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FEDRAC PKT 06-24-2008 ~>Fede[al Way City Council Finance/Economic Development/Regional Affairs Committee Tuesday, June 24, 2008 City Hall 5:30 p.m. Hylebos Conference Room AGENDA 1. CALL TO ORDER 2. PUBLIC COMMENT 3. COMMITTEE BUSINESS Topic Title/Description A. Approval of Minutes: May 27, 2008 Meeting B. Acceptance of Grant Funds from the Washington Traffic Safety Commission & Purchase of Motorcycles for the Police Traffic Unit C. Approval of Vouchers D. Monthly Financial Report E. Impact Fee Performance Audit Update (will be distributed at the meeting). Presenter K. Roe McCall Page # 1 4 Action or Info Action Action Turley Turley Kraus 7 51 N/A Action Action Info 4. OTHER A. Review November 7, 2006 Proposition 1 Utility Tax Rate Increase: Ordinances, (No. 06- 539 & 06-532) and Ballot Language (per Committee direction on Moy 27, 2008). (Page 62) B. Historical Review of the City's Asphalt Overlay Program (per Committee direction on Moy 27, 2008}.(Informationolltem presented by M. Solloum) 5. FUTURE AGENDA ITEMS · Neighborhood Program Status Update 6. NEXT MEETING: Tuesday, July 22, 2008 @ 5:30 p.m. COMMITTEE MEMBERS: Mike Park. Chair Dini Duclos Eric Faison CITY STAFF: Iwen Wang. Assistant City Manager/CFO Krystal Roe, Deputy City Clerk 253.835.2541 K: \FEDRAC\2008\06- 2008\6- 24-08 FEDRAC Agenda.doc ~ Federal Way City Council Finance/Economic Development/Regional Affairs Committee Tuesday, May 27, 2008 City Hall 5:30 p.m. Hylebos Conference Room MEETING SUMMARY 1. CALL TO ORDER: The meeting was called to order at 5:30 p.m. Committee Chair Park and Committee Member Faison present. Committee Member Duclos excused. 2. PUBLIC COMMENT: None. 3. COMMITTEE BUSINESS: I ! ! i AGENDA TOPIC, DISCUSSION & ACTION I A. Approval of Minutes: April 22. 2008 Meeting. : I ____~:~=~:_=~t~~~_~~~~~_t~_a~~~~_~~__t:~_~~_~t~_s~_~_~~~~~~t~~:_~~rri~~_~~_~: _ ___ ___________1________________ B. Fleet Maintenance Contract Award: Marwan Salloum presented the staff report I June 3 and noted that the agenda bill and report should be changed to reflect an ! Consent agreement of three years. not two. Mr. Salloum clarified that the bid documents I Agenda specified the three-year agreement. i i The Committee M/S/C to approve Option 1 (award the 2008 Fleet Maintenance I Contract, a three-year, non-exclusive fleet maintenance contract, to Pacific I Coast Ford and authorize the City Manager to execute the contract). Carried 2 -I o. FORWARD TO COUNCIL N/A _._--_._~-"-----_._-------------------------~----,----..-"-"'--,-,--.-----.--.---....,.,.,---.-----.-.--.-. C. Final Draft Approval: City Center LIFT - Request for Concepts Vision Statement and Process: Mr. Doherty presented his staff report and noted there were _ several minor typographical corrections that should be made. The Committee was agreeable to making minor revisions to the document. so long as it remained "substantially similar ta form". In addition. Mr. Doherty asked the Committee to consider forwarding the item to the next Council meeting on June 3 (rather than June 1 7) so that the RFC could I be published earlier and provide potential respondents with additional time to" review and prepare. The Committee amended the motion to forward to June 3. 2008 Council Consent. I The Committee M/S/C to approve the final draft of the City Center LIFT RFC; however, the RFC must remain substantially similar to form. The committeJ approved sending the item to Council on June 3, 2008. Carried 2 - O. .~-------_._-------------.-----------_._._-_._----_._------....---.----..---,.--..--.-.-.--.---...---.-.------.-_..~--._---_...- June 3 Consent Agenda 1 May 27.2008 FEDRAC Meeting Summory Minutes Page 2 of 3 D. Spring 2008 Tourism Enhancement Grant Applications: Mr. Doherty briefly reviewed the list of grant applicants and summarized the decision-making discussion at the Lodging Tax Advisory Committee meeting. The Committee M/S/C to approve the rEG awards as recommended by LTAC. Carried 2 - O. June 3 Consent Agenda _....___._..........u__..,___.._... _. ~ _ ...... .._...H_u_..'._,.,__....,._.......__.,__._.~_..__._.__.._.__..._.u._...____._.....___.__OU'...______u.__....._._."".."..,_. _.___........n._ E. ~pproval of Vouchers: No questions were posed. The Committee M/S/C to approve the vouchers as presented. Carried 2 - O. June 3 Consent Agenda F. Monthly financial Report: Mark Turley introduced Phung Huynh to the Committee. Ms. Huynh reviewed her report. June 3 Consent Agenda The Committee M/S/C to approve the report as presented. Carried 2 - O. G. Utility Tax Allocation and Uses (INFO ONLY - NO ACTION): Ms. Wang presented her report to the Committee and detailed the historical and current utility tax revenues and expenditures. She clarified that the 1.75% Proposition 1 revenue funds are tracked in a separate account. Any excess Prop 1 funds will be carried forward for that fund only. She noted that a substantial transfer (carry-forward) for the other 6% general utility tax will be necessary . Committee Member Faison asked staff to bring a copy of the ballot/ordinance language to the June FEDRAC meeting for review. Ms. Wang also announced that the City may realize a larger expenditure of utility Tax revenue in 2009 because of a potential grant match requirement for the SR 99 HOV Lanes Phase 4 project. Mr. Roe and Ms. Wang also discussed the potential of using the revenue historically allocated for the overlay project (1 %) for other expenditures; REEl revenue could be used in the place of Utility Tax revenue for the overlay project fund. A citizen inquired about historical overlay spending and questioned a seemingly-high contract award in recent years. Mr. Roe was asked to respond to the citizen's request at the June FEDRAC meeting. Ms. Wang made the following points regarding Proposition 1 funds: · The intention of Proposition 1 was to fund public safety for the long-term. Although short term revenues may exceed the expenditures. these funds will be carried forward for years with lower expenditures so that the level of public safety will remain the same. · The City will maintain the highest standards in accounting processes which will be audited annually by the State. · Council may have the right to authorize other expenditures of Proposition 1 funds toward related public safety programs - such as the Safe Cities Program. 4. OTHER: Mr. Roe and Councilmember Burbidge commented on the potentially evolving practice of awarding funds toward preservation projects rather than construction projects. Mr. Roe advised that Federal Way may need to begin positioning itself to be competitive for those types of grant- funding opportunities. 2 May 27, 2008 FEDRAC Meeting Summary Minutes Page 3 of 3 The Committee directed staff to provide a briefing on the School District/Lakota Park project at the next Parks, Recreation and Public Safety Meeting. Mr. Roe will coordinate the briefing which will include the School Districts development plans and anticipated timeline for the project. Ms. Wang clarified for the Committee and audience that the Regional Justice Facility is not currently on the City's Capital Facilities Plan. The Committee directed staff to bring this issue to the June Parks, Recreation and Public Safety Meeting as well. Ms. Wang also announced that grant funds have been received to fully pay for the purchase price of Camp Kilworth; whether or not the City will be permitted to buy the property remains to be seen. However. the funds ($1.25 million) currently set aside for its acquisition can now be used for other capital projects. In closing, the Committee thanked Ms. Wang for all her years of service to the City and noted that her efforts were extremely appreciated: she will be missed here in Federal Way. 5. FUTURE AGENDA ITEMS: Nothing further discussed. 6. NEXT MEETING: Tuesday, June 24, 2008 @ 5:30 p.m. Chair Park adjourned the meeting at 6:50 p.m. Attest: COMMITTEE APPROVAL: Mike Park Committee Chair Dini Duclos Committee Member Eric Faison Committee Member 3 COUNCIL MEETING DATE: July 1,2008 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: Transition from total motorcycle leasing to a partial lease and purchase plan; Accept grant monies from the WTSC to purchase two leased motorcycles; Purchase two new Harley Davidson motorcycles using existing Replacement-Reserve money; Continue to lease four motorcycles. POLICY QUESTION: Should the City of Federal Way / Police Department purchase two motorcycles they currently lease, using grant money. and two new motorcycles, using existing replacement-reserve money, while continuing to lease four motorcycles - in order to transition from a total leasing scheme to a partial lease plan? COMMITTEE: Finance/Economic Development Regional Affairs Council MEETING DATE: June 24,2008 Committee (FEDRAC) CATEGORY: [8J Consent o City Council Business STAFF REPORT By: STAN Attachments: 1. FEDRAC Staff Memo D Ordinance D Resolution o o Public Hearing Other COMMANDER DEPT: Police Department Options Considered: 1. Move to a partial lease plan - by purchasing two leased motorcycles with WTSC grant money; Purchase two new motorcycles with R&R money; Lease one additional motorcycle; Purchase a third leased motorcycle in 2009 with R&R money. 