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Council MIN 12-10-1991 Special MINUTES Federal Way City CQuncil 33530 1st Way SQuth Federal Way, Washington DECEMBER 10, 1991 - SPECIAL SESSION - 6:30 P.M. I. CALL MEETING TO ORDER A Special Session city council meeting was called to order by Mayor Debra Ertel, at the hour of 6:37 p.m., on December 10, 1991, in council Chambers, Federal Way City Hall, 33530 First Way South, Federal Way, Washington. Councilmembers present: Jim Handmacher, Lynn Templeton, Deputy Mayor Mary Gates, Joel Marks, Bob Stead and Jim Webster (arriving at 6:47 p.m.). Staff present: J. Brent McFall, city Manager; Sandra Driscoll, City Attorney, and Maureen Swaney, City Clerk. II. ORDINANCES FOR ENACtMENT Mr. McFall asked John Moir, Finance Oireotor, to update the council on the model for calculation of property tax levy for 1992. a. AN ORDINANCE OF THE CITY OF FEDERAL WAY, WASHINGTON, FIXING THE TAX LEVY FOR THE YEAR 1992 (City Staff Contact John Moir) Motion to suspend the rules and enact the ordinance at one reading by Councilmember Templeton; Second by Deputy Mayor Gates. Motion passed as follows: Handmacher Gates Marks Webster Yes Yes Yes Yes Templeton Ertel Stead Yes Yes Yes Councilmember Templeton moved to proposed a 1992 levy rate of $1.585; Second by Councilmember Stead. The council discussed whether to set the rate first, or aþprove the budget first; Councilmember Handmacher suggested the b4dget be adopted first and then a rate established. Councilmember Stead said he was prepared to vote "no" on this rate because be woUld like to fund the City Manager's proposed budget. Councilmember Webster moved to table this motion until the 1992 ORIGINAL city Council Minutes Page Two - December 10,1991 budget was adopted; Second by douncilmêmber Handmacher. passed as follows: Motion Handmacher Gates Marks Webster Yes Yes Yes Yes 'l'empleton Ertel Stead Yes Yes Yes b. AN ORDINANCE OF THE CITY OF FEDERAL WAY, WASHINGTON, RELATING TO BUDGETS AND FINANCE, ADJUSTING THE EMPLOYEE POSITION AUTHORIZATIONS FOR 1991, REVISING THE 1991 BUDGET AND ADOPTING THE 1992 BUDGET (City Staff Contact John Moir) Mr. McFall reviewed a memorandum from Mr. Moir, dated December 9, 1991 and entitled "1992 Budget Adjustments." A copy is attached hereto as Exhibit "A" and made a part of the minutes. Discussion continued on fund balances and their computation. Councilmember Handmacher suggested a strategic Reserve Fund be established. The meeting recessed at 7:26 p.m. and r$convened at 7:31 p.m. Councilmember Handmacher moved to sUspeQd the rules and enact this ordinance with one reading; second by Councilmember Templeton. Motion passed as follows: Handmacher Gates Marks Webster Yes Yes Yes Yes 'l'e1l\pleton Ertel Stead Yes Yes Yes Councilmember Webster moved to approve the 1992 budget with the following changes: include changes as proposed in the December 9, 1991 memorandum from Mr. Moir to the City Manager and to increase the property tax revenues to balance the council approved expenditures, and reduce the police budget from $7,110,000 to $6,840,000; Second by CouncilmeDlber Marks. Councilmember Handmacher moved to amend this motion by setting aside $2 million into a Strategic Reserve Fund to be generated primarily by $1.046 million ending balance projected in 1992 and the $951,868 no longer to be used as a S~ loan transfer; Second by Councilmember Templeton. Councilmember aandmacher said this action would show a prudent way of mana9'èillep,t. Deputy Mayor Gates supported this statement. Mr. Moir ~o~~ the council this action would reflect the financial values of ~he community to the bond rating agencies. councilmember Stead "aid the action was only "window dressing" and was uncertain wtlat function it would serve. Mr. Moir responded that the action will create discipline and explained the impacts; Councilmember Webster said it was creating City Council Minutes Page Three - December 10, 1991 a perception which recognized a "Rainy Day Reserve." Motion passed as follows: Handmacher Gates Marks Webster Yes Yes No Yes Templeton Ertel Stead Yes Yes Yes Deputy Mayor Gates moved to amend the bUdqet by adding $20,000 to the Human Services Budget for the hom4¡l1ess funding through the Multi-service Center; Second by CounCil$ämber Handmacher. Motion passed as follows: Handmacher Gates Marks Webster T$IIIp~latøn Erte~ stead Yes Yes No Yes Yes Yes No Motion to adopt 1992 Budget, by approvinq Ordinance, No. 91-115, as amended, passed as follows: Handmacher Gates Marks Webster Templeton Ertel stead Yes Yes No Yes Yes Yes Yes Motion to take the earlier tax levy motion from the table by Councillllember Handmacher; Second by Deputy Mayor Gates. Motion passed as follows: Handmacher Gates Marks Webster Templeton Ertel Stead Yes Yes Yes Yes Yes