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FEDRAC PKT 07-22-2008 ~. Federal Way City Council Finance/Economic Development/Regional Affairs Committee Tuesday, July 22, 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: June 24, 2008 Meeting B. Interlocal Agreement with the State Administrative Office of the Courts C. Legal Analysis: Proposition 1 Funds Discussion D. Approval of Vouchers E. Monthly Financial Report Action Presenter Page # or Info K. Roe 1 Action Iwamoto 4 Action Walls 12 Info Kraus 15 Action Kraus 62 Action 4. OTHER A. Review of Sound Transit TOD Project Permits - Follow up discussion from June 24, 2008 meeting. Walls N/A Info 5. FUTURE AGENDA ITEMS . Neighborhood Program Status Update . City Sponsorship Policy 6. NEXT MEETING: Tuesday, August 26,2008 @ 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\07-2008\7-22-08 fEDRAC Agenda.doc A Federal Way City Council Finance/Economic Development/Regional Affairs Committee Tuesday, June 24, 2008 City Hall 5:30 p.m. Hylebos Conference Room MEETING SUMMARY Committee Members in Attendance: Committee Chair Park and Committee Members Duclos and Faison. Councilmembers in Attendance: Kochmar and Burbidge. Staff Members in Attendance: City Manager Neal Beets (5:50 arrival) Interim Assistant City Manager Mary McDougal; Deputy City Attomey Aaron Walls, Finance Director Tho Kraus, Senior Financial Analyst Mark Turley, Deputy Public Works Director Marwan Salloum; Deputy Police Chief Andy Hwang; Lieutenant Mark Bensen; and Deputy City Clerk Krystal Roe. I. <?ALL TO ORDER: The meeting was called to order at 5:32 p.m. 2. PUBLIC COMMENT: None. 3. COMMITTEE BUSINESS: AGENDA TOPIC, DISCUSSION & ACTION A. Approval of Minutes: May 27 22, 2008 Meeting. The summary was amended to reflect Council member Burbidge's presence at the meeting. The Committee M/S/C to approve the minutes as amended. Carried 3 - O. ! -----~._-,.---._'-"---.-------,-,------.-,..---------.--.----....-...------...-.-.-.--.--..---.-.--- ~-"--.------- ... ..._..._._._......_._."...._....".___.u._._...-......._.. .... ...... ---.----...-.--..----.-----------.-----~-- --f-'. B. Acceptance of Grant funds from the Washington Traffic Safety Commission & Purchase of Motorcycles for the Police Traffic Unit: Deputy Chief Hwang presented the staff report. He stated that in recent years the cost to lease motorcycles has risen substantially. Because of the higher lease rates, it now makes sense to transition to a purchase plan. Deputy Chief Hwang explained the Department's proposal for a staggered purchase/lease plan ensures the vehicles will obtain their projected maximum useful life at different times. Doing so will prevent the City from replacing all the vehicles at anyone time. , In response to a Committee question, Lt. Bensen answered that the vehicles would i have a monetary value at the end of their service life and could expect to i generate some revenue when sold. i , i I The Committee M/S/C to approve Option 1 (move to a partial lease plan by I purchasing two leased motorcycles with WTSC grant money: Purchase two new I motorcycles with R&R money; Lease one additional motorcycle: Purchase a third I leased motorcycle in 2009 with R & R money). Carried 3 - D. i ! i 1 FORWARD TO COUNCIL N/A July 1 Consent Agenda .._...L.. June 24. 2008 FEDRAC Meeting Summary Minutes Page 2 of 3 C. Approval of Vouchers: No questions were posed. : July 1 The Committee M/S/C to approve the vouchers as presentep. Carried 3 - o. I Consent ---- _______.______.___._________._.____________._____.._____.___.._______________.._.______ _._____c______..________ I Agenda_____ D. Monthly financial Report: Mark Turley presented the staff report. The Committee! July 1 inquired about the high utility tax revenue variance between home phone service I Consent and cell phone service; 'Mr. Turley will check the numbers for accuracy. Agenda During his report, Mr. Turley noted that the building permit fee for the Korean Women's Association had been waived by former City Manager David Moseley. The Committee asked that the decision-making process for the waiver be reviewed at the next FEDRAC meeting. The Committee members expressed concern that the reasons for the waiver should be reviewed and discussed so that it is clearly understood. The Committee asked Mr. Salloum to follow up with Community Development Director Greg Fewins on this issue and return to the July 22, 2008 FEDRAC meeting. The Committee M/S/C to approve the report as presented. Carried 3 - O. E. Impact fee Performance Audit Update (INfO ONLY - NO ACTION): Ms. Kraus summarized the preliminary audit results and distributed the City's initial reply. She noted the audit's small scope made it difficult to consider useful at this time. She clarified the performance audit is non-binding; its intended purpose is to improve efficiency and highlight best practices for the __c:::ity, . NQ()lb~L.P~f!()rf!lqQ~~_q_~9it~9L~_9Qtlc::if:>.(]t~g_..9tJJJ!s.Ji!Il_~._._._____..________________.________~_______. 4. OTHER: A. Review November 7, 2006 Proposition 1 utility Tax Rate Increase: Ordinances, (No. 06- 539 & 06-532) and Ballot Language: Committee member Faison asked staff to provide a legal analysis at the July 22, 2008 FEDRAC meeting about using excess Proposition 1 revenue within the existing language parameters set by the Ordinance and ballot B. Historical Review of the City's Asphalt Overlay Program: Mr. Salloum distributed two handouts detailing the Overlay Program's rating, budget, and expenditure history. The Committee discussed the City's current OCI rating and noted neighboring cities have not maintained their asphalt as well as Federal Way; they are now experiencing difficulties funding repairs. Mr.Salloum also clarified that while the budget number has remained the same, the scope of the overlay program has declined each year because of rising expenses. Without an adjustment for inflation and cost increases, the progrdm will cover fewer areas each year. Low-Income Senior Citizen & Low-Income Disabled Citizen Utility Tax Rebate Program: Ms. Roe gave a brief update on the status of the program. This year. a total of 72 rebates were issued; 34 were from new customers including 20 low-income disabled persons. The rebates totaled approximately $9,529 with an average rebate of $132. Ms. Roe and Ms. Courtney will continue to reach out to the community to expand the program and reach more citizens next year. 2 June 24. 2008 FEDRAC Meeting Summary Minutes Page 3 of 3 streamlined Sales Tax (SST): Chair Park inquired about the status of the SST and the value of projected revenue from this change. Ms. Kraus replied the initial estimate was a quarter million dollars, but she's heard from the Department of Revenue that those figures are outdated with no updated figures available at this time. However. she did report that the City of Federal Way will be gaining revenue. The SST will become effective July 1, 2008 and staff will report the figures as soon as they are available. 5. FUTURE AGENDA ITEMS: Nothing further discussed. 6. NEXT MEETING: Tuesday, July 22, 2008 @ 5:30 p.m. Chair Park adjourned the meeting at 6:27 p.m. Attest: COMMITTEE APPROVAL: Mike Park Committee Chair Dini Duclos Committee Member Eric Faison Committee Member 3 COUNCIL MEETING DATE: August 5,2008 ITEM CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECf: Interlocal Agreement with the State Administrative Office Of The Courts. POLICY QUESTION: SHOULD THE CITY COUNCIL APPROVE AN INTERLOCAL AGREEMENT WITH THE ST ATE ADMINISTRATIVE OFFICE OF THE COURTS TO ACCEPT FUNDS TO IMPROVE COURT INTERPRETER SERVICES? COMMITIEE: Finance/Economic Development/Regional Affairs MEETlNGDATE: 7/22/08 CATEGORY: [8J Consent o City Council Business o Ordinance o Resolution o o Public Hearing Other ~~~!!,_(?_~PO~!}!Y~~~_!~~~<?:!:2,.~<?~~:r-..~~_~~.~~!'~:!:Q~.......__.........._......_._.__.!?~!.:::.~~~.~.~. C~~~.____..__._...._._...m BACKGROUND: This Interlocal agreement is to accept funds from the State Administrative Office of the Courts to improve the quality and availability of court interpreter services for Limited English Proficient, deaf, and hard of hearing persons in accordance with RCW 2.42 and 2.43. The Court will track and provide the interpreter cost and usage data to the Washington State Administrative Office of the Courts (AOe) from July 1,2008 through June 30, 2009. AOC will reimburse the Court a maximum of$27,863 for interpreter costs incurred during the period. This Agreement has been reviewed and approved by the City's Law Department. Attachments: Interlocal Agreement. Options Considered: I. Reconunend approval of the proposed Interlocal Agreement and forward to full Council for first reading at the August 5, 2008 City Council meeting. 