2. Continue to pursue leasing plans for all of the Traffic motorcycles. STAFF RECOMMENDATION: Sta commends - Option I. CITY MANAGER ApPROVAL: Council DIRECTOR ApPROVAL: (;ii)J- Committee ~ Council COMMITTEE RECOMMENDATION: PRPS recommends Option_ Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "[ move approval of the request by the Police Traffic Section to move away from a total motorcycle leasing plan to a partial leasing option, by purchasing two leased motorcycles with available WTSC grant money and two new motorcycles with replacement-reserve money. " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: o APPROVED o DENIED o T ABLEDIDEFERRED/NO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # 1ST reading Enactment reading ORDINANCE # RESOLUTION # 4 CITY OF FEDERAL WAY CITY COUNCIL COMMITTEE STAFF REPORT DATE: TO: VIA: FROM: June 24,2008 Finance / Economic Development Regional Affairs Council Committee Neal 1. Beets, City Manager@ BrianJ. WiIson,ChiefofPolice~'; -A-AJD,/ ~6/ AcnJ6 CI-I/6F SUBJECT: Police Traffic Motorcycle - Purchase & Lease Plan - Program Change Back2:round In 2006 and 2007 the Police Traffic Unit began leasing rather than purchasing all of the new replacement Harley Davidson motorcycles for the fleet. The analysis, at that time, indicated that leasing provided a greater cost savings to the City, over a strict purchasing plan. The Harley Davidson dealerships in Washington State have recently begun to eliminate motorcycle leasing plans, except for 'Sound Harley Davidson' in Marysville and 'Columbia Harley Davidson' in Vancouver. These two dealerships are still offering a 2-year and a I-year lease option, respectively. In addition, the costs for un-installing and re-installing radio and lighting equipment on each motorcycle, when a lease is renewed, have significantly increased in the last two years. Because of these cost increases and our latest projections indicating that leasing no longer provides a significant cost savings over purchasing, we believe it is unwise to rely solely on a total motorcycle leasing scheme. The benefit to leasing a portion of the motorcycle fleet is that the initial funds required are far less than required for a purchase. Currently, motorcycle leases cost approximately $2,000.00 per year. A new Harley Davidson motorcycle costs $15,365.00. The over-all maintenance costs, for leased motorcycles, are significantly less than for purchased bikes. When a motorcycle lease expires that bike is rotated out after one or two years, (depending upon the lease contract), whereas a purchased bike remains in the fleet for at least 4 years. Maintenance costs begin to climb in the 3rd and 4th year of a motorcycle's service life. A partial leasing concept would provide an infusion of new motorcycles, with factory warrantees, into the fleet each year. Currently we have six Harley Davidson motorcycles and four Kawasaki motorcycles assigned to the Traffic Unit. The six Harley Davidson motorcycles are all on 2 year lease contracts. The four Kawasaki motorcycles are older bikes and currently are not in use. The Kawasaki's will be replaced as new motorcycles are rotated into the fleet. The Traffic Unit is authorized nine front-line and two secondary-use motorcycles. The two secondary-use motorcycles are specifically designated by the Traffic Lieutenant. Proposal - Purchase & Lease The purpose of this program change is to eliminate our complete reliance on leasing, in order to better control the on-going maintenance and equipment installation and removal costs required 5 with leasing, and so that we are not completely at the mercy of the remaining motorcycle dealerships still offering leases. We request permission to immediately purchase two new Harley Davidson motorcycles along with the required lighting, radio and siren equipment. These two new motorcycles will be the approved Proposition #1 vehicles - originally planned as leases. These two purchases can be made using existing and available replacement reserve monies. No new funds are required. We request permission to receive and accept Washington Traffic Safety Commission (WTSC) grant money, ($27,000.00), to purchase from the Harley Davidson dealer two of our existing leased Harley Davidson motorcycles. These two purchases are made possible through our school-zone traffic enforcement efforts. No new funds are required. We request permission to lease one additional Harley Davidson motorcycle, under a currently available leasing contract, offered by one of the two remaining dealerships. This lease will require the purchase of new radio, siren and lighting equipment. This equipment can be purchase with available replacement reserve monies. No new funds are required. ./!.L.Y..f,) .04"/0 &~ ~ ~I tri 2009 we request permission to purchase one existing leased Harley Davidson motorcycle, ""when that lease contract expires. This purchase will also be made using available replacement reserve monies. No new funds will be required. By the end of 2009, the Traffic Unit should have seven purchased motorcycles and four leased motorcycles in their fleet. This will satisfy our allocation of authorized motorcycles and should provide the benefits and advantages of both a purchase and a leasing plan. . Motorcvcle and Equipment Costs The total funds required for this program change: $74,365.00 Total WTSC grant funds requesting we accept: $27,000.00 The total available replacement reserve money: $116,620.00 (as of 12/07) 6 COUNCIL MEETING DATE: July 1,2008 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: VOUCHERS POLICY QUESTION: Should the City approve the vouchers in the total amount of$4, 483, 857.51 COMMITTEE: Finance, Economic Development, and Regional Affairs Committee MEETING DATE: June 24, 2008 CATEGORY: [8J Consent 0 Ordinance o City Council Business 0 Resolution ~ .~!~!':!':~_~2~!...~.Y:...M(lr~_..!llrl~Y,5~':l!~.~...E.i':ll:l':l<:;i(lIA':l(lI)'st.........~.~~........... o Public Hearing o Other DEPT: Finance I, the undersigned, do hereby certify under penalty of perjury 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, Washington, and that I am authorized to authenticate and certify said liens. Assistant City ManagerlCFO Attachments: Voucher List Options Considered: NA STAFF RECOMMENDATION: NA CITY MANAGER ApPROVAL: Council DIRECTOR ApPROVAL: l~~ Committee Council COMMITTEE RECOMMENDATION: "I move approval of the vouchers andforward to the July 1,2008 Council Meetingfor approval. " Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I 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 TABLED/DEFERRED/NO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 COUNCIL BILL # t ST reading Enactment reading ORDINANCE # RESOLUTION # 7 ..... <LI en ns a.. ~ ;: u; -' ::J<( ~o:: (.) W <LI C .t:: W o LL (ijLL s:: 0 u:>- !::: o ...00 In 0 -,0 ~~ .t::O OM Coil; ns 0 :: <( I() N en "<t t.:. 00 00 00 00 0000 0 0 00000 N NON N -..... -.... N -- -- 0> 0> __ N ..... ~ 'r" <.0 "'t'"- N -- -- -.... -- -..... 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I'--CX)O..- 1'--1'-- I.L 0 LOI'--<.o<.o <.00 0 "'C ..-1'--<.0..- <::tLO :l: c: LOOOO 0> 0> ~ <Il 0..-0..- 00 <c z > 0000 00 CD ~ <c CX)CX)CX)CX) CX)CX) C'II m 0000 00 ~ of! <Il 0000 00 ... ~~~~ CIl ~~ en 0 C C')C')C')C') .0 ~,....,....,.... ~~ -............... -....-.... <.0<.0 ... ClO <.0<.0<.0<.0 I/J 0 .:.:: ...J 0 c: 'It C')<::tLO<.o C')O> .:.:: ~ a:s .:.:: C')C')C')C') O>LO .l: (') m CJ LOLOLOLO 1'--1'-- 0..... <Il LOLOLOLO C')<::t 0000 CX)CX) Q.CO .c: C\JC\JC\JC\J 00 CIlO 0 LOLO 49 Lt') ..- a; en cu Q.. ~ _3: .~ ...I ...I<C .::t:,a: (,)W Q)C .cW ou. Ciju. 'i: 0 1->- I- o :a: <C to C") N o:t Oi _00 III 0 ...10 .::t:,N .cew; 0"- Q.CD CUO I.() Qj Ol co a.. ~ (,) Q) .c o <( ell - o I- "C C l! C) t: o Q. f III :c - ,5 ~ (,) Q) .c (,) to to N 50 COUNCIL MEETING DATE: July 1,2008 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: MAY 2008 MONTHLY FINANCIAL REPORT POLICY QUESTION: Should the Council approve the May 2008 Monthly Financial Report? COMMITTEE: Finance, Economic Development & Regional Affairs Committee MEETING DATE: June 24, 2008 CATEGORY: [8J Consent o City Council Business D Ordinance D Resolution o o Public Hearing Other ~!.A.:~.~.g~l?2~!.~.Y.:~ll:~~I!:l~!~Y?..~~!1:iQ~.f.:i!1:ll:!1:~~l1.IA!1:l:lly~! ..~~~_..__ Attachments: · May 2008 Monthly Financial Report Options Considered: 1. Approve the May 2008 Monthly Financial Report as presented and forward to the July 1, 2008 Council Consent Agenda. DEPT: Finance 2. Deny approval of the May 2008 Monthly Financial Report and provide direction to staff STAFF RECOMMENDATION: Staffrecommends approval of Option 1. CITY MANAGER ApPROVAL: Council DIRECTOR ApPROVAL: ~ Council COMMITTEE RECOMMENDATION: Forward approval of the May 2008 Monthly Financial Report to the July 1.2008 City Council Consent Agenda. Mike Park, Chair Dini Duclos, Member Eric Faison, Member PROPOSED COUNCIL MOTION: "I move approval of the May 2008 Monthly Financial Report. " (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 - 02/0612006 COUNCIL BILL # I ST reading Enactment reading ORDINANCE # RESOLUTION # 51 ~ CITY OF .~ Federal Way May 2008 Monthly Financial Report GENERAL & STREET FUND OPERA nONS The overall operations ofthe combined General and Street Fund showed a positive result of$957K through May. Overall revenue total $18.3ff\1nd is $389K or 2.1 % below budget. The decrease in revenues is attributed to the decrease in overall revenues of Building PermitslFees and interest earnings for the General and Street Fund. The City expects an overall decrease in building permits due to the softening housing market. Year-to-date expenditures total $17.3M and is $285K or 1.7% above budget. 2007 2008 Variance GENERAL & STREET FUND Annual Annual YTD Annual YTD YTD Favorable (Unfavorable) Summary of Sources & Uses Budget Actual Actual Budget Budget Actual $ % Beginning Fund Balance $ 7.088.947 $ 7,088.947 $ 7,088,947 $ 7,645,766 $ 8.009,060 $ 8,009,060 $ - 0.0% OPERATING REVENUES Property Taxes 8,865,097 9,006,922 4,641,072 9,122,267 4,754.461 4.754,461 - 0.0% Sales Tax 12,932,071 13,048,625 5.406,120 13,089,443 5,423,030 5,370,207 (52,824) -1.0% Criminal Justice Sales Tax 2,142,502 2,145.383 848,492 2,289.763 905,594 883,294 (22,300) -2.5% Intergovemmental 2,375,291 2,511,256 938,647 2,398,026 896,324 958,688 62,364 7.0% Leasehold Tax 2,026 7.254 1,088 2,026 304 1.403 1.099 361,9% Gambling Taxes 1,400,000 t ,489,952 627,044 1,400,000 589,188 493.261 (95,926) -16.3% Court Revenue 986,535 1,217,114 434,884 998,825 338,586 641,382 302,796 89.4% Building Permits/Fees-CD 2,278,857 2,689,040 1,270,545 2,182,100 1,031,020 673,909 (357,111) -34.6% ROW Permits & Develop Svcs Fees-PW 475,719 499,392 204,204 483,399 197,665 223,736 26,071 13.2% Licenses 235,518 259,209 77,144 235,518 70,093 74.463 4,370 6.2% Franchise Fees 981,739 982,767 476.680 1,073,269 520,577 491.253 (29,325) -5.6% Passport Agency Fees 88,730 109,720 58,330 91,388 48,584 40.480 (8,104) -16.7% General Recreation Fees 599,310 619,448 236,388 600.915 229,315 258,854 29,539 12.9% Public Safety 1,002,777 1,082.506 282,057 934,775 243,564 170,995 (72,569) -29.8% iAdmin/Cash Management Fees 582,399 571,011 237,921 605,695 252.373 247,170 (5.203) -2.1% Interest Earnings 741,023 671,880 298,670 741,023 329.407 155,390 (174,017) -52.8% Mise/Other 225,583 269.494 115,854 240,750 103,497 105,884 2,387 2.3% Onaoina Transfers In: Utility Tax-Celebration Park 255,800 255,800 255,800 266,000 266,000 266,000 - 0.0% Utilijy Tax-Arts Comm/RW&B Festival 106.000 106,000 106,000 108,000 108,000 108,000 - 0.0% Utility Tax-Police Posnions 700,000 700,000 700,000 728,000 728,000 728,000 - 0.0% Utilijy