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11-09-2016 STUDY SESSION: 2017-2018 Biennial
FUNDING OPTIONS City Council Special Meeting November 9, 2016 Presented by Ade Ariwoola, Finance Director Mayor's Proposal REVENUE: 2017 2018 COP Grant (60%) Business License Adjusted Utility Tax SUB - TOTAL: TOTAL: $.36M $1 OM $1.36M $23M $.36M $1.0M $1.59M +$.22M Carryover $1.81M EXPENDITURES: Police Officers (New) Equipment Reserve Guild Contract TOTAL: FUND BALANCE: (4 Officers) = $.55M $.25M $.34M $1.14M $.22M (5 officers) _ $1.24M $.25M $.32M $1.81M 11/9/2016 1 Other Considerations • Historical Society • Market Salary Competitiveness SALARY ioo - Historical Society Background July 26, 2016 - FEDRAC Meeting August 9, 2016 - Council Meeting 11/9/2016 2 Support of Historical Societ from 2008 -2015 Architect services $9,200 Roofing $11,935 Windows $10,300 Boiler $11,030 Electrical $22,236 Awning $1,976 In -home repair $5,000 Storage $18,947 8 YEAR TOTAL $90,624 Approximately $11,328 per year Additional Support 2015/16 A. 2015 *Lodging Tax $10,000 *Anonymous Donation $10,00 B. 2016 *General Fund $10,000 - Pending l'11-3 11/9/2016 3 Support of Historical Society, Annual Breakdown Rental value based on square footage City's storage rental ..x. Lawn maintenance 2 hours per week • $1,500 per month = $18,000 per year • $152.10 per month = $1,825.20 per year • $317.60 per month = $3,811.60 per year Historical Society Funding A. $10,000 Funding Thru Lodging Tax Request through Lodging Tax Committee Meet Lodging Tax requirements B. If Council wants additional $10,000 Increase the available revenue source for GF Contract of service 11/9/2016 4 Market Salary Competitiveness • Passage of ST3 • Ability to retain good employees • Market compensation essential 2017 $0.30m 2018 $0.31m 2016 Property Tax Distribution O°' NQ'' Q °c �y. 0.°'e io 4,• 11/9/2016 5 ��i+� g,^' .d .:.•-...', k WW21IERAL f '1'111: 1 NI'17:1/ ,... E 62484444E 5 r., + .6 4�.foG l7 ti'!.�7'I;S " „illWASHING CT :• ( AMNOT7$ I +� -.... !:1 E 62484 Y ✓"t9 I( %.1 , 44 E 1 N.D.G. m`4 ( 'f c ( ' 55 c' .-, O°' NQ'' Q °c �y. 0.°'e io 4,• 11/9/2016 5 Property Tax Rate 2016 Collection Voted Non -voted Total City FWPS King County Washington State County Flood Zone Port of Seattle Fire District #39 Library EMS 6.74731 0.55569 0.41030 0.05275 0.28235 1.18504 0.92548 2.16898 1.12980 0.16954 1.50000 0.42439 1.18504 6.74731 1.48027 2.16898 0.12980 0.16954 1.91030 0.47714 0.28235 8.1% 46.4% 10.2% 14.9% 0.9% 1.2% 13.1% 3.3% 1.9% 8.04840 6.50233 14.55073 100% VOTED: 8.04840 or 55.3% NON - VOTED: 6.50233 or 44.7% 11 Property Tax ...continued 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Federal Way Kent Auburn Renton Seattle SeaTac 1.19 1.25 1.4 1.42 1.3 1.2 1.13 0.97 1.04 1.14 1.51 1.58 1.65 1.69 1.57 1.48 2.36 2.18 2.36 2.56 2.05 2.08 2.17 2.1 2.08 1.93 1.82 1.49 1.49 1.48 2.71 2.83 3.15 3.1 3.1 2.83 2.71 2.37 2.62 2.88 2.77 2.62 3.05 3.29 3.58 3.36 3.23 2.86 3.07 3.43 3 3.16 3.1 3.1 2.88 2.8 2.58 2.34 2.45 2.61 11/9/2016 b 11/9/2016 How We Stack Up Federal Way Burien Kent Auburn Seatac Renton Seattle IMMEIMINOMMEMINEM