1993 Annual Comprehensive Financial Report (93-006)On-6 - OOG
City of Federal Way,
Washington
COMPREHENSIVE
ANNUAL FINANCIAL
REPORT
Year Ended December 31, 1993
Prepared by
Management Services Department
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 1993
Table of Contents
Statement
Reference Page
INTRODUCTORY SECTION
Letter of Transmittal ........ i
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 - Overview
("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 Balances -
All Governmental Fund Types and Expendable Trust Funds 2 11
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General, Special Revenue and Debt Service Fund Types ...... 3 12
Combined Statement of Revenues, Expenses, and Changes in Fund Equity -
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 Group
Statements and Schedules
General Fund ............................................. 49
Comparative Balance Sheet ................................... 49
Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance .. 50
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual ............. . .......................... 51
Schedule of Expenditures Compared to Budget ....................... 52
Special Revenue Funds ....................................... 58
Combining Balance Sheet .................................... 58
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 60
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual .................................. ...... 62
Debt Service Fund ........ .................................. 69
Comparative Balance Sheet ................................... 69
Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance .. 70
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual ....................................... 71
Capital Project Funds ........................................ 74
Combining Balance Sheet .................................... 74
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ... 76
Table of Contents (Cont'd)
Combining, Individual Fund and Account Group
Statements and Schedules (continued)
Table Page
Enterprise Fund ........................................... 79
Comparative Balance Sheet ................................... 79
Comparative Statement of Revenues, Expenses and Changes in Fund Equity 80
Comparative Statement of Cash Flows . . . . . . . ........ . . . ... . . . . . . .. 81
InternalService Funds ....................................... 83
Combining Balance Sheet ............................... . .... 83
Combining Statement of Revenues, Expenses, and Changes in Fund Equity ...... 84
Combining Statement of Cash Flows .............................. 85
Trust and Agency (Fiduciary) Funds .............................. 87
Combining Balance Sheet ..................................... 87
Federal Way Retirement System Expendable Trust Fund
Comparative Balance Sheet ................................. 88
Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance 89
Combining Statement of Changes in Assets and Liabilities -
All Agency Funds .................... . . . . . . ............ .. 90
General Fixed Assets Account Group .............................. 91
Schedule of General Fixed Assets - By Source ........................ 91
Schedule of General Fixed Assets - By Function and Activity 92
Schedule of Changes in General Fixed Assets - By Function and Activity ....... 93
STATISTICAL SECTION
General Governmental Expenditures and Other Uses by Function -
General, Special Revenue and Debt Service Funds .....................
1
95
Schedule of Major Revenues and Other Financing Sources by Source -
General, Special Revenue and Debt Service Funds .....................
2
96
Tax Revenue by Source - General, Special Revenue and Debt Service Funds .......
3
97
Property Tax Levies and Collections ................................
4
98
Assessed and Estimated Actual Value of Taxable Property ..................
5
99
Property Tax Rates - All Overlapping Governments ........ ... .... .......
6
100
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita .
7
101
Computation of Limitation of Indebtedness ............................
8
102
Computation of Direct and Overlapping Debt ..........................
9
103
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total
General Governmental Expenditures ..............................
10
104
Demographic Statistics ........................................
11
105
Property Value, Construction, and Bank Deposits ........................
12
106
Principal Taxpayers ................................... ..
13
107
Schedule of Insurance in Force .......... . ............. ......... ..
14
108
Salaries and Surety Bonds of Principal Officials .........................
15
110
Miscellaneous Statistical Data ......... ................ ...........
16
111
JCIT�YOF,4,C.-
33530 1ST WAY SOUTH
May 31, 1994
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,
1993 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 multi -year basis.
This report includes all funds and account groups of the City. There were no other governmental
organizations and activities for which the City was financially accountable 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 by the citizens of Federal
Way to serve four year terms. 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.
The City of Federal
Way incorporated on
February 28, 1990.
It is the sixth largest
city in Washington
State with a
population of 75,320
as of April 1, 1993.
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.
ECONOMIC TRENDS
1001
xm
offil, 10M
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, 1994 estimated to be 75,951. The 1993 population figure of 75,320
is an increase of 4.1 % over the 1992 figure of 72,350, provided by the State Office of Financial
Management. Extending similar assumptions, the City is projected to reach a population base of 92,000
by the year 2000.
iv
In 1993, there were
31,824 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 6.6 %
increase over 1992
and a 5.2 % 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 1993 taxable retail sales were $877 million, a 7.9% increase over the 1992 sales of $812.5
million. 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: retail trade 66.1 %; services 8.2 %; contracting
7.5 %; wholesale trade 6.1 %; transportation and public utilities 4.8 %; manufacturing 4.2 % and other
3.1%.
In 1993, new improvements to real estate totalled approximately $37.1 million or 1 % of the City's
assessed valuation. The total assessed value of taxable property in Federal Way was $3.6 billion which
is comparable to the 1992 assessed valuation. Real estate sales were approximately $281.2 million in
1993 as compared to $256.8 million in 1992. A total of 1,745 building permits were issued in 1993 with
a total valuation of $65.6 million. Permits for single family residential housing totalled 206 and were
valued at $32 million; and commercial permits totalled 10 and had a value of $6.5 million.
The Boeing Company announced on February 19, 1993 that up to 19,000 jobs will be lost over the next
18 months in the Puget Sound Region by the middle of 1994. In mid -January 1994, Boeing announced
that job reductions will total about 7,000 in the Puget Sound Region. The company has already laid off
approximately 4,000 in Washington State during 1994. The new forecast indicates Boeing's 1993-94 job
cuts could total about 18,000 in the Puget Sound Region, which is below the original forecast. At the
end of February 1994, total employment at Boeing was over 83,300 in Washington State.
v
The economic outlook remains flat, a continuation of the region's experience since 1990. The strength
of the retail trade, business service and high technology should be sufficient to prevent a significant
downturn. As for the Boeing downturn itself: (1) the multiplier effect is slower on the downside than
on the upside, i.e. each lost Boeing job does not take 2.6 jobs with it; (2) though production is cut,
Boeing will still be producing a new plane each business day; and (3) the backlog is still there, and
Boeing is continuing to aggressively pursue research and development projects as well as potential new
contracts. Given the strong retail base, significant service sector in the local economy and the new
businesses locating in the City, Federal Way is well positioned to climb these growth curves.
SIGNIFICANT EVENTS AND ACCOMPLISHMENTS
Since the City officially incorporated on February 28, 1990, 1993 was the third full year of service to
the community. Specific events or accomplishments in this year include the following:
■ The City sponsored two capital facility planning forums to receive public input on the future
capital facility needs for the City as well as alternative revenue sources to fund these needs which
will be incorporated into the final environmental impact statement; progress continued on the
CityShape project, which developed three alternative visions of Federal Way's future for inclusion
in the comprehensive land use plan as required by the state's Growth Management Act of 1990.
■ A total of 1,745 building permits were issued, 175 major discretionary land use permits and 382
code compliance complaints were received, and a number of carryover projects vested with King
County were completed.
• The Klahanee Lake Community/Senior Center was acquired and significant improvements were
made to the Center which resulted in a 14,000 square foot facility which was dedicated in
September.
® Over 600 business registrations were processed, the codification of all City ordinances was
maintained and updated for any changes; a false alarm ordinance was implemented which
required all security alarms to be registered and established provisions for false alarm penalties.
In March, the City advance refunded $11.125 million in outstanding 1991 general obligation
bonds with an average interest rate of 6.83% by issuing $12.105 million in general obligation
bonds with an average interest rate of 5.79%. The City received a credit rating upgrade by
Moody's from A to Al which reenforced the City's ongoing efforts to impress the financial
community with its financial policies and practices.
■ The Federal Way School District and the City initiated a joint project for the development of
Saghalie Park in conjunction with the building of a new Junior High School, resulting in the
issuance of $2.3 million in general obligation bonds to fund the City portion of the project.
■ The MIS department continued to evaluate, implement and develop new software in conjunction
with other City departments including: the geographical information system, accounting
software, a decentralized automated purchasing system, permit tracking system, recreation
registration system and various other software applications.
• The City continued to manage several contracts including: police services, jail services, street
services, solid waste collection, district court, human services and health services. Studies were
initiated during 1993 to review and evaluate alternative means to provide these services in the
most efficient and effective manner.
vi
• The Public Works Department continued to address the needs of the City with the street overlay
program, traffic signal synchronization, solid waste and recycling program and surface water
management capital improvements and water quality evaluation. A solid waste rate study and
audit of the franchisee were initiated and the City bid the street maintenance services for
implementation of a private contractor in 1994.
• The Community Outreach efforts continued during 1993 with the quarterly SPIRIT newsletter,
neighborhood safety forums, expansion of the volunteer program in all functions of the City and
various other community programs and forums.
• Human resource concerns received focus by conducting organizational training, analyzing health
and dental coverage and the feasibility of self -funding, administering the employee recognition
program, reviewing the current pay for performance system, administering the city-wide
educational assistance program and wellness program.
• The City developed multiple facilities at various park locations; acquired over 24 acres of open
space, including Lake Killarney, Hylebos and S.W. 363rd with King County open space funds;
and received and managed grant funds for various street, park and Community Development
Block Grant projects.
OUTLOOK FOR THE FUTURE
Long Term
The blueprint for Federal Way's future is found in its adopted Comprehensive Plan. Key economic
development goals in the plan include:
Housing and Population
• Preserve the predominantly single-family character and appearance of the community by
establishing population densities consistent with neighborhood and citywide objectives.
• 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 land ustrial
• 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.
vii
• Control strip development on major arterials while maintaining existing vital businesses.
m Define and implement a development and design concept for the City Center that establishes a
vibrant focal point and identity for the community.
• Build a transportation system that adequately serves commercial areas, encourages use of
alternative modes of transportation for work trips, and allows commercial and industrial growth
without creating additional congestion.
Establish design standards for commercial areas that are closely related to their functions but
encourage attractive appearance and protection of the environment.
• Protect industrial areas from encroachment by other uses and upgrade the quality of existing
industrial areas.
On n_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.
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 integrate land use and
circulation systems.
Natural Environment
Preserve the natural character of sensitive areas, habitats, wetlands, stream corridors, lakes and
aquifer recharge areas in order to protect public health, safety and welfare, and maintain the
beauty of the community.
Protect the quality of surface and groundwater, and maintain an adequate public water supply.
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 1994, the City of Federal Way has managed to
conservatively plan for the following enhancements to City services and facilities:
Building a safer community is a high priority for 1994 with funding provided to contract for
police, jail and court services, which have increased substantially over the past year; alternative
services will be reviewed during 1994 to assure the citizens receive quality and efficient services;
neighborhood safety forums will be held during the year.
viii
® Resources will continue to be devoted to the City Land Use and Transportation needs including
continued support for the overlay, sidewalk maintenance and traffic synchronization programs.
• Funding has been maintained at the 1993 level for the human services and arts commission
programs; a human services analysis of duplication of or gaps in service will be performed.
• Additional funding has been provided for neighborhood and school site sportsfield and playfield
improvements and development.
• The CityShape comprehensive plan and final environmental impact statement will be completed
during 1994.
• The new Klahanee Lake Community/Senior Center and the Retreat Center operations will be
funded for the first complete year in 1994.
i Continued efforts to receive grant and public works trust fund loans to provide support for street,
storm drainage (Kitts Corner and regional pond and wetland restoration on S. 336th) and park
(BPA Trail and Steel Lake) projects.
• An innovative venture entered into by the City and the School District for the construction of
Saghalie Park will be completed in anticipation of a September 1994 opening.
• Monies have been set aside in a special Airport Strategic Reserve fund to contest the expansion
of the SeaTac International Airport.
• Community outreach will continue during 1994 with various community forums, publication of
the SPIRIT newsletter and the volunteer program.
FINANCIAL INFORMATION
The City of Federal Way is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that
adequate accounting data are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal control structure is designed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived,
and 2) the evaluation of relative costs and benefits of the control system requires estimates and judgments
by management.
Single_ 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, 1993 indicated that there were no material weaknesses in the
internal control structure.
ix
lludgetary 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, Enterprise Fund and Internal Service Funds are
included in the annual appropriated budget. The level of budgetary control at which expenditures cannot
legally exceed the appropriated amount is established at the individual fund level. The City also
maintains an encumbrance accounting system as one technique of accomplishing budgetary control. All
appropriations lapse at year end.
As demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management.
Basis of Accounting
All governmental funds, the expendable trust fund and agency funds are accounted for using the modified
accrual basis of accounting. Under the modified accrual basis, revenues are recorded when received in
cash, except for revenues susceptible to accrual. Revenues considered susceptible to accrual are those
that are measurable and available to finance the government operation during the 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 Debt
Service Fund.
The City added one new
special revenue fund during
1993, the Donations Fund.
This fund was created to
specifically account for
donations of cash identified
for a specific project.
Overall financial performance
in the General Fund, Special
Revenue Funds and Debt
Service Fund was very
positive in 1993. Revenues
and other sources of funds
x
totalled almost $31.5 million as compared to $32.6 million for 1992. This results in a decrease of $1.17
million or 3.6%. Expenditures and other uses of funds totalled $33.5 million as compared to $28.9
million for 1992, an increase of 15.9%. Aggregate fund balances for these funds ended the year totalling
$12.1 million, a $1.5 million increase over the year's beginning balance.
The decrease in general governmental revenues is primarily the result of creating Capital Projects Funds
to account for the City's capital projects. Previous to 1993, capital projects were accounted for in the
general government funds.
The General Fund ended
1993 with a $3,414,457 fund
balance. This was a $70,296
decrease over the fund
balance at the end of 1992.
General Fund revenues
increased by $1.8 million
over 1992 and expenditures
increased by $4.0 million
respectively. The substantial
increase in expenditures is
due primarily to increased
public safety costs, increased
interfund transfers and the
purchase of a community/
senior center.
Revenue Summary
The following charts present a summary of General, Special Revenue, and Debt Service Fund revenues,
including other financing sources and residual equity transfers, for the 1993 calendar year as compared
to 1992. The refunding bond proceeds ($12,000,332) have been eliminated for purposes of this
comparison.
xi
1993 REVENUES AND OTHER SOURCES:
General, Special Revenue and Debt Service Funds
Interest/Wscellaneaous (2.1
htergovernmental (22.7%)
Taxes (49.0%)
Fines/Forfeitures O X %)
Services/Charges (11.7%)
Licenses/Permits
Other Financing Sources (10.1 %)
GENERAL, SPECIAL:. REVENUE, AND .DEBT SERVICE FUNDS
Revenues and Other Financill0ources
...:: .
Revenues
1993
1992
Change ::.
Amount
Percent '
Taxes
$ 15,414,561
$ 14,351,929
$ 1,062,632
7.4%
Licenses/Permits
877,369
771,568
105,801
13.7%
Intergovernmental
7,132,007
9,349,850
(2,217,943)
-23.7%
Services/Charges
3,679,367
3,936,975
(257,608)
-6.5%
Fines/Forfeitures
504,580
414,178
90,402
21.8%
Interest Earnings
507,111
512,702
(5,591)
-1.1 %
Miscellaneous
166,593
344,958
(178,365)
-51.7%
Other Financing Sources
3,186,012
2,957,298
228,714
7.7%
Residual Equity Transfer In
404,463
---
404,463
N/A
Total Revenues
$ 31,872,063
$ 32,639,458
$ (767,395)
-2.4%
The most significant dollar increase in revenues was in taxes and licenses and permits. Tax revenues
increased by over $1 million of which sales tax was up $542,000 or 7.9%, property taxes were up
$492,000 or 10.0% and other taxes (primarily criminal justice sales tax) were up $29,000 or 1.1%.
License and Permit revenues increased by $106,000 or 13.7 % which is attributable to increased franchise
fees receipts. Fines and Forfeitures and Other Financing Sources also increased by $90,000 and
$229,000 respectively.
The decrease in intergovernmental revenue is the result of receipting project specific revenues (i.e.
Transportation Improvement Board grant, revenues from King County and other governmental agencies
for capital purposes) to newly created Capital Projects Funds in 1993. In 1992, the City receipted all
project specific revenues to the Street and Arterial Street Funds including $4.1 million to fund the S.
356th Arterial Street project. The decrease in Charges for Services is due primarily to a decrease of
$365,000 for the collection of impact fees. Interest earnings also decreased slightly during 1993 due to
the drop in the Washington State Investment Pool earnings rate from 3.94% in 1992 to 3.24% in 1993.
xii
Expenditure Summary
The following charts present a summary of the General, Special Revenue, and Debt Service Fund
expenditures, other financing uses and residual equity transfers out for the year ending December 31,
1993, as compared to 1992. The amount remitted to refunding trustee ($11,867,177) has been eliminated
for purposes of this comparison.
1993 EXPENDITURES BY FUNCTION/OTHER USES
General, Special Revenue and Debt Service Funds
Residual Equity Transfers (03%)
Other Financing Uses (24.69:) Public Safety (24.59.)
Health (3.49:)
Debt Service (4.8%)
Capital Outlay (33%)
Environment (03%)
Transportation (12.6%)
Economic Environment (&3%) General Government (7.9%)
Culture 8t Recreation (9.5%)
GEI+ERAL, 7SPECIAL REVENUE, AND DEIST SERVICE FUNDS
Expenditures By Function...
.......... -------
Functian
1993
1992
Change
innuns Percent
General Government
$ 2,654,175 1
$ 2,459,407
$ 194,768
7.9%
Public Safety
8,207,434
6,602,857
1,604,577
24.3%
Physical Environment
260,086
121,866
138,220
113.4%
Transportation
4,222,759
7,924,118
(3,701,359)
-46.7%
Economic Environment
2,763,257
2,000,847
762,410
38.1%
Health
1,144,579
1,069,470
75,109
7.0%
Culture & Recreation
3,194,338
2,406,194
778,154
32.3%
Capital Outlay
1,119,746
401,998
717,748
178.5%
Debt Service -Principal
410,000
365,000
45,000
12.3%
Debt Service -Interest
1,180,917
1,736,319
(555,402)
-32.0%
Other Financing Uses
8,218,847
3,384,980
4,833,867
142.8%
Residual Equity Transfer Out
110,816
404,420
(293,604)
-72.6%
Total Expenditures
$ 33,476,954
$ 28,877,466
$ 4,599,488
.. ....... ..... ..........
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE,417ND4
Expenditures -By Object ....
ahjecr
.--......
1993
.... .
1992
... .
Cfrgngc
Amount
Percent
Personal Services
$ 5,776,709
$ 4,828,615
$ 948,094
19.6%
Supplies
382,109
434,561
(52,452)
-12.1%
Other Services and Charges
3,241,201
2,820,023 1
421,178
14.9%
Intergovemmental
18,018,590
12,535,476
5,483,114
43.7%
Capital Outlay
2,020,634
4,724,663
(2,704,029)
-57.3%
Debt Service Principal
410,000
365,000
45,000
12.3%
Debt Service Interest
1,041,471
1,733,819
(692,348)
-39.9%
Interfund Services
2,586,240
1,435,309
1,150,931
80.1%
Total Expenditures
$ 33,476,954
$ 28,877,466
$ 4,599,488
15.9%
1993 EXPENDITURES BY OBJECT
General, Special Revenue and Debt Service Funds
Debt Service (4.3%) Persnrrdl Services (17.3%)
(1.1 %)
Outlay (6.0%)
Services/Charges
Services
29
Public Safety expenditures increased by $1.6 million or 24.3% due to increases in police and jail service
contracts. Also contributing to this increase was a one-time COLA payment dating back to 1991.
