1992 Annual Comprehensive Financial Report (92-006)CITY OF FEDERAL WAY
WASHINGTON
PERMANENT RECORD
DO NOT DESTROY
GS50-03D-02, Rev. 1 (CAFR)
1Ion 01- oos
Comprehensive Annual Financial Report
:Year Ended December 31; 1992
Comprehensive
Annual Financial Report
Year Ended December 31, 1992
City of Federal Way
Washington
CRY OF
Prepared by
Management Services Department
CITY OF �
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 1992
Table of Contents
Statement
Reference Page
INTRODUCTORY SECTION
Letter of Transmittal .......................................... iii
City Officials and Administrative Officers .......................... ... 1
City Functional Organization Chart ................................. 2
GFOA Certificate of Achievement .................................. 3
FINANCIAL SECTION
Auditor's Opinion ............................................ 5
Combined Financial Statements - Overvie
("Liftable" General Purpose Finance Statements) ...................... . ..... 7
Combined Balance Sheet - All Fund Types and Account Groups ............... 1 8
Combined Statement of Revenues, Expenditures, and Changes in Fund Balance -
All Governmental Fund Types and Expendable Trust Funds ................. 2 11
Combined Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General, Special Revenue and Debt Service Fund Types ...... 3 12
Combined Statement of Revenues, Expenses, and Changes in Retained Earnings -
All Proprietary Fund Types ..................................... 4 14
Combined Statement of Cash Flows - All Proprietary Fund Types 5 15
Notes to the Financial Statements .................................. 17
Combining, Individual Fund and Account Grow
Statements and Schedules
General Fund .............................................. 45
Balance Sheet ............................................ 45
Statement of Revenues, Expenditures, and Changes in Fund Balance ........... 46
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual ........................................ 47
Schedule of Expenditures Compared to Budget 48
Special Revenue Funds ........................................ 54
Combining Balance Sheet ..................................... 54
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ... 56
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual ........................................ 58
Debt Service Fund ........................................... 65
Balance Sheet ............................................ 65
Statement of Revenues, Expenditures, and Changes in Fund Balance ........... 66
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual .................. . . ................... 67
Table of Contents (Cont'd)
Table Page
Combining, Individual Fund and Account gaup
Statements and Schedules (continued)
Capital Project Funds ........................................ 69
Combining Balance Sheet ..................................... 69
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ... 70
Internal Service Funds ........................................ 71
Combining Balance Sheet ..................................... 71
Combining Statement of Revenues, Expenses, and Changes in Retained Earnings ... 72
Combining Statement of Cash Flows .............................. 73
Trust and Agency (Fiduciary) Funds ............................... 75
Combining Balance Sheet ...................................... 75
Federal Way Retirement System Expendable Trust Fund
Balance Sheet .......................................... 76
Statement of Revenues, Expenditures, and Changes in Fund Balance ....... , . 77
Combining Statement of Changes in Assets and Liabilities -
AllAgency Funds ........................... ........... 78
General Fixed Assets Account Group ............................... 79
Schedule of General Fixed Assets - By Source ........................ 79
Schedule of General Fixed Assets - By Function and Activity ............... 80
Schedule of Changes in General Fixed Assets - By Function and Activity ........ 81
STATISTICAL SECTION
General Governmental Expenditures and Other Uses by Function -
General, Special Revenue and Debt Service Funds ......................
1
83
Schedule of Major Revenues and Other Financing Sources by Source -
General, Special Revenue and Debt Service Funds ......................
2
84
Tax Revenue by Source - General, Special Revenue and Debt Service Funds ........
3
85
Property Tax Levies and Collections ....... 4 ........ .......
4
86
Assessed and Estimated Actual Value of Taxable Property ...................
5
87
Property Tax Rates - Direct and Overlapping Governments ..................
6
88
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita .
7
89
Computation of Limitation of Indebtedness ............................
8
90
Computation of Direct and Overlapping Debt ...........................
9
91
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total
General Government Expenditures ................................
10
92
Demographic Statistics ..................................... , ...
11
93
Property Value, Construction, and Bank Deposits ........................
12
94
Principal Taxpayers ...........................................
13
95
Schedule of Insurance in Force ....................................
14
96
Salaries and Surety Bonds of Principal Officials .........................
15
98
Miscellaneous Statistical Data ................................. . ...
16
99
CITY OF A Rr�-j
33530 1ST ',.1VAY SOUTH
May 25, 1993
People of the City of Federal Way
Honorable Mayor and City Council
(206) 661-4000
FEDERAL WAY, WA 98003-6210
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,
1992 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. All seven seats held by the interim City Council were succeeded as a result
of the November 5, 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 -today 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 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. Services for a land use hearing examiner are
contracted. Effective March 15, 1993, the City reorganized into seven major departments including City
Manager; Law; Management Services; Parks and Recreation; Community Outreach and Policy Planning;
Public Works; and Community Development.
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. School
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 72,350
as of April 1, 1992.
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
o c c u p i e s
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 1, 1993 estimated to be 72,532. The 1992 population figure of 72,350
is an increase of 2.4% 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.
iv
In 1992, there were
29,850 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 6.9 %
increase over 1990
and a 0.5% increase
over 1991, 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, 21,884 in 1991, and is projected to grow to 27,859 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.
The City's 1992 taxable retail sales were $812.5 million, a 5.5% increase over the annualized estimate
($770.1 million) for 1991. The retail sector of the local economy is anchored by the SeaTac regional
mall, Costco, Fred Meyer, Eagle Hardware, and many other businesses adjacent to the City center.
According to a 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 1992, new improvements to real estate totalled approximately $65.5 million or 1.7% of the City's
assessed valuation. The total assessed value of taxable property in Federal Way increased 13.4%, from
$3.2 to $3.6 billion between 1991 and 1992. Real estate sales increased 9.7 %, from $265.7 million in
1991 to $291.6 million in 1992. A total of 1,865' building permits were issued in 1992 with a total
valuation of $60.7 million. These figures were higher than 199l's results by 17 % and 37 %, respectively.
Permits for single family residential housing totalled 400 and were valued at $36 million - an average of
$96,300 each, or 21% below 1991. Commercial permits totalled 175 and had a value of $17 million
which reflects a 54% increase from 1991.
The Boeing Company announced on February 19, 1993 that up to 19,000 jobs will be lost over the next
18 months. This massive layoff is the result of the airline industry losses of an estimated $8 to $9 billion
during the last three years. Airline companies are in serious financial trouble and to keep operating, they
v
must cut costs, reduce employment, postpone aircraft deliveries and cancel aircraft orders, with the latter
two directly affecting the Boeing Company.
City staff prepared an analysis which concluded that the realistic economic growth in the Puget Sound
Region for 1993 will be approximately 0.62%. The analysis revealed that the bottom line affect on
Federal Way could be minimal, resulting in a loss of $71,485 in sales tax revenues. The City's 1993
sales tax projections do not take into consideration the sales tax revenues which will be generated by
Eagle Hardware and other new businesses. This revenue could be the economic shock absorber needed
to shield a dramatic decrease in sales tax revenue. Other revenues are not expected to be affected
dramatically because of the conservative projections used in estimating 1993 revenues.
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 occupations
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 ACCOMPLISHMENTS
Since the City officially incorporated on February 28, 1990, 1992 was the second full year of service to
the community. Specific events or accomplishments in this dynamic year include the following:
The City developed and appointed the City's Youth and Diversity Commissions, formed the
City's Economic Development Board in cooperation with the Chamber of Commerce, enhanced
community involvement through the offsite Council meeting, strengthened regional relationships,
initiated action for the merger of the Federal Way Water and Sewer District into the city
government, reviewed and analyzed contracting options for the provision of city services, and
developed and implemented a Community Policing and Neighborhood Traffic Safety program.
A total of 1,824 building permits were issued, 146 major discretionary land use permits and 312
code compliance complaints were received, and a number of carryover projects vested with King
County were completed. - -
The City instituted the Tidemark permit tracking system, increased outreach to Korean -speaking
permit applicants, extended service hours for development services, initiated the "City Shape"
project, developed three alternative visions of Federal Way's future, and compiled and reviewed
a Capital Facilities Element and a Private Utilities Element for inclusion in the Comprehensive
Plan as required by the state's Growth Management Act.
® Over 2,900 business registrations were processed, the codification of all City ordinances was
completed, and posters, pins and bumper stickers were designed for the Neighborhood Safety
Campaign.
® The first systematic, collaborative budget process was completed in 1992. Certificates of
Participation were issued to acquire the Financial Center Building (City Hall), and the GFOA
recognized the City through its awards for the Comprehensive Annual Financial Report and
Budget documents.
A
The City thoroughly reviewed its existing insurance coverage, conferred with a loss control
representative to set up facility inspections and a defensive driver training class, restructured its
Risk Management/Purchasing programs, processed nearly twice as many purchase orders for
payment than in 1991, reformatted the monthly financial report to enhance comprehension,
implemented a new consolidated check request form, brought the budget module in the automated
financial system on-line, and devised a method for transmitting payroll information which saved
hours of work each pay period.
The City's geographic information system began to be developed and computer networks were
extended to remote sites. A full time System Manager was hired to replace two part time
consulting contracts at a savings of $10,000 per year, and staff "trainers" received training on
various software applications.
• The City retained work-study legal interns, successfully defended the City's .08 DWI Standard,
processed a 72% increase in traffic infraction filings over 1991, realized a 60% increase in filings
of criminal citations over 1991, and coordinated all areas associated with the enforcement of the
City's Criminal Code.
® In the area of surface water management, preparation of a GIS overlay began and the Panther
Lake Surface Water Study was completed, as were multiple small capital improvement projects.
The program itself was rounded out by hiring a maintenance crew, acquiring equipment and
providing an enhanced level of service.
The City eliminated the need for contracted inspection services by hiring three public works
inspectors, reduced response time in the plan review process by adding two additional design
staff, assumed responsibility for issuance and inspection of right-of-way permits from King
County, assumed records of roadway and storm drainage construction from King County, began
offering curbside collection of recyclables, held a citywide recycling event, hosted a yard waste
recycling and chipping event, obtained State, Metro and developer funding, obtained over
$400,000 in ISTEA Federal grants, began work on the City's Pavement Management System,
completed the 1992 Pavement Overlay program, worked on three major street and signal
improvements, and reduced the 1992 King County maintenance contract through the use of crews
and private contractors.
Human resource concerns received intense focus by conducting organizational training, analyzing
health and dental coverage and the feasibility of self -funding, administering the employee
recognition program, developing and implementing a program for complying with the
requirements of the Americans with Disabilities Act, developing and publishing a hiring
handbook, and developing and implementing a Community Involvement Program.
The City developed multiple facilities at various park locations, completed design and began
construction of Alderdale neighborhood park, acquired 78 acres under the King County Open
Space Bond Program, submitted two park grant applications for $300,000 each, worked with 15
service organizations to complete park improvements, operated the City's first full year of
recreation services, provided lifeguards at Steel Lake Beach, facilitated 10 Federal Way Arts
Commission projects, implemented 21 human service contracts, developed and implemented
CARES (an after school childcare program), and initiated Community Development Block Grant
projects.
vii
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:
Housin.2 and Population
• Preserve the predominantly single-family character and appearance of the community by
establishing population densities consistent with neighborhood and citywide objectives.
m 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.
• 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 /Industrial
e 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.
a Control strip development on major arterials while maintaining existing vital businesses.
• 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.
0 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 Space
• 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.
viii
■ 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 Envir nment
■ 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 continue to be to maintain its relative fiscal strength, facilitate the
maturation of its municipal corporation, make city government easier to access, understand, and
participate in, 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 1993, the City of Federal Way has managed to
conservatively plan for the following enhancements to City services and facilities:
• Funding has been provided to contract for two additional motorcycle police officers for reactive
patrol, as well as for the Neighborhood Safety Program.
a Resources will continue to be devoted to the City Center Land Use and Transportation studies
along with the Public Involvement program.
m Service delivery will be enhanced by hiring one Plans Examiner/Inspector, one Senior Planner,
and one Water Quality Engineer.
• Work will be completed to synchronize traffic signals on SR 99 and on 320th Street in the City
Center area.
• The initial implementation of the City's Geographic Information System is anticipated to be
completed in 1993.
• The Transportation Demand Management program will be developed through a contract with
Metro.
• Construction will begin on the Panther Lake Regional Detention Pond project.
ix
An innovative venture entered into by the City and the School District will come to fruition as
construction begins on the 36-acre joint development of Campus Drive Park/School Site #6 in
anticipation of a September 1994 opening.
■ Monies have been allocated to implementing a Special Populations program, including hiring one
Recreation Coordinator.
® Funding has been provided to support the establishment and operation of a community/senior
center, including hiring one Recreation Manager, one Recreation Coordinator, and one
Administrative Assistant I.
■ From fund balance (General Fund), $300,000 has been set aside for a potential 1994 Steel Lake
Park development grant match.
■ Appropriations have increased over $600,000 over 1992 for police, jail, contracted or mandated
services such as State Auditor, and health services.
■ Salary and fringe benefit costs as a percentage of total expenditures will remain remarkably low
at about 17 % - a little over half of the percentage allocated by all cities in the state.
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.
Singie Audit
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, 1992 indicated that there were no material weaknesses in the
internal control structure.
Budgetary Controls
The City maintains budgetary controls in accordance with the Revised Code of Washington (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
x
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 current period.
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.
GENERAL GOVERNMENT FUNCTIONS
Overview
The general governmental analysis will include the General Fund, all Special Revenue Funds and the
Capital Project Fund.
The City added three new special revenue funds during 1992, which has an effect of artificially inflating
the 1992 financial performance as compared to 1991. These funds were the Solid Waste/Recycling Fund,
Special Contracts/Studies Fund, and the Impact Fee Fund. The following presentation shows the
operations for these funds during 1992:
ATEl11ENT
OPERATING STATEMENT
ALL NEW SPECIAL REVENUE. FUNDS - 1992
Solid; Wastcl
Spcaial
=>irti-;
Item
Rvuycling
Contractl5tudies;:;::::.:.
l ripacf Fee
Total
Beginning Fund Balance
$
---
$ ---
$
---
$
Revenues:
Services/Charges
---
---
548,335
548,335
Other Financing Sources
122,722
57,500
---
180,222
Subtotal Revenues
$
122,722
$ 57,500
$
548,335
$
728,557
Expenditures:
Other Services & Charges
---
---
196,562
196,562
Capital Outlay
---
--
27,500
27,500
Subtotal Transportation
Expenditures
$
—
$ ---
$
224,062
$
224,062
Ending Fund Balance
$
122,722
$ 57,500
$
324,273
$
504,495
Xi
Overall financial performance in the General Fund, Special Revenue Funds and Debt Service Fund was
very positive in 1992. Revenues and other sources of funds totalled almost $32.6 million as compared
to $26.3 million for 1991.
This results in an increase of
24.2 % (21.5 % excluding the
new funds). Expenditures
and other uses of funds
totalled $28.9 million as
compared to $22.8 million
for 1991, an increase of
26.9 % . Excluding the new
funds, expenditures increased
by 25.9 % . Aggregate fund
balances for these funds
ended the year totalling $13.5
million, a $3.8 million
increase over the year's
beginning balance.
The General Fund ended
1992 with a $3,484,753 fund
balance. This was a $1.77
million increase over the fund
balance at the end of 1991.
General Fund revenues
increased by $649,000 over 1991 and expenditures decreased by $268,000 although during 1991 the City
transferred $2 million to a strategic reserve fund. Eliminating this transfer for 1991 would result in an
increase in expenditures in 1992 of $1.732 million over 1991 reflecting the implementation of a modest
range of City programs which were not yet operational in 1991.
Revenue Summary
The following charts present
a summary of General,
Special Revenue, and Debt
Service Fund revenues,
including other financing
sources, for the 1992
calendar year as compared to
1991. A comparison of
major revenue classifications
for 1992 is also presented.
For comparison purposes, the
certificates of participation
issued in 1991 have been
eliminated from Other
Financing Sources.
xii
1992 REVENUES AND OTHER SOURCES:
General, Special Revenue and Debt Service Funds
Interest/Miscellaneaous (2.6%)
Intergovernmental (28.6%)
Flnes/Forfeltures (1.3%)
Servlces/Charges (1
Lleensesj
Taxes (44.0%)
:)urces (9.0%)
GENERAL. SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Revenues and Diller R1E➢1LnCiug Sj ur
Revenues
I g0L
195�1
change ,.:
A��sounr
Pereetzt
Taxes
$ 14,351,929
$ 13,359,964
$ 991,965
7.42%
Licenses/Permits
771,568
720,363
51,205
7.11%
Intergovernmental
9,349,850
5,467,866
3,881,984
71.00%
Services/Charges
3,936,975
1,615,171
2,321,804
143.75%
Fines/Forfeitures
414,178
288,254
125,924
43.69%
Interest Earnings
512,702
677,120
(164,418)
-24.28%
Miscellaneous
344,958
44,869
300,089
668.81%
Other Financing Sources
2,957,298
4,100,770
(1,143,472)
-27.88%
Total Revenues
$ 32,639,458
$ 26,274,377
$ 6,365,081
24.23%
Taxes, intergovernmental revenues, service charges, and miscellaneous were the revenue categories with
the best performance during 1992. Taxes increased by 7.4% over 1991 based on increased sales tax
($350,000), local criminal justice sales taxes ($50,000) and property taxes ($500,000). Positive
intergovernmental revenue performance was attributable to a $2.8 million Transportation Improvement
Board grant, $815,000 from King County and $463,000 from Federal Way Water and Sewer District for
the S. 356th Arterial Street project. These additions were offset by a $400,000 decrease in miscellaneous
grants (in 1991 the City received an IAC grant for park acquisition). The City Council approved an
increase in surface water fees for 1992. This accounted for $1.4 million increase in other services and
charges. The receipt of $548,000 mitigation fees in the new impact fee fund also contributed to this
growth.
