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1 City of Federal Way 2011-12 Proposed Biennial Budget October 19, 2010 Brian J. Wilson, City Manager/Police Chief 253.835.2401

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Presentation on theme: "1 City of Federal Way 2011-12 Proposed Biennial Budget October 19, 2010 Brian J. Wilson, City Manager/Police Chief 253.835.2401"— Presentation transcript:

1 1 City of Federal Way Proposed Biennial Budget October 19, 2010 Brian J. Wilson, City Manager/Police Chief

2 2 Materials Provided to Council - Available to Public Hard Copies Provided to Council: 1.Proposed Budget Document Includes Supplemental Information – Revenue Trends for General, Street, Utility Tax and REET, Arterial Streets Overlay History, 2011/12 Position Inventory & Changes 2.Budget-In-Brief Summary of proposed budget document Also, Volume II Budget Detail by Expenditure Line Item available on Citys web site. Information Available to Public: All information is available at Follow-up materials and PowerPoint presentations available at public meetings Check website for new information added throughout budget process Internet access not available? – Contact City Managers Office (253)

3 Proposed Budget Transmittal Budget Challenges Budget Process General/Street Fund - Baseline/Initial Budget - Projected 2010 General Fund Ending Balance - Highlights of Budget Changes - Balancing the Operating Gap General Fund Target Ending Balance - Contingent Revenue Sources Non-General Fund Budget Changes Capital Improvement Plan Closing Next Steps

4 4 Budget Challenges Uncertainty in economic outlook Past citizen initiatives Declining Revenues No new or increased taxes or fees Rising medical insurance premiums State pension increases

5 5 Budget Process – Council Philosophy/Direction Provide conservative revenue projections; Clearly delineate what is ongoing funded versus one-time funded; Submit a balanced budget that addresses past structural issues; Prioritize core services given available funding; Obtain and incorporate public feedback into the budget recommendation; and Balance the budget with no new taxes or fees

6 6 Budget Process – Management Team Direction 1. Identify and recommend full-time equivalent position cuts to reach targets; 2. Identify and recommend full-time equivalent position cuts and alternatives to reach target; 3. Provide service level impacts associated with the above cuts; and 4. Establish a Health Care Benefits Task Force with labor and non-represented staff to contain and/or reduce health care cost in 2011, 2012, and beyond

7 7 General/Street Fund – Baseline/Initial Budget Basic Assumptions: Hold the Line on salary and wages (no COLA adjustment); Allow for step increases (in order not to exacerbate pay inequities within Citys workforce); Reduction of FTE employees at the end of 2010 (22.13 FTE), 2011 (4.0 FTE), and 2012 (16.50); Exclude salary and benefit projections for seven (7) frozen positions as a result of previous biennium adjustments (street manager, court clerk, records specialist, and 4 police officers) Add salary & benefit projections for elected Mayor, Chief Administrative Officer (eliminated city manager) and Council Executive Assistant Medical cost increases anticipated at 10% per year; and Pension increases in accordance with the state projections

8 8 General/Street Fund – Baseline/Initial Budget (continued) Restore One-Time Funded Positions to Ongoing in : 1.00 FTE Records Supervisor 0.40 FTE Financial Analyst

9 9 General/Street Fund – Baseline/Initial Budget (continued) One-Time Programs Added – Total $626K: Approved for Budget as one-time but are ongoing in nature – continue funding on a one-time basis in street tree replacement, cost increases for KC/State contracts, utilities, fuel, graffiti program; overtime and temporary help, employee training, recognition & wellness programs, SBCC funding, association dues, art & community events, court interpreter services, etc. - Excludes color basket/banner program & non-police education assistance

10 10 General/Street Fund – Baseline/Initial Budget (continued) Add One-Time Funding for Jail – Total $1.65M: $1.2M SCORE Start-up Costs ($820K is from redirecting Camp Kilworth during Mid-Biennium Budget Adjustment) $450K for 2 months SCORE jail services prepayment

11 11 General & Street Fund Ongoing Program Additions Total $177K in 2011 and $295K in 2012: Replace/Upgrade Security Cameras & Door Security System ($7K / $10K) Wifi M&O & Replacement ($18.7K/yr) Information Technology On-call Pay ($21.7K/yr) Risk Management General Liability Assessment ($33.6K / $63.3K) Human Services Joint Application Process ($7.5K/yr) Human Resources Class/Compensation Module ($1.5K/yr) Finance Annual State Audit Fees and Temporary Help ($17.5K/yr) Increased Records Storage and Retrieval Costs ($18K/yr) Parks Vehicle & Equipment Maintenance & Operations ($6K/yr) Expand General Recreation Programs (offset by additional revenues of $40.4K / $38.9K) KC Maintenance Contract Increase ($8K/yr ) M&O for completed CIP, Street Lights, Traffic Signal ($10.3K / $71.4K) Interpreter Services Cost Increases ($32.3K/yr) Police Ammunition Cost Increases ($35K / $39K) Police Vehicle & Equipment Replacement Reserves ($0K / $18.8K)