Tax-Street Bond Projects 264,275 264,275 264,275 321,592 321,592 321,592 0.0% Utilijy Tax-New Street Lights 112,091 112,091 112.091 116,014 116,014 116,014 0.0% Utility Tax-Camp Kilworth M&O 106,000 106,000 106,000 110.000 110,000 110,000 - 0.0% Utility Tax-General Fund Oper 1,238.728 1,238.728 - 1,761.946 - - - n/a Utilny Tax - Prop 1 SafeCny M&O - - - 37,500 37,500 37,500 - 0.0% Utilijy Tax-Prop 1 Voter Package 1,837,500 1,837,500 1,000,000 2,548.000 964,169 964,169 0.0% Utilijy Tax-New Parks M&O 59,000 59,000 59.000 62,000 62,000 62,000 - 0.0% Totill bpE!fa<<!1g>FtilY~tt\!!j~ 40.1594,571 41,~~O,~9 1lJ,l~lJ;307 42,548,234 1lJi6.o$;lJ~ 1lJ;~58;1()$ (3811,751) -2:1% OPERATING EXPENDITURES City Council 371,771 365,625 221,709 381,122 231,106 235.298 (4,191) -1.8% City Manager 1.195,283 1,136,366 412,871 1.429,870 519,509 540,122 (20,613) -4.0% Municipal Court-Operations 1,371,463 1,280,865 482,430 1,481,211 557,889 582,371 (24,482) -4.4% Economic Development 373,730 215,861 98.238 345,201 157,101 92,505 64.595 41.1% Management Services 2,287,795 2,080,526 766,884 2.438,142 898,702 987,640 (88,939) -9.9% Civil/Criminal Legal Services 1.441,869 1.307,586 516,383 1,604,243 633,513 641,653 (8,140) -1.3% Comm. Development Svcs 4.002,827 3,702,664 1,451,627 4,393.579 1,722,491 1,506,969 215.522 12.5% Jail Services 1,668,128 1,701.176 402,507 1.974,022 467,064 564,863 (97,800) -20.9% Police Services 21,229,194 20,449,932 7,897,511 22,240,762 8,589,107 8,926.769 (337,662) -3.9% Parks and Recreation 4,020.390 3,782,410 1,252.185 4.105,782 1,359,240 1,526,655 (167,415) -12.3% Public Works 4,855.671 4,136,883 1,464,479 5,313,315 1,880,942 1,696,758 184,164 9.8% Total Operating Expenditures 42,818,141 40,159,913 14,966,805 45,707,248 17,016,662 17,301,604 (284,942) -1.7% Operating Revenues overl(under) Operating Expenditures (2,223,570) 1,700,456 3,791,502 (3,159,014) 1,630,195 956,502 (673,693) -41.3% OTHER FINANCING SOURCES One-Time Transfers In 358.115 346,151 122,887 120,795 20,985 20,985 - 0.0% Grants & Other 161,751 203,506 34,082 79.171 37,052 37,052 0.0% Total Other Financing Sources 519,866 549,657 156,969 199,966 58,037 58,037 0.00/. OTHER FINANCING USES City Manager Contingency - - 3,036,935 - - n/a n/a One-Time Transfers 1.496,000 1,330,000 1,030,000 - - - n/a nl. Other - - - n/a n/. Total Other Financing Uses 1,496,000 1,330,000 1,030,000 3,036,935 - - nla n/a Total Ending Fund Balance $ 3,889,243 $ 8,009,060 $ 10,007,417 $ 1,649,783 $ 9,697,293 $ 9,023,599 nla nl. 52 DESIGNATED OPERATING FUNDS Through May, designated operating funds revenue total $12.8M and is $787K above the year to date budget of $12.1 M with utility taxes being the major contributor. Expenditures of$8.7M is $20K under the year-to-date budget estimate of$8.7M. 2007 2008 Variance DESIGNATED OPERATING FUNDS Annual Annual YTD Annual YTD YTD Favorable (Unfavorable 1 Summary of Sources & Uses Budget Actual Actual Budget Budget Actual $ % Begin Balance-Designated Funds $ 9,705,215 $ 9,705,215 $ 9,705,215 $ 5,798,400 $ 7,272,399 $ 7,272,399 $ 0.0% OPERATING REVENUES Intergovernmental 559,023 561,232 222,236 559,023 221,361 214.299 (7,062) .3.2% Utility Taxes 11,036,287 12,796,461 5,445,310 11,782,569 5,305,410 6,315.783 1,010.372 19.0% Hotel/Motel Lodging Tax 175,100 191,691 69,224 180,353 65,130 72,437 7,306 11.2% Rea' Estate Excise Tax 4,800,000 4,898,537 2,530,631 3,300,000 1,704,812 1.543,430 (161,382) -9.5% FW Community Center-Transition 33,820 17,440 50,201 - - n/a FW Community Center-Operations 1,248,117 906,126 175.196 1,663,407 693.086 588,555 (104,531) -15.1% Dumas Bay Centre 623,529 518.380 214,236 634,711 262,313 178,792 (83,521) -31.8% Knutzen Family Theatre 77,745 132,017 48.896 77 .955 28.873 61.669 32,797 113.6% SWM Fees 3,710,104 3,650,974 1,909.206 3,604,132 1,840,357 1,840,357 0.0% Refuse Collection Fees 242.850 259,014 129,507 242,850 121,425 131,424 9,999 8.2% Interest Earnings 249.970 524,350 230,817 159,970 70.418 154,063 83,645 118.8% Miscellaneous/Other 4,000 25,002 25,000 4,000 n/a nnnoinn T Utility Tax-Knutzen Theatre 125.495 125,495 125,495 129,260 129,260 129,260 0.0% Utility Tax-Debt Service 1.347.483 1,347,483 1,343,633 - - n/a Utility Tax-Arterial Streets 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1.400,000 - 0.0% Utility Tax-New Community Center 492.923 492,923 492,923 528,348 220,145 220,145 - 0.0% Total.Operatlng Revenues 26,126,446 27,847,124 13,068,877 25.610,211 12,062,590 12,850,214 787,622 6.5% OPERATING EXPENDITURES City Overlay Program 2,862,975 2,494,146 832,790 2,412,849 682,229 682,229 - 0.0% Utility Tax-Admin/Cash Mgmt Fees 57,449 57,449 23,937 59,747 24,894 24,895 (0) 0.0% Solid Waste 364,890 336.588 139,265 375,060 155.183 143.277 11,906 7.7% Hotel/Motel Lodging Tax 351,164 194,607 76,078 385.510 150,707 95,769 54.939 36.5% FW Community Center Transition/Start Up 113.549 322,263 349,397 - - - n/a FW Community Center-Operations 1.681.289 1.331,910 247,799 1,901,761 792,400 780,112 12.289 1.6% Debt Service 11,255,538 10,929,927 8.216,772 1,201,830 22,111 22,111 0.0% Surface Water Management 3,080,245 3,037,900 1,147,456 3,203,195 1.209.889 1,263,057 (53,168) -4,4% Dumas Bay Centre 601 ,363 561,848 211,961 643,413 242,732 216,062 26,670 11.0% Knutzen Family Theatre 235.238 236,182 79,979 210,939 71.437 104,319 (32,882) -46.0% Innnoinn T~n.fA'S nut. Utility Tax-Celebration Park 255,800 255,800 255,800 266,000 266.000 266,000 - 0.0% Utility Tax-Community Center Oper. 492.923 492,923 492,923 528,348 220.145 220,145 0.0% Utility Tax-Arts CommlRW&8 Festival 106,000 106,000 106,000 108.000 108,000 108,000 0.0% Utility Tax-Police Positions 700,000 700,000 700,000 728,000 728.000 728,000 0.0% Utility Tax-Street Bond Projects 264,275 264,275 264,275 321,592 321,592 321,592 - 0.0% Utility Tax-New Street Lights 112,091 112,091 112,091 116,014 116,014 116.014 - 0.0% Utility Tax-Knutzen Family Theatre 125,495 125,495 125,495 129,260 129,260 129.260 - 0.0% Utility Tax-Arterial Streets Overlay 1,400,000 1.400,000 1.400,000 1,400,000 1.900,000 1.900,000 0.0% Utility Tax.Camp Kilworth M&O 106,000 106.000 106,000 110,000 110,000 110,000 - 0,0% Utility Tax-Debt Service 1,530,300 1,530,300 - - - n/a Utility Tax-Transportation CIP 1,400,000 1,400,000 1,400,000 400,000 400,000 - 0.0% Utility Tax-General Fund Operations 1.238,728 1,238,728 1.761,946 - - nla Utility Tax-Prop 1 Voter Package Prog 1,837.500 1,837,500 775,000 2,548,000 964,169 964,189 - 0.0% Utility Tax-Prop 1 SaleCity M&O - 37.500 37,500 37,500 - 0.0% Utility Tax-Community Center Debt Svc 917,183 917,183 913,333 - - n/a Utility Tax-New Parks M&O 59.000 59,000 59,000 62,000 62.000 62,000 - 0.0% Total Operating Expenditures 31,148,996 30,048,095 15,722,018 20,824,296 8,714.264 8,694,510 19,754 0.2% Operating Revenues over/(undar) Operating Expenditures (5,022,5491 (2,200,970) (2,653,141 ) 4,785,915 3,348,326 4,155,705 807,376 24.1% OTHER FINANCING SOURCES One-Time Transfers In 5,733,805 5,733.805 4,583,805 - - n/a GrantslMitigationlOther 258,061 223.265 59,717 222,000 83,765 83,765 0.0% Total Other Financing Sources 5,991,866 5,957,070 4,643,522 222,000 83,765 83,765 0.0% OTHER FINANCING USES One-Time Transfers Out/Other 6,188,913 6,188,911 3.822,703 4,964,300 2.864,300 2.884,300 - 0.0% Total Other FInancing Uses 6,188,913 6,188,911 3,622,703 4,964,300 2,884,300 2,864,300 0.0% ENDING FUND BALANCE Arterial Street 15,105 388,954 1,673,293 15.106 - 1,403,416 n/a n/a Utility Tax 1,711,179 3,480,873 2,454,196 2,359,279 - 3.511.887 nla n/a Solid Waste & Recycling 115,936 138,508 105,564 144,298 - 127,496 nla n/a HoteVMotel Lodging Tax 0 198,155 (3,699) - - 176.942 n1a n/a FW Community Center 239,101 21,395 404,196 313,524 - 50,264 n/a n/a Paths & Trails 34,923 35,369 29,363 44,892 - 39,032 nla n/a Debt Service Fund 1,462,083 2,089,658 2,159,032 2,787,255 - 3,398,951 nla n/a Surface Water Management 903.568 928,050 995,634 187.807 - 331,381 nla n/a Dumas Bay Centre Operations 30.000 (35,634) 10,109 (31,907) - (72,904) nla n/a Knutzen Family Theatre (26,277) 27,071 125,837 21,760 - 113,681 nla n/a Total Endlno Fund Balance $ 4,485,619 $ 7,272,399 $ 7,953,526 $ 5,842,015 $ $ 9,078,146 n/. n/a 53 Real Estate Excise Tax Compared to 2007, collections are down $988K or 39.1%. May's receipt of $134K is $350K below May 2007's activity and includes a total of 139 real estate transactions, of which 56 were tax exempt and of the remaining 83, 0 were mobile home sales. The unfavorable variance is due to total Real Estate sales through May 2007 totaled $486M and through May 2008 $3l6M, a total decrease of $ 170M. The annex area has contributed year-to-date revenue of $32,894. The largest transactions in the current month consist of the sales of Vacant Commercial Property located on 21 st Ave ($1.2M), Hairmasters located on 312th St ($1.7M), and Office Building located on 1st Way ($2.1M). Sales Tax REAL ESTATE EXCISE TAX REVENUES Year 10 dale Ihru May i 2007 2008 i 2008 Change from 2007 2008 Aclual vsBudgel Month i Actual Budget i Actual $ Var " Var $ Var 1 " Var Jan i $ 693,595 $ 467,254 I $ 590,477 $ (103,118) .14.9% $ 123,223 I 26.4% Feb 219,522 147 ,885 . 511,905 292,383 133.2% 364,020 I 246.2% Mar i 626,241 421,880 I 162,401 (463,839) .74.1% (259,479)1 .61.5% I Apr I 506,747 341,380 i 144,395 (362,352)i .71.5% (196,985) .57.7% i May I 484,527 326,412 i 134,252 (350,275)1 .72.3% (192,160) .58.9% Jun 520,650 350,747 i .1 - Jul 407,081 274,238 .1 Aug 293,865 197,9681 .1 Sep I 307,526 207,171 . ., Oct ! 353,373 238,057 I .1 Nav 1 302,465 203,762 ' - Dee I 182,946 123,245 YTD Total i $2,530,631 $1,704,812 $1,543,430 $ (987,201) -39.0% $ (161,3821 -9.5% Annual Total I $4,898,537 $3,300,000 Compared to 2007, Sales tax revenues are down $36K or I %. May sales tax collection total $1.1 M, which is $11 K or 1% above 2001' s May sales tax of $1.1 M. Sales Tax bv SIC Code Retail sales continue to remain the largest source of sales tax revenue, accounting for 54% of all sales tax collections. Year-to-date retail sales tax collection is above by $16K or less than I % above year-to-date 2007. Services industry accounts for 20% of the total sales tax collections. On year-to-date basis, services sales tax is up by $34K or 3% compared to 2007. The increase in the service industry is due to the increase in food services/drinking places ($56K). Construction and contracting actiVity, which accounts for II % of sales tax collections, is down $218K or 27% from 2001's activity. Sales tax received year-to-date on major City projects total $8K or 0% of total construction and contracting activity. LOCAL RETAIL SALESJAX REVENUES Year.to,datethruM ay 2007 2008 2008 ..Change from 2007 2008 Actual vs8udget Month Actual 8udget Actual $ % $ % Jan $ 994,523 $ 997,634 $ 1,014,466 $ 19,944 2.0% $ 16,832 1.7% Feb 1,375.199 1,379,500 1,393,323 18,125 1.3% 13,823 1.0% Mar 946,695 949,656 911,140 (35,5541 .38% (38,516) .4.1% Apr 959,014 962,014 909,258 (49,756) .5.2% (52,756) .5.5% May 1,130,690 1,134,227 1,142,019 11,329 1.0% 7,792 0,7% Jun 1,007,794 1,010,947 Jul 1,026,816 . 