The decrease in other financing sources is the result of the transfer of $2 million from the general fund
to the strategic reserve fund during 1991, although there were other miscellaneous transfers that occurred
in 1992 and not in 1991. Interest earnings also decreased during 1992 due to the drop in the Washington
State Investment Pool earnings rate from 6.21% in 1991 to 3.94% in 1992.
Expenditure Summary
The following charts present a summary of the General, Special Revenue, and Debt Service Fund
expenditures for the year ending December 31, 1992. For comparison purposes in 1991 the $1.450
million certificates of participation have been eliminated.
1992 EXPENMURFS BY FUNCTION/OTHER USES
General, Special Revenue and Debt Service Funds
Other Financing Uses (11.7%)
Debt Service (7.z
Capital Outlay (1.4%)
Economlc Environment (6.9%) -
Health (3.
Culture & Recreation (8.3%)
General Government (8.5%)
Equity Transfers (1.4%)
,,_.,—Public Safety (22.9%)
Physical Environment (0.4%)
Transportation (27.5%)
............. GENE RAL. SPECIAL REVENUE, AIN 3 € EMT SERVICE %'[1 S . . ...:...:.....:..:
EWndltnres By Funetl U
ter
. . .. . .
An ow �'ercent
General Government
$ 2,459,407
$ 2,124,780
$ 334,627
15.75 %
Public Safety
6,602,857
6,623,270
(20,413)
-0.31 %
Physical Environment
121,866
18,755
103,111
549.78%
Transportation
7,924,118
4,530,747
3,393,371
74.90%
Economic Environment
2,000,947
2,283,794
(282,947)
-12.39%
Health
1,069,470
468,430
601,040
128.31%
Culture & Recreation
2,406,194
1,908,171
498,013
26.10%
Capital Outlay
401,998
---
401,998
N/A
Debt Service -Principal
365,000
300,000
65,000
21.67%
Debt Service -Interest
1,736,319 1
161,418
1,574,901
975.76%b
Other Financing Uses
3,394,980
4,121,343
(736,363)
-17.87%
Residual Equity Transfer Out
404,420
221,320
183,100
82.73%
Total Expenditures
$ 28,877,466
$ 22,762,028
$ 6,115,438
26.87%
AV
GI NERAL, SPECIAL. RE5'ENUE, AND DEBT S i . ,. ..
Fxper;ditures By Object ...
CJbject.,..
1992
�'hrai e
tli7t
Amo ..
Percent::
Personal Services
$ 4,828,615
$ 3,408,259
$ 1,420,356
41.67%
Supplies
434,561
230,673
203,888
88.39%
Other Services and Charges
2,820,023
2,893,192
(73,169)
-2.53%
Intergovernmental
12,535,476
13,080,778
(545,302)
-4.17%
Capital Outlay
4,724,663
1,750,503
2,974,160
169.90%
Debt Service Principal
365,000
300,000
65,000
21.67%
Debt Service Interest
1,733,819
161,418
1,572,401
974.12%
Interfiind Services
1,435,309
937,205
498,104
53.15%
Total Expenditures
$ 28,877,466
$ 22,762,028
$ 6,115,438
26.87%
1992 EXPENDITURES BY OBJECT
General, Special Revenue and Debt Service Funds
Debt Service (7.3%)
Capital Outlay (16.3%)
Intergovernmental (43.4%)
Services (16.7%)
Supplies (1.5%)
Services/Charges (9.8%)
nterfuncl Services (5.0%)
Transportation and Capital Outlay both increased during 1992 due to the S. 356th Arterial Street project
that was partially funded by a grant and intergovernmental revenues. Debt Service interest increased due
to a full year of interest on the February 1991 general obligation bond issue and the September 1991
Certificates of Participation issue.
The increase in Health is the result of increased health services contract costs with King County. This
also represents a reclassification of human service contracts from economic environment to human service
during 1992.
During 1992, the second full year of operations, the City implemented a modest range of City programs
that were not operational in 1991. This resulted in increased personal service and supply expenditures.
Fund Balance
Overall fund balances in the General and Special Revenue Funds totalled $12.1 million in 1992 compared
to $7.7 million in 1991. This represents an increase of 57.8%. The fund balance in the Debt Service
xv
Fund reflects revenues set aside to pre -fund the debt service on outstanding general obligation debt.
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
sis of Fund Balance:'
Analysis
Change
Anwuns::'; Peromf
Fund $lance
1992
1991
General
$ 3,494,753
$ 1,712,553
$ 1,772,200
103.48 %
Special Revenue
Street
833,975
1,488,059
(654,094)
-43.96%
Arterial Street
2,116,367
972,674
1,143,693
117.58%
1st lk % Real Estate Tax
128,507
112,115
16,392
14.62%
2nd 'k % Real Estate Tax
101,212
87,479
13,733
15.70%
Solid WastelRecycling
122,722
---
122,722
N/A
Special Contracts/Studies
57,500
—
57,500
N/A
Grants -Miscellaneous Governmental
286,252
499,274
(213,022)
-42.67%
Community Development Block Grant
---
--
N/A
Paths and Trails Reserve
19,395
10,817
8,578
79.30%
Surface Water Management
2,550,008
788,737
1,761,271
233.30%
Impact Fee
324,273
--
324,273
N/A
Strategic Reserve
2,078,894
2,000,000
78,894
3.94%
Subtotal Special Revenue
8,619,105
5,959,155
2,659,950
44.64%
Debt Service
1,434,785
2,104,943
(670,158)
-31.4%
Total Fund Balance
$ 13,538,643
$ 9,776,651
$ 3,761,992
38.48%
PROPRIETARY OPERATIONS
In 1992 the City utilized five internal service funds to account for activities related to risk management,
data processing/telecommunications, support services, fleet and equipment, and buildings and furnishings.
Operation and depreciation related replacement charges to users are based on office staff counts,
equipment used and specific depreciation schedules. Residual equity transfers are recorded from other
City funds to finance first time asset acquisition. The City currently does not have enterprise'funds.
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.
xvi
DEBT ADMINISTRATION
During 1992, the City issued $2,330,000 in certificates of participation, a financing lease obligation to
purchase the Financial Center property, the City's current City Hall.
The City's outstanding debt is .48% of its taxable assessed valuation. As of December 31, 1992, the
City's remaining debt capacities are summarized below:
Use
® General Government Use
Ca aci
• Non -voted: $ 14,867,454
• Certificates of Participation: 23,601,799
• Voted: 3fi 2� 6
Subtotal General $ 74,708,899
Park and Open Space Use
• Voted: 90,599,114
Utility System Use
• Voted: 90.599.1 i4
Total Capacity $255
Non -voted (councilmanic) general obligation bonds and certificates of participation are reductions in the
general government debt capacity. To the extent that such debt is issued, the City's voted debt capacity
is reduced.
CASH MANAGEMENT
On December 31, 1992 the City had $15,310,601 invested in the State Local Government Investment
Pool. The Pool investments included bankers acceptances (6.2%), repurchase agreements (46.4%), U.S.
Agency securities (9.3%), U.S. Treasury securities (34.9%), and certificates of deposit (3%). Pool
investments had an average term to maturity of 62 days.
The state charges an administrative fee equivalent to five basis points (.05 %). The 1992 average monthly
earnings rate was approximately 3.94% after deducting the administrative fee. Investments were fully
guaranteed by federal insurance or state collateral programs.
RISK MANAGEMENT
The City maintains insurance against most normal hazards except for unemployment insurance, for 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
1992, the City purchased commercial insurance policies from commercial insurers.
xvii
During 1992, 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.
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.
SUBSEQUENT EVENTS
Following the year ended December 31, 1991 and prior to the publication of this CAFR, the following
subsequent events occurred and are disclosed in the notes to the financial statements:
The City purchased a Community/Senior Center facility for $695,941.
The City issued $2.39 million in general obligation bonds to finance Campus Drive Park. The
City also refunded 1991 general obligation bonds in the amount of $12.105 million, resulting in
a net present value saving of $356,000.
In conjunction with these two bond issues, the City received an upgraded bond rating from
Moody's Investors Service from A to Al.
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 1992 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 1992. The State
Auditor's report on the general purpose financial statements is included in the financial section of this
report.
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, 1991. 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.
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, 1992. 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.
xviii
ACKNOWLEDGMENTS
The preparation of this comprehensive annual financial report represents the culmination of months of
concerted teamwork by the entire staff of the Management Services 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 Marie Mosley,
John Caulfield, Demy Alcantara, Alexis McAlpine, Tam Swett, Becky Metcalf, and Terri Mendenhall.
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,
J. Brent McFall
City Manager
Deborah S. Larson -
Director of Management Services
xix
Cmr OF G
City of Federal Way / 1
CITY OFFICIALS
ROBERTSTEAD
Mayor
JOEL MARKS MARY GATES
Deputy Mayor Councilmember
RON GINTZ MAHLON'SKIP' PRIEST LYNN TEMPLETON
Councilmember Councilmember Councilmember
J. BRENT McFALL
City Manager
OTHER ADMINISTRATIVE OFFICERS
RAY TOMLINSON
Councilmember
Assistant City Manager . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . Stephen L. Anderson
Assistant City Manager . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . Kenneth E. Nyberg
City Attorney . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . Carolyn Lake
CityClerk . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . Maureen Swaney
Management Services Director . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . Deborah S. Larson
Parks Director . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . Erik Joe Stevens
Public Works Director . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . Phillip Keightley
City of Federal Way
PEOPLE OF FEDERAL WAY
MAYOR R CITY COUNCIL
BOARDS AND COMMISSIONS
-----------------------------------------r-----------------------
----------------------r--------------------------------------------
PLANNING 1
T. COMMISSION
i HUMAN I DivERSITy-
SERVICESCOMMISSION i GON1M6516N
I YOUrH
i COMMISSION
ETHICS t ARTS ] PARKS •
BOARD I COMMISSION I OCAMiM�aJ
ti.........r........
I ------------a - -
_
l— 1--=----�---i
.......--
€
---- - ----------------
CITY MANAGER
COMMUNITY OUTREACH
& POLICY PLANNING
—�
I
I
II POLICY RESEARCH
R DEVELOPMENT
I
• Lang Range Planning 3
• CltyShape
• Capltd Facilities Plan
• LeplslalNe/Reglonai Affairs
r
COMMUNITY OUTREACH
--�
• Community hvotvement
• Neighborhood Safety
• Human Services
POLICE
• Drug Aware Resistance Education
• Crime Anaiyls/Prevention
• Traffic Enforcement
• hvesllgattan
• Proactive/Reactive Patrol
_
FIRE
• Rre Suppreslon/Prevention
• Emergency Medical Services
• Public Education
• Hazardous Materials
• Dispatch/Communications
• Disaster Preparedness
MANAGEMENT SERVICES
o City CIerWHea*V Examiner
• Accounting/Treasrxy
• Data Processing
• Purchasing
• Risk Management
• Fhalclai Plamklg
• Budgeting
• Human Renounces
CITY ATTORNEY
• Advise Council, Community Councils,
Boards and Commhlons
• Advice and DPW"
• Prosecution
• CIW Lltlgallon
PARKS ! RECREATION
• Recreation
• Grounds Maintenance
• PadWOpen Space Requisition
• Park Operatiorx/Development
• Cultural/Performing Art
COMMUNITY DEVELOPMENT
SERVICES
PUBLIC WORKS
• Traffic
• Street$
• Surface Water
• Development Review
• Solid Waste/Recycling
DEVELOPMENT SERVICES
• Current Planning
• Building
......
-• WATER/SEWER DISTRICT
• Water Supply/P mping/Dlshibutlon
• Sewage C. d ocillon/Pumping
• Trrxzmms�lon
• Sewage Treatment
• System Maintenance/Construction
City of Federal Way / 3
Certificate of
Achievement The Government Finance
Officers Association of the
United States and Canada
for Excellence (GFOA) awarded a Certificate
of Achievement for Excellence
in Financial in Financial Reporting to the
City of Federal Way for its
comprehensive annual financial
Reporting report for the fiscal year ended
December 31, 1990. The
Presented to Certificate of Achievement is a
prestigious national award
recognizing conformance with
City of Federal Way the highest standards for
� preparation of state and local
Washington government financial reports.
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1991
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.
NGe LI,rFFjI
UU
terSYe
MM
6k cIWM.MN President
SMAL
�'oa as
CHICASS Y�� zerme
Executive Director
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 last two
consecutive years. We believe
our current report continues to
conform to the Certificate of
Achievement program
requirements, and we are
submitting it to GFOA.
CITY FEM
OF
i
�
r
STAT E
AU QITOR'S
OFFICE
Brian Sonntag
STATE AUDITOR
Jack. Heinricher
ASSISTANT STATE AUDITOR
INDEPENDENT AUDITOR'S REPORT
May 17, 1993
The Honorable Mayor and City Council
City of Federal Way
King County, Washington
We have audited the general-purpose financial statements of the City of Federal Way, King County, Washington, as of and
for the fiscal year ended December 31, 1992, 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 Warshipigron 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, 1992, and the results of its operations and cash flows of
its proprietary fund type for the fiscal 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.
The combining, individual fund, and account group financial statements and schedules 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. The 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.
Ver ly y s,
Brian Sonntag
State Auditor
LEGISLATIVE BUILDING o PO BOX 40021 o OLYMPIA W A 98504-0021 ® (206) 753-5277 . FAX (206) 753-0646
CITY OF
CITY (W
Y� R�
General Purpose
Financial Statements
8 / City of Federal Way
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1992
ASSETS
Cash and cash equivalents (Note 4)
Cash with escrow agent
Cash - deferred compensation (Note 9)
Investments with plan administrator
Receivables (net) (Note 5):
Taxes
Accounts and contracts
Interest
Due from other governments (Note 5)
Due from other funds/interfund loans receivable (Note 13)
Property/equipment/improvements (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
Accounts/payroll payable
Retalnage payable
Retainage payable - with escrow agent
Interest payable
Due to other governments - (Note 6)
Due to other funds/interfund loans payable (Note 13)
Deferred compensation payable (Note 9)
Custodial accounts
Deposits payable
General obligation bonds (Note 12)
Certificates of participation payable (Note 12)
Compensated absenses payable (Note 12)
Deferred -revenues -(Note 5)_
TOTAL LIABILITIES
Statement 1
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
$ 3,912,904 $ 8,859,597 $ 1,438,177 $ 404,463
394,906
107 88,973
1,186,143 1,074,909
60,000 - -
$ 5,554,060 $
10,023,479 $
1,438,177 $ 404,463
$ 1,675,950 $
924,252 $
1,315 $ -
25,352
13,101
2,077
4,000
339,215
-
14,702
60,000
- -
4,706
3,610
344,597
64,196
2,069,307
1,404,374
3,392
Fund equity and other credits:
Contributed capital (Note 14)
-
-
Investment In general fixed assets
- -
Retained earnings - unreserved
-
- -
Fund balance:
Reserved for:
Interfund bans
60,000
-
Employee retirement
-
-
Debt service
-
1,434,785
Paths and trails
-
19,395
-
Petty cash/change fund/travel advance
6,720
-
Unreserved:
Undesignated
3,418,033
8,599,710
404,463
TOTAL FUND EQUITY AND OTHER CREDITS
3,484,753
8,619,105
1.434,785 404,463
TOTAL LIABILITIES & FUND EQUITY & OTHER CREDITS $
5,554,060 $
10,023,479 $
1,438,177 $ 404,463
See accompanying notes to financial statements.
