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FEDRAC PKT 09-27-2016FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE [FEDRAC] TUESDAY – September 27, 2016 FEDERAL WAY CITY HALL 4:30 P.M. AGENDA HYLEBOS ROOM 1.CALL TO ORDER 2.PUBLIC COMMENT 3.COMMITTEE BUSINESS Topic Title/Description Page # Presenter/ Time Allotted Action or Discussion A. APPROVAL OF SUMMARY MINUTES - AUGUST 23, 2016 2 R. BUCK 5 MINUTES ACTION 09/27 Committee B. RESOLUTION: SOLID WASTE AND RECYCLING 2017-2019 GRANT APPROVALS 6 R. VAN ORSOW 10 MINUTES ACTION 10/04 Council Consent C. MONTHLY FINANCIAL REPORT - AUGUST 2016 14 A. ARIWOOLA 10 MINUTES ACTION 10/04 Council Consent D. VOUCHERS – AUGUST 2016 30 A. ARIWOOLA 5 MINUTES ACTION 10/04 Council Consent 4.OTHER: •Budget and goal setting presentation •Popular Annual Financial Report •Fee schedule discussion •Economic Development update 5.FUTURE AGENDA ITEMS: NEXT MEETING: Tuesday, October 25, 2016 @ 4:30 City Staff: Dini Duclos, Chair Adé Ariwoola, Finance Director Susan Honda Robyn Buck, Administrative Assistant Martin Moore 253-835-2527 AMENDED Item added FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE [FEDRAC] TUESDAY – September 27, 2016 FEDERAL WAY CITY HALL 4:30 P.M. AGENDA HYLEBOS ROOM 1.CALL TO ORDER 2.PUBLIC COMMENT 3.COMMITTEE BUSINESS Topic Title/Description Page # Presenter/ Time Allotted Action or Discussion A. APPROVAL OF SUMMARY MINUTES - AUGUST 23, 2016 2 R. BUCK 5 MINUTES ACTION 09/27 Committee B. RESOLUTION: SOLID WASTE AND RECYCLING 2017-2019 GRANT APPROVALS 6 R. VAN ORSOW 10 MINUTES ACTION 10/04 Council Consent C. MONTHLY FINANCIAL REPORT - AUGUST 2016 14 A. ARIWOOLA 10 MINUTES ACTION 10/04 Council Consent D. VOUCHERS – AUGUST 2016 30 A. ARIWOOLA 5 MINUTES ACTION 10/04 Council Consent 4.OTHER: •Budget and goal setting presentation •Popular Annual Financial Report •Fee schedule discussion 5.FUTURE AGENDA ITEMS: NEXT MEETING: Tuesday, October 25, 2016 @ 4:30 p.m.Committee Members: City Staff: Dini Duclos, Chair Adé Ariwoola, Finance Director Susan Honda Robyn Buck, Administrative Assistant Martin Moore 253-835-2527 Tuesday, August 23, 2016 Page 1 City Council Finance/Economic Development/Regional Affairs Committee Tuesday, August 23, 2016 Federal Way City Hall 4:30 p.m. SUMMARY MINUTES Hylebos Conference Room CALL TO ORDER: Committee Chair Duclos called the meeting to order at 4:30 p.m. COMMITTEE MEMBERS IN ATTENDANCE: Councilmember Moore COMMITTEE MEMBER EXCUSED: Councilmember Honda COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge STAFF MEMBERS IN ATTENDANCE: Finance Director, Adé Ariwoola; Assistant City Attorney, Ryan Call; Dumas Bay Manager, Rob Ettinger; Parks Director, John Hutton; IT Manager, Thomas Fichtner; Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn Buck, OTHERS PRESENT: IT Intern, Brian Nguyen PUBLIC COMMENT: None APPROVAL OF SUMMARY MINUTES: Motion to approve the July 26, 2016 minutes as presented; motion seconded and carried 2-0. KNUTZEN FAMILY THEATER HVAC REPLACEMENT: Presented by Dumas Bay Manager, Rob Ettinger. The HVAC unit has not been replaced since the theater was built in 1998. The failed heat exchange is not repairable. Two bids were received with Air Tech Heating and Cooling as the apparent low bidder. This replacement is part of capital replacement for 2017. Motion to forward the authorization of a bid award to Air Tech Heating and Cooling to the September 6, 2016 City Council consent agenda for approval; motion seconded and carried 2-0. 2 Tuesday, August 23, 2016 Page 2 PHONE SYSTEM REPLACEMENT: Presented by IT Manager, Thomas Fichtner. The City’s 25 year old phone system has gone far beyond its useful life. We will be separated from South King Fire with the new phone system. Staff recommends going with Cisco phone system. This will be on a state contract. This will run over our data network with CentryLink as our vendor. There is a chance we may be able to sell the old system. The appropriated budget is $448,000 and the cost will be coming from the equipment replacement reserve. Motion to approve and forward the proposed City Phone System Replacement to the September 6, 2016 City Council consent agenda for approval; motion seconded and carried 2-0. COMMUNITY CENTER SURVEILLANCE SYSTEM REPLACEMENT: Presented by IT Manager, Thomas Fichtner. Technology has changed substantially since the current system was installed in 2008. There are several cameras currently not working. IT has $30,122 in reserves for a server that will store images and for the cameras. This project will cost $39,122. The additional $9,000 will come out of the Community Center Operational Budget. Motion to approve and forward the proposed cameras and accessories for the Community Center Surveillance System Replacement to the September 6, 2016 City Council consent agenda for approval; motion seconded and carried 2-0. VOUCHERS – JULY 2016: Presented by Finance Director, Adé Ariwoola. There were no questions or comments on the vouchers. Motion to approve and forward the July 2016 Vouchers to the September 6, 2016 consent agenda for approval; motion seconded and carried 2-0. 3 Tuesday, August 23, 2016 Page 3 MONTHLY FINANCIAL REPORT - JULY 2016: Presented by Finance Director, Adé Ariwoola. Mr. Ariwoola summarized the Monthly Financial Report for July 2016. Notable areas include: • Property Tax - Revenue is less than the year to date budget. Second wave will be coming in October. • FWCC – Operating revenue is below what is expected. There is a plan to increase the fee schedule for 2017. • Health Insurance – Is in the negative year to date fund balance because of a major claim this year. • Police Service – short by $19K or 3%. • Construction permit fees – We are down. The permit money for most of the construction happening now was received last year. • Sales Tax- 7.3% above the 2015 actual. • Dumas Bay – Revenue is $181K higher than last year. • Probation Revenue – Bringing in a little more revenue than the cost of providing the service – It is paying for itself. • Court Revenue – Short by $70K. Compared to last year, they are doing a little better. *Total revenue is up by about 2% compared to the year to date budget. Most of our funds are within where they are supposed to be. Motion to approve and forward the July 2016 Monthly Financial Report to the September 6, 2016 consent agenda for approval; motion seconded and carried 2-0. OTHER: • Council Budget – It is a department issue and the changes should be discussed with the Deputy Mayor. • CAFR – Clean audit. The CAFR will be presented to the Council after the Exit Conference. • PAFR – Is a breakdown of the CAFR for the citizens’ better understanding. • SAO Exit Conference – Proposed date is September 8, 2016. NEXT MEETING: Tuesday, September 27, 2016 @ 4:30 p.m. MEETING ADJOURNED: 5:38p.m. 4 6 7 8 9 10 11 12 13 14 August 2016 Monthly Financial Report - Highlights The following are highlights of the August 2016 Monthly Financial Report. Detailed financial information can be found in the August 2016 Monthly Financial Report detail. Notable Areas 1. Sales Tax is above 2015 year-to-date actuals by $525K or 6.8%. 2. Parks and General Recreation Fees is $110K or 15.6% above 2016 year-to-date budget due to a positive turnout in senior and inclusion programs. Parks & Recreation expenditures are under 2016 year-to-date budget by $10K or 0.4%. 3. Real estate excise tax is $438K or 21.2% above 2015 year-to-date collections. This is primarily due to some large commercial sales such as Weyerhaeuser in the last few months. Other large commercial sales this year were Rainier Meadows apartments, the Landing at Dash Point apartments, Twin Lakes Shopping Center, Clarion Hotel, and St. Francis Medical Center. 