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FHSRAC PKT 10-31-2006 City of Federal Way City Council Finance/Human Services/Regional Affairs Committee Tuesday, October 31,2006 ***5:00 p.m.*** Special Date &. Time City Hall Hylebos Conference Room AGENDA 1. CALL TO ORDER 2. PUBLIC COMMENT 3. COMMmEE BUSINESS E. Vouchers Kelsey Action Levy jMatheson Information Wang Action Kraus Action Kraus Action A. Approval of Minutes from September 26, 2006 B. Congressional and Legislative Affairs Update C. Cingular Cell Tower Site-Lease Renewal D. September 2006 Monthly Financial Report 4. OTHER 5. FUTURE AGENDA ITEMS 6. NEXT MEETING: November 28, 2006 5:30 PM Committee Members: Linda Kachmar, Chair Jeanne Burbidge Jack Dovey City Staff: Iwen Wang, Management Services Director Krystal Kelsey, Deputy City Clerk 2S3-83S~2S41 K:\FHSRAC\2006\Oclober 24, 2006\10-31-06 Agenda.doc City of Federal Way City Council Finance/Human Services/Regional Affairs Committee Tuesday, September 26, 2006 5:30 p.m. City Hall Hylebos Conference Room MINUTES Committee Members in Attendance: Chair Linda Kochmar and Members Jeanne Burbidge and Jack Dovey. Staff Members in Attendance: City Manager Neal Beets, Assistant City Manager Derek Matheson, Management Services Director Iwen Wang, City Attorney Pat Richardson, Economic Development Director Patrick Doherty, Finance Manager Tho Kraus, Information Systems Manager Mehdi Sadri, and Deputy City Clerk Krystal Kelsey. Others in Attendance: Diana Noble-Guillaford and H. David Kaplan 1. CALL TO ORDER - Chair Kochmar called the meeting to order at 5:32 PM. 2. PUBLIC COMMENT - Deferred until agenda item C at the request of Mr. Kaplan. 3. COMMITTEE BUSINESS a. Approval of Minutes - The Committee mjsjc to approve the minutes as presented. b. Congressional and legislative Update Mr. Matheson reviewed the City's legislative activities including the following key areas: Streamlined Sales Tax: The City continues to receive very positive feedback regarding passage of SST legislation in 2007. Transportation: It is important that Federal Way remain vigilant in seeking funding for projects key to Federal Way -notably SR 509 and the Triangle Project - especially in light of recent high-profile projects including the Evergreen Floating Bridge and the SR 99 Viaduct in Seattle. These projects alone would cost the state - or RTID - an additional $1.3 billion because of across-the-board cost increases. Regional Transportation Commission/Governance Commission: The Commission i$ researching government and transit functions in other regions, including Portland and San Diego. Staff is working to arrange a follow-up conversation with RTC member Mary Gates to the Commission's draft report (scheduled for release in mid-November) and public hearings/comment. Camp Kilworth: The City is working with Senator Eide's office to arrange a tour of Camp Kilworth for key state senators who will oversee development of the 2007-09 Capital Budget. Hotel/Motel Tax legislative "fix": Based on a decision by the Attorney General, jurisdictions are currently only permitted to expend hotel/motel tax revenues on advertising and marketing (promotion) for community events. The City will likely work toward solving this problem in 2007 so revenues can be allocated for expenses other than promotion. Mr. Matheson remarked this could be key as the City competes to host the 2008 Olympic Diving Trials. In regards to federal legislation, Mr. Matheson remarked that everything, for the most part, is on hold until after the mid-term elections in November. Nothing will likely pass until November or December 2006. Mr. Matheson also announced Sound Transit and the Regional Transportation Investment District would be hosting a joint open house on Wednesday, September 27, 2006 in the King County Aquatic Center from 4:30 - 7:30 p.m. (with a presentation at 6:00 p.m.) to seek community input on a planned November 2007 Roads and FHSRAC 10/31/06 A-1 Transit ballot measure. Staff is currently preparing documents for the open house. The Committee remarked they would like to receive a synopsis following the event. MOTION: Chair Kochmar moved to add "Resolution of the Federal Way School Board to Repeal Article VII - Multifamily Dwelling Unit Limited Property Tax Exemption" to the agenda as item F. Motion ~econded and carried. c. 2006 Fall Tourism Enhancement Grant Applications - Mr. Kaplan, Chair of the Tourism Enhancement Grant Review Subcommittee, addressed the Committee and presented his opinion that legislation limiting Lodging Tax funds strictly to promotion of community events must be overturned. Mr. Kaplan stated in his view funds spent toward marketing and advertising are, for the most part, spent outside the City's local economy (to publishers, etc.). Mr. Doherty presented his staff report and reviewed the five applicants recommended for funding: LTAC Reg'd Rcm'd Or anization Event Dates' Federal Way Symphony "The Art of the Strings" and "The Art of the Piano" Oct 7 and 8; Dec 2 & 3 2006 $5,000 $3,250 Centerstage Theatre - "A Christmas Carol" Nov - Dec 2006 $10,000 $9,000 $6,500 $2,000 $2,000 $1,500 $5,000 $4,250 TOTAL $20,000 PN Master Swimmers/2007 US Masters Short Course Championship May 2007 Raiders Parents Movement - WA State Coaches Association - All-state Girls Basketball Games March 16 - 17, 2007 Federal Way Arts Commission - Writers' Conference at Dumas Bay April 2007 Council member Dovey inquired whether the City would be legally permitted to award additional funds if it were to officially co-sponsor an event. Mr. Doherty answered the City is not able to award additional funds (for purposes outside promotion) regardless of whether or not it co-sponsors an event. The Attorney General's opinion will only be altered by legislative action. The Committee also discussed the actual cost of marketing/advertising events in today's economy and questioned whether or not the funds requested by the organizations are realistic or over-estimated. Mr. Doherty answered they appear to be very accurate, if not under-estimated. He further explained the grant funds are reimbursed after the funds had been expended and documentation (invoices, receipts, etc.) had been submitted by each organization. The Committee also expressed an interest in asking grant recipients to attend a Councilor Committee meeting to give a summary their event. Mr. Matheson noted staff plans to meet with Senator Eide and the relevant committee's Chair after elections to discuss this problem and possible solutions. The Committee m/s/c to approve the staff recommendation (Option 1) to approve the TEG recommendations of the Lodging Tax Advisory Committee and forward to the full City Council on October 3, 2006. d. Renewal of King County I-Net Contract - Mr. Sadri presented his staff report to the Committee and recommended approval of the contract's renewal because of its relative low cost. The Committee asked if Mr. Sadri was aware of any reason for the somewhat irregular annual cost increases. Mr. Sadri answered he was not aware of a specific reason, but they appear relative to other economic/service cost increases. The Committee m/s/c to forward the staff recommendation (Option 1) to approve the contract with King County for I-net services for the amount of $895, $1,019 and $1,048 per month for the years 2007, 2008 and 2009 respectively, to the October 17, 2006 City Council Consent Agenda. FHSRAC 10/31/06 A-2 e. Amending the Senior Citizen Utility Tax Rebate