Page 1 of 2
City of Federal Way / 9
Statement 1 (continued)
Proprietary_
Fiduciary
Account Groups
Totals
Internal
Trust and
General
General Long-
(Memorandum Only)
Service
Agency
Fixed Assets
term Debt
1992
1991
$ 658,562 $
193,898 $
$
$
15,467,601 $
10,750,600
165,880
165,880
-
283,727
283,727
224,971
885,316
885,316
479,656
-
394,906
294,063
89,080
23,932
4,179
4,179
4,480
_
-
2,261,052
1,453,565
-
14,702
-
74,702
60,000
4,213,842
-
24,438,325
-
28,652,167
24,769,885
-
1,434,785
1,434,785
2,104,943
_
-
13,688,533
13,688,533
13,340,202
$ 4,872,404 $
1,547,702 $
24,438,325 $
15,123,318 $
63,401,928 $
53,506,297
$ 231,161 $
7,327 $
- $
- $
2,840,005 $
1,865,934
37,119
-
77,649
195,235
-
8,008
8,008
-
165,880
165,880
-
-
42,980
95,169
438,384
39,491
-
74,702
60,000
283,727
283,727
224,971
12,530
12,530
12,530
6,034
78,191
-
92,541
68,759
-
_
13,590,000
13,590,000
13,910,000
2,330,000
1,405,000
3,735,000
1,450,000
4,486
128,318
132,804
87,233
408,793
256,983
2,608,800
650,832
15,123,318
21,860,023
18,214,116
2,136,961
-
-
2,136,961
1,326,890
-
24,438,325
24,438,325
23,522,754
126,643
126,643
127,340
_
_
60,000
60,000
896,870
896,870
537,782
_
1,434,785
2,104,943
-
19,395
5,000
6,720
600
-
-
_
12,422,206
7,606,872
2,263,604
896,870
24,438,325
41,541,905
35,292,181
$ 4,872,404 $
1,547,702 $
24,438,325 $
15,123,318 $
63,401,928 $
53,506,297
Page 2 of 2
CITY OF
City of Federal Way / 11
Statement 2
COMBINED STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES
IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
For the Year Ended December 31,1992
Fiduciary
Governmental Fund Types
Fund T7e
Totals
Special Debt
Capital
Expendable
(Memorandum only)
General
Revenue Service
Projects
Trust
1992
1991
REVENUES:
Taxes $ 12,893,826 $ 1,458,103 $ - $
-
$ - $
14,351,929 $
13,359,964
Licenses and permits
737,071
34,497 -
-
-
771,568
720,363
Intergovernmental
2,540,096
6,809,754 -
-
-
9,349,850
5,467,866
Service charges and fees
666,194
3,270,781 -
-
3,936,975
1,615,171
Fines and forfeitures
414,178
- -
-
-
414,178
288,254
Miscellaneous
Interest
203,761
308,941 -
-
27,181
539,883
694,583
Other
106,214
238,744 -
411,257
756,215
488,534
TOTAL REVENUES
17,561,340
12,120,820
-
438,438
30,120,598
22,634,735
EXPENDITURES:
Current:
General government
2,451,514
7,893
103,333
2,562,740
2,162,794
Security of persons and property
6,602,685
172
-
-
6,602,857
6,623,270
Physical environment
18,960
102,906 -
121,866
18,755
Transportation
-
7,924,118
7,924,118
4,530,747
Economic environment
1,850,900
149,947
2,000,847
2,283,794
Health
1,064,820
4,650 -
1,069,470
468,430
Culture and recreation
2,377,847
28,337 -
-
2,406,184
1,908,171
Capital outlay:
General government
401,998
- -
-
401,998
12,633,622
Certificates of participation
-
-
-
1,450,000
Debt Service:
Principal
- 365,000
-
365,000
300,000
Interest and fiscal charges
- 1,736,319
-
1,736,319
161,418
TOTAL EXPENDITURES
14,768,724
8,218,023 2,101,319
-
103,333
25,191,399
32,541,001
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
2,792,616
3,902,797 ,101,319
-
335,105
4,929,199
(9,906,266)
OTHER FINANCING SOURCES (USES):
Proceeds from certificates of participation
-
- -
-
-
-
1,450,000
Bond proceeds
-
-
-
-
-
12,500,764
Operating transfers in (Note 13)
-
1,526,137 1,431,161
403,699
23,983
3,384,980
4,121,343
Operating transfers out (Note 13)
63,673
(2,621,307) -
(3,384,980)
(4,121,343)
TOTAL OTHER FINANCING
SOURCES (USES)
(763,673)
1,095,170 1,431,161
403,699
23,983
13,950,764
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
2,028,943
2,807,627 (670,158)
403,699
359,088
4,929,199
4,044,498
FUND BALANCES AT
BEGINNING OF YEAR
1,712,553
5,959,155 2,104,943
764
537,782
10,315,197
6,492,019
Residual equity transfers out (Note 13)
(256,743)
(147,677)
-
-
(404.420)
(221,320)
FUND BALANCES AT END OF YEAR
$ 3,484,753
$ 8,619,105 $ 1,434,785 $
404,463
$ 896.870 $
14,839,976
$ 10,315,197
See accompanying notes to financial statements.
12 / 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
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Fines and forfeitures
Miscellaneous:
Interest
Other
TOTAL REVENUES
For the Year Ended December 31, 1992
General Fund
Budget Actual
$ 12,814,894 $ 12,893,826 $
838,936 737,071
2,393,868 2,540,096
671,458 666,194
506,320 414,178
Special Revenue Fund Types
Variance Variance
Favorable Favorable
(Unfavorable) Budget Actual (Unfavorable)
78,932 $ 1,422,512 $
(101,865) 182,617
146,228 5,344,851
(5,264) 3,370,073
(92,142) -
1,458,103 $
35,591
34,497
(148,120)
6,436,887
1,092,036
2,722,446
(647,627)
480,000
203,761
(276,239) 138,944
224,573
85,629
84,387
106,214
21,827 -
238,744
238,744
17,789,863
17,561,340
(228,523) 10,458,997
11,115,250
656,253
EXPENDITURES:
Current:
General government
3,497,905
2,451,514
1,046,391
Security of persons and property
7,000,000
6,602,685
397,315
-
-
-
Physical environment
18,755
18,960
(205)
67,001
64,105
2,896
Transportation
-
-
-
10,381,178
7,700,056
2,681,122
Economic environment
2,267,929
1,850,900
417,029
-
-
-
Health
1,076,505
1,064,820
11,685
-
-
-
Culture and recreation
2,969,466
2,377,847
591,619
33,278
28,337
4,941
Capital outlay
1,437,300
401,998
1,035,302
-
-
-
Debt service:
Principal
-
-
-
Interest and fiscal charges
-
-
-
-
TOTAL EXPENDITURES
18,267,860
14,768,724
3,499,136
10,481,457
7,792,498
2,688,959
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
(477.997)
2,702,616
3,270,613
(22,460)
3,322,752
3,345,212
OTHER FINANCING SOURCES (USES):
Operating transfers in
-
1,371,150
1,451,968
80,818
Operating transfers out
(759,690)
(763,673)
3,983
(1,629,323)
(2,214,738)
(585,415)
TOTAL OTHER FINANCING
SOURCES (USES)
(759.690)
(763,673)
(3,983)
(258,173)
(762,770)
(504,597)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES (1,237,687) 2,028,943 3,266,630 (280,633) 2,559,982 2,840,615
FUND BALANCES
AT BEGINNING OF YEAR 1,237,687 1,712,553 474,866 2,551,143 3,459,881 908,738
Residual equity transfers out - (256.743) (256.743) (147,677) (147,677)
FUND BALANCES
AT END OF YEAR $ - $ 3,484,753 $ 3,484,753 $ 2,270,510 $ 5,872,186 $ 3,601,676
See accompanying notes to financial statements. Page 1 of 2
City of Federal Way / 13
Statement 3 (Continued)
Totals
Debt Service Fund Types Memorendum Onl
WI
Variance Variance
Favorable 1992 Favorable 1991
Budget Actual (Unfavorably) Budget Actual (Unfavorable) Actual
$ $ $ 14,237,406 $ 14,351,929 $ 114,523 $ 13,359,964
1,021,553 771,568 (249,985) 720,363
_ 7,738,719 8,976,983 1,238,264 4,760,713
4,041,531 3,388,640 (652,891) 1,615,171
506,320 414,178 (92,142) 288,254
618,944 428,334 (190,610) 677,352
84,387 344,958 260,571 44,868
28,248,860 28,676,590 427,730 21,466,685
3,497,905 2,451,514 1,046,391 2,124,780
7,000,000 6,602,685 397,315 6,605,948
85,756 83,065 2,691 18,755
10,381,178 7,700,056 2,681,122 4,530,746
2,267,929 1,850,900 417,029 2,093,469
1,076,505 1,064,820 11,685 468,430
3,002,744 2,406,184 596,560 1,908,171
1,437,300 401,998 1,035,302 -
365,000 365,000 365,000 365,000 - 300,000
1,772,360 1,736,319 36.041 1,772,360 1,736,319 36,041 161,418
2,137,360 2,101,319 36,041 30,886,677 24,662,541 6,224,136 18,211,717
(2,137,362L(2,101,319) 36,041 (2,637,817) 4,014,049 6,651,866 3,254,968
1,466,702 1,431,161 (35,541) 2,837,852 2,883,129 45,277 2,100,770
(2,389,013) (2,978,411) (589,398) (4,121,343)
1.466,702 1,431,161 (35,541) 448,839 (95,282) (544.121) _ (2,020,573)
(670,658) (670,158) 500 (2,188,978) 3,918,767 6,107,745 1,234,395
2,104,943 2,104,943 5,893,773 7,277,377 1,383,604 6,264,303
(404,420) (404,420) (221,320)
1,434,285 $ 1.434,785 $ 500 $ 3,704,795 $ 10,791,724 $ 7,086,929 $ 7,277,378
Page 2of2
14 / City of Federal Way
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES Statement 4
IN FUND EQUITY - ALL PROPRIETARY FUND TYPES
For the Year Ended December 31, 1992
Internal Service Funds
Totals
(Memorandum only
1992 1991
OPERATING REVENUES:
Service charges and fees
$ 1,299,809 $ 989,908
Miscellaneous
40,625 387
TOTAL OPERATING
REVENUES
1,340,434 990,295
OPERATING EXPENSES:
Personnel services
136,248 71,769
Services and charges
673,858 484,008
Materials and supplies
174,669 178,996
Insurance
126,084 61,681
Claims
35,253 6,388
Depreciation
173,356 79,759
TOTAL OPERATING
EXPENSES
1,319,468 882,601
OPERATING INCOME (LOSS)
20,966 107,694
NON -OPERATING REVENUES
(EXPENSES):
Interest income 18,693 19,646
Interest expense (28,968) -
—TOTAL NON -OPERATING
REVENUES (EXPENSES)
(10,275)
19,646
NET INCOME (LOSS)
10,691
127,340
RETAINED EARNINGS, January 1
127,340
Residual equity transfers out (Note 13)
(11 ,38S)
_
RETAINED EARNINGS, December 31
126,643
127,340
CONTRIBUTED CAPITAL, January 1
1,326,890
-
Increases to contributed capital (Note 14)
810.071
1,326,890
CONTRIBUTED CAPITAL, December 31
2,136,961
1,326,890
FUND EQUITY AT END OF YEAR
$ 2,263,604 $
1,454,230
See accompanying notes to financial statements.
City of Federal Way / 15
COMBINED STATEMENT OF CASH FLOWS
Statements
ALL PROPRIETARY FUND TYPES
For the Year Ended December 31, 1992
Internal Service Funds
Totals
(Memorandums only)
1992
1991
CASH FLOWS FROM OPERATING ACTIVITIES:
$ 1,299,809 $
989,909
Cash received from users
(136,248)
(
Cash payments to suppliers for goods/services
(135,253)
(66,306)
(66,114)
Cash payments to employees
(46,340)
(2,287)
Cash payments to claimants
(46,659
(22,387)
Cash payments to other funds for services
46,659
387
Other operating receipts
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
384,iB9
279,81 Q
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
(415,808)
(225,221)
Acquisition of capital assets
8
225,221
Cash contributions for capital acquisitions
(28,968)
(1
Interest paid on debt service
(11,388)
Residual equity transfers out
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(40,356)
CASH FLOWS FROM INVESTING ACTIVITIES:
18,693
19,646
Receipts of interest
NET CASH PROVIDED (USED) IN INVESTING
18,693
19,646
ACTIVITIES
NET INCREASE (DECREASE) IN CASH AND CASH
359,106
299,456
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
299,456
-
CASH AND CASH EQUIVALENTS AT END OF YEAR
$ 858,562 $
299,456
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING
ACTIVITIES
$ 20,966 $
107,694
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
181,389
759
Depreciation expense
181,389
86,894
86,894
Increase in vouchers/accounts payable
Increase in accrued payroll/
(976)
5,483
compensated absences payable
-
Increase in deposits payable
,
TOTAL ADJUSTMENTS
359,803 03
172.110
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$ 384,769 $
279,810
SCHEDULE OF NONCASH INVESTING,
CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets
$ 394,263 $
1,1 D2,264
In 1992, the City Issued $2,330,000 in Certificates of Participation to pay the cost of acquiring a City
Hall by a means of a lease
with the
option to purchase.
See accompanying notes to financial statements.
CITY OF G
r r
City of Federal Way / 17
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1992
INDEX
Note
Page
1
Summary of Significant Accounting Policies .......................
18
Reporting Entity ......................................
18
Basis of Presentation --Fund Accounting .......................
19
Basis of Accounting ....................................
20
Budgets and Budgetary Accounting ..........................
21
Assets, Liabilities and Equities .............................
22
Cash and Cash Equivalents ............................
22
Temporary Investment ...............................
23
Receivables......................................
23
Amounts Due to and from Other Governments; Interfund Loans .....
23
Inventories ......................................
23
Fixed Assets .....................................
23
Depreciation .....................................
24
Compensated Absences Payable .........................
24
Long -Term Debt ....... . ...........................
25
Deferred Revenues .................................
25
Fund Equity -Reserves and Designation .....................
25
Interfund Transactions ..................................
25
Comparative Data .....................................
25
Total Columns on Combined Statements - Overview
25
2
Stewardship, Compliance and Accountability .......................
26
3
Supplemental Appropriations .................................
26
4
Cash and Investments ......................................
27
5
Receivables and Due From Other Governmental Units ................
28
6
Due To Other Governmental Units .............................
29
7
Fixed Assets and Depreciation ................................
30
8
Pension Plans ..........................................
31
9
Other Employee Benefits ............................ . ......
34
10
Risk Management ........................................
34
11
Estimated Arbitrage Rebate ..................................
36
12
Long -Term Debt .........................................
36
13
Interfund Transactions .....................................
40
14
Contributed Capital .......................................
42
15
Contingencies and Litigation .................................
42
16
Fund Additions and Changes .................................
43
17
Reporting Change .............. ........................
43
18
Subsequent Events ................ . .......................
43
18 / City of Federal Way
For the Year Ended December 31, 1992
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 laws
of the State 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. The 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 is a general purpose government with its fiscal year ending December 31.
The City provides a broad range of general government services. 1992 marks its second 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, the local
Fire District and other agencies to provide specific services, such as law enforcement, fire protection, storm and surface
water utility billings, court services, garbage collection and various public works services.
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 Codification of Governmental Accounting and Financial
Reporting Standards, 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
aperating-decisions or whetherrthe City can be-heldaccountablefor related-fiscaimatters and-oLits.,�ndir,g debit 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 organization 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 Codification of Governmental Accounting and Financial Reporting Standards, none of the privately -
owned and government entities listed below meet the criteria for inclusion as component units or joint ventures 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.
Federal Way Community Center
Federal Way District Pool
Federal Way Fire District #39
Federal Way Library System
Federal Way Medical Center
Federal Way School District #210
Federal Way Senior Center
Federal Way Water and Sewer District
Federal Way Youth and Family Services
City of Federal Way / 19
Basis of Presentation - Fund Accounting
The accounts of the City are organized on the basis of funds and account groups. Each fund is a separate accounting entity
with a self -balancing set 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.
Governmental Funds T es
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 ape rating 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, principal,
interest and related costs.
Capital projects funds account for the acquisition or construction of major capital facilities except those financed by
proprietary funds and trust funds.
Proprietary 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. 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 contributed 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 to finance or recover, primarily through user charges, the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing basis. 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.
Fiduciary 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
20 / City of Federal Way
trust fund, where both the principal and revenues earned on that principal may be expended for purposes designated by the
trust agreement; and 2) three 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.
Account 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, expenditures, expenses, transfers and the related assets and liabilities are
recognized and reported in the financial statements. Basis of accounting relates to the timing of the measurements made,
regardless of the measurement focus applied.
The accrual basis of accounting is used by proprietary fund types, pension trust funds and nonexpendable trust funds. Under
this method, revenues are recognized when earned, and expenses are recognized when incurred.
The modified accrual basis of accounting is used by governmental, expendable trust and agency funds. Revenues and other
financial resources are recognized when they become susceptible to accrual, i.e., when the related funds become both
measurable and available to finance expenditures of the current period. To be considered "available", revenue must be
collected during the current period or soon enough thereafter to pay current liabilities.
Expenditures are recognized when the related fund 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.
Major revenues recorded on the modified accrual basis are:
Property Taxes - King County acts as the City's collection agent for these taxes. 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
received in January and February are considered both measurable and available and are therefore recognized as revenue in
the current year.
Other Locally Levied Taxes - 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.
City of Federal Way / 21
Grant Revenues - Under Section G60.109 of the Codification of Governmental Accounting and Financial Reporting
Standards, 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, some 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. Budgets for project/grant related special revenue funds
and capital project funds are adopted at the level of the individual project and for fiscal periods that correspond to the lives
of projects. 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.
