Council PKT 11-09-1999 Special/Study SesionAGENDA
FEDERAL WAY CITY COUNCIL
SPECIAL/STUDY SESSION
Council Chambers - City Hall
November 9,1999 - 6:00 p.m.
(www. cL federal-way, wa. us)
in-,
CALL MEETING TO ORDER
1999-2000 PRELIMINARY BUDGET ADJUSTMENTS
- DEPARTMENT PRESENTATIONS
~,~-' ~.~~ /hty f Federal Way
Pm oPOSEB BUBGET CALENbAP,
Council Study Sessions - Special Meetings City
Manager Presents Proposed Budget:
Public Hearing No. l:
Property Tax Ordinance - I st Reading:
Council Study Sessions - Special Meetings
Department Presentation:
Council Discussion
Public Hearing No. 2:
Council Deliberation:
Property Tax Ordinance - 2nd Reading and
Adoption:
Budget Ordinance - 1st Reading:
Budget Ordinance - 2nd Reading and Adoption:
November 2 6:00 p.m.
November 2 7:00 p.m.
November 2 7:00 p.m.
November 9 6:00 - 9:30 p.m.
November 15 6:00 - 9:30 p.m.
November 16 7:00 p.m.
November 16 7:00 p.m.
November 16 7:00 p.m.
November 16 7:00 p.m.
December 7 7:00 p.m.
Unless otherwise noted, all meetings are conducted in conjunction with regular Council meetings.
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CITY OF
November 2, 1999
Honorable Mayor, City Council, and Fellow Residents:
This memorandum will transmit to you the City's mid-biennium budget review process and
recommended adjustments for the 2000 Budget.
Starting this evening, the City council will receive staff briefings on the proposed budget adjustments,
which we anticipate to conclude on November 9~h. A special meeting has been scheduled for November
15th, where the Council will begin the deliberation process, which could result in the adoption of the
property tax levy and budget adjustment on November 16u' and December 7th, respectively.
Revenue Adjustments
The proposed budget adjustment includes an inflationary adjustment for property tax and an adjustment
for building/land use fees at 3.2%. The 3.2% inflationary factor is based on the CPI-W for the Seattle
area for the twelve months ending June 1999.
Property Tax:
With the inflationary adjustment, the City's property tax levy rate will be reduced from the existing
$1.53 to $1.50 per $1,000 of valuation due to an average 6.9% growth in assessed value. The proposed
City property tax amount is also below the amount allowed under the Referendum 47 limit due to unused
past capacities. In addition to this inflationary increase, the City will also receive property tax
collections from a recent annexation and new construction of approximately $125,000, or 1.9%. These
figures are still preliminary and may be adjusted by the King County Assessor's Office.
Building and Land Use Fees:
Pursuant to Council fee resolution 98-281 adopted as part of the budget last year, an inflationary
adjustment is applied to building, land use and public work development fees, to prevent sporadic steep
increases.
Other Revenue Projection Changes:
Based on 1999 results, we are increasing some of the revenue projections. This includes $700,000 in
gambling tax, $200,000, in fines and forfeitures, and $100,000 in building permit fees. In addition, the
City will receive $438k in referendum 49 funding beginning in 2000. This revenue source must be used
for transportation and cannot be used to supplant current transportation programs. However, should 1-
695 pass, this revenue source would be repealed and would no longer be available.
Expenditure Budget
The 2000 budget adjustment reflects the City Council's priority to ~trengthen our community-based
public safety program with the formation of the Municipal Court. I have reviewed the four basic
governmental service categories and have refined it to better correlate with our service delivery system.
These four functions and related support systems form the structure for the delivery of basic municipal
services. City programs or services that do not fall into one of the four categories are considered
discretionary to the general fund and may be sustained by other financing sources such as public-private
partnerships, donations, contributions, grants, and user fees. The sustainability of our organization in the
long-term will require us to continue to focus on these basic functions.
