FEDRAC MINUTES 10-25-20164% CITY OF
Federal Way
City Council
Finance /Economic Development /Regional Affairs Committee
Tuesday, October 25, 2016
4:30 p.m. SUMMARY MINUTES
Federal Way City Hall
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, Councilmember Honda
COMMITTEE MEMBER EXCUSED:
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Burbidge
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; Acting City Attorney,
Ryan Call; Economic Development Director, Tim Johnson; Accounting Supervisor, Chase
Donnelly; Administrative Assistant, Robyn Buck
OTHERS PRESENT:
PUBLIC COMMENT:
APPROVAL OF SUMMARY MINUTES: Motion to approve the September 27, 2016 minutes
as presented; motion seconded and carried 3 -0.
RESOLUTION: CDBG INTER FUND LOAN: Presented by Finance Director, Ade Ariwoola.
This resolution will enables CDBG to have cash to conduct business pending the time they
get money back. The loan amount will be paid back plus interest.
Motion to forward the RESOLUTION: CDBG Inter Fund Loan to the November 1, 2016
consent agenda for approval; motion seconded and carried 3 -0.
RESOLUTION: LEVY LIMIT /SUBSTANTIAL NEED: Presented by Finance Director, Ade
Ariwoola.
The law says that if the LPD is lower than 1 %, we cannot ask for a 1% increase. The moment
we choose not to use this, we cannot go back and request additional percentage.
Motion to forward the RESOLUTION: Levy Limit /Substantial Need to the November 1,
2016 business agenda for discussion; motion seconded and carried 3 -0.
Tuesday, October 25, 2016 Page 1
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AUTHORIZING FINANCE DIRECTOR TO CERTIFY THE LEVY TO THE COUNTY LEGISLATORS:
Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola suggested that, rather than sending this to Council for action on November
15, the Committee delay action and move to forward it to the December 6t" Council
meeting.
Motion to approve and forward Authorizing Finance Director To Certify The Levy To The
County Legislators to the December 6, 2016 consent agenda for approval; motion
seconded and carried 3 -0.
ORDINANCE: 2017/2018 BIENNIAL BUDGET: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola said there will still be changes to the budget.
No motion made and no action taken.
ORDINANCE: 2017 PROPERTY TAX LEVY: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola suggested that there be more discussion on the Property Tax Levy.
No motion made and no action taken.
PAEC QUARTERLY REPORT: Presented by Finance Director, Ade Ariwoola.
The hotel site ($1.5m) and naming rights ($3.5m) are not included in this report. We will
accumulate about 3 months' worth of billing before we invoice CDBG because they charge
a $75 billing fee for each request. The City still has almost $8m in cash to continue funding
the building. We have accessed the Inter -Fund loan. We may need to next year. Committee
members discussed having this presented to the full Council and to the public.
No motion made and no action taken.
INVESTMENT AND SAFE KEEPING RESOLUTION 15 -683: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola presented this resolution as a reminder to the Committee that the Mayor will
authorize the Finance Director to open a Safekeeping account for the City with US Bank.
No motion made and no action taken.
MONTHLY FINANCIAL REPORT - AUGUST 2016: Presented by Finance Director, Ade
Ariwoola.
Tuesday, October 25, 2016 Page 2
CITY OF ,. Federal Way
Mr. Ariwoola summarized the Monthly Financial Report for September 2016. Notable areas
include:
• Dumas Bay— Is doing well.
• Utility Tax — Spending the fund balance down so the net is negative. The traffic safety
fund balance is higher than the required amount; we will use that up in 2017/2018.
• Police — Overtime has greatly increased the cost.
• Construction — Even though the projects are still under construction, the permits
were paid for last year and cannot be counted toward this year's revenue.
Committee members discussed having a red light photo report presented to the full Council
and to the public, however no motion was made in that regard.
Motion to approve and forward the September 2016 Monthly Financial Report to the
November 1, 2016 consent agenda for approval; motion seconded and carried 3 -0.
VOUCHERS — SEPTEMBER 2016: Presented by Finance Director, Ade Ariwoola.
There were no questions /comments on the vouchers.
Motion to approve and forward the September 2016 Vouchers to the November 1, 2016
consent agenda for approval; motion seconded and carried 3 -0.
OTHER:
• NMTC Recap— Mr. Johnson provided a summary of the memo he presented.
• 2016 Budget Amendment —This will go to the council in December.
• Mayor's budget amendment — There were no specific questions in terms of the nine
police officers. The funding for that is not a 12 month funding. It is more like eight
months for those in 2017 and five more months in 2018. All current bargaining will
affect the budget.
• Historical Society funding — Included $10k in 2017 and 2018 for them to provide a
service. That is already in the budget.
• Utility tax — Mr. Call said Mr. Orthmann is drafting the ordinance now which will be
presented at the next FEDRAC. This ordinance will include water and sewer.
NEXT MEETING: Tuesday, November 22, 2016 @ 4:30 p.m.
MEETING ADJOURNED: 5:42 p.m.
Tuesday, October 25, 2016 Page 3