Legal budgetary control is established at the fund level, i.e., expenditures for a fund may not exceed the total appropriation
amount. 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.
The individual funds within each fund type which are included in the City's annual operating budget are listed below.
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
Solid Waste/Recycling
Paths and Trails Reserve Fund
Surface Water Management Fund
Procedures for Adopting the Annual 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 Management Services Director for current level service budgets
and a preliminary financial forecast.
22 / City of Federal Way
• 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.
• 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.
• 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.
Encumbrances
An encumbrance system is used for budgetary control purposes to record commitments resulting from approved purchase
orders. During the year, encumbrances are recorded in the accounting system at the time purchase orders are issued for
goods and services. Upon payment, the encumbrance is reversed and the actual cost of related item is recorded as a fund
expenditure. Outstanding encumbrances at year end are cancelled and must be re-established in the following year.
Therefore, these amounts have not been recorded as current year expenditures unless considered to be susceptible to accrual
at the end of the year.
Assets, Liabilities and Equities
Cash and Cash Equivalents
It is the City's policy to invest all cash not immediately required for disbursement. At December 31, 1992, the State
Treasurer was holding $15,310,601 in short-term investments of cash. This amount is classified on the balance sheet as cash
and cash equivalents. The interest earnings on these investments are allocated to all funds based on the average monthly
balance for each fund.
City of Federal Way / 23
For purposes of the Statement of Cash Flows, the City considers all highly liquid investments 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).
Temporary 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, unless there is
a significant and permanent decrease in market value, in which case, market value should be used. Assets in the City's
deferred compensation plan are reported at 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.
Due From Other Governmental Units 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. A separate schedule of Due
From Other Governmental. Units is disclosed in Note 5.
Amounts Due to and from Other Funds,• Interfund Loans
These accounts include all interfund receivables and payables. A separate schedule of interfund loans receivable and payable
is furnished in Note 13.
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. There were no material inventories
at year end in the Internal Service 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.
24 / City of Federal Way
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 section L20 of the Codification of Governmental Accounting and Financial Reporting
Standards.
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 fair market value of
donated assets is recorded as contributed capital by the fund which receives them.
Depreciation
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 in the proprietary fund. 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.
The average service lives used to calculate depreciation for specific categories of assets in the City's internal service funds
are summarized below.
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
Com ens ted Absences Payable
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 1992, City employees were not represented by bargaining units and therefore no exceptions to the above policies
exist.
City of Federal Way / 25
Lona-term Debt
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 12.
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 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 and housing rehabilitation loans. See Note 5 for further details.
Fund Eouity-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 and fiduciary funds, fund balance that is legally restricted for future purposes include reserves for: a) future
employee retirement payments and b) future debt service. 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, the General Fund had reserves for Petty Cash and Travel Advance purposes. The Special Revenue Path and
Trails Reserve fund balance is also legally restricted for construction and maintenance of paths and trails within City right-of-
way.
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 1992 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 13, Interfund Transactions.
Comparative Data
Comparative totals for the prior year have been presented in the accompanying financial statements in order to provide an
understanding of changes in the City's financial position and operations. However, comparative data has not been presented
by fund type in each of the statements since their inclusion would make the statements unduly complex and difficult to read.
Total Columns on Combined Statements - Overview
Total columns on the general purpose financial statements are provided to facilitate financial analysis. This data, however,
26 / City of Federal Way
is captioned "Memorandum Only" to indicate that it does not present financial position, results or operations or reporting
of cash flows for the governrnental 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 1992 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.
1992
1992
SUPPLEMENTAL
1992
ORIGINAL BUDGET
APPROPRIATIONS
FINAL BUDGET
General Fund
S 19,027,550
S ---
$19,027,550
Special Revenue Funds:
— Street Fund--
4,588,132
---
4;588,1-322—
Arterial Street Fund
1,564,822
2,067,226
3,632,048
1st y.% Real Estate Excise Tax Fund
729,749
729,749
2nd %% Real Estate Excise Tax Fund
729,749
---
729,749
Paths and Trails Reserve Fund
16,102
---
16,102
Surface Water Management Fund
2,415,000
---
2,415,000
Total Special Revenue Funds
10,043,554
2,067,226
12,110,780
Debt Service Fund
2,100,769
36,591
2,137,360
Total
$31,171,873
$ 2,103,817
$33,275,690
Funds Budgeted on a Project -Length Basis
During 1992, the City Council adopted appropriations for some special revenue funds and the Capital Project fund 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. The special revenue funds budgeted on a "project length" basis are Grants -Miscellaneous
Governmental, Community Development Block Grant and Impact Fee. These funds are therefore not included in the
Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual.
City of Federal Way / 27
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 1992 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, 1992, the carrying amount of the City's fully insured temporary investments with the State Pool was
$15,310,601. The City's checking account balance was $150,280. 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.
At December 31, 1992, the City's total deposits and investments consisted of the following:
Puget Sound Bank, Checking Account
Petty Cash/Change Fund/Advance Travel
Cash Equivalents with State Treasurer's Investment Pool
Cash With Escrow Agent
Assets with FWRS Plan Administrator
Assets in ICMA Deferred Compensation Plan
Total Cash and Investments
Investments
$ 150,280
6,720
15,310,601
165,880
885,316
283,727
$16,802,524
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.
Risk
Category
Carrying
Market
Amount
Value
1
2 3
U.S. Government
Securities -Treasury Notes $
$ 210,033 $ ---
$ 210,033
$ 205,405
Equity Securities
551,204 —
551,204
617,329
Total S ---
$761,237 $ --•
$ 761,237
$ 822,734
Money Market Funds
124,079
124,079
Total Federal Way
Retirement System Assets
$ 885,316
$ 946,813
Investment in State
Treasurer's Investment
Pool
15,310, 601
15,310, 601
28 / City of Federal Way
Risk
Category
2
Investment in Deferred
Compensation
Total Investments
NOTE 5:
Carrying
Amount
283,727
$ 16,479,644
Receivables and Due From Other Governmental Units
Property Taxes
Market
Value
283,727
$16,541,141
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. Annual tax
billings may be paid in two equal installments, due April 30 and October 31. At December 31, 1992, the total balance of
property taxes receivable recorded by the City was $394,906. Of this, $344,597 is recorded as a deferred revenue, since
it was not collected within the first 60 days of 1993. The property tax levy calendar in 1992 was:
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:
1. 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 1% 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 1 % limit.
The City's regular levy for 1992 was $1.572 per $1,000 on an assessed valuation of $3,213,952,495 for a total regular levy
of $5,031,533.
City of Federal Way / 29
Housing Rehabilitation Loans Receivable
These loans are issued to individuals meeting designated income criteria through funds provided by the City's annual block
grant program. The loans are secured by property liens and are not required to be repaid until the property is sold or
otherwise changes ownership. The total amount of loans outstanding at December 31, 1992 was $64,196. This amount is
not considered available and is therefore offset by deferred revenue.
Due From Other Governmental Units
At December 31, 1992 the City recorded the following receivables from other governmental units:
Description
Amount
General Fund:
Washington State -State Shared Revenue
$ 1,186,143
Special Revenue Funds:
Washington State -State Shared Revenue
167,938
Washington State DOT -Heliport Grant
6,820
Washington State TIB Grant
355,114
King County -Real Estate Excise Tax
108,949
Coordinated Prevention Grant
25,003
U.S. Dept. of HUD-CDBG Grant
17,108
Federal Way Water & Sewer District
363,883
King County -Surface Water Mgmt Fees
30,094
Subtotal Special Revenue Funds
1,074,909
Total
$ 2,261,052
NOTE 6:
Due To Other Governmental Units
At December 31, 1992, $438,384 was due to other governmental units as follows:
Description Amount
General Fund:
King County -Contract $ 4,000
Special Revenue Funds:
King County -Public Works Contracts 339,215
Agency Funds:
Washington State -Taxes and Fees 74,824
King County -License and Fees 2,760
Fire Permits 17,585
Subtotal Agency Funds 95,169
Total $ 438,384
30 / City of Federal Way
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. 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, 1992
Land
$ 22,004,861
Other Improvements
180,171
Machinery & Equipment
---
Buildings
334,000
—A s sets-Under-C-ap i tal
Lease- Land
1,450,000
Total
$ 23,969,032
Proprietary Fund Fixed Assets
BALANCE
ADDITIONS DELETIONS DECEMBER 31, 1992
$ 196,000 $ $ 22,200,861
273,293 --- 453,464
394,263 394,263 -
--- - 334,000
1,450,000
$ 863,556 $ 394,263 $ 24,438,325
Proprietary fund fixed assets are long-lived assets acquired by the City's Internal Service Funds. The City depreciates these
assets at the straight-line rate. The following is a summary of the City's proprietary fund fixed assets at December 31, 1992:
Data Processing
Support
Fleet &
Buildings &
Telecommunications
Services
Equipment
Furnishings
Total
DP/Telecommunications
Equipment
$ 844,095 $
---
$ ---
$ ---
$ 844,095
Heavy Equipment
•--
---
313,448
--
313,448
Transportation Equipment
---
398,677
---
398,677
Buildings & Furnishings
---
---
---
2,842,537
2,842,537
Other Equipment
--
35,507
32,697
—
68,204
Total Fixed Assets
$ 844,095 $
35,507
$ 744,822
$ 2,842,537
$ 4,466,961
City of Federal Way / 31
Less Accumulated
Depreciation
Net Fixed Assets
Data Processing Support Fleet &
Telecommunications Services Equipment
Buildings &
Furnishings Total
(101,985) (4,460) (73,113) (73,561) (253,119)
$ 742,110 $ 31,047 $ 671,709 $ 2,768,976 $ 4,213,842
NOTE 8:
Pension Plans
Substantially all City full-time and qualifying part-time employees participate in the Public Employees Retirement System
(PERS) administered by the Department of Retirement Systems, under cost -sharing multiple -employer public employee
retirement systems.
Total Pension Benefit Obligation
Less Net Assets Available for Benefits
SUMMARY OF SYSTEMS' ACTUARIAL DATA
(In Millions of Dollars)
As of December 31, 1991
PERS LEOFF
$8,881 $3,942
7,938 3,051
VOLUNTEER
FIREFIGHTERS
$ 48
53
Unfunded (Surplus) Actuarial
Present Value of Accumulated
Plan Benefits $ 943 $ 891 $(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, 1992 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 II are vested after completion of 5 years of eligible service.
32 / City of Federal Way
Plan I members are eligible for retirement after 30 years of service, or at the age of 60 with 5 years of service, or at the
age of 55 with 25 years of service. The 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 lI 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 3 percent annually.
During the 1992 Washington Legislative session, SHEI 2947 was passed. This bill opened a window for early retirement
for PERS I members. To provide required resources, the employer annual contribution rate increased to .02 percent.
The City's covered payroll for year ending December 31, 1992 was $3,649,338. The City's total current -year payroll for
all employees was $4,208,864.
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 H 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, 1992 were:
PERS Plan I
REQUIRED
ACTUAL
Employer 7.19%
7.29%
Employee 6.00%
6.00%
Total 13.19%
13.29%
REQUIRED
7.19%
4.98%
12.17%
PERS Plan II
ACTUAL
7.29%
4.85%
12.14%
The City's actuarially -determined contribution requirement and actual contribution for the year ending December 31, 1992
were:
PERS Plan I
-
PERS plan II
REQUIRED
ACTUAL
REQUIRED
ACTUAL
Employer $38,600
$41,522
$223,787
$244,776
Employee 32,212
32,212
155,001
151,154
Total $70,812
$73,734
$378,788
$395,930
The City's actuarially determined employer contribution requirement represents approximately .0794 percent of the total for
all employers covered by PERS.
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
As of December 31, 1992, the City had no LEOFF Plan employees since it purchased police services from King County
and its residents voted to annex to Fire District #39 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.
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.
City of Federal Way / 33
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 II. 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 AVERAGE
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 H 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 1992, 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, and lump sum death benefit
coverages. The City's contribution mix is actuarially 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 1 % of the participant's compensation, not to exceed 14 % of the participant's compensation.
Covered payroll for 1992 was $3,728,805 and total City payroll was $4,208,964. Actual City contributions for the year were
34 / City of Federal Way
$184,449. Actual employee contributions were $226,808. All contributions were invested 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 $885,316 and were comprised of U.S. Treasury Notes ($210,033), stock ($551,204), and money market
securities ($124,079).
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 isdzighlyzmiikely-thatzt Will use
the assets to satisfy the claims of general creditors in the future.
At December 31, 1992, $283,727 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.
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 1992 the City purchased commercial insurance policies from commercial insurers. A summary of coverages in force
during 1992 is presented below:
City of Federal Way / 35
NAME OF COMPANY COVERAGE LIABILITY 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
$2,000,000/occurrence
damage and no medical
$2,000,000 aggregate
Deductible - $1,000 collision
$ 250 comp
$60,000 underinsured/
uninsured motorist
$5,000 medical payments
Hartford Steam Boiler &
Boiler and machinery
$350,000/accident
Inspection
$5,000/extra expense
$25,000 ea for identified costs
Deductible - $1,000 to $2,500
Hartford Insurance Company
Inland marine
$100,000 valuable papers
of the Midwest
$70,276 contractor's equipment
$136,593 computer equipment
$25,000 ea for identified costs
Deductible - $250
Personal property
$3,964,000
Deductible - $2,500/occurrence
Nutmeg Insurance
Public officials liability
$2,000,000/occurrence
$2,000,000 aggregate
Deductible - $5,000
Twin City Fire Insurance
General liability
$2,000,000/occurrence
$5,000/10,000 medical
payments per person/occurrence
Deductible - $5,000
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
The City uses the Risk Management internal service fund to account for its risk financing activities.
36 / City of Federal Way
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:
Estimated Arbitrage Rebate
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, 1992 is $-0- for its tax-exempt general obligation bond
issues subject to the Tax Reform Act issued through that date.
NOTE 12:
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 1992 the City had no voter approved bonds outstanding. The City issued Certificates of Participation in 1992
for the purchase of City Hall. They are accounted for in the internal service fund established for buildings and furnishings.
All other general obligation debt is recorded in the General Long-term Debt Account Group and annual principal and interest
payments are recorded as expendituresb_y_the City's debt service -fund. —
Debt Issued During 1992
On August 26, 1992 the City issued $2,330,000 in certificates of participation, a financing lease obligation to purchase the
Financial Center property, the City's current City Hall, located at 33530 1st Way South in the City of Federal Way. These
certificates are comprised of the $2,150,000 tax exempt Series A, and the $180,000 taxable Series B. The last of the Series
A certificates have a scheduled redemption date of December 1, 2002. The last of the Series B certificates have a scheduled
redemption date of December 1, 1993. These certificates were issued at par with Series A carrying a face interest rate
ranging from 3.0 % to 5.45 %, and Series B at 4.25 %. The net interest cost (NIC) on Series A and B was 5.100199 % and
4.816250 %, respectively. The certificates carried an "A" rating with Moody's Investors Service.
The following is a schedule of outstanding general obligation debt as of December 31, 1992:
City of Federal Way / 37
OUTSTANDING GENERAL OBLIGATION DEBT
DECEMBER 31, 1992
(In Thousands of Dollars)
Amount Beginning Ending
Date of Issue Maturity Date Interest Rate Originally Outstanding Amount Amount Outstanding
Description Issued Debt Issued Redeemed Debt
Genial Obligation Bonds:
1990 Limited 01-Nov-90 01-Dec-95 5.90-6.30 $ 1,710 S 1,410 S S 320 S 1,090
1991 Limited 01-Feb-91 01-Dec-21 6.00-6.85 12,500 12,500 12,500
Subtotal GO Bonds 14,210 13,910 320 13,590
Certificates of Participation:
1991 Issue
25-Sep-91 01-Dec-06 4.75-6.80 1,450
1,450 ---
45 1,405
1992 Issue - Series A
26-Aug-92 01-Dec-02 3.00-5.45 2,150
2,150
--- 2,150
1992 Issue - Series B
26-Aug-93 01-Dec-02 4.25 180
--- 180
--- 180
Subtotal COP's
3,780
1,450 2,330
45 3,735
Grand Total All L-T Debt
$ 17,990 $
15,360 S 2,330 S
365 $ 17,325
PRORATED DEBT SERVICE SCHEDULE
DECEMBER 31, 1992
(In Thousands of Dollars)
Beginning
Ending
Amount
Outstanding
Amount
Outstanding
Description
Originally Issued
Debt Amount Issued
Redeemed
Debt
General Long -Term Debt Group:
1990 Limited GO Bonds
S 1-710 $
1,410 $
$
320 $
1,090
1991 Limited GO Bonds
12,500
12,500
12,500
1991 COP Issue
1,450
1,450
45
1,405
Total General L-T Debt
15,660
15,360
365
14,995
Internal Service Funds:
1992 COP -Series A
2,150
-
2,150
-
2,150
1992 COP -Series B
180
180
180
Total Internal Service
2,330
---
2,330
---
2,330
Total All L-T Debt
$ 17,990 $
15,360 $
2,330 $
365 $
17,325
The following statement of long-term debt provides the City's outstanding debt for 1992 and 1991. As explained
in Note 17, in 1991 the City incorrectly recorded the Certificates of Participation at present value of future minimum
lease payments ($1,003,722) rather than at face amount ($1,450,000). This change is reflected in the statements
below.