Increases in economic environment represents the creation of the Community Outreach and Policy
Planning Department which was reclassified from general government to economic environment during
1993. It is also the result of increased activity in the Special Contracts/Studies and CDBG Funds.
Culture and recreation increased due primarily to the partial funding ($319,200) for the purchase of the
Klahanee Lake Community/Senior Center. The increase in capital outlay is also attributable to the
purchase and renovations at the Klahanee Lake Community/Senior Center. The increase in other
financing uses and decrease in transportation is the result of newly created Capital Projects Funds in
Av
1993. The new funds were funded primarily with transfers from the general governmental funds. The
decrease in interest paid is due to reduced interest payments due on the 1991 GO Bond issue.
During 1993, the third full year of operations, the City implemented additional City programs that were
not operational in 1992. This resulted in increased personal service and other services and charges
expenditures.
Fund Balance
Overall fund balances in the General and Special Revenue Funds totalled $10.4 million in 1993 compared
to $12.1 million in 1992. This represents a decrease of 13.9%. The fund balance in the Debt Service
Fund reflects revenues set aside to pre -fund the debt service on outstanding general obligation debt.
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Anahfsis of Fund .Balance
.....
........
Change
-Ambunl Percent ..
Fawl Balance
1993
1992
General
$ 3,414,457
$ 3,484,753
$ (70,296)
-2.1 %
Special Revenue
Street
430,338
833,975
(403,637)
-48.4%
Arterial Street
1,518,534
2,116,367
(597,833)
-28.2%
1st 'A % Real Estate Tax
110,989
128,507
(17,518)
-13.6%
2nd ''A % Real Estate Tax
113,544
101,212
12,322
12.2%
Solid Waste/Recycling
163,045
122,722
40,323
32.9%
Special Contracts/Studies
73,035
57,500
15,535
27.0%
Grants -Miscellaneous Governmental
108,884
286,252
(177,368)
-62.0%
Community Development Block Grant
12,238
---
12,238
N/A
Paths and Trails Reserve
28,380
19,395
8,985
46.3%
Surface Water Management
2,050,357
2,550,008
(499,651)
-19.6%
Donations
8,006
--
8,006
N/A
Impact Fee
244,093
324,273
(80,180)
-24.7%
Strategic Reserve
2,144,539
2,078,894
65,645
3.2%
Subtotal Special Revenue
7,005,982
8,619,105
(1,613,123)
-18.7%
Debt Service
1,646,468
1,434,785
211,683
14.8%
Total Fund Balance
$ 12,066,907
$ 13,538,643
$ (1,471,736)
-10.9%
PROPRIETARY OPERATIONS
In 1993 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 established an enterprise fund during 1993
to account for the acquisition and operations of a Retreat Center facility which was purchased with King
County open space and conservation futures funding.
xv
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 invested through a financial advisor during 1993.
Investment policies and an asset allocation strategy were determined by the City's Retirement System
Board in conjunction with an employee advisory group.
DEBT ADMINISTRATION
During 1993, the City issued $2,390,000 in limited tax general obligation bonds to finance a portion of
the costs for improvements to Saghalie park. The City and School District #210 are cooperating to jointly
develop our respective properties for community recreation and student activities.
The City also issued $12,105,000 in general obligation bonds to advance refund $11,125,000 in 1991
general obligation bonds. As a result, the $11,125,000 in 1991 general obligation bonds are considered
to be defeased and the liability for those bonds has been removed from the general long term debt account
group.
The City's outstanding debt is .55% of its taxable assessed valuation. As of December 31, 1993, the
City's remaining debt capacities are summarized below:
Use Capacity
e General Government Use
• Non -voted: $ 12,095,257
Certificates of Participation: 24,212,742
Voted: 36.303.139
Subtotal General $ 72,611,138
Park and Open Space Use
• Voted: 90,757,848
Utility System Use
• Voted: 90,757,848
Total Capacity $254,126,834
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, 1993 the City had $18,477,875 invested in the State Local Government Investment
Pool. The Pool investments included bankers acceptances (1.1 %), repurchase agreements (41.3 %), U.S.
xvi
Agency securities (1.0%), U.S. Treasury securities (55.0%), and certificates of deposit (1.6%). Pool
investments had an average term to maturity of 56 days.
The State charges an administrative fee equivalent to five basis points (.05 %). The 1993 average monthly
earnings rate was approximately 3.24% after deducting the administrative fee.
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.
As of February 1, 1994, the City has elected to self -insure its dental program as well as unemployment
compensation. The City will utilize the payroll benefits internal service fund to account for the dental
self-insurance program.
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
1993, the City purchased commercial insurance policies from commercial insurers. 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.
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 1993 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 1993. 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, 1992. The certificate of achievement is a
prestigious national award recognizing conformance with the highest standards for preparation of state
and local government financial reports.
In order to be awarded a Certificate of Achievement, a 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.
xvii
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 years (fiscal years ended 1991 and 1992). We
believe that our current report continues to conform to the Certificate of Achievement Program
requirements, and we are submitting it to the GFOA.
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, 1993. In order to
receive this award, a governmental unit must publish a budget document that meets program criteria as
a policy document, a financial plan, an operations guide, and a communications medium.
ACKNOWLEDGMENTS
The preparation of this comprehensive annual financial report represents the culmination of months of
concerted teamwork by the entire staff of the 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, Carlos Martinez, Tho Kraus, 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.
Respectfu y submitted,
Kenneth E. Nyberg Iwen ang
City Manager Director of Management Services
xviii
City of Federal Way / 1
CITY OFFICIALS
MARY GATES
Mayor
PHIL WATKINS
Deputy Mayor
RON GINTZ MAHLON'SKIP' PRIEST
Councilmember Councilmember
rI
i
HOPE ELDER
Councilmember
ROBERTSTEAD
Councilmember
KENNETH E. NYBERG
City Manager
OTHER ADMINISTRATIVE OFFICERS
IA
RAY TOMLINSON
Councilmember
Assistant City Manager .. . . . . . _ . . . . . . . . . . .
. . . . . . . . . . . . Stephen L. Anderson
City Attorney . . . .... . . . . . . . . . . .. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . Carolyn Lake
City Clerk . . . . . ... . . . .... .. . . .... . . . . . . . . . .
. . . . . . . . . . . . . . . . Maureen Swaney
Community Development Director . . .... .. . . . . . .
. . . . . . . . . . . . . . .. . Greg Moore
Community Outreach and Policy Planning Director . . . . . . . . . .
. . . . . . . . . . . . . . . .. Larry Springer
Management Services Director .. . . .. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . Iwen Wang
Parks Director . .. .... . . . . . . . . .. . . . . . . . . .
. . . . . . .. . Erik Joe Stevens
Public Works Director . . . .. . . . . . . . . . . .. . . . . . .
. . . . . . . . . . . . . .. . Phillip Keightley
2 / City of Federal Way
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City of Federal Way / 3
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Federal Way,
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1992
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.
`�Gf OFFjr,,
ti -�4�
xrrIo srAM �&� I
W AM y
g MW
CNPdRATM P President
SEAL
CNICA60
Executive Director
The Government Finance
Officers Association of the
United States and Canada
(GFOA) awarded a
Certificate of Achievement
for Excellence in Financial
Reporting to the City of
Federal Way for its
comprehensive annual
financial report for the fiscal
year ended December 31,
1992. The Certificate of
Achievement is a prestigious
national award recognizing
conformance with the
highest standards for
preparation of state and
local government financial
reports.
In order to be awarded a
Certificate of Achievement,
a government unit must
publish an easily readable
and efficiently organized
comprehensive annual
financial report, whose
contents conform to
program standards. Such
CAFR must satisfy both
generally accepted
accounting principles and
applicable legal
requirements.
A Certificate of
Achievement is valid for a
period of one year only.
The City of Federal Way
has received a Certificate of
Achievement for the last
three 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 OF ��
X
Legislative Building Washington State Auditor
PO Box 40021 Brian Sonntag
Olympia, Washington 98504-0021
INDEPENDENT AUDITOR'S REPORT
May 26, 1994
The Honorable Mayor and City Council
City of Federal Way
King County, Washington
(206) 753-5277
SCAN 234-5277
FAX (206) 753-0646 SCAN 2344"
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, 1993, as listed in the table of contents. These financial statements are the
responsibility of the city's management. Our responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Our audit was performed pursuant to the Revised Code of Washington 43.09.260, under which a full report on the results of
this audit will be issued. This report may include findings and recommendations on compliance matters, internal control
procedures, and questionable costs or contingencies that would not be material in relation to the general-purpose financial
statements taken as a whole.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the
City of Federal Way, King County, Washington, at December 31, 1993, and the results of its operations and the cash flows
of its proprietary fund types 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 (lata.
S• ce y,
Brian Sonntag
State Auditor
CITY OF Ae�--
rv� �
General Purpose
Financial Statements
8 / City of Federal Way
COMBINED BALANCE SHEET
Statement 1
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1993
Governmental Fund Types
Special
Debt
Capm
General
Revenue
Service
Projects
ASSETS
Cash and cash equivalents (Note 4) $ 3,563,577 $
7,027,501 $
1,650,709 $
4,023,616
Cash with escrow agent (Note 4) -
Cash - deferred compensation (Note 4)
Investments with plan administrator (Note 4) -
Receivables (net) (Note 5)
Taxes 368,405
-
Housing rehab. loans
121,919
Accounts and contracts
11,831
215
Interest -
-
Due from other funds/interfund loans receivable(Note 13) 162,289
102,427
23,138
Due from other governments (Note 5) 1,379,448
658,849
254,302
Property/equipmentrmprovements (net) (Note 7) -
-
-
Construction work in progress (Note 7)
Amount available in debt service funds
Amount to be provided for retirement of
long-term debt -
-
-
TOTAL ASSETS $ 5,473,719 $
7,922,527 $
1,650,709 $
4,301,271
LIABILITIES AND FUND EQUITY
Liabilities:
Vouchers payable
Accounts/payroll payable
Retainage payable
Retainage payable - with escrow agent
Interest payable
Due to other governments (Note 6)
Due to other fundsfinterfund loans payable (Note 13)
Deferred compensation payable (Note 9)
Custodial accounts
Deposits payable
Deposits payable - with escrow
General obligation bonds (Note 12)
Bond anticipation notes (Note 18)
Certificates of participation payable (Note 12)
Compensated absences payable (Note 12)-
Deferred revenues
TOTAL LIABILITIES
Fund equity and other credits:
Contributed capital (Note 14)
Investment in general fixed assets
Retained earnings - unreserved
Fund balance:
Reserved for:
Interfund loans
Employee retirement
Debt service
Paths and trails
Housing rehabilitation
Petty cash/change fund/advance travel
Unreserved:
Undesignated
TOTAL FUND EQUITY AND OTHER CREDITS
TOTAL LIABILITIES & FUND EQUITY & OTHER CREDITS
See accompanying notes to financial statements.
$ 1,605,038 $
408,486 $
530 $
492,163
720
66,188
950
-
11,429
-
181,924
166,465
273,975
2,761
23,782
4,706
9,610
270,904
158,286
2,059,262
916,545
4,241
697,869
75,000
- 1,646,468
28,380 -
12,238
7,920
3,331,537 6,965,364 3,603,402
3,414,457 7,005,982 1,646,468 3,603,402
$ 5,473,719 $ 7,922,527 $ 1,650,709 $ 4,301,271
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)
Enterprise
Service
Agency
Fixed Assets
term Debt
1993
1992
$ 549,541 $
978,305
$
408,950
$
-
$
$
18,202,199 $
15,467,601
-
-
178,989
-
178,989
165,880
430,178
-
430,178
283,727
1,445,239
-
-
1,445,239
885,316
-
-
368,405
394,906
-
121,919
64,196
-
12,046
24,884
-
-
-
-
4,179
18,506
281,448
-
-
587,808
2,261,052
340,000
-
-
2,632,599
74,702
2,744,990
4,049,877
29,755,711
-
36,550,578
28,652,167
-
-
1,626,810
-
1,626,810
-
-
1,646,468
1,646,468
1,434,785
-
-
16,470,902
16,470,902
13,688,533
$ 3,653,037
5,309,630
$
2,463,356
$
31,382,521
$ 18,117,370
$
80,274,140 $
63,401,928
$ 6,228
61,717
$
$
-
$ -
$
2,574,162 $
2,840,005
-
-
67,858
77,649
18,762
18,762
8,008
75,837
75,837
165,880
178,222
-
371,575
438,384
120,825
-
-
587,808
74,702
430,178
-
430,178
283,727
12,530
-
12,530
12,530
413
6,034
199,435
-
220,198
92,541
-
103,153
-
-
103,153
-
-
-
16,620,000
16,620,000
13,590,000
955,000
-
-
955,000
-
-
2,140,000
-
-
1,335,000
3,475,000
3,735,000
320
5,721
-
-
162,370
168,411
132,804
-
-
-
-
429,190
408,793
961,961
2,334,297
1,018,117
18,117,370
26,109,662
21,860,023
2,699,160
1,836,377
-
-
-
4,535,537
1,883,842
-
-
-
31,382,521
31,382,521
24,438,325
(8,084)
1,138,956
-
1,130,872
379,762
-
-
-
-
75,000
60,000
1,445,239
-
1,445,239
896,870
-
-
1,646,468
1,434,785
-
-
28,380
19,395
-
12,238
-
-
7,920
6,720
-
-
-
-
13,900,303
12,422,206
2,691,076
2,975,333
1,445,239
31,382,521
-
54,164,478
41,541,905
$ 3,653,037 $
5,309,630
$
2,463,356
$
31,382,521
$ 18,117,370
$
80,274,140 $
63,401,928
Page 2 of 2
WY of G
City of Federal Way / 11
Statement 2
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
ALL GOVENMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Fines and forfeitures
Miscellaneous:
Interest
Employeelemployer contributions
Other
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Security of persons and property
Physical environment
Transportation
Economic environment
Health
Culture and recreation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
For the Year Ended December 31,1993
Fiduciary
Governmental Fund
Types
Fund Type
Totals
Special
Debt
Capital
Expendable
(Memorandum
only)
General
Revenue
Service
Projects
Trust
1993
1992
$ 14,008,648 $
1,405,913 $
$
$
$
15,414,561 $
14,351,929
821,867
55,502
877,369
771,568
3,142,377
3,989,630
852,874
7,984,881
9,349,850
591,120
3,088,247
4,080
3,683,447
3,936,975
504,580
-
-
504,580
414,178
194,757
262,409
49,945
72,887
124,177
704,175
539,883
495,133
495,133
411,257
93,525
70,568
2,500
166,593
344,958
19,356,874
8,572.269
52,445
928,841
619.310
29,830.739
30,120,598
2,644,890
9,285
-
70,941
2,725,116
2,562,740
8,187,533
19,901
-
8,207,434
6,602,857
19,889
240,197
260,086
121,866
-
4,222,759
4,222,759
7,924,118
2,279,852
483,405
2,763,257
2,000,847
1,144,579
1,144,579
1,069,470
2,636,491
547,847
-
3,184,338
2,406,184
1,119,746
4,676,130
5,795,876
401,998
-
410,000
410,000
365,000
-
-
1,180,917
31,587
-
1,212,504
1,736,319
18,032,980
5.523,394
1,590,917
4.707,717
70,941
29,925,949
25,191,399
1,323,894
3,34H,875
(1,538,472)
(3,777,876)
548.369
(95,210)
4,929,199
Bond proceeds (Note 12)
12,000,332 2,390,000
Operating transfers in (Note 13)
1,569,012 1,617,000 4,991,278
Amount remitted to refunding trustee (Note 12)
- (11,867,177)
Operating transfers out (Note 13)
(1,734,408) (6.484,439)
TOTAL OTHER FINANCING
SOURCES (USES)
(1,734,408) (4,915,427) 1,750.155 7,381,278
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
FUND BALANCES AT
BEGINNING OF YEAR
Residual equity transfers in (Note 13)
Residual equity transfers out (Note 13)
FUND BALANCES AT END OF YEAR
See accompanying notes to financial statements.
(410,514) (1,566,552) 211,683 3,603,402
14,390,332 -
8,177,290 3,384,980
(11,867,177) -
(8,218,847) (3,384,980)
2,481,598
548,369 2,386,388 4,929,199
3,484,753 8,619,105 1,434,785 404,463 896,870 14,839,976 10,315,197
404,463 - - 404,463 -
(64,245) (46,571) - (404,463) (515,279) (404,420)
$ 3.414,457 $ 7,005,982 $ 1,646,468 $ 3,603,402 $ 1,445,239 $ 17,115,548 $ 14,839,976
12 / City of Federal Way
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUND TYPES
FOR WHICH ANNUAL BUDGETS HAVE BEEN LEGALLY ADOPTED
For the Year Ended December 31, 1993
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
Transportation
Economic environment
Health
Culture and recreation
Capital outlay
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds of general long-term debt (Note 12)
Operating transfers in (Note 13)
Amount remitted to refunding trustee (Note 12)
Operating transfers out (Note 13)
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 in (Note 13)
Residual equity transfers out (Note 13)
FUND BALANCES
AT END OF YEAR
Statement 3
General Fund
Special Revenue Fund Types
Variance
Variance
Favorable
Favorable
Budget
Actual
(.Unfavcmble)
Budget
Actual
(Unfavorable)
$ 13,673,112
$ 14,008,648 $
335,536 $
1,284,000 $
1,405,913 $
121,913
664,850
821,867
157,017
43,000
55,502
12,502
2,936,411
3,142,377
205,966
3,396,915
3,189,862
(207,053)
568,443
591,120
22,677
2,725,677
2,905,347
179,670
512,870
504,580
(8,290)
-
-
-
201,370
194,757
(6,613)
84,101
241,733
157,632
58,442
93,525
35,083
-
29,127
29,127
18,615,498
19,356,874
741,376
7,533,693
7,827,484
293,791
3,543,951
2,644,890
899,061
-
-
8,218,724
8,187,533
31,191
-
-
-
19,889
19,889
-
325,813
183,023
142,790
-
-
4,902,111
4,103,868
798,243
2,528,716
2,279,852
248,864
-
-
-
1,112,673
1,144,579
(31,906)
2,864,020
2,636,491
227,529
1,089,154
1,119,746
(30,592)
18,032,980
5,227,924
4,286,891
941,033
1,344,147
19,377,127
(761,629)
1,323,894
2.085,523
2,305,769
3,540,593
1,234,824
• 1,263,185 1,263.185
(2,149,852) (1,734,408) 415,444 (8,170,139) (6,148,561) 21,578
(2,149,852 (1,734,408) 415,444 (4,906,954) (4,885.376) 21,578
(2,911,481) (410,514) 2,500,967 (2,601,185) (1,344,783) 1,256,402
3,124,753 3,484,753 360,000 5,872,482 7,951,080 2,078,598
403,699 404,463 764 - - -
(103.870) (64,245) 39,625 (63,013) (46,571) 16,442
$ 513,101 $ 3,414,457 $ 2,901,356 $ 3,208,284 $ 6,559,726 $ 3,351,442
See accompanying notes to financial statements. Page 1 of 2
City of Federal Way / 13
Statement 3 (Continued)
Totals
Debt Service Fund Type
Memorandum ❑n
Variance
Variance
Favorable
1993
Favorable
1992
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Actual
$ $
_
$ _
$ 14,957,112
$ 15,414,561 $
457,449
$ 14,351,929
_
707,850
877,369
169,519
771,568
_
6,333,326
6,332,239
(1,087)
8,976,983
_
-
3,294,120
3,496,467
202,347
3,388,640
-
512,870
504,580
(8,290)
414,178
35,000
49,945
14,945
320,471
486,435
165,964
428,334
2,500
2,500
58,442
125.152
66,710
344.958
35.000
52,445
17,445
26,184,191
27,236,803
1,052,612
28,676,590
_
-
3,543,951
2,644,890
899,061
2,451,514
8,218,724
8,187,533
31,191
6,602,685
345,702
202,912
142,790
83,065
4,902,111
4,103,868
798,243
7,700,056
2,528,716
2,279,852
248,864
1,850,900
1,112,673
1,144,579
(31,906)
1,064,820
2,864,020
2,636,491
227,529
2,406,184
_
-
1,089,154
1,119,746
(30,592)
401,998
410,000
410,000
-
410,000
410,000
-
365,000
1,207,784
1,180,917
26,867
1,207,784
1,180,917
26,867
1,736,319
1,617,784
1,590,917
26,867
26,222,835
23,910,788
2,312,047
24,662,541
(1,582,784)
(1,538,472)
44,312
(38.644)
3,326,015
3,364,659
4,014,049
12,000,332
12,000,332
12,000,332
12,000,332
-
-
1,661,312
1,617,000
(44,312)
2,924,497
2,880,185
(44,312)
2,883,129
(11,867,177)
(11,867,177)
(11,867,177)
(11,867,177)
-
-
(8,319,991)
(7,882,969)
437,022(2.978,411)
1,794,467
1,750,155
(44,312)
(5,262,339)
(4,869,629)
392,710
(95,282)
211,683
211,683
(5,300,983)
(1,543,614)
3,757,369
3,918,767
1,434,785
1,434,785
10,432,020
12,870,618
2,438,598
7,277,377
-
403,699
404,463
764
-
-
(166,883)
(110,816)
56,067
(404,420)
$ 1,646,468 $
1,646,468
$ -
$ 5,367,853
$ 11,620,651 $
6,252,798
$ 10,791,724
Page 2 of 2
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, 1993
Totals
Enterprise
Internal Service
(Memorandum only)
Fund
Funds
1993
1992
OPERATING REVENUES:
Service charges and fees $
4,472 $
2,120,558
$ 2,125,030
$ 1,299,809
Miscellaneous
156,219
156,219
40,625
TOTAL OPERATING REVENUES
4,472
2,276,777
2,281,249
1,340,434
OPERATING EXPENSES:
Personnel services
10,452
256,789
267,241
136,248
Services and charges
23,116
756,089
779,205
673,858
Materials and supplies
6,930
109,921
116,851
174,669
Insurance
151,187
151,187
126,084
Claims
46,731
46,731
35,253
Depreciation
-
403,598
403,598
173,356
TOTAL OPERATING EXPENSES
40,498
1,724,315
1,764,813
1,319,468
OPERATING INCOME (LOSS)
(36,026)
552,462
516,436
20,966
NON -OPERATING REVENUES (EXPENSES). -
Interest income
534
30,024
30,558
18,693
Interest expense
-
(109,773)
(109,773)
(28,968)
Debt issue costs
(14,149)
-
(14,149)
TOTAL NON -OPERATING
REVENUES (EXPENSES)
(13,615)
(79,749)
(93,364)
(10,275)
INCOME(LOSS) BEFORE
OPERATING TRANSFERS
(49,641)
472,713
423,072
10,691
OPERATING TRANSFERS IN
41,557
-
41,557
-
NET INCOME (LOSS)
(8,084)
472,713
464,629
10,691
Add depreciation reducing contributed capital
-
287,098
287,098
173,356
Increase (decrease) in retained earnings
(8,084)
769,811
751,727
184,047
RETAINED EARNINGS, January 1
379,762
379,762
207,103
Residual equity transfers out (Note 13)
(617)
(617)
(11,388)
RETAINED EARNINGS, December 31 (Note 16)
(8,084)
1,138,956
1,130,872
379,762
CONTRIBUTED CAPITAL, January 1 (Note 14)
1,883,842
1,883,842
1,247,127
Increases to contributed capital
2,699,160
239,633
2,938,793
810,071
Less Amortization
-
(287.098)
(287,098)
(173,356)
CONTRIBUTED CAPITAL, December 31
2,699,160
1,836,377
4,535,537
1,883,842
FUND EQUITY AT END OF YEAR $
2,691,076 $
2,975,333
$ 5,666,409
$ 2,263,604
See accompanying notes to financial statements.
