2015 Annual Comprehensive Financial Report (15-005)City Federal Way, WA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR YEAR ENDED DECEMBER 31,2015
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City of Federal Way History —
The earliest recorded accounts of the Federal Way area tell of Native American families who resided in the area of the
Muckleshoot Reservation on the east side of the Green River Valley and traveled west to the shores of Puget Sound for the
plentiful fisheries resources. Generations of Muckleshoot Indians wore a westward trail across the heavily forested plateau to the
area which is now Saltwater State Park. The arrival of the white man in the nineteenth century resulted in a steady decline in the
Indian population and by 1890, nearly the entire population had disappeared from the area. Isolated on a triangular shaped plateau
rising steeply from Puget Sound, the Federal Way area had little waterfront access or roadways and accordingly, was sparingly
developed compared to Tacoma and Seattle. As late as the turn of the century, the original settlers at Dash Point and Dumas Bay
had to row to Tacoma for supplies and mail. Old Military Road, constructed around 1856 and extending north from Fort
Steilacoom, past Star Lake to Seattle and Fort Lawton, was the first road through the area.
Over time, narrow dirt roads were added to provide east/west access and by 1900, a road was constructed between Star Lake and
Redondo. The second crossroad, the "Seattle Road," connected old Military Road and Kent. The Seattle -Tacoma Interurban Line,
completed in 1901, provided a fast and easy way to reach these urban cities. Improved access brought many visitors to the area
and Star Lake became a popular summer recreation site.
By the 1920s, Federal Highway 99, the interstate that linked the western states from north to south, was complete. At this time,
Federal Way was still primarily forest and farmland. Fred Hoyt had a cabin on Dumas Bay and started a road to Tacoma (still
called Hoyt Road). The timber companies, which had a major logging operation going, built an early railroad line and were
instrumental in getting Marine View Highway (now Dash Point Road) built in the early 1920s. This roadway spurred
development along the coastline. Soon thereafter, Peasley Canyon Road was built to connect Military Road with the Auburn
Valley. This road later became known as South 320th Street. In these early days, roadways set the stage for development in the
area and they still play an important role in the City today.
By the start of World War II, a number of small, thriving communities made up the area that is now Federal Way. Some
communities were clustered around lakes, such as Steel Lake, Star Lake, and Lake Geneva. Others were sited to take advantage of
the view of Puget Sound, like Adelaide and Buenna. As each of these communities grew, residents built small schoolhouses for
their children. By the late 1940s, King County consolidated the many individual red schoolhouses into the Federal Way School
District, from which the City gets its name. During this same period, a library was built along the edge of Highway 99, and
between 308th Street and 320th Street, a small "downtown" developed with a general store, lumber yard, realty office, beauty
parlor, feed store, and gas station. By the end of the 1950s, the ten blocks between 308th and 320th Streets became the first
roadside commercial district. One of the more unique developments was Santa Faire, a family oriented theme park. New shopping
areas were added around the park, helping to create a "community focus" for the residents of the area.
As this commercial area developed, the rest of Federal Way was changing as well. The Boeing Company expanded their
operations in Renton and the Kent Valley and began advertising nationally for engineers. Those engineers in turn began roaming
the wooded acreage in Federal Way in search of housing. One of the earliest residential developments was Marine Hills, built in
1958 overlooking Puget Sound. Weyerhaeuser, one of the early timber companies, had large land holdings in the area and began
to develop their land into high quality housing with amenities like golf courses.
Weyerhaeuser's development company also began developing commercial property, creating the West Campus business park.
The plan was to integrate offices and businesses with lush landscaping. Though initially the corporate office market was not
strong, West Campus has grown almost to capacity, providing space for many civic buildings such as City Hall, the police station,
the area's major health care centers, and higher density housing.
Another major landmark in the area is SeaTac Mall (now The Commons), built in the mid-1970s on what was farmland south of
320th Street. The Mall is one of the largest in South King County and is the anchor for retail development in the area. The Mall
was a result of population growth in the region and its location was determined by the 320th Street intersection with Interstate 5.
The Interstate supplanted Highway 99 as the main artery for commuter traffic in the County.
By the mid 1980s, South King County was growing quickly. Retail growth occurred along Highway 99, especially at the 320th
Street intersection. Roads and office space were developed to accommodate the increased growth. Residential growth was also
prominent, following plans developed by King County, with a large number of apartment homes. The changes to the community,
with increased housing and traffic, created a movement for greater self-determination. In 1989, the citizens of this area voted for
incorporation and the City of Federal Way was born, incorporating on February 28, 1990 with 58,000 residents.
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CITY of
Federal Way
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2015
City of Federal Way
33325 8th Avenue South
Federal Way, Washington 98003
(253) 835-2520
www.ciiyoffederalwgy.com
Prepared by the Finance Department
Finance Director
Ade' Ariwoola
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2015
Table of Contents
Page
INTRODUCTORY SECTION
Letterof Transmittal...........................................................................................................................
City Officials and Administrative Officers.......................................................................................
City Functional Organization Chart ....................................................................................................
GFOA Certificate of Achievement.....................................................................................................
FINANCIAL SECTION
Independent Auditor's Report ............................................................................................................
10
Management's Discussion and Analysis............................................................................................
13
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position................................................................................................
27
Statement of Activities...................................................................................................
28
Fund Financial Statements:
Balance Sheet — Governmental Funds.............................................................................
29
Statement of Revenues, Expenditures, and Changes in Fund Balances —
GovernmentalFunds.................................................................................................
31
Reconciliation of the Statement of Revenues, Expenditures, and Change
In Fund Balances of Governmental Funds to the Statement of Activities ...............
33
Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
GeneralFund...........................................................................................................
34
StreetFund...............................................................................................................
35
UtilityTax Fund......................................................................................................
36
Statement of Net Position — Proprietary Funds.................................................................
37
Statement of Revenues, Expenses and Changes in Fund Net Position — Proprietary Funds
38
Statement of Cash Flows — Proprietary Funds..................................................................
39
Notes to the Basic Financial Statements...........................................................................
41
Required Supplementary Information:
Schedule of Proportionate Share of Net Pension Liability..................................................... 76
Schedule of Employer Contributions...................................................................................... 78
Combining and Individual Fund Statements and Schedules — Nonmajor Governmental Funds:
FundDescription....................................................................................................................... 79
CombiningBalance Sheet......................................................................................................... 80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................... 84
Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
ArterialStreet Fund................................................................................................. 88
Solid Waste & Recycling Fund................................................................................ 89
Special Contracts/Studies Fund............................................................................... 90
Hotel/Motel Lodging Tax Fund............................................................................... 91
Federal Way Community Center Fund.................................................................... 92
TrafficSafety Fund.................................................................................................. 93
Community Development Block Grant Fund.......................................................... 94
Paths& Trails Fund................................................................................................. 95
Individual Fund Statements and Schedules — Debt Service Fund:
FundDescription........................................................................................................................ 97
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ...... 98
Combining and Individual Fund Statements and Schedules — Internal Service Funds:
FundDescription.................................................................................................................... 99
Combining Statement of Net Position..................................................................................... 100
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ................. 102
Combining Statement of Cash Flows..................................................................................... 104
Supplemental Information:
Schedule of State Financial Assistance..................................................................................
108
Schedule of Expenditures of Federal Awards........................................................................
109
Capital Assets Used in the Operation of Governmental Funds:
Comparative Schedules by Source.........................................................................................
112
Schedule by Function and Activity ........................................................................................
113
STATISTICAL SECTION
NetPosition by Component............................................................................................................
116
Changesin Net Position..................................................................................................................
117
Government -wide Revenues by Source and Expenditures by Function .........................................
118
Fund Balances of Governmental Funds..........................................................................................
119
Changes in Fund Balances, Governmental Funds..........................................................................
120
Assessed and Estimated Actual Value of Taxable Property...........................................................
121
Property Tax Rates and Levies, Direct and Overlapping Governments .........................................
122
PrincipalTaxpayers........................................................................................................................
123
Property Tax Levies and Collections..............................................................................................
124
Ratio of Outstanding Debt by Type................................................................................................
125
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Bonded Debt Per Capita .....................................................
126
Computation of Direct and Overlapping Debt................................................................................
127
Computation of Limitation of Indebtedness....................................................................................
128
Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to
Total General Governmental Expenditures Net of Debt Service Expense ................
129
DemographicStatistics...................................................................................................................
130
PrincipalEmployers.......................................................................................................................
131
Property Value and Construction...................................................................................................
132
CapitalAssets by Function.............................................................................................................
133
Operating Indicators by Function...................................................................................................
134
City Government Employees Full -Time Equivalent - History .......................................................
135
Salaries and Surety Bonds of Principal Officials............................................................................
136
Miscellaneous Statistical Information............................................................................................
137
ii
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CITY OF
Federal Way
June 29, 2016
People of the City of Federal Way
Honorable Mayor and City Council
I am pleased to submit to you the 2015 Comprehensive Annual Financial Report (CAFR) of the City of Federal Way,
Washington. This report is published annually as the official annual financial report and complies with state law (RCW
43.09.230) requiring annual report for Washington municipal governments to be certified and filed with the Washington State
Auditor's Office in a timely manner. The accuracy of the data, completeness and fairness of the presentation, including all
disclosures rests with the City management. All disclosures necessary to enable the reader to gain an understanding of the
City's financial activities have been included.
The City operates under a system of accounting, internal controls that are concerned with safeguarding of assets and the
reliability of financial records. The definition of accounting control assumes reasonable, but not absolute assurance that the
objectives expressed in it will be accomplished by the system. The concept of reasonable assurance recognizes that cost of
internal control should not exceed the benefits expected to be derived.
This transmittal letter is designed to complement the Management Discussion & Analysis (MD&A) and should be read in
conjunction with it. The City's MD&A can be found immediately following the Independent Auditor's Report.
REPORTING ENTITY
The City is a noncharter Optional Code City with a Mayor -Council form of government. It was incorporated on February 28,
1990, and is governed under the provisions of the Optional Municipal Code of the Revised Code of Washington. Optional
Code City status increases the City's operating authority by extending it to the powers of all four city classifications which
exist in Washington Law.
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. In November 2009, the citizens of Federal Way approved Proposition 1 to change the form of government from a
City Manager -Council run government to an elected Mayor -Council government. Federal Way voters elected former City
Councilmember and King County Senior Deputy Prosecuting Attorney Jim Ferrell as Mayor on November 5, 2013.
City services provided include: police protection, construction and maintenance of streets, building inspection, municipal court
services, jail services, planning and zoning, park services, emergency management services, surface water management and
general administration, including finance. Services for a land use hearing examiner are contracted. The City continues to have
eleven major departments consisting of (1) Mayor's Office; (2) City Council; (3) Law; (4) Finance; (5) Human Resources; (6)
Information Technology; (7) Municipal Court, (8) Parks; (9) Public Works; (10) Police; and (11) Community Development.
Fire protection and emergency medical services are provided by South King Fire & Rescue. Lakehaven Utility District
delivers water and sewer services. King County 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 FACTORS AFFECTING FINANCIAL CONDITION
The Great Recession continues to have lingering effects on the economy. Many economic indicators during 2015 were still
below the pre -Great Recession levels. Consumers have gained some ground since the recession ended; groups hit harder than
average including young people. The housing market saw some improvements due to rise in personal income and decline in
foreclosures.
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Nationally, the CPI rose 0.7 percent in 2015 after the 0.8 percent increase in 2014. This is the second smallest December -
December increase in the last 50 years. The index has increased at a 1.9 percent annual rate over the last 10 years. The energy
index declined sharply for the second year in a row, falling 12.6 percent in 2015 after a 10.6 percent decline in 2014. All the
major component energy indexes declined in 2015. The fuel oil index declined the most, falling 31.4 percent after decreasing
19.1 percent in 2014. The gasoline index fell 19.7 percent after a 21.0 percent decline the previous year. The index for natural
gas, which rose for the first time in six years in 2014, declined 14.9 percent in 2015. The electricity index declined for the first
time since 2012, falling 1.2 percent in 2015. After the recent declines, the energy index has risen only at a 0.2 percent annual
rate over the last 10 years. The index for food rose 0.8 percent in 2015. This compares to a 3.4 percent increase in 2014 and is
the smallest increase since a decline in 2009. The index for food at home fell in 2015, declining 0.4 percent. This is only the
third time it has declined in the past 50 years (1976 and 2009 are the other years it declined). Four of the six major grocery
store food group indexes increased in 2015, but none of the increases were large. The index for cereals and bakery products
rose 1.0 percent after increasing 0.5 percent in 2014, and the index for other food at home also rose 1.0 percent. The index for
fruits and vegetables, which rose 3.2 percent in 2014, advanced only 0.6 percent in 2015. The index for nonalcoholic beverages
also rose in 2015, increasing 0.3 percent after advancing 0.7 percent the prior year. However, the index for dairy and related
products fell in 2015, declining 3.9 percent following a 5.3 percent increase in 2014. The index for meats, poultry, fish, and
eggs also turned down in 2015, falling 2.2 percent after a 9.2 percent increase the prior year. The index for beef and veal fell
4.3 percent in 2015 after increasing 18.7 percent in 2014. The index for food away from home rose 2.6 percent in 2015, in
between its 2.1 percent increase in 2013 and 3.0 percent increase in 2014. Over the last 10 years the food index has risen at an
annual rate of 2.5 percent, with the food at home index rising at a 2.3 percent rate and the food away from home index
increasing at a 2.8 percent rate.
The index for all items less food and energy accelerated in 2015, increasing 2.1 percent after a 1.6 percent increase in 2014. It
has risen at a 1.9 percent rate over the past 10 years. The shelter index continued to accelerate, increasing 3.2 percent in 2015
after rising 2.5 percent in 2013 and 2.9 percent in 2014. The rent index rose 3.7 percent, while the index for owners' equivalent
rent advanced 3.1 percent. The index for medical care, however, posted a smaller increase in 2015, rising 2.6 percent after a 3.0
percent increase the prior year. Within the medical care group, the index for prescription drugs rose 2.4 percent, while the
hospital services index increased 4.2 percent. The index for motor vehicle insurance rose 5.7 percent in 2015 after increasing
4.7 percent in 2014. The education index increased 3.7 percent, and the personal care index rose 1.4 percent. Several indexes
posted very modest increases in 2015: The new vehicles index rose 0.2 percent, following a 0.5 percent advance the prior year.
The index for used cars and trucks, which declined in 2014, rose 0.4 percent in 2015. The recreation index rose 0.7 percent, and
the index for alcoholic beverages increased 0.5 percent.
As of December 2015, Seattle -Tacoma -Bremerton, WA's CPI for Urban Wage Earners and Clerical Workers (CPI-W)
increased 2.2 percent over December 2014 compared to the national average of 0.4 percent. The Seattle -Tacoma -Bellevue, WA
annual unemployment rate for 2015 was 5.2% up from 4.9% in 2014 as measured by deptofnumbers.com. As of the end of
April 2016 the unemployment rate has dropped to 5.0% The Puget Sound region reached its peak unemployment rate during
2010 at 9.7% which was compounded by the "dot.com" collapse, the 9/11 terror attacks on commercial airplane industry since
2001.
ECONOMIC TRENDS
Federal Way is the ninth most populated city in the state of Washington out of 621 cities according to Washington-
demographics.com and Census.gov with 95,171 people just after the City of Renton with 100,242 people and closely followed
by Spokane Valley with 94,919 and Yakima with 93,701 people. In 2014 it had a median household income of $54,186 which
is below the King County ($73,035) but higher than Spokane Valley ($48,274) and Yakima ($40,189). The City 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 22.5 square miles and is served by Interstate 5, state highways 99 and 509.
In 2015, there were 36,424 housing units in Federal Way, an increase of more than 2% over 2010. Of these units, 56% or
20,044 were single family homes, 40% or 14,277 were multi -family units, and 4% or 1,305 were mobile homes and trailers.
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 2015 is estimated at
29,909. Major employers are; Federal Way Public Schools, Xerox Commercial Services, Weyerhaeuser, St. Francis
Community Hospital, Wild Waves, and World Vision.
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Sales tax collected in 2015 total $13.3 million which was $1.1 million more than $12.1 million of 2014. The retail sector of the
local economy is anchored by the following areas; the first is South 3481h and State Highway 99 including Wal-Mart Super
Center, Wholesale Sports, Costco, Lowe's Home Improvement Center, and Home Depot. The second is The Commons
regional mall including Target, TJ Max, Best Buy, and many other small businesses adjacent to the area. 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 51%; services 23%; construction 13%; wholesale trade 4%;
information 5%, manufacturing 1%, and other 3%.
In 2015, the total assessed value of property in Federal Way was $8.9 billion, which was approximately 6.0% higher than the
2014 assessed valuation of $8.4 billion.
Real Estate sales increased 43% to approximately $599 million in 2015 as compared to $418 million in 2014. A total of
633building permits in 2015 compared to 632 in 2014 and 3,686 other building related permits compared to 3,722 that were
issued in 2014. Estimated market value was $198.1 million in 2015 and $128.36 million in 2014. Significant building permits
include: Federal Way School Districts, Kitts Corner Apartments, and Crestview West Apartments.
LONG-TERM PLANNING
The City's fiscal policy requires the City to prepare long-range projections for six years beyond the current budget period. The
projection extends current operations to the future to see if the services are sustainable and the magnitude of, if any, future
financing gaps. This glimpse into the future allows the City to proactively plan and implement corrective measures over time
to avoid sudden drastic changes in service levels or in revenue/tax policies. In addition, the City's fiscal policy requires the
City to balance its ongoing services with ongoing revenues.
MAJOR INITIATIVES AND ACCOMPLISHMENTS
During 2015, the City of Federal Way completed construction of several hot -mix asphalt overlays totaling over $3 Million
(with over $1.0 Million of grant funding); a Safe Routes To Schools sidewalk project at Federal Way High School and
Sacajawea Middle School totaling over $775,000 which was 100% grant funded; and the S 304th Street at 28th Ave S
intersection project which added a traffic signal and northbound right turn lane totaling over $1.1 Million. The safety
improvement project on I't Ave at 328th was approximately 80% completed which included street widening, sidewalks, and a
new traffic signal. Design was completed for several projects that will be constructed or start construction in 2016, including:
1) 352nd Extension (SR99 to Enchanted Parkway); 2) Pacific Highway HOV Phase 5 (359th to 340th); 3) 2016 Overlay
Program; 4) Pete von Reichbauer Way S and S 316th Street Sidewalks; 5) Sacajawea Safe Routes to School; and 6) City -Wide
Safety Project. In addition, 2015 continued the city's success in securing grant funding including a $6 Million Transportation
Improvement Board (TIB) grant for the Pacific Highway HOV Phase 5 project.
The City started on the construction its $32 million Performing Arts & Event Center (PAEC) and it is expected to be completed
by the summer of 2017. There is a plan to build a hotel next to the PAEC and have other office and residential properties
around. The City is working with private developers. Next to the Performing Arts & Event Center is the Town Square Park site
(former AMC Theater site). The City has built an urban park and is expanding the park and adding additional amenities,
including a spray park, walking trail, and playground. The park is due to open the summer of 2016.
With respect to the retail sector, we have seen growth. The Commons added a major retailer Dicks Sporting Goods, also Total
Wine, and Ulta Cosmetics both major retailors opened locations in the City of Federal Way. In the institutional sector Seattle
Children's Hospital is opening a location in Federal Way.
OUTLOOK FOR THE FUTURE
Council identified the following set of goals for the City which was adopted on March 7, 2006.
1. Integrate the public safety strategy in all facets of City operations, building on a strong community -based approach.
2. Create a multi -use urban city center that is pedestrian friendly, linked to neighborhoods and parks, and services as the
social and economic hub of the City.
3. Establish Federal Way as an economic leader and job center in South King County by attracting regional market for
high quality office and retail businesses.
4. Maintain the capital facilities plan and provide financing options for transportation and surface water improvements,
parks, recreation, and cultural arts and public facilities.
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5. Ensure a responsive service culture within the City organization where employees listen carefully, treat citizens and
each other respectfully and solve programs creatively, efficiently, and proactively.
6. Position Federal Way as a regional leader by working collaboratively with other local and regional jurisdictions in
order to leverage resources.
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 2015 audit
of the City has been completed in conformance with generally accepted auditing standards. The financial statements of all City
funds have been included in this audit. The City has been given an unqualified opinion in 2015; which is the 26th consecutive
year receiving a clean audit. The State Auditor's report on the basic 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, 2014. The City of Federal Way has received a Certificate of Achievement for the last twenty-five
years (fiscal years ended 1990 — 2014). 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 Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to
determine its eligibility for another certificate.
The City of Federal Way also received the Government Finance Officers Association Distinguished Budget Presentation
Award for its biennial budget for the years beginning January 1, 2013 and 2014. 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.
ACKNOWLEDGEMENTS
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of
the finance department. In addition, staff in all City departments should be recognized for responding so positively to the
requests for detailed information which accompany each audit. A special note of thanks is given to Chase Donnelly,
Accounting Supervisor who served as the coordinator for the CAFR preparation. The role of the State Auditor's Office should
also be acknowledged as a significant contribution to a fine product. Finally, we wish to express our appreciation to the Mayor
and City Council for their ongoing support and for providing the firm foundation for the pursuit of excellence in all realms of
professional endeavors.
Respectfully submitted,
Ademola A. Ariwoola, MBA, CGFM
Finance Director
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2015
CITY OFFICIALS
EXECUTIVE & LEGISLATIVE BODY
JEANNE BURBIDGE
Deputy Mayor
SUSAN HONDA
Councilmember #3
JIM FERRELL
Mayor
LYDIA ASSEFA-DAWSON
Councilmember #1
BOB CELSKI
Councilmember #5
KELLY MALONEY
Councilmember #2
MARTIN A. MOORE
Councilmember #6
DINI DUCLOS
Councilmember #7
Position
Elected
Term
Elected
Email
Phone
Mayor
Jim Ferrell
1/1/14-12/31/17
11/26/13
Jim.Ferrell@cityoffederalway.com
(253) 835-2402
Position #1
Lydia Assefa-Dawson
1/l/16-12/31/19
11/24/15
Lydia.Assefa-Dawson@cityoffederalway.com
(253) 835-2401
Position #2
Kelly Maloney
1/l/14-12/31/17
11/26/13
Kelly.Maloney@cityoffederalway.com
(253) 835-2401
Position #3
Susan Honda
1/l/16-12/31/19
11/24/15
Susan.Honda@cityoffederalway.com
(253) 835-2401
Position #4
Jeanne Burbidge
1/l/14-12/31/17
11/26/13
Jeanne.Burbidge@ctiyoffederalway.com
(253) 835-2401
Position #5
Bob Celski
1/l/12-12/31/15
11/28/11
Bob.Celski@cityoffederalway.com
(253) 835-2401
Position #6
Martin A. Moore
1/l/14-12/31/17
11/26/13
Martin.Moore@cityoffederalway.com
(253) 835-2401
Position #7
Dini Duclos
1/1/12-12/31/15
11/28/11
Dini.Duclos@cityoffederalway.com
(253) 835-2401
Citv of Federal Wav / 6
2016
CITY OFFICIALS
EXECUTIVE & LEGISLATIVE BODY
JEANNE BURBIDGE
Deputy Mayor
SUSAN HONDA
Councilmember #3
JIM FERRELL
Mayor
LYDIA ASSEFA-DAWSON
Councilmember #1
MARK KOPPANG
Councilmember #5
KELLY MALONEY
Councilmember #2
MARTIN A. MOORE
Councilmember #6
DINI DUCLOS
Councilmember #7
Position
Elected
Term
Elected
Email
Phone
Mayor
Jim Ferrell
1/l/14-12/31/17
11/26/13
Jim.Ferrell@cityoffederalway.com
(253) 835-2402
Position #1
Lydia Assefa-Dawson
1/l/16-12/31/19
11/24/15
Lydia.Assefa-Dawson@cityoffederalway.com
(253) 835-2401
Position #2
Kelly Maloney
1/l/14-12/31/17
11/26/13
Kelly.Maloney@cityoffederalway.com
(253) 835-2401
Position #3
Susan Honda
1/l/16-12/31/19
11/24/15
Susan.Honda@cityoffederalway.com
(253) 835-2401
Position #4
Jeanne Burbidge
1/1/14-12/31/17
11/26/13
Jeanne.Burbidge@ctiyoffederalway.com
(253) 835-2401
Position #5
Mark Koppang
1/l/16-12/31/19
11/24/15
Mark.Koppang@cityoffederalway.com
(253) 835-2401
Position #6
Martin A. Moore
1/l/14-12/31/17
11/26/13
Martin.Moore@cityoffederalway.com
(253) 835-2401
Position #7
Dim Duclos
1/1/16-12/31/19
11/24/15
Dini.Duclos@cityoffederalway.com
(253) 835-2401
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Position A
Em 1
Presiding Judge
David Larson
Judge Rebecca
Robertson
Court Susanne White
Administrator
Chief of Staff
City Clerk
City Attorney
Community Development
Director
Economic Development
Director
Finance Director
IT Manager
Human Resources Manager
Parks Director
Police Chief
Public Works Director
JUDICIAL BRANCH
Elected/
Office
Appointed
Term
Date .
Contact Information
Elected
N/A
3/3/2008
David.Larson@cityoffederalway.com
(253)835-3012
Elected
N/A
1/1/2010
Rebecca. Robertson@cityoffederalway.com
(253)835-3025
Appointed
N/A
2/22/2010
Susanne.White@cityoffederalway.com
(253)835-3000
CITY ADMINISTRATION
Employee A Appointment Contact Information
Brian J. Wilson
1/20/2014 Brian.Wilson@cityoffederalway.com
(253)835-2510
Stephanie
10/7/2014 Stephanie.Courtney@cityoffederalway.com
Courtney
(253) 835-2540
Amy Jo Pearsall
2/1/2014 Amy Jo.Pearsall@cityoffederalway.com
(253)835-2570
Michael Morales
4/1/2015 Michael.Morales@cityoffederalway.com
(253)835-2612
Tim Johnson 9/15/2014
Ade Ariwoola 4/ 1 /2014
Thomas Fichtner 7/1/2011
Jean Stanley
John Hutton
1/1/2011
7/23/2014
Andy Hwang 3/18/2014
Marwan Salloum 7/1/2014
Tim.Johnson@cityoffederalway.com
(253) 835-2412
Ade.Ariwoola@cityoffederalway.com
(253) 835-2520
Thomas.Fichtner@cityoffederalway.com
(253) 835-2547
Jean. Stanley@cityoffederalway.com
(253) 835-2532
John.Hutton@cityoffederalway.com
(253) 835-6910
Andy.Hwang@cityoffederalway.com
(253)835-6716
Marwan.Salloum@cityoffederalway.com
(253)835-2710
Citv of Federal Wav / 8
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Federal Wav / 9
29
Government Finance Officers Association
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, 2014
Executive Director/CEO
The Government Financial Officers Association of the United States and Canada (GFOA) awarded a certificated of
Achievement for Excellence in Financial Reporting to the City of Federal Way for its Comprehensive Annual Report
(CAFR) for the fiscal year ended December 31, 2014. This was the twenty-fifth consecutive year that the City 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 requirement.
A Certificate of Achievement is valid for a period of one year ONLY. We believe that our current CAFR continues to meet
the Certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for
another certificate.
Citv of Federal Wav / 10
Washington State Auditor's Office
June 28, 2016
Mayor and City Council
City of Federal Way
Federal Way, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund and the aggregate remaining fund information of the City of Federal Way, King
County, Washington, as of and for the year ended December 31, 2015, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the City's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
Citv ofFederal Wav / 11
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund
and the aggregate remaining fund information of the City of Federal Way, King County, Washington, as of
December 31, 2015, and the respective changes in financial position and, where applicable, cash flows
thereof, and the respective budgetary comparison for the General, Street and Utility Tax funds for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Matters of Emphasis
As described in Note 1, during the year ended December 31, 2015, the City has implemented the
Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for
Pensions — an amendment of GASB Statement No. 27. Our opinion is not modified with respect to this
matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 13 through 23 and pension plan information on pages 76 through 78 be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying information listed as combining
financial statements and supplementary information on pages 79 through 114 is presented for purposes of
additional analysis and is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the financial statements. This information has been subjected to auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the financial statements or to the financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
Citv of Federal Wav / 12
the information is fairly stated, in all material respects, in relation to the basic financial statements taken as
a whole.
The information identified in the table of contents as the Introductory and Statistical Sections is presented
for purposes of additional analysis and is not a required part of the basic financial statements of the City.
Such information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we do not express an opinion or provide any assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
hi accordance with Government Auditing Standards, we will also issue our report dated June 28, 2016, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report
will be issued under separate cover in the City's Single Audit Report. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City's internal control over financial reporting and compliance.
Sincerely,
TROY KELLEY
STATE AUDITOR
OLYMPIA, WA
Citv ofFederal Wav / 13
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Federal Way, we offer readers of our annual financial report a narrative overview, and an
analysis of the financial activities of the City of Federal Way for the fiscal year ended December 31, 2015. We encourage
readers to consider the information in conjunction with the preceding letter of transmittal, the financial statements and notes to
the financial statements that follow.
FINANCIAL HIGHLIGHTS
• The total assets plus deferred outflows of the City of Federal Way exceeded its liabilities plus deferred inflows at
December 31, 2015 by $555.3 million (Net Position). Capital Assets (net of depreciation and related debt) account for
87.0% of this amount with a value of $483.2 million. Of the remaining net position of $72.0 million or 13.0%, $51.8
million may be used to meet the government's ongoing obligations to citizens and creditors, without legal restriction while
the $20.2 million are restricted for specific use. (See page 27).
• The City's total net position decreased by $43.6 million, or 7.3% below 2014 as referenced on page 15. Governmental
activities decreased by $50.9 million or 9.4% while business -type activities increased by $7.3 million or 12.7%. A prior
period adjustment of $37.0 million, and change in accounting for pensions of $10.5 million is explained in note 15 on page
73.
• Net investment in capital assets decreased by $33.1 million and unrestricted net position decreased by $13.2 million
respectively over 2014 as referenced on page 15. GASB 68 reporting accounted for $7.3 million of the decrease as
referenced in Note 9 on page 58.
• Restricted Net Position increased by $2.8 million or 16.1% and is primarily for funding of capital projects and debt
service. (page 15)
• Long term liabilities increased by $9.8 million or 26.2% primarily due to the addition of $10.9 million in net pension
liability (see note 9 on page 58) from the implementation of GASB 68 pension reporting, offset by a decrease in long term
debt for General obligation debt, and public works trust fund loans that decreased by $1.1 million during the current fiscal
year. General obligation debt decreased by $1.0 million while public works trust fund loan decreased by $0.1 million. The
City paid down its last payment on the 2010 Limited/Valley Comm GO. (See Note 11 on page 66).
• Governmental fund balances at year-end were $51.7 million, $1.1 million or 2% decrease over the prior year. Of the $51.7
million, $14.4 million, or 27.8% of the governmental fund balance is unassigned and available to fund ongoing activities.
The remaining $37.3 million is earmarked for debt service, paths & trails reserve, hotel/motel lodging tax, police special
funds, petty cash/change funds, court trust fund, advance travel, strategic opportunities reserve, streets maintenance and
capital projects. (See page 30 and page 50).
• Unrestricted or Unassigned fund balance in the general fund was $14.4 million, which increased by $1.9 million or 15.1%
from the prior year. $3.0 million was reclassified to unassigned from committed fund balance in the prior year. (See page
29).
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Federal Way's basic financial statements.
The basic financial statements are comprised of three components:
1) government -wide financial statements,
2) fund financial statements, and
3) notes to the financial statements.
In addition to the required components, the City's annual report also includes other supplementary information. The first set
of supplementary information is the Combining Statements. These provide Balance Sheets, Statement of Revenues,
Expenditures, and Changes in Fund Balances with Budget to Actual Comparisons, Statement of Net Position, and Cash Flows
for all proprietary and internal service funds. The other set of supplementary information is the Statistical Section. This
section provides a one to ten-year view of the City's revenues, expenditures, debt obligations and capacity, the City's largest
taxpayers, and those entities with the largest employment within the City of Federal Way. This section provides a long-term
perspective on the City's economy.
ON of Federal Wav / 14
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the City of Federal
Way's finances, in a manner similar to a private -sector business.
A) The statement of net position presents information on all of the City of Federal Way's assets plus deferred outflows
and liabilities plus deferred inflows, with the difference between the two reported as net position. This statement
serves a purpose similar to that of a balance sheet in private business. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
B) The statement of activities presents information showing how the City's net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave).
Both of the government -wide financial statements distinguish functions of the City of Federal Way that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover
all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities
of the City of Federal Way include law enforcement and public safety, construction and maintenance of streets, building
inspection, municipal court services, jail services, community planning and development services, parks and recreation
facilities, other community services and general administration. The business -type activities of the City include surface water
management and the control and operation of Dumas Bay Centre, a multi -use facility that offers business and retreat
accommodations, recreation and cultural arts classes, and a performing arts facility.
The City has no separately identified component units included in the government -wide financial statements. The City has
reported its investment in two governmental joint ventures: Valley Communications Center and South Correctional Entity
(SCORE). Descriptions of these joint ventures are found in Note 14 of the notes to the financial statements.
The government -wide financial statements can be found immediately following this MD&A
Fund Financial Statements
The annual financial report includes fund financial statements in addition to the government -wide financial statements. While
the government -wide statements present the City's finances based on the type of activity, general government versus business -
type, the fund financial statements are presented by fund type such as the general fund, special revenue funds, and proprietary
funds. A fund is a specific fiscal and accounting entity with a self -balancing set of accounts used to account for specific
activities or to meet certain objectives. Funds are often set up in accordance with special regulations, restriction or limitations.
The City of Federal Way uses fund accounting to ensure and show compliance with finance -related legal requirements. The
City's funds are divided into two categories: governmental funds and proprietary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions as are reported in governmental activities in the
government -wide financial statements. However, unlike the government -wide financial statements, governmental fund
financial statements focus on near -term inflows and outflows of spendable resources as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term
financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for government -wide financial
statements. By doing so, readers may better understand the long-term impact of the government's near -term financing
decisions. Both the expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City of Federal Way maintains twenty individual governmental funds. The City's seven major governmental funds, the
general fund, street fund, utility tax fund, debt service fund, downtown redevelopment fund, transportation fund, and
performing arts & events center fund are presented separately in the governmental fund balance sheet and the governmental
fund statement of revenues, expenditures, and changes in fund balances. The remaining governmental funds are combined into
a single column labeled non -major governmental funds. Individual fund data for each of the non -major governmental funds
can be found in combining statements later on in this report.
