Council PKT 11-15-1999 Special/Study Session*REVISED *
AGENDA
FEDERAL WAY CITY COUNCIL
SPECIAL/STUDY SESSION
Council Chambers - City Hall
November 15, 1999- 7:00 PM
(un,nv. ci.f ederal-w~,, wa. US)
CALL MEETING TO ORDER
1999-2000 PRELIMINAKY BUDGET ADJUSTMENTS
EXECUTIVE SESSION
Pending Litigation Pursuant to RCW 42.20.110(1)(i)
ADJOURNMENT
2~ REVISION (*)
PUBLIC NOTICE
CITY OF FEDERAL WAY
CITY COUNCIL
1999-2000 BIENNIAL CITY BUDGET ADJUSTMENT MEETINGS
The following meetings have been scheduled to consider 1999-2000 biennial budget adjustments:
NOVEMBER 2, 1999 - SPECIAL/STUDY SESSION - 6:00 p.m.
Preliminary Budget Adjustments Distributed to Council
NOVEMBER 2, 1999 - REGULAR MEETING - 7:00 p.m.
- PUBLIC HEARING (preliminary)/Citizen Comment on 1999-2000 Biennial Budget Adjustments
& Property Tax Rate
- Introduction Ordinance/Property Tax Rate
NOVEMBER 9, 1999 - SPECIAL/STUDY SESSION - 6:00 p.m.
Preliminary Budget Adjustments reviewed by Council
NOVEMBER 15,.1999 - SPECIAL/sTUDy SESSION- 7:00 p. m, (*)previously scheduled for 6:00p. m.
Preliminary Budget Adjustments reviewed by Council
NOVEMBER 16, 1999 - REGULAR MEETING - 7:00. p.m.
PUBLIC HEARING (required)/Citizen Comment on 1999-2000 Biennial Budget Adjustments
& Property Tax Rate
Enactment Ordinance/Property Tax Rate
Introduction Ordinance/Budget Adjustments & Fee Schedule
DECEMBER 7, 1999 - REGULAR MEETING - 7:00 p.m.
Enactment Ordinance/Budget Adjustments & Fee Schedule
/s/
N. Christine Green, CMC
City Clerk
(253) 661-4070
BUDCAL99/revi~d 11/4/99
Council Study Sessions - Special Meetings City
Manager Presents. PrOposed Budget:
Public Hearing No. 1.:,'
Pro~p, ert~..Tax ~di'n~?~-' 1st Reading':
Council:. StUdy SesSi6ns:.:- Special Meetings
Department Presentatson:
Council:DiscUSsion
Public.Hearing~No. 2: .....
CotmcflDehbe~txon~?.~?~ . ! ~'
Pr0pertg:.Tax Ordinate ~-'2nd Reading and
Budget.Ordinance.- l;StReadmg: '. ..
· Budget::Ordin~ee'.:-.~2h'd:;Reading ,,md'AdoPtion:
November 2
,, .' ~iq~;.;'~rfib-~f'~- ......
November 9
6:00 - 9:30 p.m.
l-N-o'i)cm¢i:-~' i'5 ....
November 16
November 16
7:00', 9:30 p.m..
7:00 p.m.I ·
7:00 p.m..~:~ ..
7:00 .p.m. "7
December 7 7:00 p.m. ':~.;'::'.,
,:; q, ! , :'::
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 9th. 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 16th and December 7~, respectively.
Revenue/Id]ustments
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 strengthen 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.
Hi~,hlil~hts o£ 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 with 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 cbde 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 onetime
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, $2.9,000 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
$ 5O,OOO
$ 150,000
$ 0
$ 660,000
$ 300,000
$ 567,000
A4justments to incorporate prior Council action:
In addition to the above proposed changes, the mid-biennium budget adjustment will also incorporate a
number of prior Council actions:
· Implement Municipal Court (I 1.55 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 1 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.
City Manager
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CITY OF FEDERAL WAY
PROPOSED BUDGET CALENDAR
Council Study Sessions - Special Meetings
City Manager Presents Proposed Budget:
November 2 6:00 p.m.
Public Hearing No. 1:
November 2 7:00 p.m.
Property Tax Ordinance - 1 st Reading:
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.
7:00 - 9:30 p.m.
Public Hearing No. 2:
Council Deliberation:
Property Tax Ordinance - 2nd Reading and
Adoption:
Budget Ordinance - 1 st Reading:
Budget Ordinance - 2nd Reading and
Adoption:
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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Mid Biennium Budget Adjustment Summary
Available Funding:
Sales Tax
Gambling Tax
Referendum 49 Funding 4
Permit Fees ~
Fines & Forfeitures ~
Public Safety Grants ~
$ 750,000
800,000
430,000
140,000
125,000
700,000
438,000
Total Available Funding
Recommended New Programs:
CD - Sign Code Compliance - (funded for6 months & then review)
CD - Associate Planner (funded wi 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)
PARCS - Ongoing M & O for Wedgewood Park
PARCS - 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 - Cdtical Incident Command Veh (funded w/grant, seizure & donations - $120K)
PS - Wa Criminal Justice Training Officer (funded w/WSCJTC - $61K)
PS - Convert Tamp Data Entry to FTE's (paraa~ funded wi tamp - total $85K)
PS - Traffic Reconstruction Prog - (funded wi traffic school revenue - $41 K)
PS - Critical Incid/Hostage Nag Equip (funded w/grant & seizure - $129K)
PW -Conv. Contracted Capital Project Inspector to Staff (fund w/SWM o $30KJ$
PW - Traffic Counts to Update Transportation Model
PW - Comp Plan Update - Consulting Services
CM Recommeded New Procjrams
Implementing Prior Council Actions:
GM - Municipal Court Formation (costs not funded w/fees & contract)
CD - Development Specialist (funded w/permit fees: $41 K)
PS - School Resource Officers (funded wi grant & contract - $61K)
2,245,000
39,900
1.00
4O,O0O
30,000
1.25
1.00
2.50
1.00 -
15,000
25,000
1,138,000
9,000
5,000
300,000
44,000
6.75 (149,000) (358,000)
11.55
1.00
1.00
143.000
Continue Implementation of Council Approved Pro~lrams
Total Proposed 2000 Adjustments
13.55 0.00 (143,000)
20.30 (149,000) (501,000)
2,096,000 637,000
300,000
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 (2,056,000)
o~e~fime fundin~l and on~lOih~l impact of 1~95 : $ 2~396i000 (1;419;000)
Excess REET in 1999
Balance available 2
Total Available Capital Fundin~l
$ 1,000,000 1,000,000
977,000 2,733,000
$ 1,977,000 3,733,000
Capital Project Recommendation:
PARCS - Skateboard Park
PARCS - Hylebos
PARCS -Alderbrook Park Play Equip (funded w/fee-in-lieu- $29K)
PARCS - BPA Trail Phase III
PS - Public Safety & Muni-Court Facility
PW- Downtown Revitalization
PW - 23rd Avenue South
250,000 250,000
50,000 50,000
150,000 150,000
567,000 567,000
300,000 300,000
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 wilt 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
/ 990Onewprgm Mid-Biennium Review (2) 11/I/99
CAPITAL PROJECT LIST AS PRIORITIZED BY COUNCIL - MAY 1999
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