City of Federal Way / 15
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
For the Year Ended December 31, 1993
Statement 5
Totals
Enterprise
Internal Service
(Memorandums only)
Fund
Funds
1993
1992
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
$ $
2,027,109
$
2,027,109
$
1,299,809
Cash received for goods/services
4,472
-
4,472
Cash received for damage deposits
413
413
Cash payments to suppliers for goods/services
(2,300)
(1,128,972)
(1,131,272)
(747,858)
Cash payments to employees
(255,557)
(255,557)
(136,248)
Cash payments for personal services
(10,132)
(10,132)
Cash payments to claimants
(46,731)
(46,731)
(35,253)
Cash payments to other funds for services
(21,518)
(86,910)
(108,428)
(46,340)
Other operating receipts
111,422
111,422
46,659
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
(29,065)
620,361
591,296
380,769
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Operating transfers in
23,051
-
23,051
-
Residuai equity transfers out (Note 19)
(146)
(146)
(11,388)
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
23,051
(146)
22,905
(11,388)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets
(2,744,990)
(122,791)
(2,867,781)
(415,808)
Cash contributions for capital acquisitions
3,314,160
80,707
3,394,867
415,808
Insurance claims
11,361
11,361
-
Principal paid on debt service
(190,000)
(190,000)
Interest and fiscal charges on debt service
(14,149)
(109,773)
(123,922)
(28.968)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
555,021
(330,496)
224,525
(28,968)
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
534
30,024
30,558
18,693
NET CASH PROVIDED (USED) IN INVESTING
ACTIVITIES
534
30,024
30,558
18,693
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
549,541
319,743
869,284
359,106
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
-
658,562
658,562
299,456
CASH AND CASH EQUIVALENTS AT END OF YEAR
$ 549,541 $
978,305
$
1,527,846
$
658,562
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING
ACTIVITIES
Operating income
$ (36,026) $
552,462
$
516,436
$
20,966
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation expense
403,598
403,598
173,356
(Increase) decrease in due from other funds (Note 19)
(151,747)
(151,747)
-
Increase(decrease) in vouchers/accounts payable
6,228
(206,563)
(200,335)
181,389
Increase(decrease) in due to other funds (Note 19)
21,376
21,376
-
Increase(decrease) in accrued payroll/
compensated absences payable
320
1,235
1,555
(976)
Increase(decrease) in deposits payable
413
-
413
6,034
TOTAL ADJUSTMENTS
6,961
67,899
74,860
359.803
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
$ (29,065) $
620,361
$
591,296
$
380,769
SCHEDULE OF NONCASH INVESTING,
CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets
$ - $
129,201
$
129,201
$
394,263
crrY OF
s ' E�
City of Federal Way / 17
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
INDEX
Note
Page
1
Summary of Significant Accounting Policies ........................
18
Reporting Entity .......................................
18
Basis of Presentation --Fund Accounting ........................
18
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 Funds; 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 ................
26
2
Stewardship, Compliance and Accountability ........................
26
3
Supplemental Appropriations ..................................
26
4
Cash and Investments ......................................
27
5
Receivables and Due From Other Governments ......................
28
6
Due To Other Governments ..................................
30
7
Fixed Assets and Depreciation .................................
30
8
Pension Plans ...........................................
31
9
Other Employee Benefits ....................................
35
10
Risk Management .........................................
35
11
Estimated Arbitrage Rebate ...................................
37
12
Long -Term Debt .........................................
37
13
Interfund Transactions ......................................
42
14
Contributed Capital ........................................
44
15
Contractual Obligations, Contingencies and Litigation ..................
45
16
Fund Additions and Deficit Retained Earnings .......................
45
17
Change in Accounting Principle ................................
45
18
Short -Term Debt .........................................
46
19
Cash Flow Reconciliation ....................................
46
18 / City of Federal Way
For the Year Ended December 31, 1993
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 council serves 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. 1993 marks its third 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. In conformance with Governmental Accounting Standards Board (GASB)
Statement 14, "The Financial Reporting Entity", the primary basis of determining whether outside agencies and
organizations should be considered component units of the City is Financial Accountability. Financial accountability
is defined as appointment of a voting majority of an agency's or organization's board, and either the City's ability to
impose will on the agency or organization or the possibility that the agency or organization will provide a financial
benefit to or impose a financial burden on the City.
A joint venture is a legal entity or organization which results from a contractual arrangement that is owned, operated,
or governed by two or more participants as a separate activity subject to joint control, in which participants retain an
ongoing financial interest or an ongoing financial responsibility.
Based on application of the above criteria for a component unit, and the criteria for defining joint ventures, 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 Medical Center
Federal Way District Pool
Federal Way Fire District #39
Federal Way Library System
Basis of Presentation - Fund Accounting
Federal Way School District #210
Federal Way Water and Sewer District
Federal Way Youth and Family Services
The accounts of the City are organized on the basis of funds and account groups. Each fund is a separate accounting
entity with a self -balancing 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
City of Federal Way / 19
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 Types
Governmental funds are used to account for activities typically associated with state and local government operations.
All governmental fund types are accounted for on a spending or "financial flows" measurement focus, which means that
typically only current assets and current labilities are included on related balance sheets. The operating statements for
governmental funds measure changes in financial position, rather than net income. They present increases (revenues
and other financing sources) and decreases (expenditures and other financing uses) in net current assets. The four
generic fund types in this category are described in the following paragraphs.
The General Fund is the general operating fund of the City and accounts for all activities not required to be accounted
for in some other fund.
Special Revenue Funds account for the proceeds of specific revenue sources, other than expendable trusts or revenues
designated for major capital projects, that are legally restricted to expenditures for specific purposes.
Debt Service Funds account for the accumulation of resources for, and the payment of general long-term debt, 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.
Proorietary 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 of providing
goods or services to the general public on a continuing basis.
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 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.
20 / City of Federal Way
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 assets accounted for
in the proprietary funds.
The General Long-term Debt Account Group accounts for all long-term debt of the City other than debt accounted for
in the proprietary funds.
Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized and reported in the financial
statements.
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 'A % real
estate excise taxes. Although a time lag occurs in payment of these taxes to the City, since the taxes are actually
collected by King County in December and receipted to the City within 10 days after the end of the year, they are
considered to be both measurable and available, and are, therefore, accrued as revenue at year end. The State of
Washington acts as the City's collection agency for the locally levied sales tax. The sales tax is distributed monthly and
remitted to the City in the following month. It is both measurable and available and is therefore accrued as revenue at
year end.
Grant Revenues - Under Section G60.109 of the 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.
City of Federal Way / 21
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 Budaeted an an Annual Basis:
General Fund
Debt Service Fund
Special Revenue Funds: Enterprise Fund. -
Street Fund Retreat Center
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
Strategic Reserve 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.
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 Management Services Director.
22 / City of Federal Way
• 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. During 1993, the budget was amended one
time. The adjusted budget is detailed in Note 3.
The budget amounts shown in the financial statements are the final authorized amounts as revised during the year. The
non -annually budgeted special revenue funds are not included in the Combined Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget to Actual comparison, since they are not operating budgets and are for
management purposes only. These non -annually budgeted funds are Special Contracts/Studies, Miscellaneous Grants,
Community Development Block Grant, Donations and Impact Fee funds. During 1992, the Strategic Reserve Fund was
classified as a non -annually budgeted fund. This was reclassified during 1993 to an operating fund and is included in
the budget to actual comparison.
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 lapse at year end, are cancelled and must be re-established in the
following year upon approval of the City Council through a budget adjustment ordinance. Therefore, these amounts
have not been recorded as current year expenditures unless considered to be susceptible to accrual at the end of the year.
The total encumbrances at year-end for the City were $3,033,098.
Assets, Liabilities and Equities
Cash and Cash Eauiva€ents
It is the City's policy to invest all cash not immediately required for disbursement. At December 31, 1993, the State
Treasurer was holding $18,477,875 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) 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. Property
taxes receivable are included in taxes receivable.
Due From Other Governments receivable reflects measurable and available intergovernmental grants, entitlements, or
State shared revenues (taxes/charges levied and collected by an intermediary collecting government and distributed on
some basis); loans; and charges for services rendered by the City for another government unit. A separate schedule of
Due From Other Governments 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 authorized by the City Manager. 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 or Enterprise Funds.
Fixed Assets
The accounting and reporting treatment of fixed assets is determined by the measurement focus used by the fund which
acquires them. Fixed assets purchased or constructed by a governmental fund are recorded as expenditures in that fund
at the time related purchases are made; however, the associated fixed asset is recorded in the General Fixed Assets
Account Group. All purchased fixed assets are valued at cost. Donated fixed assets are valued at their estimated fair
market value on the date received.
The City does not capitalize "infrastructure" assets such as roads, bridges, curbs and gutters, streets and sidewalks, and
lighting systems.
Costs of normal maintenance and repair for general fixed assets are also not capitalized. However, any improvement
that increases an asset's value, or materially extends its life or potential uses is added to that asset's capitalized cost.
24 / City of Federal Way
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. Depreciation is charged commencing
in the year after acquisition.
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
20
Comoensated Absences Pavable
The City records a liability for all outstanding vacation pay and accrued compensatory time. 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.
A non-exempt employee may request compensatory time off in lieu of overtime payment. Compensatory time is accrued
at a rate of one and one-half hours for each hour of overtime worked, to a maximum of eighty hours.
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 1993, City employees were not represented by bargaining units and therefore no exceptions to the above policies
exist.
City of Federal Way / 25
Lana -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 are 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, housing rehabilitation loans and CRT grant. See Note
5 for further details.
Fund Eauitv-Reserves and ❑esianations
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. Except for the Enterprise
Fund, operating transfers are accounted for as "other financing sources and uses" 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 1993 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.
26 / City of Federal Way
Total Columns on Combined Statements - Overview
Total columns on the general purpose financial statements are provided to facilitate financial analysis. This data,
however, is captioned "Memorandum Only" to indicate that it does not present financial position, results or operations
or reporting of cash flows for the governmental unit as a whole in accordance with generally accepted accounting
principles. Data contained in these columns is not comparable to a consolidation, and interfund eliminations have not
been made in aggregating reported values.
NOTE 2:
Stewardship, Compliance and Accountability
Legal Budgetary Compliance
There have been no material violations of finance -related legal or contractual provisions, and there have been no
expenditures exceeding legal appropriations in any of the funds of the City. The Enterprise Fund has a negative retained
earnings at December 31, 1993 (see Note 16).
NOTE 3:
Supplemental Appropriations
Operating Budget Funds
Appropriations established during 1993 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.
FUND
ORIGINAL
BUDGET
1993
SUPPLEMENTAL
APPROPRIATIONS
FINAL
BUDGET
General Fund
$ 19,661,310
$ 1,969,538
$21,630,848
Special Revenue Funds:
Street Fund
3,557,482
(13,085)
3,544,397
Arterial Street Fund
3,922,403
(1,847,800)
2,074,603
1st %% Real Estate Excise Tax Fund
816,865
(86,865)
730,000
2nd '/. % Real Estate Excise Tax Fund
791,762
(91,762)
700,000
Solid Waste/Recycling
330,699
(4,498)
326,201
Paths and Trails Reserve Fund
28,132
---
28,132
Surface Water Management Fund
4,171,805
(114,059)
4,057,746
Strategic Reserve
---
---
---
Subtotal Special Revenue Funds
13,619,148
(2,158,069)
11,461,079
Debt Service Fund
2,024,058
11,460,903
13,484,961
Total
$35,304,516
$11,272,372
$46,576,888
Funds Budgeted on a Project -Length Basis
During 1993, the City Council adopted appropriations for some special revenue funds and the Capital Project funds
budgeted on a "project -length" basis. As explained in Note 1, appropriations for these funds are continuing in nature
and do not lapse at the end of the year. The special revenue funds budgeted on a "project length" basis are Special
Contracts/Studies, Grants -Miscellaneous Governmental, Community Development Block Grant, Donations, and Impact
City of Federal Way / 27
Fee. These funds are therefore not included in the Combined Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget to Actual.
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 1993 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, 1993, the carrying amount of the City's fully insured temporary investments with the State Pool was
$18,447,875. The City's checking account bank balance was $55,450 (outstanding checks were $339,046 at December
31). 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, 1993, the City's total deposits and investments consisted of the following:
Key Bank, Checking Account per Books
$ (284,145)
Key Bank, Housing Rehabilitation Revolving Loan Account
549
Petty Cash/Change Fund/Advance Travel
7,920
Cash Equivalents with State Treasurer's Investment Pool
18,477,875
Cash With Escrow Agent
178,989
Assets with FWRS Plan Administrator
1,445,239
Assets in ICMA Deferred Compensation Plan
430,178
Total Cash and Investments $20,256,605
Investments
Categorization of the City's investments is applicable only to investments held for the City's Federal Way Retirement
System Plan, which reflects a replacement of Federal Social Security (see Note 8).
The City's investments are categorized to give an indication of the risk assumed at year-end. The following summary
shows the City's investments at year-end categorized by risk. Category 1 includes investments that are either insured,
registered or held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered
investments which are held by the counterparty's trust department or agent in the City's name. Category 3 includes
uninsured and unregistered investments for which the securities are held by the counterparty, or its trust department or
agent, but not in the City's name.
28 / City of Federal Way
Risk
Category
Carrying
Market
Amount
Value
1
2
3
U.S. Government
Securities -Treasury Notes $ -
$ 336,151
$ --• $ 336,151
$ 334,657
Equity Securities -
828,674
828,674
903,760
Total S --
$1,164,825
$ --- $ 1,164,825
$ 1,238,417
Money Market Funds
280,414
280,414
Total Federal Way
Retirement System Assets
$ 1,445,239
$ 1,518,831
Investment in State
Treasurer's Investment
Pool
18,477,875
18,477,875
Investment in Deferred
Compensation
430,178
430,178
Total Investments
$ 20,353,292
$20,426,884
NOTE 5:
Receivables and Due From Other Governments
Property Taxes
The King County Treasurer is responsible for collecting all property taxes levied in the County by taxing districts.
Amounts collected by the County on the City's behalf are remitted daily.
As described in Note 1, taxes are levied and become an enforceable lien against properties as of January 1. Annual tax
billings may be paid in two equal installments, due April 30 and October 31. At December 31, 1993, the total balance
of property -taxes -receivable-rec$rded-by-the City was $368,40-S —Of this, $270,904 is recorded as a deferred -revenue, =
since it was not collected within the first 60 days of 1994. The property tax levy calendar in 1993 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. 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.
City of Federal Way / 29
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 1993 was $1.484 per $1,000 on an assessed valuation of $3,623,964,550 for a total regular
levy of $5,374,597.
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, 1993 was $121,919. This
amount is not considered available and is therefore offset by deferred revenue.
