2001 Annual Comprehensive Financial Report (01-001)City of Federal Way, Washington
COMPREHENSIVE
ANNUAL FINANCIAL
REPORT
Year Ended December 31, 2001
Prepared by
Management Services Department
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2001
Table of Contents
Statement
Reference Page
INTRODUCTORY SECTION
Letter of Transmittal ............................ ..
City Officials and Administrative Officers............................................................................................... I
City Functional Organization Chart ........................................................................................................... 2
GFOACertificate of Achievement ............... --...... ........................................ ................................. :.— ..... 3
FINANCIAL SECTION
Auditor's Opinion...........................................................................................................................
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 -
AllGovernmental Fund Types................................................................................................................ 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 -
AllProprietary Fund Types...................................................................................................................... 4 14
Combined Statement of Cash Flows - All Proprietary Fund Types............................................................ 5 15
Notes to the Financial Statements ...... ...... ............. --....... ............... .......................................................... 16
Combining, Individual Fund and Account Group
Statements and Schedules
GeneralFund............................................................................................................................................. 47
Comparative Balance Sheet.................................................................................................................... 48
Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance .............................. 49
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budgetand Actual................................................................................................................................ 50
Schedule of Expenditures Compared to Budget ... ...... :....................... ......................... :.............. .:.......... 51
SpecialRevenue Funds............................................................................................................................. 55
CombiningBalance Sheet...................................................................................................................... 56
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................... 58
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budgetand Actual................................................................................................................................ 60
DebtService Fund.................................................................................................................................... 67
Comparative Balance Sheet.................................................................................................................... 68
Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance .............................. 69
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budgetand Actual.............................................................................................................................. 70
CapitalProject Funds............................................................................................................................... 71
CombiningBalance Sheet...................................................................................................................... 72
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ....,...:::.:;:..:,...:.......... 73
Table of Contents (Cont'd)
Combining, Individual Fund and Account Group
Statements and Schedules (continued]
Table Page
EnterpriseFund........................................................................................................................................ 75
CombiningBalance Sheet...................................................................................................................... 76
Combining Statement of Revenues, Expenses and Changes in Fund Equity ......................................... 77
Combining Statement of Cash Flows..................................................................................................... 78
InternalService Funds............................................................................................................................. 79
CombiningBalance Sheet...................................................................................................................... 80
Combining Statement of Revenues, Expenses, and Changes in Fund Equity ......... ....... I....................... 81
Combining Statement of Cash Flows..................................................................................................... 82
General Fixed Assets Account Group..................................................................................................... 83
Schedule of General Fixed Assets - By Source...................:.................................................................. 84
Schedule of General Fixed Assets - By Function and Activity............................................................... 85
Schedule of Changes in General Fixed Assets - By Function and Activity ............................................ 86
STATISTICAL SECTION
General Governmental Expenditures and Other Uses by Function -
General, Special Revenue and Debt Service Funds................................................................................
1
88
Schedule of Major Revenues and Other Financing Sources by Source -
General, Special Revenue and Debt Service Funds................................................................................
2
89
Tax Revenue by Source - General, Special Revenue and Debt Service Funds ...........................................
3
90
Property Tax Levies and Collections..........................................................................................................
4
91
Assessed and Estimated Actual Value of Taxable Property .......................................................................
5
92
Property Tax Levies - Direct and Overlapping Governments.....................................................................
6
93
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita ..........................
7
94
Computation of Limitation of Indebtedness...............................................................................................
8
95
Computation of Direct and Overlapping Debt............................................................................................
9
96
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total
General Governmental Expenditures......................................................................................................
10
97
DemographicStatistics...............................................................................................................................
11
98
Property Value, Construction, and Bank Deposits.- ..................... 17 ...........................................:...:...............
12
99
PrincipalTaxpayers....................................................................................................................................
13
100
Schedule of Insurance in Force ............ ........ --........ ........... .............. ...... ...................... ......... ....................
14
101
Salaries and Surety Bonds of Principal Officials ........................................................................................
15
103
Miscellaneous Statistical Data....................................................................................................................
16
104
ii
CRY OF
�VAY FrYor
August 9, 2002
People of the City of Federal Way
Honorable Mayor and City Council
THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF FEDERAL WAY
The comprehensive annual financial report of the City of Federal Way for the year ended December 31,
2001 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 officials. The financial 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, including the Valley Communications Center
joint venture in which the City became a member city effective January 1, 2000.
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 from of government. The City
Council consists of seven council members, all of whom are elected at large by citizens of Federal Way to
serve four-year terms. The City Manager, who serves as the chief executive officer, is responsible for day-
to-day administration of personnel, policies and programs. He is appointed by, reports directly to, and
serves at the pleasure of the City Council.
City services provided include: police protection, construction and maintenance of streets, building
inspection, municipal court services, jail services, planning and zoning, park services, surface water
management and general administration, including finance. Services for a land use hearing examiner are
contracted. The City continues to have seven major departments consisting of City Manager; Law;
iii
Management Services; Parks, Recreation, and Cultural Services; Public Safety; Public Works; and
Community Development. Fire protection and emergency medical services are provided by Fire District
No. 39. The Lakehaven Utility District delivers water and sewer services. Metro provides public
transportation services. Public housing services are the primary focus of the King County Housing
Authority. The King County Library System engages City residents through its library and reference
services. School District No. 210 offers educational programs for kindergarten through high school
students, in addition to vocational training.
ECONOMIC TRENDS
The City of Federal Way incorporated on February 28, 1990. It is the seventh largest city in Washington
State with a population of 83,890 as of April 1, 2001. Federal Way is located on a plateau adjacent to
Puget Sound in King County, eight miles north of downtown Tacoma and 25 miles south of downtown
Seattle. The City occupies approximately 21.5 square miles, and is served by Interstate 5 and state
highways 99 and 509.
CITY OF FEDERAL WAY
Population Trends -1970 to 2001
90,000
8(),000 76" i35fxl 15.31 75;Jriu 7V'1 71�,31r `
�3tili 74 , _ _ _ r _
u mill -
� S'
70.000
60,000 -
50.000 -
40.000 1.7,X4' -
30,000
20,000 - -
10;000 -
1970 1980 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
The population in the area known as the City of Federal Way has grown at a moderate pace over the past
few years, with the population as of the 2000 census is 83,259. The 2001 population figure of 83,890,
provided by the State Office of Financial Management, is an increase of .76% from the 2000 figure of
83,259.
In 2001 there were 32,855 housing units in Federal Way. Of these units, 50% were single family, 45%
multi -family units and 5% mobile homes and trailers. These statistics for housing units show an increase of
approximately .5% over 2000.
The community is residential and commercial, with the populace employed locally and in the neighboring
cities such as SeaTac, Kent, Tacoma, Bellevue, and Seattle. Employment in Federal Way is highly
concentrated in retail and services sectors which respond primarily to the needs of the local market area
population. The employment figure for 2001 is estimated at 29,638. Major employers are the SeaTac
Mall, Weyerhauser, Federal Way School District, St. Francis Community Hospital, World Vision,
Enchanted Parks, and U.S. Postal Bulk Mail Center.
IMA
CITY OF FIDII2AL WAY
Housing Units - 1970 to 2000
4n,nun
13,0011 ML
06 ?9,89= ]0 6 - 3% 71 3 -
30,000
I
25,000 M
j2o.o110 71• � -
1s.nncl
7 i
1u,00u 11
I
I� I
1970 1980 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
The City's 2001 taxable retail sales were $1,220 million, a less than 1% increase over 2000 sales of $1,212
million. The retail sector of the local economy is anchored by the SeaTac regional mall, Pavilion Centre,
Costco, Fred Meyer, Lowe's Home Improvement Center, and many other small businesses adjacent to the
City center. According to a listing of businesses registered with the City of Federal Way and sorted by the
Standard Industrial Classification, the business economy appears to be configured as follows: retail trade
63.4%; services 11%; contracting 11.1%; wholesale trade 5.8%; transportation and public utilities 4%;
government 1.4%; manufacturing 1.3%, finance, insurance and real estate 1%, and other 1%.
In 2001, new improvements to real estate totaled $68.9 million or approximately 1.2% of the City's
assessed valuation. The total assessed value of taxable property in Federal Way was $5.6 billion which is
approximately 7.7% higher than the 2000 assessed valuation of $5.2 billion. Real Estate sales were
approximately $400 million in 2001 as compared to $429.9 million in 2000. A total of 463 building
permits and 1,693 other building related permits were issued in 2001. Estimated valuation was $69.1
million and $2.3 million, respectively. Significant building permits include: Foss Redevelopment, a 3-story
office building; Quadrant, a 2-story office building; Palisades Retreat Center; St. Francis Hospital; Best
Buy, a retail store; Lloyd Enterprises, a 2-story office and maintenance building; Albertsons, replacing the
old grocery store with a new one and Hawthorne Suites, a 65 unit hotel.
The recession that officially began in March 2001 is nearing the end. A combination of factors has helped
to keep the downturn brief and mild including tax cuts and interest rate cuts that were already in progress,
increases in defense and homeland security spending in the wake of September 11, and surprisingly
resilient U.S. consumers.
While the U.S. economy appears to be on the verge of recovering from a relatively shallow recession, it is
now apparent that Washington state's employment downturn has been more severe than in all but two of
the recessions of the last forty years (1981-82 and 1969-71). Construction and business services were
particularly weak in 2001.
Prior to September 11 Washington aerospace employment had risen in the first three quarters of 2001. In
the wake of the attacks Boeing announced intentions to cut 20,000 to 30,000 jobs company wide with the
vast majority in Washington State. Due to aerospace employment reductions, declines in manufacturing
industries and the end of a four-year construction boom overall employment growth slowed in fiscal 2001
to 1.4 percent from 2.3 percent in 2000.
V
Inflation in the Puget Sound Region was up 3.6 percent for 2001, just slightly lower than the 3.7 percent
posted in 2000. This is a relatively high level compared to inflation in the entire U.S. at 1.6 percent in
2001.
Nominal personal income growth slowed sharply in fiscal 2001 to 3.6 percent from 7.5 percent the previous
year. Excluding the impact of software stock options on personal income, there would have been an
increase in personal income growth in 2001 to 6.3 percent from 5.7 percent in 2000.
Washington real personal income growth fell sharply to 1.1 percent in fiscal 2001 from 5.1 percent in 2000
and more than 6 percent for each of the prior three years. No real personal income growth is expected in
2002 and moderate growth is forecast for 2003.
The recovery in Washington is expected to be unusually slow. While it is forecast that there will be a weak
national recovery, Boeing is expected to continue reducing is workforce through 2003. Employment
growth in the Puget Sound region is forecast to be relatively flat in 2002 with marginal growth in early
2003. The region's economy is forecast to expand at a moderate pace with growth likely to be much more
restrained than it was in the late 1990's.
SIGNIFICANT EVENTS AND ACCOMPLISHMENTS
Since the City officially incorporated on February 28, 1990, 2001 was the eleventh year of service to the
community.
In 2001, we saw the results of the federal government's Census 2000, which showed that Federal Way was
not only much larger than thought at nearly 84,000 people, but also more diverse. Federal Way's African -
American and Asian -American populations more than doubled, and our Latino population almost tripled.
Federal Way is clearly a destination for people, both in the Puget Sound area and throughout the world.
Two thousand one saw a number of new faces at the city. We welcomed new City Council member Eric
Faison, Assistant City Manager Donna Hanson, Police Chief Anne Kirkpatrick, saw the promotion of
Community Development Director Kathy McClung, and announced the hiring of Deputy Community
Development Director Patrick Doherty to manage the city's economic development programs.
Significant progress was made on our efforts to create a denser and more vital city center. $3.37 million in
improvements to the intersection of Pacific Highway South and South 320th Street were completed, to both
reduce congestion and add decorative features such as trees and lighting, which enhance the area. Work is
underway on an $8.47 million project to improve congestion and add decorative features to 23rd Avenue
South. in conjunction with those two projects, the city constructed $1.9 million in improvements to South
320th Street. And a $3 million project to improve drainage and prevent future flooding in the downtown
area was completed.
The Public Works Department constructed $1.27 million in asphalt overlays throughout Federal Way,
emphasizing streets most badly in need of a new surface. These overlays continue the city's policy of
maintaining roads on a timetable that saves tax dollars by preventing the need for actual road replacement
in the future.
Other facets of economic development gathered steam in 2001. There was continued rapid development in
East Campus, a testament to Weyerhaeuser's and Quadrant's commitment to Federal Way and their success
at marketing our community.
The following parks capital projects were completed in 2001. The $730,000 new BPA Trail Phase III
opened in October, creating another pedestrian connection through the heart of our city. The highly
popular and much -anticipated Skate Park was opened in August. Play structures were installed or replaced
at four parks: Celebration Park, Alderbrook Park, Wedgewood Park, and Heritage Woods Park.
V1
Perhaps the most important initiative of 2001 was the city's budget process. While other governments are
facing severe financial crises due to recent initiatives and the state of our economy, Federal Way continues
to be fiscally sound. This is clearly a result of the city's excellent fiscal policies and conscientious City
Councils that have kept one eye on the future and consistently adopted sustainable budgets.
A recent survey by our Finance Division found that Federal Way has lower per -capita revenues and
expenditures than other cities in King County. Federal Way is the third largest city in King County, but is
only 33rd of the 37 cities in King County in per -capita taxes and fees.
During the 2001 budget adjustment process, the City Council took advantage of jail cost savings and
unused property tax capacity - a product of past Councils' fiscal discipline - to ensure that the Federal Way
Police Department will have at least 10 officers on every shift. This was accomplished not by adding 10
new officers, but by a combination of redeploying officers from administrative positions to patrol, hiring
lower cost, civilian positions, and adding a limited number of new officers. These new officers not only
allow us to better manage and respond to day-to-day calls for service, but also help us be prepared for
public safety emergencies in these uncertain times following September 11th.
Jail cost reduction efforts were significant, having saved the city $200,000 this year. For comparison's sake,
$200,000 was the entire jail budget 10 years ago. These savings were achieved by contracting with lower -
cost jails in Fife and Eastern Washington, impounding cars driven by suspended drivers, using electronic
home monitoring in lieu of jail time, and reducing "failure -to -appear" arrests by phoning people and
reminding them of their scheduled court hearings.
OUTLOOK FOR THE FUTURE
Long Term
Housing and Population
• Preserve the predominantly single-family character and appearance of the community by
establishing population densities consistent with neighborhood and city-wide 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/Industrial
• Provide employment opportunities within the community by attracting new industries and
professional offices.
• Establish well-defined and limited neighborhood business centers to provide convenient
services to adjacent neighborhoods without adversely impacting neighborhood quality.
• Control strip development on major arterials while maintaining existing vital businesses.
• Define and implement a development and design concept for the City Center that establishes
vibrant focal point and identity in 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.
vii
• Establish design standards for commercial areas that are closely related to their function but
encourage attractive appearance and protection of the environment.
• Protect industrial areas from encroachment by other uses and upgrade the quality of existing
industrial areas.
Open Space
• Identify and preserve open spaces to maintain the natural beauty of the community and to
provide views, protection of sensitive areas, recreation and other benefits.
• Protect as open space natural systems and natural features recognized for their sensitivity to
urban development 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: 1) maintain its relative fiscal strength; 2) facilitate the
maturation of its municipal corporation; 3) make City government easier to access, understand, and
participate in; 4) realize the community's values and preferences; and 5) improve the quality of life for its
people as well as the climate for business activities. Council and staff worked together and identified the
following broad goals for the 2001-2002 biennial budget:
I Be Responsible and Responsive to the Voters' Message
• Operate the City in an entrepreneurial and fiscally responsible manner with focus on both
revenue generation as well as expenditure control;
• Make responsible program choices in balancing the budget such that the City does not
penalize the voters.
II Enhance Public Safety in the Community
• Recognize that public safety continues to be the top priority of the Council;
• Look at an integrated public safety strategy that involves all facets of City operations
such as licensing, code enforcement, police, prosecution, and court services;
• Analyze the police/court facility options and prepare an implementation plan.
III Invest in our Community's Future
• Aggressively implement the City Center vision;
• Identify sustainable capital funding sources;
• Recognize the importance of programs for families and youth.
IV Improve Communication of and Accessibility to Government Services
• Make government service more accessible and user-friendly through the application of e-
Commerce and e-Government.
Viii
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, 2001 indicated that there were no material weaknesses in the internal control
structure.
Budgetary Controls
The City maintains budgetary controls in accordance with the Revised Code of Washington (RCW
35A.33). The objectives of these budgetary controls are to ensure compliance with legal provisions
embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund,
some Special Revenue Funds, and Debt Service Fund 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 project -length based Special Revenue Funds, and the Capital
Projects, Enterprise and Internal Service funds are management budgets only and therefore these budgets
are not represented in the CAFR. 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 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 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.
1x
GENERAL GOVERNMENT FUNCTIONS
Overview
The general governmental analysis will include the General Fund, all Special Revenue Funds and Debt
Service Fund.
2001 vs 2000 FINANCIAL PERFORMANCE
General, Special Revenue and Debt Service Funds
50.0
45.0
40.0
35.0
n ° 30.0
0 E
25-0
20.0
15.0
10A
5.{
2001 vs 2000 FINANCIAL PERFORMANCE
General Fund
30-0
230
_.
20-0
n` o
E
15.0
10-0
4.8
g'-
5-0
• Li
L
I 2000
Beginning Fund .. I ?�I
Balance Revenues - -
Expenditures
Ending Fund
Balance
X
Overall financial performance in the General Fund, Special Revenue Funds and the Debt Service Fund was
positive in 2001. Revenues and other sources of funds totaled $45.5 million compared to $45.0 million for
2000. This results in an increase of $.5 million or L I %. Expenditures and other uses of funds totaled $43
million compared to $41.5 million for 2000, an increase of $1.5 million or 3.6%. Aggregate fund balances
for these funds ended the year totaling $22.5 million, which is approximately a $2.5 million increase.
However, excluding the interfund transfers, the revenues were nearly level, decreasing only by $.1 million
or less than 1 % and expenditures increased by $.5 million or 1.6%.
The General Fund ended 2001 with an $8,264,467 fund balance. This was a $1,644,022 or 25% increase
over the fund balance at the end of 2000. General Fund revenues increased only $18,088 over 2000, less
than .1%. The expenditures increased by $597,080. This increase is approximately 2.4% and is attributable
to step and contract increases for salaries.
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 2001 calendar year.
GENERAL, SPECIAL REVENUE, AND HEAT SERVICE FUNDS
Revenues and Other Financing Sources
Faxe
2001
_ .. �.al =_
Change
'4onullt Percent
$ 29,721,513
$ 28,495,459
S 1,226,054
4.3%Permits
1,396,694
1,434,027
(37,333)
-2.6°/
Intergovernmental
4,365,098
5,251,899
(886,801)
-16.9°/
Services/Charges
2,525,488
2,219,948
305,540
13.80/
Fines/Forfeitures
830,668
902,762
(72,094)
-8.00
Interest Eamin s
803,300
1,258,502
(455,202)
-36.20/ci
Miscellaneous
487,692
661,826
174,134
-26.30/c,
Other Financing Sources
5,329,334
4,814,672
514,662
1 10.70/
Total Revenues
$ 4=,459,787
5 45,039,095
S 420,692
1 0.9
2001 REVENUES AND OTHER SOURCES
General, Special Revenue and Debt Service Funds
Miscellaneous
1.1 % Other Financing
Sources
Interest Earnings _ 11.7%
1.8%
Fines/Forfeitures
1.8% mil, i
Taxes
— — 65.4%
Services/Charges
5.5% ---
Intergovernmental
9.6% Licenses/Permits
3.1%
Xi
The most significant dollar increase was in taxes. The increase of $1,226,054 is due primarily to the
additional gambling taxes ($585,743), utility taxes ($549,602), property tax ($258,270) and sales tax
($142,291). All utility taxes are receipted into a special revenue fund, and are transferred to the debt
service fund as needed. Intergovernmental revenue is down $886,801 compared to 2000 due primarily to
reduced grant revenue. Interest earnings decreased $455,202 from 2000, a result of the weakened economy.
Exnenditure 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, 2001.
GENERAL, SPECIAL REVE'VI.IE, A1tiD DEBT SERVICE FUNND5
Er enditures by Funetlna
Change
Amount Perce+n.
2001
,,.,_...... -_ 1040
General Government
$ 4,724,252
$ 4,237,852
$ 486,400 11.5%
Security of Persons & Property
14,264,309
14,046,638
217,671 1.5°%
Physical Environment
378,066
318,709
59,357 18.6°!a
Transportation
4,554,183
4,661,867
(107,684) -2.3°J
Economic Environment
2,679,174
2,634,011
45,163 1.7
Health
535,589
546,191
(10,602) -1.9°%
Culture & Recreation
2,951,607
3,034,818
(83,211) -2.7%
Capital Outlay
176,551
508,919
(332,368) -65.3%
Debt Service -Principal
2,700,478
2,498,853
201,625 8.1°%
Debt Service -Interest
1,797,614
1,729,858
67,756 3.9%
Other Financing Uses
7,928,949
7,032,608
896,341 12.7%
Residual Equity Transfers Out
216,209
293,246
(77,037)-26.3°%
Total Expenditures
5 42,906.981
41,543,M
1 $ -t;W41T -3.3°%
2001 EXPENDITURES BY FUNCTION
General, Special Revenue and Debt Service Funds
Other Financing Uses rGeneral Government
19.0% 11.0%
Debt Service
10.5%
Capital Outlay Public Safety
0.4% 33.3%
Culture & Recreation
6.9%
Transportation �_ Physical Environment
Health Economic 10.6% 0.9%
1.2% Environment
6.2%
The increase in general government is partially a result of staff positions in the City Manager's office and
Municipal court not being filled until the end of 2000 or early 2001. Facility and other support services to
Municipal Court were recorded in Municipal Court's budget beginning in 2001. Reductions in capital
x11
outlay are primarily attributable to reductions in roads construction projects. The increase in other
financing uses is due to the transfer of reserves to internal service funds.
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE f-UNDS
Ex pendirares by Mject
object
2001
2000
Change
•fmounr Percent
Personal Services
18,073,717
$ 17.292,149
$ 781,568
4.50%
supplies
753,945
640,026
113,919
17.80K
Other Services and Charges
3,892,515
4,288,826
(396,311)
-9.20/c,
intergovernmental
11,013,925
10,363,806
650,119
6.3%
Capital Outlay
1,355,040
2,004,853
(649,813)
-32.4%
Debt Service -Principal
2,700,478
2,498,853
201,625
8.1OK
Debt Service -Interest
1,797,614
1,729,858
67,756
3.90/a
[nterfund Services
3.319,747
2,725.199
594,548
21.8%
Total Expenditures
S 42.906,981
S 411543,570
S Ta63,X71 3.3%
2001 EXPENDITURES BY OBJECT
General, Special Revenue and Debt Service Funds
Interfund Services
Debt Service -Interest 7.7%
4.2%
Debt Service -Principal
6.3%
f �!
Capital Outlay
3.1%
Intergovernmenl
25.7%
Fund Balance
_Supplies
Other Services & 1.8%
Charges
9.1%
Personal Services
42.1 %
Overall fund balances in the General, Special Revenue, and Debt Service Funds totaled $22,487,115 in
2001 compared to $19,934,309 in 2000, an increase of $2,552,806 or 12.8%. This increase is in part
attributable to an increase in utility taxes, sales tax, property tax and gambling taxes collected.
X111
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
Anal •sb of Fuad Balance
Change
Amount Percent
Fund Balance
2001
2000
General
$ 8,264,467
$ 6,620,445
$ 1,644,022 24.8OX
Special Revenue
Street
275,926
-
275,926 na
Arterial Street
719,952
487,494
232,458 47.70/ci
Utility Tax
6,170,755
4,407,436
1,763,319 40.00/c
Solid Waste/Recycling
199,344
275,459
(76,115) -27.60/c
Special Contracts/Studies
123,881
111,048
12,833 11.60/c
Snow & Ice Removal
100,000
(100,000)-100.0%
Hotel/Motel Lodging Tax
150,549
58,484
92,065 157.4%
2% for the Arts
28,114
19,274
8,840 45.9%
Community Development Block Grant
4,140
6,439
(2,299) -35.7%
Paths and Trails Reserve
41,863
32,414
9,449 29.2%
Strategic Reserve
-
1,728,294
(1,728,294)-100.0%
Airport Strategic Reserve
-
300,000
(300,000) -100.0%
Subtotal Special Revenue
7,714,524
7,526,342
188,182 2.5%e
ebt Service
6,508.124
5,787,522
720,602 12.5%
22;i97,115
`S - — i�r;'s34;3UtJ
5 2S52RI1� �#i
2001 ENDING FUND BALANCE
General, Special Revenue and Debt Service Funds
General Fund
36.8%
Debt Service Fund _
28.9%
r
Special Revenue
Funds
34.3%
PROPRIETARY OPERATIONS
In 2001, the City utilized five internal service funds to account for activities related to risk management,
management information systems, mail and duplication, 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.