1,030,028 Aug 1,197,479 1,201,225 Sep 1,108,619 1,112,087 - Oct 1,059,203 1,062,516 Nav 1,166,531 1,170,180 Dec 1,076,061 1,079,428 YTD Total $ 5,406,120 $ 5,423,031 $ 5,370,207 $ (35,9131 .0.7% $ (52,824) .1,0% Annual Total $13,048,625 $13,089,443 I Wholesale trade accounts for 5% of the total sales tax collections. Year-to-date wholesaling activity is up $80K or 41 % above 2007 year-to-date. The increase is due to increase in Durable goods of $44K. COM PARISON OF SALES TAX COLLECTIONS BY SIC GROUP Year.to.date thru May Component 2007 2008 Change from 2007 Group Actual Actual $ % Reta~ Trade $ 2,884,623 $ 2,901,226 $ 16,603 0.6% Services 1,023,335 $ 1,057,688 $ 34,354 3.4% Construct/Contract 799,458 $ 581,761 $ (217,696) -27,2% Wholes ating 197,176 $ 277,205 $ 80,029 40,6% TransptUtiity 5,506 $ 9,557 $ 4,051 73.6% hformation 208,922 I $ 222,544 $ 13,622 6.5% Manufacturing 89,514 $ 122,702 $ 33,188 37.1% Government 47,032 $ 28,004 $ (19,028) -40.5% Fin/hslReal Estate 144,552 $ 163,422 $ 18,870 13.1% Other 5,994 $ 6,098 $ 104 1.7% YTD Total $ 5,406,120 $ 5,370,207 $ (35,913) .0.7'!. Information accounts for 4% of the total sales tax collections. Year-to- date information activity is up by $14K or 7% compared to 2007. Publishing ($13K) and Telecommunications ($18K) showed a total increase of$3lK offset by a decrease in Internet Service Providers $27K. Manufacturing activity accounts for 2% of the total sales tax collections is up by $33K or 37% when compare to 2007 year-to-date. Majority of the increase is due to increase in activity of wood product manufacturing ($51 K). $16K of this increase was due to an audit performed by the Department of Revenue. Government activity shows a decrease of $19K or 41% compared to 2001's activity due to nonclassifiable establishment ($20K). 54 Sales Tax bv Area The City's largest retail center, South 348th, which generates 12% of the City's sales tax, is showing a increase of$17K or 3% compared to the year 2007. The increase from 2007 consists of an increase in General Retail Merchandise ($50K) offset by a decrease of Retail Building Materials ($28K). The Commons year to date activity show a decrease of $1 OK or less than 2% compared to 2007. The decrease from 2007 consists of a decrease in General Retail Merchandise ($19K) offset by an increase in Retail Eating & Drinking ($5K) Major Auto Sale's collection total $138K and is $26K or 16% below 2007. S 312th to S316th tax collections are up by $67K or 21% compared to the prior year. The increase from 2007 is due General Retail Merchandise increase of$72K. Pavilion Center tax collections shows a decrease of $4K or 2% compared to the prior year. SALES TAX COM PARISON by AREA Year-to-date thru May Chg from 2007 Group 2007 2008 $ % Total Sales Tax $5,406,120 $5,370,207 ($35,9131 .0.7% S 348th Retail Block $641,020 $657,693 $16,673 2.6% % chg from prey yr 5.8% 2.6% na na .. Percentage of total 11.9% 12.2% 0.4% 3.29% The Commons 518,626 508,173 ($10,453) -2.02% % chg from prey yr 7.6% .2.0% na na Percentage of total 9.6% 9.5% -0.1% .1.36% Major Auto Sales 164,467 138,096 ($26,371 ) -16.03% % chg from prey yr 0.0% -16.0% na na Percentage of total 3.0% 2.6% -0.5% -15.47% S 312th to S 316th 323,358 390,674 $67,316 20.82% % chg from prey yr 29.2% 20.8% na na Percentage of total 6.0% 7.3% 1.3% 21. 63% Pavilion Center 254",612 25.0,614 ($3,998) -1.57% % chg from prey yr 9.3% -1.6% na na Percentage of total 4.7% 4.7% 0.0% .0.91% Hotels & Motels 66,822 60,611 (6,211) -9.29% % chg from prey yr .12.0% -9.3% na na Percentage of total 1.2% 1.1% .0.1% -8.69% FW Crossings l!2,232 10l!,482 17 ,250 18.70% % chg from prey yr na 18.70% na na Percentage of total na 2.0% na na Federal Way Crossings tax collection is up by $17K or 19% compared to the prior year. Gambling Tax Gambling tax collection through May is $493K. In comparison to 2007 year-to-date collection, 2008's tax collection is $134K or 21 % below the same period. The unfavorable variance is due to the timing of cash receipts in January of 2007 in which the City received $98K ($87K related to November Revenues and $11 K in an amended return from 2006) from a major payer for 2006 revenues. [fthis was taken into consideration, total variance from 2007 would be a negative variance of$36K or 7%. GAMBLING TAX REVENUE Year-fa-Date Through May. 2007 2008 2008 Chanae from 20P7 2008 Ac:JlIal vs Budget Month . Actual Budget Actual $ Var %Var $ Vat % Var Jan $ 218,118 $ 204.950 $ 104.699 $ (113.419) -52.0% $ (100.251) -48.9% Feb 120,749 113.459 142.126 21,377 17.7% 28,666 25.3% Mar 23.530 22,109 8,543 (14,987) -63.7% (13,566) -61.4% Apr 228,568 214,769 213,395 (15,173) -6.6% (1,374) -0.6% May 36,079 33,901 24,498 (11,580) -32.1 % (9.402) -27.7% Jun 186,964 175,677 - - - . - Jul 34,454 32,374 - - - . - Aug 211.381 198.619 - - - - - Sep 29.788 27,990 - - - - - Oct 133,115 125,078 - - - - - Nav 104,609 118,293 - . - . - - Dee 162,598 152,782 - - - - - YTD Total $ 627,044 $ 589,188 $ 493,261 $ (133,783) -21.3% $ (95,926) -16.3% Annual Total $ 1,489,952 $ 1,400,000 HOTELIM o TEL LODGING TAX REVENUES Year.to-date thru May 2007 2008 2008 Change from 2007 2008 Actual V$ Budget Month Actual Budget Actual $Var %Var $Var %Var Jan $ 13.411 $ 12,617 $ 14,985 $ 1,574 11.7% $ 2,367 18.8% Feb 14,883 14,003 14,907 24 0.2% 905 6.5% Mar 12,748 11,994 11,171 (1,577) -12.4% (823) -6.9% Apr 12,545 11,803 14,266 1,722 13.7% 2.464 20.9% May 15,638 14,713 17,107 1.470 9.4% 2,394 16.3% Jun 13,241 12.458 Jul 10,427 9,810 - Aug 24,090 22,665 - - Sep 20,376 19,171 - Oct 22.461 21,132 - Nav 17,735 16,686 - - - Dec 14,136 13,300 - YTDTotal $ 69,~~ $ 65,130 $ 72,437 $ 3,212 4,6% $ 7,306 11.2% Annual Total $ 191,691 $ 180,353 Hotel/Motel Lodging Tax Hotel/Motel lodging tax collections through May total $72K. Compared to 2007, the lodging tax is $3K or 5% above the same period. Utility Tax Utility taxes received through May total $6.3M and is above 2007 year to date collections by $725K or 13%. Compared to year-to-date 2007, Electricity up $505K or 28%, Gas is down $15K or 1%, Phone is up $135K or 33%, and Cellular phone is up $288K or 31 %. Cable is down $66K or 12%, however this is due to timing of payment; when this is taken into consideration, Cable actual difference would be a positive variance of $47K or 9%. The increase in overall revenues is due to collection of7.75% of Utility Taxes as opposed to 6% (starting in March of2007). 2007 2008 2008 Change from 2007 2008. Actual vs Budget Month Actual Budaet Actual $ Var % Var $Var % Var Jan $ 845,364 $ 962,107 $ 1,205,190 $ 359,826 42.6% $ 243,083 25.3% Feb 1,129,439 1,285.413 1.263.500 134.061 11.9% (21.912) -1.7% Mar 1,173,418 1.033.908 1.472.457 299,038 25.5% 438.548 42.4% Apr 1,233,143 1,086.532 1.267,412 34,270 2.8% 180.880 16.6% May 1.063,946 937.451 1.107.223 43.278 169.772 18.1% Jun 950,406 837.410 Jul 940.312 828.516 . Aug 914,481 805.756 Sep 994,042 875.858 . Oct 983,515 866.583 . Nov 1,006.830 887.126 - . - Dec 1,561.566 1,375.908 YTD Total $ 5,445,310 $ 5,305,410 $ 6,315,783 $ 870,472 16.0% $ 1,010,372 19.0% Annual Total $ 12,796,461 $ 11,782,569 urlUTYTAXES Year-tOodate thru May UTILITY TAXES Yea r-to-da te thru May 2007 2008 Change from 2007 Actua I Actual $ Var %Var Bectric 1.832.390 $ 2.337.867 $ 505.477 27.6% Gas 1,296.288 1.281.040 (15.248) .1.2% Solid Waste 300.673 326.851 26.178 8.7% Cable 533.917 467.660 (66,257) .12.4% Phone 408.943 544,060 135.117 33.0% Cenular 933.344 1.221.228 287.884 30.8% Pager 232 101 (132) .56.6% SWM 144.593 142.743 (1,850) .1.3% Tax Rebate (5.072) (5.767) (695) 13.7% YTDTolal $ 6,446,310 $ 6,316,783 $ 870,472 16.0% Update on Proposition 1 The following table provides a comparison of utility tax revenue collections at the 6.00% rate and the revenue collections at 1.75% for on-going proposition 1 funding. Year-to-date Prop I tax collections total of $1.4M or approximately 54% of the total budget of$2.6M. Year-to-date prop 1 expenditures total $964K or 35% of the $2.8M budget. UtilityTa* Month Total ~an~ary $ . $ 845.364 .~l!~r~-"rI..",__.,.",.__, ..,!:1_~:~.3..9.. March 944,978 228,441 1,173,418 ,- ". '^ .~.. .0.0 __._....._.~ _~.~_.___. _."..^"...._.. ^__.' ~pril 956,696 __..__2_~~~~7. __ 1.233,143 ~X_.. 825,015 238,931_ __..!:.~~3.:.?~~ June 735.765 214,641 950,406 " .. ~__",""_____."H..~_, ._~____~.,_~~ ""__,",.."."~'.._,_..,,,^,^, . July 727.942 2.1.~:~!~, ..,. 940.312 ~.u.~~?L_......"...__?~7 .9!5__...._~~~~. __._9.,14,:~~] ___._________..__ .~~~!e~e.r !.~~~~1_._._~~~~~___._9.9.4.04.? __............ October 761.389 222.126 983.515 NOVember~,-~ .===-2.!~481 --227.349 ....~~O'O'~~~.3.~_. ____.~_._ _____.__.__,__~..__. December 1,208,974 352,592 1.561.566 YID Total $ 4,701,492 $ 743,818 $ 5,445.310 Annual Total $ 10.392.609 $ 2,403.852 $ 12,796.461 Annual Budget $ 9.013.787 $ 2.022.500 11.036.287 li:im!~I(q6~;ligtll.f,!;~:.... . Safet rovement PoSitions & Costs: Police Services (includes sw orn poslions. rec;ords-cieri~and;nd;rect $ --.-i:913,281'S-. . .~~r~~~~.~=~~~~~gy~~port~ost~)_..._..._....__._.._..._--.--1--...._ ____, . . Court Services (includes Judge. Court Oerk. Prosecutor. pubfic . 339.563 . defender contract, and indirect Information Technology support) T9t~IJ'li"licSafety 1m provemeI)IPo~ltlons&C~'st.i! 2,2~2,844 f_~~n~~!~i~~~~o~::eC!:=~=-_=.=~~=-===.:====--==-.-=i=:::::=-=?.?.5~il:_.____.__ L-.~~ Enforcement Civij ~~~.'::Y_._.__..._.______.______L_,.._...~~:o.5"?j... i Park Maintenance (vandalism, graffiti repair/removal. and park security) i 97.838 : Total ((91l1llllln11y Safety 1m provement Prollrl!IlIC~9$t$ 2~M48 L~n~~.::~~~.e.eo.r,t,: !:IlJ..~ Res.o.~~:es.,,~.a.'Y..s,l~o..~E__.____._______J____.~~c7~.~..1 : SafeCity M&O ! 37.500 : l?qlitqtit~goli1lJ~P~ildlti!~e.~i\t.\~~!I"~,500 $ 210.000 : gir~MQO 2008 v$ 2007a16% !;.OO% TOtalS Chang$ %!i;@ $ 933.051 1.205,190 $ 87.686 10.4% $ 272,140 "'978:194' -285-:30'7-.--1,2-63.500 (151.246)'-: 13:4'%'- 285,307 ~~iJ~~~6 332,4~~ '~_._!