Due From Other Governments
At December 31, 1993 the City recorded the following receivables from other governmental units:
Description
Amount
General Fund:
Washington State -Taxes & Fees
$ 1,379,448
Special Revenue Funds:
Washington State -Taxes & Fees
182,869
King County -Real Estate Excise Tax
202,396
King County -Surface Water Mgmt Fees
21,577
US Dept of HUD-CDBG Grant
116,283
Washington State-CPG Grant
32,542
Federal-FEMA Grant
88,940
Washington State-FEMA Grant
14,242
Subtotal Special Revenue Funds
658,849
Capital Projects Fund.,
Washington State-IAC Grant
23,973
Washington State-ISTEA Grant
32,210
Washington State-HES Grant
1,751
Washington State-TIB Grant
3,822
Washington State-BPA Grant
3,978
Metro Transit
60,000
Federal Way Water & Sewer District
128,568
Subtotal Capital Projects Fund
254,302
Enterprise Fund. -
King County -Conservation Futures
340,000
Total
$ 2,632,599
301 City of Federal Way
NOTE 6:
Due To Other Governments
At December 31, 1993, $371,575 was due to other governmental units as follows:
Description Amount
General Fund:
King County -Election Costs $ 11,429
Capital Projects Fund:
Washington State-TIB Grant 181,924
Agency Funds:
Washington State -Taxes and Fees 158,533
Fire Permits 19,143
King County -Animal License 546
Subtotal Agency Funds 178,222
Total
General Policies
NOTE 7:
Fixed Assets and Depreciation
371,575
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:
City of Federal Way / 31
BALANCE
BALANCE
JANUARY 1, 1993
ADDITIONS
DELETIONS DECEMBER 31, 1993
Land
$ 22,200,861 $
3,459,559
$ --- $
25,660,420
Other Improvements
453,464
467,586
921,050
Machinery & Equipment
---
129,201
129,201
Buildings
334,000
1,390,241
---
1,724,241
Construction in progress
---
1,626,810
1,626,810
Assets Under Capital Lease -Land
1,450,000
---
---
1,450,000
Total
$ 24,438,325 $
7,073,397
$ 129,201 $
31,382,521
Proprietary Fund Fixed Assets
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, 1993:
Internal Service Funds
Subtotal
Total
Enterprise
DP/ Support
Fleet &
Buildings & Internal Svcs
Proprietary
Fund
Telecom Services
Equipment
Furnishings Funds
Funds
Land $ 2,109,640
$ --- $
$ --
$ $ --
$ 2,109,640
DP(Telecom
Equipment ---
909,715
909,715
909,715
Heavy Equipment -
-
426,116
--- 426,116
426,116
Transp Equipmt ---
423,359
423,359
423,359
Bids & Furnishgs 635,350
...
2,861,271 2,861,271
3,496,621
Other Equipment ---
--- 39,617
46,516
86,133
86,133
Total Fixed Assets $ 2,744,990
$909,715 $ 39,617
$ 895,991
$2,861,271 $ 4,706,594
$ 7,451,584
Less Accumulated
Depreciation ---
(224,367) (10,576)
(179,862)
(241,912) (656,717)
(656,717)
Net Fixed Assets $ 2,744,990
$ 685,348 $ 29,041
$ 716,129
$ 2,619,359 $ 4,049,877
$ 6,794,867
Construction Work in Progress
Included in the General Fixed Asset account group is Construction Work in Progress which represents projects that were
in process at year end. The City had two projects which were in progress at the end of 1993 and are anticipated to be
completed during 1994. The projects were:
Saghalie Park $1,574,337
BPA Trail Development 52,473
J1.626,810
The Proprietary Funds did not have any construction work in progress at the end of 1993.
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. There were no LEOFF employees for the City as of December 31, 1993.
32 / City of Federal Way
SUMMARY OF SYSTEMS' ACTUARIAL DATA
(In Millions of Dollars)
As of December 31, 1992
VOLUNTEER
PERS
LEOFF
FIREFIGHTERS
Total Pension Benefit Obligation
$9,758
$4,281
$ 50
Less Net Assets Available for Benefits
8,344
3,141
56
Unfunded (Surplus) Actuarial
Present Value of Accumulated
Plan Benefits
$1,414
$1,140
$(6)
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, 1993 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 70 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 II. 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.
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 II 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 1993 Washington Legislative session, ESSB 5888 was passed. The bill opened the window for early
retirement in PERS I and will increase the contribution rate by .01 %. The bill also extended the 1991 temporary cost
of living adjustment (COLA) through the 1993-95 biennium (the cost of which is included in this year's required
contribution rate). In addition, a temporary COLA of $3.00 per month per year of service will be payable during the
current biennium. However, because of its July 1, 1993 effective date, and its temporary nature, it is not included in
this year's required contribution rate. The bill expanded portability provisions to include three first class cities and will
increase the contribution rate by .03 % in PERS. The cost of the provision is not included in this year's contribution
rate. The bill also changed the cycle for reviewing and adjusting the employer and state contribution rates from six
years to two.
City of Federal Way / 33
The City's covered payroll for year ending December 31, 1993 was $4,615,369. The City's total current -year payroll
for all employees was $4,968,144.
Each biennium the legislature establishes Plan I employer contribution rates and Plan H 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 II 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, 1993 were:
PERS Plan I
PERS Plan 11
REQUIRED
ACTUAL
REQUIRED
ACTUAL
Employer 7.41 %
7.41 %
7.41 %
7.41 %
Employee 6.00%
6.00%
5.20%
5.00%
Total 13.41%
13.41%
12.61%
12.41%
The City's actuarially -determined contribution requirement and actual contribution for the year ending December 31,
1993 were:
PERS Plan I
PERS Plan II
REQUIRED
ACTUAL
REQUIRED
ACTUAL
Employer
$33,291
$33,820
$308,708
$313,649
Employee
26,956
26,956
216,637
204,152
Total
$60,247
$60,776
$525,345
$517,801
The City's actuarially determined employer contribution requirement
represents approximately .0941 percent of the total
for all employers covered by PERS.
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
As of December 31, 1993, 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. 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 H. 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:
34 / City of Federal Way
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 55 with 5 years of service.
Retirement benefits prior to age 55 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.
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.
During the 1993 legislative session ESHB 1294 was passed. This bill increased LEOFF II retirement benefits in the
following ways: 1) the normal retirement age was lowered from 58 to 55, 2) portability provisions were expanded to
include LEOFF, 3) members terminating after 10 years of service may withdraw 150% of their savings fund, and 4)
terminated vested members with 20 years of service will have their benefit increased 3 % per year. This bill will
increase contribution rates 1.50 %, .90 %, and .60 % for employees, employers, and the state, respectively.
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 1993, there were a total of 160 individuals covered by this system. As of the end of the year, 111 remained
as active employees of the City and none were drawing retirement benefits. The 49 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 1993 was $4,335,340 and total City payroll was $4,968,144. Actual City contributions for the year
were $225, 849. Actual employee contributions were $269,284. All contributions were invested in instruments arranged
City of Federal Way / 35
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 $1,445,239 and were comprised of U.S. Treasury Notes ($336,151), stock
($828,674), and money market securities ($280,414).
The consulting actuary firm of Howard Johnson & Co. has been contracted to provide record -keeping, administrative
and consulting services related to the Plan.
Actuarial determinations are not required because accidental death and dismemberment insurance, long-term disability,
survivor income insurance and the lump sum death benefit are provided by a group insurance policy with Standard
Insurance Company; and benefits paid to participants upon retirement are limited to (a) a nonforfeitable, nontransferable
annuity contract purchased by the plan's trustee, (b) retirement benefits paid from the employee's account to which no
contributions by the City or the participant can be added after retirement, or (c) a single lump -sum payment equal to
the accumulated balance in the employee's account as of his retirement date.
NOTE 9:
Other Employee Benefits
Deferred Compensation
The City offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457.
This multi jurisdictional plan administered by the ICMA Retirement Corporation permits employees to defer a portion
of their salary until future years. The deferred compensation is not available to employees until termination, retirement,
or unforeseeable emergency; or upon death, to their beneficiaries.
Compensation deferred under the plan and all income attributable to the plan are solely the property of the City. The
City's rights to this property are subject only to the claims of the City's general creditors until paid to the employee or
other beneficiary and are not restricted to the benefit provisions under the plan.
It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty
of due care that would be required of an ordinary prudent investor. The City believes that it is highly unlikely that it
will use the assets to satisfy the claims of general creditors in the future.
At December 31, 1993, $430,178 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 1993 the City purchased commercial insurance policies from commercial insurers. A summary of coverages
in force during 1993 is presented below:
36 / City of Federal Way
NAME OF COMPANY
COVERAGE
LIABILITY LIMITS
ITT Hartford
Public Officials
$2,000,000/claim
Liability Coverage
$2,000,000 aggregate
$5,000 deductible
General Liability*
$2,000,000/claim
$5,000 deductible
Municipal Property Coverage
Buildings-$4,055,000
Extra expense-$460,000
Deductible-$2,500
Misc property-$70,276
Valuable papers-$305,000
Deductible on each-$250
Fine Arts-$25,000
Deductible-$500
Media/Data-$37,500
Computers-$360, 000
Auto Liability
$2,000,000/claim
Collision deductible-$1,000
Comp deductible-$250
Excess Policy
Per claim/Aggregate-$5,000,000
Boiler & Machinery
$350,000/accident
$1,000-$2,500 deductible
Employer Liability Workers'
$1,000,000
Compensation Stop Gap
Fidelity & Deposit
Public Official Bond
Company of Maryland
City Manager
$250,000
Finance Director
$250,000
City Clerk
$ 50,000
Chief of Police
$ 50,000
Public Employee Dishonesty
$250,000 limit
Coverage (Council included)
$ 2,500 deductible
* Law Enforcement $2,000,000/Occurrence, $2,000,000/Aggregate, $5,000 Deductible is an endorsement of General Liability Coverage.
The City uses the Risk Management Internal Service Fund to account for its risk financing activities.
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.
On February 1, 1994, the City elected to self -insure the dental plan. Healthcare Management Administrators, Inc. was
selected as the third party administrator for the plan. The City has established a separate Internal Service Fund to
account for this self-insurance plan.
City of Federal Way / 37
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, 1993 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 1993 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 expenditures by the City's Debt Service Fund.
Debt Issued During 1993
1993 Limited Tax G.O. Bond
On June 14, 1993 the City issued $2,390,000 in limited tax general obligation bonds. These bonds were issued to
finance part of the cost of improvements to Saghalie Park. In 1991, the City purchased 16.4 acres of land to be used
for park and other City purposes. The Federal Way School District #210 owns 20 acres of land contiguous to the City
property. The City and the School District are cooperating to jointly develop their properties for community recreation
and student activities. The park will include sportsfields, basketball and tennis courts, walking trails and bike paths.
The bonds will mature serially beginning December 1, 1994 through 2008. The bonds carry a face interest rate ranging
from 2.7 % to 5.7 %, with a net interest cost of 5.371 %. This issue carried an "Al" bond rating with Moody's Investors
Service, an important milestone in the City's short history of fiscal management.
Advance Refunding
On May 13, 1993 the City issued $12,105,000 in General Obligation Bonds with an average interest rate of 5.79 % to
advance refund $11,125,000 of outstanding 1991 General Obligation bonds with an average interest rate of 6.83 %. The
net proceeds of $11,867,177 (after payment of $237,823 in underwriting fees, bond discount and other issuance costs)
were used to purchase U.S. Government securities. Those securities were deposited in an irrevocable trust with an
escrow agent to provide for all future debt service payments on the $11,125,000 outstanding 1991 General Obligation
bonds. As a result, the $11,125,000 in 1991 General Obligation Bonds are considered to be defeased and the liability
for those bonds has been removed from the general long-term debt account group. The following is a reconciliation of
the bond proceeds and amount remitted to refunding trustee:
38 / City of Federal Way
Par Value of Bonds
Original Issue Discount
12,105,000
(104,668)
Net Proceeds from Bond Issue 12,000,332
Less Underwriter & Other Fees (133, 155)
Amount Remitted to Refunding Trustee $ 11,867,177
The 1991 General Obligation Bonds originally scheduled to mature on December 1, 1995 through December 1, 2001
were not refunded ($1,375,000) and the City will continue to make payments of principal and interest on those bonds
through December 1, 2001. The 1991 General Obligation Bonds originally scheduled to mature on December 1, 2002
through December 1, 2021 were refunded, therefore the City will no longer be responsible for the payment of principal
and interest on those bonds ($11,125,000).
The Refunding Bond proceeds are deposited with Seattle First National Bank, which is serving as the refunding escrow
agent. As escrow agent, Seafirst will provide for annual interest payments on the Refunded Bonds through and including
December 1, 2021, at which time the bonds will be called and redeemed.
The Refunded Bonds were sold at rates of interest which averaged 7.933 %, and yielded from 5.60 % in 1995 to 6.85 %
in 2021. The Refunding Bonds were sold at rates of interest which averaged 5.787 %, and yielded from 2.70 % in 1994
through 5.98 % in 2021.
The City advance refunded the 1991 General Obligation Bonds to reduce its total debt service payments over the next
28 years by $703,247 and to obtain an economic gain (difference between the present values of the debt service payments
on the old and new debt) of $355,956.
The following is a schedule of outstanding general obligation debt as of December 31, 1993:
OUTSTANDING GENERAL OBLIGATION DEBT
DECEMBER 31, 1993
(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
General Oble0ation Bonds:
1990 Limited
01-Nov-90
01-Dec-95
5.90.6.30 S
1,710 $
1,090 $ --- $ 340 $
750
1991 Limited
01-Feb-91
01-Dec-21
6.00-6.85
12,500
12,500 --- 11,125
1,375
1993 Limited
14-Jun-93
01-Dec-08
2.70-5.70
2,390
-- 2,390 ---
2,390
1993 Refunding
13-May 93
01-Dec 21
2.70-5.85
12,105
... 12,105 ---
12,105
Subtotal GO Bonds
28,705
13,590 14.495 11,465
16,620
Ce,rificates of Participation:
1991 Issue 25-Sep-91 01-Dec-06 4.75-6.80
1,450
1.405
70 1,335
1992 Issue - Series A 26-Aug-92 01-Dec-02 3.00-5.45
2,150
2,150
10 2,140
1992 Issue - Series B 26-Aug-92 01-Dec-02 4.25
180
180
180 --•
Subtotal CDP's
3,780
3,735
260 3,475
Grand Total All L-T Debt $ 32,485 $ 17,325 $ 14,495 E 11,725 $ 20,095
City of Federal Way / 39
PRORATED DEBT SERVICE SCHEDULE
DECEMBER 31, 1993
(In Thousands of Dollars)
Amount Originally Beginning
Amount
Ending
Description
Issued Outstanding Debt Amount Issued
Redeemed Outstanding Debt
General Long -Term Debt Group:
1990 Limited GO Bonds
$ 1,710 $ 1,090 $ $
340 $
750
1991 Limited GO Bonds
12,500 12,500
11,125
1,375
1991 COP Issue
1,450 1,405
70
1,335
1993 Limited GO Bonds
2,390 2,390
•--
2,390
1993 Refunding GO Bonds
12,105 12,105
---
12,105
Total General L-T Debt
30,155 14,995 14,495
11,535
17,955
Internal Service Funds:
1992 COP -Series A
2,150 2,150
10
2,140
1992 COP -Series B
180 180 -
180
Total Internal Service
2,330 2,330 ...
190
2,140
Total All L-T Debt
$ 32,485 $ 17,325 $ 14,495 $
11,725 $
20,095
The following statement of long-term debt provides the City's outstanding debt for 1993 and 1992.
SCHEDULE OF GENERAL LONG-TERM DEBT
December 31, 1993
With Comparative Totals for December 31, 1992
Amounts Available and Amounts to be Provided for the
Payment of General Long -Term Debt
Amount to be Provided for the Retirement of:
1993
1992
G.O. Bonds
$14,973,532
$12,155,215
Compensated Absences
162,370
128,318
Certificates of Participation
1,335,000
1,405,000
Amount Available in Debt Service Funds
1,546,468
1,434,785
Total Amount Available and to be Provided
$18,1 17, 370
$15.123,318
General Long -Term Debt Payable
General Obligation Bonds
$16,620,000
$13,590,000
Compensated Absences - Vacation
162,370
128,318
Certificates of Participation
1,335,000
1,405,000
Total General Long -Term Debt
$18.117,370
$15.123,318
40 / City of Federal Way
SCHEDULE OF CHANGES IN LONG-TERM DEBT
Period Ended December 31, 1993
fin Thousands of Dollars)
General
Obligation
Certificates of
Accrued Vacation, Claims &
Bonds
Participation
Judgments
Total
General
General
General
Long -
Long -Term
Long- Internal
term
Enter-
Internal
Debt
term Debt Service
Debt
prise
Service
$ 13,590.0
$1,405.0 $2,330.0
$ 128.3
$ --..
f $ 4.5
Outstanding at December 31, 1992
$ 17,457.8
Additions:
New Debt Issued or Acquired:
GO Bonds
2,390.0
---- ----
----
----
----
2,390.0
GO Refunding Bonds
12,105.0
----
---
----
12,105.0
Increase in Accrued Vacation
----
---- -
34.1
.3
1.2
35.6
$ 14,495.0
$ $ ----
$ 34.1
$ .3
$ 1.2
$ 14,530.6
Total Additions
Reductions:
G.O. Bonds
(340.0)
---
--
----
(340.0)
Refunded Bonds
(11,125.0)
—
--
----
—
(11,125.0)
Capitalized Lease Obligations
— -
(70.0) 090.0)
--
- -
-
(260.0)
$01,465.0)
(70.0) $ 090.0)
$ ----
$ ---
$ --
$01,725.0)
Total Reductions
$ 16,620.0
$1,335.0 $ 2,140.0
$ 162.4
$ .3
$ 5.7
$ 20,263.4
Outstanding at December 31, 1993
Presented below is a summary of the City's debt service requirements to maturity by year for all outstanding debt other
than compensated absences:
ANNUAL DEBT SERVICE PAYMENTS TO MATURITY
fin Thousands of Dollars)
GENERAL OBLIGATION
CERTIFICATES OF
BONDED DEBT
PARTICIPATION
TOTAL DEBT
1994
$ 1,477.9
$ 460.4
$ 1,938.3
1995
1,626.2
454.5
2,080.7
1996
1,237.7
457.1
1,694.8
1997
1,230.7
458.4
1,689.1
1998
1,232.0
458.1
1,690.1
Thereafter
25,602.6
2,429.9
26,032.5
TOTALS
$ 32,407.1
S 4,718.4
$ 37,125.5
City of Federal Way / 41
SCHEDULE OF ANNUAL DEBT SERVICE REQUIREMENTS TO MATURITY
GENERAL OBLIGATION BONDS
Year
Principal
Interest
Total
1994
$ 790,000
$ 1,148,290.00
$ 1,938,290.00
1995
970,000
1,110,672.50
2,080,672.50
1996
635,000
1,059,872.50
1,694,872.50
1997
660,000
1,029,090.00
1,689,090.00
1998
700,000
990,065.00
1,690,065.00
1999
735,000
947,735.00
1,682,735.00
2000
775,000
902,047.50
1,677,047.50
2001
820,000
852,717.50
1,672,717.50
2002
865,000
806,030.00
1,671,030.00
2003
615,000
759,432.50
1,374,432.50
2004
660,000
725,832.50
1,385,832.50
2005
700,000
689,097.50
1,389,097.50
2006
735,000
649,475.00
1,384,475.00
2007
630,000
607,495.00
1,237,495.00
2008
665,000
572,110.00
1,237,110.00
2009
475,000
534,427.50
1,009,427.50
2010
510,000
507,352.50
1,017,352.50
2011
540,000
478,282.50
1,018,282.50
2012
570,000
447,502.50
1,017,502.50
2013
610,000
413,872.50
1,023,872.50
2014
650,000
377,882.50
1,027,882.50
2015
695,000
339,532.50
1,034,532.50
2016
740,000
298,527.50
1,038,527.50
2017
785,000
254,867.50
1,039,867.50
2018
835,000
208,552.50
1,043,552.50
2019
890,000
159,705.00
1,049,705.00
2020
945,000
107,640.00
1,052,640.00
2021
895,000
52,357.50
947,357.50
Total
$ 20,095,000
$ 17,030,465.00
$ 37,125,465.00
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 'A % of the valuation within the City without a vote of the people. In addition, debt up to 3A % of the
valuation may be approved by the Council for capital leases. No combination of limited or unlimited tax debt may
exceed Th 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, 1993 are:
General Government (no vote required)
General Government Capital Leases (no vote required)
General Government (3/5 majority vote required)
Parks and Open Space (3/5 majority vote required)
Utilities (3/5 majority vote required)
$12,095,257
$24,212,742
$36,303,139
$90,757,848
$90,757, 848
42 / City of Federal Way
Compensated Absences
As explained in Note 1, the City's liability for accrued employee vacation balances for governmental fund employees
is recorded in the General Long-term Debt Account Group. Balances for proprietary funds are recorded as liabilities
in the specific fund expected to incur the related future expense. The total liability by fund type for accrued employee
vacation as of December 31, 1993, is provided below:
Governmental Funds (recorded in the General
Long-term Debt Account Group) $162,370
Enterprise Fund 320
Internal Service Funds 5,721
Total Compensated Absences $168,41 1
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 1993, the City recorded all of the above with the exception of
reimbursements.