Program to Include low-Income, Disabled Citizens - Ms. Wang presented the staff report to the Committee. Council member Dovey inquired about the reason for the proposed change. Ms. Wang and Mr. Beets answered while meeting with. local community service groups (such as Kiwanis, Rotary,etc.) to present the City's budget process and the potential utility tax ballot measure, some groups expressed a concern about the financial impact to low-income, disabled individuals. Ms. Wang also mentioned other government and utility entities include low-income, disabled individuals in the same tax credit/rate reduction programs including - King County (property tax assessments) and Comcast (reduced cable packages) offered to low-income senior citizens. Ms. Wang explained staff proposes using the same definition for "disabled" as used for Supplemental Security Income (SSI) eligibility. Furthermore, the City may utilize the services of the Multi-Service Center to process rebate applications because of the extra staff time and potential difficulty in determining eligibility. The Committee m/sjc to forward the staff recommendation (Option 2) to authorize staff to prepare a draft ordinance to be presented to the full Council for consideration at its October 17, 2006 City Council meeting. f. ADDED ITEM: Resolution of the federal Way School Board to Repeal Article VII - Multifamily Dwelling Unit limited Property Tax Exemption - The City was recently made aware that the Federal Way School Board planned to present this resolution at its meeting later in the evening (September 26). The City asked the Board to consider first providing the City an opportunity to present information relating to the history of the exemption, the research conducted prior to authorizing the exemption, and the impacts of repealing it. Patrick Doherty reviewed the history of this exemption for the Committee, and highlighted his research findings (based on Tacoma, Renton and Bellevue) conducted in 2002 and early 2003. SpeCifically, Mr. Doherty mentioned his researched showed the number of school-age children in city-center apartments was lower than those in "family-friendly" neighborhoods. Also, by investing in their city centers, lagging properties were able to increase their land value, thus bringing increased revenues as a result of higher tax assessments. (Land value taxes were not exempted). Mr. Doherty also stated the tax exemption was approved for a five-year pilot program and is an important incentive to increase density in the city center and frame zones as required by the Growth Management Act. Furthermore, developers must pay school impact fees, commercial value taxes and land value taxes. The Committee asked if Federal Way's five-year pilot project would automatically lapse. Mr. Doherty answered "no", it must undergo review and approval to continue. The Committee inquired when the ten-year tax exemption period starts; Mr. Doherty answered from the date the certificate of occupancy is issued. However, the certification date is different for condos (individual condo homeowners) versus apartments (one central owner with rental tenants). The Committee directed Mr. Doherty to speak with Sally McLean at the School District regarding his survey findings and offer to speak at an upcoming School Board Meeting. Finally, the Committee stated it would like staff to come back to Committee with an update on this topic. fg. Monthly financial Report - Ms. Kraus presented the staff report to the Committee and highlighted key areas of the report, included increased/decreased revenues and expenditures, permit activity, and sales tax activity. Ms. Kraus explained staff plans to meet with the Parks Department to determine the cause for their decreased revenues and increased expenditures. The Committee asked if $2,000,000 was the actual projected year end variance as indicated in report. Ms. Wang agreed and stated the Management Team has recommended allocating most of the variance for use in the 2007/2008 proposed budget. Ms. Kraus also reported video arraignment in the Municipal Court has been reinstated. The Committee m/s/c to approve the Monthly Finance Report as presented and forward approval to the October 3, 2006 City Council Consent Agenda. FHSRAC 10/31/06 A-3 gh. Vouchers - Ms. Kraus reviewed the vouchers. There were no questions. The Committee m/s/c to approve the vouchers as presented and forward approval to the October 3, 2006 City Council Consent Agenda. 4. OTHER - None 5. FUTURE AGENDA ITEMS - Mr. Beets inquired whether or not the Committee wished to hold the December 26, 2006 Finance, Human Services and Regional Affairs Committee meeting as planned, reschedule the meeting, or cancel. The Committee mjs/c to cancel the December 26, 2006 Finance, Human Services and Regional Affairs Committee meeting and to authorize staff to forward the monthly staff report and vouchers directly to the first Council meeting in January. 6. ADJOURNMENT - Chair Kochmar adjourned the meeting at 6:51 PM ATTEST: COMMITTEE ApPROVAL: Linda Kachmar Committee Chair Jeanne Burbidge Committee Member Jack Dovey Committee Member FHSRAC 10/31/06 A-4 COUNCIL MEETING DATE: November 7,2006 ITEM #: .. ......._.~........~........~._.~..__...__._......._......_.M......_.............__........._._......_.........MH.....__............... ................__....__.__..._...........................__.................-....-..-....... .............-....---.....--..-.-......... CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: CINGULAR CELL TOWER SITE LEASE RENEWAL POLICY QUESTION:. Should the City amend the site Lease Agreement #01-121 with New Cingular Wireless pes (successor in interest of AT&T Wireless) initially entered into in August 6, 2001 to renew the Lease? COMMITTEE: Finance, Human Services and Regional Affairs MEETING DATE: October 24, 2006 CATEGORY: [8J Consent D. City Council Business D Ordinance D Resolution D D Public Hearing Other ~_!~!':_~~!:'-2.~!___:~~_~J~~~...~~~g"'M~~~lt~~~!!!_~_~~i<::~~J~i!:~~_t.~~____..________J~~!'.!-=M~.~_~g~~~!!!_~~!::'i~~.~__._._.--------- ATTACHMENTS: Staffreport dated October 20,2006. OPTIONS CONSIDERED: 1. Approve the Lease Amendment and give the City Manager authority to execute the Lease Amendment. 2. Direct staff to negotiate a new agreement. .........-......---.--...---....----.---.---------....----.------.....------.---...--...-......----.........-.----.--....--....----...........--.--......-...----..--..-.....---.-...----....--.._~.._._..._...._............_._.._...._._._~-_.._._..-.__...--.--....---...........-.-.-.-....- STAFF RECOMMENDATION: Staf CITY MANAGER ApPROVAL: s Option 1. DIRECTOR ApPROVAL: co~~ Council Council COMMlTTEE RECOMMENDATION: Forward Option 1 to the November 7, 2006 City Council Consent Agenda. Linda Kochmar, Chair Jeanne Burbidge, Member Jack Dovey, Member PROPOSED COUNClL MOTION: "I move to approve the Lease Amendment and authorize the City Manager to execute the Lease Amendment with New Cingular Wireless PCS in connection with its wireless communications on the BP A trail. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: o APPROVED o DENIED o TABLEDIDEFERRED/NO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 CITY OF FEDERAL WAY MEMORANDUM Date: To: October 23,2006 Finance, Economic Development and Regional Affairs Committee Neal Beets, City Manager lwen Wang, Management Services Director Cingular Wireless Aquatic Center (on BPA Trail) Cell Site Lease Extension Via: From: Subject: Policy Question Should the City extend the lease agreement for five years based on updated lease rate starting at $1824.98 per month? Background The City initially entered into the site lease agreement ("Lease") with AT&T Wireless for a cell tower site located on BP A Trail, near the Aquatic Center effective August 6,2001. The initial Lease was for five years and may be renewed for three consecutive five-year terms. The initial monthly rent is $1,500.00 per month, and is adjusted 4% each year, effective January 1 each year. Applying 1 the escalator, the current rent effective January 1, 2006 is $1,824.98 per month. The Lease provides for additional rent adjustments at subsequent renewal terms only if the rent rate is more than 20% below market and that the City and Cingular Wireless were to conduct an MAl appraisal to determine the market rent. Inunediately after Cingular' s merger with AT&T occurred in the summer of2005, Cingular has been very aggressive in consolidating cell sites and renegotiating site leases with substantially lower rents and shortened termination notification period. The City has declined each of these proposals presented by Cingluar. Finally, the City received the notice from Cingular to extend the lease for additional5-year term commencing August 6,2006 in early October. Staff recommends the Council to continue the lease under the current terms and conditions, including the 4% annual rent escalator. Staff Recommendation Council approves the proposed site lease extension and forwards the First Amendment to Lease Agreement for full Council approval. FHSRAC 10/31/06 (-2 FIRST AMENDMENT TO LEASE AGREEMENT FOR NEW CINGULAR WIRELESS PCS, LLC (AG # 01-121) This First Amendment ("Amendment") is dated effective this _day of 2006, and is entered into by and between the City of Federal Way, a Washington municipal corporation ("City"), and New Cingular Wireless PCS LLC, Delaware limited liability company ("Tenant"). A. The City and Tenant entered into a Lease Agreement dated August 6, 2001, whereby the City agreed to lease to Tenant a portion of the space on and air-space above the City Property, located on the BP A Trail ("Lease"). B. During the term of the Lease, Tenant, AT&T Wireless Services of Washington, LLC, m~rged with Cingular Wireless and became New Cingular Wireless PCS, LLC. C. The Lease provided that Tenant may renew the Lease for three (3) additional five (5) year terms under Section 4. D. Under Section 27.b. of the Lease, any modification of or amendment to the Lease must be in writing anq executed by both parties. C. The Lease expired August 6, 2006 and became amonth to month tenancy under Section 17. Tenant has continued to make timely rent payments at the agreed rate and sent written notification to the City that it would like to renew the Lease for an additional five (5) years. E. The City and the Tenant agree and desire to amend the Lease to renew the term of the Lease for an additional 5 years from the date this Amendment is fully executed. NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged the parties agree to the following terms and conditions: 1. Tenant Name The Tenant name shall be changed from AT&T Wireless Services of Washington, LLC, an Oregon limited liability company d/b/a! AT&T Wireless, by AT&T Wireless Services, Inc., a Delaware corporation, its manager to the name of New Cingular Wireless PCS LLC, a Delaware limited liability company. FHSRAC 10/31/06 C -3 2. Term. Pursuant to Section 4 of the Lease Agreement, the Lease shall be renewed for an additional five (5) year term commencing on November 7,2006, and expiring November 7, 2011, unless renewed pursuant to the terms of the Lease Agreement. 3. Full Force and Effect. All other terms and conditions of the Agreement not modified by this Amendment shall remain in full force and effect. DATED the effective date set forth above. CITY OF FEDERAL WAY By: Neal Beets, City Manager PO Box 9718 Federal Way, W A 98063-9718 ATTEST: APPROVED AS TO FORM: Laura Hathaway, CMC, City Clerk Patricia A. Richardson, City Attorney TENANT: NEW CINGULAR WIRELESS PCS, LLC By: Name (printed): Title: 16221 NE 72nd Way, RTC-3 Redmond, W A 98052 STATE OF WASHINGTON) ) ss. COUNTY OF KING ) On this day personally appeared before me , to me known to be the of that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of FHSRAC 10/31/06 C -4 said corporation, for the uses and purposes therein mentioned, and on oath stated that she was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of said corporation. GIVEN my hand and official seal this day of ,200_. (typed/printed name of notary) Notary Public in and for the State of My commission expires K:\telecom\Cingular lease Amend- BP A lease renewal.doc FHSRAC 10/31/06 C -5 COUNCIL MEETING DATE: November 7, 2006 ITEM #:_ CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: SEPTEMBER 2006 MONTHLY FINANCIAL REPORT POLICY QUESTION: Should the City approve the September 2006 Monthly Financial Report? COMMITTEE: Finance, Human Services & Regional Affairs Committee MEETING DATE: October 31,2006 CATEGORY: t8l Consent 0 Ordinance o City Council Business 0 Resolution ST1\FF REpORT By: Tho Kraus, Finance Manage.tttL_ o Public Hearing o Other DEPT: Management Services Attachments: . September 2006 Monthly Financial Report Options Considered: 1. Approve the September 2006 Monthly Financial Report as presented and forward to the November 7, 2006 Council Consent Agenda. 2. Deny approval of the September 2006 Monthly Financial Report and provide direction to staff. STAFF RECOMMENDATION: NA DIRECTOR ApPROVAL: CITY MANAGER ApPROVAL: Council Committee Council COMMITTEE RECOMMENDATION: Forward approval of the September 2006 Monthly Financial Report to. the November 7, 2006 City Council Consent Agenda. Linda Kochmar, Chair Jeanne Burbidge, Member Jack Dovey Member PROPOSED COUNCIL MOTION: HI move approval of the September 2006 Monthly Financial Report as presentf!;d." (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: o APPROVED o DENIED o TABLEDIDEFERREDINO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTION # ~ CITYOf ~ Federal Way September 2006 Monthly Financial Report GENERAL & STREET FUND OPERATIONS The overall operating of the combined General and Street Fund showed a positive result of $2.65M through September. Overall revenue total $26.67M and is $2.59M or 10.8% above budget, primarily attributable to the exceptional building permit activities and a positive sales tax infused by new constructions. Both permit and construction sales taxes are cyclical in nature and very senSitive to changing economy and should not be overly relied upon for long-term purposes. Year-to-date expenditures total $26.33M and is $55K or 0.2% below budget. The favorable expenditure is primarily due to the timing difference in when payments are made. 2005 2006 Variance GENERAl & STR:EET FUND Annual Annual YTD Annual YTD YTD Favorable (Unfavorable) Summary of Sources & Uses Budget Actual Actual Budget Budget Actual $ % Beginning Fund Balance $ 2,945.041 $ 2,945,041 $ 2,945,041 $ 4,728,229 $ 4,728,229 $ 4,728,229 $ 0 0.0% OPERATING REVENUES Property Taxes 8,584,024 8,442.168 4,910,501 8,692,174 5,055,920 5,072,081 16,161 0.3% Sales Tax 10,793,000 11,305.537 8,232,771 11,120,000 8,097,661 9,225,456 1,127,795 13.9% Criminal JustiCe Sales Tax 1.781,000 1,817,981 1,321,627 1,877,000 1,364,532 1,445,8n 81,339 6.0% Intergovemmental 2,210,000 2,248.446 1,675.482 2,287,000 1,704,211 