city of federal way 2011-12 draft budget august 20, 2010 brian j. wilson, city manager/police chief...
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City of Federal Way2011-12 Draft Budget
August 20, 2010
Brian J. Wilson, City Manager/Police Chief253.835.2401
About Federal Way 88,760 in population 3rd largest city in King County 8th largest city in Washington 29,200 jobs 22.5 sq miles service area 292 miles of paved streets 1,075 acres in parks and open space 483 building & 2,209 other building relating permits issued 85,633 dispatchable police calls for service 31,500 court cases
Data based on 2009, except for population which is current.
What is happening in the region?
Federal Way is Different!
Crime rate reductions 10/13 years
Quality parks and infrastructure
Quality arterial and neighborhood streets
Business friendly permit and review process
Federal Way is Different! (continued)
General Fund Per Capita Revenue:
Ranked 35th of 38 KC Cities
$696 Seattle $588 Renton $578 Auburn $556 Kent $328 Federal Way
- Excludes Fire & Library- 2009’s data not yet available- Skyomish is based on 2007 data
2008 Per Capita General Fund Taxes
$- $400 $800 $1,200
TukwilaMedina
Snoqualmie
SeatacHunts Point
Woodinville
RedmondIssaquah
Seattle
BellevueYarrow Point
CarnationNorth Bend
Renton
AuburnKent
Bothell
KirklandMercer Island
Skykomish**Duvall
Enumclaw
SammamishNormandy Park
Burien
Clyde HillBeaux Arts Village
Kenmore
CovingtonNew Castle
AlgonaShoreline
Lake Forest Park
Des MoinesFederal Way*
Pacific
Black DiamondMaple Valley
35th of 38 King County Cities
2008 Per Capita General Fund Tax Revenue Comparison
$424
$588
$644
$696
$1,150
$328
$342
$547
$556
$578
$832
$991
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400
Federal Way
Des Moines
Burien
Kirkland
Kent
Auburn
Renton
Bellevue
Seattle
Redmond
SeaTac
Tukwila
2009’s data not yet available.
Federal Way is Different! (continued)
City initiated in modern times – efficient and effective in the delivery of services
City services = $27 per month or less than $1/day Renton $49/mo, Auburn $48/mo, Kent $46/mo
(Based on 2008’s per capita General Fund tax revenue data since 2009’s is not yet available for comparison purposes)
Reserves preserved to maintain future financial and operational health
Maximum leverage of city funds to secure County, State, and Federal funds
($34.7M in City funds to match $97.4M in grants for publicworks projects over last 10 years)
Major transportation improvements, including substantial work on 5 core lane miles of SR 99. $186M spent total--60% grant funded (1992-2010)
Significant Accomplishments Acquired Visitation Retreat House (1993); developed Dumas Bay
Centre (1995); built Knutzen Family Theatre (1997) - $0 Debt Outstanding
Established Federal Way Police Department (1996)
Constructed BPA Trail (1998-2001)
Celebration Park (1999) - $0 Debt Outstanding
Opened City Hall/Police Department/Municipal Court for a cost-effective $16M (2004) - $0 Debt Outstanding
Current GO Bond Debt Limited to:ValleyCom ($1.25M)FW Community Center ($13.30M)SCORE ($14.66M)
Significant Accomplishments Construction of Transit Center/South 317th off-ramp at I-5 (2006)
Built the Community Center (2007) + stellar Parks/Rec programs
Established Emergency Management Div., disaster equipment purchases (2007-present)
SafeCity Program to enhance safety in the downtown area (2008)
Asphalt overlay program has repaved 260 lane miles of City streets for $28M. One of the best pavement ratings in the Puget Sound region. (ongoing)
More than $10M to fund critical human services (ongoing)
Established In-House Animal Services
General & Street Fund Revenue
Total $39 Million (Year 2011)
Utility Tax, 19%
Property Tax, 25%
Service Fees, 8%
Sales Tax, 27%
Licenses & Permits, 5%
Other Taxes, 5%
State Shared Revenue, 4%
Fines & Forfeitures, 4%
Misc/Other, 1%
Red Light Photo, 2%
Sales Tax Distribution
6.50% State0.90% King County/Metro Transit0.85% City of Federal Way0.50% Regional Transit Authority0.40% Sound Transit0.15% King County0.10% King County Mental Health0.10% Criminal Justice _____________________________________________________________________________________________________________
9.50% Total Sales Tax *
* Restaurants and prepared food and beverages are also subject to 0.5% stadium tax in King County.
