FEDRAC MIN 03-22-2011 � �Federal Way
City Council
Finance/Economic Develo ment/Re ional Affairs Commiltee
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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.
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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.
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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
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FEDRAC SUMMARY
March 22. 2011
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expertise.
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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
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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.
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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.
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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:
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Pa�lc Jeanne Burbidge k Dovey
Co ittee Chair Committee Member i ee Member