Council MIN 10-24-2012 SpecialCiTY OF
� Federal Way
MINUTES
FEDERAL WAY CITY COUNCIL
SPECIAL MEETING
Gouncil Chambers - City Hall
October 24, 2012
6:00 p.m.
www. cityoffederalway. com
1. CALL MEETING TO ORDER
Mayor Priest called the meeting to order at 6:03 pm
Elected officials present: Mayor Skip Priest, Deputy Mayor Jim Ferrell, Councilmember Linda
Kochmar, Councilmember Susan Honda, Councilmember Jeanne Burbidge, Councilmember
Bob Celski, Councilmember Roger Freeman and Councilmember Dini Duclos.
City staff present: City Attorney Pat Richardson and City Clerk Carol McNeilly.
2. 2013-2014 Budget Overview and Department Presentations
Finance Director Tho Kraus provided an overview of the 2013/2014 Proposed Biennial
Budget. Revenues and other sources including beginning fund balance for all funds #otal
$135,253,000 in 2013 and $128,180,000 in 2014. Proposed ongoing revenues for all funds
in 2013 is $52,589,000 and $52,480,000 in 2014.Expenditures and other uses for all funds
total $87,720,000 in 2013 and $86,199,000 in 2014. Ending fund balance for all funds total
$47,533,000 in 2013 and $41,981,000 in 2014. Utility tax, sales tax and property tax accounts
for a large part of all funds ongoing revenues. Public safety accounts for 53% ongoing
expenditures for all funds.
Key reven�e projections for General and Street Fund include: sales tax decrease of $272,000
or 2.5% in 2012 compared to 2011, followed by a 1% sales tax increase in each year of 2013
and 2014 and 2% increase in 2015 and 2016; property tax is projected to increase 1% per
year as authorized by state statute; liquor profits revenue is included while liquor excise tax
and additional liquor revenues are excluded; utility tax allocations are based on Council
designation; and continue redirection of $600,000 per year overlay utility tax.
Key expenditures assumptions for the General and Street Fund include: maintaining staffing
levels, excluding salary and benefit projections for three frozen positions; no cost of living
adjustments but allow for performance-based step increases, pension increases in
accordance with State projections and healthcare premiums increases of 15% in 2013 and
13% in 2014. Ongoing and one-time expenditures total $43.3M in 2013. Public safety,
including jail, prosecution, public defender and court accounts for 66% of total expenditures.
Personnel costs account for 6�% of total expenditures.
SCORE Jail is comprised of two components — maintenance/operations (M&O) and debt
service. M&O costs are based on prior year's average daily population (ADP). The proposed
budget for 2013 $3.77M and $3.75M in 2014. Debt service is fixed at 17% or approximately
City Council Minutes — October 24, 2012 Special Meeting Page 1 of 6
$917K per year.
The General Fund operating gap for 2013 is $1,298,437 and $2,171,683 in 2014. Strategies
to address the operating gaps are to continue the re-direction of overlay funding, move
ongoing funded items to one-time funding and temporarily suspend the collection of excess
reserves. With the implementation of these strategies the gap is reduced to positive $742,000
in 2013 and $2,000 in 2014. The estimated ending fund balance in 2013 is $6,276,447 and
$2,500,170 in 2014.
The long-term projection reflects an operating gap of $2.94M or 7.1 % of operating
expenditures and a deficit ending fund balance of $530,000. The deficit ending fund balance
increases to $3,070,000 in 2016.
Utility Tax Revenue projections for 2013 and 2014 are $12,388,OOO.The budget includes a
$300,000 transfer per year to the Downtown Redevelopment Capital Improvement Fund for
potential future LIFT matching.
Real estate excise tax revenue projections are $1,400,000 in 2013 and 2014.
Traffic Safety Fund is funded by the Red Light Photo Program and is projected to maintain
revenues of $830,000. The Traffic Safety Fund includes a one-time transfer of $45,000 to
Police for additional costs related to replacement equipment.
Parks Capital Budget - Includes the following funding sources: Real Estate Excise Tax, Fuel
Tax, King County Expansion Levy and re-allocation of existing funds. The Capital Expense
Budget for 2013 is projected at $686,000 and $1,373,000 in 2014.
Arterial Streets Overlay Capital Project — Includes 1% utility tax, fuel tax, and the reallocation
of existing funds. $600,000 per year of utility tax is redirected to the General Fund. The
Capital Expense Budget for both 2013/2014 is $1,536,000. It was noted that asphalt overlay
continues to be a high priority for the city and that the redirection of $600,000 per year is made
whole via the $1.1 M anticipated Puget Sound Regional Council grant. The grant funded
overlay project is accounted for in the South 320th Street — 11th Place South to I-5 Limited
Access Preservatio� project in the Transportation Capital Project Fund.