Citv ofFederal Wav / 15
The City maintains control over its operating funds through the adoption of the biennial budget. Budgets are adopted at the
fund level and according to state law. A budgetary comparison statement is presented for the General, Street, and Utility Tax
Fund as a basic financial statement. The basic governmental fund financial statements can be found on pages after the
government -wide statements of this report.
Proprietary Funds
The City of Federal Way maintains two types of proprietary funds. Enterprise funds are used to report the same functions
presented as business -type activities in the government -wide statements. The City uses enterprise funds to account for its
Surface Water Management and the Dumas Bay Centre. Internal service funds are an accounting device used to accumulate
and allocate costs internally among the City's various functions. The City uses internal service funds to account for its risk
management, information systems, mail and duplication services, fleet of vehicles and motorized equipment, facilities
management, health insurance, and unemployment services.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The
proprietary fund financial statements provide separate information for the Surface Water Management fund and for the Dumas
Bay Centre. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data is provided in the form of combining statements elsewhere in this report.
The proprietary fund financial statements can be found following the governmental fund statements in this report.
Notes to the Financial Statements
The notes provide additional information that is essential to the full understanding of the data provided in the government -wide
and fund financial statements. The notes to the financial statements can be found immediately following the fund financial
statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents the combining statements for
non -major governmental funds, internal service funds, and capital assets of governmental funds.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
This section provides analysis of the government -wide financial statements including long-term and short-term information
about the City's overall financial condition. The following tables address the financial results of the City as a whole.
CONDENSED STATEMENT OF NET POSITION
As of December 31, 2015 and 2014
Gowrnmental Activities
Business -Type
Activities
Total
2015
2014
2015
2014
2015
2014
Current and other assets $
97,783,028
$95,147,927
$ 7,902,230
$7,787,827
$ 105,685,258
$ 102,935,754
Capital assets and CIP,
netofaccuxn depreciation
444,173,145
486,490,172
59,382,657
50,779,826
503,555,801
537,269,998
Total assets
541,956,173
581,638,099
67,284,887
58,567,653
609,241,060
640,205,752
Deferred ouflows ofresources
2,144,762
197,021
2,341,783
Total deferred outflows ofresource
2,144,762
197,021
2,341,783
Long-term liabilities
45,519,660
36,932,078
1,809,878
565,483
47,329,538
37,497,561
Other liabilities
5,190,221
3,399,540
638,452
463,227
5,828,673
3,862,767
Total liabilities
50,709,881
40,331,618
2,448,330
1,028,710
53,158,211
41,360,328
Deferred inflows ofresources
2,939,368
205,131
3,144,499
Total deferred inflows ofresources
2,939,368
205,131
3,144,499
Net position:
Net investment in:
capital assets
424,245,625
466,078,036
58,998,176
50,299,229
483,243,801
516,377,265
Restricted
20,193,214
17,391,272
15,906
20,311
20,209,120
17,411,583
Unrestricted
46,012,847
57,837,173
5,814,364
7,219,403
51,827,212
65,056,576
Total net position
$ 490,451,686
$ 541,306,481
$ 64,828,447
$ 57,538,943
$ 555,280,133
$ 598,845,424
Citv of Federal Wav / 16
Analvsis of Net Position
Total net position of the primary government of $555.3 million at December 31, 2015 decreased $43.6 million or 7.3%
compared to December 31, 2014. The decrease is due to governmental type activities decrease of $50.9 million and business -
type activities increase of $7.3 million. More detail on the changes in net position are described below under Governmental
and Business -Type activities.
The largest component of the City's net position, 87% or $483.2 million, is net investment in capital assets. These capital
assets such as land, streets, trails, parks, police vehicles, and parks equipment are used to provide services to the citizens.
Consequently, these assets are not available to sell and convert to cash for future spending.
Approximately 2.9% or $16.4 million (page 27) of the total net position of the city are restricted for use on capital projects or
are earmarked for current approved capital projects. Some of the major capital projects the funds are being used for include the
downtown park, trail and pedestrian access improvements, SR99 HOV Lanes Phase 5, Traffic safety improvement proejcts,
and Performing Arts and Event Center. The City attempts to fund capital construction projects on a pay-as-you-go basis,
aggressively pursuing grant funding and cost sharing with developers to construct large projects in the City that impact the
economy and transportation systems.
The remaining balance of restricted net position of $3.8 million are for: $0.18 million for police special funds, and court trust,
$0.02 million for steel lake and north lake management districts, $0.03 million for prepaid insurance/debt and flex plan, $0.46
million for peg and franchise fees for educational and governmental access services, $0.50 million for lodging tax, $0.38
million for paths and trails, and $2.28 million for debt service.
The unrestricted business -type activities portion of $5.8 million; $5.6 million can only be spent on surface water management
and the remaining $0.2 million on improvements to Dumas Bay Centre and Knutzen Family Theatre. Maintenance of catch
basins, pump stations, storm drain flushing, and other capital construction projects such as S 356th Street RDF Retrofit are
examples of utility activities.
Other functions of the City may access the remaining $46.0 million in governmental activities unrestricted net position to meet
ongoing obligation to citizens and creditors. Examples of other City obligations which net position may be used for are public
safety, economic development, parks maintenance, ongoing street maintenance, and committed funds for capital projects.
At the end of the fiscal year, the City of Federal Way reported positive balances in all three categories of net position, for the
government as a whole, as well as for the separate governmental and business -type activities.
Governmental Activities:
Current and other assets increased by $2.6 million or 2.8% primarily due to the addition of $4.4 million in net pension asset
due to GASB 68 pension reporting, offset by a decrease of $2.4 million in investment in joint venture related to the SCORE jail
facility and Valleycomm (See Note 14 on page 69). In addition, due from other governments increased by $1.2 million
primarily due to additional grant funds from Federal and State agencies being requested for reimbursement. Offset by the
increase, cash & cash equivalents decreased by $0.3 million primarily due to transferring in less utility tax into the General
Fund, and receivables decreased by $0.4 million primarily due to a decrease in utility tax receivable in the Utility Tax Fund.
Capitals assets and CIP, net of accumulated depreciation decreased by $42.3 million or 8.7% primarily due to a prior period
adjustment of $45.9 million described in Note 15 on page 73, offset by a net addition of assets in the current year of $3.63
million (See Note 8 on page 56). This is primarily due to a net addition of $2.6 million for transportation infrastructure
constructed by or donated to the City that include roads, sidewalks, streetlights, and traffic signals for projects at locations such
as 21st at 336th that was completed this year. In addition, $1.9 million in land was purchased for transportation projects, and
$0.66 million in land was donated to the City. Machinery & equipment, including IT equipment and vehicle purchases also
had a net addition of $1.2 million. Improvements other than buildings net increase of $1.9 million, resulted from capitalization
of parks improvements including Karl Grosch Field. Buildings and construction in progress (CIP) net decrease of $4.6 million
is primarily due to current year depreciation for Buildings, and a reduction of construction in progress due to capitalizing parks
and transportation projects as improvements other than buildings and infrastructure.
Deferred outflows of resources increased by $2.1 million for governmental activities due to implementation of GASB 68 for
state sponsored pension plans. (See Note 9 on page 58).
Citv ofFederal Wav / 17
Long-term liabilities increased by $8.6 million or 23.3% due to the addition of $9.6 million net pension liability for GASB 68
state sponsored pension plan implementation and $1.0 million reduction primarily due to paying down the balance on GO
Bond, SCORE facility, and Valley Communications. (See Note 11 on page 65).
Other liabilities increased by $1.8 million or 52.7% primarily due to additional liabilities at the end of the year for accrued
payroll liabilities of $1.4 million and additional vouchers payable of $0.5 million due to Performing Arts & Event Center
construction.
Deferred inflows of resources increased by $2.9 million for governmental activities due to implementation of GASB 68 for
state sponsored pension plans. (See Note 9 on page 58).
Net investments in capital assets decreased by $41.8 million or 9.0% primarily due to a decrease in capital assets and CIP, net
of accumulated depreciation explained in the above capital assets description (See note 8 and note 15 on pages 56 and 73), and
a decrease in long-term liabilities related to debt as described above, therefore decreasing net investments in capital assets.
Restricted net position represents amounts that must be used in accordance with external restrictions, and increased by $2.8
million or 16.1% from the prior year primarily due to additional restricted funding for capital projects, debt service, peg fees
for government access channel under contracts and studies fund (page 81), and lodging tax.
The remaining Unrestricted net position decreased by $11.8 million or 20.4% primarily due to a net pension adjustment for
GASB 68 of $6.0 million, reduction of investment in joint venture for SCORE and Valleycomm of $2.4 million, and addition
of accrued payroll liabilities and vouchers payable of $2.0 million.
Business -Type Activities:
Current and other assets increased by $0.1 million or 1.5% primarily due to an increase in Surface Water Management
operations cash and other equivalents of $0.49 million from revenues exceeding operating expenditures. This is due to savings
from unfilled positions, offset by a decrease in Surface Water Management due from other governments for grants of $0.36
million. The remainder is primarily due to a reduction in receivables for Surface Water Management fees, and a reduction in
Dumas Bay Centre cash due to additional operating expenses from food and operating costs in the center.
Capitals assets and CIP, net of accumulated depreciation increased by $8.6 million or 16.9% primarily due to a prior period
adjustment of $8.9 million described in Note 15, primarily from assets being reclassified from governmental to business -type
activities. In the current year, there was a land addition of $0.08 million, net construction in progress reduction of $1.6 million,
improvements other than buildings addition of $0.3 million, infrastructure addition of $1.7 million, and addition of
accumulated depreciation of $0.7 million. (See Note 8 on page 56).
Deferred outflows of resources increased by $0.2 million for business -type activities due to implementation of GASB 68 for
state sponsored pension plans. (See Note 9 on page 58).
Long-term liabilities increased by $1.2 million due to the addition of pension liability (GASB 68) of $1.3 million offset by
paying down of Public works trust fund loans, and an increase in compensated absences payable of $0.01 million. (See Note 9
and 11 on pages 58 and 65).
Other liabilities increased by $0.2 million or 37.8% primarily due to having additional liabilities at the end of the year for
accrued payroll liabilities of $0.09 million. The change from the prior year is due to having two payroll check processes in the
month of December instead of three. Also, additional vouchers payable of $0.09 million due to additional invoices for Dumas
Bay Centre operations and Surface Water Management projects attributed to the increase.
Deferred inflows of resources increased by $0.2 million for business -type activities due to implementation of GASB 68 for
state sponsored pension plans. (See Note 9 on page 58).
Net investments in capital assets increased $8.7 million or 17.3% primarily due to prior period adjustment of $8.9 million for
capital assets described above, and low outstanding balance in Public works trust fund loan.
Unrestricted net position decreased by $1.4 million or 19.4% primarily due to the increase in net pension liability of $1.3
million described above.
ON of Federal Wav / 18
Revenues:
Programs revenues:
Charges for services
Operating grants & contrib.
Capital grants & contrib.
General revenues:
Property taxes
Sales tax
Local criminaljustice sales tax
Utility tax
Real estate excise tax
Othertaxes
Other
Total Revenue
Expenses:
General government
Security of persons & property
Transportation
Physical environment
Economic environment
Health and human services
Culture and recreation
Interest on long-term debt
Surface Water Management
Dumas Bay Centre
Total Expenses
Change in net position before
transfers
Transfers
Change in net position
Net position -beginning
Prior period adjustment Note 15
Net Effect - Change in
Accounting for Pensions
Adjusted net position - beginning
Net position - ending
CHANGES IN NET POSITION
For the Years Ended December 31, 2015 and 2014
Governmental Activities Business -Type Activities Total
2015 2014 2015 2014 2015 2014
$ 14,129,209
$ 14,402,062
$ 4,662,995 $
4,174,613
$ 18,792,204
$ 18,576,675
6,544,175
5,410,098
17,108
177,518
6,561,284
5,587,616
4,508,429
5,632,549
328,130
430,090
4,836,558
6,062,639
10,460,136
10,349,906
-
-
10,460,136
10,349,906
13,297,086
12,173,281
13,297,086
12,173,281
2,319,124
2,138,406
2,319,124
2,138,406
11,796,550
12,028,878
11,796,550
12,028,878
3,031,159
2,062,722
3,031,159
2,062,722
449,964
414,589
449,964
414,589
2,052,748
1,145,798
24,917
22,507
2,077,665
1,168,305
68,588,580
65,758,289
5,033,151
4,804,728
73,621,731
70,563,017
4,743,932
4,633,942
- 4,743,932
4,633,942
32,017,617
29,703,386
- 32,017,617
29,703,386
13,070,260
11,434,659
- 13,070,260
11,434,659
476,570
443,127
- 476,570
443,127
2,973,437
2,785,807
- 2,973,437
2,785,807
1,618,759
1,056,802
- 1,618,759
1,056,802
8,959,555
8,376,205
- 8,959,555
8,376,205
461,763
1,010,406
- - 461,763
1,010,406
-
-
4,093,534 3,653,999 4,093,534
3,653,999
-
-
1,250,161 945,705 1,250,161
945,705
64,321,893
59,444,334
5,343,694 4,599,704 69,665,587
64,044,038
4,266,687
(17,959)
6,313,955
(116,000)
(310,543)
17,959
205,024
116,000
3,956,144
-
6,518,979
(0)
4,248,728
6,197,955
(292,584)
321,024
3,956,144
6,518,979
541,306,481
540,052,936
57,538,943
57,217,919
598,845,424
597,270,855
(45,942,608)
(4,944,409)
8,906,872
-
(37,035,736)
(4,944,409)
(9,160,915)
(1,324,784)
(10,485,699)
-
486,202,958
535,108,527
65,121,032
57,217,919
551,323,990
592,326,446
$ 490,451,686 $
541,306,481
$ 64,828,447 $
57,538,943
$ 555,280,133 $
598,845,424
Citv ofFederal Wav / 19
Analysis of the chanize in net position:
Total government -wide revenues of the primary government increased by $3.1 million or 4.4% and total expenses increased by
$5.6 million or 8.8% from the prior years. These changes are discussed in more detail below.
Governmental Activities:
Governmental activities contributed $4.2 million of the total change in net position of $4.0 million. The prior year change in
net position was $6.2 million. The primary change compared to 2014 is due to the following revenues, and expenses described
below.
Total revenues for governmental activities increased $2.8 million or 4.3%. The increase is primarily due to an increase in sales
tax and criminal justice sales tax of $1.3 million, real estate excise tax of $1.0 million, property tax of $0.1 million, other
revenue increase of $0.9 million primarily due to Performing Arts & Event Center donation of $0.7 million. This increase is
offset by a decrease in utility tax of $0.2 million due to warmer weather, and charges for services of $0.3 million due to less
services and charges revenue received for transportation capital projects.
Total expenses for governmental activities increased $4.9 million or 8.2%. The net increase is primarily due to increases in the
following expense categories: A $2.3 million increase in "Security of persons & property" is primarily due to: $0.81 million
increase in salaries and wages related to adding Police Officer's during the adopted budget, cost of living adjustments, health
insurance cost increases, $0.65 million increase in SCORE and Valleycomm operations, $1.3 million increase in adjustment to
expense for Valleycomm and SCORE investment in joint venture, offset by a $0.2 million decrease due to adjustment for
pension expense. A $1.6 million increase in "Transportation" is primarily due to: $1.1 million increase in Transportation
expenditures that are maintenance for overlay of streets and therefore expensed instead of capitalized, and a $0.76 million net
loss adjustment increase to expense on disposed transportation capital assets that were not fully depreciated. A $0.19 million
increase in "Economic environment" primarily due to: $0.31 million increase due to Community Development Department and
Economic Development Department positions being filled for a full year as well as an increase in health and pension benefits,
offset by a decrease of $0.16 million in consulting for plans review. A $0.56 million increase in "Health and human services"
primarily due to: the addition of $0.17 million payment for King County Health Facility support, and $0.39 million in
Community Development Block Grant support for projects such as housing repair for low-income residents. A $0.58 million
increase in "Culture and recreation" primarily due to: the addition of a Parks maintenance position, additional seasonal help,
and increase of health and pension benefits. A $0.55 million decrease in "interest on long-term debt" primarily due to: no
SCORE debt interest payment due by the City in 2015.
Governmental Activities
- Expenses
Interestonlang-
tem debt; 0.7%
General
government 7.4%
Health and human
t�
serrices, 2.5%
recreati»"
13.9%
8canomic
//*
_
.m umnent. 4.6%
Transportation,
203IN
Physical
0.7%
secw)81-/I�
perso
property
e¢vironme¢t,
Business -Type Activities:
Business -type activities of the City's Surface Water Management system and Dumas Bay Centre decreased the City's net
position by $0.3 million, compared to prior year net position increase of $0.3 million. The primary change compared to 2014
is due to the following revenues and expenses described below.
Total revenues increased by $0.23 million or 4.8% from 2014. Attributing factors to the increase in revenues are as follows:
An increase in surface water management fees of $0.41 million, and Dumas Bay Centre revenue of $0.1 million attributed to
Citv of Federal Wav / 20
the increase in charges for services, offset by a decrease in grant revenue for Surface Water Management operating and capital
proj ects.
Total expenses increase of $0.74 million or 16.2% from 2014. This is primarily due to an increase in Dumas Bay Centre o£
$0.27 million in goods and services for the operation of Dumas Bay Centre, personnel costs of $0.04 million due to
reclassification of Recreation Coordinator to Dumas Bay Centre Manager and addition of 0.25 FTE Administrative Assistant.
And an increase in Surface Water Management of. $0.31 million in personnel costs due to the reallocation of 0.05 FTE Public
Works Director, 0.50 FTE Development Services Manager, and 1.0 FTE Engineering Technician/Inspector, $0.02 million for
additional materials and supplies for Surface Water Management operations, and $0.08 million addition in depreciation
expense.
Business-TypeActivities - Expenses
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City of Federal Way uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
Governmental funds
The focus of the City of Federal Way's governmental funds is to provide information on near -term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular,
unrestricted fund balance may serve as a useful measure of a government's net resources available for spending at the end of
the fiscal year.
As of the end of 2015, the City's governmental funds had a combined ending fund balance of $51.7 million which decreased
by $1.1 million from the prior year. Approximately 28% or $14.4 million of this amount constitutes unrestricted General Fund
balance, which is available for spending at the City Council's discretion. Non -spendable fund balance of $0.1M is comprised
of court trust $0.1M, and prepaid insurance $0.03M. Restricted fund balance of $20.1M is comprised of $5.6M in
transportation capital project funding sources including real estate excise tax (REET), mitigation impact fees, surface water
management fees, and gas tax; $3.7M in performing arts & event center capital project funding sources comprised of REET
and LIFT sales tax; $3.7M in REET dedicated for capital projects and debt service payments; $3.OM in parks capital project
funding sources including REET, mitigation impact fees, and paths and trails funding; $1.5M for future debt service payments;
$1.1M LIFT sales tax for downtown redevelopment infrastructure and parks projects; $0.5M in hotel/motel lodging tax for
promotion of tourism; $0.4M in paths & trails parks levy dedicated for paths & trails projects; $0.5M for special
contracts/studies, and $0.05M in REET for city facilities capital projects. Committed fund balance of $17.1M includes
amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of
decision -making authority. The committed fund balance is detailed by fund under the fund balance classification in Note 1.
The General Fund is the chief operating fund of the City. Revenues and other sources totaling $41.7M and expenditures and
other uses totaling $43.2M, resulted in a total fund balance decrease by $1.4 million or 9.0%. Total ending fund balance of
$14.6M, is $0.4M above the budgeted ending fund balance in the fund of $14.2M. After the fund balance policy resolution 14-
664 that set the General Fund and strategic reserve policy at $12M, the City decided to reduce its transfer from other sources to
General Fund as reflected in the transfer in included in the Statement of Revenues, Expenditures, and Changes in Fund
Balances Governmental Funds of $10.62M in 2014, compared to $5.13M in 2015.
The Street Fund has a total fund balance of $0.5 million which decreased by $0.1 million from 2014 for a storage and
equipment purchase for snow and ice removal.
CitvofFederal Wav/21
The Utility Tax fund was established to account for the utility tax receipts which include 6% collected by State statute for
capital, debt, and other maintenance & operations as determined by Council and the remaining 1.75% is for Voter Approved
enhanced Police and Community Safety in 2007. Total fund balance increased by $1.3 million or 37% from $3.5 million in
2014 due mainly to the Street Fund needing less utility tax support for operations due to vacancy of positions, and positions
charging time to transportation capital projects. Also, less utility tax support was needed for the overlay project on streets in
Federal Way done in 2015.
The Debt Service Fund has a total fund balance of $1.5 million which increased by $1.4 million from $0.07 million in 2014
due to transfers in from utility tax and real estate excise tax for future debt service payments within the fund.
The Downtown Redevelopment fund was established to accumulate resources and set aside funding for downtown projects.
Overall, ending fund balance increased by $0.8 million from $0.33 million. This is primarily due to a $1.1 million addition in
LIFT Sales tax revenue from the State, and a $0.30 million reduction due to a transfer out to the Performing Arts & Event
Center Fund.
The Transportation Fund is used to improve existing traffic signals, new signalization, major roadways and arterials involving
the design and construction of new sections of streets, the widening of roadways to provide additional vehicle lanes, and the
installation of sidewalks and landscaping. The major source of revenue for this fund is grants from other agencies and
contributions from other funds. Total ending fund balance decreased by $0.2 million from $8.2 million primarily due to large
projects such as SR99 HOV Lanes Phase V having additional capital outlay expenditures from the project gearing up for
construction.
The Performing Arts & Event Center Fund is being used for the building of the arts & event center. Ending fund balance
decreased by $1.8 million from $8.4 million primarily due to additional capital outlay expenditures from starting the
construction phase of the project.
Proprietary funds
The City of Federal Way's proprietary funds provide the same type of information found in the government -wide, but in more
detail. Unrestricted net assets of the Surface Water Management Fund at the end of the year amounted to $5.6 million, and
those for Dumas Bay Centre amounted to $0.2 million. The total changes in net position for both funds were $1.4 million
decrease and $0.2 million decrease, respectively. Other factors concerning the finances of these two funds have already been
addressed in the discussion of the City of Federal Way's business -type activities.
GENERAL FUND BUDGETARY AND ACTUAL HIGHLIGHTS
The City of Federal Way budgets on a biennial basis with each budget beginning in an odd numbered year. Appropriations for
operating funds are authorized for two years, but must be reviewed and reauthorized by the City Council in the middle of the
biennial period. In 2015, the City made budget adjustments. The following discussion is reflective only of the current year of
the biennium.
The General Fund operating expenditure budget increased by $1.2 million between the original adopted budget and the
adjusted budget for 2015 fiscal year. The following is the major changes for the 2015 budget:
o Added $0.07 million for 1.0 FTE for Community Outreach Coordinator for Mayor's Office.
o Added $0.04 million for 25th Year Celebration and New Market Tax Credit services and travel for Mayor's Office.
o Added $0.04 million for Advertising, Printing, and Association dues for Mayor's Office.
o Added $0.02 million for Economic Strategy for Economic Development.
o Added $0.02 million for temp help, termination pay, and witness fee for Municipal Court.
o Added $0.01 million for 0.25 FTE increase for Human Resources.
o Added $0.02 million for supplies and other service charges for City Council.
o Added $0.12 million for outside Legal Counsel Services for Law.
o Added $0.04 million for 0.50 FTE increase for Law.
o Added $0.06 million for M&O, Building Reserves, Fleet & Equipment for Internal Service Charges.
o Added $0.38 million for Grants, Overtime, Jail Services, Dispatch and Sub Station for Police.
o Added $0.08 million for Seasonal Help & Benefits for Parks.
o Added $0.14 million for Professional Services for Human Services.
o Added $0.14 million for Professional Services for Strategic Reserve.
Citv of Federal Wav / 22
Adjustments to revenues and other sources budget include: Adjustments to beginning balance of $0.8 million; increase in sales
tax of $1.0 million; increase in criminal justice sales tax of $0.15 million; and increase in grants and miscellaneous revenue of
$0.20 million.
The General Fund ending fund balance of $14.6 million is $0.37 million over the projected $14.2 million for 2015 year-end.
The $0.37 million increase in ending fund balance is made up of $0.40 million decrease in revenues/other sources and a
decrease of $0.77 million in expenditures/other uses.
The $0.40 million decrease in revenues/other sources is primarily attributed to a decrease of $1.4 million in transfer in from the
Utility Tax Fund, offset by increases in sales tax of $0.33 million, criminal justice sales tax of $0.05 million, gambling taxes of
$0.03 million, state shared revenue of $0.07 million, police contracted services fees of $0.14 million, park general recreation
fees of $0.07 million, community economic development permits fees of $0.13 million, and miscellaneous of $0.18 million.
The $0.77 million unspent expenditures/other uses are primarily attributable to: Reduction in transfer out for Street Fund
subsidy of $0.56 million, and $0.21 million in various savings in General Fund departments such as Human Services,
Community Development, and Human Resources.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City of Federal Way's investment in capital assets for its governmental and business -type activities as of December 31,
2015 amounts to $503.6 million (net of accumulated depreciation). This investment in capital assets includes land, buildings,
improvements, machinery and equipment, infrastructure, park facilities and construction in progress. For more details, please
see Note 8, and prior period adjustment Note 15, pages 56 and 73.
CAPITAL ASSETS AT YEAR-END, NET OF DEPRECIATION
Governmental
Business -Type
Total
Activities
Activities
2015
2014
Land
$ 279,352,222
$ 11,013,528 $
290,365,750 $
323,840,873
Building and improvements
32,180,131
2,937,748
35,117,879
39,015,677
Machinery and equipment
6,030,644
18,035
6,048,679
4,837,176
Infrastructure
110,912,917
42,302,160
153,215,076
143,309,653
Construction in progress
15,697,231
3,111,186
18,808,417
26,266,619
Total Capital Assets
$ 444,173,145
$ 59,382,656 $
503,555,801 $
537,269,998
Major capital asset events during the current fiscal year included the following: Construction in progress for expanding
and improving the city streets and traffic corridors totaled $3.9 million and Performing Arts and Event Center and
various park improvements for $4.2 million. Additionally there was land purchased and donated of $2.6 million,
infrastructure added of $10.2 million, improvements other than buildings added of $3.3 million, machinery and
equipment added of $2.5 million, and buildings added of $0.5 million. There was also a prior period adjustment of
($37.0) million described in Note 15 of the financial statements. Remaining commitments for capital assets is described
in Note 8.
Long-term debt
At the end of 2015, the City of Federal Way had total debt outstanding of $34.0 million. The future principal and interest
payments which are backed by the full faith and credit of the government will be $46.1 million (See Note 11 pages 65 thru 67).
The remainder of the City's debt represents Public Works Trust Fund Loans.
LONG-TERM DEBT (FUTURE PRINCIPAL AND INTEREST PAYMENTS)
Governmental Business -Type
Activities Activities Total
General obligation bonds $ 45,666,740 $ - $ 45,666,740
Public works trust fund loan - 394,091 394,091
Total $ 45,666,740 $ 394,091 $ 46,060,831
The City's total debt decreased by $1.1 million due to annual debt service payments.
CitvofFederal Wav/23
In February 2013, Moody's Investors Service assigned Aa3 rating to the City's Limited Tax General Obligation Refunding
Bonds, 2013.
Washington State statutes limit the amount of debt a government entity may issue to 7.5% of its total assessed valuation,
subject to 60% majority vote of qualified electors. Of the 7.5% limit, 2.5% is for general purposes, 2.5% for open space/park
facilities, and 2.5% for utilities. Non -voted general purpose indebtedness is limited to 1.5% of assessed valuation and
combination of voted and non -voted general purpose indebtedness cannot exceed 2.5% of assessed valuation.
The City's taxable assessed valuation for 2015 was $8.848 billion and the total amount of debt the City may issue is $632.3
million. Remaining legal debt capacities as of December 31, 2015 are:
General government (no vote required)
$101,361,960
General government (3/5 majority vote required)
$ 88,489,945
Parks and open space (3/5 majority vote required)
$221,224,864
Utilities (3/5 majority vote required)
$221,224,864
Total Capacity
$632,301,633
Additional information on the City of Federal Way's long-term debt can be found in Note l 1 pages 65 thru 67 and in the
Statistical Section of this report.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of Federal Way's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to Finance Department, City of Federal Way, 33325 8th Avenue South,
Federal Way, Washington 98003, telephone 253-835-2520, or visit the City's website at www.cityoffederalway.com.
ON ofFederal Wav /24
CITY OF
Federal Way
It's all within reach
THIS PAGE IS LEFT D4T=ONALLY BLANK
CitvofFederal Wav/25
BASIC FINANCIAL STATEMENTS
Citv of Federal Wav / 26
Government -Wide Financial Statements
Statement of Net Position
This statement provides information on all city assets and deferred outflows of resources and liabilities and deferred inflows
of resources, with the difference between the two reported as net position.
Statement of Activities
This statement is focused on both the gross and net costs of various functions, including both governmental and business -type
activities, which are supported by the City's general tax and other revenues.
CitvofFederal Wav/27
STATEMENT OF NET POSITION
December 31, 2015
ASSETS
Cash & cash equivalents and investments
Receivables (net)
Due from other governments
Prepaid items
Restricted assets:
Seizure funds/petty cash/advance travel/retainage
Investment in joint venture
Capital assets not being depreciated:
Land
Construction in progress
Capital assets net of accumulated depreciation:
Buildings/structures
Improvements other than buildings
Machinery and equipment
Infrastructure
Net Pension Asset
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS
LIABILITIES
Accounts payable and accruals
Unearned revenue
Retainage payable
Customer deposits
Noncurrent Liabilities:
Due within one year
Due in more than one year
Net Pension Liability
Total Liabilities
Governmental
Business -type
Activities
Activities
Total
$ 67,901,549
$ 7,736,218
$ 75,637,767
1,991,601
136,246
2,127,847
3,703,974
29,766
3,733,740
36,718
-
36,718
176,194 - 176,194
19,575,580 - 19,575,580
279,352,222
11,013,528
290,365,750
15,697,231
3,111,186
18,808,417
22,901,391
319,314
23,220,705
9,278,740
2,618,434
11,897,174
6,030,644
18,035
6,048,679
110,912,917
42,302,160
153,215,077
4,397,412
-
4,397,412
541,956,173
67,284,887
609,241,060
2,144,762
197,021
2,341,783
3,633,766
224,797
3,858,563
273,418
368,453
641,871
203,979
39,065
243,044
1,079,058
6,137
1,085,195
983,340
102,483
1,085, 823
34,955,434
376,957
35,332,391
9,580,886
1,330,438
10,911,324
50,709,881
2,448,330
53,158,211
DEFERRED INFLOW OF RESOURCES RELATED
TO PENSIONS 2,939,368 205,131 3,144,499
NET POSITION
Net investment in capital assets
Restricted for:
Debt service
Capital projects
Steel Lake & North Lake Mgmt District
Other
Unrestricted
Total Net Position
424,245,625 58,998,176
483,243,801
2,283,702 -
2,283,702
16,357,119 -
16,357,119
- 15,906
15,906
1,552,393 -
1,552,393
46,012,847 5,814,364
51,827,212
$ 490,451,686 $ 64,828,447 $ 555,280,133
The notes to the financial statements are an integral part of this statement.
ON of Federal Wav / 28
STATEMENT OF ACTIVITIES
For the Year ended December 31, 2015
Program Revenues
Net (Expense) Revenue & Changes in Net Position
Operating Capital
Charges for Grants and Grants and
Governmental
Business -type
Expenses
Services Contributions Contributions
Activities
Activities
Total
Functions/Programs
Governmental Activities:
General government
$ 4,743,932
$ 1,994,674 $ 2,087,480 $ -
$ (661,778)
$
$ (661,778)
Security ofpersons & property
32,017,617
5,295,641 1,456,253 -
(25,265,723)
(25,265,723)
Transportation
13,070,260
1,362,118 1,639,335 4,508,428
(5,560,378)
(5,560,378)
Physical environment
476,570
302,083 180,903 -
6,415
6,415
Economic environment
2,973,437
2,698,841 1,082,722
808,126
808,126
Health
1,618,759
- 75,969
(1,542,790)
(1,542,790)
Culture & recreation
8,959,555
2,475,852 21,514
(6,462,189)
(6,462,189)
Interest on long-term debt
461,763
- -
(461,763)
(461,763)
Total governmental activities
64,321,893
14,129,209 6,544,176 4,508,428
(39,140,080)
(39,140,080)
Business -type Activities:
Surface Water Management
4,093,534
3,903,381 17,108 328,130
155,085
155,085
Dumas Bay Centre
1,250,161
759,614 - -
(490,547)
(490,547)
Total business -type activities
5,343,694
4,662,995 17,108 328,130
(335,461)
(335,461)
Total
$ 69,665,587
$ 18,792,204 $ 6,561,284 $ 4,836,558
(39,140,080)
(335,461)
(39,475,541)
General revenues:
Property tax
10,460,136
10,460,136
Sales tax
13,297,086
13,297,086
Local criminal justice sales tax
2,319,124
2,319,124
Utility tax
11,796,550
11,796,550
Real estate excise tax
3,031,159
3,031,159
Gambling tax
177,807
177,807
Hotel/motel tax
266,053
266,053
Leasehold excise tax
6,104
6,104
Other revenue
1,820,867
-
1,820,867
Investment earnings
231,881
24,917
256,798
Transfers
(17,959)
17,959
-
Total general revenues and transfers
43,388,808
42,876
43,431,684
Change in net position
4,248,728
(292,585)
3,956,143
Net position at beginning of year
541,306,481
57,538,943
598,845,424
Prior period adjustment (See Note 15)
(45,942,608)
8,906,872
(37,035,736)
Net Effect - Change in Accounting for Pensions
(9,160,915)
(1,324,783)
(10,485,698)
Adjusted beginning net position
486,202,958
65,121,032
551,323,990
Net position at end ofyear
$490,451,686
$64,828,447
$ 555,280,133
The notes to the financial statements are an integral part of this statement.