4. Dumas Bay Center is $99K or 18.3% above 2015 year-to-date collections. There has been an increase in retreat rentals at the facility. Expenses have increased by $66K or 13.0% above 2015 year-to-date expenses due to an increase in goods and services for the operation of the facility. General & Street Fund Summary Revenues are above the year-to-date budget by $466K or 2.1%. Sales Tax, State shared revenue, franchise fees, public works permits and fees, park & general recreation fees, and gambling tax revenues account for the majority of the increase. Leasehold tax, court revenue, probation revenue, community development permits & fees, and business license fees are below year-to-date budget. Total General & Street Fund expenditures are below year-to-date budget by $365K or 1.3%. The following Departments are above their projected year-to-date budget: Mayor’s Office. Mayor’s Office is over year-to-date budget by $10K primarily due to not having enough budgeted under health where employees moved from single to married increasing city’s contribution for personnel benefits, as well as an increase in advertising and sponsorship for events within the city. Public Works is under year-to-date budget by $161K primarily due to vacancy of positions within the year in the department, over projection of positions within the budget, and timing of contract payments. Property tax is above 2015 year-to-date actual by $52K or 0.6% and below 2016 year-to-date budget by $46K or 0.8%, primarily due to timing differences. Sales tax exceeds 2015 year-to-date actual by $525K or 6.8% and also exceeds 2016 year-to-date budget by $600K or 7.9%. Retail sales (increase of $130K or 3.3%), services (increase of $126K or 7.2%), information (increase of $77K or 21.3%), and construction (increase of $160K or 16.2%) account for the majority of the increase compared to year-to-date 2015. Additionally, criminal justice sales tax collected county-wide also exceeds 2015 year-to-date actual by $119K or 9.0% and 2016 year-to-date budget by $12K or 0.8% which further indicates growth. Community Development permits and fees are below the 2015 year-to-date actual by $791K or 42.0% and below 2016 year-to-date budget by $774K or 41.5%. The permits that primarily contribute to the decrease in 2016 under 2015 are Federal Way High School and Kitts Corner. Significant permit revenues received year-to-date include Uptown Square Apartments, Mirror Lake Village Senior Housing, and Church of Blessing. Court revenue is below 2015 year-to-date actual by $15K or 1.7% and below 2016 year-to-date budget by $66K or 9.4%. The City is no longer receipting other probation fees previously received by an outside party in Court operations, due to the new probation division in Court that started in the month of May. In addition, the Court is also under year-to-date budget in traffic and non-parking infractions due to the reallocation of the traffic unit to assist patrol officers in the gun violence initiative. Probation revenue is below 2016 year-to-date budget by 23K or 19.7%. We started receiving probation service revenue from the new probation division of the Municipal Court in May. Probation service is generating enough revenue to cover expenditures as planned. Park & General Recreation Fees is above 2015 year-to-date actual by $53K or 6.9% and above 2016 year-to-date budget by $110K or 15.6%. Senior trips and tours and inclusion program revenues increased through the efforts of staff to market and promote the programs. 15 Designated Operating Funds Expenditures are below 2016 year-to-date budget by $442K or 4.3% and are primarily due to timing of payments in Hotel/Motel Lodging Tax, Utility Tax Proposition 1, Traffic Safety, and Solid Waste & Recycling, and operational decreases in Surface Water Management due to vacancies of positions and timing of contract payments. Utility tax revenues received year-to-date as reported on the monthly financial report totals $6.5M and is $326K or 5.3% above 2015 year-to-date actual and $244K or 3.9% above 2016 year-to-date budget. The following is the comparison of 2016 year-to-date actual to 2015 year-to-date actual utility taxes by category: Electricity – current YTD increase by $323K or 14.4% Cable – current YTD increase by $37K or 3.8% Phone – current YTD decrease by $17K or 3.4% Cellular – current YTD decrease by $36K or 3.6% Real estate excise tax 2016 year-to-date revenues of $2.5M is above 2015 year-to-date actual by $438K or 21.2% and is above the 2016 year-to-date budget by $1.1M or 84.4%. There were 188 taxable residential sales for the month of August (total sales $51.9M / $257K tax), and two commercial sales (total sales $6.5M / $32K tax). The Weyerhaeuser sale of $70.5M accounted for $349K of the $2.2M tax received. Other large commercial sales this year were Rainier Meadows apartments (sale of $16.9M, $84K tax), the Landing at Dash Point apartments (sale of $46.0M, $264K tax), Twin Lakes Shopping Center (sale of $10.2M, $50K tax), Clarion Hotel (sale of $8.95M, $44K tax), and St. Francis Medical Center (sale of $14.5M, $72K tax). Federal Way Community Center 2016 year-to-date operating revenues total $1.3M, which is above the 2016 year-to-date budget by $6K or 0.4% but below the 2015 year-to-date actual by $33K or 2.5%. Revenues that fell behind year-to-date revenue projections were passes, childcare fees, and fitness classes. Revenues that have fallen behind 2015 year-to-date actuals are youth athletic programs, aquatic programs, fitness classes, and rentals. Revenues that performed better than year-to-date projections were daily drop-ins, aquatic programs, and pool and facility rentals. 2016 year-to-date operating expenditures total $1.5M, which is above the 2016 year-to-date budget by $10K or 0.7% and above 2015 year-to-date actuals by $29K or 2.0%. Compared to year-to-date budget: Utility costs are lower due to timing of payments and improved energy efficiency. This is offset by personnel costs and supplies that have increased due to increased service levels to meet higher demands, supply needs and inventories, and building repairs. The 2016 year-to-date revenues over / (under) expenditures of ($156K) is performing under the 2016 year-to-date budget of ($151K) by $5K, and is performing poorer than the 2015 year-to-date actual by ($62K). To date, $159K of operating subsidy has been used to keep the reserve fund balance at $1.5M, compared to $86K at this time last year. Therefore, the Federal Way Community Center is performing below 2015 actuals. The fund balance is at its required level of $1.5 million. The fund balance is set aside for equipment replacement, major building upgrades, and roof replacement of the Community Center Building. Dumas Bay Centre 2016 year-to-date operating revenues total $642K, which is $186K or 40.9% above the 2016 year-to-date budget, and above 2015 year-to-date actual by $99K or 18.3%. The increase from year-to-date 2015 is due to an increase in rental activities as a result of the marketing plan that was commissioned in 2011, the Google AdWords campaign put into action from the marketing plan as well as securing the return of rental groups. 2016 year-to-date operating expenses total $575K, which is $98K or 20.6% above the 2016 year-to-date budget and $66K above 2015 year-to-date actual. The increase in expenses over year-to-date 2016 is due to an increase in goods and services for the operation as well as the increase in rental activity for the first eight months. 