38 / City of Federal Way
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1992
With Comparative Totals for December 31, 1991
Amounts Available to be Provided for the
Payment of General Long -Term Debt
Amount to be Provided for the Retirement of:
1992
1991
G.O. Bonds
$
12,155,215
$
11,805,057
Compensated Absences
128,318
85,145
Certificates of Participation
1,405,000
1,450,000
Amount Available in Debt Service Funds
1,434,785
2,104,943
Total Amount Available and to be Provided
$
15.123,318
$
15,445,145
General Long -Term Debt Payable
General Obligation Bonds
$
13,590,000
$
13,910,000
Compensated Absences - Vacation
128,318
85,145
Certificates of Participation
1,405.000
1,450,000
Total General Long -Term Debt
$
t 5.123,3.18
$
15.445.145
Outstanding at December 31, 1991
Additions:
New Debt Issued or Acquired:
Capitalized Lease Obligations
Increase in Accrued Vacation
Total Additions
Reductions:
G.O. Bonds
Capitalized Lease Obligations
Total Reductions
Outstanding at December 31, 1992
STATEMENT OF CHANGES IN LONG-TERM DEBT
Period Ended December 31, 1992
(In Thousands of Dollars)
General
Obligation Certificates of Participation
Bonds
General General
Long -Term Long-term Internal
Debt Debt Service
S 13,910.0 $ 1,450.0 S
Accrued Vacation,
Claims & Judgments Total
General
Long-term Internal
Debt Service
i 85.2 $ 2.1 $ 15,447.3
---- 2,330.0 2,330.0
43.1 2.4 45.5
$ ---- $ -- $ 2,330.0 S 43.1 $ 2.4 $ 2,375.5
(320.0) - - ---- (320.0)
— (45.0) ---- - (45.0)
$ (320.0) (45.0) $ --- $ — $ -- S (365.0)
$ 13,590.0 $ 1,405.0 $ 2,330.0 $ 128.3 $ 4.5 $ 17,457.8
City of Federal Way / 39
Presented below is a summary of the City's debt service requirements to maturity by year for all outstanding debt
other than compensated absences:
1993
1994
1995
1996
1997
Thereafter
TOTALS
ANNUAL DEBT SERVICE PAYMENTS TO MATURITY
(in Thousands of DoOars)
GENERAL OBLIGATION
BONDED DEBT
1,267.2
1,271.5
1,413.9
1,025.9
1,025.4
24,836.7
$ 30,840.6
CERTIFICATES OF
PARTICIPATION
456.8
460.4
454.5
457.1
458.4
2,887.8
$ 5,175.0
SCHEDULE OF ANNUAL DEBT SERVICE REQUBRF]MENTS TO MATURITY
GENERAL OBLIGATION BONDS
TOTAL DEBT
1,724.0
1,731.9
1,868.4
1,483.0
1,483.8
27,724.5
$ 36,016.6
Year
Principal
Interest
Total
1993
$ 600,000
$ 1,124,057.50
$ 1,724,057.50
1994
640,000
1,091,867.50
1,731,867.50
1995
810,000
1,058,300.00
1,868,300.00
1996
470,000
1,013,020.00
1,483,020.00
1997
495,000
988,755.00
1,483,755.00
1998
520,000
956,825.00
1,476,825.00
1999
550,000
922,595.00
1,472,595.00
2000
585,000
885,602.50
1,470,602.50
2001
615,000
845,582.50
1,460,582.50
2002
655,000
809,350.00
1,464,350.00
2003
395,000
770,212.50
1,165,212.50
2004
430,000
744,752.50
1,174,752.50
2005
460,000
716,757.50
1,176,757.50
2006
485,000
686,520.00
1,171,520.00
2007
375,000
654,415.00
1,029,415.00
2008
400,000
629,665.00
1,029,665.00
2009
430,000
603,065.00
1,033,065.00
2010
465,000
574,255.00
1,039,255.00
2011
500,000
542,867.50
1,042,867.50
2012
535,000
509,117.50
1,0",117.50
2013
575,000
472,737.50
1,047,737.50
2014
620,000
433,637.50
1,053,637.50
2015
665,000
391,477.50
1,056,477.50
2016
715,000
345,925.00
1,060,925.00
2017
765,000
296, 947.50
1,061,947.50
2018
825,000
244,545.00
1,069,545.00
2019
885,000
188,032.50
1,073,032.50
2020
950,000
127,410.00
1,077,410.00
2021
910,000
62,335.00
972,335.00
Total
S 17,325,000
$ 18,690,630.00
$ 36,015,630.00
40 / City of Federal Way
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 3A % of the valuation within the City without a vote of the people.
In addition, debt up to Ya % 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 as of December 31, 1992 are:
General Government (no vote required)
$14,867,454
General Government Capital Leases (no vote required)
$23,601,799
General Government (3/5 majority vote required)
$36,239,646
Parks and Open Space (3/5 majority vote required)
$90,599,114
Utilities (3/5 majority vote required)
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, 1992, is provided below:
Governmental Funds (recorded in the General
Long-term Debt Account Group) $128,318
Internal Service Funds 4,486
Total Compensated Absences $132,804
NOTE 13:
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 1992, the City recorded all of the above with the exception of reirnbarsements.
Quasi -external Transactions
Quasi -external transactions reflect the existence of a more -or -less normal buyer/seller relationship between City funds.
During 1992, these involved transactions between internal service funds and other funds for the purpose of recovering
operating and maintenance costs and to build replacement reserves.
City of Federal Way / 41
Interfund Receivables/Payables
The following schedule presents interfund loans and due to/due from other funds outstanding at December 31, 1992:
Interfund Loans
General Fund
Special Revenue Funds:
Grants - Miscellaneous Governmental
Community Development Block Grant
Total Interfund Loans
Due to/Due From Other Funds
General Fund
Expendable Trust Fund -
Federal Way Retirement System
Total Due To/from Other Funds
Total Interfund
RecolvableslPagable
Residual Equity Transfers
Interfund Loans
Interfund Loans
Receivable
Payable
$ 60,000
$
---
50,000
---
10,000
$ 60,000
$
60,000
Due From
Due To
Other Funds
Other Funds
$ ---
$
14,702
14,702
-
$ 14,702
$
14,702
$ 74,702
$
$74,702
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 balance. In govemmental 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 1992:
Fund Cateaory Transfers In Transfers Out
General Fund $256,743
Special Revenue Funds --- 147,677
Internal Service Funds $415,808 11,388
Total City Funds S415Ra08 $41808
Of the above amounts, the entire $415,808 was transferred from either governmcntal funds ($404,420) or internal
service funds ($11,388) 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 1992:
42 / City of Federal Way
Fund Category
Transfers In
Transfers Out
General Fund
$ 763,673
Special Revenue Funds
$ 1,526,137
2,621,307
Debt Service Funds
1,431,161
Capital Project Funds
403,699
Fiduciary Funds
23,983
—
Total City Funds
$ 3,384,980
$ 3,384,980
NOTE 14:
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. Contribute-d 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 1992 various transactions impacted the contributed capital of internal service funds. These transactions have
been identified in the following presentation:
Data
Buildings
Risk
Processing
Fleet &
and
Manage-
Telecomm-
Support
Equip-
Furn-
ment
unications
Services
ment
ishings
Totals
Beginning
Contributed
Capital S 0
$ 530,793
$ 18,529
$ 367,665
$ 409,903
$ 1,326,890
Additions:
Residual Equity
Transfers ---
311,668
1,506
—
102,634
415,808
Equipment/
Furniture
Donations ---
1,634
15,472
377,157
---
394,263
Total
Additions: 0
313,302
16,978
377,157
102,634
810,071
Deductions:
---
---
Ending
Contributed
Capital $ 0
$ 844,095
$ 35,507
$ 744,822
$ 512,537
$ 2,136,961
City of Federal Way / 43
NOTE 15:
Contingencies and Litigation
As of December 31, 1992, 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.
Approximately $600,000 was unpaid at year end on the construction contract for the SW 356th Street project. This
amount will be paid to the contractor during 1993 from a special revenue fund.
NOTE 16:
Fund Additions and Changes
During 1992, the City added three special revenue funds.
The three new special revenue funds include the Solid WastL/Recycling Fund established to account for special
refuse collection fees used to manage the solid waste and recycling program; the Special Coatracts/Studies Fund
accounts for receipts and disbursements related to special contracts and special projections; the Impact Fee Fund
established to account for revenue from development impact fees, authorized by State law and designated for
transportation, park and other improvements.
NOTE 17:
Reporting Change
During 1992 the City discovered the Certificates of Participation issued in 1991 for $1,450,000 were accounted for
incorrectly. During 1991 the City treated the issue as a capital lease and accounted for it at the present value of
future lease payments of $1,003,722. The City has corrected this and is now accounting for it at face value which
is reflected in the 1991 totals. This change resulted in the balance sheet for 1991 increasing by $446,278 as
follows:
Original 1991 Correction Adjusted 1991
Amount to be provided $ 12,893,924 $ 446,278 $ 13,340,202
Certificates of Participation Payable 1,003,722 446,278 1,450,000
The general fund operating statement, certificates of participation and the resulting other financing source also
changed by $446,278, but this change had no effect on ending fund balance for 1991.
NOTE 18:
Subsequent Events
In March 1993, the City purchased a facility in the amount of $695,941 to be used for the City's Community/Senior
Center.
44 / City of Federal Way
In May 1993, the Council approved a $2.39 million general obligation bond issue to fund the development of
Campus Drive Park. This project is to be jointly developed by the Federal Way School District 112.10 and the City.
The City will develop the Park to include several sports fields, basketball and tennis courts, walking trails and bike
paths. The School District will be building a junior high school on adjacent land owned by the School District.
Both are scheduled to open in the fall of 1994.
The City is also in the process of refunding a 1991 bond issue in the amount of $12.105 million.
In conjunction with these two bond issues, Moodys has upgraded the City's rating from A to Al. Moodys noted
that the upgrade occurred in part due to strong financial operations, supported by favorable and conservative
financial planning practices, together with the strength of the area economy and the absence of substantial future
debt plans.
City of Federal Way / 45
GENERAL FUND
COMPARATIVE BALANCE SHEET
December 31, 1992 and 1991
1992
1991
ASSETS
Cash and cash equivalents
$
3,912,904
$ 1,159,222
Receivables (net):
394,906
294,063
Taxes
143
14
Accounts and contracts
1,160,100
127
1,060,000
Due from other governments
Interfund loans receivable
60,000
60,000
TOTAL ASSETS
$
5,554,060
$ 2,587,426
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
$
1,675,950
$ 450,111
Accounts/payroll payable
25,352
162,796
Due to other governments
4,000
-
Due to other funds
14,702
-
Deposits payable
4,706
4,983
Deferred revenues
344.597
256,983
TOTAL LIABILITIES
2,069,307
874,873
Fund balance:
Reserved for:
Reserved for interfund loans
60,000
60,000
Reserved for petty cash/change fund
1,720
600
Reserved for travel advance
5,000
5,000
Unreserved:
Undesignated
3,418,033
1,646,953
TOTAL FUND BALANCE
3,484,753
1,712,553
TOTAL LIABILITIES AND FUND BALANCE
$
5,554,060
$ 2,587,426
46 / City of Federal Way
GENERAL FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 1992 and 1991
1992
1991
REVENUES:
Taxes
$ 12,893,826
$ 11,965,254
Licenses and permits
737,071
638,967
Intergovernmental
2,540,098
2,881,220
Service charges and fees
666,194
466,318
Fines and forfeitures
414,178
288,254
Miscellaneous:
Interest
203,761
627,760
Other
106,214
44,775
TOTAL REVENUES
17,561,340
16,912,548
EXPENDITURES:
Current:
General government
2,451,514
2,124,780
Security of persons and property
6,602,685
6,605,948
Physical environment
18,960
18,755
Economic environment
1,850,900
2,093,469
Health
1,064,820
468,430
Culture and recreation
2,377,847
1,680,884
Capital Outlay:
General government
401,998
-
Certificates of participation
-
1,450,000
Debt Service:
Interest and fiscal charges
-
49,592
TOTAL EXPENDITURES
14,768,724
14,491,858
EXCESS OF REVENUES OVER EXPENDITURES
2,792,616
2,420,690
OTHER FINANCING SOURCES (USES). -
Proceeds from certificates of participation
-
1,450,000
Operating transfers out
(763,673)
(2,845,018)
TOTAL OTHER FINANCING SOURCES (USES)
(763,673)
(1,395,018)
EXCESS OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES AND OTHER USES
2,028,943
1,025,672
FUND BALANCE AT BEGINNING OF YEAR
1,712,553
856,648
Residual equity transfers out
(256,743)
(169,767)
FUND BALANCE AT END OF YEAR
$ 3,484,753
$ 1,712,553
City of Federal Way / 47
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Years Ended December 31, 1992 and 1991
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Fines and forfeitures
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Security of persons and property
Physical environment
Economic environment
Health
Culture and recreation
Capital Outlay
Debt service:
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating transfers out
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER EXPENDITURES
AND OTHER USES
FUND BALANCE AT BEGINNING OF YEAR
Residual equity transfers out
FUND BALANCE AT END OF YEAR
Variance
Favorable
1991
Budget
Actual
(Unfavorable)
Actual
$ 12,814,894 $
12,893,826 $
78,932 $
11,965,254
838,936
737,071
(101,865)
638,967
2,393,868
2,540,096
146,228
2,881,220
671,458
666,194
(5,264)
466,318
506,320
414,178
(92,142)
288,254
480,000
203,761
(276,239)
627,760
84,387
106,214
21,827
44,775
17,789,863
17,561,340
(228,523)
16,912,548
3,497,905
2,451,514
1,046,391
2,124,780
7,000,000
6,602,685
397,315
6,605,948
18,755
18,960
(205)
18,755
2,267,929
1,850,900
417,029
2,093,469
1,076,505
1,064,820
11,685
468,430
2,969,466
2,377,847
591,619
1,680,884
1,437,300
401,998
1,035,302
49,592
18,267,860 14,768,724 3,499,136
(477,997) 2,792,616 3,270,613 3,870,690
(759,690) (763,673) (3,983) (2,845,018)
(759,690) (763,673) (3,983) (2,845,018)
(1,237,687) 2,028,943 3,266,630 1,025,672
1,237,687 1,712,553 474,866 856,648
(256,743) (256,743) (169,767)
$ $ 3,484,753 $ 3,484,753 1,712,553
48 / City of Federal Way
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
GENERAL GOVERNMENT
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 sarvices and charges
Intergovermental services
Interfund services
TOTAL FINANCIAL, RECORDS, AND
CENTRAL SERVICES
LEGAL:
Personal services
Supplies
Other services and charges
Interfund services
TOTAL LEGAL
PERSONNEL:
Personal services
Supplies
Other services and charges
Interfund services
TOTAL PERSONNEL
Year Ended December 31, 1992
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
$ 70,360 $
65,732 $
4,628
1,000
6,228
(5,228)
139,270
97,463
41,807
30,000
10,098
19,902
42,405
33.077
9,328
283,035
212,598
70,437
336,8W
257,360
79,440
336,800
257,360
79,440
205,766
182,856
22,910
4,041
4,688
(647)
71,190
53,564
17,626
47,947
34,019
13,928
328,944
275,127
53,817
452,542
411,591
40.951
16,135
11,405
4,730
105,896
123,698
(17,802)
80,453
99,292
(18,839)
146,008
94,039
51,969
801,034
740,025
61,009
315,591
283,226
32,365
17,083
11,312
5,771
237,917
251,024
(13,107)
96,645
57,692
38,953
667,236
603,254
63,982
169,154
179,475
(10,321)
5,316
4,198
1,118
84,909
58,596
26,313
48,827
28,938
19,889
308,206
271,207
36,999
Page 1 of 4
City of Federal Way / 49
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
Year Ended December 31, 1992
(Continued)
OTHER GENERAL GOVERNMENTAL SERVICES:
Personal services
Supplies
Other services and charges
Interfund services
TOTAL OTHER GENERAL
GOVERNMENTAL SERVICES
TOTAL GENERAL GOVERNMENT
SECURITY OF PERSONS AND PROPERTY
LAW ENFORCEMENT:
Supplies
Other services and charges
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:
Intergovernmental services
TOTAL NATURAL RESOURCES
TOTAL PHYSICAL ENVIRONMENT
ECONOMIC ENVIRONMENT
CHILD CARE SERVICES:
Personal services
Supplies
Other services and charges
TOTAL CHILD CARE SERVICES
PLANNING AND COMMUNITY DEVELOPMENT:
Personal services
Supplies
Other services and charges
Intergovermental services
Interfund services
TOTAL PLANNING AND
COMMUNITY DEVELOPMENT
VARIANCE
FAVORABLE
BUDGET
ACTUAL
UNFAVORABLE
62,478
50,489
11,989
1,317
3,226
(1,909)
692,773
28,962
663,811
16,082
9,266
6,816
772,650
91,943
680,707
3,497,905
2,451,514
1,046,391
6,216
(6,216)
1,135
(1,135)
6,840,000
6,326,511
513,489
6,840,000
6,333,862
506,138
160.000
268,823
(108,823)
160,000
268,823
(108,823)
7,000,000
6,602,685
397,315
18,755
18,960
(2051_
18,755
18,960
(205)
18,755
18,960
(205)
20,188
15,397
4,791
2,050
561
1,489
26,752
3,560
23.192
48,990
19,518
29,472
967,806
982,916
(15,110)
29,433
14,512
14,921
283,138
200,875
82,263
100
473
(373)
380,516
199,602
180,914
1,660,993
1,398,378
262,615
Page 2of4
50 / City of Federal Way
GENERALFUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
