Council MIN 11-29-2011 SpecialciTr oF
'�,,,,'�.... Federal Way
MINUTES
FEDERAL WAY CITY COUNCIL
SPECIAL MEETING
Council Chambers - City Hall
November 29, 2011
6:00 p.m.
www. cityoffederalway. com
1. CALL MEETING TO ORDER
Mayor Priest called the meeting to order at 6:01 pm.
Elected officials present: Mayor Skip Priest, Deputy Mayor Dini Duclos, Councilmember Jim
Ferrell, Councilmember Linda Kochmar, Councilmember Mike Park, CouncilmemberJeanne
Burbidge and Councilmember Jack Dovey. Councilmember Roger Freeman arrived at 6:10
pm.
City staff present: City Attorney Pat Richardson, City Clerk Carol McNeilly.
2. PUBLIC HEARING
2011/2012 Biennial Budget Adiustment and Propertv Tax Rate
Mayor Priest reported tonight was the second public hearing on the 2011/2012 mid-
biennial budget adjustment and property tax rate as required by RCW 35A.34.110 and
35A.34.120. The first public hearing was held on November 15, 2011. Mayor Priest
reviewed the procedure for conducting the public hearing and declared the hearing open at
6:02 pm.
Finance Director Tho Kraus addressed questions that were submitted by Council regarding
cost savings of hybrid vehicles. Ms. Kraus stated there have been fuel cost savings to the
City.
Ms. Kraus also reviewed property tax impacts to residents, which is approximately $5.00 per
household as well as the estimated General Fund ending fund balance. The 2012 estimated
ending fund balance of $6.5M is projected to be reduced to $3.6M as a result of covering the
projected operating gap of $1.3M in 2013 and $1.6M in 2014. The $3.6M estimated ending
fund balance could be further reduced to $1.9M as a result of the State's budget crisis that
could eliminate state shared revenues, elimination of 2% sales tax revenue growth, pending
issues and fuel cost increases. Still there are other potential pending issues where the
financial impact is unknown that could further reduce the $1.9M ending fund balance.
Ms. Kraus also presented a proposed amendment to the mid-biennium adjustment to include
the conversion of two temporary staff working in the graffiti and sign code program to regular
part-time positions totaling 1.0 FTE. These two employees began part-time temporary
City Council Minutes — November 29, 2011 Special Meeting Page 1 of S
employment in 2008. The adjustment is necessary to in order to comply with law. These
employees will be eligible for medical insurance as a regular part-time employees resulting in
a total increase of approximately $17K per year. Funding in 2012 will come from the
department's savings so there is no financial impact to the proposed budget ordinance.
Ms. Kraus stated the general purpose of the mid-biennium is to incorporate items previously
approved by Council, reflect changing operations and trends, and limited service changes and
enhancements. Additionally, there is a proposed accounting and policy change for SCORE
jail.
Mr. Kraus highlighted some major General and Street Fund adjustments inctutling: funding for
CDBG NSP3 environmental review; eliminating the federal lobbyist program; fre�zing 3 vacant
police officers; reducing dispatch services contracts to reflect anticipated cc>sts; increasing
election costs; reducing postage/delivery services; reducing the sponsorshipprogram.funds;
reduce General Fund expenditures as a result of the Human Services/CDBG �
restoring a senior traffic engineer partially funded by reductions in Public Vlforks department
budget; providing partial funding for DBC roof repair; ongoing transfer to DBC for annual
pump station m&o; one-time increases in unemployment compensation due to additional
claims received as a result of the economy; increase in general liability insurance premium;
adding a half-time recreation inclusive coordinator position funded by City through general
recreation revenue. Ms. Kraus stated CDBG grant will provide one-time funding in 2012 to
cover the remaining half-time recreation inclusive coordinator position.
Ms. Kraus also reviewed the accounting and policy change for SCORE jail contract. The
proposed accounting change would treat both m&o and capital contribution as total SCORE
jail contract cost accounted for in the General Fund, consistent with how SCORE will bill the
City. The proposed policy change is to utilize utility tax rather than real estate excise tax to
provide for capital contribution. There is no financial impact to Transportation CIP funding or
jail budget estimates as a result of the proposed change. Also, the proposed policy change
includes the establishment of jail reserves where jail budget savings would be set aside to
mitigate future cost increases.
Ms. Kraus also gave a general overview of the other funds proposed budget adjustments and
stated the details can be found in Exhibit A Summary of Proposed Mid-biennium Adjustments
of the budget adjustment document.
Ms. Kraus reviewed the limits on the property tax levies, which is limited by statute. The 2012
property tax proposal is a 1% limit factor. The tax rate would be $1.30 per $1,000 assessed
value and the impact to residents is approximately $5.
Police Chief Brian Wilson provided a briefing on the police staffing levels and the 3`� quarter
crime statistics from 2005 to 2011. The City is currently at the lowest crime rate since the
departmenYs establishment. Year end annual index crime is projected to be reduced by 9.5%
over the 2010 crime index. There has been a reduction in calls for service from 2005 through
2011. Sta�ng level in the police department today is 122 commissioned and 28 non-
commissioned personal.