Transportation Capital Project — Transportation is funded by 1% utility tax, fuel tax,
reallocation of existing funds and anticipated grants. The Capital Budget Expense for 2013 is
$5,661,000 and $7,087,000 in 2014.
Surface Water Management Capital Project is funded solely by user fees. The Capital
Expense Budget for Surtace Water Management is $2,664,000 in 2013 and $246,000 in
2014.
Property tax growth is limited to the lesser of 1% or implicit price deflator. The City's levy rate
limit is $1.60. The 2013 preliminary assessed valuation is down 8% from 2012 resulting in an
increase in levy rate. The preliminary proposed levy rate is $1.43 per $1,000 AV.
The City's per capita tax revenue is ranked 30th of 38 King County cities.
Councilmember Kochmar inquired on the long term projections and what elements are
impacting it. Ms. Kraus stated the long term projections include the continued re-direction of
street overlay funding. Items impacting the long term projections include health care costs and
SCORE Jail.
City Council Minutes — October 24, 2012 Special Meeting Page 2 of 6
Councilmember Duclos stated the Council needs to focus on planning ahead for the
2015/2016 biennial budget and suggested the Council setup a timeline to look ahead a future
budgets. The FEDRAC Committee will be tracking budget items very closely.
• Community and Economic Development Department
Community and Economic Development Director Patrick Doherty presented
information on the department budget. The department is comprised of Administration,
the Planning Division, the Building Division, the Community Services Division and
Economic Development.
Mr. Doherty highlighted a few of the numerous department accomplishments for
2011 /2012. An RFQ/RFP process forpublic-private partnership co-development of the
forrner Toys R Us site for a Performing Arts/Conference Center, hotel, restaurant and
retail was performed. A regional advertising campaign entitled "Think Federal Way"
with a television ad was revived. Major community events including the NCAA Men's
Swimming/Diving Championships as well as the US Olympic Diving Trials were funded
through 'Lodging Tax Revenues. The proposed department budget is $2,876,040 for
2013 and $2,923,065 for 2014.
New program additions include upgrading the Amanda System, providing mobile
computers for Code Enforcement Officers and a funding a Temporary Inspector
position.
A few anticipated projects for 2013/14 include continuing to support the re-
development of the former AMC Theatre site as well as a Performing Arts/Conference
Center. A major Comprehensive Plan update which may carry into 2015. The adoption
of zoning and other regulations to implement the Twin Lakes Commercial District
Subarea plan. Continuation of the CDBG Commercial Loan and Commercial Exterior
Improvement Programs. Proposed changes to the Fee Schedule for permits,
zoning/plan review and hourly rates.
Councilmember Freeman stated he would like to see a coordinated effort to promote
community events in the city and inquired if the Planning Intern position was tasked
with working on community events. Mr. Doherty stated the position works primarily on
land use tasks. Community events are published on the city's webpage and through
funding of community events.
Councilmember Honda asked what marketing efforts the city is engaging in. Mr.
Doherty stated the city is marketed through a range of activities, including television
commercials, Enterprise Seattle, the Chamber of Commerce, a tourism website and
an advertisement in the WA State Visitors Guide. Mayor Priest added that the city's
marketing efforts also include being available to meet with potential tenants, by
providing prompt permitting services and through real estate brokers. Mr. Doherty
note the relationship with real estate broker is vital, as they are very active in
promoting the city.
Councilmember Kochmar suggested discussing event promotion at next year's
Council Retreat. She noted a few years ago the Council and the Chamber of
Commerce hosted a development summit and suggested conducting another summit
to promote development within the city.
The Council recessed at 7:22 pm and reconvened at 7:40 pm.
Ciry Council Minutes — October 24, 2012 Special Meeting Page 3 of 6
• Public Works Department
Parks and Pubiic Works Director Cary Roe presented information on the department
budget. Mr. Roe reviewed the organization chart for the department which is
comprised of Administration, Emergency Management, Surface Water Management,
Development Services, Solid Waste Management, Fleet Management, Traffic
Services and Street Systems.
Street Fund:
2011-2012 key accomplishments for the Street Fund include completion of
transportation projects — on time and within budget. Receiving $6,600,000 in grant
funding for various transportation projects. Recovering $230,000 through FEMA for
the January 2012 snow/ice event. Completion of ten school zone flasher retrofits. The
Street Fund proposed budget for 2013 is $4,168,667 and $4,213,562 for 2014.
Anticipated projects for 2013/14 include completion of construction for the Lakota
Midd�e School Safe Routes to School, 2012 City Safety Program improvements, start
the design and right-of-way acquisition for four road projects and the 2013-2014
Asphalt Overlay Program.
Fleet and Equipment Fund:
The proposed budget for 2013 is $359,651 and $360,281 for 2014.