2. Deny approval of the proposed Interlocal Agreement and provide further direction. STAFF RECOMMENDATlON: Approve 0 DIRECTOR ApPROVAL: ~/-~ ~~ Conunittee. Council CITY MANAGER ApPROVAL: COMMITfEE RECOMMENDATlON: I MOVE TO APPROVE OPTION Mike Park, Conunittee Chair Dini Duclos, Conunittee Member Eric Faison, Conunittee Member PROPOSED COUNCIL MOTlON: HI move approval of the proposed Inter/ocal Agreement with the State Admistrative Office of the Courts. .. COUNCIL ACTlON: o APPROVED o DENIED o T ABLEDfDEFERREDINO ACfION o MOVED TO SECOND READING (ordinances only) REVISED - 02/06/2006 (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL BILL # 1 ST reading Enactment reading ORDINANCE # RESOLUTlON # K:\Agenda Item\FHSRAC\2008\ROW 4 II RETURN TO: CITY OF FEDERAL WAY LAW DEPARTMENT REQUEST FOR CONTRACT PREPARATIONIDOCUMENT REVIEW/SIGNATURE ROUTING SLIP 1. ORIGINATING DEPT./D.IV: M U AI I Cf PA-'L. U tJ. p., 7 2. ORIGINATING STAFF PERSON: .f...kfZ, I W AM 07 tJ EXT: ~ 0/1 3. DATE REQ. BY: .A S kP 4. TYPE OF DOCUMENT REQUESTED (CHECK ONE) o PROFESSIONAL SERVICE AGREEMENT o MAINTENANCE/LABORAGREEMENT o PUBLIC WORKS CONTRACT o SMALL PUBLIC WORKS CONTRACT o SECURITY DOCUMENT (E.G. AGREEMENT & PERFIMAIN BOND; ASSIGNMENT OF FUNDS IN LIEU OF BOND) o CONTRACTOR SELECTION DOCUMENT (E.G., RFB, RFP, RFQ) o CONTRACT AMENDMENT AG#: o CDBG .y.. OTHER (LESS THAN $200,000) o PURCHASE AGREEMENT) (MATERIALS, SUPPLIES, EQUIPMENT) o REAL ESTATE DOCUMENT 5. PROJECT NAME: f'N16"I.!c4eNc-y k4f!..~6 #lI7N7 IAA tJq-o It) 6. NAMEOFCONTRACTOR: peoe/l.-A-l WAy.MUNlc/PkL t-fJUft-7 ADDRESS: PO bOx. q1-lr Fe7)~A-L WA-Y WA dtfJO~3 TELEPHONEZ6,3~3.5,3a10 SIGNATURE NAME: P./lrlf, I WAM tIT ~ . TITLE 7. ATTACH ALL EXHffiITS AND CHECK BOXES 0 SCOPE OF SERVICES 0 ALL EXHIBITS REFERENCED IN DOCUMENT o INSURANCE CERTIFICATE 0 DOCUMENT AUTHORIZING SIGNATURE 8. TERM: COMMENCEMENT DATE: 1 / I / () ~ COMPLETION DATE: ~ /30/ () 1 9. TOTAL COMPENSATION $ 2.1 ~ 6 3 I Z.:3 (INCLUDE EXPENSES AND SALES TAX, IF ANY) (IF CALCULATED ON HOURLY LABOR CkARGE - ATIACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES) REIMBURSABLE EXPENSE: 0 YES 0 NO IF YES, MAXIMUM DOLLAR AMOUNT: $ IS SALES TAX OWED 0 YES 0 NO IF YES, $ PAID BY: 0 CONTRACTOR 0 CITY o PURCHASING: PLEASE CHARGE TO: 10. CONTRACT REVIEW ~ PROJECT MANAGER o DIRECTOR o RISK MANAGEMENT (IF APPLICABLE) l!l LAW INITIAL/DATE APPROVED ..r?77/ /77J ? ~/.L5Z INITIALlDATE APPROVED ~ 7(7./0 ~ . INITIAL/DATE APPROVED INITIAL/DATE APPROVED 11. CONTRACT SIGNATURE ROUTING o LAW DEPARTMENT o CITY MANAGER o CITY CLERK o SIGN COpy BACK TO ORGINATING DEPT. o ASSIGNED AG# COMMENTS 12108 5 INTERAGENCY AGREEMENT IAA09010 between STATE OF WASHINGTON ADMINISTRATIVE OFFICE OF THE COURTS 1206 Quince Street SE PO Box 41170 Olympia, Washington 98504-1170 and FEDERAL WAY MUNICIPAL COURT PO Box 9717 Federal Way, WA 98063 THIS CONTRACT is entered into by and between the Administrative Office of the Courts ("AOC") and FEDERAL WAY MUNICIPAL COURT (Contractor"). 1. PURPOSE The purpose of this contract is to engage the services of the Contractor to improve the quality and availability of court interpreter services for Limited English Proficient (LEP), deaf and hard of hearing persons in accordance with RCW 2.42 and 2.43. a. These funds are intended to address the Contractor's following needs: o Financial need - i.e., the gap between the Contractor's available financial resources and the costs to meet its need for certified, registered and qualified interpreters; and o Interpreter need - i.e., the gap between the level of the LEP, deaf and hard of hearing public's need for language access to the Contractor's court(s) (i.e., the level of interpreter need) and the available interpreter pool (in particular, certified, registered and qualified interpreters in the applicant's most frequently needed languages). lAA09010-v2 6 Page 1 of 6 2. DESCRIPTION OF SERVICES TO BE PROVIDED a. The Contractor will ensure that the interpreter funding is targeted to improve the quality and availability of court interpreter services for Limited English Proficient (LEP), deaf and hard of hearing persons. by reimbursing Certified, Registered and Qualified interpreters for interpreter services in accordance with the Interpreter Services Funding: Funding Conditions / Payment Structure, and Travel and Mileage Reimbursement requirements as set forth at https://inside.courts. wa.Qov/index.cfm?fa=controller.showPage&folder=courtlnterpreter& file=lnteroreterlnformationforCourts . b. The Contractor agrees to actively participate in the new vision and structure for state funding of interpreter services; and to track and provide the interpreter cost and usage data needed to demonstrate the impact of the funding. In particular, the Contractor agrees to submit electronically with each request for reimbursement a completed Interpreter Services Funding Data form, reflecting the interpreter services and costs for which the Contractor seeks reimbursement. The Interpreter Services Funding Data form (an Excel spreadsheet), and Instructions for completing itare set forth at: https://inside.courts. wa.qov/index.cfm?fa=controller .showPaqe&folder=courtlnteroreter& file=lnteroreterlnformationforCourts . c. The Contractor agrees to partner closely with the AGC Interpreter Program and the Interpreter Commission to identify and implement innovations and best practices for providing interpreter services (e.g., innovations in scheduling of interpreters), with a 'view to improving interpreter services and the service infrastructure statewide. 3. PERIOD OF PERFORMANCE The period of performance under this Contract shall be from July 1, 2008 through June 30, 2009. lAA09010-v2 7 Page 2 of 6 4. COMPENSATION a. Contractor shall be reimbursed a maximum of $27,863.23 for costs incurred during the period. July 1, 2008 through June 30, 2009. b. Contractor shall receive paymen.t for its costs for interpreter services as set forth in Section 2.a. c. Contractor, shall not be reimbursed until A -19 invoices are received and approved by AOe. d. If this agreement is terminated, Contractor shall only receive payment for performance rendered or costs incurred in accordance with the terms of this agreement prior to the effective date of termination. e. In order to receive payment, Contractor shall submit a paper A-19 invoice to AOC, and shall additionally submit its A-19 invoice and its completed Interpreter Services Funding Data form (see Section 2.b) electronically to AOC (either by email or on CD). f. The Contractor shall submit its paper A-19 invoices to AOC Financial Services, PO Box 41170, Olympia, Washington 98504-1170 no more frequently than monthly. The contractor shall submit its A-19 invoices and completed Interpreter Services Funding Data forms electronically to AOC Court Services (contact information to be determined). Payment to the Contractor for approved and completed work will be made by warrant or account transfer by AOC within 30 days of receipt of a properly- completed invoice and the completed Interpreter Services Funding Data form. Upon expiration of the Agreement, any claim for payment not already made shall be submitted within 30 days after the expiration date or the end of the fiscal year, whichever is earlier. g. Contractor shall maintain sufficient backup documentation of expenses under this agreement. 5. ADDITIONAL INTERPRETER DATA In addition to collecting and submitting to AOC the required interpreter data in order to support its requests for reimbursement as set forth in Section 2.b of this Agreement, the Contractor agrees to provide to AOe the amount Contractor spent on interpreter services for Contractor's fiscal years 2005 through 2008, and for the first half of Contractor's fiscal year 2009 (through June 30, 2009). 6. LANGUAGE ASSISTANCE PLAN(S) As a condition of receiving funding under this Agreement, Contractor agrees to create and maintain an AOC-approved Language Assistance Plan. \ IAA09010-v2 8 Page 3 of 6 7. TREATMENT OF ASSETS AND PROPERTY: The AOC shall be the owner of any and all ftxed assets or personal property jointly or cooperatively, acquired, held, used, or disposed of pursuant to this Agreement. 8. RIGHTS IN DATA: Unless otherwise provided, data which originates from this contract shall be "works for hire" as deftned by the u.s. Copyright Act of 1976 and shall be owned by the AOe. Data shall include, but not be limited to, reports, documents, pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes, and video and/or sound reproductions. Ownership includes the right to copyright, patent, register, and the ability to transfer these rights. In the event that any of the deliverables under this contract include material not included within the deftnition of "works for hire," the Contractor hereby assigns such rights to the AOC as consideration for this contract. Data which is delivered under this contract, but which does not originate therefrom, shall be transferred to the AOC with a nonexclusive, royalty-free, irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so; Provided, that such license shall be limited to the extent which the Contractor has a right to grant such a license. The Contractor shall advise the AOC, at the time of delivery of data furnished under this contract, of all known or potential invasions of privacy contained therein and of any portion of such document which was not produced in the performance of this contract. The AOC shall receive prompt written notice of each notice or claim of copyright infringement received by the Contractor with respect to any data delivered under this contract. The AOC shall have the right to modify or remove any restrictive markings placed upon the data by the Contractor. 