CitvofFederal Wav/29
BALANCESHEET
GOVERNMENTAL FUNDS
December 31, 2015
Debt
General
Street
Utility Tax
Service
ASSETS
Equity in pooled cash & investments
$ 14,676,397
$ 1,129,001
$ 3,643,658
$ 1,471,579
Prepaid insurance/debt service
31,718
-
-
-
Receivables (net):
Taxes
232,835
1,309,337
Accounts and contracts
53,730
-
Restricted cash
176,194
-
-
Due from other governments
1,885,132
91,524
1,878
Interfund loans receivable
16,660
-
-
-
TOTAL ASSETS
17,072,666
1,220,525
4,954,873
1,471,579
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Vouchers payable
516,840
171,502
1,941
-
Accounts/payroll payable
1,036,992
78,686
113,435
-
Retainage payable
1,888
-
-
-
Deposits payable
658,706
397,433
-
Interfund loans payable
-
-
-
Unearned revenue
56,248
72,904
-
-
TOTAL LIABILITIES
2,270,674
720,525
115,376
-
DEFERRED INFLOWS OF RESOURCES
FOR UNAVAILABLE PROPERTY TAXES
197,034
-
-
-
Fund Balance:
Nonspendable
136,806
-
-
Restricted
71,106
-
-
1,471,579
Committed
34,513
500,000
4,839,497
-
Unassigned
14,362,533
-
-
-
TOTAL FUND BALANCES
14,604,958
500,000
4,839,497
1,471,579
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 17,072,666 $ 1,220,525 $ 4,954,873 $ 1,471,579
The notes to the financial statements are an integral part of this statement.
Citv of Federal Wav / 30
ASSETS
Equity in pooled cash & investments
Prepaid insurance/debt service
Receivables (net):
Taxes
Accounts and contracts
Restricted Cash
Due from other governments
Interfund loans receivable
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Vouchers payable
Accounts/payroll payable
Retainage payable
Deposits payable
Interfund loans payable
Unearned revenue
TOTAL LIABILITIES
BALANCESHEET
GOVERNMENTAL FUNDS
December 31, 2015
Downtown Performing Arts Nonmajor
Redevelopment Transportation & Event Ctr Governmental Total
$ 1,004,473 $ 7,108,461 $ 7,296,297 $ 14,473,817 $ 50,803,683
- - - - 31,718
- 329,365
1,871,537
- 66,335
120,065
- - -
176,194
121,284 1,326,795 238,646
3,665,259
- - - -
16,660
1,125,757 8,435,256 7,296,297 15,108,163
56,685,116
14,731 256,029
665,674
208,842
1,835,559
- 1,665
5,597
137,884
1,374,259
168,955
7,250
25,886
203,979
-
-
22,919
1,079,058
-
16,660
16,660
- -
-
144,266
273,418
14,731 426,649
678,521
556,457
4,782,933
DEFERRED INFLOWS OF RESOURCES
FOR UNAVAILABLE PROPERTY TAXES
8 -
197,042
Fund Balance:
Nonspendable
- - - -
136,806
Restricted
1,107,229 5,621,688 3,694,251 8,090,555
20,056,408
Committed
3,789 2,386,919 2,923,525 6,461,151
17,149,394
Unassigned
- - - -
14,362,533
TOTAL FUND BALANCES
1,111,018 8,008,607 6,617,776 14,551,706
51,705,141
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,125,757 $ 8,435,256 $ 7,296,297 $ 15,108,163
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds. See Note 8, difference is the Internal Service fund amount of $13.86M on page 37 430,313,531
Investment in joint venture is not a financial resource and, therefore, not reported in the funds. See Note 14. 19,575,580
Other long-term and non -current assets are not available to pay for current -period expenditures and, therefore,
are not reported in the funds: includes deferred inflows, and net pension asset. See Note 6 $197K & Note 9 $4.4M (page 58) 4,594,454
Internal service funds are used to charge the costs of insurance, unemployment, information systems, mail and duplication,
fleet, and building to individual funds. The assets and liabilities of the internal service funds are included in governmental
activities in the statement of net position. Page 37 Internal Service Net Position - Adj $60.5K + $54.8K LT Comp Abs
+ $520.8K Net Pension Liability (NPL) + $80.3K Def Infl Rel to Pensions - $77.1K Def Outfl Rel to Pensions 30,577,245
Long-term liabilities, including bonds payable, pension liability, and inflows/outflows related to pensions are not due and
payable in the current period and, therefore, are not reported in the funds. See Note 11-$35.9M, In Govt Wide - $9.6 NPL
- $2.9M Def Infl Rel to Pensions + $2.1M Def Outfl Rel to Pensions (46,314,265)
Net position of governmental activities $ 490,451,686
The notes to the financial statements are an integral part of this statement.
Citv offederal Wav / 31
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For Year Ended December 31, 2015
REVENUES
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Fines and forfeitures
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
General government
Security of persons and property
Transportation
Physical environment
Economic environment
Health
Culture and recreation
Debt service:
Principal
Interest/fiscal charges/admin fees
Capital outlay
TOTAL EXPENDITURES
Debt
General Street Utility Tax Service
$ 26,105,265 $ - $ 11,796,549
3,474,991 99,657 -
1,975,646 1,138,189 -
3,205,563 420,592 -
1,075,029 - -
157,362 1,758 4,887
596,616 52,986 -
36,590,472 1,713,182 11,801,436
851
4,167,094
217,943
112,538 -
28,368,025
-
2,558,673 -
705,377
3,401,576
- -
2,791,828
-
77,971 -
984,252
-
- -
4,213,541
-
94,744 -
-
-
- 640,482
-
-
- 364,998
40,754
105,225
- -
41,270,871
3,724,744
2,843,926 1,005,480
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (4,680,399) (2,011,562) 8,957,510 (1,004,629)
OTHER FINANCING SOURCES (USES)
Transfers in
5,133,008
1,909,539
-
2,402,722
Transfers out
(1,892,069)
-
(7,663,210)
-
TOTAL OTHER FINANCING
SOURCES (USES)
3,240,939
1,909,539
(7,663,210)
2,402,722
NET CHANGE IN FUND BALANCES
(1,439,460)
(102,023)
1,294,300
1,398,093
FUND BALANCES - BEGINNING
16,044,418
602,023
3,545,197
73,486
FUND BALANCES - ENDING
$ 14,604,958
$ 500,000
$ 4,839,497
$ 1,471,579
The notes to the financial statements are an integral part of this statement.
Citv of Federal Wav / 32
REVENUES
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Fines and forfeitures
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
General government
Security of persons and property
Transportation
Physical environment
Economic environment
Health
Culture and recreation
Debt service:
Principal
Interest/fiscal charges/admin fees
Capital outlay
TOTAL EXPENDITURES
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For Year Ended December 31, 2015
Downtown
Performing Arts
Nonmajor
Redevelopment
Transportation
& Event Ctr
Governmental
Total
$ 11,084
$ -
$ -
$ 3,474,996
$ 41,387,894
-
-
-
-
3,574,648
1,072,722
3,397,404
10,000
1,316,642
8,910,603
-
778,119
-
2,063,254
6,467,528
-
-
-
3,012,004
4,087,033
653
11,124
11,628
22,026
210,289
-
8,184
744,579
418,502
1,820,867
1,084,459
4,194,831
766,207
10,307,424
66,458,862
95,715 -
- 113,855
4,707,145
- -
- 1,545,084
32,471,782
- 1,216,342
- 1,786,100
7,109,395
- -
- 478,807
478,807
- -
- 91,042
2,960,841
- -
- 633,566
1,617,818
- -
- 2,479,206
6,787,491
- -
- -
640,482
126,381 -
- -
491,379
1,500 5,725,054
2,987,135 1,377,718
10,237,386
223,596 6,941,396
2,987,135 8,505,378
67,502,526
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 860,863 (2,746,565) (2,220,928) 1,802,046 (1,043,664)
OTHER FINANCING SOURCES (USES)
Transfers in
227,348
2,543,334
455,133
1,751,103
14,422,187
Transfers out
(310,256)
-
-
(4,613,611)
(14,479,146)
TOTAL OTHER FINANCING
SOURCES (USES)
(82,908)
2,543,334
455,133
(2,862,508)
(56,959)
NET CHANGE IN FUND BALANCES
777,955
(203,231)
(1,765,795)
(1,060,462)
(1,100,623)
FUND BALANCES - BEGINNING
333,063
8,211,838
8,383,571
15,612,168
52,805,764
FUND BALANCES -ENDING
$ 1,111,018
$ 8,008,607
$ 6,617,776
$ 14,551,706
$ 51,705,141
The notes to the financial statements are an integral part of this statement.
Citv offederal Wav / 33
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Amounts reported for governmental activities in the statement of activities (page 28) are 2015
different because:
Net change in fund balances --total governmental funds (page 32) $ (1,100,623)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which 3,301,155
capital outlays exceeded depreciation in the current period. (page 51)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds. (page 51) (33,875)
The issuance of long-term debt provides current financial resources to governmental
funds, while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds. Neither transaction, however,
has any effect on net position. Also, governmental funds report the issuance
proceeds of new debt as current financial resources and payment as the use
of current resources, whereas these amounts reduce the net position. (page 51) 1,076,316
Internal service funds are used by management to charge costs of risk management,
information systems, mail & duplication, fleet, and building systems to the funds.
(page 38) $370K - $4.5K 365,343
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in the funds.
Includes adjustment for GASB 68 pension reporting. (page 51) 640,412
Change in net position of governmental activities (page 28) $ 4,248,728
The notes to the financial statements are an integral part of this statement.
Citv of Federal Wav / 34
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
REVENUES
Taxes
Licenses and permits
Intergovernmental
Service charges and fees
Fines and forfeitures
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
General government
Security of persons and property
Transportation
Economic environment
Health
Culture and recreation
Capital outlay
TOTAL EXPENDITURES
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
S 24,589,620
S 25,739,620
S 26,105,265
S 365,645
2,847,000
2,847,000
3,474,991
627,991
1,600,427
1,773,307
1,975,646
202,339
3,559,346
3,587,165
3,205,563
(381,602)
1,163,000
1,163,000
1,075,029
(87,971)
134,000
134,000
157,362
23,362
359,700
359,700
596,616
236,916
34,253,093 35,603,792 36,590,472 986,680
3,871,619
4,532,241
4,167,094
365,147
27,585,735
28,097,806
28,368,025
(270,219)
734,113
736,570
705,377
31,193
2,937,613
2,851,120
2,791,828
59,292
1,160,826
1,151,700
984,252
167,448
4,016,827
4,098,203
4,213,541
(115,338)
-
16,185
40,754
(24,569)
40,306,733 41,483,825 41,270,871 212,954
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (6,053,640) (5,880,033) (4,680,399) 1,199,634
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
7,275,493 6,525,929 5,133,008 (1,392,921)
(2,078,336) (2,453,661) (1,892,069) 561,592
5,197,157 4,072,268 3,240,939 (831,329)
(856,483) (1,807,765) (1,439,460) 368,305
15,194,978 16,044,419 16,044,418 (1)
$ 14,338,495 $ 14,236,654 $ 14,604,958 $ 368,304
The notes to the financial statements are an integral part of this statement.
Ci
Federal Wav / 35
STREET FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
REVENUES
Licenses and permits
Intergovernmental
Service charges and fees
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
General government
Transportation
Capital outlay
TOTAL EXPENDITURES
Variance with
Budgeted Amounts
Final Budget -
Positive
Original
Final
Actual Amounts
(Negative)
$ 115,000
$ 115,000
$ 99,657
$ (15,343)
1,045,000
1,131,550
1,138,189
6,639
202,000
202,000
420,592
218,592
2,000
2,000
1,758
(242)
34,000
34,000
52,986
18,986
1,398,000 1,484,550 1,713,182 228,632
195,010
237,230
217,943
19,287
3,720,327
3,919,657
3,401,576
518,081
150,000
150,000
105,225
44,775
4,065,337
4,306,887
3,724,744
582,143
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,667,337) (2,822,337) (2,011,562) 810,775
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
2,517,336 2,720,313 1,909,539 (810,774)
2,517,336 2,720,313 1,909,539 (810,774)
NET CHANGE IN FUND BALANCES (150,001) (102,024) (102,023) 1
FUND BALANCES - BEGINNING 650,000 602,023 602,023 -
FUND BALANCES - ENDING $ 499,999 $ 499,999 $ 500,000 $ 1
The notes to the financial statements are an integral part of this statement.
Citv of Federal Wav / 36
UTILITY TAX FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 12,677,790 $ 11,291,790 $ 11,796,549 $ 504,759
Interest 6,000 6,000 4,887 (1,113)
TOTAL REVENUES 12,683,790 11,297,790 11,801,436 503,646
EXPENDITURES
Current:
General government
51,076
112,538
112,538
-
Security of persons and property
2,592,949
2,592,949
2,558,673
34,276
Economic environment
101,268
101,268
77,971
23,297
Culture and recreation
96,672
96,672
94,744
1,928
TOTAL EXPENDITURES
2,841,965
2,903,427
2,843,926
59,501
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
9,841,825
8,394,363
8,957,510
563,147
OTHER FINANCING SOURCES (USES)
Transfers in
-
-
-
-
Transfers out
(10,296,533)
(9,361,946)
(7,663,210)
1,698,736
TOTAL OTHER FINANCING
SOURCES (USES)
(10,296,533)
(9,361,946)
(7,663,210)
1,698,736
NET CHANGE IN FUND BALANCES (454,708) (967,583) 1,294,300 2,261,883
FUND BALANCES - BEGINNING 3,520,748 3,545,197 3,545,197 -
FUND BALANCES - ENDING $ 3,066,040 $ 2,577,614 $ 4,839,497 $ 2,261,883
The notes to the financial statements are an integral part of this statement.
Citv offederal Wav / 37
ASSETS
Current Assets
Equity in pooled cash & investments
Prepaid items
Receivables (net):
Accounts and contracts
Due from other governments
TOTAL CURRENT ASSETS
Property, plant and equipment
Land
Building/structures
Improvements other than buildings
Machinery/furniture/equipment
Infrastructure
Construction in progress
Less accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2015
Governmental
Business -type Activities - Enterprise Funds Activities
Surface Water Dumas Bay Internal
Management Centre TOTAL Service
$ 6,955,155 $ 720,548 $ 7,675,702 $ 17,158,382
- - - 5,000
102,375
33,871
136,246
-
29,766
-
29,766
38,715
7,087,296
754,419
7,841,714
17,202,097
8,903,888
2,109,640
11,013,528
-
19,849
3,581,015
3,600,864
16,555,481
2,516,780
314,901
2,831,681
-
-
122,200
122,200
18,063,578
56,847,003
-
56,847,003
-
3,111,186
-
3,111,186
(14,771,277)
(3,372,529)
(18,143,806)
(20,759,445)
56,627,429
2,755,227
59,382,656
13,859,614
63,714,725
3,509,646
67,224,370
31,061,711
DEFERRED OUTFLOWS RELATED TO
PENSIONS 168,066 28,955 197,021 77,121
LIABILITIES AND FUND EQUITY
Current Liabilities:
Vouchers/payroll payable
Unearned revenue
Retainage payable - with escrow agent
Deposits payable
Public Works trust fund loan payable
Compensated absences payable
TOTAL CURRENT LIABILITIES
Long-term liabilities:
Public Works trust fund loan payable
Compensated absences payable
Net Pension Liability
TOTAL LONG-TERM LIABILITIES
TOTAL LIABILITIES
DEFERRED INFLOWS RELATED TO
PENSIONS
Net investment in capital assets
Restricted for:
Steel Lake & North Lake Mgmt District
Unrestricted
TOTAL NET POSITION
167,451
57,347
224,798
423,950
94,929
273,524
368,453
-
39,065
-
39,065
-
6,137
6,137
96,120
-
96,120
5,116
1,246
6,363
-
402,681
338,254
740,936
423,950
288,360
-
288,360
-
71,247
17,349
88,596
54,761
1,134,907
195,531
1,330,438
520,782
1,494,514
212,880
1,707,394
575,543
1,897,195
551,135
2,448,330
999,493
174,983
30,148
205,131
80,296
56,242,949
2,755,227
58,998,176
13,859,614
15,906
-
15,906
-
5,551,757
202,091
5,753,849
16,199,429
$ 61,810,613
$ 2,957,318
64,767,931
$ 30,059,043
Adjustment to reflect the consolidation of internal service fund activities related to
enterprise funds 60,516
NET POSITION OF BUSINESS -TYPE ACTIVITIES
$ 64,828,447
The notes to the financial statements are an integral part of this statement.
Citv of Federal Wav / 38
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For Year Ended December 31, 2015
OPERATING REVENUES:
Service charges and fees
Intergovernmental
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):
Business -type Activities - Enterprise Funds
Surface Water Dumas Bay
Management Centre TOTAL
Governmental
Service
$ 3,903,381 $ 759,614 $ 4,662,995 $ 10,248,394
32,482 - 32,482 -
- - - 93,524
3,935,863 759,614 4,695,477 10,341,918
2,002,027
375,743
2,377,770
904,821
164,150
303,459
467,609
647,979
462,383
375,503
837,886
6,438,649
220,075
895
220,970
160,217
577,979
154,091
732,070
2,145,002
665,278
40,711
705,989
-
4,091,892
1,250,402
5,342,294
10,296,668
(156,029)
(490,788)
(646,817)
45,250
Gain (Loss) from disposal of capital assets
-
-
-
52,381
Interest income
22,658
723
23,381
23,133
Interest expense
(4,405)
-
(4,405)
-
TOTAL NON -OPERATING REVENUES (EXPENSES)
18,253
723
18,976
75,514
INCOME (LOSS) BEFORE TRANSFERS
(137,776)
(490,065)
(627,841)
120,764
Capital contributions
312,756
-
312,756
210,120
Transfers in
69,300
487,659
556,959
72,308
Transfers out
(539,000)
-
(539,000)
(33,308)
CHANGE IN NET POSITION
(294,720)
(2,406)
(297,126)
369,884
NET POSITION - BEGINNING 54,328,545 3,154,424
Prior period adjustment 8,906,870 -
Net Effect - Change in Accounting for Pensions (1,130,082) (194,700)
ADJUSTED NET POSITION - BEGINNING 62,105,333 2,959,724
NET POSITION - ENDING $ 61,810,613 $ 2,957,319
Adjustment to reflect the consolidation of internal service fund activities related to enterprise
CHANGES IN NET POSITION OF BUSINESS -TYPE ACTIVITIES
4,541
$ (292,585)
30,207,728
(518,569)
29,689,159
$ 30,059,043
The notes to the financial statements are an integral part of this statement.
Citv offederal Wav / 39
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For Year Ended December 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash payments to claimants
Cash payments to suppliers for goods/services
Cash payments to employees
Cash payments to other funds for goods and services
Cash payments to other governments for goods and services
Other operating receipts
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
Transfers out
NET CASH PROVIDED BY NONCAPITAL FINANCING
CASH FLOWS FROM CAPITAL AND CAPITAL -
RELATED FINANCING ACTIVITIES:
Principal paid on debt service
Interest paid on debt service
Acquisition of capital asset/construction work in progress
Proceeds from the sale of capital assets
NET CASH USED FOR CAPITAL AND CAPITAL -
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
NET CASH PROVIDED BY INVESTING ACTIVITIES
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income/(loss)
Adjustments to reconcile operating income to net cash
provided/(used) by operating activities:
Increases/(decrease)in depreciation expense
(Increases)/decrease in accounts receivable
(Increases)/decrease in due from other governments
(Increases)/decrease in deferred outflows related to pensions
Increases/(decrease)in vouchers/accounts payable
hncreases/(decrease) in retainage payable
Increases/(decrease) due to adjustment of prior period expenses
Increases/(decrease) in deposits payable
Increases/(decrease) in deferred revenue
Increases/(decrease) in accrued payroll/compensated absences payable
Increases/(decrease) in net pension liability
Increases/(decrease) in deferred inflows related to pensions
TOTAL ADJUSTMENTS
NET CASH PROVIDED/USED BY OPERATING ACTIVITIES
Non -cash investing, capital, and financing activities:
Other contributions of capital assets
Governmental
Business -type Activities - Enterprise Funds
Activities
Surface Water
Dumas Bay
Internal
Management
Centre
TOTAL
Service
$ 3,906,737
$ 784,861
$ 4,691,598
$ 10,225,910
-
-
-
(712,690)
(505,794)
(569,994)
(1,075,788)
(5,666,584)
(1,982,594)
(371,343)
(2,353,937)
(890,319)
(665,278)
(40,711)
(705,989)
(220,075)
(896)
(220,971)
(669,022)
393,605
-
393,605
77,294
926,601
(198,083)
728,518
2,364,589
1,632,300
487,659
2,119,959
72,308
(2,102,000)
-
(2,102,000)
(33,308)
(469,700)
487,659
17,959
39,000
(96,120) (96,120)
(4,405) (4,405)
(179,179) (179,179) (2,323,732)
52.381
(279,704)
-
(279,704)
(2,271,351)
22,658
717
23,375
23,133
22,658
717
23,375
23,133
199,855
290,293
490,148
155,371
6,755,299
430,255
7,185,554
17,003,012
6,955,155
720,548
7,675,702
17,158,382
(156,029)
(490,788)
(646,817)
45,250
577,987
154,093
732,080
2,145,003
11,397
7,759
19,156
-
361,130
-
361,130
(38,715)
(108,494)
(18,692)
(127,186)
(49,785)
119,955
44,478
164,433
198,550
777
-
777
-
-
63,907
63,907
582
582
(8,041)
17,487
9,447
-
7,683
2,375
10,058
9,113
310,778
53,544
364,322
142,609
(190,543)
(32,828)
(223,371)
(87,436)
1,082,630
292,705
1,375,335
2,319,339
$ 926,601 $
(198,083) $
728,518 $
2,364,589
$ 210,119
The notes to the financial statements are an integral part of this statement.
Citv ofFederal Wav / 40
CITY OF
Federal Way
It's all within reach
THIS PAGE IS LEFT D4T=ONALLY BLANK
Citv ofFederal Wav / 41
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2015
Ilei 11 WN
Note
Page
1
Summary of Significant Accounting Policies...............................................................................
42
ReportingEntity ...................................................................................................................
42
Basis of Presentation - Government -wide and Fund Financial Statements ..........................
42
Measurement Focus, Basis of Accounting...........................................................................
44
BudgetaryInformation.........................................................................................................
45
Assets, Liabilities, Fund Balance and Net Position..............................................................
47
Cashand Investments..................................................................................................
47
Receivables..................................................................................................................
47
Amounts Due to and from Other Funds; Interfund Loans ...........................................
47
Inventories and prepaids..............................................................................................
47
CapitalAssets..............................................................................................................
47
Compensated Absences Payable..................................................................................
48
Pensions.......................................................................................................................
48
Long -Term Liabilities..................................................................................................
49
FundBalance Classification........................................................................................
49
Interfund Transactions.................................................................................................
50
2
Reconciliation of Government -wide & Fund Financial Statements .............................................
51
3
Stewardship, Compliance and Accountability ..............................................................................
51
4
Supplemental Appropriations.......................................................................................................
52
5
Deposits and Investments.............................................................................................................
52
6
Property Taxes..............................................................................................................................
54
7
Unearned Revenues and Receivables...........................................................................................
55
8
Capital Assets...............................................................................................................................
56
9
Pension Plans................................................................................................................................
58
10
Risk Management.........................................................................................................................
64
11
Long -Term Liabilities...................................................................................................................
65
12
Interfund Transactions..................................................................................................................
68
13
Contractural Obligations, Contingencies, and Litigation..............................................................
69
14
Joint Ventures...............................................................................................................................
69
15
Prior Period Adjustments and Change in Accounting for Pensions ....................................
73
16
Leases................................................................................................................
74
17
Self-Insurance...............................................................................................................................
74
18
Accounting and Reporting Changes.............................................................................................
74
19
Subsequent Event..........................................................................................................................
74
Citv of Federal Wav / 42
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Year Ended December 31, 2015
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Federal Way have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted
standard setting body for establishing governmental accounting and financial reporting principles. The significant accounting
policies are described below.
190401'AI6►112DQ100I'1
The City of Federal Way was incorporated in February 28, 1990. Federal Way is a non -charter code city, operating under
Section 35A.03 of the Revised Code of Washington. It has a Mayor/Council form of government. The Council is composed of
seven councilmembers elected to four-year terms on a non -partisan ballot and are elected at -large. Members of the City
Council are responsible for establishing the general direction and policies for the City and for providing the resources
necessary to carry out those policies. As the City's chief administrator, the City Mayor is responsible for carrying out the
policy and direction set by the City Council. This includes the enforcement of laws and ordinances, the execution of contracts
and agreements, and maintenance of peace and order in the City. The City of Federal Way provides a full range of municipal
services, including policing, planning and zoning, street maintenance and construction, parks and recreation, and general
administrative services. The City operates enterprise funds for Storm Water Management and Dumas Bay Centre.
The City's Comprehensive Annual Financial Report (CAFR) includes the funds, 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 dependent on the City's
obligation to redeem the organization's debts, to finance the organization's deficits, and the extent to which subsidies from the
City constitute a major portion of the organization's total resources. Applying these criteria, as outlined in GASB Statement
14, the City has no relationships that qualify as component units.
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 its 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.
Joint Ventures
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 two joint ventures: Valley Communications
Center and South Correctional Entity (SCORE). See Note 14, Joint Venture, which more fully describes these organizations.
BASIS OF PRESENTATION - GOVERNMENTAL -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e. the statement of net position and the statement of activities) report information
on all activities of the primary government. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Our policy is to
allocate indirect costs to specific functions or segments. Program revenues include 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements, or a particular function or segment. Taxes
and other items not properly included among program revenues are reported instead as general revenues.
As a general rule the effect of the interfund activity has been eliminated for the government -wide financial statements.
Separate fund financial statements are provided for governmental funds, and proprietary funds. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
Citv ofFederal Wav / 43
The City reports the following major governmental funds:
General Fund — This is the City's general operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
Street Fund — This fund accounts for the receipt and disbursement of State -levied motor vehicle fuel taxes which
must be accounted for in a separate fund and expended for street -oriented engineering, maintenance and operations.
Utility Tax Fund — This fund was established to account for all utility tax receipts. These receipts will subsequently
be distributed to various funds to provide for debt service, capital projects, maintenance and operations expenditures,
etc. as determined by the City Council.
Debt Service Fund — This fund accounts for the accumulation of resources for the payment of general obligation and
assessment bond principal, interest and related costs.
Downtown Redevelopment CIP Fund — This fund was established to accumulate resources to set aside for downtown
proj ects.
Transportation CIP Fund — This fund accounts for receipts and disbursements related to acquisition, design,
construction and any other related street project expenditures.
Performing Arts & Event Center Fund — This fund was established to accumulate resources to set aside for
Performing Arts and Event Center (PAEC).
The City reports the following fund groups as non -major funds:
Special Revenue Funds — These funds are to be used to account for the proceeds of revenues and sources (other than
special assessments, expendable trust or major capital projects) that are committed or legally restricted to
expenditures for specified purposes.
Capital Project Funds — These funds account for the acquisition or construction of major capital facilities with the
exception of those facilities financed by the proprietary fund. The major sources of revenues for these funds are
general obligation bond proceeds, grants from other agencies, local taxes, contributions from other funds, utility tax,
and real estate excise tax.
The City reports the following major enterprise funds:
Surface Water Management Fund — This fund was established to administer and account for all receipts and
expenditures related to the City's surface and storm water management system.
Dumas Bay Centre Fund — This fund was established to account for revenues and expenses related to the acquisition,
capital improvements maintenance and operations of the City -owned Dumas Bay Centre and Knutzen Family
Theatre. The Dumas Bay Centre is primarily used for meetings, events, lodging, and catering services.
Additionally, the City reports following internal service funds:
Risk Management Fund — This fund accounts for the City's risk financing activities established to minimize adverse
effects of losses associated with property and casualty, and worker's compensation claims. Both risk control (to
minimize the losses that strike an organization) and risk financing (to obtain finances to provide for or restore the
economic damages of those losses) are involved. The City is also currently recovering costs and building reserves
for general liability including property, casualty, errors and omissions and fidelity coverage.
Information Systems Fund — This fund was established to account for all costs associated with data processing,
telecommunications and the Geographical Information System (GIS). This fund owns and depreciates all non-
proprietary fund assets related to these functions, and charges equipment/software users for both maintenance and
operating costs and equipment replacement charges based on depreciation schedules.
Mail & Duplication Fund — This fund accounts for duplication, graphics and other general support services provided
to departments and funds throughout the City.
City of Federal Way / 44
Fleet and Equipment Fund — This 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.
Buildings and Furnishings Fund — This fund accounts for all costs associated with the operation and maintenance of
specified City buildings. City building facilities and furnishings owned by this Fund. Both maintenance/operating
costs and depreciation recovery are charged to City departments and funds.
Health Insurance Fund — The City is currently self -insuring for medical insurance. The premiums paid by the City
and employees are deposited into this fund. Medical service for medical coverage and pharmaceutical reimbursement
are paid out of this fund. Also, establish reserves for the payment of estimated future claims.
Unemployment Insurance Fund - The City is currently self -insuring 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.
Internal Service Funds account for goods and services provided to other departments or agencies of City of Federal Way, or to
other governments, on a cost -reimbursement basis.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING
Government -Wide and Governmental Funds
The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis
of accounting, similar to the proprietary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City of Federal Way considers revenues to be available if they are collected within 30
days of the end of the current fiscal period. The City considers property tax as available if they are collected within 60 days
after year end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only
when payment is due.
Property taxes, licenses, and interest associated within the current period are all considered to be susceptible to accrual and
have been recognized as revenues of the current fiscal period. Only the portion of property tax receivable due within the
current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the City.
Major revenues recorded on the modified accrual basis are:
Property Taxes - King County acts as the City's collection agent for these taxes. Upon receipt, 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 Accounting and Financial Reporting
Standards, revenues for cost reimbursement grants are determined to be earned and, therefore, available at the time related
expenditures are incurred. For this reason, grant revenues to be received as reimbursement for expenditures incurred in the
current year are also recognized as revenue in that year.
Citv ofFederal Wav / 45
Shared Revenues - Revenues that have been collected by the State, 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; inter -fund, 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.
Proprietary Funds
The proprietary fund statements are reported using the economic resources measurement focus and full -accrual basis of
accounting. Revenues are recorded when earned and expenses are recorded when liability is incurred regardless of the timing
of the cash flows.
Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the City are primarily user charges, the cost of providing goods or
services to the general public on a continuing basis. Operating expenses for enterprise and internal service funds includes the
cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as non -operating revenues and expenses.
BUDGETARY INFORMATION
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 debts service and capital project funds are adopted at the level of the individual debt issue
or project and for fiscal periods that correspond to the lives of debt issues or projects.
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 re -appropriation 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 biennial operating budget (funds budgeted on an
annual basis) are:
General Fund Special Revenue Funds Debt Service Fund Capital Project Funds
- Street Fund - Debt Fund -Downtown Redevelopment
- Arterial Street -City Facilities
- Utility Tax -Parks
- Solid Waste & Recycling -Transportation
- Special Contracts /Studies -Capital Project Reserve
- Hotel/Motel Lodging Tax -Performing Arts & Event Center
- Federal Way Community Center -Real Estate Excise Tax
- Traffic Safety
- Community Development Block Grant
-Paths & Trails
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at
year end are reported as reservation of fund balances and do not constitute expenditure or liabilities because the commitments
will be reappropriated and honored during the subsequent year.
City of Federal Way / 46
Procedures for Adopting the Biennial Budget
The City's budget process and the time limits under which the budget must be prepared are defined by the Revised Code of
Washington (RCW) 35A.33. The procedures followed in establishing the annual budget are described below:
By late May the official budget call is made by the Finance Director for current level service budgets and a preliminary
financial forecast.
By late June, departments submit their preliminary expenditure estimates and the Finance department updates the
preliminary revenue estimates to define resources available to finance coming year expenditure programs.
By the first Tuesday in October, the Mayor submits a proposed budget to the City Council. This budget is based on
priorities established by the Council and estimates provided by City departments during the preceding months, and
balanced with revenue estimates made by the Finance Director. Copies of the preliminary budget are provided to the City
Council and made available to staff and the public.
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.
No later than the first two weeks of November, the City Clerk publishes a notice of the filing of the preliminary budget
and notices of public hearings to be held during preliminary budget deliberations.
Two public hearings on the proposed budget are also held during November and December. Final hearings on the budget
must begin on or before the first Monday of December, and may continue until the 25th day prior to beginning of the next
fiscal year.
By December 31, the City Council makes its adjustments to the proposed budget and adopts a final budget by ordinance.
The final operating budget, as adopted, is published and distributed within the first three months of the following year.
Copies of the adopted budget are made available to the public.
Amending the Budget
The Mayor is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter
the total expenditures of a fund or that affect the number of authorized employee positions, salary ranges, hours, or other
conditions of employment 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 one or more than the majority after holding public hearing(s).
The budget amounts shown in the financial statements are the final authorized amounts as revised during the year.
The financial statements contain the original and final budget information. The original budget is the first complete
appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental
appropriations, and other legally authorized changes applicable for the fiscal year.
Citv ofFederal Wav / 47
ASSETS, LIABILITIES, FUND BALANCE, NET POSITION
Cash and Investments
The City follows the practice of pooling cash and investments of all funds for investment purposes, except for cash held in
escrow, which is 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.
It is the City's policy to invest all cash not immediately required for disbursement. At December 31, 2015, the State Treasurer
was holding $63,140,025 in the Local Government Investment Pool. The amount is classified on the balance sheet as cash and
cash equivalents in various funds. The interest on these investments is prorated to the various funds based on the average
monthly balance for each fund.
The amounts reported as cash and cash equivalents also include compensating balances maintained with certain banks in lieu
of payments for services rendered. The average compensating balances maintained during the 2015 were approximately $12
million.
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, 2015, the total cash and cash equivalents were $75,813,961.
Investments See (Note 5 - Deposits and Investments).
