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2020-02-01 Council PKT Retreatinancial m Presented by Ade Ariwoola, Finance Director February 1, 2020 ThAo sky is falling, the sky is failing! 4, Jr t Are' 6 able to4adequatpl7%' deliver- ky e "bxp' cted x ecfe..ql,,.,ser, e reallz b1fing, Y P", clo a W y ILV Items to Cover ❖2019 Activities ❖Sound Transit ❖Supreme Court judgment ❖ SCO RE ❖City Reserve Policy ❖Salary Study & Position Analysis ❖Revenues are holding as projected ❖Expenditures are generally holding as expected ❖Fund balance remains stable ****Revenue Leakage: *+++Business Registration **++ State System *:*State anniversary date *:*Admission tax *Utility tax ❖ Parking ❖Moving people from home to station ❖Downtown business hub and business recruitment ❖Downtown workers' hub ❖Non-taxable properties Properties (Lased on Kung County record) ❖Type of Properties o Government Properties — i.e. Post Office, King County, City, School, Fire Department o Religious Properties — i.e. Churches o Affordable Housing — i.e. Apartment Complexes o Not for Profit — Medical Services ❖Tax Roll o 25,729 properties on tax roll @ $13.13 Billion o 749 Exempt @ $1.41 Billion Non-taxable rte (Lased on Kung County record) ❖When more properties are exempted it would increase the tax burden on the remaining non-exempt properties ❖749/25,729 = 2.9% Percent are non-taxable Properties ❖ $1.41/$13.13 = 10.7% Percent are non-taxable value •►•Non-taxable properties are not reappraised ❖Fiber Optic as a ❖Create a Business Hub in separate utility downtown Supreme1 Water and Sewer Tax ❖Ordinance 18-847 passed March 20, 2018 & effective March 28, 2018 ❖2018 9 months ❖2019 12 months ❖2020 possibly 6 months ❖Utility tax is based on GROSS RECEIPTS unlike Sales tax SCORE ❖$2.1 million in savings ❖Potential for additional savings from jail management City Reserve Policy ❖General Fund ❖Utility Tax RE ET ❖Provides reasonable safety -net for a short time •'• In case of emergency ❖ In case of revenue shortfall ❖ Take advantage of economic opportunity .r IM M y & Position Anal)m ❖Paying staff more to keep good staff ❖Hiring more staff to be able to timely provide the quality service needed ❖Currently we underpay and are understaffed compared to other cities ❖This is not to suggest salary alone is what keeps employees Sustainability Revenue / Rising Labor Cost ❖ Property Tax Rate ❖Labor Cost ❖NO, the sky is not falling, the City is living within its means ❖The City needs to hire and maintain more qualified staff to meet the growing needs of the community and the service level required ❖The City has maintained structurally balanced budget for the past six years ❖The City's needs and costs are growing faster than the available resources ❖Some investments are needed to prepare for the future he sky is IlIn , the sky is a fallings J Take Away-con-dinued This 'i's our This 'i's our (juest'Olel.,S �� r��l � allrr ��, �//� %� /� �� iii � iii IIIIJ�iiii il�iiii , �, �'' � ilii/il , „ , %'F � ��• 1 � Administration � Federal Way Community Center � Recreation � Facilities e° Maintenance Urban Forestry Trails & Open Space e� Dumas Bay Centre ]'amihTTkPntrP ��uccesses* RecTrac implementation to improve our on-line registration Added Champs Camp for youth with disabilities Added picnic attendants to increase customer service Added Senior Prom � Senior Grant 13ok: Kitchen/Floor/Walls and AV Successes: Senior Program: Unbelievable destinations and experiences e Continue to make important improvements to DBC Opened Panther Lake Trail Sand Banding at Celebration & Town Square Park e Created Christmas Tree cage to protect living Christmas Successes: PROS Plan - This allows us to apply for Grant Funding Saghalie artificial turf replacement Obtained large grants - Which