9. INDEPENDENT CAPACITY: The employees or agents of each party who are engaged in the performance of this Agreement shall continue to be employees or agents of that party and shall not be considered for any purpose to be employees or agents of the other party. 10. AGREEMENT ALTERATIONS AND AMENDMENTS: This Agreement may be amended by mutual agreement of the parties. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind each of the parties. 11. RECORDS, DOCUMENTS, AND REPORTS: The Contractor shall maintain books, records, documents and other evidence of accounting procedures and practices which sufftciently and properly. reflect all direct and indirect costs of any nature expended in the performance of this contract. These records shall be subject at all reasonable times to inspection, review, or audit by personnel duly authorized by the AOC, the Office of the State Auditor, and federal officials so authorized by law, rule, regulation, or contract. The Contractor will retain all books, records, documents, and other material relevant to this contract for six years after settlement, and make them available for inspection by persons authorized this prOViSion. 12. RIGHT OF INSPECTION: The Contractor shall provide right of access to its facilities to the AOC, or any of its officers, or to any other authorized agent or official of the state of Washington of the federal government at all reasonable times, in order to monitor and evaluate performance, compliance, and/or quality assurance under this contract. lAA09010-v2 9 Page 4 of 6 13. DISPUTES: Disputes arising under this Agreement shall be resolved by a panel consisting of one representative from the AGC, one representative from the Contractor, and a mutually agreed upon third party. The dispute panel shall thereafter decide the dispute with the majority prevailing. Neither party shall have recourse to the courts unless there is a showing of noncompliance or waiver of this section. 14. TERMINATION: Either party may terminate this Agreement upon thirty (30) days written notice to the other party. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. 15. GOVERNANCE: TIUs Agreement is entered into pursuant to and under the authority granted by the laws of the state of Washington and any applicable federal laws. The provisions of this Agreement shall be construed to conform to those laws. In the event of an inconsistency in the terms of this Agreement, or between its terms and any applicable statute or rule, the inconsistency shall be resolved by giving precedence in the following order: a. Applicable state and federal statutes and rules; b. Any other provisions of the agreement, including materials incorporated by reference. 16. ASSIGNMENT: The work to be provided under this Agreement, and any claim arising thereunder, is not assignable or delegable by either party in whole or in part, without the express prior written consent of the other party, which consent shall not be unreasonably withheld 17 . WAIVER: A failure by either party to exercise its rights under this Agreement shall not preclude that party from subsequent exercise of such rights and shall not constitute a waiver of any other rights under this Agreement unless stated to be such in a writing signed by an authorized representative of the party and attached to the original Agreement. 18. SEVERABILITY: If any provision of this Agreement, or any proVlsion of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Agreement which can be given effect without the invalid provision and to this end the provisions of this Agreement are declared to be severable. 19. ENTIRE AGREEMENT: This Agreement contains all the terms and conditions agreed upon by the parties. All items incorporated herein by reference are attached. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto. IAA09010-v2 10 Page 5 of 6 CONTRACT MANAGEMENT The program managers noted below shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Agreement: AGC Program Manager: Contractor Program Manager: Chris RuW Rae Iwamoto, Court Administrator PO Box 41170 PO Box 9717 Olympia, WA 98504-1170 Federal Way, WA 98063 (360) 705-5228 (253) 835-3019 Chris.RuW courts.wa. v Rae.iwamoto ci offederalwa .com ENTIRE AGREEMENT: This contract contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this contract shall be considered to exist or to bind any of the parties to this agreement unless otherwise stated in this contract. AGREED: THE ADMINISTRATIVE OFFICE OF THE COURTS CONTRACTOR Dirk Marler, Director Judicial Services Division Signature Printed Name Date Date lAA09010-v2 11 Page 6 of 6 COUNCIL MEETING DATE: N/A ITEM #: _.._.________h__________________....__._.____....._.________._.__.__.__._.________.._.__...___.__.____.........._..___...__.._____.______.__._..____.._._.._.___..__..__..........,_ CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: Proposition I funds discussion. QUESTION: ARE THERE RESTRICTIONS ON THE EXPENDITURE OF PROPOSITION 1 MONIES? COMMITTEE: FinancelEconomic DevelopmentIRegional Affairs MEETING DATE: 7/22/08 CATEGORY: o Consent o City Council Business o Ordinance o Resolution o IZI Public Hearing Other ~!~.~~ R~!'-~_~!.!~X.:.A.~ON_W ~~~!Q~.p~TY <;:!IY A.!:r_<2.~~..Y...._....__.___...._..m.____m~_E~~:_~~~_.___.____.__....___..__._.._.... At the previous FEDRAC meeting, Council asked for a discussion regarding how Proposition 1 monies could be used in the budget given changes in revenues and expenditures that have occurred subsequent to the passing of the proposition. Attached is a white paper discussing the issue. -.--......-----..-.-...------...---.........-.----..--..-..---.--...--.-..----.----..--..---....--.--------.---.--.-..--.--....---.--.-..--.......-.....--.-......__..._...___.....__._._..__.__..__m___..___._.___.__.__.._._..._._...._______.__.______. CITY MANAGER ApPROVAL: N/A Council DIRECTOR ApPROVAL: Co~ee N/A Council COMMITTEE RECOMMENDATION: N/A - Informational only. PROPOSED COUNCIL MOTION: (N/ A - INFORMATIONAL ONLY) COUNCIL ACTION: o APPROVED o DENIED o TABLEDIDEFERREDINO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 02/0612006 (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL BILL # 1sT reading Enactment reading ORDINANCE # RESOLUTION # K:\Agenda Item\FHSRAC\2008\ROW 12 ~ CITYOF 1/1' ~ Federal Way CITY ATTORNEY'S OFFICE WHITE PAPER DATE: JULY 22ND, 2008 TO: FINANCE/ECONOMIC DEVELOPMENTIREGIONAL AFFAIRS COMMITTEE FROM: AARON WALLS, DEPUTY CITY A TTORNEY ~ SUBJECT: PROPOSITION 1 SPENDING RESTRICTIONS QUESTION What are the legal limitations on use of the funds generated through the portion of the utility tax that was enacted pursuant to Proposition I? BACKGROUND In 2006 Council passed a resolution asking citizens to vote on Proposition 1, a proposition to increase the utility tax from 6% to 7.75%. Voter approval is required to increase the tax above 6%. The additional monies were described as being for enhanced police and community safety services. In the recitals of the resolution, the tax increase was specifically indicated as being for a certain number of police and other positions and to provide support for those positions. In the proposition, the actual question presented to voters (the ballot title) was whether to raise the tax an additional 1.75%. The heading identified the proposition as being for an additional utility tax to enhance police and community safety. The summary identified the number of positions being added. The explanatory statement noted that staffing levels had not kept pace with the City's population, noted the additional positions to be added, and reiterated the tax was designated for police and community safety. When the proposition passed, the Council passed an ordinance which actually increased the tax. The recitals of that ordinance noted the purpose was to finance enhanced police and community safety but the actual language of the ordinance did not include a specific purpose for the funds. DISCUSSION Chapter 35.21 RCW governs city utility taxes. RCW 35.21.870 requires that any tax rate above 6% must be approved by a vote of the citizens. There are few other legal limitations on 13 utility taxes. In contrast, a property tax levy is governed by RCW 84.55.050 which generally provides that in a vote for additional taxes, the taxes are designated for a specific purpose. Once the specific purpose is accomplished the additional levy expires. The proposition gave the City Council authority to raise the rates, which it did by separate ordinance, but the proposition itself did not create the tax. Although the utility tax proposition had various statements of purpose in its surrounding materials, it does not appear that these have any necessary and binding legal effect. There is no state law restricting the use of the utility tax authorized in Proposition 1. An ordinance passed by Council, including a budget ordinance, that amended or altered where the funds were used, would control over any direction given from a previous ordinance or the Proposition. There does not appear to be any legal impediment to using the funds from Proposition 1 in a fashion that Council so directs. K:\Memo\Council memo\Prop 1 white paper 2 14 COUNCIL MEETING DATE: August 5, 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, 736,379. 