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FEDRAC MIN 03-22-2011 � �Federal Way City Council Finance/Economic Develo ment/Re ional Affairs Commiltee - .. . � -.- . . . � . :• ••• SUMMARY 1. CALL TO ORDER Chair Mike Park called the meeting to order at 5:32 PM Committee Members in Attendance: Committee Chair Park, Committee Members Burbidge and Dovey. Councilmembers in Attendance: Dep�ty Mayor Duclos Staff Members in Attendance: ASD Bryant Enge, Chief Brian Wilson, Finance Director Tho Kraus, City Attorney Pat Richardson, and Executive Assistant Brook Lindquist 2. PUBLIC COMMENT: None. 3. COMMITTEE BUSINESS Topic T'�tle/Description Council Placement A. Approval of Minutes: February 22, 2011 N/A Discussion Only Committee Member povey moved to approve as presented. Committee Member Burbidge second. Motion Carried 3- 0. _.. __._ __. . _. ._. _ -- _ . . . _� .. _.... — .. __ _.. __ . . . B• legislative Report for March 2011 N/A Discussion Only ASD Enge presented the latest legislative report to Committee Members. State Lobbyist Levy reported on the current legislative items that affect the City of Federal Way. The House and Senate have released their transportation budgets. The less positive news is that both budgets do not include the Triangle Project cost savings. The better news is that most members are aware of this project. Precious metals will be heard at the Senate Rules Committee. There was a brief update on the REET bill. The most recent State revenue forecasts include a$40 MIL in increased fuel costs, which was not expected. A more detailed State budget will be available in the near future. The State is looking at selling the liquor distribution system. ASD Enge, Comm. & Grant Coordinator Carrel, and EA Cain met with Senator Eide today. The Civic Center/PACC and KC Aquatic Center may have funding under a proposed amendment to the tax repurposing bill. Lobbying efforts are working to keep the $325K grant for the Coalition of the Performing Arts. The City is not asking for any new revenue. __ _ . . . . ___ _._. _ __... . . ._. .. . — _ _ . �. __ N/A ____._ __ � . _.. __ C. Internal Federal Lobbying Activ'ity Discussion Only ASD Enge presented the Committee with the proposed internal federal lobbying activity and the City's 2011 Legislative Agenda. The Triangle Project is the top legislative priority and the other priorities include economic development, public safety (COPS Program), and CDBG/CSBG funding. Chair Park stated the City will be completing the federal lobbying work in-house. ASD Enge stated the decision was made to do this in-house as a lot of the contacts and skilis are here. The City's last federal earmarks were in 2007. There is reluctance by the Senators/Representatives to do earmarks. Deputy Mayor Duclos met with Rep. Smith and he said that he would put in for Triangle Project funding. Committee Members encouraged staff to keep in constant contact with Senators/Representatives' staff. ASD Enge stated staff will be meeting with all reps quarterly as well as phone calls and emails every two weeks. Both Representatives Reichert and Dicks will also be contacted. Deputy Mayor Duclos offered assistance for CDBG/CSBG items as this is her area of _ _ _. FEDRAC SUMMARY March 22. 2011 — ... _.�_.. . . .... .. _. ... __ _.. __ . _ _ __.�__.. . --- . . .. .__.. expertise. _........ _ ........ _.._. _ __ .... _ _ _ D. February Monthly Pinancial Report Consent 04/OS/2011 Finance Director Kraus presented the February 201 1 Monthly Financial Report. General and Street Fund revenues as a whole is on target with year-to-date budget estimates. However, there are a couple of revenues that are currently below budget and are of concern - sales tax and court revenue. Property tax is down $65K, however, is not concerning at this point since property tax payments not due until end of April and the revenues anticipated are based on assessments on property. The Designated Operating Funds saw increases in utility tax, real estate excise tax and red light photo enforcement compared to year-to-date budget. The $253K increase in red light photo revenues does not take into account of approximately $100K for January and February payments to ATS since these invoices were not received and paid at the time the monthly financial report was prepared. The adjusted increase in red light photo compared to budget is $153K. The preliminary March 201 1 sales tax distribution came in below budget by approximately $20K, resulting in a$45K or -1.6% decrease compared to year-to-date 2010 actual and $68K or -2.4% decrease compared to year-to-date budget. Staff will be monitoring sales tax revenue closely and reporfing to FEDRAC monthly. Changes in year-to-date sales tax collections by classification is as follows: • Retail trade down $15K due to closure of specialty market and reduced activity of an online store; • Services down $3K. Services is generally viewed as one-time and changes are usually due to new office set up and the result of field audits; • Wholesaling up $l OK due to the sale of a fire truck; • Information down $2.6K due to decrease in publishing activity; • Government up $5.9K due to taxpayers remitting returns but did not provide classification code; • Finance/Insurance/Real Estate down $9.6K due to a couple businesses closing and decreased video rental activity. Changes in year-to-date sales tax collections by area is as follows: • South 348'h up $5.2K due to increased activity at a major store; • The Commons down $2K due to increased activity at a game store offset by decreased activity of anchor stores. The current report does not take include a toy store and if that were included, the decrease would be