3) capital facilities, 4) utilities, and 5) transportation. Short Term The City's immediate objectives are to maintain its relative fiscal strength, facilitate the maturation of its municipal corporation, realize the community's values and preferences, and improve the quality of life for its people as well as the climate for business activities. In 1992, the City of Federal Way has managed to conservatively plan for the following enhancements to City services and facilities: Resources have been allocated for an increased' level of pay-as-you-go spending for streets and parks development. vii • Increased service levels are reflected in parks facilities, renovation and expansion, park planning, and parks and rights -of -way landscaping. • Funding has been provided for the opening of a community center facility, expanded recreation activities, and community arts programming. • Street inspection activities and maintenance of surface water management facilities are to be assumed by the City. • The City Council adopted a new fee schedule which is essential to realizing preventive maintenance and capital improvements for other solid waste management programs. Resources were provided to develop an electronic mapping and infrastructure inventory system (geographical information system, or GIS). • Using grant funds, the City plans to embark on a recycling program to manage solid waste. The City Council adopted incentive -based garbage collection and recycling fees that promote recycling objectives. • Contracted police services have been expanded with a combination of additional commissioned officers and non-commissioned personnel. • Resources were allocated to support the City's continued commitment to playing a significant intergovernmental role in the region. FINANCIAL INFORMATION The City of Federal Way is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the evaluation of relative costs and benefits of the control system requires estimates and judgments by management. Single Audi As a recipient of federal, state and county financial assistance, the City is responsible for maintaining an adequate internal control structure to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and the State Auditor's Office. As part of the City's single audit, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the government has complied with applicable laws and regulations. The results of the City's single audit for the year ended December 31, 1991 indicated that there were no material weaknesses in the internal control structure. viii Budgetary Controls The City maintains budgetary controls in accordance with the Revised Code of Washingtop (RCW 35A.33). The objectives of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue Funds, Debt Service Fund and Internal Service Funds are included in the annual appropriated budget. The level of budgetary control at which expenditures cannot legally exceed the appropriated amount is established at the individual fund level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. All appropriations lapse at year end. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. Basis of Accounting All governmental funds, the expendable trust fund and agency funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when received in cash, except for revenues susceptible to accrual. Revenues considered susceptible to accrual are those that are measurable and available to finance the government operation during the year. Expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred. All proprietary funds, non -expendable trust funds and pension trust funds use the accrual basis of accounting. Under the accrual basis, revenues are recorded when they are earned and expenses are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of revenues or the payment of expenses may take place, in whole or in part, in another accounting period. GENERAL GOVERNMENT FUNCTIONS Overview Overall financial performance in the General Fund, annually budgeted Special Revenue Funds and Debt Service Fund was very positive in 1991. Revenues and other sources of funds totalled almost $23.6 million and exceeded the budget by 2.0%. Expenditures and other uses of funds totalled $22.3 million and were over 12% under budget. Aggregate 1991 FINANCIAL PERFORMANCE: fund balances for these funds ended the year totalling General, space Revenue and $7.3 million, a $6 million increase over the year's Debt Service Funds beginning balance. The General Fund ended 1991 with a $1,712,553 fund balance of which $1,646,953 was unreserved/ undesignated. This was almost an $856,000 increase over the fund balance at the end of 1990. General Fund revenues far exceeded the "original" budget and almost matched the final budget, which had increased the revenue estimates by an additional $2 million to support a $2 million transfer to the City's Strategic Reserve Fund. Expenditures and other financing uses were under budget by almost $614,000. ix Revenue Summary The following charts present a summary of General, annually budgeted Special Revenue, and Debt Service Fund revenues, including other financing sources, for the 1991 calendar year and a comparison of major revenue classifications to the adopted budget. Overall, revenues and other financing resources exceeded budget estimates by $468,000 or 2.0% _ 1991 REVENUES AND OTHER SOURCES: General, Special Revenue and Debt Service Funds Ucenses/Pennits (a0%) Intergovernmental (2( Miscellaneous (M1%) Other Financing Sources (6.9%) ce Charges (mg%) nes/Forrelts (1.2%) Taxes (5&7%) GENERAL, SPLCIAVREVENUE, AND DEBT SERVICE FUNDS Revenues and Other Flan ' Cltlg .ryOAPC@S VC!'SiiS $lt{igCt an7'6n¢sandS) Revenues::;:::..:. .: .....:...... Budget Achol Acftad .Orer (Under} Budget �c of..Budgrs Taxes $12,696 $13,360 $664 105.2% Licenses/Permits 796 720 (76) 90.5% Intergovernmental 4,144 4,761 617 114.9 % Services/Charges 1,303 1,615 312 123.9% Fines/Forfeitures 532 288 (244) 54.1 % Interest Earnings 230 677 447 294.3 % Miscellaneous 2,022 45 (1,977) 2.2% Other Financing Sources 1,376 2,101 725 152.7% Total Revenues $23,099 S23,567 $468 102.0% x Taxes, intergovernmental revenues, service charges, and interest were the revenue categories with the best performance during 1991. Taxes exceeded budget by 5.2% based on sales tax and local criminal justice sales taxes exceeding budget by 11.6% and 27.3 %, respectively, which more than offset the poor performance of the real estate excise taxes. Positive intergovernmental revenue performance was attributable to motor vehicle excise taxes, the sales and use tax equalization payment, liquor taxes and profits, and motor vehicle fuel taxes. Plan review fees accounted for most of the $312,000 which exceeded budget in the services/charges category. Interest earnings during 1991 also surpassed budget estimates. The negative performance in the miscellaneous revenue category was caused by the administrative convenience of budgeting $2,000,000 under a "miscellaneous" revenue account rather than under multiple revenue sources throughout the General Fund. This budget adjustment recognized revenue collections that exceeded budgeted expectations and which would support the Council -directed transfer from the General Fund to the Strategic Reserve Fund. The shortfall of fines and forfeitures reflects the delay in adopting the City's criminal and traffic codes. Expenditure Summary The following charts present a summary of the General, annually budgeted Special Revenue, and Debt Service Fund expenditures for the year ending December 31, 1991 and the amount of percentage increase/decrease relative to the adopted budget. These numbers include other financing uses. Overall expenditures were below budget estimates by $3.1 million or 12.3%. 1991 EXPENDITURES BY FUNCTION/OTHER USES General, Special Revenue and Debt Service Funds Other Financing Uses (IEL496) PUbllc Safety (29LS%) A canomlc Environment (9.4%) —,,—Other (2.2%) sporteMon (2Q3%) (2.1 %) vemment (g.5%) a.5%) GENERAL, SPECIAL REVENUE, AND DEBT SERVICE MINDS Enxudiium By Ftuxtiou (In Thousands).. Futrcreart Budget Acnral Aeueal (Over):. 96. of Budget T kder Badger General Govemment $3,091 $2,125 $966 68.7% Public Safety 6,618 6,606 12 99.8% Physical Environment 50 19 31 38.0% Transportation 6,942 4,531 2,411 65.3% Economic Environment 2,241 2,093 148 93.4% Health 471 469 2 99.6 % Culture & Recreation 1,808 1,908 (100) 105.5% Debt Service -Interest 416 461 (45) 110.8% Other Financing Uses 3,829 4,121 (293) 107.6% Total Expenditures $25,465 S22,333 $3,132 87.7% I GENERAL, SPECIAL REVENUE, AND DEBT SERVIMFUNDS EWndiftuvs-Sy Owed (In Thousands) Object . Act W % of Total Personal Services $3,403 15.3 % Supplies 229 1.0% Other Services 2,709 12.1 % Intergovemmental 12,860 57.6 % Capital Outlay 1,703 7.6 % Debt Service 493 2.2% Interfund Services 937 4.2% Total $22,333 100.0% The following decisions or operational adjustments contributed to the restraint in 1991 expenditures: • The use of the General Fund's contingency of over $905,000 was not required. • Delays in major public works maintenance and construction projects accounting for over $1.6 million in budget underruns, and delays in surface water management projects accounting for almost $778,000 in underruns. These cost underruns more than offset the cost overruns required to expand the City's parks and recreation program and the $649,000 pre -funding of the 1992 debt service on the general obligation bonds and certificates of participation issued in 1991. A 1991 EXPENDITURES BY OBJECT General, Special Revenue and Debt Service Funds Interfund services (4.2%) Intergovernmental (57.ts%) UnreservWfUndignatedFund Balance onnel services (i s.3%) upplles (1.0%) —Other services (12-1%) -Det]t service (2.2%) apltal Outlay (7.6%) Overall unreserved/undesignated fund balances in the General and annually budgeted Special Revenue Funds totalled $5.1 million in the following funds. This amount exceeded original budget projections by $4.0 million. The fund balance in the Debt Service Fund reflects revenues set aside to pre -fund the debt service on outstanding general obligation debt. end Amount General Fund $1,646,953 Strut Fund 1,488,059 Arterial Sued Fund 972,674 lat cif % Real Estate Excise Tax Fund 112,115 2nd % % Real Estate Excise Tax Fund 87,479 Paths & Trails Fund 10,817 Surface Water Management Fund 788,737 Total General and Special Revenue Funds 5,106,834 Debt Service Fund $2,104,943 Total $7,211,777 The final adopted budget for the General Fund included a projected unreserved/undesignated fund balance of $764,900 as of December 31, 1991. The General Fund's actual unreserved/undesignated fund balance exceeded the budget estimate by $882,053 or 115.3 %, and this was following a $2 million transfer to the Strategic Reserve Fund at year end. Unreserved/undesignated fund balance exceeded budget estimates by almost $1.4 million in the Street Fund, and by almost $789,000 in the Surface Water Management Fund. Unreserved/undesignated fund balances in the other Special Revenue Funds were not anticipated in the 1991 adopted budget. Those balances contributed $1,183,085 to an aggregate figure of $7.2 million. PENSION TRUST FUND OPERATIONS The City of Federal Way exercised its option as a newly incorporated municipality to create a substitute retirement plan in lieu of participating in the Social Security program. Under the City's defined contribution retirement plan, the City matches employee contributions equivalent to 6.2 % of gross taxable earnings up to Social Security earnings limits. As a part of its matching contribution, the City pays insurance premiums for survivors, accidental death and dismemberment, disability, and lump sum death benefits. The remaining portion of the City's contribution (approximately 5.2% of gross taxable earnings) constitutes cash payments to the expendable trust fund. The plan design uses the institutional method for investments. The trust fund assets were placed in the State Investment Pool until October 1991 and then invested through a financial advisor. Investment policies and an asset allocation strategy were determined by the City's Retirement System Board in conjunction with an employee advisory group. DEBT ADMINISTRATION The City's General Fund began 1991 with a $1,255,500 interfund loan payable to the Street Fund. With the healthy 1990 year-end fund balance and positive financial performance in 1991, this loan was repaid in 1991, much earlier than scheduled. During 1991 the City issued two general obligation bond issues for the acquisition of land to be used for park and general municipal purposes. These included a 30-year $12,500,000 councilmanic G.O. bond issued in mid -February for the acquisition of 83.5 acres, and $1,450,000 in certificates of participation issued in September for a ground lease on an additional 16.4 acres of land. Please see the Long -Term Debt Note to the financial statements (Note 13) for additional information regarding these two issues. The City's outstanding debt is .41 % of its taxable assessed valuation. As of December 31, 1991, the City's remaining debt capacities are summarized below: VM Capacity o General Government Use • Non -voted: $ 12,041,605 • Financing Leases: 22,696,889 • Voted: 31,996,292 Subtotal General $ 6666 773 • Park and Open Space Use • Voted: 79,990,728 • Utility System Use • Voted: 79,990,728 Total Capacity $226242 Non -voted (councilmanic) general obligation bonds and financing leases are reductions in the general government debt capacity. To the extent that such debt is issued, the City's voted debt capacity is reduced. AV CASK MANAGEMENT On December 31, 1991 the City had $10,690,784 invested in the State Local Government Investment Pool. The Pool investments included bankers acceptances (76%), repurchase agreements (14%), federal mortgage notes (4%), U.S. Treasury Bills (2%), and certificates of deposit (1 %). Pool investments had an average term to maturity of 69 days. The state charges an administrative fee equivalent to five basis points (.05 %). The 1991 average monthly earnings rate was approximately 6.21 % after deducting the administrative fee. Investments were fully guaranteed by federal and state investment insurance programs. RISK MANAGEMENT The City maintains insurance against most normal hazards except for unemployment insurance, fur which it has elected to become fully self -insured. Related premiums received by the Risk Management Fund are used to reimburse the State Employment Security Department for unemployment benefits paid to eligible individuals, and to establish reserves for the payment of estimated future unemployment claims liability. Through its Risk Management Fund, the City is also recovering insurance premium costs for general liability coverage and building reserves for a future general liability self-insurance program. During 1991, the City purchased commercial insurance policies from commercial insurers. During 1991, the City used the Risk Management Internal Service Fund to account for its risk financing activities. It is the opinion of the City's legal staff that at year end there were no outstanding claims that met expenditure accrual or loss disclosure criteria specified in GASB 10. The City's industrial insurance is provided by Washington State and is administered by the Department of Labor and Industries. The following are benefits provided by industrial insurance: medical services, damaged clothing, travel expenses, time -loss payments, vocational rehabilitation, partial disability awards, pension awards and survivor benefits. SUBSEOUENT EVENTS Following the year ended December 31, 1991 and prior to the publication of this CAFR, there were no significant financial events other than negotiations to purchase the facility which is now being leased as City Hall. The acquisition has been approved and decisions are now being made on the best financing method for the City. INDEPENDENT AUDIT State law requires an annual audit of all City books of account, financial records, and transactions by the State Auditor, an independently elected State official. In addition to meeting the requirements set forth under State law, the audit was also designed to meet the requirements of the federal Single Audit Act of 1984 and related OMB Circular A-128. The 1991 audit of the City has been completed in conformance with generally accepted auditing standards. The financial statements of all City funds and account groups have been included in this audit. The City has been given an unqualified opinion for 1991. The State Auditor's report on the general purpose financial statements is included in the financial section of this report. xv AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Excellence in Financial Reporting to the City of Federal Way for its comprehensive annual financial report (CAFR) for the year ended December 31, 1990. This was the first CAFR produced by the City, so it is particularly noteworthy that it won this prestigious award on its first try. In order to be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and efficiently organized CAFR, the contents of which conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the City received a Certificate of Conformance Award issued by the Washington Finance Officers Association for its comprehensive annual financial report for the year ended December 31, 1990. The Award was issued in recognition of the City meeting professional standards and criteria in reporting which reflects a high level of quality in the annual financial statements and in the underlying accounting system from which the report was prepared. The City of Federal Way also received the Government Finance Officers Association Distinguished Budget Presentation Award for its annual budget for the year beginning January 1, 1991. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, a financial plan, an operations guide, and a communications medium. ACKNOWLEDGMENTS The preparation of this comprehensive annual financial report represents the culmination of months of concerted teamwork by the entire staff of the Finance Department. Many members of the department demonstrated unswerving personal determination and dedicated many long days of focused attention to produce this unique and exemplary document. Very special thanks are due to Dick Scott, John Caulfield, Brenda Trent, Becky Metcalf, and Terri Mendenhall. We also wish to call out the talented efforts contributed by Hamid Iravani, the City's Transportation Planner, who prepared the cover art for this year's publication. In addition, staff in all City departments should be recognized for responding so positively to the requests for detailed information which accompany each annual audit. The role of the State Auditor's Office should also be acknowledged as a significant contribution to a fine product. Finally, we wish to express our appreciation to the Mayor and City Council for their ongoing support and for providing the firm foundation for the pursuit of excellence in all realms of professional endeavors. Respectfully submitted, Brent McFall City Manager Deborah S. Larson Finance Director xvi City of Federal Way / 1 CITY OFFIC ALS DEBRA ERTEL Mayor JOEL MARKS Councilmember A* MARY GATES Deputy Mayor JAMES HANDMACHER Councilmember ROBERT STEAD LYNN TEMPLETON JAMES WEBSTER Councilmember Councilmember Councilmember J. BRENT McFALL City Manager OTHER ADMINISTRATIVE OFFICERS Assistant City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stephen L. Anderson Assistant City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kenneth E. Nyberg City Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sandra Driscoll CityClerk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maureen Swaney Finance Director (through January 6, 1992) . . . . . . . . . . . . . . . . . . . . . . . . . . . . John Moir ParksDirector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Erik Joe Stevens Public Works Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Phillip Keightley FUNCTIONAL ORGANIZATION CHART PEOPLE OF FEDERAL WAY City of Federal Way, Washington MAYOR &CITY COUNCIL BOARDS AND COMMISSIONS ----------------- ------------- PLANNING I 1 COMMISSION 1 I ETHICS I I BOARD I I ARTS I I ►IUMAN I I I COMMISSION 1 1 COMMISSION I I PARKS A I I 'DIVERSITY 1 1YOUTH 1 COMMISSION 1 1 COMMISSION 1 1 COMMISSION .......... ................... ASSISTANT CITY MANAGER COMMUNITY DEVELOPMENT SU4U0 I1RgAN DESIGN COMPREHEN3VE PLWNNG UNVOOiISEMREVEµYICjCO�OE NA11ON lNEi7AATIGN1AMRvC'ESWG TItANSP ON f+LANWING PUBLIC WORKS 1 j TRANSPORTATION Ej SI.RFACE WATER UTILITY ENGINEERING REAL PROPERTY SERVICES I MAINTENANCE 1 1 { T i- -- - - - - - - - - FIRE DISTRICT FIRE i 1 ! • [iAM9- � 19ERVICES 1 FwE PREVENTION I ➢I1BUC E W CAYION 1VJARC0N0�0S MA1ERlAlH I AaA%TEC PRFPMECNESS�S I' I WATER & SEWER ----------- DISTRICT WAFER A1PP{YjPUMPINGlT713TA181TTION SEWAGE TREATMENT K]NFPWAFINti TRAN9AISSION SEwEM TPEATMENT SYSTEM MNMTREET U HTI NSTRUCTION UTILITY NWNG/ADMINISTRATION RESIfX#1TIAL STREET LIGHTING CRY MANAGER HEARING EXAMINER CITY ATTORNEY RORAJI AND CQM4SSP7N$TY CIXkIdLS, OSNFnN6 CIVIL OtIcAlION ASSISTANT CITY MANAGER FINANCE A=UN GI?RFA9LW v17CE 5NG RIiC MANAGEMENT FNTAIN GPI,W40 NING PERSONNEL FMPIpYEE PROGRAASs PAY ■ IIFNERT AOMNRTRATX3IN PERSONWL POLICY 17, 1R L RETENTION EMPLOYEE ASSISTANCE PROGRAM WELIJIE$ PRDGRAM PARKS, RECREATION --• -• & HUMAN SERVICES RECREATION GROUNDS MAINTENANCE PARKS/OPEN SPACE ACQUISITION PARK OPERATIONSIDEVELOPMENT R CULTURAI ERFORMING NITS HUMAN SFM I POLICE---------- F OR11G AWNARiIEM RESSTAl1C'E EDUCATION CRIMEttfj CA" WENTI1 TRAFDC ENFORCfM13R MVISTIGATA7N PROACTTYE/W-ACTM PATROL NOT IN PLACE IN 1991 - ESTABLISHED IN 1992 City of Federal Way / 3 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Federal Way, Washington For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1990 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. X r President ones �� Executive Director The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Federal Way for its comprehensive annual financial report for the fiscal year ended December 31, 1990. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Federal Way has received a Certificate of Achievement for the only year it has existed as a municipality, the fiscal year ended December 31, 1990. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. CTTY OF i �� STAT E AU [DITOR'S OFFIC Robert V. Graham STATE AUDITOR Jack Heinricher ASSISTANT STATE AUDITOR INDEPENDENT AUDITOR'S REPORT June 26, 1992 Tie Honorable Mayor and City Council City of Federal Way Federal Way, Washington We have audited the general purpose financial statements of the City of Federal Way, King County, Washington, as of and for the year ended December 31, 1991, as listed in the table of contents. These financial statements are the responsibility of the city's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was performed pursuant to the Revised Code of Washington 43.09.260, under which a full report on the results of this audit will be issued This report may include findings and recommendations on compliance matters, internal control procedures, and questionable costs or contingencies that would not be material in relation to the general purpose financial statements taken as a whole. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the City of Federal Way, King County, Washington, at December 31, 1991, and the results of its operations and the cash flows of its proprietary fund types, for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. Tie combining and individual fund and account group financial statements listed in the table of contents are presented for purposes of additional analysis, and are not a required part of the general purpose financial statements of the City of Federal Way, King County, Washington. Such information has been subjected to the procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The other data included in this report, designated as the statistical section in the table of contents, has not been audited by us and, accordingly, we express no opinion on such data Very Irul urs. Robert V. Graham State Auditor RVG:bin LEGISLATIVE BUILDING AS-21 • OLYMPIA WA 98504-0421 • (206) 753-5277 CITY OF cmr of G General Purpose Financial Statements 10 / City of Federal Way Statement 1 COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS ASSETS Cash and equivalents (Note 4) Cash - Deferred Compensation Investments with plan administrator Receivables (net): Taxes Unbilled Accounts and contracts Interest Due from other governments Interfund bans receivable (Note 14) Property/equipmentrimprovements (net) (Note 7) Amount available in debt service funds Amount to be provided for retirement of long-term debt TOTAL ASSETS LIABILITIES AND FUND EQUITY Liabilities: Vouchers payable Payroll payable Interest payable Due to other governments Deferred compensation payable Custodial accounts Deposits payable Interfund loans payable (Note 14) General obligation bonds payable (Note 13) Compensated absenses payable Capital leases Deferred revenues TOTAL LIABILITIES Equity and Other Credits: Investment in general fixed assets Contributed capital Retained earnings - unreserved Fund balance: Reserved for: Interfund loans Employee retirement Debt service Unreserved: Designated for petty cash Designated for travel advance Undesignated TOTAL EQUITY AND OTHER CREDITS TOTAL LIABILITIES, EQUITY & OTHER CREDITS December 31, 1991 Government Fund Types Special Debt Capital General Revenue Service Projects $ 1,159,222 S 294,063 14 1.074,127 60.000 6,989255 S 23,918 379,438 2,147,923 S 764 $ 2,587,426 $ 7,392,641 $ 2,147,923 S 764 $ 450,111 S 1,316,325 S $ 162,796 29,064 - - 42,980 4,983 28,097 60,000 256,983 874,873 1,433,486 42,980 60,000 - 2,104,943 600 5,000 1,646,953 5,959,155 764 1,712,553 5,959,155 2,104,943 764 $ 2,587,426 $ 7,392,641 $ 2,147,923 3 764 See accompanying notes to financial statements. Page 1 of 2 City of Federal Way / 11 Statement 1(continued) Proprietary Fiduciary Fund Fund Type Accounl Grow $ Totals Internal Trust and General General Long- (Memorandum Service Agency Foxed Assets term Debt On $ 299,456 $ 153,950 $ $ S 10,750,600 224,971 224,971 479,656 479,656 294,063 23,918 14 4,480 4,480 1,453,565 60,000 1,247,131 23,52Z754 24,769,865 - 2,104,943 2,104,943 - 12,893,924 12,893,924 $ 1,546,587 $ 863,057 $ 23,522,754 $ 14,998,867 $ 53,060,019 $ 86,894 $ 12,604 $ $ - $ 1,865,934 3,375 195,235 42,980 39,491 39,491 224,971 224,971 12,530 12,530 35,679 68,759 - 60,000 13,910,000 13,910,000 2,088 85,145 87,233 1,003,722 1,003,722 256,983 92,357 325,275 14,998,867 17,767,838 23,522,754 23,522,754 1,326,890 - 1,326,890 127,340 127,340 60,000 537,782 537,782 - 2,104,943 600 5,000 - 7,606,872 1,454,230 537,782 23,522,754 - 35,292,181 $ 1,546,587 $ 863,057 $ 23,522,754 $ 14,998,867 $ 53,060,019 Page 2 of 2 CITY OF r �� City of Federal Way / 13 Statement 2 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS REVENUES: Taxes Ucenses and permits Intergovernmental Service charges and fees Fines and forfeitures Miscellaneous Interest TOTAL REVENUES EXPENDITURES: Current: General government Public safety Physical environment Transportation Economic environment Health Culture and recreation Debt Service: Interest and fiscal charges Capital projects - general government Capital projects - culture and recreation Capital leases - general government TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): For the Year Ended December 31.1991 Fiduciary Governmental Fund T Fund Type Special Debt Capital Expendable General Revenue Service Projects Trust $ 11,965,254 $ 1,394,710 S S $ 638,967 81,396 2,881,220 2.586.646 466,318 1.148,853 288,254 627,760 49,360 44,T75 93 $ 16,912.548 $ 5.261.059 S $ 2,124,780 $ $ 6,605.948 17,322 18,755 4,530,747 2,093,469 190,325 468,430 - 1,680,884 227,287 Totals (Memorandum only) S 13,359,964 720.363 5.467,866 1,615,171 288,254 17,463 694,583 30 443,636 488.534 S 30 S 461.099 S 22,634,736 $ $ 38,014 $ 2.162,794 6,623,270 18,755 4,530.747 2,283,794 468,430 1,908,171 49,592 411,826 - 461,418 - 133,622 133,622 - 12,500,000 12,500,000 1,003,722 1.003,722 14,045,580 4,965,681 411,826 12,633,622 38,014 32,094.723 2,866,968 295.377 (411,826) (12,633,592) 423,085 (9,459.987) Capital leases 1,003,722 - 1,003,722 Bond proceeds - - - 12,500,764 12,500,764 Operating transfers In - 2,000,000 2,100,770 - 20,573 4,121,343 Operating transfers out (2,845,018) (1,276,325) - (4,121,343) TOTAL OTHER FINANCING SOURCES (USES) (1,841,296) 723,675 2,100,770 12,500,764 20.573 13,504,486 EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 1,025,672 1,019,053 1,688,943 FUND BALANCES AT BEGINNING OF YEAR 856,648 4,991,655 416,000 Residual equity transfer out (169,767) (51,553) - (132,828) 443,658 4,044,498 133,592 94,124 6,492,019 (221,320 FUND BALANCES (DEFICIT) AT END OF YEAR $ 1,712,553 $ 5,959,155 $ 2,104,943 $ 764 $ 537,782 $ 10,315,197 See accompanying notes to financial statements. 14 / City of Federal Way Statement 3 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUND TYPES FOR WHICH ANNUAL BUDGETS HAVE BEEN LEGALLY ADOPTED For the Year Ended December 31, 1991 REVENUES: Taxes Licenses and permits Intergovernmental Service charges and fees Fines and forfeitures Miscellaneous: Interest Other TOTAL REVENUES EXPENDITURES: Current: General government Public safety Physical environment Transportation Economic environment Health Culture and recreation Debt service: Interest and fiscal charges TOTAL EXPENDITURES Ganersl Fund Special Revenue Fund Typos Variance Variance Favorable Favorable Budget Actual Wnlavoreb4e) Budget Actual (Vnravorsblej S 11-090,000 S 11,965,254 S 875254 S 1,606.000 $ 1.394,710 $ 796.000 638,967 (157,033) 81.396 2,083,600 2,881.220 797,620 2.060,200 1,879.493 159,000 466.318 307,318 1,144,300 1,148,853 532.000 288,254 (243.746) 230,000 627.760 397,760 49,592 2,022.000 44,775 1� 977,225) 93 $ 16.912,600 $ 16.912.548 $ (52) S 4,810,500 $ 4,554,137 S $ 3,091,011 $ 2,124,780 $ 966,231 $ 6,618,151 6,605,948 12,203 50,000 18,755 31,245 2,240.938 2,093,469 147.469 470,700 468,430 2,270 1,284,899 1,680,884 (395,985) - 49,592 (49,592) 13,755,699 13,041.858 713,841 S - S (211.290) 81.396 (180.707) 4,553 49.592 93 6,942,400 4,530,746 2,411,654 523,000 227.287 295,713 7,465,400 4,758,033 2,707,367 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 3,156,901 3,870,690 713,789 (2,654,900) (203,896) 2,451,004 OTHER FINANCING SOURCES (USES) Operating transfers in - 480,000 (480,000) Operating transfers out (2,745,001) (2,645,018) (100,017) (1,083,400) (1,276,325) (192,925) TOTAL OTHER FINANCING SOURCES (USES) (2,745,001) ,845,018 (100,017) (603,400) (1,276,325) (672,925) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 411,900 1,025,672 613,772 (3,258,300) (1,480,220) 1,778,080 FUND BALANCES AT BEGINNING OF YEAR 353,000 856,648 503,648 3,639,500 4,991,655 1,352,155 Residual equity transfers out - (169,767) (169,767) (51,553) (51,553) FUND BALANCES AT END OF YEAR $ 764,900 $ 1,712,553 $ 947,653 $ 381,200 $ 3,459,882 $ 3,078,682 See accompanying notes to financial statements. Page 1 of 2 City of Federal Way / 15 Statement 3 (Continued) Totals Debt Service Fund Types (Memorandum Only) Variance variance Favorable Favorable Budget Actual fUntavorab[,) Budget Actual (Unfavorable) $ $ $ $ 12,696.000 S 13,359,964 S 663.964 796.000 720,363 (75.637) 4,143,800 4,760,713 616,913 1,303.300 1,615,171 311,871 532.000 288,254 (243,746) 230,000 677,352 447.352 2,022.000 44,868 (1,977,132) $ $ $ $ 21,723,100 S 21,466.685 $ (256.415) $ $ $ $ 3,091,011 $ 2,124,780 $ 966,231 6,618,151 6,605,948 12,203 50,000 18,755 31,245 6,942,400 4,530,746 2,411,654 2,240,938 2,093,469 147,469 470,700 468,430 2,270 1,807,899 1,908,171 (100,272) 416,000 411,826 4,174 416,000 461,418 (45,418) 416,000 411,826 4,174 21,637,099 18,211,717 3,425,382 (416,000) (411,826) 4,174 86,001 3,254,968 3,168,967 416,000 2,100,770 1,684,770 896,000 2,100,770 1,204,770 (3,828,401) (4,121,343) (292,942) 416,000 2,100,770 1,684,770 2,932,401 (2,020,573) 911,828 1,688,943 1,688,943 (2,846,400) 1,234,395 4,080,795 416,000 416,000 4,408,500 6,264,303 1,855,803 - - - (221,320) (221,320) $ 416,000 $ 2,104,943 $ 1,688,943 $ 1,562,100 $ 7,277,378 $ 5,715,278 Page 2 of 2 16 / City of Federal Way COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES Statement 4 IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES For the Year Ended December 31, 1991 Internal Service Funds OPERATING REVENUES: Service charges and fees S 989.908 Miscellaneous 387 TOTAL OPERATING REVENUES 990.295 OPERATING EXPENSES: Personnel services 71,769 Services and charges 484,008 Materials and supplies 178.996 Insurance 61,681 Claims 6,388 Depreciation 79,759 TOTAL OPERATING EXPENSES 882,601 OPERATING INCOME (LOSS) $ 107,694 NON -OPERATING REVENUES (EXPENSES): Interest Income $ 19,646 TOTAL NON -OPERATING REVENUE (EXPENSES) 19,646 NET INCOME (LOSS) 127,340 RETAINED EARNINGS, January 1 _ RETAINED EARNINGS, December 31 $ 127,340 See accompanying notes to financial statements. City of Federal Way / 17 COMBINED STATEMENT OF CASH FLOWS Statement 5 ALL PROPRIETARY FUND TYPES For the Year Ended December 31, 1991 Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from users $ W9,909 Cash payments to suppliers for goods/services (615,779) Cash payments to employees (66,306) Cash payments to claimants (6,114) Cash payments to other funds for services (22,287) Other operating revenues 387 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 279,810 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: NET CASH PROVIDED (USED) BY NON - CAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (225.221) Cash contributions for capital acquisitions 225,221 NET CASH PROVIDED (USED) FOR CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Receipts of interest 19,646 NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 19,646 NET INCREASE (DECREASE) IN AND CASH EQUIVALENTS 299,456 CASH AND CASH EQUIVALENTS 01/01/91 CASH AND CASH EQUIVALENTS 12/31/91 $ 299,456 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 107,694 Adjustments to reconcile operating income to net cash provided by operating ec"as: Depreciation expense 79,759 Increase in accounts payable 86,894 Increase in accrued payroll/ compensated absences payable 5,463 TOTAL ADJUSTMENTS 172,116 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 279,810 SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTMTIES Contributions of capital assets $ 1,102,264 See accompanying notes to financial statements. CfTT OF uu � City of Federal Way / 19 NOTES TO THE FINANCIAL STATEMENTS December 31, 1991 TABLE OF CONTENTS Note Page 1 Summary of Significant Accounting Policies ................... 20 Reporting Entity .......................... . . .. . . . 20 Basis of Presentation --Fund Accounting ..... . . . . .. .. ... . .. 21 Basis of Accounting ............................... 22 Budgets and Budgetary Accounting ......... . ... . . . . . ... 23 Assets, Liabilities and Equities .... . Cash and Equivalents ........................... 25 Temporary Investment ........................... 25 Receivables .. . . .. . ... . .. . ... . .. . .... .. . . . . . . 26 Amounts Due to and from Other Funds; Inter -fund Loans . . . . . 26 Inventories .................................. 26 Fixed Assets .............. ... . .. . . ... . . . . . .. . 26 Other Assets and Debits .......................... 27 Compensated Absences -Accrued Employee Vacation . . . .. . . . 27 Long -Term Debt 27 Deferred Revenues ...................... . .. ... . 27 Fund Equity -Reserves and Designation ... ........... . . . 28 Internal Service Funds ....................... .... 28 Interfund Transactions ............................. 28 Comparative Data ................................ 28 Total Columns on Combined Statements - Overview ........... 29 2 Stewardship, Compliance and Accountability .................. 29 3 Supplemental Appropriations ............................ 29 4 Cash and Investments ................................ 30 5 Receivables (Property Taxes) ............................ 31 6 Intergovernmental Grants and Entitlements ................... 32 7 Fixed Assets and Depreciation ........................... 33 8 Pension Plans ........... ....... . .. ... .... ......... 34 9 Other Employee Benefits .............................. 37 Deferred Compensation .. ............ . .. . ..... . . . ... 37 Compensated Absences ............................. 38 10 Risk Management . ............... . ................. 38 11 Leases and Other Contractual Commitments ................... 39 12 Estimated Arbitrage Rebate ............................. 41 13 Long -Term Debt ................................... 41 14 Interfund Transactions ................................ 45 15 Contributed Capital .................................. 46 16 Contingencies and Litigation ......... . . .. ... .... ........ 47 17 Fund Additions and Changes ... .. . . .. . . . . . .. .... . ... .. .. 47 18 Subsequent Events ............ ...................... 48 20 / City of Federal Way For the Year Ended December 31, 1991 NOTE 1: Summary of Significant Accounting Policies The City of Federal Way, King County, Washington was incorporated on February 28, 1990 and operates under the Revised Code of Washington applicable to an Optional Municipal Code City (RCW 35A) with a Council - Manager form of government. Under the Council -Manager form of government, the voters elect, at large, a seven - member City Council, and the Council elects one of its members to serve as Mayor. 