State, 68%
Sound Transit, 4%
RTA, 5%City, 9%
Metro, 10%
KC Mental Health, 1%
Criminal Justice, 1%
County, 2%
2010 Property Tax Distribution
City receives $283 annually ($24/month) in property tax from a $250,000 home.
Property Tax Levy Rate History
$4.30 $4.26 $4.19 $4.15 $4.20$5.11
$1.38 $1.33 $1.29 $1.21 $1.10
$1.29
$2.69$2.50
$2.33$2.13 $1.96
$2.22$0.23
$0.22$0.20
$0.22$1.50$1.50
$0.23$0.22
$0.21 $0.30$0.27
$1.27 $1.22 $1.14 $1.04 $0.97 $1.13
$0.23$0.25
$1.50
$1.50
$1.50$1.50 $0.45
$0.50
$0.53
$0.42
$0.53$0.49$0.30
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
$11.00
$12.00
$13.00
$14.00
2005 2006 2007 2008 2009 2010
Emergency Medical Svcs
Flood Zone
Ferry
Library
South King Fire and Rescue
Port of Seattle
Washington State
King County
Federal Way School District
City of Federal Way
Total $12.16
Total $11.80
Total $11.38
Total $12.36
Total $11.16
Total $10.76
2010 Property Tax Levy Rate Comparison
$2.71 Renton$2.66 Tukwila$2.59 SeaTac$2.36 Kent$1.82 Auburn$1.68 Des Moines$1.56 Redmond $1.52 Burien$1.21 Kirkland$1.13 Federal Way$0.94 Bellevue
Comparison of City's Share of Property TaxHome Value Renton Auburn Kent Federal Way
$2.71 $1.82 $2.36 $1.13
200,000$ 542$ 364$ 472$ 226$
250,000$ 678$ 455$ 590$ 283$
300,000$ 813$ 546$ 708$ 339$
400,000$ 1,084$ 728$ 944$ 452$
450,000$ 1,220$ 819$ 1,062$ 509$
General & Street Fund Expenditures
Total $44 Million (Year 2011)
Police, 58%
Law (Civil), 2%
Support Services, 4%
Mayor's Office, 4%
Community Development, 8%
Parks & Recreation, 8%
Public Works (Streets), 10%
Public Defender, 1%
Criminal Prosecution, 2%
Municipal Court, 3%
Red Light Photo Programs goals being met
Use of Funds = $830K Annually $450K to Police $330K to Public Works Traffic Division $50K to Municipal Court
Per ordinance, funds collected are to be used for (but not limited) to prevention, education, and enforcement efforts related to traffic safety and compliance with traffic control devices within the City, including maintenance and operations.
