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HomeMy WebLinkAbout050823 City Council Workshop Meeting Packet- Added After MeetingOptions for Financial Sustainability City Council Work Shop May 8, 2023 Presentation Objective This presentation reviews a range of alternatives for reaching Financial Sustainability and providing desired Level of Services in the City of Port Townsend. The presentation covers the following topics: C ty of port Townsend Financial Sustainability Background roject Purpose: Engage community members in a conversation around the City's long-term financial sustainability and its ability to provide quality municipal services. Build knowledge in the community about how the budget works, the constraints Port Townsend faces, and how everyone can work together to prioritize needs. Part of the "Engage PT" initiative Task -Force charge: Advise City staff on community engagement materials and strategies. Provide a report to City Council with directional recommendations for financial sustainability and delivery of quality municipal services, considering both revenue and cost/service options. ,u C y c u^ M't y Port Townsend financial Picture lance istorical (City Wide) Ending Fund Balance ioYear Financial Model ENDING FUND IBAILAINCII:::: & (General, Streets, & REET, Com Svcs, & Debt Funds) Status Quo IIIIIIIIIIIIIIIIIIIIIII-oLal Ending Fund Balance -Total Policy Reserves Level of Service Level of service discussion hat does level of service look like in each scenarios? ow do we achieve each scenario? What is the impact to our community in each scenario? ............................................................................................................................................................................................................................................................................................................... Sustain Current Services Enhance Services a Level of service discussion hat does level of service look like in each scenarios? ow do we achieve each scenario? What is the impact to our community in each scenario? ............................................................................................................................................................................................................................................................................................................... Sustain Current Services Enhance Services Level of service discussion hat does level of service look like in each scenarios? ow do we achieve each scenario? hat is the impact to our community in each scenario? ...................................................................................................................................................................... ................................................................. .............................................................. � Sustain Current Services Enhance Services io of service discussion omTask Force meeting 3 No Net Loss Sustain Current Services • Raise revenue to sustain current services • No new services • Trade-offs • "No cliff" • How to provide same service at less cost (Lean initiatives) — how far can this go? • Look not only at revenue side • Needed revenue to maintain Enhance Services • Efficiency remains important • Trade-offs • New revenue • Amount needed for enhanced services 11 Efficiencies A few example actions the City has taken in recent times to gain efficiencies (not all inclusive): Contracting for pool services Enhanced volunteer programs for Parks & other areas in the City Online permitting Public Experience Liaisons and new City Hall front counter On Call Services Change to mowing Lean thinking Electronic council and advisory board materials (eliminate paper) Updated financial software and electronic payment options (coming soon) Options for Financial Sustainability Balancing options for financial sustainability St ra t e g o e s (hincirease taxes aind fees) jww If new fun&hng sUrategliies GGGGare not pursued, alternatives are for a community to focus on groml,""i and/or reduce costs/find efficiencies L e v e o f S e r, vi c e (rech c e effider i c I 14 Proposed criteria for evaluating revenue options Magnitude: How much net revenue could this option generate? Growth: How is this revenue source expected to grow or decline in the future? Stability: How stable is this revenue source? Equity: How much does the revenue option align the burden of who pays with who benefits? Political feasibility: How politically feasible is the option? Restrictions/Alignment with needs: What can the revenue be used for? Can it meet the City's needs? 