~72~~~!m:~:=~,~~.~~~~'~'~~ 'M_'~~:~!~__~_ 104~50 981,222 286,190 1,267,412 24.527 2.6% 9.743 ...... 857.~~~_:::==~50-:O18 -"::i:I~!.3~~::__ 32.190 . .'i90~------11:0~:f~ ~,__. $ 4.889.638 $ 1,426.144 $ 4.889,638 $ 1,426,144 $ 9.197,069 $ 2.585.500 $ 6.315.783 $ 6,315.783 $ 11,782,569 ..;;~!Ital ~dget $ 188.146 4.0% $ 682,326 nla nla nla nla nla nla Y;J;P~p:r~~j.j:~~:..~~i!:f~f; m..____.....j_ 703.411 i 47.8% nla nla ,j", "''': Life to date Prop 1 Utility tax Collections total $3.8M and Iife-to-date expenditures total $2.7M resulting in a balance of $1.1 M earmarked for Prop 1. Revenue Ex-pe'nditure.-~"'-'_.... .m36f~ I .---; 40.6'0 iSafeCity Startup TliJ~l'rop 1 Expenditure!; State Shared Revenue Year-to-date distribution of$2.2M is above 2001's activity by $47K or 1%. The favorable variance for Year-To-Date is due to the increase in Local Justice Criminal Sales Tax, Liquor Profits Tax, and Liquor Excise Tax. STA TE SHARED REVENUES Year to date thru May 2007 2008 Change from 2007 Revenue Actual Actual $ % Liquor Profits Tax $ 132,806 $ 149,807 $ 17.001 3.1% Liquor Excise Tax 194,913 210,557 15,644 4.2% Grim Just - Population 40,779 42.552 1,772 2.2% Criminal Just High Crime 90,199 96,617 6,418 7.1% Local Grim Just Sales Tax 848,492 883,294 34,802 1.8% Fuel Tax' 829,770 800,135 (29,635) -1.6% DUI - Cities 7.049 7,917 868 6.1% YTD Total $ 2,144,008 $ 2,190,878 $ 46,870 1.0% . Fuel tax is induded in both generaVstreet, designated operating funds, and transportation CIP. Permit Activity Year-to-date building permit activity is below 2001's year-to-date activity by $597K or 47%. Compared to year-to-date budget estimates, permit activity is down $357K or 35%. The City expects the revenues for building permits/fees to decrease due to the softening housing market. The largest decrease in permits are the Building permits ($450K) and Plan checking fees ($394K) offset by an increase in Automation Fee ($198K), Electrical Permits ($96K), Sign Permits ($65K), and Zoning ($57K). Community Development's positive expenditure variance of $216K is mainly due to under spending of one-time programs such as: Design review, Nuisance abatement, Chemical dependency treatment, Graffiti clean up and the Organization capacity building program. BUILDING PERMITS & FEES Year-to'Date Through May 2007 2008 2008 Change from 2007 2008 Actual vs Budget Actual Budget Actual $ % $ % Jan 186,857 151,631 103.926 (82,931) -44.4% (47,705) -31.5% Feb 284,798 231,108 154,566 (130,232) .45.7% (76,542) -33.1% Mar 269,618 218,789 108,460 (161,157) -59,8% (110,329) -50.4% Apr 303,057 245,925 163,263 (139,794) -46.1 % (82.662) -33.6% May 226,214 183,568 143,694 (82,520) -36.5% (39,874) -21.7% Jun 263,124 213,520 - - - - Jul 179,257 145,463 - - - - Aug 157,371 127,703 - - - - - Sep 102,168 82,907 - - - - Oct 215,739 175.068 - - - - - Nay 304.823 247,357 - - - - - Dec 196,014 159,061 - - - - YTD Total 1,270,545 1,031,020 673,909 (596,635) -47.0% (357,111) -34.6% Annual Total 2,689,040 2,182,100 na na na na Right-of-way permits and development services fees are up $20K or 10% when compared to 2001's year-to-date activity. Public Works Operations year-to-date expenditures total $1.7M and is $184K or 10% below budget estimates. The favorable variance is due to offsetting payments received from King County in 2007 compared to 2008. ROW PERMITS & DEVELOPMENT SERVICES FEES Year-to-Date Through May 2007 2008 2008 Change from 2007 2008 Actual vs Budget Actual Budget Actual $ % $ % Jan 33,025 31,967 46,426 13,401 40.6% 14,458 45.2% Feb 50,655 49,033 33.886 (16,769) -33.1 % (15,147) -30.9% Mar 21,834 21,134 27.416 5,583 25.6% 6,282 29.7% Apr 59.623 57,714 85,319 25,696 43.1% 27,605 47.8% May 39,068 37,817 30,690 (8,378) -21.4% (7,127) -18.8% Jun 36,329 35,165 - - - - - Jul 64,193 62,137 - - - - Aug 26,372 25,527 - - - - - Sep 3,082 2,983 - - - - - Oct 72.179 69,867 - - - - - Nay 8.370 8,102 - - - - - Dec 84,664 81,952 - - - - - YTD Total 204,204 197,665 223,736 19,532 9.6% 26,071 13.2% Annual Total 499,392 483,399 na na 57 Police Department Expenditures through May total $8.9M and is $338K or 4% above the year to date budget of$8.6M. The unfavorable variance is due to a lower vacancy rate in 2008 compared to 2007 and an increase in overall overtime. However, further analysis shows that the Police Department has spent 40% of their 2008 budget and we anticipate that the Police Department will be within their budget at year end. The Police Department hired 27 new officers at the beginning of2008. Through May, City overtime is 37% or $llIK above last year. There is a 27% decrease in overtime for contracted services and traffic school. When the decrease from the billable overtime is included, the total overtime increased $97K or 28%. As the first quarter ends, the Police Department is starting to fill vacant patrol spots with solo officers completing the ten- month training process. This should assist in reducing overtime in the Field Operation overtime, which is the contributing factor in the increase in overtime from 2007 to 2008. PS Overtim e by Type through May Type 2007 2008 $ .% Training $ 16,217 $ 30,243 $ 14,026 87% Court 13,733 17,325 3,592 26% FieldOper 221,699 318.141 96,442 44% Other 48,008 44,861 (3,147) -7% Ctty Portion 299,657 410,569 110,912 37% Contract/Grant 27.406 20,596 (6,810) -25% Traffic School 22,486 15,785 (6,701) -30% Homeland See n1a BUlable 49,892 36,381 (13,511) -27% Grand Total $ 349,550 $ 446,950 $ 97,400 28% PS Overtim e By Month 2007 2008 2008 Change from 2007 2008 Actual vs Budget Actual Budget Actual $ I % $ % Jan $ 68,853 $ 33,888 $ 119.252 $ 50,399 ! 73% $ 85,363 251.9% Feb $ 66,7 43 $ 32,850 64,247 (2,496) I -4% 31,397 95.6% Mar $ 72.669 $ 35,767 100.016 27,346 I 38% 64,249 179.6% Apr $ 71,885 $ 35,381 76,954 5,069 7% 41,573 117.5% May $ 69.400 $ 34,158 86,482 17,082 25% 52,324 153.2% Jun $ 84,568 $ 41,623 - - Jul $ 81.970 $ 40,345 - - - - Aug $ 95,835 $ 47,169 - - - - Sep $ 101,171 $ 49,795 - - - - Oct $ 79,262 $ 39,012 - - - - Nov $ 84,507 $ 41,593 - - - Dec $ 83,397 $ 41.047 - - - - - Total $ 349,550 $ 172,044 $ 446,950 $ 97,400 28% $ 274,907 159.8% Annual Total $ 960,261 $ 472,627 Jail Services Jail Services through May is $565K and is above the year-to-date budget estimate of $467K by $98K. The unfavorable variance is due to the increase in number of prisoners, rate increase, and timing of payments. King County Jail Services raised their fees by 5% compared to May of 2007. When the timing of payments is taken into consideration, the negative variance is reduced to $59K. Court Municipal Court year-to-date expenditures of $582K is $24K or 4% above estimates. The unfavorable variance in expenditures is primarily due to the increase in Professional Services for ProTem Judges due to coverage for terminated employees in early 2008. The Court did not anticipate the hiring of the new judicial officer until May 1 and already had contractual obligations for the services of pro temjudges. Excluding probation through May revenue is up $205K or 52% compared to year-to-date 2007. The revenue increased is due to the court authorizing certain payments via credit card transactions, the increase in fine amounts for most infractions, and the change in court policy in respect to deferred fmdings. The state legislature increased the fine amounts for traffic and non- traffic infractions in July of2007. COURT REVENUE Through May 2007 2008 2008 Change from 2007 2008 Actual vs Budget Month Actual Budge t Actual S Var %Var $Var %Var January $ 74,292 $ 53,642 $ 115,888 $ 41,596 56.0% $ 62,246 116.0% February 71,310 56,949 121,509 50,199 70.4% 64,560 113.4% March 92,354 73,756 . 113,512 21,157 22.9% 39,756 539% April 77,727 67,770 I 105,180 27.453 35.3% 37.410 55.2% May 79,456 63,454 143,945 64,490 81,2% 80,491 126.8% June 96.805 77,310 . July 90,014 71,887 August 97,385 77,773 I - - Septenter 101,982 81.444 I October 122,605 97,917 : - Noventer 120,895 96,567 , Decenter 90,603 72,357 i Subtotal $ 395,139 $ 315,571 , $ 600,034 $ 204,895 51.9% 284,463 90.1% Probation Svcs 39,736 23,015 41,345 1,609 4.0% 18,330 I 79.6% YTD Total $ 434,884 $ 338,586 $ 641,377 $ 206,493 47.5% 302,792 i 89.4&! Annual Total $1,217,114 $998,825 na na na i na COURT REVENUE By Category Through May 2007 2008 Change from 2007 Actual Actual $ Var % Va, Civil Penalties $ 5,513 $ 8,359 $ 2,846 51.6% Traffic & Non-Parking 247,813 412.684 164,871 66.5% Parking Infractions 21,850 33,120 11,270 51.6% OUI & Other Misd 38,271 25.475 (12,796) -33.4% Criminal Traffic Misd 20,564 1,389 (19,175) -93.2% Criminal Costs 10.592 38,836 28,244 266.6% Inlerestl Other I Mise 13.981 20,102 6,121 43.8% Criminal Conv Fees 9.432 10,243 810 8.6% Shared Court Costs 2,603 24.476 21.873 840.3% Services & Charges 24.519 25.349 830 3.4% Subtotal $ 395,139 $ 600,034 $ 204,895 51.9% Probation Services 39,736 41,345 1,609 4.0% YTO Total $ 434,884 $ 641,377 $ 206,493 47.5% . Commal costs Include screener fees. Traffic and non-parking fines total $413K and is $165K or 67% above year-to-date 2007. Parking infractions total $33K and is $IIK or 52% above year-to-date 2007. DUI and other misdemeanors total $25K and is $13K or 33% below year-to-date 2007. Criminal costs total $39K and is $28K or 267% above year-to-date 2007. Criminal Conviction Fees total $10K and is above year-to-date 2007 by less than $1 K. Parks & Recreation Overall parks operations expenditures through May total $1.5M, which is $167K or 12% above the year-to-date budget of $IAM. The increase in expenditures is due to an increase in SalarylBenefits of $1 04K due to lower vacancy when compared to 2007. Knutzen Family Theatre revenues and expenditures are both above budget while Dumas Bay Center revenues and expenditures are below budget. General Recreation and Cultural Services Direct program expenditures total $229K or 23.1% of the total annual budget of $993K not including indirect costs. Including indirect administration costs, recreation expenditures total $380K and are 28.9% of the total annual budget of $1.32M. Recreation fees total $254K and are 42.7% of the total annual budget of $595K. Recreation fees have recovered 111% of direct program costs and is 51.1% above the annual budgeted recovery ratio of 59.9%. Considering indirect administration costs, the recovery ratio is reduced to 66.8% or 21.6% above the annual budgeted recovery ratio of 45.2%. The table below is a comparison of budgeted versus actual subsidy and recovery ratio by