FEDRAC MINUTES 04-24-2018 CITY Ot
, ;
Federal Way
City Council
Finance/Economic Development/Regional Affairs Committee
Tuesday,April 24, 2018 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 Assefa-Dawson
COMMITTEE MEMBER EXCUSED: Councilmember Tran arrived at 4:43
COUNCILMEMBERS IN ATTENDANCE: Deputy Mayor Honda, Councilmember Moore
STAFF MEMBERS IN ATTENDANCE: Finance Director, Ade Ariwoola; City Attorney, Ryan
Call; Economic Development Director, Tim Johnson; Interim PAEC Director, EJ Walsh; Parks
and Recreation Director, John Hutton; Chief of Police, Andy Hwang; Deputy Chief of Police,
Stephan Neal; Accounting Supervisor, Chase Donnelly; Administrative Assistant, Robyn
Buck
OTHERS PRESENT: Dana Hollaway, Federal Way citizen; Rich Shockley, Small Business
Development Center; Jamal, Federal Way Citizen
PUBLIC COMMENT: Ms. Hollaway expressed concern about developers being exempt from
property tax when they build low income housing. She requests that the Federal Way
Finance Department staff create a report for Council to show how much the City has lost
because of the exemption. Mr. Ariwoola reminded the committee that the PAFR compares
our tax base to surrounding cities. Federal Way probably has more exempt properties than
surrounding cities. There was a consensus among Councilmembers that a study session on
revenue, taxes and the impact of exemption on other cities is necessary.
APPROVAL OF SUMMARY MINUTES:
Motion to approve the minutes from March 27, 2018; motion seconded and carried 2-0.
Councilmember Tran was not present at this time.
Tuesday,April 24, 2018 Page 1
ITY OF
CFederal Way
PAEC QUARTERLY OPERATIONS REPORT: Presented by Interim PAEC Director, EJ Walsh.
Mr. Walsh summarized the information included in the packet. Mr. Walsh described how
the ticket prices are broken down. The prices are set by the performer and PAEC adds a fee
on to that price. The dollar amount that is added to tickets by Federal Way ranges between
$9-16.
Information only.
ORDINANCE: 2017/2018 BIENNIUM BUDGET AMENDMENT: Presented by Finance
Director, Ade Ariwoola.
Mr. Ariwoola explained Exhibit B and C of the ordinance. We are adjusting the beginning
balance for 2018 based on the actual activity. The 2018 budget adjustment is using $300k
out of the required fund balance. There needs to be a plan to replenish that money. Mr.
Ariwoola will bring revenue options to the committee next month. Deputy Mayor Honda
suggests having a Council study session on zero based budgeting, revenue, and a basic
budget discussion on May 29, 2018.
Motion to forward the proposed ordinance to First Reading on May 1, 2018; motion
seconded and carried 3-0.
MONTHLY FINANCIAL REPORT - MARCH 2018: Presented by Finance Director, Ade
Ariwoola.
Mr. Ariwoola summarized the Monthly Financial Report. Notable areas included:
• CD Permits and Fees — $35k below 2017.
• Sales Tax —Above 2017 year to date actual by $135k. Retail is a major part of that
increase.
• Business Registration Fee — Doing well.
• REET— Cooling off a little bit.
• Criminal Justice Sales Tax - Above 2017.
• Court Revenue — Below 2017 year to date actual and below 2018 year to date
budget.
• Admission Tax—As of end of March, we have collected $11k. The Committee
suggests that a letter go out to those that are supposed to be paying the tax, but are
not.
• Current Ending Fund Balance - 8.5 instead of the required 9.5.
Motion to forward approval of the MONTHLY FINANCIAL REPORT—MARCH 2018
to the May 1, 2018 consent agenda for approval; motion seconded and carried 3-0.
Tuesday,April 24, 2018 Page 2
CITY Ot
, , Federal Way
VOUCHERS — MARCH 2018: Presented by Finance Director, Ade Ariwoola.
The $77 charges for vehicle tows were for our police vehicles. Noxious Weed Tax is paid to
the county.
Motion to forward the Vouchers to the May 1, 2018 consent agenda for approval; motion
seconded and carried 3-0.
INTERAGENCY AGREEMENT BETWEEN STATE OF WASHINGTON, HIGHLINE COLLEGE AND
CITY OF FEDERAL WAY: Presented by Economic Development Director, Tim Johnson.
Mr. Johnson spoke about how the Small Business Development Center (SBDC) helped
Ellenos through bankruptcy and stay in Federal Way.
Motion to forward the Interagency Agreement with the State of Washington Highline
College for 2018 to the May 15, 2018 City Council Consent Agenda for approval; motion
seconded and carried 3-0.
Committee Chair Duclos requested that Mr. Johnson give a presentation to the full Council
at an upcoming City Council meeting. Mr. Johnson will check on dates and with local
businesses to see when they can present. He would like to have the owners of Ellenos
come and speak. Councilmember Moore asked if the SBDC has formal partnerships with
the schools. Mr. Rich Shockley said the SBA contract requires SBDC to work with adults 18
years and over and to work with for-profit businesses.
2019/2020 BUDGET UPDATE: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola summarized the letter that was included in the packet.
No further action.
SCORE REPORT: Presented by Finance Director, Ade Ariwoola.
Mr. Ariwoola highlighted items from the report. SCORE set the ADP at 80, which is based on
what we did in 2017. The ADP for March 2018 was 65. We need to maintain the lower ADP
in order to reduce the cost for next year. Renton and Burien are using considerably less
beds than they are contracted for. Federal Way is contracted for 60 ADP. Chief Hwang said
that our ADP is lower now because of a 10% reduction in crime.
No further action.
Tuesday,April 24, 2018 Page 3
CITY OF
Federal Way
PAEC MONTHLY CONSTRUCTION REPORT: Presented by Finance Director, Ade Ariwoola.
We are still finalizing the bill for Garco. The goal is to present the contract to Council in late
May so that the project can be accepted.
No further action.
NEXT MEETING: Tuesday, April 24, 2018 @ 4:30 p.m.
MEETING ADJOURNED: 6:22 p.m.
Tuesday,April 24, 2018 Page 4