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Home My WebLink About050823 Special Session Financial Sustainability Task Force Joint Meeting with City CouncilLe, W C ti M N O � � N � M v' U Z ct bn a � U Hy U �-- VW W , >kn knun VO Ln o kr) N ri t% Le, W C ti /u \ E % e£ % z \ 0» » 2 f 2 t o 2\ t g/ 0ƒ{ 2 u E J® 3 R £ 5 % 3 7 3 4--, y % / » f ° 3[ e : -u -0 2 y m* d 0 u/ Ln / 0 :::3 \ \ J -0 / .e 2 2 2 /\\ e / 4- % %0 u »= 2 f ce £ '& u / \ _ / / 2 \ \ / c / .R w / e / / \ \ / y J / 9 \ o *o e u > % / / 0 ° E J / 7 E o / \ / ± I & Q) p . 0 E\ y y _» ® £ \ » ± 3 Q % \ ƒ� / i ( f a -0\ \ / ( 2 3 — _ s/\ c -0 = a \ eƒ E i/ ou y$ k\ 7 y e — Lo \ \ ' \ 0 ` f ƒ / 4- m f _E§ ` / 4 e / 3 \ / [ ./ j} } ® y ® e ; 3 .e 2 \ 3 p \- E \ % .e 3 p \ E E 2 / \ ° 9 \ 4-1 / \ / / ± ° k / / 1 } ƒ n } / LLo2 / 2 2 \ § \ /D0c Options 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: Background Financials10, Next Steps 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 Taskforce charge: Advise City staff on community engagement materials and strategies. Provide a report to City Council with directional recommendations for ancial sustainability and delivery of quality municipal services, nsidering both revenue and cost/service options. C - ty 01�� n^,6y ortlownsend �� inancial Picture Ending Cash Balance I ar Historical Cash Flow m m am Ending Fund Balance ioYear Financial Model EINDIIIING IF U I I IISAILAINCIE .If reeIR111::::1I 'VIE . .... I AIIRGII:::::� I .. .... ....... (Generall, Stts, & PREET, Com Svcs, & DO.. -)-t 11:::::unds) Status Quo 4- 4- 4-1 rresro (D fu 4-j +1 1 j tin Ln Ln Ln Ln (n D U1 U U D Ui CD U -�-j U _0 rq LL LL LL LL LJ_ Lj- :D < < < < f1q m �• n w Y CX) a) 0 r� C.0 < 0 H 0 rq N rq N rq rq r1r) 0 H H 0 0 m rq rq 0 N rq frn 0 0 0q rq 0 0 N0 0 ri rq rq 0 N0 rq rq iiiiiiiiiiiiiiiiiiiiiillillillillillillilliIlTotaEnding Fund Mance —:,TotaPoky 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? Do Nothing 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? What is the impact to our community in each scenario? Do Nothing Sustain Current Services ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Enhance Services W 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? Do Nothing Sustain Current Services ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Enhance Services 10 Level of service discussion Notes from Task Force meeting. 3 Do Nothing • No new revenue • Service level reductions • "Fall off a cliff" • Efficiency here also • Describe the impacts of doing nothing • Impact on major initiatives (pool)? • Potential service cuts 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 3.1 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 optionsforfinancial sustainability uiiiri d Iii iirg S bra teg��es (iiriose taxes a n d "fees) rov,,/ evek of S& . . .. . . . . . . . . �c,e (re d j �,, c e 0 S "t S [f r d e ff'� c II e c II e s) If new f u iiia d Iiiiiia g s bra tegIiies are not pursued, alternatives are for a community to focus on grovvit'[-"i, and/or ii t :1 ce costs/fh�-"'iid 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 Purl Property tax increase - temporary, permanent or limited nurnosr General Purpose Tax Revenue Options Could fund no -net loss or $.50/$1000 = enhancemenents $900,000 Subject to 1 % Can be ongoing Impacts all property Requires voter Can be used for budgetary growth owners approval any purpose Current 22% rate Water, Sewer & eff to 12/2023; Jan Can be Stormwater Could fund no -net loss or 1 % increase = Would grow as 2024 reverts to Impacts all utility Can be used for implemented without Utility tax enhancemenents $76,000 development grows 20% ($152k users voter approval any purpose increases reduction in revenue) Electric and Could fund no -net loss or Would grow as Impacts all utility Requires voter Can be used for 1 % _ $8,500 Ongoing Telephone enhancmenents development grows users approval any purpose Would grow with Current rate 0.2%, Impacts all business Already Can be used for B&O Tax Could fund no -net loss increased economic Ongoing maximum allowed development owners implemented any purpose Allows implementation of a parking management Impacts toursim. Needs study, program (assume 500 Would grow with time Concern over Can be used for