Property Tax Rates 0.50 1.50 2.50 3.50 13 IProperty Assessed Amount and Levied Amount I Assessed Levied Amount** Amount** Federal Way 8,905,294,058 10,487,319 Burien 5,159,990,547 7,443,096 Kent 15,046,306,884 22,657,939 Auburn 7,948,426,775 16,201,937 Seatac 4,935,361,365 14,714,271 Renton 13,812,773,159 37,269,743 Seattle 163,924,328,611 452,827,119 Sustainable Funding Options A. Transportation Benefit District (TBD) A. RCW 36.73.020 B. RCW 82.80.140 B. B Et 0 Tax C. Business Registration D. Equal application of Utility Tax E. Permit Fees F. Admissions Tax Transportation Benefit District (TBD) • Currently registered vehicles - 62,885 • City may charge up to $20 /vehicle • Takes 6 months to put in place • State charges 1% admin fee l•ee ell Delleuvw 11/9/2016 8 Transportation Benefit District ...continued • May raise up to $1.25 million • Light rail bond may affect the total licensing cost • Majority vote of Council required • Combined with other district, not to exceed $50 Transportation Benefit District ...continued • Light rail bond may affect the total licensing cost. • New 0.8% MVET on vehicles by ST3 ($80.00 on $10,000 vehicle annually) • Current 0.3% MVET by Sound Transit thru 2028 11/9/2016 0 �C o0 CITY OF FIFE `fit C.. Current Cities with TBD King g Count Y City Name Fife Maple Valley Normandy Black Diamond Burien Covington Des Moines Enactment Date 1/1/2017 7/1/2013 3/1/2016 7/1/2015 2/1/2011 6/1/2016 9/1/2009 Amount $20 $20 $20 $20 $10 $20 $40 '9 Business and Occupation Tax • Usually based on revenue • Requires additional staff • Tax payer Data Sharing Agreement • Cities with B Et 0 Tax BUSINESS 11/9/2016 10 Current Entities using B&OTax City Manufacturing Retail Services Wholesale Algona 0.00045 0.00045 0.00045 0.00045 Burien 0.001 0.001 0.001 0.001 <100,000 Des Moines 0.002 0.002 0.002 0.002 <50,000 Issaquah 0.0012 0.0012 0.0012 0.0012 Kenmore 0.002 Kent 0.00046 0.00046 0.00152 0.00152 <250,000 Lake Forest Park 0.002 0.002 0.002 0.002 Mercer Island 0.001 0.001 0.001 0.001 North Bend 0.002 0.002 0.002 0.002 Pacific 0.002 0.002 0.002 0.002 Renton 0.00085 0.0005 0.00085 0.00085 < 1.5 mill Rev Seattle 0.00215 0.00215 0.00415 0.00215 With VOTE, <50,000 Snoqualmie 0.0015 0.0015 0.0015 0.0015 Current Entities using B a 0 Tax and Business Registration amount City Manufacturing f Retail Services Wholesale Business Registration Burien 0.001 0.001 0.001 0.001 $75 - $150 Des Moines 0.002 0.002 0.002 0.002 $50 - $200 Kent 0.00046 0.00046 0.00152 0.00152 $50 - $713.93 Renton 0.00085 0.0005 0.00085 0.00085 $50 - $110 SeaTac x x x x $50 - 59,500 Auburn x x x x $50 + $63 for Insp. 11/9/2016 11 Proposed Business Registration # of Employees Reg. Fee 0 -10 $80 11 -25 $125 26 -50 $250 51 -100 $1,500 101 -500 $4,500 501+ $9,500 Potential T. Rev $0.63miltion NET $0.36million Equal Application of Utility Tax 1. Current Rate is 7.75% 2. Current rate paid by water Et sewer is $0, but Franchise Fee is 3.6% 3. Analysis of current plan • Franchise Fee • Light Fees • Hydrant Fees $1.4m 11/9/2016 12 530.00 S20.00 510 00 5000 2F ��Q ,� `cb 3 °3 a o16� tlJF �c� c� k � `a�'C o \@ �E''� b� pca \�� aP' �° osp` ot�° �d &4 dck r36° 44 e e 25 S Lakehaven Water Rates Compared to our Neighbors Monthly Residential Water Charges (7ccf /mo, smallest meter) $ 22.78 x .0775 = $1.77 529.74 53075 t s • 526.00 5 523.30 ■ 531.75 532.97 $37.20 "}37.Si - 53799 -i39.H 539.68 541.14 543.28 $44.35 545.44 550.72 Lakehaven Sewer Rates Compared to our Neighbors 5100.07 Monthly Residential Sewer Charges 59000 • (7ccf /mo of water use) 580.00 5700 c60.00 550.00 540.00 $30.61 x .0775 = $2.37 542.43 529.50 530.00 ! 526.00. $20.00 51000 !- $0.00 S3 06I 545.64 551.60 511I8 559.53 561.46 562.0 5003' 569.47 57103 cpe V' /tea, -y 3c/ �,�4,�r� �cc� J +°\ 1'3 °` a,Fcfi a +p• / a J,F+tpt \�tA yQ\ �� Q" (P o` d'`p 0 otQ e c`b a5 0l� o5if' e� 05 cab b3 J� 1 26 578.56 11/9/2016 13 Equal Application of Utility Tax 1. City of Puyallup 8% 2. City of Pacific 6% 3. City of Everett 6% 4. City of Tacoma 6% 5. Proposed 7.75% Lakehaven Resolution 2016 -1262 • Proposing annual rate growth of between 1% - 2% from 2017 through 2020 Equal Application of Utility Tax 1. 3.6% Franchise Fee 1. Revenues $849k 2. Expenses $956k 3. Net -$107k 2. 5% Franchise Fee 1. Revenues $1,179k 2. Expenses $956k 3. Net $223k 3. 7.75% Utility Tax 1. Revenues $1,827k 2. Expenses $956k 3. Net $871k Depending on LHU reported revenue 11/9/2016 14 11/9/2016 Permit Fees Re- examination of permit fees • Lower than comparable fees of our neighboring cities These fees will fluctuate with economic condition, but are also a source of revenue for the City. New Permit Fees EXHIBIT A 2017 FEE SCHEDULE TYPE OF FEE NEW 2017 Fee iECTION SEVENTEEN. COMMUNITY CENTER MEMBERSHIP FEES. (PARKS) Continued C Room Rental Fees Rental Period Resident Non - Resident Community Full Room All Day $1,900.00 $2,100.00 4 - 8 hours $1,300.00 $1,500.00 Per hour (2hrs min.) $375.00 $430.00 Two Room Combo 4 - 8 hours $955.00 $1,100.00 Per hour (2hrs min.) $250.00 $290.00 One Room 4 - 8 hours $480.00 $550.00 Per hour (2hrs min.) $150.00 $175.00 Forest Lounge 4 - 8 hours $480.00 $550.00 Per hour (2hrs inin.) $150.00 $175.00 Maple Room 4 - 8 hours $300.00 $350.00 Per hour (2hrs min.) $75.00 $95.00 Wedding Package $1,750.00 $1,950.00 Banquet hall (4 - 8hrs), Linens, Bridal Room (4hrs), and Set -up Custom Set -up fee (1 room $75, 2 rooms $125, 3 room $175) Kitchen with room rental $400.00 $400.00 D Damage Deposit fee Full or 2 /3rd romm $500.00 $500.00 1 Room or Maple Room $250.00 $250.00 Kitchen $500.00 $500.00 ;ECTION EIGHTEEN. PERFORMING ARTS & EVENT CENTER. (Mayor) A Room Rental Fees Resident Arts Organization Theatre Rental Fiiday - Sunday 6 hours Monday - Thursday 6 hours $664.00 Non - profit Private/ commerical $1,064.00 $1,328.00 $300.00 $400.00 $600.00 Conference /Meeting Rooms 4 hours Lobby Meeting Rooms 1 & 2 Patrons Room Lobby -only with another rental setup only, no public Meeting Rooms 1 & 2 - Set up only Patrons Room - Set up only $300.00 $150.00 $75.00 $100.00 $60.00 $40.00 $400.00 $225.00 $100.00 $150.00 $100.00 $50.00 $600.00 $350.00 $200.00 $250.00 $100.00 $100.00 Damage Deposit $400.00 $400.00 $400.00 Patron