X1V
The City established an enterprise fund during 1993 to account for the acquisition and operations of the
Dumas Bay Centre, a retreat facility, which was purchased with King County open space and conservation
futures funding. In 1998, the Knutzen Family Theatre was added to the Dumas Bay Centre Fund. The
theatre's maintenance and operation expenses are partially funded with utility tax. This subsidy is recorded
as an operating transfer.
During 2000, the City established the Surface Water Management Fund as an enterprise fund and
reclassified it from a special revenue fund. The Surface Water Management Fund is used to account for the
Storm Drainage operations and capital construction, maintenance and replacement of infrastructure.
DEBT ADMINISTRATION
The City's outstanding debt is approximately .6% of its taxable assessed valuation. As of December 31,
2001, the City's remaining debt capacities are summarized as follows:
General Government (no vote required) $66,391,518
General Government (3/5 majority vote required) $56,206,353
Parks and Open Space (3/5 majority vote required) $140,515,882
Utilities (3/5 majority vote required) S 140.515.882
Total Capacity $403,629.635
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
The City began investing outside the State Investment Pool in November 1994. Based on an adopted
investment policy the City operates a conservative cash management program, investing surplus cash as
determined by anticipated cash flow needs. Investment decisions are based on established investment
policies in compliance with Washington State statutes, with consideration given first to safety, secondly to
liquidity, and lastly to yield. The City's portfolio at December 31, 2001 consisted of a U.S. Government
agency security and investments in the Washington State Investment Pool, with maturities ranging from
one day to two and '/z months.
Safeguarding assets is of primary concern for the City. Pursuant to the Governmental Accounting
Standards Board (GASB) statement #3, the City provides detailed disclosure regarding the risk associated
with deposits and investments held by the City. GASB statement #3 established a categorization of
investments and deposits based on risk. Category 1 includes investments that are either insured, registered,
or held by the City or its agent in the City of Federal Way's name; category 2 includes uninsured and
unregistered investments held by the counter party's trust department or agent in the City's name; and
category 3 includes uninsured and unregistered investments held in the counter party's trust department or
agent, but not in the City's name. This categorization is included in note 4 of the general purpose financial
statements. In order to assure the highest degree of safety on all City investments, a safekeeping agreement
was established for all securities purchased by the City prior to implementing our in-house investment
program during 1994.
The Washington State Treasurer manages a State Investment Pool for use by any city, county, town,
municipal corporation, or special taxing district within the state. Municipalities determine the amount and
length of investment in the pool based on individual cash flow needs. Interest is earned on the pool's actual
experience for the month, less an administrative fee equivalent to five basis points (.05%). At December
31, 2001, the City had $54,563,156 invested in the State Investment Pool. In 2001, the average monthly
earnings rate for the entire portfolio was approximately 4.39% as compared to the average monthly
earnings rate for the State Investment Pool of 4.19%.
xv
RISK MANAGEMENT
The City maintains insurance against most normal hazards except for unemployment insurance, for which it
has elected to become fully self -insured. Related premiums received by the Risk Management Fund are
used to reimburse the State Employment Security Department for unemployment benefits paid to eligible
individuals, and to establish reserves for the payment of estimated future unemployment claims liability.
Through its Risk Management Fund, the City is also recovering insurance premium costs for general
liability coverage and building reserves for a future general liability self-insurance program. During 2001,
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-133. The 2001 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 2001. 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 Achievement for Excellence in Financial Reporting to the City of Federal Way for its
comprehensive annual financial report (CAFR) for the year ended December 31, 2000. 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.
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 eleven years (fiscal years ended 1990 - 2000). 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 biennial budget for the years beginning January 1, 2001 and 2002. 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.
xvi
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 Dong Chou, Jeri-
lynn Clark, Tho Kraus, and Dwight Shiotani.
In addition, staff in all City departments should be recognized for responding so positively to the requests
for detailed information which accompany each annual audit. The role of the State Auditor's Office should
also be acknowledged as a significant contribution to a fine product.
Finally, we wish to express our appreciation to the Mayor and City Council for their ongoing support and
for providing the firm foundation for the pursuit of excellence in all realms of professional endeavors.
Respectfully submifco,
-Dien Wang Michael L. Olson
Management Se vices Director Management Services Deputy Director
CITYJOF�
City of Federal Way/1
JEANNE BURBIDGE
Mayor
CITY OFFICIALS
DEAN MCCOLGAN
Deputy Mayor
MARY GATES MICHAEL HELLICKSON LINDA KOCHMAR
Councilmember Councilmember Councilmember
DAVID MOSELEY
City Manager
OTHER ADMINISTRATIVE OFFICERS
ERIC FAISON
Councilmember
MICHAEL PARK
Councilmember
CityAttorney.................................................................................................................................................. Bob Sterbank
CityClerk........................................................................................................................................................... Chris Green
Community Development Director..............................................................................................................Kathy McClung
Management Services Director...........................................................................................................................Iwen Wang
Parks, Recreation and Cultural Services Director.....................................................................................Jennifer Schroder
PublicSafety Director............................................................................................................................... Anne Kirkpatrick
PublicWorks Director........................................................................................................................................... Cary Roe
City of Federal lay /2
Municipal Court
David Tracy
*Adjudicates Cases
•Probation Services
*Indigent Defense Screening
Staff: 13.6
community
Development
KathyMcClung
•Current Planning
*Land Use
*Building Permits/
Inspections
•Code Compliance
Staff: 29
Peo le of Federal Way
Mayor and Ci Council
Jeanne Burbidge, Mayor
Dean McColgan, Deputy Mayor
Erick Faison, Mary Gates
Michael Hellickson
Linda Kochmar, Michael Park
City Manager
David Moseley
Staff:
Parks, Recreation
& Cultural Services
Jennifer Schroder
*Recreation Programs
•Ground Maintenance
•Park Operations
•Community/Sr Center
*Facility Maintenance
*Dumas Bay Centre
*Civic Theatre
Staff: 27
City Attorney
Bob Sterbank
*Civil Legal Services/
Litigation
•Prosecution
•Advise Council
Boards, Commissions
& staff
•Advire/Draf-ing
Ordinances
Staff: li
5
Public Safety
Anne Kirkpatrick
•Drug Awareness
Resistance Education
•Crime Analysis/
Prevention
•Traffic Enforcement
•Investigation
*Jail Services
Staff. 142.5
Boards and Commissions
•Arts Commission
•Diversity Commission
•Ethics Board
•Human Services Commission
•Parks & Recreation Commission
*Planning Commission
*Youth Commission
Boards and Commissions
•Civil Service Commission
Public Works
-Development Services
*Street Maintenance
*Traffic Operation
*Surface Water Mgmt
*Solid Waste/
Recycling
•Neighborhood
Safety
*Transportation
-System Planning
Staff: 38.5
Management
Services
Iwen Wang
•City Clerk
*Finance
*Human Resources
*Risk Management/
Purchasing/Fleet
•Systems
Staff: 24
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, 2000
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.
uNrij srSTA
� �a�n
CANAM n
MPOAT s 1 Pr silent
sM ,-
OICKSO �
i�J.
rf-�
Executive Director
The Government Finance Officers
Association of the United Sates
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 (CAFR) for the fiscal year
ended December 31, 2000. This
was the eleventh consecutive year
that the government has achieved
this prestigious award. In order
to be awarded a Certificate of
Achievement, a government must
publish an easily readable and
efficiently organized
comprehensive annual financial
report. This report must satisfy
both generally accepted
accounting principles and
applicable legal requirements.
A Certificate of Achievement is
valid for a period of one year
only. We believe that our current
comprehensive annual financial
report continues to meet the
Certificate of Achievement
Program's requirements and we
are submitting it to GFOA to
determine its eligibility for
another certificate.
Legislative Building
PO Box 40021
Olympia, Washington 98504-0021
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
August 9, 2002
The Honorable Mayor and City Council
City of Federal Way
Federal Way, Washington
(360) 902-0370
FAX (360) 753-0646
TDD Relay 1-800-833-6388
http://www.sao.wa.gov
We have audited the accompanying general purpose financial statements of the City of Federal Way, King County,
Washington, as of and for the year ended December 31, 2001, 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 general purpose financial statements referred to above present fairly, in all material respects, the
financial position of the City of Federal Way, King County, Washington, as of December 31, 2001, and the results of
its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a
whole. 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. Such information has been subjected to
the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly
stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
The other data included in this report, designated as the statistical section in the table of contents, has not been
audited by us and, accordingly, we express no opinion on such data.
Sincerely,
C� 'e-,
BRIAN SONNTAG, CGFM
STATE AUDITOR
N
C41 T Y* FV�:r
V��L
General Purpose
Financial Statements
City of Federal Way / 8
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
December 31. 2001
ASSETS
Equity in pooled cash and investments (note 4)
Cash with escrow agent (note 4)
Prepaid insurance/postage
Receivables (net):
Taxes (note 5)
Accounts and contracts
Interest
Due from other fundslnterfund loans receivable (note 12)
Due from other governments (note 5)
Investment in joint venture (note 17)
Property/equlpmentlimprovements (net) (note 7)
Construction work in progress (note 7)
Amount available in debt service funds (note 11)
Amount to be provided for retirement of
long-term debt (note 11)
TOTAL ASSETS AND OTHER DEBITS
LIABILITIES AND FUND EQUITY
Liabilities:
Vouchers payable
Accounts/payroll payable
Retainage payable
Retainage payable - with escrow agent
Due to other governments (note 6)
Due to other funds/inlerfund loans payable (note 12)
Deposits payable
General obligation bonds (note 11)
Long-term loan payable
Public works trust fund loan payable (note 11)
Certificates of participation payable (note 11)
Deferred revenue
Compensated absences payable (note 11)
TOTAL LIABILITIES
Fund equity and other credits:
Contributed capital (note 13)
Investment In joint venture/general fixed assets (note 7)
Retained earnings:
Unreserved
Fund balance:
Reserved for.
Interfund loans
Debt service
Paths and trails
Petty cash/change fund/advance lravel/iinvestigative funds
Police special funds
Prepaid insurance
Unreserved:
Designated for snow & ice removal
Undesignated
TOTAL FUND EQUITY AND OTHER CREDITS
TOTAL LIABILITIES & FUND EQUITY & OTHER CREDITS
See accompanying notes to financial statements.
Statement 1
Governmental Fund Types
Special
Debt
Capital
General
Revenue
Service
Projects
$ 7,643,451
$ 8,268,714
$ 6,491,454
$ 16,738,471
-
-
-
148,426
11,850
-
459,291
692,425
-
398,673
13,868
-
35,924
3,080
2,590
2,243
5,988
10,000
-
1,274,475
143,863
382,740
897.148
9,800,820
9.121.460
8 8876,437
17,B25,957
479,022
204,834
63
403,416
17,936
13,238
-
-
11,299
-
-
148,426
197,292
52,794
-
-
10,000
315,448
1,094,802
526,655
31,268
368,250
1,536,353
1,406,936
368,313
563,141
10,000
- 6,508,124
41,863 -
9,150
458,685
11,850
- 100,000 -
7,774,782 7,572.661 - 17,262,816
8,264,467 7,714,524 6,508,124 17,262,816
$ 9,800,1120 $ 9,121,460 $ 6,876.437 $ 17.826.967
Page 1 of 2
City of Federal Way / 9
Statement 1 (continued)
Proprietary
Account Groups
Totals
Intemal
General
General Long-
(Memorandum Only)
Enterprise
Service
Fixed Assets
term Debt
2001
2000
$ 7.889.010
$ 8,785,931
$
$ $
55,817,031 $
48,915,543
109,069
-
257,495
287,366
-
5,000
16,850
11,202
101,954
1,253,670
1,229,170
9,633
-
458,098
1,113,226
2,826
3,102
19,829
590,446
-
-
10,000
10,000
15,511
-
2.713,737
2,456,871
-
1,971,762
1,971,762
569,630
35,968,706
4,508,018
49,108,505
89,585,229
89,257.175
5,597,907
-
2,747.211
-
8,345,118
6,841.854
-
-
6,508,124
6,508,124
5,787,522
25,658,412
25,658.412
29,036,233
49,679.105
13,317,562
53,827,478
32.166,536
192 615,355
186,106,238
168,392
138,290
-
1,394.017
1,120.944
-
-
-
31,174
27.639
-
11,299
102,409
109,069
257,495
212,071
250,086
101,145
-
10,000
10,000
9,275
-
1,419,525
1,499,510
30,515.000
30,515,000
33,196,600
3,465,850
-
3.465,850
3,682,352
-
285,000
97,423
382,423
688,046
248,461
-
-
1,174,634
542,939
30.283
57,495
1.554,113
1.641,891
1,568,913
4,031,330
480,785
32,166,536
40,553,394
42,752,568
34,461.518
1,585,833
-
36,047,351
37,256,417
53,827.478
53,827,478
50,352,462
11,186,257
11,250;944
-
22,437,201
17,203,306
-
10,000
10,000
-
6,508.124
5,787,522
41,863
32,413
9,150
9,200
-
458.685
528,297
-
11,850
6,202
-
100,000
100,000
-
32,610,259
32,067,851
45,647,775
12,836,777
53,827.478
-
152,061,961
143,353,670
$ 49,679,105
$ 13,317.562
$ 53,827,478
$ 32.166,536 3
192,615,355 $
_186,106,238
Page 2 of 2
C41TY OF G
�VAY�
City of Federal Way / 11
Statement 2
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
ALL GOVENMENTAL FUND TYPES
For the Year Ended December 31, 2001
Governmental Fund Types
Totals
Special
Debt
Capital
(Memorandum only)
General
Revenue
Service
Projects
2001
2000
REVENUES:
Taxes
$ 21,489,570
$ 6,234,406
$ 1,997,537
$
$ 29.721,513
$ 28.495.459
Licenses and permits
1,301,940
94,754
-
1,396,694
1,434,027
Intergovernmental
1,512,274
2,852,824
4,344,202
8,709.300
7,507.624
Service charges and fees
2,053,779
471,709
890,162
3.415,650
3.530.274
Fines and forfeitures
830,668
-
-
830,668
902.762
Miscellaneous:
Interest
293,887
238,405
271,008
630,617
1,433,917
2.277.420
Other
460,621
27,071
-
-
487,692
911,836
TOTAL REVENUES
27,942,739
9,919,169
2,268,545
5,864,981
45,g55,434
45,059.402
EXPENDITURES:
Current:
General government
4,615.027
109,225
-
4,724,252
4,237,852
Security of persons and property
14,264,309
-
-
14,264,309
14,046,638
Physical environment
24,443
353.623
-
378,066
318,709
Transportation
-
4.554,183
-
4,554.183
4,661,867
Economic environment
2,570,254
108,920
2,679.174
2,634,011
Health
535,589
535.589
546,191
Culture and recreation
2.951,607
-
2,951,607
3,034.818
Capital outlay
49,791
126,760
-
7,697,662
7,874,213
4,423,067
Debt service:
Principal
-
2,700,478
-
2.700,478
2,498,853
Interest, fiscal charge and debt issue costs
-
1,797,614
-
1,797,614
1,729,858
TOTAL EXPENDITURES
25,011,020
5,252.711
4,498.092
7,697.662
42,459,485
38,131.864
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
2,931,719
4,666,458
(2,229,547)
(1,832,681)
3,535,949
6,927,538
OTHER FINANCING SOURCES (USES):
Proceeds of long -tern debt
-
-
-
_
Proceeds from sale of fixed assets
-
-
325,000
325,000
-
Operating transfers in (note 12)
268.111
2,111,074
2,950,149
254,046
5,583,380
9,254,008
Operating transfers out (note 12)
(1,342.535)
(6,586,414)
-
(90,725)
(8,019.674)
(9,060.277)
TOTAL OTHER FINANCING SOURCES (USES)
(1,07:,424)
(4,475.340)
2,950,149
488,321
(2,111,294)
193.731
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
1,857,295
191,118
720.602
(1,344,360)
1,424,655
7,121,269
FUND BALANCES AT BEGINNING OF YEAR
6.620,445
7,526,342
5,787,522
18.607,176
38,541,485
31,713,462
Residual equity transfers out (note 12)
(213,273)
(2,936)
-
(216,209)
(293 246)
FUND BALANCES AT END OF YEAR
$ 8,264,467
$ 7,714,524
$ 6,508,124
$ 17,262.816
$ 39,749,931
$ 38,541,485
See accompanying notes to financial statements.
City of Federal Way / 12
Statement 3
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
FOR WHICH ANNUAL BUDGETS HAVE BEEN LEGALLY ADOPTED
For the Year Ended December 31, 2001
General Fund
Special Revenue Fund
Variance
Variance
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budgo
Actual
(Unravorable)
REVENUES:
Taxes
$ 20,700,273
$ 21,489,570
$ 789,297
$ 6,137,900
$ 6,234,406
$ 96,506
Licenses and permits
1,546,474
1,301,940
(244,534)
101,236
74,754
(26,482)
Intergovernmental
985,485
1,512,274
526,789
2,698,788
2,610,502
(88,286)
Service charges and fees
1,731,192
2,053,779
322,587
311,360
471,709
160,349
Fines and forfeitures
901,794
830,668
(71,116)
-
Miscellaneous:
Interest
239,290
293,887
54,597
456,655
233,706
(222,949)
Other
333,716
460,621
126,905
-
27,071
27,071
TOTAL REVENUES
26,438,214
27,942,139
1,504,52.1
9.705,939
9,652,148
(53,791)
EXPENDITURES:
General Government
5,623,665
4,615,027
1,008,638
-
-
Security ofpersons and property
14,819,878
14,264,309
555,569
-
-
Physical environment
24,443
24,443
50,000
50,000
-
Transportation
-
-
406,730
353,623
53,107
Economic environment
3,125,570
2,570,254
555,316
5,678,072
4,554,183
1,123,889
Health
575,251
535,589
39,662
139,202
48,016
91,186
Culture and recreation
3,071,351
2,951,607
119,744
-
Capital outlay
178,470
49,791
128,679
Debt service:
Principal
Interest and other debt issue costs
_
_
TOTAL EXPENDITURES
27,418,628
25.011,020
2,407,608
6,274.004
5.005,822
U68,182
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
(980,414)
2,931,719
3,912,133
3,431,935
4,646,326
1,214,391
OTHER FINANCING SOURCES (USES):
Proceeds in long -tens debt
-
-
-
-
_
_
Operating transfers in (note 12)
351,881
268,111
(83,770)
2,566,936
2,089,086
(477,850)
Operating transfers out (note 12)
(1,820,385)
(1,342,535)
477.850
(6,663,743)
(6,563,668)
100,075
TOTAL OTHER FINANCING SOURCES (USES)
(1,468,504)
(1,074,424)
394,080
(4,096.807)
(4,47.4.592)
(377,775)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
(2,448,918)
1,857,295
4,306,213
(664,872)
171,744
836,616
FUND BALANCE AT BEGINNING OF YEAR
6,620,445
6,620,445
7,389,581
7,389,581
-
Residual equity transfers in (note 12)
-
-
_
-
-
Residual equity transfers out (note 12)
(410,516)
(213,273)
197,243
(3,647)
(2,936)
711
FUND BALANCE AT END OF YEAR
$ 3,761,011
$ 8,264,467
S 4,363.456
3 6,721.062
$ 7,558,389
S 837,327
See accompanying notes to financial statements. Page 1 of 2
City of Federal Way / 13
Statement 3 (continued)
Totals
Debt Service Fund
(Memorandum Only)
Variance
Variance
Favorable
2001
Favorable
2000
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Actual
$ 1,750,000
$ 1,997,537
$ 247,537
$ 28,588,173 $
29,721,513 $
1,133,340 $
28,495,459
-
1,647,710
1,376,694
(271,016)
1,334,027
3,684,273
4,122,776
438,503
4,792,651
2,042,552
2,525,488
482.936
2,219,948
901,784
830,668
(71,116)
902,762
308,882
271,008
(37,874)
1,004,827
798,601
(206,226)
1,255,917
-
-
333,716
487,692
153,976
661,826
2.058.892
2,268,545
209,663
38,203,035
39,863,432
1,660,397
39,662,590
-
-
-
5,623,665
4,615,027
1,008,638
4,170,003
14,819,878
14,264,309
555,569
14,046,638
74,443
74,443
-
318,709
406,730
353,623
53,107
4,661,867
-
8,803,642
7,124,437
1,679,205
2,567,206
714,453
583,605
130,848
546,191
-
3,071,351
2,951,607
119,744
2,940,818
-
-
178,470
49,791
128,679
191,048
2,870,623
2,700,478
170,145
2,870,623
2,700,478
170,145
2,498,853
1,657,918
1,797,614
(139.696)
1,657,918
1,797,614
(139,696)
1,729,858
4.528,541
4.498,092
30,449
38,221,173
34,514,934
3,706,239
33,671,191
(2,469,659)
(2,229,547)
240,112
(18,138)
5,348,498
5,366,636
5,991,399
2,950,149
2,950,149
-
5,868,966
5,307,346
(561,620)
4,814,672
(250,963)
250.963
(8,734,991)
(7,906,203)
828,788
(7,012,418)
2.699,296
2,950,149
250.865
(2,866,025)
(2,598,857)
267,168
(2,197,746)
229,627
720,602
490,975
(2,884,163)
2,749,641
5,633,804
3,793,653
6,038,386
5,787,522
(250,864)
20,048,412
19,797,548
(250,864)
16,297,141
-
(414,163)
(216,209)
197,954
(293,246)
$ 6,268,013
$ 6,508,124
$ 240,111
$ 16,750,086 $
22,330,980 $
5,580,894 $
19,797,548
Page 2 of 2
City of Federal Way / 14
Statement 4
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND EQUITY - ALL PROPRIETARY FUND TYPES
OPERATING REVENUES:
Intergovernmental
Service charges and fees
Miscellaneous
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Personal services
Materials and supplies
Services and charges
Intergovernmental
Insurance
Claims
Depreciation
Interfund charges
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON -OPERATING REVENUES (EXPENSES):
Subsidy from interlocal grant
Interest income
Interest expense
Donations/contributions
Gains/losses from disposal of fixed assets
TOTAL NON -OPERATING
REVENUES (EXPENSES)
INCOME(LOSS) BEFORE
OPERATING TRANSFERS
Operating transfers in (note 12)
Operating transfers out (note 12)
NET INCOME (LOSS)
Add depreciation reducing contributed capital
Increase (decrease)in retained earnings
RETAINED EARNINGS, January 1
RETAINED EARNINGS, December 31
CONTRIBUTED CAPITAL, January 1 (note 13)
Increases to contributed capital (note 13)
Decreases to contributed capital
Less amortization
CONTRIBUTED CAPITAL, December 31
FUND EQUITY AT END OF YEAR
See accompanying notes to financial statements.