1,677,567 (26,645) -1.6% Leasehold Tax 2,500 2,026 1,722 2,500 2,125 1,995 (129) -6.1% Gambling Taxes 1,430,000 1.501,064 1,154,261 1,414,000 1,087,312 1,040,163 (47,149) -4.3% Court Revenue 1,281,000 875,986 610,590 976,000 680,303 733,692 53,389 7.8% Building PennitslFees-CD 2,942,400 3,141.368 2,522,305 1,653,400 1,327,568 2,200,731 873,164 65.8% ROW Pennits & Develop SVC5 Fees-PW 365,000 346,605 260,240 370,000 277,806 390.018 112,212 40.4% Licenses 208,517 233,304 100,563 210,517 90,741 101,167 10,426 11.5% Franchise Fees 723,000 787,639 589,456 733,000 548,565 650,984 102,419 18.7% Passport Agency Fees 85,086 63,418 50,368 86,000 68,303 51,550 (16,753) -24.5% Recreation Fees 872,335 825,052 711,131 874,335 753,609 740,426 (13,183) -1.7% Public Safety 931,090 1,100,604 793,060 934,190 673,148 725.997 52,849 7.9% MminlCash Management Fees 552,000 552,000 414,000 560,000 420,000 420,000 0 0.0% Interest Eamings 172,000 277,945 174,261 183,000 114,734 369,365 254,630 221.9% Mise/Other 184,700 305,019 244,358 208,700 167,195 178,640 11,445 6.8% ~()nnoinn Tran~fer~ In' - Utility Tax-Celebration Park 238,798 238.798 238,798 245,962 245,962 245,962 - 0.0% Utility Tax-Kenneth Jones Pool 314,000 314,000 94.096 319,000 319,000 319.000 - 0.0% Utility Tax-Arts CommlRW&B Festival 93,750 93,750 93,750 93,750 93,750 93.750 - 0.0% Utility Tax-Police Positions 625,000 625.000 625,000 625,000 625,000 625,000 - 0.0% Utility Tax-Street Bond Projects 192,000 192,000 192,000 202,000 202,000 202,000 - 0.0% Utility Tax-New Street Lights 93,900 93,900 93,900 108,300 108,300 108,300 - 0.0% Utility Tax-Camp Kilworth M&O 50,000 50,000 50,000 - 0.0% otal Operating Revenues 34,675,100 35,383,608 25,104,238 33,825,828 24,077,745 26,669,715 2,591,970 10.80/. JPERATING EXPENDITURES ~ity Council 388.802 344,136 267,213 409,317 317,824 336,340 (18,516) -5.8% City Manager 871,491 853,100 648,348 908,228 690,245 635,487 54,758 7.9% Municipal Court-Operations 1,401,822 983,097 707,260 1.158,496 833,446 792,130 41,315 5.0% Economic Development 302,115 228,584 174,111 292,893 223,095 161,589 61,506 27.6% Management Services 1,883,518 1,862.587 1,410,343 1,897,272 1,436,606 1,515,208 (78,602) -5.5% Civil/Criminal Legal Services 1,145,500 1,005,324 750,064 1.200,561 895,728 838,716 57,013 6.4% Comm. Development SVC5 3,494,215 3,123,953 2,298,329 3,685,745 2,711,646 2,597,773 113,873 4.2% Jail Services 1,442,060 1,400,637 928,766 1,384,060 917,774 895.056 22,718 2.5% Police Services 16,397.701 15,843,471 11,627,458 17,134,669 12,S75.063 12,945,535 (370,473) -2.9% Parks and Recreation 3,945,274 3,941,474 2,778,332 4,057,237 2,859,933 2,857,227 2,706 0.1% Public Works 3,910,022 3,644,449 2,595,887 4,109,988 2,927,483 2.759,076 168,407 5.8% Total Operating Expenditures 35,182,521 33,230,813 24,186,110 36,238,464 26,388.841 26,334,136 54,705 0.2% Operating Revenues overf(under) Operating Expenditures (507,421) 2,152,796 918,128 (2,412,636) (2,311,096) 335,579 2,646,675 -114.5% laTHER FINANCING SOURCES One-Time Transfers In 81,000 73.551 49,159 55,450 33,434 33,434 - 0.0% Grants & Other 498.256 584,873 391,283 247,772 52,565 52,565 - 0.0% Total Other Financing Sources 579,256 658,423 440,442 303,222 85,999 85,999 - 0.0% OTHER FINANCING USES City Manager Contingency - - - 907,747 - - nla nfa One-Time Transfers to CIP 1,028.030 1,028,030 - 100,000 100,000 100,000 nla nfa Other 40,000 - - - - - nla nfa Total Other Financing Uses 1,068,030 1,028,030 - 1,007,747 100,000 100,000 n1a n1a otal Ending Fund Balance 1,948,846 $ 4,728,229 $ 4,303,610 $ 1,611,068 $ - $ 5,049,807 nfa nf. FHSRAC 10/31/06 0-2 DESIGNATED OPERATING FUNDS Through September, designated operating funds revenue total $15.37M and is $2.25M above the year-to-date budget of $13.12M with utility taxes and real estate excise taxes being the major contributors. Expenditures of$IO.75M is $198K below the budget estimate of $1 O.95M. 2005 2006 I Variance DESIGNATED OPERATING FUNDS. Annual Annual YTD Annual YTD YTo Favorable (Unfavorable) Summary of Sources & Uses Budget Actual Actual Budget Budget Actual $ % Begin Balance-Designated Funds $ 4,610,136 $ 4,610,136 $ 4,610,136 $ 5,725.052 $ 5,725,052 $ 5,725,052 $ - 0.0% OPERATING REVENUES Intergovemmental 596,245 565,157 416,609 617,953 416,886 416,886 - 0.0% Utility Taxes 8,225,399 8,292.520 6,145,469 8,407,499 6,230.678 6,691,008 460,330 7.4% Hotel/Motel Lodging Tax 150,000 159,001 112,074 150,000 105,729 122,064 16,335 15.5% Real Estate Excise Tax 4,250,000 4,695,984 3,743,038 3,150,000 2,510,777 4,335,420 1.824,643 72.7% Dumas Bay Centre 523,775 452,672 320,387 529,598 374,833 359.961 (14,872) -4.0% Knutzen Family Theatre 78,515 69,648 43,368 84,145 52,395 86,734 34,339 65.5% SWM Fees 3,576,746 3,535,750 2,097,819 3,607,080 2,140,140 2,084,036 (56,104) -2.6% Refuse Collection Fees 167,701 165.950 138,281 170,217 141,836 140,754 (1,082) -0.8% Interest Eamings 203,345 217 ,821 143,414 204,345 134,541 121,423 (13,118 -9.8% Miscellaneous/Other 217,250 284,251 284,251 - 4 4 - 0.0% nnnninn - Utility Tax-Knutzen Theatre 118,869 118,869 100,000 121,840 121,840 121,840 - 0.0% Utility Tax-Debt Service 4,242,273 4,202,629 2,125,601 3,885.861 - - - n/a Utility Tax-Arterial Streets 890,625 890,625 890,625 890,625 890,625 890,625 - 0.0% otal Operating Revenues 23,240,742 23,650,878 16,560,937 21,819,162 .13,120,285 15,370,756 2,250,471 17.20/. OPERATING EXPENDITURES City Overlay Program 1,547,040 1,495,865 1,444,669 1.599,792 1,490,627 1,490,627 - 0.0% Utility Tax-Admin/Cash Mgmt Fees 54,429 54,429 40,822 55,237 41,428 41 ,428 0 0.0% Solid Waste 387,238 322,151 223,327 340,130 235,791 231,379 4,412 1.9% Hotel/Motel Lodging Tax 567,446 509,592 481,943 282,627 267,293 154,309 112,984 42.3% Debt Service 6,833,128 6,801,614 2,576,074 3,678,856 2,593,986 2,593.986 - 0.0% Surface Water Management 2,864,111 2,684.052 2,006,650 2,975,739 2,224,721 2;177,311 47,410 2.1% Dumas Bay Centre 538,575 478,294 355,083 534,628 396,906 378,782 18,123 4.6% Knutzen Family Theatre 201,090 168,945 125,386 201,720 149.710 134,657 15,053 10.1% Utility Tax-Celebration Park 238,798 238,798 238,798 245,962 245,962 245.962 - 0.0% Utility Tax-Kenneth Jones Pool 314,000 314,000 94,096 319,000 ' 319,000 319,000 - 0.0% Utility Tax-Arts CommlRW&B Festival 93,750 93,750 93,750 93,750 93,750 93,750 - 0.0% Utility Tax-Police Positions 625,000 625,000 625,000 625,000 625,000 625,000 - 0.0% Utility Tax-Street Bond Projects 192,000 192,000 192,000 202,000 202,000 202,000 - 0.0% Utility Tax-New Street Ughts 93,900 93,900 93,900 108,300 108,300 108,300 - 0.0% Utility Tax-Knutzen Family Theatre 118,869 118,869 100,000 121,840 121,840 121,840 - 0.0% Utility Tax-Arterial Streets Overlay 890,625 890,625 890,625 890,625 890,625 890,625 - 0.0% Utility Tax-Camp Kilworth M&O - - - 50,000 50,000 50,000 - 0.0% Utility Tax-Debt Service 4,242,273 4,202,629 2,125,601 3,885,861 - - - n/a Utility Tax-Transportation CIP 890,625 890,625 890,625 890,625 890,625 890,625 - 0.0% [Total Operating Expenditures 20,692,897 20,175,138 12,598,348 17,101,692 10,947,564 10,749,581 197,983 1.8% Operating Revenues over/{under) Operating Expenditures 2,547,845 3,475,739 3,962,588 4,717,470 2,172,721 4,621,175 2,448,454 112.7% OTHER FINANCING SOURCES One-Time Transfers In 60,404 62,904 19,404 - - - - n/a Grants/Mitigation/Other 175,036 257,131 117,316 123,280 299,773 299,773 - 0.0% Total Other Financing Sources 235,440 320,035 136,720 123,280 299,773 299,773 . 