· Protection of public safety, health, welfare and promotion of the common good;
· Enforcement of laws, codes and ordinances so as to ensure public safety and maintain an orderly
environment in which people can live, learn, work and play;
· Maintain public investment such as infrastructure, right of way, buildings, parks and the like;
· Mandates that are levied on the City through external contract or legislative changes without
accompanying revenue sources.
Highlights 0£ Changes
This year has been one of the best years in local economic activity since the City's incorporation in 1990.
This is reflected in the increase in sales tax collections, building permit applications, and the volume of
real estate transactions. Preliminary projections indicate the City will end the year with $2.25 million in
additional general revenues from sales, gambling, permit fee and other miscellaneous sources; and $1
million in additional restricted capital revenue from real estate excise taxes. These funds will provide
$1.4 million to bridge the gap for one year while staff and Council develop a long-term strategy for
managing the impact of 1-695, should the voters approve it; and still allow approximately $2.0 million in
capital programs. Should the voters not approve 1-695, I am recommending that Council set aside the
$1.4 million until next spring when we revisit Council goals and begin developing the 2001/02 biennial
budget.
Using preliminary programmatic recommendations developed by the former City Manager as a base, I
have worked with the department directors to ensure the proposed revisions to programs and services are
consistent with Council goals and the four basic functions of municipal government. In addition, it has
also been my objective to minimize adjustments to operations in order to preserve the City's flexibility in
the event 1-695 comes to pass. As a result of this analysis, I recommend the following modifications to
the adopted 2000 budgeted programs and services.
Operating Programs:
Protection: ·
Add 1 police officer for the Washington Criminal Justice Training program which
will be fully reimbursed by the State;
· Convert 2.5 FTE temporary Public Safety Department clerical assistants to regular
office technician positions at an estimated $44,000 annual cost;
· Add Public Safety equipment to be funded xvith a combination of seizure funds,
grants, donations, and traffic school revenues including: a critical incident
command vehicle; critical incident/hostage negotiation equipment; and traffic
reconstruction program and equipment;
· Replace 8 police patrol vehicles with replacement reserves, and retain the existing
8 for less demanding operations within the department;
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· Continue the City's participation in Airport Communities Coalition at $30,000;
Enforcement: · Add temporary assistance in Community Development Department for a six-
month period for sign code enforcement after the February 28, 2000 due date for
compliance for $39,000;
· Convert a contracted Associate Planner to a regular position, and increase intern
hours to cover the continued high permit activity level over the past two years,
both will be fully funded with the higher projected permit fees;
· Convert a contracted Public Works private development and capital project
inspector to a regular position, which will be fully funded by SWM fees;
Maintenance · Replace 4 general vehicles funded with replacement reserve;
· Replace 4 copiers with leased copiers, and continue the accumulation of
replacement reserve for future purchases if needed ($9,000/year);
· Provide maintenance for Wedgewood Park ($5,000/year);
· Provide maintenance for Celebration Park (1.25 FTE), which will bring the total
staffing level at the Park to two FTEs (of the 4 FTEs initially projected), and will
be fully funded from the Park's revenues. This was approved as part of the 1997
capital improvement program.
Mandates · Increase the jail service contract by $300,000 primarily due to higher level of
utilization and to a lesser degree, from fee increases;
· Add $80,000 in one-time consultant services to update traffic counts and to
provide the service level and economic analyses in preparation of the 2001
required comprehensive plan update.
These changes will add a total of 6.75 positions (3.5 PS, 1.25 Parks, 1 CD, and 1 PW) to the existing
staffing level, 4.5 of which are services currently provided through temporary help or contracts where the
associated work loads are anticipated to continue. The adjustments also require $150,000 one-time
funding ($80k comp plan, $30k ACC; and $40k sign code enforcement); and $358,000 on-going
resources ($300k jail contract, $9k copier replacement reserve; $5k Wedgewood park; and $44k
conversion of Public Safety positions). The projected revenue increase in 1999 and 2000 from gambling
and sales taxes, permit and other fees, grants, and donations will fully fund these budget changes in 2000.