15 General Purpose Tax Revenue Options with Preliminary Scoring General P u rpo 5e Would gr(..,w with Property tax r..4 a parking IMPOCS t(.-JUrSi17fl. Current rate 0.2%, increase Could fund no -net 4o.50/S1 010,0 Subject to 19/,, Impacts all property Requires wcJtter Can be used for IB&O Tax - temporary, or enhancem,enenh $90,0,000 budgetary gr(:.jwtli Can be c-ongcoing owners, apprcival any purpose 3 permanent or 1,0'O'0, oalk at 50'% and inflatoin maximurn allowed and council decwcm any purpose owners limited purpose any purpose upper stc',ry housing cleyelopment Current 22% rate Warter'a, Sewer & Fees must be attributed eff t(:. -j 1 2/2023r limpacts specific Can be Stormwater Could fund no -net Ic-im I/. increase Would gr(:.jw as Jon 20,24 reverts to, Impacts all utility irnplennented Can be used for 3.125 Utility tax or enhancem,enents, S76,010,0 development grown 20% �$ I 52k users withr-jut voter any purpose 2.875 increases reduction in revenue� I approyal I I Electric and Could fund no -net loo I $ 8115 010, Would grow a&,,. Ongoing Impacts all utility Requires voter Can be used fare'2.5625rl All(:.jws implementation Would gr(..,w with r..4 a parking IMPOCS t(.-JUrSi17fl. Current rate 0.2%, Impacts all business Already Can be used for Would grow with time Cconcern over Needs study, Can be used for IB&O Tax Could fund no -net loo (assume 500 our of . increased eccmomic Ongoing Self-sustaining co,nimunity buy -in, 3.6875 1,0'O'0, oalk at 50'% and inflatoin maximurn allowed and council decwcm any purpose owners inujplemented any purpose upper stc',ry housing cleyelopment Fees must be attributed All(:.jws implementation r..4 a parking IMPOCS t(.-JUrSi17fl. management prr..,,gram Would grow with time Cconcern over Needs study, Can be used for Parking fees (assume 500 our of $312,500 Self-sustaining co,nimunity buy -in, 3.6875 1,0'O'0, oalk at 50'% and inflatoin accessibility and and council decwcm any purpose occupancy at $5 per. upper stc',ry housing day) Fees must be attributed limpacts specific Can be User Fees directly to a proyider's T IB D Would grow with use Ongoing users implemented 3.125 General Purpose Non -Tax Options with Preliminary Scoring General Pu Charge lease rIddtt !Cf Wreduce the abilltty i�„000 sf 1 f leased space rates f'Wr' City 'vide subsidized ttrl praed at 5/year NNN, est. _ per year. Space of Mtn. . services frir pub c View/C�itty Hall ) benefit ($150,0,0,0, `?F Is estimated and Replacement ifunding fc,r replacermenttHigh needs ttr:, be verified) N/A sustainabilitty Addresses reduction of Increase reserve i services and saves r:�rr fund balance Sttabliliz.esCitty services unexpected infrastructure requirements. cc:rstts.. Helps city weather' Current leased spaces dli nc:, pay rent far public benefit. The City Current subsidy hdf A Stable Cr:.until deci.sir: n.C,f333333 subsidizes services like supports cr)mranruny the fr,l:,d bank, Imrpraves susttainabilitty. IRecessirins are prime times Equitable ttr employees S-usttainable Investment pr:rr:,d frrr' gl wernni..entt to build and prr:ivides b-etterCr:runcil decisir:,n Services and 4.16..ur ur..urur..67. infrastructure instead €:f services. Crnimrounitty 1-7 i7 Saves r'Jne time Allr.:,ws gl Ir d year Re -instate Fleet 1 Creates crrrrsisttentt unexpected expenses funding ttn be applied Sustainable Replacement ifunding fc,r replacermenttHigh wliien equipment fails. N/A sustainabilitty to c()mmmunitty prrrlectts Services and 4.16666667 Reserves with cone of vehicles FLllaws strategy A.Isr:r saves maintenance instead (of fleet Cr Im mrul7 iffy time funds �transition ttlr eettrip fleet. cc:rstts fr..lr c,dd vehicles replaaelmentt Saves cne time Creates cansisttentt unexpected expenses ows gir:,d year Allr Establish a funding f€:Ir Imainttenace when building systems funding t(:) be applied Sustainable Facilities IRepair of buildings such as rur.if fails Also., saves N/A High sustainability ttri cc,mrmunitty prl.nleetts Ccjuncil ©ecisir:-n Services and 4.16666667 IReserwe with cone strategy replacmrentts, carpet, un ittend ed damage to instead r f building Cr mmmunitty ttllttre funds painting, etc. . buildings by staying r'epair's ahead cif repairs. 1-7 i7 1111111j11111'� 111111 1,1,111111,1. enera 11111111111. 