Parking fees $312,500 Self-sustaining community buy -in, our of 1,000 stalls at and inflatoin accessibility and any purpose and council decision 50% occupancy at $5 upper story housing per day) Fees must be attributed Can be Impacts specific User Fees directly to a providers TBD Would grow with use Ongoing implemented without 1.6 service users voter approval General Pumoie Charge lease rates Could reduce the ability for City Space at to provide subsidized Mtn. View/city services for public Hall benefit General Purpose Non -Tax Options 10,000 sf of leased space Saves one time Current leased spaces Creates consistent at $15/year NNN, est. = Establish a Facilities funding for maintenace do no pay rent for $150,000 per year. N/A Stable public benefit. The City Council decision (SF is estimated and needs replacments, carpet, Also saves unitencled subsidizes services like to be verified) painting, etc. the food bank, historical society, YMCA. Current subsidy supports communiy Addresses reduction of Improves sustainability. Increase reserve services and saves on Recessions are prime times Equitable to employees Sustainable Services fund balance Stablilizes City services unexpected infrastructure Investment pool for government to build and provides better Council decision and Community requirements. costs. Helps city weather infrastructure instead of services. recessions. laying people off. Re -instate Fleet Replacement Reserves with one time funds Creates consistent Saves one time Allows good year funding for replacement unexpected expenses funding to be applied to of vehicles. Allows when equipment fails. Also N/A High sustainability strategy community projects transition to eletric fleet. saves maintenance costs instead of fleet for old vehicles replacement Allows good year funding to be applied to N/A High sustainability strategy community projects Council Decision instead of building repairs Sustainable Services and Community Sustainable Services and Community Saves one time Creates consistent unexpected expenses Establish a Facilities funding for maintenace when building systems fails. Repair Reserve of buildings such as roof with one time funds replacments, carpet, Also saves unitencled damage to buildings by painting, etc. staying ahead of repairs. Allows good year funding to be applied to N/A High sustainability strategy community projects Council Decision instead of building repairs Sustainable Services and Community Sustainable Services and Community 9,,ff General Purpose Non-Tax0 tions cont. No savings to general fund because internal Loss, cif lciral c(..-j,ntr(..-j] and service fund. Could be Operati(.:.mcil and &:),ntra,ct tail(.:.j,red servi�ces, f(.:),r niore efficient, but ni,ay inlay n(.:)t be Engineering urban needs, (ie., n(.:.j,n- Mase and N(.:.-, guarantee (.:.-if staffing C(,...j,n,cern (.:)ver lack (.:.A Co,unol and 'C(),unty strategic- May have rn,r.:A(.:.'j,rized).. Still requires, 1publi�c pr(.:.jres& as,&(.:),ciated N/A atteritk:'m fr.:.'a city Services, - Services, i�nageni,ent.. nci with key fecitures like mm- : given Iab,(.:),r i7n,arket specific pr(.:),b1einz niis,alignin,ent Jeffer&r.:.,,n C(.:.,. between urban and Redu,cti(.:),n in public in,otorized trans,p,r.:.'j,rtati(.:),n- rural pr(.:),res,&. Also w(..-,,uld require c(.:),ntra,ct ni,anager(s). Saves Overhead.. U.ma (.:A 1(.:.jcal and Savings undeterniiined.. Op,eratk:.mal and tailci,red serwces, fo,r N(.:A likely a Cf aStt saying ni!ay n(.:)t be Contrac Planning urban needs, (ie., n(.:.'m- Cc-mcern over lack c -if Services - rn,r.A(.:.j,rized).. Still requires, unless pr(.:.�,grciinis like N/A N (.:.� guarantee (.:A staffing cittenti(.:.-in fr.:.-j,r city &:),cil and C(),unty un strategic.. May have Jef:fers(.:.-,,n C(.:.,. ni�anageni,ent.. hi5t(::),r[c presvervati(.:),n are gi`ven lob,(.:),r inacirket specific pr(.:),b]enm, dedsk.:.'m iiiisvolighin,ent elinuncited. between urban and Reductio,ri in public Saves c-,verhead rural 'leavings undeteriniined.. Op,eratk:.mal and C(antra,ct Po1i,ce IRequires, ancilyms. Saves, G,--mcern over lack c -if illay n(.:)t be Services, - �Rural versus urban r.:.-jverhead, equipin,ent, and N/A N(.:.� guarantee (.:A staffing cittenti(.:.-in fr.:.