program. RECREATION, CULTURAL SERVICES, COMMUNITY CENTER AND DUMAS BAY CENTRE PERFORMANCE Yl1Br to Date Thro~gh May 2008 B~dget Act~al Recovery Recovery Variance Program Reven~e Expend S~bsidy Ratio Reven~e Expend S~bsidy Ratio Subsidy GENERAL RECREATION Steel Lake Aquatics 2,000 20.360 18,360 9.8% - 140 - nla nla Arts & Special Events 93.000 284,900 191,900 32.6% 75.247 75,633 386 99.5% 191,514 Youth Athletics 42.450 178,612 136,162 23.8% 7,215 23,387 16,172 30.9% 119,989 Adult Athletics 203,875 143,070 (60,805) 142.5% 76.581 24.821 (51,760) 308.5% (9,045) Community Recreation 124,000 147.313 23,313 84.2% 62,546 45,704 (16,841) 136.8% 40.154 Recreation Ine 48,850 63.966 15,116 76.4% 21,925 27,540 5.615 79.6% 9,501 Youth Commission 500 1,800 1,300 27.8% - 58 58 nla 1,242 Red, White & Blue' 21,500 41,550 20,050 51.7% 3.550 360 (3,190) nla 23,240 Senior Services 58,740 111,227 52,487 52.8% 6,969 31,266 24,297 22.3% 28,190 Subtotal $ 594,915 $ 992,797 $ 397,882 59.9% $ 254,033 $ 228,909 $ (25,123) 111.0% $ 423,006 Administration - 322,914 322,914 nla - 151,316 151,316 nla 171,598 I TOTAL GENERAL RECREATION 1 $ 594,9151 $ 1,315,7111 $ I TOTAL FW COMMUNITY CENTER 1 $ 1,663.407 I $ 1,901,761 I $ DUMAS BAY CENTRE Dumas Bay Centre Knutzen Family Theatre I TOTAL DUMAS BAY CENTRE Arts Commission GRAND TOTAL 720,796 I 238,354 I 45.2%1 $ 87.5%1 $ 254,033 I $ 588,555 I $ 380,225 I $126,192 I 780,112 I $ 191,5571 66.8%1 75.4%1 $594,6041 $46,7971 . The subsidy for Dumas Bay Centre should be $0: however Dumas Bay Centre revenue was underbudgeted by $8,700. - The subsidy for Knutzen Family Theatre should be $129,260 (amount of Utility Transfer to Knutzen). KFT underbudgeted revenue by $3,725. Dumas Bav Centre Dumas Bay Centre operating revenue of $178K is below by $85K or 32% compared to year to date budget of $262K. Operating expenditures through May total $216K, which is $27K or 11 % below the year to date budget of$243K. Dumas Bay Centre has recovered 82.2% of its operating expenses. Knutzen Familv Theatre Operating revenue of $62K is above year to date budget of $29K by $33 K or 114%. Operating expenditures through May total $104K, which is $33K or 46% above the year to date budget of $71K. The unfavorable variance is due to increase in SalarylBenefits $23K compared to 2007 due to shifting staff from Dumas Bay to Knutzen Family Theatre. Knutzen Theatre has recovered 59.1 % of its operating expenses. 59 Federal Way Community Center The Federal Way Community Center Fund was established as a special revenue fund supported by user fees and designated utility tax transfer. The facility opened early May with a grand opening on March 31, 2007. The operating revenue budget includes $1.7M in user fees/program revenue and $528K in utility tax subsidy. Through May, operating revenues total $589K and is $105K or 15% below YTO projections. Currently the Open GymlIndoor Playground and Towel/Equipment Rentals are not up and running as of May 2008. Federal Way Community Center expects Towel/Equipment Rentals to be up and running this summer after going though the vendor selection process. Through May, operating expenditures total $780K . and is $12K or 2% below YTO budget estimates. Federal Way Community Center has recovered 75% of operating expenditures compared to the budgeted recovery ratio of 87%. Year-to-date projected subsidy is $99K and Year- to-date actual subsidy is $192K or $93K over the projected subsidy. The Federal Way Community Center planned a subsidy of $238K which is supported by the Utility Tax transfer of $528K, the remaining $290K was for Capital reserves. With the subsidy currently over it's year-to-date budget by $93K, the Community Center is currently using their capital reserves for on-going general operations. Year-to-date operating budget projections are calculated on 1/I2th of the Annual Budget times the month we are reporting. For year-to-date May, the projected revenues/expenditure budget is 5/I2th of the annual budget The Federal Way Community Center currently has $424K in their capital budget (construction). Planned capital expenditures includes the following: security system, concession stand vendor/construction, and commercial washer/dryer. Other Departmental Variances Federal Way Community Center 2008 YTO Budget $ % Variance Annual Budget YTO Actual h...n._"...--.t". Revenues ': . . -....-.- ... ..-.--.-. ... ,. . . ..... ........ ... ..<(. ..............._.... _"'W' ........... Admissions $1,183,407. $ 493,086 ! $ 437,236 $ (55,851)1 -11.3% ~?u.thAth~t~~?~~~~::.::..::::::~:::=:::..19:000 7,917 : ..:::=~= ===J!.if?It... ~iO(l.O%' .OI:~.~~~~~?~P1ay~~~.__.___.__...._~~.~O...... 417 I (5) (422)i -101.2% Aquatics Programs-Lessons/Classes 148,000 . 61,667 -39,14S----(22.5f7jt.'-'-:3iL5% Chijdca.re Fees...-.'..--.....--... ."10:000 4, 167 ,.:~=-21T ="'_~?55i+ . :94.9% ~F.~ess-Traj'ning.-T:f}"es.H--'--"~"'-"-_L_._-~- '^,-~~w"'5~6oo-~" "'m~--2',08:rM- 2,277 19 -"-"~'-~~-9~3% .!.()~_ep:~u.i~~~!.~en~.ls _:_..::=== . ==.!~~~...__~:~~~..--.(3:333) .. .100.0% Pool Rentals/Compemive-Lap Lanes 36,000 15,000 8,194 (6,806) --45~4% . Rentals ~.-..~~ ..._~--._~_.--_.--,... .-213:000 88.7 50 79, 704 :.:::::.:]~~~2.-' -=1010/0 Mercha.ndise'sa.~s-~--~---- ~--2{00Q"T 8,750 20,135 11,385 '-"'130:1"%' C()n~essj()nS~~'~~i~~'==::=.___:::::::,!~~~~ .. 7 ,917..._._.... _____E~91 --'--1'00.0% Interest Earnings/Other Misc Revenues ,1,653 1,6 n/a foWRevenue----- ... _!~~~1~~!: .... 6~3~~.~~:D.~~!~~~ :~ (1 O~.!~_._ "-.'-:fS:l'k "N.-._.'_.._.~n_'~_.~W."N"'_._._._'._._._.__'_'.^'__~'~'''_~'~_'___ .,.'.~.^'^'~'_ ,,-,.'u"^o"!__~e""~'~"'_""''''''_~.''"''^_"W+~~''"_'_^_^~_~_'_~ .~p~ndi!u!~~.__...____...._.._...._____ I Personnel Costs 1,232.385'r 51 3:494T-- 477,289 ^'SU-p'pile's"-H_'_^_W'-"--'~"'~---"--V-N-N^"~~"N.'.~_'~~._.""~N --^'-'133~i5'4^---:-H'.'" '^'5-5~52.'3~-r-~- 59 .273 _~~~~~:~~c~i&ctiarfies= ..--.-----.39~~LI_.i~~,~~..I.~~~~7 Intergovernmental 2,000 . 833 i 8,116 .~~~.i::..::=:~...__.:::--=--~ .'-.-22:006..'.....:-..~.~! Internal Service Charges 119,531 49,805 .-.v.-,..-_.,-~_^'_...,..._"_._...__..~=.=._~~m.'~"H.<..'~~~_ ,_______~ "..~..~._.~.HU.__.' .!~~~!..Expen~itures __ ..._.~~~!l~_1__..!.~~!~~~ I ..---.-.....!-.................-...-.. . i ..-=-36l~~I~..:..:~:.~}~. (3,751)1 -6.8% : '-'-(22,04~ ___.__...~i3~~. (7.283 -873.9% 9, {57 .....-100..0%- --.~--~. -,_._._-~._..-_"~_._.~--_..~_..-_.._~^= (2) 0.0% -.-12,289.........-.........1:6% ~-'-" ~~-~_.~.._~,-,.~--_.,~,-, . .Operaif~i~~:c>.~!"_!J~~.~~~P ).. ~-:J3~!~54Tr ....I~9.;f1~lL J!~.!.!~.5.!1_...."i9~.~}~ 92.9% Other Sources Trarlsfer Irlfrom-utax"Fiirld---- '--"528,348 " .':':::_:..:~.t:~.I.c>.tlie!_~~~!ce s,_____ -~~=.l~~~'L"- '220,i45' ---,. 220,145 ""...-------- '---_............",. 0.0% -._._'-',~'=--, 0.0% Other Uses -T~a~~~~~~~rtu'~~~~~,....~=.==- ::=-=::.____ Total Other Uses - : _ . n/a n/a -.-,----.^_...... ,,,.,,.,..~_.~..,,.,..,_,_.w_,_._._^_....~.._.,_._,._w..__~, ~'_~_~,~_~.._~, i Net --.---.....-. --....---4----.--. _~!9!~_b!~.~~~...~ 28,588 I -76.3% (92,2 .1!!~!!'.l1ir~iBala~~:::.:=_=:===. . . -"'23;530; ..... 21,395 i".21".395 Ending Balancer-fi3,524Tf.142,226-1'$'49;983 $ (92,243) 0.0% ~--..,.~-,_._^~---"~ -64.9% City Council year-to-date expenditures total $235K is $4K above estimate mainly due to timing of payments. City Manager year-to-date expenditures of $540K is above year-to-date budget by $21 K mainly due to the increase in Consulting Services (Johnson Consulting Contract). Economic Development year-to-date expenditures of $93K is below year-to-date of $65K due to under-spending of one-time programs in 2008. Management Services year-to-date expenditures of $988K is $89K above estimate due timing of payments for Election Costs. Law year-to-date expenditures total $642K and is $8K above estimates due to increase in SalarieslBenefits due to hiring a City Staff Attorney in June of2007. 60 CASH & INVESTMENTS Overall investment interest through year-to-date through May 2007 compared to year-to-date through May 2008 decreased by $37K. The unfavorable variance is due to the decrease in interest rates for the State Investment Pool and the Municipal Investor Account. Both interest rates have decreased (on average) 5.19% to 2.43% and 5.38% to 2.01% respectively. 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 determine whether market yields are being achieved is the range between the average 6- month US Treasury Bill (1.86%) and the State Investment Pool (2.43%). The average portfolio yield is 2.59% and falls between the two benchmarks. Investment Schedule May 2008 Settlement Investment Maturity Yield to Tvpe Date Par Amount Cost Date Maturitv AClency - FHLB 3133XLJ53 08/10/07 $1,000,000 $1,008,623 7/2/2009 5.29% US T-BOND 912828LP 08/10/07 $1,000,000 $1,012,723 4/30/2009 4.50% Subtotal In-House Investments $2,000,000 $2,021,345,61 AveraCle Maturity 61 AveraCle Yield to Maturity 4.93% AveraCle Yield - 6 mo. T-BiII 1.86% Municipal Investor Account $1,516 1 day 2.01% State Investment Pool $60,168,892 1 day 2.43% Averaae Portfolio Maturity & Yield 3 2.59% Total Investments $62,191,753 The total invested balance at the end of May is $62.19M, which includes $60.17M in the state investment pool, $2.02M in- house investment purchases, and $2K in the Municipal Investor Accounts. The Municipal Investor has only $2K because of the low yield in the Municipal Investment Account; we have moved all but the one-day interest into the State Investment Pool. The state pool is composed of agency callables (.64%), repurchase agreements (3.58%), treasury securities (.81 %), agency coupons (8.02%), interest bearing bank deposit (5.0 1%), agency floating rate notes (20.33%), agency variable rate notes (1.90%), discount notes (51.71 %) and certificates of deposit (8.00%). The City's total investment portfolio is made up of 97% State Pool, 3% In-House Investments, and 0% Municipal Investors Accounts. In-House Investrrents 3% Total Portfolio by Category May 31, 2008 Mmicipal Investors Accounts 0.00% Interest Rates Comparison For the Month of May 2008 6.0% 3.0% - r-- - !