0.00/. OTHER FINANCING USES One-Time Transfers Out 2,830,419 2,679,974 1,979,974 4,25S,095 4,255,096 4,255,096 - 0.0% Other - - - - - - - n/a Total Other Financing Uses 2,830,419 2,679,974 1,979,974 4,255,095 4,255,096 4,255,096 . 0.00/. ENDING FUND BAlANCE Arterial Street - 97,272 (12,663) (1) - (26,743) n/a n/a Utility Tax 868,708 1,027,502 1,901,434 1,228,801 - 3,438,365 n/a n/a Solid Waste & Recycling 60,641 121,707 86,339 75,072 - 218,222 n/a n/a Hotel/Motel Lodging Tax - 132,627 88,553 - - 154,533 n/a n/a Paths & Trails 14,991 15,272 12,579 24,831 - 22,917 n/a n/a Debt Service Fund 2,815,373 3,195,705 4,338,340 3,902,710 - 2,151,637 n/a n/a Surface Water Management 799,420 1,120,908 330,327 1,059,622 - 373,379 n/a n/a Dumas Bay Centre Operations - (14,816) (34,977) (16,046) - (18,971) n/a n/a Knutzen Family Theatre 3,869 28,875 19,539 35,716 - 77,564 n/a n/a otal Ending Fund Balance $ 4,563,002 $ 5,725,052 $ 6,729,472 $ 6,310,705 $ . $ 6,390,903 n/a n/a FHSRAC 10/31/06 0-3 Real Estate Excise Tax Compared to 2005, collections are up $592K or 15.8%. September's receipt of $822K is $306K above September 2005's activity and includes a total of 249 real estate transactions, of which 83 were tax exempt and of the remaining 166, 8 were mobile home sales. The annex area has contributed year-to-date revenue of $64,085. The largest transactions in the current month consist of the sales of Vacant industrial land @ 21st Ave S & S 344th St, a residential home, Calvary Community Church, East Campus office building. REAL EstA TE EXCISE TAX REVENUES Year to date thru September 200S 2006 Change from 2005 Month Actual Actual $Var %Var Jan $ 170,866 $ 157,303 $ (13,563) -7.9% Feb 275,617 468,067 192,449 69.8% Mar 384,048 585,651 201,602 52.5% Apr 784,135 464,491 (319,644) -40.8% May 481,264 536,863 55,599 11.6% Jun 425,029 403,129 (21,900) -5.2% Jul 290,288 472,383 182,095 62.7% Aug 416.213 425,803 9,591 2.3% Sep 515,578 821,731 306.153 59.4% Oet 237.983 - - - Noli 357,228 - - - Dee 357,736 - - - YTD Total $ 3,743,038 $ 4,335,420 $ 592,382 15.8% Sales Tax Year-to-date revenue of $9.23M is above September 2005 year-to-date revenue of $8.23M by $993k or 12.1%. The current month's Sales Tax of $1.06M is above the 2005 montWy activity by $59K or 5.8%. As shown in the detail by SIC code table, new construction alone increased by $589K, which is the primary contributing factor of the positive bottom line. In addition, the major projects that contributed to this increase are mainly public projects. For these reasons, the sales tax improvement is temporary in nature, different than the broad based economic improvement which would be more sustainable. LOCAL RETAIL SALES. TAX REVENUES Year-to-date thruSeptemlJer 2005 .2006 Chiwie from 2()05 Month Actual Actual S % Jan $ 862.219 $ 938.053 $ 75,834 8.8% Feb 1 ,155,867 1,365,682 209,815 18.2% Mar 794,197 862.566 68,369 8.6% Apr 752,487 862,628 110,141 14.6% May 935.065 996,964 61,899 6.6% Jun 857.410 964.270 106,860 12.5% Jul 813,885 975,607 161,722 19.9% Aug 1,057,583 1.197.003 139,420 13.2% Sep 1.004,058 1,062,683 58,625 5.8% Oct 994,469 - - - Nov 1,051,158 - - - Dec 1,027,139 - - - YTO Total $ 8,232,771 $ 9,225,456 $ 992,685 12.10/. Sales Tax bv SIC Code COMPARISON OF SALES TAX COLLECTIONS BY SIC GROUP Year-to-date thru September Component 200S 2006 Change from 200S Group Actual" Actual $ % Retail Trade $ 4,396,717 $ 4.696,404 $ 299,687 6.8% Services 1,621,700 1.704,983 83,283 5.1% Construct/Contract 954.111 1.543.077 588,966 61.7% Wholesaling 371,294 414.231 42.937 11.6% Transp/Utility 9,623 12.485 2,862 29.7% Information 466.897 414,989 (51.908) -11.1% Manufacturing 97.438 123.471 26,033 26.7% Government 46,370 29,386 (16.984) -36.6% Fin/Ins/Real Estate 252.038 259.855 7,817 3.1% Other 16.583 26,575 9,992 60.3% Total $ 8,232,771 $ 9,225,456 $ 992.685 12.1% Retail sales continue to remain the largest source of sales tax revenue, accounting for 51 % of all sales tax collections. Year-to-date retail sales tax collection is up $300K or 7% above year-to-date 2005; majority of the increase is in the following areas: miscellaneous store retailers, electronics and appliances, general merchandise stores, and motor vehicles and parts dealer. Services industry accounts for 18% of the total sales tax collections. On year-to-clate basis, services sales tax is up $83K or 5% compared to 2005. This includes $100K in one-time increase from a major software company. The current month's positive variance is less than prior month due to an adjustment of $160K made by the state for an error in tax distribution. Prior month sales tax was reported incorrectly by a major software company. Construction and contracting activity, which accounts for 17% of sales tax collections, is up $589K or 62% from 2005's activity. Sales tax received year-to-date on major City projects total $458K or 30% of total construction and contracting activity. Sales Tax bv Activity The City's largest retail center, South 348th, which generates 13% of the City's sales tax, is showing an increase of$60K or 5% compared to the year 2005. The Commons is showing an increase of $9K or 1% compared to year 2005 activity. Major Auto Sale's collection total $332K and is $14K or 4% above 2005. S 312th to S3l6th tax collections are up by $14K or 3% comparing to prior year. Pavilion Center tax collections are up by $5K or 1 % comparing to prior year. Federal Way Crossings is the newest addition in 2006. Therefore, history information is not available. Year to date collection totals $29K. FHSRAC 10/31/06 0-4 SALES TAX COMPARISON by AREA Year-to-date thru September 2005 2006 Chg from 2005 Group AcJual Actual $ % Total Sales Tax $8,232,171 $9,225,456 $992,685 12.1% 5 348th Block $1,123,921 $1,184,211 $60,290 5.4% % chg from prey yr -17.5% 5.4% na na Percentage of total 13.7% 12.8% -0.8% -6.0% The Commons 755,208 764,511 9,303 1.2% % chg from prey yr 7.2% 1.2% na na Percentage of total 9.2% 8.3% -0.9% -9.7% Major Auto Sales 318,553 332,275 13,722. 4.3% % chg fnom prey yr -15.7% 4.3% na na Percentage of total 3.9% 3.6% -0.3% -6.9% 5 312th to S 316th 428,637 442,911 14,274 3.3% % chg fnom prey yr -18.9% 3.3% na na Percentage of total 5.2% 4.8% -0.4% -7.8% Pavilion Center 352,204 356,921 4,717 1,3% % chg from prey yr -17.6% 1.3% na na Percentage of total 4.3% 3.9% -0.4% -9.6";'; FW Crossings - 29,261 29,261 100.0% % chg from prey yr na na na na Percentage of total na 0.3% na na Gambling Tax Gambling tax collection through September is $1.04M. In comparison to 2005 year-to-date collection, 2006's tax collection is lower by $114K or 9.9%. January and February's favorable variance is the result of a change in accounting of accruals and therefore includes approximately $50K of 2005 gambling taxes. March through August gambling tax is declining mainly due to two major establishments' decreased activity. Smoking ban appears to be a factor for the decrease. Our biggest contributor experienced approximately 18% decrease when comparing to 2005 year-to-date, while the other smaller establishments faced a decrease anywhere from 6% to 58% in activities. The annex area has contributed year-to-date revenue of$14,506. GAMBLING TAX REVENUE Ye~r- To-Q~te Through September 2005 '2006 Change from 2005 Month Actual Actual $ Var %Var Jan $137,311 $ 145,990 $ 8,680 6.3% Feb 115,768 123,992 8,223 7.1% Mar 130,206 103,346 (26,860) -20.6% Apr 136,467 121,394 (15,073) -11.0% May 132,353 94,551 (37,802) -28.6% Jun 122,257 101,385 (20,872) -17.1% Jul 130,114 104,308 (25,806) -19.8% Aug 