Yes Yes Councilmember Templeton withdrew hi. earlier tax levy rate motion; councilmember Stead consented to withdraw his second to the motion. Councilmember Webster moved the ordinahce setting the levy be adopted with General Fund revenue ot $5,030,505; Second by Councilmember Handmacher. Motion passed as follows to adopt Ordinance No. 91-116 with a levy rate of $1.572: Handmacher Gates Marks Webster Templeton Ertel Stead Yes Yes No Yes Yes Yes Yes city council Minutes Page Four - December 10,1991 c. AN ORDINANCE OF THE CITY COUNCIL OF ~HE CITY OF FEDERAL WAY, WASHINGTON, AMENDING ORbINANCE NO. 90-32 BY AMENDING THE RATE STRUCTURE OF THE STORM AND SURFACE WATER UTILITY (City Staff Contact Carey Roe/Carolyn Lake) Motion to suspend the rules and enact Ordinance No. 91-117 at one meeting by Councilmember Templeton; Second by Deputy Mayor Gates. Motion passed as follows: Handmacher Gates Marks Webster Yes Yes Yes Yes Templeton Ertel Stead Yes Yes Yes Motion to adopt Ordinance No. 91-117 by Councilmember Templeton; Second by Councilmember Stead. Motion passed as follows: Handmacher Gates Marks Webster Yes Yes No Yes T81nPll;lton Erte atea Yes Yes No ill. ADJOURNMENT The meeting adjourned at 8:13 p ;2-16.91 ?7lS f¡¿ "Il" C I T Y 0 F FED ERA L WAY MEMORANDUM TO: J. Brent McFall FROM: John Moir DATE: December 9, 1991 SUBJECT: 1992 Budget Adjustments There are several adjustments and clarifications reflect city council and staff recommendations: necessary to 1. As a clarification, the amount estimated for miscellaneous park improvements on page 82 of the 1992 Preliminary Budget document ($436,500) should include the authority to finance the tenant improvements for the Community Center project. The page heading should more appropriately be entitled "Park and Recreation Facilities." The tenant improvements would be required to convert a retail facility to a community center involving the construction of walls, locker /bath rooms, acoustical ceiling, wiring, heating/air conditioning, and fire protection/alarm systems. The cost of these improvements is estimated to be approximately $400,000. The City's share of these costs would be $200,000. 2. The Personnel Department budget included preliminary estimates for professional services, including recruitment and relocation expenses. These costs are more appropriately paid from the effected department budget from salary savings. The net effect of this and other technical adjustments will result in savings totalling $24,040. This amount will be available to finance other programs or increase the General Fund contingency. 3. Human Service funding increases total $98,610 for various agencies and the Human Services Roundtable membership. These costs will be offset by reductions in the General Fund Contingency Account. 4. The financial assistance from the state Drugs Draw-the- Line Program (a grant request for $19,252) will not be available in 1992 for the CARES (latch-key) program with the schools for children in grades kindergarten to sixth grade. City assumption of all program costs will result in reducing the Contingency Account by $19,252. Page Two-1992 Budget Adjustments 5. The street Fund Budget omitted the interfund transfer of $144,000 to the Surface Water Management Fund for its share of surface water fees associated with street system impervious surfaces. This amount can be properly assigned to the street Systems budget by reducing "other Capital Improvements" by an equal amount. This will not impair the 1992 capital project work program. The revenues were included in the Surface Water Management Fund in the Preliminary 1992 Budget. 6. The increase in the Surface Water Management Fees will require an increase of $244,800 in the interfund transfer from the Street Fund to the Surface Water Management Fund. This increase cannot be absorbed by the street Fund without adversely impacting the 1992 street capital program. Therefore, the operating transfer from the General Fund to the street Fund will increase from $437,390 to $682,190. The increased General Fund transfer amount will be offset by a corresponding reduction in the General Fund contingency account. (The General Fund Contingency Account will total $280,383 after all adjustments contained in this memorandum.) 7. The Surface Water Management fee increase eliminates the need for the General Fund loan to the Surface Water Management Fund. A loan of $951,868 was included in the Preliminary 1992 Budget. This amount will be used to increase the General Fund strategic Reserve. 