'Me first council served a two- year term ending December 31, 1991, with all seven positions up for re-election for staggered terms of two and four years. In the future, all terms will be for a period of four years allowing for council member consistency and staggered elections. The City Manager is appointed by the Council to act as the chief executive officer of the City and is responsible to the Council for proper administration of all City affairs. The City of Federal Way (hereafter referred to as the 'City') is a general purpose government with its fiscal year ending December 31. The City provides a broad range of general government services, though 1991 marks only its first full year of existence as a municipality. Its services are in transition and are expanding to meet both the public's needs and those related to infrastructure. During its transition period, the City's management has continued to contract with King County and the local Fire District to provide specific services, such as law enforcement, fire protection, storm and surface water utility billings, court services, and various public works services. For additional information and statistics about the City, please refer to the 'Miscellaneous Statistical Information' section in the Statistical Section. The accounting and reporting policies of the City conform to generally accepted accounting principles for governments, and are regulated by the Washington State Auditor's Office, Division of Municipal Corporations. The City's significant accounting policies are described below. Reporting Entity The City's Comprehensive Annual Financial Report (CAFR) includes all funds, account groups, agencies and boards controlled by or dependent on the City. Under Section 2100 of the Governmental Accounting Standards Board's (GASB) 1990 Codification, the primary basis of determining whether outside agencies and organizations should be considered component units of the City and included in the City's financial statements is a manifestation of oversight authority. Criteria used in making a determination of oversight authority include whether the City has the authority to adopt the organization's budget, approve expenditures, appoint the governing body, approve selection of key management staff, significantly influence operating decisions or whether the City can be held accountable for related fiscal matters and outstanding debt obligations. Component unit status may also be assigned to organizations having a special financing relationship with the City or conducting activities benefitting the City and/or its citizens within the City's geographic boundaries that are generally available to all residents. There are no instances in which factors other than oversight responsibility are so significant in the relationship between a particular organizations and the City that the exclusion of such organization would be misleading. Based on application of the above criteria for a component unit, and the criteria for defining joint ventures set forth under section J50.101 of the 1990 Codification, none of the privately -owned and government entities listed below meet the criteria for inclusion as component units and, therefore, are not reported in the accompanying financial statements. Although these organizations have a common name and provide services to residents generally within the City's geographic boundaries, the City does not have the ability to influence their daily operations and does not approve their budgets, provide funding for their activities or have any responsibility for their outstanding financial obligations. City of Federal Way / 21 Federal Way Community Center Federal Way District Pool Federal Way Fire District #39 Federal Way Library System Federal Way Medical Center Basis of Presentation - Fund Accounting Federal Way School District #210 Federal Way Senior Center Federal Way Water and Sewer Federal Way Youth and Family Services 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. The account groups are financial reporting devices used to provide accounting control for certain assets and liabilities not recorded in the funds because they do not directly affect net expendable available financial resources. Under the current governmental accounting model, there are three broad fund categories, seven generic fund types within those categories and two account groups. A description of the three fund categories and the generic fund types included in each category is provided below. The individual city funds in each generic fund type are described on pages preceding the combining and individual financial statements for that fund type, later in the document. overnmen al Funds Types Governmental funds are used to account for activities typically associated with state and local government operations. All governmental fund types are accounted for on a spending or 'financial flows' measurement focus, which means that typically only current assets and current labilities are included on related balance sheets. The operating statements for governmental funds measure changes in financial position, rather than net income. They present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. The four generic fund types in this category are described in the following paragraphs. The General Fund is the general operating fund of the City and accounts for all activities not required to be accounted for in some other fund. Special revenue funds account for the proceeds of specific revenue sources, other than expendable trusts or revenues designated for major capital projects, that are legally restricted to expenditures for specific purposes. Debt service funds account for the accumulation of resources for and the payment of general long-term debt. Effective with the implementation of GASB Statement 6 in 1988, principal and interest for special assessment debt are included in this category. Capital projects funds account for the acquisition or construction of major capital facilities except those financed by proprietary funds and trust funds. Effective with the implementation of GASB Statement 6 in 1988, local improvement district construction and interim financing activities are included in this category. Promietary Funds Proprietary funds are used to account for activities similar to those found in the private sector where the intent of the governing body is to finance the full cost of providing services, including depreciation, primarily through user charges or where the periodic determination of net income is considered necessary for sound financial administration. The measurement focus for these funds is based on the commercial model which uses a flow of economic resources approach. Under this approach, the operating statements for the proprietary funds focus on a measurement of net income (revenues and expenses) and both current and non -current assets and liabilities are reported on related balance sheets. Their reported fund equity (net total assets) is segregated into contributes capital and retained earnings components. As described below, there are two generic fund types in this category. Enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the City is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The 22 / City of Federal Way acquisition, maintenance and improvement of the physical plant facilities required to provide these goods and services are financed from existing cash resources, the issuance of bonds (revenue or general obligation), Federal grants and other City funds. Currently the City does not have enterprise funds. Internal service funds account for business -like activities where related goods or services are primarily provided to other departments or funds of the City on a cost -reimbursement basis. FiduciaU Funds Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals. private organizations, other governments or other funds. These funds share characteristics with both the governmental and ,proprietary funds and therefore, as described below, use the measurement focus and basis of accounting most appropriate to their specific operations. This fund category includes expendable trust, nonexpendable trust, pension trust, and agency funds. The City uses funds in two of these subclassifications to account for its current financial activities: 1) an expendable trust fund, where both the principal and revenues earned on that principal may be expended for purposes designated by the trust agreement; and 2) several agency funds which account for assets that the City holds for other funds, governments or individuals. Expendable trust funds are accounted for in essentially the same manner as governmental funds, having a flow of current financial resources measurement focus and using the modified accrual basis of accounting. Agency funds are custodial in nature (assets equal liabilities) and do not measure the results of operations; the City has no equity position. (See "Basis of Accounting' below for a definition.) Accounj Groups To facilitate the measurement of the sources and uses of current financial resources in the governmental funds, separate account groups are used to account for related non -current or non -financial resources, such as general fixed assets and unmatured general long-term debt. On this basis, the City uses the following account groups to establish accounting control over related assets and liabilities not recorded in the governmental funds. The General Fixed Assets Account Group accounts for all fixed assets of the City other than those accounted for in the proprietary funds. The General Long-term Debt Account Group accounts for all long-term debt of the City other than debt accounted for in the proprietary funds. Basis of Accounting Basis of accounting refers to "when" revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of measurements made, regardless of the nature of the measurement. The accrual basis of accounting recognizes transactions when they occur, regardless of the timing of related cash receipts and disbursements. Revenues are recognized when earned, if measurable, and expenses are recognized when incurred, if measurable. "Expenses` are defined as 'outflows or other using up of assets or incurrences of liabilities... during a period from ... activities that constitute the entity's ongoing major and central operations. " The modified accrual basis of accounting is the accrual basis adapted to the governmental fund -type measurement focus. Under it, revenues and other financial resource increments 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. As for expenditure recognition under this method, "expenditures" rather than "expenses" is the key consideration. Expenditures are for the most part recognized on an accrual basis because they are measurable when they are City of Federal Way / 23 incurred, that is, when a fund incurs the related liability. NCGA-1 defines expenditures as "reductions in the net financial resources" of a fund and concludes that most expenditures and operating transfers should be recorded when the related liability is incurred. Since the recognition of depreciation does not reduce net financial resources, it is not considered an expenditure. Other exceptions include (1) inventories of materials and prepaid items are reported as expenditures when purchased, (2) interest on long-term debt is not accrued but is recorded as an expenditure when due, (3) accumulated unpaid vacation and sick pay are considered expenditures when paid. Governmental, expendable trust, and agency funds use the modified accrual basis of accounting. Proprietary fund types, pension trust funds and nonexpendable trust funds use the accrual basis of accounting. Major revenues recorded on the modified accrual basis are: Property Taxes - King County acts as the City's collection agent for these taxes. At the end of each day, the County electronically transmits to the City the taxes which it has collected on the City's behalf in the prior day. On this basis, property taxes collected by the County at the end of December are considered both measurable and available and are therefore recognized as revenue in the current year, even though the City does not receive the related funds until the following January. Other Locally Levied Tares - King County also acts as the City's collection agent for the 'A % and optional 'k % real estate excise taxes. Although a time lag occurs in payment of these taxes to the City, since the taxes are actually collected by King County in December and receipted to the City within 10 days after the end of the year, they are considered to be both measurable and available, and are, therefore, accrued as revenue at year end. The State of Washington acts as the City's collection agency for the locally levied sales tax. The sales tax is distributed monthly and remitted to the City in the following month. It is both measurable and available and is therefore accrued as revenue at year end. Grant Revenues - Under Section G60.109 of the 1990 Codification, revenues for cost reimbursement grants are determined to be earned and, therefore, available at the time related expenditures are incurred. For this reason, grant revenues to be received as reimbursement for expenditures incurred in the current year are also recognized as revenue in that year. Shared Revenues - Revenues that have been collected but not remitted by an intermediary collection agency to the City are considered measurable and available. Other Revenue Sources - Other items recognized as revenue in the current year on the modified accrual basis include investment interest earned but not received at year end; operating transfers, interfund, and intergovernmental service billings related to services provided in the current year which are outstanding at year end; and any other material revenue amounts determined to be both measurable and available under current modified accrual accounting practices. Revenues not considered to meet the criteria for recognition on the modified accrual basis include the business and occupation tax, licenses and permits, fines and forfeitures, and other miscellaneous revenues which are generally not measurable until received. Budgets and Budgetary Accounting Scope of Budget - Annual appropriated budgets are adopted for the general, special revenue, debt service, and for all proprietary funds on the modified accrual basis of accounting. For governmental funds, there are no differences between the budgetary basis and generally accepted accounting principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements include budgetary comparisons for annually budgeted governmental funds only. Budgets for capital project funds are adopted at the level of the individual project and for fiscal periods that correspond to the lives of projects. Since these funds are not budgeted on an annual basis, budgetary comparisons are not presented. NCGA Statement 1 does not require, and the financial statements do not present, budgetary comparisons for proprietary fund types. 24 / City of Federal Way The City budgets on a GAAP basis. However, the initial recording of capital leases that finance the acquisition of assets is not budgeted. The required expenditure and its offsetting 'other financing source' entry to record the capital lease transaction is recognized as a reporting entry having no budget consequence. It is therefore not disclosed in 'Revenue, Expenditure, and Changes in Fund Balance - Budget and Actual' statements. Legal budgetary control is established at the fund level, i.e., expenditures for a fund may not exceed the total appropriation amount. The City Manager may authorize transfers of appropriations within a fund, but the City Council must approve by ordinance any increase in total fund appropriations. Any unexpended appropriation balances for annually budgeted funds lapse at the end of the year. Appropriations for other special purpose funds that are non -operating in nature are adopted on a 'project -length' basis and, therefore, are carried forward from year to year without reappropriation until authorized amounts are fully expended or the designated purpose of the fund has been accomplished. There were no outstanding encumbrances on December 31, 1991. Encumbrances do not reserve budgeted appropriations at year end. The individual funds within each fund type which are included in the City's annual operating budget are listed below. For each governmental fund, a 'Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual' is provided in this document to demonstrate the fund's legal budget compliance for the year. Funds Budgeted on an Annual Basis: General Fund Debt Service Fund Special Revenue Funds: Street Fund Arterial Street Fund 1st 'A % Real Estate Excise Tax Fund 2nd 'A % Real Estate Excise Tax Fund Paths and Trails Reserve Fund Surface Water Management Fund Procedures for Adopting the Original Budget - The City's budget process and the time limits under which the budget must be prepared are defined by the Revised Code of Washington (RCW) 35A.33. The procedures followed in establishing the annual budget are described below: • By late May the official budget call is made by the Finance Director for current level service budgets and a preliminary financial forecast. • By late July, Departments submit their preliminary expenditure estimates and the Finance Department updates the preliminary revenue estimates to define resources available to finance coming year expenditure programs. • Prior to the first Tuesday in September, the City Manager submits a proposed budget to the City Council. This budget is based on priorities established by the Council and estimates provided by City departments during the preceding months, and balanced with revenue estimates made by the Finance Director. • City Council conducts workshops and public hearings on the proposed budget between mid -September and mid -December. • No later than the first Monday in October, the City Council must adopt an ordinance to establish the amount of property taxes to be levied in the coming year. o By October 31, the City Manager files a preliminary budget with the City Clerk. Copies of the preliminary budget are provided to staff and the City Council and made available to the public. City of Federal Way / 25 • During the first two weeks of November, the City Clerk publishes a notice of the filing of the preliminary budget and notices of public hearings to be held during preliminary budget deliberations. • Two public hearings on the proposed budget are also held during November and December. Final hearings on the budget must begin on or before the first Monday of December, and may continue until the 25th day prior to beginning of the next fiscal year. • By December 31, the City Council makes its adjustments to the proposed budget and adopts a final budget by ordinance. • The final operating budget, as adopted, is published and distributed within the first three months of the following year. Copies of the adopted budget are made available to the public. Amending the Budget - The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of a fund must be approved by the City Council. When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for a particular fund, it may do so by ordinance approved by a simple majority. The budget amounts shown in the financial statements are the final authorized amounts as revised during the year. Assets, Liabilities and Equities Cash and Equivalent It is the City's policy to invest all cash not immediately required for disbursement. At December 31, 1991, the State Treasurer was holding $10,690,784 in short-term investments of cash. This amount is classified on the balance sheet as cash and equivalents in various funds. The interest earnings on these investments is credited to the General Fund except for amounts allocated to the City's internal service funds and its Federal Way Retirement System expendable trust fund. The amounts reported as cash and equivalents also include compensating balances maintained with certain banks in lieu of payments for services rendered. The average compensating balances maintained during 1991 were approximately $88,091. For purposes of the Statement of Cash Flows, the City considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents. The City's deposits are entirely covered by federal depository insurance (FDIC and FSLIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission (PDPC). Temr)orary Investments The City is authorized by State law to purchase certificates of deposit issued by Washington State depositories that participate in a state insurance pool managed by the Washington Public Deposit Protection Commission; securities purchased by the Washington State Investment Pool; U.S. Treasury and Agency securities, banker's acceptances trading in the secondary market; and repurchase agreements with dealers that use authorized securities as collateral. All investments, except assets in the deferred compensation plan, are recorded on an amortized cost basis, under guidance provided by ARB 43 which states that marketable debt securities should be reported at cost, unless there is a significant and permanent decrease in market value, in which case, market value should be used. The value of investments reported on the financial statements, therefore, reflects par value adjusted by the unamortized portion of premiums or discounts realized at purchase. Assets