For the Year Ended December 31, 2001
Totals
(Memorandum only)
Enterprise
Internal Service
2001
2000
$
$ - $
- $
23,791
3,656,577
3,698,693
7,355,270
7,525,609
11,309
537
11,846
32,107
3,667,886
3,699,230
7,367,116
7,581,507
1,085,336
585,981
1,671,317
1,516,832
99,576
274,186
373,762
430,806
717,978
1,147,244
1,865,222
1,802,105
127,578
59,711
186,289
130,873
-
298,978
298,978
270,785
-
67,700
67,700
62,193
589,936
1,060,847
1,650,783
1,698, 528
506,654
-
506,654
360,851
3,127.058
3,493,647
6,620,705
6,272,973
540,828
205,583
746,411
1,308,534
1,600
293,681
251,076
544,757
724,039
(34,360)
(29,978)
(64,338)
(56,789)
-
3,137
-
36,488
36,488
16,658
259,321
257,586
516,907
688,645
800,149
463,169
1,263,318
1,997,179
408,000
2,028,294
2,436,294
221,895
-
-
(415,626)
1,208,149
2,491,463
3,699,612
1,803,448
589,936
944,347
1,534,283
1,574,862
1,798,085
3,435,810
5,233,895
3,378,310
9,388,172
7,815,134
17,203,306
13,824,996
11,186,257
11,250,944
22,437,201
17,203,306
34,965,532
2,290,885
37,256,417
35,795,359
85,922
247,342
333,264
3,053,036
-
(8,047)
(8,047)
(9,950)
(589,936)
(944,347)
(1,534,283)
(1,582,028)
34,461,519
1,585,833
36,047,351
37,256,417
$ 45,647,775
11 12,836,777 $
58,484,552 $
54,459,723
City of Federal Way / 15
Statement 5
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
For the Year Ended December 31, 2001
Totals
(Memorandum only)
Enterprise Internal Service
2001
2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
$ 4,141,126 $
3,683,182 $
7,824,308 $
7,108,393
Cash received from other funds for goods and services
-
-
-
Cash received from other governments for goods and services
-
-
-
73,138
Cash payments to suppliers for goods and services
(99,576)
(1,669,783)
(1,769,359)
(1,900,615)
Cash payments to employees
(1,082,634)
(575,709)
(1,658,343)
(1,500.584)
Cash payments to claimants
(67,700)
(67,700)
(62,193)
Cash payments to other funds for goods and services
(506,654)
(66,847)
(573,501)
(412,080)
Cash payments to other governments for services
(127,578)
-
(127,578)
(121,203)
Cash payments for other services and charges
(763,495)
-
(763,495)
(656,835)
Cash payments for damage deposits
(1,772)
(1,772)
1,206
Other operating receipts
11.309
537
11,846
31,997
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
1,570,726
1,303,680
2,874,406
2,561,224
CASH FLOWS FROM NONCAPPTAL FINANCING
ACTIVITIES:
Subsidy from interlocal grant
-
-
1,600
Operating transfers in (note 12)
408,000
2,028,294
2,436,294
221,895
Operating transfers out (note 12)
-
-
(415,626)
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
408,000
2,028,294
2,436,294
(192,131)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Donations/contributions
-
-
3,137
Acquisition of capital assets/construction work in progress
(486,144)
(885,895)
(1,372,039)
(3,814,337)
Cash contributions for capital acquisitions (note 13)
-
248,313
248,313
312,962
Proceeds from sale of fixed assets
_
36,498
36,488
16,658
Insurance claims
-
-
-
Public works trust fund loan proceeds
2,475,000
Principal paid on debt service
(216,503)
(270,000)
(486,503)
(346,239)
Interest and fiscal charges paid on debt service
(34,360)
(29,978)
(64,338)
(56,789)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(737,007)
(901,072)
(1,638,079)
(1,409,608)
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
362,907
314,494
677,401
739,942
NET CASH PROVIDED (USED) IN DIVESTING
ACTIVITIES
362,907
314,494
677,401
739,942
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
1,604,627
2,745,396
4,350,023
1,699,427
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
6,393,452
6,040,535
12,433,987
10,734,560
CASH AND CASH EQUIVALENTS AT END OF YEAR
7,998,079
8,785,931
16,794,010
12,433,987
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING
ACTIVITIES
Operating income (loss)
540,828
205,583
746,411
1,308,534
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation expense
589,936
1,060,847
1,650,783
1,698,528
(Increase)decrease in accounts receivable
477,679
-
477,679
(433,765)
(Increase)decrease in taxes receivable
(7,413)
(7,413)
(13,898)
(Increase)decrease in prepaid insurance
-
-
3,150
(Increase)decrease in due from other governments
-
(15,511)
(15,511)
49,347
Increase(decrease) in vouchers/accounts payable
(45,517)
42,489
(3,028)
(98,463)
Inerease(decrease) in retainage payable
(3,730)
-
(3,730)
(12,629)
Increase(decrease) in deposits payable
(1,772)
-
(1,772)
1,206
Increase(decrease) in deferred revenues
18,014
-
18,014
42,966
Increase(decrease)in accrued payrolU
compensated absences payable
2,702
10,272
12,974
16,248
TOTAL ADJUSTMENTS
11029,898
1,098,097
2,127,995
1,252,690
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
1,570,726
1,303,680
2,874,406
2,561,224
SCHEDULE OF NONCASH INVESTING,
CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets (note 13)
$ - $
127,877
$ 127,877
$ 220,012
See accompanying notes to financial statements
City of Federal Way / 16
Note
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2001
INDEX
Page
Summary of Significant Accounting Policies................................................................................
17
Basis of Presentation --Fund Accounting..............................................................................
17
Basisof Accounting ........................ ....................................................................................
17
Budgets and Budgetary Accounting.....................................................................................
20
Assets, Liabilities and Equities.............................................................................................
22
Equityin Pooled Cash and Investments......:................................................................
22
Cash and Cash Equivalents..........................................................................................
22
Investments..........-•---...--• ...........................................................................................
22
Receivables...................................... ..................................................... .......... .............
22
Amounts Due to and from Other Funds; Interfund Loans ............................................
23
Inventories...............................................................•---.............................------.............
23
FixedAssets.................................................................................................................
23
Depreciation.................................................................................................................
23
Compensated Absences Payable..................................................................................
24
Long -Term Debt.....................................................................................................
24
DeferredRevenue........................................................................................................
24
Fund Equity -Reserves and Designation.......................................................................
25
Interfund Transactions ......................... .......... ............. ..........................................................
25
ComparativeData.................................................................................................................
25
Total Columns on Combined Statements - Overview...........................................................
25
Stewardship, Compliance and Accountability ...............................................................................
26
Supplemental Appropriations ........................ ................................................................................
26
Cashand Investments...............................................................................................................--...
26
Receivables and Due From Other Governments...........................................................................
28
Due To Other Governments..........................................................................................................
29
Fixed Assets and Depreciation......................................................................................................
30
PensionPlans................................................................................................................................
31
RiskManagement..........................................................................................................................
34
Estimated Arbitrage Rebate.........................................................................................................
36
Long -Term Debt..... --------- __ ...................................................................................................._.
36
InterfimdTransactions..................................................................................................................
40
ContributedCapital.......................................................................................................................
41
Contractual Obligations, Contingencies and Litigation.................................................................
42
Fund Additions and Deletions.......................................................................................................
42
SegmentInformation....................................................................................................................
43
JointVentures...............................................................................................................................
43
City of Federal Way / 17
For the Year Ended December 31, 2001
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. 2001 marks its eleventh 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
fire protection, storm and surface water utility billings, court services, garbage collection and various public
works services. Effective January 1, 2000, the City began operating it's own Municipal Court with minimal
contracted services from King County. Also, effective January 1, 2000, the City became a member city in
the Valley Communications Center joint venture, which provides dispatching services for our Police
Department.
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 Audit Services. 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.
The City participates in one joint venture, Valley Communications Center. See Note 16, Joint Venture,
which more fully describes this organization.
Basis of Presentation - Fund Accounting
The accounts of the City are organized on the basis of funds and account groups. Each fund is a separate
accounting entity with a self -balancing set of accounts. The account groups are financial reporting devices
used to provide accounting control for certain assets and liabilities not recorded in the funds because they
do not directly affect net expendable available financial resources. Under the current governmental
accounting model, there are three broad fund categories, seven generic fund types within those categories
and two account groups. The following is a description of the three fund categories and the generic fund
types included in each category.
City of Federal Way / 18
Governmental Funds Tvnes
Governmental funds are used to account for activities typically associated with state and local government
operations. All governmental fiord types are accounted for on a spending or "financial flows" measurement
focus, which means that typically only current assets and current liabilities 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 and trust funds.
Proonetary 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 fimd 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.
Standards for Proprietary Funds Proprietary Funds have the option of consistently following or not
following FASB pronouncements issued subsequent to November 30, 1989. The option selected by the
City for all of its Proprietary Fund activities, as policy, is to apply all applicable GASB pronouncements
and all FASB Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting
Research Bulletins (ARB) issued on or before November 30, 1989, unless they conflict with or contradict
GASB pronouncements.
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.
City of Federal Way / 19
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 and pension 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 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. The
City uses thirty days when evaluating the available criteria.
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 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 ''/4% and optional
'/4% 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. The Sales
Tax remittance in January is considered both measurable and available and is therefore accrued as revenue
at year-end.
Grant Revenues - Under Section G60.109 of the Codification of Governmental Accaun ' and Financial
Reporting Standards, revenues for cost reimbursement grants are determined to be earned and, therefore,
available at the time related expenditures are incurred. For this reason, grant revenues to be received as
reimbursement for expenditures incurred in the current year are also recognized as revenue in that year.
Shared Revenues - Revenues that have been collected, but not remitted by an intermediary collection
agency to the City, are considered measurable and available.
Other Revenue Sources - Other items recognized as revenue in the current year on the modified accrual
basis include investment interest earned but not received at year end; 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 licenses
and permits, fines and forfeitures, and other miscellaneous revenues which are generally not measurable
until received.
City of Federal Way / 20
Budgets and Budgetary Accounting
Scope of Budget - Annual appropriated budgets are adopted for the general, some special revenue, and debt
service 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 and 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 fluid 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 Budpeled on an Annual Basis:
General Fund
Special Revenue Funds:
Street Fund
Arterial Street Fund
Utility Tax
Solid Waste/Recycling Fund
Snow and Ice Removal Fund
Debt Service Fund
Hotel/Motel Lodging Tax Fund
Paths and Trails Fund
Strategic Reserve Fund
Airport 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 June, departments submit their preliminary expenditure estimates and the Management Services
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.
City Council conducts workshops and public hearings on the proposed budget between mid -September
and mid -December.
No later than the third Monday in November, 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.
City of Federal Way / 21
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 2001,
the budget was amended five times. 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, 2% For Arts, and Community Development Block Grant. The reconciliation from
Statement 2 to Statement 3 is as follows:
All Special
Budgeted Special
Rev Funds
Non -budgeted Special Revenue Funds
Rev Funds
Per
Special 2% for
Per
Statement 2
Contract Arts CDBG
Statement 3
REVENUES:
Taxes
Licenses & permits
Intergovernmental
Services charges and fees
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
General governmental
Physical environment
Transportation
Economic environment
Culture and recreation
Capital outlay
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 BEGIN OF YEAR
Residual equity transfers out
FUND BALANCES AT END OF YEAR
6,234,406 $ -
94,754 20,000
2,852,824
471,709
$ 6,234,406
74,754
242,322 2,610,502
- 471,709
238,405 4,699 - 233,706
27,071 - - 27,071
9,919,169 24,699 - 242,322 9,652,148
109,225 11,866
47,359 50,000
353,623 -
- 353,623
4,554,183
- 4,554,183
108,920
60,904 48,016
126,760 126,760 -
5,252,711 11.866 235,023 5,005,822
4,666,458 12,833
7,299 4,646,326
2,111,074 8,840 13,148 2,089,086
(6,586,414) - 22,746 6,563,668
(4,475,340) 8,840 (9,598) (4,474,582)
191,118 12,833 8,840 (2,299) 171,744
7,526,342 111,048 19,274 6,439 7.389,581
(2,936) - - (2,936)
$ 7,714,524 $ 123,881 $ 28,114 $ 4,140 $ 7.558.389
City of Federal Way /22
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 canceled 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 $5,332,105.
Assets, Liabilities and Equities
Equity in Pooled Cash and Investments
The City follows the practice of pooling cash and investments of all funds for investment purposes, except
for restricted funds in Enterprise funds (which the City currently does not have), investments of the
Employees' Retirement Fund held by trustees and cash held in escrow, which are all disclosed separately on
the balance sheet. Each fund's portion of total cash and investments is summarized by fund type in the
combined balance sheet as equity in pooled cash and investments.
Cash and Cash Equivalents
It is the City's policy to invest all cash not immediately required for disbursement. At December 31, 2001,
the State Treasurer was holding $54,563,156 in the State Investment Pool for short-term investments of
cash. The State Investment Pool is considered a cash equivalent. The interest earnings on these
investments are allocated to all funds based on the average monthly balance for each fund.
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. At December 31, 2001, the total
cash and cash equivalents were $55,817,031.
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).
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.
In accordance with GASB 31, investments in money market investments and participating interest -earning
investment contracts with a remaining maturity of one year or less at the time of purchase are stated at
amortized cost. All other investments are stated at fair value. There was no material deviation from fair
value quoted at year-end. The change in fair value has not been reflected on the combined balance sheet
since the City intends to hold investments to maturity. .
Receivables
Taxes receivable consists of measurable and available locally levied taxes and related interest and penalties.
Property taxes receivable is included in taxes receivable.
Due From Other Governments 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.
City of Federal Way / 23
Amounts Due to and from Other Funds: Interfund Loans
These accounts include all interfund receivables and payables. A separate schedule of interfimd loans
receivable and payable is furnished in Note 12.
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 that 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 value on the date received.
The City does not capitalize "infrastructure" assets such as roads, bridges, curbs and gutters, streets and
sidewalks, and lighting systems.
Costs of normal maintenance and repair for general fixed assets are also not capitalized. However, any
improvement that increases an asset's value, or materially extends its life or potential uses is added to that
asset's capitalized cost.
Equipment items and real property acquired through capital lease agreements or conditional sales contracts
are recorded in the General Fixed Assets Account Group or Proprietary Fund, as appropriate, at the
inception of the agreement and in accordance with criteria established in 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 fair values as of the date they are acquired. The
estimated fair value of donated assets is recorded as contributed capital by the fund that 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.
City of Federal Way / 24
The average service lives used to calculate depreciation for specific categories of assets in the City's
Proprietary Funds are summarized below.
Asset Class
Office Furniture & Fixture
Computer/Data Handling Equipment
Communications Equipment
Recreation Equipment
Parks Equipment
Automobiles
Police Vehicles
Police Equipment
Light Trucks
Heavy Trucks
Heavy Work Equipment
Shop/Miscellaneous Equipment
Land Improvements
Buildings
Storm Drainage Systems
Compensated Absences Payable
Estimated Service
Life in Years
10
4
10
10
5-12
4-6
5
8
10
10
20
20
100
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 12 to 15 days per year depending on
term of employment. Employees may accumulate up to a maximum of 240 hours of vacation leave, except
the Police Guild, who can accrue up to a maximum of 256 hours. 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, or forty hours for Police Guild members.
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 due to the difficulty in estimating the portion of existing
balances likely to result in expenditures in future periods.
Long-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 is recorded as a liability by the fund
responsible for the related debt repayment. Long-term debt outstanding at year-end is outlined in Note 11.
Deferred Revenues
The deferred revenue 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. The
portions of Property Taxes that do not meet the available criteria are recorded as deferred revenue.
City of Federal Way / 25
Fund E uit -Reserves and Desi ations
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 balance not available
for expenditure in the governmental funds consists of the outstanding balances of current interfund loans.
On December 31, 1991, $10,000 in a non -interest bearing loan from the General Fund to the City's CDBG
grant fund was authorized by the City Manager as interim financing. In addition, the General Fund had
reserves for Petty Cash, prepaid insurance, police special funds 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 - interf ind loans, quasi-extemal 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 that belong to another fund. They involve only
expenditure or expense accounts. Interfand 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 interfumd equivalent of 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 2001 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 12,
Interfund Transactions.
Comparative Data
Comparative totals for the prior year have been presented in the accompanying financial statements in order
to provide an understanding of changes in the City's financial position and operations. However,
comparative data has not been presented by fund type in each of the statements since their inclusion would
make the statements unduly complex and difficult to read.
Total Columns on Combined Statements - Overview
Total columns on the general purpose financial statements are provided to facilitate financial analysis. This
data, however, 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.
City of Federal Way / 26
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.
NOTE 3
Supplemental Appropriations
Operating Budget Funds
Appropriations established during 2001 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
2001
SUPPLEMENTAL
APPROPRIATIONS
FINAL
BUDGET
General Fund $
28,193,434
$ 1,456,095 $
29,649,529
Special Revenue Funds:
Street Fund
3,399,526
276,720
3,676,246
Arterial Street Fund
1,622,832
392,337
2,005,169
Utility Tax Fund
4,452,950
-
4,452,949
Solid Waste/Recycling Fund
262,427
144,607
407,034
Snow and Ice Removal Fund
100,000
Hotel/Motel Lodging Tax
90,000
49,202
139,202
Paths and Trails Reserve Fund
-
Strategic Reserve Fund
132,500
1,728,294
1,860,794
Airport Strategic Reserve Fund
300,000
300,000
Subtotal Special Revenue Funds
10,060,235
2,881,160
12,841,394
Debt Service Fund
4,785,693
(6,289)
4,779,404
$
43,039,362
$ 4,330,966 $
47,270,327
Funds Budgeted on a Project -Length Basis
During 2001, 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, 2% for the Arts, and Community Development Block
Grant. 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 2001 the City utilized all the above with the exception of
bankers' acceptances as legal authorized investment instruments. The City's investment policies are
described in Note 1.
City of Federal Way / 27
Cash and Deposits
The City follows the practice of pooling cash and investments of all funds, except restricted funds and funds
held with a trustee or in escrow, for investment purposes as disclosed in Note 1. At December 31, 2001, the
equity in pooled cash and investments was $55,817,031.
At year-end, the City had $54,805,451 in cash and cash equivalents which consisted of investments with the
State Pool of $54,563,156; the City's checking account bank balance of $1,365,271 (outstanding checks
were $1,177,375 at December 31); and petty cash and change fimds, advance travel fund and investigative
fund totaling $54,399. 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, 2001, the City's total deposits and investments consisted of the following:
US Bank, Checking Account per Books
$ 187,896
Petty Cash/Change Fund/Advance Travel/Investigative Fund
54,399
Cash Equivalents with State Treasurer's Investment Pool
54,563,156
Subtotal Cash and Cash Equivalents
54,805,451
Investments in US Government Agency
1,011,58.0
Equity in Pooled Cash and Investments
55,817,031
Cash with Escrow Agent
257,495
Total Cash and Investments
$ 56,074,526
Investments
The City's investments are categorized to give an indication of the risk assumed at year-end. The following
surmnary 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 that 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. At the end of the year, the
City had no investments in category 2 or 3. In accordance with GASB 31, investments in money market
investments and participating interest -earning investment contracts with a remaining maturity of one year or
less at the time of purchase are stated at amortized cost. All other investments are stated at fair value. The
fair value of the positions in the State Investment Pool is the same as the value of the pool shares. The State
Investment Pool is managed by the Treasurer of the Sate of Washington.
US Government Agency
Subtotal Categorized City Investments
Total Categorized Investments
Investments in State Treasurers Investment Pool
Total Investments
Risk Category Carrying Fair
I Amount Value
1,011,580 1,011,580 1,005,900
1,011,5 80 1,011,580 1,005, 900
$ 1,011,580 $ 1,011,580 $ 1,005,900
54,563,156 54,563,156
$ 55,574,736 $ 55,569,056
City of Federal Way / 28
NOTE 5
Receivables and Due from Other Governments
Property Taxes
The King County Treasurer is responsible for collecting property taxes levied in the County by all 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,
2001, the total balance of property taxes receivable recorded by the City was $302,373. Of this, $285,264
is recorded as a deferred revenue, since it was not collected within the first 30 days of 2002. The property
tax levy calendar in 2001 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% of market value.
October 31 Second installment is due.
Property taxes are recorded as a receivable when levied, offset by 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 30 days. No allowance for uncollectible taxes is
established because delinquent taxes are considered fully collectible.
Under State law, the maximum levy (for general governmental services) is up to $3.60 per $1,000 of
assessed valuation, subject to two limitations, set forth below. Since the City of Federal Way is not a full
service city, the City is only allowed $1.60. The remaining $2.00 is for the fire district ($1.50) and library
district ($.50).
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.
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 2001 was $1.41 per $1,000 on an assessed valuation of $5,620,635,267 for a
total regular levy of $7,305,894.
City of Federal Way / 29
Due from Other Governments
At December 31, 2001 the City recorded the following receivables from other governmental units:
Descripunn Amount
General Fund:
King County - Red, Whites & Blues Program 7,000
King County - Summer Concerts Program 5,000
King County - Potential Annexation Area Grant 20,000
Washington State Shared Revenue $ 1,221,595
Washington Criminal Justice Training Center 12,880
City of Des Moines - Public Safety Des Moines Contract 8,000
WSDOT - CMAQ - Commute Trip Reduction Program 8,035
King County - Solid Waste & Recycling Grants 51,423
State Department of Ecology - Solid Waste & Recycling Grants 46,928
Washington State Shared 7,374
King County - Comnnmity Development Block Grants 30,103
Federal Way Fire District - VallcyCom Buy -in Fee
WA State - Historical Cabins Grant
50,000
WSDOT - BPA Phase III Grant
278,513
WA State - ISTEA/TEA 21 Transportation Grants
568,635
Subtotal C ital Projects Fund
897.148
Internal Service Funds:
WA State - GSA Vehicle Auction
15,511
King County Property Taxes 459,291
Special Revenue Funds:
Utility Taxes 692,425
Enterprise Funds:
King County Surface Water Management Fees 101,954
NOTE 6
Due To Other Governments
At December 31, 2001, the City recorded $250,086 as due to other governmental units. This included
$175,404 to King County for jail services.
Description Amount
General Fund
King County - Jail Services $ 175,404
King County - Elections 21,888
Subtotal General Fund 197,292
Special Revenue Funds:
State - Leasehold Tax 3,190
King County - Signals Maintenance 4904
City of Federal Way / 30
NOTE 7
Fixed Assets and Depreciation
General Policies
Major expenditures for fixed assets, including capital leases and major repairs that increase useful lives are
capitalized. Maintenance, repairs, and minor renewals are accounted for as expenditures or expenses when
incurred. The City has adopted a general fixed asset capitalization policy where an item's cost must equal
or exceed $1,000.
All fixed assets are valued at historical cost (or estimated cost, where historical cost is not known/or
estimated market value for donated assets).
General Fixed Assets
General fixed assets are long-lived assets of the City as a whole. When purchased, leased, or constructed,
such assets are recorded as expenditures in the governmental funds and capitalized in the General Fixed
Assets Account Group. No depreciation has been provided on general fixed assets, nor has interest been
capitalized.
General fixed assets that are infrastructure assets (such as roads, bridges, curbs, and sidewalks) are
considered public property and are not accounted for in the General Fixed Assets Account Group.
A summary of changes in general fixed assets follows:
Balance
Balance
January 1, 2001
Additions
Deletions
December 31, 2001
Joint venture
$ 569,630
$ 1,402,132
$ -
$ 1,971,762
Land
29,673,623
1,280,057
325,000
30,628,680
Other improvements
15,054,676
66,908
-
15,121,584
Buildings
1,724,241
-
1,724,241
Assets under capital lease:
Land
1,450,000
1,450,000
Machinery & equipment
184,000
-
-
184,000
Subtotal
48,656,170
2,749,097
325,000
51,080,267
Construction work in progress
1,696,292
1,050,919
-
2,747,211
Total General Fixed Assets
$ 50,352,462
$ 3,800,016
$ 325,000
$ 53,827,478
Proprietary Fund Fixed Assets
Proprietary fund fixed assets are long-lived assets acquired by the City's Enterprise and 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, 2001:
Enterprise Funds
Subtotal
Internal Service Funds
Subtotal
Total
Surface Water
Dumas Bay
Enterprise
Information
Support
Fleet &
Buildings &
Internal Service
Proprietary
Management
Centre
Funds
systems
Services
Equipment
Furnishings
Funds
Funds
Land
S 3,708,654 $
2,109,640 $
5,819,294 $
$
- $
-
$ -
$ - $
5,819,294
Building & Structures
35,233,201
3,542,489
38,775,690
-
-
38,775,690
Information systems
-
-
-
3,872,960
-
-
-
3,872,960
3,872,960
Transportation equip
-
-
-
-
-
1.982.592
1,982,592
1,982,592
Heavy equipment
-
-
-
435,030
-
435,030
435,030
Buildings & furnishings
-
-
-
-
-
3;377,773
3,377,773
3,377,773
Other equipment
656,342
105,033
761,375
-
112,920
385,286
-
498,206
1,259,581
Subtotal fixed assets
39,598,197
5,757,162
45,355,359
3,872,960
112,920
2,802,908
3,377,773
10,166,561
55,521,920
Less accum deprec
(8,511,491)
(875,162)
(9,386,653)
(2,313.397)
(109,517)
(1.447,600)
(1,788,029)
(5,658,543)
(15,045,196)
Subtotal fixed assets
31,086,706
4,882,000
35,968,706
1,559,563
3,403
1,355.308
1,589,744
4,508,018
40,476,724
Construction in progress
5,569,244
29,663
5,597,907
-
-
-
-
-
5,597,907
Total Fixed assets
$ 36,655,950 $
4,910,663 $
41,566,613 $
1,559,563 $
3,403 $
1,355,308
$ 1,589,744
S 4,508,019 S
46,074,631
City of Federal Way / 31
Construction Work in Progress
Included in the General Fixed Asset Account Group and Enterprise Fund is Construction Work in Progress
that represents projects that were in process at year-end. The City had eight General Fixed Assets Account
Group and three Surface Water Management projects that were in progress at the end of 2000 and are
anticipated to be complete during 2001. The projects were:
General Fixed Assets Account Group
Surface Water Management Enterprise Fund
BPA Trail Development, Phase III
751,117
SeaTac Mall Detention
4,591,704
School Site Improvements
1,136,807
Star Lake Road/So 272nd Conveyance Improve
700,235
Neighborhood Parks
128,957
SW 356th Regional Storm Water Facility
277,305
Alderbrook Play Park Equipment
26,324
$
5,569,244
Klahanee Lake Improvements
131,446
Skateboard Park
246,734
Dumas Bay Center Fund
Lake Killarney
298,670
Knutzen Family Theatre
14,655
Hylebos Project
23,016
Dumas Bay Centre
14,008
Panther Lake
4,140
$
28,663
$
2,747,211
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. The Department of Retirement Systems (DRS), a
department within the primary government of the State of Washington, issues a publicly available
comprehensive annual financial report (CAFR) that includes financial statements and required
supplementary information for each plan. The DRS CAFR may be obtained from the Department of
Retirement Systems, Administrative Services Division, P.O. Box 48380, Olympia, WA 98504-8380. The
following disclosures are made pursuant to GASB Statement 27, Accounting for Pensions by State and
Local Government Employers.