Capital Projects:
Regardless of the result of 1-695 election, the City will have approximately $2.0 million available for
capital programs, for which I recommend your consideration of the projects listed below. The $2.0
million dollars are made up of $1.0 million from real estate excise tax, $29,000 parks mitigation funds,
and $977,000 one-time General Fund from higher revenues. The real estate excise tax and parks
mitigation funds are restricted for capital purposes and cannot be used to offset the operating impact of 1-
695. I am recommending these projects based on Council priorities identified in the 1999 capital
strategic planning process, as well as the Council's vision of creating a great community in which to live,
learn, work and play. In addition, many of these projects will maximize the leverage power of local
resources by providing matching funds to major grants.
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Recommended Capital Projects:
· Skate Park $
· Hylebos park (to match $100,000 grants from the state and King County) $
· BPA Trail Phase III (to match $620,000 in Federal pass through grants) $
· Alderbrook Park Play Equipment ($29K funded with parks mitigation funds) $
· Provide funding to 23rd Ave. S. widening project to match the $7.2 million in $
anticipated grants and developer contributions
* Fully fund the downtown revitalization project to cover the design guideline changes $
and increase in utility undergrounding costs
· Allocate the remaining funding to the proposed public safety (Police & Court) $
building to partially offset inflationary increases and to accommodate the addition of
the municipal court operation
250,000
50,000
150,000
0
660,000
300,000
567,000
Adjustments to incorporate prior Council action:
In addition to the aboYe proposed changes, the mid-biennium budget adjustment will also incorporate a
number of prior Council actions:
· Implement Municipal Court (11.55 FTE and $143,000 in expenditures, net of the projected increase
in fines and forfeitures revenue), approved by Council in March 1999;
· Add one CD Development Specialist position due to increased development activity and funded by
permit revenues as approved by Council in July 1999;
· Move the necessary amount from the current years' uncommitted City Manager contingency to fully
fund next year's contingency account per Council fiscal policy;
· Incorporate CDBG Grant funding and allocation previously approved by Council in August 1999;
· Add I police officer for the School Resource Officer program at Truman High School, which is fully
funded by the school service fee and grants as approved by Council in October, 1999.
These adjustments will add 13.55 FTEs to the existing staffing level and require $143,000 in on-going
resources, primarily for the Municipal Court operation.
Conclusion
In preparing this mid-biennium budget adjustment, it is of paramount importance to me that the revised
budget meets the stability, sustainability, and predictability tests into the near future. Barring the 1-695
impact, the City's basic fiscal condition is sound and stable, and provides some flexibility in
accomplishing overall Council goals during 2000. If 1-695 is approved, the City will need to examine
service options in early 2000 for potential changes during 2001 and beyond. It will be my goal to
position the City organization so it can professionally perform and effectively deliver municipal
programs and services into the 21st century.
David H. Moseley
City Manager
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CITY OF FEDERAL WAY
PROPOSED BUDGET CALENDAR
Council Study Sessions - Special Meetings
City Manager Presents Proposed Budget:
Public Hearing No. 1:
Property Tax Ordinance - 1 st Reading:
November 2 6:00 p.m.
November 2 7:00 p.m.
November 2 7:00 p.m.
Council Study Sessions - Special Meetings
Department Presentation:
Council Discussion
November 9
November 15
6:00 - 9:30 p.m.
6:00 - 9:30 p.m.
Public Hearing No. 2:
Council Deliberation:
Property Tax Ordinance - 2nd Reading and
'Adoption:
Budget Ordinance - 1 st Reading:
November 16 7:00 p.m.
November 16 7:00 p.m.
November 16 7:00 p.m.
November 16 7:00 p.m.
Budget Ordinance - 2nd Reading and
Adoption:
December 7 7:00 p.m.
Unless otherwise noted, all meetings are conducted in conj unction with regular Council
meetings.
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1)
FEDERAL WAY CITY COUNCIL
MID-BIENNIUM BUDGET ADJUSTMENT - BUDGET HEARING NO. 1
TUESDAY, NOVEMBER 2, 1999
INTRODUCTION:
This is the first public hearing on the City's mid-biennium budget adjustment,
which will modify the City's revenue and expenditure budget for 2000. The purpose of
the preliminary hearing is to solicit input from the public during the development stage of
the City's budget.