in the City's deferred compensation plan are reported at 26 / City of Federal Way market value because the employer's liability to each participant is measured by the participants share of the market value of the plan assets. Receivables Taxes receivable consist of measurable and available locally levied taxes and related interest and penalties. Included are property taxes, the local option sales tax, the local real estate excise tax, and motor vehicle fuel taxes. The Due From Other Governments receivable reflects measurable and available intergovernmental grants, entitlements, or State shared revenues (taxes/charges levied and collected by an intermediary collecting government and distributed on some basis); loans; and charges for services rendered by the City for another government unit. Amounts Due to and from Other Funds: Interf nd Loan These accounts include all interfund receivables and payables. A separate schedule of interfund loans receivable and payable is furnished in Note 14. Loans between funds must be specifically authorized by Council resolution. In the governmental funds, loans to other funds are offset by a corresponding reservation of fund balance to indicate that the outstanding loan amounts do not constitute "available spendable resources' and are, therefore, not available for appropriation. Inventories Inventories in the governmental funds are recorded as expenditures at the time of purchase. Amounts remaining at year end are immaterial and, therefore, are not reflected on the balance sheets of those funds. Fixed Assets The accounting and reporting treatment of fixed assets is determined by the measurement focus used by the fund which acquires them. Fixed assets purchased or constructed by a governmental fund are recorded as expenditures in that fund at the time related purchases are made; however, the associated fixed asset is recorded in the General Fixed Assets Account Group. All purchased fixed assets are valued at cost. Donated fixed assets are valued at their estimated fair market value on the date received. The City does not capitalize "infrastructure" assets such as roads, bridges, curbs and gutters, streets and sidewalks, and lighting systems. Costs of normal maintenance and repair for general fixed assets are also not capitalized. However, any improvement that increases an asset's value, or materially extends its life or potential uses is added to that asset's capitalized cost. Equipment items and real property acquired through capital lease agreements or conditional sales contracts are recorded in the General Fixed Assets Account Group or proprietary fund, as appropriate, at the inception of the agreement and in accordance with criteria established in SFAS #13. Fixed assets acquired or constructed by the proprietary funds are capitalized in those funds at historical cost. Contributed assets are recorded at their estimated market values as of the date they are acquired. The estimated value of donated assets is recorded as contributed capital by the fund which receives them. During 1991 the City borrowed no funds to finance the construction of proprietary fund fixed assets. No depreciation is recorded on the fixed assets in the General Fixed Assets Account Group. Annual depreciation for the proprietary fixed assets is shown as an expense by the related funds. Related depreciation is computed on a straight-line basis, using varying estimated service lives for individual assets and asset classifications depending on particular characteristics of an asset and factors surrounding its anticipated use. City of Federal Way / 27 The average service lives used to calculate depreciation for specific categories of assets in the City's internal service funds are summarized below. Assets are not depreciated in the year of acquisition but are depreciated in the year of retirement or disposal. Estimated Service Asset Class Life in Years Office Furniture & Fixtures 10 Computer/Data Handling Equipment 6 Communications Equipment 10 Recreation Equipment 10 Parks Equipment 12 Automobiles 5 Light Trucks 5 Heavy Trucks 8 Heavy Work Equipment 10 Shop/Miscellaneous Equipment 10 Land Improvements 20 Buildings 40 Other Assets and Debits These accounts reflect future resources needed to retire general long-term debt principal and amounts currently available in debt service or other funds to retire general long-term debt. omgensated Absences -Accrued Emolovee Vacation Under guidance provided by NCGA-4 and FASB 43, the City records a liability for all outstanding vacation pay. Accrued vacation pay for governmental fund employees is recorded in the General Long -Term Debt Account Group, since it is not considered due and payable at year end from expendable available financial resources. Accrued vacation pay for proprietary fund employees is recorded as an expense and liability in the appropriate proprietary fund. Employee vacation leave is accumulated monthly at rates ranging from 10 to 15 days per year depending on term of employment. Employees may accumulate up to a maximum of 180 hours of vacation leave. All outstanding vacation leave is payable upon termination of employment. Sick leave may be accumulated up to a maximum of 720 hours, per City policy. The monthly accrual rate for City employees is 8 hours per month. Accumulated sick leave is not payable upon termination of employment. Outstanding sick leave at year end is not accrued by the governmental funds due to the difficulty in estimating the portion of existing balances likely to result in expenditures in future periods. During 1991, City employees were not represented by bargaining units and therefore no exceptions to the above policies exist. Lona-term Debt As previously explained, long-term liabilities expected to be paid by the governmental funds are recorded in the General Long-term Debt Account Group. Long-term debt for proprietary funds will be recorded as a liability by the fund responsible for the related debt repayment. Long-term debt outstanding at year end is outlined in Note 13. Deferred Revenues The deferred revenues account is used to offset receivables established in the governmental funds for certain revenues that are measurable but not considered available to finance payment of current obligations and, therefore, are not susceptible to accrual on the modified accrual basis. When the receivable amounts are collected in future 28 / City of Federal Way periods, this liability account is reduced and corresponding revenue is recorded. Revenues presented in this manner on the accompanying financial statements are delinquent property taxes. Fund Etluity-Reserves and Designations Reserves represent portions of fund equity that are legally restricted for a specific future purpose or not available for appropriation because they do not represent a current expendable resource. Designations of fund balance identify amounts set aside by management for tentative future purposes or administrative convenience. In governmental funds, fund balance that is legally restricted for future purposes include reserves for: a) future general fund contingencies; b) future equipment replacement; and c) future debt service/LID default obligations. Fund equity not available for expenditure in the governmental funds consists of the outstanding balances of current interfund loans. On December 31, 1991, $60,000 in non -interest bearing loans from the General Fund to the City's two grant funds were authorized by the City Council as interim financing. In addition to the reserved equity amounts, a portion of the fund balance in the General Fund has been designated by management for Petty Cash and Travel Advance purposes. Internal Service Funds During 1991 the City established five internal service funds to account for activities related to risk management, data processing/telecommunications, support services, fleet and equipment, and building and furnishings. Operational and depreciation related replacement charges to user organizations are based on office staff counts equipment used, and specific depreciation schedules. Depreciation is not recorded until the year following acquisition. It is recorded in the year of disposal or retirement. Residual equity transfers are received from other City funds to finance first-time asset acquisition. City ordinances require that reimbursements be made to user organizations for any user charges made in excess of actual costs. Upon implementing this policy in 1991, a calculation error was made which caused a $4,630 excess reimbursement from the Building/Furnishings Fund, therefore causing a retained earnings deficit, though year-end equity was positive. This deficit will be resolved through user charges in 1992. Interfund Transactions There are four types of transactions between funds - interfund loans, quasi -external transactions, interfund reimbursements, and interfund transfers. Interfund loans are temporary borrowings of cash which do not affect operating statements, but which may incur interest expense or expenditure to the borrowing fund. Quasi -external transactions are equivalent to buying goods or services from an outside vendor. They are accounted for by the related funds as revenues, expenditures or expenses. Interfund reimbursements are repayments to a fund for expenditures or expenses which belong to another fund. They involve only expenditure or expense accounts. Interfund transfers are either residual equity in nature or operating transfers. Operating transfers are the equivalent of operating subsidies. They are accounted for as "other financing sources and uses" in all funds and are therefore included in the operating statements. Residual equity transfers are used to close out a discontinued fund or make one-time contributions to a new fund, to record the interfund equivalent to a capital grant or its repayment (involving a proprietary fund), or to make contributions to an internal service fund to establish or increase its working capital or make repayments of such contributions. In 1991 the City recorded a number of such transfers to internal service funds to fund the acquisition of new assets. A schedule of interfund transfers is furnished in Note 14, Interfund Transactions. Comparative Data Comparative totals for the prior years are not presented on financial statements, as the City was incorporated on February 28, 1990 thereby providing only ten months of history for 1990. Future financial statements will provide this comparative data. City of Federal Way / 29 Total Columns on Combined Statements - Overview Total columns on the general purpose financial statements are provided to facilitate financial analysis. This data, however, is captioned 'Memorandum Only' to indicate that it does not present financial position, results or operations or changes in financial position for the governmental unit as a whole in accordance with generally accepted accounting principles. Data contained in these columns is not comparable to a consolidation, and interfund eliminations have not been made in aggregating reported values. NOTE 2: Stewardship, Compliance and Accountability Legal Budgetary Compliance There have been no material violations of finance -related legal or contractual provisions, and there have been no expenditures exceeding legal appropriations in any of the funds of the City. There exists no City fund having a negative fund balance or negative equity at year end. NOTE 3: Supplemental Appropriations Operating Budget Funds Appropriations established during 1991 for the City's operating budget funds are provided below. As explained in Note 1, both original and supplemental appropriations are adopted by the City Council by ordinance. Appropriation amounts shown on the accompanying financial statements reflect final budget values, including all adopted adjustments to original budget amounts. 1991 ORIGINAL BUDGET General Fund 8 14,500,700 Special Revenue Funds: Street Fund 4,551,700 Arterial Street Fund 889,700 1st '/. % Real Estate Excise Tax Fund 939,000 2nd '/. % Real Estate Excise Tax Fund 0 Paths and Trails Reserve Fund 8,600 Surface Water Management Fund 1,501,000 Total Special Revenue Funds 7,890,000 Debt Service Fund 416,000 Total $22,806.700 1991 SUPPLEMENTAL APPROPRIATIONS $ 7,000,000 658,800 658,800 $2,658,800 1991 FINAL BUDGET $16, 500,700 4,551,700 889,700 939,000 658,800 8,600 1,501,000 8,548,800 416,000 $25,465,500 30 / City of Federal Way Funds Budgeted on a Project -Length Basis During 1991, the CityCouncil adopted appropriations for funds budgeted on a 'project -length" basis. As explained in Note 1, appropriations for these funds are continuing in nature and do not lapse at the end of the year. Amounts appropriated during 1991 and total appropriations through December 31, 1991 for the funds budgeted in this manner are provided below: TOTAL 1991 APPROPRIATIONS SUPPLEMENTAL THROUGH PRIOR YEAR APPROPRIATIONS Capital Project Funds: 1990 Capital Project Fund $1,710,000 1991 Capital Project Fund Total Capital Project Funds $1,710,000 Special Revenue Funds: Grant - Miscellaneous Governmental Fund Community Development Block Grant Fund 12, 500,000 $12,500,000 157,500 305,000 TOTAL APPROPRIATIONS THROUGH 12/31/91 $ 1,710,000 12,500,000 $14, 210, 000 157,500 305,000 Total Special Revenue Funds --- 462,500 462,500 Total $1,710,000 $12,962,500 $14,672,500 The City's Strategic Reserve Fund was not budgeted for 1991. NOTE 4: Cash and Investments As required by state law, all deposits and investments of the City's funds are obligations of the U.S. Government, the State Treasurer's Investment Pool, bankers' acceptances, or deposits with Washington State banks and savings and loan institutions. In 1991 the City utilized the State Investment Pool and deposits in Washington State banks. The City's investment policies are described -in Note 1. Cash and Deposits At December 31, 1991, the carrying amount of the City's fully insured temporary investments with the State Pool was $10,690,784. The City's checking account balance was $(11,436). No deposits were uninsured or uncollateralized. Insurance coverage up to $100,000 is through federal depository insurance and the Washington Public Deposit Protection Commission (WPDPC) for amounts over $100,000. Under State statute, members of WPDPC, a multiple -financial institution collateral pool, may be assessed on a prorated basis if the pool's collateral is insufficient to cover a loss. Except for interest earned by the City's retirement expendable trust and internal service funds, all interest earnings were credited to the General Fund. At December 31, 1991, the City's total deposits and investments consisted of the following: Puget Sound Bank, Checking Account Assets with FWRS Plan Administrator Assets in ICMA Deferred Compensation Plan Cash Equivalents with State Treasurer's Investment Pool Petty Cash and Other Total Cash and Investments $ ( 11,436) 545,906 224,971 10,690,784 5,600 $1 1,455,825 City of Federal Way / 31 Investments Categorization of the City's investments is applicable only to investments held for the City's Federal Way Retirement System Plan, which reflects a replacement of Federal Social Security (see Note 8). The City's investments are categorized to give an indication of the risk assumed at year-end. The following summary shows the City's investments at year-end categorized by risk. Category 1 includes investments that are either insured, registered or held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments which are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or its trust department or agent, but not in the City's name. Repurchase Agreements U.S. Government Securities -Treasury Notes U.S. Common Stock International Stock Total Money Market Funds Total Federal Way Retirement System Assets Investment in State Treasurer's Investment Pool Investment in Deferred Compensation Total Investments Property Taxes Category Carrying Market t 2 3 Amount Value 8 — _ — $—-- 109,681 109,681 114,098 -- 353,605 — 386.278 16,370 369,975 21,677 $ 8 479,656 $ — $ 479,656 $ 522,053 66.250 66,250 NOTE 5: Receivables $ 545,906 10,690,784 $ 588,303 10.690,784 $ 11,461,661 $11,W4,058 The King County Treasurer is responsible for collecting all property taxes levied in the County by taxing districts. Amounts collected by the County on the City's behalf are remitted daily. As described in Note 1, taxes are levied and become an enforceable lien against properties as of January 1. At December 31, 1991, the total balance of property taxes receivable recorded by the City was $294,063. Of this, $256,983 is recorded as a deferred revenue, since it was not coflected within the first 60 days of 1992. The property tax levy calendar in 1991 was: 32 / City of Federal Way PROPERTY TAX CALENDAR January 1 Taxes are levied and become an enforceable lien against properties. February 14 Tax bills are mailed. April 30 First of two equal installment payments is due. May 31 Assessed value of property established for next year's levy at 100 percent of market value. October 31 Second installment is due. Property taxes are recorded as a receivable when levied, offset by a deferred revenue. During the year, property tax revenues are recognized when cash is collected. At year-end, property tax revenues are recognized for collections expected to occur within 60 days. No allowance for uncollectible taxes is established because delinquent taxes are considered fully collectible. Under State Law, cities may levy up to $3.60 per $1,000 of assessed valuation for general governmental services, subject to two limitations: Washington State law in RCW 84.55.010 limits the growth of regular property taxes to 6 percent per year, after adjustments for new construction. If the assessed valuation increases by more than 6 percent due to revaluation, the levy rate will be decreased. 2. The Washington State Constitution limits the total regular property taxes to I % of assessed valuation or $10 per $1,000 of value. If the taxes of all districts exceed this amount, each is proportionately reduced until the total is at or below the I % limit. The City's regular levy for 1991 was approximately $1.48 per $1,000 on an assessed valuation of $3,093,528,051 for a total regular levy of $4,582,620. NOTE 6: Intergovernmental Grants and Entitlements The City receives intergovernmental revenues from federal, state and local government jurisdictions. They are recognized as revenues based on the method of accounting used by the particular fund that receives the resource. During 1991 the City's governmental funds received federal, state and local grants. These are reported to the State Auditor in a Schedule of Financial Assistance and are summarized below: City of Federal Way / 33 GRANT BALANCE GRANTOR PROGRAM AWARD REVENUE 12/31/91 HUD Community Development Block Grant $305,000 $60,083 $244,917 State of Washington Growth Management 82,565 82,565 0 King County, Washington Waste Reduction and Recycling 35,000 30,805 4,195' Conservation Futures 100,000 100,000 0 BPA Trail Design 30,000 30,000 0 City Center Park 403,699 403,699 0 Total All Grants $956,264 $707,152 $249,112 Grant award expired on December 31, 1991. The $4,195 balance of the award is unavailable. NOTE 7: Fixed Assets and Depreciation General Policies Major expenditures for fixed assets, including capital leases and major repairs that increase useful lives, are capitalized. Maintenance, repairs, and minor renewals are accounted for as expenditures or expenses when incurred. (Obligations under capital leases are disclosed in Note 11.) The City has adopted a general fixed asset capitalization policy where an item's cost must equal or exceed $1,000. All fixed assets are valued at historical cost (or estimated cost, where historical cost is not known/or estimated market value for donated assets). General Fixed Assets General fixed assets are long-lived assets of the City as a whole. When purchased, leased, or constructed, such assets are recorded as expenditures in the governmental funds and capitalized in the general fixed assets account group. No depreciation has been provided on general fixed assets, nor has interest been capitalized. General fixed assets that are infrastructure assets (such as roads, bridges, curbs, and sidewalks) are considered public property and are not accounted for in the general fixed assets account group. A summary of changes in general fixed assets follows: BALANCE JANUARY 1, 1991 ADDITIONS Land Machinery & Equipment Buildings Assets Under Capital Lease - Equipment Total 8 508,492 685,224 8,300 $ 1,202,016 8 21,496,369 597,211 334,000 1,003,722 8 23,431,302 DELETIONS S -- 1,102,264 8,300 8 1,110,564 BALANCE DECEMBER 31, 1991 $ 22,004,861 180,171 334,000 1,003,722 $ 23,522,754 34 / City of Federal Way NOTE 8: PENSION PLANS Substantially all City full-time and qualifying part-time employees participate in one of the following statewide local government retirement systems administered by the Department of Retirement Systems, under cost -sharing multiple - employer public employee retirement systems. SUMMARY OF SYSTEMS' ACTUARIAL DATA (In Whone of Dollars) As of December 31. 