Public Employees' Retirement System (PERS) Plan I and 2
Plan Description
PERS is a cost -sharing multiple -employer system. Membership is mandatory for all City employees
working 70 hours per month for 5 months out of the twelve month period. Membership in the plan includes
elected officials; state employees; employees of the Supreme, Appeals, and Superior courts (other than
judges in judicial retirement system); employees of legislative committees; college and university
employees not in national higher education retirement programs; judges of district and municipal courts;
non -certificated employees of school districts; and employees of local government. The PERS system
includes two plans. Participants who joined the system by September 30, 1977 are Plan 1 members. Those
joining thereafter are enrolled in Plan 2. Retirement benefits are financed from employee and employer
contributions and investment earnings. Retirement benefits in both Plan 1 and Plan 2 are vested after
completion of five years of eligible service. Retirement benefit provisions are established in state statute
and may be amended only by the state legislature.
Plan 1 members are eligible for retirement at any age after 30 years of service, or at age 60 with five years
of service, or at age 55 with 25 years of service. The annual pension is 2 percent of the average final
compensation per year of service, capped at 60 percent. The average final compensation is based on the
greatest compensation during any 24 eligible consecutive compensation months. If qualified, after reaching
age 66 a cost -of -living allowance is granted based on years of service credit and is capped at three percent
annually.
City of Federal Way / 32
Plan 2 members may retire at age 65 with five years of service, or at age 55 with 20 years of service, with
an allowance of 2 percent per year of service of the average final compensation. Plan 2 retirements prior to
65 are actuarially reduced. There is no cap on years of service credit and cost -of -living allowance is
granted, capped at 3 percent annually.
There are 1,177 participating employers in PERS. Membership in PERS consisted of the following at
December 31, 2000:
Retirees and Beneficiaries Receiving Benefits 61,088
Terminated Plan Members Entitled To But Not Yet Receiving Benefits 17,314
Active Plan Members Vested 98,018
Active Plan Members Nonvested 54,243
Funding Poli�v
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates and Plan 2
employer and employee contribution rates. Employee contribution rates for Plan 1 are established by
statute at six percent and do not vary from year to year. The employer and employee contribution rates for
Plan 2 are set by the director of the Department of Retirement Systems based on recommendation by the
Office of the State Actuary to continue to fully fund Plan 2. All employers are required to contribute at the
level established by state law. The methods used to determine the contribution rates are established under
state statute in accordance with Chapters 41.40 and 41.45 RCW.
The required contribution rates expressed as a percentage of current year covered payroll, as of December
31, 2001, were:
PERS Plan I
PERS Plan 11
Employer 1.77% *
1.77%
Employee 6.00%
0.88%
" The employer rates do not include the employer administrative expense fee currently set at 0.23%.
Both the City and employees made the required contributions. The City's required contributions for the
years ended December 31 were:
PERS Plan I
PERS Plan II
2001 $ 59,653
$414,046
2000 $ 67,493
$483,965
1999 $ 90,369
$435,357
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans 1 and 2
Plan Description
LEOFF is a cost -sharing multiple employer retirement system Membership in the plan includes all full
time, fully compensated, local law enforcement officers and fire fighters. LEOFF is comprised solely of
nonstate employees. The LEOFF system includes two plans. Participants who joined the system by
September 30, 1977 are Plan 1 members. Those joining thereafter are enrolled in Plan 2. Retirement
benefits are financed from employee and employer contributions, investment earnings, and state
contributions. Retirement benefits in both Plan 1 and Plan 2 are vested after completion of five years of
eligible service. Retirement benefit provisions are established in state statute an may be amended only by
the state legislature.
Plan 1 members are eligible to retire with five years of service at age 50. The benefit per year of service is
as follows, with a cost -of -living allowance granted, capped at 3 percent annually:
Term of Service Percent of Final Average
20 or more years 2.0%
10 but less than 20 years 1.5%
5 but less than 10 years 1.0%
City of Federal Way / 33
Plan 2 members are eligible to retire at age 50 with 20 years of service, or at age 55 with five years of
service. Retirement benefits prior to age 55 are actuarially reduced. The benefit is two percent of average
salary per year of service. The average salary is based on the highest consecutive 60 months. There is no
cap on years of service credit and a cost -of -living allowance is granted, capped at three percent annually.
There are 362 participating employers in LEOFF. Membership in LEOFF consisted of the following at
December 2000:
Retirees and Beneficiaries Receiving Benefits 7,923
Terminated Plan Members Entitled To But Not Yet Receiving Benefits 279
Active Plan Members Vested 10,680
Active Plan Members Nonvested 3,952
-, -: -Tdful ., 22,814
FIDdingolic
Plan 1 employer and employee contribution rates are established by statute, and the state is responsible for
the balance of the funding at rates set by the Pension Funding Council to fully amortize the total costs of the
plan. Employer and employee rates for Plan 2 are set by the director of the Department of Retirement
Systems based on recommendations by the State Actuary to fully fund the plan. Plan 2 employers and
employees are required to contribute at the level required by state law. The methods used to determine the
contribution rates are established under state statute in accordance with Chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current year covered payroll, as of December
31, 2001 were:
LEOFF Plan I LEOFF Plan II
Employer 0.23% * 2.93%
Employee 0.00% 4.50%
' The employer rates do not include the employer administrative expense fee currently set at 0.23%.
Both the City and employees made the required contributions. The City's required contributions for the
years ended December 31 were:
LEOFF Plan I LEOFF Plan 11
2001 $0 $606,690
2000 $0 $631,198
1999 $0 $560,325
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.
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 established as an alternative to the
Federal Social Security System.
During 2001, there were a total of 366 individuals covered by this system As of the end of the year, 342
remained as active employees of the City and none were drawing retirement benefits. The 24 inactive had
left the City's employment and either had been reimbursed their contributions, or the reimbursement was
pending, or they elected to have their contributions remain in the plan if the balance was $5,000 or greater.
City of Federal Way / 34
All regular 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. Contributions into the plan
are tax deferred.
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 10% of
the participant's compensation.
Covered payroll for 2001 was $15,252,747 and total City payroll was $16,247,644. Actual City
contributions for the year were $796,725. Actual employee contributions were $973,120. All contributions
were invested in instruments arranged through independent investment advisors selected by the Municipal
Employers Benefit Trust (MEBT) committee comprised of the cities of Bellevue, Kirkland, Redmond,
Edmonds, Mill Creek, Woodinville, and Federal Way but administered through Wells Fargo Bank.
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 Wells Fargo Bank who invests Plan
assets. At year-end these assets amounted to $10,076,384 and were comprised of U.S. government
obligations ($600,552) corporate obligations ($3,502,551), mutual funds ($252,917), equity stocks
($4,878,986), money market securities ($454,445), and mortgage -backed securities ($386,933).
In July 1995, the City implemented the hardship withdrawal and loan provision program Loans receivable
as of December 31, 2001 were $404,828.
The consulting actuary fuui of Trautmann, Maher & Associates 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 payable from the employee's account to which no contributions by the City or the
participant can be added after retirement, or a single lump -sum payment equal to the accumulated balance in
the employee's account as of his retirement date.
NOTE 9
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. The City's
insurance coverage in 2001 remained relatively similar to the coverage for 2000. There were no settlements
in excess of insurance for commercially insured activities for 1996 through 2001.
During 2001 the City purchased commercial insurance policies from commercial insurers. The following is
a summary of coverage in force in 2002.
Federal Way / 35
NAME OF COMPANY
St. Paul Fire and Marine
The Fidelity and Deposit
St. Paul Fire and Marine
The Fidelity and Deposit
St. Paul Fire and Marine
St. Paul Fire and Marine
St. Paul Fire and Marine
St. Paul Fire and Marine
The Fidelity and Deposit
Company of Maryland
St. Paul Fire and Marine
St. Paul Fire and Marine
St. Paul Fire and Marine
St. Paul Fire and Marine
The Fidelity and Deposit
St. Paul Fire and Marine
The Fidelity and Deposit
St. Paul Fire and Marine
St. Paul Fire and Marine
St. Paul Fire and Marine
DETAILS OF COVERAGE
Public Officials
Liability Coverage
Public Official Bond
Management Services Director
Public Official Bond
City Manager
General Liability
Coverage
Property
Coverage
Auto Liability &
Physical damage
Faithful Performance,
Fidelity/Emp. Dishonesty
& Erisa Bond
Inland Marine
Excess Liability Policy
Boiler & Machinery
Employer Liability
Workers' Compensation
Stop Gap-Statuta by limit
Public Official Bond
City Clerk
Public Official Bond
Chief of Police
Law Enforcement
Liability
Above Ground
Pollution
LIABILITY LIMITS
Per claim & General aggregate - $5,000,000
Deductible - $5000
Coverage Limit - $50,000
Coverage Limit - $50,000
Per claim - $2,000,000
General aggregate - $2,000,000
Deductible - $5,000
Buildings/contents - $11,168,125
Extra expense - $1,308,048
Valuable papers - $460,000
Deductible - $5,000
Fine Arts - $25,000
Deductible - $1,000
Coverage Limit - $2,000,000
Collision Deductible - $1,000
Comprehensive deductible -$100
Deductible - $5,000
Coverage Limit - $250,000/bond
Deductible - $2,500
Deductible (Erisa) - 0
Coverage Limit - $187,500
Deductible - $1,000
Coinsurance - 90%
Per claim / Aggregate - $10,000,000
Retention - $10,000
Per incident - $11,168,125
Deductible - $1,000
Coverage Limit - $1,000,000
Coverage Limit - $50,000
Coverage Limit - $50,000
Coverage Limit - $2,000,000
General aggregate - $2,000,000
Deductible - $5,000
Per claim & General aggregate - $1,000,000
Deductible - $1,000
City of Federal Way / 36
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.
The City is self -insured for unemployment compensation. At December 31, 2001 the City had $325,079 in
retained earnings of which $17,292 will be paid for lst quarter 2002's unemployment compensation claims.
1997
1998
1999
2000
2001
Unemployment Reserve, Beginning Balance
$ 44,266 $
75,386 $
149,864 $
240,688 $
325,079
Plus unemployment compensation benefits
108,005
120,408
138,515
146,035
154,354
Less claim payments during the year
76,885
45,930
47,691
61,644
24,610
Unemployment Reserve, Ending Balance
$ 75,386 $
149,864 $
240,688 $
325,079 $
454,823
NOTE 10
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, 2001 is $-0- for its tax-exempt general
obligation bond issues subject to the Tax Reform Act issued through that date.
NOTE 11
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 2001
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.
City of Federal Way / 37
The following is a schedule of outstanding general obligation debt as of December 31, 2001:
OUTSTANDING GENERAL OBLIGATION DEBT - BY TYPE
December 31,
2001
Amount
Beginning
Ending
Bond Rating
Maturity
Originally
Outstanding Amount
Amount
Outstanding
Description at Issuance
Date of Issue Date
Interest Rate
Issued
Debt Issued
Redeemed
Debt
Gencral Obligation Honds
1991 Limited A
01-Feb-91 01-Dec-01
6.00 - 6.85
$ 12,500,000
$ 240,000 $
$ 240,000
$
1993 Limited At
14-Jun-93 01-Dec-08
2.70 - 5.70
2,390,000
1,485,000
155,000
1,330,000
1993Refunding At
13-May-93 01-Dec-21
2.70-5.85
12,105,000
11,815,000
50,000
11,765,000
1995 Limited At
28-Dec-95 01-Dec-05
3.90 - 4.75
5,000,000
3,005,000
550,000
2,455,000
1996 Limited Ai
29-Feb-96 01-Dec-05
3.50 -4.50
2,500,000
1,495,000
275,000
1,220,000
1997 Limited AAA -insured
22-Apr-97 01-Dec-12
5.00 - 5.30
16,150,000
12,605,000
1,315,000
11,290,000
2000Limited Al
12-Se -00 01-Dec-15
5.31
2,551,600
2,551,600
96,600
455000
Subtotal GO Bonds
53,196,600
33,196 600
2,681,600
30,515 000
Ceri f tales of Participation.
1992 Issue - Series A
26-Aug-92 01-Dec-02
3.00 - 5.45
2,150,000
555,000 -
270,000
285,000
1999 Issue AAA
01-A -99 01-Juts-04
5.16
184,000
133,046 -
35,073
97,423
Subtotal COP's
2.334,000
688,046 -
305,623
382,423
Public Works Trust Fund Loan:
PWTL - Kitts Corner Drain Imp
31-Aug-94 01-Jul-14
1.00
233,316
169,863
12,936
156,927
PWTL - Kitts Corner Drain Imp
24-Jul-96 01-Jul-14
1.00
1,166,580
908,989
64,680
844,309
PWTL - Kitts Corner Drain Imp
04-Sep-97 01-Jul-14
1.00
155,544
128,500
8,623
119,877
PWTL - SeaTac Mall Drain Imp
31-May-00 01-Jul-19
1.00
412,500
412,500
21,710
390,790
PWTL - SeaTac Mail Drain Imp
14-Au -00 01-Jul-19
1.00
2,062,500
2,062,500
108,554
1'953,946
Subtotal PWTFL
4,030,440
3,692,352 -
216,503
3,465,949
Grand Total All Long -Term Debt
$ 59,561,040
$37,566,998 $ -
$ 3,203,726
$ 34,363,272
OUTSTANDING GENERAL OBLIGATION DEBT - BY FUND
December 31, 2001
Amount
Beginning
Ending
Originally
Outstanding Amount
Amount
Oustanding
Description
Issued
Debt Issued
Redeemed 3
Debt
General Long -Term Debt Group:
1991 Limited
$ 12,500,000
$ 240,000 $ $
240,000
$
1999 COP Issue
184,000
133,046 -
35,623
97,423
1994 Limited
2,390,000
1,485,000
155,000
1,330,000
1994 Refunding
12,105,000
11,815,000
50,000
11,765,000
1995 Limited
5,000,000
3,005,000
550,000
2,455,000
1996 Limited
2,500,000
1,495,000
275,000
1,220,000
1997 Limited
16,150,000
12,605,000
1,315,000
11,290,000
2000 Limited
2,551,600
2,551,600
96,600
2,455,000
Total General Long -Tenn Debt
53,380,600
33,329.646
2,717,223
30.612,423
Internal Service Funds
1992 Issue - Series A
2,150,000
555,000
270,000
285,000
Enterprise Funds
Public Works Trust Fund Loan
4,030,440
3,682,352
216,503
3,465,849
Grand Total All Long -Tenn Debt
$ 59,561,040
$ 37,566,998 $ $
3,203,726
$ 34,363,272
a Debt service principal payments in Debt Service Fund include credits of $16,745. $14,490 from Interlocal
agreement with Federal Way Fire District to participate in capital cost obligations with Valley
Communications joint venture with the City of Federal Way and $2,255 refund of excess funds after 1991
COP Issue fmal payment.
City of Federal Way / 38
The following is a schedule of outstanding general obligation debt as of December 31, 2001:
SCHEDULE OF GENERAL LONG-TERM DEBT
December 31, 2001
With Comparative Totals for December 31, 2000
Amounts Available and Amounts to be Provided for the
Payment of General Long -Term Debt
2001
Amount to be Provided for the Retirement of -
General Obligation Bonds
24,006,876
Certificates of Participation
97,423
Compensated Absences
1,554,113
Amount Available in Debt Service Funds
6,508,124
Total Amount Available and to be Provided
$ 32,166,536
General Long -Term Debt Payable
General Obligation Bonds
30,515,000
Certificates of Participation
97,423
Compensated Absences - Vacation
1,554,113
Total General Long -Term Debt
$ 32,166,536
2000
27,409,078
133,046
1,494,109
5,787,522
$ 34,823,755
33,196,600
133,046
1,494,109
$ 34,823,755
SCHEDULE OF CHANGES IN LONG-TERM DEBT
Period Ended December 31, 2001
Oustanding at
Outstanding at
December 31 2000
Additions
Reductions
December 31, 2001
General:
General Obligation Bonds
$ 33,196,600
$ -
S (2,681,600)
$ 30,515,000
Certificates of Participation
133,046
-
(35,623)
97,423
Employee Leave Benefits
1,494,109
60,004
-
1,554,113
Total General
34,823,755
60,004
2,717,223
32 7166,536
Proprietary:
Enterprise Funds
Public Works Trust Fund Loan 3,682,352
-
(216,503)
3,465,849
Employee Leave Benefits
27,581
2,702
-
30,283
Internal Service Funds
Certificates of Participation
555,000
-
(270,000)
285,000
Employee Leave Benefits
47,233
10,262
-
57,495
Total Pro rietary
4,312,166
12,964
486,503
3,838,627
Total All Funds
$ 39,135,921
$ 72,968
$ 3,203,726
$ 36 005 163
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
General Obligation
Certificates
Public Works
Bonded Debt
of Participation
Trust Fund Loan
Total Debt
2002
4,419,348
342,571
251,161
5,013,079
2003
4,427,706
42,038
248,996
4,718,740
2004
4,425,860
21,019
246,831
4,693,710
2005
4,435,452
-
244,666
4,680,118
2006
3,413,438
_
242,501
3,655,939
Thereafter
22,114,509
-
2,532,92I
24,647,429
$ 43,236,311 S
405,628 $
3,767,076 $
47.409,015
City of Federal Way / 39
SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY
Year
Principal
Interest
Total
2002
3,371,989
1,647,852
5,019,840
2003
3,234,949
1,489,724
4,724,673
2004
3,360,993
1,337,744
4,698,737
2005
3,507,503
1,176,734
42684,236
2006
2,654,503
1,0042946
3,659,448
2007
2,776,503
870,900
3,647,402
2008
1,388,503
769,153
2,157,656
2009
1,226,503
702,120
1,928,622
2010
1,285,503
644,307
1,929,810
2011
1,344,503
583,088
1,927,591
2012
1,408,503
518,459
1,926,962
2013
1,046,503
460,802
1,507,305
2014
1,087,503
411,235
1,498,738
2015
1,058,263
358,702
1,416,965
2016
870,263
303,738
1,174,001
2017
915,263
258,775
1,174,039
2018
965,263
211,158
1,176,421
2019
1,020,263
161,008
1,181,271
2020
945,000
107,640
1,052,640
2021
895,000
52,358
947,358
Total $
34,363,272 $
13,070,442 $
47,433,714
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'/z 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 1.5% of the valuation within
the City without a vote of the people. No combination of limited or unlimited tax debt may exceed 7'/2
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, 2001 are:
General Government (no vote required) $ 66,391,518
General Government (3/5 majority vote required) $ 56,206,353
Parks and Open Space (3/5 majority vote required) $140,515,882
Utilities (3/5 majority vote required) $14MI5.882
Total Capacity $403.629.635
Compensated Absences
As explained in Note 1, the City's liability for accrued employee vacation balances from 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, 2001, is provided below:
Governmental Funds(recorded in the General Long-term Debt Account Group) $1,554,113
Enterprise Funds 30,283
Internal Service Funds 57,495
Total Compensated Absences $1.641.891
City of Federal Way / 40
Refunded Debt
In 1993, the City refunded one general obligation bond issue by placing the proceeds for new bonds in an
irrevocable trust to provide for all future debt service payments on the old bonds. As a result, the refunded
bonds are considered defeased and the liability has been removed from the City's financial statements.
At December 31, 2001, the cash held with refunding Trustee (US Bank Corporate Trust Services) was
$17,202 and investments held with the Trustee were $0. Refunded bonds payable were $11,765,000 at
year-end.
NOTE 12
Interfund Transactions
Interfumd transactions represent reductions in the expendable financial resources of the transferring flmd,
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-extemal transactions, (2) loans and advances, (3)
reimbursements, (4) residual equity transfers, and (5) operating transfers. During 2001, 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 2001, 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, 2001:
Interfumd Loans Interfund Loans
Interfund Loans Receivable Payable
General Fund $ 10,000 $
Special Revenue Funds:
Commimity Development Block Grant - 10,0(1[]
Total Interfund Loans $ 10,000 $ 10,000
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 2001:
Fund Category _
General Fund
Special Revenue Funds
Internal Service Funds
Transfers In
216,209
$ 216,209
Transfers Out
$ 213,273
2,936
$ 216,209
The above amount of $216,209 was transferred from governmental funds to the internal service funds,
which record related transactions as additions to contributed capital.
City of Federal Way / 41
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 2001:
Fund Category
General Fund
Special Revenue Funds
Debt Service Fund
Capital Project Funds
• Enterprise Fund
'• Internal Service Funds
Transfers In
$ 268,111
2,111,074
2,950,149
254,046
408,000
2,028,294
$ 8,019,674
Transfers Out
$ 1,342,535
6,586,414
90,725
$ 8,019,674
* Includes $100,000 subsidy from Utility Tax Fund to support Knutzen Family Theatre maintenance and
operations. Transfers of $415,626 were made to the Transportation CIP Fund for SWM's portion of the
capital project done in conjunction with the street improvement.
Transfer from Strategic Reserve & Airport Strategic Reserve Funds to Risk Management Fund
to account for all reserves, including self-insurance in one fund.
NOTE 13
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 also would
be reported in this category.
During 2001 various transactions impacted the contributed capital of proprietary fiends.
These transactions
have been identified in the following presentation:
Enterprise Subtotal
Internal Service Funds
Subtotal
Total
Surface Water Dumas Bay Enterprise Information
Support Fleet &
Buildings &
Internal Service
Proprietary
Management Centre _ Funds Systems
Services Equipment
Furnishings
Funds
Funds
Beginning
Contributed Capital
$ 32,956,690 $ 2,008,842 $ 34,965,532 $ 1,169,608
$ 11,704 $ 730,807
$ 378,766
$ 2,290,885
$ 37,256,417
Additions:
Resid Equity Transfers
59,301 59,301 152,473
- (10,478)
14,913
156,908
216,209
Capital Acquisition
26,621 26,621 -
-
26,621
Donations
- _33,359
57,075
-
90,434
90,434
Total Additions
85,922 85,922 185,832
46,597
14,913
247,342
333,264
Deductions:
Amortization
(405,092) (184,844) (589,936) (471,886) (4,271) (387,254) (80,936)
(944,347)
(1,534,283)
Write-offs
(8,047)_ -
(8_,047)
(8,047)
Total Deductions
_
(405,092) (194,844) (589,936) (471,886) (4,271) (395,301) (80,936)
(952,394)
(1,542,330)
Ending
Contnbuted Capital
$ 32,637,520 $ 1,923,999 $ 34,461,518 $ 883,554 $ 7,433 $ 382.103 $ 312.743 $
1.595,833
$ 36,047.351
City of Federal Way / 42
The following is a reconciliation of depreciation expense to depreciation reducing contributed capital:
Entcrprisr Funds
Subtotal
Internal Service Funds
Subtotal
Total
Surface Water Dumas Bay
Enterprise
Information
Support Fleet &
Buildings & Internal Service
Proprietary
Mann nwnt Ccutrc
Fends
S sterns
Services E ui meat
Fmn0shings Funds
Funds
Depreciation Expense
$ 405,092 $ 184,844
$ 599,936
$ 471,996
S 4,271 S 387,254
$ 197,436 $ 1,060,847
$ 1,650,783
Less:
Write-off ofAccumDep
- -
-
-
- -
- -
-
Deprec on Building
-
-
-
- -
(116,500) (116,500)
(116,500)
Deprec Reducing
Contrib Capital
$ 405,092 $ 184,844
$ 589,936
$ 471,886
$ 4.271 $ 387.254
$ 90.936 $ 944.347
$ 1,534,283
NOTE 14
Contractual Obligations, Contingencies and Litigation
As of December 31, 2001, 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 fmancial 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, 2001, the City had the following unpaid contractual obligations:
$ 20,084
BPA Trail
$ 40,541
SWM Annual Programs
$ 554,945
SeaTac Mall Detention
$ 1,730,536
23rd Ave South, South 317th to South 324th
$ 183,816
South 320th St & Highway 99 Intersection
$ 83,696
South 312th to South 324th / SR 99 Phase I
$ 555,851
South 324th to South 340th / SR 99 Phase II
$ 125,372
South 336th & Weyerhauser Way South
$ 118,891
South 288th Street / SR 99
$ 67,773
Dumas Bay Centre
NOTE 15
Fund Additions and Deletions
In an effort to reduce the number of funds, the Snow & Ice Removal Fund, Strategic Reserve Fund and
Airport Strategic Reserve Funds were deleted. Snow and ice removal is accounted for in the Street Fund.