-- - I 'T 'T 11II 6 Month T-Bill 5.0% 4.0% 11II State Investment Pool o In-house Investment 2.0% Slale Inveslrrenl Alai 97% 1.0% l!!I Municipal Investor Account 11II Portfolio Average 0.0% 2003 2004 2005 2006 2007 2008 61 ORDINANCE NO. 06-532 AN ORDINANCE OFTHE CITY COUNCIL OFTHE CITY OF FEDERAL WAY, WASHINGTON, PROVIDING FOR THE SUBMISSION TO THE ELECTORS OF THE CITY AT A GENERAL ELECTION TO BE HELD ON NOVEMBER 7, 2006 FOR A PROPOSITION AUTHORIZING THE CITY TO LEVY A UTIL TY TAX FOR THE PURPOSE OF PROVIDING ENHANCED POLICE AND COMMUNITY SAFETY. WHEREAS, there is substantial desire in the community to see increased police presence; quicker police responses; expedited code enforcement actions; and improved security to keep our parks free of vandals and graffiti; and WHEREAS, an enhanced level of police selVice is essential in keeping the City of Federal Way (the "City") a safe and livable community; and WHEREAS, police selVices and community safety is a prerequisite to a vibrant economy; and WHEREAS, the City Council finds it is in the best interest ofthe residents and businesses of the City to enhance police and community safety selVices by adding eighteen police officers (8 patrol officers, 2 patrol lieutenants, 4 traffic officers, 4 detectives); 1 Police records clerk; 0.5 Judge (for a total of 2 full time judges), 1.5 prosecutors, 1 court clerk, jail and public defender resources necessary to support those additional police officers; I code compliance officer and 0.5 attorney for code enforcement; one park maintenance worker and contracted security selVices; and necessary operating supplies, equipment, vehicles, internal support staff; for a total estimated cost of $2.46 million; and ORD # 06-532 , PAGE 1 62 WHEREAS, RCW 35.21.870 permits cities to levy a tax on the privilege of conducting utility businesses such as electrical energy, natural gas, or telephone business; and WHEREAS, the City's current levy of 6% utility taxes are necessary to meet debt service obligations for past capital investment projects, for the continued improvement to our transportation systems, for the annual street overlay program, and for the continuation of existing city services; and WHEREAS, State law authorizes an additional utility tax increase of up to 6%, when approved by the qualified electors; and WHEREAS, the City Council deems it necessary to submit to the qualified electors a proposed increase of 1.75% to generate the amount necessary to finance the police and community safety improvements described herein. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Police and Community Safety Funding:. The City Council hereby finds that it is in the best interests of the residents and businesses of the City to enhance police and community safety. Section 2. Election. A proposition authorizing the City to levy an increase of 1,75% in tax on utility businesses, for a total of7. 7 5%, to provide enhanced police and community safety services shall be submitted to the qualified electors ofthe City at the a general election to be held November 7,2006. The King County Department of Elections is hereby requested to asswne jurisdiction of and to call and conduct such election and to submit to the qualified electors of the City the proposition set forth in Exhibit A. The City Attorney is authorized to modify the proposition as directed by King County Elections. The City Clerk is hereby directed, not less then 45 days prior t() ORD # 06-532 , PAGE 2 63 November 7, 2006, to certify the proposition set forth in Exhibit A and forward the proposition to the King County Department of Elections. Section 3. Severability. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance or the invalidity ofthe application thereofto any person or circumstance, shall not affect the validity ofthe remainder 0 f the ordinance, or the validity 0 f its application to other persons or circwnstances. Section 4. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 5. Effective Date. This ordinance shall be effective five days after its passage, approval and publication as provided by law. PASSED by the City Council of the City of Federal Way this I r f/........ day of ~/!J.Jofr ,2006. . CITY OF FEDERAL WAY L_~~ . MAYOR, Ie p ATTEST: ORD # 06-532 , PAGE 3 64 APPROVED AS TO FORM: -/~t1 ~ CITY ATTORNEY, P A TRIClA A. RICHARDSON FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO.: ORD # 06-532 , PAGE 4 .&13lJU6 .WlW ~ 'H~ 06-532 65 EXHIBIT A City of Federal Way Additional Utility Tax Levy to Enhance Police and Community Safety The Federal Way City Council passed Ordinance No. 06-532 to ask the voters to enhance police and community safety services with an additional utility tax levy. This proposition would fund 18 additional police officers. It will also add court and supporting staff to handle the increased workload generated from these officers, including a 0.5 Judge position; add 1 code enforcement officer and 1 park maintenance worker, and fund security resources to assist police in resolving code violations and identifying and preventing crimes in parks and on city facilities. Shall the City levy an additional 1.75% utility tax pursuant to RCW 35.21.870? YES NO 66 67 ORDINANCE NO. 1)/0 -531 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, EXTENDING AND INCREASING THE UTILITY TAX RATE TO 7.75% FROM 6% FOR PROVIDING ENHANCED POLICE AND COMMUNITY SERVICES. (AMENDING ORDINANCE NOS. 95-257,96-262,96-276, AND 02-431). WHEREAS, RCW 35.21.870 permits cities to levy a tax on the privilege of conducting utility businesses such as electrical energy, natural gas, or telephone business; and WHEREAS, the City's current levy of 6% utility taxes are necessary for the construction of the community center, for the overlay program, for the ongoing maintenance of the community center, Knutzen Family Theatre, Celebration Park, continuation of existing city services; and WHEREAS, at the November 7, 2006 election, the voters of the City of Federal Way authorized the City to levy a 1.75% utility tax upon the privilege of conducting an electrical energy, natural gas, storm drainage, garbage, cable television, cellular and other telephone and wireless communication services businesses for the pwpose of financing enhanced police and community safety. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, W ASHlNGTON, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Utility Tax. Chapter 14, Article V, Section 14-173 of the Federal Way City Code is hereby amended to read as follows: ORD # IXo -53tt . PAGE 1 68 14-173 Occupations subject to t~x - Amount. There are levied upon, and shall be collected from everyone, including the city, on account of certain business activities engaged in or carried on in the city, occupation taxes in the amounts to be determined by the application of rates given against gross income as follows: (1) Upon everyone engaged in and carrying on a telegraph business, a tax equal to fHJ-7.75 percent of the total gross income from such business in the city during the period for which the tax .is due; (2) Upon everyone engaged in or carrying on a competitive telecommunication service or network telecommunication service, a tax equal to 6-:G-7.75 percent ofthe total gross income from such business in the city during the period for which the tax is due. In determining gross income from such business, including intrastate toll service, the taxpayer shall include 100 percent of the gross income received from such business in the city; (3) Upon everyone engaged in or carrying on the business of cellular telephone service, a tax equal to (r.(j..7.75 percent of the total gross income from such business in the city during the period for which the tax is due; (4) Upon everyone engaged in or carrying on the business of selling, brokering or furnishing natural gas for domestic, business or industrial consumption, a tax equal to (r.(j.. 7,75 percent of the total gross income from such business in the city during the period for which the tax is due; (5) Upon the city in respect to the conduct, maintenance, and operation of its municipal storm drainage system as a public utility a tax equal to 6:-G-7. 75 percent ofthe total gross income from such business in the city during the period for which the tax is due; ORD # (){, J531 , PAGE 2 69 (6) Upon everyone engaged in or carrying on the business of selling or furnishing electric energy, a tax equal to 647.75 percent of the total gross income from such business in the city during the period for which the tax is due; (7) Upon everyone engaged in the business of collecting solid waste, a tax equal to 6-:G-7. 75 percent of the total gross income from the city during the period for which the tax is due, less income derived from collection and sales of materials not defined herein as solid waste; and (8) Upon everyone engaged in or carrying on the business of cable communications, a fee or tax equal to (}.!J..7.75 percent of the total gross income from gross subscriber revenues in the city during the period for which the fee or tax is due. For purposes of this chapter, "gross subscriber revenues" means and includes those revenues derived from the supplying of subscription services, that is, installation fees, disconnect and reconnect fees, fees for regular cable benefits including the transmission of broadcast signals and access and origination channels and per-program or per- channel charges; it does not include leased channel revenue, advertising revenue, or any other income derived from the system. (Ord. No. 95-257, 9 1, 12-19-95; Ord. No. 96-262, ~ 1,2-20-96; Ord. No. 96-276, ~ 1, 12-3-96; Ord. No. 02-431, 9 1, 11-19-02). Section 2. Severability. The provisions of this ordinance are declared. separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance or the invalidity of the application thereof to any person or circumstance~ shall not affect the validity of the remainder ofthe ordinance, or the validity of its application to other persons or circumstances. Section 3. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. ORD # {)/p .531 , PAGE 3 70 Section 4. Effective Date. This ordinance shall take effect and be in force five (5) days from the time of its final passage, as provided by law. PASSED by the City Council of the City of Federal Way this 5th- [)PA'fUVi;y/ ,2006. day of CITY OF FEDERAL WAY .~~ ATTEST: (if/L//!fMou'rrft CITY LERK, LAURA HA .W A Y, CMC APPROVED AS TO FORM: f~<< ~ CITY ATTORNEY, PATRICIA A. RICHARDSON FILED WITH THE CITY CLERK: 1/ /Iflo" PASSED BY TIlE CITY COUNCIL: ~Dt. PUBLISHED: EFFECTNE DATE: ORDINANCE NO.: DIP -53'1 K:\Ordinance\2006\utiltiy tax increase ORD# 1J?~S3q , PAGE 4 71 i King County ~ Bl1ZDI ~ E!fImmm'D IIImmlII :: lections Department of Executive Services King County Local Voters' Pamphlet November 7, 2006 General & Special Election :ITY OF FEDERAL WAY >ROPOSITION NO.1 !