FEDRAC MINS 07-23-2002
City of Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday, July 23, 2002
2:00 p.m.
City Hall
City Council Chambers
MINUTES
Committee Members in Attendance: Chair Michael Hellickson, Member Eric Faison.
Excused Absen ce: Member Mar y Gates.
City Council Members in Attendance: Jeanne Burbidge, Mayor; Council Member Linda Kochmar.
Staff Members in Attendance: Iwen Wang, Management Services Director; David Moseley, City Manager;
Derek Matheson, Assistant City Manager; Bob Sterbank, City Attorney; Michael Olson, Deputy Director of
Management Services; Patrick Doherty, Deputy Director of Community Development; Tho Kraus, Financial
Management Supervisor; Jason Suzaka, Management Analyst.
Others in Attendance: None.
1. CALL TO ORDER
Chair Michael Hellickson called the meeting to order at 2:00 pm.
2. PUBLIC COMMENT
None.
3. COMMITTEE BUSINESS
a) Approval of the June 25, 2002 meeting minutes
Motion to approve June 25, 2002 meeting minutes. Seconded and approved.
b) Legislative and Regional Affairs Update
Presented by Der ek Math eson
T h e Regi on a l T r a n spor t a t i on In vest m en t Di st r i ct h a d a st a ff m eet i n g t o deci de h ow t o l obby a n d
will be determining which projects to push for.
Regional Policy Committee had a retreat last Friday, to deal with county funding of parks and
human services programs. The cities want to try to minimize attempts by the county to shift the
burden of funding these types of programs to the cities themselves.
Eric Faison has been appointed by the AWC to a committee that is looking at the annexation
issue (Th e Supreme Cour t r ecen tly in validated th e petition method of annexation).
d) Gambling Tax Code Amendment
Presented by Mich ael Olson
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Mr. Olson reviewed the amendment with the committee.
Motion to forward the proposed change in gambling tax rate on bingo and raffles from 10% to
5% to full council for approval at the August 20, 2002 council meeting. Motion seconded and
carried.
e) 2nd Quarter Financial Report
Presented by Th o Kr aus
Ms. Kraus reviewed the 2nd Quarter report with the committee. Among the year to date
highlights (compared to 2001):
Total Revenue collections are up 8.8% over 2001.
Real Estate Excise Tax revenues are 106.4% over the budgeted amount.
Sales Tax r eceipts ar e up 2.8%.
Gamblin g Tax r eceipts up 29.6%.
Lodgin g Tax r eceipts down 20.3%.
Utility Tax receipts up 2.4%.
Building Permit Fee receipts up 31.4%.
Court revenue down 25.2%. Traffic and non-parking revenue down 35.9%, which may
be due to not having a full staff of patrol officers (will probably go back up once filled).
Currently the gambling tax revenues go into the general fund. An idea that was raised was to
look at shifting money from the gambling tax revenues to fund parks projects and to find out if
there is a connection between an increase in gambling tax revenue with increase in domestic
violence. By law, some of the gambling tax revenues have to go into law enforcement.
On the expenditure side, most departments are showing a favorable variance over last year, but it
is mainly due to department not yet having spent their one-time funds on upcoming programs.
Dumas Bay Centre is showing an unfavorable variance of $16,000 but it is mainly due to $18,000
that has not yet been collected due to the timing of collections.
Mr. Hellickson asked what it would take for the Knutzen Family Theatre to become self-
sustaining financially so that the utility tax could be used to fund other projects instead of
subsidizing the theatre. Mayor Burbidge said that when the theatre was first built, donors gave
money with the understanding that it would be used primarily by local non-profit groups and
subsidized by the city.
Mr. Hellickson asked staff to perform an analysis of what ticket prices would need to be for the
theatre to become self-sustaining and to compare it with what ticket prices are now.
Motion to forward to full council the 2nd quarter financial report. Motion seconded and
carried.
f) Voucher s
Presented by Th o Kr aus
Ms. Kraus reviewed the vouchers with the committee.
Motion to approve and forward to full council the vouchers. Motion seconded and carried.
4. OTHER
None.
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5. FUTURE AGENDA ITEMS
a) Voicestream BPA/Twin Lakes Lease (Sterbank)
Mr. Sterbank reported that there are some last minutes details that still need to be ironed out, but
agreement should be ready to present by the next FEDRAC meeting.
b) Redevelopment Incentives in City Center
Mr. Faison said that he would like to hear various options (incentives) to encourage economic
development in the city center. Ms. Wang suggested that staff could arrange for a panel
discussion from other cities on this topic. Mr. Hellickson suggested staff bring back a list of top
10 or 5 options.
Ms. Kochmar said she was interested in hearing what developers want, to which Mr. Moseley
replied that recommendations should come out of stakeholders meeting around September or
October.
c) Establish Parks Refund Checking Account
Ms. Wang reported that in order to expedite refunds of payments for classes, staff is planning on
establishing a revolving fund to handle these refunds so that citizens do not have to go through
the lengthy process of going to the normal accounts payable procedures.
d) Olympic Pipeline
6. NEXT SCHEDULED MEETING
August 27, 2002 at 2:00pm in Council Chambers.
7. ADJOURN
Chair Michael Hellickson adjourned the meeting at 2:53pm.
Recorded by Jason Suzaka