Strategic and Airport Strategic Reserve fund balances are accounted for in the Risk Management Fund.
City of Federal Way / 43
NOTE 16
Segment Information for Enterprise Funds
The City maintains two enterprises whose operations are accounted for in the enterprise funds and are
financed and operated in a manner similar to private business. It is generally intended that the costs of
providing goods or services to the general public on a continuing basis should be financed or recovered
primarily through user charges. Segment information for the year ended December 31, 2001 follows:
City of Federal Way
Statement of Revenues, Expenses & Changes in Net Assets - Proprietary Funds
For the Year Ended December 31, 2001
J
Surface Water
Dumas Bay
Total Enterprise
II
Management
Centre
Funds
otalOperating Revenue
2,993,729
674,157
3,667.98
g%craiing Expenses:
Operations & Maintenance
1,811,389
725,733
2,537,12
Depreciation
405,092
184,844
589,93
Total Operating Expenses
2,216,481
910,577
3.127,05
Net Operating Income (Loss)
777,248
(236,420)
540,82
on -Operating Revenue Net of Expenses
241,480
17,841
259,321
etlncome (Loss)
1,018,728
(218,579)
800,14
Net Working Capital
6,953,365
377,144
7,330.509
Property, Plant, and Equipment
Additions
93,185
93,18
Deletions
(13,193)
-
(13.193
ct Property, Plant, and Equipment
31,086,706
4,882,000
35,968,70
onstruction in Progress
5,569,244
28,663
5.597.90
otalAssets
44,189,344
5,489,761
49,679,10
Long Term Liabilities - Public Works Trust Fund Loan
3,249,347
-
3,249,34
Total Fund E uity
40,359,968
5287,807
45,647,77
NOTE 17
Joint Venture
On August 20, 1976, the Cities of Auburn, Kent, Renton and Tukwila entered into an interlocal agreement
to provide their citizens with quality emergency dispatching services through the formation of the Valley
Communications Center. On June 16, 1993, the cities of Auburn, Kent, Renton and Tukwila modified the
interlocal agreement to establish Valley Communications Center, hereafter referred to as Valley Com, as a
governmental administration agency under RCW 39.34.030 (3) (b). Effective April 17, 2000, the Cities
father modified and replaced the Interlocal Agreement, in order to add the City of Federal Way as a
member city of Valley Com beginning January 1, 2000, add the agreement to the Cities to finance the
project, and provide that the Interlocal Agreement may not be terminated during the term of the bonds.
In addition to serving the emergency communications needs of the five member cities, Valley Com serves
several other subscribing agencies, which include King County Fire Districts #2, #17, #20, #26, #40, #43,
#44, #46, #47; City of Pacific Police and Fire Departments, City of Algona Police Department, City of Des
Moines Police Department, City of Black Diamond Police Department, and King County EMS Units.
Separate agreements between Valley Com and the subscribing agencies have been executed, which set forth
conditions of services and rates charged.
City of Federal Way / 44
The allocation of prorated financial participation among the five member cities is the percentage of
dispatched calls attributed to each jurisdiction compared to the total estimated dispatched calls, for the
current twelve month period ending December 31. The percentages are applied to the current approved
budget, less revenue from all other sources. Distribution of the current year net income is based on the
same percentages. The 2001 cost distributions for the five member cities are as follows:
Dispatchable
Percent
2001
City
Calls
of Total
Assessments
Renton
63,378
19.07% $
980,653
Kent
91,625
28.08%
1,444,492
Auburn
66,908
20.19%
1,038,622
Tukwila
37,980
10.96%
563,597
Federal Way
71,629
21.70%
1,116,148
Total
331,520
100.00% $
5,143,512
Valley Com is governed by an Administration Board, composed of the Mayors or designated
representatives from the five participating cities of Federal Way, Renton, Kent, Auburn, and Tukwila. The
Administration Board is authorized to establish bylaws that govern procedures of the Board and Valley
Com's general operations for the following functions: 1) Budget review and recommendations to the
legislative bodies of the member cities, and budget adoption after each legislative body has approved the
required financial participation for the ensuing year; 2) Approve appointment and/or discharge of the
Director; 3) Approve personnel policy and make final decisions on all major policy changes; and 4) Review
and approves all contracts.
In addition, an Operations Board provides administration, and consists of a member from each participating
city's police and fire departments, including the directors of such departments or their designees. Also on
the Operations Board is an appointed representative of the Police and Fire contract agencies. The
Operations Board performs the following functions: 1) Oversees the general operation of Valley Com, and
advises and makes recommendations to the Administration Board; 2) Make recommendations on Director
selection; 3) Presents proposed policies and budgets to the Administration Board; and 4) Reviews
disbursements of fiords by the Director.
The Director presents a proposed budget to the Operating Board on or before August 15 of each year. Said
budget is then presented to the Administrative Board by September 1 of each year. The Administration
Board can make changes to the proposed Valley Com budget as it finds necessary, but final approval falls to
the legislative body of each member city, in accordance with the provisions of the interlocal agreement.
The following condensed financial information is from Valley Com's comprehensive annual financial report
for the fiscal year ended December 31, 2001. Audited 2001 financial statements are available from Valley
Com.
Valley Communications Center
Balance Sheet
As of December 31, 2001
Assets
Current Assets 9,301,776
Plant, Property, and Equipment 16,584,110
Total Assets 25,885,886
Liabilities & Fund Equity
Current Liabilities
Total Liabilities
Retained Earnings
Contributed Capital
800-MHz Contributed Capital (t)
Total Fund Equity
Total Liabilities & Fund Equity
966,663
966,663
17,955,521
48,502
6,915,200
24,919,223
25,885,886
City of Federal Way / 45
Valley Communications Center
Statement of Revenue, Expenses, and Changes in Fund Equity
For the Year Ending December 31, 2001
Operating Revenues
Charges for Intergovernmental Services $ 6,821,532
Other Operating Revenue 6,229
Total Operating Revenue 6,827,761
Operating Expenses
Salaries & Benefits 4,971,422
Other Operation & Maintenance 851,306
Depreciation 183,583
Total Operating Expenses 6,006,311
Income (Loss) from Operations 821,450
Non -Operating Revenues (Expenses)
Interest Revenue
368,119
Net Increase/(Decrease) in Fair Value of Investments
17,582
Contributions
50
Leasehold Revenue
20,181
Construction Funds
6,500,000
Easement Revenue
-
Gain (Loss) from Sale of Fixed Assets
(45,002)
Total Non -Operating Revenue
6,860,930
Net Income (loss)
7,682,380
Retained Earnings at Beginning of Year
10,273,141
Retained Earnings at End of Year
17,955,521
Contributed Capital at Beginning of Year
6,987,320
Additional Contributed Capital
(23,617)
Additional 800 MHz Contributed Capital
Contributed Capital at End of Year
6,963,703
Total Fund Equity at End of Year
$ 24,919,224
The share of equity belonging to the five participating cities is shown below. Liabilities are the
responsibility of the four participating cities in direct proportion to their equity position.
Renton Kent Auburn Tukwila Federal Way Total
Equity ® January 1, 2001 $ 2,546,163 $ 3,247,038 $ 2,266,521 $ 1,715,909 $ 569,630 $ 10,345,261
Current Year Increase 1,541,096 2,217,346 1,521,454 976,734 1,402,132 7;658,762
Equity cQ December 31, 2001 S 4,087,259 $ 5,464,384 $ 3,787,975 $ 2,692,643 $ 1,971,762 $ 18,004,023
Percent of Equity 22.70% 30.35% 21.04% 14.96% 10.95% 100.00%
Percent of 2001 Distribution 20.12% 28.95% 19.87% 12.75% 18.31% 100.000/0
In May 1993 Valley Corn entered into an agreement with King County to provide joint project management
for the acquisition and installation of 800-MHz emergency radio communications system approved by the
voters of King County in conjunction with a $57 million levy. In August 1993 Valley Com also entered
into an Interlocal Cooperation Agreement with the subregions of King County, Seattle, and Eastside Public
Safety Communications, which governs the development and installation of the new 800-MHz emergency
radio system Valley Corn now provides emergency communication dispatch services to a population of
approximately 570,000.
Valley Corn operates as an enterprise fund and is totally self supporting through the implementation of user
fees and the primary source of revenue is provided by charges for calls for service. The 800-MHz
emergency radio communications system operated by the agreement with King County is operated as a
separate enterprise fund, and the Member Cities have no equity interest in the contributed capital from this
system.
CITY •F
General Fund The General Fund is used to account for all receipt and
disbursement transactions associated with ordinary City
operations that are not required to be accounted for in
another fund. This fund is both tax and general revenue
supported. Major revenue sources for the General Fund
include property, sales, excise and other taxes, and
miscellaneous permits and fees.
City of Federal Way / 48
GENERAL FUND
COMPARATIVE BALANCE SHEET
December 31, 2001 and 2000
2001
2000
ASSETS
Equity in pooled cash and investments $
7,643,451
$ 5,869,462
Prepaid Insurance
11,850
6,202
Receivables (net):
Taxes
459,291
495,648
Accounts and contracts
398,673
402,006
Interest
3,080
71,804
Due from other governments
1,274,475
1,147,826
Interfund loans receivable
10,000
10,000
TOTAL ASSETS
9,800,820
8,002,948
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
479,022
537,623
Accounts/payroll payable
17,936
6,914
Due to other governments
197,292
101,145
Deposits payable
315,448
447,702
Deferred revenue
526,655
289119
TOTAL LIABILITIES
1,536,353
1,382,503
Fund balance:
Reserved for:
Interfund loans
10,000
10,000
Petty cash/change funds
4,150
4,200
Police special funds
458,685
528,297
Advance travel
5,000
5,000
Prepaid insurance
11,850
6,202
Unreserved:
Undesignated
7,774,782
6,066,746
TOTAL FUND BALANCE
8,264,467
6,620,445
TOTAL LIABILITIES AND FUND BALANCE $
9,800,820
$ 8,002,948
City of Federal Way / 49
GENERAL FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 2001 and 2000
2001
2000
REVENUES:
Taxes
$ 21,489,570
$ 20,623,483
Licenses and permits
1,301,940
1,239,007
Intergovernmental
1,512,274
2,195,785
Service charges and fees
2,053,779
1,828,605
Fines and forfeitures
830,668
902,762
Miscellaneous:
Interest
293,887
474,814
Other
460,621
660,195
TOTAL REVENUES
27,942,739
27,924,651
EXPENDITURES:
Current:
General government
4,615,027
4,170,003
Security of persons and property
14,264,309
14,046,638
Physical environment
24,443
24,334
Economic environment
2,570,254
2,494,908
Health
535,589
546,191
Culture and recreation
2,951,607
2,940,818
Capital outlay
49,791
191,048
TOTAL EXPENDITURES
25,011,020
24,413,940
EXCESS OF REVENUES OVER EXPENDITURES
2,931,719
3,510,711
OTHER FINANCING SOURCES (USES):
Operating transfers in 268,111 187,190
Operating transfers out (1,342,535) (1,620,217)
TOTAL OTHER FINANCING SOURCES (USES) (1,074,424) (1,433,027)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES AND OTHER USES 1,857,295 2,077,684
FUND BALANCE AT BEGINNING OF YEAR 6,620,445 4,827,571
Residual equity transfers out (213,273) (284,810)
FUND BALANCE AT END OF YEAR $ 8,264,467 $ 6,620,445
City of Federal Way / 50
GENERALFUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Years Ended December 31, 2001 and 2000
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 in
Operating transfers out
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER EXPENDITURES
AND OTHER USES
FUND BALANCE AT BEGINNING OF YEAR
Residual equity transfers out
FUND BALANCE AT END OF YEAR
Variance
Favorable
2000
Budget
Actual
(Unfavorable)
Actual
70,700,773
$ 714R9,570
$ 789,297
$ 20,623,483
1,546,474
1,301,940
(244,534)
1,239,007
985,485
1,512,274
526,789
2,195,785
1,731,192
2,053,779
322,587
1,828,605
901,784
830,668
(71,116)
902,762
239,290
293,887
54,597
474,814
333,716
460,621
126,905
660,195
26,438,214
27,942,739
1,504,525
27,924,651
5,623,665
4,615,027
1,008,638
4,170,003
14,819,878
14,264,309
555,569
14,046,638
24,443
24,443
24,334
3,125,570
2,570,254
555,316
2,494,908
575,251
535,589
39,662
546,191
3,071,351
2,951,607
119,744
2,940,818
178,470
49,791
128,679
191,048
27,418,628
25,011,020
2,407,608
24,413,940
(980,414)
2,931,719
3,912,133
3,510,711
351,881
268,111
(83,770)
187,190
(1,820,385)
(1,342,535)
477,850
(1,620,217)
(1,468,504)
(1,074,424)
394,080
(1,433,027)
(2,448,918)
1,857,295
4,306,213
2,077,684
6,620,445
6,620,445
-
4,827,571
(410,516)
(213,273)
197,243
(284,810)
$ 3,761,011
$ 8,264,467
$ 4,503,456
$ 6,620,445
City of Federal Way / 51
GENERALFUND
SCHEDULE OF EXPENDTTURES COMPARED TO BUDGET
For the Year Ended December 31, 2001
GENERAL GOVERNMENT
LEGISLATIVE:
Personal services
Supplies
Service charges and fees
Intergovernmental services
Interfund services
TOTAL LEGISLATIVE
JUDICIAL:
Personal services
Supplies
Service charges and fees
Intergovermental services
Interfund services
TOTAL JUDICIAL
EXECUTIVE:
Personal services
Supplies
Service charges and fees
Interfund services
TOTAL EXECUTIVE
FINANCIAL AND RECORD SERVICES:
Personal services
Supplies
Service charges and fees
Intergovernmental services
Interfund services
TOTAL FINANCIAL AND RECORD SERVICES
LEGAL:
Personal services
Supplies
Service charges and fees
Intergovernmental services
Interfund services
TOTALLEGAL
PERSONNEL:
Personal services
Supplies
Service charges and fees
Interfund services
TOTAL PERSONNEL
CENTRAL SERVICES:
Personal services
Supplies
Service charges and fees
Intergovernmental services
TOTAL CENTRAL SERVICES
TOTAL GENERAL GOVERNMENT
Variance
Favorable
Budget Actual (Unfavorable)
$ 71,968 $
70,260 $
1,708
1,460
2,572
(1,112)
98,161
105,928
(7,767)
70,000
81,309
(11,309)
28,199
25,327
2,872
269,788
285,396
(15,608)
659,289
677,503.
(18,214)
9,800
11,956
(2,156)
191,397
116,745
74,652
194,704
181,438
13,266
1,055,190
987,642
67,548
437,402
386,571
50,831
4,300
2,942
1,358
42,800
47,799
(4,999)
802,751
78,066
724,685
1,287,253
515,378
771,875
721,138
699,008
22,130
6,275
5,569
706
59,843
88,935
(29,092)
42,000
42,031
(31)
332,534
315,866
16,668
1,161,790
1,151,409
10,381
809,572
759,310
50,262
9,075
8,112
963
336,587
330,020
6,567
500
67
433
110,767
101,445
9,322
1,266,501
1,198,954
67,547
201,952
209,623
(7,671)
15,291
7,948
7,443
104,940
113,687
(8,747)
168,044
53,842
114,202
490,227
385,000
105,227
77,947
77,595
352
400
264
136
12,569
10,971
1,598
2,000
2,418
(418)
92,916
91,248
1,668
5,623,665
4,615,027
1,008,638
Page 1 of 4
City of Federal Way / 52
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31.2001
SECURITY OF PERSONS AND PROPERTY
LAW ENFORCEMENT:
Personal services
Supplies
Service charges and fees
Intergovernmental services
Interfund services
TOTAL LAW ENFORCEMENT
DETENTION AND/OR CORRECTION:
Intergovermental services
TOTAL DETENTION AND/OR CORRECTION
COMMUNICATION, ALARM & DISPATCH:
Personal services
Supplies
Service charges and fees
Intergovernmental services
TOTAL COMMUNICATION, ALARM & DISPATCH
TOTAL SECURITY OF PERSONS AND PROPERTY
PHYSICAL ENVIRONMENT
NATURAL RESOURCES:
Intergovernmental services
TOTAL NATURAL RESOURCES
TOTAL PHYSICAL ENVIRONMENT
ECONOMIC ENVIRONMENT
AGING:
Personal services
Supplies
Service charges and fees
Intergovernmental services
TOTAL AGING
COMMUNITY SERVICES:
Personal services
Supplies
Service charges and fees
Interfund services
TOTAL COMMUNITY SERVICES
PLANNING AND COMMUNITY DEVELOPMENT:
Personal services
Supplies
Service charges and fees
Intergovernmental services
Interfund services
TOTAL PLANNING AND COMMUNITY DEVELOPMENT
(Continued)
Variance
Favorable
Budget
Actual
(Unfavorable)
9,503,450
9,293,393
210,057
704,828
392,650
312,178
480,394
624,311
(143,917)
9,877
4,495
5,382
1,085,165
1,044,243
40,922
11,783,714
11,359,092
424,622
1,388,938
1,333,515
55,423
1,388,938
1,333,515
55,423
686,930
641,731
45,199
11,585
11,328
257
295
6,125
(5,830)
948,416
912,518
35,898
1,947,226
1,571,702
75,524
14,819,878
14,264.309
555,569
24,443 24,443
24,443 24,443
24,443 24,443 _
63,003
51,775
11,229
5,250
930
4,320
22,564
1,816
20,748
-
56
(56)
90,817
54,577
36,240
69,811
49,735
20,076
6,350
5,191
1,159
48,730
37,053
11,677
13,169
11,741
1,428
138,060
103,720
34,340
952,426
911,155
41,271
9,705
5,910
3,795
723,008
315,356
407,652
50
511
(461)
201,000
179,831
21,169
1,886,189
1,412,763
473,426
Page 2 of 4
City of Federal Way / 53
GENERALFUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 2001
HOUSING AND COMMUNITY DEVELOPMENT:
Personal services
Supplies
Service charges and fees
Interfund services
TOTAL HOUSING AND COMMUNITY DEVELOPMENT
TOTAL ECONOMIC ENVIRONMENT
MENTAL & PHYSICAL HEALTH
PUBLIC HEALTH:
Personal services
Supplies
Service charges and fees
Intergovemmental services
Interfund services
TOTAL PUBLIC HEALTH
TOTAL MENTAL & PHYSICAL HEALTH
CULTURE AND RECREATION
EDUCATION:
Personal services
Supplies
Service charges and fees
Interfund services
TOTAL EDUCATION
SPECTATOR AND COMMUNITY EVENTS:
Personal services
Supplies
Service charges and fees
Intergovemmental services
Interfund services
TOTAL SPECTATOR AND COMMUNITY EVENTS
PARTICIPANT RECREATION:
Personal services
Supplies
Service charges and fees
Intergovernmental services
TOTAL PARTICIPANT RECREATION
CULTURAL AND RECREATION FACILITIES:
Personal services
Supplies
Service charges and fees
Intergovernmental services
Interfund services
TOTAL CULTURAL AND RECREATION ACTIVITIES
(Continued)
Variance
Favorable
Budget
Actual
(Unfavorable)
740,929
732,489
8,440
6,275
4,787
1,488
22,563
33,145
(10,582)
240,737
228,773
11,964
1,010,504
999,194
11,310
3,125,570
2,570,254
555,316
99,340
95,073
4,267
1,475
922
553
428,185
399,566
28,619
14,500
11,000
3,500
31,751
29,028
2,723
575,251
535,589
39,662
575,251
535,589
39,662
173,707
165,855
7,852
3,300
4,050
(750)
60,735
35,733
25,002
96,875
89,032
7,843
334,617
294,670
39,947
321,708
345,821
(24,113)
34,635
40,355
(5,720)
189,659
237,507
(47,848)
700
100
600
25,505
23,112
2,393
572,207
646,895
(74,688)
230,889
208,654
22,235
19,925
13,748
6,177
23,570
22,351
1,219
100
1,277
(1,177)
274,484
246,030
28,454
12,000
8,728
3,272
1,000
1,671
(671)
750
2,535
(1,785)
600
364
236
46,090
42,757
3,333
60,440
56,055
4,385
Page 3 of 4
City of Federal Way / 54
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 2001
PARK FACILITIES:
Personal services
Supplies
Service charges and fees
Intergovernmental services
Interfund services
TOTAL PARK FACILITIES
TOTAL CULTURE AND RECREATION
CAPITAL OUTLAY
OTHER FINANCING USES
Operating transfers out
Residual equity transfers out
TOTAL OTHER FINANCING USES
TOTAL GENERAL FUND
(Continued)
Variance
Favorable
Budget
Actual
(Unfavorable)
1,020,679
1,012,152
8,527
148,142
116,015
32,127
441,604
376,192
65,412
7,000
1,343
5,657
212178
202,255
9,923
1,829,603
1,707,957
121,646
3,071.351
2,951,607
119.744
178,470
49,791
128,679
1,820,385
1,342,535
477,850
410,516
213,273
197,243
2,230.901
1,555,808
675,093
$ 29,649,529
S 26,566,828
$ 3,082,701
Page 4 of 4
Special Revenue Funds Special revenue funds are used to account for the proceeds of revenue sources (other than
special assessments, expendable trusts or major capital projects) that are legally restricted to
expenditures for specified purposes.
A description of each individual Special Revenue Fund included in the Comprehensive Annual
Financial Report is provided below:
The Street Fund accounts for receipt and disbursement of
State -levied "unrestricted" motor vehicle fuel taxes which
must be accounted for in a separate fund and expended for
street -oriented engineering, construction and maintenance
purposes only.
The Arterial Street Fund accounts for the receipt and
expenditure of the State -levied motor vehicle fuel tax
distributed to the City in accordance with State R. C. W.
82.36.020. These revenues are to be used for the
construction, improvement, chip sealing, seal -coating, and
repair of arterial highways and city streets, or for the
payment of related municipal indebtedness.
The Utility Tax Fund was established to account for all
utility tax receipts. These receipts will subsequently be
distributed to various funds (Debt Service, Capital
Improvement Projects, etc) for project expenditure as
determined by the City Council.
The Solid Waste/Recycling Fund was established to account
for special refuse collection fees used to manage the Solid
Waste and Recycling program.
The Special Contracts/Studies Fund accounts for receipts
and disbursements related to special contracts and special
projects where completion will extend beyond the calendar
year.
The Snow and Ice Removal Fund was created to account
for the snow and ice removal funding and carryover from
year to year.
The Hotel/Motel Lodging Tax Fund was established to
account for all lodging tax receipts and disbursements
related to tourism promotion and acquisition and/or
operation of tourism -related facilities.
The Two Percent for Arts Fund was established for the
purpose of providhjz funding for arts projects. The funds
are to be used to create a variety of cultural opportunities
for citizens and to enhance the cultural environment in the
community by encouraging and promoting the creation and
placement of art in public places and the incorporation of
art into project design.
The Community Development Block Grant Fund accounts
for the receipt and disbursement of federal grant revenue
received through the Department of Housing and Urban
Development's Community Development Block Grant
Program. Separate subsidiary records are maintained to
administer the individual projects accounted for in this fund.
The Path and Trails Reserve Fund was established in
accordance with State law to accumulate unexpended
proceeds of the City's % % motor vehicle fuel tax receipts
which are restricted in use to the construction and
maintenance ofpaths and trails within City right-of-way.
The Strategic Reserve Fund was established to set aside
financial resources to be used to mitigate adverse situations
occurring as the result of severe short-term revenue
shortfalls or expenditures resulting from emergencies, or as
otherwise designated by the City
The Airport Strategic Reserve Fund was established to set
aside financial resources to contest expansion of the SeaTac
International Airport.