Year Ended December 31, 1992
(Continued)
HOUSING AND COMMUNITY DEVELOPMENT:
Personal services
Supplies
Other services and charges
Interfund services
TOTAL HOUSING AND
COMMUNITY DEVELOPMENT
TOTAL ECONOMIC ENVIRONMENT
HEALTH
PUBLIC HEALTH:
Personal services
Supplies
Other services and charges
Intergover nental services
TOTAL PUBLIC HEALTH
TOTAL HEALTH
CULTURE AND RECREATION
SPECTATOR AND COMMUNITY EVENTS:
Personal services
Supplies
Other services and charges
Interfund services
TOTAL SPECTATOR AND
COMMUNITY EVENTS
PARTICIPANT RECREATION:
Personal services
Supplies
Other services and charges
Interfund services
TOTAL PARTICIPANT
RECREATION
VARIANCE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
378,953
317,305
61,648
9,219
8,287
932
25,681
15,789
9,892
144,093
91,623
52,470
557,946
433.004
124,942
2,267,929
1,850,900
417,029
44,724
35,338
9,386
1,400
662
738
445,710
428,394
17,316
584,671
600,426
(15,755)
1,076,505
1,064,820
11,685
1,076,505
1,064,820
11,685
179,465
162,705
16,760
3,989
2,615
1,374
66,495
55,234
11,261
64,530
34,182
30,348
314.479
254,736
59,743
694,793
505,266
189,527
56,828
43,030
13,798
409,255
208,770
200,485
192,792
122,915
69,877
1,353,668
879,981
473,687
Page 3 of 4
City of Federal Way / 51
GENERALFUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
Year Ended December 31, 1992
(Continued)
PARK FACILITIES:
Personal services
Supplies
Other services and charges
Intergovermental services
Interfund services
TOTAL PARK FACILITIES
TOTAL CULTURE AND RECREATION
CAPITAL OUTLAY
OTHER FINANCING USES
Operating transfers out
TOTAL OTHER FINANCING USES
TOTAL GENERAL FUND
VARIANCE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
614,399
595,508
18,891
237,339
246,777
(9,438)
301,802
332,661
(30,859)
5,000
1,163
3,837
142,779
67,021
75,758
1.301,319
1,243,130
58,189
2,969,466
2,377,847
591,619
1,437,300
401.998
1,035,302
759,690
763,673
(3,983)
759,690
763.673
(3,983
$ 19,027,550 $
15,532,397
$ 3,495,153
Page 4 of 4
CITY OF
CITY OF
\�wY,
56 / City of Federal Way
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1992
With Comparative Totals for December 31, 1991
REVENUES:
Taxes $
Licenses and permits
Intergovernmental
Service charges and fees
Miscellaneous
Interest
Other
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Security of persons and property
Physical environment
Transportation
Economic environment
Health
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
1st 1/4%
2nd 1/4% Solid
Arterial
Real Estate
Real Estate Waste/
Street
Street
Excise Tax
Excise Tax Recycling
$
$
729,285 $
728,818 $
34,497
-
-
-
1,765,147
4,663,162
206,395
-
-
-
65,153
59,061
15,064
14,664
43,809
-
1,792
-
2,115,001
4,722,223
746,141
743,482
19,669 -
2,975,417 3,578,530
- 28,337
2,995,086 3,578,530 28,337 -
(880,085) 1,143,693 717,804 743,482
872,061
(596,576)
275,485
(604,600)
(701,412) (729,749)
(701,412) (729,749)
1,143,693 16,392 13,733
122,722
122,722
122,722
FUND BALANCES AT BEGINNING OF YEAR 1,488,059 972,674 112,115 87,479
Residual equity transfers out (49,484) - - - -
FUND BALANCES AT END OF YEAR $ 833,975 $ 2,116,367 $ 128,507 $ 101,212 $ 122,722
Page 1 of 2
City of Federal Way / 57
Special Grants -
Community
Paths and
TOTALS
Contracts/ Miscellaneous
Development
Trails
Surface Water
Impact
Strategic
Studies Governmental
Block Grant
Reserve
Management
Fee
Reserve
1992
1991
$ $ $
$
$
$
$
$
1,458,103 $
1,394,710
34,497
81,396
210,205
162,662
8,578
6,809,754
2,586,646
-
-
-
2,516,051
548,335
3,270,781
1,148,853
5,474
70,631
78,894
308,941
49,360
_
193,143
-
238,744
93
215,679
162,662
8,578
2,779,825
548,335
78,894
12,120,820
5,261,059
7,893
7,893
-
-
172
172
17,322
38,801
44,436
-
102,906
-
-
1,146,109
224,062
7,924,118
4,530,747
149,947
-
-
149,947
190,325
4,650
4,650
-
28,337
227,287
38,801
162,662
1,190,545
224,062
8,218,023
4,965,681
-
176,878
-
8,578
1,589,280
324,273
78,894
3,902,797
295,378
57,500
16,669
-
457,185
-
-
1,526,137
2,000,000
-
(406,569)
(187,001)
(2,621,307)
(1,276,325)
57,500
(389,900)
-
270,184
-
-
(1,095,170)
723,675
57,500
(213,022)
8,578
1,859,464
324,273
78,894
2,807,627
1,019,053
-
499,274
10,817
788,737
-
2,000,000
5,959,155
4,991,655
_
-
(98,193)
-
(147,677)
(51,553)
$ 57,500 $
286,252 $
- $
19,395 $
2,550,008 $
324,273 $
2,078,894 $
8,619,105 $
5,959,155
Page 2of2
60 / 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, 1992
With Comparative Totals for December 31, 1991
(Continued)
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES:
Current:
Physical environment
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
1991
Budget
Actual
(Unfavorable)
Actual
$ 711,256 $
728,818
$ 17,562 $
652,091
18,493
14,664
(3,829)
729,749
743,482
13,733
652,091
729,749 743,482 13,733 652,091
(729,749) (729,749) (564,612)
(729,749) (729,749) (564,612)
13,733 13,735 87,479
87,479 87,479
$ $ 101,212 $ 101,212 $ 87,479
Page 3 of 6
City of Federal Way / 61
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 1992
With Comparative Totals for December 31, 1991
(Continued)
Solid Waste/Recycling Fund Paths and Trails Reserve Fund
Variance Variance
Favorable 1991 Favorable 1991
Budget Actual (Unfavorable) Actual Budget Actual (Unfavorable) Actual
5,826 8,578 2,752 8,769
113,159 122,722 9,563
113,159 122,722 9,563
5,826 8,578 2,752 8,769
5,826 8,578 2,752 8,769
16,102
16,102
113,159 122,722 9,563 (10,276) 8,578 18,854 8,769
10,276 10,817 541 2,048
$ 113,159 $ 122,722 $ 9,563 $ $ $ 19,395 $ 19,395 $ 10,817
Page 4 of 6
62 / City of Federal Way
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Years Ended December 31, 1992
With Comparative Totals for December 31, 1991
(Continued)
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES:
Current:
Physical environment
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
Surface Water Management Fund
Variance
Favorable
1991
Budget
Actual
(Unfavorable}
Actual
3,250,073
2,516,051
(734,022)
1,129,116
26,793
70,631
43,838
-
-
193,143
193,143
-
3,276,866
2,779,825
(497,041)
1,129,116
67,001 44,436 22,565 -
2,160,998 1,146,109 1,014,889 723,391
2,227,999 1,190,545 1,037,454 723,391
1,048,867 1,589,280 540,413 405,725
388,800 457,185 68,385
(187,001) (187,001)
201,799 270,184 68,385
1,250,666 1,859,464 608,798 405,725
788,737 788,737 388,032
(98,193 (98,193) (5,020)
$ 1,250,666 $ 2,550,008 $ 1,299,342 $ 788,737
Page 5 of 6
City of Federal Way / 63
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 1992
With Comparative Totals for December 31, 1991
(Continued)
Totals
Variance
Favorable
1991
Budget
Actual
(Unfavorable)
Actual
$ 1,422,512 $
1,458,103
$ 35,591 $
1,394,710
182,617
34,497
(148,120)
81,396
5,344,851
6,436,887
1,092,036
1,879,493
3,370,073
2,722,446
(647,627)
1,148,853
138,944
224,573
85,629
49,592
-
238,744
238.744
93
10,458,997
11,115,250
656,253
4,554,137
67,001
64,105
2,896
-
10,381,178
7,700,056
2,681,122
4,530,746
33,278
28,337
4,941
227,287
10,481,457
7,792,498
2,688,959
4,758,033
(22,460)
3,322,752
3,345,212
(203,896
1,371,150
1,451,968
80,818
(1,629,323)
(2,214,738)
(585,415)
(1,276,325)
(258,173)
(762,770)
(504,597)
(1,276,325)
(280,633)
2,559,982
2,840,615
(1,480.220)
2,551,143
3,459,881
908,738
4,991,655
-
(147,677)
(147,677)
(51,553)
$ 2,270,510
$ 5,872,186
$ 3,601,676
$ 31459,882
page 6 of 6
CITY OF
City of Federal Way / 65
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEET
December 31, 1992 and 1991
ASSETS
Cash and cash equivalents
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
Accounts payble
Interest payable
TOTAL LIABILITIES
Fund balance:
Reserved for debt service
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
1992 1991
$ 1,438,177 $ 2,147,923
$ 1,438,177 $ 2,147,923
$ 1,315 $
2,077 -
42,980
3.392 42,980
1,434,785 2,104,943
1,434,785 2,104,943
$ 1,438,177 $ 2,147,923
66 / City of Federal Way
DEBT SERVICE FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 1992 and 1991
REVENUES:
TOTAL REVENUES
EXPENDITURES:
Debt Service:
Principal
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 BALANCE AT BEGINNING OF YEAR
FUND BALANCE AT END OF YEAR
1992 1991
365,000
1,736,319
2,101,319
300,000
111,826
411,826
(2,101,319) (411,826)
1,431,161 2,100,769
1,431,161 2,100,769
(670,158) 1,688,943
2,104,943 416,000
$ 1,434,785 $ 2,104,943
City of Federal Way / 67
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Years Ended December 31, 1992 and 1991
REVENUES:
TOTAL REVENUES
EXPENDITURES:
Debt Service:
Principal
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
VARIANCE
1992 1992 FAVORABLE 1991
BUDGET ACTUAL (UNFAVORABLE) ACTUAL
365,000 365,000 -
1,772,360 1,736,319 36,041 411,826
2,137,360 2,101,319 36,041 411,826
(2,137,360) (2,101,319) 36,041 (411,826)
1,466,702 1,431,161 (35,541) 2,100,769
1,466,702 1,431,161 (35,541) 2,100,769
(670,658) (670,158) 500 1,688,943
2,104,943 2,104,943 416,000
$ 1,434,285 $ 1,434,785 $ 500 $ 2,104,943
CITY OF
City of Federal Way / 69
CAPITAL PROJECT FUNDS
COMPARATIVE BALANCE SHEET
December 31, 1992 and 1991
1992
1991
ASSETS
Cash and cash equivalents
$
404,463
$
764
TOTAL ASSETS
$
404,463
$
764
LIABILITIES AND FUND BALANCE
Liabllities:
$
$
TOTAL LIABILITIES
-
Fund balance:
Unreserved-undesignated
404,463
764
TOTAL FUND BALANCE
404,463
764
TOTAL LIABILITIES AND FUND BALANCE
$
404.463
$
764
70 / City of Federal Way
CAPITAL PROJECT FUNDS
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 1992 and 1991
REVENUES:
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Capital outlay:
General government
Culture and recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Bond proceeds
Operating transfers in
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
1992 1991
$ $ 30
30
403,699
403,699
133,622
12,500,000
12,633,622
(12,633,592)
12,500,764
12,500,764
403,699 (132,828)
764 133,592
$ 404,463 $ 764
City of Federal Way / 71
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December31, 1992
With Comparative Totals for December 31, 1991
Data
Processing
Rlsk Telecommun- Support Fleet and Bulldings and Totals
Management Icatlons Services Equipment Furnishing a 1992 1991
ASSETS
Current Assets:
Cash and cash equivalents $
147,329 $ 305,547 $
15,541 $
77,530 $
112,615 $
658,562 $
299,456
TOTAL CURRENT ASSETS $
147,329 $ 305,547 $
15,541 $
77,530 $
112,615 $
658,562 $
299,456
Property, plant and equipment:
Data processing/
telecommunication equipment
- 844,095
-
844,095
530,793
Transportation equipment
398,677
-
398,677
247,117
Heavy equipment
-
-
313,448
-
313.448
119,047
Buildings & furnishings
-
-
2,842,537
2,842,537
409,903
Other equipment
-
35,507
32,697
68,204
20,030
844,095
35,507
744,822
2,842,537
4,466,961
1,326,890
Less accumulated depreciation
101,985
4,460
73,113
73,561
253,119
79,759
Net property, plant
and equipment
- 742,110
31.047
671.709
2,768,976
4.213,842
1,247,131
TOTAL ASSETS $
147,329 $ 1,047,657 $
46.588 $
749,239 $ m
2,881,591 $
4,872,40044 $
1,546,587
LIABILITIES AND FUND EQUITY
Current liabilities
Vouchers payable
Accounts payable
Payroll payable
Deposits payable
Certificates of participation payable
Compensated
absences payable
TOTAL CURRENT
LIABILITIES
Long-term liabilities:
Certificates of participation payable
TOTAL LONG-TERM
LIABILITIES
TOTAL LIABILITIES
Fund Equity:
Contributed Capital
Retalned Earnings:
unreserved
TOTAL FUND EQUITY
TOTAL LIABILITIES AND
FUND EQUITY
$ 2,649 $ 198,426 $ 10,046 $
4,417 $ 15,623 $
231,161 $
86,894
18,037 1,685 -
- 17,397
37,119
-
_
-
3,375
6,034
6,034
-
190,000
190,000
-
3,451 1,035
-
4,486
2,088
20,686 203,562 11,081
4,417 229,054
468,800
92,357
- - -
- 2,140,000
2,140,000
-
2,140,000 2,140,000
20,686 203,562 11,081 4,417 2,369,054 2,608,800 92,357
844,095 35,507 744,822 512,537 2,136,961 1,326,890
126,643 - 126,643 127,340
126,643 844,095 35,507 744.822 512,537 2,263,604 1,454,230
$ 147,329 $ 1,047,657 $ 46,588 $ 749,239 $ 2,881,591 $ 4,872,404 $ 1,546,587
72 / City of Federal Way
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND EQUITY
For the Year Ended December 31, 1992
With Comparative Totals for 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 Telecommun- Support Fleet and Buildings and Totals
Management Ications/GIS Serytces Equipment Furnishings 1992 1991
$ 235,663 $
538,009 $
139.494 $
110,459 $
276,184 $
1,299,809 $
989,908
-
3,361
-
-
37,264
40,625
387
235,663
541,370
139,494
110,459
313,448
1,340,434
990,295
-
64,944
71,304
-
136,248
71,769
4,885
328,290
83,310
36,270
221.103
673,858
484,008
-
95,405
34,101
25,137
20,026
174,669
178,996
126,084
-
-
-
-
126,084
61,681
35,253
-
-
-
35,253
6,388
70,746
3,208
57,734
41,588
173,356
79,759
TOTAL OPERATING
EXPENSES 166,222 559,385 192,003 119,141 282,717 1,319,468 882,601
OPERATING INCOME (LOSS) $ 69,441 $ (18,015) $ (52,509) $ (8,682) $ 30,731 $ 20,966 $ 107.694
NON -OPERATING REVENUES
(EXPENSES):
Interest income $
Interest expense
5,915 $ 4,985 $ 2,309 $ 2,617 $ 2,867 $ 18,693 $ 19,646
- (28,968) (28,988)
TOTAL NON -OPERATING
REVENUES (EXPENSES)
5,915
4,985
2,309
2,617
(26,101)
(10,275)
19,646
NET INCOME (LOSS)
75,356
(13,030)
(50,200)
(6,065)
4,630
10,691
127,340
RETAINED EARNINGS, January 1
51,287
17,512
57,106
6,065
(4,630)
127,340
-
Residual equity transfers out
-
(4,482)
(6,906)
-
-
(11,388)
-
RETAINED EARNINGS, December 31
126,643
-
-
-
-
126,643
127,340
CONTRIBUTED CAPITAL, January 1
-
530,793
18,529
367,665
409,903
1,326,890
-
Increases to contributed capital
-
313,302
16,978
377,157
102,634
810,071
1,326,890
CONTRIBUTED CAPITAL, December 31
-
844,095
35,507
744,822
512,537
2.138,961
1,326,890
FUND EQUITY AT END OF YEAR $
126,643
$ 844,095
$ 35,507 $
744,822
$ 512,537
$ 2.263.604 $
1,454,230
City of Federal Way / 73
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1992
With Comparative Totals for December 31, 1991
Data
Processing
Risk Telecommun- Support Fleet and Buildings an
Management Icatione Services Equipmsnt Furnishings
Totals
1992 1991
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
$ 235,662 $
538,010
$
139.494 $
110,459 $
276,184
$
1,299,809
$
989,909
Cash payments to suppliers for goods/services
(116,131)
(256,770)
(100,483)
(61,686)
(212,788)
(747,858)
(615,779)
Cash payments to employees
(64,944)
(71,304)
(136,248)
(66,306)
Cash payments to claimants
(35,253)
-
(35,253)
(6,114)
Cash payments to other funds for services
(30,133)
(16,207)
-
(46,340)
(22.287)
Other operating receipts
3,361
-
43,298
46,659
387
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
84.278
189,524
(48,500)
48,773
106,694
380,769
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
(311,668)
(1,506)
(102,634)
(415,808)
(225,221)
Cash contributions for capital acquisitions
311,668
1,506
102,634
415,808
225,221
Interest paid on debt service
(28,968)
(28,968)
-
Residual equity transfers out
(4,482)
(6,906)
(11,388)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(4,482)
(6.906)
(28,968)
(40,356)
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
5,915
4,985
2,309
2,617
2,867
18,693
19,646
NET CASH PROVIDED (USED) IN INVESTING
ACTIVITIES
5,915
4,985
2,309
2,617
2,867
18,693
19,646
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
90,193
190,027
(53,097)
51,390
80,593
359,106
299,456
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
57,136
115,520
68,638
26,140
32,022
299,456
-
CASH AND CASH EQUIVALENTS AT END OF YEAR
$ 147,329 $
305,547
$
15,541 $
77,530 $
112,615
$
658,562
$
299,456
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating income
$ 69,440 $
(18,014)
$
(52,509) $
(8,682) $
30,731
$
20,966
$
107,694
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
Depreciation expense
-
70,746
3,288
57,734
41,588
173,356
79,759
Increase in vouchers/accounts payable
14,838
137,150
1,339
(279)
28,341
181.389
86,894
Increase in accrued payroll/
compensated absences payable
-
(358)
(518)
-
(976)
5,463
Increase in deposits payable
-
6,034
6,034
-
TOTAL ADJUSTMENTS
14,838
207,538
4.009
57,455
75,963
359,803
172,116
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$ 84,278 $
189,524
$
(48.500) $
48,773 $
105,694
$
380,769
$
279,810
SCHEDULE OF NONCASH INVESTING,
CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets
$ - $
1,634
$
15,472 $
377,157 $
-
$
394,263
$
1,102,264
In 1992, the City issued $2,330,000 in Certificates of Participation to pay the
cost of acquiring a City Hall
by a means of a lease with the option to
purchase.