2016 year-to-date revenues over/(under) expenditures of $66K is above 2015 year-to-date by $33K. Dumas Bay Centre has recovered 111.53% of operating expenditures compared to 106.59% last year. The year-to-date fund balance of $770K is a reserve for future general capital needs of the building. These funds are set aside for equipment replacement, major building upgrades, and roof replacement of the center. Lakehaven Utility District The City signed an agreement with Lakehaven early this year for a 3.6% franchise fee, and in exchange the City will pay for the fire hydrant maint. and street lights that were initially paid for by Lakehaven and charged to the citizens. The franchise fees received thru August are $141K and billing from Lakehaven for the fire hydrants is $155K. 16 August 2016 Monthly Financial Report - Detail 2015 2016 YTD Budget vs. Actual AnnualAnnualYTDAnnualYTDYTDFavorable/(Unfavorable) BudgetActualActualBudgetBudgetActual$% Beginning Fund Balance 13,264,105$ 13,264,105$ 13,264,105$ 12,006,584$ 12,006,584$ 12,006,584$ n/an/a Revenues: Property Taxes 10,342,770 10,305,144 5,532,705 10,486,454 5,630,048 5,584,403 (45,645) -0.8% Sales Tax 12,962,420 13,297,086 7,699,202 13,221,293 7,624,786 8,224,589 599,803 7.9% Criminal Justice Sales Tax 2,273,430 2,319,124 1,321,594 2,507,007 1,428,663 1,440,366 11,704 0.8% Gambling Taxes 155,000 178,118 97,943 155,000 86,324 96,324 10,000 11.6% State Shared Revenue 2,483,000 2,559,940 1,291,024 2,483,000 1,252,222 1,521,587 269,365 21.5% Leasehold Tax 6,000 6,104 5,023 6,000 4,938 2,800 (2,138) -43.3% Court Revenue 1,551,550 1,441,207 940,072 1,471,550 991,167 924,696 (66,471) -6.7% Probation Revenue - - - 354,345 118,115 94,810 (23,305) -19.7% CD Permits & Fees 2,572,000 2,698,841 1,881,776 2,572,000 1,865,415 1,091,059 (774,356) -41.5% PW Permits & Fees 317,000 520,249 191,698 317,000 178,929 232,642 53,713 30.0% Business License Fees 259,000 267,500 97,495 259,000 94,397 92,908 (1,489) -1.6% Franchise Fees 1,050,000 1,113,436 832,326 1,050,000 784,906 871,904 86,999 11.1% Lakehaven Franchise Fees - - - - - 141,430 141,430 n/a Passport Agency Fees 65,000 74,275 55,625 65,000 48,679 49,775 1,096 2.3% Park & General Recreation Fees 937,000 1,012,820 760,169 937,000 703,262 812,903 109,641 15.6% Police Services 984,000 1,124,278 658,007 1,174,766 687,555 679,524 (8,031) -1.2% Admin/Cash Management Fees 375,896 375,896 250,597 375,896 250,597 250,597 0 0.0% Interest Earnings 31,000 27,090 16,135 31,000 18,464 35,022 16,558 89.7% Miscellaneous/Other/Grants 723,276 977,941 521,969 803,002 428,596 516,001 87,405 20.4% Total Revenues37,088,342 38,299,050 22,153,360 38,269,313 22,197,063 22,663,339 466,277 2.1% Expenditures: City Council 393,975 363,550 266,795 378,928 265,250 265,224 26 0.0% Mayor's Office 1,511,439 1,511,600 860,727 1,355,288 928,281 938,740 (10,459) -1.1% Community Development 2,296,033 2,222,664 1,468,249 2,335,518 1,522,291 1,417,777 104,514 6.9% Economic Development 232,238 201,997 136,700 349,430 236,474 193,820 42,654 18.0% Human Services 834,592 743,184 489,609 897,464 591,249 510,638 80,611 13.6% Finance 908,534 883,629 614,577 941,111 648,802 604,669 44,133 6.8% Human Resources 874,337 817,304 428,478 982,708 515,192 497,346 17,847 3.5% Law 1,316,420 1,299,173 835,044 1,316,670 877,780 871,098 6,682 0.8% Municipal Court 1,326,071 1,311,919 876,923 1,365,125 910,083 899,914 10,169 1.1% Probation - - - 354,345 118,115 95,548 22,567 19.1% Jail 4,436,614 4,455,713 2,964,692 5,518,134 3,678,756 3,648,946 29,810 0.8% Police 18,237,744 18,678,114 12,361,399 19,352,740 12,909,580 12,908,233 1,347 0.0% Parks & Recreation 3,548,663 3,682,473 2,415,944 3,798,675 2,574,343 2,564,202 10,141 0.4% Lakehaven Fire Hydrant/Street Light - - - - - 155,487 (155,487) n/a Public Works 4,069,657 3,506,800 2,302,339 3,869,332 2,152,896 1,992,025 160,872 7.5% Total Expenditures39,986,317 39,678,121 26,021,476 42,815,468 27,929,091 27,563,667 365,424 1.3% Revenues over/(under) Expenditures(2,897,975) (1,379,071) (3,868,116) (4,546,155) (5,732,029) (4,900,328) 831,701 -14.5% Other Sources: Ongoing Transfers In: Traffic Safety for Operations 155,000 155,000 155,000 1,780,609 1,780,609 1,780,609 - 0.0% Utility Tax for Designated Programs 498,000 248,818 30,000 498,000 - - - n/a Utility Tax for Operations 6,495,929 5,103,008 3,550,048 7,813,661 5,679,541 5,679,541 - 0.0% Total Other Financing Sources7,148,929 5,506,826 3,735,048 10,092,270 7,460,150 7,460,150 - 0.0% Other Uses: 1-Time Transfers Out/Other 127,988 127,988 95,266 2,727,481 1,388,111 1,388,111 - 0.0% Non-Departmental Internal Service Charges5,662,989 5,257,284 3,535,770 5,308,130 3,678,288 3,678,288 Total Other Financing Uses5,790,977 5,385,272 3,631,036 8,035,611 5,066,399 5,066,399 - 0.0% Total Ending Fund Balance 11,724,082$ 12,006,587$ 9,500,000$ 9,517,088$ 8,668,306$ 9,500,007$ n/an/a GENERAL & STREET FUND SUMMARY 17 2015 2016 YTD Budget vs. Actual AnnualAnnualYTDAnnualYTDYTD Favorable/(Unfavorable) BudgetActualActualBudgetBudgetActual$% Beginning Fund Balance 21,407,791$ 21,407,792$ 21,407,792$ 23,403,005$ 23,403,010$ 23,403,010$ n/an/a Revenues: Utility Tax 8,735,934 9,129,221 4,727,329 8,905,924 4,829,059 5,017,357 188,298 3.9% Utility Tax - Prop 1 Voter Package 2,555,856 2,667,329 1,431,998 2,597,824 1,412,204 1,467,552 55,347 3.9% Hotel/Motel Lodging Tax 200,000 266,053 138,453 200,000 102,979 147,014 44,035 42.8% Real Estate Excise Tax 3,100,000 3,031,159 2,062,338 2,100,054 1,356,254 2,500,403 1,144,149 84.4% Property Tax - King Co Expansion Levy155,000 177,780 84,518 160,000 93,759 93,759 - 0.0% State Shared Revenue 509,000 510,660 285,568 509,000 284,639 299,315 14,676 5.2% Traffic Safety (Red Light/School Zone)2,773,643 3,012,004 1,956,221 2,418,746 1,570,915 2,198,248 627,333 39.9% Federal Way Community Center 1,885,500 1,867,493 1,341,413 1,818,500 1,302,674 1,308,231 5,557 0.4% Dumas Bay Centre Fund 697,251 760,332 542,505 635,251 455,386 641,607 186,222 40.9% Surface Water Management Fees 3,820,000 3,871,256 2,102,099 3,900,000 2,117,707 2,150,325 32,618 1.5% Refuse Collection Fees 302,517 300,983 200,847 304,517 203,205 202,444 (762) -0.4% Interest Earnings 11,800 39,838 16,962 11,800 51,993 51,993 - 0.0% Miscellaneous/Other/Grants 240,807 310,314 74,601 257,578 141,191 141,191 - 0.0% Total Revenues24,987,308 25,944,421 14,964,853 23,819,194 13,921,968 16,219,440 2,297,472 16.5% Expenditures: Arterial Streets Overlay Program 1,724,205 1,336,390 1,257,805 1,713,886 1,515,862 1,515,862 - 0.0% Solid Waste & Recycling 501,031 478,807 307,600 464,622 298,487 293,670 4,817 1.6% Hotel/Motel Lodging Tax 355,296 180,180 122,718 200,300 136,421 17,376 119,045 87.3% Traffic Safety (Red Light/School Zone)2,123,644 1,994,792 1,340,260 2,184,228 1,467,538 1,419,025 48,513 3.3% Utility Tax Proposition 1 2,841,965 2,782,463 1,840,805 2,931,340 1,939,298 1,826,221 113,077 5.8% Debt Service (Debt & Admin Fee)1,039,573 1,005,479 182,286 812,123 147,232 171,061 (23,829) -16.2% Federal Way Community Center 2,170,024 2,178,525 1,435,397 2,215,641 1,453,788 1,464,081 (10,293) -0.7% Performing Arts & Conf Ctr Operations27,989 15,387 4,519 412,135 121,091 121,091 - 0.0% Dumas Bay Centre Fund 769,243 785,763 508,983 736,999 476,871 575,293 (98,422) -20.6% Surface Water Management 3,810,626 3,434,780 2,328,081 3,912,789 2,652,074 2,362,978 289,096 10.9% Total Expenditures15,363,596 14,192,567 9,328,455 15,584,063 10,208,663 9,766,659 442,004 4.3% Revenues over/(under) Expenditures9,623,712 