Receivables
Taxes receivable consists of property taxes and related interest and penalties (see Note 6 - Property Tax). Accrued interest
receivable consists of amounts earned on investments, notes, and contracts at the end of the year.
Customer accounts receivable consist of amounts owed from private individuals or organizations for goods and services
including amounts owed for which billing have not been prepared. Notes and contracts receivable consist of amounts owed on
open account from private individuals or organizations for goods and services rendered.
Amounts Due to and from Other Funds; Interfund Loans
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year
are referred to as either interfund loans receivable/payable or advances to/from other funds. All other outstanding balances
between funds are reported as due to/from other funds. Any other outstanding balances between the governmental activities
and business -type activities are reported in the government -wide financial statements as internal balances. A separate
schedule of inter -fund loans receivable and payable is furnished in Note 12, Interfund Transactions.
Inventories and Prepaids
Inventories in the governmental funds are recorded as expendable supplies held for consumption. The cost is recorded as
expenditure at the time individual inventory items are purchased. 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. The City currently uses the consumption method of accounting for prepaids.
Capital Assets — See Note 8, Capital Assets.
Capital assets, which include property, plant, equipment, and infrastructure (e.g., roads, bridges, sidewalks, and similar items),
are reported in the applicable governmental or business -type activities columns in the government -wide financial statements.
Capital assets are defined by the City of Federal Way as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of one or more years. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.
Cost for additions or improvements to capital assets are capitalized when they increase the effectiveness or efficiency of the
asset.
Cost of normal maintenance and repairs are not capitalized.
Citv of Federal Wav / 48
Depreciation on all capital assets is recorded as an allocated expense in the government -wide Statement of Activities and in
the proprietary fund statements. Property, plant, and equipment of the primary government are depreciated using the straight
line method over the following estimated useful lives:
Asset Class
Life in Years
Computers.................................................................5-6
Printers &Faxes.............................................................7
Telecommunications Equipment........................................7
Police Radio Equipment.................................................11
Other Office Equipment ..................................
............ 4-10
Office Furniture and Fixtures...........................................10
Recreation Equipment .................
Parks Equipment .......................
Police Equipment .......................
Shop/Miscellaneous Equipment...
Heavy Work Equipment ..............
Non -Police Vehicles ...................
Police Patrol Vehicles .................
Police Non -Patrol Vehicles...........
Heavy Trucks ...........................
Land Improvements ...................
..................................10
................... ............. 6-10
................................9-11
..............................10-12
...............................10-16
.....................................7
.....................................5
................... ............. 7-10
.................... ............ 8-10
...................................20
Buildings.....................................................................20
Infrastructure ............................................... .......... 15-100
Deferred Inflows of Resources See (Note 6 — Property Tax) and (Note 9 — Pension Plans)
Compensated Absences Payable
The City records a liability for all outstanding vacation pay and accrued compensatory time. In governmental funds, vacation
pay and compensatory time is recorded as expenditures when paid which occurs when used or upon termination. In the entity -
wide statements and the proprietary fund statements, vacation pay and compensatory time is recorded as a liability and
expense in the year earned.
Employee vacation leave is accumulated monthly at rates ranging from 12 to 22.5 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 360 hours. Outstanding vacation leave is payable upon termination of employment at the
following rate: City Employees up to 240 hours and Police Guild members will be paid out up to two years of their monthly
vacation accrual rate.
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 for both City employees and
Police Guild members.
Sick leave may be accumulated up to a maximum of 720 hours for regular City employees per City policy and 1,040 hours for
the Police Guild, per their contract. 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. Compensated Absences Payable
outstanding at year-end is outlined in Note 11.
Pensions - See (Note 9 — Pension Plans).
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of all state sponsored pension plans and additions
to/deductions from those plans' fiduciary net position have been determined on the same basis as they are reported by the
Washington State Department of Retirement Systems. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
Citv ofFederal Wav / 49
Long -Term Liabilities See Note 11, Long -Term Debt
In the government -wide financial statements and the proprietary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund
statement of net position.
Unearned Revenues See (Note 7 — Unearned Revenues and Receivables).
Fund Balance Classification
Fund balance is a measurement of available financial resources and is the difference between total assets and total liabilities in
each fund.
Beginning with the most restrictive constraints, fund balance amounts will be reported in the following categories:
Nonspendable — amounts that are not in a spendable form or are legally or contractually required to be maintained
intact.
Restricted — amounts that can be spent only for the specific purposes stipulated by external parties either
constitutionally or through enabling legislation.
Committed — amounts that can be used only for the specific purposes determined by formal action of the City Council
through an ordinance or resolution. Commitments may be changed or lifted by the action of the City Council using
the same formal action of ordinance or resolution that was used to create the commitment.
Assigned — amounts intended to be used by the government for specific purposes. Intent can be expressed by the City
Council or the Mayor. In governmental funds other than the general fund, assigned fund balance represents the
amount that is not restricted or committed. This indicates that resources in other government funds, at a minimum,
are intended to be used for the purpose of that fund.
Unassigned — includes all amounts not contained in other classifications and is the residual classification of the
general fund only. Unassigned amounts are available for any legal purpose.
When multiple categories of fund balance are available for expenditure, the City will start with the most restricted category
and spend those funds first before moving down to the next category with available funds. The minimum fund balance
established by the Reserve Policy, and passed by resolution from the City Council, states "The City shall have an operating
cash flow reserve of seventeen percent of the City's General Fund operating expenditures or $9 million. In addition, the City
shall have a contingency for unanticipated cost of $1 million to cover revenue shortfalls resulting from unexpected economic
change or recessionary periods, or to provide funds in the event of major unplanned expenditures the City could face as a
result of natural disasters. The policy shall also include a strategic opportunities reserve of $2 million to provide liquidity to
respond to economic opportunity that is not budgeted for that may provide a long term economic benefit to the City. In the
event that any of the Contingency or Strategic Opportunities Reserve is used, such appropriation shall be repaid to the fund
annually over the next three years. The purpose of the ending fund balance is to provide financial stability, cash flow for
operations and the assurance that the City will be able to respond to revenue shortfalls with fiscal strength." General fund
expenditures at 12/31/2015 were $41.3 million and Unassigned General fund balance at year -ended 2015 was $14.4 million or
(35%).
Other funds that have a significant minimum fund balance policy are: Street Fund - $0.5 million; Arterial Street Fund - $0.1
million; Utility Tax Fund - $2.5 million, REET Fund — one year revenue reserve; Hotel/Motel Lodging Tax Fund - $0.2
million; Community Center Fund - $1.5 million; Traffic Safety Fund - $1.5 million; Debt Service Fund — adequate reserve in
accordance with bond ordinance or minimum of one year debt service amount; Dumas Bay Centre Fund - $0.5 million; and
Surface Water Management Fund — $0.5 million.
The Government -wide statement of net position reports $555.3 million of net position, of which $20.2 million is restricted by
the enabling legislation.
Citv of Federal Wav / 50
2015 FUND BALANCE CLASSIFICATION
Fund Balance
General
Fund
Utility Debt DowPerformingntown Transport-
Street Arts & Emnt
Tax Service RedevERedevelop.anon
Ctr
Nonmajor
Govt
Total
Nonspendabie:
Court trust $
105,088
$ $ $ $ $ $
$
$ 105,088
Prepaid insurance/debt service
31,718
31,718
Restricted for:
Police covert/seizure
71,106
71,106
Future debt payments
-
1,471,579
1,471,579
Special Contracts/Studies
-
458,355
458,355
Hotel/Motel Lodging Tax
501,765
501,765
Path & Trails Reserves
384,361
384,361
Downtown Redevelopment
1,107,229
-
1,107,229
City Facilities CIP
-
53,232
53,232
Parks CIP
2,997,772
2,997,772
Transportation CIP
5,621,688 -
-
5,621,688
Perforning Arts & Event Ctr
- 3,694,251
-
3,694,251
Real Estate Excise Tax
-
3,695,070
3,695,070
Committed to:
Capital, debt, and operations
-
4,120,012
-
4,120,012
Petty cash/advance travel
21,600
-
-
21,600
Comm. Development Block Grant
-
-
40,442
40,442
Proposition 1
719,485
-
719,485
Transportation CIP
- - 2,386,919
2,386,919
Downtown Redevelopment
3,789 -
3,789
Arterial Street
-
298,387
298,387
Solid Waste/Recycling
-
208,857
208,857
2% for the Arts
293
-
293
Federal Way Cornonnity Center
-
1,500,001
1,500,001
Traffic Safety
3,614,116
3,614,116
Snow/ice removal
500,000
-
500,000
Parks CIP
-
318,508
318,508
Performing Arts & Event Ctr
12,621
2,923,525
-
2,936,146
Capital Project Reserve
-
-
480,840
480,840
Unassigned.
General Fund
14,362,533
- -
-
14,362,533
Total Fund Balance: $14,604,958
$ 500,000 $ 4,839,497 $1,471,579 $1,111,018 $ 8,008,607 $ 6,617,776
$14,551,706
$ 51,705,141
Interfund Transactions
There are four types of transactions between funds - inter -fund loans, inter -fund services provided and used, inter -fund
reimbursements, and inter -fund 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. Interfund services provided and used
are equivalent to buying goods or services from an outside vendor, and 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. The transfers are accounted for as 'other financing sources
and uses" and are therefore included in the operating statements (see Note 12).
Citv ofFederal Wav / 51
NOTE 2 — RECONCILIATION OF GOVERNMENT -WIDE & FUND FINANCIAL STATEMENTS
Explanation of Certain Differences between the Governmental Funds Balance Sheet and the Government -Wide
Statement of Net Position
The governmental funds' balance sheet includes reconciliation between fund balance — total governmental funds and net
position — governmental activities as reported in the government -wide statement of net position. One element of the
reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period, and,
therefore, are not reported in the funds." The details of this $46,314,266 difference are as follows:
Bonds Payable & Premium at beginning of year
$ 35,100,536
Plus: Inclusion of compensated absences
1,914,554
Plus: Current year addition/reduction of principal portion of debt & premium
(1,076,316)
Plus: Net Pension Liability
9,580,886
Plus: Deferred Inflows of Resources Related to Pensions
2,939,368
Less: Deferred Outflows of Resources Related to Pensions
(2,144,762)
Net Adjustment to reduce fund balances -total governmental
funds to arrive at netposition -governmental activities
$46,314,266
Explanation of Certain Differences between the Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balances and the Government -Wide Statement of Activities
The governmental funds' statement of revenues, expenditure, and changes in fund balances includes reconciliation between
net changes in fund balances — total governmental funds and changes in net position of governmental activities as reported in
the government -wide statement of activities. One element of that reconciliation explains that "Governmental funds report
capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense." The details of this $3,301,155 difference are as follows:
Capital outlay
$10,237,386
Plus: Contributed Capital
$ 1,111,024
Less: Loss on Capital
$ (762,562)
Less: Governmental depreciation expense
(7,349,114)
Plus: Increase investment in joint venture
64,421
Net adjustment to increase net changes in fund balances -
Total governmental funds to arrive at changes in net position
ofgovernmental activities
$ 3,301,155
Another element of the reconciliation states that "Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds." This item presents:
Property taxes earned reported as deferred inflow of resources in the fund statements $ (33,875)
Another element of the reconciliation states that "Some expenses reported in the statement of activities do not require the use
of current financial resources and, therefore, are not reported as expenditures in the funds." This item represents:
Compensated absences $ (73,900)
Adjustment for GASB 68 pension reporting $ 714,312
NOTE 3 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
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.
Citv of Federal Wav / 52
NOTE 4 — SUPPLEMENTAL APPROPRIATIONS
Operating Budget Funds
Appropriations established during 2015 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. Both original and final budget
appropriations are shown on the accompanying financial statements. The final budget values include all adopted adjustments
to original budget amounts.
FUND
ORIGINAL
BUDGET
2015
SUPPLEMENTAL
APPROPRIATIONS
FINAL BUDGET'
General Fund $
40,306,733 $
1,177,092 $
41,483,825
Special Revenue Funds:
Street Fund
4,065,337
241,550
4,306,887
Arterial Street Fund
1,515,500
208,705
1,724,205
Utility Tax Fund
2,841,965
61,462
2,903,427
Solid Waste/Recycling Fund
470,101
30,930
501,031
Special Contracts / Studies
-
81,850
81,850
Hotel/Motel Lodging Tax
200,300
154,996
355,296
Federal Way Community Center
2,288,724
83,500
2,372,224
Traffic Safety
2,123,644
-
2,123,644
Community Development Block Gant
1,237,072
-
1,237,072
Paths & Trails
-
-
-
Subtotal Special Revenue Funds:
14,742,643
862,993
15,605,636
Debt Service Fund
1,039,573
-
1,039,573
Capital Project Funds:
Real Estate Excise Tax
-
-
-
Downtown Redevelopment
227,348
227,348
City Facilities
-
154,462
154,462
Parks
1,000,000
3,555,405
4,555,405
Transportation
8,470,000
9,093,439
17,563,439
Capital Project Reserve
-
-
-
Perfonning Arts & Event Center
8,340,000
(5,447,665)
2,892,335
Subtotal Capital Project Funds:
17,810,000
7,582,989
25,392,989
Total: $
73,898,949 $
9,623,074 $
83,522,023
NOTE 5 — DEPOSITS AND INVESTMENTS
As required by state law, all deposits and investments of the City's funds are obligations of the U.S. Government, the Local
Government Investment Pool, bankers' acceptances, or deposits with Washington State banks and savings and loan
institutions. In 2015 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.
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, 2015, the equity in pooled cash and
investments was $75,813,961.
At year-end, the City had $75,612,877 in cash and cash equivalents which consisted of investments with the Local (LGIP)
Government Investment Pool of $63,140,025 the City's checking account bank balance prior to outstanding checks was
$12,318,903; and petty cash and change funds, advance travel fund and investigative fund totaling $48,860, and Court Trustee
Fund of $105,088. Cash held with an escrow agent is $201,084. No deposits were uninsured or uncollateralized. Insurance
Citv ofFederal Wav / 53
coverage up to $250,000 is through federal depository insurance and the Washington Public Deposit Protection Commission
(WPDPC) covers amounts over $250,000. 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. Investments are carried at cost
or book value because the City holds all investments until maturity. The fair value of the positions in the State Investment
Pool is the same as the value of the pool shares.
The State Treasurer's Office administers the Washington State Local Government Investment Pool authorized under Chapter
43.250 RCW. The LGIP operates in a manner consistent with the SEC Rule 2a-7. In its management of LGIP, the State
Treasurer adheres to the principles appropriate for the prudent investment of public funds. In priority order, they are the safety
of principal, the assurance of sufficient liquidity to meet cash flow demands.
As of December 31, 2015 the City had the following investments and maturities:
SCB DULEOFINVESTMENTS BYMATLRrrIE5
AS OF DECEMBER 31, 2015
Investment maturities
Less than 1 to 2 Greater than
Inwstment Type Book Value 1 year years 3 years
State Investment Pool $ 63,140,025 $ 63,140,025 $ $
$ 63,140,025 $ 63,140,025 $ $
Reconciliation of Government -Wide Statement of Net Position
Key Bank checking account per books
$ 12,318,903
Petty cash/change fund/advance travel/investigative fund
48,860
Local Government Investment Pool
63,140,025
Municipal Court Trust on books
105,088
Subtotal cash and cash equivalents
75,612,877
Cash with escrow agent
201,084
Total cash and investments, Government -Wide
Statement of Net Position
$ 75,813,961
Investments
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy states
that "no more than 20% of the portfolio may be invested beyond 12 months, and average maturity of the portfolio may not
exceed 2 years."
Credit Risk
Credit risk is the risk that an issuer or other counter -party has to an investment in not fulfilling its obligations. This is
measured by the assignment of a rating by a nationally recognized statistical rating organization.
State law and the City's investment policy limits the instruments in which the City may invest. The following are categories
of investments authorized under the City's policy, in general order of safety and liquidity: Local Government Investment Pool
(LGIP); repurchase agreements; U.S. treasury obligations; U.S. government agencies; U.S. government -sponsored
corporations/instrumentalities; bankers' acceptances (secondary market domestic and foreign); commercial paper (secondary
market); insured certificates of deposit (banks and savings & loans); and uninsured/collateralized certificates of deposit (banks
and savings & loans).
The credit risk of the State Investment Pool is limited to obligations of the US Government, government sponsored
enterprises, or insured demand deposit accounts and certificates of deposit.
As of December 31, 2015, all City investments were in the LGIP. The LGIP is unrated. LGIP is comparable to Securities
Exchange Commission 2a-7 to minimize credit risk.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City
diversifies its investments by security type and institution. The investment policy states: "no more than 5% of the portfolio
may be invested in the securities of a single issuer, except for the U.S. Treasury, to which no limits apply, and commercial
Citv of Federal Wav / 54
paper, which is limited to 3% of the portfolio in accordance with state law. No more than 30% of the portfolio may be
invested in bankers' acceptances and certificates of deposit."
Other Information
Below is a schedule of investments by fund type:
S CHEDULE OF PWES TMENTS BY FUND CATEGORY AND INVES TMENT TYPE
AS OF DECEMBE R 31, 2015
State Inwstment
Fund Type
Pool
Total
General Fund
$ 12,369,660 $
12,369,660
Other Major Funds
18,033,626
18,033,626
Special Revenue Funds
6,202,923
6,202,923
Capital Projects Funds
5,851,284
5,851,284
Enterprise Funds
6,392,543
6,392,543
Internal Services Funds
14,289,990
14,289,990
Total: $ 63,140,025 $
63,140,025
NOTE 6 — 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.
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.
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, 2015, the total balance of property
taxes receivable recorded by the City was $215,785. Of this, $197,042 is recorded as deferred inflow of resources, since it was
not collected within the first 30 days of the end of 2015.
Property taxes are recorded as a receivable when levied, offset by deferred inflow of resources. 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 ($0.50).
Chapter 84.55 of the State RCW was amended most recently by Initiative No. 747 (which was passed by voters on
November 6, 2001), limits the total dollar amount of regular property taxes levied by the City to the amount of such
taxes levied in the three most recent years multiplied by a limit factor, plus an adjustment to account for taxes on new
construction, improvements and state -assessed property at the previous year's rate. As amended by Initiative No.
747, the limit factor is the lesser of 101% or 100% plus the percent change in the Implicit Price Deflator, unless a
greater amount is approved by a simple majority of the voters; and
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 2015 was $1.24751 per $1,000 on an assessed valuation of $8,319,059,211 for a total regular levy
of $10,378,185.
Citv ofFederal Wav / SS
Deferred Inflow of Resources
The table below provides details of the deferred inflow of resources as reported on the fund financial statements.
DEFERRED INFLOW OF RESOURCES
AS OF DECEMBER 31, 2015
Total
Downtown General
Deferred Inflow
General Redev. Gout
Property tax
$ 197,034 $ 8 $ 197,042
Total by Fund:
1 $ 197,034 $ 8 $ 197,042
NOTE 7 - UNEARNED REVENUES AND RECEIVABLES
Unearned Revenues
The table below provides details of the unearned revenues as reported on the statement of net position.
UNEARNED REVENUES
AS OF DECEMIBER 31, 2015
Total
Surface Dumas
Nonmajor General
Water Bay
Total
UnearnedRevenues
General Street Gov't Govt
Mgmt Centre
Proprietary
SWM fees
- - - -
94,929
94,929
Commute Trip Reduction Grant
- 72,904 - 72,904
-
-
Recreation programs / facility
56,248 - 144,266 200,514
- 273,524
273,524
rentals
Total by Fund:
$ 56,248 $ 72,904 $ 144,266 $ 273,418
$ 94,929 $ 273,524
$ 368,453
Receivables & Due from Other Governments
The receivables for the fiscal year ended December 31, 2015 on the government -wide statement of net position are detailed in
the following schedule.
RECEIVABLES & DUE FROM OTHER GOVERNMENTS AS OF DECE MER 31, 2015
Receivable
General
Street
Utility Tax
Downtown
Redevelopment
Transport-
ation
Nonmajor
Gov't
Proprietary
Total
Property tax
$ 215,785
$
$
$
$
$ -
$ -
$ 215,785
Real Estate Excise tax
-
328,045
-
328,045
Utility tax
-
1,013,680
295,657
-
1,309,336
Gambling tax
17,050
-
-
-
17,050
Recreation programs/
facilities
53,640
-
66,335
33,871
153,846
Grants & contributions
154,910
7,524
-
1,115,914
182,996
17,108
1,478,452
Otherreceivable
244,624
-
-
-
111,238
38,715
-
394,577
State Shared revenue
1,485,687
84,000
1,878
121,284
99,644
56,969
-
1,849,463
Surface Water
Mana ement fees
-
-
115,033
115,033
Total by Fund
$ 2,171,696
$ 91,524
$ 1,015,558
$ 121,284
$1,326,795
$ 968,716
$ 166,012
$5,861,586
Citv of Federal Wav / 56
NOTE 8 — CAPITAL ASSETS
Capital assets activity for the year ended December 31, 2015 is as follows:
CAPITAL AS S ETS
AS
OF DECE IBER 31, 2015
Adjusted Beginning
Ending Balance
Governmental Activity
Balance
1 /1 /201.5
Additions
Deletions
12/31/2015
Capital Assets, not being depreciated:
Land
$276,791,219
$2,561,002
$ -
$279,352,222
Construction in progress
18,891,577
8,050,633
(11,244,979)
15,697,231
Total capital assets, not being depreciated:
$295,682,796
$10,611,635
($11,244,979)
$295,049,453
Capital assets, being depreciated:
Buildings
39,260,699
489,949
(1,485)
39,749,163
Improvements other than buildings
22,156,464
2,935,287
-
25,091,751
Infrastructure
163,041,976
8,556,517
(1,782,314)
169,816,179
Machinery & equipment
16,136,988
2,533,851
(607,258)
18,063,581
Total capital assets, being depreciated:
240,596,127
14,515,604
(2,391,057)
252,720,674
Less accumulated depreciation for:
Buildings
(14,909,209)
(1,940,048)
1,485
(16,847,772)
Improvements other than buildings
(14,767,765)
(1,045,246)
-
(15,813,011)
Infrastructure
(54,732,198)
(5,190,816)
1,019,752
(58,903,262)
Machinery & equipment
(11,322,189)
(1,318,006)
607,258
(12,032,937)
Total accumulated depreciation:
(95,731,361)
(9,494,116)
1,628,495
(103,596,982)
Total assets being depreciated, net
144,864,766
5,021,488
(762,562)
149,123,692
Governmental activities capital assets, net
$440,547,563
$15,633,123
($12,007,541)
$444,173,145
Adjusted Beginning
Ending Balance
Business -Type Activities
Balance
Additions
Deletions
2/31/2015
12/3
1/1/2015
Capital Assets, not being depreciated:
Land
$10,933,528
$80,000
$ -
$11,013,528
Construction in progress
4,743,083
99,179
(1,731,076)
3,111,186
Total capital assets, not being depreciated:
15,676,611
179,179
(1,731,076)
14,124,714
Capital assets, being depreciated:
Buildings
3,600,864
-
-
3,600,864
Improvements other than buildings
2,516,780
314,901
-
2,831,681
Infrastructure
55,181,979
1,665,024
-
56,847,003
Machinery & equipment
122,200
-
-
122,200
Total capital assets, being depreciated:
61,421,822
1,979,925
-
63,401,747
Less accumulated depreciation for:
Buildings
(3,130,808)
(150,742)
-
(3,281,550)
Improvements other than buildings
(188,079)
(25,168)
-
(213,247)
Infrastructure
(13,993,025)
(551,818)
-
(14,544,843)
Machinery & equipment
(99,825)
(4,340)
-
(104,165)
Total accumulated depreciation:
(17,411,737)
(732,068)
-
(18,143,805)
Total assets being depreciated, net
44,010,085
1,247,857
-
45,257,942
Business -Type activities capital assets, net
$59,686,696
$1,427,036
($1,731,076)
$59,382,656
Citv ofFederal Wav / 57
At the end of 2015, 18 projects comprise the Construction in Progress for Governmental Activities. Upon completion, the
projects will be capitalized in the Government -wide statements in their appropriate categories. Construction commitments for
Governmental Activities as of December 31, 2015, are as follows:
AS OF DECEMBER 31, 2015
Governmental Activities Projects Construction Remaining
in progress Commitment
Performing Arts & Event Center
Downtown Park
Trail and pedestrian access improvements
S 320th St @ 20th Ave South
loth Avenue SW / SW 344th St: SW Campus Drive - 21st Ave SW
1st Ave South & South 28th Intersection
S 352nd Street Extension From SR-99 to SR-161
S 304th St @ 28th Ave S
South 356th St: SR99 - SR161
SR99 HOV Lanes Phase 5
SW 336th Way / SW 340th St: 26th PI SW - Hoyt Rd
S 314th St: 20th Ave S - 23rd Ave S - Install New Sidewalks
Citywide Pedestrian Crossing Improvements
S 344th Way @ Weyerhaeuser Way S
21st Ave S Sidewalks
Sacajawea Safe Routes to Schools
20th Ave S & S 316th Ave Sidwalks Improvements in front of Town Square Par
Citywide Flashing Yellow Retrofits Project
$ 5,809,470
$ 26,940,530
1,006,555
1,039,769
265,914
1,071,324
2,394,351
612,542
265,170
53,361
963,607
635,167
588,128
4,958,306
679,784
507,594
399,506
416,779
2,386,903
17,439,485
52,312
212,694
163,480
11,520
136,958
202,868
281,685
-
103,202
368,647
75,341
300,000
8,954
385,558
115,907
814,193
iotai governmental acnvities 3 ito,oy 1,cz i 1i t0t0,y /U'i i i
Depreciation expense was charged to functions/programs of the primary government as follows:
CAPITAL ASSETS DEPRECIATION BY TYPE
AS OF DECEMBER 31, 2015
Governmental and Internal Service Activities
General Government
$201,004
Security of Persons & Property
1,240,833
Transportation
5,462,485
Physical Environment
18,296
Economic Environment
113,142
Health
40,689
Culture & Recreation
2,417,666
Total Depreciation - Governmental Activities
$ 9,494,114
Business -Type Activities
Utilities - Surface Water Management
Culture & Recreation - Dumas Bay Centre
$577,978
154,092
Total Depreciation - Business -Type Activities
$ 732,070
Citv of Federal Wav / 58
NOTE 9 — PENSION PLANS
The following table represents the aggregate pension amounts for all plans subject to the requirements of the GASB Statement
68, Accounting and Financial Reporting for Pensions for the year 2015:
Aggregate Pension Amounts — All Plans
Pension liabilities
$10,911,324
Pension assets
$4,397,412
Deferred outflows of resources
$2,341,783
Deferred inflows of resources
$3,144,499
Pension expense/expenditures
$280,522
State Sponsored Pension Plans
Substantially all City of Federal Way full-time and qualifying part-time employees participate in one of the following
statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost -sharing,
multiple -employer public employee defined benefit and defined contribution retirement plans. The state Legislature
establishes, and amends, laws pertaining to the creation and administration of all public 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 by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380
Olympia, WA 98540-8380
Or
downloaded from the DRS website at www.drs.wa.gov.
Public Employees' Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts;
employees of the legislature; employees of district and municipal courts; employees of local governments; and higher
education employees not participating in higher education retirement programs. PERS is comprised of three separate pension
plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with
a defined contribution component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member's average final compensation (AFC) times the member's years of service. The AFC is the average of the member's
24 highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years
of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from
active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to
reflect the choice of a survivor benefit. Other benefits include duty and non -duty disability payments, an optional cost -of -
living adjustment (COLA), and a one-time duty -related death benefit, if found eligible by the Department of Labor and
Industries. PERS 1 members were vested after the completion of five years of eligible service. The plan was closed to new
entrants on September 30, 1977.
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate is
developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18
percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1
required contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows:
PERS Plan 1
Actual Contribution Rates:
Employer
Employee*
January through June 2015
9.21%
6.00%
July through December 2015
11.18%
6.00%
* For employees participating in Judicial Benefit Multiplier (JBM), the contribution rate was 12.26%
The City of Federal Way's actual contributions to the plan were $0 for the year ended December 31, 2015 because we have no
contributions for PERS 1 employees.
Citv ofFederal Wav / 59
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member's average final compensation (AFC) times the member's years of service for Plan 2 and 1 percent of AFC for Plan 3.
The AFC is the average of the member's 60 highest -paid consecutive service months. There is no cap on years of service
credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before
age 65 is considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years
of age or older, are eligible for early retirement with a benefit that is reduced by a factor that varies according to age for each
year before age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55 years old can
retire under one of two provisions:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return -to -work rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent
for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30
years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor
benefit. Other PERS Plan 2/3 benefits include duty and non -duty disability payments, a cost -of -living allowance (based on the
CPI), capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor
and Industries. PERS 2 members are vested after completing five years of eligible service. Plan 3 members are vested in the
defined benefit portion of their plan after ten years of service; or after five years of service if 12 months of that service are
earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those
contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change
rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5
percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution
benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan 1
UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council
adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required
contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows:
PERS Plan 2/3
Actual Contribution Rates:
Employer 2/3
Employee 2*
January through June 2015
9.21 %
4.92%
July through December 2015
11.18%
6.12%
Employee PERS Plan 3
varies
* For employees participating in JBM, the contribution rate was 15.30%
The City of Federal Way's actual contributions to the plan were $1,358,850 for the year ended December 31, 2015.
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and
as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service
calculated as a percent of final average salary (FAS) as follows:
• 20+ years of service — 2.0% of FAS
• 10-19 years of service — 1.5% of FAS
• 5-9 years of service — 1 % of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank
for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months' salary
within the last ten years of service. Members are eligible for retirement with five years of service at the age of 50. Other
benefits include duty and non -duty disability payments, a cost -of living adjustment (COLA), and a one-time duty -related death
benefit, if found eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of
five years of eligible service. The plan was closed to new entrants on September 30, 1977.
Citv of Federal Wav / 60
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains fully
funded. The LEOFF Plan 1 had no required employer or employee contributions for fiscal year 2015. Employers paid only
the administrative expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
final average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members are eligible
for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age of 53
receive reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is three percent for each
year prior to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement
benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non -duty
disability payments, a cost -of -living allowance (based on the CPI), capped at three percent annually and a one-time duty -
related death benefit, if found eligible by the Department of Labor and Industries. LEOFF 2 members are vested after the
completion of five years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2. The employer rate included an administrative expense component set at 0.18 percent. Plan 2 employers and
employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The LEOFF Plan 2 required
contribution rates (expressed as a percentage of covered payroll) for 2015 were as follows:
LEOFF Plan 2
Actual Contribution Rates:
Employer
Employee
State and local governments
5.23%
8.41%
The City of Federal Way's actual contributions to the plan were $647,626 for the year ended December 31, 2015.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to supplement
the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension
Funding Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by the state
constitution and could be changed by statute. For the state fiscal year ending June 30, 2015, the state contributed $58,339,032
to LEOFF Plan 2.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2015 with a valuation date of June 30, 2014. The actuarial assumptions used in the valuation were based on the
results of the Office of the State Actuary's (OSA) 2007-2012 Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2014 actuarial valuation report. The TPL
was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2015. Plan liabilities were
rolled forward from June 30, 2014, to June 30, 2015, reflecting each plan's normal cost (using the entry -age cost method),
assumed interest and actual benefit payments.
Inflation: 3% total economic inflation; 3.75% salary inflation
Salary increases: In addition to the base 3.75% salary inflation assumption, salaries are also expected to grow by
promotions and longevity.
Investment rate of return: 7.5%
Mortality rates were based on the RP-2000 report's Combined Healthy Table and Combined Disabled Table, published by the
Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in mortality by
projecting the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational basis; meaning, each
member is assumed to receive additional mortality improvements in each future year throughout his or her lifetime.
There were minor changes in methods and assumptions since the last valuation.
• The OSA updated demographic assumptions, consistent with the changes from the 2007-2012 Experience Study
Report, used when valuing the PERS 1 and TERS 1 Basic Minimum COLA.
• The OSA corrected how valuation software calculates a member's entry age under the entry age normal actuarial cost
method. Previously, the funding age was rounded, resulting in an entry age one year higher in some cases.
Citv ofFederal Wav / 61
• For purposes of calculating the Plan 2/3 Entry Age Normal Cost contribution rates, the OSA now uses the current
blend of Plan 2 and Plan 3 salaries rather than using a long-term membership assumption of two-thirds Plan 2
members and one-third Plan 3 members.
• The OSA changed the way it applies salary limits, as described in the 2007-2012 Experience Study Report.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.5 percent.
To determine that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate to determine funding
liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except LEOFF 2, which has
assumed 7.5 percent). Consistent with the long-term expected rate of return, a 7.5 percent future investment rate of return on
invested assets was assumed for the test. Contributions from plan members and employers are assumed to continue being
made at contractually required rates (including PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose rates include a
component for the PERS 1, and TRS 1 plan liabilities). Based on these assumptions, the pension plans' fiduciary net position
was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return of 7.5 percent was used to determine the total liability.
Long -Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined using a building-
block -method. The Washington State Investment Board (WSIB) used a best estimate of expected future rates of return
(expected returns, net of pension plan investment expense, including inflation) to develop each major asset class. Those
expected returns make up one component of WSIB's capital market assumptions. The WSIB uses the capital market
assumptions and their target asset allocation to simulate future investment returns at various future times. The long-term
expected rate of return of 7.5 percent approximately equals the median of the simulated investment returns over a 50-year time
horizon.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation
as of June 30, 2015, are summarized in the table below. The inflation component used to create the table is 2.2 percent and
represents the WSIB's most recent long-term estimate of broad economic inflation.
Asset Class
Target Allocation
% Long -Term Expected
Real Rate of Return
Arithmetic
Fixed Income
20%
1.70%
Tangible Assets
5%
4.40%
Real Estate
15%
5.80%
Global Equity
37%
6.60%
Private Equity
23%
9.60%
100%
Sensitivity of NPL
The table below presents the City of Federal Way proportionate share* of the net pension liability calculated using the
discount rate of 7.5 percent, as well as what the City of Federal Way proportionate share of the net pension liability would be
if it were calculated using a discount rate that is 1-percentage point lower (6.5 percent) or 1-percentage point higher (8.5
percent) than the current rate.