City of Federal Way / 56
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Special
Arterial
Utility Tax
Solid Waste/
Contracts/
Street
Street
Projects
Recycling
Studies
ASSETS
Equity in pooled cash and investments
$ 1,588,239
$ 719,724
$ 5,476,496
$ 99,381
$ 123,838
Retainage in escrow
-
-
-
-
-
Receivables (net):
Taxes
692,425
Accounts and contracts
-
-
-
12,225
-
Interest
371
228
1,834
41
43
Due from other funds
-
-
-
-
-
Due from other governments
8,035
-
98,351
-
TOTAL ASSETS
1,596,645
719,952
6,170,755
209,998
123,881
LIABILITIES AND FUND BALANCES
Liabilities:
Vouchers payable
141,855
10,654 -
Accounts/payroll payable
-
-
Retainage payable
-
-
Due to other governments
52,794 - -
- -
Due to other funds
- - -
- -
Performance bonds
- -
- -
Deposits payable
1,094,802 - -
Interfund loans payable
- - -
- -
Deferred revenue
31,268 - -
- -
TOTAL_LIABILITIES
1,320,719 _ - -
_-10,654_
Fund balance:
Reserved for:
Paths and trails
- -
-
Unreserved:
Designated snow & ice removal
100,000
- -
Undesignated
175,926 719,952 6,170,755
199,344 123,881
TOTAL FUND BALANCES
275,926 719,952 6,170,755
199,344 123,881
TOTAL LIABILITIES AND FUND BALANCE $
1,596,645 $ 719,952 $ 6,170,755 $
209,998 $ 123,881
Page 1 of 2
City of Federal Way / 57
Community Paths and Airport
Snow and Hotel/Motel 2% for the Development Trails Strategic Strategic
Ice Removal Lodging Tax Arts Block Grant Reserve Reserve Reserve
Totals
2001 2000
$ $ 179,829 $ 28,114 $
11,245 $ 41,848 $
$ $ 8,268,714
$ 7,760,322
_
_ _
-
75,295
_
692,425
638,981
-
1,643 -
13,868
23,901
58
- 15
2,590
91,356
7,374 -
30,103 -
143,863
334,457
187,261 28,114
42,991 41,863
9,121,460
8,924,312
36,712 15,613
- 13,238
10,000
36,712 38,851
204,834
225,448
13,238
20,725
-
77,664
52,794
-
1,094,802
1,040,760
10,000
10,000
31,268
23,373
- 1,406,936
1,397,970
41,863 41,863 32,414
100,000 100,000
150,549 28,114 4,140 7,572,661 7,393,928
150,549 28,114 4,140 41,863 - 7,714,524 7,526,342
$ $ 187,261 $ 28,114 $ 42,991 $ 41,863 $ $ $ 9,121,460 $ 8,924,312
Page 2 of 2
City of Federal Way / 58
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Solid Special
Arterial Utility Waste/ Contracts/
Street Street Tax Recycling ' Studies
REVENUES
Taxes $ - $ - $ 6,098,360 $ $
Licenses and permits 74,754 - - 20,000
Intergovernmental 1,922,646 556,619 123,165 -
Service charges and fees 322,991 - - 148,718 -
Miscellaneous:
Interest 29,289 42,865 117,909 5,807 4,699
Other 27,071 - - - -
TOTAL REVENUES 2,376,751 599,484 6,216,269 277,690 24,699
EXPENDITURES:
Current:
General government
50,000
-
11,866
Physical environment
-
-
-
353,623
-
Transportation
3,199,898
1,354,285
-
-
Economic environment
-
-
Culture and recreation
-
Capital outlay
-
-
-
-
-
TOTAL EXPENDITURES
3,199,898
1,354,285
50,000
353,623
11,866
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
(823,147)
(754,801)
6,166,269
(75,933)
12,833
OTHER FINANCING SOURCES (USES):
Proceeds of long-term debt
-
-
-
Operating transfers in
1,101,827
987,259
Operating transfers out
-
-
(4,402,950)
TOTAL OTHER FINANCING SOURCES (USES)
1,101,827
987,259
(4,402,950)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
278,680
232,458
1,763,319
(75,933)
12,833
FUND BALANCES AT BEGINNING OF YEAR
-
487,494
4,407,436
275,459
111,048
Residual equity transfers out
(2,754)
-
(182)
-
FUND BALANCES AT END OF YEAR
$ 275,926
$ 719,952
$ 6,170,755
$ 199,344
$ 123,881
Page 1 of 2
City of Federal Way / 59
Snow
Hotel/Motel
Community
Paths and
Airport
and Ice
Lodging
2% for the
Development
Trails
Strategic
Strategic
Totals
Removal
Tax
Arts
Block Grant
Reserve
Reserve
Reserve
2001
2000
$
$ 136,046
$
$
$ $
$
$ 6,234,406 $
5,722,285
94,754
195,020
242,322
8,072
2,852,824
3,056,114
_
471,709
391,343
4,035
1,377
32,424
238,405
499,297
_
_
27,071
1,631
140,081
242,322
9,449
32,424
9,919,169
9,865,690
-
47,359
-
109,225
67,849
_
353,623
294,375
_
_
4,554,183
4,661,867
48,016
60,904
-
108,920
139,103
_
_
_
-
94,000
-
126,760
126,760
317,871
48,016
235,023
-
5,252,711
5,575,065
92,065
7,299
9,449
32,424
-
4,666,458
4,290,625
8,840
13,148
-
-
-
2,111,074
1,709,277
(100,000)
(22,746)
-
(1,760,718)
(300,000)
(6,586,414)
(4,412,391)
(100,000)
8,840
(9,598)
(1,760,718)
(300,000)
(4,475,340)
(2,703,114)
(100,000)
92,065
8,840
(2,299)
9,449
(1,728,294)
(300,000)
191,118
1,587,511
100,000
58,484
19,274
6,439
32,414
1,728,294
300,000
7,526,342
5,947,267
_
_
(2,936)
(8,436)
$
$ 150,549
$ 28,114
$ 4,140
$ 41,863 $
$
$ 7,714,524 $
7,526,342
Page 2 of 2
City of Federal Way / 60
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Street Fund
Variance
Favorable
2000
Budget
Actual
(Unfavorable)
Actual
REVENUES:
Taxes
$
$ -
$ -
$ 5,048
Licenses and permits
101,236
74,754
(26,482)
95,020
Intergovernmental
1,919,712
1,922,646
2,934
1,936,059
Service charges and fees
158,347
322,991
164,644
216,878
Miscellaneous:
Interest
35,274
29,289
(5,985)
62,601
Other
-
27,071
27,071
1,631
TOTAL REVENUES
2,214,569
2,376,751
162,182
2,317,237
EXPENDITURES:
Current:
General governmental
-
-
-
-
Physical environment
-
-
-
-
Transportation
3,672,903
3,199,898
473,005
3,194,102
Economic environment
-
-
-
-
TOTAL EXPENDITURES
3,672,903
3,199,898
473,005
3,194,102
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
(1,458,334)
(823,147)
635,187
(876,865)
OTHER FINANCING SOURCES (USES):
Proceeds of long-term debt
Operating transfers in
1,579,677
1,101,827
(477,850)
737,455
Operating transfers out
-
TOTAL OTHER FINANCING SOURCES (USES)
1,579,677
1,101,827
(477,850)
737,455
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
121,343
278,680
157,337
(139,410)
FUND BALANCES AT BEGINNING OF YEAR - 147,681
Residual equity transfers out (3,343) (2,754) 589 (8,271)
FUND BALANCES AT END OF YEAR $ 118,000 $ 275,926 $ 157,926 $
Page 1 of 7
City of Federal Way / 61
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Arterial Street Fund
Utility Tax Fund
Variance
Variance
Favorable
2000
Favorable
2000
Budget
Actual
(Unfavorable)
Actual
Budget
Actual (Unfavorable)
Actual
$
$
$
$
$ 6,016,400
$ 6,098,360 $ 81,960
$ 5,590,470
542,275
556,619
14,344
550,460
-
-
-
20,100
-
30,000
42,865
12,865
57,656
250,000
117,909 (132,091)
232,123
572,275
599,484
27,209
628,216
6,266,400
6,216,269 (50,131)
5,822,593
50,000 50,000 -
2,005,169 1,354,285 650,884 1,458,054 -
2,005,169 1,354,285 650,884 1,458,054 50,000 50,000 -
(1,432,894) (754,801) 678,093 (829,838) 6,216,400 6,166,269 (50,131) 5,822,593
987,259 987,259 967,901 -
- - - (4,402,949) (4,402,950) (1) (4,245,306)
987,259 987,259 967,901 (4,402,949) (4,402,950) (4,245,306)
(445,635) 232,458 678,093 138,063 1,813,451 1,763,319 (50,132) 1,577,287
487,494 487,494 - 349,431 4,407,436 4,407,436 - 2,830,149
$ 41,859 $ 719,952 $ 678,093 $ 487,494 $ 6,220,887 $ 6,170,755 $ (50,132) $ 4,407,436
Page 2 of 7
City of Federal Way / 62
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES:
Current:
General governmental
Physical environment
Transportation
Economic environment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds of long-term debt
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
Solid Waste/Recycling Fund
Variance
Favorable 2000
Budget Actual (Unfavorable) Actual
228,301 123,165 (105,136) 101,913
153,013 148,718 (4,295) 154,365
8,381 5,807 (2,574) 13,880
389,695 277,690 (112,005) 270,158
406,730
353,623
53,107
294,375
406,730
353,623
53,107
294,375
(17,035)
(75,933)
(58,898)
(24,217)
(17,035) (75,933) (58,898) (24,217)
275,459 275,459 - 299,841
(304) (182) 122 (165)
$ 258,120 $ 199,344 $ (58,776) $ 275,459
Page 3 of 7
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, 2001
With Comparative Totals for December 31, 2000
Snow and Ice Removal Fund
Variance
Favorable 2000
Budget Actual (Unfavorable) Actual
5,790
Hotel/Motel Lodging Tax
Variance
Favorable 2000
Budget Actual (Unfavorable) Actual
$ 121,500 $ 136,046 $ 14,546 $ 126,767
4,035 4,035 1,050
121,500 140,081 18,581 127,817
9,711
-
-
-
-
-
139,202
48,016
91,186
72,298
9,711
139,202
48,016
91,186
72,298
(3,921)
(17,702)
92,065
109,767
55,519
3,921
(100,000)
(100,000)
-
-
(25,000)
(100,000)
(100,000)
- 3,921
-
-
(25,000)
(100,000)
(100,000)
-
(17,702)
92,065
109,767
30,519
100,000
100,000
100,000
58,484
58,484
-
27,965
$ $
$
$ 100,000
$ 40,782 $
150,549 $
109,767
$ 58,484
Page 4 of 7
City of Federal Way / 64
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Paths and Trails Reserve Fund
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Miscellaneous:
Interest
Other
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Physical environment
Transportation
Economic environment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds of long-term debt
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
Variance
Favorable 2000
Budget Actual (Unfavorable) Actual
8,500 8,072 (428) 8,434
500 1,377 877 1,627
9,000 9,449 449 10,061
9,000 9,449 449 10,061
9,000 9,449 449 10,061
32,414 32,414 - 22,353
$ 41,414 $ 41,863 $ 449 $ 32,414
Page 5 of 7
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, 2001
With Comparative Totals for December 31, 2000
Strategic Reserve Fund Airport Strategic Reserve Fund
Variance Variance
Favorable 2000 Favorable 2000
Budget Actual (Unfavorable) Actual Budget Actual (Unfavorable) Actual
132,500 32,424 (100,076) 121,985
132,500 32,424 (100,076) 121,985
132,500
32,424
(100,076) 121,985
(1,860,794)
(1,760,718)
100,076 (121,895)
(300,000)
(300,000)
(1,860,794)
(1,760,718)
- (121,895)
(300,000)
(300,000)
(1,728,294)
(1,728,294)
90
(300,000)
(300,000) -
1,728,294
1,728,294
1,728,204
300,000
300,000 300,000
$
$ $
$ 1,728,294
$ $
$ $ 300,000
Page 6 of 7
City of Federal Way / 66
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Variance
Favorable 2000
Budget Actual (Unfavorable) Actual
REVENUES
Taxes
$ 6,137,900
$ 6,234,406
$ 96,506
$ 5,722,285
Licenses and permits
101,236
74,754
(26,482)
95,020
Intergovernmental
2,698,788
2,610,502
(88,286)
2,596,866
Service charges and fees
311,360
471,709
160,349
391,343
Miscellaneous:
Interest
456,655
233,706
(222,949)
496,712
Other
-
27,071
27,071
1,631
TOTAL REVENUES
9,705,939
9,652,148
(53,791)
9,303,857
EXPENDITURES
Current:
General governmental
50,000
50,000
-
-
Physical environment
406,730
353,623
53,107
294,375
Transportation
5,678,072
4,554,183
1,123,889
4,661,867
Economic environment
139,202
48,016
91,186
72,298
TOTAL EXPENDITURES
6,274,004
5,005,822
1,268,182
5,028,540
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
3,431,935
4,646,326
1,214,391
4,275,317
OTHER FINANCING SOURCES (USES):
Proceeds of long-term debt
-
-
-
Operating transfers in
2,566,936
2,089,086
(477,850)
1,709,277
Operating transfers out
(6,663,743)
(6,563,668)
100,075
(4,392,201)
TOTAL OTHER FINANCING SOURCES (USES)
(4,096,807)
(4,474,582)
(377,775)
(2,682,924)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
(664,872)
171,744
836,616
1,592,393
FUND BALANCES AT BEGINNING OF YEAR
7,389,581
7,389,581
-
51805,624
Residual equity transfers out
(3,647)
(2,936)
711
(8,436)
FUND BALANCES AT END OF YEAR
$ 6,721,062
$ 7,558,389
$ 837,327
7,389,581
Page 7 of 7
Debt Service Fund The Debt Service Fund accounts for the accumulation of resources for
the payment of general obligation and special assessment bond
principal, interest and related costs.
A description of the individual Debt Service Fund included in the
Comprehensive Annual Financial Report is provided below:
The Debt Service Fund accounts for the debt service on City Council -approved general obligation bonds.
Revenues for this Fund consist of allocations of the City's general property tax levy, operating transfers
from the Utility Tax Project Fund, or other revenues designated by the City Council.
City of Federal Way / 68
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEET
December 31, 2001 and 2000
2001
2000
ASSETS
Equity in pooled cash and investments $
6,491,454
$ 5,708,872
Receivables (net):
Interest
2,243
78,752
Due from other governments
382,740
-
TOTAL ASSETS
6,876,437
5,787,624
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
63
102
Deferred revenue
368,250
-
TOTAL LIABILITIES
368,313
102
Fund balance:
Reserved for debt service
6,508,124
5,787,522
TOTAL FUND BALANCE
6,508,124
5,787,522
TOTAL LIABILITIES AND FUND BALANCE $
6,876,437
$ 5,787,624
City of Federal Way / 69
DEBT SERVICE FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Years Ended December 31, 2001 and 2000
2001 2000
REVENUES:
Taxes $ 1,997,537 $ 2,149,691
Miscellaneous:
Interest 271,008 284,391
Other - -
TOTAL REVENUES
2,268,545
2.434.082
EXPENDITURES:
Debt service:
Principal
2,700,478
2,498,853
Interest, fiscal charges and cash management fees
1,797,614
1,729,858
TOTAL EXPENDITURES
4,498,092
4,228,711
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
(2,229,547)
(1,794,629)
OTHER FINANCING SOURCES (USES):
Operating transfers in
2,950,149
2,918,205
Operating transfers out
-
(1,000,000)
TOTAL OTHER FINANCING SOURCES (USES)
2,950,149
1,918,205
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
720,602
123,576
FUND BALANCE AT BEGINNING OF YEAR
5,787-522
5,663,946
FUND BALANCE AT END OF YEAR $
6,508,124 $
5,787,522
City of Federal Way / 70
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Years Ended December 31, 2001 and 2000
Budget
REVENUES:
Taxes $
1,750,000
Miscollaneow:
Interest
308,882
TOTAL REVENUES
2,058,882
EXPENDITURES:
Debt service:
Principal
2,870,623
Interest, fiscal charges and cash management fees
1,657,918
TOTAL EXPENDITURES
4,528,541
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
(2,469,659)
OTHER FINANCING SOURCES (USES):
Operating transfers in
2,950,149
Operating transfers out
(250,863)
TOTAL OTHER FINANCING SOURCES (USES)
2,699,286
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
229,627
FUND BALANCE AT BEGINNING OF YEAR
6,038,386
FUND BALANCE AT END OF YEAR $
6,268,013
2001
Actual
Variance
Favorable 2000
(Unfavorable) Actual
$ 1,997,537 $ 247,537 $ 2,149,691
271,008 (37,874) 284,391
2,268,545 209,663 2,434,082
2,700,478
170,145
2,498,853
1,797,614
(139,696)
1,729,858
4,498,092
30,449
4,228,711
(2,229,547)
240,112
(1,794,629)
2,950,149
-
2,918,205
250,863
(1,000,000)
2,950,149
250,863
1,918,205
720,602
490,975
123,576
5,787,522
(250,864)
5,663,946
$ 6,508,124
$ 240,111 $
5,787,522
Capital Project Funds The Capital Project Funds account for the acquisition or construction of major capital
facilities with the exception of those facilities financed by proprietary and trust funds. The
major sources of revenue for this fund are general obligation bond proceeds, grants from
other agencies, local taxes and contributions from other funds.
A description of each individual Capital Project Fund included in the Comprehensive
Financial Report is provided below:
The Capital Project - City Facilities Fund was established
to account for receipts and disbursements related to
acquisition, design, construction and any other related
Downtown Revitalization and Public Safety Facility capital
project expenditures.
The Capital Project - Parks Fund was established to
account for receipts and disbursements related to
acquisition, design, construction and any other related parks
capital project expenditures.
The Capital Project - Traffic Fund was established to
account for receipts and disbursements related to
acquisition, design, construction and any other related
traffic project expenditures.
The Capital Project - Transportation Fund was established
to account for receipts and disbursements related to
acquisition, design, construction and any other related street
project expenditures.
City of Federal Way / 72
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
City
Totals
Facilities
Parks
Traffic
Transportation
2001
2000
ASSETS
Equity in pooled cash and investments
S 7,899,884 S
500,054
S 300,886
$ 8,037,647 $
16,738,471 S
17,291,698
Retainage in escrow
-
24,393
-
124,033
148,426
63,273
Receivables (net):
Accounts and contracts
-
-
-
35,924
35,924
200,007
Interest
2,760
178
105
2,945
5,988
209,960
Due from other governments
-
328,513
568,635
897,148
974,588
TOTAL ASSETS
7,902,644
853,138
300,991
8,769,184
17,825,957
18,739,526
LIABILITIES AND FUND BALANCE
Liabilities:
Vouchers payable
26,054
113,120
1,986
262,256
403,416
48,062
Retainage payable
11,299
-
11,299
21,015
Retainage payable - with escrow agent
-
24,393
124,033
148,426
63,273
TOTAL LIABILITIES
26,054
148,812
1,986
386,289
563,141
132,350
Fund Balance:
Unreserved-undesignated
7,876,590
704,326
299,005
8,382,895
17,262,816
18,607,176
TOTAL FUND BALANCES
7,876,590
704,326
299,005
8,382,895
17,262,816
18,607,176
TOTAL LIABILITIES AND FUND BALANCES
$ 7,902,644 S
853,138
S 300,991
$ 8,769,184
17,825,957 S
18,739,526
City of Federal Way / 73
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
City
Totals
Facilities
Parks
Traffic
Transportation
2001
2000
REVENUES:
Intergovernmental
$
$ 573,351
$
$ 3,770,851
$ 4,344,202
$ 2,255,725
Development Contribution/Donation
18,550
871,612
890,162
1,310,326
Miscellaneous:
Interest
254,119
35,297
10,572
330,630
630,617
1,018,918
Other
-
-
-
-
250,010
TOTAL REVENUES
254,11 S
627,198
10,572
4,973,093
5,864,981
4,834,979
EXPENDITURES:
Capital outlay
69,297
1,IS8,692
33,099
6,436,574
7,697,663
3,914,148
TOTAL EXPENDITURES
69,297
1,158,692
33,099
6,436,574
7,697,663
3,914,148
EXCESS (DEFICIENCY) OF REVENUES
184,821
(531,494)
(22,527)
(1,463,481)
(1,832,681)
920,831
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Proceeds from sale of fixed assets
-
-
325,000
325,000
-
Operating transfers in
-
198,308
55,738
254,046
4,439,336
Operating transfers out
(13,148)
(3,840)
(55,737)
(18,000)
(90,725)
(2,027,669)
TOTAL OTHER FINANCING SOURCES (USES)
(13,148)
194,468
(55,737)
362,738
488,321
2,411,667
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES
171,673
(337,026)
(78,264)
(1,100,743)
(1,344,360)
3,332,498
FUND BALANCES AT BEGINNING OF YEAR
7,704,917
1,041,352
377,269
9,483,638
18,607,176
15,274,678
FUND BALANCES AT END OF YEAR
$ 7,876,590
S 704,326
b 299,005
$ 8,382,895
$ 17,262,816
$ 18,607,176
CITY •F r
�
0
--_
Enterprise Fund Enterprise Funds are used to account for government activities that are financed and
operated in a manner similar to private business. Costs of providing services to the general
public are primarily financed by user fees.
The Surface Water Management Fund was established to The Dumas Bay Centre Fund was established to account
administer and account for all receipts and expenditures for the revenues and expenses related to the acquisition,
related to the City s surface and storm water management capital improvements maintenance and operations of the
system. City -owned Dumas Bay Centre and Knutzen Family Theatre.
City of Federal Way / 76
ENTERPRISE FUND
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Surface Water Dumas Bay Total
Management Centre 2001 2000
ASSETS
Current Assets
Equity in pooled cash and investments
$ 7,319,739
$ 569,271
$ 7,889,010 $
6,244,654
Cash with escrow agent
109,069
-
109,069
148,798
Receivables (net):
Taxes
101,954
-
101,954
94,541
Accounts and contracts
-
9,633
9,633
487,312
Interest
2,632
194
2,826
72,053
Due from other governments
-
-
-
TOTAL CURRENT ASSETS
7,533,394
579,098
8,112,492
7,047,358
Property, plant and equipment:
Land
3,708,654
2,109,640
5,818,294
5,818,294
Building/structures
35,233,201
3,542,489
38,775,690
38,788,883
Office fumiture/equipment
656,342
105,033
761,375
668,190
39,598,197
5,757,162
45,355,359
45,275,367
Less accumulated depreciation
(8,511,491)
(875,162)
(9,386,653)
(8,796,719)
Net property, plant and equipment
31,086,706
4,882,000
35,968,706
36,478,648
Construction work in progress
5,569,244
28,663
5,597,907
5.145,562
TOTAL ASSETS
$ 44,189.344
5 5A89,761
$ 49,679,105 $
48,671,568
LIABILITIES AND FUND EQUITY
Current liabilities:
Vouchers payable
$ 106,398
$ 61,994
$ 168,392 $
213,908
Retainage payable
-
-
-
3,730
Retainage payable - with escrow agent
109,069
-
109,069
148,798
Deposits payable
-
9,275
9,275
11,048
Deferred revenue
126,876
121,585
248,461
230,447
Public works trust fund loan payable
216,503
-
216,503
216,503
Compensated absences payable
21,183
9,100
30,283
27,581
TOTAL CURRENT LIABILITIES
580,029
201,954
781,983
852,015
Long-term liabilities:
Public works trust fund loan payable
3,249,347
-
3,249 347
3,465,849
TOTAL LONG-TERM LIABILTIES
3,249,347
-
3,249,347
3,465,849
TOTAL LIABILITIES
3,829,376
201,954
4,031,330
4,317,864
Fund equity:
Contributed capital
32,637,520
1,823,998
34,461,518
34,965,532
Retained Earnings:
Unreserved
7,722,448
3.463,809
11,186,257
9,388,172
Retained earnings
7,722,448
3,463,809
11,186,257
9,388,172
FUND EQUITY
40,359,968
5,287,807
45,647,775
44,353,704
TOTAL LIABILITIES AND FUND EQUITY
$ 44,189,344
$ 5,489,761
$ 49.679,105 $
43,671,568
City of Federal Way / 77
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND EQUITY
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Surface Water Dumas Bay Totals
Management Centre 2001 2000
OPERATING REVENUES:
Intergovernmental
Service charges and fees
Miscellaneous
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Personal services
Materials and supplies
Services and charges
Intergovernmental
Depreciation
Interfund charges
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
NON -OPERATING REVENUES (EXPENSES)
Subsidy from interlocal grants
Interest income
Interest expense
Donations/contributions
TOTAL NON -OPERATING REVENUES (EXPENSES)
INCOME (LOSS) BEFORE OPERATING TRANSFERS
Operating transfers in
Operating transfers out
NET INCOME (LOSS)
Depreciation reducing contributed capital
Increase in retained earnings
RETAINED EARNINGS, January 1
RETAINED EARNINGS, December 31
CONTRIBUTED CAPITAL, January 1
Increases to contributed capital
Less amortization
CONTRIBUTED CAPITAL, December 31
FUND EQUITY AT END OF YEAR
$ -
$ $
23,791
2,993,554
663,023
3,656,577
4,187,292
175
11,134
11,309
29,750
2,993,729
674,157
3,667,886
4,240,833
872,379
212957
1,085,336
982,041
69,873
29,703
99,576
151,973
283,858
434,120
717,978
727,385
125,460
2,118
127,578
121,203
405,092
184,844
589,936
587,437
459,819
46,835
506,654
360,851
2,216,481
910,577
3,127,058
2,930,890
777,248
(236,420)
540,828
1,309,943
-
-
-
1,600
275,840
17,841
293,681
405,567
(34,360)
-
(34,360)
(13,291)
-
-
-
3,137
241,480
17,841
259,321
397,013
1,018,728
(218,579)
800,149
1,706,956
-
408,000
408,000
100,000
-
-
-
(415,626)
1,018,728
189,421
1,208,149
1,391,330
405,092
184,844
589,936
587,437
1,423,820
374,265
1,798,085
1,978,767
6,298,628
3,089,544
9,388,172
7,409,405
7,722,448
3,463,809
11,186,257
9,388,172
32,956,690
2,008,842
34,965,532
33,013,191
85,922
-
85,922
2,539,778
(405,092)
(184,844)
(589,936)
(587,437.)