77 COMMITTEE: Finance, Economic Development, and Regional Affairs Committee MEETING DATE: July 22, 2008 CATEGORY: ~ Consent 0 Ordinance 0 Public Hearing o City Council Business 0 Resolution 0 Other ~!~!,:~_~p~.~!.!JY:.!~o ~:Jl~:i!!~~~..!?i~ec~?L____..__._._.___.__..m.._._._.m._._.._...__~!:.~.~:~~~~:..._....__....________.m..m__.. 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. ~cQ Fin~nce Director Attachments: Voucher List Options Considered: NA STAFF RECOMMENDATION: NA CITY MANAGER APPROVAL: DIRECTOR ApPRO V AL: Co~ee ~Cil COMMITTEE RECOMMENDATION: "I move approval of the vouchers andforward to the August 5,2008 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 BYClTY CLERKS OFFiCE) COUNCIL ACTION: o APPROVED o DENIED o TABLEDIDEFERREDINO ACTION o MOVEJ) TO SECOND READING (ordinances only) REVISED - 02/0612006 COUNCIL BILL # 1ST reading Enactment reading ORDINANCE # RESOLUTION # 15 ..... 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"<t N ~ o ::l o o 0:: 0- 0:: o 0:: n::: ~ W I-- C/) <( ~ 0:> o o "<tI.ON NN>- <0<0<( ~~~ (/) 2 o i= <( o 2 ::l .~ ~ o o ~ o o (/) W 5: n::: W I-- Z W o I- 2 W ~ ~ 0- I-- (/) W 5: 0:> o o ~ M ~ -... <0 CO o o ~ ...... ~ -... <0 0:> o o ~ <0 -... <0 0:> o o N ...... W 2 ::> ...., z W I 0- W I- C/) <0 N m M co ~ CO o -... <0 o -... <0 o >- z <( 0- ~ o o 06 I l- n::: o 5: o o o 5: ~ (/) 5: o I o W o -, o ~ CO co co co co co co g~g~g~g~g~g~g~ ~~~~~~~~~~~~~~ 00000000000000 M::JM::JM::JM::JM::JM::JM::J -"'0-"'0--0-"'0-"'0-"'0-"'0 <0><0><0><0><0><0><0> ~ N M "<t lO <0 ...... 0000000 co 0:> co co co co co lO 1.0 lO lO lO lO 1.0 0000000 N N N N N N N 58 (J) f'-. C'? 0 (V) N f'-. N C1l f'-. iri en ~ C) elS N CO 0.. (J) a.. N <;. 0 a: w ~ <( I.L 0 ~ Z <( m ... .e 'ii .. 0 .. .c ::l U) >- ~ ';;)...J :J~ .:.l:W Ua ~W Ou. iiju. cO u::>- !::: o ..00 1/10 ...JO .:.l:~ J:O OC'? Q.CO elSO ~ <( o ~ ...... N ...... 59 ~ N Qj Cl C1l Q. .". N CD C> CO a... .. I/) .:.:: () CD .c o <( ~ o t- "C C f! C> ~ ...3: .!!! ...J ...J~ i3W CDC .cW OLL C;;LL .= 0 LL>- t- O ~ <( o M ;..:. N ;..:. t: o 0. e .!!! .c ... .= ~ () CD .c () ...ClO 1/)0 ...JO .:.::N .c- O~ 0.- C1l~ '"' ...... N I() ('f Qj en ca Q.. >- ~ .... fII..J ::i~ ':'::w go .cW Ou. <<au. cO ii:>- l- e:; ....co fII0 ...10 .:.::~ .cO OM Q.CO cao :!: <( o M t..:. ('f t..:. to N Qj 0) ro a.. ~ o .0 CI) "tl o U ~ Q) c c ca 0 m oS 61 COUNCIL MEETING DATE: August 5, 2008 ITEM #: ..-.-.--.-----.,-..-..-.----..~..-...-.----.--.-.-...-.-.--..------------.-.----.._____._.______.__._.._...__..__.__._.____...._____._.__m.__......_...___.______..__...__.____..._"'.______________._ CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: JUNE 2008 MONTHLY FINANCIAL REPORT POLICY QUESTION: Should the Council approve the June 2008 Monthly Financial Report? COMMITTEE: Finance, Economic Development & Regional Affairs Committee MEETING DATE: July 22, 2008 CATEGORY: [8J Consent 0 Ordinance o City Council Business 0 Resolution ~.! AFF REpORT B~.:_!~~_~ra~s, Financ~Qir~ctor_~_.._.__..... Attachments: · June 2008 Monthly Financial Report Options Considered: L Approve the June 2008 Monthly Financial Report as presented and forward to the August 5, 2008 Council Consent Agenda. 2. Deny approval of the June 2008 Monthly Financial Report and provide direction to staff o Public Hearing o Other DEPT: Finance -------.----.--.-----.------...--.----.-----------------.---..--------..----------- STAFF RECOMMENDATION: Staffrecommends approval of Option 1. CITY MANAGER APPROVAL: DIRECTOR APPROVAL: ~{ Committee ~L Council COMMITTEE RECOMMENDATION: Forward approval of the June 2008 Monthly Financial Report to the August5, 2008 City Council Consent Agenda. Mike Park, Chair Dini Duclos, Member Eric Faison, Member PROPOSED COUNCIL MOTION: HI move approval of the June 2008 Monthly Financial Report. " COUNCIL ACTION: o APPROVED o DENIED o TABLEDIDEFERREDINO ACTION o MOVED TO SECOND READING (ordinances only) REVISED - 0210612006 (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL BILL # 1sT reading Enactment reading ORDINANCE # RESOLUTION # 62 ~ CfTYOf ~ Federal Way June 2008 Monthly Financial Report GENERAL & STREET FUND OPERATIONS The overall operations of the combined General and Street Fund showed a positive result of$485K through June. Overall revenue total $21.1 M and is $429K or 2% below budget. The favorable variance is due to increase in Court Revenues ($246K) and General Recreation Fees ($87K). 2007 2008 V<I...al'lce GENERAL & STREET FUND AI'1l'lu<l1 Annu<ll YTD AI'1nu<l1 vtD YTD Filvonlble (Unf<lvol"llble) Summ<lryof l)ourc~ & US~li ~uQget Actu<l' Actu<l' 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 4,758,430 9,122,267 4,810,055 4,810,055 - 0.0% S<lles Tax 12.932,071 13,048,625 6,413,907 13,089,443 6.352,471 6.253,568 (98,903) -1.6% Criminal Justice Sales Tax 2,142,502 2,145,383 1.009,733 2.289,763 1.077,685 1,038.472 (39,214) .3.6% Intergovernmental 2,375,291 2,506,309 1,245,140 2,398,026 1,191,344 1,196,878 5,534 0.5% Leasehold Tax 2,026 7.254 1,088 2,026 304 2,668 2,364 778.2% Gambling Taxes 1,400,000 1,489,952 814,008 1,400,000 763.000 622,666 (140,335) -18.4% Court Revenue 966,535 1,217.114 541,580 998,825 509,723 755,598 245,876 48.2% Building Permits/Fees-CD 2.278,857 2,689,040 1,533,669 2.182,100 1.144.931 807,809 (337.122) -29.4% ROW Permits & Develop Svcs Fees-PW 475,719 499,392 240,533 483,399 223,647 257.940 34.293 15.3% Licenses 235,518 259,209 86,443 235,518 78,542 80.818 2,276 2.9"1. "ranchise 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 66,673 91,388 55,533 46,480 (9,053) -16.3% General Recreation Fees 599,310 619,448 288,374 600,915 279,746 366,285 86,539 30.9";" Public Safety 1,002.777 1,082.506 545,509 934,775 471,063 507,236 36,173 7.7% Admin/Cash Management Fees 582,399 571,011 285.505 605,695 302,847 296,604 (6,243) .2.1% Interest Earnings 741,023 671,880 342,795 741.D23 378,072 178,250 (199,823) .52.9% Mise/Other 225,583 269,494 126,595 240,750 113,093 131,484 18,391 16.3% Onooino Transfers In: Utility Tax-Celebration Park 255,800 255,800 255,800 266,000 266.000 266,000 - 0.0"1. Utility Tax.Arts CommJRW&B 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"1. 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 1,238,728 " 1,761,946 400,000 400.000 . 0.0% Utility Tax. Prop 1 SafeCity M&O - - - 37,500 37,500 37,500 - 0.0% Utility Tax-Prop 1 Voter Package 1,837,500 1,837,500 1.837,500 2,548,000 t ,146,203 1,146,203 - 0.0% Utility Tax-New Parks M&O 59,000 59,000 59,000 62,000 62,000 62,000 . 0.0% ~;;;~~~!!~~!~ ;};220o;. OPERATING EXPENDITURES City Council 371,771 365.625 238.794 381,122 248,915 252,390 (3,475) -1.4% City Manager 1,195.283 1,136,366 497,263 1,429,870 625,697 643,476 (17.779) .2.8% Municipal Court-Operations 1,371.483 1,280,865 591,013 1,481,211 683,456 701,063 (17,607) -2.6% Economic Development 373,730 215,861 115,425 345,201 184,586 107,108 77,478 42.0% Management Services 2,287,795 2,080,526 1,060,341 2,438,142 1,242.600 1,165,694 76,906 6.2% Civil/Criminal Legal Services 1,441,869 1,307,586 626,979 1.604,243 769.224 767,337 1,887 0.2% Comm. Development Svcs 4,002,827 3,702,684 1.709.642 4.399,579 2,031,420 1,781,426 249,995 12.3% Jail Services 1,668, 128 1,701,176 531,246 1,974,022 616,451 594,417 22.033 3.6% Police Services 21,229,194 20,449.932 9,384,021 22,240,762 10,205,793 10,539,523 (333.731) .3.3% Parks and Recreation 4,020,390 3.782,410 1,587,459 4,105,782 1,723,177 1,850,831 (127.654) -7.4% Public Works 4,855.671 4,136.883 1,811,934 5,307,315 2,324,577 2,251,185 73.392 3.2% ot<ll Openltlng Expenditures 42,818,141 40,159,913 18,154,116 45,707,248 20,655,896 20,654,451 1,445 0.0% Openltlng Revenues overl(under) Openlting Expenditures (2,223,570) 1,695,509 5,301,939 (3,159,014) 912,047 484,921 (427,1261 -46.8% OTHER FINANCING SOURCES One.Time Transfers In 358,115 346,151 127,740 120,795 26,151 26,151 . 0.0% Grants & Other 161,751 203.506 49,109 79.171 42,301 42,301 0.0% Tot<ll Other Financing Sources 519,866 549,657 176,849 199,966 68,453 68,453 . 0.0% PTHER FINANCING USES City Manager Contingency . 3,036.935 . . n/a n/ One-Time Transfers 1,496,000 1,330,000 1,030,000 . - - n/a n/. Other - - . n/a nI. Total Other Financing Uses 1,496,000 1,330,000 1,030,000 3,036,935 . n/a n/a ot<ll Ending Fund Balance $ 3,889,243 $ 8,004,113 $ 11,537,735 $ 1,649,783 $ 8,989,560 $ 8,562,434 n/a nl 63 DESIGNATED OPERATING FUNDS Through June, designated operating funds revenue total $14.5M and is $l.3M above the year to date budget of$13.lM with utility taxes being the major contributor. Expenditures of$ll.5M is $12K under the year-to-date budget estimate of$II.5M. . 2007 2008 VarianCe DESIGNATED OPERATING FUNDS Annual Annual YTD Annual YTD YTD Favorable (Unfavorable) Summary of Sources & Uses Budg~ Actual Actual Budget Budget Actual $ % Begin Balance-Oesignated Funds $ 9.705.215 $ 9,705,215 $ 9.705.215 $ 5.798,400 $ 7.272,399 $ 7.272.399 $ . 