funded several items on this list � Negotiated a new Interlocal Agreement for Maintenance with the Federal Wav School District internal Challenges-. al New Maintenance Facility - Needed to replace obsolete facility al Staffing levels - too low for a community this size; need to adjust to meet the needs of the community al Default Department - we have become the catch all al Failing Infrastructure ,. - - 7 - r - - ' , - , - Sports fields, facilities in internal Challenges-. al Deferred Maintenance - over a decade without enough operating funds al Staff retention & Training - lcey staff members to other stretched too thin We have lost several jurisdictions; staff is Challengesio �III� „ql�l ,„ 11 Changing Demographics Increase in Density - changing use patterns will necessitate change in our business; more outreach Lack of Financial Resources (e Vandalism - Continually takes more resources away from our mission (e Homelessness - Camps and inappropriate usage in the parks pulls staff away from maintaining our resources 11 --*ot e Sourcesm al Park Impact Fees al Grants with Matching Funds al Forming Partnerships al Park Bond al Park Levy Parks Department Needs: Increase in staffing and appropriate equipment for each new staff member i.e. trucks Increase financial resources for day to day operations Parks Future: Steady funding source to address deferred maintenance and failing infrastructure Improve existing facilities such as Celebration Park to increase positive economic impact through sports tourism Continue toward Gold Medal Accreditation Continue performance improvements at the PAEC Parks Future Continued: Potential stand alone Senior Center and Teen Center Identifying best use for Brooklake More covered picnic shelters for picnics and reunions r � �� r��l � allrr ��, �//� %� /� �� iii � iii IIIIJ�iiii il�iiii , �, �'' � ilii/il , „ , %'F � ��• 1 � Administration � Federal Way Community Center � Recreation � Facilities e° Maintenance Urban Forestry Trails & Open Space e� Dumas Bay Centre ]'amihTTkPntrP ��uccesses* RecTrac implementation to improve our on-line registration Added Champs Camp for youth with disabilities Added picnic attendants to increase customer service Added Senior Prom � Senior Grant 13ok: Kitchen/Floor/Walls and AV Successes: Senior Program: Unbelievable destinations and experiences e Continue to make important improvements to DBC Opened Panther Lake Trail Sand Banding at Celebration & Town Square Park e Created Christmas Tree cage to protect living Christmas Successes: PROS Plan - This allows us to apply for Grant Funding Saghalie artificial turf replacement Obtained large grants - Which funded several items on this list � Negotiated a new Interlocal Agreement for Maintenance with the Federal Wav School District internal Challenges-. al New Maintenance Facility - Needed to replace obsolete facility al Staffing levels - too low for a community this size; need to adjust to meet the needs of the community al Default Department - we have become the catch all al Failing Infrastructure ,. - - 7 - r - - ' , - , - Sports fields, facilities in internal Challenges-. al Deferred Maintenance - over a decade without enough operating funds al Staff retention & Training - lcey staff members to other stretched too thin We have lost several jurisdictions; staff is Challengesio �III� „ql�l ,„ 11 Changing Demographics Increase in Density - changing use patterns will necessitate change in our business; more outreach Lack of Financial Resources (e Vandalism - Continually takes more resources away from our mission (e Homelessness - Camps and inappropriate usage in the parks pulls staff away from maintaining our resources 11 --*ot e Sourcesm al Park Impact Fees al Grants with Matching Funds al Forming