8. The City Manager is recommending a reduction in travel and training expenditures in the 1992 Preliminary Budget totalling $48,661 ($41,786 from the General Fund, $5,250 from the Street Fund, $1,205 from the Data Processing Fund, and $420 from the Surface Water Management Fund). The savings in the training have been reallocated to capital items in the Surface Water Management and Data Processing Funds. The savings in the General and Street Funds have been used to offset increases in other categories of expenditures. 9. The funding for arts programming in 1992 has been reduced by $1,320 in the General Fund. 10. The original proposed use of funds for the Community Development Block Grant (CDBG) included $22,000 for the Federal Way Youth Services Annex. However, this project was not workable because it constituted a non-conforming use under the City's land use code. Staff was able to utilize the $22,000 for three additional housing rehabilitation projects. The proposed use of funds has been adjusted accordingly. 11. A half-time intern position has been added to the city Manager's budget for 1992 at the cost of $8,320 with a corresponding reduction in the General Fund Contingency Account. cc: management team aUDGET ADJUSTMENTS TO THE PRELIMINARY BUDGET DOCUMENT DEPARTMENT/FUNCTION ITEM City Council Human Services Roundtable 10,000 Training (2,110) City Manager Training (8.360) Intern 8,320 Parsonnel Professional Services et al 2,240 (26,280) Training (2,631) Finance Admin Training (480) Finance Clerk Messenger Services (1,200) Training (500) Finance Accounting Training (1,440) Finance Purchasing Training (675) Judicial Law Training (2.350) Hearing Examiner Transcripts . Community Development-Admin Training (3,570) Community Development-LR Plens Training (2,840) Community Development-Land Use Training (5.565) Community Development-Bidg Insp Training (3.650) Police King County Contract Jail Public Works 244,800 Park Acquisition/Lease Parks Admin Training Parks Maintenance Training (3,090) Recreation Training (5.310) Arts Programming (1,320) Human Services Training Increased agency tunding 88,610 CARES Program 19,252 Pay Plan Adjustment Subtotal Operating Budget 373,222 (71,371) Capital Equipment BUDGET ADJUSTMENTS TO THE PRELIMINARY BUDGET DOCUMENT DEPARTMENTIFUNCTION ITEM ADDED SUBTRACTED Park & Racraation Facilities GIS Start-up Special Studies Recycle Grant Matching Subtotal Non-recurring Items 0 0 Contingency Account (301,851) Total General Fund 71,37t (71,371) Public Works Admin Training (1,050) Public Works.Customer Services Training (2,830) Public Works-Traffic Services Training (785) Public Works.Street Systems Training (785) SWM Fees 388,800 Public Works-Capital Projects (144.000) Total Street Fund 388,800 (149,250) Arterial Street Fund First 114% REET Fund Second 114% REET Fund Grants Fund CDBG Fund Paths & Trails Fund . Surlace Water Management Fund Training (420) Small Capital Proiects 420 Debt Sarvice Fund Risk Management Fund Support Services Fund Data ProcessinglTelecomm Fund Training (1,205) Capital Equipment 1,205 Fleet & Equipment Fund Buildings Fund Total All Funds 461.796 (222,246) 1;2. -10 JI/ ---yYJ S £k /',4'- MEMO Date: December 10th 1991 To: From: Brent McFall, City Manager Philip Keightley, Public Works Director 7 Cary Roe, Surface Water Manager (~ or; Proposed 1992 SWM Rate Increase Subject: The attached SWM rate analysis spread sheet highlights the current and proposed rate and revenue scenarios as discussed at the council Budget session on Friday, December 6th 1991. The current rate for the residential and very light user classes increased from $29.89 per year ($26.07 base + $3.82 billing charge) to $74.21 per year ($70.39 base + $3.82 billing charge).This results in a total annual charge that is less than the approximately $80 per year that was communicated at the last budget meeting. This rate proposal results in a 2.7 times increase of the base rate of $26.07. However, when the unchanged billing charge of $3.82 is taken into consideration, the net increase in the annual charge translates into a 2.48 times the current total charge. King County SWM rate increased from $29.89 per year to $85.02 per year. This is a 3.11 times the base rate of $26.07 per year or 2.84 times the current $29.89 per year total charge. 1992 ANNUAL RESIDENTIAL RATES City of Federal Way rate $74.21 King County rate $85.02 SURFACE WATER MANAGEMENT RATE ANALYSIS Dated December 9,1991 Current Proposed Annual Annual Current Proposed User Class Number Rate Rate(a) Revenue Revenue Residential 15,447 $26.07 $70,39 $402,703 $1,087,299 Very Light 34 26,07 70.39 886 2,393 I,.ight 58 60.83 164.24 3,528 9,526 .xierate 866 126.01 340,23 109,125 294,637 ModlHeavy 1,398 243.33 656.99 340,175 918,473 Heavy 652 308.51 832.98 201,149 543,101 Very Heavy 286 404,10 1,091.07 115,573 312,046 City Streets 144,000 388,800 State Highways 14,000 37,800 Subtotal 18,741 na 1,331,139 3,594,075 Billing Charge na 3.82 3.82 71,591 71,591 Total 18,741 na na $1,402,730 $3,665,666 (a) 2.7 times current rate.