Utility Tax Allocation $ Allocation
Designated % 2011 2012Dedicated/Project Specif ic Programs (Total): 1.00% 1,611,000$ 1,621,000$
Police 612,000 616,000
Arts Comm/Red, Whites & Blues 97,000 97,000
Celebration Park Maintenance 226,000 227,000
New Streets M&O 371,000 373,000
Knutzen Family Theatre 113,000 113,000
New Parks M&O 48,000 49,000
Redirect CampK M&O to GF Operations 96,000 97,000
General Fund Admin Fee 48,000 49,000
General Fund Baseline Operations 2.00% 3,223,000 3,243,000
Federal Way Community Center (Total): 1.00% 1,611,000 1,621,000
Debt Service 915,000 915,000
Operations 585,000 614,000
Capital Reserves 111,000 92,000
Arterial Streets Overlay(In 2011 $820K of the $1,611K Utax allocation w as backfilled w ith REET)
1.00% 1,611,000 1,621,000
Transportation CIP 1.00% 1,611,000 1,621,000
Total Non-Voter Approved 6.00% 9,667,000$ 9,727,000$
Prop 1 Police & Community Safety Improvement Programs 1.75% 2,819,000 2,837,000
Total Voter-Approved 1.75% 2,819,000$ 2,837,000$
Total 7.75% 12,486,000$ 12,564,000$
2011-2012 Budget Challenges
Preliminary baseline gap of $4.4M annually Eliminated liquor profits Tax revenue – assumed $0 revenue
$651K in 2011 / $639K in 2012
Declining gambling tax of $900K per year
Declining utility tax revenue of $1.1M per year
Effects of Past Initiatives: Property Tax Limited to lesser of 1% or inflation Eliminated Motor Vehicle Excise Tax Eliminated Voter-Approved Licensing Fee
Rising medical insurance premiums ($380K per year)
Previous biennium cuts: 16.18 FTE eliminated = $1.47M annually
7.00 FTE frozen = $688K
Budget Assumptions No salary or wage increases for employees in 2011 and 2012,
except for step increases of $250K in 2011 / $215K in 2012
10% increase in medical costs: $380K per year
Pension increases in accordance with state projections: $87K in 2011 / $319K in 2012
Exclude salary & benefit projections for frozen positions- Street Manager- Court Clerk- Records Specialist- Lieutenant- 3 Police Officers
Council Budget Philosophy/Direction
Conservative revenue growth
Clear delineation of ongoing vs one-time revenue
Balanced budget addressing structural deficit
No new taxes or fees
Prioritization of core services
Directives to Staff1. FTE cuts to reach targets
2. FTE and other alternatives to reach target
3. Service impacts associated with above cuts
4. Health Care Benefits Task Force with labor and non-represented staff to contain and/or reduce health care costs
City Manager/Police Chief Recommended Cuts
FTE 2011 2012
Department Vacant Filled 1-Time Ongoing 1-Time Ongoing
Mayor's Office (1.0) (3.6) 193,429$ (492,773)$ -$ (506,887)$
Information Technology (1.6) - - (210,378) - (215,710)
Community Development - (7.4) 22,500 (622,456) - (644,780)
Finance - (1.0) 2,500 (82,824) - (88,086)
Human Resources - - - - - -
Parks, Recreation & Cultural Services - (4.0) 10,000 (303,107) - (317,669)
Public Works - (2.6) 7,500 (266,532) - (278,277)
Law - (1.0) 5,000 (68,721) - (71,017)
Municipal Court - - - (70,000) - (70,000)
Police (4.0) (20.0) 1,470,857 (2,603,412) 682,048 (2,701,014)
Total (6.6) (39.6) 1,711,786$ (4,720,203)$ 682,048$ (4,893,440)$
Detailed list of positions including service impacts available on City’s website.
