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City of Federal Way 2011-12 Proposed Biennial Budget October 19, 2010

City of Federal Way 2011-12 Proposed Biennial Budget October 19, 2010. Brian J. Wilson, City Manager/Police Chief 253.835.2401 brian.wilson@cityoffederalway.com. Materials Provided to Council -Available to Public. Hard Copies Provided to Council: Proposed 2011-12 Budget Document

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City of Federal Way 2011-12 Proposed Biennial Budget October 19, 2010

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  1. City of Federal Way2011-12 Proposed Biennial BudgetOctober 19, 2010 Brian J. Wilson, City Manager/Police Chief 253.835.2401 brian.wilson@cityoffederalway.com

  2. Materials Provided to Council -Available to Public Hard Copies Provided to Council: • Proposed 2011-12 Budget Document • Includes Supplemental Information – Revenue Trends for General, Street, Utility Tax and REET, Arterial Streets Overlay History, 2011/12 Position Inventory & Changes • Budget-In-Brief • Summary of proposed budget document Also, Volume II Budget Detail by Expenditure Line Item available on City’s web site. Information Available to Public: • All information is available at www.cityoffederalway.com • 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 Manager’s Office (253) 835-2401

  3. 2011-12 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 - 2012 General Fund Target Ending Balance - Contingent Revenue Sources • Non-General Fund Budget Changes • Capital Improvement Plan • Closing • Next Steps

  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. 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. Budget Process – Management Team Direction • Identify and recommend full-time equivalent position cuts to reach targets; • Identify and recommend full-time equivalent position cuts and alternatives to reach target; • Provide service level impacts associated with the above cuts; and • 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. 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 City’s workforce); • Reduction of 42.63 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. General/Street Fund – Baseline/Initial Budget (continued) Restore 2009-10 One-Time Funded Positions to Ongoing in 2011-12: • 1.00 FTE Records Supervisor • 0.40 FTE Financial Analyst

  9. General/Street Fund – Baseline/Initial Budget (continued) One-Time Programs Added – Total $626K: • Approved for 2009-10 Budget as one-time but are ongoing in nature – continue funding on a one-time basis in 2011-12 - 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. 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 2009-10 Mid-Biennium Budget Adjustment) • $450K for 2 months SCORE jail services prepayment

  11. General & Street FundOngoing 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. Ongoing Adjustments to Balance the Operating Gap • Achieved primarily by eliminating positions from ongoing budget and funding others on a one-time basis in 2011-12 • Eliminate 46.63 FTEs from ongoing budget and restore 21.50 FTEs in 2011 and 20.50 FTEs in 2012 on a one-time basis using City sources and one-time grants • Non-Police 22.63 FTEs (3.60 FTEs vacant) • Police 24.00 FTEs (4.00 FTEs vacant) • Positions Eliminated Entirely: • 22.13 FTEs at the end of 2010 • 4.00 FTEs at the end of 2011 • 16.50 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. General Fund Operating Gap

  14. Summary of Positions Eliminated By Year

  15. Positions Eliminated - Mayor’s Office

  16. Positions Eliminated - Support Depts

  17. Positions Eliminated - Community Development

  18. Positions Eliminated – Parks & Public Works

  19. Positions Eliminated - Police

  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 2011-12 AND add to General Fund to meet 2012 target ending fund balance.

  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 (add’l $8.6K is needed funded by automation fees)

  22. Projected 2010 General Fund Ending Balance $5.3 Million, comprised of: • $3.1M Rainy Day Reserve Fund established by Council during 2009-10 budget to address 2011-12 operating gap • $1.0M capital projects savings redirected to General Fund in 2009-10 • $1.2M Contingency Reserve Fund which will be re-budgeted in 2011-12 (assume Contingency will not be spent)

  23. 2012 Target Ending Fund Balance

  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. 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. 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. Capital Improvement Plan (CIP) 2011-12 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. Summary • Balanced budget with no new taxes or fees • Preservation of City’s 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 2011-12 • Investment in economic development and job creation in City • Hold-the-line salary and wages for employees (No COLAs) • One-time funding for 21.50 FTEs in 2011 and 20.50 FTEs through 2012

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

  30. Public Participation • Public comments welcome at regular Council meetings • Public comments welcome at budget study sessions • Email your comments/concerns Budgetsuggestions@cityoffederalway.com • 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

  31. End of Presentation Questions?

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