1990 PERS LEOFF Total Pension Benefit Obligation $7,993 $3,61 1 Less Net Assets Available for Benefits 6,428 2,528 Unfunded (Surplus) Actuarial Present Value of Accumulated Plan Benefits $1,565 $1,083 VOLUNTEER FIREFIGHTERS $ 41 46 $(5) The amount shown as total pension benefit obligation is the actuarial present value of credited projected benefits, adjusted for the effects of projected salary increases and any step -rate benefits (LEOFF only) estimated to be payable in the future as a result of employee service to date. Use of the standardized measure enable readers of Washington's financial statements to: (a) assess on an ongoing basis the funding status of each system; (b) assess progress made in accumulating sufficient assets to pay benefits when due; and (c) make comparisons among other states or other retirement systems. The standardized disclosure method is independent of the actuarial funding method used to determine contributions to the retirement system. Historical trend information showing each system's progress in accumulating sufficient assets to pay benefits when due is presented in the State of Washington's June 30, 1991 comprehensive -annual financial report. Please refer to said report for detailed trend information. Public Employees' Retirement System (PERS) The state legislature established PERS in 1947 under Chapter 41.40 RCW. PERS is a cost -sharing multiple - employer system. Membership is mandatory for all City employees working 90 hours per month for five months out of any twelve month period. Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts (other than judges); employees of legislative committees; college and university employees not in national higher education retirement programs; judges of district and municipal courts; noncertificated employees of school districts; and employees of local government. Approximately 50 percent of PERS members are state employees. PERS contains 2 "plans". (As used in this context,, the term "plans" refers to tiers within PERS. The actual plan is PERS.) Participants who joined the system by September 30, 1977, are Plan I members. Those joining thereafter are enrolled in Plan H. Retirement benefits are financed from employee and employer contributions and investment earnings. Retirement benefits in both Plan I and Plan Il are vested after completion of 5 years of eligible service. Plan I members are eligible for retirement after 30 years of service, or at the age of 60 with 5 years of service, or City of Federal Way / 35 at the age of 55 with 25 years of service. 'Ile annual pension is 2 percent of the final average salary per year of service, capped at 60 percent. Plan II members may retire at the age of 65 with 5 years of service, or at 55 with 20 years of service, with an allowance of 2 percent per year of service of the final average salary. Plan Il retirements prior to 65 are actuarially reduced. There is no cap on years of service credit and a cost -of --living allowance is granted, capped at J percent annually. During the 1990 Washington Legislative session a cost of living adjustment (COLA) was granted to PERS I members, effective February 1992. The COLA is initiated when the annuitants real purchasing power of the monthly benefit is less than 60 percent of the benefit at age 65. The benefit increase ceases after the June 1993 payment is made. The City's covered payroll for year ending December 31, 1991 was $2,560,331. The City's total current -year payroll for all employees was $2,843,371. Each biennium the legislature establishes Plan I employer contribution rates and Plan II employer and employee contribution rates. Employee contribution rates for Plan I are established by legislative statute and do not vary from year to year. Employer rates for Plan I are not necessarily adequate to fully fund the system. The employer and employee contribution rates for Plan IT are developed by the Office of State Actuary to fully fund the system. All employers are required to contribute at the level established by the legislature. The methods used to determine the contribution requirements were established under state statute. The City's contribution rates expressed as a percentage of covered payroll, as of December 31, 1991 were: PERS Plan I PERS Plan 11 REQUIRED ACTUAL REQUIRED ACTUAL Employer 7.33% 7.72% 7.33% 7.72% Employee 6.00% 6.00% 4.85% 4.70% Total 13.33% 13.72% 12.18% 12.42% The City's actuarially -determined contribution requirement and actual contribution for the year ending December 31, 1991 were: PERS Plan I PERS Plan II REQUIRED ACTUAL REQUIRED ACTUAL Employer $37,096 $39,069 $150,557 $158,588 Employee 30,365 30,365 99,631 96,550 Total $67,461 $69,434 $250,208 $255,138 The City's actuarially determined employer contribution requirement represents approximately .0644 percent of the total for all employers covered by PERS. Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) As of December 31, 1991, the City had no LEOFF Plan employees since it purchased police services from King County and its residents voted to annex to Fire District i139 for fire services. LEOFF Plan information is therefore provided as supplemental information to the reader, as those entities providing police and fire services to Federal Way have LEOFF Plan employees. 36 / City of Federal Way LEOFF was established in 1970 by the legislature under Chapter 41.26 RCW. LEOFF is a cost -sharing multiple - employer retirement system. Membership includes all full-time, fully compensated, local law enforcement officers and fire fighters. Retirement benefits are financed by employee and employer contributions, investment earnings and legislative appropriation. LEOFF is comprised solely of non -State employees. LEOFF system contains 2 plans. Participants who joined the system by September 30, 1977, are Plan I members. Those who joined thereafter are enrolled in Plan 11. Retirement benefits are vested after completion of 5 years of eligible service. Plan I participants are eligible to retire with 5 years of service at age 50. The benefit per year of service is as follows: TERM OF SERVICE PERCENT OF FINAL AVERAG 20 + 2.0% 10-20 1.5 5-10 1.0 The final average salary is based on salary received during the last 2 years of service. Substantial disability and death benefits are provided by the plan. Retirement benefits are indexed to the Seattle area consumer price index. Plan II participants are eligible to retire at the age of 50 with 20 years of service or at 58 with 5 years of service. Retirement benefits prior to age 58 are actuarially reduced. The benefit is 2 percent of average salary per year of service. The average salary is based on the highest 5-year period. Retirement benefits are indexed to the consumer price index with a cap of 3 percent annually. Death and disability benefits are also provided. These benefit provisions were established under the authority of legislative statute. LEOFF had no material changes in benefit provisions for this year. Employer and employee contribution rates for Plan II are developed by the Office of State Actuary to fully fund the system. Plan II employers and employees are required to pay at the level established by the legislature. Plan I employers and employees are required to contribute at a rate of 6 percent and the State is responsible for the balance of the funding. The methods used to determine the contribution requirements were established under the authority of legislative statute. Other Local Government Pension Systems - City of Federal Way - Employees' Retirement System The City is also administrator of a defined contribution pension retirement system called the Federal Way Retirement System. The system has been classified as an expendable trust fund in the financial reports of the City. It is classified as such because 1) it is a defined contribution plan, not a defined benefit plan; and 2) the plan does not call for any predetermined funds to be available for benefits at a particular time (no actuarial requirements regarding benefits or city requirements exist). During 1991, there were a total of 184 individuals covered by this system. As of the end of the year, 134 remained as active employees of the City and none were drawing retirement benefits. The 50 inactive had left the City's employment and either had been reimbursed their contributions or the reimbursement was pending. Effective June 1, 1990, the Federal Way City Council established the Federal Way Employees' Retirement System, per City ordinance 90-74 and as authorized by the Federal Social Security Act (42 USCA, Section 418 (g)). The Retirement System is a defined contribution pension plan which was established as an alternative to the Federal Social Security System. All employees of the City of Federal Way are required to participate in the system, with the City matching the employee's required contribution. The employee pays 6.2 % and this is matched by the composite of a cash match (approximately 5.2 %) and insurance payments (1 %) for disability, survivor, accidental death and dismemberment, City of Federal Way / 37 and lump sum death benefit coverages. The City's contribution mix is actuarily determined annually. Contributions into the plan are tax deferred until such time as withdrawal. Employees are entitled to make voluntary contributions to the plan, assuming that highly compensated and non - highly compensated employees are treated equally. Each payroll period, employees may make a voluntary contribution equal to a minimum of I % of the participant's compensation, not to exceed 14 % of the participant's compensation. Covered payroll for 1991 was $2,590,254 and total City payroll was $2.843,371. Actual City contributions for the year were $134,748. Actual employee contributions were $160,596. All contributions were invested in the State Pool through October 7 and thereafter in instruments arranged through independent investment advisors selected by the City but administered through Dean Witter Reynolds, Inc.. Retirement System assets are not the property of the City and are not subject to the claims of the City's general creditors. The Federal Way Retirement System assets are with Dean Witter Reynolds Incorporated who invests Plan assets. At year end these assets amounted to $545,906 and were comprised of U.S. Treasury Notes ($109,681), U.S. common stock ($353,605), international stock ($16,370), and money market securities ($66,250). The consulting actuary firm of Milliman & Robertson, Inc. has been contracted to provide record -keeping, administrative and consulting services related to the Plan. Actuarial determinations are not required because accidental death and dismemberment insurance, long-term disability, survivor income insurance and the lump sum death benefit are provided by a group insurance policy with Standard Insurance Company; and benefits paid to participants upon retirement are limited to (a) a nonforfeitable, nontransferable annuity contract purchased by the plan's trustee, (b) retirement benefits paid from the employee's account to which no contributions by the City or the participant can be added after retirement, or (c) a single lump - sum payment equal to the accumulated balance in the employee's account as of his retirement date. NOTE 9: Other Employee Benefits Deferred Compensation The City offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. This multi -jurisdictional plan administered by the ICMA Retirement Corporation permits employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, or unforeseeable emergency; or upon death, to their beneficiaries. Compensation deferred under the plan and all income attributable to the plan are solely the property of the City. The City's rights to this property are subject only to the claims of the City's general creditors until paid to the employee or other beneficiary and are not restricted to the benefit provisions under the plan. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is highly unlikely that it will use the assets to satisfy the claims of general creditors in the future. At December 31, 1991, $224,971 of the plan's balance was applicable to the City. Deferred compensation plan investments are recorded at market value, along with the corresponding liability, in the Deferred Compensation agency fund. 38 / City of Federal Way Compensated Absences As explained in Note 1, the City's liability for accrued employee vacation balances for governmental fund employees is recorded in the General Long-term Debt Account Group. Balances for proprietary funds are recorded as liabilities in the specific fund expected to incur the related future expense. The total liability by fund type for accrued employee vacation as of December 31, 1991, is provided below: Governmental Funds (recorded in the General Long-term Debt Account Group) S85,145 Internal Service Funds 2,088 Total Compensated Absences SJ7.233 NOTE 10: Risk Management The City maintains insurance against most normal hazards except for unemployment insurance where it has elected to become fully self -insured. Related premiums received by the Risk Management Fund are used to reimburse the State Employment Security Department for unemployment benefits paid to eligible individuals, and to establish reserves for the payment of estimated future unemployment claims liability. Through its Risk Management Fund, the city is also recovering insurance premium costs for general liability coverage and building reserves for a future general liability self-insurance program. During 1991 the City purchased commercial insurance policies from commercial insurers. A summary of coverages in force during 1991 is presented below: NAME OF COMPANY COVERAGE t1ABIUTY LIMITS Hartford Casualty Insurance Excess liability for general liability, law $5,000,000/claim enforcement, auto, and public officials. $5,000,000 aggregate Deductible - $0 Auto liability with limited physical 32,000,000/occurrence damage and no medical $2,000,000 aggregate Deductible - $1,000 collision $ 250 comprehensive Hartford Steam Boiler & Boiler and machinery $350,000/accident Inspection $350,000/extra expense $25,000 each for identified costs Deductible - $1,000 to $2,500 Hartford Insurance Company Inland marine Co-insurance 90% of the Midwest $100,000/accident + $25,000 $25,000 each for identified costs Deductible - $250 Personal property Co-insurance 100% $2,315,000 $100,000 extra expense Deductible - $2,500/occurrence City of Federal Way / 39 NAME OF COMPANY COVERAGE LIABILFTY LIMITS Nutmeg Insurance Public officials liability $2,000,000/occurrence $2,000,000 aggregate Deductible - $2,500 Twin City Fire Insurance General liability $2,000,000/occurrence $2.000,000 aggregate Deductible - $0 Employer's liability & stop gap $1,000,000/occurrence $1,000,000 aggregate Law Enforcement $2,000,000/occurrence $2,000,000 aggregate Deductible - $2.000 Fidelity & Deposit Company of Public Official Bonds: Maryland Finance Director $250,000 Chief of Police $ 50,000 City Clerk $ 50.000 City Manager $250,000 Public Employee Dishonesty: City employees $250,000 City Council & Purchasing Manager $250,000 During 1991, the City used the Risk Management internal service fund to account for its risk financing activities. It is the opinion of the City's legal staff that at year end there were no outstanding claims that met expenditure accrual or loss disclosure criteria specified in GASB 10. The City's industrial insurance is provided by Washington State and is administered by the Department of Labor and Industries. Coverage is purchased by means of standard rates per working hour and is computed by the total number of hours worked by employees multiplied by the basic premium rate assigned to the business risk classification. The following are benefits provided by industrial insurance: medical services, damaged clothing, travel expenses, time -loss payments, vocational rehabilitation, partial disability awards, pension awards and survivor benefits. NOTE 11: Leases and Other Contractual Commitments Capital Leases The City has entered into lease agreements as lessee for financing the acquisition of office equipment and real property. Office equipment was purchased in 1990 by the General Fund and donated to the Support Services internal service fund at the beginning of 1991. In 1991 the City's General Fund purchased a land parcrl. Both acquisitions qualify as capital leases for accounting purposes, and therefore have been recorded at the lesser of market value or the present value of the future minimum lease payments at the date of their inception. The City accounts for lease payments on the equipment lease in the internal service fund and for the payments on the land acquisition in its Debt Service Fund. The following is an analysis of equipment leased under capital leases as of December 31, 1991: 40 / City of Federal Way Assets Acquired Through Capital Lease Agreements: Machinery and Equipment Less: accumulated depreciation Land Carrying Value General Fixed Internal Servica Assets Fund $ $ 7,033 - 1,172 1,003,722 $ 1,003,722 $ 5,861 Future Minimum Lease Payment by Year, as of December 31, 1991: 1992 1993 1994 1995 1996 1997-2006 INTERNAL SERVICE FUND $ 885 LONG-TERM DEBT ACCOUNT GROUP $ 150,556 157,065 158,565 154,627 155,503 1,537,158 Total Minimum Lease Payments $ 885 $2,313,474 Less Amount Representing Imputed Interest -- 1,309,752 Present Value of Minimum Lease Payments $ 885 $1,003,722' SFAS 13 requires that the lease must be recorded at the lesser of the fair market value ($1,450,000) or the present valueofthe minimum lease payments-(81,003,722) at the inception of the lease. - - - Operating Leases The City has various current lease commitments for rental of office space and facilities and miscellaneous equipment items not intended to be purchased when the lease term has ended. Leases of real property currently extend into 1995. The following is a schedule by year of future minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 1991: INTERNAL SERVICE FUND 1992 141,574 1993 150,749 1994 152,584 1995 161,760 City of Federal Way / 41 Other Contractual Commitments As of December 31, 1991, the City had other outstanding contractual commitments of $495,441 for engineering and other professional services. The City's total outstanding contract obligations by fund type, as of December 31, 1991, are summarized below: General Fund Special Revenue Funds Total Contractual Commitments NOTE 12: Estimated Arbitrage Rebate 19.977 $ 475,464 495,441 The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to the United States Treasury of investment interest received at yields that exceed the issuer's tax-exempt borrowing rates. Payments of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every five years. The City's estimated rebatable arbitrage amount as of December 31, 1991 is $-0- for its two tax-exempt general obligation bond issues subject to the Tax Reform Act issued through that date. NOTE 13: Long -Term Debt The various categories of long-term debt reflected on the City's financial statements are briefly described in the following paragraphs. 