\DDITIONAl UTILITY TAX lEVY TO ENHANCE POLICE AND COMMUNITY iAFETY -he Federal Way City Council passed Ordinance No. 06-532 to ask the voters to enhance police and :ommunity safety services with an additional utility tax levy. This proposition would fund 18 additional police Ifficers. It will also add court and supporting staff to handle the increased workload generated from these Ifficers, including a 0.5 Judge position; add 1 code enforcement officer and 1 park maintenance worker, and und security resources to assist police in resolving code violations and identifying and preventing crimes in ,arks and on city facilities. Shall the City levy an additional 1. 75% utility tax pursuant to RCW 35.21.870? YES NO EXPLANATORY STATEMENT The City of Federal Way's staffing levels for police and community safety have not kept pace with the City's 3pidly growing residential and business population, growing number of calls for police and code violation ervices, and increased security needs at city parks and facilities. Last year, the City's violent crimes (rape, robbery, murder, auto theft, arson, burglary, larceny, aggravated ssault) rose 19.6%, and its quality of life crimes (graffiti, vandalism, prostitution and recovered stolen ehicles) rose 12.3%. Gang related graffiti and vandalism in City parks has also increased substantially. To enhance police and community safety, City Council is asking voters to approve an additional tax on tility businesses of 1 .75% to fund 8 patrol officers; 4 traffic officers; detectives; 2 lieutenants; 1 records clerk; a half-time judge; 1 court clerk; 1.5 prosecutors; 1 code nforcement officer; a half-time code enforcement attorney; 1 park maintenance worker; arid contracted park ecurity patrols. Although State Law authorizes an additional voter approved utility tax of up to 6%, the City Council decided ) submit a proposal for only 1.75% to generate the amount necessary to finance police and community safety nprovements described above. It is projected that this proposed utility tax increase of 1.75% would result in pproximately an additional 6 per month per household or $7 per month per office of 2,000 square feet. If this proposition is rejected, the City's utility tax will not increase and staffing levels for police and ommunity safety would remain at current level. Statement For Statement Against The Federal Way Community Needs Your Help Now! Our police officers are dedicated to our 3afety, but they are seriously understaffed. By Joting to support an increase in the number of )fficers, we are protecting our investment in our lousing, schools and businesses. The City of Federal Way has not raised taxes in 10 years, and has contained operating costs by :lliminating 17 city employee positions. The per- ;apita budget that funds our police is the smallest )f all 38 cities in King County, making it impossible The Council has an established set of budget priorities. One statement in this document reads: "Recognize that public safety continues to be the top priority of the Council" The case for additional public safety personnel has been made; the Council has not prioritized it. We have been given an ultimatum: PAY MORE IN TAXES OR SUFFER THE CONSEQUENCES OF AN UNDERSTAFFED POLICE FORCE. Until the full 2007108 budget is disclosed the need to 72 to meet our public safety needs. The average ratio of officers in south county cities is 1.65. Federal Way's ratio is just 1.39, 15% below average. Last year the incidents of major crime in the city increased 20% while property taxes went up just 1 %. The passage of this levy, adding just $6.08 per household per month to our utility bills, will bring our ratio to 1.60, which is slightly below the region's overall average. Exemptions are available to help our low-income seniors. The choice is ours: control crime or let criminals control us. Vote YES! The community will prosper as we crack down on crime Rebuttal of Statement Against raise taxes remains unproven. The Council had ample opportunities over the past year to craft a more palatable proposition. Funding could have been provided from the ever increasing capital budget and residents could then have been allowed to vote on subsidizing downtown development, annual street overlay programs, and transportation and park improvement projects. A 5% admissions tax could also have been approved. While a number of South Sound Cities request property tax lift lids to pay for road improvements, I know of none that fund police departments in this way, neither do I know of any city collecting more than a 6% utility tax. A NO vote sends a message to the council; PRIORITIZE PUBLIC SAFETY AND LET US VOTE ON THE INNUMERABLE LESSER PRIORITY CAPITAL PROJECTS. STATEMENT PREPARED BY: Derek W. Purton Are we going to invest in our community or watch it decline? We have a choice of making a reasonable annual investment to provide a stable Rebuttal Of Statement For future for us and our police officers. The fair approach is community wide funding. We all need to participate; not just a few select businesses. NO STATEMENT SUBMITTED. The capital budget is a dedicated fund; it cannot be used to support the police. Vote Yes!. STATEMENT PREPARED BY: Dini Duclos, Chuck Duffy, Bill Drake Complete Text of Resolution ORDINANCE NO. 06-532 I \N ORDINANCE OF THE CITY COUNCil OF THE CITY OF FEDERAL WAY, WASHINGTON, PROVIDING :OR THE SUBMISSION TO THE ELECTORS OF THE CITY AT A GENERAL ELECTION TO BE HELD ON mVEMBER 7,2006 FOR A PROPOSITION AUTHORIZING THE CITY TO LEVY A UTILITY TAX FOR THE 'URPOSE OF PROVIDING ENHANCED POLICE AND COMMUNITY SAFETY. WHEREAS, there is substantial desire in the community to see increased police presence; quicker police esponses; expedited code enforcement actions; and improved security to keep our parks free of vandals and lraffiti; and WHEREAS, an enhanced level of police service is essential in keeping the City of Federal Way (the "City") I safe and livable community; and WHEREAS, police services and community safety is a prerequisite to a vibrant economy; and WHEREAS, the City Council finds it is in the best interest of the residents and businesses of the City to mhance police and community safety services by adding eighteen police officers (8 patrol officers, 2 patrol ieutenants, 4 traffic officers, 4 detectives); 1 Police records clerk; 0.5 Judge (for a total of 2 full time judges), 1.5 prosecutors, 1 court clerk, jail and public defender resources necessary to support those additional police )fficers; 1 code compliance officer and 0.5 attorney for code enforcement; one park maintenance worker and ;ontracted security services; and necessary operating supplies, equipment, vehicles, internal support staff; for I total estimated cost of $2.46 million; and NHEREAS, RCW 35.21.870 permits cities to levy a tax on the privilege of conducting utility businesses such IS electrical energy, natural gas, or telephone business; and NHEREAS, the City's current levy of 6% utility taxes are necessary to meet debt service obligations for past ;apital investment projects, for the continued improvement to our transportation systems, for the annual street )Verlay program, and for the continuation of existing city services; and NHEREAS, State law authorizes an additional utility tax increase of up to 6%, when approved by the qualified ~Iectors; and NHEREAS, the City Council deems it necessary to submit to the qualified electors a proposed increase of 1.75% to generate the amount necessary to finance the police and community safety im()rovements described lerein. \JOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES ;EREBY ORDAIN AS FOllOWS: Section 1. Police and Community Safety Funding. The City Council hereby finds that it is in the best nterests of the residents and businesses of the City to enhance police and community safety. Section 2. Election. A proposition authorizing the City to levy an increase of 1.75% in tax on utility )usinesses, for a total of 7.75%, to provide enhanced police and community safety services shall be submitted :0 the qualified electors of the City at the a general election to be held November 7, 2006. The King County Jepartment of Elections is hereby requested to assume jurisdiction of and to call and conduct such election ,lnd to submit to the qualified electors of the City the proposition set forth in Exhibit A. The City Attorney is 3uthorized to modify the proposition as directed by King County Elections'7lj1e City Clerk is hereby directed, 10t less then 45 days prior to November 7,2006, to certify the proposition set forth in Exhibit A and forward he proposition to the King County Department of Elections. Section 3. Severability. The provisions of this ordinance are declared separate and severable. The invalidity )f any clause, sentence, paragraph, subdivision, section, or portion of this ordinance or the invalidity of the lpplication thereof to any person or circumstance, shall not affect the validity of the remainder of the )rdinance, or the validity of its application to other persons or circumstances. Section 4. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance s hereby ratified and affirmed. Section 5. Effective Date. This ordinance shall be effective five days after its passage, approval and )ublication as provided by law. :JASSED by the City Council of the City of Federal Way this 19th day of September, 2006. :;ITY OF FEDERAL WAY v1AYOR, MICHAEL PARK (signed) EXHIBIT A City of Federal Way Additional Utility Tax Levy to Enhance Police and Community Safety The Federal Way City Council passed Ordinance No. 06-532 to ask the voters to enhance police and :ommunity safety services with an additional utility tax levy. This proposition would fund 18 additional police lfficers. It will also add court and supporting staff to handle the increase workload generated from these lfficers; add 1 code enforcement officer and 1 park maintenance worker, and fund security resources to assist lolice in resolving code violations and identifying and preventing crimes in parks and on city facilities. Shall he City levy an additional 1.75% utility tax pursuant to RCW 35.21.870? rES m .-~~-'---""-----'---~-~-'-'-'--'--~-----'-~-'._~--'---- !SIQ9G911JJty I NE:!'I\I~ 1$E:!rYit:;l:).~ I GQ.mm~n!!2I$l?1'!cQ.!] Links to external sites do not constitute endorsements by King County. By visiting this and other King County web pages, you expressly agree to be bound by terms and conditions of the site. Ibl:)J;jJ~Jail~, 74 75