The proposed 2012 Police Department staffing model reflects a staffing reduction of 18 FTE
positions (14 commissioned and 4 non-commissioned) or 11 % over the 2010 adjusted budget
staffing numbers. Given the reductions in the crime rate, calls for service and major crimes to
date, the police department is able to operate at the 122/28 sta�ng level. Increases in these
areas or higher demands for services will impact the level of service the department is able to
provide.
Mayor Priest called for public comment:
City Council Minutes — November 29, 2011 Special Meeting Page 2 of S
Diana Noble-Gulliford with the Federal Way Historical Society stated the Historical Society is
in need of support from the City. The support is needed to upgrade staffing levels, complete
restoration of cabins, to provide literature for the community and additional projects.
Councilmember Ferrell inquired about staffing levels in the Police Department. Chief Wilson
stated the department was budgeted at 136 at the end of last year; currently there are 7
vacant positions in the police department.
Deputy Mayor Duclos asked how many officers were assigned to the Commons Mall and if the
_.. � Mall paid for that service. Chief Wilson stated there were 3 officers assigned to the Mall and
they paid half of their salary. Deputy Mayor Duclos would like to have a discussion on how
, revenue projections are estimated. r
�' T.`. Councilmember povey inquired on funding SCORE from REET ta lltilit�y Tax. Ms. Kraus
'� �: the policy change would be to align with the way that SCC)RE°is��a4locating the
expenses. Councilmember povey suggested eliminating the Sponsorship Program.
Councilmember Kochmar asked if the City was ptanning to purchase any more hybrid
vehicles. Ms. Kraus stated with the use of grants, two hybrid vehicles are slated for purchase
in 2012. She also thanked the Police Department for their work with the current staffing levels.
Councilmember Ferrell stated he was concemed with staffing levels in the Police Department.
He thought the 122 officer staffing level was temporary as the City budgeted for 129 positions.
Councilmember Park feels this is the most in-depth discussion for the mid-biennial budget
adjustment in his 16 years on the Council. He added that when the City created the Police
Department, the sta�ng level was one officer per 1,000 residents.
Mayor Priest stated the City is looking into the COPS Grant, which would add 3 police officers
to the department.
Councilmember Freeman suggested re-evaluating how much the City spends on roads each
year. Mayor Priest noted that the City has moved $600k from overlay services on an ongoing
basis to pay for other services. Parks and Public Works Director Cary Roe stated that the
City's current roads are scored at a 79 (out of 100). As far as performing overlays, it is more
cost effective to maintain roads than to let them get to a point where they need to be re-
constructed.
Mr. Roe reviewed the street overlay rating process and lifeline for arterials and neighbofiood
streets.
Motion: Councilmember Park moved to close the public hearing. Deputy Mayor Duclos
second.
Vote:
Deputy Mayor Duclos: Yes
Councilmember FerrelL• Yes
Councilmember Kochmar: Yes
Councilmember Park: Yes
Councilmember Burbidge: Yes
Councilmember povey: Yes
Councilmember Freeman: Yes
Motion carried 7-0.
City Counctl Minutes — November 29, 2011 Special Meeting Page 3 of S
3. ORDINANCES
First Reading:
a. CB#591 2011/2012 Mid-Biennial Budqet Adiustment
An ordinance of the City of Federal Way, Washington, relating to the Budgets and Finance,
Revising the Adopted 2011-2012 Biennia/ Budget
City Clerk McNeilly read the ordinance title into the record.
MOTION: Councilmember Park move to forward the ordinance to the
'�- ' December 6, 2011 Council meeting for second reading and enactment.
Councilmember povey second.
Vote:
Deputy Mayor Duclos:
Councilmember Ferrell:
Councilmember Kochmar:
Councilmember Park:
Councilmember Burbidge:
Councilmember povey:
Councilmember Freeman:
Yes
Yes
Yes
Yes
Yes
Yes
Yes
x .,
>�
Motion carried 7-0.
b. CB#592 2012 Propertv Tax Rate
An ordinance of the City of Federal Way, Washingfon, Fixing the Property Tax Amount for the
Year of 2012.
City Clerk McNeilly read the ordinance title into the record.
MOTION: Councilmember Park move to forward the ordinance to the
December 6, 2011 Council meeting for second reading and enactment.
Councilmember povey second.
Vote:
Deputy Mayor Duclos: Yes
Councilmember FerrelL• Yes
Councilmember Kochmar: Yes
Councilmember Park: Yes
Councilmember Burbidge: Yes
Councilmember povey: Yes
Councilmember Freeman: Yes.
Motion carried 7-0.
:�
ADJOURNMENT
Mayor Priest stated another budget meeting was scheduled for November 30, 2011, however,
since the Council has completed deliberations on the 2011-2012 mid-biennial budget
adjustment and property tax rate that meeting will not be held. The next meeting of the Federal
Way City Council is scheduled for December 6, 2011.
Mayor Priest adjoumed the meeting at 8:10 pm.
City Council Minutes — November 29, 2011 Special Meeting Page 4 of S
Attest:
Carol McNeilly, CMC, ity Cler
Approved by Council: December 6, 2011
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City Council Minutes — November 29, 2011 Special Meeting
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