1% Decrease
(6.5%)
Current Discount
Rate
7.5%
1% Increase
(8.5%)
PERS 1
$7,058,462
$5,797,492
$4,713,174
PERS 2/3
$14,953,106
$5,113,831
$2,419,734
LEOFF 2
$4,403,722
($4,397,412)
($11,020,599)
Pension Plan Fiduciary Net Position
Detailed information about the State's pension plans' fiduciary net position is available in the separately issued DRS financial
report.
Citv of Federal Wav / 62
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2015, the City of Federal Way's reported a total pension liability of $10,911,323, total pension net asset of
$4,397,412 for its proportionate share of the net pension liabilities and net pension asset of $6,513,911 as follows:
Liability or Asset
PERS 1
$5,797,492
PERS 2/3
$5,113,831
LEOFF 2
$4,397,412
The amount of the liability/(asset) reported above for LEOFF Plan 2 reflects a reduction for State pension support provided to
the City of Federal Way. The amount recognized by the City of Federal Way as its proportionate share of the net pension
liability/(asset), the related State support, and the total portion of the net pension liability/(asset) that was associated with the
City of Federal Way were as follows:
Liability (or Asset)
LEOFF 2 — employer's proportionate share
($4,397,412)
LEOFF 2 — State's proportionate share of the net pension
liability/(asset) associated with the employer
($2,907,569)
TOTAL
($7,304,981)
At June 30, the City of Federal Way proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/14
Proportionate
Share 6/30/15
Change in
Proportion
PERS 1
0.103709%
0.110831%
0.007122%
PERS 2/3
0.133525%
0.143122%
0.009597%
LEOFF 2
0.403087%
0.427847%
0.024760%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis
for determining each employer's proportionate share of the collective pension amounts reported by the DRS in the Schedules
of Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971 through
2000 and the retirement benefit payments in fiscal year 2015. Historical data was obtained from a 2011 study by the Office of
the State Actuary (OSA). In fiscal year 2015, the state of Washington contributed 87.12 percent of LEOFF 1 employer
contributions and all other employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully
funded and no further employer contributions have been required since June 2000. If the plan becomes underfunded, funding
of the remaining liability will require new legislation. The allocation method the plan chose reflects the projected long-term
contribution effort based on historical data.
In fiscal year 2015, the state of Washington contributed 39.80 percent of LEOFF 2 employer contributions pursuant to RCW
41.27.726 and all other employers contributed the remaining 60.20 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2015, and the actuarial valuation date on which the
total pension liability (asset) is based was as of June 30, 2014, with update procedures used to roll forward the total pension
liability to the measurement date.
Pension Expense
For the year ended December 31, 2015, the City of Federal Way recognized pension expense as follows:
Pension Expense
PERS 1
$237,008
PERS 2/3
$124,119
LEOFF 2
($393,411
TOTAL
($280,522)
Citv ofFederal Wav / 63
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2015, the City of Federal Way reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
PERS 1
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience
$0
$0
Net difference between projected and actual investment
earnings on pension plan investments
$0
($317,186)
Changes of assumptions
$0
$0
Changes in proportion and differences between
contributions and proportionate share of contributions
$0
$0
Contributions subsequent to the measurement date
$0
$0
TOTAL
$0
($317,186)
PERS 2/3
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience
$543,602
$0
Net difference between projected and actual
investment earnings on pension plan investments
$0
($1,365,151)
Changes of assumptions
$8,240
$0
Changes in proportion and differences between
contributions and proportionate share of contributions
$308,798
$0
Contributions subsequent to the measurement date
$755,189
$0
TOTAL
$1,615,829
$1,365,151)
LEOFF 2
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience
$385,067
$0
Net difference between projected and actual investment
earnings on pension plan investments
$0
($1,332,393)
Changes of assumptions
$11,599
$0
Changes in proportion and differences between
contributions and proportionate share of contributions
$0
($129,770)
Contributions subsequent to the measurement date
$329,289
$0
TOTAL
$725,955
$1,462,163)
Deferred outflows of resources related to pensions resulting from the City of Federal Way's contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other
amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year ended
December 31:
PERS 2/3
2016
$90,823
2017
$90,823
2018
$90,823
2019
$36,329
Year ended
December 31:
LEOFF 2
2016
$24,956
2017
$24,956
2018
$24,956
2019
$24,956
2020
$24,956
Thereafter
$4,990
City of Federal Way / 64
Other Local Government Pension Systems - City of Federal Way
Employees' 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 2015 on average, there were a total of 310 individuals covered by this system. As of the end of the year, there were
311 active employees of the City and four were drawing retirement benefits. During the year 29 employees left the City's
employment and either had been reimbursed their contributions, reimbursement was pending, or they elected to have their
contributions remain in the plan if the balance was $1,000 or greater.
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 coverage. 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 2015 was $25,692,040, and excluding PERS, LEOFF, FWRS, deferred comp, flex plan, and section 125
covered payroll was $22,243,031. Total City payroll was $26,349,633. Actual City contributions for the year were
$1,263,138. Actual employee contributions were $1,506,049. All contributions were invested in instruments arranged
through independent investment advisors selected by the Municipal Employers Benefit Trust (MEBT) committee comprised of
the entities of Bellevue, Kirkland, Redmond, Edmonds, Mill Creek, Woodinville, Federal Way, and North East King County
Regional Public Safety Communication Agency (NORCOM) but administered by Northwest Plan Services (NWPS).
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 Security Trust Company, N.A. who invests Plan assets. MEBT can be
contacted for additional information at (877)-690-5410.
In July 1995, the City implemented the hardship withdrawal and loan provision program that allow participants to have limited
access to their contributions while still employed by the City. Hardship withdrawals are available in the event of financial
necessity resulting from uninsured medical expenses, tuition expenses, purchasing one's primary residence, or to prevent
foreclosure on one's primary residence. Loans receivable as of December 31, 2015 were $1,651,608. After 5 years an
employee becomes 100% vested in their employer contributions. Also an employee becomes 100% vested when they reach
their normal retirement date (the earlier of age 65 or the earliest service retirement date under any other retirement benefit
program to which the City contributes on the employees behalf).
The consulting actuary firm of Northwest Plan Services (NWPS) 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 10 —RISK MANAGEMENT
The City uses the Risk Management Internal Service Fund to account for its risk financing activities. The City maintains
insurance against most normal hazards. The City faces most of the risks faced by similar sized cities including general liability
for bodily injury, law enforcement — auto liability and property liability.
Through its Risk Management Fund, the City records insurance premium costs for general liability coverage and builds
reserves for future claims, self -insured retention, and a future general liability self-insurance program.
There were no settlements in excess of insurance for commercially insured activities for 1996 through 2015. The fund balance
for the Risk Fund as of 12/31/2015 is $0.96 million.
The following is a summary of coverage in force in 2015.
Citv ofFederal Wav / 65
SCHEDULE OF INSURANCE IN FORCE
AS OF DECEMBER 31, 2015
Company Policy Period Details of Coverage Liability Limits
Argonaut
12/31/14-12/31/15
General liability (auto, general, police, e &
$250,000 self -insured retention (SIR) with
o, employment practices, & stop gap)
aggregate limits of $10,000,000.
National
12/31/14-12/31/15
Excess liability
$10,000,000 in excess of $10,000,000 with
Casualty
aggregate limits of $10,000,000.
Crime/fidelity (employee theft, forgery or
alternation, on premises, in transit, money
Deductible ranges from $5,000 to $25,000
Travelers
1/l/15-1/l/16
orders and counterfeit money, computer
with single loss limits ranging from $50,000
crime, fund transfer fraud and claims
to $1,000,000.
expense)
The City's industrial insurance is provided by the Association of Washington Cities and is administered by the Workers' Comp
Retro Program. Coverage is purchased by means of standard rates per working hour and is computed by the total number of
hours worked by employees multiplied by the basic premium rate assigned to the business risk classification. The following
are benefits provided by industrial insurance: medical services, damaged clothing, travel expenses, time -loss payments,
vocational rehabilitation, partial disability awards, pension awards and survivor benefits.
NOTE 11— LONG-TERM LIABILITIES
The various categories of long-term debt reflected on the City's financial statements are briefly described in the following
paragraphs. Ratings are issued on the bond at the time of issuance. The ratings issued on City bonds are shown on page 66.
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
because 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 2015 the City had no voter -approved bonds outstanding. All principal and interest payments on general
obligation debts are recorded as expenditures by the City's Debt Service Fund.
A) On March 4, 2013 the City issued $12,415,000 of general obligation refunding bonds with an average interest rate of
2.67 percent to provide resources to purchase U.S. Government and State and Local Government Series security that
were placed in an irrevocable trust for the purpose of generating resources to advance refund on $12,310,000 of
outstanding 2003 GO Federal Way Community Center debt on December 1, 2013. As a result, the 2003 GO FWCC
bonds are considered to be defeased and the liability has been removed from the governmental activities column of
the statement of net position. This advance refunding was undertaken to reduce total debt service payments over the
next twenty one years by $2,322,943 and resulted in an economic gain of $1,740,458. (Economic gain is the net
present value of future savings between old and the new debt).
B) On November 26, 2014 the City issued $8,209,906 of general obligation Bond anticipation note with KeyBank to
acquire the Target property with an interest only rate of 1.51 percent and principal due 12/01/2017. The funds were
used to purchase the old Target property for downtown development. The bond will be paid off with the sale of the
land or refinanced in three years. Currently the bond calls for interest only payments before the bond is paid off.
C) The City in conjunction with several South King County cities (Renton, Auburn, Tukwila, and Kent) agreed to build
new dispatch facility known as Valley Communications Center. Total bond in 2000 was $12.758 million. Valley
Communications Center refinanced the 2000 bond in 2010 for $5.325 million. The City of Federal Way portion at
that time was $1.065 million. The City made its final payment on 12/l/2015.
D) The City in conjunction with several other South King County cities (Auburn, Burien, Renton, SeaTac, Tukwila,)
agreed to build a facility to hold its inmates. The total bond in 2009 was $86.325 million and the City of Federal
Way's portion at that time was $15.522 million. In 2015 the facility was able to use its excess revenue from excess
space rented to non-member cities to pay the bond in 2015.
SCORE and Valley Communications joint venture information can be found on pages 69 thru 72.
Citv of Federal Wav / 66
The following schedules detail the long-term debt activity and balances of the City for GO Bonds, SCORE and Valleycomm
Debt, Public Works Trust Fund Loans, Compensated Absences, and Net Pension Liability.
OUTS TANDING GINERAL OBLIGATION DEBT AND LONGTERM LIABILITIES - BY TYPE
DECEMBER 31, 2015
Amount
Beginning
Ending
Description
Bond Rating Issue
Maturity
Interest
Originally
Outstanding
Amount
Amount
Outstanding
at Issuance Date
Date
Rate
Issued
Debt
Issued
Redeemed
Debt
Governmental Activities:
General Obligation Bonds:
A) 2014 KeyBank Bond Anticipation Note
Nov 26, 14
Dec 01, 17
1.51
$ 8,209,960
$ 8,209,960
$
$ -
$ 8,209,960
B)2013 Refund Ltd/Conumnity Center
Aa3 Dec 01,13
Dec 01,33
2.67
12,415,000
11,805,000
455,000
11,350,000
Subtotal GO Bonds:
-
-
-
20,624,960
20,014,960
455,000
19,559,960
Other Miscellaneous Debt -Intergovernmental:
C) 2010 Limited/Valley Comm PDA3
A 1 Mar 05, 10
Dec 01, 15
3.00-4.00
1,065,000
220,000
220,000
-
D) 2009 SCORE/Special Obligation Bond
Al/AA Nov 04, 09
Jan 01, 39
3.00-6.62
15,522,300
14,468,400
371,700
14,096,700
Subtotal miscellaneous:
-
-
16,587,300
14,688,400
591,700
14,096,700
Subtotal GO Bonds plus Misc.
37,212,260
34,703,360
1,046,700
33,656,660
Compensated absences
-
1,831,541
1,951,129
1,868,116
1,914,554
Net Pension Liability (NPL) for Pets 1,2, & 3
-
6,957,297
2,623,589
-
9,580,886
Subtotal Go bonds, misc., comp. absences, & NPL
-
-
37,212,260
43,492,198
4,574,718
2,914,816
45,152,100
Business -Type Activities:
Public Works Trust Fund Loan (PWTFL):
PWTL- SeaTac Mall Drain Imp
May 31, 00
Jul 01, 19
1.00
412,500
80,100
-
16,020
64,080
PWTL- SeaTac Mall Drain Imp
Aug 14, 00
Jul 01, 19
1.00
2,062,500
400,500
80,099
320,401
Subtotal PWTFL
-
-
2,475,000
480,600
96,119
384,481
Compensated absences
-
84,892
104,838
94,772
94,958
Net Pension Liability (NPL) for Pers 1,2, & 3
-
966,116
364,322
-
1,330,438
Subtotal PWTFL, comp. absences, & NPL:
2,475,000
1,531,608
469,160
190,891
1,809,877
Grand Total All Long -Term Debt:
$ 39,687,260
$ 45,023,806
$ 5,043,878
$ 3,105,707
$46,961,977
I On November 26, 2014 the City issued $8,209,960 ofgeneral obligation bond anticipation note with KeyBank with an interest only rate of 1.51 percent and
principal due 1210112017. 2The ending 2015 refunding Community Center bond premium is $367, 560 with current year amortization of $29, 616. 3Debt
service principal payments in Debt Service Fund include credits of $34,518 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. 4 Currently the City has an inter -local agreement with Des Moines
where they contribute I % to the City of Federal Way SCORE Debt
OUTS TANDING GENMAL OBLIGATION DEBT AND LONGTERM LIABIL INS - BY FOND
DECEMBER 31, 2015
Amount
Beginning
Amount
Amount
Ending
Due within
Description
Originally
Outstanding
Outstanding
Issued
Debt
Issued
Redeemed
Debt
one year
Governmental Long -Term Debt:
General Obligation Bonds:
A) 2014 KeyBank Bond Anticipation Note 1
$ 8,209,960
$ 8,209,960
$
$ -
$ 8,209,960
$
B) 2013 Refund Ltd/Conumnity Center 2
12,415,000
11,805,000
455,000
11,350,000
470,000
Subtotal GO Bonds:
20,624,960
20,014,960
455,000
19,559,960
470,000
Other Miscellaneous Debt-Intergovemmental:
C) 2010 Limited/Valley Comm. PDA3
1,065,000
220,000
220,000
-
-
D) 2009 SCORF/Special Obligation Bond4
15,522,300
14,468,400
371,700
14,096,700
386,100
Subtotal miscellaneous:
16,587,300
14,688,400
591,700
14,096,700
386,100
Subtotal GO Bonds plus Misc.
37,212,260
34,703,360
1,046,700
33,656,660
856,100
Compensated absences
-
1,831,541
1,951,129
1,868,116
1,914,554
127,240
Net Pension Liability (NPL) for Pets 1,2, & 3
-
6,957,297
2,623,589
-
9,580,886
na
Subtotal GO bonds, mist., corinp. absences, & NPL:
37,212,260
43,492,198
4,574,718
2,914,816
45,152,100
983,340
Business -Type Activities:
Enterprise Funds:
Public Works Trust Fund Loan
2,475,000
480,600
-
96,119
384,481
96,120
Subtotal Bus -Type Long -Term Debt
2,475,000
480,600
-
96,119
384,481
96,120
Compensated absences
-
84,892
104,838
94,772
94,958
6,363
Net Pension Liability (NPL) for Pers 1,2, & 3
-
966,116
364,322
-
1,330,438
na
Subtotal PWTFL, comp. absences, & NPL:
2,475,000
1,531,608
469,160
190,891
1,809,877
102,483
Grant Total All Long -Term Debt:
$ 39,687,260
$ 45,023,806
$ 5,043,878
$ 3,105,707
$ 46,961,977
s 1,085,823
Citv ofFederal Wav / 67
S CHEDULE OF CHANGES IN LONGTERM LIABILTrIES
PERIOD ENDED DECEMBER 31, 2015
Beginning
Ending
Outstanding
Additions
Reductions
Outstanding
Debt
Debt
Governmental Activities:
General Obligation Bonds
$ 20,014,960
$ -
$ (455,000)
$ 19,559,960
Other -intergovernmental debt
14,688,400
-
(591,700)
14,096,700
Compensated absences
1,831,541
1,951,129
(1,868,116)
1,914,554
Net Pension Liability (NPL) for Pers 1,2, & 3
6,957,297
2,623,589
-
9,580,886
Total Governmental Activities
43,492,198
4,574,718
(2,914,816)
45,152,100
Business -Type Activities:
Enterprise Funds
Public Works Trust Fund Loan
480,600
-
(96,119)
384,481
Compensated absences
84,892
104,838
(94,772)
94,958
Net Pension Liability (NPL) for Pers 1,2, & 3
966,116
364,322
1,330,438
Total Business -Type Activities
1,531,608
469,160
(190,891)
1,809,877
Total All Funds
$ 45,023,806
$ 5,043,878
$ (3,105,707)
$ 46,961,977
SCHEDULE OF DEBT SERVICE REQUIItIININTS TO MATURITY
AS OF DECEMBER 31, 2015
Government Activities
Business -Type Activities
General Governmental Debt
Public Work Trust Fund
Grand Total
Principal
Interest
Principal
Interest
Principal
Interest
P&I
Year
2016
$ 856,100
$ 1,050,467
$ 96,120
$ 3,845
$ 952,220
$ 1,054,312
$ 2,006,532
2017
9,098,160
1,018,993
96,120
2,884
9,194,280
1,021,876
10,216,156
2018
915,800
867,368
96,120
1,922
1,011,920
869,291
1,881,210
2019
944,300
838,854
96,120
961
1,040,420
839,816
1,880,235
2020
973,700
809,452
-
-
973,700
809,452
1,783,152
2021
1,016,200
771,367
-
-
1,016,200
771,367
1,787,567
2022-2026
5,687,300
3,288,755
-
-
5,687,300
3,288,755
8,976,055
2027-2031
6,790,500
2,254,268
-
-
6,790,500
2,254,268
9,044,768
2032-2036
5,553,900
992,277
-
-
5,553,900
992,277
6,546,177
2037-2039
F
1,820,700
Pr
118,278
1 -
-
1,820,700
118,278
1 1,938,978
Totall
$ 33,656,660
1 $ 12,010,080
1 $ 384,479
1 $ 9,612
1 $ 34,041,139
1 $12,019,692
1 $ 46,060,831
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'h 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. See page 128 for a detailed calculation of the valuation.
The City's legally remaining debt capacities as of December 31, 2015 are:
General government (no vote required) $ 101,361,960
General government (3/5 majority vote required) 88,489,945
Parks and open space (3/5 majority vote required) 221,224,864
Utilities (3/5 majority vote required) 221,224,864
Total Capacity $ 632,301,633
Citv of Federal Wav / 68
Compensated Absences
The City's liability for accrued vacation and compensatory time balances is recorded in the schedule below. Accrued
compensated absences for proprietary fund employees are recorded as liabilities in those funds expected to incur the related
future expense. Typically the General Fund has been used to liquidate compensated absences for the General Government.
Governmental Activities:
Current portion $ 127,240
Noncurrent portion 1,787,314
Business -Type Activities:
Current portion 6,363
Noncurrent portion 88,595
Total Compensated absences $ 2,009,512
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, 2015 is $-0- for its tax-exempt general obligation bond issues subject to the
Tax Reform Act issued through that date. No arbitrage applies to any of City of Federal Way bonds.
NOTE 12 — INTERFUND TRANSACTIONS
Interfund transfers for the year ended December 31, 2015 were as follows:
Interfund Transfers
In
Out
Governmental Funds:
General Fund
$ 5,133,008
$ 1,892,069
Street Fund
1,909,539
—
Utility Tax Fund
-
7,663,210
Debt Service
2,402,722
—
Downtown Redevelopment
227,348
310,256
Transportation
2,543,334
—
Performing Arts & Event Center
455,133
—
Nonmajor Governmental Funds
1,751,103 or
4,613,611
Proprietary Funds:
Surface Water Management
69,300
539,000
Dumas Bay Centre
487,659
—
Internal Service Funds
72,308
33,308
Total:
$15,051,454
$15,051,454
The following describes the amounts transferred out during 2015:
General Fund:
• $1,535,721 to Street Fund to subsidize street maintenance and operations
• $127,348 from General Fund to Downtown Redevelopment Fund for interest payment
• $100,000 from General Fund to Downtown Redevelopment Fund for consulting service
• $100,000 to City Facilities Fund for upgrades of City Hall Council Offices
• $25,000 to Federal Way Community Center for use of facilities by General Parks and Recreation
• $4,000 to Dumas Bay Center for pump station
Utility Tax Fund:
• $4,779,572 from Utility Tax Fund to General Fund for operation support
• $396,754 from Utility Tax Fund to Federal Way Community Center for maintenances and operations
• $194,282 from Utility Tax Fund to Debt Service Fund for Valley Communication debt
0 $760,885 from Utility Tax Fund to Arterial Street Fund for street overlays
Citv ofFederal Wav / 69
• $799,240 from Utility Tax Fund to Debt Service Fund for reserves
• $218,818 from Utility Tax Fund to Street Fund for street maintenance and operations
• $483,659 from Utility Tax Fund to Dumas Bay Centre Fund for Knutzen Family Theatre subsidy and capital
reserves
Downtown Redevelopment Fund:
• $310,256 from Downtown Redevelopment Fund to Performing Arts and Conference Center for LIFT tax
Nonmajor Funds:
• $323,436 from Traffic Safety Fund to General Fund for Valley Communication Services
• $115,000 from Traffic Safety Fund to Street Fund for Comprehensive Plan
• $40,000 from Traffic Safety Fund to Street Fund for King County Traffic Markings
• $430,334 from Traffic Safety Fund to Street Construction Project for school zone enhancement
• $810,773 from Real Estate Excise Tax (BEET) Fund to Debt Service Fund for debt payments
• $150,000 from REET Fund to Parks CIP for major parks facilities repair
• $150,000 from REET Fund to Parks CIP for playgrounds equipment
• $168,464 from REET Fund to Parks CIP for Karl Grosch Field turf replacement
• $1,613,000 from REET Fund to Transportation CIP for S 356th St. from SR 99 to SR 161
• $144,877 from Municipal Facility CIP Fund to Performing Arts and Event Center for construction
• $598,427 from Parks CIP Fund to Debt Service Fund for payment of debt service and reserves
• $69,300 from Parks CIP Fund to Surface Water CIP for mitigation funds that belong to surface water
Surface Water Management Fund:
• $500,000 from Surface Water CIP Fund to Transportation CIP SR99 Phase V project
• $39,000 from Surface Water Management Fund to Fleet & Equipment Fund for SWM Inspector Vehicle
Internal Service:
• $12,273 from Risk Management to Fleet Fund for a vehicle damage claim
• $21,035 from Risk Management to Fleet Fund for a vehicle damage claim
Interfund loans for the year ended December 31, 2015 were as follows:
lnterfund Loans Receivable Payable
General Fund $ 16,660 $
Special Revenue Funds:
Conumnity Development Block Gant - 16,660
Total Interfund Loans $ 16,660 $ 16,660
NOTE 13 — CONTRACTUAL OBLIGATIONS, CONTINGENCIES AND LITIGATION
As of December 31, 2015 there were a small number of claims for damages and lawsuits pending against the City. In the
opinion of the City Attorney, however, neither the potential liability for any single claim or lawsuit, nor the aggregate potential
liability arising from all actions currently pending would materially affect the financial condition of the City. Due to both their
uncertainty and immateriality, no liabilities or estimated liabilities have been included in the City's financial statements.
NOTE 14 — JOINT VENTURES
Vallev Communication Center
The "Valley Communications Center" was established August 20, 1976, when an Interlocal Agreement was entered into by
the four original participating municipal corporations, including the cities of Renton, Kent, Auburn, and Tukwila. Federal Way
was formally admitted as an addition in 2000. The agreement is sanctioned by the provisions and terms of the Interlocal
Cooperation Act pursuant to RCW 39.34. The initial duration of the agreement was five years, and thereafter was
automatically extended for a consecutive five year -period.
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency
communications (dispatch) services for police, fire, and medical aid, to the five participating cities and to several subscribing
agencies, which include King County Fire Districts 2, 20, 26, 40, 43, 44, and 47; City of Pacific Police and Fire Departments,
Citv of Federal Wav / 70
City of Algona Police Department, City of Des Moines Police Department, City of Black Diamond Police and Fire
Department; SeaTac Fire Department; North Highline Fire Department; King County EMS Units; and Vashon Island Fire
Department. Separate agreements between Valley Com and the subscribing agencies have been executed, which set forth
conditions of services and rates charged.
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 2015 cost distributions for the five member cities are as follows:
Dispatchable Percent
City
Calls
of Total
Kent
104,448
28.15%
Renton
75,345
20.31%
Auburn
82,276
22.17%
Tukwila
32,383
8.73%
Federal Way
76,602
20.64%
Total 371,054 100.00 %
Valley Com is governed by an Administration Board, composed of the Mayors or designated representatives from the five
participating cities of Renton, Kent, Auburn, Tukwila, and Federal Way. 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 Operating Board was established and consists of two members of each participating City's Public Safety
Departments, including the heads of such departments or their designees. The Operating 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 funds 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.
In May 1993 Valley Com 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 sub-
regions of King County, Seattle, and Eastside Public Safety Communications, which governs the development and installation
of the new 800-MHz emergency radio system. Valley Com now provides emergency communication dispatch services to a
population of approximately 570,000.
Valley Com 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.
Citv ofFederal Wav / 71
The share of equity belonging to the five participating cities is shown below. Liabilities are the responsibility of the five
participating cities in direct proportion to their equity position. The prior period adjustment is a net accounting change due to
GASB 68 Derision accountine.
Balances in 2015
Kent
Renton
Auburn
Tukwila
Federal Way
Total
Equity @ January 1, 2015 $ 7,530,786
$ 5,350,252
$ 5,079,377
$ 2,974,283
$ 3,619,944 $
24,554,642
Prior period adjustment $ (2,640,908)
$ (1,876,235)
$ (1,781,244)
$ (1,043,026)
$ (1,269,448) $
(8,610,861)
Current year increase 649,015
470,862
555,097
208,004
507,809
2,390,787
Equity @ December 31, 2015 $
5,538,893 $
3,944,879 $
3,853,230 $
2,139,261 $
2,858,305 $
18,334,568
Percent of equity
30.21%
21.52%
21.02%
11.67%
15.59%
100.00%
Prior year's percent of equity
30.73%
21.82%
20.65%
12.19%
14.61%
100.00%
A complete set of financial statements is available from:
Valley Communications Center, 27519 108" Avenue SE, Kent, WA 98030.
South Correction Entity
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when an
Interlocal Agreement (the "Original Interlocal Agreement") was entered into by seven participating municipal governments,
the "Member Cities" of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, under the authority of the
"Interlocal Cooperation Act" (RCW 39.34). This "Original Interlocal Agreement" was amended and restated October 1, 2009
and named the City of Des Moines as the "Host City" and the remaining Member Cities as "Owner Cities". This interlocal
agreement is known as the "Formation Interlocal Agreement". Pursuant to a separate "Host City Agreement" dated October 1,
2009, the Host City will not enjoy the same equity position as the Owner Cities until all debts issued are paid and the Host
City fulfills all of its obligations as outlined in the Host City Agreement. Pursuant to SCORE financial policies, all
unexpected funds or reserve funds shall be distributed based on the percentage of the Member City's average daily population
at the SCORE Facility for the last three (3) years regardless of its Owner City or Host City status.
SCORE, a governmental administrative agency pursuant to RCW 39.34.030(3), has the power to acquire, construct, own,
operate, maintain, equip, and improve a correctional facility known as the "SCORE Facility" and to provide correctional
services and functions incidental thereto, for the purpose of detaining arrestees and sentenced offenders in the furtherance of
public safety and emergencies within the jurisdiction of the Member Cities. The SCORE Facility may serve the Member
Cities and Subscribing Agencies which are in need of correctional facilities. Any agreement with a Subscribing Agency shall
be in writing and approved by SCORE as provided within the SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by bonds issued
by the South Correctional Entity Facility Public Development Authority (the "SCORE PDA"), a public development authority
chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755. The SCORE PDA issued $86 million in
special obligation bonds in 2009 (the "Bonds") to construct, develop, acquire and equip the SCORE Facility. Pursuant to the
Formation Interlocal Agreement and the ordinances of each city, each Owner City (which includes the Cities of Auburn,
Burien Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its share, of the
principal of and interest on the Bonds as the same become due and payable. Each Owner City's obligation to pay its portion is
an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from property taxes levied within the
constitutional and statutory authority provided without a vote of the electors of the Owner City on all of the taxable property
within the Owner City and other sources of revenues available therefor. The following is a summary of the debt service
requirements for the Bonds:
Summary of Debt Service Requirements
Debt Service Schedule
Debt Service Allocation to Owner Cities
35% BABs
Auburn
Burien
Federal Way
Renton
SeaTac
Tukwila
Year
Principal
hiterest
Subsidy
Total
31%
4%
18%
36%
3%
8%
2016
$ 2,065,000
$ 4,911,886
$ (1,517,676) $
5,459,210
$ 1,692,355
$ 218,368
$ 982,658
$ 1,965,316
$ 163,776
$ 436,737
2017
2,145,000
4,820,241
(1,511,685)
5,453,556
1,690,602
218,142
981,640
1,963,280
163,607
436,284
2018
2,240,000
4,715,979
(1,511,685)
5,444,294
1,687,731
217,772
979,973
1,959,946
163,329
435,544
2019
2,310,000
4,602,229
(1,475,151)�
5,437,078
1,685,494
217,483
978,674
1,957,348
163,112
434,966
2020
2,385,000
4,484,854
(1,437,475)�
5,432,379
1,684,037
217,295
977,828
1,955,656
162,971
434,590
2021-2025
13,405,000
20,377,998
(7,109,462)
26,673,536
8,268,796
1,066,941
4,801,236
9,602,473
800,206
2,133,883
2026-2030
16,325,000
15,803,611
(5,715,798)
26,412,813
8,187,972
1,056,513
4,754,306
9,508,613
792,384
2,113,025
2031-2035
20,095,000
9,856,351
(3,682,383)
26,268,968
8,143,380
1,050,759
4,728,414
9,456,828
788,069
2,101,517
2036-2039
19,410,000
2,636,145
(1,147,380)
20,898,765
6,478,617
835,951
3,761,778
7,523,555
626,963
1,671,901
Total
$ 80,380,000
$72,209,294
$(25,108,695) $ 127,480,599
$ 39,518,984
$ 5,099,224
$ 22,946,507
$45,893,015
$ 3,824,417
$10,198,447
*Of the $22,946,507 allocation to Federal Way, $14,468,400 is for the principal portion and the remainder is for interest.
Citv of Federal Wav / 72
The City of Federal Way reports its share of equity interest in the Governmental Activities column within the Government -
wide financial statements under non -current assets. The prior period adjustment is a net accounting change due to GASB 68
pension accounting. The following is condensed (unaudited) financial information as of December 31, 2015 related to
SCORE:
South Correction Entity (SCORE)
2015 Owner Cities Equity Allocation
Member
Percent of
2014
Prior Period
2015
City
Equity
Equity Balance
Adjustment
Apportionment Equity Balance
Auburn
31.00%
$ 4,243,235
$ (1,048,625)
$ 137,167 $ 3,331,777
Burien
3.10%
515,410
(155,837)
17,268 376,841
Des Moines
1.80%
292,161
(113,182)
18,288 197,267
Federal Way
23.30%
3,676,724
(1,204,461)
148,312 2,620,575
Renton
29.20%
4,220,405
(1,134,356)
136,621 3,222,670
SeaTac
4.50%
712,666
(240,723)
26,524 498,467
Tukwila
7.10%
1,080,470
(326,032)
34,103 788,541
Total
1 100.00%1
$ 14,741,071
1 $ (4,223,216)1
$ 518,285 $ 11,036,138
Completed financial statements for SCORE and SCORE PDA can be obtained at SCORE, Attn: Finance Manager, 20817 17"
Avenue South, Des Moines, WA 98198.
Joint Venture Reconciliation to Government Wide Financial Statements
Balance
Adj Bal
Balance
1/1/2015
Prior Per Adj
1/1/2015
Additions
Reductions
12/31/2015
Valley Communications Public Development Authority
$ 220,000
220,000
$
$ (220,000)
$ -
SCORE Public Development Authority
14,468,400
14,468,400
-
(371,700)
$ 14,096,700
Total Due to Other Governmental Units
14,688,400
14,688,400
-
(591,700)
14,096,700
Valley Communications Center
3,619,944
(1,269,448)
2,350,496
507,809
-
2,858,305
South Correctional Entity (SCORE)
3,676,724
(1,204,461)
2,472,263
148,312
-
2,620,575
Total Joint Venture Capital Assets
7,296,668
(2,473,909)
4,822,759
656,121
-
5,478,880
Total Investment in Joint Ventures $ 21,985,068 $ (2,473,909) $19,511,159 $ 656,121 $ (591,700) $ 19,575,580
The prior period adjustment is an adjustment for GASB 68 pension reporting.
Citv ofFederal Wav / 73
NOTE 15 — PRIOR PERIOD ADJUSTMENTS & CHANGE IN ACCOUNTING FOR PENSIONS
Governmental -type capital asset activity prior period adjustments of ($45.9M) are required for the following asset and
depreciation categories listed below. A Land adjustment of ($36.1M) is primarily due to adjusting off land from 1991 to 2003
that was reported twice during GASB 34 implementation in 2007. A Construction in progress (CIP) adjustment of ($4.OM)
is primarily due to adjusting off ($3.7M) that was identified as transportation and parks maintenance expenditures, as well as
CIP that was related to business -type activities and therefore reclassified. In addition to the ($3.7M) there was a reduction of
($0.3M) in Downtown Redevelopment planning that is no longer planned for construction. A Buildings adjustment of
$21.9M is due to reclassifying Federal Way Community Center (FWCC) out of Improvements other than buildings into
Buildings. Improvements other than buildings remaining adjustment of ($0.3M), after the FWCC adjustment described
above, is due to the sale of Klahanee Lake property in 2009. An Infrastructure adjustment of ($2.3M) is due to a ($21.15M)
adjustment of which ($8.6M) is related to business -type activities and therefore reclassified. The remainder of the ($21.15M)
reduction is due to non -capital items in the transportation projects that should have been classified as expenditures. Offset to
the above decrease is a $18.9M addition to roads, sidewalks, curb and gutter, streetlights, traffic signals, and bridges between
2003 and 2006 not added during GASB 34 reporting in 2007. A Machinery and equipment adjustment of ($0.2M) is due to a
duplication of a vehicle asset. Depreciation adjustments below are directly related to the asset adjustments listed above.