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 facilities or equipment. "Councilmanic Bonds' are general obligation bonds issued by City Council without voter approval. Under State law, repayment of these bonds must be financed from general City revenues since no additional property taxes can be levied to support related debt service payments. General Obligation bonds approved by the voters are typically repaid through an annual "excess" property tax levy authorized for this purpose by State statute. At year end 1991 the City had no voter approved bonds outstanding. Although general obligation bonds may be issued to support proprietary fund activity, the City has issued these bonds for general government purposes only. Therefore, associated debt is recorded in the General Long-term Debt Account Group and annual principal and interest payments are recorded as expenditures by the City's debt service fund. Other long-term debt incurred by governmental funds include capital lease agreements for the purchase of real property. General government obligations are recorded in the General Long-term Debt Account Group, and annual debt service is recorded in the City's debt service fund. 42 / City of Federal Way Since pending loss claims are immaterial and fully covered by purchased insurance, they are not accrued in the General Long-term Debt Account Group. Debt Issued Prior to 1991 On November 1, 1990, the City issued $1,710,000 in limited tax general obligation bonds, which will mature serially over the five year life of the issue. The last bonds will mature on December 1, 1995. The bonds carry a face interest rate ranging from 5.9 % to 6.3 %, but were issued at a discount of $4,104 resulting in a True Interest Cost (TIC) of 6.252002% and a net Interest Cost (NIC) of 6.249283%. These bonds were issued to finance the renovation and equipping of City Hall building and to purchase the Golfun property for park and other municipal purposes. Debt Issued in 1991 On February 19, 1991 the City issued limited tax general obligation bonds (dated February 1, 1991) in the amount of $12,500,000. These bonds were issued for the purpose of providing funds for the acquisition of 83.5 acres of land for parks and for other municipal purposes. These bonds will mature serially over the 30 year life of the issue. The last bonds will mature on December 1, 2021. The bonds carry a face interest rate ranging from 6.0% to 9.0%. The net interest cost (NIC) on this issue was 6.833465%. This issue carried an W bond rating with Moody's Standard & Poors, and Fitch. On September 25, 1991 the City issued $1,450,000 in Certificates of Participation in conjunction with a ground lease having the option to purchase 16.4 acres of land expected to be used for park and other City purposes. The last certificates have a scheduled redemption date of December 1, 2006. These certificates were issued at par and carry a face interest rate ranging from 4.75 % to 6.8 %. They were issued at a rate equal to that of a similar G.O. bond issue. The net interest cost (NIC) on this issue was 6.502 % and its True Interest Cost (TIC) was 6.49631 %. The following two statements of long-term debt provide a listing of the outstanding debt of the City and summarizes the City's debt transactions for 1991: STATEMENT OF GENERAL LONG-TERM DEBT December 31, 1991 Amounts Avail —able to be -Provided for the Payment of General Long -Term Debt Amount to be Provided for the Retirement of: G.O. Bonds Compensated Absences Lease Contracts Amount Available in Debt Service Funds Total Amount Available and to be Provided General Long -Term Debt Payable General Obligation Bonds Compensated Absences - Vacation Lease Contracts Total General Long -Term Debt 11,805,057 85,145 1,003,722 $ 2,104,943 $ 14,998,867 13,910,000 85,145 1,003,722 14,998,867 City of Federal Way / 43 STATEMENT OF CHANGES IN LONG-TERM DEBT Period Endad Dscarnber 31. 1991 IIn Thousands of Dollars) CAPITALIZED GENERAL LEASE ACCRUED VACATION, OBLIGATION BONDS OBLIGATIONS CLAIMS & JUDGMENTS TOTAL Outstanding at $ 1,710.0 $ 5.9 $ 38.8 $ 1,754.7 December 31, 1990 Additions: New Debt Issued or Acquired: 1991 G.O. Bonds 12.500.0 — — 12,500.0 Capitalized Lease Obligations ---• 1,003.7 -- 1,003.7 Increase in Accrued Vacation — --- 46.4 46.4 Total Additions $ 12,500.0 S 1.003.7 $ 46.4 $ 13,550.1 Reductions: G.O. Bonds (300.0) — --- (300.0) Capitalized Lease Obligations (5.9) (5.9) Total Reductions $ (300.0) $ (5.9) $ $ (305.9) Outstanding at December 31, 1991 $ 13,910.0 $ 1,003.7 $ 85.2 $ 14,998.9 Presented below is a summary of the City's debt service requirements to maturity by year for all outstanding debt other than compensated absences: ANNUAL DEBT SERVICE PAYMENTS TO MATURITY fin Thousands of Dollars) GENERAL OBLIGATION CAPITAL LEASE BONDED DEBT OBLIGATIONS 1992 $ 1,982.7 $ 150.6 1993 1,267.2 157.1 1994 1,271.5 158.6 1995 1,413.9 154.6 1996 1,025.9 155.5 Thereafter 25,862.1 1,537.1 TOTALS $ 32,823.3 $ 2,313.5 TOTAL DEBT $ 2,133.3 1,424.3 1,430.1 1,568.5 1,181.4 27,399.2 $ 35,136.8 44 / City of Federal Way SCHEDULE OF ANNUAL DEBT SERVICE REQUIREMENTS TO MATURITY GENERAL OBLIGATION BONDS TOTAL ANNUAL YEAR PRINCIPAL INTEREST REQUIREMENTS 1992 $ 320,000 $ 1,662.749 $ 1,982,749 1993 340,000 927,220 1,267,220 1994 365,000 906,480 1,271,480 1995 530,000 883,850 1,413,850 1996 175,000 850,895 1,025,895 1997 185,000 840,395 1,025,395 1998 195,000 823,745 1,018,745 1999 210,000 806,195 1,016, 195 2000 225,000 787,295 1,012,295 2001 240,000 767,045 1,007,045 2002 260,000 751,925 1,01 1,925 2003 275,000 735,415 1,010,415 2004 300,000 717,815 1,017, 815 2005 325,000 698,465 1,023,465 2006 350,000 677,340 1,027,340 2007 375,000 654,415 1,029.415 2008 400,000 629,665 1,029,665 2009 430,000 603,065 1,033,065 2010 465,000 574,255 1,039,255 2011 500,000 542,867 1,042, 867 2012 535,000 509,118 1,044,1 18 2013 575,000 472,737 1,047,737 2014 620,000 433,638 1,053,638 2015 665,000 391,478 1,056,478 2016 715,000 345,925 1,060,925 2017 765,000 296,948 1,061,948 2018 825,000 244,545 1,069,545 2019 885,000 188,032 1,073,032 2020 950,000 127,410 1,077,410 2021 910,000 62,335 972,335 TOTALS $13,910,000 $18,913,262 $32,823,262 SCHEDULE OF OTHER LONG-TERM DEBT OUTSTANDING DECEMBER 31. 1991 DEBT ISSUE MATURITY ORIGINAL REDEMPTION OUTSTANDING DATE DATE DEBT ISSUE TO DATE DECEMBER 31, 1991 Capital Leases: Campus Center Property 1991 2006 $1,450,000 $ 0 $1,450,000' Total Capital Leases $1,450,000 $ 0 $1,450,000' Total Other Long -Term Debt $1,450,000 $ 0 $1,450,000' Recorded in the financial statements at $1,003,722, which represents the present value of minimum lease payments at the inception of the lease. City of Federal Way / 45 Computation of Legal Debt Margin Under Washington State law (RCW 39.36.020), a City may incur general obligation debt for general city purposes in an amount not to exceed 2-1/2 percent of the value of all taxable property within the City. State law requires all property to be assessed at 100 percent of its true and fair value. Unlimited tax general obligation debt requires an approving vote of the people, and any election to validate such general obligation debt must have a voter turnout of at least 40 percent of those who voted in the last State general election and of those voting, 60 percent must be in the affirmative. The City Council may, by ordinance, authorize the issuance of limited tax general obligation debt in an amount up to 3/4 percent of the valuation within the City without a vote of the people. In addition, debt up to '! % of the valuation may be approved by the Council for capital leases. No combination of limited or unlimited tax debt may exceed 71h percent of the valuation. The debt service on unlimited tax debt is secured by excess property tax levies, whereas the debt service on limited tax debt is secured by property taxes collected with the City's councilmanic levy. The City's legally remaining debt capacities are: General Government (no vote required) S12,041,605 General Goverment Capital Leases (no vote required) $22,696,889 General Government (3/5 majority vote required) $31,996,292 Parks and Open Space (3/5 majority vote required) S79,990,728 Utilities (3/5 majority vote required) $79,990,728 NOTE 14: Interfund Transactions Interfund transactions represent reductions in the expendable financial resources of the transferring fund, but the transaction may or may not be accounted for as an expenditure of the transferring fund. Transactions between funds may be classified as (1) quasi -external transactions, (2) loans and advances, (3) reimbursements, (4) residual equity transfers, and (5) operating transfers. During 1991, the City recorded all of the above with the exception of reimbursements. Quasi -external Transactions Quasi -external transactions reflect the existence of a more -or -less normal buyer/seller relationship between City funds. During 1991, these involved transactions between internal service funds and other funds for the purpose of recovering operating and maintenance costs and to build replacement reserves. Interfund Loans Loans between governmental funds also occurred in 1991. The following schedule presents interfund loans outstanding at December 31, 1991: General Fund Special Revenue Funds: Grants - Miscellaneous Governmental Community Development Block Grant Total INTERFUND LOANS RECEIVABLE S 60,000 $ 60,000 INTERFUND LOANS PAYABLE $ --- 50,000 10,000 $ 60,000 46 / City of Federal Way Residual Equity Transfers Residual equity transfers are nonrecurring or non -routine transfers of equity between funds. They do not represent expenditures of the transferring fund but a change in a fund's fund balance. In governmental funds, they are reported as an increase or decrease in the beginning fund balance. For a proprietary fund, they are presented as an increase or decrease in the fund's contributed capital or retained earnings. The following residual equity transfers were recorded in 1991: Fund Cate o Tran$fgrs In Transfers Out General Fund - $169,767 Special Revenue Funds — 51,553 Internal Service Funds $225,221 3.901 Total City Funds 5225,221 $225�2_21` Of the above amounts, the entire $225,221 was transferred from either governmental funds ($221,320) or internal service funds ($3,901) to other internal service funds, which record related transactions as additions to contributed capital. Operating Transfers Operating transfers are legally authorized contributions of resources from one fund to another to subsidize designated activities or expenditures. These amounts are classified as "other financing sources and uses' on governmental fund type operating statements. The following operating transfers were recorded during 1991: Fund Category Transfers In Transfers Out General Fund $ 2,845,018 Special Revenue Funds $ 2,000,000 1,276,325 Debt Service Funds 2,100,770 - Fiduciary Funds 20.573 Total City Funds $ 4,121, 343 $ 4,121, 34 3 NOTE 15: Contributed Capital Contributed capital in internal service funds records the amounts of working capital and fixed assets received from other funds. Contributed capital forms one of two classifications of equity found on the balance sheet of a proprietary fund. Contributed capital is created when a residual equity transfer is received by a proprietary fund, when a general fixed asset is "transferred" to a proprietary fund or when a grant is received that is externally restricted to capital acquisition or construction. Contributions restricted to capital acquisition and construction and fixed assets received from developers and customers, as well as amounts of tap fees in excess of related costs, also would be reported in this category. During 1991 various transactions impacted the contributed capital of internal service funds. These transactions have been identified in the following presentation: City of Federal Way / 47 Beginning Contributed Capital Additions: Residual Equity Transfers Equipment/ Furniture Donations Total Additions: Deductions: Ending Contributed Capital Data Risk Processing Manage- Telecomm- ment unications Support Services Buildings Fleet & and Equip- Furn- ment ishings Totals s 0 s o $ 0 $ 0 s 0 $ 0 197,987 10,253 2,834 14,147 225,221 — 332,806 16.57E 364,831 395.754 1,109.967 0 530,793 28,829 367.665 409,901 1,335,188 $ 0 $530,793 $26,829 $367,665 $409.901 $1,335,188 NOTE 16: Contingencies and Litigation As of December 31, 1991, there were a small number of claims for damages and lawsuits pending against the City. In the opinion of the City Attorney, however, neither the potential liability for any single claim or lawsuit, nor the aggregate potential liability arising from all actions currently pending would materially affect the financial condition of the City. Due to both their uncertainty and immateriality, no liabilities or estimated liabilities have been included in the City's financial statements. NOTE 17: Fund Additions and Changes During 1991, the City added four special revenue funds, one capital project fund, and five internal service funds. Special Revenue Funds The four new special revenue funds include the 2nd'/4% Real Estate Excise Tax Fund established to account for the receipt of the optional real estate excise tax which is restricted to finance capital projects specified in a capital facilities plan element of a comprehensive plan and related debt service; the Gran - Miscellaneous Governmental Fund and the Community Development Block Grant Fun for the administration of grant projects and programs; the Strategic Reserve Fund to receive financial resources set aside by the City Council to provide for future economic downturns or other unforeseen expenditure needs. 48 / City of Federal Way Capital Project Funds The 1991 Capital Proiect Fund was established to receive and expend the $12,500,000proceeds of the 1991 G.O. Bond Issue. The purpose of this issue was to finance the acquisition of 83.5 acres of land for park and other municipal purposes. Internal Service Funds The five internal service funds established include the Risk Rianagement Fund through which the City administers risk management activities and is building reserves for future self-insurance programs; the Data Processing/ Teigg9mmunications Fund to account for all costs associated with the data processing and telecommunications activities of the City, and to build replacement reserves for asset replacement; the Support Services Fund to account for clerical, copier, graphics and other specific general support services to City departments; the Fleet and Equipment Fund to account for the cost of maintaining City vehicles and other motorized equipment and to build reserves for asset replacement; and the Buildings and Furnishings_ Fund to account for the costs associated with the operation and maintenance of specified City buildings and furnishings, and to establish reserves for their replacement. Upon the establishment of these internal service funds, assets previously reported as general fixed assets were donated to the appropriate fund. These have been identified as 'Equipment/Furniture Donations' in the Contributed Capital Note 15 presentation. NOTE 18: Subsequent Events On April 14, 1992, the City Council authorized the City Manager to purchase the facility in which City Hall resides. Determination is currently being made on the financing method by which this acquisiton will be funded. City of Federal Way / 51 GENERAL FUND BALANCE SHEET December 31, 1991 1991 ASSETS Cash and equivalents $ 1,159,222 Receivables (net): Taxes 294,063 Accounts and contracts 14 Due from other governments 1,074,127 Interfund loans receivable 60,000 TOTAL ASSETS $ 2,587,426 LIABILITIES AND FUND BALANCE Llabilities: Vouchers payable $ 450,111 Payroll payable 162,796 Deposits payable 4,983 Deferred revenues 256,983 TOTAL LIABILITIES 874,873 Fund balance: Reserved for interfund loans 60,000 Unreserved: Designated for petty cash 600 Designated for travel advance 5,000 Undesignated 1,646,953 TOTAL FUND BALANCE 1,712,553 TOTAL LIABILITIES AND FUND BALANCE $ 2,587,426 52 / City of Federal Way GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1991 REVENUES: 1991 Taxes Licenses and permits $ 11,965,254 Intergovernmental 638,967 Service charges and fees 2,881,220 Fines and forteitures 466,318 Miscellaneous: 288,254 Interest 627,760 Other 44,775 TOTAL REVENUES 16,912,548 EXPENDITURES: Current: General government 2.124,780 Public safety 6,605,948 Physical environment 18,755 Economic environment 2,093,469 Health 468,430 Culture and recreation 1,680,884 Debt Service: Interest and fiscal charges 49,592 Capital leases - general government 1,003,722 TOTAL EXPENDITURES 14,045,580 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 2,866,968 OTHER FINANCING SOURCES (USES): Capital leases 1,003,722 Operating transfers out (2,845,018) TOTAL OTHER FINANCING SOURCES (USES) (1,841.296) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 1,025,e;72 FUND BALANCE AT BEGINNING OF YEAR 856,648 Residual equity transfers out (169,767) FUND BALANCE (DEFICIT) AT END OF YEAR $ 1,712,553 City of Federal Way / 53 GENERALFUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1991 Variance Favorable REVENUES: Budget Actual (Unfavorable) Taxes $ 11,090,000 $ 11,965,254 $ 875,254 Licenses and permits 796,000 638,967 (157,033) Intergovernmental 2,083,600 2,881,220 797,620 Service charges and fees 159,000 466,318 307,318 Fines and forteitures 532,000 288,254 (243.746) Miscellaneous: Interest 230,000 627,760 397,760 Other 2,022,000 44,775 (1,977,225) TOTAL REVENUES 16,912,600 16,912,548 (52) EXPENDITURES: Current: General government 3,091,011 2,124,780 966,231 Public safety 6,618,151 6,605,948 12,203 Physical environment 50,000 18,755 31,245 Economic environment 2,240,938 2,093,469 147,469 Health 470,700 468,430 2,270 Culture and recreation 1,284,899 1,680,884 (395,985) Debt Service: Interest and fiscal charges - 49,592 (49,592) TOTAL EXPENDITURES 13,755,699 13,041,858 713,841 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 3,156,901 3,870,690 713,789 OTHER FINANCING SOURCES (USES): Operating transfers out (2,745,001) (2,845,018) (100,017) TOTAL OTHER FINANCING SOURCES (USES) (2,745,001) (2,845,018) (100,017) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 411,900 1,025,672 613,772 FUND BALANCE AT BEGINNING OF YEAR 353,000 856,648 503,648 Residual equity transfers out - (169,767) (169,767) FUND BALANCE (DEFICIT) AT END OF YEAR $ 764,900 $ 1,712,553 $ 947,653 54 / City of Federal Way GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED TO BUDGET For the Year Ended December 31, 1991 GENERAL GOVERNMENT SERVICES LEGISLATIVE: Personal services Supplies Other services and charges Intergovermental services Interfund services TOTAL LEGISLATIVE JUDICIAL: Intergovermental services TOTAL JUDICIAL EXECUTIVE: Personal services