Earlier this evening, the Council received an overview of the proposed
adjustments to the year 2000 budget. A Council study session is scheduled on November
9, when city departments will make presentations on the proposed changes. After that
meeting, council will deliberate on November 15 and November 16 and finalize
adjustments on November 16 and December 7 council meetings. The public will have
the opportunity to comment throughout the process and a second public hearing will be
held at the November 16 council meeting.
A complete budget meeting calendar is available at the table directly outside the
Council Chamber. You can also obtain the information by contacting city clerk's office
or through the City's Web site. All meetings will be conducted publicly and will provide
an opportunity for public comment.
2) CONDUCT HEARING:
· The first public hearing for the adjustment of the City of Federal Way 2000 budget is
now open. Public testimony will be limited to three minutes per person.
PUBLIC COMMENT
· If you have not signed up, but wish to speak on this matter, please raise your hand.
· · Seeing no additional comment, is there a motion to close the public hearing?
The first budget public hearing is now closed.
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1)
FEDERAL WAY CITY COUNCIL
MID-BIENNIUM BUDGET ADJUSTMENT - PUBLIC HEARING NO. 2
TUESDAY, NOVEMBER 16, 1999
INTRODUCTION:
This is the second public hearing pursuant to RCW 35A.33.055 on the City's proposed
budget adjustment for 2000 and 2000 Property Tax Levy.
2)
CONDUCT HEARING:
· The hearing for the Federal Way 2000 budget adjustment is now open. Public
testimony will be limited to three minutes per person.
PUBLIC COMMENT
· If you have not signed up, but wish to speak on this matter, please raise your hand.
· Seeing no additional comment, is there a motion to close the public heating?
The budget public hearing is now closed.
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ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF FEDERAL WAY, WASHINGTON, FIXING THE
PROPERTY TAX AMOUNT FOR THE YEAR 2000.
WHEREAS the City Council of the City of Federal Way has
adopted its budget for the 1999/00 biennium which includes an
increase in property tax levy for the year 2000; and
WHEREAS the City Council, in the course of considering
the mid-biennium budget adjustment has reviewed all changes in
projected revenues and expenses and other city obligations for the
city during the year 2000; and
WHEREAS while the national inflation as measured by the
implicit price deflator for personal consumption is 1.42%, the
local inflation, as measured by consumer price index (CPI-W), is
3.2% for the year ending June;
NOW, THEREFORE, BE IT ORDAINED, by the City Council of
the City of Federal Way that the limit factor for the regular levy
for the calendar year 2000 shall be 103.2% based on local inflation
plus an additional 1.9% for the increase in assessed value
ORD. # , PAGE 1
resulting from annexation and/or new construction for a total of
105.1%.
Section 1. Levy. There shall be and there is hereby
levied against the property in the City of Federal Way, Washington,
a municipal tax for the year 2000 for the purposes of paying the
of municipal government in the amount of
general expenses
$7,007,358.
Section
2. Severabilit¥. The provisions of this
ordinance are declared separate and severable. The invalidity of
any clause, sentence, paragraph, subdivision, section, or portion
of this ordinance or the invalidity of the application thereof to
any person or circumstance, shall not affect the validity of the
remainder of the ordinance, or the validity of its application to
other persons or circumstances.
Section 3. Ratification. Any act consistent with the
authority and prior to the effective date of this ordinance is
hereby ratified and affirmed.
Section 4. Effective Date.
effect and be in force five
passage, as provided by law.
ORD. # , PAGE 2
This ordinance shall take
(5) days from the time of its final
this
PASSED by the City Council of the City of Federal Way
day of , 1999.
CITY OF FEDERAL WAY
ATTEST:
MAYOR, RON GINTZ
CITY CLERK, N. CHRISTINE GREEN, CMC
APPROVED AS TO FORM:
CITY ATTORNEY, LONDI K. LINDELL
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.