32,637,520
1,823,998
34,461,518
34,965,532
$ 40,359,968
$ 5,287,807
$ 45,647,775 $
44,353,704
City of Federal Way / 78
ENTERPRISE FUND
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Surface Water Dumas Bay Totals
Management Centre 2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash received from other funds for goods and services
Cash received from other governments for goods and services
Cash payments to suppliers for goods/services
Cash payments to employees
Cash payments to other funds for goods and services
Cash payments for other services/charges
Cash payments to other governments for goods and services
Cash payments for damage deposits
Other operating receipts
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Subsidy from interlocal grant
Operating transfers in
Operating transfers out
NET CASH PROVIDED (USED) BYNONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND CAPITAL -
RELATED FINANCING ACTIVITIES:
Public works trust fund loan proceeds
Principal paid on debt service
Interest paid on debt service
Donations/contributions
Acquisition of capital asset/construction work in progress
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 ACTIVITES
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 (loss)
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
Depreciation expense
(Increase)tdecreasein accounts receivable
(Incr¢ a)/decrease in taxes receivable
(Inc rease)ldecrease in due from other funds
(Increase)Idecrease, in due from other governments
Increasel(decrease)in vouchers/aceounts payable
InereawJ(decrease)in retainage payable
Increase/(decrease) in due to other funds
Increasel(decrease) in deposits payable
Increasel(decrease)in taxes payable
Increasel(decrease)in deferred revenue
Increase/(decrewe) in accrued payroll/compensated absences payable
TOTAL ADJUSTMENTS
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
S 3,445,629 $
695,497 S
4,141,126 $
3,752,755
73,138
(69,873)
(29,703)
(99,576)
(151,973)
(869,468)
(213,166)
(1,082,634)
(963,175)
(459,819)
(46,835)
(506,654)
(360,850)
(370,081)
(393,414)
(763,495)
(656,835)
(125,460)
(2,118)
(127,578)
(121,203)
•
(1,772)
(1,772)
1,206
175
11,134
11,309
29,640
1,551,103
19 6623
1,570,726
1,602,703
1,600
408,000 408,000 100,000
(415,626)
408,000 408,000 (314,026)
-
-
-
2,475,000
(216,503)
-
(216,503)
(86,239)
(34,360)
-
(34,360)
(13,291)
-
3,137
(457,481)
(28,663)
(486,144)
(3,181,326)
(708,344)
(28,663)
(737,007)
(802,719)
343,652 _
19,255
362,907
412,972
343,652
19,255
362,907
412,972
1,186,412
418,215
1,604,627
898,930
6,242,396
151,056
6,393,452
5,494,522
7.428.808
569,271
7,998,079
6,393,452
777,248
(236,420)
540,828
1,309,943
405,092
184,844
589,936
587,437
455,778
21,901
477,679
(451,086)
(7,413)
-
(7,413)
(13,898)
49,347
(86,223)
40,706
(45,517)
70,551
(3,730)
-
(3,730)
(12,629)
(1,772)
(1,772)
1,206
7,441
10,573
18,014
42,966
2,911
(209)
2,702
t8,966
773,855
256,043
1,029,B95
292.760
S 1,551,103 $
19,623 $
1,570,726 $
1,602,703
Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by
one department or agency to other departments or agencies of a government, or to other
governments, on a cost -reimbursement basis.
A description of each individual Internal Service Fund included in the Comprehensive Annual
Financial Report is provided below:
The Risk Management Fund accounts for the City's risk
financing activities established to minimize adverse effects of
losses associated with property and casualty, medical and
dental, unemployment and worker's compensation claims.
Both risk control (to minimize the losses that strike and
organization) and risk financing (to obtain finances to
provide for or restore the economic damages of those losses)
are involved. The City is currently self -insuring only State
Unemployment Compensation. Related premiums received
by the fund are used to reimburse the unemployment benefits
paid to eligible individuals and to establish reserves for the
payment of estimated future unemployment claims liability.
The City is also currently recovering costs and building
reserves for general liability including property, casualty,
errors and omissions and fidelity coverage.
The Information Systems Fund was established to account
for all costs associated with data processing,
telecommunications and the Geographical Information
System (GIS). This fund will own and depreciate all non-
proprietary fund assets related to these functions, and will
charge equipment/software users for both
maintenance%perating costs and equipment replacement
charges based on depreciation schedules.
The Support Services Fund will account for duplication,
graphics and other general support services provided to
departments and funds throughout the City.
The Fleet and Equipment Fund accounts for the cost of
maintaining City vehicles and other motorized equipment.
Rates charged to user departments are based on the full cost
of maintaining equipment items, including the recovery of
related depreciation expense.
The Buildings and Furnishings Fund accounts for all costs
associated with the operation and maintenance of specified
City buildings. City building facilities and furnishings will
be owned by this Fund, and both maintenance%perating
costs and depreciation recovery will be charged City
departments and funds. Debt service payments on specified
facility acquisitions are included in this fund along with
revenues dedicated to these payments.
City of Federal Way / 80
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Risk
Information
Support
Fleet and
Buildings and
Totals
Manigcmcni
Systems
Services
F.quipmrnt
2001
2000
ASSETS
Current Assets:
Equity in pooled cash and investments
$ 3,871,595
$ 1,787,268
$ 192,823
$ 1.866,923
$ 1,067,322
$ 8.785,931 $
6,040,535
Prepaid postage
-
-
5,000
-
-
5,000
5,000
Receivables (net):
Accounts and contracts
-
-
-
-
-
-
-
Inlerest
1,382
630
72
633
385
3,102
66,521
Due from other governments
15,511
-
-
15,511
-
TOTAL CURRENT ASSETS
3,888,488
1,787,898
197,895
1,867,556
1,067,707
8,809,544
6,112,056
Property, plant and equipment:
Data processing/
Telecommunication equipment
-
3,872,960
-
-
-
3,872,960
3,520,828
Transportation equipment
-
-
1,982,592
1,982,592
1,956,672
Heavy equipment
-
-
435,030
-
435,030
435,030
Buildings & furnishings
-
-
-
-
3,377,773
3,377,773
3,362,860
Other equipment
112,920
385,286
498,206
415,988
-
358722960
112,920
2.802,908
3,377,773
]0,166,561
9,691,378
Less accumulated depreciation
-
(2,313,397)
(109,517)
(1,447,600)
(1,788.029)
(5,658,543)
(45999,391)
Net property, plant
and equipment
1,559,563
3,403
1,355,308
1,589,744
4,508,018
4,691,987
TOTAL ASSETS
3,888,488
3,347,461
201,298
3,222,864
2,657,451
13,317,562
10,804,043
LIABILITIES AND FUND EQUITY
Current liabilities:
Vouchers payable
18,761
47,644
15,778
25,908
30,199
138,290
95,801
Certificates of participation payable
-
-
-
-
285,000
285,000
270,000
Compensated absences payable
-
57,495
-
-
-
57,495
47,223
TOTAL CURRENT LIABILITIES
18,761
105,139
15,778
255908
315,199
480,785
413,024
Long-term liabilities:
Certificates of participation payable
-
-
_285,000
TOTAL LONG-TERM LIABILITIES
-
-
-
-
-
285,000
TOTAL LIABILITIES
18,761
105,139
15,778
25,908
315,199
4805785
698,024
Fund Equity:
Contributed capital
883,554
7,433
382,103
312,743
1,5855833
2,290,885
Retained Earnings:
Unreserved
3,869,727
2,358,768
178,087
2,814,853
2,029,509
11,250,944
7,815,134
Retained Earnings
3,869,727
2,358,768
178,087
2,814,853
2,029,509
11,250,944
7,815,134
TOTAL FUND EQUITY
3,869,727
3,242.322
185,520
3.196 956
2,342,252
12,836,777
10,106,019
TOTAL LIABILITIES AND FUND EQUITY
$ 3,888,488
$ 3,347,461
$ 201,298
$ 3,222,864
$ 2,657,451
$ 13,317,562 $
10,804,043
City of Federal Way / 81
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND EQUITY
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Risk
Information
Support
Fleet and
Buildings and
Totals
Management
Systems
Services
Equipment
Furnishings
2001
2000
OPERATING REVENUES:
Service charges and fees
$ 678,307
$ 1,346,167
$ 174,542
$ 873,808
$ 625,869
$ 3,698,693 $
3,338,317
Miscellaneous
537
-
537
2,357
TOTAL OPERATING REVENUES
678,307
1.346.704
174,542
873,908
625,869
3,699,230
3,340,674
OPERATING EXPENSES:
Personal services
-
535,554
-
26,639
23,788
585,981
534,791
Materials and supplies
1,762
49,832
19,487
188,799
14,306
274,186
278,833
Services and charges
246,971
311,745
132,992
198,852
256,684
1,147,244
1.074,720
Intergovernmental
-
57,048
-
427
1,236
58,711
9,670
Insurance
232,131
66,847
-
298,978
270,785
Claims
67,700
-
-
-
-
67,700
62,193
Depreciation
-
471,886
4,271
387,254
197,436
1,060,847
1,111,091
TOTAL OPERATING EXPENSES
548.564
1,426,065
156,750
368.F18
493,450
3,493,647
3,342,083
OPERATING INCOME (LOSS)
129,743
(79,361)
17,792
4,990
132,419
205,583
(1,409)
NON -OPERATING REVENUES (EXPENSES)
Interest income
86,787
56,258
6,482
59,701
41,848
251,076
318,472
Interest expense
-
-
-
-
(29,978)
(29,978)
(43,498)
Gains/losses from disposal of fixed assets
-
150
36,338
36,488
16,658
TOTAL NON -OPERATING
REVENUES NET OF EXPENSES
86,787
56,408
6,482
96,039
11,870
257,586
291,632
INCOME (LOSS) BEFORE
OPERATING TRANSFERS
216,530
(22,953)
24,274
101,029
144,289
463,169
290,223
Operating transfers in
2.023.294
-
2,028,294
121,895
NET INCOME (LOSS)
2,244,824
(22,953)
24,274
101,029
144,289
2,491,463
412,118
Add depreciation reducing contributed capital
-
471,886
4,271
387,254
80,936
944,347
987,425
Increase in Retained Earnings
2,244,824
448,933
28,545
488,283
225,225
3,435,810
1,399,543
RETAINED EARNINGS, January 1
1,624,903
1,909,835
149,542
2,326,570
1,804,284
7,815,134
6,415,591
RETAINED EARNINGS, December 31
3,869,727
2,358,768
178,087
2,814,853
2,029,509
11,250,944
7,815,134
CONTRIBUTED CAPITAL, January 1
-
1,169,608
11,704
730,807
378,766
2,290,885
2,782,168
Increases to contributed capital
185,832
-
46,597
14,913
247,342
513,258
Decreases to contributed capital
-
(8,047)
-
(8,047)
(9,950)
Less amortization
(471,886)
(4,271)
(387,254)
(80,936)
(944,347)
(994,591)
CONTRIBUTED CAPITAL, December 31
993,554
7,433
382,103
312,743
1,585,833
2,290,885
FUND EQUITY AT END OF YEAR
$ 3,86%727
S 3.242,322
$ 185,520
g 3,196,956
$ 2,342,252
$ 12,836,777 $
10,106,019
City of Federal Way / 82
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2001
With Comparative Totals for December 31, 2000
Risk
Information
Support
Fleet and
Buildings and
Totals
Management
Systems
Services
E4uipme:n
F::r::i:7ririF:
2001
2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
S 662.796
S 1,346,167
$ 174,542
$ 873,808
$ 625,869
$ 3,683,182
S 3,355,638
Cash payments to suppliers for goods and services
(483,286)
(413,272)
(144,602)
(380,494)
(248,129
(1,669,783)
1669783 ( )
(1,748,642)
Cash payments to employees
-
(525,282)
-
(26.639)
(23,788
575,709 ( )
(537,409)
Cash payments to claimants
(67,700)
-
(67,700)
(62,193)
Cash payments to other funds for goods and services
-
-
(66,847)
-
(66,847)
(51,230)
Other operating receipts
537
537
2,357
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
111,810
40B,150
29,940
399•a2.1
353,952
1.303.660
958,521
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Operating transfers in
2,028,294
-
-
-
2,028.294
121,895
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
2.028,294
-
-
-
2,028,294
121,895
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of capital assets
-
(321,793)
-
(549,189)
(14,913)
(895,895)
(633,011
Cash contributions for capital acquisitions
-
155,493
77,907
14,913
248,313
312,962
Proceeds from sale of fixed assets
-
150
-
36,338
-
36,488
16,658
Principal paid on debt service
-
-
-
(270,000)
(270,000)
(260,000
Interest and fiscal charges paid on debt service
-
(29.978)
{ J,9.9'7S7
(43.d98)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(166,1511)
(434,944)
(299,978)
(901,072)
_ (606 9, 69)
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
105,004
72.038
7,723
78,940
50,789
314,494
326,970
NET CASH PROVIDED (USED) IN INVESTING
ACTIVITIES
105.004
72,038
7,723
78.940
50,789
114,494
326,970
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
2,245,108
314,038
37,663
43,824
104,763
2,745,396
800,497
CASH AND CASH EQUIVALENTS AT BEGIN. OF YEAR
1,626,487
1,473,230
155,160
1,823,099
962,559
6,040.535
5,240.038
CASH AND CASH EQUIVALENTS AT END OF YEAR
3,871,595
1,787,266
192,823
1.866.923
1,067,322
8,785.931
6,040,535
RECONCILIATION OF OPERATING INCOME TO
NET CASH FROV1DED (USED)BY OPERATING
ACTIVITIES
Operating income
129,743
(79,361)
17,792
4,990
132,419
205,563
(1,409)
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
Depreciation expense
-
471,886
4,271
387,254
197,436
1,060,847
1,111,091
(Increase)decrease in accounts receivable
-
-
-
-
-
17,321
(Increase)decrease in prepaid insurancelpostage
-
-
-
-
-
3,150
(Increase)decrease in due from other funds
-
-
-
-
_
_
-
(Increase)decrewe in due from other govts
(15,511)
-
-
-
-
(15.511)
-
Increase(decrease) in vouchers/accounts payable
(2,422)
5,353
7,877
7,584
24,097
42,489
(169,014)
Increase(decrease) in due to other funds
-
-
-
-
_
Increase(decrease) in due to other governments
-
-
Inerease(decrease) in accrued payroll/
compensated absences payable
10,272
101272
(2,618)
TOTAL ADJUSTMENTS
(17,933)
487,511
12.148
394,838
221,533
1,098,097
959,530
NET CASH FRCiV €DFD (USED) BY
OPERATING ACTIVITIES
$ 111,810
$ 408,150
$ 29,940
$ 399,828
$ 353.952
$ 1,303,680
5 958,521
SCHEDULE OF NONCASH INVESTING,
CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets
$ 33,359
$ -
S 94.518
$ -
$ 127,877
$ 220,012
General Fixed Assets The General Fixed Assets Account Group accounts for all fixed assets of the City other than
Account Group those recorded in the Internal Service and Enterprise funds. General fixed assets are reported
in this account group since they do not represent financial resources available for
appropriation in the governmental funds which acquire them.
City of Federal Way / 84
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS
BY SOURCE
December 31, 2001 and 2000
GENERAL FIXED ASSETS
Investment in joint venture
Land
Building
Other improvements
Assets under capital lease
Construction in progress
TOTAL GENERAL FIXED ASSETS
INVESTMENTS IN GENERAL FIXED ASSETS FROM:
Capital Project Funds:
General revenues
General obligation bonds
Grants
General Fund:
General revenues
Donations
Capital lease
Special Revenue Funds:
General revenues
Grants
Capital lease
TOTAL INVESTMENT IN GENERAL FIXED ASSETS
$ 1,971,762
$ 569,630
30,628,680
29,673,623
1,724,241
1,724,241
15,121,584
15,054,676
1,634,000
1,634,000
2,747,211
1,696,292
53,827,478
50,352,462
2,638,071 2,652,982
28,461,806 28,460,294
4,540,390 2,526,690
3,870,234 3,797,651
9,719,802 9,719,802
1,450,000 1,450,000
2,299,637 897,505
663,538 663,538
184,000 184,000
$ 53,827,478 $ 50,352,462
Note: Excludes all non -enterprise public domain assets such as streets, sidewalks, gutters, bridges, and lighting systems.
City of Federal Way / 85
Function/Activity
GENERAL GOVERNMENT
Miscellaneous general government
TOTAL GENERAL GOVERNMENT
SECURITY OF PERSONS & PROPERTY
CULTURE AND RECREATION
TOTAL GENERAL FIXED
ASSETS BY FUNCTION
CONSTRUCTION IN PROGRESS
TOTAL GENERAL FIXED ASSETS
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
December 31, 2001
Joint
Other
Machinery
Total
Venture Land
Buildings Improvements
& Equipment
$ 2,396,217
$ - $ 2,192,244
$ $ 19,973
$ 184,000
2,396,217
2,192,244
19,973
184,000
1,971,762
1,971,762 -
-
-
46,712,288
- 29,886,436
1,724,241 15,101,611
51,080,267 1,971,762 32,078,680 1,724,241 15,121,584 184,000
$ 53,827,478
Note: Excludes all non -enterprise public domain assets such as streets, sidewalks, gutters, bridges, and lighting systems.
City of Federal Way / 86
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 2001
General
General
Fixed Assets
Fixed Assets
O1/01/2001
Additions
Deductions
12/31/2001
GENERAL GOVERNMENT
Miscellaneous general government
$ 1,441,160
$ 1,280,057
$ 325,000
$ 2,396,217
TOTAL GENERAL GOVERNMENT
1,441,160
1,280,057
325,000
2,396,217
SECURITY OF PERSONS & PROPERTY
569,630
1,402,132
-
1,971,762
CULTURE AND RECREATION
46,645,380
66,908
46,712,288
CONSTRUCTION IN PROGRESS
1,696,292
1,050,919
-
2,747,211
TOTAL GENERAL FIXED ASSETS
$ 50,352,462
$ 3,800,016
$ 325,000
$ 53,827,478
Note: Excludes all non -enterprise public domain assets such as streets, sidewalks, gutters, bridges, and lighting systems.
Statistical Section The Statistical Section provides information for the "Last Ten Fiscal Years ". The Tables for
"Special Assessment Collections" and "Schedule of Revenue Bond Coverage" are not
included since the City currently has neither special assessments outstanding nor any revenue
debt in the City's Enterprise Fund.
Table 1
GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (A)
GENERAL, SPECIAL REVENUE, AND DEBT SERVICE FUNDS
1
(B)
CULTURE
OTHER
FISCAL
GENERAL
PUBLIC
PHYSICAL
TRANS-
ECONOMIC
(B)
AND
CAPITAL
DEBT
FINANCING
TOTAL
YEAR
GOVERNMENT
SAFETY
ENVIRONMENT
PORTATION
1
ENVIRONMENT
HEALTH
RECREATION
OUTLAY
SERVICE
USES (C)
EXPENDITURES
1992
$ 2,459,407
$ 6,602,857
$ 121,866
$ 7,924,118
$ 2,000,847 $
1,069,470
$ 2,406,184
$ 401,998
S 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
1994
2,842,741
8,864,249
196,621
4,266,560
2,309,212
1,339,925
2,737,432
11,967
1,639,837
7,810,973
32,019,517
1995
3,093,147
8,805,874
234,624
4,589,709
2,646,293
1,337,711
3,259,672
10,374
1,771,439
6,486,546
32,235,389
1996
3,831,238
10,269,193
304,196
5,309,948
2,298,040
488,604
2,944,815
1,677,848
1,717,048
3,161,572
32,002,502
1997
3,415,715
10,282,388
528,784
6141,223
2,258,033
457,211
2,521,085
319,120
2,982,786
8,695,717
37,602,062
1998
3,823,872
11,851,585
310,482
6:407,351
2,395,851
529,790
2,606,626
141,262
4,414,037
7,182,747
39,663,603
1999
4,464,896
13,430,529
257,483
4,737,307
2,536,058
557.610
3,006,660
143,886
5,209,547
7,795,429
42,139,405
2000
4,237,852
14,046,638
318,709
4,661,867
2,634,011
546,191
3,034,818
508,919
4,228,711
7,032,608
41,250,324
2001
4,724,252
14,264,309
378,066
41554,183
2,679,174
535,589
2,951,607
176,551
4,498,092
7,928,949
42,690,772
(A)
All expenditures are
reported on the modified accrual basis.
They aiIso exclude residual equity transfers.
(B)
During 1992, the human service contracts were reclassified from Economic Environment
to Health.
Beginning 1996, a portion of MVET moneys were diverted from Cities to Counties to provide health service. Cities will
no longer need to pay for health service.
(C) Other financing uses in 1993 excludes $11,867,177 in amount remitted to refunding trustee
NOTE: Prior to 1999, expenditures reported include Surface Water Management (SWM) as a Special Revenue Fund 1999 figures were revised to exclude SWM as the fund was converted to an enterprise fund.
Table 2
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
TOTAL
YEAR
TAXES(B)
PERMITS
REVENUE
SERVICES
FORFEITURES
REVENUE
SOURCES(C)
REVENUE
1992
$ 14,351,929
$ 771,568
$ 9,349,850
$ 3,936,975
$ 414,178
$ 857,660
$ 2,957,298
$ 32,639,458
1993
15,414,561
877,369
7,132,007
3,679,367
504,580
673,704
3,186,012
31,467,600
1994
15,895,472
889,724
6,203,784
.4,061,229
553,579
834,792
3,766,908
32,205,488
1995
16,351,547
961,807
6,303,245
4,277,815
572,446
1,084,007
2,056,467
31,607,334
1996
18,080,794
917,219
5,667,480
4,195,678
520,670
929,396
2,029,230
32,340,467
1997
21,861,900
1,112,135
6,609,989
4,235,379
576,054
1,151,330
5,333,403
40,880,190
1998
24,024,928
1,192,610
6,311,889
4,797,634
791,113
1,511,601
4,718,447
43,348,222
1999
27,059,338
1,548,220
5,789,602
1,705,785
825,404
1,216,865
5,783,457
43,928,671
2000
28,495,459
1,434,027
5,251,899
2,219,948
902,762
1,920,328
4,814,672
45,039,095
2001
29,721,513
1,396,694
4,365,098
2,525,488
830,668
1,290,992
5,329,334
45,459,787
(A) Revenues are recorded on the modified accrual basis.
(B) See Table 3 for further detail.
(C) Other Financing Sources does not include capital leases of $12,000,332 in refunding bond proceeds in 1993.
NOTE: Prior to 1999, expenditures reported include Surface Water Management (SWM) as a Special Revenue Fund. 1999 figures were revised to exclude SWM as the fund was converted to an enterprise fund.
n
A
00
�0
Table 3
TAX REVENUE BY SOURCE
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 (*)
TOTAL TAXES
1992
$ 4,908,731
$ 6,824, 153
$ -
$ - $ 2,618,245
$ 14,351,929
1993
5,400,350
7,366,796
-
- 2,647,415
15,414,561
1994
5,654,655
7,606,672
-
- 2,634,145
15,895,472
1995
5,911,017
7,916,114
-
- 2,524,416
16,351,547
1996
6,022,066
8,037,143
935,497
3,086,088
18,080,794
1997
6,163,988
8,320,209
3,859,545
3,518,158
21,861,900
1998
6,447,999
8,854,740
4,553,650
4,168,539
24,024,928
1999
6,5882903
9,717,585
5,235,168
5,517,682
27,059,338
2000
6,976,972
10,332,439
5,590,293
5,595,755
28,495,459
2001
7,215,272
10,368,153
6,098,264
6,039,824
29,721,513
(') Includes real estate excise, local criminal justice, gambling excise, and other taxes and related assessments.