less. • South 312fh down $10.5K due to decreased activity of a major retailer offset by increases in auto parts. • Pavilion Center down $9.5K due to decreased activity electronics • Hotels/Motels up $3K due to new hotel added last year • Federal Way Crossings down $1.8K due to decreased activity in cellular/wireless Year-to-date utility tax compared to 2010 is down $b.l K and up $75.7K compared to budget. The decrease compared to 2010 is a timing difference and when taken into consideration, utility tax is up approximately $60K. Electricity is up $48K due to consumption and a slight rate increase; gas is up $S6K due to rate increase and consumption; Solid Waste is down $56K due to timing difference -- $65K was received in March; and cellular is down due to a major payor excl�ding data services from utility tax calculation. Real estate excise tax collections received to date accounts for over half of the annual FEDRAC SUMMARY March 22. 2011 _. . . _. . . _ _ ......_ _._ _._ _. _ . . . _ _.__ __. __ . __ _ .. . _.... __ . __ . __.._. budget. Major transactions include the sale of Palisades Apartments which generated $334K in REET and Woodmark Retirement Community which generated $46K in REET. Hotel/motel lodging tax is up $2.7K due to addition of new hotel last year. Gambling tax is down $82.7K compared to year-to-date 2010 and up $29.7K compared to budget. Of the $82.7K decrease, approximately $13K is from pulltabs and $70K from cardroom. The budget for 201 1 does not include an estimate for card room, thus the $29.7K increase. Fuel tax is down $9.5K due to reduced consumption. Community Development permits and fees are up compared to budget and prior year. Police City portion of overfime is up $16.8K compared to year-to-date 2010 and up $8.7K compared to budget due to extra hours required to investigate a homicide and an officer involved shooting investigation for the City of T�kwila. The monthly financial report includes a new section, Animal Services as requested by Chair Park. The table does not account for internal services charges or ValleyCom dispatch services as it is difficult to track these separately. Licensing revenues totaled $22K for the first two months which is less than anticipated. However, the budget was based on King County data and did not take into consideration of free licenses for senior/disabled licenses which is estimated at $45K annually. Police department is taking measures to increase licensing starting with comparing current licenses with King County's database. In any case, even if revenues come in at 50% of budget, it is still cheaper than continuing with King County. Chief Wilson stated the animal services program is requiring additional resources from police officers as they have been required to handles some calls. Jail costs are down $12.5K compared to year-to-date 2010 due to decreased usage and medical costs. Year-to-date 2010 red light photo revenues totaled $101 K. January 2010's revenues does not include the 8 new cameras that were activated February 2010 and the 2 additional cameras activated December 2010. February 2010's revenue does not include the 2 additional cameras activated in December 2010. 201 1's year-to-date revenues of $309K does not include two payments totaling approximately $100K since invoices were not received and paid at the time the monthly financial report was prepared. Finance Director Kraus stated the correct number of locations is 1 1 and cameras is 14 (8 red light and 6 school zone�. Court revenue is down $67.8K due primarily to traffic and non-parking which is down $48K and shared court costs which is down $23K. The shared court cost variance is due to the timing of court enhancement funds not yet received. Traffic and non-parking revenue is down to a reduction of citations by traffic officers. Police has drawn resources from the Traffic Section to back-fill day shift patrol and other assignments. General Recreation, Federal Way Community Center are all performing well. General Recreation is on target with 2010's revenues and slightly over. The total general fund subsidy projected is $319K annually and $48K was required through February. At year- end the required subsidy should be no more than $319K. Federal Way Community Center revenues are above 2010 year-to-date actual and budget and expenditures are below 2010 year-to-date actual and budget. FWCC current ending fund balance is $780K and not all utility tax transfers have been made. Finance Director Kraus noted a correction to the 2011 budget - there should be $0 budgeted for marketing study/implementation and $0 budgeted for repairs and maintenance, and projected ending fund balance should be $88,171. Dumas Bay Center which includes Knutzen Family Theatre ending fund balance is currently $228.SK. _. ___.. .. FEDRAC SUMMARY March 22. 2011 Committee Member povey moved adoption. Committee Member Burbidge second. Motion carried 3-0. __ .. _._ E. Vouchers Consent 04/OS/2011 Committee Members inquired about invoice 222094 for payphone services. Finance Director Kraus stated she will look into this. Committee Member Burbidge moved adoption. Committee Member povey second. Motion carried 3-0. _. _ _ 4. OTHER Chief Wilson stated that he will be bringing recommendations to FEDRAC on the false alarm fee schedule as changes are needed. Committee Members inquired about false alarms costs. The Committee discussed what other jurisdictions. 5. FUTURE AGENDA ITEMS: None. 6. NEXT MEETING: Tuesday April 26 2011 r i�" Meeting adjourned at 6:26 p.m. `�' Attest: Brook Lindquist, Executive Assista COMMITTEE APPROVAL: � _ `-,^-<J � r� Pa�lc Jeanne Burbidge k Dovey Co ittee Chair Committee Member i ee Member