Quasi -external Transactions
Quasi -external transactions reflect the existence of a more -or -less normal buyer/seller relationship between City funds.
During 1993, these involved transactions between internal service funds and other funds for the purpose of recovering
operating and maintenance costs and to build replacement reserves.
Interfund Receivables/Payables
The following schedule presents interfund loans and due to/due-from other funds -outstanding at December 31, 1993:
Interfund Loans
General Fund
Special Revenue Funds:
Grants - Miscellaneous Governmental
Community Development Block Grant
Total Interfund Loans
Interfund Loans Interfund Loans
Receivable Payable
$ 75,000 $ ---
--- 50,000
25,000
$ 75,000
75,000
City of Federal Way / 43
Due To/Due From Other Funds
General Fund
Special Revenue Funds
Street
Arterial Street
Solid Waste/Recycling
Special Contracts/Studies
Grants-Misc. Governmental
Grants-CDBG
Surface Water Management
Impact Fee
Sub -total Special Revenue Funds
Debt Service
Capital Project Funds
Surface Water Management
Traffic
Streets
Sub -total Capital Project Funds
Enterprise Fund
Retreat Center
Internal Service Funds
Risk Management
Data Processing
Support Services
Fleet and Equipment
Buildings and Furnishings
Sub -total Internal Service Funds
Due From
Due To
Other Funds
Other Funds
$ 87,289
$ 166,465
52,549
47,303
76
---
864
1,619
7,000
---
22,858
12,220
---
7,000
6,783
130,833
12,297
--
102,427
198,975
2,761
23,138 ---
--- 23,492
--- 290
23,138 23,782
18,506 ---
13,497
112,951
93,530
15,852
2,275
3,021
11,523
149,624
---
281,448
120,825
Total Due To/From Other Funds $ 512,808 $ 512,808
Total Interfund Receivables/Payables $ 587,808 $ 587,808
Residual Equity Transfers
Residual equity transfers are nonrecurring or non -routine transfers of equity between funds. They do not represent
expenditures of the transferring fund but a change in a fund balance. In governmental funds, they are reported as an
increase or decrease in the beginning fund balance. For a proprietary fund, they are presented as an increase or decrease
in the fund's contributed capital or retained earnings. The following residual equity transfers were recorded in 1993:
Fund Category
Transfers In
Transfers Out
General Fund
$404,463
$ 64,245
Special Revenue Funds
-
46,571
Capital Project Fund
---
404,463
Internal Service Funds
$1 1 1.433
617
Total City Funds
$515,896
$515,896
Of the above amounts, $111,433 was transferred from either governmental funds ($110,816) or internal service funds
($617) to other internal service funds, which record related transactions as additions to contributed capital. The
remaining $404,463 was a transfer to close the 1991 Capital Project Fund to the General Fund.
44 / City of Federal Way
Operating Transfers
Operating transfers are legally authorized contributions of resources from one fund to another to subsidize designated
activities or expenditures. Except for the Enterprise Fund, operating transfers are accounted for as "Other Financing
Sources and Uses". The following operating transfers were recorded during 1993:
Fund Category
Transfers In
Transfers Out
General Fund
$ --
$1,734,408
Special Revenue Funds
1,569,012
6,484,439
Debt Service Funds
1,617,000
--
Capital Project Funds
4,991,278
Enterprise Fund
41,557
--
Total City Funds
$ 9,218,847
S 8.218,847
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.
Contributed capital is created when a residual equity transfer is received by a proprietary fund, when a general fixed
asset is "transferred" to a proprietary fund or when a grant is received that is externally restricted to capital acquisition
or construction. Contributions restricted to capital acquisition and construction and fixed assets received from developers
and customers, as well as amounts of tap fees in excess of related costs, also would be reported in this category.
During 1993 various transactions impacted the contributed capital of proprietary funds. These transactions have been
identified in the following presentation:
Beginning
Contributed Capital
Additions:
Residual Equity
Transfers
Land/Equipment/
Furniture Donations
Total
Additions:
Deductions:
Depreciation
Ending
Contributed Capital
Internal Service Funds
Data
Subtotal
Processing
Buildings Internal Total
Enterprise Telecomm-
Support Fleet & and Service Proprietary
Fund unications
Services Equipment Furnishings Funds Funds
$ --- $ 742,110 $ 31,047 $ 671,709 $ 438,976 $ 1,883,842 $ 1,883,842
2,699,160
53,091 4,110 35,498
12,529
— 1 15, 671
18,734 111,433 111,433
--- 128,200 2,827,360
2,699,160 65,620 4,110 151,169 18,734 239,633 2,938,793
--- (122,382) (6,116) (106,749) (51,851) (287,098) (287,098)
$ 2,699,160 $ 685,348 $ 29,041 $ 716,129 $ 405,859 $ 1,836,377 $ 4,535,537
City of Federal Way / 45
The addition of contributed capital in the Enterprise Fund consists of the following capital grants:
Open Space
$1,956,185
DCD Grant
402,975
Conservation Future
340.000
TOTAL
$2,699,160
NOTE 15:
Contractual Obligations, Contingencies and Litigation
As of December 31, 1993, 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.
At December 31, 1993, approximately $1,379,000 was unpaid on the Saghalie Park project and $348,500 on the Panther
Lake Surface Water Management project. The amounts will be paid to the Contractor during 1994 from the appropriate
Capital Project Fund.
NOTE 16:
Fund Additions and Deficit Retained Earnings
During 1993, the City added one Special Revenue Fund and four new Capital Project Funds. The Donations Fund, a
special revenue fund type, was added to account for donations received for designated special puposes. Identified Capital
Project Funds were established to segregate and account for the City's Capital Improvement Program for Parks, Surface
Water Management, Traffic and Street Projects.
The City also added an Enterprise Fund to account for the acquisition and operations of the Retreat Center Facility which
was purchased during 1993 with King County Open Space and Conservation Futures funding. During this initial year,
the operations were not entirely funded by fees, therefore requiring a subsidy from the General Fund. At year-end, the
Retreat Center Fund had an $8,084 deficit retained earnings balance which will require an additional transfer from the
General Fund during 1994.
NOTE 17:
Change in Accounting Principle
Pursuant to the Codification of Govemmental Accounting and Financial Reporting Standards, section G60.116, the City
has elected to close depreciation recognized on assets acquired for capital acquisitions in the Internal Service Funds, to
the appropriate contributed capital accounts. This change in accounting principle has resulted in a restatement to both
the retained earnings and contributed capital accounts on the financial statements. In total, fund equity remains
unchanged. The following table reconciles the prior period changes.
461 City of Federal Way
Contributed Capital
Retained Earnings
Fund Equity
Beginning Balance 1/1192
$ 1,326,890
S 127,340 $
1,454,230
Add (Deduct) 1991 Depreciation
(79,763)
79,763
---
Beginning Balance 1/1/92 - Restated
1,247,127
207,103
1,454,230
Net Income (Loss)
---
10,691
10,691
Increases to Contributed Capital
810,071
---
810,071
Add (Deduct) Amortization
(173,356)
173,356
---
Less Residual Equity Transfer Out
---
(11,388)
(11,388)
Ending Balance 12/31/92 - Restated
S 1,883,842
$ 379,762 $
2,263,604
NOTE 18:
Short -Term Debt
1993 Limited Tax G.O. Bond Anticipation Notes
On July 15, 1993 the City issued $955,000 in limited tax general obligation bond anticipation notes to finance the
acquisition of approximately 12.02 acres of property and appurtenances to be used for business retreats, meetings and
recreational classes. These notes are being issued in anticipation of grants, which will be used to retire the notes. The
notes will mature on July 1, 1994 and carry a face interest rate of 2.85 %, with a net interest cost of $3.28 % if
outstanding until maturity. The notes are subject to prepayment prior to their stated maturity in whole or in part on
December 1, 1993 and on the first day of any month thereafter at par plus accrued interest to the date of redemption.
This issue was non -rated.
The Bond Anticipation Note proceeds are accounted for in the Retreat Center Enterprise Fund as a short term liability.
These notes will be entirely retired within one year.
NOTE 19:
Cash Flow Reconciliation
Enterprise Fund
At December 31, 1993, the remaining $340,000 in contributed capital from open space funding was appropriately
accrued and recorded as due from other governments. Since this was related to capital rather than operations, the change
in due from other governments is not disclosed in the reconciliation of operating income to net cash provided by
operations.
Internal Service Funds
At December 31, 1993, the City's Internal Service Funds incurred costs for capital purchases, which were appropriately
accrued at year-end. The funding source for these costs had not been transferred into the Internal Service Fund at year-
end, resulting in an accrual to contributed capital. Accordingly, a portion of the due to other funds, due from other
funds, and residual equity transfers out are related to contributed capital rather than operations and did not impact cash
at December 31, 1993. This portion is not reported on the cash flow statement and the following provides the
reconciliation from the Balance Sheet and Statement of Revenues, Expenses and Changes in Fund Equity to the Statement
of Cash Flows:
City of Federal Way / 47
Data Support Fleet & Buildings &
Processing Services Equipment Furnishing Total
Changes in capital contributions:
Cash flow increases $
38,357 $
1,350 $
30,223 $
10,777 $ 80,707
Non -cash contributions
12,530
116,671
— 129,201
Due to/due from other funds
14,412
2,610
4,275
7,957 29,254
Residual equity transfers
321
150
--
-- 471
Total increases in contributed capital $
65,620 $
4,110 $
151,169 $
18,734 $ 239,633
CITY OF r
���
City of Federal Way / 49
GENERAL FUND
COMPARATIVE BALANCE SHEET
December 31, 1993 and 1992
1993
1992
ASSETS
Cash and cash equivalents
$
3,563,577
$
3,912,904
Receivables (net):
Taxes
368,405
394,906
Accounts and contracts
-
107
Due from other funds
87,289
-
Due from other governments
1,379,448
1,186,143
Interfund loans receivable
75,000
60,000
TOTAL ASSETS
$
5,473,719
$
5,554,060
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
$
1,605,038
$
1,675,950
Accounts/payroll payable
720
25,352
Due to other governments
11,429
4,000
Due to other funds
166,465
14,702
Deposits payable
4,706
4,706
Deferred revenues
270,904
344,597
TOTAL LIABILITIES
2,059,262
2,069,307
Fund balance:
Reserved for:
Interfund loans
75,000
60,000
Petty cash/change funds
2,920
1,720
Advance travel
5,000
5,000
Unreserved:
Undesignated
3,331,537
3,418,033
TOTAL FUND BALANCE
3,414,457
3,484,753
TOTAL LIABILITIES AND FUND BALANCE
$
5,473,719
$
5,554,060
50 / City of Federal Way
GENERAL FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 1993 and 1992
1993
1992
REVENUES:
Taxes $
14,008,648
$ 12,893,826
Licenses and permits
821,867
737,071
Intergovernmental
3,142,377
2,540,096
Service charges and fees
591,120
666,194
Fines and forfeitures
504,580
414,178
Miscellaneous:
Interest
194,757
203,761
Other
93,525
106,214
TOTAL REVENUES
19,356,874
17,561,340
EXPENDITURES:
Current:
General government
2,644,890
2,451,514
Security of persons and property
8,187,533
6,602,685
Physical environment
19,889
18,960
Economic environment
2,279,852
1,850,900
Health
1,144,579
1,064,820
Culture and recreation
2,636,491
2,377,847
Capital outlay
1,119,746
401,998
TOTAL EXPENDITURES
18,032,980
14,768,724
EXCESS OF REVENUES OVER EXPENDITURES
1,323,894
2,792,616
OTHER FINANCING SOURCES (USES):
Operating transfers out
(1,734,408)
(763,673)
TOTAL OTHER FINANCING SOURCES (USES)
(1,734,408)
_ 63,673
EXCESS OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES AND OTHER USES
(410,514)
2,028,943
FUND BALANCE AT BEGINNING OF YEAR
3,484,753
1,712,553
Residual equity transfers in
404,463
Residual equity transfers out
(64.245)
(256,743)
FUND BALANCE AT END OF YEAR $
3,414,457
$ 3,484,753
City of Federal Way / 51
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Years Ended December 31, 1993 and 1992
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
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 in
Residual equity transfers out
FUND BALANCE AT END OF YEAR
Varlance
Favorable
1992
Budget
Actual
(Unfavorable)
Actual
$ 13,673,112 $
14,008,648 $
335,536 $
12,893,826
664,850
821,867
157,017
737,071
2,936,411
3,142,377
205,966
2,540,096
568,443
591,120
22,677
666,194
512,870
504,580
(8,290)
414,178
201,370
194,757
(6,613)
203,761
58,442
93,525
35,083
106,214
18,615,498
19,356,874
741,376
17,561,340
3,543,951
2,644,890
899,061
2,451,514
8,218,724
8,187,533
31,191
6,602,685
19,889
19,889
-
18,960
2,528,716
2,279,852
248,864
1,850,900
1,112,673
1,144,579
(31,9W)
1,064,820
2,864,020
2,636,491
227,529
2,377,847
1,089,154
1,119,746
(30,592)
401,998
19,377,127
18,032,980
1,344,147
14,768,724
(761,629)
1,323,894
2,085,523
2,792,616
(2,149,852)
(1,734.408)
415,444
(763,673)
(2,149,852)
(1,734,408)
415,444
(763,673)
(2,911,481)
(410,514)
2,500,967
2,028,943
3,124,753
3,484,753
360,000
1,712,553
403,699
404,463
764
-
(103,870)
(64.245)
39,625
(256,743)
$ 513,101 $
3,414,457 $
2,901,356 $
3,484,753
52 / City of Federal Way
GENERALFUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 1993
GENERAL GOVERNMENT
LEGISLATIVE:
Personal services
Supplies
Other services and charges
Intergovermental services
Interfund services
TOTAL LEGISLATIVE
JUDICIAL:
Other services and charges
Intergovermental services
TOTAL JUDICIAL
EXECUTIVE:
Personal services
Supplies
Other services and charges
Interfund services
TOTAL EXECUTIVE
FINANCIAL, RECORDS, AND CENTRAL SERVICES:
Personal services
Supplies
Other services and charges
Intergovermental services
Interfund services
TOTAL FINANCIAL, RECORDS, AND
CENTRAL SERVICES
LEGAL:
Personal services
Supplies
Other services and charges
Intergovermental services
Interfund services
TOTAL LEGAL
PERSONNEL:
Personal services
Supplies
Other services and charges
Interfund services
TOTAL PERSONNEL
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
$ 71,512 $
68,886 $
2,626
1,800
1,007
793
88,165
80,732
7,433
70,500
69,636
864
70,593
65,938
4,655
302,570
286,199
16,371
7,250
8,484
(1,234)
498,931
262,979
235.952
506,181
271,463
234,718
158,504
161,885
(3,381)
2,500
4,317
(1,817)
55,242
46,935
8,307
47,277
44,119
3.158
263,523
257,256
6,267
518,164
499,923
18,241
11,735
11,990
(255)
66,969
86,190
(19,221)
41,300
32,312
8,988
141,575
132,219
9,356
779,743
762,634
17,109
312,180
307,789
4,391
12,375
10,955
1,420
200,701
256,937
(56,236)
500
1,352
(852)
90,103
83,211
6,892
615,859
660,244
(44,385)
60,805
66,778
(5,973)
4,700
3,911
789
78,951
60,469
18,482
23,741
14,364
9.377
168,197
145,522
22,675
Page 1 of 4
City of Federal Way / 53
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 1993
(Continued)
CENTRAL SERVICES:
Personal Services
Supplies
Other services and charges
Interfund Services
TOTAL CENTRAL SERVICES
OTHER GENERAL GOVERNMENTAL SERVICES:
Other services and charges
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
VARIANCE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
83,876
85,491
(1,615)
900
615
285
11,555
7,351
4,204
20,635
19,099
1.536
116,966
112,556
4,410
790,912
149,016
641,896
790.912
149,016
641.896
3,543,951
2,644,890
899,061
12,300
3,641
8,659
12,700
2,259
10,441
7,668,724
7,639,958
28,766
7,693,724
7,645,858
47,866
525,000
541,675
(16,675)
525,000
541,675
(16,675)
8,218,724
8,187,533
31,191
19,889
19,889
19,889
19,889
19,889
19,889
ECONOMIC ENVIRONMENT
INFORMATION AND OUTREACH:
Personal services
262,454
263,960
(1,506)
Supplies
7,370
4,192
3,178
Other services and charges
51,630
36,016
15,614
Interfund Services
36,392
28,729
7,663
TOTAL INFORMATION AND OUTREACH
357,846
332,897
24,949
PLANNING AND COMMUNITY DEVELOPMENT:
Personal services
1,087,534
1,047,536
39,998
Supplies
14,425
11,627
2,798
Other services and charges
170,485
67,601
102,884
Intergovermental services
200
6
194
Interfund services
317,520
289,170
28,350
TOTAL PLANNING AND COMMUNITY DEVELOPMENT
1,590,164
1,415,940
174,224
Page 2 of 4
54 / City of Federal Way