(B)
FISCAL
TOTAL TAX
CURRENT TAX
YEAR
LEVY
COLLECTIONS
1992
$5,031,533
$ 4,758,677
1993
5,374,597
5,130,550
1994
5,598,786
5,443,726
1995
5,976,531
5,829,648
1996
6,075,765
5,918,549
1997
6,180,735
6,041,927
1998
6,474,762
6,339,081
1999
6,667,028
6,510,516
2000
7,030,723
6,858,636
2001
7,305,894
7,107,918
PROPERTY TAX LEVIES AND COLLECTIONS (A)
Table 4
TOTAL
TOTAL
PERCENT
DELINQUENT
COLLECTIONS
OUTSTANDING
OUTSTANDING
OF LEVY
TAX
TOTAL TAX
AS % OF
DELINQUENT
TAXES AS % OF
COLLECTED
COLLECTIONS
COLLECTIONS
CURRENT LEVY
TAXES
CURRENT LEVY
94.6%
$ 151,681
$ 4,910,358
97.6%
$ 394,906
7.8%
95.5%
224,849
5,355,399
99.6%
368,405
6.9%
97.2%
274,559
5,718,285
102.1%
213,611
3.8%
97.5%
131,665
5,961,313
99.7%
209,953
3.5%
97.4%
129,237
6,047,786
99.5%
197,005
3.2%
97.8%
125,222
6,167,149
99.8%
198,240
3.2%
97.9%
138,180
6,477,262
100.0%
187,806
2.9%
97.7%
135,953
6,646,469
99.7%
197,059
3.0%
97.6%
131,554
6,990,190
99.4%
249,607
3.6%
97.3%
145,498
7,253,416
99.3%
302,374
4.1%
Sources:
(A) Most of data has been derived from the "Annual Tax Receivable Summary" prepared by the King County Finance Department.
(B) Department of Assessments Annual Report by King County Assessor
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY"
FISCAL
PERSONAL
STATE PUBLIC
YEAR
REAL PROPERTY
PROPERTY
SERVICE PROPERTY
1992
$ 3,448,013,318
$ 120,842,393
$ 75,109,073 $
1993
3,454,234,214
118,895,184
76,270,795
1994
3,523,883,690
112,067,438
83,521,024
1995
3,670,820,831
148,316,510
76,028,872
1996
3,750,745,563
141,394,338
86,053,600
1997
3,961,545,010
155,884,327
79,303,838
1998
4,152,466,303
158,019,169
76,348,173
1999
4,490,661,284
171,187,056
90,322,059
2000
4,932,362,526
187,812,046
93,021,743
2001
5,322,237,420
226,854,474
101,339,376
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 $27,409,244 and
prior year omits of $2,386,759 yielding a
regular levy value of $5,620,635,267. These assessed valuations are the basis for the following year's tax levy.
Source:
King County Assessors Office.
TOTAL
3,643,964,784
3,649,400,193
3,719,472,152
3,895,166,213
3,978,193,501
4,196,733,175
4,386,833,645
4,752,170,399
5,213,196,315
5,650,431,270
Table 5
PERCENT
INCREASE
(DECREASE)
13.4%
0.1%
1.9%
4.7%
2.1%
5.5%
4.5%
8.3%
9.7%
8.4%
Table 6
PROPERTY TAX LEVIES -DIRECT AND 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
TOTAL
TAX RATES PER $1,000 OF ASSESSED VALUATION
1992
1.57
4.41
1.80
3.54
0.04
0.34
1.59
0.54
0.25
14.08
1993
1.48
4.44
2.14
3.30
0.04
0.31
1.50
0.56
0.24
14.01
1994
1.54
5.06
2.21
3.40
0.05
0.30
1.58
0.58
0.25
14.97
1995
1.57
5.18
2.25
3.42
0.05
0.29
1.63
0.62
0.25
15.26
1996
1.56
5.26
2.21
3.50
0.05
0.29
1.67
0.62
0.25
15.41
1997
1.56
5.06
2.13
3.52
0.05
0.28
1.58
0.62
0.25
15.05
1998
1.55
4.65
1.85
3.51
0.05
0.26
1.50
0.60
-
13.97
1999
1.53
4.56
1.77
3.36
0.05
0.24
1.50
0,59
0.29
13.89
2000
1.49
4.42
1.69
3.30
0.05
0.22
1.50
0.59
0.27
13.53
2001
1.41
4.44
1.55
3.15
0.05
0.19
145
0.56
0.25
13.04
DETAIL
OF TAX RATES
FOR 2001
Basic Rate
1.41
-
1.34
3.15
0.05
0.19
1.45
0.48
-
8.08
Voted Rate
-
4.44
0.21
-
-
0.07
0.25
4.96
TAX LEVIES
1992
S 5,031,533
$ 20,813,253
$ 187,697,900
S 369,890,459
$ 430,547
S 35,898,437
$ 7,272,423
S 23,199,099
$ 26,073,064
S 676,306,715
1993
5,374.597
23,484,195
249,007,068
386,120,736
474,606
35,646,913
7,770,737
32,182,594
27,960,911
768,022,357
1994
5,598,786
26,891,328
259,088,827
399,086,354
502,979
35,646,867
8,257,614
35,252,354
29,312,268
799,637,377
1995
5,976,531
28,263,797
271,408,531
413,378,092
533,178
35,646,159
8,805,938
41,126,042
30,214,063
835,352,331
1996
6,075,765
28,940,230
268,662,181
427,109,738
565,205
35,647,165
9,118,681
41,040,476
30,492,034
847,651,475
1997
6,180,735
28,476,471
268,141,201
444,672,037
599,125
35,647,528
8,843,258
43,661,239
31,533,777
867,755,371
1998
6,474,762
27,530,445
248,678,961
472,459,927
635,052
35,646,835
8,378,714
46,603,642
26,137
846,434,475
1999
6,667,028
28,468,974
264,133,712
500,994,725
714,606
35,647,362
8,596,565
51,173,675
43,212,202
939,608,849
2000
7,030,723
29,878,996
278,515,900
545,390,795
748,642
35,647,430
8,596,565
54,618,346
45,070,501
1,005,497,898
2001
7,305,894
32,859,841
290,369,516
589,103,721
786,904
35,646,678
9,906,591
59,634,503
46,122,721
1,071,736,369
Source: King County Assessor's Office and King County Department of Finance
Table 7
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
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
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
1994
73,500 3,699,163,886 19,305,000
2,090,674
17,214,326
0.0047
234.21
1995
74,290 3,875,091,033 23,335,000
1,661,823
21,673,177
0.0056
291.74
1996
75,240 3,958,913,902 26,587,000
1,917,779
24,669,221
0.0062
327.87
1997
75,960 4,177,359,264 41,446,063
5,047,726
36,398,337
0.0087
479.18
1998
76,820 4,348,600,049 38,834,824
5,528,984
33,305,840
0.0077
433.56
1999
76,910 4,717,399,199 35,385,483
6,052,008
29,333,475
0.0062
381.40
2000
83,259 5,178,119,377 37,566,992
6,172,926
31,394,066
0.0061
377.07
2001
83,890 5,620,635,267 34,363,272
6,808,657
27,554,615
0.0049
328.46
(A)
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.
(B)
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 $5,620,635,267 has been reduced by senior citizen exemptions
of $27,409,244 and
prior year omits
of $2,386,759 to arrive at taxable assessed valuation.
(C)
Includes certificates of participation issued in 1992 and 1999 and Public
Works Trust Fund Loan issued in 1994, 1996,
1997 and 2000,
and general obligation bonds issued in 1995, 1996 and 1997.
DESCRIPTION
Statutory debt limit:
(2000 AV=$5,620,635,267) (A)
1.50% AV Q 100%
2.50%AV ® 100%
Add:
Cash on hand for
debt redemption (B)
Less:
Bonds and COPs outstanding
REMAINING DEBT CAPACITY
Table 8
COMPUTATION OF LIMITATION OF INDEBTEDNESS
December 31, 2001
GENERAL DEBT CAPACITY
EXCESSLEVY
EXCESS LEVY
TOTAL
(Limited)
(Unlimited)
OPEN SPACE
UTILITY
DEBT
COUNCILMANIC
EXCESS LEVY
AND PARK
PURPOSES
CAPACITY
$ 84,309,529
$ (84,309,529)
140,515,882
140,515,882
140,515,882
421,547,646
12,979,412
12,979,412
(30,897,423)
(30,897,423)
$ 66,391,518
$ 56,206,353
$ 140,515,882
$ 140,515,882
$ 403,629,635
TOTAL REMAINING
"GENERAL" CAPACITY (C) $122,597,871
(A) This figure represents the City's final total taxable assessed valuation (AV) for 1999 which was used to determine the 2000 property tax levy
(B) Reflects balance available in the Debt Service Fund, Utility Tax Fund and Building & Furnishings Fund as of December 31, 2000.
(C) Combined total for Councilmanic, Financing Lease, and Excess Levy capacities.
Table 9
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2001
(A) (B)
GROSS GENERAL PERCENTAGE AMOUNT
OBLIGATION DEBT APPLICABLE TO APPLICABLE TO
JURISDICTION OUTSTANDING FEDERAL WAY FEDERAL WAY
KING COUNTY $ 661,798,584 2.77% $ 18,331,821
PORT OF SEATTLE 240,125,000 2.77% 6,651,463
SCHOOL DISTRICT #210 95,655,000 69.18% 66,174,129
LIBRARY 51,460,000 6.43% 3,308,878
TOTAL OVERLAPPING DEBT 1,049,038,584 94,466,290
CITY OF FEDERAL WAY 34,363,272 (C) 100.00% 34,363,272
TOTAL DIRECT AND OVERLAPPING DEBT $ 1,083,401,856 $ 128,829,562
(A) Total general obligation bonds outstanding on December 31, 2001, exclusive of refunded bonds.
Source is King County Department of Finance.
(B) Determined by ratio of 2001 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 1992 and 1999, Public Works Trust Fund Loan issued in 1996, 1997 and 200C,
and general obligation bonds issued in 1995, 1996, 1997 and 2000.
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
FISCAL (A)
YEAR PRINCIPAL INTEREST
(B)
TOTAL
GENERAL
TOTAL DEBT GOVERNMENTAL
SERVICE EXPENDITURES
Table 10
RATIO OF DEBT
SERVICE
TO GENERAL
GOVERNMENTAL
EXPENDITURES
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%
1994
590,000
1,046,468
1,636,468
32,019,517
5.1%
1995
765,000
1,001,427
1,766,427
32,235,389
5.5%
1996
432,280
1,278,552
1,710,832
32,002,502
5.3%
1997
1,222,090
1,755,354
2,977,444
37,602,062
7.9%
1998
2,376,239
2,037,798
4,414,037
39,663,603
11.1%
1999
3,302,102
1,907,445
5,209,547
42,139,405
12.4%
2000
2,498,853
1,729,858
4,228,711
41,250,324
10.3%
2001
2,700,478
1,797,614
4,498,092
42,690,772
10.5%
(A)
Excludes bond issuance and
debt registration costs.
(B)
Includes other financing uses for general, special revenue, and debt service funds in 1993, but excludes residual
equity transfers and the amount
remitted to refunding
trustee of $11,867,177.
See Table 1 for detail.
Table 11
DEMOGRAPHIC STATISTICS
EDUCATION
LEVEL IN YEARS
FISCAL
PER CAPITA
MEDIAN
OF FORMAL
SCHOOL
UNEMPLOYMENT
YEAR
POPULATION
INCOME
AGE
SCHOOLING
ENROLLMENT (A)
RATE (B)
1992
72,350 $
15,155
30.6
13.0
19,488
5.7%
1993
75,320
16,607
30.6
13.0
19,856
6.0%
1994
74,413
16,206
30.6
13.0
20,043
5.2%
1995
74,290
17,126
30.6
13.0
20,331
4.9%
1996
75,521
17,401
30.6
13.0
20,733
4.6%
1997
75,960
25,569
32.5
I3.0
21,478
3.1%
1998
76,820
22,874
33.3
13.0
21,865
2.9%
1999
76,910
29,494
33.4
13.0
22,407
3.0%
2000
83,259
29,210
32.5
13.0
22,289
3.1%
2001
83,890
22,45I
32.5
13.0
22,911
5.2%
(A)
Includes public school enrollrhent. Kindergarten is included though not State mandated.
(B)
The unemployment rates for 1992 through 1998 reflect the annual average for the City of Federal Way, which is based on.
census share methodology.
Sources: Data was obtained from U. S. Census Bureau
School data was provided by the Federal Way School District.
00
00
Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Commercial Construction (A)
Value
Permits
(In Thousands)
175
$ 16,790
238
25,986
187
33,530
211
33,071
149
18,177
169
9,704
188
50,863
180
43,359
250
38,554
291
59,384
(A) Source:
(B) Source:
(C)] Source:
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Residential Construction (A)
Value
Permits
(In Thousands)
400
$ 36,101
358
34,430
359
34,846
322
27,165
257
21,276
367
27,952
364
23,301
374
26,229
185
11,462
166
7,914
Multi -Family Construction (A)
Value
Permits (In Thousands)
2 523
3 215
3 11,793
10 12,749
11 7,594
5 16,167
12 3,816
6 1,790
Bank Deposits (B
King County
(In Millions)
5 19,347
18,855
18,763
19,034
16,344
17,125
19,650
18,337
18,678
20,334
Table 12
Property Assessed Valuation (C)
Total Taxable
Exemptions
Non -Taxable
On Thousands)
(In Thousands)
(In Thousands)
$ 3,643,965
$ 38,500 S
15,694
3,649,400
43,735
16,497
3,719,472
51,116
17,983
3,895,166
53,384
18,126
3,958,914
56,383
17,116
4,177,359
57,686
16,362
4,348,600
44,629
32,685
4.717.399
48,282
31,824
5,178,119
46,551
29,984
5,620,635
44,646
27,409
Federal Way Community Development Department Commercial construction includes alterations. Other building -related permits (plumbing, mechanical, fire alarm, etc.) numbering
1,693 and valued at $2,280,405 have been excluded
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
King County Assessors Office. See Table 5 for further assessed value information
Table 13
PRINCIPAL TAXPAYERS
December 31, 2001
Percentage
2001
of Toml
Assessed
Assessed
Taxravcr
Typc of Business
V.Iuatlan
Valnation(A)
Wcyerh.c—Real Estate Co.
Real Estate
$ 193,4]8,714
3.44%
Pulci Sound Energy
Electric/Gas
48,947,972
0 87%
Newman Properties (So Tec Maly
Shopping Center
43,915,800
0.78X
U.S. Wm
Communieations/relephone
37'972,692
0.68%
G t—y Center Retail
Shopping Center
27,243,600
0 48%
Harsch Investment Properties /Ross Places
Shopping Center
24,529,000
0.44%
BRE Properties
Real Estate Managemcm
16,141,000
0.29%
Cop-
Retailer/ Wholesaler
14,692,265
0.26%
Campus Business Parks LLC
Rol Estate Invesun-I/Holding
14,610,000
0.26%
Quadrant Corporation
Real Estate Management
14,276,400
025%
Virginia Mason Clinic
Medical Services
I1,245, 100
0.20%
S 447,002,543
7.95%
PRINCIPAL EMPLOYERS
December 31. 2001
Numheror
TasE!Zcr
Typc oI Basin—
Empinyerss
FEDERAL WAY SCHOOL DIST
FA-ottan
R t N85
WEYERHAEUSER COMPANY
Lumber Produce
1.4645
WORLD VISION
Chrisdan Relief Agency
663
US POST OFFICE/FEDERAL WAY
Postal Service
632
ENCHANTED PARKS
Amusement Center
537
ST FRANCIS HOSPITAL
Medical Services
518
CITY OF FEDERAL WAY,
Mis-Ilan-us Services
440
LAXHA FEDERAL WAY PROPERTIES
Real Estate
391
SAFEWAY
R:II Grocery
282
COSTCO WHOLESAL-E CORPORATION
Wiwlualc
251
FRED MEYER
Retail
250
THE BON MARCHE
Retail
240
VIRGINIA MASON FEOERAL.WAY
Mcdlal Smices
235
WAL-MART
Recall
225
ALBERTSONS
Retail Grocery
220
BEVERLY HEALTHCARE
R REHAB, FEDERAL WAY
Medical Smlces
220
PARAMETRIX INC
Miscellaneom Smlces
200
PRUDENTIAL NW REALTY ASSOC
Rol &taro
200
WINCO FOODS
Retail Grocery
200
Spherimt
Miscellaneous Services
199
SEARS, ROEBUCK & CO.
Retail
186
THE HOME DEPOT
Retail
ISO
UNICCO SERVICE COMPANY
Mlscellanous Services
161
LIFE CARE CENTER OF F�DERAL WAY
Nursing Fecility
160
CAPITAL ONE SERVICES INC
Financial Institution
150
PI POCKETS CASINO
Casio
133
HALLMARK MANOR
Retail
130
TARGET
Retail
Do
FEDERAL WAY FIRE DEPARTMENT
Social Service
129
LOWE'S HOME MiFROVBffiWr WAREHOUSE
Retail
129
BROOM AM C0N201UNFry CHURCH
Miscellaneous Services
122
PLAYERS CASINO SPORTS BAR/GRILL
Caalo
120
ALASKA AIRLINES I
Travel Agencies
112
BEROEIIIABAM ENGINEHRS
MiscWlwmw Sm 1=
110
LSI LOGIC CORPORATION
Miaceilanarn Sen•Iss
110
TOP FOODS k DRUG
Retail Grocery
109
RED ROBIN
Restaurant
105
BEST BUY
Retail
100
NORTHWEST CASCADE 114C
Miscellaneous Sml=
100
SALMOLUX INC
Food Store
100
(A) 2001 assessed valuations for taxes collected In 2002. Total 2101 assessed valuation for the
City is 55,620,635,267
Source: King County AssrsWr- Principal Tsxpaym.
City of FWeml Way Businm Lloensn - Principal Employers - includes both full-time and part-time employees.
NAME OF COMPANY
St. Paul Fire and Marine
The Fidelity and Deposit
St. Paul Fire and Marine
The Fidelity and Deposit
St. Paul Fire and Marine
St. Paul Fire and Marine
St. Paul Fire and Marine
St. Paul Fire and Marine
The Fidelity and Deposit
Company of Maryland
St. Paul Fire and Marine
SCHEDULE OF INSURANCE IN FORCE
Table 14
December 31, 2001
ANNUAL
POLICY NUMBER
POLICY PERIOD
DETAILS OF COVERAGE
LIABILITY LIMITS
PREMIUM
GP09303975
01/31/2001
Public Officials
Per claim & General aggregate -
$
34,011
to
Liability Coverage
$5,000,000
01/31/2002
Deductible - $5,000
GP09303975
04/04/2001
Public Official Bond
Coverage Limit - $50,000
$
250
to
Management Services Director
04/04/2002
GP09303975
10/01/2001
Public Official Bond
Coverage Limit - $50,000
$
250
to
City Manager
10/01/2002
GP09303975
01/31/2001
General Liability
Per claim - $2,000,000
$
40,227
to
Coverage
General aggregate - $2,000,000
01/31/2002
Deductible - $5,000
GP09303975
01/31/2001
Property
Buildings/contents - $11,168,125
$
15,914
to
Coverage
Extra expense - $1,308,048
01/31/2002
Valuable papers - $460,000
Deductible - $5,000
Fine Arts - $25,000
Deductible - $1,000
GP09303975
01/31/2001
Auto Liability &
Coverage Limit - $2,000,000
$
58,894
to
Physical damage
Collision Deductible - $1,000
01/31/2002
Comprehensive deductible -$100
Liability - $5,000
30268610 &
01/01/2001 to 01/01/2002
Faithful Performance,
Coverage Limit - $250,000/bond
$
578
CCP126861008
01/01/2002 to 01/01/2003
Fidelity/Emp. Dishonesty
Deductible - $2,500
& Erisa Bond
Deductible (Erisa) - 0
GP09303975
01/31/2001
Inland Marine
Coverage Limit- $187,500
$
5,652
to
Deductible - $1,000
01/31/2002
Coinsurance - 90%
page 1 of 2
City of Federal Way / 102
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City of Federal Way / 104
Table 16
TYPE OF GOVERNMENT
Council - City Manager
ORGANIZATION STRUCTURE
Legislative Executive
Mayor 1 City Manager
6 Councilmembers 2 Assistant City Managers
MISCELLANEOUS STATISTICAL INFORMATION
DECEMBER 31, 2001
Administrative
6 Department Directors
CORPORATE INFORMATION
The City of Federal Way is a noncharter optional code City. It was incorporated as an optional code City on February 28, 1990,
and is governed under the provisions of the Optional Municpal Code of the Revised Code of Washington. Optional Code City
status increases the City's operating authority by extending it to the powers of all four city classifications which exist in
Washington law.
LOCATION AND AREA
Federal Way, the seventh largest city in the State of Washington, encompasses an area of 21.5 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 commercial, with the populace employed locally in neighboring cities such as SeaTac, Kent, Tacoma, Bellevue and
Seattle. The City has approximately 32,855 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 83,890, of which 43,682 are registered voters. A total of 29,6*st.) people are
employed within the City limits.
NUMBER OF CITY EMPLOYEES
During the year 2001, the City employed 295 full-time salaried, 20 part-time hourly, and 163 temporary employees. There were
109 commissioned police officers and no uniformed firefighters. The Teamsters Union #763 represented 15 employees (Public
Works Maintenance and Parks Maintenance), 34 employees were represented by the PSSA (Police Support Services Association),
and the Police Guild represented 82 Police Officers during 2001.
RECREATIONAL FACILITIES
28 Developed park sites covering 493.5 acres
20 Undeveloped park sites covering 352 acres (including open space)
19 Public tennis courts 9 which are owned -by -the City__
2 Public swimming pools, both which are owned by King County
2 Trails covering 4 miles
OTHER CITY OWNED FACILITIES
1 City Hall
1 Parks Maintenance Facility
1 Dumas Bay Centre
1 Klahanee Community/Senior Center
PUBLIC EDUCATION
ENROLLMENT COUNT
1995
1996
1997
1998
1999
2000
2001
23 Elementary Schools
11,524
11,689
11,930
12,248
12,258
12,242
12,493
7 Jr. High Schools (incl Public Academy)
4,701
4,838
4,979
4,956
4,994
5,013
5,331
4 High Schools
3,730
3,904
4,103
4,116
4,529
4,557
4,415
2 Alternative Schools (incl. Internet Academy)
376
302
466
545
626
477
672
Total Enrollment 20,331 20,733 21,478 21,865 22,407 22,289 22,911
1,420 Certified full-time equivalency teachers and administrative staff.
City of Federal Way / 105
Table 16
MISCELLANEOUS STATISTICAL INFORMATION
DECEMBER 31, 2001
(Continued)
MILES OF STREET
Streets (Center Line Miles). ..------- -------- ..........256.86
miles
SIGNALS/STREET LIGHTS
City -owned traffic signals maintained by:
Department of Transportation ................ ............. ..._
4
KingCounty .................................... ..................
65
Street lights owned by City of Federal Way ....................
668
Street lights owned by Puget Power ........... ._._....:_..... :.....
2835
LOCAL TAXES ON BUSINESSES
Franchise Tax - Cable TV ......................
Gambling Taxes:
Bingo/Raffles....... ...................................
5.00%
Amusement/Games ..........
°
Punchboar/Pull Tabs .................................
5 00%
Cardrooms.............................................
20.00%
Local Sales Tax (Collected by the State) ........................
8 80%
POLICE INFORMATION
19955
19996
1997
1998
1999
2000
2�1
Offenses: Forcible Rape (including attempts)
71
73
37
58
53
43
49
Robbery
173
188
154
153
115
128
124
Criminal Homicide
3
3
2
2
4
7
4
Aggravated Assault
167
171
121
159
167
158
141
Vehicle Theft
843
807
746
761
808
849
1179
Burglary (commercial & residential)
881
965
643
648
573
533
521
Larceny
4300
4086
3901
3393
3097
3072
3516
Arson
38
35
24
39
38
36
17
Citations: Traffic
14,258
8,660
11,196
13,382
10,890
13,340
12,767
Jail Facility: King County Jail used at $70.90 per day per person, plus $139.39 booking fee per person.
FIRE AND EMERGENCY MEDICAL RESPONSE INFORMATION
Fire and Emergency Medical Response information reflects the greater
Federal Way area, which is served by
Fire District #39.
im
im
1m
12"
1222
2M
2.QU
Fire and Other Responses
1,902
2,018
1,985
2,357
2,009
2,278
1,920
Emergency Medical
5,653
6,007
5,853
6,589
6,870
7,193
7,240
BUILDING RELATED PERMITS AND VALUES
im
1996
im
M
1222
2M
2M
Building Permits
560
422
576
582
573
447
463
Estimated Value (In Millions $)
$60.7
$51.3
$53.3
$81.9
$85.8
$53 8
$69.1
Other Building Related Permits
625
656
864
821
1007
1546
1693
Estimated Value (In Millions $)
$2.8
$37.6
$18.5
$27.0
$11.0
$1.5
$2.3
TAXABLE SALES (in millions)
1995
12966
1997
19988
1999
2000
2001
Retail Sales
$942.4
$956.8
$978.9
$1,049.3
$1,137.0
$1,212.1
$1,220
Real Estate Sales
$219.0
$305.0
$375.4
$438.8
$487.6
$429.9
$400
CITY OF