133,906 124,513 (9,393) -7.0% Sep 115,878 120,683 4,805 4.1 % Oct 150,900 - - - Nov 119,925 - - - Dee 75,979 - - - Total $1,154,261 1,040,163 (114,O98) -9.9% Table reflects gambling activities on a cash basis. Utility Tax Utility taxes received through September total $6.69M and is above 2005 year to date collections by $546K or 9%. UTILITY TAXES Year-to-date tI1ru September 2005 2006 Chg from 2005 Actual Actu;J1 $Var %Var 726,583 $ 876,526 $ 149,943 20.6% 794.152 838.752 44.600 5.6% 731,064 801.915 70,851 9.7% 770,397 923,992 153,596 19.9% 745,699 768,173 22,475 3.0% 592,788 644,689 51,900 8.8% 609,227 655.651 46,424 7.6% 585,489 627,881 42,392 7.2% 590.070 553,429 (36.642) -6.2% 636,521 635,678 882,017 (7.165) (5.164) 2.001 -27.9% 6,145,469 $ 6.691,008 $ 545,539 a.9O/' Month Jan $ Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dee Tax Rebate YTD Total $ Tax rebates are excluded from total Compared to year-to-date 2005, Electricity is up $239K or 12%, Gas is up $238K or 23%, Cable is down $24K or 4%, Phone is down $43K or 6%, and Cellular phone is up $108K or 9%. UTILITY TAXES Year-tCHlate thru September Electric Gas Solid Waste Cable Phone Cellular Pager SWM ax Rebate Total 2005 Actual $ 1,990,215 1,019,180 395,693 650,059 744,141 1,231,931 1,760 112,491 (7,.165) $ 6,145,469 2006 Actual $ 2,229,112 $ 1,257,023 425,548 626,196 700,811 1,340,387 199 111,732 (5,164) $ 6.691,008 $ Change from :?Q05 $ Var % Var 238,897 12.0% 237,843 23.3% 29,855 7.5% (23,863) -3.7% (43,329) -5.8% 108,455 8.8% (1,561) -88.7% (759) -0.7% 2,001 -27.9% 545,539 8.9% Tax rebates are excluded from total HoteVMotel Lodging Tax HotellMotel lodging tax collections through September total $122K. Compared to 2005, the lodging tax is $10K or 9% above the same period. HOTEUMOTEL LODGING TAX REVENUISS Year-(o.date thrl.! September 2005 2006 Change from 2005 Month Actual Actual $Var % VaT Jan $ 9,669 $ 11.357 $ 1,687 17.5% Feb $ 11.717 $ 11,290 (427) -3.6% Mar $ 9,153 $ 11,953 2,800 30.6% Apr $ 11,390 $ 11,675 284 2.5% May $ 14,067 $ 15,039 972 6.9% Jun $ 11,566 $ 11.798 232 2.0% Jul $ 12,247 $ 14,245 1,998 16.3% Aug $ 14,632 $ 16,626 1,994 13.6% Sep $ 17.633 $ 18.082 449 2.5% Oct $ 18.047 $ - - - Nov $ 13.765 $ - - - Dec $ 14.231 $ - - - Y I U Iota. $ .112,074 $ 122,064 $ 9,989 8.9% FHSRAC 10/31/06 D-5 State Shared Revenue Year-to-date distribution of $3.69M is above 2005's activity by $246K or 7%. Liquor profits tax is down while local criminal justice sales tax and fuel tax are up. The . City received $45K in July for the criminal justice high crime. Year to date through September, new gas tax effective in August 2005 has contributed $146K of the increase. STATE SHARED REVENUES Year to date thru September 2005 2006 Change from 2005 Revenue Actual Actual $ % Liquor Profits Tax $ 468,724 $ 416,817 $ (51,907) -11.1% Liquor Excise Tax 258,941 262,990 4,049 1.6% Crim Just Low-Pop/DCD 58,871 60,299 1,429 2.4% Criminal Just High Crime - 45,124 45,124 100.0% Local Crim Just Sales Tax 1,321,627 1,445,872 124,245 9.4% Fuel Tax. 1,324,880 1,448.452 123,572 9.3% OUI - Cities 10,757 10,700 (57) .{).5% Total $ 3,443,800 $ 3,690,255 $ 246,455 7.2% . Fuel tax is included in both general/street and designated operating funds. Permit Activity Year-to-date building permit activity is below 2005's year- to-date activity by $322K or 13%. The primary reason for the negative balance is due to 2005 being a record year with respect to large permits from April through June of 2005, such as: Christian Faith Center, Wal-Mart, Danville Station, Collela Estates, Celebration Center, and Woodstone Credit Union. The unfavorable change in September is due decreasing in building activities during the month when comparing to prior period. Significant permits during September include: LA Fitness and Quadrant. BUILDING PERMITS & FEES Year-to-Date Through September 2005 2006 Change from 2005 A~tual Actual $ % Jan 164,108 111,925 (52,184) -31.8% Feb 160,765 239,689 78,924 49,1% Mar 206,886 217,839 10,953 5.3% Apr 421,260 306,214 (115,046) -27.3% May 452,483 228,733 (223,749) -49.4% Jun 330,658 245,637 (85,021 ) -25.7% Jul 215,967 274,730 58,762 27.2% Aug 314,271 404,316 90,045 28.7% Sep 255,906 171,649 (84,257) -32.9% Oct 285,630 - - - Nov 175,341 - - - Dee 158,092 - - - YTD Total 2,522,305 2,200,731 (321,573) -12.7% Annual Total 3,141,368 na na Community Development's positive expenditure variance of$114K is due to under spending one-time programs. Right-of-way permits and development services fees are up by $130K or 50% when compared to 2005's year-to- date activity. Due to a very active construction sector. ROW PERMITS & DEVELOpMENT SERVICES FEES Year-to-Date Through September 2005 2006 Change from 2005 Actual Actual $ % Jan 20,643 36,913 16,271 78.8% Feb 27,622 45,720 18,099 65,5% Mar 23,748 34,545 10,797 45.5% Apr 23,253 25,072 1,818 7.8% May 36,684 33,195 (3.490) -9.5% Jun 28,971 44,256 15,285 52.8% Jul 30,332 39,068 8,736 28.8% Aug 29,350 101,615 72,265 246.2% Sep 39,638 29,635 (10,003) -25.2% Oct 19,992 - - - Nov 27,648 - - - Dee 38,724 - - - YTD Total 260,240 390,018 129,777 49.9% Annual Total 346.605 na na Public Work's positive expenditures variance of $168K is due to under spending of Greater Federal Way Joint Emergency Management Funds, salary savings from 1 sl quarter's Emergency Management Coordinator position vacancy, under spending of one-time funded programs, and timelier billing and cost recovery for permit fees, inspections and plan checking fees. As well as timing difference for other goods and services. Public Safety Expenditures through September total $12.9M, which is $370K or 2,9% above the year-to-date budget of $12.6M. This negative variance is due to salaries and wages, overtime, other miscellaneous service and charges, and timing of the Valley Conununication Contract. Revenues through September total $726K and is $53K or 8% above year-to-date estimate. The favorable variance is' due to litigation settlement funds of$84K received in 2006 for bulletproof vests. Through September, City overtime is 10% or $38K above last year. There is a 22% decrease in overtime for contracted services and traffic school. When the decrease from the billable overtime is included, the total overtime increased is reduced to $22K or 5%. Type 2005 2006 $ % Training $ 11,779 $ 22,928 $ 11.150 95% Court 23.373 22.572 (801) -3% Field Oper 288,674 322,753 34,079 12% SOAP n/a Other 53,567 47,238 (6,329) -12% City Portion 377,392 415,491 38,099 10% Contract/Grant 35,061 31,027 (4.034) -12% Traffic School 38,959 27,446 (11,512) -30% Homeland See 828 (828) -100% Billable 74,847 58.473 (16,374) -22% Grand Total $ 452,239 $ 473,964 $ 21,725 5% FHSRAC 10/31/06 D-6 PS Overtime By Month Change 2005 2006 $ % Jan $ 50,235 $ 51,717 $ 1 ,482 3% Feb 54.688 46,446 (8,242) -15% Mar 48,571 51,638 3,067 6% Apr 53,135 56,413 3,278 6% May 38,533 45,026 6,493 17% Jun 55,867 61,129 5,262 9% Jul 44,155 53,903 9,748 22% Aug 45,364 49,527 4,162 9% Sep 61,691 58,165 (3,526) -6% Oct 41,252 - - - Nov 67,305 - - - Dec 42,002 - - - YTD $ 452,239 $ 473,964 $ 21,725 5% Annual Total $ 602,799 ..... . ........ -... . . . . . . . . . . . Jail Services Jail Services through September is $895K, which is $23K or 2.5% below the year-to.date budget of $918K. The favorable variance is mainly due to less booking activities comparing to 2005. Court Revenue Excluding probation through September revenue is up $138K or 26% compared to year-to-date 2005. COURT REVENUE Through September 2005 2006 Chimge from ~()()5 Month Actual Actual $Var %V<ir January $ 62,618 $ 63,844 $ 1,226 2.0% February 63,236 77,646 14,410 22.8% March 61,529 68,498 6,969 11.3% April 60,872 75,494 14,622 24.0% May 63,309 78.082 14,773 23.3% June 55,631 81,345 25,714 46.2% July . 