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 1993
(Continued)
VARIANCE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
HOUSING AND COMMUNITY DEVELOPMENT:
Personal services
406,297
360,131
46,166
Supplies
8,625
6,378
2,247
Other services and charges
23,951
27,043
(3,092)
Interfund services
141,833
137,463
4,370
TOTAL HOUSING AND
COMMUNITY DEVELOPMENT
580,706
531,015
49,691
TOTAL ECONOMIC ENVIRONMENT
2,528,716
2,279,852
248,864
HEALTH
PUBLIC HEALTH:
Personal services
45,668
47,281
(1,613)
Supplies
650
631
19
Other services and charges
380,816
398,325
(17,509)
Intergovermental services
685,539
683,978
1,561
Interfund services
-
14,364
(14,364)
TOTAL PUBLIC HEALTH
1,112,673
1,144,579
(31,906)
TOTAL HEALTH
1,112,673
1,144,579
(31,906)
CULTURE AND RECREATION
SPECTATOR AND COMMUNITY EVENTS:
Personal services
147,156
147,714
(558)
Supplies
2,446
2,754
(308)
Other services and charges
5,413
19,906
(14,493)
Interfund services
53,653
49,942
3,711
TOTAL SPECTATOR AND
COMMUNITY EVENTS
208,658
220,316
(11,6"
PARTICIPANT RECREATION:
Personal services
802,718
643,547
159,171
Supplies
47,640
52,575
(4,935)
Other services and charges
236,278
202,451
33,827
Intergovernmental services
8,500
9,702
(1,202)
Interfund services
158,154
128,621
29,533
TOTAL PARTICIPANT
RECREATION
1,253,290
1,036,896
216,394
Page 3 of 4
City of Federal Way / 55
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 1993
(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
Residual equity transfers out
Operating transfers out
TOTAL OTHER FINANCING USES
TOTAL GENERAL FUND
VARIANCE
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
690,913
646,740
44,173
169,995
146,037
23,958
335,030
391,619
(56,589)
-
5,575
(5,575)
206,124
189,308
16,816
1.402.062
1,379,279
22.783
2,864,020
2,636,491
227,529
1,089,154
1,119,746
(30.592)
103,870
64,245
39,625
2,149,852
1,734,408
415,444
2,253,722
1,798,653
455.069
$ 21,630,849 $
19,831,633
$ 1,799,216
Page 4 of 4
cart OF
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58 / City of Federal Way
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 1993
With Comparative Totals for December 31, 1992
1at 1/4%
2nd 1/4%
Special
Arterial Real Estate
Real Estate
Solid Waste/
Contracts/
Street
Street Excise Tax
Excise Tax
Recycling
Studies
ASSETS
Cash and cash equivalents
$
485,779
$ 1,475,399 $ 9,898 $
12,239
$
154,634
$ 118,976
Receivables (net):
Rehab loans
-
-
-
-
-
Accounts and contracts
-
-
11,831
Due from other funds
52,549
76 -
-
864
7,000
Due from other governments
138,001
44,171 101,091
101,305
32,542
TOTAL ASSETS
$
676,329
$ 1,519,646 $ 110,989 $
113,544
$
199,871
$ 125,976
LIABILITIES AND FUND BALANCES
Liabilities:
Vouchers payable
$
186,686
$ 1,112 $ - $
-
$
35,199
$ 52,941
Accounts/payroll payable
2,392
8
-
Due to other funds
47,303
1,619
Due to other governments
-
-
Deposits payable
9,610
Interfund loans payable
Deferred revenues
-
-
TOTAL LIABILITIES
245,991
1,112
-
36.826
52,941
Fund balances:
Reserved for:
Paths and trails
-
-
-
Housing rehab. loans
-
- -
-
-
-
Unreserved-undesignated
430,338
1,518,534 110,989
113,544
163,045
73,035
TOTAL FUND BALANCES
430.338
1,518,534 110,989
113,544
163.045
73,035
TOTAL LIABILITIES AND
FUND BALANCES
$
676,329
$ 1,519,646 $ 110,989 $
113,544
$
199,871
$ 125,976
Page 1 of 2
City of Federal Way / 59
Grants -
Community
Paths and
Miscellaneous
Development
Trails
Surface Water
Donations
Impact
Strategic
Totals
Governmental
Block Grant
Reserve
Management
Fund
Fee
Reserve
1993
1992
$ 88,597
$ 4,100
$ 27,683 $
2,242,435
$ 8,006 $
255,216 $
2,144,539 $
7,027,501 $
8,859,597
-
121,919
-
-
-
-
121,919
64,196
-
-
-
11,831
24,777
22,858
-
-
6,783
12,297
-
102,427
-
103,182
116,283
697
21.577
-
-
-
658,849
1,074,909
$ 214,637
$ 242,302
$ 28,380 $
2,270,795
$ 8,006 $
267,513 $
2,144,539 $
7,922,527 $
10,023,479
$ 7,166 $
12,493 $ - $
89,469 $ $
23,420 $ $
408,486 $
924,252
-
63,652
136 -
-
66,188
13,101
12,220
7,000
130,833
-
198,975
-
-
-
-
-
339,215
-
- -
-
-
9,610
3,610
50,000
25,000
-
-
75,000
60,000
36,367
121,919
-
158,286
64,196
105,753
230,064
220,438
23,420
916,545
1,404,374
28,380
-
28,380
19,395
-
12,238 -
-
- -
12,238
108,564
-
2.050.357 8.006
244,093 2.144,539
6,965,364
8,599,710
108,884
12,238 28,380
2,050,357 8,006
244,093 2,144,539
7,005,982
8,619.105
$ 214,637 $
242,302 $ 28,380 $
2,270,795 $ 8,006 $
267,513 $ 2,144,539 $
7,922,527 $
10,023,479
Page 2 of 2
60 / City of Federal Way
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1993
With Comparative Totals for December 31, 1992
1 st 1/4% 2nd 1/4% Solid
Arterial Real Estate Real Estate Waste/
Street Street Excise Tax Excise Tax Recycling
REVENUES:
Taxes 9
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
- $ $ 702,590 $ 703,323 $ $
55,502 - -
1,798,206 1,305,401 78,013
63,479 - - 141,439
27,030 52,491 9,892 9,009 4,065
25,963 - -
1,970,180 1,357,892 712,482 712,332 223,517
Special
Contracts/
Studies
53,521
6,673
15,000
75,194
- - 183,023
2,372,288 416,605 - - -
_ 262,891
- 79,781
2,372,288 416,605 - 183,023 342,672
(402,108) 941,287 712,482 712,332 40,494 (267,478)
771,000 35,000 - 283,013
(760,434) (1,574,120) (730,000) (700,000)
10,566 (1,539,120) (730,000) (700,000) 283,013
(391,542) (597,833) (17,518) 12,332 40,494
15,535
FUND BALANCES AT BEGINNING OF YEAR 833,975 2,116,367 128,507 101,212 122,722 57,500
Residual equity transfers out (12,095) - - - (171) -
FUND BALANCES AT END OF YEAR $ 430,338 $ 1,518,534 $ 110,989 $ 113,544 $ 163,045 $ 73,035
Page 1 of 2
City of Federal Way / 61
Grants -
Community
Paths and
Miscellaneous
Development
Trails
Surface Water
Donations
Impact
Governmental
Block Grant
Reserve
Management
Fund
Fee
178,648
567,599
8,242
-
-
2,700,429
182,5
4,700
653
743
72,858
-
8,E
-
11,603
-
3,164
14,838
-
183,348
579,855
8,985
2,776,451
14,838
191,,
Strategic
Total
Reserve
1993
1992
$
1,405,913 $
1,458,103
-
55,502
34,497
-
3,989,630
6,809,754
-
3,088,247
3,270,781
65,645
262,409
308,941
-
70,568
238,744
65,645
8,872,269
12,120,820
935
8,350
9,285
7,893
-
19,901
-
19,901
172
19,320
-
37,854
240,197
102,906
118,891
-
1,314,975
-
4,222,759
7,924,118
348
220,166
483,405
149,947
-
-
-
4,650
142,034
319,200
-
6,832
-
547,847
28,337
281,528
567,617
1,314,975
6,832
37,854
-
5,523,394
8,218,023
(98,180)
12,238
8,985
1,461,476
8,006
153,696
65,645
3,348,875
3,902,797
22,814
-
-
457,185
-
-
-
1,569,012
1,526,137
(102,002)
(2,384,007)
(233,876)
(6,484,439)
(2,621,307)
(79,188)
-
(1,926,822)
(233,876)
(4,915,427)
(1,095,170)
(177,368)
12,238
8,985
(465,346)
8,006
(80,180)
65,645
(1,566,552)
2,807,627
286,252
-
19,395
2,550,008
-
324,273
2,078,894
8,619,105
5,959,155
-
-
-
(34,305)
-
-
(46,571)
(147,677)
$ 108,884 $
12,238
$ 28,380 $
2,050,357 $
8,006 $
244,093 $
2,144,539 $
7,005,982 $
8,619,105
Page 2 of 2
62 / 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, 1993
With Comparative Totals for December 31, 1992
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
Street Fund
Variance
Favorable
1992
Budget
Actual
(Unfavorable)
Actual
43,000
55,502
12,502
34,497
1,844,760
1,798,206
(46,554)
1,765,147
100,501
63,479
(37,022)
206,395
26,000
27,030
1,030
65,153
-
25,963
25,963
43.809
2,014,261
1,970,180
(44,081)
2,115,001
- - - 19,669
2,756,903 2,372,288 384,615 2,975,417
2,756,903 2,372,288 384,615 2,995,086
(742,642) (402.108) 340,534 (880,085)
771,000 771,000 872,061
(757,157) 60,434 (3,277J (596,576)
13.843 10,566 (3,277) 275,485
(728,799) (391,542) 337,257 (604,600)
833,975 833,975 - 1,488,059
(30,336) 12,09 18,241 (49,484)
$ 74,840 $ 430,338 $ 355,498 $ 833,975
Page 1 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, 1993
With Comparative Totals for December 31, 1992
(Continued)
Arterial Street Fund
Variance
Favorable
1992
Budget
Actual
(Unfavorable
Actual
1,392,930
1,305,401
(87,529)
4,663,162
7,178
52,491
45,313
59,061
1,400,108
1,357,892
(42,216)
4,722,223
500,483
416,605
83,878
3,578,530
500,483
416,605
83,878
3,578,530
899.625
941,287
41,662
1,143,693
35,000
35,000
-
-
(1,574,120)
(1,574,120)
-
(1,539,120)
(1,539,120)
(639,495)
(597,833)
41,662
1,143,693
2,116,637
2,116,367
(270)
972,674
$ 1,477,142
$ 1,518,534 $
41,392 $
2,116,367
lot 1 /4% Real Estate Excise Tax Fund
Variance
Favorable
1992
Budget
Actual
(Unfavorable)
Actual
$ 642,000 $
702,590
$ 60,590 $
729,285
9,204
9,892
688
15,064
-
-
1,792
651,204
712,482
61,278
746,141
28,337
- - - 28,337
651,204 712,482 61,278 717,804
30,000 30,000 - (701,412)
(730,000) (730,000) 01,412
(78,796) (17,518) 61,278 16,392
128,507 128,507 112,115
$ 49,711 110,989 61,278 $ 128,507
Page 2 of 6
64 / 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, 1993
With Comparative Totals for December 31, 1992
(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
1992
Budget
Actual
(Unfavorable)
Actual
$ 642,000 $
703,323
$ 61,323 $
728,818
9,204
9,01}9
(195)
14,664
651,204
712,332
61,128
743,482
651,204 712,332 61,128 743,482
(700,000) (700,000) - (729,749)
(700,000) (700,000) (729,74�
(48,796) 12,332 61,128 13,733
101,212 101,212 87,479
$ 52,416 $ 113,544 $ 61,128 $ 101,212
Page 3 of 6
City of Federal Way / 65
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 1993
With Comparative Totals for December 31, 1992
(Continued)
Solid Waste/Recycling Fund
Variance
Favorable 1992
Budget Actual
(Unfavorable) Actual
150,514 78,013
(72,501)
94,065 141,439
47,374
- 4,065
4,065
244,579 223,517
(21,062)
325,813 183,023 142,790
325,813 183,023 142,790
(81,234) 40,494 121,728
Paths and Trails Reserve Fund
Variance
Favorable 1992
Budget Actual (Unfavorable) Actual
8,711 8,242 (469) 8,578
743 743
8,711 8,985 274 8,578
8,711 8,985 274 8,578
122,722 - -
- (28,132) 28,132 -
122,722 (28,132) 28,132 -
(81,234) 40,494 121,728 122,722 (19,421) 8,985 28,406 8,578
122,722 122,722 - - 19,421 19,395 (26) 10,817
(388) (171) 217 - - - - -
$ 41,100 $ 163,045 $ 121,945 $ 122,722 $ - $ 28,380 $ 28,380 $ 19,395
Page 4 of 6
66 / City of Federal Way
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 1993
With Comparative Totals for December 31, 1992
(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
1992
Budget
Actual
(Unfavorable)
Actual
2,531,111
2,700,429
169,318
2,516,051
32,515
72,858
40,343
70,631
-
3.164
3,164
193,143
2,563,626
2,776,451
212,825
2,779,825
- - - 44,436
1,644,725 1,314,975 329,750 1,146,109
1,644,725 1,314,975 329,750 1,190,545
918,901 1,461,476 542,575 1,589,280
457,185 457,185 - 457,185
(2,380,730) (2,384,007) (3,277) (187,001)
(1,923,545) (1,926,822) (3,277) 270,184
(1,004,644) (465,346) 539,298 1,859,464
2,550,008 2,550,008 - 788,737
(32,289) (34,305) (2,016) (98,193)
$ 1,513,075 $ 2,050,357 $ 537,282 $ 2,550,008
Page 5 of 6
City of Federal Way / 67
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 1993
With Comparative Totals for December 31, 1992
(Continued)
Stratealc Reserve Fund
Variance
Favorable 1992
Budget Actual (Unfavorable) Actual
65,645 65,645 78,894
65,645 65,645 78,B94
Totals
Variance
Favorable
1992
Budget
Actual
(Un#avorabie)
Actual
$ 1,284,000 $
1,405,913
$ 121,913 $
1,458,103
43,000
55,502
12,502
34,497
3,396,915
3,189,862
(207,053)
6,436,887
2,725,677
2,905,347
179,670
2,722,446
84,101
241,733
157,632
303,467
-
29,127
29,127
238,744
7,533,693
7,827,484
293,791
11,194,144
-
-
325,813
183,023
142,790
64,105
4,902,111
4,103,868
798,243
7,700,056
.
_
-
28,337
_
5,227,924
4,286,891
941,033
7,792,498
65,645
65,645
78,894
2,305,769
3,540,593
1,234,824
3,401,646
_
_
1,263,185
1,263,185
-
1,451,968
_
(6,170,139)
(6,148,561)
21,578
(2,214,738)
(4,906,954)
(4,885,376)
21,578
_(762,770)
65,645
65,645
78,894
(2,601,185)
(1,344,783)
1,256,402
2,638,876
2,078,894
2,078,894
2,000,000
5,872,482
7,951,080
2,078,598
5,459,881
(63,013)
(46,571)
16,442
(147,677)
$ - $ 2.144,539 $
2144,539
$ 2,075.894
$ 3,208,284 $
6,559,726 $
3,351,442
$ 7,951,080
page 6 of 6
City of Federal Way / 69
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEET
December 31, 1993 and 1992
ASSETS
Cash and cash equivalents
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
Accounts payable
Due to other funds
TOTAL LIABILITIES
Fund balance:
Reserved for debt service
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
1993
$ 1,650,709
$
1,438,177
$ 1,650,709
$
1,438,177
$ 530
$
1,315
950
2,077
2,761
4,241
3,392
1,646,468
1,434,785
1,646,468
1,434,785
$ 1,650,709
$
1,438,177
70 / City of Federal Way
DEBT SERVICE FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 1993 and 1992
REVENUES:
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES:
Debt Service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds of general long-term debt
Operating transfers in
Amount remitted to refunding trustee
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
$
$
$
1993
49,945 $
2,500
52,445
410,000 $
1,180,917
1,590,917
(1,538,472)
12,000,332 $
1,617,000
(11,867,177)
1,750,155
211,683
1,434,785
1992
365,000
1,736,319
2,101,319
(2,101,319)
1,431,161
1,431,161
(670,158)
2,104,943-
1,646,468 $ 1,434,785
City of Federal Way / 71
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Years Ended December 31, 1993 and 1992
REVENUES:
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES:
Debt Service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds of general long-term debt
Operating transfers in
Amount remitted to refunding trustee
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
1993 1993 FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
$ 35,000 $ 43,544 $ 8,544 $
8,901 8,901
35,000 52,445 17,445
1992
ACTUAL
410,000
410,000
- 365,000
1,207,784
1,180,917
26,867 1,736,319
1,617,784
1,590,917
26,867 2,101,319
(1,582,784)
(1,538,472)
44,312 (2,101,319)
12,000,332 12,000,332
1,661,312 1,617,000
(11,867,177) (11,867,177)
(44,312) 1,431,161
1,794,467 1,750,155 (44,312) 1,431,161
211,683 211,683 (670,158)
1,434,785 1,434,785 2,104,943
$ 1,646,468 $ 1,646,468 $ $ 1,434,785
CITY OF
A
CITY OF AC.--
74 / City of Federal Way
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1993
With Comparative Totals for December 31, 1992
CAPITAL
PROJECTS 1991
ASSETS
Cash and cash equivalents
Accounts receivable
Due from other funds
Due from other governments
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
Due to other funds
Due to other governments
TOTAL LIABILITIES
Fund balance:
Unreserved-undesig nated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
$ 1,131,385
27,951
$ 1,159,336
$ 222,304
222,304
937,032
937.032
$ 1,159,336
Page 1 of 2
City of Federal Way / 75
SURFACE WATER
Totals
MANAGEMENT
TRAFFIC
STREETS
1993 1992
$ 1,661,675
$ 133,135
$ 1,097,421
$ 4,023,616 $ 404,463
-
-
215
215 -
23,138
-
23,138
128,567
22,269
75,515
254,302 -
$ 1,813,380
$ 155,404
$ 1,173,151
$ 4,301,271 $ 404,463
$ 254,467
$ 1,674
$ 13,718
$ 492,163 $
-
23,492
290
23,782
-
181,924
181,924
-
254,467
25,166
195,932
697,869
-
1,558,913
130,238
977,219
3,603,402
404,463
1,558,913
130,238
977,219
3,603,402
404,463
$ 1,813,380
$ 155,404
$ 1,173,151
$ 4,301,271 $
404,463
Page 2 of 2
76 / City of Federal Way
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Year Ended December 31, 1993
With Comparative Totals for December 31, 1992
CAPITAL
PROJECTS 1991
PARKS
REVENUES:
Intergovernmental
$
$ 60,636
Service charges and fees
-
-
Miscellaneous
Interest
-
32,552
TOTAL REVENUES
-
93,188
EXPENDITURES:
Capital outlay
-
2,062,809
Debt Service:
Interest and fiscal charges
-
31,587
TOTAL EXPENDITURES
-
2,094,396
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES
-
(2,001,208)
OTHER FINANCING SOURCES (USES):
Bond proceeds
-
2,390,GDO
Operating transfers in
-
548,240
TOTAL OTHER FINANCING SOURCES (USES)
-
2,938,240
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES AND OTHER USES
-
937,032
FUND BALANCE AT BEGINNING OF YEAR
404,463
-
Residuai equity transfers out
(404,463)
-
FUND BALANCE AT END OF YEAR
$
$ 937,032
Page 1 of 2
City of Federal Way / 77
SURFACE WATER
MANAGEMENT
TRAFFIC
$ 151,705
$ 36,847
4,080
26,611
1,629
182,396
38.476
1,073,683
41,949
1,073,683
41,949
(891,287)
(3,473)
2,450,200
133,711
2,450,200
133,711
1,558,913
130,238
STREETS
$ 603,686
12,095
615,781
1,497,689
$ 1,558,913 $ 130,238 $
1,497,689
(881,908)
1.859,127
1,859,127
977,219
977,219
Totals
1993 1992
$ 852,874 $ -
4,080
72,887
929,841
4,676,130
31,587
4,707.717
(3,777,876)
2,390,000
4,991,278
403,699
7,381,278
403,699
3,603,402
403,699
404,463
764
(404,463)
$ 3,603,402 $
404,463
Page 2 of 2
MY OF
rm..