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ORD. # , PAGE 3
/0
Mid Biennium Budget Adjustment Summary
Available Funding:
Sales Tax
Gambling Tax
Referendum 49 Funding 4
Permit Fees 1
Fines & Forfeitures 1
Public Safety Grants 1
$ 750,000
800,000
430,000
140,000
125,000
Total Available Funding
$
700,000
438,000
Recommended New Programs:
CD - Sign Code Compliance - (funded for 6 months & then review)
CD - Associate Planner (funded w/permit fees - $60K)
CD - Increase Intern Hours (funded w/permit fees - $13K)
CD - Comp Plan Update - Consulting Services
CD - Airport Coalition Dues
MS - Vehicle Replacement (4) (funded w/repl reserves & proceeds - $51K)
MS - Replacement of 4 Copiers (convert to lease; continue to collect reserves - $22K)
PAROS - Ongoing M & O for Wedgewood Park
PAROS - Celebration Park Maintenance (funded w/Celebration Park fees - $52K)
PS - Jail Contract cost increase
PS - Patrol Vehicle Replacement (8) (funded w/replacement reserves - $209K)
PS - Critical Incident Command Veh (funded w/grant, seizure & donations - $120K)
PS - Wa Criminal Justice Training Officer (funded w/WSCJTC - $61K)
PS - Convert Temp Data Entry to FTE's (partial funded w/temp - total $85K)
PS - Traffic Reconstruction Prog - (funded w/traffic s~l revenue - $41K)
PS - Critical Incid/Hostage Neg Equip (funded w/grant & seizure- $129K)
PW -Conv. Contracted Capital Project Inspector to Staff (fund w/SWM - $30KJ$
PW - Traffic Counts to Update Transportation Model
PW - Comp Plan Update - Consulting Services
CM Recommeded New Programs
Implementing Prior Council Actions:
OM - Municipal Court Formation (costs not funded w/fees & contract)
C D - Development Specialist (funded w/permit fees: $41K)
PS - School Resource Officers (funded w/grant & contract - $61K)
1.00
1.25
2,245,000 1,138,000
39,000
40,000
30,000
9,000
5,000
300,000
1.00
2.50 44,000
15,000
25,000
1.00
6.75 (149,000)
11.55 -
1.00
1.00
(358,000)
143,000
Continue Implementation of Council Approved Programs
Total Proposed 2000 Adjustments
13.55 0.00 (143,000)
20.30 (149,000) (501,000)
Balance available under existing condition 2
Yes on 1-695:
4th qtr, 1999 MVET collection, distributed in 1st qtr. 2000
Revenue impact of 1-695
2,096,000 637,000
300,000
(2,056,000)
One-time fUndin~l and ongoin~l impact of !:695: ; :::$2;396;000 (1;419;000)
[~.,,.mJa.,~.h.; '1,~''"~]'
Excess nEET in 1999 $ 1,000,000 1,000,000
Balance available 2 977,000 2,733,000
Total Available Capital Funding! $ t,977,000 3,733,000
Capital Project Recommendation:
PAROS- Skateboard Park $ 250,000 250,000
PAROS - Hylebos 50,000 50,000
PAROS - Alderbrook Park Play Equip (funded w/fee-in-lieU - $29K)
PARCS - BPA Trail Phase III 150,000 150,000
PS - Public Safety & Muni-Court Facility 567,000 567,000
PW - Downtown Revitalization 300,000 300,000
PW - 23rd Avenue South 660,000 660,000
Total Capital Projects $ 1.977.000 1,977,000
Balance Available $ 1,756,000
Ongoing revenues are considered as net cost in the CM recommended New Programs
If No on 1-695, the projected available balance will be $2.1 million in one-time funding and $637K in ongoing for a total of $2.7 million in 2000
REET revenue in 2000 is projected to be higher than budgeted which will be available for allocation in 2001
If not overturned by 1-695, this funding must be used for transportation purposes w/o supplanting current funding
/ 9900newprgm Mid-Biennium Review (2) 1111/99
CAPITAL PROJECT LIST AS PRIORITIZED BY COUNCIL - MAY 1999
c E