50,952 68,616 17 ,665 34.7% August 55,280 78,613 23,333 42.2% September 56,387 75,256 18,870 33.5% October 77 ,052 - - 0.0% November 68,906 - - 0.0% December 68,535 - - 0.0% Subtotal $ 529,813 $ 667,395 $ 137,582 26.0% Probation SVC5 80,777 66,297 (14,480) -17.9% YTD Total $ 610,590 $ 733,692 $ 123,102 20.2% Traffic and non-parking fines total $403K and is $58K or 17% above year-to-date 2005. Parking infractions total $50K and is $26K or 106% above year-to-date 2005. DUI and other misdemeanors total $70K and is $2K or 4% above year-to-date 2005. Criminal costs total $32K and is $5K or 18% above year-to-date 2005. Criminal Conviction Fees total $18K and is above year-to-date 2005 by $18K. The City didn't start receiving the fees until August of2005. Services and Charges total is $27K and is above year-to-date 2005 by $18K. This category includes Legal Services which the City didn't start receiving until June of 2005. Shared Court Costs total is $6K and is above year-to-date 2005 by $5K because this category includes Court Enhancement revenue which the City didn't start receiving until October of 2005. COURT REVENUE By Category Through September 2005 ~006 Change from 2005 Actual Actual $ Var %Var Civil Penalties $ 9,956 $ 11,993 $ 2,037 20.5% Traffic & Non-Parking 345,326 403,374 58,048 .16.8% Parking Infractions 24,086 49,704 25,619 106.4% OUt & Other Misd 67,440 69,893 2,454 3.6% Criminal Traffic Misd 32,538 30.837 (1,701) -5.2% Criminal Costs. 27,409 32,331 4,923 18.0% Interest I Other I Mise 11,768 17,203 5,434 46.2% Criminal Conv Fees 535 18,381 17,846 nla Shared Court Costs 1,461 6,419 4,957 nla Services & Charges 9,294 27,260 17,966 nla Subtotal .$ 529,813 $ 667,395 $ 137,582 26.0% Probation Services 80,777 66,297 (14,480) -17.9% YTD Total $ 610,590 $ 733,692 $ 123,102 20.2% . Criminal costs include screener fees. Municipal Court year-to-date expenditures of $792K is . $41K or 5% below estimates. Salary and benefits are down due to position vacancies earlier this year, and also under spending of one-time funded programs. Parks & Recreation Overall parks operations expenditures through September are on target with year-to-date budget estimates. Dumas Bay Centre revenues and expenditures are both below budget. Knutzen Family Theatre's revenue exceeds budget while expenditures are below. Recreation and Cultural Services Direct program expenditures total $989K or 74.4% of the total annual budget of $1.33M not including indirect costs. Including indirect administration costs, recreation expenditures total $1.25M and are 74.8% of the total annual budget of $1.68M. Recreation fees total $734K and are 88.6% of the total annual budget of $829K, Recreation fees have recovered 74.3% of direct program costs and is 11.9% above the annual budgeted recovery ratio of 62.4%. Considering indirect administration costs, the recovery ratio is reduced to 58.6% or 9.1% above the annual budgeted recovery ratio of 49.5%. Dumas Bav Centre Dumas Bay Centre operating revenue of $360K is down by $l5K or 4% compared to the year-to-date budget of $375K. Operating expenditures through September total $379K, which is $18K or 4.6% below the year-to-date budget of $397K. Dumas Bay Centre has recovered 95% of its operating expenses. Knutzen Familv Theatre Operating revenue of$87K is up $34K or 65.5% compared to the year-to-date budget of $52K. Operating expenditures through September total $13 5K, which is $15K or 10% below the year-to-date budget of $l50K. Knutzen Theatre has recovered 64.4% of its operating expenses. FHSRAC 10/31/06 D-7 RECREATION & CULTURAL SERVICE PROGRAMS AND DUMAS BAY CENTRE PERFORMANCE Year to Date Through Septemb.er 2006 T RE!venues I Expenditures I Recovery Ratio % Program I Budget I Actual I % I Budget I Actual I % Budget I Actual RECREATION & CULTURAL SERVICE PROGRAMS Steel Lake Aquatics 2,000 2,045 102.2% 20,398 13,963 68.5% 9.8% 14.6% Arts & Special Events 93,600 100,494 107.4% 234,700 135,701 57.8% 39.9% 74.1% Youth Athletics 60,558 45,094 74,5% 90,131 39,177 43.5% 67.2% 115.1% . Adult Athletics 204,970 190,437 92.9% 129,766 112,467 86.7% 158.0% 169.3% Community Recreation 170,300 114,224 67.1% 178,019 114,703 64.4% 95.7% 99.6% Community Center 28,500 31,874 111.8% 76,059 85,745 112.7% 37.5% 37.2% Recreation Inc 18,512 39,466 213.2% 60,776 55,432 91.2% 30.5% 71.2% Youth Commission 500 936 187.3% . 1,800 1,122 62.3% 27.8% 83.5% Red, White & Blue* 25,700 25,104 97.7% 41,200 48,797 118.4% 62.4% nfa Senior Services 16,195 31,119 192.2% 70,105 57,517 82.0% 23.1% 54.1% Kenneth Jones Pool 208,000 153,628 73.9% 425,795 324,172 76.1% 48.8% 47.4% Subtotal $ 828.835 $ 734.422 88.6% $ 1,328.749 $ 988,796 74.4% 62.4% 74.3OIc Administration - - 0.0% 347,163 265,400 76.4% n1a nfa I TOTAL RECREATION I $ 828,835 1 $ 1,254,195 I 74.8%1 49.5%1 58.6o/~ Dumas Bay Centre Knutzen Family Theatre I TOTAL DUMAS BAY CENTRE Arts Commission* GRAND TOTAL 534,628 201,720 736,349 I $ 119,601 2,531.862 $ 378,782 134,657 513,440 I 43,702 1,811,337 . Exdudes interfund transfers and CelebratlonPark. Other Departmental Variances one-time funded programs, To date, only 35% of the one- time programs have been spent. City Council year-to-date expenditures total $336K is $18K above estimate due to timing of payment and dues mcreases, Management Services year-to-date expenditures of $1.52M is $79K above budget due to timing of election cost which will reverse at year-end. The department expects to be within appropriated budget by year-end, City Manager year-to-date expenditures of$635K is below estimates by $55K due to salary savings from the vacant City Manager position. Law year-to-date expenditures total $839K and is $57K below estimates due to timing of professional services and of one-time programs. To date, only $52K or 44% of the $118K one-time budget has been spent. Economic Development year-to-date expenditures of $162K is $62K below estimates due to under spending of FHSRAC 10/31/06 0-8 DEBT SERVICE Under RCW 39.36.020(2), The City Council may approve bond issues not to exceed 1.5% of the City's assessed valuation. In addition, the public may vote to approve bond issues for general government in an amount not to exceed 2.5% of the value of all taxable property within the City. The City's outstanding total general obligation debt is $26M at September 30, 2006, including the note assumption for the acquisition of the new city hall facility and Community Center bond issue. This leaves the City with a remaining debt capacity without voter approval of $88M and an additional $73M that can be accessed with voter approval. The voter approved capacity is generally referred to as unlimited tax general obligation debt, which requires 60% voter approval and the election must have a voter tumol,lt of at least 40% of those who voted in the last State general election. With this vote, the voter approves additional property tax be levied above and beyond the constitutional and statutory caps on property tax. In addition to these general purpose debt capacity, RCW 39.36.030(4) also allows voters to approve park facilities and utility bond issues, each limited to 2.5% of the City's assessed valuation. Therefore, legally the City can issue up to