0.0% OPERATING REVENUES Intergovernmental 559,023 561.232 268,446 559,023 267,390 257.324 (10,066) -3.8OA Utility Taxes 11.038,287 12.796.461 6.395,715 11.782,569 6.016,971 7,458.684 1.441.713 24.0% HotellMotel Lodging Tax 175,100 191,691 82.465 180,353 78,071 86.121 8,049 10.3% Real Estate Excise Tax 4,800,000 4,898.537 3.051,281 3.300,000 1.740,758 1.674.166 (66,592) -3.8% FW Community Center-Transition 33,820 17.440 50.201 . - . . nIl FW Community Center-Qperations 1,248,117 906.1.26 278.405 1.663.407 831,704 716.894 (114.809) .13.8OA Dumas Bay Centre 623.529 518,380 266,100 634.711 325,816 216,197 (109,619) .33.6% Knutzen Family Theatre 77,745 132,017 63.562 77.955 37.533 64.839 27,306 72.8% SWM Fees 3,710,104 3.650.974 2,004,576 3,604,132 1.864,152 1.864.152 - 0.0% Refuse Collection Fees 242.850 259,014 151,091 242,850 141.662 153.328 11.665 8.2% Interest Earnings 249,970 524,350 289.061 159,970 88,188 175,282 87.095 98.8OA Miscellaneous/Other 4.000 25,002 25.000 4.000 . . - nla nooino Transfers In' Utility T ax.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/. 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 492,923 492.923 492,923 528,348 264.174 264,174 . 0.0% TO\aIOi>eratlrigReir""ues 2Mi.$,'l46 27;8'''';124 1i1;!I:'l4;~23; 25,610,211 13;185;67l1 . 14,46C1;'(21 . ... 1,274;].012 0:% OPERATING EXPENDITURES ity Over1ay Program 2.862.975 2.494,146 1.503.382 2.412.849 1.643.496 1,843.496 . 0.0% Umity Tax.Admin/Cash Mgmt Fees 57,449 57,449 28,724 59,747 29,873 29.874 (0) 0.0% Solid Waste 364,890 336,588 165,328 375,060 184.225 174.259 9,986 5.4% Hotel/Motel Lodging Tax 351.164 194,607 92.455 385,510 183.150 113,836 69,314 37.8% FW Community Center Transition/Start Up 113.549 322,263 363,015 - . . - n/a FW Community Center.Operations 1,661.289 1.331,910 372,772 1.901.761 950.881 948.939 1.941 0.2% Debt Service 11,255,538 10.929,927 8.221.194 1,201,830 26.837 26,837 - 0.0% Surface Water Management 3.060,245 3,037.900 1,351.819 3.203.195 1.425.372 1.510,603 (85.231) -6.0% Dumas Bay Centre 601.363 561,848 273,861 643,413 313,389 259,176 54.213 17.3% Knutzen Family Theatre 235.238 236,162 94.714 210,939 84 .598 122,767 (38.169) -45.1% Onooino Transfers Out. Utility Tax.Celebration Pari< 255.800 255.800 255.800 266,000 286,000 286,000 - 0.0% Utility T ax,C"I"munity Cenler Oper. 492.923 492.9?3 492.923 528,348 264.174 264.174 - 0.0% Utility Tax-Arts CommlRW&B Festival 106.000 106.000 106.000 108,000 106.000 108,000 . 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 T ax.New Street Ughts 112.091 112.091 112.091 118.014 116,014 116,014 - 0.0% Utility Tax.Knutzen Family Theatre 125,495 125.495 125.495 129,260 129.260 129,260 . 0.0% Utilily Tax.Arterial Streets Overlay 1.400,000 1,400.000 1,400.000 1,400,000 1.400,000 1.400,000 - O.OOA Utility Tax.Camp Kilworth M&O 106,000 106,000 106.000 110,000 110.000 110,000 . 0.0% Utility T ax.Debt Service 1.530.300 1,530.300 - . n/. Utility Tax.Transportation CIP 1.400,000 1,400.000 1.000.000 1.400.000 1.400,000 1,400,000 . O.OOA Utility T ax-General Fund Operations 1,238.728 1.236,728 1.238.728 1,761.946 400,000 400,000 . 0.0% Utility Tax.Prop 1 Voter Package Prog 1.837,500 1.837.500 1.837.500 2.548.000 1.146,203 1.146.203 - 0.0% Utility Tax.Prop 1 SalaCity 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 Parl<s M&O 59.000 59.000 59.000 62,000 62.000 62,000 - 0.0% TQtal OperatlrlgExpe"dltures . 31;148;996 30,048;"95 2M 64;1177 20,82.,296 11,530.565 11,518,53 f. 12,034 0.1% IOperating Revenues over/(under) Operating Expenditures (5,022,5491 (2,200,970) (5,220,555) 4,785,915 1,655,114 2,941,891 1,286,776 77.7% joTHER FINANCING SOURCES One. Time Transfers In 5,733,805 5.733,805 4,583,805 . - . . nla Grants/Mitigation/Other 258.061 223.265 59.717 222.000 98,015 98,015 . O.OOA Total Othe.r FJnanclng.Sources 5,991,866 5,957,070 .,6.3,522 222,000 98,015 98,015. - 0."% joTHER FINANCING USES One- rone Transfers Out/Other 6,188.913 6,188,911 3,622,703 4.964.300 3,370.896 3.370,896 . 0.0% Total Other FlrianclngUses 6,188,913 6,188,911 3,622,703 4,964,300 3,370,896 3,370,896 - 0.0"110 ENDING FUND BALANCE Arterial Street 15.105 388,954 1,052.879 15.106 . 300,063 nla n/. Utility Tax 1.711.179 3.480.873 104.159 2,359.279 - 3.527,856 nla n/. Solid Waste & Recyding 115,936 138,508 101,470 144.298 118,902 nla nI, Hotel/Motel Lodging Tax 0 198,155 (19.555) . . 172,817 nla nla FW Community Center 239.101 21,395 359,178 313.524 . 61,829 nla nI. Paths & Trails 34 .923 35,369 30,184 44.892 - 39,747 nla nla Debt Service Fund 1,462,083 2.089.658 2,718.577 2,787,255 . 3.230.921 nla nl, Surface Water Management 903.568 928.050 890,302 187,807 . (91,914) nla nl, Dumas Bay Centre Operations 30,000 (35,834) 273 (31,907) . (78,613) nla nl Knutzen Famity Theatre (26.277) 27,071 125.769 21,760 . 98.402 nla nl Total Ending Fund Balance $ 4,485,619 $ 7,272,399 $ 5,363,235 $ 5,642,015 $ - $ 7,380,011 nla nla 64 Real Estate Excise Tax Compared to 2007, collections are down $1.4M or 45%. June's receipt of $13IK is $390K below June 2007's activity and includes a total of 151 real estate transactions, of which 71 were tax exempt and of the remaining 80, 0 were mobile home sales. The unfavorable variance is due to total Real Estate sales through June 2007 totaled $592M and through June 2008 $343M, a total decrease of$249M or 42%. The largest transactions in the current month consist of the sales of Residential Property located on 6th Ave SW ($2.5M) and Eastwind Motel on 330th ($2~6M). Sales Tax REAL ESTA TI"EXClSE TAX REVENUES Yur'l1lt.'ethru JUlie 2007 2008 2008 C/l"tigef@"'/-Q(17 ~ll,titir~lv~QlJi:lg!J .. Atl1I1'" Adir.' Budg<< AdU'" $W,. %V.r $ V.,. %.VIl,. Jan $ 693,595 $ 227,769 $ 590,4n $ (103,118) .14.9% $ 362,708 159.2% Feb 219,522 227,410 511,905 292.383 1332% 284.495 125.1% Mar 626.241 302,216 162,401 (463.839) .74.1% (139,815) -46.3% All' 506.747 344,145 144.395 (362,352) .71.5% (199,750) .56.0% May 484,527 ~ 295,282 134,252 (350.275) -72.3% (161.030) -54.5% Jun 520 343.936 130,736 (389.914) -74.9% (213.200) -62.0% JuI 407, 271,423 Aug 293,865 251.839 - - . - Sep 307,526 356,746 - - - . . Oct 353,373 208,271 - - . - Nllv 302,465 265,674 - - . - - Dee 182,946 205,487 - - . YTD Tl1tal $3,061,281 $1,740,768 $1,674,166 $(l,m,1161 -46.1% $ (66,&92) .3.8% Annual Tl1ul $4,898,637 $3,300,000 Compared to 2007, Sales tax revenues are down $160K or 3%. June sales tax collection total $883M, which is $124K or 12% below 2007's June sales tax of$1.0M, 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 below by $61 K or 2% below year-to-date 2007. The decrease is due to decreases in Building Materials/Garden ($44K), Motor Vehicle and Parts Dealer ($30K), Services industry accounts for 20% of the total sales tax collections. On year-to-date basis, services sales tax is up by $37K or 3% compared to 2007. The increase in the service industry is due to the increase in food services/drinking places ($64K) offset by a decrease in ProfessionaVScientific Tech ($25K). Jan Feb Mlr Api" Mly ./un .l.d Aug Sep 0:1 flbv IRe YTDTotal $ 994,523 1,375,199 946,695 959,014 1,130,690 1,007,794 1,026,816 1,197,479 1,108,619 1,059,203 1,166,531 1,076,061 $ 6,413,907 Annual Total $13,048,625 $13,089,443 3,178 (9,297) (20,634) (1,889) 53,330 (123,591) $ 6,253,568 (160,332) .2.5% $ (98,903) .1.6 Construction and contracting activity, which accounts for 11% of sales tax collections, is down $256K or 27% from 2007's activity. Sales tax received year-to-date on major City projects total $13K or 1% of total construction and contracting activity. Wholesale trade accounts for 5% of the total sales tax collections. Year-to-date wholesaling activity is up $87K or 36% above 2007 year-to-date. The increase is due to increase in Durable goods of $80K and Nondurable goods of $7K. Information accounts for 4% of the total sales tax collections. Year-to-date information activity is up by $13K or 5% compared to 2007. Motion PictureIRecord ($IOK) and Telecommunications ($23K) showed a total increase of$33K offset by a decrease in Internet Service Providers $27K. Manufacturing activity accounts for 2% of the total sales tax collections is up by $21K or 18% when compare to 2007 year-to-date. Majority of the increase is due to increase in activity of wood product manufacturing ($15K). Government activity shows a decrease of$26K or 43% compared to 2007's activity due to nonclassifiable establishment ($30K). 65 Retai Trade Servi:es Construct/Contract Wholesaling TransplUtilily nformation Manufacturing Government FmIk1s/Real Estate Other YTD Total Actu.al $ 3,336,095 $ (60,797) $ 1,249,770 $ 37,228 $ 695,005 $ (255,807) $ 326,003 $ 86,818 $ 10,639 $ 4,142 $ 263,844 $ 13,287 $ 138,437 $ 21,012 $ 34,497 $ (25,521) $ 192,399 $ 19,519 $ 6,879 $ (210) $ 6,253,568 $ (160,339) -1.8% 3.1% .26.9% 36.3% 63.7% 5.3% 17.9% -42.5% 11.3% .3.0% .2.5 $ 3,396,892 1,212,543 950,812 239,185 6,497 250,557 117,426 60,018 172,880 7,088 $ 6,413,907 Sales Tax bv Area The City's largest retail center, South 348th, which generates 12% of the City's sales tax, is showing a decrease of $43K or 6% compared to the year 2007. The decrease is due to decrease in Retail Building Materials ($37K) and Retail Apparel/ Merchandise ($3K). SALES TAX COM PARISON by AREA Year.to-date thru JUffe Chg frol11 2007 Groill' 2007 2008 $ % Total Sales Tax $6,413,907 $6,253,568 ($160,339) .2.5% S 348t.hl{e~llJll\!