11111111111. Purpose Non -Tax Options cont. with Preliminary Scoring No savings to general fund because internal ILr m of local control and service fund. Could be Operational and tailored services for more efficient,but may may not be urban needs (ie..,, nr n lose local control and Concern 1 verlack of EngineeringNo guarantee of sttaffing Council and County sttr'attegie May have. imirttl riz.eda Sttill requires public process associated N/A attention for city 2..33333333 Services - given labc:�a' market decisionmr..isalignrmentt management with witth key features like non- specific problemsJefferson Co-. IReducttir n in public motorized ttr'ansprlrttattiom... between urban and rural goals. process.. .Als.c:r would require contract manager(s).. Saves Ov'er'head.. ss of local conttrc:,l and Savings undetermined. Operational and tailored services for Nott likely a cost saving may not be Contract Planning urban needs (ie.,,non Concern ( ver lack 11f Services - inottr riz.ed)Still requires unless programs like N/A Nc:, guarantee of staffing attention for city Council and County strategic. May have 2..33333333 � historic preservation are given labor marketspecific decision m.,isalighlmentt Jeffers,on Co. management. eliminated- problems between urban and IReducttir n in public Saves ov'er'head r'ur'al goals.. and :Savings undetermined.Operational rm.:ay not be Contract Police Requires analysis. Saves Concern over lack of IRur'al versus urban No guarantee of staffing Council and County strategic. May have Services - overhead, equipment, and N/A attttenfir n fr r city 1.91666667 pc:rlicing given labor market decision m malighrm..,entt Jefferson Co-. other potential specific problems, efficiencies. between urban and rural owls.. No savings determined. Would result in a Current Structure Delamartter report, (CILEO Cciciperative revenue/expense gap.. c:�f' considered the est. $40,Ok * annually (Libr'ar'ies 1 f Eastern Contract ILibrary I annexation of PT Sustainable for the City Olympics aligns the based on taxing authority. . Council and Services -ILibrary finances. May not be Maintains access for needs (:.of City and I Currently, no general N/A. Deffercon County 3.16666667 Jefferson County I to Jefferson County fund subsidy of the sustainable for library everyone. ILibr'ary decision County by working ibrary ILibrary services. together #cj make (November 20,01 libr'ar'y.. In the future, may seerniless services require general fund for co nttr'ib-uttio n due ttc:r community inflation. May help with park Maintains access for maintenance A.bsentt cr'eatting a metro Savings could result In no Contract (Park i Sustainable for the City everyone Concern deficiencies. Could parks district, could Services - '1 increase in operational N/A. finances May not be (::over 'tthe ability to build Council and County expand 2..63333333 create efficiency of costs. 6ssum7e $f mi per decision Jefferson Co,. susttainable for parks. . new parks as the city recreational service. year continues. grows. programs with Jeffersr,n Cn Mpo Roadso, Tralls 10 P �r Sales tax available Transp rttatti(::rn Could fund no -net lass Would grow writth for 10, ears with Impactsreq all May uire voter For transportation ' IPrenefitt Disttri'ctt 0,-2% = $550,,00 increased ecmn€:Nmic 3.25 r' enhgnc:enentts soles tax nl•n development indefinite number purchases apprc:rv'gl p..rc:rjectts of renewals Transp•Ilrttattion Would grow with Sales tax available Can be. Could fund no -nett r.ms IBenefit District I n Q_f iro — $275,ff0^0 Increased ecGi c.)rnic far 10, years with Impacts all implemented For transportation 3.375 {lrenhanCnl sales flax develciplmentt ml'.-enentts indefinite nu,er' purchases without voter ' projects of renewals approval Sales tax available Can 6•e Transpclrtattic:m j Could fund no -net Ic:rss 'We:l•uld grow with murrrE far 10, years with Same fee far all iimpleireiEnttEd For transportation IPrEnEfitt District I $20P fee _ $186,000 3.061,25 or enhancmi:enentts vehicle license fee1 vehicles registered indefinite number' vehicle owner's without voter ' projects f renewals q r4:Tvgl $5,000/hou5ing unit Gre,wtth could the x 50' units per year = reduced by attainable $251 ,000 per year p y housing incentive g � Impact Fees strategy ttc. gy current levels of program for additional p Ongoinguntil Can 6e Far capital prc:ijectts Impact Fees i ii achieve attainable p devel .,mrent $5,000' units. . if all new Wnift strategy ISS Impacts specific i mplemientted specific to the fee 4.25 - Trp'pnS CARttpttrC:N7 