Beginning Adjusted Ending
Balance Prior Period Beginning Balance
Governmental Activity 1/1/2015 Adjustment Balance Additions Deletions 12/31/2015
Capital assets, not being depreciated:
Land $ 312,907,345 $(36,116,126) $ 276,791,219 $ 2,561,002 $ $ 279,352,221
Construction in progress 22,875,804 (3,984,227) 18,891,577 8,050,633 (11,244,979) 15,697,231
Total capital assets, not being depreciated: 335,783,149 (40,100,353) 295,682,796 10,611,635 (11,244,979) 295,049,452
Capital assets, being depreciated
Buildings 17,399,784 21,860,915 39,260,699 489,949 (1,485) 39,749,163
Improvements other than buildings 44,323,111 (22,166,647) 22,156,464 2,935,287 - 25,091,751
Infrastructure 165,313,474 (2,271,498) 163,041,976 8,556,517 (1,782,314) 169,816,179
Machinery and equipment 16,320,988 (184,000) 16,136,988 2,533,851 (607,257) 18,063,581
Total capital assets, being depreciated: 243,357,357 (2,761,230) 240,596,127 14,515,604 (2,391,056) 252,720,674
Less accumulated depreciation for:
Buildings (8,351,006) (6,558,203) (14,909,209) (1,940,048) 1,485 (16,847,772)
Improvements other than buildings (21,457,982) 6,690,217 (14,767,765) (1,045,246) - (15,813,011)
Infrastructure (51,335,158) (3,397,040) (54,732,198) (5,190,816) 1,019,752 (58,903,262)
Machinery and equipment (11,506,189) 184,000 (11,322,189) (1,318,006) 607,258 (12,032,937)
Total accumulated depreciation: (92,650,335) (3,081,026) (95,731,361) (9,494,116) 1,628,495 (103,596,982)
Total assets being depreciated, net 150,707,022 (5,842,256) 144,864,766 5,021,488 (762,561) 149,123,692
Governmental activities capital assets, net $ 486,490,172 $(45,942,609) $ 440,547,563 $ 15,633,123 $ (12,007,540) $444,173,145
Business -type capital asset activity prior period adjustments of $8.9M are required for the following asset and depreciation
categories listed below. A Construction in progress adjustment of $1.3M is from Transportation projects listed in
governmental activities. A Improvements other than buildings adjustment of ($4.6M) is due to moving ($3.75M) to
infrastructure, with the remainder being maintenance. An Infrastructure adjustment of $12.4M is due to a reclassification of
$3.75M from improvements other than buildings and $8.6M from Transportation projects listed in governmental activities.
Depreciation adjustments below are directly related to the asset adjustments listed above.
Business -Type Activities
Beginning
Balance
1/1/2015
Prior Period
Adjustment
Adjusted
Beginning
Balance
Additions
Deletions
Ending
Balance
12/31/2015
Capital assets, not being depreciated:
Land
$10,933,528
$ -
$10,933,528
$80,000
$ -
$11,013,528
Construction in progress
3,390,815
1,352,268
4,743,083
99,179
(1,731,276)
3,111,186
Total capital assets, not being depreciated:
14,324,343
1,352,268
15,676,611
179,179
(1,731,076)
14,124,714
Capital assets, being depreciated
Buildings
3,600,864
-
3,600,864
-
-
3,600,864
Improvements other than buildings
7,079,899
(4,563,119)
2,516,780
314,901
-
2,831,681
Infrastructure
42,809,205
12,372,774
55,181,979
1,665,024
-
56,847,003
Machinery and equipment
122,200
122,200
122,200
Total capital assets, being depreciated:
53,612,167
7,809,655
61,421,822
1,979,925
-
63,401,747
Less accumulated depreciation for:
Buildings
(3,130,808)
-
(3,130,808)
(150,742)
-
(3,281,550)
Improvements other than buildings
(448,186)
260,107
(188,079)
(25,168)
-
(213,247)
Infrastructure
(13,477,865)
(515,160)
(13,993,025)
(551,818)
-
(14,544,843)
Machinery and equipment
(99,825)
(99,825)
(4,340)
(104,165)
Total accumulated depreciation:
(17,156,684)
(255,053)
(17,411,737)
(732,068)
-
(18,143,805)
Total assets being depreciated, net
36,455,483
7,554,602
44,010,085
1,247,857
45,257,942
Business Type activities capital assets, net
$ 50,779,826
$ 8,906,870
$ 59,686,696
$ 1,427,036
$ (1,731,076)
$ 59,382,656
Pension related adjustments resulted in a reduction to governmental activities
of ($6.7M) for City of Federal Way,
($1.3M) for
Valleycomm, ($1.2M) for SCORE, and business
-type activities of ($1.3M).
Citv of Federal Wav / 74
NOTE 16 — LEASES
Operating Leases
The City of Federal Way leases the office buildings for the downtown Police substation and WIFI site for operating leases
starting February 1, 2014. Total Cost for the leases was $34,000 for the year ended December 31, 2015. The future minimum
lease payments for the downtown Police substation leases and WIFI site leases are as follows:
Year Ending December 31
Amount
2016
41,900
2017
3,500
Total:
$ 45,400
NOTE 17 — SELF-INSURANCE
The City's unemployment insurance, where it has elected to become fully self -insured. Related premiums received by the
Unemployment Insurance Fund is 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. The
City is self -insured for unemployment compensation. The weekly payments to an employee range from $158 - $664
depending upon the wages earned. At December 31st, 2015 the City had $2,131,298 in reserve.
IUnemnlovment compensation benefits 2014 2015 1
Unemployment reserve, Jan. 1st
$ 1,685,026 $
1,912,291
Unemployment compensation benefits
242,207
257,366
Unemployment compensation interest
647
2,844
Claim payments during the year
(15,590)
(41,202)
Unemployment reserve, Dec. 31st
$1,912,291 $
2,131,298
The City's also elected to self -insure for medical. Related premiums are received by the Health Insurance Fund and are used
to reimburse weekly claims to the Group Health Corporation for medical benefits paid the eligible individuals, and establish
reserves for the payment of estimated future medical benefits claims liability. At December 31", 2015 the City had $1,741,486
in reserve.
Health Insurance benefits
2014
2015
Health Insurance reserve, Jan. 1st
$ -
$ 1,031,752
Health Insurance benefits
3,958,828
4,034,322
Health Insurance Employee Contributions
214,481
215,210
Health Insurance COBRA Contributions
4,812
5,757
Health Insurance interest
431
2,022
Health Insurance Recovery -Stop Loss
-
227,404
Prescription Claimpayments during the year
(499,353)
(572,387)
Medical Claim payments during the year
(1,981,488)
(2,459,508)
Insurance -Stop Loss
(366,348)
(366,564)
Other services and charges
(299,610)
(376,522)
Health Insurance reserve, Dec. 31st
$ 1,031,752
$ 1,741,486
NOTE 18 ACCOUNTING CHANGES AND REPORTING CHANGES
The City is adopted reporting requirements of the GASB Statement 68, Accounting and Financial Reporting for Pensions for
the year 2015. See note 9 for implementation of GASB Statement68.
NOTE 19 — SUBSEQUENT EVENT
Industrial Realty Group (IRG) purchased the 400+ acre Weyerhaeuser property on 02/02/2016 for $70.5 million with the plan
of redevelopment of the property.
The City of Federal Way added a new website this year to help provide more accessible services for new businesses and
citizens within the City.
ON ofFederal Wav / 75
REQUIRED SUPPLEMENTARY
INFORMATION
Citv of Federal Wav / 76
City of Federal Way
Schedule of Proportionate Share of the Net Pension Liability
PERS 1
As of June 30, 2015
Last 10 Fiscal Years*
2015
Employer's proportion of the net pension liability
(asset) % 0.110831%
Employer's proportionate share of the net pension
liability $ 5,797,492
TOTAL $ 5,797,492
Employer's covered employee payroll $ -
Employer's proportionate share of the net pension
liability as a percentage of covered employee
payroll % N/A
Plan fiduciary net position as a percentage of the
total pension liability % 59.10%
Notes to Schedule:
* Until a full 10-year trend is compiled, governments should present
information only for those years for which information is available.
City of Federal Way
Schedule of Proportionate Share of the Net Pension Liability
PERS 2 - 3
As of June 30, 2015
Last 10 Fiscal Years*
2015
Employer's proportion of the net pension liability
(asset) % 0.143122%
Employer's proportionate share of the net pension
liability $ 5,113,831
TOTAL $ 5,113,831
Employer's covered employee payroll $ 12,744,440
Employer's proportionate share of the net pension
liability as a percentage of covered employee
payroll % 40.13%
Plan fiduciary net position as a percentage of the
total pension liability % 89.20%
Notes to Schedule:
* Until a full 10-year trend is compiled, governments should present
information only for those years for which information is available.
Citv ofFederal Wav / 77
City of Federal Way
Schedule of Proportionate Share of the Net Pension Liability (Asset)
LEOFF 2
As of June 30, 2015
Last 10 Fiscal Years'
2015
Employer's proportion of the net pension liability (asset) %
0.427847%
Employer's proportionate share of the net pension
liability (asset) $
(4,397,411)
LEOFF 2 - State's proportionate share of the net pension liability
(asset) associated with the employer $
(2,907,569)
TOTAL $
(7,304,980)
Employer's covered employee payroll $
12,477,707
Employer's proportionate share of the net pension
liability as a percentage of covered employee payroll %
-35.24%
Plan fiduciary net position as a percentage of the total
pension liability %
111.67%
Notes to Schedule:
* Until a full 10-year trend is compiled, governments should present
information only for those years for which information is available.
Citv of Federal Wav / 78
City of Federal Way
Schedule of Employer Contributions
PERS 2-3
As of December 31, 2015
Last 10 Fiscal Years*
2015
Statutorily or contractually required contributions $
1,358,850
Contributions in relation to the statutorily or
contractually required contributions $
(1,358,850)
Contribution deficiency (excess) $
-
Covered Employer Payroll $
13,309,318
Contributions as a percentage of covered employee
payroll %
10.21 %
Notes to Schedule:
* Until a full 10-year trend is compiled, governments should
present
information only for those years for which information is available.
City of Federal Way
Schedule of Employer Contributions
LEOFF 2
As of December 31, 2015
Last 10 Fiscal Years*
2015
Statutorily or contractually required contributions $
647,626
Contributions in relation to the statutorily or
contractually required contributions $
(647,626)
Contribution deficiency (excess) $
-
Covered Employer Payroll $
12,382,722
Contributions as a percentage of covered employee
payroll %
5.23%
Notes to Schedule:
* Until a full 10-year trend is compiled, governments should
present
information only for those years for which information is available.
Citv ofFederal Wav / 79
Combining Statement — Nonmajor Governmental Funds' Description
For the Year Ended December 31, 2015
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.
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 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 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 Federal Way Community Center Fund was established to account for the operation of the community center. The fund
is supported by user fees and designated utility tax transfers.
The Traffic Safety Fund was established to account for the penalties and fines collected in criminal traffic violations and
those related to the operation of the Red Light Photo Enforcement Program. Funds collected for traffic safety shall be used
for, but not limited to prevention, education, and enforcement effectors related to traffic safety and compliance with traffic
control devices within the city, including maintenance and operation costs.
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 '/2% motor vehicle fuel tax receipts which are restricted in use to the construction and maintenance of paths and trails
within City right-of-way. In August 2013, King County voters approved a new $0.1877, six -year, inflation adjusted property
tax lid lift to expand park and recreation opportunities. Seven percent of the County levy proceeds will be distributed to
cities for acquisition and development of open space and natural lands and city trail projects that support connections to the
regional trail system.
Capital Proiects 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.
The Real Estate Excise Tax Fund was established to account for the City's real estate excise tax and the transfers to pay for
debt and capital projects.
The City Facilities CIP Fund accounts for receipts and disbursements related to acquisition, design, construction and any
other related municipal facility and community/senior capital project expenditures.
The Parks CIP 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 Reserve Fund accounts for receipts and disbursements related to acquisition, design, construction and
any other related municipal facility and community/senior capital project expenditures.
Citv of Federal Wav / 80
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2015
Special Capital
ASSETS
Equity in pooled cash & investments
Receivables (net):
Taxes
Accounts and contracts
Due from other governments
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND
Liabilities:
Vouchers payable
Retainage payable
Deposits payable
Interfund loans payable
Unearned revenue
TOTAL LIABILITIES
Fund Balance:
Restricted
Committed
TOTAL FUND BALANCES
Revenue Projects Total
$ 7,198,021 $ 7,275,796 $ 14,473,817
- 329,365 329,365
66,335 - 66,335
238,646 - 238,646
7,503,002 7,605,161 15,108,163
174,989
33,853 208,842
-
25,886 25,886
22,919
- 22,919
16,660
- 16,660
144,266
- 144,266
496,718
59,739 556,457
1,344,481
6,746,074
8,090,555
5,661,803
799,348
6,461,151
7,006,284
7,545,422
14,551,706
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES AND FUND
BALANCES $ 7,503,002 $ 7,605,161 $ 15,108,163
Citv ofFederal Wav / 81
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2015
ASSETS
Equity in pooled cash & investments
Receivables (net):
Taxes
Accounts and contracts
Due from other governments
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Vouchers payable
Accounts/payroll payable
Deposits payable
Interfund loans payable
Unearned revenue
TOTAL LIABILITIES
Arterial Solid Waste
Street Recycling
$ 262,394 $ 142,182 $
39,273 81,787
301,667 223,969
- 5,622
3,280 9,490
3,280 15,112
Special
Contracts/ Hotel/Motel
Studies Lodging Tax
458,359 $ 506,634
- 15,631
458,359 522,265
- 20,500
4 -
4 20,500
Fund Balance:
Restricted - - 458,355 501,765
Committed 298,387 208,857 - -
TOTAL FUND BALANCES 298,387 208,857 458,355 501,765
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 301,667 $ 223,969 $ 458,359 $ 522,265
Citv of Federal Wav / 82
ASSETS
Equity in pooled cash & investments
Receivables (net):
Taxes
Accounts and contracts
Due from other governments
TOTAL ASSETS
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2015
Federal way
Community
Paths and
Community Traffic
Development
Trails
Center Safety
Block Grant
Reserve
Total
$ 1,719,342 $ 3,725,342
$ 153
$ 383,615
$ 7,198,021
66,335 -
-
-
66,335
- -
101,209
746
238,646
1,785,677 3,725,342
101,362
384,361
7,503,002
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Vouchers payable
Accounts/payroll payable
Deposits payable
Interfund loans payable
Unearned revenue
TOTAL LIABILITIES
54,930 52,775
41,162
63,561 58,451
3,098
22,919 -
-
- -
16,660
144,266 -
-
285,676 111,226
60,920
- 174,989
- 137,884
- 22,919
- 16,660
- 144,266
- 496,718
Fund Balance:
Restricted - - - 384,361 1,344,481
Committed 1,500,001 3,614,116 40,442 - 5,661,803
TOTAL FUND BALANCES 1,500,001 3,614,116 40,442 384,361 7,006,284
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 1,785,677 $ 3,725,342 $ 101,362 $ 384,361 $ 7,503,002
Citv ofFederal Wav / 83
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
December 31, 2015
Real Estate
Excise Tax City
Capital Project
Reserve Total
ASSETS
Equity in pooled cash & investments $ 3,365,705 $ 53,232 $ 3,376,019 $ 480,840 $ 7,275,796
Receivables (net):
Taxes 329,365 - - - 329,365
TOTAL ASSETS 3,695,070 53,232 3,376,019 480,840 7,605,161
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Vouchers payable
Retainage payable
TOTAL LIABILITIES
- - 33,853
- 33,853
- 25,886
- 25,886
- 59,739
- 59,739
Fund Balance:
Restricted 3,695,070 53,232 2,997,772 - 6,746,074
Committed - - 318,508 480,840 799,348
TOTAL FUND BALANCES 3,695,070 53,232 3,316,280 480,840 7,545,422
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 3,695,070 $ 53,232 $ 3,376,019 $ 480,840 $ 7,605,161
Citv of Federal Wav / 84
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For Year Ended December 31, 2015
REVENUES
Taxes
Intergovernmental
Service charges and fees
Fines and forfeitures
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
General government
Security of persons and property
Transportation
Physical environment
Economic environment
Health
Culture and recreation
Capital outlay
TOTAL EXPENDITURES
Special
Capital
Revenue
Projects
Total
$ 443,837
$ 3,031,159
$ 3,474,996
1,316,642
-
1,316,642
1,975,137
88,117
2,063,254
3,012,004
-
3,012,004
9,654
12,372
22,026
331,541
86,961
418,502
7,088,815
3,218,609
10,307,424
11,747
102,108
113,855
1,545,084
-
1,545,084
1,786,100
-
1,786,100
478,807
-
478,807
91,042
-
91,042
633,566
-
633,566
2,337,715
141,491
2,479,206
140,109
1,237,609
1,377,718
7,024,170
1,481,208
8,505,378
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 64,645 1,737,401 1,802,046
OTHER FINANCING SOURCES (USES)
Transfers in
1,182,639
568,464
1,751,103
Transfers out
(908,770)
(3,704,841)
(4,613,611)
TOTAL OTHER FINANCING
SOURCES (USES)
273,869
(3,136,377)
(2,862,508)
NET CHANGE IN FUND BALANCES
338,514
(1,398,976)
(1,060,462)
FUND BALANCES - BEGINNING
6,667,770
8,944,398
15,612,168
FUND BALANCES - ENDING
$ 7,006,284
$ 7,545,422
$ 14,551,706
Citv ofFederal Wav / 85
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For Year Ended December 31, 2015
Special
Arterial
Solid Waste
Contracts/
Hotel/Motel
Street
Recycling
Studies
Lodging Tax
REVENUES
Taxes $
-
$ -
$ -
$ 266,053
Intergovernmental
501,147
180,903
-
-
Service charges and fees
63,750
302,083
85,374
-
Fines and forfeitures
-
-
-
-
Interest
290
215
637
596
Other
-
328
-
15,001
TOTAL REVENUES
565,187
483,529
86,011
281,650
EXPENDITURES
Current:
General government
-
-
11,747
-
Security of persons and property
-
-
-
-
Transportation
1,336,391
-
-
-
Physical environment
-
478,807
-
-
Economic environment
-
-
-
91,042
Health
-
-
-
-
Culture and recreation
-
-
-
-
Capital outlay
-
-
50,970
89,139
TOTAL EXPENDITURES
1,336,391
478,807
62,717
180,181
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(771,204)
4,722
23,294
101,469
OTHER FINANCING SOURCES (USES)
Transfers in
760,885
-
-
-
Transfers out
-
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
760,885
-
-
-
NET CHANGE IN FUND BALANCES
(10,319)
4,722
23,294
101,469
FUND BALANCES - BEGINNING
308,706
204,135
435,061
400,296
FUND BALANCES - ENDING $
298,387
$ 208,857
$ 458,355
$ 501,765
Citv of Federal Wav / 86
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For Year Ended December 31, 2015
REVENUES
Taxes
Intergovernmental
Service charges and fees
Fines and forfeitures
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
General government
Security of persons and property
Transportation
Physical environment
Economic environment
Health
Culture and recreation
Capital outlay
TOTAL EXPENDITURES
Federal way Community Paths and
Community Traffic Development Trails
Center Safety Block Grant Reserve Total
$ - $ - $ - $ 177,784 $ 443,837
625,079 9,513 1,316,642
1,523,930 - - - 1,975,137
- 3,012,004 - - 3,012,004
2,351 5,161 5 399 9,654
316,212 - - - 331,541
1,842,493 3,017,165 625,084 187,696 7,088,815
11,747
- 1,545,084 - - 1,545,084
449,709 - - 1,786,100
- - - - 478,807
- - 91,042
- - 633,566 - 633,566
2,337,715 - - - 2,337,715
- - - - 140,109
2,337,715 1,994,793 633,566 - 7,024,170
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (495,222) 1,022,372 (8,482) 187,696 64,645
OTHER FINANCING SOURCES (USES)
Transfers in
421,754
-
- - 1,182,639
Transfers out
-
(908,770)
- - (908,770)
TOTAL OTHER FINANCING
SOURCES (USES)
421,754
(908,770)
- - 273,869
NET CHANGE IN FUND BALANCES
(73,468)
113,602
(8,482) 187,696 338,514
FUND BALANCES - BEGINNING
1,573,469
3,500,514
48,924 196,665 6,667,770
FUND BALANCES - ENDING
$ 1,500,001
$ 3,614,116 $
40,442 $ 384,361 $ 7,006,284
Citv ofFederal Wav / 87
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
For Year Ended December 31,
2015
Real Estate
Excise Tax
City
Capital Project
Fund
Facilities
Parks
Reserve
Total
REVENUES
Taxes
$ 3,031,159
$ -
$ -
$ -
$ 3,031,159
Service charges and fees
-
-
88,117
-
88,117
Interest
5,284
274
6,141
673
12,372
Other
-
-
86,961
-
86,961
TOTAL REVENUES
3,036,443
274
181,219
673
3,218,609
EXPENDITURES
Current:
General government
-
102,108
-
-
102,108
Culture and recreation
-
141,491
-
141,491
Capital outlay
-
1,237,609
-
1,237,609
TOTAL EXPENDITURES
-
102,108
1,379,100
-
1,481,208
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
3,036,443
(101,834)
(1,197,881)
673
1,737,401
OTHER FINANCING SOURCES (USES)
Transfers in
-
100,000
468,464
-
568,464
Transfers out
(2,892,237)
(144,877)
(667,727)
-
(3,704,841)
TOTAL OTHER FINANCING
SOURCES (USES)
(2,892,237)
(44,877)
(199,263)
-
(3,136,377)
NET CHANGE IN FUND BALANCES
144,206
(146,711)
(1,397,144)
673
(1,398,976)
FUND BALANCES - BEGINNING
3,550,864
199,943
4,713,424
480,167
8,944,398
FUND BALANCES - ENDING
$ 3,695,070
$ 53,232
$ 3,316,280
$ 480,840
$ 7,545,422
Citv of Federal Wav / 88
ARTERIAL STREET
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
Variance with
Budgeted Amounts
Final Budget -
Positive
Original Final
Actual Amounts
(Negative)
REVENUES
Intergovernmental
$ 500,000 $ 500,000
$ 501,147
$ 1,147
Service charges and fees
- -
63,750
63,750
Interest
2,500 2,500
290
(2,210)
TOTAL REVENUES
502,500 502,500
565,187
62,687
EXPENDITURES
Current:
Transportation 1,515,500 1,724,205 1,336,391 387,814
TOTAL EXPENDITURES 1,515,500 1,724,205 1,336,391 387,814
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,013,000) (1,221,705) (771,204) 450,501
OTHER FINANCING SOURCES (USES)
Transfers in 1,013,000 1,013,000 760,885 (252,115)
TOTAL OTHER FINANCING
SOURCES (USES) 1,013,000 1,013,000 760,885 (252,115)
NET CHANGE IN FUND BALANCES
- (208,705)
(10,319)
198,386
FUND BALANCES - BEGINNING
100,000 308,705
308,706
1
FUND BALANCES - ENDING $
100,000 $ 100,000 $
298,387 $
198,387
Citv ofFederal Wav / 89
SOLID WASTE & RECYCLING
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
REVENUES
Intergovernmental
Service charges and fees
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
Physical environment
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
$ 172,200 $ 172,200 $ 180,903 $ 8,703
302,517 302,517 302,083 (434)
- - 215 215
- - 328 328
474,717 474,717 483,529 8,812
470,101 501,031 478,807 22,224
470,101 501,031 478,807 22,224
4,616 (26,314) 4,722 31,036
4,616 (26,314) 4,722 31,036
183,883 204,135 204,135 -
$ 188,499 $ 177,821 $ 208,857 $ 31,036
Citv of Federal Wav / 90
SPECIAL CONTRACTS/STUDIES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
REVENUES
Service charges and fees
Interest
TOTAL REVENUES
EXPENDITURES
Current:
General government
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
$ - $ - $ 85,374 $ 85,374
- - 637 637
86,011 86,011
- 3,250 11,747 (8,497)
78,600 50,970 27,630
- 81.850 62.717 19.133
(81,850) 23,294 105,144
(81,850) 23,294 105,144
- 435,062 435,061 (1)
$ - $ 353,212 $ 458,355 $ 105,143
Citv ofFederal Wav / 91
HOTEL/MOTEL LODGING TAX
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
REVENUES
Taxes
Interest
TOTAL REVENUES
EXPENDITURES
Current:
Economic environment
Capital outlay
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
$ 200,000 $ 200,000 $ 266,053 $ 66,053
300 300 596 296
200,300 200,300 281,650 81,350
200,300 266,296 91,042 175,254
- 89,000 89,139 (139)
200,300 355,296 180,181 175,115
(154,996) 101,469 256,465
- (154,996) 101,469 256,465
245,300 400,296 400,296 -
$ 245,300 $ 245,300 $ 501,765 $ 256,465
Citv of Federal Wav / 92
FEDERAL WAY COMMUNITY CENTER
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
REVENUES
Intergovernmental
Service charges and fees
Interest
Other
TOTAL REVENUES
EXPENDITURES
Current:
Culture and recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
$ 1,518,500 $ 1,540,500 $ 1,523,930 $ (16,570)
- - 2,351 2,351
275,000 320,000 316,212 (3,788)
1,793,500 1,860,500 1,842,493 (18,007)
(142,456)
2,288,724 2,372,224 2,337,715 34,509
2,288,724 2,372,224 2,337,715 34,509
OVER (UNDER) EXPENDITURES (495,224) (511,724) (495,222) 16,502
OTHER FINANCING SOURCES (USES)
Transfers in 405,000 421,754 421,754 -
TOTAL OTHER FINANCING
SOURCES (USES) 405,000 421,754 421,754 -
NET CHANGE IN FUND BALANCES (90,224) (89,970) (73,468) 16,502
FUND BALANCES - BEGINNING 1,636,738 1,573,469 1,573,469 -
FUND BALANCES - ENDING $ 1,546,514 $ 1,483,499 $ 1,500,001 $ 16,502
Ci
Federal Wav / 93
TRAFFIC SAFETY
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
REVENUES
Fines and forfeitures
Interest
TOTAL REVENUES
EXPENDITURES
Current:
Security of persons and property
Transportation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
$ 2,123,643 $ 2,773,643 $ 3,012,004 $ 238,361
- - 5,161 5,161
2,123,643 2,773,643 3,017,165 243,522
1,659,242 1,659,242 1,545,084 114,158
464,402 464,402 449,709 14,693
2,123,644 2,123,644 1,994,793 128,851
OVER (UNDER) EXPENDITURES (1) 649,999 1,022,372 372,373
OTHER FINANCING SOURCES (USES)
Transfers out - (908,770) (908,770) -
TOTAL OTHER FINANCING
SOURCES (USES) - (908,770) (908,770) -
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
(1) (258,771) 113,602 372,373
2,492,758 3,500,515 3,500,514 (1)
FUND BALANCES - ENDING $ 2,492,757 $ 3,241,744 $ 3,614,116 $ 372,372
Citv of Federal Wav / 94
COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
Variance with
Budgeted Amounts
Final Budget -
Positive
Original
Final
Actual Amounts
(Negative)
REVENUES
Intergovernmental $
1,237,072
$ 1,237,072
$ 625,079
$ (611,993)
Interest
-
-
5
5
Other
-
-
-
-
TOTAL REVENUES
1,237,072
1,237,072
625,084
(611,988)
EXPENDITURES
Current:
Health
1,237,072
1,237,072
633,566
603,506
TOTAL EXPENDITURES
1,237,072
1,237,072
633,566
603,506
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
-
-
(8,482)
(8,482)
OTHER FINANCING SOURCES (USES)
Transfers out
-
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
-
-
-
-
NET CHANGE IN FUND BALANCES
-
-
(8,482)
(8,482)
FUND BALANCES - BEGINNING
40,715
48,926
48,924
(2)
FUND BALANCES - ENDING $
40,715
$ 48,926
$ 40,442
$ (8,484)
Citv ofFederal Wav / 95
PATH & TRAILS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
Variance with
Budgeted Amounts
Final Budget -
Positive
Original
Final
Actual Amounts
(Negative)
REVENUES
Taxes $
155,000
$ 155,000
$ 177,784
$ 22,784
Intergovernmental
9,000
9,000
9,513
513
Interest
-
-
399
399
TOTAL REVENUES
164,000
164,000
187,696
23,696
EXPENDITURES
Current:
TOTAL EXPENDITURES
-
-
-
-
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
164,000
164,000
187,696
23,696
OTHER FINANCING SOURCES (USES)
Transfers out
-
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
-
-
-
-
NET CHANGE IN FUND BALANCES
164,000
164,000
187,696
23,696
FUND BALANCES - BEGINNING
14,439
196,664
196,665
1
FUND BALANCES - ENDING $
178,439
$ 360,664
$ 384,361
$ 23,697
Citv ofFederal Wav /96
CITY OF
Federal Way
It's all within reach
THIS PAGE IS LEFT D4T=ONALLY BLANK
Citv ofFederal Wav / 97
Budget and Actual — Debt Service Fund Description
For the Year Ended December 31, 2015
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. Revenues for this fund consist of transfers from Real Estate Excise Tax
Fund, transfers from the Utility Tax Fund, and/or other revenues designated by the City Council.
Citv of Federal Wav / 98
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For Year Ended December 31, 2015
Variance with
Budgeted Amounts
Final Budget -
Positive
Original
Final
Actual Amounts
(Negative)
REVENUES
Interest $
-
$ -
$ 851
$ 851
TOTAL REVENUES
-
-
851
851
EXPENDITURES
Debt service:
-
-
Principal
364,573
364,573
640,482
(275,909)
Interest/fiscal charges/admin fees
675,000
675,000
364,998
310,002
TOTAL EXPENDITURES
1,039,573
1,039,573
1,005,480
34,093
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(1,039,573)
(1,039,573)
(1,004,629)
34,944
OTHER FINANCING SOURCES (USES)
Transfers in
1,838,813
2,437,240
2,402,722
(34,518)
Transfers out
-
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
1,838,813
2,437,240
2,402,722
(34,518)
NET CHANGE IN FUND BALANCES
799,240
1,397,667
1,398,093
426
FUND BALANCES - BEGINNING
39,443
73,486
73,486
-
FUND BALANCES - ENDING $
838,683
$ 1,471,153
$ 1,471,579
$ 426
Citv ofFederal Wav / 99
Combining Statement — Internal Service Fund's Description
For the Year Ended December 31, 2015
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.
The Risk Management Fund accounts for the City's risk financing activities established to minimize adverse
effects of losses associated with property and casualty, and worker's compensation claims. Both risk control (to
minimize the losses that strike an organization) and risk financing (to obtain finances to provide for or restore the
economic damages of those losses) are involved. 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/operating 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/operating costs and
depreciation recovery will be charged City departments and funds.
The Health Insurance Fund accounts for all self -insuring for medical insurance. The premiums paid by the City's
medical benefit contributions and employee medical deductions reimburse the medical and pharmaceutical
reimbursements. Also, establish reserves for the payment of estimated future claims.
The Unemployment Insurance Fund is currently self -insuring 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.