~k $772>078 $729,224 ($42.8541 '5.6% % chg from prev yr 4.8% -5.6% na na Percenlage of total 12.0% 11. 7% -0.4% .3. 13% th41CClmm!!Os 591..!!~ 57$,879 ($15.95$1 .2.70% % chg from prev yr 7.1% .2.7% na na Percentage oftotat 9.2% 9.2% 0.0% -0.20% "",aj~(~\it~~~!~s 1~9;~!!". 1~1.!!~!! 1$31,5981 .1l!,85~ % chg from prev yr . .1.3% .18.9% na na Percentage of total 3. 1% 2.6% .0.5% -16.77% S31~1'l...t!l}S'.~1.5th . '3l!1;:i.5~; ~5,O4l! $53,682 16.27% % chg from prev yr 32.1% 16.3% na na Percentage of total 6. 1% 7.3% 1.2% 19.25% E'~vil!~n;c;jM..t.' 2!!!!;1:~. .n}im n2.8~01 "O:~~ % chg from prev yr 9.3% -1'.0% na na Percentage of total 4.5% 4.6% O. 1% 1.56% !'l~I'..I~;~""9t..l~"}'" 't;~2l 'to;!!!!. 110;l!1~1 -fU~% % chg from prev yr 15.3% -13.3% na na Percentage of total 1.3% 1. 1% -0. 1% -1 1.03% FW~(C!\\~!i!g~ ";1'oa,1il9: -... .t2~i'l37] 21,088 19;41% % chg from pre v yr na 19.41% na na Percentage of total na 2. 1% na na The Commons year to date activity show a decrease of $16K or 3% compared to 2007. The decrease from 2007 consists of a decrease in General Retail Merchandise ($22K). Major Auto Sale's collection total $162K and is $38K or 19% below 2007. S 312th to S316th tax collections are up by $64K or 16% compared to the prior year. The increase from 2007 is due General Retail Merchandise increase of $69K offset by a decrease in Retail Automotive/Gas of$3K. Pavilion Center tax collections shows a decrease of $3K or less than 1 % compared to the prior year. Federal Way Crossings tax collection IS up by $21K or 19% compared to the prior year. Gambling Tax Gambling tax collection through June is $623K. In comparison to 2007 year-to-date collection, 2008's tax collection is $191K or 24% 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 $IIK in an amended return from 2006) from a major payer for 2006 revenues. In addition, the remaining negative variance is due to timing of May receipts in 2008 compared to 2007 from a major payer. If these were taken into consideration, total variance from 2007 would be a negative variance of$9K or less than 1%. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dee YTO Total Annual Total 171,219 94,611 100,383 161,324 85,311 150,151 113,342 105,484 103,920 138,761 99,998 75,495 $ 763,000 $ 622,666 $ {191,3431 $ 1,400,000 vs Budget %V.ar -38.9% 50.2% .91.5% 32.3% - 71.3% -13.8% -23.5% $ {140,3351 -18.4% HoteVMotel Lodging Tax HoteVMotel lodging tax collections through June total $86K. Compared to 2007, the lodging tax is $4K or 4% above the same period. .... . HOTEUMQTELLOlJ.GINGTAX'REVENUES V:.~6t<l"l(a!~ tilt... Ju". .... 2007 2008 200S Ch..ngef,.om2007 2008 Adull' v.B"!lg~ M.onth Actual BUclget AdUlt' IV., "Var I Var %Vu Jan $ 13.411 $ 11,621 $ 14,985 $ 1,574 11.7% $ 3.364 28.9% Feb 14.883 13,813 14,907 24 0.2% 1.094 7.9% Mar 12.748 11,937 11,171 (1,577) .12.4% (766) .6.4% Apr 12,545 10,613 14.266 1,722 13.7% 3.653 34.4% May 15,638 17 .273 17.107 1.470 9.4% (165) -1.0% Jun 13,241 12.814 13.684 443 3.3% 870 6.8% Jut 10.427 13,287 AU9 24,090 18,155 . Sep 20.376 15,802 . Oct 22.461 23,433 Nov 17.735 17,015 . Dec 14.136 14,591 YTO Total I 82,465 $ 78,071 $ 86,120 $ 3,655 404% $ 8,049 10.3% Annual Total t' "191,691 $ 180,354 Utility Tax Utility taxes received through June total $7.5M and is above 2007 year to date collections by $l.lM or 17%. Compared to year-to-date 2007, Electricity up $521 K or 24%, Gas is down $1 K or less than 1%, Cable is up by $41 K or 6%, Phone is up $109K or 22%, and Cellular phone is up $374K or 33%. UTILITY TAXI;S Year-to.datefflru June. 2007 2008 2008 ChanSitfroin20!l7 2~Aetuar vsSuilse: M.onth Actual S.,"'9llf Actual SVai '.Gila" Sitar '.GV.r Jan $ 845.364 $ 939.795 $ 1,205,190 $ 359,826 42.6% $ 265,396 28.2% Feb 1,129,439 932.623 1,263,500 134,061 11.9% 330,877 35.5% Mar 1.173,418 1,236.265 1,472,457 299,038 25.5% 236,192 19.1% Apr 1,233,143 1,096,194 1.267,412 34.270 2.8% 171.218 15.6% May 1,063,946 1.024,759 1,107.223 43,278 4.1% 82.464 8.0% Jun 950.406 787,336 1,142,902 192,496 20.3% 355,566 452% Jul 940,312 954,911 . . - - . Aug 914,481 828,254 - - - Sep 994,042 713,011 . . - . Oct 983,515 984,431 . - - . No. 1,006,830 989,907 - - - - Dec 1.561,566 1,295,082 - - YTOTotal $ 6,395,715 $ 6,016,971 $ 7,458,&84 $ 1,062,968 16.6% $1,441,712 24.0% Annual Total $12,796,461 $11,782,569 unuTY TAXES '(~('(9'-",a(ethr., JUfle . AWU:f..... 2008 QtiaiJ!litlr(:!iii..2~ . Aptual .. $Var '. .... ~l(ar 8ectric $ 2,150.997 $ 2.672,226 $ 521,229 24.2% Gas 1,444,705 1,443.818 (887) -0.1% Soid Waste 364,369 392.168 27,798 7.6% Cable 652,389 693.568 41,179 6.3% Rlone 494,871 604,030 109,160 22.1% Celular 1,145,446 1.519,771 374,326 32.7% Pager 232 117 (115) -49.5% SIII.M 147,925 142.116 (5,809) -3.9% Tax Rebate (5,219) (9,131) (3.912) 75.0% YTOTotal $ 6,395,715 $ 7,458,684 $ 1,062,969 16.6% Update on Proposition I 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 I funding. In 2007, there is $0 for 1.75% for January and February due to Prop 1 collection of 1.75% was not implemented until March of2007. Year-to-date Prop 1 tax collections total of$1.7M or approximately 65% of the total budget of$2.6M. Year-to-date prop 1 expenditures total $1.1M or 41% of the $2.8M budget. October IIklverrber DecentJer YlO Total Annual Total Annual Budget ;.;t\'"i-l'~ - $ 845,364 1,129,439 228,441 1.173,418 ..~..~ 276,447 1,233,143 238,931 1,063,946 214,641 950,406 ""-"21i"370'-940.312 206,496 914,481 "'~461- 994,042 ---. ---.-- --~ 222.126' ---- 983.515 -_..-.- -..-----.-----.-.- 227,349 1.006.830 352,592 1,561,566 $ 958,459 $ 6.395.715 $ 2,403,852 $ 12.796,461 $ 2.022,500 11,036,287 $ 5,774,466 $ 1,684,219 $ 7,458,684 $ $ 5,774,466 $ 1.684.219 $ 7,458.684 $ 9,197,069 $ 2.585,500 $ 11.782,569 337,208 nla nla 6.2% $ 725.760 nla nla nla nla 43.1% nla nla llt.i!jIO{iflqq;tiEx1fe_f~!~t~~~'i~';1;~~F~m!Jliiffi~_Ri~W4:"$jfe'ilt} n _. >"_.v ".-".-". "-"-',"'" "."" ,,.,-n. , _"''-'''''',~''''A LA.rblic Safety '.nProvementPositions & Costs: . , , I i Police Services (includes sworn postions, records clerk, and ind~ect $ 1,913,281 $ 833,004 43.5%1 I hformation Technology support costs) ! i Court Services (includes Judge, Court Oerk, Prosecutor, public defender 339,563 165,708 48.8%1 , contrac and indirect hformation Techno su ort ! ! " ..c., ., ., ',"'.'.,'" ~y.".~p.; ) ........;.: ..1 .... ,. . '. ;.,.J....., ...' 1'lit!lef.l~fi9~~t!!;~Y~!l!'plq,igr,!l!!t'llg~~'9gS:~:l:l9~t~; .' ~1~5~!t44, . . .,'. ;;\1~~J('tOC1!,,;~4,~"4 ICommun~y Safety Program Costs: .__._1 ----1- I I , Code Enforcement Officer r 90,551 I 43,480 i 48.0% I r- Code Enforcement Civl Attorney r-- 65,059 1- 34,297 T-S2.7% 1 Park Maintenance (vandatism,graffiti repair/removal, and park securityTI' 97,838 47,706 I Tlit~I.Cllmjjjtq~ltY:~~J~tYilii1]p~9*~m~lit;~l'jigr..~m'Pji~t~ I hdirect Support. Human Resources Analyst .50 FTE , SafeOty M&O SafeCily Startup 67 Life to date Prop I Utility tax Collections total $4.1 M and life-to-date expenditures total $2.9M resulting in a balance of $1.2M earmarked for Prop I. State Shared Revenue Year-to-date distribution of$2.7M is below 2007's activity by $38K or less than 1%. The unfavorable variance is due to the variance in Liquor Profit Tax ($50K) and Fuel Tax ($42K) with a total negative variance of $91 K with offsetting positive variance in Liquor Excise Tax ($16K) and Local Criminal Justice Sales Tax ($29K) with a total positive variance of $44K. STATESftAFUiORSlENUES y~ rt"date:tflrqJune ~QQ7 200$ CI!;mge .frf}(P~(if)7 Re:wHlue Actual Actual $ " Liquor A-ofits Tax $ 346,942 $ 297,400 $ (49,542) -8.9% Liquor Excise Tax 194,913 210,557 15,644 4.2% Q-im Jus t - POpulation 40,779 42,552 1,772 2.2% Q-ininal Just High Q-irre 90,199 96,617 6,418 7.1% Local Q-im Just Sales Tax 1.009.733 1,038,472 28.739 1.5% FuelTax* 1,002,308 960,780 (41,528) c2.3% 001 - Cities 7,049 7,917 868 6.1% YTO Total $ 2,691,923 $ 2,654,295 $ (37,629) -0.8% .. Fuel tax is included in bo th general/street. designated 0 perating funds. and transpo rtatio n CtP . Permit Activity Year-to-date building permit activity is below 2007's year-to-date activity by $726K or 47%. Compared to year-to-date budget estimates, permit activity is down $337K or 29%. The negative variance is partially due to an agreement with Sound Transit to waive permit fees ($170K), unclaimed building permits that have been approved and are ready to be picked up by builders ($60K) and the City is no longer charging a new plan check fee under basic plan review for multifamily building permits ($3 OK). The remaining variance is due to the softening housing markets cpmpared to 2007. Community Development's positive expenditure variance of $250K 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. Jan Feb Mar Apr May Jun Jul Aug Sap Oct Nav Dee YTO Total Annual Total 2007d ~<:ftt~1; 186,857 284,798 269,618 303,057 226,214 263,124 179,257 157,371 102,168 215,739 304,823 196,014 1,533,669 2,689,040 123,482 171,455 181,944 236,514 212.521 219,014 169,520 207,467 151,155 181,743 170,542 156,743 1,144,931 2,182,100 0/0 -15.8% -10.4% -43.4% -33.5% .26.4% -38.9% 807,809 (725,8591 na -47.3% na (337,1221 na -29.4% na Right-of-way permits and development services fees are up $17K or 7% when compared to 2007's year-to-date activity. Public Works Operations year-to-date expenditures total $2.3M and is $73K or 3% below budget estimates. The favorable variance is mainly due to under-spending of one-time programs in 2008 based on 2007 spending patterns. ROW f>ERMITS & .OEVEI..OPMENT $EIlVlC:~$FEE$ Yl!