W.SenS wlth 7g,� �&ttR'eettSH h{lWsparks) housing goal.. would need to bfCir' aremarketr tel(75wth per achiev'e'd.. apY.p 1*pier' a r'k sj justified yearin ncln Imcifi r'iz.ed r'ev'enue goes up to facilities $375,000.. Could fund no -net loss Based on C Improves and'gpingl Impacts all property requires vf:stter For capital projects 'C.gp,lttgl BI:D:nd i or e�nhancmenentts lnlprclv'enientt flan C7nE time m1:I:D17Ey IAUp 117ttgln S owners approval Sp-ecific to the bond 2..625 infrastructure Parks, Pools, Public Facilities Tax Options with Preliminary Scoring Parks, Pools, Public: Facilities Metropolitan,Park 'Could fund no -net lass $0 75 per $1,000 Subject ttc1 npa-efts all prllpertty Requires, Wcrtter District Ongoing Fllr park projects 3.5625 I.lr enhaneernienentts -$1,60,0,0,0,0, budgetary gre:rwttli owners app..rr.,val ra e..rtt tax Subject ttlY % I% Parks, and Could fWfundY7rl-nett Cess ll'nlpa CttS all prllp,ertty Requires va-tter Frlr parks services, 6year' le'v'y budgetary grcrwtth„ Limited tier dl year's3-125 R ecC'eattl rin District I.lr enl'IaY7Celn1en entts owners ap-p,r I..IWpI lmltted tterml'... limited to, 6 years Parks and Subject ttci f°r� Recreations C ' Could fund no -net 6 year' levy budgetary grci-wtth� Limitedto 6 years3.A 1m1..,pa-Ctts all property Requires Wl;rtter' FYiY parks services, ' 25 eir' en1'IaYYce m1'..,eYlelownersC7pp,Y'I:iV'al sitted lrmtted term ..... Service Area limited to, 6) years Public Facllitties 'W'W r.juld grllw with ©,i.sttrlett Could fund n(.,-netIr.:rss 0.2 .�� — $550,00,0' increased eecanrilnnl�c Ongoing Impacts all Requires va-tter For a regional 3.0625I.lr ' nnenentts enhaneer purchases p appr'cival facility s'pes tax deWeCr AnkeM7tt $5,000/housing unit Growth could be. x 50 units per year = reduced by attainable $250,000 per year housing incentive Can be Frlrc capital prcrjectts Impact Fees Impact Fees strategy ttei current levels of programs for additional Ongoing until Impacts specific Ilniplelmiel7tted specific to the fee Parks / Open achieve attainable develcllmentt. $5,000 units. If all new units, strategy is 3.5625 users without voter (housing,sttreetts, Space housing genal. would need to be are I'nar'kett rate (75 per a-chiev'ed. approval parks) justified by study fr..-,r ' year'), then gr'ciwtth in non-rnncittlir'iz.ed revenue goes up.. ttci.. facilities S375.000.. Current fees, $I OO,k 'G..an be Current cost to I r'un Fees must be attributed Impacts specific Imiple-muel7tted Specific frlr C7&dWW Pool Use fees existing pool, $600k W^W(..j,uld grcia+ witth use Ongciing 3.6875 directly ttci user users without voter a -f facility 1 1 1,n,, apprclval Housing Revenue Options Preliminary Scoring ,i Ha�usin Estimated market value = Council decisio-n.. Reduce remnant Could be for Seed fund or use $2,"ggg'ggg, based con I'�eighbnrhe:re�d Sale of (Land ownership potentially No growth potential One time affordable housing a ' foraffordable 3.08333333 for housing esttirmdtted 20,, lots with net Equitable strategy concerns to he housing value of $100140,0,0, considered_ Expansion of sewer for 700 acres existing Perceived gentrification j housing and industtry. High growth potential witthIRequiresCountty Potential UGA swap industrial. Potential for utility tax, B&O, sales,. and witth increase business and City Council 300 acres additional I ppr rttulnitty Cost to run Glen C€:ive UGA More efficient urban pre pertt ttax. Need appr€: val (Requires Supports housing housing and light industry. Grl::wtth with time business could increase 4.33333333 Expansion services based con Estimated annual $l im in subarea plan to dr'iv'e with urban services. UGA change and jobs i existing developnxentt 20, density for most efficient IIsll f'c:.r. approval by j patterns and potential revenue gr'owtth over services_ opportunity Commerce. for infill. year per iod more family wage jobs- Ongoing annual revenue CcAnttinued development Provides deeded City initiated resulting from workforce Inflattir.:ndry growth Supports critical o housing (Evans Provides housing housing $15,0001yr for potential. Plsc.r tthere f attainable housing is access ttt.i attainable Requires Council attainable housing 4.66666667 required for a sustainable hl lusii7g. Need mix of approval Vista) f 50 units- Other non- ttangible community value one ttimie tax revenue eolmmnunitty housing. TIB©, needs (Lower's tax burden on i residents infrastructure. Infill Develcimpent We need 75 units per Est $330,00k0, per year for