11,751,855 5,636,398 8,235,131 3,713,305 6,452,781 2,739,476 73.8% Other Sources: Ongoing Transfers In: Utility Tax for DBC Oper/Reserves 233,659 483,659 233,659 112,000 112,000 112,000 - 0.0% Utility Tax for FWCC Oper/Reserves396,754 396,754 85,778 380,000 158,802 158,802 - 0.0% Utility Tax for FWCC Debt 810,773 810,773 177,886 812,123 449,666 449,666 - 0.0% Utility Tax for Arterial Streets Overlay1,013,000 760,885 745,142 1,013,000 1,013,000 1,013,000 - 0.0% 1-Time Transfers 1,908,455 1,873,937 813,240 4,086,344 3,180,716 3,180,716 - 0.0% Total Other Sources4,362,641 4,326,008 2,055,705 6,403,467 4,914,184 4,914,184 - 0.0% Other Uses: Ongoing Transfer Out: Traffic Safety (Red Light/School Zone)- - - 1,990,609 1,780,609 1,780,609 - 0.0% Utility Tax to PAEC Oper - - - 376,805 101,304 101,304 - 0.0% Utility Tax to FWCC Oper/Reserves396,754 396,754 85,778 380,000 158,802 158,802 - 0.0% Utility Tax to FWCC Debt 810,773 810,773 177,886 812,123 812,123 812,123 - 0.0% Utility Tax to DBC Oper/Reserves 233,659 483,659 233,659 112,000 112,000 112,000 - 0.0% Utility Tax to Arterial Streets Overlay1,013,000 760,885 745,142 1,013,000 1,013,000 1,013,000 - 0.0% Utillity Tax to General/Street Oper6,690,493 5,028,390 3,580,048 7,331,661 4,679,545 4,679,545 - 0.0% 1-Time Transfers/Other/Unalloc IS 6,823,701 6,602,184 5,209,183 8,095,351 5,821,926 5,821,926 - 0.0% Total Other Uses15,968,380 14,082,645 10,031,696 20,111,549 14,479,309 14,479,309 - 0.0% Ending Fund Balance Arterial Streets Overlay 100,000 298,388 100,001 100,000 - 116,546 n/an/a Utility Tax (non-Prop 1)2,029,152 4,120,012 1,961,085 1,842,718 - 1,499,997 n/an/a Utility Tax - Prop 1 Voter Package 548,462 719,485 400,543 1,027,462 - 1,000,001 n/an/a Solid Waste & Recycling 177,821 208,857 124,719 175,352 - 186,691 n/an/a Hotel/Motel Lodging Tax 245,300 501,765 421,370 501,765 - 632,783 n/an/a Federal Way Community Center 1,483,499 1,500,002 1,500,000 1,516,500 - 1,500,000 n/an/a Traffic Safety Fund 3,241,744 3,614,117 3,534,224 1,858,026 - 2,620,009 n/an/a Real Estate Excise Tax Fund 3,508,627 3,445,070 3,525,686 2,000,000 - 3,215,207 n/an/a Performing Arts & Conf Ctr Operations (1) 12,608 5,485 (1) - 0 n/an/a Paths & Trails 360,664 384,357 286,718 553,356 - 484,742 n/an/a Strategic Reserve Fund 3,012,279 3,085,472 3,220,475 3,418,340 - 3,397,634 n/an/a Parks Reserve Fund 250,000 250,000 - 750,000 - 751,601 n/an/a Debt Service Fund 1,471,153 1,471,579 868,760 2,499,999 - 2,783,510 n/an/a Surface Water Management 2,964,197 3,392,481 2,724,240 1,082,868 - 1,331,481 n/an/a Dumas Bay Centre Fund 32,867 398,817 394,894 603,669 - 770,461 n/an/a Total Ending Fund Balance 19,425,764$ 23,403,010$ 19,068,200$ 17,930,054$ -$ 20,290,664$ n/an/a DESIGNATED OPERATING FUNDS SUMMARY 18 Sales Tax Compared to year-to-date August 2015 actual, sales tax revenues are up by $54K or 4.3%. Compared to 2016 year-to-date budget, year-to-date sales tax revenues went up by $600K or 7.9%. There is usually a two month lag in sales tax revenue. The sales tax collected for June 2016 is paid to the City in August 2016. LOCAL RETAIL SALES TAX REVENUES YTD August Favorable/(Unfavorable) 20152016Change from 2015YTD Actual vs Budget MonthActualBudgetActual$ %$% Jan-$ - - - - - - Feb1,353,180 1,322,183 1,407,385 54,205 4.0%85,202 6.4% Mar 912,804 933,423 967,408 54,604 6.0%33,986 3.6% Apr 952,455 950,298 1,031,972 79,517 8.3%81,675 8.6% May1,088,938 1,081,896 1,169,154 80,217 7.4%87,258 8.1% Jun 1,044,900 1,024,472 1,148,897 103,997 10.0%124,425 12.1% Jul 1,092,791 1,076,360 1,191,650 98,859 9.0%115,290 10.7% Aug1,254,134 1,236,154 1,308,122 53,987 4.3%71,967 5.8% Sep1,144,483 1,145,777 - - - - - Oct1,123,740 1,124,519 - - - - - Nov1,137,158 1,152,099 - - - - - Dec2,192,502 2,174,112 - - - - - YTD Total 7,699,202$ 7,624,786$ 8,224,588$ 525,386$ 6.8%599,803$ 7.9% Annual Total 13,297,086$ 13,221,293$ n/an/an/an/an/a COMPARISON OF SALES TAX COLLECTIONS BY SIC GROUP Favorable/(Unfavorable) Component2015 YTD2016 YTD Change from 2015 GroupAugustAugust$%Explanation Retail Trade3,912,644$ 4,042,628$ 129,983$ 3.3%Up $164K - Motor Vehicle & Parts Dealer, Furniture and Home Furnishings, Electronics and Appliances, Building Material and Garden, Health and Personal Care Stores, Clothing and Accessories, General Merchandise Stores, Sporting Goods, Hobby, Books and Nonstore Retailers Down $34K - Food and Beverage Stores, and Miscellaneous Retailers Services 1,753,242 1,879,696 126,454 7.2%Up $161K - Professional, Scientific, Tech, Administrative & Support Services, Educational Services, Waste Management Remediation, Ambulatory Health Care Service, Accomodation, Food Services & Drinking Places, Repair & Maintenance & Personal Laundry Services, Hospitals, Religious, Grantmaking, Civic Down $35K - Nursing & Residential Care, Amusement, Gambling Construct 993,741 1,154,231 160,490 16.2%Up $160K - Construction of Buildings, Heavy & Civil Construction, Specialty Trade Wholesaling 319,638 279,709 (39,929) -12.5%Up $6K - Wholesale Trade, Nondurable goods Down $46K - Wholesale Trade, Durable goodsTransp/Utility 2,826 2,248 (578) -20.5%General Decrease Information 360,700 437,366 76,666 21.3%Up $77K - Internet Service Providers, Publishing Industries, Telecommunications, Other Information Services, Motion Picture, Sound Record Manufacturing 71,726 80,444 8,717 12.2%Up $18K Wood Product Manufacturing, Printing & Related Support, Nonmetallic Mineral Products, Computer & Electronic Products, Machinery Manufacturing Down $9K - Food Manufacturing, Textile Mills, Apparel Manufacturing, Chemical Manufacturing, Fabricated Metal Manufacturing, Furniture & Related Products Government 91,898 102,200 10,302 11.2%Up $23K - Economic Programs Admin, Justice, Public Order, Safety Down $12K - Executive, Legislative, Other Fin/Insurance /Real Estate 164,211 191,283 27,072 16.5%Up $30K - Real Estate, Credit Intermediation, Rental & Leasing Services, Insurance Carriers and Related Down $3K - Securities, Commodities, Other Other 28,574 54,784 26,210 91.7%General Increase 7,699,202$ 8,224,588$ 525,386$ 6.8% 19 SALES TAX COMPARISON by AREA YTD August 2016 Favorable/(Unfavorable) Chg from 2015 Location20152016$%Explanation YTD Total Sales Tax7,699,202$ 8,224,588$ 525,386$ 6.8% S 348th Retail Block1,176,651 1,213,744 37,092 3.2%Up $95K Retail Automative/Gas, Retail Building Materials, Retail General Merchandise, Furniture & Fixtures, Retail Eating & Drinking, Electronics & Appliances Down $58K Retail Miscellaneous Stores The Commons663,316 672,986 9,670 1.5%Up $37K Misc Retail Trade Down $27K Retail Apparel & Accessories, Retail Eating & Drinking, Retail Electronics & Appliances S 312th to S 316th448,302 454,081 5,779 1.3%Up $9K Retail General Merchandise, Retail Eating & Drinking, Misc Retail Trade Down $3K Retail Automative/Gas Pavilion Center263,147 269,412 6,266 2.4%Up $6K Electronics and Appliances Hotels & Motels141,992 145,537 3,545 2.5%General Increase Gateway Center91,099 123,582 32,483 35.7%Up $36K Telecommunications, Food/Beverage Stores, Health & Personal Care Stores Down $4K Motion Picture/Sound Utility Tax (Total 7.75%) The utility taxes year-to-date is $326K or 5.3% above 2015 year-to-date actual and $244K or 3.9% above 2016 year-to-date budget. There is usually a two month lag in utility tax revenue. The utility tax collected for June 2016 is paid to the City in August 2016. UTILITY TAXES Year-to-date thru August Favorable/(Unfavorable) 20152016Change from 2015YTD Actual vs Budget MonthActualBudgetActual$ Var% Var$ Var% Var Jan777$ 767$ 535$ (242)$ -31.2%(233)$ -30.3% Feb962,766 