-j,r city C(.:),uncil and &:),unty strategic., May have Cj given lob,(.:),r in�cirket decisk:'m insvolighin,ent Jeffersr.:.mpYrllCln r.Aher 1p,r.Aential specific pr(.:),blenils, efficiendes., between urban and rural cv:.-tals. N(.:D sayings deterniiined.. Current Structure Delani,arter rep,(.:.j,rt, Would result in a (CLEO C(.:),(.:.j,perative revenue/expense gap c-if o:msidered the est.. $400k 4 annually Libraries (.:-4 Eastern &:mtrac Library annexcitik:'m (.:.,if IPT Sustainable f(.:),r the City Olyillipi�cs) aligns the Services - Library based (.:),n taxing auth(.:),rity.. finances.. May ncjt be Maintains accessv fr.:a &:.-wncil and nee& (.:)f City and Jefferso,n Co,unty tr.:.-j Jeffers(.:. -,,n &:.-jurnry ,Currently, n(.:) general N/A sustainable library e Y e r y (.:-.in e. Jeff er,c(.:.-m &:.wnty Cc-j,unty by w(.:),rking Library Library fund subsidythe services.. Library de,ci5,i(::),n tr.:.�,gether t(.:.-, in,alke �N(.:)veniiber 2001 ) library.. In the future, illay seeni]ess serv[ces - require general Ifunr f(.:.vr c(.:),niirn,unity ccmtributio,n due to infIati(::),n.. May help with park Absent creating a ni,etr(.:.-j Savings o),uld result in n(.:) Maintains access fr.:a niaintencince C(.:.mtra,ct �Park parks, di&tr[ct,,c(.:),uId increase in Sustainable f(.:),r the City eyery(::),ne.. &:),ncern and &:),unty deficiencies. &:),uld Services, - crecite efficiency (.:.,if Asauni,e $1 iv� per N/A finances. May ric-it be over the ability t(.:) build dedsk.:.'m expand expand Jeffersr.:.m C(.:.-,. s ustfr..-, ainable r park&., new parks, as, the city recreatk:mal svervice_ year c(.:.'mtinuesv. g r (::) w s,.. pr(i.,Branlls with Jeffers(.:),n C(.:).. Transportation, Roads, Trails Tax Revenue Ogtions Transportationl, Roads, Trails Sales tax available Transportation Would grow with Could fund no -net loss or for 10 years with Impacts all May require voter For transportation Benefit District 0.2% $550,000 increased economic enhancmenents indefinite number of purchases approval projects sales tax development renewals Sales tax available Transportation Would grow with Can be Could fund no -net loss or for 10 years with Impacts all For transportation Benefit District 0.1 % $ 275,000 increased economic implemented without enhancmenents indefinite number of purchases projects sales tax development voter approval renewals Sales tax available Transportation Can be Could fund no -net loss or Would grow with more for 10 years with Same fee for all For transportation Benefit District $20 fee = $186,000 implemented without enhancmenents vehicles registered indefinite number of vehicle owners projects vehicle license fee voter approval renewals $5,000/housing unit x Growth could be 50 units per year = reduced by attainable $250,000 per year housing incentive For capital projects Impact Fees strategy to current levels of program for additional Can be Impact Fees Ongoing until Impacts specific specific to the fee achieve attainable develoment. $5,000 units. If all new units are implemented without - Transportation strategy is achieved. users (housing, streets, housing goal. would need to be market rate (75 per voter approval parks) justified by study for year), then growth in non -motorized revenue goes up to facilities $375,000. Improves and Could fund no -net loss or Based on Capital Impacts all property Requires voter For capital projects Capital Bond One time money maintains enhancmenents Improvement Plan owners approval specific to the bond infrastructure Parks, Pools, Public Facilities Tax Dations Parks, Pools, Public Facififies Metropolitan Park Could fund no -net loss or $0.75 per $1,000 = Subject to I% Impacts all property Requires voter District _$1 enhancemenents 600,000 budgetary growth Ongoing I owners approval For park projects property tax Increase fees, $100k Subject to 1 % Parks and Could fund no -net loss or Impacts all property Requires voter For parks services, year levy budgetary growth; Limited to 6 years Recreation District enhancemenents limited to 6 years owners owners approval limted term Parks and Subject to I% Could fund no -net loss or Impacts all property Requires voter For parks services, Recreations Service 6 year levy budgetary growth; Limited to 6 years Area enhancemenents limited to 6 years owners approval limted term