V �
City of Federal Way / 79
ENTERPRISE FUND
COMPARATIVE BALANCE SHEET
December 31, 1993 and 1992
ASSETS
Current Assets:
Cash and cash equivalents
Due from other funds
Due from other governments
TOTAL CURRENT ASSETS
Land
Building/Structures
Office furniture/Equipment
TOTAL PROPERTY AND EQUIPMENT
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
Current liabilities:
Vouchers payable
Deposits payable
Compensated absences payable
Bond anticipation notes payable
TOTAL CURRENT LIABILITIES
Fund equity:
Contributed Capital
Retained Earnings:
Unreserved
FUND EQUITY
TOTAL LIABILITIES AND
FUND EQUITY
Conference/Retreat Center
1993 1992
$ 549,541
18,506
340,000
908,047
2,109,640
586,011
49,339
2,744,990
$ 3,653,037
$ 6,228 $
413
320
955,000 -
961,961
$ 2,699,160 $
(8,084)
$ 2,691,076 $ -
3,653,037 -
80 / City of Federal Way
ENTERPRISE FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES
CHANGES IN FUND EQUITY
For the Years Ended December 31, 1993 and 1992
Conference/Retreat Center
1993 1992
OPERATING REVENUES:
Service charges and fees
$ 4,472 $
TOTAL OPERATING
REVENUES
4,472
OPERATING EXPENSES:
Personal services
10,452
Materials and supplies
6,930
Other services/charges
23,116
TOTAL OPERATING
EXPENSES 40,498
OPERATING INCOME (LOSS) $ (36,026) $
NON -OPERATING REVENUES
(EXPENSES):
Investment income
534
Debt issue costs
(14,149)
TOTAL NON -OPERATING
REVENUES (EXPENSES)
$ (13,615) $ -
INCOME (LOSS) BEFORE
OPERATING TRANSFERS
(49,641) -
OPERATING TRANSFERS IN
41,557 -
NET INCOME (LOSS)
(8,084) -
RETAINED EARNINGS, January 1
RETAINED EARNINGS, December 31
(8,084)
CONTRIBUTED CAPITAL, January 1
Increases to contributed capital
2,699,160 -
CONTRIBUTED CAPITAL, December 31
2,699,160
FUND EOUITY AT END OF YEAR
$ 2,691,076 $
City of Federal Way / 8 f
ENTERPRISE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For the Years Ended December 31, 1993 and 1992
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash received from damage deposits
Cash payments to suppliers for goods/services
Cash payments for personnel services
Cash payments for other services/charges
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating transfers in
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND CAPITAL -
RELATED FINANCING ACTIVITIES:
DCD funding
Open space funding
Bond anticipation note proceeds
Debt issue costs
Purchase of land and building
Purchase of furniture and equipment
NET CASH PROVIDED (USED) FOR CAPITAL
AND CAPITAL -RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
Increase in vouchers payable
Increase in deposits payable
Increase in compensated absences payable
TOTAL ADJUSTMENTS
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Conference/Retreat Center
1993 1992
$ 4,472 $
413
(2,300)
(10,132)
(21,518)
(29,065)
23,051
23,051
402,975
1,956,185
955,000
(14.149)
(2,695,651)
(49,339)
555,021
534 -
534
549,541
$ 549,541 $
$ (36,026) $ -
6,228
413
320
6,961
$ (29,065) $
Note:
At December 31, 1994, the remaining $340,000 in contributed capital from open space funding was appropriately accrued and
recorded as Due From Other Governments. Since this was related to capital rather than operations, the change in due
from other governmental units is not disclosed in the reconciliation of operating income to net cash provided by operations.
CITY OF
���
City of Federal Way / 83
ASSETS
Current Assets:
Cash and cash equivalents
Due from other funds
TOTAL CURRENT ASSETS
Property, plant and equipment:
Data processing/
telecommunication equipment
Transportation equipment
Heavy equipment
Buildings & furnishings
Other equipment
Less accumulated depreciation
Net property, plant
and equipment
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
Current liabilities:
Vouchers payable
Accounts payable
Due to other funds
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
Retained Earnings:
Unreserved
Retained Earnings
TOTAL FUND EQUITY
TOTAL LIABILITIES AND
FUND EQUITY
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1993
With Comparative Totals for December 31, 1992
Data
Processing
Risk Telecommun- Support Fleet and Buildings and
Management ications Services Equipment Furnishings
Totals
1993 1992
$ 238,891 $ 239,568 $
10,976 $
189,770 $
299,100 $
978,305 $
658,562
- 112,951
15,852
3,021
149,624
281,448
-
$ 238,891 $ 352,519 $
26,828 $
192,791 $
448,724 $
1,259,753 $
658,562
- 909,715
-
-
909,715
844,095
423,359
423,359
398,677
426,116
-
426,116
313,448
-
2,861,271
2,861,271
2,842,537
39,617
46,516
-
86,133
68,204
909,715
39,617
895,991
2,861,271
4,706,594
4,466,961
224,367
10,576
179,862
241,912
656,717
253,119
685,348
29,041
716,129
2,619,359
4,049,877
4,213,842
$ 238,891 $ 1,037,867 $
55,869 $
908,920 $
3,068,083 $
5,309.630 $
4,872,404
$ 1,978 $
29,380 $
13,498 $
1,406 $
15,455 $
61,717 $
231,161
-
-
-
-
37,119
13,497
93,530
2,275
11,523
-
120,825
-
6,034
6,034
6,034
200,000
200,000
190,000
5,242
479
-
5,721
4,486
15,475
128,152
16,252
12,929
221,489
394,297
468,800
1,940,000
1,940,000
2,140,000
-
1,940,000
1,940,000
2,140,000
15,475
128,152
16,252
12,929
2,161,489
2,334,297
2,608,800
685,348
29,041
716,129
405,859
1,836,377
1,883,842
223,416
224.367
10,576
179,862
500,735
1,138,956
379,762
223,416
224,367
10,576
179,862
500.735
1,138,956
379,762
223.416
909,715
39,617
895,991
906,594
2,975,333
2,263,604
$ 238,891 $
1,037,867 $
55,869 $
908,920 $
3,068,083 $
5,309,630 $
4,872,404
84 / City of Federal Way
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND EQUITY
OPERATING REVENUES:
Service charges and fees
Miscellaneous
TOTAL OPERATING
REVENUES
OPERATING EXPENSES:
Personal services
Services and charges
Materials and supplies
Insurance
Claims
Depreciation
TOTAL OPERATING
EXPENSES
OPERATING INCOME (LOSS)
NON -OPERATING REVENUES
(EXPENSES):
Interest income
Interest expense
TOTAL NON -OPERATING
REVENUES (EXPENSES)
NET INCOME (LOSS)
Add Depreciation reducing
Contributed Capital
Increase in Retained Earnings
RETAINED EARNINGS, January 1
Residual equity transfers out
RETAINED EARNINGS, December 31
CONTRIBUTED CAPITAL, January 1
Increases to contributed capital
Less Amortization
CONTRIBUTED CAPITAL, December 31
FUND EQUITY AT END OF YEAR
For the Year Ended December 31, 1993
With Comparative Totals for December 31, 1992
Data
Processing
Risk Telecommun- Support Fleet and Buildings and Totals
Management ications/GIS Services Equipment Furnishings 1993 1992
$ 247,762 $ 847,582 $ 210,377 $
44,797 1,258 230
292,559 848,840 210,607
174,980 $ 639,857 $ 2,120,558 $ 1,299,809
109,934 156,219 40,625
174,980 749,791 2,276,777 1,340,434
-
195,854
60,935
-
-
256,789
136,248
3,682
489,086
126,320
40,406
96,595
756,089
673,858
791
48,722
17,676
32,703
10,029
109,921
174,669
151,187
-
-
-
151,187
126,084
46,731
-
-
-
-
46,731
35,253
122,382
6,116
106,749
168,351
403,598
173,356
202,391
856,044
211,047
179,858
274,975
1,724,315
1,319,468
90,168
(7,204)
(4-40)
(4,878)
474,816
552,462
20,966
6,605 7,565
6,605 7,565
96,773 361
696 4,878 10,280 30,024 18,693
(I09,773) (109.773) (28.968)
696 4,878 (99,493) (79,749) (10,276)
256 - 375,323 472,713 10,691
-
122,382
6,116
106,749
51,851
287,098
173,356
96,773
122,743
6,372
106,749
427,174
759,811
184,047
126,643
101,985
4,460
73,113
73,561
379,762
207,103
-
(361)
256
-
-
(617)
(11,388)
223,416
224,367
10,576
179,862
500,735
1,138,956
379,762
-
742,110
31,047
671,709
438,976
1,883,842
1,247,127
-
65,620
4,110
151,169
18,734
239,633
810,071
-
(122,382)
(6,116)
(106.749)
(51,851
(287,09S)_
(173,356)
-
685,348
29,041
716,129
405.859
1,836,377
14883.842
$ 223,416
$ 909,715
$ 39,617 $
895,991
$ 906,594
$ 2,975,333
$ 2,263,604
City of Federal Way / 85
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash payments to suppliers for goods/services
Cash payments to employees
Cash payments to claimants
Cash payments to other funds for services
Other operating receipts
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Residual equity transfers out
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets
Cash contributions for capital acquisitions
Insurance claims
Principal paid on debt service
Interest paid on debt service
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
NET CASH PROVIDED (USED) IN INVESTING
ACTIVITIES
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGIN. OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating income
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
Depreciation expense
(Increase)decrease in due from other funds
Increase(decrease) in vouchers/accounts payable
Increase(decrease) in due to other funds
Increase(decrease)in accrued payroll/
compensated absences payable
Increase(decrease) in deposits payable
TOTALADJUSTMENTS
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
SCHEDULE OF NONCASH INVESTING,
CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1993
With Comparative Totals for December 31, 1992
Data
Processing
Risk Telecommun-
Management ications
Support Fleet and Buildings and Totals
Services Equiprrumt Furnishings 1993 1992
$ 306,056 $ 835,527 $ 198,578 $
(174,369) (658,544) (121,848)
(194,065) (61,492)
(46,731)
(42,946) (17,864)
1.258 230
188,758 $ 498,190 $ 2,027,109 $ 1,299,809
(50,022) (124,189) (1,128,972) (747,858)
(255,557) (136,248)
(46,731) (35,253)
(26,100) (86,910) (46,340)
109,934 111,422 46,659
84,956 (58,770) (2,396) 112,636 483,935 620,361 380,769
(aU} [tQG}
(146) (11.388)
(146) (11,388)
(53.091)
(4,109)
(46,857)
(18,734)
(122,791)
(415,808)
38,357
1,350
30,223
10,777
80,707
415,808
-
-
11,361
11,361
-
-
(190,000)
(190,000)
(109,773)
(109,773)
(28,968)
(14,734)
(2,759)
(5,273)
(307.730)
(330,496)
(25.968)
6,606
7,565
696
4,877
10.280
30,024
16.693
6,606
7,565
696
4,877
10,280
30,024
18,693
91,562
165,979)
(4,565)
112,240
186,485
319,743
359,106
147.329
305,547
15,541
77,530
112,615
658,562
299,456
$ 238,891
$ 239,568
$ 10,976 $
189,770 $
299,100 $
978,305 $
658,562
$ 90,168
$ (7,204)
$ (440) $
(4,878) $
474,816 $
552,462 $
20,966
-
122.382
6,116
106,749
168,351
403,598
173,356
(12,056)
(11,800)
13,776
(141,667)
(151,747)
-
(18,709)
(170,730)
3,452
(3,011)
(17,565)
(206.563)
181,389
13,497
7,047
832
21,376
-
1,791
(556)
1,235
(976)
-
6,034
(5,212)
(51,565]
1,956)
117,514
9,119
67,899
359,803
$ 84.955
$ (58,770)
$__L.396L $
112,636 $
483.935 $
620,361 $
380,769
$ $ 12,530 $ $ 116,671 $ - $ 129,201 $ 394,263
Page 1 of 2
86 / City of Federal Way
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1993
With Comparative Totals for December 31, 1992
Note:
At December 31, 1994, the ciity's internal service funds incurred costs for capital purchases, which were appropriately accrued at year-end. The funding
source for these costs had not been transferred into the internal service fund at year-end, resulting in an accrual to contributed capital. Accordingly a
portion of the due to other funds, due from other funds and residual equity transfers out are related to contributed capital rather than operations and did
not impact cash at December 31, 1993. This portion is not reported on the cash flow statement and the following provides the reconciliation from the
Balance Sheet and Statement of Revenues, Expenses and Changes in Fund Equity to the Statement of Cash Flows:
Data Support Fleet & Buildings &
Processing Services Equipment Furnishings Total
Changes in capital contributions:
Cash flow increases
$ 38,357 $
1,350 $
30,223 $
10,777 $ 80,707
Non -cash contributions
12,530
-
116,671
- 129,201
Due to/due from other funds
14,412
2,610
4,275
71957 29,254
Residual equity transfers
321
150
-
- 471
Total increases in contributed capital
$ 65,620 $
4,110 $
151,169 $
18,734 $ 239,633
Page 2 of 2
City of Federal Way / 87
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
Deposits payable - with escrow
TOTAL LIABILITIES
Fund balances:
Reserved for employee retirement
TOTAL FUND BALANCES
TOTAL LIABILITIES AND
FUND BALANCES
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 1993
With Comparative Totals for December 31, 1992
Expendable
Trust Fund Agency Funds
Federal Way Fees and
Retirement Deferred Taxes Clearing Totals
System Compensation Fund 1993 1992
$ - $ - $ 408,950 $ 408,950 $ 193,898
178,989 178,989 165,880
430,178 - 430,178 283,727
1,445,239 - 1,445,239 885,316
4,179
- - - 14,702
$ 1,445,239 $ 430,178 $ 587,939 $ 2,463,356 $ 1,547,702
- -
-
7,327
18,762
18,762
8,008
75,837
75,837
165,880
- 178,222
178,222
95.169
430,178 -
430,178
283,727
12,530
12,530
12,530
199,435
199,435
78,191
103,153
103,153
430,178 587,939
1,018,117
650.832
1,445,239 -
1,445,239
896,870
1,445,239 - -
1,445,239
896,870
$ 1,445,239 $ 430,178 $ 587,939 $
2,463,356 $
1,547,702
88 / City of Federal Way
EXPENDABLE TRUST FUND
FEDERAL WAY RETIREMENT SYSTEM
COMPARATIVE BALANCE SHEET
December 31, 1993 and 1992
1993 1992
ASSETS
Cash and cash equivalents with plan administrator $ $ -
Investments with plan administrator 1,445,239 885,316
Receivables (net):
Interest - 4,179
Due from other funds 14,702
TOTAL ASSETS $ 1,445,239 $ 904,197
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable $ - $ 7,327
TOTAL LIABILITIES - 7,327
Fund balance:
Reserved for employee retirement 1,445,239 896,870
TOTAL FUND BALANCE 1,445,239 896,870
TOTAL LIABILITIES AND FUND BALANCE $ 1,445,239 $ 904,197
City of Federal Way / 89
EXPENDABLE TRUST FUND
FEDERAL WAY RETIREMENT SYSTEM
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 1993 and 1992
REVENUES:
1993
1992
Miscellaneous:
Employer contributions
$ 225,849 $
184,449
Employee contributions
269,284
226,808
Investment income
37,963
27,181
Gains and losses in investments
86,214
TOTAL REVENUES
619,310
438,438
EXPENDITURES:
Employee contributions refunded
35,101
64,233
Consultant services
35,840
39,100
TOTAL EXPENDITURES
70,941
103,333
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES
548,369
335,105
OTHER FINANCING SOURCES (USES):
Operating transfers in
-
23,983
TOTAL OTHER FINANCING SOURCES (USES):
-
23,983
EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES AND OTHER USES:
548,369
359,088
FUND BALANCE AT BEGINNING OF YEAR
896,870
537,782
FUND BALANCE AT END OF YEAR
$ 1,445,239 $
896,870
90 / City of Federal Way
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
For the Year Ended December 31, 1993
ASSETS:
Cash with deferred compensation
LIABILITIES:
Deferred compensation payable
FEES & TAXES CLEARING FUND
ASSETS:
Cash
Cash - with escrow agent
LIABILITIES:
Vouchers payable
Due to other governments
Retainage payable
Retainage payable - with escrow agent
Custodial accounts
Deposits payable
Deposits payable - with escrow agent
SPECIAL DEPOSIT
ASSETS:
Cash
LIABILITIES:
Customer deposits
TOTAL - ALL AGENCY FUNDS
ASSETS:
Cash
Cash with deferred compensation
Cash - with escrow agent
TOTAL ASSETS
LIABILITIES:
Vouchers payable
Due to other governments
Retainage payable
Retainage payable - with escrow agent
Deferred compensation payable
Custodial accounts
Customer deposits
Customer deposits - with escrow agent
TOTAL LIABILITIES
Balance Balance
01/01/93 Additions Deductions 12/31/93
$ 283,727 $ 146,451 $ $ 430,178
$ 283,727 $ 146,451 $ $ 430,178
$ 193,898
$
577,016
$
361,964
$
408,950
165,880
289,221
276,112
178,989
$ 359,778
$
866,237
$
638,076
$
587,939
$ -
$
361,964
$
361,964
$
-
95,169
428,289
345,236
178,222
8,008
13,509
2,755
18,762
165,880
142,363
232,406
75,837
12,530
-
-
12,530
78,191
162,951
41,707
199,435
-
103,153
-
103,153
5 359,775
$
1,212,229
$
984,068
$
587,939
$ $ 5,824 $ 5,824 $
$ $ 5,824 $ 5,824 $
$ 193,898
$
582,840 $
367,788
$
408,950
283,727
146,451
-
430,178
165,880
289,221
276,112
178,989
$ 643,505
$
1,018,512 $
643,900
$
1,018,117
$
$
361,964 $
361,964
$
-
95,169
428,289
345,236
178,222
8,008
13,509
2,755
18,762
165,880
142,363
232,406
75,837
283,727
146,451
-
430,178
12,530
-
-
12,530
78,191
168,775
47,531
199,435
-
103,153
-
103,153
$ 643,505
$
1,364,504 $
989,892
$
1,018,117
City of Federal Way / 91
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS
BY SOURCE
December 31, 1993 and 1992
GENERAL FIXED ASSETS (A)
Land
Buildings
Other improvements
Equipment
Assets under capital lease
Construction in process
TOTAL GENERAL FIXED ASSETS
INVESTMENT IN GENERAL FIXED ASSETS FROM:
Capital Projects Funds:
General obligation bonds
Grants
General Fund:
General revenues
Donations
Capital leases
Special Revenue Funds:
General revenues
Grants
TOTAL INVESTMENT IN GENERAL FIXED ASSETS
1993
1992
$ 25,660,420 $
22,200,861
1,724,241
334,000
921,050
453,464
1,450,000
1,450,000
1,626,810
-
$ 31,382,521 $
24,438,325
$ 17,956,155 $
60,635
1,783,583
9,604,440
1,450,000
208,508
319,200
$ 31,382,521 $
(A) Excludes all public domain assets such as streets, sidewalks, gutters, bridges, drainage facilities and lighting systems.
12,966,321
244,956
9,568,540
1,450,000
208,508
24,438,325
92 / City of Federal Way
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY(A)
December 31, 1993
Other
Function/Activity
Total
Land
Buildings Improvements Equipment
GENERAL GOVERNMENT
Misc General Government
$
508,492 $
508,492 $
$ $
TOTAL GENERAL
GOVERNMENT
508,492
508,492
- -
CULTURE AND RECREATION
29,247,219
26,601,928
1,724,241 921,050
TOTAL GENERAL FIXED
ASSETS BY FUNCTION
$
29,755,711 $
27,110,420 $
1,724,241 $ 921,050 $
CONSTRUCTION IN PROGRESS
$
1,626,810
TOTAL GENERAL
FIXED ASSETS
$
31,382,521
(A) Excludes all public domain assets such as streets, sidewalks, gutters, bridges, drainage facilities and lighting systems.
City of Federal Way / 93
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY(A)
For the Year Ended December 31, 1993
General
General
Fixed Assets
Fixed Assets
Function/Activity
1/31/93
Additions
Deductions(B)
12/31/93
GENERAL GOVERNMENT
Misc General Government
$ 508,492 $
$
$
508,492
TOTAL GENERAL GOVERNMENT
$ 508,492 $
$
$
508,492
PHYSICAL ENVIRONMENT
-
18,057
18,057
-
STREET/TRANSPORTATION
-
94,611
94,611
-
CULTURE AND RECREATION
23,929,833
5,333,919
16,533
29,247,219
CONSTRUCTION IN PROGRESS
-
1,626,810
-
1,626,810
TOTAL GENERAL FIXED ASSETS
$ 24,438,325 $
7,073,397 $
129,201 $
31,382,521
(A) Excludes all public domain assets such as streets, sidewalks, gutters, bridges, drainage facilities and lighting systems.
CITY OF
GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (A)
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Table 1
(B)
CULTURE
OTHER
FISCAL
GENERAL
PUBLIC
PHYSICAL
TRANS-
ECONOMIC
(B)
AND
CAPITAL
DEBT
FINANCING
TOTAL
YEAR
GOVERNMENT
SAFETY
ENVIRONMEN
PORTATION
ENVIRONMENT
HEALTH
RECREATION
OUTLAY
SERVICE
USES (C)
EXPENDITUR
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
1993
2,654,175
8,207,434
260,086
4,222,759
2,763,257
1,144,579
3,184,338
1,119,746
1,590,917
8,218,847
33,366,138
(A)
(B)
(C)
NOTE:
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.