a total of7.5% of the City's assessed valuation in bonds for $524M. The Public Works Trust Fund Loans are the obligation of the Surface Water Utility and backed by the rates collected from users and are not considered as the City's general obligation debts nor are they subject to the limitation of indebtedness calculation. The tables below show the available debt capacity for the City and schedule of oustanding debt as of September 30, 2006. COMPUTATION OF LlMrrATION OF INDEBTEDNESS Sei>tember 30, 2006 General Pumoses Excess Levy Excess Levy Total Councilmanic Excess Levy Open Space Utility Debt DESCRIPTION (Limited GOl (Unlimited GOl and Park Pumoses CaDacilY . AV= $ 7,251,992,701 (A) 1.50% $ 108.779,891 $ (108,779,891) 2.50% 181,299,818 181,299,818 181,299,818 $ 543,899,453 Add: Casb on hand for debt redemption (B) 5,590,002 - - 5,590,002 Less: COPs outstanding - - - Bonds outstanding (25,952,295) - - (25,952,295) REMAINING DEBT CAPACITY $ 88,417,597 $ 72,519,927 $ 181,299,818 $ 181,299,818 $ 523,537,159 GENERAL CAPACITY (C) $160,937,524 (A) Final 2006 Assessed Valuation. (B) Fund balance of$2, 151,637 in debt service prefunding balance and $3,438,365 in utility tax fund. (C) Combined total for Councilmanic, and Excess Levy capacities. OUTSTANDING GENERAL OBLIGATION DEBT - As of September 30,2006 Amount Outstanding Outstanding Funding Date of Maturity Originally Debt as of Amount Debt as of Callable Callable Description Purpose Source Issue Date Interest Rate Issued 1/1/2006 Redeemed 9/3012006 Date Amount General Obligation Bands: 1997 Limited Knutzen Theatre, Utax 22-Apr-97 I-Dec-12 5.00 - 5.30 16,150,000 5,345,000 (1,685,000) 3,660.000 1-]un-06 3.660.000 Sporlsfields, Downtown PS Facilitv 2000 Limited Valley Comm (911 REET 12.Sep-00 I-Dec-15 5.31 2,551,600 1,908,000 1,908,000 I-Dec-IO 1,069,000 Dispatcb )-Center Bldg & Equipment 2003 Limited Paragon Building REET 1-]ul-03 I-Nov-07 7.58 6,168,599 5,965,804 (71,508) 5,894,295 I-Apr-07 5,800,000 GMAC Loan Assumntion 2003 Limited Community Center Utax 15-Nov-03 I-Dec-33 4.67 15,000,000 14,490,000 - 14,490,000 I-Dec-13 11,955,000 Total General Obli.ation Debt $ 39870 199 $ 27 708 804 $ 1 756 508) $ 25952295 22 484 000 Public Works Trust Fund Loan: PWTL SWM ClP-Kilts SWM 31-Aug-94. 1-]ul-14 \.00 1,555,440 776,155 (86.239) 689,916 - Cnrner Project 24-]ul-96 & 04-Sen-97 PWTL SWM ClP-SeaTac SWM 31-May& 14 1-]ul-19 \.00 2,475,000 1,345,676 (96,120) 1,249,556 - - Mall Detention Aug Pro'. Subtotal PWTFL 4,030,440 2,121;831 (182,359) 1.939,472 - - Grand Total $ 43,900,639 $ 29,830,635 $ (1,938,867) $ 27,891.767 $ 22,484,000 FHSRAC 10/31/06 0-9 CASH & INVESTMENTS The following table shows the in-house investment activity schedule and their related yields and comparison to benchmark. Per policy, the basis used by the City to detennine whether market yields are being achieved is the range between the average 6- month US Treasury Bill (5.07%) and the State Investment Pool (5.20%). The portfolio average current in-house investment yield is 5.10% actually falls between the two benchmarks. Investment Schedule SeDtember 2006 Settlement Interest Investment Maturity Yield to TVDe Date Payments Par Amount Cost Date Maturity Aaencv - FFCB 31331QN78 06/09/03 03/09 - 09/09 $ 1,000,000 $ 999,500 03/09/07 2.46% Aaencv - FNMA 3136F3VQ6 OS/27/03 OS/25/06 $ 1,000,000 $ 1,000,750 OS/25/07 2.48% Aaencv - FNMA 3136F3UT1 05/30/03 06/03/06 $ 1,000,000 $ 997,529 12103/07 2,59% Aaencv- FHLMC 3128X1VW4 08/22103 01/30/06 - 7/31/06 $ 900,000 $ 887,400 01/30107 3,18% Aaencv - FHLB 3133XBT54 OS/25/05 11/25/05 ~ 5/25/06 $ 1,000,000 $ 1,000,000 OS/25/07 4.07% Aaencv - FHLB 3133XBT54 OS/25/05 11/25/05 - 5/25/06 $ 1,000,000 $ 1,000,000 OS/25/07 4.07% Aaencv - FHLMC 3128X4RFO 10/24105 04/05/06 - 10/06/06 $ 1,000,000 $ 999,990 10/24/07 4.63% Aaencv- FHLMC 3128X4RFO 10/24/05 04/05/06 - 10/06/06 $ 1,000,000 $ 1,000,000 10/24/07 4.63% 1 year T-BiII 912827Z62 10/15/05 04/15/05 - 10/15/06 $ 1,022,900 $ 1,022,900 10/15/06 4,15% Aaencv- FHLMC 3128X46M8 08/23/06 . Bullet no int until end $ 1,001,419 $ 1,001,419 08/15/07 5.28% Aaencv - FHLMC 3128X46M8 08/23/06 Bullet no int until end $ 1,001,419 $ 1,001,419 08/16107 5.28% Aaencv- FHLB 3133XGNG4 08/22/06 2122 & 8/21 $ 1,000,150 $ 1,000,150 02121/08 5.40% Agency- FHLB 3133XGNG4 08/22106 2122 & 8/22 $ 1,000,150 $ 1,000,150 02122108 5.40% Subtotal In-House Investments $12,926,038 $ 12,911,207 Averaae Maturity 355 Averaae Yield to MatlJritv 4.35% Averaae Yield - 6 mo. T-Bill 5.07% Municipal Investor Account $ 14,127,929 1 day 5.38% State Investment Pool $ 39,984,240 1 day 5.20% Averaae Portfolio Maturitv & Yield 69 5.10% Totallnvestmen~ $ .67,023,375 The total invested balance at the end of September is $67.02M, which includes $39.98M in the state investment pool, $12.91M in-house investment purchases, and $14.13M in the Municipal Investor Accounts. The state pool is composed of repurchase agreements (72.41%), agency coupons and callables (11.65%), IB bank deposit (6,65%), agency floating rate notes (4.05%), discount notes (2.51 %) and certificates of deposit (2.73%). The City's total investment portfolio is made up of 60% State Pool, 19% In-House Investments, and 21% Municipal Investors Accounts. Municipal hvenstors Account 21% Total Portfolio by Category September 30, 2006 Interest Rates Comparison For the Month of September 2006 6.0% 3.0% [] 6 tv'onth T-BiII 5.0% 4.0% . State hvestrrent Fbol [] h-house hvestrrent 2.0% 1.0% [] M.micipal hvestor Account h-House hvestrrents 19% State Investrrnt FOOl 60% 0.0% . Fbrtfolio Average 2003 2004 2005 2006 FHSRAC 10/31/06 0-10 COUNCIL MEETING DATE: November 7,2006 ITEM #: --_..__._----~------------------_...._---------_._-_.---..----.---------.------.--........-..-----...---..--.-----...------.---..-.------.-------. CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: VOUCHERS POLICY QUESTION: Should the City approve the vouchers in the total amount of $3,875,711.78 COMMITTEE: Finance, Human Services & Regional Affairs Committee MEETING DATE: October 31, 2006 CATEGORY: [gI Consent o City Council Business o Ordinance O. Resolution o o Public Hearing Other ~! AFF ~!'.2RT _!l..Y...:.. Th~~au~ Fina~~~_M_anager .____.__..____._______ DEPT:_~anagement Services I, the undersigned, do hereby certify under penalty of petjury that the materials have been furnished, the services rendered, or the labor performed as described herein and that the claims are just and due obligations against the City of Federal Way, Washi!} on, and that I a authorized to authenticate and certify said liens. Attachments: Voucher List Options Considered: NA STAFF RECOMMENDATION: NA ~' CITY MANAGER ApPROVAL: Committee DIRECTOR ApPROVAL: Council Committee Council COMMITTEE RECOMMENDATION: "] move approval of the vouchers andforward to the November 7,2006 Council Meetingfor approval. " Committee Chair Committee Member Committee Member "PROPOSED COUNCIL MOTION: "] move approval of the vouchers pursuant to RCW 42.24." (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: o APPROVED o DENIED o TABLEDffiEFERREDINO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # I ST reading Enactment reading ORDINANCE # RESOLUTION # T"" Q) C) C'CI Q. ~ :1: - ~~ ~w (,) C 1w OLL iU LL C 0 u..> .... (3 _co Ul 0 ...JO ~~ ~ 0) O~ Q.O) C'CI 0 :!E <( '<t '<t 0) o ~ m m m m m m m mm o 0 moo 0 0 m 0 oom o 0 0 0 0 0 0 0 0 000 N NON N N NON NNO o m ~ ~ N m ~ ~ N ~m~ N ~ m ~ N N ~ m ~ ~~~ -.... 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