<lr'b).OOlte Throug!t JUnt! 2007 200$ 2008 C!tang41from2001 200$A!:fual. vs.Budg41t Actual Budgl!t Actual $ % $ % Jan 33,025 31,646 46,426 13,401 40.6% 14,780 46.7% Feb 50,655 40,330 33.886 (16,769) -33.1% (6,445) -16.0% Mar 21,834 39,250 27,416 5,583 25.6% (11,834) -30.1% Apr 59,623 32,313 85.319 25.696 43.1% 53,005 164.0% May 39.068 38,736 30,690 (8,378) -21.4% (8,046) -20.8% Jun 36,329 41,372 34,204 (2,125) .5.8% (7,168) -17.3% Jul 64,193 37,592 - . - . - Aug 26,372 46,553 . - - - - Sep 3,082 34.875 - - - - - Oct 72,179 35,389 - . - - - Nav 8,370 37,032 . - - - - Dec 84,664 68.311 - - - - - YTO Total 240,533 223,647 257,940 17,407 7.2% 34,293 15.3% Annual Total 499,392 483,399 na na 68 Police Department Expenditures through June total $1O.5M and is $334K or 3% above the year to date budget of $lO.2M. The unfavorable variance is due to the negative variance in overtime in 2008 when compared to overtime patterns in 2007. However, further analysis shows that the Police Department has spent 47% of their 2008 budget and we anticipate that the Police Department will be within their budget at year-end. Through June, City overtime is 26% or $97K above last year. There is a 29% decrease in overtime for contracted services and traffic school. When the decrease from the billable overtime is included, the' total overtime increased $79K or 18%. June's overtime reflects a significant decrease when compared to the prior month's overtime even though the Police Department investigated several high-profile crimes and provided additional police staffmg at City parks using overtime officers. The primary reason for the reduction in overtime is a result of the Patrol Section nearing full staffmg. 27 Student Officers completed their training in June and were assigned to patrol squads. This increase in staffing allowed other officers to take vacations, training, and other necessary absences from patrol without causing overtime. PSOVedlil1ebytyjle :......:.:... through June .':: Type .':. 2007 2008 $ : % Training $ 19,681 $ 34,180 $ 14,500 74% Court 15,445 19,952 4,507 29% Field Oper 268,841 355,016 86,175 32% Other 67,264 58,752 (8,512) -13% Cfty Portion 371,231 467,900 96,669 26% ContracUGrant 36,312 25,567 (10,745) -30% Traffic School 26,574 19,186 (7,388) -28% Homeland See - - n1a Billable 62,886 44,753 (18,133) -29% Grand Total $ 434,117 $ 512,654 $ 78,536 18% ~'QV~"~'!I1eBY""llnth . . 2007 20Q"8 '2()()ll. ~ang~frQrn2()M: '2,ooaAc(lil;i1 1/li' !3U~get ActUal I3Mg~ Agt@1 $ ..: % $' ..% Jan $ 68.853 $ 33,888 $ 119,252 $ 50.399 73% $ 85.363 251.9% Feb $ 66,743 $ 32,850 64,247 (2,496) -4% 31,397 95.6% Mar $ 72,669 $ 35,767 100,016 27,346 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 65,703 (18,864) -22% 24.080 57.9% 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 - - - - Dee $ 83,397 $ 41.047 - . - - - Total $ 434,117 $ 213,667 $ 512,654 $ 78,536 18% $ 298,987 139.9% Annual Total $ 960,261 $ 472,627 Jail Services Jail Services through June is $594K and is below the year-to-date budget estimate of $616K by $22K. Through June, Enumclaw, Fife, and Medical are down while King County and Yakima are up compared to 2007. The positive variance is due to savings found in Enumclaw, Fife, and Medical when compared to 2007 spending patterns with offsetting of the overage with King County Jail Services. Court Municipal Court year-to-date expenditures of $701K is $18K or 3% above estimates. The unfavorable variance is due to increase in Professional Services for ProTem services ($25K) due to tenninated employees in early 2008 and interpreter services ($14K). However, savings in SalarieslBenefits ($20K) offset these based on 2007 spending patterns. Excluding probation through June revenue is up $214K or 44% compared to year-to-date 2007. The revenue increase 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. COURTREIlEflUE Thr~ug~Jul1e 2007 2008 2008 Change ',oni2007 2008 Actual vs Budget Month Act.ual Budget Actual $I(a, "Var $Va, " \fa, January $ 74,292 $ 64,393 $ 116,642 $ 42,350 57.0% $ 52,249 81.1% February 71,310 61,300 120,754 49,445 69.3% 59,454 97.0% March 92,354 89,397 113,512 21,158 22.9% 24.116 27.0% Apr~ 77,727 61,510 105,654 27,927 35.9% 44,144 71.8% May 79,456 71,523 144,648 65,193 82.0% 73,125 102.2% June 96,805 89.729 104,996 8,191 8.5% 15,267 17.0% July 90,014 72.981 - A ugus t 97,385 72.705 - September 101,982 69.407 - - October 122,605 70,041 . . November 120,895 92,970 . - - . December 90,603 74,869 - - Subtotal $ 491,943 $ 437,851 $ 706,206 $ 214,263 .3.6% 268,355 61.3% Probation Svcs 49.627 71,872 49,394 (233) -0.5% (22,478) .31.3% YTD Total $ 5.1,580 $ 509,723 $ 755,598 $ 214,018 39.5% 245,876 48.2% Annual Total $1,217,114 $998,825 na na na Q41a COURT REVENUE By Category ThrollgI1J@", . .. 2007 20Q8 CIJ~'1J1~Jr9m. 2007 Actual Actual $Vai" %V",. Civil Penalties $ 6,479 $ 10,183 $ 3,704 57.2% Traffic & Non-Parking 303,231 486,936 183,705 60.6% Parking Infractions 21,469 39.823 18,354 85.5% DUI & Other Misd 50,313 30,938 (19,375) -38.5% Crimnal Traffic Misd 25.391 2,112 (23,279) -91.7% Crimnal Costs 13,294 44,712 31,418 236.3% Interest I Other I Mise 17,461 22,368 4,907 28.1% Crimnal Conv Fees 11,707 12,305 597 5.1% Shared Court Costs 12,126 24,608 12,482 102.9% Services & Charges 30,472 32,221 1.749 5.7% Subtotal $ 491,943 $ 706,206 $ 214,263 43.6% Probation Services 49,627 49,394 (233) -0.5% YTD Total $ 541,580 $ 755,598 $ 214,018 39.5% Traffic and non-parking fines total $487K and is $\84K or 6\ % above year-to-date 2007. Parking infractions total $40K and is $18K or 86% above year-to-date 2007. DUI and other misdemeanors total $31K and is $19K or 39% below year-to-date 2007. Criminal costs total $45K and is $3\K or 237% above year-to-date 2007. Criminal Conviction Fees total $12K and is above year-to-date 2007 by less than $1 K. Parks & Recreation Overall parks operations expenditures through June total $1. 9M, which is $128K or 7% above the year-to-date budget of $1.7M. The increase in expenditure~ is due to an increase in SalarylBenefits of$\53K 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 $333K or 33.6% of the total annual budget of$993K not including indirect costs. Including indirect administration costs, recreation expenditures total $507K and are 38.5% of the total annual budget of $1.32M. Recreation fees total $360K and are 60.6% of the total annual budget of $595K. Recreation fees have recovered 108.1 % of direct program costs and is 48.2% above the annual budgeted recovery ratio of 59.9%. General Recreation showed an increase of $57K in favorable variance compared to May's Monthly Financial Report due to the Community Center's Spring and Summer Camps that started in Spring of 2008. Considering indirect administration costs, the recovery ratio is reduced to 71.1 % or 25.9% 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, C!JLlU~LSERVlCES,CQMMUNITY CENTER.ANQ.Dgr.llAs~A't'qE!lII"t~g~ER"O~MANCE " ..... .. Y!!!!rf9,p,#!l T"r9'fg"JYiJ.!l~qq(l', .... ,,'. .... ...; Bu!tfii!f' '. Actii~1 .. .1.; .. R~p~1l.!lfY \i-!t("~P!l ...... .;c {,;,.UL R!lC9\1",l)t; ;.:.L".i,Ji."lIif ... Rf>Y(1(lC/!l t;J(Pfmi:f. $uJJSII:ty Ratio .$y4!i!t:f.y i@tl~ ..$lJ.i!~ii:f.y. . GENERAL RECREATION Steel Lake Aquatics 2,000 20,360 18,360 9.8% - 545 - nla nla Arts & Special Events 93,000 284,900 191.900 32.6% 93,859 93,445 (415) 100.4% 192.315 Youth Athletics 42,450 178,612 136.162 23.8% 15,140 28,266 13,126 53.6% 123,036 Adult Athletics 203,875 143,070 (60,805) 142.5% 83,837 45,344 (38,493) 184.9% (22,312) Community Recreation 124,000 147,313 23,313 84.2% 124,486 78,755 (45,732) 158.1% 69,045 Recr!lation Inc 48,850 63,966 15,116 76.4% 30,691 38,758 8,067 79.2% 7.049 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% 3,950 9,363 5,413 nla 14,637 Senior Services 58,740 1tl,227 52.487 52.8% 8.499 38,771 30,272 21.9% 22,215 Subtotal $ 594,915 $ 992,797 $ 397,882 59.9% $ 360,463 $ 333,304 $ (27,159) 108.1% $ 425,041 Administration . 