07-07-2020 BudgetCity of Federal Way
Financial Update
July 07, 2020
Presented by:
Ade Ariwoola, Finance Director
Update On Major Revenues
1.Sales Tax –36% of GF. 2.Property Tax –26% of GF.3.Building Permit Fees –8%4.Traffic Safety (Red Lights)5.Utility Tax –18%6.Prop 1
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Jun Jan-June Jul Aug Sep Oct Nov Dec YTD Total
2019 Actual 1,229,332 6,180,166 1,263,066 1,502,252 1,401,269 1,438,593 1,528,439 2,595,078 15,908,863
2020 Budget 1,232,492 6,196,051 1,266,313 1,506,113 1,404,871 1,442,291 1,532,368 2,601,748 15,949,755
2020 Actual 1,154,633 6,166,733 1,076,366 1,280,196 1,194,140 1,225,947 1,302,513 2,211,486 14,457,381
Sales tax as % of year 2020 General Fund (GF) budgeted revenue 36.14%
77,859 $1,784,263 1,492,374
93.68%11.19%-9.36%
Sales Tax Revenue
Projected loss
•YTD revenue is $6.17 million.
•YTD budget is $6.20 million.
•2019 YTD Actual was $6.18 million.
•April/June budget -$1.23 million.
•April/June revenue –$1.15 million.
•June revenue is 93.68% of budget
•2020 Actuals for July through December are estimates.
•Projected loss is about $1.5 million
•Sales Tax –36% of General Fund Revenue.
Sales Tax
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Jun Jan-June Jul Aug Sep Oct Nov Dec YTD Total
2019 Actual 53,981 5,783,222 48,704 66,266 215,895 3,554,163 1,141,913 107,265 10,971,409
2020 Budget 55,594 5,956,066 50,159 68,247 222,348 3,660,386 1,176,041 110,471 11,299,312
2020 Actual 610,518 5,802,300 48,000 66,000 222,000 3,241,938 1,176,041 157,307 11,324,104
153,766
25.48%
Property Tax Ravenue
Property Tax as % of year 2020 General Fund (GF) budgeted revenue
•YTD revenue is $5.80 million.
•YTD is only $154k short of 2020 budget
•YTD is more than 2019 YTD actual
•YTD budget is $5.96 million.
•2019 YTD Actual was $5.78 million.
•2020 Actuals for July through December are estimates.
•King County allowed property owners to delay payment till June.
•It may affect our cashflow but NOT revenue.
Property Tax
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Jun Jan-June Jul Aug Sep Oct Nov Dec YTD Total
2019 Actual 163,185 2,292,092 238,899 436,819 181,193 600,317 359,558 437,556 4,709,619
2020 Budget 240,387 1,730,416 298,966 302,991 251,788 329,693 253,269 228,651 3,636,161
2020 Actual 162,861 1,048,113 239,173 242,393 176,252 263,754 177,288 160,056 2,469,890
Building permits as % of year 2020 General Fund (GF) budgeted revenue 7.69%
Projected loss
Building Permit
$1,166,271
•Building Permit revenue is 7.69% of General Fund
•YTD revenue is $1.05 million
•YTD budget is $1.73 million, and
•2019 YTD Actual was $2.29 million
•2020 Actuals for July through December are estimates.
•April revenue was 63.33% of budget
•May revenue was 34.32% of budget
•June revenue was 67.75% of budget
•Projected loss is about $1.17 million
Building Permit
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Jun Jan - June Jul Aug Sep Oct Nov Dec YTD Total
2019 Actual 405,464 1,932,350 309,469 237,046 249,582 299,469 287,654 261,679 3,577,248
2020 Budget 430,938 2,053,756 328,913 251,939 265,262 318,284 305,726 278,120 3,802,000
2020 Actual 112,718 1,307,541 197,348 214,148 238,736 286,456 275,154 250,308 2,769,691
26.16%63.67%
Projected loss 746,214 1,032,309$ Required Reserve $1.2 million
Traffic Safety Revenue
•June revenue was 26.16% of budget
•May revenue was 35.24% of budget
•April revenue was 79.62% of budget
•Potential revenue loss is about $1.0 million
•The fund is not GF, but it funds positions and other items of GF
•This revenue stream funds 1 Lieutenant, 8 police officers, and
emergency communication system.
•Stay at home order has affected this revenue and as more people
tele-work the revenue will continue to decline for a while.
•2020 YTD revenue is 63.68% of budget
Traffic Safety (Red Light)
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Jun Jan - June Jul Aug Sep Oct Nov Dec YTD Total
2019 Actual 630,209 3,880,539 617,562 607,842 609,077 670,599 597,293 1,610,557 8,593,468
2020 Budget 671,839 4,136,879 658,357 647,995 649,311 714,897 636,749 1,716,947 9,161,135
2020 Actual 602,558 3,832,761 625,439 615,595 616,846 679,152 604,912 1,631,100 8,605,804
Projected loss 304,118 $555,331
Utility Tax
•Potential loss is minimal but it affects GF
•Commercial buildings use the most utility and pay the largest share.
•$8.47 million was transferred into General fund in 2019.
•$8.56 million is expected to be transferred into General Fund in 2020.
•Its major source of funding for FWCC, DBC, and Prop 1.
•Utility tax on Water and Sewer law suit was delivered in City’s favor
•The information below is based on current budget
•July –December are estimates
•Utility tax for Storm water is not available for June.
Utility Tax
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Jun Jan-June Jul Aug Sep Oct Nov Dec YTD Total
2019 Actual 184,257 1,134,011 180,122 177,287 177,647 195,591 174,211 469,746 2,692,872
2020 Budget 182,547 1,192,602 178,451 175,643 175,999 193,777 172,595 465,388 2,737,002
2020 Actual 175,868 1,119,498 169,529 166,860 167,199 184,088 163,965 442,119 2,589,126
Projected loss 73,104 $147,876
Utility Tax Prop 1
•Potential loss is minimal but it affects GF
•This revenue stream funds 1 Code Compliance Officer, 2
Prosecutors, 1 Court Clerk, 0.5 Judge, 1 Maintenance Worker, 1
Record Specialist, 17 Police Officers, and 2 Lieutenants.
•It usually doesn’t generate enough revenue to cover required
items.
Utility Tax Prop 1
What To Come
1.We will survive 2020 and FW will do better. a)Utility tax on Water and Sewerb)Staff levelc)Pay leveld)SCOREe)SCORE ADPf)Reserveg)Sound Transith)Top Sales tax payers
2.What to keep an eye out for is 2021.a)Used up retro savingsb)Current labor agreements –higher salary and benefit costsc)Closed business –less revenued)Pandemic –less business activitiese)Real Estate market –less funding for capital and debt paymentsf)Construction –less REET revenues and Sales tax on construction materialsg)Spending –less spending less tax revenueh)Unemployment –increase social services and less public spendingi)Recession-Top Sales tax payer-lower revenue due to lower spendingj)We will feel the recession BUT we will still do better than other cities
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Questions?
Thank You