Council MINS 03-03-1998 Special
FEDERAL WAY CITY COUNCIL
Council Chambers - City Hall
SPECIAL MEETING
FINANCE/ECONOMIC DEVELOPMENT /REGIONAL AFFAIRS
COUNCIL COMMITTEE/COMMITTEE OF WHOLE
March 3, 1998 - 5:15-6:30 p.m.
MINUTES
I.
CALL MEETING TO ORDER
Councilmember Gates, Chair of the Finance/Economic Development/Regional Affairs Committee,
opened the special meeting of the Federal Way City Council Committee and Committee of Whole
at the hour of 5:15 p.m., in Council Chambers, City Hall, Federal Way, Washington.
Councilmembers present: Mayor Ron Gintz, Deputy Mayor Michael Park, Councilmembers Jeanne
Burbidge, Jack Dovey, Mary Gates, Linda Kochmar, Phil Watkins.
City Staff present: City Manager Kenneth E. Nyberg, Deputy City Manager Philip Keightley, City
Attorney Londi Lindell, Directors Iwen Wang, Greg Moore, Jenny Schroder, Cary Roe, Chief Ron
Wood, City Clerk Chris Green, Management Services Admin Assistant Marj Currie-Hicks.
II.
BUDGET POLICY REVIEW
City Manager Nyberg reviewed the city's budget policies and budget balancing strategies in
preparation of the 1999/2000 city budget. Mr. Nyberg and Management Services Director Iwen
Wang responded to a variety of Council questions. Attached hereto, as Exhibit "Au, is a copy of
Management Services Director lwen Wang's memorandum to Council dated February 27, 1998,
outlining the issues covered in this session.
III.
ADJOURNMENT
There being no further business to come before the Council, Councilmember Gates adjourned the
special meeting of the Federal Way City Council Committee at 6:40 p.m.
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M3lJ C me-Hicks
Management Services Admin Assistant II
ORIGINAL
CITY OF FEDERAL WAY
MEMORANDUM
Subject:
February 27, 1998
Finance Economic Development and Regional Affairs Committee
Iwen Wang, Management Services Director
Review Budget Policies and Assumptions
Date:
To:
From:
Action Reauired
Review and discuss (I) Budget Policies, and (2) Budget Balancing Strategies, and forward the same to full
Council for consideration and action.
The attached document is divided into these two sections and the areas Council has expressed interest in
reviewing and/or discussing are identified for consideration.
Backl!round
Budget Policies:
The City's Budget Policies are established by City Council to ensure the consistent application of
philosophy, practice, and methods in the administration and allocation of the City's resources. They are
important tools internally in establishing order and consistency, and externally in creating confidence in the
bond market as we are a relatively young organization.
These policies were initially established in 1991 and have been reviewed/revised each year as part of the
budget plaruùng process. The review of this section will include a discussion of the four basic municipal
functions; the structure and key elements of the existing policies, and the review of specific areas identified
by the Council.
Budget Balancing Strategies:
The costs to provide municipal services have a tendency to escalate at a pace faster then revenue growth.
Between 1991 to 1995, the City's general fund operating expenditures grew at an average of 9.4% per year
and the revenue growth at 5.5% per year, compared to the 3% inflation rate. Part of the high expenditure
growth rate is attributable to the startup nature during the first few years of cityhood. However, as the City
approached the 1996 Budget, it become apparent that it must control the cost of municipal services so costs
do not outpace revenues.
To ensure our City functions at a sustainable level, a set of revenue increase and cost control strategies
were instituted in 1995 for the 1996 budget year, and further adjustments were made during the 1997/98
Budget. In addition to staff reductions, the strategies called for reduction in funding for the Arts and
Human Services programs and a switch trom the cost recovery principle to a total subsidy approach in
funding parks and recreation programs. A number of activities were restored temporarily with one-time
monies. These sections will review existing strategies; review items funded with one-time money, and
review 1996 Council priority in allocating one-time funds.
'"
Next Steps:
I. March 17 Council Committee of the Whole;
Ifneeded, a follow-up FEDRAC discussion at its March 24 (or March 31, if rescheduled) meeting; and
April 7 Council Committee of the Whole;
2. Final adoption on Council mini budget retreat on April 29.
The City's management staffwill be available during these discussions for any clarification and to answer
questions.
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EXHIBIT /J
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