During 1992, the human service contracts were reclassified from Economic Environment to Health.
Other financing uses in 1993 excludes $11,867,177 in amount remitted to refunding trustee.
The City was incorporated on February 28, 1990. Therefore, no history of expenditures exists prior to incorporation.
(A)
(B)
(C)
(D)
SCHEDULE OF MAJOR REVENUES AND OTHER FINANCING SOURCES BY SOURCE (A)
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
LICENSES
INTER-
CHARGES
OTHER
FISCAL
AND
GOVERNMENTAL
FOR
FINES AND
MISCELLANEOUS
FINANCING
YEAR
TAXES (B)
PERMITS
REVENUE
SERVICES
FORFEITURES
REVENUE
SOURCES(C)
1990
$9,143,158
$509,541
$3,315,261
$981,788
$117,136
$340,495
$1,178,248
1991
13,359,964
720,363
5,467,866
1,615,171
288,254
721,989
4,100,770
1992
14,351,929
771,568
91349,850
3,936,975
414,178
857,660
2,957,298
1993
15,414,561
877,369
7,132,007
3,679,367
504,580
673,704
3,186,012
Revenues are recorded on the modified accrual basis.
See Table 3 for further detail.
Other Financing Sources does not include capital leases of $1,450,000 in 1991, or $12,000,332 in refunding bond proceeds in 1993.
The City was Incorporated on February 28, 1990. Therefore, no history of expenditure exists prior to incorporation.
Table 2
TOTAL
REVENUE
$15,585,627
26,274,377
32,639,458
31,467,600
City of Federal Way / 97
TAX REVENUE BY SOURCE Table 3
GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
MISCELLANEOUS
GENERAL
BUSINESS AND OTHER
FISCAL
PROPERTY
GENERAL
UTILITY OCCUPATION TAXES AND
YEAR
TAXES
SALES TAX
TAXES TAXES ASSESSMENTS (A)
TOTAL TAXES
1990
$3,490,242
$4,529,165
$1,123,751
$9,143,158
1991
4,457,526
6,468,697
2,433,741
13,359,964
1992
4,908,731
6,824,953
2,618,245
14,351,929
1993
5,400,350
7,366,796
2,647,415
15,414,561
(A) Includes real estate excise, local criminal justice, gambling excise, and other taxes and related assessments.
PROPERTY TAX LEVIES AND COLLECTIONS
Table 4
TOTAL
TOTAL
PERCENT
DELINQUENT
COLLECTIONS
OUTSTANDING
OUTSTANDING
FISCAL
TOTAL TAX
CURRENT TAX
OF LEVY
TAX
TOTAL TAX
AS % OF
DELINQUENT
TAXES AS % OF
YEAR
LEVY
COLLECTIONS
COLLECTED
COLLECTIONS
COLLECTIONS
CURRENT LEVY
TAXES
CURRENT LEVY
1990
$4,298,526
$4,103,478
95.5%
$ -
$4,103,478
95.5%
$190,139
4.4%
1991
4,582,620
4,371,463
95.4%
87,282
4,458,745
97.3%
294,063
6.4%
1992
5,031,533
4,758,677
94.6%
151,681
4,910,358
97.6%
394,906
7.8%
1993
5,374,597
5,130,550
95.5%
224,849
5,355,399
99.6%
368,405
6.9%
Sources:
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 / 99
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
1993
3,454,234,214
PERSONAL
STATE PUBLIC
PROPERTY
SERVICE PROPERTY
TOTAL
$100,236,709
$72,783,925
$3,101,693,059
110,845,208
75,442,874
3,213,952,495
120,842,393
75,109,073
3,643,964,784
118,895,184
76,270,795
3,649,400,193
Table 5
PERCENT
INCREASE
(DECREASE)
3.6%
13.4%
0.1 %
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 $16,497,134 and prior year omits of $2,589,158 yielding a regular
levy value of $3,630,313,901. These assessed valuations are the basis for the following year's tax levy.
Source: King County Assessor's Office.
PROPERTY TAX LEVIES --ALL OVERLAPPING GOVERNMENTS
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
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
1991
1.48
3.51
1.73
3.38
0.04
0.32
1.50
0.49
0.20
1992
1.57
4.41
1.80
3.54
0.04
0.34
1.59
0.54
0.25
1993
1.48
4.44
2.14
3.30
0.04
0.31
1.50
0.56
0.24
❑ETAIL OF TAX RATES FOR 1993
Basic Rate 1.48 - 1.70 3.30
Voted Rate - 4.44 0.44 -
TAX LEVIES
1990 $4,298,526
$14,453,576
$148,895,759
$294,742,566
1991 4,582,620
15,921,245
175,252,520
344,626,681
1992 5,031,533
20,813,253
187,697,900
369,890,459
1993 5,374,597
23,484,195
249,007,068
386,120,736
Source: King County Assessor's Office and King County Department of Finance.
0.04 0.28 1.30 0.41
0.03 0.20 0.15
$ - $32,967,034
410,505 32,876,348
430,547 35,898,437
474,606 35,646,913
0.24
Table 6
TOTAL
15.16
12.65
14.08
14.01
$5,969,096
$17,407,235
18,169,217
$536,903,009
6,652,219
23,073,495
20,242,839
623,638,472
7,272,423
23,199,099
26,073,064
676,306,715
7,770,737
32,182,594
27,960,911
768,022,357
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Table 7
RATIO OF NET
(B)
(C)
BONDED DEBT
NET BONDED
FISCAL
(A)
ASSESSED
GROSS
LESS DEBT
NET
TO ASSESSED
DEBT PER
YEAR
POPULATION
VALUE
BONDED DEBT
SERVICE FUNDS
BONDED DEBT
VALUE
CAPITA
1990
67,304
$3,093,528,051
$1,710,000
$416,000
$1,294,000
0.0004
$19.23
1991
70,660
3,199,629,123
15,360,000
2.104,943
13,255,057
0.0041
187.59
1992
72,350
3,623,964,550
17,325,000
1,434,785
15,890,215
0.0044
219.63
1993
75,320
3,630,313,901
20,095,000
1,948,291
18,146,709
0.0050
240.93
(A)
(B)
(C)
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 $3,630,313,901 has been reduced by senior citizen exemptions of $16,497,134 and prior year omits of $2,589,158
to arrive at taxable assessed valuation.
Includes certificates of participation Issued In 1991 and 1992,
102 / City of Federal Way
COMPUTATION OF LIMITATION OF INDEBTEDNESS
Table 8
December 31, 1993
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=$3,630,313,901) (A)
.75%AVQa 100%
$27,227,354
$27,227,354 ($54,454,709)
2.50% AV Q 100%
90,757,848
90,757,848
90,757,848
$272,273,544
Add:
Cash on hand for
debt redemption (B)
1,487,903
460,388 -
1,948,291
Less:
Bonds outstanding
(16.620,000)
(3,475,000)
(20,095,000)
Principal on equipment
lease/purchase contracts
REMAINING DEBT CAPACITY
$12,095,257
$24,212,742 $36,303,139
$90,757,848
$90,757,848
$254,126,835
TOTAL REMAINING
-GENERAL- CAPACITY(C) $72,611,139
(A) This figure represents the City's final total taxable assessed valuation (AV) for 1993 which was used to determine the 1994 property tax levy.
(B) Reflects balance available in the Debt Service Fund, Building & Furnishing Fund and Retreat Center Fund as of December 31, 1993.
(C) Combined total for Councilmanic, Financing Lease, and Excess Levy capacities.
City of Federal Way / 103
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
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1993
(A)
GROSS GENERAL
OBLIGATION DEBT
OUTSTANDING
$ 20,095,000 (C)
622,446,417
21,354,634
79,042,229
3,007,447
62,137,153
(B)
PERCENTAGE
APPLICABLE TO
FEDERAL WAY
100.00%
3.10%
3.10%
92.58%
0.93%
69.77%
7.34%
Table 9
AMOUNT
APPLICABLE TO
FEDERAL WAY
$ 20,095,000
19,295,839
661,994
73,177,296
2,098,296
$ 119,889,292
(A) Total general obligation bonds outstanding on December 31, 1993, exclusive of refunded bonds.
Source is King County Department of Finance.
(B) Determined by ratio of 1993 assessed valuation of property subject to taxation in overlapping unit to valuation of property
subject to taxation in reporting unit.
(C) Includes certificates of participation issued in 1991 and 1992.
104 / City of Federal Way
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR Table 10
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
(B)
RATIO OF DEBT
TOTAL
SERVICE
GENERAL
TO GENERAL
FISCAL
(A)
TOTAL DEBT
GOVERNMENTAL
GOVERNMENTAL
YEAR
PRINCIPAL
INTEREST
SERVICE
EXPENDITURES
EXPENDITURES
1990
$ -
$ -
$
$ -
-
1991
300,000
111,203
411,203
22,540,708
1.8%
1992
365,000
1,725,325
2,090,325
28,473,046
7.3%
1993
410,000
1,041,471
1,451,471
33,366,138
4.4%
(A) Excludes bond issuance and debt registration costs.
(B) Includes other financing uses for general, special revenue, and debt service funds, but excludes the amount remitt
to refunding trustee of $11,867,177. See Table 1 for detail.
City of Federal Way / 105
DEMOGRAPHIC STATISTICS
Table 11
EDUCATION
LEVEL IN YEARS
FISCAL
PER CAPITA
MEDIAN
OF FORMAL
SCHOOL
UNEMPLOYMENT
YEAR
POPULATION
INCOME (A)
AGE
SCHOOLING
ENROLLMENT (B)
RATE (C)
1990
67,304
$ -
29
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%
1993
75,320
15,155
30.6
13.0
19,856
6.0%
(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 King County.
The unemployment rates for 1992 and 1993 reflect 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.
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Commercial Construction (A) Residential Construction (A)
Value
Value
Year
Permits
(In Thousands)
Permits
(In Thousands)
1990
123 $
8,122
448 $
43,102
1991
114
6,043
422
29,872
1992
175
16,790
400
36,101
1993
238
25,986
358
34,430
Multi -Family Construction (A) Bank Deposits (B)
Value King County
Permits (In Thousands) (In Millions)
11 $ 3,500 $ 17,624
- 19,300
19,347
18,855
Table 12
Property Assessed Valuation (C)
Total Taxable
Exemptions
Non -Taxable
(In Thousands)
(In Thousands)
(In Thousands)
$ 31101,693
$ 16,985
$ 8,165
3,213,952
24,062
13,033
3,643,965
38,500
15,694
3,649,400
43,735
16,497
(A) Source: Federal Way Community Development Department. Commercial construction includes alterations. Other building -related permits (p umbing, 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 / 107
PRINCIPAL TAXPAYERS
December 31, 1993
Table 13
(A)
Percentage
1993
of Total
Assessed
Assessed
Taxpayer
Type of Business
Valuation
Valuation
Sea Tac Mall Associates
Shopping Center
$ 46,546,600
1.28%
Weyerhaeuser Real Estate Co.
Real Estate
43,176,369
1.18%
U.S. West
Communications/Telephone
33,952,722
0.93%
Puget Power and Light
Power Utility
31,128,437
0.85%
Cushman & Wakefield
Real Estate Management
14,712,100
0.40%
Flanagan-Bal/Century Square Center
Shopping Center
12,498,463
0.34%
Quadrant Corporation
Real Estate Management
10,486,565
0.29%
Virginia Mason Clinic
Medical Services
10,075,826
0.28%
Inter Co-op USA/Manpower
Temporary Services
9,690,700
0.27%
Costco
Food/Merchandise
7,771,355
0.21%
$ 220,039,137
PRINCIPAL EMPLOYERS
December 31, 1993
Number of
Taxpayer
Type of Business
Employees
Federal Way School District
Education
2,526
Weyerhaeuser Company
Lumber Products
1,315
U.S. Postal Bulk Mail Center
Postal Service
550
St. Francis Hospital
Medical Services
440
Fred Meyer
Retail
350
Sears, Roebuck & Company
Retail
265
Reliance Insurance Company
Insurance
252
Eastside Medical Laboratory
Medical Services
250
USAA Property & Cauaity Insurance
Insurance
165
Safeway Stores
Retail Grocery
160
The Bon Marche
Retail
150
Medved Temporary Services
Temporary Services
150
K Mart
Retail
150
Top Foods
Retail Grocery
150
Virginia Mason
Medical Services
150
Eagle Hardware
Retail
145
Hallmark Manor
Convalescent Center
145
(A) 1993 assessed valuations for taxes collected in 1994. Total 1993 assessed valuation for the City is $3,649,400,193.
Source: King County Assessor - Principal Taxpayers.
City of Federal Way City Clerk Office - Principal Employers
6.03%
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
December 31, 1992
POLICY NUMBER POLICY PERIOD DETAILS OF COVERAGE
LIABILITY LIMITS
Table 14
ANNUAL
PREMIUM
WP039904614000047
1/31/92
Public Officials
Per claim - $2,000,000
$
16,000.00
to
Liability Coverage
In aggregate - $2,000,000
1 /30193
Deductible - $5,000
30269606
4/2/92
Public Official Bond
Coverage Limit - $250,000
$
1,250.00
to
Finance Director
4/1 /93
30269607
4/16/92
Public Official Bond
Coverage Limit - $250,000
$
1,250.00
to
City Manager
4/15/93
WPO41904614000047
1 /31 /92
General Liability
Per claim - $2,000,000
$
46,089.00
to
Coverage
Deductible - $5,000
1 /30/93
WP026904614000047
1 /31 /92
Municipal Property
Buildings - $3,964,000
$
4,722.00
to
Coverage
Extra expense - $200,000
1 /30/93
Misc property - $70,276
Valuable papers - $100,01D0
Deductible on each - $250
Media / Data - $25,000
Computers - $136,593
30268610 &
9/28/92
Public Employee
Coverage Limit - $250,000
$
1,003.00
30269608
to
Dishonesty Coverage
Deductible - $ 2,500
9/27/93
(Council Included)
WP0269046640000
1 /31 /92
Auto Liability
Per claim - $2,000,000
$
17,096.00
to
Collision - $1,000
1 /30/93
Comprehensive deductible -
$250
52PSSQK8459
1 /31 /92
Excess Policy
Per claim / Aggregate -
$
23,582.00
to
$5,000,000
1 /30/93
page 1 of 2
v
O
00
n
0
m
SCHEDULE OF INSURANCE IN FORCE
Table 14
(continued)
December 31, 1992
ANNUAL
NAME OF COMPANY
POLICY NUMBER
POLICY PERIOD
DETAILS OF COVERAGE
LIABILITY LIMITS
PREMIUM
ITT Hartford
BMI-CL-892704902
1 /31 /92
Boiler & Machinery
Per accident - $350,000
to
Deductible - $1,000-$2,500
$
1012.00
1 /30/93
ITT Hartford
52WEGA0142
1/31/92
Employer Liability
Coverage Limit - $1,000,000
$
42.00
to
Stop gap
1 /30/93
The Fidelity and Deposit
30381839
11/1/92
Public Official Bond
Coverage Limit - $50,000
$
175.00
Company of Maryland
to
City Clerk
10/31/93
The Fidelity and Deposit
30382079
11 /27/92
Public Official Bond
Coverage Limit - $50,000
$
250.00
Company of Maryland
to
Chief of Police
11 /26/93
TOTAL COST
$
111,417.00
* Law Enforcement $2,000,000 / Occurence, $2,000,000 / Aggregate,
$5,000 deductible is an endorsement of General Liability Coverage.
page 2 of 2
9
110/ City of Federal Way
SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS Table 15
December 31, 1993
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
CITY MANAGER
J. BRENT MC FALL
ASSISTANT CITY MANAGER/
COMMUNITY OUTREACH & POLICY PLANNING DIRECTOR
STEVE ANDERSON
ASSISTANT CITY MANAGER/
COMMUNITY DEVELOPMENT DIRECTOR
KEN NYBERG
CITY ATTORNEY
CAROLYN LAKE
CITY CLERK
MAUREEN SWANEY
FINANCE DIRECTOR
DEBORAH LARSON
PARKS, RECREATION &
HUMAN SERVICES DIRECTOR
ERIKJ STEVENS
PUBLIC WORKS DIRECTOR
PHILIP KEIGHTLEY
ANNUAL SALARY
$ 90,420
$ 56,832 - 85,248
$ 56,832 - 85,248
$ 56,832 - 85,248
$ 47,880 - 60,588
$ 56,832 - 85,248
$ 56,832 - 85,248
$ 56,832 - 85,248
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 / 111
MISCELLANEOUS STATISTICAL INFORMATION Table 16
December 31, 1993
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 30,685 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 75,320, of which 36,710 are registered voters. A total of 21,885 (est.)
people are employed within the City limits.
NUMBER OF CITY EMPLOYEES
On December 31, 1993, the City employed 117 full time salaried, 4 part-time hourly, and 34 temporary employees.
There were no commissioned police officers or uniformed firefighters. No unions represented City employees
during 1993.
112 / City of Federal Way
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 1993
(continued)
RECREATIONAL FACILITIES
18 Developed park sites covering 222.46 acres.
2 Undeveloped park sites covering 131.5 acres.
18 Public tennis courts, two which are owned by the City.
2 Public swimming pools, both which are owned by King County.
2 Trails (3.5 miles) covering 117.8 acres.
OTHER CITY -OWNED FACILITIES
1 Park maintenance facility.
1 5 acre undeveloped site.
1 Retreat Center.
1 Community/Senior Center.
PUBLIC EDUCATION
1991
1992
1993
20 Elementary schools with enrollment of .............
10,957
11,138
11,351
5 Middle schools with enrollment of ...............
4,153
4,382
4,468
3 High schools with enrollment of .................
3,417
3,718
3,781
3 Alternative schools with enrollment of .............
300
250
256
TOTAL ENROLLMENT .....................
18,827
19,488
19,856
1,057 Certified full-time equivalency teachers.
57 Certified full-time equivalency administrative staff.
MILES OF STREETS, ETC.
Streets (Center Line Miles) .................... .... ... 226.4 miles
SIGNALS/STREET LIGHTS
City owned traffic signals maintained by
Department of Transportation ....................... 18
City owned traffic signals maintained by King County 17
Street lights owned by City of Federal Way ............... 128
Street lights owned by Puget Power ................... 653
City of Federal Way / 113
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 1993
(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:
1991
1992
1993
Rape ........ . ... . .....................
96
109
131
Robbery ........................... . ....
127
134
128
Homicide ...............................
1
6
3
Assault .................................
186
219
985
Auto Theft ...............................
535
603
552
Burglary ................................
883
906
804
Larceny ................................
3,890
3,840
3,844
Citations:
Traffic ................................. 10,862 13,159 13,284
Judicial System:
Handled by District Court 9,276 12,311 12,043
Jail Facility: King County Jail used at $43.49 per day per person, plus $76.61 booking fee per person.
FIRE AND MEDIC 1 INFORMATION
1991 1992 1993
Fire Responses:....... ...................... 1,723 1,796 1,702
Emergency Medical: ......................... 4,807 4,956 4,962
(Fire and Medic I information reflects the greater Federal Way area, which is served by Fire District #39.)
114 / City of Federal Way
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 1993
(continued)
BUILDING RELATED PERMITS AND VALUES
1991
1992
1993
Building permits ...........................
536
575
571
Estimated Value (In Millions $) ..................
$35.9
$52.9
$60.4
Other Building Related Permits ..................
1,058
1,250
1,174
Estimated Value (In Millions $) ............ .
.... . $8.3
$7.9
$5.2
TAXABLE SALES (In Millions $)
1991 1992 1993
Retail Sales .............................. $770.1 $812.5 $877.0
Real Estate Sales ........................... $270.5 $256.8 $281.2