CITY OF Ac�--
City of Federal Way / 75
ASSETS
Cash and cash equivalents
Cash - with escrow agent
Cash - deferred compensation
Investments with plan administrator
Receivables (net):
Interest
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
Liabilities:
Vouchers payable
Retainage payable
Retainage payable - with escrow
Due to other governments
Deferred compensation payable
Custodial accounts
Deposits payable
TOTAL LIABILITIES
Fund balances:
Reserved for employee retirement
TOTAL FUND BALANCES
TOTAL LIABILITIES AND
FUND BALANCES
s
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 1992
With Comparative Totals for December 31, 1991
Expendable
Trust Fund Agency Funds
Federal Way Fees and
Retirement Deferred Taxes Clearing Totals
System Compensation Fund 1992 1991
$ $ 193,898 $ 193,898 $ 153,950
165,880 165,880 -
- 283,727 - 283,727 224,971
885,316 - 885,316 479,656
4,179 - 4,179 4,480
14.702 14,702 -
$ 904,197 $ 283,727 $ 359,778 $ 1,547,702 $ 863,057
7,327
-
7,327
12,604
8,008
8,008
-
165,880
165,880
-
- 95,169
95,169
39,491
283,727 -
283.727
224,971
- 12,530
12,530
12,530
-
- 78,191
78,191
35,679
7,327
283,727 359,778
650,832
325,275
896,870
896,870
537,782
896,870
- -
896,870
537,782
$ 904,197 $
283,727 $ 359,778 $
1,547,702 $
863,057
76 / City of Federal Way
EXPENDABLE TRUST FUND
FEDERAL WAY RETIREMENT SYSTEM
COMPARATIVE BALANCE SHEET
December 31, 1992 and 1991
1992 1991
ASSETS
Cash and cash equivalents with plan administrator $ - $ 66,250
Investments with plan administrator 885,316 479,656
Receivables (net):
Interest 4,179 4,480
Due from other funds 14,702 -
TOTAL ASSETS $ 904,197 $ 550,386
LIABILITIES AND FUND BALANCE
LIabllRies:
Vouchers payable $ 7,327 $ 12,604
TOTAL LIABILITIES 7,327 12,604
Fund balance:
Reserved for employee retirement 896,870 537,782
TOTAL FUND BALANCE 896,870 537,782
TOTAL LIABILITIES AND FUND BALANCE $ 904,197 $ 550,386
City of Federal Way / 77
EXPENDABLE TRUST FUND
FEDERAL WAY RETIREMENT SYSTEM
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 1992 and 1991
REVENUES:
1992
1991
Miscellaneous:
Member contributions
Employer contributions
$ 184,449 $
134,589
Employee contributions
226,808
309,047
Investment income
27,181
17,463
TOTAL REVENUES
438,438
461,099
EXPENDITURES:
Employee contributions refunded
64,233
15,085
Consultant services
39,100
22,929
TOTAL EXPENDITURES
103,333
38,014
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES
335,105
423,085
OTHER FINANCING SOURCES (USES):
Operating transfers in
23,983
20,573
TOTAL OTHER FINANCING SOURCES (USES):
23,983
20,573
EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES AND OTHER USES:
359,088
443,658
FUND BALANCE AT BEGINNING OF YEAR
537,782
94,124
FUND BALANCE AT END OF YEAR
$ 896,870 $
537,782
78 / City of Federal Way
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
DEFERRED COMPENSATION FUND
ASSETS:
Cash with ICMA
LIABILITIES:
Deferred compensation payable
FEES & TAXES CLEARING FUND
ASSETS:
Cash
Cash - with escrow
LIABILITIES:
Due to other governments
Retainage payable
Retainage payable - with escrow
Custodial accounts
Deposits payable
SPECIAL DEPOSIT
ASSETS:
Cash
LIABILITIES:
Customer deposits
TOTAL - ALL AGENCY FUNDS
ASSETS:
Cash
Cash with ICMA
Cash with escrow agent
TOTAL ASSETS
LIABILITIES:
Due to other governments
Retainage payable
Retainage payable - with escrow
Deferred compensation payable
Custodial accounts
Customer deposits
TOTAL LIABILITIES
For the Year Ended December 31, 1992
BALANCE BALANCE
01/01/92 ADDITIONS DEDUCTIONS 12/31/92
$ 224,971 $ 58,756 $ $ 283,727
$ 224,971 $ 58,756 $ $ 283,727
$ 53,093 $
444,477 $
303,672 $
-
165,880
53,093
610,357
303,672
$ 39,491 $
656,842 $
601,164 $
497
10,270
2,759
165,880
-
12,530
-
-
575
89,336
11,720
53,093
922,328
615,643
193,898
165,880
359,778
95,169
8,008
165,880
12,530
78,191
359,778
$ 34,607 $ $ 34,607 $ 0
$ 34,607 $ $ 34,607 $ 0
$ 87,700
$
444,477 $
338,279
$
193,898
224,971
58,756
-
283,727
-
165,880
-
165,880
$ 312,671
$
669,113 $
338,279
$
643,505
$ 39,491
$
656,842 $
601,164
$
95,169
497
10,270
2,759
8,008
-
165,880
-
165,880
224,971
58,756
283,727
12,530
-
-
12,530
35,182
89,336
46,327
78,191
$ 312,671
$
981,084 $
650,250
$
643,505
City of Federal Way / 79
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SOURCE
December 31, 1992 and 1991
GENERAL FIXED ASSETS (A)
Land
Buildings
Other improvements
Equipment
Assets under capital lease
TOTAL GENERAL FD(ED ASSETS
INVESTMENT IN GENERAL FIXED ASSETS FROM:
Capital Projects Funds:
General obligation bonds
General Fund:
General revenues
Donations
Capital leases
Special Revenue Funds:
General revenues
TOTAL INVESTMENT IN GENERAL FIXED ASSETS
1992 1991
s 22,200,861 $ 22,00401
334,000 334,000
453,464 180,171
1,450,000 1,450,000
$ 24,438,325 $ 23,969,032
$ 12,966,321 $ 12,966,321
244,956 -
9,568,540 9,372,540
1,450,000 1,450,000
208,508 180,171
s 24,438,325 $ 23,969,032
(A) Excludes all public domain assets such as streets, sidewalks, gutters, bridges, drainage facilities and lighting systems.
80 / City of Federal Way
FUNCTION/ACTIVITY
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY(A)
December31, 1992
OTHER
TOTAL LAND BUILDINGS IMPROVEMENTS EQUIPMENT
GENERAL GOVERNMENT
Misc General Government
$
508,492 $
508,492 $ $ $ -
TOTAL GENERAL
GOVERNMENT
$
508,492 $
508,492 $ $ - $ -
CULTURE AND RECREATION
23,929,833
23,142,369 334,000 453,464
TOTAL GENERAL FIXED
ASSETS BY FUNCTION
$
24,438,325 $
23,650,861 $ 334,000 $ 453,464 $
CONSTRUCTION IN PROGRESS
$
-
TOTAL GENERAL
FWED ASSETS
$
24,438,325
(A) Excludes all public domain assets such, as strests, sidewalks, gutters, bridges, drainage facilities and lighting systems.
City of Federal Way / 81
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY(A)
For the Year Ended December 31, 1992
GENERAL GENERAL
FIXED ASSETS FIXED ASSETS
FUNCTION/ACTIVITY 1/31/92 ADDITIONS DEDUCTIONS(B) 12/31/92
GENERAL GOVERNMENT
Judicial
$
-
$
1,485
$
1,485
$ -
Misc General Government
508,492
508,492
TOTAL GENERAL GOVERNMENT
$
508,492
$
1,485
$
1,485
$ 508,492
PHYSICAL ENVIRONMENT
1,634
1,634
-
STREET/TRANSPORTATION
159,344
159,344
ECONOMIC ENVIRONMENT
-
5,157
5,157
CULTURE AND RECREATION
23,460,540
695,936
226,643
23,929,833
TOTAL GENERAL FIXED
ASSETS BY FUNCTION
$
23,969,032
$
863,556
$
394,263
$ 24,438,325
TOTAL GENERAL FIXED ASSETS
$
23,969,032
$
863,556
$
394,263
$ 24,438,325
(A) Excludes all public domain assets such as streets, sidewalks, gutters, bridges, drainage facilities and lighting systems.
JOFEa
ADS
GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION(A)
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Table 1
CULTURE
OTHER
FISCAL
GENERAL
PUBLIC
PHYSICAL
TRANS-
ECONBOMIC
(B)
AND CAPITAL
DEBT
FINANCING
TOTAL
YEAR
GOVERNMENT
SAFETY
ENVIRONMENT
PORTATION
ENVIRONMENT
HEALTH
RECREATION OUTLAY
SERVICE
USES
EXPENDITURES
1990
$1,315,894
$3,836,555
$13,592
$1,637,605
$1,016,869
$321,673
$165,194 $
$39,378
$1,178,248
$9,525,008
1991
2,124,780
6,623,270
18,755
4,530,747
2,283,794
468,430
1,908,171 -
461,418
4,121,343
22,540,708
1992
2,459,407
6,602,857
121,866
7,924,118
2,000,847
1,069,470
2,406,184 401,998
2,101,319
3,384,980
28,473,046
(A) All expenditures are reported on the modified accrual basis. General Government expenditures exclude the book entries for capital leases of $8,300
in 1990 and $1,450,000 in 1991. They also exclude residual equity transfers.
(B) During 1992, the human service contracts were reclassified from Economic Environment to Health.
NOTE: The City was incorporated on February 28, 1990. Therefore, no history of expenditures exists prior to incorporation.
y
SCHEDULE OF MAJOR REVENUES AND OTHER FINANCING SOURCES BY SOURCE (A)
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Table 2
LICENSES INTER- CHARGES OTHER
FISCAL AND GOVERNMENTAL FOR FINES AND MISCELLANEOUS FINANCING TOTAL
YEAR TAXES (8) PERMITS REVENUE SERVICES FORFEITURES REVENUE SOURCES(C) REVENUE
1990 $9,143,158 $509,541 $3,315,281 $981,768 $117,136 $340,495 $1,178,248 $15,585,627
1991 13,359,964 720,363 5.467,866 1,615.171 288,254 721,989 4,100,770 26,274,377
1992 14,351,929 771,568 91349,850 3,936,975 414,178 857,860 2,957,298 32,639,458
(A) Revenues are recorded on the modifled accrual basis.
(8) See Table 3 for further detail.
(C) Other Financing Sources does not include capital leases of $1,450,000 In 1991.
(D) The City was Incorporated on February 26, 1990. Therefore, no history of expenditure exists prior to Incorporation.
City of Federal Way / 85
GENERAL
FISCAL PROPERTY
YEAR TAXES
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)
1990 $3,490,242 $4,529,165
1991 4,457,526 6,468,697
1992 4,908,731 6,824,953
Table 3
TOTAL TAXES
$1,123,751 $9,143,158
2,433,741 13,359,964
2,618,245 14,351,929
(A) Includes real estate excise, local criminal justice, gambling excise, and other taxes and related assessments.
PROPERTY TAX LEVIES AND COLLECTIONS
PERCENT
FISCAL
TOTAL TAX
CURRENT TAX
OF LEVY
YEAR
LEVY
COLLECTIONS
COLLECTED
1990
$4,298,526
$4,103,478
95.5%
1991
4,582,620
4,371,463
95.4%
1992
5,031,533
4,758,677
94.6%
Sources:
TOTAL
DELINQUENT COLLECTIONS
TAX TOTAL TAX AS % OF
COLLECTIONS COLLECTIONS CURRENT LEVY
$ $4,103,478 95.5%
87,282 4,458,745 97.3%
151,681 4,910,358 97.6%
Table 4
TOTAL
OUTSTANDING
OUTSTANDING
DELINQUENT
TAXES AS % OF
TAXES
CURRENT LEVY
$190,139
4.4%
294,D63
6.4%
394,906
7.8%
1) In 1990, the total tax levy is the diverted road portion of the property tax levied by King County and transferred to the City upon incorporation.
2) Other data has been derived from the 'Annual Tax Receivable Summary' prepared by the King County Finance Department.
City of Federal Way / 87
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY*
FISCAL
YEAR REAL PROPERTY
1990
$2,928,672,425
1991
3,027,664,413
1992
3,448,013,318
PERSONAL
STATE PUBLIC
PROPERTY
SERVICE PROPERTY
$100,236,709
$72,783,925
110,845,208
75,442,874
120,842,393
75,109,073
TOTAL
$3,101,693,059
3,213,952,495
3,643,964,784
Table 5
PERCENT
INCREASE
(DECREASE)
3.6%
13.4%
Real, personal, and state public service property has been assessed at 100% of the estimated value.
NOTE: These figures includes all final tax adjustments, omits and senior citizen exempted property. This total assessed value was
reduced by senior citizen exemptions (no tax amounts) of $15,693,500 and prior year omits of $4,306,734 yielding a regular
levy value of $3,623,964,550. These assessed valuations are the basis for the following year's tax levy.
Source: IGng County Assessors Office.