Partnerships al Park Bond al Park Levy Parks Department Needs: Increase in staffing and appropriate equipment for each new staff member i.e. trucks Increase financial resources for day to day operations Parks Future: Steady funding source to address deferred maintenance and failing infrastructure Improve existing facilities such as Celebration Park to increase positive economic impact through sports tourism Continue toward Gold Medal Accreditation Continue performance improvements at the PAEC Parks Future Continued: Potential stand alone Senior Center and Teen Center Identifying best use for Brooklake More covered picnic shelters for picnics and reunions r � • Global Federal Way: Sister & Friendship City Relationships • Future of South End of Federal Way • Connecting with Federal Way • Preparation and Adapting to Future Technologies • Downtown • Sustaining Federal Way CITY OF Federal Way Global Federal Way Sister and Friendship City Relationships How to leverage these relationships to enhance Federal Way? • Donghae, South Korea • Hachinoe, Japan • Shantou, China CITY OF Federal Way 0 0 Future of South End of Federal Way How do we refer to this area? ➢ Name the area Specific Plan community contest CITY OF Federal Way Connecting with Federal Way Existing & Future Residents What Tools should we use? • Youth • Current Residents Aging Population • Future Residents CITY OF Federal Way Preparation for Future Adapting to Changes in Technology ➢ Driverless Cars ➢ Commercial Delivery Drones ➢ Yet to Be identified Tech? ➢ Disruptive Tech? CITY OF Federal Way Downtown Specific Plan, addressing issues of what should downtown Federal Way look like? Aligning downtown with opportunity with light rail linkage to Seatac International CITY OF Federal Way Sustaining the City of Federal Way • Environmental • Financial • Economically • Quality of Life CITY OF Federal Way %-I w I wo 'll, %-I w I wo 'll, • How should we address traffic congestion? • How many parks do we need, of what size, kind, and where? • What steps should we take to encourage economic development? • How can we encourage preservation of our historic resources? • How can we ensure an adequate supply of affordable housing for all income levels? • What utilities and public services will we need? • How will the community pay for all of these things?" Status: Last updated 2015; requires update every eight years Federa,l Way a 1100 'U'l C`dy EA'mnoM PiA 7 41 S OrRVilihl tiV W� "'s fl Folvi III Maj mu*,m', no ww TV,'( Jb", R% 2CCVY"Ar4 I / ./ 1 growth within that area • The 2006 EIS resulted in streamlining subsequent review of projects within the City Center Area • Beneficiaries include Town Square Park, Performing Arts and Events Center, Affinity Apartments, and numerous small businesses • Extension of the Planned Action SEPA in 2015 to December 31, 2025 cost $96,804 • January 2016 - Ordinance 16-811 extended the Planned Action SEPA to December 31, 2025 or until the total trips in the Transportation Analysis are exceeded • Cost to renew $150,000 - $300,000 0041AI aftd mointmeanco fmaloy (CM), 'he aptiew Fwkrm mp,�W000 4A&VI � Wrzl,IkE r,Q d,O(A6 W10 (WI rqbt VaR wwce MOA UW-SamWO On w*#) Woma Dwe UA Egen� 00A (4dqro Wav F4 ta"ma muw, ad omfiI am%Wffmcfl) — ------------------------------------ 0 Now am"Im, () Mn sfing Agion .............. l'll,—,—,)"vZ . )))) ............ ........... . . . . . . . . . . . . . . . . A? 1 ✓111.11 ".11AS PAU $wlp, Pon, Aransit Center Puget Soundrm ce Dos Nk ro SMMIU 5 24Nh St Kent Owe - South 272nd Street 4ed ad M, Kent/Des Moines5 `V�i1r'am m3 "*2400,m w .............. l'll,—,—,)"vZ . )))) ............ ........... . . . . . . . . . . . . . . . . A? 1 ✓111.11 ".11AS PAU $wlp, Pon, Aransit Center Puget Soundrm W, g1w, C9 9) Des Moines N Kent Owe - South 272nd Street 4ed ad M, Kent/Des Moines5 `V�i1r'am WIP, 1r¢ "*2400,m S math st w A'A'dow 11 ON hill Fe&4 Way zuado I 1111,,JW l'll,—,—,)"vZ . )))) ............ ........... . . . . . . . . . . . . . . . . A? 1 ✓111.11 ".11AS PAU $wlp, Pon, Aransit Center Puget Soundrm W, g1w, C9 9) Ji Kent Owe - South 272nd Street 4ed ad M, mew, uQ&q, S math st w Sk 11 ON hill Fe&4 Way wrw S4. Park 4 nm 'Il A rederal way Aransit Center COor"r4l"or, Ji 5 �111 Srep( take 11 Sk 11 ON hill Fe&4 Way Park S 6th St 31 T 31M , -P 1 9 v S, v , 'Il A rederal way Aransit Center COor"r4l"or, Ji 1= 53 00:St 99 f A 344111 'A But that didn't carry as much weight as the impact to limit [planned] transit -oriented development. "With or without Dick's Drive -In, the site would have been removed," [Kent Mayor Dana] Ralph thanked city long range planning manager Hayley Bonsteel and city liasion to Sound Transit Kelly Peterson for their work on getting the site off the list. Ordinance No, 4009 Adopted December 13,18 By Kent CO Council O of Kent 220 Fourth, Avenue South Kent, WA 980,32 Alonvan Abbott, FiWt 5d Regional CoamR AqcA &rnvng1wfn, Highli1v L� rrrrrrrrffiL" RRL Obe Chalmers, King County Metro Matthew Chan, Sun -,';Prwvs Eric ChWs, Sound Transit Doug CbttvRr, PUget,Sound Energy tail 's"ele "L,W-007 Dw vd CWdberq, „ Lea ra resit Ckennis Hartivick, tarty, fSea Trc• Da vid Hoffman, Ru"ent &'gels A dWsaryrc �krLL k r AhLrRL w 5inoxf 7r rsfL Bob Larson, (76jelmth, LLC L LYiA ghlin . ray/or, Resources L r7r A)ra,hY L etwel, DASHlUith, LRLs °:Irma CLr Alter Martinac, E' R Real Estate »carr lir, Oty ofSa blr litie Dallas Radkvd, Gfr nfiel i Pof k L rrrrrrunity Robert ° -Valtery, Mondo Land . w1h nt Brian "L lir rrr , Water 7hornpscw Architects Rich Wa,r, 8dyfis Architects 7 RrL;* LLcrrr lav Consultant "beam Dirk alWAssociates Collaboration Pr le, Inc Multi-family, new Multi-family, addition Residential,new Residential, addition Revisions s 7 7 4 5 4 4 3 4 6 2 6 2 2 0 rd e word rtreaning change tinuous improvement • Staff from Planning, Building, Permit Center, Public Works, and Fire spent a week with State Auditor in a "Lean Academy" tv process improvements find 4. Planners as project leads for -,,building permitprocess 5. Bluebeam 60 Electronic plan submittal and online applications 7 Move inspector in-office customer time to afternoon 8. Focused c , saf�11brs of 9-4 osk and online 14. Correct inconsistencies on website, handouts, forms 15. Centrally locate plans and establish checkout procedures 16. Consistency in records (e.g., addressing, document naming) 17. GIS in Amanda Commercial, addition Multi -family, new Multi -family, addition !eion COFW Kaizen 6 5 7 4 Residential, new 4 Residential, addition 3 Revisi6 6 4 6 4 3 3 2 2 All New Elementary School Projects South King, North Pierce County Federal Way Average Approval • All Others - Approval 10.0 First Development Building Permit Clays Taken Elementary School Permit Agency Application Issued to Approve Birney Tacoma 12/8/2017 5/24/2019 532 Covington Covington 3/1/2016 8/1/2017 518 Des Maines Des Moines 7/17/201.7 6/28/2018 345 Braze Tacoma 6/1/2018 5/7/2019 340 Emerald Hills Bonney Lake 7/1/2017 5/1/2018 304 Harvard Pierce County 10/31/2018 8/20/2019 293 Lake Grove Federal Way 1/10/2019 10/22/2019 285 James Sales Pierce County 10/30/2018 7/31/201.9 274 Fir Grove Pierce County 8/17/2017 5/11/2018 257 Vildrood Federal Way 1/10/2019 10/4/2019 267 Sartori Renton 9/2/2016 5/1.0/2017 250 Dessie F Evans Pierce County 9/28/2017 5/17/2018 231 Tehaleh Heights Pierce County 4/27/2017 11/29/2017 215 Pope Pierce County 11/20/2018 6/21/2019 213 Mirror Lake Federal Way 1/10/2019 7/26/2019 197 Lake Wilderness Maple Valley 1/13/2016 6/17/2016 155 Federal Way Average Approval • All Others - Approval 10.0