892,683 1,140,130 177,364 18.4%247,446 27.7% Mar1,055,119 1,211,938 1,111,608 56,488 5.4%(100,330) -8.3% Apr1,073,824 744,024 1,125,890 52,066 4.8%381,866 51.3% May326,129 714,810 289,114 (37,015) -11.3%(425,696) -59.6% Jun1,524,811 1,463,463 1,536,627 11,816 0.8%73,164 5.0% Jul774,995 579,627 851,015 76,020 9.8%271,388 46.8% Aug456,814 660,923 444,239 (12,575) -2.8%(216,683) -32.8% Sept1,038,431 904,409 - - - - - Oct1,270,562 1,191,652 - - - - - Nov557,086 542,851 - - - - - Dec2,771,145 2,623,600 - - - - - YTD Subtotal6,175,235$ 6,268,236$ 6,499,157$ 323,922$ 5.2%230,922$ 3.7% Rebate(15,908) (26,972) (14,249) 1,659 0.0%12,724 -47.2% YTD Total6,159,327$ 6,241,263$ 6,484,909$ 325,581$ 5.3%243,645$ 3.9% Annual Total11,796,551$ 11,503,748$ n/an/an/an/an/a The City of Federal Way provides a utility tax rebate for qualifying individuals that have paid for Utility bills within the City of Federal Way, who are 65 years or older, disabled/unable to work, and qualify as low income during the affected calendar year. This is an annual program that opens January 1st and closes April 30th of each year. The City processed 156 rebates at a total cost of $16K in 2015. The City processed 132 rebates at a total cost of $14K in 2016. 20 UTILITY TAXES - by Type Year-to-date thru August Favorable/(Unfavorable) Utility2015 2016Change from 2015 TypeActualActual $ % Electric2,236,831$ 2,559,588$ 322,756$ 14.4% Gas816,532 819,136 2,604 0.3% Solid Waste531,542 541,408 9,866 1.9% Cable956,172 992,770 36,598 3.8% Phone487,145 470,625 (16,519) -3.4% Cellular982,014 946,469 (35,545) -3.6% Pager274 180 (94) n/a SWM164,725 168,982 4,256 2.6% Tax Rebate(15,908) (14,249) 1,659 0.0% YTD Total6,159,327$ 6,484,909$ 325,581$ 5.3% Proposition 1 Voter-Approved Utility Tax 2016 Year-to-date Prop 1 expenditures total $1.8M or 62.3% of the $2.9M annual budget. Current life-to-date Prop 1 Utility tax collections total $27.6M and expenditures total $26.6M. 2015 2016 Life BudgetActualBudgetActualTo Date Beginning Balance:834,603 834,603 719,485 719,485 n/a OPERATING REVENUES January 172 175 173 121 1,604,144 February 187,628 177,728 201,117 257,695 2,349,155 March 308,182 297,286 273,044 251,171 2,884,123 April 98,809 112,871 167,625 254,383 2,426,614 May 244,602 234,426 161,043 65,574 2,311,699 June 318,955 314,071 329,711 347,323 2,658,720 July 90,036 93,050 130,587 192,576 1,952,573 August 193,223 202,390 148,903 100,684 1,932,000 September 176,723 197,173 203,759 - 1,667,067 October 253,572 286,955 268,474 - 2,168,937 November 120,120 125,844 122,302 - 1,704,254 December 563,833 625,376 591,085 - 3,353,143 Total Prop 1 Revenues:2,555,856 2,667,345 2,597,824 1,469,527 27,012,428 Transfer in from Utility Tax Fund 641,494 637,210 637,210 OPERATING EXPENDITURES Public Safety Improvement Positions & Costs: Police Services (includes 1 Records Specialist, 16 Police Officers, & 2 Lieutenants)2,214,883 2,193,288 2,286,294 1,477,005 20,030,391 Court Services (includes .50 Judge, 1 Court Clerk, and Pro Tem Pay, Public Defender contract, 1.5 Prosecutors)371,090 364,464 378,690 193,751 3,323,393 Total Public Safety Improvement Costs 2,585,973 2,557,752 2,664,984 1,670,756 23,353,783 Community Safety Program Costs: 1 Code Enforcement Officer 101,268 77,971 107,497 47,768 444,596 .5 Assistant City Attorney 58,052 51,997 61,391 36,780 563,766 1 Parks Maintenance Worker I & Security 96,672 94,744 97,469 70,917 960,802 Total Community Safety Improvement Costs 255,992 224,712 266,356 155,465 1,969,163 Indirect Support - HR Analyst - - - - 291,695 SafeCity M&O - - - - 245,929 Subtotal Ongoing Expenditures - - - - 537,624 SafeCity Startup - - - - 189,066 Other Transfer - Prop 1 OT for Police - - - - 600,000 Subtotal Other Expenditures - - - - 789,066 Total Prop 1 Expenditures:2,841,965 2,782,464 2,931,340 1,826,221 26,649,637 Total Ending Fund Balance:548,494$ 719,485$ 1,027,463$ 1,000,000$ 1,000,000$ PROP 1 21 Real Estate Excise Tax Compared to 2015 year-to- date actuals, collections are up $438K or 21.2%. August's receipt of $289K is below August 2015's actual by $35K or 10.9% and above August 2016's projections by $99K or 51.8%. August 2016 activities include 283 real estate transactions, of which 93 were tax exempt. There were 188 taxable residential sales (total sales $51.9M / $257K tax), and two commercial sales (total sales $6.5M / $32K tax). Hotel/Motel Lodging Tax Hotel/Motel lodging tax received year-to-date in 2016 is $147K and is above 2015's year-to-date collections by $9K or 6.2%. 2016 year-to-date receipts are above year- to-date projections by $44K or 42.8%. The lodging tax collected for June 2016 is paid to the City in August 2016. Permit Activity Building, planning, and zoning permit activities are below 2015's year-to-date activity by $791K or 42.0%. Compared to year-to-date budget, permit activity is below by $774K or 41.5%. The permits that have primarily contributed to the decrease are the Federal Way High School and Kitts Corner permits. BUILDING & LAND USE PERMITS AND FEES (CD) Year-to-date thru August Favorable/(Unfavorable) 20152016Change from 20152016 Actual vs Budget MonthActualBudgetActual$%$% Jan100,841 161,244 186,036 85,195 84.5%24,793 15.4% Feb 512,848 237,487 89,756 (423,092) -82.5%(147,731) -62.2% Mar 167,455 236,108 155,317 (12,138) -7.2%(80,791) -34.2% Apr 322,691 243,715 132,987 (189,703) -58.8%(110,728) -45.4% May 193,125 253,998 142,079 (51,046) -26.4%(111,920) -44.1% Jun 126,129 283,552 162,842 36,713 29.1%(120,710) -42.6% Jul 307,392 212,887 109,407 (197,985) -64.4%(103,480) -48.6% Aug 151,296 236,423 112,635 (38,661) -25.6%(123,788) -52.4% Sept 233,908 207,518 - - - - - Oct 300,673 205,686 - - - - - Nov 87,568 122,133 - - - - - Dec 194,915 171,248 - - - - - YTD Total1,881,776$ 1,865,415$ 1,091,059$ (790,717)$ -42.0%(774,356)$ -41.5% Annual Total2,698,841$ 2,572,000$ n/an/an/an/an/a HOTEL/MOTEL LODGING TAX REVENUES Year-to-date thru August Favorable/(Unfavorable) 20152016Change from 20152016 Actual vs Budget MonthActualBudgetActual$ % $ % Jan-$ -$ -$ -$ - -$ - Feb 15,336 11,307 15,431 95 0.6%4,124 36.5% Mar 13,489 10,778 15,983 2,494 18.5%5,205 48.3% Apr 16,825 13,230 20,565 3,741 22.2%7,336 55.5% May 19,890 15,441 22,013 2,123 10.7%6,572 42.6% Jun 17,024 12,968 19,591 2,567 15.1%6,623 51.1% Jul 21,320 15,530 22,788 1,468 6.9%7,258 46.7% Aug 34,569 23,726 30,642 (3,927) -11.4%6,916 29.2% Sept 34,823 25,890 - - - - - Oct 33,195 25,833 - - - - - Nov 24,271 18,448 - - - - - Dec 35,312 26,848 - - - - - YTD Total138,453$ 102,979$ 147,014$ 8,561$ 6.2%44,035$ 42.8% Annual Total266,052$ 200,000$ n/an/an/an/an/a REAL ESTATE EXCISE TAX REVENUES Year-to-date thru August Favorable/(Unfavorable) 20152016Change from 2015YTD Actual vs Budget MonthActualBudgetActual$ % $ % Jan155,922$ 88,891$ 386,409$ 230,486$ 147.8%297,517$ 334.7% Feb150,860 85,803 533,534 382,674 253.7%447,730 521.8% Mar331,315 190,440 165,413 (165,903) -50.1%(25,027) -13.1% Apr 148,984 108,153 245,886 96,902 65.0%137,734 127.4% May 302,118 263,063 220,243 (81,875) -27.1%(42,820) -16.3% Jun 345,929 200,619 328,219 (17,711) -5.1%127,599 63.6% Jul 302,572 228,712 331,410 28,838 9.5%102,698 44.9% Aug 324,637 190,573 289,291 (35,346) -10.9%98,718 51.8% Sep 199,688 132,748 - - - - - Oct 246,044 154,515 - - - - - Nov 189,651 152,587 - - - - - Dec 333,438 303,951 - - - - - YTD Total 2,062,338 1,356,254 2,500,403 438,066 21.2%1,144,149 84.4% Annual Total 3,031,159$ 2,100,054$ n/an/an/an/an/a 22 Police Department The total overtime budget of $949K consists of $767K for City overtime and $182K for billable time. Compared to 2016 year-to-date