Council PKT 06-27-2006 Study/Special
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REVISED AGENDA
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FEDERAL WAY CITY COUNCIL
Hylebos Conference Room - City Hall
June 27, 2006
Study Session/Special Meeting
6:30 PM
(www.cityoffederalway.com)
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1. CALL MEETING TO ORDER
2. 2007/2008 PRELIMINARY BUDGET DISCUSSION
3. EXECUTIVE SESSION PURSUANT TO RCW 42.30.110(1)(g) TO DISCUSS
QUALIFICATIONS OF APPLICANTS FOR CITY MANAGER
4. ADJOURNMENT
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2007/08 Budget Study Session
Voter Options
I June 27, 2006
Information Reviewed To Date
. Structural deficit due to revenue growth rate, lagging inflation, and
expenditure growth
. Baseline deficit will grow over time
. Current resources, if redirected from capital, could support current
programs in the near future (projected to 2010)
. Unmet needs exist citywide
. List of high-priority needs identified by MT
. List is not exhaustive and does not include any cost increases or
inflationary adjustments to contracts or materials
. Current resources will not allow the City to implement/sustain any
additional services
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Reviewed Voter Revenue Options
. Utility Tax
. 0.73% or $30 per hh, per year, to fund high priority PS needs.
. 1.07% or $44 per hh, per year, to fund all high priority needs.
. Cost on a 2,000 sf office is about $53 per year.
. Simple majority approval.
. Property Tax Levy Lid Lift
. 15tl$1000 AV or $45 on an average home to fund high-priority PS needs.
. 2U/$1000 AV or $66 on an average home to fund all high-priority needs.
. Effect on a 2,000 sf office is about $44 per year.
. Simple majority approval.
. Capital/Bond Levy
. 2UI$1000 AV or $66 on an average home could raise $16 million in capital funds-
assuming a 4.5% borrowing rate over a 15-year period.
. 60% voter approval and 40% voter turn-out required.
Council Interests To Date
. Redirect utility taxes when available in 2007 to continue current
services/operations (both base-line and one-time programs)
. Payoff NCH mortgage and release the funding for TIP/Overlay and other
capital needs
. Defer the Admissions Tax effective date to 2011 or later
. Continue funding TIP and Overlay programs at a level equal to 1% of Utility Tax
. Continue dedicating 1% Utility Tax to the new Community Center
. Pursue voter approval to add revenues and services
. Utility tax is preferred over property tax lid lift because:
. both property owners and renters would pay equally
. utility tax growth rate better matches inflation and expenditure growth
. Utility tax does not automatically expire; therefore, no need to revote
. Ask for an amount that is necessary to provide priority services; do not ask
again in the near future
. Staff to identify potential service packages and required amounts
. Staff to identify potential timing of ballot measure
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What Has Taken Place
. Issued budget instructions asking departments to identify 2%
expenditure savings to accommodate cost increases such as
maintenance contracts, energy, etc. that are not in the base-line
assumptions.
. Reviewed cost estimates for priority needs and adjusted for inflation
where appropriate.
. Applied 10% internal support costs to address impact on support
departments.
. Assume current Utility Tax, after restoring TIP / overlay and supporting
current operations, will be used to fund new programs when available.
Potential Service Package:
Option 1 - Public Safety Only
~ :E > Current Biennium Funding Needs
C
. 0 2007 2008 2009 2010
o .~ ~
" ~ " Program FT" Sworn One-11m e Ongoing One-tlm e Ongoing Ongoing Ongoing
Balance of current Utility tax (224,000)
1 1 eM' Court Assigned Def. Attorney 40,000 41,200 42.436 42,436
1 1 lW/Cr Admin Support 10 full time 0.4 17,826 18,584 19,373 20,197
1 1 lW/Cr DV Prosecutor 1.0 3,250 74,155 80,280 83,692 87,249
1 1 PS/O Continue Over-hire program 35 3.5 340,000 354,450 369,514 385,218
1 1 PSJO Convert PSO positions (20) 30
1 1 PS/O hcreasing Field Officers 7.0 7.0 124.477 350,316 45,000 626,866 653,507 681,282
s hternal Support 1.0 12,773 82,230 4,500 112,138 115,502 121,638
Public Safety Prognms 10,9 13.5 140,500 904,527 49,500 1,233,517 1,284,025 1,338,020
Net New Revenue Needed 140,500 680,527 49,500 1,233,517 1,284,025 1,338,020
Utility Tax" 0.59 0.92 0,92 0.96
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Potential Service Package:
Option 2 - Community Safety Improvements
~ ~ > Current Biennium Funding Needs
~ ~ ~ 2007 2008 2009 2010
" ~ " Progr.m FT, Sworn One .tlm e Ongoing One .tlm e Ongolna Ongoing Ongoing
Option 1: Public Safety 10.8 13.5 140.500 904,527 48,500 1,233,517 1,284,025 1,338,020
1 1 CO/B Code Compliance 1.0 13,000 75,090 78,281 81,608 85,077
1 1 PKIM Parks Securities and 1.0 100,000 104,250 108,681 113,300
Maintenance
. Internal Support 0.2 1,300 17,509 18.253 18.801 19,838
Community SIl'.ty Progr.m$ 2.2 14,300 1U,599 200,784 209,090 218,214