Solid Waste and Recycling Division:
Mr. Roe reviewed the 2011/2012 key accomplishment for the Solid Waste and
Recycling Division. The division negotiated amendments to the solid waste and
recycling contract to establish call center performance goals and expedite the roll out
of compressed natural gas trucks. The proposed budget for this division is $304,418
in 2013 and $310,001 in 2014. In 2013/2014 the division will conduct spring and fall
recycling events and continue public outreach to start or expand recycling collection
programs in the community.
Surface Water Management Division:
A few of the accomplist�ment for 2011/2012 include meeting all NPDES Phase II
requirements, acquisition of the Bridges property (17.3 acres in the Hylebos), and
obtaining a Conservation Futures Open Space Grant in the amount of $300K.
The proposed budget for 2013 is $3,343,719 and $3,400,871 for 2014.
Anticipated key projects for 2013/2014 are the development and implementation of
surface water infrastructure maintenance program, completing the design and
construction of the S. 356th Street Regional Detention Facility project, updating the
Development Standards Manual and more.
Gapital Projects —
Funding sources include Utility Tax, REET, Fuel Tax, Grants and the re-allocation of
Capital Improvement Funds.
Capital Projects - Transportation:
Mr. Roe reviewed the projected capital projects for 2013/2014 and costs associated
with each project. Total project budgets are $7,197K for 2013 and $8,623K in 2014.
Capital Projects — Surface Water Management:
Two projects are included in the budget; Small CIP — Annual Program and S. 356�'
Street RDF Retrofit. The projected budget for 2013 is $2,664,000 and $246,000 in
City Council Minutes — October 24, 2012 Special Meeting Page 4 of 6
2014.
Councilmembers asked clarifying questions of Mr. Roe regarding funds allocated for
wire theft and the street overlay program.
Parks Department
Parks and Public Works Director Cary Roe presented information on the department
budget. The department is cornprised of Parks/Open Space/Facility Maintenance,
Recreation and Cultural Services, Federal Way Community Center, Dumas Bay
Centre and Parks/Planning Capital. The department is funded through the General
Fund and Special Revenue/Enterprise Funds.
A few of the many key accomplishment for 2011 /2012 include working with WA State
Department of Ecology on a soil safety program at three parks, weeks of cleanup in
parks and street rights-of-way after the January 2012 snow/ice event, increased
participation in Summer Day Camp Programs and a marketing/outreach program that
built partnerships with local retirement communities. The proposed budget (General
Fund) is $3,528,750 for 2013 and $3,570,781 for 2014.
Building and Furnishing Fund: ,
2013/2014 anticipated projects include upgrading the Funland Playground at Steel
Lake Park and add an all-inclusive area, development of a Master Plan forthe Panther
Lake Open Space and efforts to increase Fun-Runs hosted by the Recreation
Division.
Councilmember Honda inquired if funding options had been researched for making
Steel Lake Park more user-friendly for seniors and those with disabilities. Mr. Roe
stated a preliminary alignment study has been performed.
Federal Way Community Center (FV1/CC):
In 2011/2012 a long-range business plan was developed for the fWCC to include
strategies for capital replacements. Other key accomplishments include the
Swimmership Program that offers swim lessons to low income households,
implementation of a sales and retention program, and new membership incentive
programs for seniors. The proposed budget for 2013 is $2,168,353 and the 2014
budget $2,197,775.
Key projects to be performed in 2013/2014 are to continue increasing class sizes and
the increase of marketing efforts.
Councilmember Honda shared her concerns with staffing the front desk at the FWCC.
She suggested exploring the option of having a volunteer or intern to assist with
answering phone calls and other customer service tasks. Mr. Roe stated staff is
exploring options to enhance customer service at the FWCC.
Dumas Bay Centre: �
2011/2012 key accomplishments include the installation of motion sensors to
reduce energy usage, replacement of fluorescent light bulbs with LED bulbs and an
increase in revenues. The proposed budget for 2013 is $683,049 and $695,065 for
2014.
Anticipated projects for 2013/2014 include continued work with Centerstage Theatre
Ciry Council Minutes — October 24, 2012 Special Meeting Page S of 6
for successful operation of the theater, annual Dumas Bay cleanup and restoration,
and continued management improvements to maximize revenues and reduce
expenses.
Parks — Capital Projects:
Mr. Roe reviewed the 2013/2014 Capital expenses which total $686,000 in 2013 and
$1,373,000 for 2014. Projects include trail and pedestrian access improvements, an
upgrade of the Lakota Soccer fields and annual/major maintenance.
3. PUBLIC COMMENT
No public comment was provided.
4. ADJOURNMENT
Mayor Priest adjourned the meeting at 9:17 pm.
Attest:
,
Carol McNeilly, CMC, ity Clerk
Approved by Council on: November 6, 2012
City Council Minutes — October 24, 2012 Special Meeting Page 6 of 6