Citv of Federal Wav / 100
INTERNAL SERVICE FUNDS
COMBINING
STATEMENT OF NET POSITION
December 31,
2015
Risk
Information
Support
Fleet and
Management
Systems
Services
Equipment
ASSETS
Current Assets
Equity in pooled cash & investments
$ 995,576
$ 4,102,380 $
190,918
$ 6,029,914
Prepaid items
-
-
5,000
-
Due from other governments
-
16,227
-
-
TOTAL CURRENT ASSETS
995,576
4,118,607
195,918
6,029,914
Noncurrent assets
Capital assets:
Building/structures
-
-
-
-
Machinery/furniture/equipment
7,145,674
293,616
10,624,288
Less accumulated depreciation
(5,745,696)
(122,960)
(6,164,278)
TOTAL NONCURRENT ASSETS
1,399,978
170,656
4,460,010
TOTAL ASSETS
995,576
5,518,585
366,574
10,489,924
DEFERRED OUTFLOWS RELATED TO
PENSIONS
-
68,796
-
3,391
LIABILITIES
Current Liabilities:
Vouchers/payroll payable
20,278
256,172
3,779
32,248
TOTAL CURRENT LIABILITIES
20,278
256,172
3,779
32,248
Long-term liabilities
Compensated absences payable
54,761
-
Net Pension Liability
464,562
22,902
TOTAL LONG-TERM LIABILITIES
- 519,323
22,902
TOTAL LIABILITIES
20,278 775,495
3,779
55,150
DEFERRED INFLOWS RELATED TO
PENSIONS
- 71,628
-
3,531
NET POSITION
Net Investment in capital
- 1,399,978
170,656
4,460,010
Unrestricted
975,298 3,340,280
192,139
5,974,624
TOTAL NET POSITION
$ 975,298 $ 4,740,258
$ 362,795
$ 10,434,634
Federal Wav / 101
INTERNAL SERVICE FUNDS
COMBINING
STATEMENT OF NET POSITION
December 31, 2015
Buildings and
Self Health
Unemployment
Furnishings
Insurance
Insurance
TOTAL
ASSETS
Current Assets
Equity in pooled cash & investments
$ 1,883,460
$ 1,814,766
$ 2,141,368
$ 17,158,382
Prepaid items
-
-
-
5,000
Due from other governments
22,488
38,715
TOTAL CURRENT ASSETS
1,905,948
1,814,766
2,141,368
17,202,097
Noncurrent assets
Capital assets:
Building/structures
16,555,481
-
-
16,555,481
Machinery/furniture/equipment
18,063,578
Less accumulated depreciation
(8,726,511)
(20,759,445)
TOTAL NONCURRENT ASSETS
7,828,970
13,859,614
TOTAL ASSETS
9,734,918
1,814,766
2,141,368
31,061,711
DEFERRED OUTFLOWS RELATED TO
PENSIONS
4,934
77,121
LIABILITIES
Current Liabilities:
Vouchers/payroll payable
28,124
73,279
10,070
423,950
TOTAL CURRENT LIABILITIES
28,124
73,279
10,070
423,950
Long-term liabilities
Compensated absences payable
-
54,761
Net Pension Liability
33,318
520,782
TOTAL LONG-TERM LIABILITIES
33,318 -
575,543
TOTAL LIABILITIES
61,442 73,279 10,070
999,493
DEFERRED INFLOWS RELATED TO
PENSIONS
5,137 - -
80,296
NET POSITION
Net Investment in capital
7,828,970
13,859,614
Unrestricted
1,844,303 1,741,487 2,131,298
16,199,429
TOTAL NET POSITION
$ 9,673,273 $ 1,741,487 $ 2,131,298
$ 30,059,043
Citv of Federal Wav / 102
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For Year Ended December 31,
2015
Risk
Information
Support
Fleet and
Management
Systems
Services
Equipment
OPERATING REVENUES:
Service charges and fees
$ 924,443
$ 1,970,529
$ 132,923
$ 2,055,856
Intergovernmental
-
-
-
-
Miscellaneous
44,285
26,750
TOTAL OPERATING REVENUES
968,728
1,997,279
132,923
2,055,856
OPERATING EXPENSES:
Personal services
-
811,203
-
41,864
Materials and supplies
-
202,810
19,035
387,986
Services and charges
85,278
602,207
80,314
350,743
Intergovernmental
-
133,356
-
796
Insurance
509,601
-
-
Claims
712,690
-
-
-
Depreciation
-
371,460
31,291
915,255
TOTAL OPERATING EXPENSES
1,307,569
2,121,036
130,640
1,696,644
OPERATING INCOME (LOSS)
(338,841)
(123,757)
2,283
359,212
NON -OPERATING REVENUES (EXPENSES):
Gain (Loss) from disposal of capital assets
-
-
-
52,381
Interest income
1,148
5,625
267
8,592
TOTAL NON -OPERATING REVENUES (EXPENSES) 1,148
5,625
267
60,973
INCOME (LOSS) BEFORE TRANSFERS
(337,693)
(118,132)
2,550
420,185
Capital contributions
68,694
-
141,426
Transfers in
-
72,308
Transfers out
(33,308)
-
-
CHANGE IN NET POSITION
(371,001)
(49,438)
2,550
633,919
NET POSITION - BEGINNING
1,346,299
5,252,283
360,245
9,823,520
Net Effect - Change in Accounting for Pensions
(462,587)
(22,805)
ADJUSTED NET POSITION - BEGINNING
1,346,299
4,789,696
360,245
9,800,715
NET POSITION - ENDING
$ 975,298
$ 4,740,258
$ 362,795
$ 10,434,634
Federal Wav / 103
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For Year Ended December 31, 2015
Buildings and
Health
Unemployment
Furnishings
Insurance
Insurance
TOTAL
OPERATING REVENUES:
Service charges and fees
$ 424,585 $
4,482,692
$ 257,366
$ 10,248,394
Intergovernmental
-
-
-
-
Miscellaneous
22,489
93,524
TOTAL OPERATING REVENUES
447,074
4,482,692
257,366
10,341,918
OPERATING EXPENSES:
Personal services
51,754
-
-
904,821
Materials and supplies
38,148
-
-
647,979
Services and charges
307,699
3,748,915
41,202
5,216,358
Intergovernmental
-
26,065
-
160,217
Insurance
-
509,601
Claims
-
712,690
Depreciation
826,996
2,145,002
TOTAL OPERATING EXPENSES
1,224,597
3,774,980
41,202
10,296,668
OPERATING INCOME (LOSS)
(777,523)
707,712
216,164
45,250
NON -OPERATING REVENUES (EXPENSES):
Gain (Loss) from disposal of capital assets
-
-
-
52,381
Interest income
2,636
2,022
2,843
23,133
TOTAL NON -OPERATING REVENUES (EXPENSES) 2,636
2,022
2,843
75,514
INCOME (LOSS) BEFORE TRANSFERS
(774,887)
709,734
219,007
120,764
Capital contributions
-
-
210,120
Transfers in
72,308
Transfers out
(33,308)
CHANGE IN NET POSITION
(774,887)
709,734
219,007
369,884
NET POSITION - BEGINNING
10,481,337
1,031,753
1,912,291
30,207,728
Net Effect - Change in Accounting for Pensions
(33,177)
(518,569)
ADJUSTED NET POSITION - BEGINNING
10,448,160
1,031,753
1,912,291
29,689,159
NET POSITION - ENDING
$ 9,673,273 $
1,741,487
$ 2,131,298
$ 30,059,043
Citv of Federal Wav / 104
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For Year Ended December 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash payments to claimants
Cash payments to suppliers for goods/services
Cash payments to employees
Cash payments to other governments for goods and services
Other operating receipts
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
Transfers out
NET CASH PROVIDED BY NONCAPITAL FINANCING
CASH FLOWS FROM CAPITAL AND CAPITAL -
RELATED FINANCING ACTIVITIES:
Acquisition of capital asset/construction work in progress
Proceeds from the sale of capital assets
NET CASH USED FOR CAPITAL AND CAPITAL -
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
NET CASH PROVIDED BY INVESTING ACTIVITIES
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income/(loss)
Adjustments to reconcile operating income to net cash
provided/(used) by operating activities:
Increases/(decrease)in depreciation expense
(Increases)/decrease in accounts receivable
(Increases)/decrease in due from other governments
(Increases)/decrease in deferred outflows related to pensions
Increases/(decrease) in vouchers/accounts payable
Increases/(decrease)in retainage payable
Increases/(decrease)in deposits payable
Increases/(decrease)in deferred revenue
Increases/(decrease) in accrued payroll/compensated absences payable
Increases/(decrease) in net pension liability
Increases/(decrease) in deferred inflows related to pensions
TOTAL ADJUSTMENTS
NET CASH PROVIDED/USED BY OPERATING ACTIVITIES
Non -cash investing, capital, and financing activities:
Other contributions of capital assets
Risk Information Support Fleet and
Management Systems Services Equipment
$ 924,447 $
1,970,530 $ 132,923
$ 2,055,856
(712,690)
- -
-
(73,586)
(581,101) (102,975)
(740,100)
-
(797,284) -
(41,626)
(509,601)
(133,356) -
-
44,281
10,525 -
-
(327,149)
469,314 29,948
1,274,130
72,308
(33,308) - - -
(33,308) - - 72,308
(389,463) (60,554) (1,873,715)
- - - 52,381
(389,463) (60,554) (1,821,334)
1,148 5,625 269 8,590
1,148 5,625 269 8,590
(359,309) 85,476 (30,337) (466,306)
1,354,885 4,016,905 221,255 6,496,220
995,576 4,102,380 190,918 6,029,914
(338,841) (123,755) 2,283 359,212
- 371,460 31,291
915,255
- (16,227) -
-
- (44,411) -
(2,189)
11,692 223,916 (3,626)
(574)
- 9,113 -
-
- 127,214 -
6,271
- (77,996) -
(3,845)
11,692 593,069 27,665
914,918
$ (327,149) $ 469,314 $ 29,948 $ 1,274,130
$ - $ 68,693 $ - $ 141,426
Federal Wav / 105
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For Year Ended December 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash payments to claimants
Cash payments to suppliers for goods/services
Cash payments to employees
Cash payments to other governments for goods and services
Other operating receipts
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
Transfers out
NET CASH PROVIDED BY NONCAPITAL FINANCING
CASH FLOWS FROM CAPITAL AND CAPITAL -
RELATED FINANCING ACTIVITIES:
Acquisition of capital asset/construction work in progress
Proceeds from the sale of capital assets
NET CASH USED FOR CAPITAL AND CAPITAL -
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Receipts of interest
NET CASH PROVIDED BY INVESTING ACTIVITIES
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income/(loss)
Adjustments to reconcile operating income to net cash
provided/(used) by operating activities:
Increases/(decrease) in depreciation expense
(Increases)/decrease in accounts receivable
(Increases)/decrease in due from other governments
(Increases)/decrease in deferred outflows related to pensions
Increases/(decrease) in vouchers/accounts payable
Increases/(decrease)in retainage payable
Increases/(decrease) in deposits payable
Increases/(decrease)in deferred revenue
Increases/(decrease) in accrued payroll/compensated absences payable
Increases/(decrease) in net pension liability
Increases/(decrease) in deferred inflows related to pensions
TOTAL ADJUSTMENTS
NET CASH PROVIDED/USED BY OPERATING ACTIVITIES
Non -cash investing, capital, and financing activities:
Other contributions of capital assets
Buildings and Health Unemployment
Furnishings Insurance Insurance TOTAL
$ 402,096
$ 4,482,692 $
257,366 $ 10,225,910
-
-
- (712,690)
(346,614)
(3,791,076)
(31,133) (5,666,584)
(51,409)
-
- (890,319)
-
(26,065)
- (669,022)
22,488
-
- 77,294
26,562
665,551
226,233 2,364,589
72,308
- - - (33,308)
- - 39,000
(2,323,732)
- 52,381
(2,271,351)
2,635 2,022 2,844 23,133
2,635 2,022 2,844 23,133
29,197 667,573 229,077 155,371
1,854,263 1,147,193 1,912,291 17,003,012
1,883,460 1,814,766 2,141,368 17,158,382
(777,524) 707,712 216,164 45,251
826,996 -
- 2,145,002
(22,488) -
- (38,715)
(3,185) -
- (49,785)
(767) (42,161)
10,069 198,550
- -
9,113
9,124
142,609
(5,595)
- (87,436)
804,085 (42,161)
10,069 2,319,338
$ 26,561 $ 665,551 $ 226,233 $ 2,364,589
$ 210,119
Citv ofFederal Wav / 106
CITY OF
Federal Way
It's all within reach
THIS PAGE IS LEFT D4T=ONALLY BLANK
Federal Wav / 107
SUPPLEMENTAL INFORMATION
Citv ofFederal Wav / 108
MCAG NO. 0711
SCHEDULE 15
CITY OF FEDERAL WAY, WASHINGTON
SCHEDULE OF STATE FINANCIAL ASSISTANCE
For Year Ended December 31, 2015
State Agency
Pass-Thru Agency (if applicable)
Other I.D./
Current Year
Program Title BARS Account
Grant #
Expenditures
Washington Office of Sheriffs and Police Chiefs
Wa Auto Theft Prevention Authority Grant 001-0000-090-334-06-090
n/a
113,248
SUBTOTAL WASHINGTON OFFICE OF SHERIFFS AND POLICE CHIEFS
113,248
State Department of Ecology
Coordinated Prevention Grant 106-0000-000-334-03-010
n/a
92,944
2013-15 Municipal Stormwater Capacity Grant 401-0000-000-334-03-010
n/a
13,170
SUBTOTAL STATE DEPARTMENT OF ECOLOGY
106,114
State Department of Transportation
Commute Trip Reduction 101-0000-000-334-03-060
n/a
16,555
S 352nd Street Extension from SR99 to SR161 306-4400-151-334-03-080
n/a
259,625
SUBTOTAL STATE DEPARTMENT OF TRANSPORTATION
276,180
TOTAL STATE ASSISTANCE:
495,5421
Federal Wav / 109
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Citv of Federal Wav / 110
e I. -BASIS OF ACCOUNTING
Schedule of Financial Assistance is prepared on the same basis of accounting as the City of Federal Way's financial statements. The City uses the modified accrual basis of accounting, which is the basis
pted to governmental fund -type measurement focus. All grants reported on this schedule have been accounted for in governmental fund types. Grant revenues are determined to be earned and available at
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.
ote 2: Program Costs
ie amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the City of Federal Way's portion, are more than shown. Such
(penditures are recognized following, as applicable, either the cost principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or
,e limited as to reimbursement.
3: Indirect Cost Rate
City of Federal Way did not use the new 10 % de minimis indirect cost rate as covered in 200.414 Indirect (F&A) cosls,and is currently only charging direct costs to grants received.
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CAPITAL ASSETS USED IN THE
OPERATION
OF GOVERNMENTAL FUNDS
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CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
COMPARATIVE SCHEDULE BY SOURCE
December 31, 2015
GOVERNMENTAL FUNDS CAPITAL ASSETS
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in progress
TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS
INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE:
General Fund
Special Revenue Funds
Capital Project Funds
Donations
TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS
2015 2014
$ 279,352,222
$312,907,345
23,193,682
842,818
25,091,751
44,323,111
-
184,000
169,816,179
165,313,474
15,697,231
22,875, 804
513,151,065 546,446,552
125,244,871
125,244, 871
252,375,395
252,375,395
94,115,397
135,202,658
41,415,402
33,623,628
$ 513,151,065 $ 546,446,552
This schedule presents only the historical cost of capital asset balances (no depreciation expenses) related to
governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of the internal service funds are included as governmental
activities in the statement of net assets.
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CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
December 31, 2015
Improvements
Machinery
Construction
Other than
and
in
Total
Total
Function and Activity
Land Buildings
Buildings
Equipment Infrastructure
Progress
2015
2014
GENERAL GOVERNMENT
Miscellaneous general government
$ 26,807,597 $
$ 19,973
$ $ 6,139,001
$ 5,483,190
$ 38,449,761
$36,157,654
Total General Government:
26,807,597
19,973
6,139,001
5,483,190
38,449,761
36,157,654
CULTURE AND RECREATION
Culture and Recreation
113,723,537 23,193,682
25,071,778
94,474,128
1,463,651
257,926,776
264,118,173
Total Culture and Recreation:
113,723,537 23,193,682
25,071,778
94,474,128
1,463,651
257,926,776
264,118,173
TRANSPORTATION
Streets and Traffic
138,821,088 -
-
69,203,050
8,750,390
216,774,528
246,170,725
Total Transportation:
138,821,088
69,203,050
8,750,390
216,774,528
246,170,725
Total General Fixed Asset by Function: $ 279,352,222 $ 23,193,682 $ 25,091,751 $ - $ 169,816,179 $ 15,697,231 $ 513,151,065 $ 546,446,552
This schedule presents only the historical cost of capital asset balances (no depreciation expenses) related to governmental funds. Accordingly, the capital assets reported in
internal service funds are excluded from the above amounts. Generally, the capital assets of the internal service funds are included as governmental activities in the statement
of net assets.
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CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 2015
GENERAL GOVERNMENT
Miscellaneous general government
TOTAL GENERAL GOVERNMENT
CULTURE AND RECREATION
TOTAL CULTURE AND RECREATION
TRANSPORTATION
Streets and traffic
TOTAL TRANSPORTATION
TOTAL GENERAL FIXED ASSETS
Governmental
Funds
Capital Assets
1/1/2015 Additions Deductions
Governmental
Funds
Capital Assets
12/31/2015
$36,157,654 $ 2,292,107 $ - $ 38,449,761
36,157,654 2,292,107 - 38,449,761
264,118,173 - 6,191,397 257,926,776
264,118,173 - 6,191,397 257,926,776
246,170,725 - 29,396,197 216,774,528
246,170,725 - 29,396,197 216,774,528
$ 546,446,552 $ 2,292,107 $ 35,587,594 $ 513,151,065
This schedule presents only the historical cost of capital asset balances (no depreciation expenses) related to
governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of the internal service funds are included as governmental
activities in the statement of net assets.
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Statistical Section
The statistical section presents detailed information as a context for understanding what the information in the financial
statements and note disclosures say about the City's overall financial health. The following are the five categories of
information presented in this section.
Financial Trends — These schedules contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue Capacity — These schedules contain information to help the reader assess the City's most significant local revenue
sources, property tax and sales tax.
Debt Capacity — These schedules present information to help the reader assess the affordability of the City's current levels
of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information — These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place.
Operating Information — These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the city provides and the activities it performs.
Citv of Federal Wav / 116
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net assets
Source: City of Federal Way Finance
Note: All amounts are reported on the accrual basis.
NET POSITION BY COMPONENT
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$ 93,835,163 $439,127,122 $456,600,030 $442,704,401 465,671,345 470,074,905 470,597,776 468,628,412 466,078,036 424,245,625
38,359,454 32,269,512 28,434,066 27,476,530 17,442,323 23,941,601 22,847,077 22,594,884 17,391,272 20,193,214
15,051,966 23,651,674 24,773,913 44,282,822 44,613,406 38,602,445 45,027,323 48,829,641 57,837,173 46,012,847
147,246,583 495,048,308 509,808,009 514,463,753 527,727,074 532,618,951 538,472,176 540,052,936 541,306,481 490,451,686
43,697,633 45,264,105 50,494,590 50,578,649 50,563,097 50,052,887 50,280,880 50,620,091 50,299,229 58,998,176
26,439 15,777 42,558 16,366 9,411 18,831 26,496 20,559 20,311 15,906
7,467,417 6,550,179 5,071,617 5,115,275 5,015,367 5,398,786 5,968,302 6,577,269 7,219,403 5,814,364
51,191,489 51,830,061 55,608,765 55,710,290 55,587,875 55,470,504 56,275,678 57,217,919 57,538,943 64,828,447
137,532,796 484,391,227 507,094,620 493,283,050 516,234,442 520,127,792 520,878,656 519,248,503 516,377,265 483,243,801
38,385,893 32,285,289 28,476,624 27,492,896 17,451,734 23,960,432 22,873,573 22,615,443 17,411,583 20,209,120
22,519,383 30,201,853 29,845,530 49,398,097 49,628,773 44,001,231 50,995,625 55,406,910 65,056,576 51,827,212
$ 198,438,072 $546,878,369 $565,416,774 $570,174,043 $583,314,949 $588,089,455 $ 594,747,853 $ 597,270,856 $ 598,845,424 $555,280,133
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Expenses
Governmental activities:
General government
Security of persons and property
Transportation
Physical environment
Economic environment
Health and human svcs
Culture and recreation
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Surface Water Mgmt
Dumas Bay Center
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services
General Government
Security of Persons & Property
Transportation
Physical Environment
Economic Environment
Health
Culture & Recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
CHANGES IN NET POSITION
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$ 4,364,710 $ 4,506,800 $5,606,797 $4,566,457 $ 4,865,827 $ 4,448,449 $ 4,300,691 $ 4,575,614 $ 4,633,942 $ 4,743,932
19,906,722 23,107,683 24,745,284 26,341,614 26,842,240 27,222,584 27,604,936 27,894,695 29,703,386 32,017,617
5,628,100 9,986,067 7,891,298 9,448,397 9,781,800 13,539,598 9,946,776 9,675,727 11,434,659 13,070,260
313,388 336,588 370,718 450,914 451,470 424,466 415,935 490,916 443,127 476,570
3,162,089 3,319,955 3,382,572 3,560,620 3,175,005 2,782,435 2,645,478 2,191,487 2,785,807 2,973,437
622,761 684,984 705,976 776,854 767,108 690,643 754,727 1,683,449 1,056,802 1,618,759
5,172,663 6,506,137 6,955,442 8,089,242 8,073,804 8,105,578 8,081,401 8,418,920 8,376,205 8,959,555
1,420,691 1,122,358 901,161 811,124 685,214 614,571 602,572 1,779,833 1,010,406 461,763
40,591,124 49,570,572 50,559,248 54,045,222 54,642,468 57,828,324 54,352,517 56,710,640 59,444,335 64,321,893
3,142,613 3,454,193 4,060,440 3,345,027 3,384,352 3,527,590 3,272,514 3,234,742 3,653,999 4,093,534
925,825 980,588 1,045,250 984,103 849,176 890,738 873,144 844,623 945,705 1,250,161
4,068,438 4,434,781 5,105,690 4,329,130 4,233,528 4,418,328 4,145,658 4,079,365 4,599,703 5,343,694
44,659,562 54,005,353 55,664,938 58,374,352 58,875,996 62,246,652 58,498,175 60,790,005 64,044,038 69,665,587
1,052,641
3,510,339
$2,313,939
$873,258
975,515
816,140
924,966
1,983,033
2,118,896
1,994,674
4,800,920
2,110,164
2,309,406
5,037,388
5,381,407
4,985,320
5,937,100
5,022,896
4,637,071
5,295,641
1,357,333
3,119,637
513,340
1,806,846
1,961,083
2,484,058
2,139,292
577,489
1,804,199
1,362,118
75,580
-
262,847
86,230
90,512
77,875
89,457
299,337
305,742
302,083
762,603
1,009,707
1,962,624
680,908
636,534
510,483
568,973
2,201,375
3,059,772
2,698,841
150,192
-
-
148,579
153,792
126,710
162,322
-
-
-
1,247,495
531,041
2,561,685
1,546,931
1,618,659
1,487,099
1,738,098
2,431,603
2,476,383
2,475,852
1,512,394
22,858
1,538,476
2,172,168
9,718,920
4,597,981
5,367,163
6,007,682
5,410,098
6,544,176
5,973,071
11,457,030
8,933,154
8,452,149
9,044,477
9,716,551
5,225,265
3,892,651
5,632,549
4,508,428
16,932,229
21,760,776
20,395,471
20,804,457
29,580,898
24,802,216
22,152,636
22,416,065
25,444,710
25,181,813
Business -type activities:
Charges for services
4,130,179
3,667,168
4,473,453
4,183,012
4,246,235
4,020,144
4,222,726
4,096,751
4,174,613
4,662,995
Operating grants and contributions
1,113,010
632,185
-
-
-
265,660
576,182
774,436
177,518
17,108
Capital grants and contributions
222,474
430,090
328,130
Total business -type activities program revenues
5,243,189
4,521,827
4,473,453
4,183,012
4,246,235
4,285,804
4,798,908
4,871,187
4,782,221
5,008,233
22,175,418
26,282,603
24,868,924
24,987,469
33,827,133
29,088,020
26,951,544
27,287,252
30,226,931
30,190,046
Net (Expense)/Revenue
Governmental activities
(23,658,895)
(27,809,796)
(30,163,777)
(33,240,765)
(25,061,570)
(33,026,108)
(32,199,881)
(34,294,574)
(33,999,625)
(39,140,080)
Business -type activities
1,174,751
87,046
(632,237)
(146,118)
12,707
(132,524)
653,250
791,822
182,517
(335,461)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Sales tax
Local Criminal Justice Sales Tax
Utility tax
Property tax
Real estate excise tax
Gambling Tax
Hotel/Motel Tax
Leasehold tax
Other
Transfers
Total governmental activities
Business -type activities:
Other
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Prior Period Adjustment
Net Effect - Change in Accounting for Pensions
Total primary government
Source: City of Federal Way Finance
Note: All amounts are reported on the accrual basis.
12,409,719 13,048,624 12,144,276 10,583,298 10,708,951 10,858,381 10,534,147 11,346,338 12,173,281 13,297,086
1,953,822 2,145,383 2,051,524 1,743,893 1,701,120 1,795,971 1,864,991 1,992,667 2,138,406 2,319,124
9,043,449 12,796,461 13,469,136 13,549,472 12,890,310 13,068,510 13,083,179 12,584,293 12,028,878 11,796,550
8,892,558 9,059,734 9,397,456 9,653,537 9,609,740 9,867,614 10,052,109 10,152,114 10,349,905 10,460,136
5,499,911 4,898,537 2,590,310 1,428,985 1,403,361 1,560,395 1,507,313 2,034,033 2,062,722 3,031,159
1,363,468 1,489,952 1,259,783 1,127,203 493,486 511,005 114,443 178,696 176,068 177,807
175,219 191,691 188,833 154,148 149,058 185,289 193,344 208,839 231,828 266,053
4,592 7,254 5,712 4,999 5,757 6,259 5,820 5,989 6,693 6,104
3,221,392 6,971,413 6,502,869 2,020,751 1,210,341 1,061,026 838,259 868,261 1,145,798 2,052,748
(107,581) (185,495) 123,518 (200,907) 152,768 (113,000) (140,500) (137,419) (116,000) (17,959)
42,456,549 50,423,554 47,733,417 40,065,379 38,324,892 38,801,450 38,053,106 39,233,811 40,197,580 43,388,808
388,729 366,031 3,447,458 46,736 17,646 12,405 11,424 13,000 22,507 24,917
107,581 185,495 (123,518) 200,907 (152,768) 113,000 140,500 137,419 116,000 17,959
496,310 551,526 3,323,940 247,643 (135,122) 125,405 151,924 150,419 138,507 42,876
$ 42,952,859 $ 50,975,080 $ 51,057,357 $40,313,022 $ 38,189,770 $ 38,926,855 $ 38,205,030 $ 39,384,230 $ 40,336,087 $ 43,431,684
$ 18,797,654 $ 22,613,758 $ 17,569,640 $ 6,924,613 $ 13,263,321 $ 5,775,342 $ 5,853,224 $ 4,939,237 $ 6,197,955 $ 4,248,728
1,671,061 638,572 2,691,703 101,525 (122,415) (7,119) 805,174 942,241 321,025 (292,585)
- - (1,722,939) (2,168,769) - (3,358,477) (4,944,409) (37,035,737)
- - - - - - (10,485,698)
$ 20,468,715 $ 23,252,330 $ 18,538,404 $ 4,757,370 $ 13,140,907 $ 5,768,223 $ 6,658,398 $ 2,523,001 $ 1,574,570 $(43,565,292)
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GOVERNMENT -WIDE REVENUES BY SOURCE AND EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Program Revenues
Charges for Services $ 4,130,179 $14,580,241 $ 14,397,294 $ 14,363,151 15,063,736 14,507,828 15,782,934 16,612,484 18,576,675 18,792,204
Operating Grants and Contributions 2,625,404 246,305 1,538,476 2,172,168 9,718,920 4,863,641 5,943,345 6,782,118 5,587,616 6,561,284
Capital Grants and Contributions 5,973,071 11,457,030 8,933,154 8,452,149 9,044,477 9,716,551 5,225,265 3,892,651 6,062,639 4,836,558
General revenues
Sales tax
Local Criminal Justice Sales Tax
Utility tax
Property tax
Real estate excise tax
Gambling Tax
Hotel/Motel Tax
Leasehold tax
Other revenue
Unrestricted Grants & Contribution
Investment Earnings
Disposition of capital assets
Total Revenues
Expenses/Expenditures
General Government
Security of Persons & Property
Transportation
Physical Environment
Economic Environment
Health
Culture & Recreation
Interest on long-term debt
Surface Water Management
Dumas Bay Centre
Total Expenses/Expenditures
Source: City of Federal Way Finance
12,409,719 13,048,624 12,144,276 10,583,298 10,708,951 10,858,381 10,534,147 11,346,338 12,173,281 13,297,086
1,953,822 2,145,383 2,051,524 1,743,893 1,701,120 1,795,971 1,864,991 1,992,667 2,138,406 2,319,124
9,043,449 12,796,461 13,469,136 13,549,472 12,890,310 13,068,510 13,083,179 12,584,293 12,028,878 11,796,550
8,892,558 9,059,734 9,397,456 9,653,537 9,609,740 9,867,614 10,052,109 10,152,114 10,349,905 10,460,136
5,499,911 4,898,537 2,590,310 1,428,985 1,403,361 1,560,395 1,507,313 2,034,033 2,062,722 3,031,159
1,363,468 1,489,952 1,259,783 1,127,203 493,486 511,005 114,443 178,696 176,068 177,807
175,219 191,691 188,833 154,148 149,058 185,289 193,344 208,839 231,828 266,053
4,592 7,254 5,712 4,999 5,757 6,259 5,820 5,989 6,693 6,104
1,299,548 4,194,183 875,389 1,421,791 1,063,825 960,012 702,833 624,464 883,549 1,820,868
- - 7,448,783 284,350 - - - - - -
3,194,690 3,223,005 1,678,292 385,976 179,373 113,419 146,850 256,797 284,757 256,797
(884,117) (79,744) (52,137) (24,630) (15,211)
55,681,513 77,258,656 75,926,281 65,300,490 72,016,903 68,014,875 65,156,573 66,671,482 70,563,017 73,621,730
4,364,710 4,506,800 5,606,797 4,566,457 4,865,827 4,448,449 4,300,691 4,575,614 4,633,942 4,743,932
19,906,722 23,107,683 24,745,284 26,341,614 26,842,240 27,222,584 27,604,936 27,894,695 29,703,386 32,017,617
5,628,100 9,986,067 7,891,298 9,448,397 9,781,800 13,539,598 9,946,776 9,675,727 11,434,659 13,070,260
313,388 336,588 370,718 450,914 451,470 424,466 415,935 490,916 443,127 476,570
3,162,089 3,319,955 3,382,572 3,560,620 3,175,005 2,782,435 2,645,478 2,191,487 2,785,807 2,973,437
622,761 684,984 705,976 776,854 767,108 690,643 754,727 1,683,449 1,056,802 1,618,759
5,172,663 6,506,137 6,955,442 8,089,242 8,073,804 8,105,578 8,081,401 8,418,920 8,376,205 8,959,555
1,420,691 1,122,358 901,161 811,124 685,214 614,571 602,572 1,779,833 1,010,406 461,763
3,142,613 3,454,193 4,060,440 3,345,027 3,384,352 3,527,590 3,272,514 3,234,742 3,653,999 4,093,534
925,825 980,588 1,045,250 984,103 849,176 890,738 873,144 844,623 945,705 1,250,161
$ 44,659,562 $54,005,353 $ 55,664,938 $ 58,374,352 $ 58,875,996 $ 62,246,652 $ 58,498,175 $ 60,790,005 $ 64,044,038 $ 69,665,587
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FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General fund
Reserved
278,778 125,184 418,207 106,728 -
-
-
-
-
-
Unreserved
6,492,057 7,783,868 5,511,440 8,138,468 -
-
-
-
-
-
Nonspendable
- - - - 81,146
104,012
69,398
76,538
105,417
136,806
Restricted
- - - - 168,398
145,524
60,585
39,081
54,526
71,106
Committed
- - - - -
21,893
21,893
21,893
3,403,937
34,513
Unassigned
8,188,575
12,372,719
14,783,219
16,003,076
12,480,539
14,362,533
Total general fund
6,770,835 7,909,052 5,929,647 8,245,196 8,438,119
12,644,148
14,935,095
16,140,587
16,044,419
14,604,958
All Other Governmental Funds
Reserved
194,463
2,323,184
1,763,667
4,770,399
- - - - - -
Unreserved, reported in.
Special revenue fund:
2,772,153
4,392,623
7,505,799
4,311,238
- - - - - -
Capital projects fund:
31,863,330
30,054,670
26,252,192
22,934,356
- - - - - -
Restricted
-
-
-
-
17,776,967 19,325,489 18,079,168 17,478,394 17,231,330 19,985,302
Committed
-
-
-
-
18,611,612 11,642,248 15,813,105 16,371,292 19,530,016 17,114,881
Assigned
-
-
-
-
100,000 - - - - -
Unassigned
Total all other governmental funds
$ 41,047,292
$ 36,770,477 $
35,521,658 $
32,015,993 $
36,488,580 $ 30,967,736 $ 33,892,273 $ 33,849,686 $ 36,761,346 $ 37,100,183
Source: City of Federal Way Finance
Note: Fund Balance reclassification implementation of GASB 54 for year's 2010 and fonear
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CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal
Years
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Revenues
Taxes
$ 39,334,751
$ 43,584,824
$ 41,071,781
$ 38,192,852
$ 37,122,069
$ 37,831,045
$ 37,450,059
$ 38,505,413
$ 39,241,915
$ 41,387,894
Licenses, fees and permits
2,089,844
2,939,328
2,195,068
2,163,984
2,547,655
2,209,873
2,501,368
2,638,017
3,311,671
3,574,648
Intergovernmental
8,047,243
15,494,887
10,520,570
11,127,718
18,648,749
11,713,248
7,631,014
9,682,511
9,929,833
8,910,603
Charges for services
6,355,262
6,327,552
6,246,207
5,573,647
5,486,632
6,131,287
5,686,962
5,965,726
7,591,795
6,467,528
Fines and Forfeitures
805,598
1,005,293
1,433,628
2,200,092
2,783,214
2,146,524
3,371,878
3,911,990
3,498,596
4,087,033
Investment earnings
2,447,996
2,463,670
1,274,955
271,600
139,698
89,338
122,483
172,049
250,439
210,289
Other revenues
717,922
630,966
875,389
1,599,207
899,092
960,012
702,830
678,850
883,549
1,820,867
Total revenues
59,994,676
72,446,520
63,617,598
61,129,100
67,627,109
61,081,327
57,466,594
61,554,556
64,707,798
66,458,862
Expenditures
General government
Security of persons and property
Transportation
Physical Environment
Economic Environment
Health
Culture and Recreation
Debt Service
Principal
Interest/tiscal charges/admin fee
Capital Outlay
Total expenditures
Excess of revenues over
(under) expenditures
3,944,288
4,364,750
5,197,032
4,518,821
4,857,177
4,234,327
4,402,129
4,495,029
4,444,772
4,707,145
19,909,858
24,183,913
25,470,722
27,051,814
26,892,207
28,332,237
26,562,270
29,028,242
31,235,230
32,471,782
5,373,983
6,631,030
6,634,548
6,165,540
5,700,274
7,427,408
6,039,183
5,672,769
6,209,000
7,109,395
313,388
336,588
370,718
448,873
450,971
427,315
409,042
468,220
461,718
478,807
3,055,426
3,326,986
3,344,987
3,504,767
3,161,820
2,782,537
2,645,215
2,190,502
2,786,542
2,960,841
613,800
677,536
700,876
772,151
765,963
690,824
754,311
1,681,986
1,057,841
1,617,818
4,108,813
5,300,455
5,871,288
5,845,676
5,857,621
5,821,160
5,877,370
6,183,381
6,246,952
6,787,491
2,197,357 9,953,505 440,900 4,558,750 494,250 457,520 480,760 1,019,698 963,500 640,482
1,420,691 1,122,358 901,161 811,124 685,214 614,571 602,572 1,781,778 1,021,945 491,379
24,412,303 19,162,067 18,037,109 8,443,523 14,249,501 11,560,205 4,337,758 8,987,949 17,508,958 10,237,386
65,349,907 75,059,188 66,969,341 62,121,039 63,114,998 62,348,104 52,110,610 61,509,554 71,936,458 67,502,526
(5,355,231) (2,612,668) (3,351,743) (991,939) 4,512,111 (1,266,777) 5,355,984 45,002 (7,228,660) (1,043,664)
Other Financing Sources (Uses)
GO bond proceeds
4,100,000
12,415,000
Bond principal payoff
-
(11,955,000)
Sale of capital assets
20,000
(23,786)
9,162
5,500
-
Anticipation Note
-
-
-
8,209,960
Bond premium
-
-
- -
410,660
- -
Transfers in
13,231,785
22,688,136 16,232,916
25,619,678 22,473,128 21,453,223 16,228,281
18,972,853
40,440,790 14,422,187
Transfers out
(13,517,681)
(23,190,280) (16,109,398)
(25,817,857) (22,319,725) (21,510,423) (16,368,781)
(18,731,107)
(38,606,598) (14,479,146)
Total other financing sources (uses)
3,834,104
(525,930) 123,518
(198,179) 153,403 (48,038) (140,500)
1,117,906
10,044,152 (56,959)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
Source: City of Federal Way Finance
$ (1,521,127) $ (3,138,598) $ (3,228,225) $ (1,190,118) $ 4,665,514 $ (1,314,815) $ 5,215,484 $ 1,162,908 $ 2,815,492 $ (1,100,623)
8.8% 19.8% 2.7% 10.0% 2.4% 2.1% 2.3% 5.3% 3.6% 2.0%
Federal Wav / 121
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY*
Last Ten Fiscal Years
Total City Percent
Fiscal Personal State Public Direct Increase
Year Real Property Property Service Property Total Tax Rate (Decrease)
2006
7,689,395,358
235,157,554
87,062,687
8,011,615,599
1.22
10.5%
2007
8,644,609,276
262,048,562
103,698,540
9,010,356,378
1.14
12.5%
2008
9,527,060,585
257,152,954
97,434,092
9,881,647,631
1.04
9.7%
2009
8,294,282,076
236,445,351
92,287,195
8,623,014,622
0.97
-12.7%
2010
7,948,924,766
228,247,721
91,163,299
8,268,335,786
1.13
-4.1%
2011
7,410,324,237
219,890,581
92,768,984
7,722,983,802
1.20
-6.6%
2012
6,832,615,312
213,389,519
96,827,145
7,142,831,976
1.30
-7.5%
2013
7,076,203,165
212,126,219
97,686,143
7,386,015,527
1.42
3.4%
2014
8,043,211,679
223,362,313
109,128,234
8,375,702,226
1.40
13.4%
2015
8,550,055,199
233,032,732
122,206,127
8,905,294,058
1.25
6.3%
Real, personal, and state public service property has been assessed at 100% of the estimated value.