PROPERTY TAX LEVIES -ALL OVERLAPPING GOVERNMENTS
Table 6
FEDERAL WAY
EMERGENCY
FISCAL
CITY OF
SCHOOL
KING
WASHINGTON
GREEN RIVER
PORT OF
FIRE DISTRICT
MEDICAL
YEAR
FEDERAL WAY
DISTRICT #210
COUNTY `
STATE
FLOOD ZONE
SEATTLE
#39
LIBRARY
SERVICES
TOTAL
TAX RATES PER $1,000 OF ASSESSED VALUATION
1990
1.83
4.18
2.05
4.05
-
0.45
1.77
0.58
0.25
15.16
1991
1.48
3.51
1.73
3.38
0.04
0.32
1.50
0.49
0.20
12.65
1992
1.57
4.41
1.80
3.54
0.04
0.34
1.59
0.54
0.25
14.08
DETAIL OF TAX RATES FOR 1992
Basic Rate 1.57 - 1.29 3.54 0.04 0.31 1.38 0.44 -
Voted Rate - 4.41 0.51 - - 0.03 0.21 0.10 0.25
TAX LEVIES
1990 $4,298,526 $14,453,576 $148,895,759 $294,742,566 $ - $32,967,034 $5,969,096 $17,407,235 18,169,217 $536,903,009
1991 4,582,620 15,921,245 175,252,520 344,626,681 410,505 32,876,348 6,652,219 23,073,495 20,242,839 623,638,472
1992 5,031,533 20,813,253 187,697,900 369,890,459 430,547 35,898,437 7,272,423 23,199,099 26,073,064 676,306,715
Source: King County Assessor's Office and King County Department of Finance.
00
co
n
0
lb
m
m
FISCAL
YEAR
1990
1991
1992
(A)
(B)
(C)
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
(B)
(A)
ASSESSED
POPULATION
VALUE
67,304
$3,093,528,051
70,660
3,199,629,123
72,350
3,623,964,550
(C)
GROSS
BONDED DEBT
$1,710,000
15,360,000
17,325,000
LESS DEBT
SERVICE FUNDS
$416,000
2,104,943
1,434,785
RATIO OF NET
BONDED DEBT
NET TO ASSESSED
BONDED DEBT VALUE
Table 7
NET BONDED
DEBT PER
$1,294,000
0.0004
$19.23
13,255,057
0.0041
187.59
15,890,215
0.0044
219.63
Sources: U.S. Census Bureau; State of Washington Office of Program Planning and Fiscal Management, Population Study Division; and the City's Community Development
Department.
The final certified Regular Levy assessed value of taxable property which was used by the King County Assessor's Office for use in calculating levy rates for the following
year's tax roll. The total assessed valuation of $3,623,964,550 has been reduced by senior citizen exemptions of $15,693,500 and prior year omits of $4,306,734
to arrive at taxable assessed valuation.
Includes certificates of participation issued In 1901 and 1992.
9
90 / City of Federal Way
COMPUTATION OF LIMITATION OF INDEBTEDNESS
Decmeber 31, 1992
Table 8
GENERAL DEBT CAPACITY
EXCESS LEVY
EXCESS LEVY
TOTAL
(Limited)
FINANCING
(Unlimited)
OPEN SPACE
UTILITY
DEBT
DESCRIPTION
COUNCILMANIC
LEASES
EXCESS LEVY
AND PARK
PURPOSES
CAPACITY
Statutory debt limit:
(AV=$3,623,964,550) (A)
.75%AV@100%
$27,179,734
$27,179,734
($54,359,468)
2.50% AV @ 100%
90,599,114
90,599,114
90,599.114
$271,797,342
Add:
Cash on hand for
debt redemption (B)
1,277,720
157,065
-
1,434.785
Less:
Bonds outstanding
(13,590,000)
(3,735,000)
(17,325,000)
Principal on equipment
lease/purchase contracts
REMAINING DEBT CAPACITY
$14,867,454
$23,601,799
$36,239,646
$90,599,114
$90,599,114
$255,907,127
TOTAL REMAINING
"GENERAL- CAPACITY (C) $74,708,899
(A) This figure represents the City's final total taxable assessed valuation (AV) for 1992 which was used to determine the 1993 property tax levy.
(B) Reflects balance available in the Debt Service Fund as of December 31, 1992.
(C) Combined total for Councilmanic, Financing Lease, and Excess Levy capacities.
City of Federal Way / 91
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1992
JURISDICTION
CITY OF FEDERAL WAY
KING COUNTY
PORT OF SEATTLE
SCHOOL DISTRICT #210
GREEN RIVER FLOOD ZONE
FIRE DISTRICT #39
LIBRARY
TOTAL DIRECT AND
OVERLAPPING DEBT
(A)
(B)
GROSS GENERAL
PERCENTAGE
OBLIGATION DEBT
APPLICABLE TO
OUTSTANDING
FEDERAL WAY
$ 17,325,000 (C)
100.00%
493,706,974
3.08%
24,284,300
3.08%
58,849,391
68.08%
-
0.93%
3,770,965
70.18%
63,847,542
7.42%
Table e
AMOUNT
APPLICABLE TO
17,325,000
15,206,175
747,956
40,064,665
2,646,463
4,737,488
$ 80,727,747
(A) Total general obligation bonds outstanding on December 31, 1992, exclusive of refunded bonds.
Source is King County Department of Finance.
(B) Determined by ratio of 1992 assessed valuation of property subject to taxation in overlapping unit to valuation of properly
subject to taxation in reporting unit.
(C) Includes certificates of participation issued in 1991 and 19W.
92 / City of Federal Way
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR Table 10
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
FISCAL (A)
YEAR PRINCIPAL INTEREST
1990 $ - $ - $
1991 300,000 111,203
1992 365,000 1,725,325
(B)
RATIO OF DEBT
TOTAL
SERVICE
GENERAL
TO GENERAL
TAL DEBT
GOVERNMENTAL
GOVERNMENTAL
;ERVICE
EXPENDITURES
EXPENDITURES
411,203
22,540,708
1.8%
2,090,325
28,473,046
7.3%
(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 / 93
DEMOGRAPHIC STATISTICS
Table 11
EDUCATION
(A)
LEVEL IN YEARS
(B)
(C)
FISCAL
PER CAPITA
MEDIAN
OF FORMAL
SCHOOL
UNEMPLOYMENT
YEAR
POPULATION
INCOME
AGE
SCHOOLING
ENROLLMENT
RATE
1990
67,304 $
-
29.0
13.0
18,167
3.4%
1991
70,660
15,750
27.8
13.0
18,827
4.6%
1992
72,350
15,155
30.6
13.0
19,488
5.7%
(A) Per capita income for Federal Way was not available for 1990 - the year of incorporation.
(B) Includes both public and private school enrollment. Kindergarten is included though not State mandated
(C) The unemployment rates for 1990 and 1991 reflect the annual average for Icing County.
The unemployment rate for 1992 reflects the annual average for the City of Federal Way.
Sources: Population, per capita income, and median age data were obtained from the City's Community Development Department.
School data was provided by the Federal Way School District.
Unemployment rate data was received from the State of Washington Employment Security Department.
Commercial Construction
Value
Year
Permits
(In Thousands)
1990
123 $
8,122
1991
114
6,043
1992
175
16,790
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Residential Construction (A)
Value
Permits (In Thousands)
448 $ 43,102
422 29,872
400 36,101
Multi -Family Construction (A) Bank Deposits (B)
Value King County
Permits (In Thousands) (In Millions) _
11 $ 3,500 $ 17,624
19,300
19,347
Table 12
Property Assessed Valuation (C)
Total Taxable
Exemptions
Non -Taxable
(In Thousands)
(In Thousands)
(In Thousands)
$ 3,101,693
$ 16,985
$ 8,165
3,213,952
24,062
13,033
3,643,965
38,500
15,694
(A) Source: Federal Way Community Development Department. Commercial construction includes alterations. Other building -related permits (plumbing, mechanical, fire alarm, etc.)
numbering 1,058 and valued at $8,265,723 have been excluded.
(B) Source: Federal Reserve Bank of San Francisco. The deposits disclosed are for June 30 of the prior year. The FDIC does not publish its annual update until late June.
(C) Source: King County Assessor's Office. See Table 5 for further assessed value information.
City of Federal Way / 95
PRINCIPAL TAXPAYERS
December 31, 1992
1990
Assessed
Taxpayer Type of Business Valuation
Sea Tao Mall Associates
U.S. West
Weyerhaeuser Real Estate Co.
Puget Power and Light
Cushman & Wakefield
Quadrant Corporation
Flanagan-Bal/Century Square Center
Inter Co-op USA/Manpower
Virginia Mason Clinic
Costco
Shopping Center
Communications/Telephone
Real Estate
Power Utility
Real Estate Management
Real Estate Management
Shopping Center
Temporary Services
Medical Services
Food/Merchandise
PRINCIPAL EMPLOYERS
December 31, 1992
$ 44,022,843
35,604,774
34,570,385
29,124,573
18,570,300
12,125,691
12,069,760
10,458,000
9,903,054
8,759,159
$ 215,208,539
Number of
Taxpayer
Type of Business
Employees
Federal Way School District
Education
2,045
Weyerhaeuser Company
Lumber Products
1,775
St. Francis Hospital
Medical Services
550
U.S. Postal Bulk Mail Center
Postal Service
550
Safeway Stores
Retail Grocery
300
Sears, Roebuck & Company
Retail
260
Manpower
Temporary Services
250
Fred Meyer
Retail
250
Costco
Retail
250
Albertsons Stores
Retail Grocery
225
(A) 1990 assessed valuations for taxes collected in 1991. Total 1990 assessed valuation for the City is $3,101,693,059.
Information for taxes collected in 1992 was not available.
Source: King County Assessor - Principal Taxpayers.
Federal Way Chamber of Commerce - Principal Employers
Table 13
(A)
Percentage
of Total
Assessed
Valuation
1.42%
1.15%
1.11%
0.94%
0.60%
0.39%
0.39%
0.34%
0.32%
0.28%
6.94%
NAME OF COMPANY
ITT Hartford
The Fidelity and Deposit
Company of Maryland
The Fidelity and Deposit
Company of Maryland
ITT Hartford
ITT Hartford
The Fidelity and Deposit
Company of Maryland
ITT Hartford
ITT Hartford
SCHEDULE OF INSURANCE IN FORCE
Table 14
December 31, 1992
ANNUAL
POLICY NUMBER
POLICY PERIOD
DETAILS OF COVERAGE
LIABILITY LIMITS
PREMIUM
WPO39904614000047
1/31/92
Public Officials
Per claim - $2,OOO,000
$
16,000
to
Liability Coverage
In aggregate - $2,000,000
1 /30/93
Deductible - $5,000
30269606
4/2/92
Public Official Bond
Coverage Limit - $250,000
$
1,250
to
Finance Director
4/1/93
30269607
4/16/92
Public Official Bond
Coverage Limit - $250,000
$
1,250
to
City Manager
4/15/93
WPO41904614000047
1/31/92
General Liability
Per claim - $2,OOO,D00
$
46,089
to
Coverage
Deductible - $5,000
1 /30/93
WP0269D4614000047
1/31/92
Municipal Property
Buildings - $3,964,000
$
4,722
to
Coverage
Extra expense - $2D0,000
1 /30/93
Misc property - $70,276
Valuable papers - $100,000
Deductible on each - $250
Media / Data - $25,000
Computers - $136,593
30268610 &
9/28/92
Public Employee
Coverage Limit - $250,000
$
1,003
30269608
to
Dishonesty Coverage
Deductible - $ 2,500
9/27/93
(Council Included)
WPO269046640000
1/31/92
Auto Liability
Per claim - $2,000,000
$
17,096
to
Collision - $1,000
1 /30/93
Comprehensive deductible -
$250
52PSSQK8459
1/31/92
Excess Policy
Per claim / Aggregate -
$
23,582
to
$5,000,000
1 /30/93
page 1 of 2
NAME OF COMPANY
ITT Hartford
rTT Hartford
SCHEDULE OF INSURANCE IN FORCE
December 31, 1992
POLICY NUMBER POLICY PERIOD
DETAILS OF COVERAGE
BMI-CL-892704902 1/31/92
Boiler & Machinery
to
1 /30/93
52WEQA0142 1/31/92
Employer Liability
to
Stop gap
1 /30/93
The Fidelity and Deposit 30381839
11/1/92
Public Official Bond
Company of Maryland
to
City Clerk
10/31 /93
The Fidelity and Deposit 30382079
11/27/92
Public Official Bond
Company of Maryland
to
Chief of Police
11 /26/93
TOTAL COST
* Law Enforcement $2,000,000 / Occurence, $2,000,000 / Aggregate,
$5,000 deductible is an endorsement of General Liability Coverage.
Table 14
(continued)
ANNUAL
LIABILITY LIMITS PREMIUM
Per accident - $350,000
Deductible - $1,000-$2,500 $ 1,012
Coverage Limit - $1,000,000 $ 42
Coverage Limit - $50,000 $ 175
Coverage Limit - $50,000 $ 250
$ 112,471
page 2 of 2
9
98 / City of Federal Way
SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS Table 15
December31, 1992
LEGISLATIVE BODY
POSITION EMPLOYEE
ANNUAL SALARY
MAYOR ROBERT STEAD
$
10,800
COUNCILMEMBERS MARY GATES
$
9,000
RONALD GINTZ
$
9,000
JOEL MARKS
$
4,800
MAHLON PRIEST
$
9,000
LYNN TEMPLETON
$
9,000
RAYMOND TOMLINSON
$
9,000
ADMINISTRATIVE STAFF
POSITION
EMPLOYEE
ANNUAL SALARY
CITY MANAGER
J. BRENT MC FALL
$
87,360
ASSISTANT CITY MANAGER/
PERSONNEL DIRECTOR
STEVE ANDERSON
$
54,912 - 82,368
ASSISTANT CITY MANAGER/
COMMUNITY DEVELOPMENT DIRECTOR
KEN NYBERG
$
54,912 - 82,368
CITY ATTORNEY
CAROLYN LAKE
$
54,912 - 82,368
CITY CLERK
MAUREEN SWANEY
$
41,916 - 53,040
FINANCE DIRECTOR
DEBORAH LARSON
$
54,912 - 82,368
PARKS, RECREATION &
HUMAN SERVICES DIRECTOR
ERIK J STEVENS
_$
54,912-_82,_368
PUBLIC WORKS DIRECTOR
PHILIP KEIGHTLEY
$
54,912 - 82,368
NOTE: In accordance with State of Washington legal statutes, individual fidelity coverage of not less than $100,000 exists for both
the City Manager and Finance Director.
City of Federal Way / 99
MISCELLANEOUS STATISTICAL INFORMATION Table 16
December 31, 1992
TYPE OF GOVERNMENT
Council - City Manager
ORGANIZATION STRUCTURE
Legislative Executive
Mayor 1 City Manager
6 Councilmembers 2 Assistant City Managers
CORPORATE INFORMATION
Administrative
4 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 19.9 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 72,350, of which 37,038 are registered voters. A total of 21,885 (est.)
people are employed within the City limits.
NUMBER OF CITY EMPLOYEES
On December 31, 1992, the City employed 117 full time salaried and 2 part-time hourly employees. There were
no commissioned police officers or uniformed firefighters. No unions represented City employees during 1992.
100 / City of Federal Way
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 1992
(continued)
RECREATIONAL FACILITIES
15 Developed park sites covering 220 acres.
7 Undeveloped park sites covering 238 acres.
20 Public courts, eight which are owned by the City and 2 are lighted.
1 Recreation facility.
2 Public swimming pools, both which are owned by King County.
2 Trails including one undeveloped (2.5 miles) and 1 developed (1.2 miles).
15 Open space/greenbelts covering 161 acres.
OTHER CITY -OWNED FACILITIES
1 Park maintenance facility.
1 5 acre undeveloped site.
PUBLIC EDUCATION
1990
1991
1992
20 Elementary schools with enrollment of .............
10,528
10,957
11,138
5 Middle schools with enrollment of ................
3,951
4,153
4,382
3 High schools with enrollment of .................
3,371
3,417
3,718
3 Alternative schools with enrollment of ..............
317
300
250
TOTAL ENROLLMENT .....................
18,167
18,827
19,488
1,005 Certified 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) 242 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 1101
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 1992
(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
1992
Rape ....................... , ..........
72
96
109
Robbery ................................
99
127
134
Homicide ...............................
4
1
6
Assault .................................
134
186
219
Auto Theft ..............................
496
535
603
Burglary ................................
905
883
906
Larceny ................................
3,383
3,890
3,840
Citations:
Traffic .................... ............. 7,849 10,862 13,159
Judicial System:
Handled by District Court 5,681 9,276 12,311
Jail Facility: King County Jail used at $43.49 per day per person, plus $76.61 booking fee per person.
Misdemeanor maintenance and bookings in 1992 were 4,209 and 895, respectively.
FIRE AND MEDIC 1 INFORMATION
1990 1991 1992
Fire Responses: ........................... 1,757 1,723 1,796
Emergency Medical: ........................ 4,441 4,807 4,956
(Fire and Medic I information reflects the greater Federal Way area, which is served by Fire District #39.)
102 / City of Federal Way
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 1992
(continued)
BUILDING RELATED PERMITS AND VALUES
1990
1991
1992
Building permits ...........................
582
536
575
Estimated Value (In Millions $) ..................
$54.7
$35.9
$52.9
Other Building Related Permits ..................
1,164
1,058
1,250
Estimated Value (In Millions $) ..................
$1.2
$8.3
$7.9
TAXABLE SALES (in Millions $)
1990
1991
1992
Retail Sales ..............................
$538.8
$770.1
$812.5
Real Estate Sales ..........................
$317.8
$270.5
$291.6