budget, City’s portion of overtime is $156K or 30.3% above year-to-date projections. Compared to year-to-date 2015 actuals, City’s portion of overtime is above by $69K or 11.4%. Including the decrease in billable overtime, total overtime increased by $4K or 0.6% over the same time last year. The August overtime decrease of $7K below 2015 year-to-date actual is due to a decrease in shift call-in. Although overtime is above year-to-date budget, the total of Police salaries, wages, and benefits is still under year-to-date budget. Jail Services The total jail budget is $5.52M and it is for SCORE Jail maintenance & operation assessments and alternative programs. Debt service is being paid for by SCORE reserves in 2016. At the original 2007 projections, the Average Daily Population (ADP) was projected at 60 in-mates, which was the 3rd highest, out of the seven member cities. In 2015 based on 2014 activity, ADP was projected at 93 in-mates. In 2012, the budgeted ADP for Federal Way was 60, but actual ADP was never below 65, and at one point ADP was above 105. In 2013, the budgeted ADP for Federal Way was 90 ADP, but actual ADP was never below 75, and at its height ADP was about 90. In 2014, the budgeted ADP was 95, and year-to-date the ADP at its highest point was 95, and at its lowest was just above 75 ADP. When ADP increases, the jail costs increase. Renton which was once the highest in 2007, is now second behind Federal Way. In 2016, the budgeted ADP is 105 and our ADP in August was 81. In 2015, the August ADP was 85. Other jail & alternative programs are provided by King County and Providence Community for psychiatric care. As of the end of July the City spent $76,856 on these services that are not currently being provided by SCORE. Jail and Alternatives to Confinement 20152016 Annual ActualAnnual BudgetYTD BudgetYTD Actual SCORE4,276,614$ 5,358,134$ 3,572,089$ 3,572,089$ Other Jail & Alternative Programs179,099 160,000 106,667 76,856 Subtotal M&O4,455,713 5,518,134 3,678,756 3,648,945 Subtotal Debt Service- - - - Total 4,455,713$ 5,518,134$ 3,678,756$ 3,648,945$ PD Overtime by Type Year-to-date thru August (Favorable)/Unfavorable 20152016 Change from 2015 TypeActualActual$% Training9,636$ 18,153$ 8,517$ 88.4% Court20,487 31,746 11,260 55.0% Field Oper 520,477 553,421 32,944 6.3% Other 50,055 66,469 16,414 32.8% City Portion600,655 669,789 69,134 11.5% Contract/Grant131,134 68,194 (62,940) -48.0% Traffic School16,694 14,845 (1,849) -11.1% Billable 147,828 83,039 (64,789) -43.8% YTD Total 748,483$ 752,828$ 4,345$ 0.6% PD Overtime by Month Year-to-date thru August (Favorable)/Unfavorable 20152016Change from 20152016 Actual vs Budget MonthActualBudgetActual$%$% Jan92,125$ 67,712$ 70,394$ (21,731)$ -23.6%2,683$ 4.0% Feb 61,090 63,817 92,574 31,484 51.5%28,757 45.1% Mar 61,169 56,049 64,708 3,540 5.8%8,660 15.5% Apr 55,955 58,564 76,909 20,954 37.4%18,345 31.3% May 84,365 69,262 100,057 15,693 18.6%30,796 44.5% Jun 81,812 58,773 95,848 14,036 17.2%37,075 63.1% Jul 90,427 81,613 102,254 11,827 13.1%20,641 25.3% Aug 73,713 58,298 67,044 (6,669) -9.0%8,746 15.0% Sep 55,110 61,969 - - - - - Oct 54,986 71,191 - - - - - Nov 64,356 55,726 - - - - - Dec 52,418 64,183 - - - - - City Portion600,655 514,087 669,789 69,134 11.4%155,703 30.3% Billable147,828 108,738 83,039 (64,789) -43.8%(25,699) -23.6% YTD Total748,483$ 622,825$ 752,828$ 4,345$ 0.6%130,003$ 20.9% Billable -$ 73,047$ -$ -$ - -$ - Annual Total 948,940$ n/an/an/an/an/a 23 Traffic Safety - Red Light / School Zone Traffic Safety Red light & school zone enforcement revenues are accounted for in the Traffic Safety Fund to be used for, but not limited to, prevention, education, and enforcement efforts related to traffic safety and compliance with traffic control devices within the City, including maintenance and operations costs. Traffic Safety Fund pays for 1 Lieutenant, 7 Police Officers, 3 City Traffic positions, Municipal Court security services, red light photo services, Valleycomm emergency communication services, and School Zone Enhancements capital improvement projects. Red Light Photo/School Zone Enforcement 20152016 Variance Favorable/(Unfavorable) Month Gross Revenue Payments to ATS Salaries & Wages & Crt Security Net Revenue Gross Revenue Payments to ATS Salaries & Wages & Crt Security Net Revenue$ Variance% Variance Jan 214,295$ (52,250)$ (116,987)$ 45,058$ 245,938$ (52,250)$ (114,179)$ 79,509$ 34,450$ 76.5% Feb 276,824 (52,250) (118,560) 106,014 276,364 (52,250) (124,988) 99,126 (6,888) -6.5% Mar 182,243 (23,750) (129,774) 28,719 349,149 (52,250) (120,513) 176,386 147,667 514.2% Apr 301,461 (52,250) (124,961) 124,251 286,440 (52,250) (145,902) 88,289 (35,962) -28.9% May 194,639 (52,250) (117,371) 25,018 257,204 (52,250) (125,100) 79,854 54,836 219.2% Jun 297,654 (52,250) (126,832) 118,572 328,029 (52,250) (124,785) 150,995 32,423 27.3% Jul 304,709 (38,000) (119,867) 146,841 228,331 (52,250) (127,330) 48,750 (98,091) -66.8% Aug 184,396 (38,000) (124,907) 21,490 226,793 (38,000) (132,477) 56,315 34,826 162.1% Sep 222,403 (52,250) (120,472) 49,681 - - - - - - Oct 258,671 (52,250) (120,482) 85,939 - - - - - - Nov 290,816 (52,250) (132,281) 106,284 - - - - - - Dec 283,892 - (124,547) 159,345 - - - - - - YTD Total1,956,221$ (361,000)$ (979,259)$ 615,962$ 2,198,248$ (403,750)$ (1,015,275)$ 779,223$ 163,261$ 8.9% Annual Total3,012,004$ (517,750)$ (1,477,043)$ 1,017,211$ 2,198,248$ (403,750)$ (1,015,275)$ 779,223$ 163,261$ n/a Annual Budgetn/an/a n/a - n/an/a n/a - n/an/a Court Court operation and probation service revenues are $79K or 8.4% above 2015 year-to-date actuals and $90K or 8.1% below 2016 year-to-date budget. Favorable/(Unfavorable) 20152016 Change from 2015 ActualActual$ % Civil Penalties 11,446$ 10,007$ (1,439)$ -12.6% Traffic & Non-Parking512,694 484,846 (27,848) -5.4% Parking Infractions 16,967 16,596 (371) -2.2% DUI & Other Misd 68,993 70,510 1,517 2.2% Criminal Traffic Misd 109 141 32 29.5% Criminal Costs 84,305 57,023 (27,282) -32.4% Interest / Other / Misc90,981 141,150 50,170 55.1% Criminal Conv Fees38,061 35,187 (2,874) -7.6% Shared Court Costs 21,788 36,183 14,395 66.1% Services & Charges 49,084 49,195 111 0.2% Subtotal 894,427$ 900,838$ 6,410$ 0.7% Probation Fees 45,645 23,858 (21,787) -47.7% Probation Services - 94,810 YTD Total 940,072$ 1,019,506$ 79,433$ 8.4% COURT REVENUE Year-to-date thru August COURT REVENUE Year-to-date thru August Favorable/(Unfavorable) 20152016 Change from 20152016 Actual vs Budget MonthActualBudgetActual$ % $ % January96,176$ 113,248$ 130,939$ 34,763$ 36.1%17,691$ 15.6% February122,939 131,824 118,776 (4,163) -3.4%(13,048) -9.9% March115,886 135,185 137,358 21,472 18.5%2,173 1.6% April 155,815 166,844 123,674 (32,141) -20.6%(43,170) -25.9% May 86,042 99,082 103,444 17,402 20.2%4,362 4.4% June 96,600 106,421 97,231 630 0.7%(9,190) -8.6% July 120,208 129,561 77,227 (42,982) -35.8%(52,335) -40.4% August 100,761 109,002 112,190 11,429 11.3%3,188 2.9% September 137,137 127,841 - ---- October 118,682 128,838 - ---- November 113,776 107,028 - ---- December 107,042 116,676 - ---- Probation Fees 45,645 - 23,858 (21,787) -47.7%23,858 20.2% Probation Services - 118,115 94,810 94,810 n/a(23,305) -19.7% YTD Total 940,072$ 1,109,282$ 1,019,506$ 79,433$ 8.4%(89,776)$ -8.1% Probation Fees 30,305 - n/a n/an/an/an/a Probation Services - 236,230 n/a n/an/an/an/a Annual 1,447,013$ 1,825,895$ n/an/an/an/an/a 24 Federal Way Community Center The Federal Way Community Center Fund was established as a special revenue fund supported by user fees and utility tax transfer. Federal Way 