Source: King County Assessor's Office.
Note: These figures include all final tax adjustments, non-taxable, senior citizen exempted property and omits.
The total assessed value was reduced by senior citizen exemptions (no tax amounts) of $55,636,338 and
pior year omits of $663,172 yielding a taxable assessed value of $8,848,994,548. The assessed valuations
are the basis for the following year's tax levy.
Citv of Federal Wav / 122
PROPERTY TAX RATES AND LEVIES, DIRECT AND OVERLAPPING GOVERNMENT£
Last Ten Fiscal Years
City
Direct
Rates*
Overlapping Rates
City of
Federal Way
Emergency
Fiscal
Federal
School
King
Washington
King County
Port of
County
Fire District
Medical
Year
Way
District #210
County
State
Flood Zone
Seattle
Ferry District
#39
Library
Services
Total
TAX RATES PER $1,000 OF ASSESSED
VALUATION
2006
1.22
4.26
1.33
2.50
0.04
0.23
1.50
0.53
0.22
11.84
2007
1.14
4.19
1.29
2.33
0.04
0.23
-
1.50
0.50
0.21
11.42
2008
1.04
4.15
1.21
2.13
0.10
0.22
0.055
1.50
0.45
0.30
11.16
2009
0.97
4.20
1.10
1.96
0.09
0.20
0.052
1.50
0.42
0.27
10.76
2010
1.13
5.11
1.28
2.22
0.11
0.22
0.003
1.50
0.49
0.30
12.36
2011
1.20
5.36
1.34
2.28
0.11
0.22
0.004
1.39
0.57
0.30
12.77
2012
1.30
5.77
1.42
2.42
0.12
0.23
0.004
1.50
0.57
0.30
13.63
2013
1.42
7.55
1.54
2.57
0.13
0.23
0.004
1.82
0.57
0.30
16.14
2014
1.40
7.28
1.52
2.47
0.15
0.22
0.003
1.81
0.56
0.34
15.75
2015
1.25
6.42
1.35
2.29
0.14
0.19
-
1.77
0.50
0.30
14.20
DETAIL OF
TAX RATES FOR
2015
Basic Rate
1.25
-
1.31
2.29
0.14
0.19
1.50
0.45
-
7.12
Voted Rate
-
6.42
0.03
-
-
-
0.27
0.06
0.30
7.07
TAX LEVIES
2006
8,800,989
43,672,564
357,240,140
672,185,668
922,666
62,785,749
14,108,124
85,715,008
59,154,623
1,304,585,531
2007
9,098,370
47,315,366
383,039,569
691,250,598
956,482
68,841,070
19,882,637
88,486,309
61,300,276
1,370,170,677
2008
9,300,030
52,730,549
409,763,053
723,908,902
33,945,830
75,908,664
18,670,739
22,288,360
91,371,026
101,861,635
1,539,748,788
2009
9,551,027
58,588,636
422,757,529
756,272,108
35,151,944
75,911,308
19,335,328
23,715,724
95,398,383
105,611,047
1,602,293,034
2010
9,690,241
61,404,973
437,163,660
756,411,197
35,783,324
73,504,599
1,185,576
20,409,747
97,015,693
102,103,088
1,594,672,098
2011
9,827,398
61,622,347
439,635,095
749,341,420
36,076,405
73,512,887
1,184,924
18,234,001
115,495,462
98,604,471
1,603,534,410
2012
9,967,650
61,493,504
449,642,988
769,672,818
36,904,878
73,014,552
1,182,466
18,291,481
112,332,714
95,287,781
1,627,790,832
2013
10,081,231
74,591,150
482,114,428
803,686,293
41,355,065
73,020,604
1,183,773
20,431,912
109,665,815
93,899,062
1,710,029,333
2014
10,240,148
74,592,913
482,114,428
837,694,800
52,112,348
73,018,695
1,183,251
20,866,842
116,790,442
113,565,682
1,782,179,549
2015
10,379,941
75,700,006
519,943,107
883,333,788
53,576,135
73,003,848
-
23,587,509
120,007,126
116,779,587
1,876,311,047
Source: King County Assessor's Office and King County Department of Finance.
*The City of Federal Way's Direct Rate has only one component which is the expense levy
Federal Wav / 123
PRINCIPAL TAXPAYERS
Current Year and Nine Years Ago
2015
2006
% of Total
% of Total
Assessed
Assessed
Assessed
Assessed
Taxpayer
Type of Business
Valuation
Rank
Valuation
Valuation
Rank
Valuation (A)
Weyerhaeuser
Lumber Products
$ 153,484,307
1
1.73%
$ 167,414,932
1
2.09%
Puget Sound Energy-Elec/Gas
Electric/Gas
83,319,817
2
0.94%
48,104,743
3
0.60%
Commons Mall LLC
Real Estate Management
56,628,200
3
0.64%
47,456,212
4
0.59%
Harsch Investment Properties
Real Estate Management
56,089,000
4
0.63%
49,261,700
2
0.61%
ROC II WA Cove LLC
Real Estate Management
37,210,000
5
0.42%
-
0.00%
KNL Vision WA LLC (formerly BRE Prop.)
Real Estate Management
35,019,000
6
0.40%
21,470,823
7
0.27%
LBA Realty Fund
Communications/Telephone
30,484,000
7
0.34%
-
0.00%
Qwest Corporation Inc.
Real Estate Management
22,804,736
8
0.26%
27,144,640
5
0.34%
Fred Meyer
Retailer
21,705,200
9
0.25%
21,203,901
8
0.26%
IHP - Courtyard by Marriott (formerly Apple
Hospitality Five)
Hospitality
17,430,400
10
0.20%
13,342,900
13
0.17%
Virginia Mason
Medical Services
16,982,873
11
0.19%
17,430,692
9
0.22%
Costco
Retailer / Wholesaler
15,708,243
12
0.18%
15,284,689
11
0.19%
Campus Business Parks LLC
Real Estate Invest/Holding
11,948,600
13
0.14%
17,415,900
10
0.22%
ANS LLC
Retailer
11,164,800
14
0.13%
-
0.00%
Red Mortgage Capital Inc
Finance
-
0.00%
24,067,000
6
0.30%
Wells Fargo
Finance
0.00%
13,319,700
12
0.17%
Quadrant Corporation
Real Estate Management
-
0.00%
6,565,600
14
0.08%
$ 569,979,176
6.44%
$ 489,483,432
6.11%
Source: King County Assessor's Office and King County Department of Finance.
(A) 2006 taxable assessed valuation for the City of Federal Way was $8,011,615,599
Citv of Federal Wav / 124
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected within the
Total
Ratio of
Taxes Levied Fiscal Year of the Levy Collections
Total Collections to Date Outstanding
Delinquent
Fiscal for the Current Tax Percentage in Subsequent
Total Tax Percentage Delinquent
Taxes to
Year Fiscal Year Amount of Levy Years
Amount of Levy Taxes
Total Tax Levy
2006
8,933,515
8,584,565
96.1%
347,410
8,931,975
100.0%
1,540
0.0%
2007
9,068,740
8,868,895
97.8%
196,962
9,065,857
100.0%
2,883
0.0%
2008
9,265,234
9,037,601
97.5%
185,130
9,222,731
99.5%
42,502
0.5%
2009
9,511,404
9,277,004
97.5%
172,687
9,449,691
99.4%
61,713
0.6%
2010
9,680,047
9,433,214
97.5%
139,340
9,572,554
98.9%
107,493
1.1%
2011
9,755,022
9,506,527
97.5%
186,036
9,692,563
99.4%
62,459
0.6%
2012
9,919,406
9,739,696
98.2%
(0)
9,739,696
98.2%
179,710
1.8%
2013
10,081,231
9,848,925
97.7%
37,272
10,029,029
99.5%
195,033
1.9%
2014
10,240,148
10,035,433
98.0%
56,371
10,091,805
98.6%
148,343
1.4%
2015
10,379,941
10,188,421
98.2%
39,138
10,227,559
98.5%
152,382
1.5%
Source: Most of data has been derived from the "Annual Tax Receivable Summary" prepared by the King County Finance.
Federal Wav / 125
RATIO OF OUTSTANDING DEBT BY TYPE
For the Last Ten Fiscal Years
Governmental Activities
Fiscal General Obligation Certificates of
Year
Bonds Participation
2006
29,581,454 -
2007
19,605,000 -
2008
19,13 8,000 -
2009
29,212,950 -
2010
28,683,950 -
2011
28,157,950 -
2012
27,616,950 -
2013
27,016,400 -
2014
34,703,360 -
2015
33,656,660 -
Business Type Activities
Public Works
Trust Fund Loan
1,939,471
1,757,112
1,574,753
1,392,394
1,210,035
1,027,676
845,317
662,958
480,600
384,481
Percentage
Total Primary
of Personal
Government
Income (b)
Per Capita (b)
31,520,925
0.071%
364
21,362,112
0.122%
244
20,712,753
0.134%
235
30,605,344
0.090%
346
29,893,985
0.091%
337
29,185,626
0.091%
327
28,462,267
0.093%
318
27,679,358
0.097%
309
35,183,960
0.058%
390
34,041,141
0.080%
375
Source: City of Federal Way Finance Division
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
See Demographic Statistics schedule for personal income and population data. These ratios are calculated using
personal income for the prior calendar year.
(b) Per capita income information for the years 2005 to 2007 are based on 2000 U.S. Census report since this
information is available for individual cities only every ten years when the census is done. 2008-2015
info for Federal Way is based on US Census Bureau, 2010-2014 American Community Survey five-year Estimates.
Citv of Federal Wav / 126
RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE
AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA
For the Last Ten Fiscal Years
Ratio of Net
(B) (C) Bonded Debt Net Bonded
Fiscal (A) Assessed Gross Less Restricted Net To Assessed Debt Per
Year Population Value Bonded Debt for Debt Bonded Debt Value Capita
2006
86,530
8,011,615,599
31,520,925
6,001,415
25,519,510
0.0032
294.92
2007
87,390
9,010,356,378
21,362,112
2,147,282
19,214,830
0.0021
219.87
2008
88,040
9,825,319,904
20,712,753
1,882,041
18,830,712
0.0019
213.89
2009
88,578
8,563,964,852
30,605,344
4,225,463
26,379,881
0.0031
297.82
2010
88,760
8,206,354,959
29,893,985
3,379,427
26,514,558
0.0032
298.72
2011
89,370
7,659,569,844
29,185,626
3,866,184
25,319,442
0.0033
283.31
2012
89,460
7,142,831,976
28,462,267
4,182,345
24,279,922
0.0034
271.41
2013
89,718
7,386,015,527
27,679,358
5,248,336
22,431,022
0.0030
250.02
2014
90,147
8,375,702,226
35,183,960
2,136,390
33,047,570
0.0039
366.60
2015
90,764
8,905,294,058
34,041,141
2,283,702
31,757,439
0.0036
349.89
(A) Sources: State of Washington Office of Financial Management Population Estimates.
(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 $8,905,294,058 has been reduced by non-taxable of $55,636,338
and prior year omits of $663,172 to arrive at taxable assessed valuation of $8,848,994,548.
(C) Includes Public Works Trust Fund Loans issued in 2000;
general obligation bonds issued in 2009, 2010, 2013, and 2014.
Federal Wav / 127
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2015
(A)
(B)
Gross General
Percentage
Amount
Obligation Debt
Applicable to
Applicable to
Jurisdiction
Outstanding
Federal Way
Federal Way
King County
$ 1,302,395,769
2.09%
$ 27,204,430
Port of Seattle
305,535,000
2.09%
6,382,012
Federal Way School District #210
168,690,885
69.45%
117,160,135
Fire District # 39
7,150,000
63.26%
4,523,211
Library
109,205,000
3.59%
3,921,928
Total Overlapping Debt
1,892,976,654
159,191,716
CITY OF FEDERAL WAY
33,656,660 (C)
100.00%
33,656,660
Total Direct and Overlapping Debt $ 1,926,633,314
$ 192,848,376
(A) Total general obligation bonds outstanding at the year end, exclusive of available cash in debt service funds,
proprietary -type debt, credit enhancement and hotel/motel debt. Source is King County Financial Management.
(B) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(C) Includes general obligation bonds issued in 2009, 2010, 2013, and 2014.
Source is City of Federal Way Finance
Citv of Federal Wav / 128
COMPUTATION OF LIMITATION OF INDEBTEDNESS
December 31, 2015
General Debt Capacity
Excess Levy
Excess Levy
(Limited) (Unlimited)
Open Space
Utility Total Debt
DESCRIPTION
Councilmanic Excess Levy
and Park
Purposes Capacity
Statutory debt limit:
(2015 AV=$8,848,994,548) (A)
1.50%AV @ 100%
$ 132,734,918 $ (132,734,918)
$ -
$ - $ -
2.50%AV @ 100%
- 221,224,864
221,224,864
221,224,864 663,674,591
Add: Cash on hand for
debt redemption (B) 2,283,702 - - - 2,283,702
Less: Bonds and COPS outstanding (33,656,660) - - - (33,656,660)
Remaining Debt Capacity $ 101,361,960 $ 88,489,945 $ 221,224,864 $ 221,224,864 $ 632,301,633
Total Remaining
"General" Capacity $189,851,906
(A) This figure represents the City's final total taxable assessed valuation (AV) for 2015 which was used to determine
the 2016 property tax levy.
(B) Reflects debt servicing required for the following year.
(C) Combined total for Councilmanic, Financing Lease, and Excess Levy capacities.
Total net debt
Total net debt
applicable to
applicable
Legal debt
the limit as a
Fiscal Year
Debt limit
to limit
margin
% of debt limit
2006
543,899,454
(21,459,145)
522,440,309
4.32%
2007
600,871,170
(12,012,597)
588,858,573
3.91%
2008
736,889,175
(11,615,105)
725,274,070
1.58%
2009
741,123,572
(22,913,431)
718,210,141
3.09%
2010
615,476,622
(22,291,874)
593,184,748
3.62%
2011
579,223,785
(20,964,944)
558,258,841
3.62%
2012
535,712,398
(25,612,462)
510,099,936
4.78%
2013
550,022,093
(25,064,092)
524,958,001
4.56%
2014
623,929,441
(32,566,971)
591,362,470
5.22%
2015
663,674,591
(31,372,958)
632,301,633
4.73%
Source: City of Federal Way Finance
(A) King County Department of Finance
Note: Under state finance law, the city's outstanding general obligation debt should not exceed 15 percent of total assessor's
property value.
By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general
obligation bonds.
Federal Wav / 129
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION
BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES NET OF DEBT SERVICE EXPENSE
Ratio of
Debt Service
Total General
to General
Fiscal
Total Debt
Governmental
Governmental
Year
Principal
Interest *
Service
Expenditures
Expenditures
2006
2,219,676
1,418,843
3,638,519
41,086,555
8.9%
2007
9,976,455
1,153,300
11,129,755
56,186,140
19.8%
2008
467,000
841,542
1,308,542
51,278,215
2.6%
2009
4,585,000
824,693
5,409,693
54,585,436
9.9%
2010
525,000
629,419
1,154,419
50,093,838
2.3%
2011
526,000
622,903
1,148,903
49,482,421
2.3%
2012
480,760
1,114,827
1,595,587
47,879,445
3.3%
2013
1,050,430
1,413,862
2,464,292
57,934,989
4.3%
2014
995,300
985,475
1,980,775
48,877,840
4.1%
2015
771,120
495,359
1,266,479
48,845,021
2.6%
Source: City of Federal Way Finance
Note: * Interest excludes bond issuance and debt registration costs.
Citv of Federal Wav / 130
DEMOGRAPHIC STATISTICS
Education
Personal Level in Years
Fiscal Income Per Capita Median of Formal School Unemployment
Year Population Sea-Tac-Bel [D] Income [C] Age [C] Schooling Enrollment (A) Rate (B)
2006
86,530
149,858,462,000
22,451
32.5
13.0
22,184
4.5%
2007
87,390
162,934,794,000
26,137
37.2
13.0
21,775
4.1%
2008
88,040
169,798,086,000
27,730
37.0
13.0
21,622
5.1%
2009
88,578
171,680,771,000
27,638
36.6
13.0
21,700
8.9%
2010
88,760
176,084,963,000
27,307
35.1
13.0
21,630
9.7%
2011
89,370
178,306,642,000
26,668
35.2
13.0
21,608
8.9%
2012
89,460
189,431,079,000
26,514
34.9
13.0
20,665
8.1%
2013
89,718
199,243,414,000
26,740
34.9
13.0
21,554
7.4%
2014
90,147
213,700,152,000
20,481
35.1
13.0
21,772
6.2%
2015
90,764
N/A
27,145
35.7
13.0
21,979
5.3%
(A) Includes public school enrollment. Kindergarten is included though not State mandated.
(B) Unemployment rates came from the US Department of Labor, Bureau of Labor Statistics.
(C) 2015 information for Federal Way is based on 2010-2014 American Community Survey five-year Estimates.
(D) Personal income information is for Seattle -Tacoma -Bellevue area provided by the Bureau of Economic Analysis, information
for 2015 not available. 2015 data for Personal Income to be published fall of 2016.
Sources: Data was obtained from U. S. Census Bureau
US Department of Labor, Bureau of Labor Statistics
US Department of Commerce, Bureau of Economic Analysis
School data was provided by the Federal Way School District.
Federal Wav / 131
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
2015 2006
Number of
% of Total City
Number of
% of Total City
Taxpayer
Type of Business
Employees
Rank
Employment
Employees
Rank
Employment
Federal Way Public Schools
Educational Services
2,242
1
7.50%
3,048
2
10.19%
Xerox Commerical Services LLC
Business Services
1,350
2
4.51%
-
-
0.00%
Weyerhaeuser Company
Lumber Products
1,145
3
3.83%
3,418
1
11.43%
St Francis Hospital
Medical Services
1,032
4
3.45%
744
3
2.49%
Wild Waves
Amusement Center
871
5
2.91%
639
4
2.14%
World Vision Inc
Christian Relief Agency -Nonprofit
854
6
2.86%
596
6
1.99%
Us Postal Service - Bulk Mail
Postal Service
616
7
2.06%
626
5
2.09%
Wal-Mart
Retail
484
8
1.62%
225
10
0.75%
City Of Federal Way
Government Services
476
9
1.59%
440
7
1.47%
Davita
Health Services
318
10
1.06%
-
-
0.00%
Costco Wholesale Corporation
Wholesale
301
11
1.01%
283
8
0.95%
Virginia Mason Federal Way
Medical Services
253
12
0.85%
235
9
0.79%
BergerABAM Inc
Engineering/Architectural
234
13
0.78%
116
32
0.39%
Fred Meyer
Retail
226
14
0.76%
206
11
0.69%
Robert Half International
Employment Agency
204
15
0.68%
-
-
0.00%
Source: City of Federal Way Business License
Note: Principal Employers - includes both full-time and part-time employees.
ON of Federal Wav / 132
PROPERTY VALUE AND CONSTRUCTION
Commercial Construction (A)
Residential Construction (A)
Multi -Family
Construction (A)
Value
Value
Value
Year
Permits
(In Thousands)
Permits
(In Thousands)
Permits
(In Thousands)
2006
332
78,194
455
70,862
1
2,027
2007
370
59,666
388
55,321
33
11,487
2008
256
45,810
258
17,554
91
26,025
2009
132
45,343
275
13,057
76
20,802
2010
149
31,043
321
19,676
75
2,686
2011
134
12,724
301
19,455
47
847
2012
160
27,989
346
29,115
92
974
2013
162
22,891
369
33,260
131
5,442
2014
220
35,923
359
30,923
53
61,511
2015
181
73,654
343
20,341
109
104,115
Sources & Notes:
(A) Federal Way Community & Economic Development Department. Commercial construction includes alterations.
Other building -related permits (plumbing, mechanical, fire alarm, etc.) numbering 3,686
and valued at $7,886,083 have been excluded.
Federal Wav / 133
CAPITAL ASSETS BY FUNCTION
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Transportation
Street (Center Line Miles)
233.84
233.84
234.72
234.72
242.90
248.23
248.23
249.25
249.25
249.25
Signals WSDOT-owned and maintained
5
5
5
5
5
5
6
6
6
6
Signals City -owned & County -maintained
74
74
76
76
76
76
77
77
77
77
Street lights City -owned and maintained
1,214
1,214
1,463
1,467
1,509
1,554
1,618
1,705
1,728
1,728
Street lights City -owned and PSE-maintain
644
644
644
644
644
644
644
644
644
644
Street lights PSE-owned and maintained
1,975
1,975
1,975
1,975
1,975
1,975
1,975
1,975
1,978
1,980
Culture & Recreation
Developed Parks - Acreage
522.9
524.49
524.49
524.49
524.49
524.49
579.86
579.86
588.99
588.99
Developed Parks - # of Parks
32
32
32
32
32
32
29
29
30
30
Undeveloped Parks - Acreage
543.5
543.46
551.12
551.12
551.12
551.12
539.43
539.43
539.43
539.43
Undeveloped Parks - # of Parks
21
21
22
22
22
22
22
22
22
22
Tennis Courts City -Owned
11
11
11
11
11
11
9
9
9
9
Tennis Courts - Public
22
22
22
22
22
22
25
25
25
25
Swimming Pools City -Owned
1
1
1
1
1
1
2
2
2
2
Swimming Pools County -Owned
1
1
1
1
1
1
3
3
3
3
Trails - Miles
6
6
6
6
6
6
9
9
9
9
Trails -# of Trails
2
2
3
3
3
3
6
6
6
6
Community Centers/Recreation Facilities
2
2
1
1
1
1
1
1
2
2
Source: City of Federal Way Public Works and Parks Department
Citv of Federal Wav / 134
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SECURITY OF PERSONS & PROPERTY
Police Information
Offenses:
Forcible Rape (including attempts)
64
48
30
51
Robbery
146
129
170
198
Criminal Homicide
1
3
10
5
Aggravated Assault
120
107
115
115
Vehicle Theft
1,199
939
816
561
Burglary (commercial & residential)
753
739
800
741
Larceny
3,230
3,159
2,933
3,231
Arson
26
18
13
13
Citations:
Traffic
11,931
14,043
19,339
20,678
Red Light Photo
-
-
3,813
13,002
ECONOMIC ENVIRONMENT
Building Related Permits & Values
Building Permits
788
791
605
483
Estimated Value (In Millions $)
$ 151
$ 127 $
89 $
79 $
Other Building Related Permits
2,550
2,690
2,370
2,209
Estimated Value (In Millions $)
$ 4
$ 6 $
7 $
6 $
Source: City of Federal Way Police Department and Community Development
Department
50 38 48 35 62 39
152 119 107 107 135 152
5 4 3 6 4 4
118 99 150 133 148 178
741 694 800 778 869 762
828 752 931 801 816 635
3,141 3,067 3,409 3,571 3,912 3,701
11 11 9 7 13 14
18,094 17,226 13,023 17,558 13,705 15,466
25,691 15,340 13,455 24,454 24,750 29,812
545 482 598 662 632 633
53 $ 33 $ 58 $ 62 $ 128 $ 198
2,423 2,385 2,960 3,827 3,722 3,868
6$ 6$ 5$ 6$ 7$ 8
Federal Wav / 135
CITY GOVERNMENT EMPLOYEES FULL-TIME EQUIVALENT - HISTORY
Department
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Mayor's Office
6.00
10.00
9.75
7.63
7.63
5.00
3.00
3.50
6.00
7.00
Administration
5.00
5.50
5.25
3.13
3.13
4.00
3.00
3.00
5.00
6.00
Economic Development
1.00
1.50
1.50
1.50
1.50
-
-
0.50
1.00
1.00
Government Affairs
-
3.00
3.00
3.00
3.00
-
-
-
-
Human Services
-
-
-
-
-
1.00
-
-
-
-
City Council
3.50
3.50
3.50
3.50
4.50
4.50
3.85
4.15
4.15
4.20
Municipal Court
12.55
14.00
14.00
13.00
13.00
13.00
13.00
13.00
13.00
13.00
Human Resources
5.00
5.00
5.25
5.25
5.25
4.50
4.50
4.50
5.13
6.00
City Clerk
1.50
1.50
1.75
1.75
1.75
1.75
1.75
1.75
1.88
2.50
Human Resources
3.50
3.50
3.50
3.50
3.50
2.75
2.75
2.75
3.25
3.50
Finance
8.50
9.50
8.00
7.60
7.60
7.00
7.00
6.00
7.00
8.00
Administration
1.50
1.50
-
-
-
-
-
-
-
-
Finance
7.00
8.00
8.00
7.60
7.60
7.00
7.00
6.00
7.00
8.00
Information System
8.50
10.60
10.60
10.00
9.60
7.00
7.00
7.00
6.00
7.00
Law
10.60
13.00
13.00
12.00
12.00
11.00
11.00
12.00
12.00
12.50
Civil Legal Services
5.80
5.80
5.80
4.80
4.80
4.80
4.80
4.80
4.80
4.80
Criminal Prosecution Services
4.80
7.20
7.20
7.20
7.20
6.20
6.20
7.20
7.20
7.70
Community & Econ Developme
28.70
30.49
32.00
30.00
28.90
19.00
21.65
21.85
26.25
26.70
Administration
4.50
4.50
4.50
5.00
5.00
3.50
3.50
3.50
3.90
3.90
Planning
8.80
8.75
8.75
8.00
7.00
6.00
6.00
6.00
7.00
7.00
Building
12.30
13.25
14.25
13.00
13.00
9.00
9.00
10.00
12.00
12.00
Human Services
2.50
3.00
3.50
3.00
3.00
-
2.65
2.35
3.35
3.80
Neighborhood Development
0.70
1.00
1.00
1.00
0.90
-
-
-
-
-
Economic Development
-
-
-
-
-
0.50
0.50
-
-
-
Police
155.00
169.00
169.00
164.00
161.00
135.00
132.00
145.00
146.00
160.00
Administration
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
Support Services
55.00
61.00
61.00
61.00
58.00
51.00
52.00
55.00
56.00
57.00
Field Operations
97.00
105.00
105.00
100.00
100.00
81.00
77.00
87.00
87.00
100.00
Parks, Rec. & Cultural Svcs.
31.20
44.25
44.25
39.75
39.75
36.45
36.45
35.45
35.90
34.80
Administration
1.80
1.80
2.80
1.35
1.35
1.35
1.35
1.35
1.80
1.80
Planning
1.00
1.00
-
-
-
-
-
-
-
Kenneth Jones Pool
3.00
-
-
-
-
-
-
-
-
General Recreation
6.60
7.10
7.10
4.80
4.80
5.50
5.50
5.50
5.50
5.50
Community Center
-
12.35
12.35
13.35
13.35
13.35
13.35
13.35
13.35
11.00
Dumas Bay Centre
3.00
3.00
2.75
2.75
2.75
2.75
2.75
2.75
2.75
3.00
Knutzen Family Theatre
1.50
1.50
1.75
-
-
-
-
-
-
-
Parks Maintenance
13.80
17.00
17.00
17.00
17.00
13.00
13.00
12.50
12.50
13.50
Building
0.50
0.50
0.50
0.50
0.50
0.50
0.50
-
-
-
Public Works
42.60
44.00
44.00
42.95
41.95
38.95
38.95
39.95
38.95
44.00
Administration
1.90
1.85
1.85
2.35
2.35
2.25
2.20
2.25
2.25
2.75
Development Services
6.50
6.45
6.45
4.45
4.45
4.20
4.20
3.70
3.70
2.20
Traffic Services
5.10
6.10
6.10
6.10
5.10
2.35
2.35
3.85
3.85
4.35
Street Services
11.00
11.50
11.00
10.50
10.50
10.60
10.60
10.60
10.60
11.60
Emergency Management
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
-
-
Solid Waste & Recycling
1.70
1.70
1.70
1.70
1.70
1.70
1.70
1.70
1.70
2.20
Surface Water Management
15.40
15.40
15.40
16.35
16.35
16.35
16.40
16.35
16.35
20.40
Fleet & Equipment
-
-
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
Total
312.15
353.34
353.35
335.68
331.18
281.40
278.40
292.40
300.38
323.20
Source: City of Federal Way Finance Division
*table does NOT include 1-time positions or frozen positions
Citv of Federal Wav / 136
MAYOR
DEPUTY MAYOR
COUNCIL MEMBERS
SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS
DECEMBER 31, 2015
POSITION
POSITION
CHIEF OF STAFF
FINANCE DIRECTOR
CITY ATTORNEY
CITY CLERK
ECONOMIC DEVELOPMENT DIRECTOR
PARKS DIRECTOR
COMMUNITY DEVELOPMENT DIRECTOR
PUBLIC WORKS DIRECTOR
POLICE CHIEF
Source: City of Federal Way Human Resources
LEGISLATIVE BODY
EMPLOYEE ANNUAL SALARY
JIM FERRELL
$115,620
JEANNE BURBIDGE
$13,800
LYDIA ASSEFA-DAWSON
$13,800
KELLY MALONEY
$13,800
SUSAN HONDA
$13,800
BOB CELSKI
$13,800
MARTIN MOORE
$13,800
DINI DUCLOS
$13,800
ADMINISTRATIVE STAFF
EMPLOYEE ANNUAL SALARY
BRIAN WILSON
$147,888
ADE ARIWOOLA
$138,036
AMY JO PEARSALL
$140,076
STEPHANIE COURTNEY
$87,108
TIM JOHNSON
$142,104
JOHN HUTTON
$138,036
MICHAEL MORALES
$130,008
MARWAN SALLOUM
$150,216
ANDY HWANG
$161,076
NOTE: In accordance with Ordinance 90-016, individual fidelity coverage of not less than $50,000 exists for the
Mayor, Finance Director, City Clerk, Police Chief, and Judge.
Federal Wav / 137
MISCELLANEOUS STATISTICAL INFORMATION
LOCAL TAXES ON BUSINESSES
Franchise Tax - Cable TV .......................... 5.00%
Gambling Taxes:
Bingo/Raffles................................... 5.00%
Amusement/Games ............................ 2.00%
Punchboard/Pull Tabs ......................... 3.00%
Cardrooms...................................... 10.00%
Local Sales Tax (Collected by the State).......... 9.50%
FIRE AND EMERGENCY MEDICAL RESPONSE INFORMATION
Fire and Emergency Medical Response information reflects the greater Federal Way area, which is served by South King Fire & Rcscu
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fire and Other Responses
Emergency Medical
PUBLIC EDUCATION
23 Elementary Schools
7 Middle Schools (incl. Public Academy)
5 High Schools
5 Alternative\Internet Academy (K-12)
3,836 Staff members
TAXABLE SALES (in millions)
Retail Sales
Real Estate Sales
Source: South King County Fire and Rescue
Federal Way Public School
City of Federal Way Finance Division
865
11,164
639
11,350
1,083
12,058
1,147
11,077
1,041
11,460
934
11,914
1,363
12,571
968
12,950
999
13,847
1,148
14,193
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
9,733
5,183
6,954
314
9,612
5,139
6,720
304
9,594
5,234
6,531
263
9,594
5,203
6,637
266
9,560
5,235
6,547
288
9,673
5,205
6,409
321
9,229
5,041
6,018
377
9,777
5,050
6,341
386
10,054
5,034
6,299
385
10,253
5,209
6,166
351
22,184
21,775
21,622
21,700
21,630
21,608
20,665
21,554
21,772
21,979
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$1,471
$988
$1,540
$963
$1,458
$536
$1,257
$208
$1,261
$238
$1,277
$315
$1,239
$303
$1,355
$399
S1,432
$418
$1,564
$599