Services Fees Building Date Hold Fee Theatre Cleaning Deposit - refundable Event Rooms Cleaning Deposit - refundable Merchandise Commission - % of sales ASCAP /SESAC /BMI - per performance Ticket Office Management Fee - per performance Ticket Handling Fee Facility Fee - per ticket Box Office Fees - Percent of gross ticket sales Credit Card Fees - Percent of ticket price Ticket sales exceeding $25k - Percent of gross sales Ticket Printing - Per ticket $200.00 $500.00 $250.00 $0.00 $30.00 $50.00 $3.00 - $11.00 $1.00 0.50% 3.20% 1.00% .30 - $1.50 $250.00 $500.00 $250.00 10.00% $30.00 $75.00 $3.00 - $11.00 $1.00 1.50% 3.20% 1.00% .30 - $1.50 $275.00 $500.00 $250.00 20.00% $30.00 $100.00 $3.00 - $11.00 $1.00 1.75% 3.20% 1.00% .30 - $1.50 31 EXHIBIT A 2017 FEE SCHEDULE Restore Charge - If event is canceled $350.00 $350.00 $350.00 2017 TYPE OF FEE NEW Fee SECTION EIGHTEEN. PERFORMING ARTS & EVENT CENTER. (Msvor) - Continued Labor Fees Technical Crew - Per hour House Manager - Per hour Maintenance Worker - As needed Event Crew - Per hour Security - Actual cost $17 - $30.00 $17 - $30.00 $17 - $30.00 $17 - $25.00 $17 - $25.00 $17 - $25.00 $20 -$30 $20 -$30 $20 -$30 $17 - $30.00 $17 - $30.00 $17 - $30.00 Ushers Full House - Per performance Ushers Support - Per performance $0.00 $65.00 $75.00 $0.00 $45.00 $50.00 Equipment Fees Grand Piano - Per event $0 $150 $175.00 Tuning $165 $165 $165 Admin 5% 5% 5% Follow Spot - Per event $0.00 $50.00 $50.00 Fog Machine - Per event $0.00 $50.00 $55.00 Projection Screens - Per event $0.00 $50 00 $50.00 Gaffers Tape - Per roll $35.00 $35.00 $35.00 Marley Dance Floor $0.00 $100.00 $150.00 Orchestra Shell $0.00 $150.00 $200.00 Projection equipment $50.00 $60.00 $75.00 Pipe & Drape - Depending on size $75.00 $150.00 $175.00 Dance Floor - Depending on size $50 - $75 $50 - $75 $50 - $75 Linens and skirting - Actual cost $6.50 - $19.00 $6.50 - $19.00 $6.50 - $19.00 Admin 5.00% 5.00% 5.00% 32 11/9/2016 Admissions Tax A. Affected Businesses • PAEC • Wild Waves • Movie Theater May raise up to $0.60 million Admissions Tax ...continued B. Potential Revenue • 5% • 4% .. • 3/ • 2.5% • 2% • 1% • 90/A cap at 60 cents $0.61m $0.49m $0.37m $0.31m $0.24m $0.12m $0.40m Admissions Tax ...continued Actual Fee Amount Per Rate $7 $10 $20 $40 $50 5% 0.35 4% 0.28 3% 0.21 2.5% 2% 0.14 0.20 0.40 0.80 1.00 1% 0.07 0.10 0.20 0.40 0.50 5% 0.35 0.50 0.60 0.60 0.60 Capped 0.50 0.40 0.30 1.00 0.80 0.60 2.00 1.60 1.20 2.50 2.00 1.50 Summary Potential Total Revenues $1.25m $0 $0.36m $1.00m $0.40m $3.01 nn 11/9/2016 2 Summary ...continued Total Long -term Expenditures 9 Officers $1.80m Equipment $0.84m Guild $0.34m Unfunded Pos. $0.36m Job Market $0.30m Total $3.64m $2.98m Summary ...continued Funding of the 9 New Officers Depends on: • Utility Tax or Franchise Fees increase • COPS Grant (60% for 3 years) • Other source of revenues 11/9/2016 3 Conclusion Direct staff on the option to include in the November 15, 2016 Budget Ordinance: • Utility tax • Admission tax • TBD • Business Registration • Permit Fees • Market Salary Competitiveness • Historical Society 11/9/2016 4