322,914 322,914 nfa - 173.560 173,560 nla 149,354 TOTAL GENERAL RECREATION $ 594,915 $ 1,315,711 $ 720,796 45.2% $ 360,463 $ 506,864 $146,401 71.1% $574,395 TOTAL FW COMMUNITY CENTER $ 1,663,407 $ 1,901,761 $ 238,354 87.5% $ 716,894 $ 948,939 $ 232,045 75.5% $6,309 DUMAS BAY CENTRE Dumas Bay Centre 634,711 643,413 8,702' .98.6% 216,197 259,176 42,979 83.4% (34,277) Knutzen Family Theatre 77,955 210,939 132,984- 37.0% 64,839 122,767 57,929 52.8% 75,055 TOTAL DUMAS BAY CENTRE $ 712,666 $ 854,352 $ 141,686 83.4% $ 281,036 $ 381,944 $ 100,908 73.6% $40,778 Arts Commission - 4,250 4,250 nla 3,430 806 (2,624) 425.6% 6,874 GRAND TOTAL $ 2,970,988 , $ 4,076,074 , $ 1,105,086 I 72.9%. $ 1,361,823 I $ 1,838,553 I $ 476,730 I 74.1%1 $ 628,356 I . The SUbsidy for Dumas Bay Centre should be $0; however Dumas Bay Centre revenue was underbudgeted by $8,700. - The subsidy far Knutzen Family Theatre should be $129.260 (amount of Utility Transfer to Knutzen). KFT undetbudgeted revenue by $3,725. Dumas Bay Centre Dumas Bay Centre operating revenue of $216K is below by $1\ OK or 34% compared to year to date budget of $326K. The negative variance in revenues is due to decrease in overnight rentals in 2008 compared to 2007. Operating expenditures through June total $259K, which is $54K or 17% below the year to date budget of $313K. Dumas Bay Centre has recovered 83.4% of its operating expenses. Knutzen Familv Theatre Operating revenue of $65K is above year to date budget of $38K by $27K or 73%. Operating expenditures through June total $123K, which is $38K or 45% above the year to date budget of $85K. The unfavorable variance is due to timing of printing payments for recreational brochures compared to 2007 ($20K) and increase in salarieslbenefits for shifting of staff from Dumas Bay to Knutzen ($13K). Knutzen Theatre has recovered 52.8% of its operating expenses. 70 Federal Way Communitv 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 June 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 June, operating revenues total $717K and is $115K or 14% below YTD projections. Currently the Open Gym/lndoor Playground and Towel/Equipment Rentals are not up and running as of June 2008. Federal Way Cornmunity Center expects Towel/Equipment Rentals to be up and running sometime this summer. Through June, operating expenditures total $949K and is $2K or less than I % below YTD budget estimates. Federal Way Community Center has recovered 76% of operating expenditures compared to the budgeted recovery ratio of 87%. Year-to-date projected subsidy is $119K and Year- to-date actual subsidy is $232K or $l13K 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 $113K, the Community Center is currently using their capital reserves for on-going general operations. Year-to-date operating budget projections are calculated on 1I12th of the Annual Budget times the month we are reporting. For year-to-date June, the projected revenues/expenditure budget is 6/12th 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. 2008 Variance federal Way Annual YTD YTD Community Center Budget Budget Actual $ % , . . -,------.-- i-----"'-'--~.t__ Revenues 1T.183.4ii7+$591,704~-fs21,316 ----------- -~1:9% Adnissions $ (70,388) Youlh Athletic Programs 19,000 9,500 i . (9,500) -100.0% Open Gymlk1door Playground 1,000 5001 (5) (505) .101.0% Aquatics Programs.LessonslOasses 148,000" ...l4,~_ 54,599 (19,401) -26.2% Olidcare Fees --I~:~T-.-~: t 904 (4,096) . -81.9% Fitness Training Fees 3,477 977 39.1% . Tow eVequipment Rentals 8,000 r-4.000 j - (4,000) -100.0% Pool RentalsKAn1>etitive.Lap Lanes 36,000 18,000 , 10,663 (7,337) -40.8% Rentals 213,000 106,500 100,637 (5,863) .5.5% Merchandise Sales 21,000 _._.~0~5oo ~_. 23,431 12,931 123.2% ------, .100.0% ConcessionsNending 19,000 9,500 ! - (9,500) klterest Earnilgs/Other Msc Revenues 1,663,40; t 831,70~~ 1,871 1,871 n/a Total Revenue 716,894 {114,809) -13.8% -- j i Expenditures ------+-----. I I 29,673 j ......;..........._.-1 Personnel Costs 1,232,385! 616,193 i 586,520 4.8% Supplies 133,254100wt. 70,309 (3,682) .5.5% Other Services & Olarges 3"'92ft-'''''''' L 223,,," (26,970) .13.7% Intergovernmental 2,000 1,000 I 9,078 (8,078) .807.8% Cap~al . .---t-- 11,000 100.0% 22,000 . 11.000 i . Internal Service Olarges 119,531 59,766 , 59,767 (2) 0.0% Total Expenditures l,901,76f - 950,881 i 948,939 f,941 0.2% I Operating Rev Over I (Under Exp) - (238,354) i (119,177) (232,045) (112,8681 94.7% i Other Sources !. . Transfer In from Utax Fund 528,348 i "- 264,174 I 264,174 0.0% Total Other Sources 528,34T 264,174! 264,174 . 0.0% -----"- i-----."--!.--~."-.--l----..- ----- ----._- Other Uses II J ransilionlStartup Costs _ t _ I . . nla Total Other Uses - . - . nla i I Net Income 289,9941._ 144,997 32,129 (112,8681 -77.8% -,., Beginning Balance 23,530! -'-21,395 I 21,395 . 0.0% Ending Balance $ 313,524 ! $ 166,392 $ 53,524 $ (112,8681 -67.8% Other Departmental Variances City Council year-to-date expenditures total $252K is $3K above estimates due to over-spending in supplies ($4K), charges for services ($20K), and intergovernmental ($15K) however, these are offset with savings in salaries and benefits ($28K) based on 2007 spending patterns. City Manager year-to-date expenditures of $643K is above year-to-date budget by $18K mainly due to timing of payments in various line items based on 2007 spending patterns. Economic Development year-to-date expenditures of $1 07K is below year-to-date by $77K due to under-spending of one-time programs in 2008 based on 2007 spending patterns. Management Services year-to-date expenditures of $1.2M is $77K below estimate due to under-spending of one-time programs in 2008 based on 2007 spending patterns. 71 Law year-to-date expenditures total $767K and is $2K below estimates due savings in various line items based on 2007 spending patterns. 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 $19.6M at June 30, 2008. This leaves the City with a remaining debt capacity without voter approval of $l22.3M and an additional $90.1M 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 turnout of at least 40% of those who voted in the last State general election. With this vote, the voter approves additional property tax can be levied above and beyond the constitutional and statutory caps on property tax. In addition to these general-purpose debt capacities, 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 $662.9M. The Public Works Trust Fund Loans are the obligation of the Surface Water Utility, 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 outstanding debt as of June 30, 2008. GENERAL CAPACITY (C) General Purnoses Excess Levy Excess Levy Total Councilmanic Excess Levy Open Space Utility Debt (Limited GO) (Unlimited GO) and Park Pumoses Caoacity $ 135,155,346 $ (135,155,346) 225,258,909 225.258,909 225.258,909 $ 675,776,728 6,758.777 6,758.777 (19,605,000) ( 19,605,000) $ 122,309,123 $ 90,103,564 $ 225,258,909 $ 225,258,909 $ 662,930,505 $ 212,412,686 DESCRIPTION AV= $ 9,010,356,378 (A) 1.50% 2.50% Add: Cash on hand for debt redemption (B) Less: COPs outstanding Bonds outstanding REMAINING DEBT CAPACITY (A) Final 2008 Assessed Valuation (8) Fund balance of$3,527,856 in debt service prefunding balance and $3,230,921 in utility tax fund. (C) Combined total for Councilmanic, and Excess Levy capacities. OUTSTANDING GENERAL OBLlGA nON DEBT - As of June 30 2008 Amount Outstanding Outstanding Funding Maturity Originally Debt as of Amount Debt as of CaUable CaUable Description Pumose Source Dale Interest Rate Issued 1213112007 Redeemed 6/3012008 Dale Amount GeneralOblil!ation Bonds: 2000 ValleyComm (911 REET I-Dec-15 5.31 2,551,600 1,595,000 1.595,000 I-Dec-IO 1,069,000 Limited Dispatch)-Center Bldg & Equipment 2003 Community Center Utax I.Dec.33 4.67 15,000.000 13,910,000 - 13,910,000 I-Dec-13 11,955,000 Limited 2006 G.O. AMC Theatre Site 28-Dec.08 3.1an.00 4,100,000 4,100,000 - 4,100,000 - Bonds Acquisition Total General Oblieation Debt $ 21651600 $ 19605000 $ - $ 19605000 - Public Works Trust Fund Loan: PWfL SWM CIP-Kitts SWM 1.1ul-14 1.00 1,555,440 603,676 (86,239) 517,437 - - Corner Project PWTL SWM ClP.SeaTac SWM 1-1ul-19 1.00 2,475,000 1,153,436 (96,120) 1,057,317 . - Mall Detention Pro.. Subtotal PWfFL 4,030,440 1,757,112 (182,359) 1,574,753 - - Grand Total $ 25,682,040 $ 21,362,112 $ (182.359) $ 21,179,753 . 72 CASH & INVESTMENTS Overall investment interest through year-to-date through June 2007 compared to year-to-date through June 2008 decreased by $278K. 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 from June 2007 to June 2008 5.21% to 2.29% and 5.38% to 2.17% 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 (2.17%) and the State Investment Pool (2.29%). The average portfolio yield is 2.47% which is slightly above the two benchmarks. 'Invesbni'mt Sch~dule' . Ji/.ne 200fl PCirAmqqtjt.; $1,000,000 $1,000,000 $2,000,000 Malurity ~CJ,t~. 7/212009 4130/2009 Yifildto . Mati/. . 5.29% 4.50% 56 4.93% 2.17% Munici allnvestor Account State Investment Pool $1,519 $61,534,003 1 da 1 da 2.48% 2.29% Avera e Portfolio Maturi & Yield mtiOj]ftYi~~\ffi~Mt~ 3 2.47% ':...:$~'3;~~~;~9;'t The total invested balance at the end of June is $63.56M, which includes $61.53M in the state investment pool, $2.02M in- house investment purchases, and $2K in the Municipal Investor Accounts. The state pool is composed of agency callables (.21 %), repurchase agreements (3.39%), treasury securities (1.06%), agency coupons (8.14%), interest bearing bank deposit (5.44%), agency floating rate notes (23.32%), agency variable rate notes (2.10%), discount notes (47.32%) and certificates of deposit (9.02%). The City's total investment portfolio is made up of 97% State Pool, 3% In-House Investments, and 0% Municipal Investors Accounts. Total Portfolio by Category June 30, 2008 Interest Rates Comparison For the Month of June 2008 In.House Invesbrents 3% 6.0% 5.0% 3.0% iii 6 Month T-BiII 4.0% . State In~stment Pool Din-house lnwstment State Invesbrent Pool 97% 2.0% 1.0% 0.0% m Municipallnwstor Account . Portfolio A~rage 2003 2004 2005 2006 2007 2008 73