Supplies Other services and charges Interfund services TOTAL EXECUTIVE FINANCIAL, RECORDS, AND CENTRAL SERVICES: Personal services Supplies Other services and charges Intergovermental services Capital outlay Interfund services TOTAL FINANCIAL, RECORDS, AND CENTRAL SERVICES LEGAL: Personal services Supplies Other services and charges Intergovermental services Capital outlay Interfund services TOTAL LEGAL PERSONNEL: Personal services Supplies Other services and charges Intergovermental services Interfund services TOTAL PERSONNEL VARIANCE FAVORABLE BUDGET ACTUAL _LUNFAVORABLEI $ 35,700 $ 35,718 $ (18) 2,000 3,689 (1,689) 69,700 75,520 (5,820) 49,759 (49,759) 31,800 18,431 13,369 139,200 183,117 (43,917) 420,000 185,802 234,198 420,000 185,802 234,198 175,410 180,125 (4,715) 4,750 5,188 (438) 47,350 21,269 26,081 41730 48,071 (6,341) 269,240 254,653 14,587 392,719 367,520 25,199 22,788 16,420 6,368 112,443 147,155 (34,712) 18,034 (18,034) 4,529 (4,529) 151,557 129,788 21,769 679,507 683,446 (3,939� 238,259 239,587 (1,328) 13,775 13,733 42 223,555 149,547 74,008 21 (21) 975 (975) 69,310 67.838 1,472 544,899 471,701 73,198 156,406 148,815 7,591 4,470 3,287 1,183 99,467 65,535 33,932 12 (12) 41,823 40,648 1.175 302,166 258,297 43,869 Page 1 of 4 City of Federal Way / 55 GENERALFUND SCHEDULE OF EXPENDITURES COMPARED TO BUDGET For the Year Ended December 31, 1991 (Continued) OTHER GENERAL GOVERNMENTAL SERVICES: Personal services Supplies Other services and charges Debt service: Interest on interfund loan Interfund services TOTAL OTHER GENERAL GOVERNMENTAL SERVICES TOTAL GENERAL GOVERNMENT SECURITY OF PERSONS AND PROPERTY LAW ENFORCEMENT: Supplies Intergovermental services TOTAL LAW ENFORCEMENT DETENTION AND/OR CORRECTION: Intergovermental services TOTAL DETENTION AND/OR CORRECTION TOTAL SECURITY OF PERSONS AND PROPERTY PHYSICAL ENVIRONMENT NATURAL RESOURCES: Other services and charges Intergovernmental services TOTAL NATURAL RESOURCES TOTAL PHYSICAL ENVIRONMENT ECONOMIC ENVIRONMENT WELFARE: Other services and charges TOTAL WELFARE PLANNING AND COMMUNITY DEVELOPMENT: Personal services Supplies Other services and charges Intergovermental services Capital outlay Interfund services TOTAL PLANNING AND COMMUNITY DEVELOPMENT VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) 57,929 54,359 3,570 8,100 3,023 5,077 643,313 12,606 630,707 49,592 (49,592) 26,657 17,776 8,881 735,999 137.356 598,643 3,091,011 2,174,372 916,639 909 (909) 6,485,651 6,485,651 0 6,485,651 6,486,560 (909) 132,500 1199388 13,112 132,500 119,388 13,112 6,618,151 6,605,948 12,203 35,000 35,000 15,000 18,755 (3,755) 50,000 18,755 31,245 50,000 18,755 31,245 342,500 340,038 2,462 342,500 340,038 2,462 915,827 855,187 60,640 4,420 9,426 (5,006) 174,880 185,715 (10,835) 5 (5) 3,167 (3,167) 301,045 236,343 64,702 1,396,172 1,289,843 106,329 Page 2 of 4 56 / City of Federal Way GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED TO BUDGET For the Year Ended December 31, 1991 (Continued) HOUSING AND COMMUNITY DEVELOPMENT: Personal services Supplies Other services and charges Intergovennental services Capital outlay Interfund services TOTAL HOUSING AND COMMUNITY DEVELOPMENT TOTAL ECONOMIC ENVIRONMENT MENTAL AND PHYSICAL HEALTH PUBLIC HEALTH: Intergovernmental services TOTAL PUBLIC HEALTH TOTAL MENTAL AND PHYSICAL HEALTH CULTURE AND RECREATION SPECTATOR AND COMMUNITY EVENTS Personal services Supplies Other services and charges Interfund services TOTAL SPECTATOR AND - -eOMM1UNITY-EVENTS--- - PARTICIPANT RECREATION Personal services Supplies Other services and charges Capital outlay Interfund services TOTAL PARTICIPANT RECREATION BUDGET 297,016 400 40,765 164,085 502,266 2,240,938 304,857 2,608 31,113 10,019 11,997 102,994 463,588 2,093,469 VARIANCE FAVORABLE (UNFAVORABLE) (7.841) (2,208) 9,652 (10,019) (11,997) 38.678 147,469 470,700 468,430 2,270 470,700 468,430 2,270 470,700 468,430 2,270 131,553 132,647 (1,094) 2,500 997 1,503 121,095 166,383 (45,288) 39,044 38,677 367 338,704 (44,512) 198,923 261,811 (62,888) 15,000 36,579 (21,579) 61,000 83,876 (22,876) 6,899 (6,899) 28,534 46,700 (18.166) 303,457 435,865 (132,408) Page 3 of 4 City of Federal Way / 57 GENERAL FUND SCHEDULE OF EXPENDITURES COMPARED TO BUDGET For the Year Ended December 31, 1991 (Continued) PARK FACILITIES: Personal services Supplies Other services and charges Intergovermental services Capital outlay Interfund services TOTAL PARK FACILITIES TOTAL CULTURE AND RECREATION OTHER FINANCING USES Operating transfers out TOTAL OTHER FINANCING USES TOTAL GENERAL FUND VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) 397,759 393,273 4,486 52,000 108,955 (56,955) 79,500 90,043 (10,543) 1,458 (1,458) 237,707 (237,707) 157,991 74,879 83,112 687,250 906,315 (219,065) 1,284,899 1,680,884 (395,985) 2,745,001 2,845,018 (100,017) 2,745,001 2,845,018 (100,017) $ 16,500,700 $ 15,886,876 $ 613,824 Page 4 of 4 crrr OF CRY OF 62 / City of Federal Way SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31 p 1991 1st1/4% 2nd1/4% Grants - Arterial Real Estate Real Estate Miscellaneous Street Street Excise Tax Excise Tax Governmental ASSETS Cash and equivalents $ 2,183,814 $ 929,218 $ 116,403 $ $ 570,756 Receivables: Unbilled 23,918 - - Due from other governments 134,196 43,456 87,479 87,479 3,992 TOTAL ASSETS $ 2,341,928 $ 972,674 $ 203,882 $ 87,479 $ 574,748 LIABILITIES AND FUND BALANCES Liabilities: Vouchers payable 804,476 87,517 25,474 Payroll payable 25,546 - Deposits payable 23,847 4,250 Interfund loans payable - - 50,000 TOTAL LIABILITIES 853,869 91,767 75,474 Fund balances: Unreserved-undesignated 1,488,059 972,674 112,115 87,479 499,274 TOTAL FUND BALANCES 1,488,059 972,674 112,115 87,479 499,27n TOTAL LIABILITIES AND FUND BALANCES $ 2,341,928 $ 972,674 $ 203,882 $ 87,479 $ 574,748 Page 1 of 2 City of Federal Way / 63 Community Paths and Development Trails Surface Water Strategic Block Grant Reserve Management Reserve Total $ 10,052 $ 10,132 $ 1,168,910 $ 2,000,000 $ 6,989,285 - - 23,918 10,405 685 11,746 379,438 $ 20,457 $ 10,817 $ 1,180,656 $ 2,000,000 $ 7,392,641 10,457 388,401 1,316,325 - 3,518 29,064 - - - 28,097 10,000 - 60,000 20,457 - 391,919 1,433,486 10,817 788,737 2.000,000 5,959,155 10,817 788,737 2,000,000 5,959,155 $ 20,457 $ 10,817 $ 1.180,656 $ 2.000,000 $ 7,392,641 Page 2 of 2 64 / City of Federal Way SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1991 1 at 1/4% 2nd 1/4% Arterial Real Estate Real Estate Street Street Excise Tax Excise Tax REVENUES: Taxes Licenses and permits Intergovernmental Service charges and fees Miscellaneous: Interest Other TOTAL REVENUES EXPENDITURES: Current: Public safety Transportation Economic environment Culture and recreation TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR Residual equity transfers out FUND BALANCES AT END OF YEAR $ 66,323 S $ 676,296 $ 652,091 81,396 - 1,341,943 528,781 19,737 49,592 93 - 1.559,084 528,781 676,296 652,091 3,803,693 3,662 227,287 3,803,693 3,662 227,287 (2,244,609) 525,119 449,009 652,091 (711,713) (564,612) (711,713) (564,612) (2,244,609) 525,119 (262,704) 87,479 3,779,201 447,555 374,819 (46,533) - - $ 1,488,059 $ 972,674 $ 112,115 $ 87,479 Page 1 of 2 City of Federal Way / 65 Grants - Community Paths and Miscellaneous Development Trails Surface Water Strategic Governmental Block Grant Reserve Management Reserve 647,069 60,083 8,769 - - 1,129,116 646,838 147,564 499,274 499,274 17,322 - 723,391 42,761 - Total $ 1,394,710 81,396 2,586,646 1,148,853 49,360 93 5,261,059 17,322 d FZn 7d7 4,965,681 8,769 405,725 - 295,377 - 2,000,000 2,000,000 - (1,276,325) 2,000,000 723,675 8,769 405,725 2,000,000 ' ,019,053 $ 499,274 $ $ 10,817 $ 788,737 $ 2,000,000 $ 5,959,155 Page 2 of 2 66 / City of Federal Way SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1991 REVENUES: Taxes Licenses and permits Intergovernmental Service charges and fees Miscellaneous: Interest Other TOTAL REVENUES EXPENDITURES: Current: Transportation Culture and recreation TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR Residual equity transfers out FUND BALANCES AT END OF YEAR Street Fund Variance Favorable Budd Actual (Unfavorable) $ 107,200 $ 66,323 $ (40,877) - 81,396 81,396 1,528,000 1,341,943 (186,057) 19,737 19,737 49,592 49,592 93 93 1,635,200 1,559,084 (76,116) 4,551,700 3,803,693 748,007 4,551,700 3,803,693 748,007 (2,916,500) (2,244,609) 480,000 480,000 - 671,891 (480,000) (480,000) 2,436,500) (2,244,609) 191,891 2,567,400 3,779,201 1,211,801 (46,533) (46,533) $ 130,900 $ 1,488,059 $ 1,357,159 Page 1 of 5 City of Federal Way / 67 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1991 (Continued) Arterial Street Fund Variance Favorable Budget _ Actual (Unfavorably) 527,200 528,781 1,581 527,200 528,781 1,581 1 sst 1 /4% Real Estate Excise Tax Fund Variance Favorable Budget Actual (Unfavorable) $ 840,000 $ 676,296 $ (163,704) 840,000 676,296 (163,704) 889,700 3,662 886,038 - - - 523,000 227,287 295,713 889,700 3,662 886,038 523,000 227,287 295,713 (362,500) 525,119 887,619 317,000 449,009 132,009 - (416,000) j711,713) (295,713) (416,000) (711,713) (295,713) (362,500) 525,119 887,619 (99,000) (262,704) 163,704) 362,500 447,555 85,055 99,000 374,819 275,819 - $ 972,674 $ 972,674 $ $ 112,115 $ 112,115 Page 2 of 5 68 / City of Federal Way SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1991 (Continued) REVENUES: Taxes Licenses and permits Intergovernmental Service charges and fees Miscellaneous: Interest Other TOTAL REVENUES EXPENDITURES: Current: Transportation Culture and recreation TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR Residual equity transfers out FUND BALANCES AT END OF YEAR 2nd 1/4% Real Estate Excise Tax Fund Variance Favorable Budget Actual (Unfavorable) $ 658,800 $ 652,091 $ (6,709) 658,800 652,091 (6,709) 658,800 652,091 (6,709) (658.800) (564,612) 94,188 (658.800) (564,612) 94,188 87,479 87,479 $ $ 87,479 $ 87,479 Page 3 of 5 City of Federal Way / 69 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1991 (Continued) Paths and Trails Reserve Fund Variance Favorable Budget Actual (Unfavorable) 5,000 8,769 3,769 Surface Water Management Fund Variance Favorable Budget Actual {Unfavorable) 1,144,300 1,129,116 (15,184) 5,000 3,769 1,144,300 1,129.116 8,769 (15,184) 1,501,000 723,391 777,609 - 1,501,000 723,391 777,609 5,000 8,769 3,769 (356,700) 405,725 762,425 (8,602) 8,600 - - (8,600) 8,600 - - (3,600) 8,769 12,369 (356,700) 405,725 762,425 3,600 2,048 (1,552) 607,000 388,032 (218,968) - - - (5,020) (5,020) $ $ 10,817 $ 10,817 $ 250,300 $ 788,737 $ 538,437 Page 4 of 5 70 / City of Federal Way SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 1991 (Continued) REVENUES: Taxes Licenses and permits Intergovernmental Service charges and fees Miscellaneous: Interest Other TOTAL REVENUES EXPENDITURES: Current: Transportation Culture and recreation TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR Residual equity transfers out FUND BALANCES AT END OF YEAR Totals 141emorandum Onl Variance Favorable Budget _ Actual (Unfavorable) $ 1,606,000 $ 1,394,710 $ (211,290) - 81,396 81,396 2,060,200 1,879,493 (180,707) 1.144,300 1,148,853 4.553 49,592 49.592 93 93 4,810,500 4,554,137 (256,363) 6,942,400 4,530,746 2,411,654 523,000 227,287 295,713 7,465,400 4,758,033 2,707,367 (2,654,900) (203,896) 2,451,004 480,000 (480.000) 1,083.400 — (1,276,325) (192,929 603,400 _ (1,276,325) (672.925) (3,258,300) 1,480,220) 1,778,080 3,639,500 4,991,655 1,352,155 (51,553) (51,553) $ 381,200 $ 3,459,882 $ 3,078,682 Page 5 of 5 City of Federal Way / 73 DEBT SERVICE FUND BALANCE SHEET December 31, 1991 ASSETS 1991 Cash and equivalents $ 2,147,923 TOTAL ASSETS $ 2,147,923 LIABILITIES AND FUND BALANCE Llabilitler: Interest payable $ 42,980 TOTAL LIABILITIES 42,980 Fund balance: Reserved for debt service 2,104,943 TOTAL FUND BALANCE 2,104,943 TOTAL LIABILITIES AND FUND BALANCE $ 2,147,923 74 / City of Federal Way DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1991 1991 REVENUES: TOTAL REVENUES EXPENDITURES: Debt Service: Interest and fiscal charges 411,826 TOTAL EXPENDITURES 411,826 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (411,826) OTHER FINANCING SOURCES (USES): Operating transfers in 2,100,770 TOTAL OTHER FINANCING SOURCES (USES) 2,100,770 EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 1,688,943 FUND BALANCE AT BEGINNING OF YEAR 416,000 FUND BALANCE AT END OF YEAR $ 2,104,943 City of Federal Way / 75 DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1991 REVENUES: TOTAL REVENUES EXPENDITURES: Debt Service: Interest and fiscal charges TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR BUDGET ACTUAL VARIANCE FAVORABLE (UNFAVORABLE) 416,000 411,826 4,174 416,000 411,826 4,174 (416,000) (411,826) 416,000 2,100,770 4,174 1,684,770 416,000 2,100,770 1,684,770 - 1,688,943 1,688,943 416,000 416,000 - $ 416,000 $ 2,104,943 $ 1,688,943 C r," OF G i �� City of Federal Way / 79 CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1991 ASSETS Cash and equivalents TOTAL ASSETS LIABILITIES AND FUND BALANCE Liabilities: TOTAL LIABILITIES Fund balance: Unreserved-undesignated TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE 1990 1991 Capital Capital Project Fund Project Fund Total $ - $ 764 $ 764 $ $ 764 $ 764 764 764 764 764 $ $ 764 $ 764 80 / City of Federal Way CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1991 1990 1991 Capital Capital Project Project Total REVENUES: Miscellaneous $ 30 $ TOTAL REVENUES EXPENDITURES: Capital projects: General government Culture and recreation TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Bond proceeds TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES: FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR 30 133,622 - 12,500,000 133,622 12,500,000 (133,592) (12,500,000) 12,500.764 12,500,764 $ 30 30 133,622 12,500,000 12,633,622 (12,633,592) 12,500,764 12,500,764 (133,592) 764 (132,828) 133,592 133,592 $ - $ 764 $ 764 City of Federal Way / 83 INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1991 Data Processing Risk Telecommun- Support Fleet and Buildings and Management ications Services Equipment Furnishings Total ASSETS Current Assets: Cash and equivalents $ 57,136 $ 115,520 $ 68,638 $ 26,140 $ 32,022 $ 299,456 TOTAL CURRENT ASSETS $ 57,136 $ 115,520 $ 68,638 $ 26,140 $ 32,022 $ 299,456 Property, plant and equipment: Data Processing/ Telecommunication equipment - 530,793 - - 530,793 Transportation equipment 247,117 247,117 Heavy equipment 119,047 119,047 Buildings & Furnishings - - 409,903 409,903 Other equipment 18,529 1,501 20,030 530.793 18,529 367,665 409,903 1,326,890 Less accumulated depreciation 31,238 1,172 15,379 31,970 79,759 NET PROPERTY, PLANT AND EQUIPMENT - 499,555 17,357 352,286 377,933 1,247,131 TOTAL ASSETS $ 57,136 $ 615,075 $ 85,995 $ 378,426 $ 409,955 $ 1,546,587 LIABILITIES AND FUND EQUITY Current liabilities Vouchers payable $ 5,849 $ 62,961 $ 8,706 $ 4,696 $ 4,682 $ 86,894 Payroll payable 1,924 1,451 3,375 Compensated absences payable 1,885 2Q3 2,088 TOTAL CURRENT LIABILITIES 5,849 66,770 10,360 4,696 4,682 92,357 Fund Equity: Contributed Capital - 530,793 18,529 367,665 409,903 1,326,890 Retained Earnings - unreserved 51,287 17,512 57,106 6,065 (4,630) 127,340 TOTAL FUND EQUITY 51,287 548,305 75,635 373,730 405,273 1,454,230 TOTAL LIABILITIES AND FUND EQUITY $ 57,136 $ 615,075 $ 85,995 $ 378,426 $ 409,955 $ 1,.546,587 84 / City of Federal Way INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1991 OPERATING REVENUES: Service charges and fees Miscellaneous TOTAL OPERATING REVENUES OPERATING EXPENSES: Personnel services Services and charges Materials and supplies Insurance Claims Depreciation Data Processing Risk Tsleeommun- Support Fisst and Buildings and Managemanl katlons/GIS Services Equipment Furnishings Total $ 115,673 S 332,035 $ 252,344 $ 41,672 $ 248.184 $ 989,908 387 - 387 115,673 332.035 252,731 41,672 248,184 990,295 - 31,567 40,202 71,769 40 182,295 81,812 11,140 208,721 484,008 - 74,495 75,144 15,177 14,180 178,996 61,681 - - 61,681 6,388 6,388 31,238 1,172 15,379 31,970 79,759 TOTAL OPERATING EXPENSES 68,109 319,595 198,330 41,696 254.871 882,601 OPERATING INCOME (LOSS) $ 47,564 $ 12,440 $ 54,401 $ (24) $ (6,687) $ 107,694 NON -OPERATING REVENUES (EXPENSES): Interest Income $ 3,723 $ 5,072 $ 2,705 $ 6,089 $ 2,057 $ 19,646 TOTAL NON -OPERATING REVENUE (EXPENSES) 3,723 5,072 2,705 6,089 2,057 19,646 NET INCOME (LOSS) 51,287 17,512 57,106 6,065 (4,630) 127,340 RETAINED EARNINGS, January 1 - - RETAINED EARNINGS, December 31 $ 51,287 $ 17,512 $ 57,106 $ 6,065 $ (4,630) $ 127,340 City of Federal Way / 85 INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1991 Data Processing Risk Telecommun- Support Fleet and Buildings and Management Ications Services Equipment Furnishings Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from users $ Cash payments to suppliers for goods/services Cash payments to employees Cash payments to claimants Cash payments to other funds for services Other operating revenues NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: NET CASH PROVIDED (USED) BY NON - CAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets Cash contributions for capital acquisitions NET CASH PROVIDED (USED) FOR CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Receipts of interest NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES NET INCREASE (DECREASE) IN CASH AND CASH 115,673 $ 332,036 $ 252.344 $ (56,146) (184,854) (134,939) (27,758) (38,548) (6,114) (8,976) (13,311) 387 53,413 110,448 65,933 3,723 3,723 (197,967) (10,253) 197,987 10,253 41,672 $ 248.184 $ 989,909 (21,621) (218,219) (615,779) (66,306) (6,114) (22,287) 387 20,051 (2,834) 2,834 5,072 2,705 6,089 29,965 279,810 (14,147) (225,221) 14,147 225,221 2,057 19,646 5,072 2.705 6,089 2,057 19,646 EQUIVALENTS 57,136 115,520 68,638 26,140 32,022 299,456 CASH AND CASH EQUIVALENTS 01/01/91 - - CASH AND CASH EQUIVALENTS 12/31/91 $ 57,136 $ 115,520 $ 68,638 $ 26,140 $ 32,022 $ 299,456 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Increase in accounts payable Increase in accrued payroll/ compensated absences payable TOTAL ADJUSTMENTS NET CASH PROVIDED BY 47,564 $ 12,440 $ 54,401 $ (24) $ (6,687) $ 107,694 - 31,238 1,172 15,379 31,970 79,759 5,849 62,961 8,706 4,696 4,682 86,894 - 3,809 1,654 - - 5,463 5,849 98,008 11,532 20,075 36,652 172,116 OPERATING ACTIVITIES $ 53,413 $ 110,448 $ 65,933 $ 20,051 $ 29,965 $ 279,810 SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Contributions of capital assets $ - $ 332,806 $ 8,871 $ 364,831 $ 395,756 $ 1,102,264 CITY OF G A`- Crf ) City of Federal Way / 89 TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December31, 1991 Expandable Trust Fund Agency Funds Federal Way Fees and Retirement Deferred Taxes Clearing Special System Compensation Fund Deposit Total ASSETS Cash and equivalents $ 66,250 $ - S 53,093 $ 34,607 S 153,950 Cash - deferred compensation - 224,971 224.971 Investments with plan administrator 479,656 479,656 Receivables (net): Interest 4,480 - - 4,480 TOTAL ASSETS $ 550,386 $ 224,971 S 53,093 $ 34,607 S 863,057 LIABILITIES AND FUND BALANCES Liabilities: Vouchers payable 12,604 - - 12,604 Due to other governments - 39,491 39,491 Deferred compensation payable 224,971 - 224,971 Custodial accounts 12,530 12,530 Deposits payable - - 1,072 34,607 35,679 TOTAL LIABILITIES 12,604 224,971 53,093 34,607 325,275 Fund Balances: Reserved for employee retirement 537,782 - - 537,782 TOTAL FUND BALANCES 537,782 - 537,782 TOTAL LIABILITIES AND FUND BALANCES $ 550,386 $ 224,971 $ 53,093 $ 34,607 $ 863,057 90 / City of Federal Way EXPENDABLE TRUST FUND FEDERAL WAY RETIREMENT SYSTEM BALANCE SHEET December 31, 1991 ASSETS 1991 Cash and equivalents with plan administrator $ 66,250 Investments with plan administrator 479,656 Receivables (net): Interest 4,480 TOTAL ASSETS $ 500,386 LIABILITIES AND FUND BALANCE Liabilities: Vouchers payable $ 12,604 TOTAL LIABILITIES 12,604 Fund balance: Reserved for employee retirement 537,782 TOTAL FUND BALANCE 537.782 TOTAL LIABILITIES AND FUND BALANCE $ 550,386 City of Federal Way / 91 EXPENDABLE TRUST FUND FEDERAL WAY RETIREMENT SYSTEM STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1991 REVENUES: 1991 Miscellaneous: Member contributions Employer contributions 3 134,589 Employee contributions 309,047 Investment income 17,463 TOTAL REVENUES 461,099 EXPENDITURES: Employee contributions refunded 15,085 Consultant services 22,929 TOTAL EXPENDITURES 38,014 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 423,085 OTHER FINANCING SOURCES (USES): Operating transfers in 20,573 TOTAL OTHER FINANCING SOURCES (USES): 20,573 EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES: 443,658 FUND BALANCES AT BEGINNING OF YEAR 94,124 FUND BALANCES AT END OF YEAR $ 537,782 92 / City of Federal Way COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS For the Year Ended December 31, 1991 BALANCE BALANCE 01/01/91 ADDITIONS DEDUCTIONS 12/31/91 DEFERRED COMPENSATION FUND ASSETS: Cash with ICMA $ 127,873 S 97,098 $ $ 224,971 LIABILITIES: Deferred compensation payable $ 127,873 $ 97,098 $ $ 224.971 FEES & TAXES CLEARING FUND ASSETS: Cash $ 92,624 $ 328,683 $ 368.214 $ 53,093 LIABILITIES: Due to other governments $ 80,094 $ 473,593 $ 514,196 $ 39,491 Custodial accounts 12,530 - - 12,530 Deposits payable 1,072 - 1,072 92,624 474,665 514,196 53,093 SPECIAL DEPOSIT ASSETS: Cash $ 28,107 $ 27,500 $ 21,000 $ 34,607 LIABILITIES: Customer deposits $ 28,107 $ 26,500 $ 20,000 $ 34,607 TOTAL - ALL AGENCY FUNDS ASSETS: Cash $ 120,731 $ 356,183 389,214 $ 87,700 Cash with ICMA 127,873 97,098 224,971 TOTAL ASSETS $ 248,604 $ 453,281 $ 389,214 $ 312,671 LIABILITIES: Due to other governments $ 80,094 $ 473,593 $ 514,196 $ 39,491 Deferred compensation payable 127,873 97,098 - 224,971 Custodial accounts 12,530 - 12,530 Customer deposits 28,107 27,572 20,000 35,679 TOTAL LIABILITIES $ 248,604 $ 598,263 $ 534,196 $ 312,671 City of Federal Way / 95 SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE December 31, 1991 GENERAL FIXED ASSETS (A) Land Buildings Other improvements Equipment Assets under capital lease 1991 S 22.004,861 334,000 180,171 1,003,722 TOTAL GENERAL FIXED ASSETS $ 23,522,754 INVESTMENT IN GENERAL FIXED ASSETS FROM: Capital Projects Funds: General obligation bonds $ 12,966,321 General Fund: General revenues Donations 9,372,540 Capital leases 1,003,722 Special Revenue Funds: General revenues 180,171 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 23,522,754 (A) Excludes all public domain assets such as streets, sidewalks, gutters, bridges, drainage facilities and lighting systems. 