Contingent Revenue
2010 2011 2012Source 1-Time Ongoing 1-Time Ongoing 1-Time Ongoing
Gambling Tax -$ -$ -$ 430,000$ -$ 430,000$
Liquor Profits (pending Privatization of Liquor Initiative not passing)
- - - 651,000 - 639,000
2/10 of 1% KC Sales Tax Increase (3 year duration, expires April 2014 )
- - 1,300,000 - 1,800,000 -
COPS Grant for 4 Police Officers(3 year duration)
- - 281,000 - 281,000 -
SR 99 Phase IV Capital Project Savings (Utility Tax)
2,300,000 - - - - -
Additional Red Light Photo 375,000 - - - - -
Total 2,675,000$ -$ 1,581,000$ 1,081,000$ 2,081,000$ 1,069,000$
Other Capital Projects Savings/Balances
Planned Capital Allocation: 1-Time Use
South 320th St @ 20th Ave South 500,000$
SW 312th ST: SR509 - 14th Ave SW
1,062,000
10th Ave SW Improvements 200,000
21st Ave SW @ SW 336th St 986,000
City-w ide Flashing Yellow Lights Installation
100,000
South 344th Way @ Weyerhaeuser Way South
200,000
South 352nd Street Extension (SR 161 to SR99)
3,000,000
Total 6,048,000$
Project Status Source 1-Time Source
SR 99 HOV Phase III Construction Completed General Fund 947,000$
SR 99 HOV Phase IV Utility Tax 1,200,000
REET 550,000
To Be Determined 1,250,000
South 348th @ 1st Way So Under Construction, Possible Savings
Utility Tax 1,000,000
South 356th St @ SR99 Construction Completed Utility Tax 300,000
Unappropriated CIP Utility Tax 355,700
REET 445,500
Total Capital Projects Savings 6,048,200$
Source by Type:
Utility Tax 2,855,700
REET 995,500
General Fund 947,000
To Be Determined 1,250,000
Downtown Redevelopment Project 1-Time Source
REET 3,028,000
Total Downtown Redevelopment Project 3,028,000$
Under Construction, $3M Possible Savings
Council has previously allocated $3M to So 352nd Extension Project
Reserve Account BalanceRisk Management Fund:
2010 Total = $5.4M $2.0M Strategic Reserves $3.4M Self-Insurance
Established by Council Policy
City Manager/Police Chief Recommendation: Use $600K ($300K each year of 2011-12) of Self Insurance
Reserves to fund liability deductibles on a one-time basis.
Maintain remaining balances at current level.
Replacement Reserve Accounts
2010 Total = $9.6M $3.1M Information Technology $0.3M Duplication Services $4.7M Fleet & Equipment $1.5M Buildings & Furnishings
Established by Council Policy
City Manager/Police Chief recommends account balances remain at current level.
Council Policy on Contingent/Reserve Accounts
3% General Fund Contingency ($1.2M) Strategic Reserve Funds ($2M) Replacement Reserve Fund ($9.6M) Self-Insurance Reserves ($3.4M) Snow & Ice Removal Reserves ($100K)
Ability and flexibility in operations helps the City maintain its high bond rating.
Summary – Operating Gap
2011 2012 BALANCING OPERATING REVENUES & OPERATING EXPENDITURES
(4,365,423)$ (4,438,396)$ Current Operating Gap
2,603,412 2,701,014 Police Ongoing Cut
2,116,791 2,192,426 Non-Police ongoing Cut
(35,000) (57,752) Police Ongoing Program Additions
(162,611) (260,859) Non-Police Ongoing Program Additions
157,169$ 136,433$ Revised Operating Gap after City Manager/Police Chief's Preliminary Recommendation
Summary – Ending Fund Balance
2011 2012 ENDING FUND BALANCE
(1,860,425)$ (6,963,454)$ Current Ending Fund Balance
- 3,107,216 Impact to 2012 Ending Fund Balance based on 2011's Revised Ending Fund Balance
2,603,412 2,701,014 Police Ongoing Cut
2,116,791 2,192,426 Non-Police Ongoing Cut
(1,470,857) (682,048) Police 1-Time Funded Positions, Impact to Internal Service Funds and Outplacement Services
(240,929) - Non-Police 1-Time Funded Positions, Impact to Internal Service Funds and Outplacement Services
(35,000) (57,752) Police New Program Requests, both 1-time and ongoing
(466,201) (446,699) 2011 Add back Non-Police New Program Requests, both 1-time and ongoing
600,000 600,000 Total Overlay Redirected on a 1-time basis for 2011 and 2012
1,246,791$ 450,703$ Revised Ending Fund Balance after City Manager/Police Chief's Preliminary Recommendation
Seeking Your Input What is important to you?
Should one-time revenue be applied and prioritized in 2011 and 2012?
How should the City prioritize it services where one-time revenues may be applied?
Public Participation Public comments welcome at regular Council meetings
Public comments welcome at budget study sessions
Email your comments/concerns
Submit public comment via City’s website:
http://www.cityoffederalway.com/Page.aspx?page=2301
Call City Manager/Police Chief (253) 835-2401
Documents Available on City’s Finance Department Website
http://www.cityoffederalway.com/Page.aspx?page=2248