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City of Federal Way 2011-12 Draft Budget August 20, 2010 Brian J. Wilson, City Manager/Police Chief 253.835.2401

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Presentation on theme: "City of Federal Way 2011-12 Draft Budget August 20, 2010 Brian J. Wilson, City Manager/Police Chief 253.835.2401"— Presentation transcript:

1 City of Federal Way Draft Budget August 20, 2010 Brian J. Wilson, City Manager/Police Chief

2 About Federal Way 88,760 in population 3 rd largest city in King County 8 th 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?

3 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

4 Federal Way is Different! (continued) General Fund Per Capita Revenue: Ranked 35 th of 38 KC Cities $696 Seattle $588 Renton $578 Auburn $556 Kent $328 Federal Way - Excludes Fire & Library s data not yet available - Skyomish is based on 2007 data

5 2008 Per Capita General Fund Tax Revenue Comparison 2009s data not yet available.

6 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 2008s per capita General Fund tax revenue data since 2009s 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 public works 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 ( )

7 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 ( ) 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)

8 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

9 General & Street Fund Revenue

10 Sales Tax Distribution 6.50% State 0.90% King County/Metro Transit 0.85% City of Federal Way 0.50% Regional Transit Authority 0.40% Sound Transit 0.15% King County 0.10% King County Mental Health 0.10% Criminal Justice _____________________________________________________________________________________________________________ 9.50% Total Sales Tax * * Restaurants and prepared food and beverages are also subject to 0.5% stadium tax in King County.

11 2010 Property Tax Distribution City receives $283 annually ($24/month) in property tax from a $250,000 home.

12 Property Tax Levy Rate History

13 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

14 General & Street Fund Expenditures

15 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.

16 Utility Tax Allocation

17 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: FTE eliminated = $1.47M annually 7.00 FTE frozen = $688K

18 Budget Assumptions No salary or wage increases for employees in 2011 and 2012, except for step increases of $250K in 2011 / $215K in % 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

19 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

20 Directives to Staff 1. 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

21 City Manager/Police Chief Recommended Cuts Detailed list of positions including service impacts available on Citys website.

22 Contingent Revenue

23 Other Capital Projects Savings/Balances

24 Reserve Account Balance Risk 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 ) of Self Insurance Reserves to fund liability deductibles on a one-time basis. Maintain remaining balances at current level.

25 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.

26 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.

27 Summary – Operating Gap

28 Summary – Ending Fund Balance

29 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?

30 Public Participation Public comments welcome at regular Council meetings Public comments welcome at budget study sessions your comments/concerns Submit public comment via Citys website: Call City Manager/Police Chief (253) Documents Available on Citys Finance Department Website

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