2018-02-20 Council MIN - SpecialFederal Way
CITY COUNCIL
SPECIAL MEETING
STUDY SESSION MINUTES
Council Chambers - City Hall
February 20, 2018 — 5:00 p.m.
1. CALL MEETING TO ORDER
Mayor Ferrell called the meeting to order at 5:02 p.m.
City officials in attendance: Deputy Mayor Susan Honda, Councilmember Lydia Assefa-Dawson,
Councilmember Jesse Johnson, Councilmember Hoang Tran, Councilmember Mark Koppang,
Councilmember Martin Moore, and Councilmember Dini Duclos.
City staff in attendance: City Attorney Ryan Call and City Clerk Stephanie Courtney
2. EXECUTIVE SESSION
At 5:02 p.m. Mayor Ferrell announced the Council would be recessing into Executive Session for
approximately thirty (30) minutes.
At 5:33 p.m. Deputy City Attorney Mark Orthmann extended Executive Session by an additional
five minutes.
a. Potential Litigation pursuant to RCW 42.30.110(1)(i)
b. Property Acquisition pursuant to RCW 42.30.110(1)(b)
c. Evaluate Qualifications of an Applicant for Public Employment pursuant to RCW
42.30.110(1)(g)
Council returned to chambers at 5:36 p.m.
3. STUDY SESSION — REVENUE OPTIONS/2018 BUDGET ADJUSTMENT
Mayor Ferrell reconvened the Special Meeting at 5:38 p.m.
Finance Director Ade Ariwoola gave a presentation regarding the 2018 budget shortfall and how
the city arrived at this position. He gave revenue options for the Council to review and discuss.
Mr. Ariwoola stated initial requests from the five (5) funds (General, Street, FWCC, Traffic, and PAEC)
were $4.68 million. Contributing factors on the budget shortfall include increases in:
• SCORE Jail costs ($0.68 million);
• Parks ($0.25 million);
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February 20, 2018
• Public Works ($0.16 million);
• CD — Downtown Development ($0.10 million); and
• Police — unfunded equipment reserves ($0.36 million)
These costs account for a $1.55 million deficit. He spoke regarding managing the SCORE average
daily population (ADP) numbers as well as the increasing labor costs to retain and attract capable
staff.
Many city departments are currently understaffed and the city is losing long-term qualified staff to
neighboring jurisdictions with higher salaries and less job duties. Mr. Ariwoola also noted city buildings
are aging and are in need of repairs including roof, elevator, paint and HVAC repairs.
Mr. Ariwoola presented nine options for increased revenue for Council to review and discuss.
He also referred to a chart which shows Federal Way with the lowest property tax rate at 1.13
compared to Sea -Tac (2.89); Seattle (2.62); Renton (1.61); Burien (1.36); Auburn (2.19); and Kent
(1.41). Mr. Ariwoola stated the Mayor has authorized the delay of hiring five police officers until July
2018; extend the useful life for patrol cars to seven years; suspend hiring of one staff position (PAEC);
and coordination of SCORE ADP. Additional recommendations included drafting resolutions and
ordinances to address Admission Tax; Utility Tax and Business Registration Fees.
Council asked various questions and gave input on ideas brought forward. Councilmember asked
staff to bring back the cost of staff overtime; the monthly expenses for the PAEC (including salaries
and debt service); and the number of staff the city has lost in the last 12 months, including if their
positions were filled. Councilmember expressed concern with charging a business registration fee for
any non-profit group in the city. They also noted they are looking for sustainable revenue.
Citizen Comments:
Tim McClain, Lakehaven Commissioner, spoke regarding a recent meeting with the Mayor regarding
imposing a utility tax of 7.75%. He is adamantly opposed to this tax and noted he proposed
alternatives to this approach.
Linda Kochmar (no comment sheet), stated she is concerned with citizens on a fixed income. She
feels the budget shortfall is connected to the PAEC and its budget, and feels the city needs to attract
a larger business and corporate base.
Finance Director Ade Ariwoola concluded his presentation and answered additional questions.
4. ADJOURNMENT
There being nothing further on the agenda; Mayor Ferrell adjourned the Special Meeting at 6:56 p.m.
Attest:
City Clerk
la 1u'
Ste nanie Courtney
Approved by Council: O3 -01p-0
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February 20, 2018