12 12 Ongoing Adjustments to Balance the Operating Gap Achieved primarily by eliminating positions from ongoing budget and funding others on a one-time basis in Eliminate FTEs from ongoing budget and restore FTEs in 2011 and FTEs in 2012 on a one-time basis using City sources and one-time grants Non-Police FTEs (3.60 FTEs vacant) Police FTEs (4.00 FTEs vacant) Positions Eliminated Entirely: FTEs at the end of FTEs at the end of FTEs at the end of 2012 (excludes 4 Police Officers Funded by COPS Rehiring Grant) Detailed List of Positions Provided under Supplemental Information Tab of Budget Document

13 13 General Fund Operating Gap

14 14 Summary of Positions Eliminated By Year

15 15 Positions Eliminated - Mayors Office

16 16 Positions Eliminated - Support Depts

17 17 Positions Eliminated - Community Development

18 18 Positions Eliminated – Parks & Public Works

19 19 Positions Eliminated - Police

20 20 General & Street Fund One-Time Sources Total $5,375K: $2,300K from Pacific Highway HOV Lanes Phase IV $1,500K from other Transportation Capital Projects $1,200K from Arterial Streets Overlay $375K from Red Light Photo proceeds These one-time sources are used to fund positions that would have otherwise been eliminated on a one-time basis in AND add to General Fund to meet 2012 target ending fund balance.

21 21 General & Street Fund One-Time Uses Total $451K in 2011 and $329K in 2012: EnterpriseSeattle dues increase ($5K/yr) Information Technology contracted services ($24.9K / $25.9K) Labor relations professional certification ($1K/yr) Emergency Mgmt specialist ($22.9K/yr funded by 2010 temp help savings) Joint PW/CD comprehensive plan update ($247.2K / $131K) Temporary help for graffiti and sign program ($18.8K/yr) 20% increase in human services funding ($86K/yr) Challenge Grant ($10K/yr) Martin Luther King celebration ($5K/yr) Community Gardens ($10K/yr ) General Fund support of CDBG admin/planning ($11.5K / $13.6K) Building Laptop Replacement (addl $8.6K is needed funded by automation fees)

22 22 Projected 2010 General Fund Ending Balance $5.3 Million, comprised of: $3.1M Rainy Day Reserve Fund established by Council during budget to address operating gap $1.0M capital projects savings redirected to General Fund in $1.2M Contingency Reserve Fund which will be re-budgeted in (assume Contingency will not be spent)

23 Target Ending Fund Balance

24 24 Contingent General Fund Revenue Sources - Ongoing Ongoing: Gambling Tax Liquor Profits If guaranteed, recommend these funds be used to restore one-time funded positions to ongoing rather than adding new programs or positions.

25 25 Contingent General Fund Revenue Sources - One-time One-Time: King County 2/10 of 1% sales tax increase ($1.3M in 2011 and $1.8M in 2012) Economic development initiatives in Downtown Small business development New business/retail location in City National and regional events Financial assessments and projections will occur as part of the mid-biennium budget process.

26 26 Non-General Fund Budget Changes FWCC utility cost increases of $5K/year by redirecting designated capital reserves to operations Combined Dumas Bay Centre and Knutzen Family Theatre and using Utility Tax Reserves for both DBC and KFT operations and capital maintenance Continue one-time grant funding of recycling project manager and related program costs Assistance in meeting NPDES requirements, funded by Dept of Ecology grant Internal Service Funds Vehicle & Equipment Replacement based on replacement schedule

27 27 Capital Improvement Plan (CIP) capital budget totals $37.8M, comprised of: $1.47M in Parks System - New funding total $858K ($350K Utax, $200K REET, $308K grants anticipated) $35.3M in Transportation Projects - New funding total $16.5M ($4.44M Utax, $820K REET, $1.64M fuel tax, $7.88M grants anticipated, $1.55M unappropriated CIP, $178K mitigation fees) $1.03M in Surface Water Management Systems - Funded by $710K user fees and $316K in anticipated grants

28 28 Summary Balanced budget with no new taxes or fees Preservation of Citys financial reserves No demotions or layoffs of commissioned police officers 2012 General Fund ending balance at 9% of Budget Maintenance of public safety and quality of parks & recreation Maintenance of capital infrastructure investment 20% one-time increase human services funding in Investment in economic development and job creation in City Hold-the-line salary and wages for employees (No COLAs) One-time funding for FTEs in 2011 and FTEs through 2012

29 29 Next Steps Wednesday, October 27 6:00pm Budget Overview and Dept Budget Presentations Thursday, October 28 6:00pm Continue Dept Budget Presentations Tuesday, November 2 nd 6:00pm - Continue Dept Budget Presentations, Council Deliberations 7:00pm – 1 st Public Hearing Tuesday, November 16th 6:00pm – Additional Study Session (if needed) 7:00pm – Final Public Hearing, 1 st Reading of Budget & PTax Ordinance Tuesday, December 7th 7:00pm – Council Adopts Budget and Property Tax Ordinances *Meetings held in Council Chambers

30 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

31 31 End of Presentation Questions?

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