2015 2016 Community Center Annual YTD YTDYTD as of 08/31/2016 Budget Actual Actual Budget Budget Actual $ % Beginning Fund Balance $ 1,573,469 $ 1,573,469 $ 1,573,469 $ 1,500,000 $ 1,500,000 $ 1,500,001 n/an/a Operating Revenues: Daily Drop-ins 345,000$ 335,930$ 262,659$ 310,000$ 242,385$ 266,873$ 24,487$ 9.2% Passes 786,000 776,278 525,785 850,000 575,718 536,670 (39,048) -7.3% City Employee Membership Program 31,000 32,327 19,148 31,000 18,362 18,980 618 3.3% Youth Athletic Programs 45,000 51,639 35,944 45,000 31,323 31,390 67 0.2% Aquatics Programs-Lessons/Classes 156,000 146,896 122,137 136,000 113,077 115,995 2,917 2.5% Childcare Fees 9,000 3,091 2,931 9,000 5,400 764 (4,636) -606.8% Fitness Classes/Fitness Training 161,000 157,620 113,307 130,000 93,452 87,967 (5,485) -6.2% Towel/equipment Rentals 4,000 3,156 2,346 4,000 2,974 2,400 (574) -23.9% Pool Rentals/Competitive-Lap Lanes 16,000 22,978 16,432 16,000 11,442 15,712 4,270 27.2% Rentals 240,000 241,140 175,438 195,000 141,869 159,850 17,980 11.2% Merchandise Sales 7,500 10,020 8,418 7,500 6,300 8,181 1,880 23.0% Concessions/Vending 60,000 61,418 45,508 60,000 44,458 47,535 3,078 6.5% Interest Earnings/Other Misc - (0) (5,307) - - 0 0 n/a General Park/Rec - Facility use charge 25,000 25,000 16,667 25,000 15,914 15,914 - 0.0% Total Operating Revenues1,885,500 1,867,493 1,341,413 1,818,500 1,302,674 1,308,231 5,557 0.4% Operating Expenditures: Personnel Costs 1,404,524 1,419,625 971,908 1,447,141 990,746 1,029,190 (38,444) -3.7% Supplies 175,500 241,639 161,888 165,500 110,878 144,610 (33,732) -23.3% Other Services & Charges 209,500 203,268 106,514 222,500 116,592 109,679 6,913 6.3% Utility Cost 360,000 309,977 191,072 360,000 221,907 177,030 44,876 25.3% Intergovernmental 20,500 4,016 4,016 20,500 13,667 3,572 10,095 282.6% Total Operating Expenditures2,170,024 2,178,525 1,435,397 2,215,641 1,453,788 1,464,081 (10,293) -0.7% Revenues Over / (Under) Expenditures (284,524) (311,032) (93,984) (397,141) (151,114) (155,851) 4,736 3.0% Recovery Ratio 86.9%85.7%93.5%82.1%89.6%89.4%n/a . Transfer In from General Fund - - - 55,641 - - - n/a Utility Tax - Operations 396,754 396,754 85,778 380,000 158,802 158,802 - 0.0% Total Other Sources396,754 396,754 85,778 435,641 158,802 158,802 - 0.0% Other Uses:n/a Capital/Use of Reserves/Grants 202,200 159,190 65,263 22,000 2,951 2,951 2,951 n/a Total Other Uses202,200 159,190 65,263 22,000 2,951 2,951 2,951 n/a Net Income (89,970) (73,469) (73,469) 16,500 4,737 0 (4,736) n/a Ending Fund Balance 1,483,499$ 1,500,001$ 1,500,000$ 1,516,500$ 1,504,737$ 1,500,001$ (4,736)$ -0.3% YTD Budget vs Actual Favorable/(Unfavorable) The operating revenue budget includes $1.79M in user fees/program revenues, $380K contribution from utility tax for operations, $56K contribution from General Fund for operations, and $25K use charge from General Fund Recreation for use of the facility. Year-to-date operating revenues total $1.3M which is $6K or 0.4% above the 2016 year-to-date budget. In comparison to 2016’s year-to-date budget:  Daily Drop-in revenues are $24K or 9.2% above the projected revenue. Daily admission revenues continue to be strong due mostly to increased gymnasium and pool use throughout the year. We have also seen an increase in large groups visits throughout the year, primarily from neighboring camps or neighboring youth programs, primarily to use the pools.  Pass revenues are $39K or 7.3% below the projected revenue, but above 2015 YTD by $11K. Membership sales are a little bit slower than usual for the year, but the facility is making up ground in daily admission sales.  Aquatic Programs are $3K or 2.5% above the projected revenue. Swim lesson enrollment is very good with nearly all classes full and classes being added to accommodate more participants on the waiting list.  Child Care Revenues are $5K below expected levels. Staff is looking into the pricing model for areas of improvement.  Fitness Classes are $5K or 6.2% below the projected revenue. The decrease is mostly due to timing, and will raise to anticipated revenues with the continued success of small group training, specialty classes, and Silver Sneakers. We currently have a Personal Trainer shortage that is attributing to lower Fitness Class Revenues, and we are adverstising in hopes to gain 2-3 new Personal Trainers. 25  Pool Rentals are $4K or 27.2% above the projected revenue. The increase is due to increased participation in local swim clubs. Increased participation in local clubs means increased lane rentals at the FWCC lap pool.  Rental Revenues are up $18K or 11.2% above the projected revenue. Rental revenues are up mostly due to continued growth in meeting and rental bookings. Birthday party enrollment and special event rentals remain popular. Year-to-date operating expenditures total $1.5M which is $10K or 0.7% above the year-to-date budget. Federal Way Community Center has recovered 89.4% of operating expenditures compared to the year-to-date budgeted recovery ratio of 89.6%. In comparison to 2016’s year-to-date budget and 2015’s year-to-date actual respectively:  Personnel Costs increased by $38K or 3.7% compared to budget, and increased by $57K or 5.9% compared to prior year actual. The increase is due to increased service levels to meet higher customer service demands. Service Attendants have been added for safety and to improve operations in the gymnasium, locker rooms, rentals, and special events.  Supplies are $34K or 23.3% higher than projected budget, and $17K or 11.9% lower compared to prior year actual. The increase compared to budget is due to increased spending on household supplies. Also, there have been increased expenditures due to repair and maintenance of the building, which includes repair parts and building materials.  Other Services & Charges are $7K or 6.3% below the projected spending and $3K or 3.0% above compared to prior year actual. Compared to projected spending, personal training expenditures are down, as well as contracted repair and maintenance. Staff has maintained efforts in completing most repairs in-house.  Utility Costs are $45K or 25.3% below the projected spending and $14K or 7.9% below compared to prior year actual due to facility staffing efforts to improve energy efficiencies in the building, and timing of payments. Dumas Bay Centre Dumas Bay Centre Fund year-to-date revenue of $642K is $186K or 40.9% above 2016 year-to-date budget and $99K or 18.3% above year-to-date 2015. Year-to-date operating expenses total $575K, which is $98K or 20.6% above 2016 year-to-date budget of $477K. Dumas Bay Centre has recovered 111.53% of operating expenditures compared to 106.59% last year. Dumas Bay Centre Fund Annual YTD YTDYTD as of 08/31/2016 BudgetActualActualBudgetBudgetActual$% Beginning Fund Balance 181,200$ 181,201$ 181,201$ 398,817$ 398,817$ 398,816$ n/an/a Operating Revenues: In-House Food Services 299,000 318,491 227,555 275,000 196,482 268,506 72,025 36.7% Dumas Bay Retreat Center 398,251 438,237 314,950 360,251 258,904 350,897 91,993 35.5% Knutzen Family Theatre - 3,605 - - - 22,204 22,204 n/a Total Operating Revenues697,251 760,332 542,505 635,251 455,386 641,607 186,222 40.9% Operating Expenses: In-House Food Services 266,107 282,033 185,953 242,182 159,678 217,561 (57,882) -36.2% Dumas Bay Retreat Center 419,735 423,998 273,501 411,417 265,385 292,182 (26,797) -10.1% Knutzen Family Theatre 83,400 79,732 49,529 83,400 51,808 65,550 (13,742) -26.5% Total Operating Expenses769,243 785,763 508,983 736,999 476,871 575,293 (98,422) -20.6% Revenues Over/(Under) Expenses (71,992) (25,432) 33,522 (101,748) (21,485) 66,314 87,800 -408.6% Recovery Ratio 90.64%96.76%106.59%86.19%95.49%111.53%n/an/a Transfer In Gen Fund - Pump Station M&O 4,000 4,000 4,000 4,000 4,000 4,000 - n/a Transfer in Real Estate Excise Tax - - - 210,000 210,000 210,000 - n/a Transfer In Utility Tax 233,659 483,659 233,659 112,000 112,000 112,000 - n/a Total Other Sources237,659 487,659 237,659 326,000 326,000 326,000 - n/a Pump Station M&O 4,000 1,207 980 4,000 3,249 1,153 2,096 65% Repairs & Maintenance 310,000 243,405 56,508 15,400 15,400 19,516 (4,116) n/a Total Other Uses314,000 244,612 57,488 19,400 18,649 20,669 (2,020) -11% Net Income (148,333) 217,616 213,693 204,852 285,866 371,645 85,779 30.0% Ending Fund Balance 32,867$ 398,816$ 394,894$ 603,669$ 684,683$ 770,461$ 85,778$ 12.5% Favorable/(Unfavorable) 20162015 YTD Budget vs Actual 26 Self-Insured Health Insurance Fund Self-Insured Health Insurance Fund year-to-date contributed revenue is $3.9M. Currently the revenue is generated from the employee paid contribution (range from $32 to $128 per employee per month) and the employer paid contribution (range from $640 to $1,798 per employee), varying depending on number of dependents. Self-Insured Health Insurance Fund year-to-date expenditures are $3.5M for prescription services, medical services, stop loss, professional services, and wellness program. The ending fund balance for the program is $2.1M. Self Insured Health Insurance Fund - 2016 Description 2015 Annual Actual 2016 Adjusted Bdgt Jan-JuneJulAugYTD Total Beginning Fund Balance1,031,7531,741,487 ---1,741,488 Health Insurance Premium - Employer Contribution Revenue4,034,3223,972,8202,024,247332,358335,7742,692,379 Health Insurance Premium - Employee Contribution Revenue 215,210223,871108,29617,76517,934143,995 Health Insurance Premium - COBRA 5,757 8,5293,8386406405,117 Stop Loss Recovery Revenue 227,404 -903,32811,263145,0631,059,654 Interest Earnings 2,022 1,5003,4826597004,841 Total Revenue and Transfer In4,484,7144,206,7203,043,191362,685500,1113,905,988 Prescription Services 572,387572,375307,34442,39841,347391,089 Medical Services 2,459,5082,411,1182,079,660314,044195,8732,589,576 Health Insurance - Stop Loss 366,564361,134226,446-63,922290,368 Professional Services & Other 376,521353,752187,6877,61049,515244,812 Total Expenditures for Self Insured Health3,774,9803,698,3792,801,137364,052350,6563,515,844 Ending Fund Balance1,741,4882,249,828242,054(1,367)149,4562,131,631 The City will maintain a reserve in the amount not less than 16 weeks of budgeted expenses ($0.985 million) as recommended by our consultant. We have spent $3.5M year-to-date in 2016, with an ending fund balance in the fund of $2.1M. Performing Arts & Event Center (PAEC) Performing Arts & Event Center (PAEC) year-to-date revenue, beginning balance, and transfer in is $13.5M. This does not include all revenue sources expected for the project. Since adoption of the project, PAEC expenditures total $10.8M. 308 Performing Arts & Event Center (PAEC) 2016 Adjusted Budget YTD 2016 Beginning Balance6,617,777 6,617,777 Transfer In - LIFT & Utility tax & REET from Completed projects -- Transfer In - Real Estate Excise Tax-- Transfer In - Utility Tax-- Federal Grants - CDBG Section 1083,000,000 1,635,930 State Grants4,000,000 3,100,176 Local Grants - 4 Culture 12,000,000 2,000,000 Local Grants - 4 Culture 2-10,000 Private Contribution-109,210 Interest13,000 14,414 Total Beg Bal, Revenue & Transfer In15,630,777 13,487,507 Expenditures 15,630,777 - Lorax Partners Design Development & Management -231,285 Garco Construction -5,541,963 LMN Architects Project Design -333,952 HDR Engineering -34,922 Water billings and Utilities -2,837 On-Call Plan Review/Inspection Services -38,191 2% for the Arts -8,525 Signage Design -8,150 PAEC Director Salaries & Wages -13,702 Total Expenditures15,630,777 6,213,527 Total PAEC Balance -7,273,980 27 FUND ACTIVITY SUMMARY Fund #/Fund Name Begin Balance 1/1/2016 YTD Revenue YTD Expenditure YTD Net Income/(loss) Ending Balance 08/31/2016* Required Fund Balance 001/101 General/Street Fund 12,006,587$ 31,304,214$ 33,810,794$ (2,506,579)$ 9,500,007$ 9,500,000$ Special Revenue Funds: 102 Arterial Street 298,387 1,334,021 1,515,861 (181,840) 116,547 100,000 103 Utility Tax (*)4,120,012 5,226,483 7,846,494 (2,620,011) 1,500,000 1,500,000 106 Solid Waste & Recycling 208,857 271,504 293,669 (22,165) 186,692 - 107 Special Contracts/Studies Fund 458,356 61,044 8,254 52,790 511,146 - 109 Hotel/Motel Lodging Tax 501,765 148,394 17,376 131,018 632,783 200,000 110 2% for the Arts 293 - - - 293 - 111 Federal Way Community Center 1,500,001 1,467,033 1,467,032 0 1,500,001 1,500,000 112 Traffic Safety Fund 3,614,117 2,205,527 3,199,634 (994,107) 2,620,010 1,500,000 113 Real Estate Excise Tax Fund 3,445,070 2,508,760 2,738,623 (229,863) 3,215,207 2,000,000 114 Prop 1 Utility Tax 719,485 2,106,737 1,826,221 280,516 1,000,000 1,000,000 115 Performing Arts & Conferenc Ctr Operations 12,607 108,484 121,091 (12,607) 0 - 119 CDBG 40,444 41,336 164,261 (122,925) (82,482) - 120 Path & Trails 384,357 100,385 - 100,385 484,741 - 188 Strategic Reserve Fund 3,085,473 502,120 189,958 312,162 3,397,635 3,000,000 189 Parks Reserve Fund 250,000 501,601 - 501,601 751,601 750,000 Subtotal Special Revenue Funds 18,639,221 16,583,429 19,388,475 (2,805,046) 15,834,175 11,550,000 201 Debt Service Fund 1,471,579 1,482,992 171,061 1,311,931 2,783,509 $2,500,000 Capital Project Funds: 301 Downtown Redevelopment 1,111,019 525,877 62,353 463,524 1,574,544 - 302 Municipal Facilities 53,232 199 - 199 53,432 - 303 Parks 3,316,281 339,074 1,532,754 (1,193,680) 2,122,601 - 304 Surface Water Management 3,317,003 1,911,156 345,127 1,566,030 4,883,032 - 306 Transportation 8,008,608 5,122,141 6,449,010 (1,326,869) 6,681,739 - 307 Capital Project Reserve Fund 480,840 1,203 - 1,203 482,043 480,000 308 PAEC Capital Fund 6,617,777 6,869,730 6,213,527 656,203 7,273,980 - Subtotal Capital Project Funds 22,904,760 14,769,381 14,602,770 166,611 23,071,371 480,000 Enterprise Funds: 401 Surface Water Management 3,392,484 2,201,975 4,262,980 (2,061,005) 1,331,480 690,000 402 Dumas Bay Centre Fund 398,816 967,607 595,962 371,645 770,461 500,000 Subtotal Enterprise Funds 3,791,301 3,169,583 4,858,942 (1,689,360) 2,101,941 1,190,000 Internal Service Funds 501 Risk Management 975,298 649,860 749,144 (99,284) 876,014 1,200,000** 502 Information Systems 3,807,674 1,620,451 1,236,304 384,147 4,191,821 - 503 Mail & Duplication 192,139 86,134 68,767 17,366 209,505 - 504 Fleet & Equipment 5,997,666 1,561,601 1,481,715 79,886 6,077,552 - 505 Buildings & Furnishings 1,877,824 394,342 259,650 134,693 2,012,517 2,000,000 506 Health Self Insurance Fund 1,741,487 3,905,988 3,515,844 390,143 2,131,630 $970,000*** 507 Unemployment Insurance Fund 2,131,299 180,594 1,014,584 (833,990) 1,297,309 250,000 Subtotal Internal Service Funds 16,723,387 8,398,970 8,326,009 72,961 16,796,348 4,420,000 Total All Funds75,536,834$ 75,708,569$ 81,158,051$ (5,449,482)$ 70,087,351$ 29,640,000$ *The Fund balance prior to any adjustments or depreciation. ** The Risk Management Fund will maintain a reserve in an amount of not less than one year’s expenditure from the prior year or $1.2M. The current fund balance is $876K and is due to some larger claims during the year. *** The Health Self Insurance Fund will maintain a reserve in an amount not less than 16 weeks of budgeted expenses as recommended by our consultant. . 28 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 TC 3 HANDOUT AT THE MEETING