High level of suttainabil'itty Strategy:y g going . year on average salol new revenue associated if housing is infill Crittical need for with construction sales fax compared to sprawl. Infill is equitable. Could Planning process, Examples include forward plus 400 units Yes, depending o::on housing backlog financial,right because and property tax. Alla, density and local C7ng€;ing with new housing include prrigrdmr,tte; requires Planning needy Cllrnattey and 4 now of there is a density tax units. Will v'ar'y with achieve attttainable Colm ImissioIn and marketing and j backlog of nc)f enough capacity ttc build. insfrasttructture reduction of 20% market conditions and hc.using needs. City Cc. unciI zoning policy, ie Iunitts being consttr'uctted sustainability tactical infill ) lost 20, for 10,13 miles of water, funding. Ne -ed ttc:. address over the years_ sewer, and streets. building cycle problems,. I (Current unit count p..er. year is 50, II!!11lPGYfr11lIIIl' Hou Min Tc:ttaI grosscoinni,ercial a- activity is $450, in for Cyclic eased e:.n ea:iagmxy.. However, cin average WeH g Bitty or $1 3 in/acre r:�f' (Balancing good possible new and Growth can e:.-ecur very sustainable based on commercial land space Requires dedicated paying Ir bs with additional jobs. Makes depending communityWA5ttatte tax s#ruetture".. Support div'er'se use i f commercially (32.5 acr'es) apettittie for increasing Commercial activity is investment in cr mnmwnitty needs is Commercial zoned property. Vitality For Example IRo imn ttr:�. business activity and what drives city revenue. Depends con lob- types econ mnic the key strategy 3.91666667 (Business Growth increase co nn"nereial development and for ccimimereial in er,inrinnercial districts workforce housing This includes professional activity on land by 20,% housing growth. lie arts, supports better services. availability.. services, trades,small which generates $640kcr immnumitty) additional annual business, manufacturing, revenue. etc. Improves level of High revenue potential High growth pr ttenttral Huge improvement in7i -Hing isthe key IBestt return (..on Support Market -, service for housing and for market rdtte if MF development Creates long termdriver equity in hriusing. for making investment is Apartments serve all Multifamily infrastructure due tc, apartments due to utility can be established as financial sustainability for land available for apartment 4.5 people at different He:,-using imaximvumn density ttax,sales ttax,. and the norm for unit cities. . aparcmnentts.. cr:,.rm....p-lexes. - Strong stages of life and dont ' opportunity. property tax revenue. creation. discriminate. decision Towns. Reduce or Helps with housing Not estimated vett May Equitable use of the Growth eliminate off- Depends on housing density, increases cost 6e a net zerr:r if hr:�using N/A right x:f way for Council decision p-r:�tterrttialfrir hr-using 4.16666667 street parking density dewleop-mt"entt of street maintenance density is achieved. housing purposes density requirements Goal to maximize development (f new attainable units. We growth potential 15 Or%j AMI Multti Incerease attainability revenue neutral , but s need 80, c of all new Makes housing Marking and for housing = Family Tax of housing from 120% transfers, property tax units to the attainable N/A available for more sttrate gy 1176 eligilbe units 3.86111 Exemption tto15Q.'"aAMI qualified costs ttrrest e:,fproperty c:�a' affordable. people. . develr pmi:entt.. a-utt of 1448 units I. Prr:rgr'arm households. tax base Based on Dept. of needed by 2044 Commerce 20, yr' p re:,}ectti on Next Steps Financial Sustainability Task Force Meetings continue through June Comprehensive Financial Sustainability Report to Council in July Public Engagement Videos Questions / Feedback for all Teams What is missing from this picture? Anything you would like to see addressed in the final report? Anything missing in the process? ThankYou Questions? )iscussion and Feedback City of nM°'" port Townsend Ffgure2 �llusty-citi;igR-ilzorTong,dee ksdty�ochev,-d. oNyo handful ofWocks u? the City ate developed tofuY intended demdy, Surdt.; / b7,,?'00sf= 5.1 umtslrjcrp for totolkind arro 6 unds 140,000sfS.7 undslocre ofpfoUedland Frgure 1, Lot and Block Pattern wth 5000sl1oft in a 2f)O'x2OIO'bbf,'k UhAtrates ton, densafy wdh 3 baa rnes over to lofs, Land area prof 260'x26G'= 6r',600.sfcomparp.d to bugdabre orea of 200'x200' 4Q,000 a 27,600s,fis fight of way m 4096 of the land wea