Option 2: PS and Community Safety 13.1 13.5 154,800 1,097,126 49,500 1.434,302 1,493,115 1,556,234
Net New Revenue Need.d 154,800 873,126 49,500 1,434,302 1,493,115 1,556,234
Utility Tu% 0.73 1./H 1.07 1.11
Potential Service Package:
Option 3 - All Community Services Improvements
1! :E > Current Biennium Funding Needs
. 0 ~ 2007 2008 2008 2010
o .;:
" ~ " Program FT, Sworn One -tim e Ongoing One-Urn e Ongoing Ongoing Ongoing
Option 2: PS and Community Safety 13.1 13.5 154,800 1,097,126 49,500 1,434,302 1,493,115 1,556,234
. 2 Court Court Broadcasting 2,400
3 2 CD/PI.. long Range Aanning - Sr. 10 5,000 81,130 84,578 88,173 91,920
Ranner
3 2 CD/BI Permit Counter Tech 1.0 5,000 52,944 55,194 57,540 59,985
. 2 lWICI SoflW are upgrade 10,000 1.000 1,000 1,030 1,061
. 2 LW/C V ideo court appearance 3,250 26,000 28,810 29,674 30,565
. 2 PKIRC Senior Van Replacement 1.0 25,000 3.908 3,906 4,023 4,144
. 2 PKIRC Athletics Assistant 0.5 2,500 8.520 8.520 6,797 7,086
. 2 PKIRC Senior Service coordinator 0.5 2,500 30.800 30.800 32,109 33.474
. 2 PKIRC Senior Lunch 10,000 10.000 10,300 10.809
4 1 PNIT Concurrency Management (net 1.0 25,000 49,300 49.300 51,395 53,580
of a net Concurrency Perrm fee
estimated at $88k1yr)
. Internal Support 0.4 8,065 26,160 27,011 28,104 29,242
Community Services Programs 4.4 1.0 88,715 287,760 297,119 309.148 321,665
Option 3: Option 2 & other Community Service 17.5 14.5 243,515 1,384,886 49,500 1,731,421 1,802,260 1,877,899
Net New Rev.nue Needed 243,515 1,160,886 49,500 1,731,421 1,802,260 1,877,'99
Utility Tn" 1.00 1,21 1.29 1.34
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Potential Service Package:
Option 4 - All Priority Service Improvements
.. !; > Current Biennium Funding Needs
~ i ~ 2007 2008 2009 2010
" Program FT, Swor One.time Ongoing One.lime Ongoing Ongoing Ongoing
Option 3: Option 2 & other Community Servlc 17.5 14.5 243.515 1,384.888 49,5110 1.731,421 1.802,260 1.877.899
s 1 CC Salary Cormission Action 9,000 9,000 9.270 9,548
s 2 MSlA Supporl 0,5 25,000 26,063 27,170 27,985
s 2 MSlIT Overtime 10,000 10,000 10,300 10,609
5 2 MSlIT GAC Broadcasting 0.5 1,500 25,000 26,063 27,170 27,985
s 1 MSlC Election Costs 90,000 92,700 95,481 95,481
s 1 MSIT MS Office license 8,000 8,000 8,240 8,487
s Internal Support 0,1 150 16,700 17,183 17,763 18,010
Support Services 1.1 1,650 183.700 189,008 195,394 198.105
Option 4: Option 3 plus supports 18.6 14.5 245.185 1,5fi1l,S86 49,500 1,920,428 1.997,655 2,076.004
Net New Revenue Needed 245.165 1,344.586 49,500 1,920,428 1,997,655 2.076.004
Utility Tax" I 1,14 1.41 1.43 1.48
Election Calendar
Regular Council Election Resolution
Election Dates Meeting Filing
September 19, 2006 (P) 7/18/2006 8/4/2006
November 7, 2006 (G) 9/19/2006 9/22/2006
February 6, 2007 12/1912006 12/22/2006
March 13, 2007 1/16/2007 1/26/2007
April 24, 2007 3/6/2007 3/9/2007
May 15,2007 3/20/2007 3/30/2007
August 21, 2007 (P) 6/19/2007 617/2007
November 6,2007 (G) 9/18/2007 9/21/2007
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Other Potential Ballot Items
Taxing Current Leltj' Potential
Potential Ballot Items Source Expiration Timing
SK Fire/Rescue Property Tax 2006 Sep Annually
KC AFIS Property Tax 2005 Sep/Nov 2006
Metro/KC Transit Sales Tax New Sep/Nov 2006
FWSD - Capital Property Tax Sep/Nov 2006
KC EMS Property Tax 2007 Sep/Nov 2007
KC Rural/Regional Park Leltj' Property Tax 2007 ?
RTID ? New Sep/Nov 2007
Election Costs
. Special Election (February - May Each Year) - S 1 OOk
. Primary Election
. In conjunction with City official election = minimal
. Not in conjunction with City official election - $70k
. General Election
. In conjunction with City official election = minimal
. Not in conjunction with City official election - $70k
. Presidential year - $80k
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Public Involvement Process
+Pre-Council Action
. Present budget information to community groups
. Discuss budget issues/status with Chamber Gov't Affairs Committee
. Brief citizen advisory commission/committees
. Conduct a preliminary budget public hearing
. Post budget materials on the City's website
. Conduct an opinion survey
+Ballot Measure Information
. Develop and publish a "fact sheet" regarding the ballot measure
. Post the fact sheet at local businesses and other public places
. Present information at block-watch, neighborhood, & community meetings
. Conduct an opinion survey
Recommendation
. Voter Package: Option 2 Community Safety Programs
. Addresses police, court, and prosecution needs
. Addresses issues most frequently identified in citizen comments and
complaints
. Addresses safety issues more comprehensively including park safety, code
enforcement, and graffiti removal
. Minimal incremental costs to voters
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Recommendation
. Election Timing: Special Election in 2007
. Pros:
. Single topic, allows citizens to better understand and consider the issue
. Allows time for a public process
. Does not compete with other issues
. Cons:
. Expensive
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