96 / City of Federal Way SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY(A) December 31, 1991 OTHER FUNCTION/ACTIVITY TOTAL LAND BUILDINGS IMPROVEMENTS EQUIPMENT GENERAL GOVERNMENT Misc General Government $ 508,492 $ 508,492 $ $ $ TOTAL GENERAL GOVERNMENT $ 508,492 $ 508.492 $ $ $ CULTURE AND RECREATION 23,014,262 22,500.091 334,000 180,171 TOTAL GENERAL FIXED ASSETS BY FUNCTION $ 23,522,754 $ 23,008,583 $ 334,000 $ 180,171 $ CONSTRUCTION IN PROGRESS $ - TOTAL GENERAL FIXED ASSETS $ 23,522,754 (A) Excludes all public domain assets such as streets, sidewalks, gutters, bridges, drainage facilities and lighting systems City of Federal Way / 97 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY(A) For the Year Ended December 31, 1991 GENERAL GENERAL FIXED ASSETS FIXED ASSETS FUNCTION/ACTIVITY 1/01/91 ADDITIONS DEDUCTIONS(B) 12/31/91 GENERAL GOVERNMENT Judicial $ 1.466 $ $ 1.466 $ Financial/Records Services 4,929 4.929 Legal 1,173 1,173 Misc General Government 1,167,279 105,674 764.461 508,492 TOTAL GENERAL GOVERNMENT $ 1,168,745 $ 111,776 $ 772.029 $ 508,492 STREET/TRANSPORTATION - 50,069 50.069 - ECONOMIC ENVIRONMENT - 15,163 15.163 CULTURE AND RECREATION 33,271 23,254,294 273.303 23,014,262 TOTAL GENERAL FIXED ASSETS BY FUNCTION $ 1,202,016 $ 23,431,302 $ 1,110,564 $ 23,522,754 TOTAL GENERAL FIXED ASSETS $ 1,202,016 $ 23,431,302 $ 1,110,564 $ 23,522,754 (A) Excludes all public domain assets such as streets, sidewalks, gutters, bridges, drainage facilities and lighting systems. (B Includes $1,102,264 in assets donated to the City's intemal service funds. C17Y OF V � 7 City of Federal Way Z,o, � / � O 2 LL w Q > � w U) m w c c 2 « LLF :3 2 w w cc -i « � w IL @ -F « cr. w 2 w C.1 0 ■3V) iK Wiz■ ■§ 0Z �a � 2 ■ q� 0 13WI oU) $ w o a § } kz GA«■ u � . ¢ ] LI as _ _ § ■ i2o $ $ §$ G� ■2 UJZ § E� o� � §� 2 x§§ ¢$ § �� x ■ �a k� � �w §2 2§ «■ �Z �d 22 0 4�i 4; 2 - �z t2 �§ I� �k §c aU) && c ■K �§ � OD$ )40 tujZ §2 �§ j� �o ak ■§ 0 2 � k z 10 Z Orx of Federal Way / 0j §Olt ■� � & a w 0 � � 0 @ � m � w Q m M 0 � 0 2 U 2 « z � � w Z 0 O 2 « ■ w :3 2 � » w � � 0 2 s LL 0 w � � c w _ Q @ 2� /$ §uj a2 LL§ U. awl aU.cc _ ui K� u V) ® alu %§ UAm cc ■■ _k, §$ zUJ IUJW a� ®® 2 e § §� � LU p ■ui K2 7 E f 0 uj & $ 2 a 0 � 2 � 7i .2 2 t2 § 2 ic Z # J City of Federal Way / 103 GENERAL FISCAL PROPERTY YEAR TAXES 1990 $3,490.242 1991 $4,457,526 TAX REVENUE BY SOURCE GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS MISCELLANEOUS BUSINESS AND OTHER GENERAL UTILITY OCCUPATION TAXES AND SALES TAX TAXES TAXES ASSESSMENTS (A) $4,529.165 $1,123.751 $6,468,697 S2.433.741 (A) Includes real estate excise, local criminal justice, gambling excise, and other taxes and related assessments. Table 3 TOTAL TAWFS $9.143.158 $13.359.964 io Z G!x of Federal Way §o§ ® a2z ®2 kkk o� z k§M© 0k22 2 & J0 % zLUA k§oz K i °22£ g § S U § u § z _ 0 2 f 2 �2 J LU k i 2 7 I-k J} O u � � 2 Z ■ � § k 2 2 k k § k L o E ° A k � a ? w 0 2 \ '§ LU �§0 K ` ) (L CC § ■ CL°o ° w a 7 7 / ■ 2 § § ) 2 f LU CC c kk 7 � f � 2 2 L § ƒ ■ § K k I § a a a 2 0 & ƒ � k� City of Federal Way / 105 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY* ASSESSED AND ESTIMATED ACTUAL VALUE• FISCAL YEAR REAL PROPERTY 1990 $2,928,672.425 1991 $3,027,664.413 PERSONAL STATE PUBLIC PROPERTY SERVICE PROPERTY TOTAL $100,236,709 $72.783.925 S3,101,693,059 5110,845.2W $75.442.874 $3213.952.495 Table 5 PERCENT INCREASE (DECREASE) 4-0 ' Real, personal, and state public service property has been assessed at 100% of the estimated value. NOTE: These figures included all final tax adjustments, omits and senior citizen exempted property. This total assessed value was reduced by senior citizen exemptions (no tax amounts) of $13.033.292 and prior year omits of $1.290.080 yielding a regular levy value of $3,199,629,123. These assessed valuations are the basis for the following year'stax levy. Source: l(ing County Assessor's Office. 106ZOrxo Federal Way § S ID 2 0 0 k K zaUJ §S Lu 0a §§ �k 22 2 �2 w to n R 7 k o § o k k E _ z ^ n Z* 2 @ U) � K � � R } R w § ■ U k § LU C2 § K kw § IS-0 a _ § 2 K « LL ■ CC LU2° §�K H z § § 2 o LU cc a kU.0 LU -LU{ F 2 § 2 en �U) » ■ § 2k 0q_ CY k �S ~ ■� ■ � o_ (0k �§ §§� CO ¥2 k LU & 2 U. o & g /� } k§ °� as � IC � $ 2 49 §LL E a� 0 0 2§ � k XN a § § o 0 §� � ` z§ �a � 20 d I u I � o �o § �} �7 Ul LET LU U. 0 �2 .} & U. °� §§ f, t ) L k 2 7 City of Federal Way / 107 a a Q U W a m W O O LL G z O m H W z G z Q O W Q O W z a O 1.- d m m Q f. W (� W O z H W m W Z U. C N W O O W go m O p 0 4 1=z< Om O N O m= W � O W Cc us N V W J W N W m N W W 7 J Q N 2 N P. m M N 1ci o M N N a' Q z � A a O a {L Y 9 m F O U 108 / City of Federal Way DESCRIPTION Statutory debt limit (AV = $3.199.629,123) (A) .75% AV ® 100% 2.50% AV ® 100% Add: Cash on hand for debt redemption (B) Less: Bonds outstanding Principal on equipment lease/purchase contracts REMAINING DEBT CAPACITY TOTAL REMAINING COMPUTATION OF LIMITATION OF INDEBTEDNESS December 31. 1991 Table 8 GENERAL DEBT CAPACITY EXCESS LEVY EXCESS LEVY TOTAL (Umlted) FINANCING (UnllmheM OPEN SPACE UTILITY DEBT COUNCILMANIC LEASES EXCESS LEVY AND PARK PURPOSES CAPACITY S23.997.218 523.997.218 ($47.994,436) 79.990.728 S79.990.728 $79 990.728 S239.972.184 1,954.387 150.5% 2,104.943 (13,910,000) (1,450.000) (15,360,000) (8 (885) $12.041,605 S22.696,889 S31,996,292 $79.990.728 S79.990.728 S226,716,242 'GENERAL' CAPACITY (C) $66.734.786 (A) This figure represents the City's final total taxable assessed valuation (AV) for 1991 which will be used to determine the 1992 property tax levy. This is the 'regular levy' AV. (B) Reflects year-end balances available in the Debt Service Fund (C) Combined total for Councilmanic, Financing Lease, and Excess Levy capacities. City of Federal Way / 109 COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1991 Table 9 GROSS GENERAL PERCENTAGE AMOUNT OBLIGATION DEBT APPLICABLE TO APPLICABLE TO JURISDICTION OUTSTANDING (A) FEDERAL WAY (B) FEDERAL WAY CITY OF FEDERAL WAY $ 15,360.000 (C) 100.00% $ 15,360.000 KING COUNTY 352.800,000 3.03% 10,689.840 PORT OF SEATTLE 23.700.000 3.03% 718,110 SCHOOL DISTRICT #210 56,280,000 67.70% 38.101.560 GREEN RIVER FLOOD ZONE - 0.94% FIRE DISTRICT #39 2,460,000 69.88% 1,719,048 LIBRARY 38,780,000 7.32% 2,838.696 TOTAL DIRECT AND OVERLAPPING DEBT $ 69,427,254 (A) Total general obligation bonds outstanding on December 31, 1991, exclusive of refunded bonds. Source is King County Department of Finance. A Determined by ratio of 1991 assessed valuation of property subject to taxation in overlapping unit to valuation of property subject to taxation in reporting unit (C) Includes $1,450,000 in certificates of participation (financing lease) issued in 1991 110 / City of Federal Way RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR Table 10 GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES FISCAL YEAR PRINCIPAL 1990 $ 0 1991 300,000 TOTAL DEBT INTEREST (A) SERVICE $ 0 $ 0 111,203 411,203 RATIO OF DEBT TOTAL SERVICE GENERAL TO GENERAL GOVERNMENTAL GOVERNMENTAL EXPENDITURES (B) EXPENDITURES S 22.540.708 1 8% (A) Excludes bond issuance and debt registration costs. (B) Includes other financing uses for general, special revenue, and debt service funds. See Table 1 for detail. City of Federal Way / 1 1 1 FISCAL PER CAPITA YEAR POPULATION INCOME (A) 1990 67,304 $ - 1991 70,660 15.750 DEMOGRAPHIC STATISTICS Table it EDUCATION LEVEL IN YEARS MEDIAN OF FORMAL SCHOOL UNEMPLOYMENT AGE SCHOOLING ENROLLMENT (B) RATE (C) 29 13.0 18.167 3 4% 27.8 13.0 18.855 4 6% (A) Per capita income for Federal Way was not available for 1990 - the year of incorporat}on. (B) Includes both public and private school enrollment IGndergarten is included though not State mandated (C) Unemployment rates reflect the annual average for lGng County Sources: Population data was obtained from the State Office of Financial Management School data was provided by the Federal Way School District Per Capita Income was obtained from the Ci y's Community Development Department Unemployment rate data was received from the State of Washington Employment Security Department 112 / City of Federal Way m U 2 c c O N N U N i LLl � C 4 O -2 m M n � N � n N � m N _ cli z FE x o � m = Q. N N � C � 7 1OA i > O of C c 0 YN N J CL J i Q ' o g C � r L O — C N s N am 0 >vcco to O N N G E € cm O N •- U a cR cR City of Federal Way / 113 PRINCIPAL TAXPAYERS Table 13 December 31, 1991 Percentage 1990 Of Total Assessed Assessed Taxpayer Type of Business Valuation Valuation (A) SeaTac Mall Associates Shopping Center $ 42.057,495 1.31 % Weyerhaeuser Real Estate Co. Real Estate 40,611,359 1 26% U.S. West Communication fralephone 35.870.473 1.12% Puget Power and Ught Power Utility 29,531.840 0.92% Cushman & Wakefield Real Estate Management 18,473,800 0 57% Flanagan-Bal/Century Square Center Shopping Center 12.067,919 0.38% Inter Co-op USA/Manpower Temporary Services 10.458,000 0.33% Quadrant Corporation Real Estate Management 10,360,554 0.32% Virginia Mason Clinic Medical Services 9.939,735 0.31 % Washington Natural Gas Natural Gas Utility 8,375,624 0.26% $ 217,746,799 6.78% (A) 1991 assessed valuations for taxes collected in 1992- Total 1991 assessed valuation for the City is $3,213,952,495. Source: l(ing County Assessor. „4ZCity o Federal Way k§0 K 2 § A co0 §�© acli �a Co. § 3 § § § k ° §� Csi coo o 68� § m §§ 2' §' 2 ^§ $ 25a /22 �§§ q■f�)� �$ • ,,' 2� 2 7§ |�2 'o-mi k-k J §/ §S�SE0 a|$2 §|§ ��o co � < a. 'L J � � IL J I R CL k } LL k §»§ # K LU Q U. 0 .9- $ i 11 0 § 2 ■�ff�h» - i a �t « w=2= o �� �� \f § ■ §a§�°52 E §. Cl) 0Lb:C) � 2\ &} kj 2 } a. a. b E § i I �$ 2 F/ F 2 2§ G § G §§ G§ §§ G G 3 n U) LU z § j § j § b o 0 9 0 0 0 0 2 § § § \ IL § § B 2 @ @ i z ■ ad � \ } � E ƒ 2E §� . kJ § § LU c '2 2) ■ `s z7� 7§ kt 7I 72 7 ;E §c c )2 22 3 -1 �� 2� Or¥ of Federal Way Zii5 �I �■ �2 - § 2 f $§ a a _ to � to § k) � © 7 k ■ = - §§ A§§§ 5 ~ §£fKf§i § .j a. R � < RcLa- � ) ui a m O f w z § k 2 � 2 - ML 2 k _ � °, I j 5 a 2 k E 0 2 2 ICLLI 0 & & � uj k 2 / � ■ § � CL 2 § k $ 0 u B LU z § / to to 2 CY cm ] % G C4 to _ _ _ § § § § § § 2 E E S E E \ \ \ � J R a k ID ` 2 � 2 I 3 � � ■ ] $ ■ ■ � CD CD �k� kf /ƒ EcE §e I ] ± -2 )Au ]6 o} ko]f� 2 z �3f a. a. a. a CL �ac a a §oc /oc a2 a£ 0 c § C § C 2 r o § B 2 \ E ■� k\ 2\ 2/ 2/ I\ » § :2 q 2 S E E &8 = E co N 116 / City of Federal Way SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS Table 15 December 31, 1991 POSITION MAYOR COUNCILMEMBERS POSITION CITY MANAGER ASSISTANT CITY MANAGER/ PERSONNEL DIRECTOR ASSISTANT CITY MANAGER/ COMMUNITY DEVELOPMENT DIRECTOR CITY ATTORNEY CITY CLERK FINANCE DIRECTOR PARKS, RECREATION & HUMAN SERVICES DIRECTOR PUBLIC WORKS DIRECTOR LEGISLATIVE BODY EMPLOYEE DEBRA ERTEL MARY GATES JIM HANDMACHER JOEL MARKS BOB STEAD LYNN TEMPLETON JIM WEBSTER ADMINISTRATIVE STAFF EMPLOYEE J. BRENT MCFALL STEPHEN L. ANDERSON KENNETH E. NYBERG SANDRA R. DRISCOLL MAUREEN SWANEY JOHN MOIR ERIK JOE STEVENS PHILIP D. KEIGHTLEY ANNUAL SALARY S 6.000 $ 4 800 S 4 800 S 4.800 $ 4.800 S 4.800 S 4.800 ANNUAL SALARY S 84.000 $ 59.856 - 73,008 $ 59.856 - 73,008 $ 59,856 - 73,008 $ 44,664 - 54,420 $ 54,288 - 66,144 $ 54,288 - 66,144 $ 54,288 - 66,144 NOTE: In accordance with State of Washington legal statutes, individual fidelity coverage of not leas than $100,000 exists for both the City Manager and Finance Director. City of Federal Way / 117 MISCELLANEOUS STATISTICAL INFORMATION Table 19 December 31, 1991 TYPE OF GOVERNMENT Council - City Manager ORGANIZATION STRUCTURE Leposlative Executive Mayor 1 City Manager 6 Councilmembers 2 Assistant City Managers CORPORATE INFORMATION Administrative 5 Organization Directors/City Officials The City of Federal Way is a noncharter optional code City. It was incorporated as an optional code city on February 28, 1990, and will be governed under the provisions of the Optional Municipal Code of the Revised Code of Washington. Optional Code City status increases the City's operating authority by extending to it the powers of all four city classifications which exist in Washington law. LOCATION AND AREA Federal Way, the sixth largest city in the State of Washington, encompasses an area of 19.0 square miles. It is located in south King County approximately 25 miles south of downtown Seattle and 8 miles north of downtown Tacoma. The community is residential and commercial, with the populace employed locally and in neighboring cities such as SeaTac, Kent, Tacoma, Bellevue, Seattle. The City has approximately 29,726 housing units. It is 6 miles from the Port of Tacoma and 9 miles south of SeaTac International Airport. The City is served by Interstate 5 and state highways 99 and 509. Frequent Metro public bus service is available to both Seattle and Tacoma throughout Federal Way. Three express park -and -ride lots are provided. POPULATION, REGISTERED VOTERS AND EMPLOYMENT WITHIN CITY LIMITS The population of Federal Way is presently 70,660, of which 26,575 are registered voters. A total of 21,885 (est.) people are employed within the City limits. NUMBER OF CITY EMPLOYEES On December 31, 1991, the City employed 81 full time salaried and no part-time hourly employees. The 1992 Budget increases staffing to 113 FTE positions. There were no commissioned police officers or uniformed firefighters. No unions represented City employees during 1991. 118 / City of Federal Way MISCELLANEOUS STATISTICAL INFORMATION December 31, 1991 (continued) RECREATIONAL FACILITIES 14 Developed park sites covering 218 acres. 8 Undeveloped park sites covering 261 acres. 18 Public courts, two which are owned by the City and lighted. 1 Recreation facility. 2 Public swimming pools, both which are owned by King County. 2 Trails including one undeveloped (2.5 mules) and 1 developed (1.2 miles). 12 Open space/greenbelts covering 96 acres. OTHER CITY -OWNED FACILITIES Park maintenance facility. 5 acre undeveloped site. PUBLIC EDUCATION 1990 1991 20 Elementary schools with enrollment of ................... 10,528 10,957 5 Middle schools with enrollment of ...................... 3,951 4,153 3 High schools with enrollment of 3,371 3,417 3 Alternative schools with enrollment of .................... 317 300 TOTAL ENROLLMENT ........................... 18,167 18,827 1,005 Certifiers teachers. 62 Certified administrative staff. 868 Full-time college faculty and administrative staff classified employees. 9 Part-time college faculty and administrative staff classified administrators. MILES OF STREETS, ETC. Streets (Center Line Miles) .............................. 226.4 miles SIGNALS/STREET LIGHTS City owned traffic signals maintained by Department of Transportation ............................ 18 City owned traffic signals maintained by King County .............. 17 Street lights owned by City of Federal Way .................... 128 Street lights owned by Puget Power ......................... 653 City of Federal Way / 119 MISCELLANEOUS STATISTICAL INFORMATION December 31, 1991 (continued) LOCAL TAXES ON BUSINESS Franchise Tax - Cable TV .. ........................ 5.00 % Gambling .......... . ... ...... . ...... ....... 10.00% Local Sales Tax .............. . - - - ... - - - - - - - - .... 1.00 % (Collected by the State) POLICE INFORMATION Offenses: 1990 1991 Rape...................•••.................... 72 96 Robbery ........................................ 99 127 Homicide........................................4 1 Assault ..................................... I ... 134 186 Auto Theft ................................... . .. 496 535 Burglary ........................................905 883 Larceny ...................................... 3,383 3,890 Arson Confirmed .................................. 41 37 Citations: Traffic .............. . . ................... . ... 7,849 10,862 Judicial System: Handled by District Court 5,681 9,276 Jail Facility: King County Jail used at $45.72 per day per person, plus $76.01 booking fee per person. Misdemeanor maintenance and bookings in 1991 were 2,497 and 768, respectively. FIRE AND MEDIC 1 INFORMATION 1990 1991 Fire Responses: ................................. 1,757 1,723 Emergency Medical: ................. . ............ 4,441 4,807 (Fire and Medic I information reflects the greater Federal Way area, which is served by Fire District #39.) 120 / City of Federal Way MISCELLANEOUS STATISTICAL INFORMATION December 31, 1991 Icontinuedl BUILDING RELATED PERMITS AND VALUES 1990 1991 Building permits ...... - - - ................. 582 536 Estimated Value (In Millions $) ..... ... ................ S54.7 $35.9 Other Building Related Permits ............ ........... 1,164 1,058 Estimated Value (In Millions $) ........ , .............. . . S1.2 S8.3 TAXABLE SALES (in Millions S) 1990 1991 Retail Sales .................................... S538.8 S770.1 Real Estate Sales ............ .................... $317.8 S270.5