Public Facilities Would grow with Could fund no -net loss or Impacts all Requires voter For a regional District = $550,000 increased economic Ongoing enhancemenents purchases purchases approval facility sales tax development $5,000/housing unit x Growth could be 50 units per year = reduced by attainable $250,000 per year housing incentive For capital projects Impact Fees Impact Fees strategy to current levels of program for additional Can be - Parks / Open achieve attainable cleveloment. $5,000 units. If all new units are Ongoing until Impacts specific implemented without specific to the fee strategy is achieved. users (housing, streets, Space housing goal. would need to be market rate (75 per voter approval parks) justified by study for year), then growth in non -motorized revenue goes up to facilities $375,000. Current fees, $100k Current cost to run Can be Fees must be attributed Impacts specific Specific for O&M of Pool Use fees existing pool, $600k Would grow with use Ongoing implemented without directly to user users voter approval facility Increase fees, $100k Housing Housing Tax Revenue Options Affordable Housing Sales Tax Implemented at County level; ILA with the County through the Housing Fund Board $500k Grows with increased economic development Ongoing Impacts all purchases Already implemented Provides Affordable Housing and Homeless Housing Programs Implemented by the Provides Affordable Affordable City; ILA with the County $25k Grows with increased Ongoing Impacts all Already Housing and Housing Sasles Tax through the Housing economic development purchases implemented Homeless Housing Fund Board Programs Provide higher level of responsiveness for permit processing by Can be Supports critical Development Would grow as Impacts specific funding staff positions. TBDdevelopment Ongoing implemented without attainable housing Services Fees grows users Fees must be attributed voter approval needs directly to a providers service Housing Non -Tax Options Estimated market value = Council decision. Reduce remnant $2,000,000 based on Could be for affordable Neighborhood Seed fund or use Sale of Land ownership potentially for No growth potential One time housing. for affordable housing estimated 20 lots with net Equitable strategy concerns to be housing value of $100,000 considered. Expansion of sewer for 100 acres existing Perceived gentrification housing and industry. High growth potential with Requires County industrial. Potential for with increase business Potential UGA swap. 300 acres additional utility tax, B&O, sales, and opportunity. Cost to run and City Council Glen Cove UGA - More efficient urban housing and light industry. Growth with time propert tax. Need business could increase approval. Requires Supports housing Expansion services based on Estimated annual $1 m in subarea plan to drive with urban services. UGA change and jobs existing development density for most efficient approval by revenue growth over 20 Also opportunity for patterns and potential year period services. more family wage jobs. Commerce. for infill. Ongoing annual revenue Continued development of Provides needed access City intiated resulting from workforce Inflationary growth attainable housing is to attainable housing. Requires Council Supports critical housing (Evans Provides housing housing = $1 5,000/yr for potential. Also there attainable housing required for a sustainable Need mix of housing. approval Vista) 150 units. Other non- one time tax revenue community TBID needs tangible community value Lowers tax burden on residents infrastructure. Est $330,000 per year for High level of sutainability if Infill Develompent We need 75 units per new revenue associated housing is infill compared Strategy: Examples year on average going with construction sales tax to sprawl. Ongoing with Infill is equitable. Could Planning process, Critical need for forward plus 400 units Yes, depending on housing backlog include financial, and property tax. Also, new housing units. Will include program to requires Planning right now because of density and local needs, climate, and marketing and there is a density tax vary with market conditions achieve attainable Commission and City backlog of not enough capacity to build. insf rastructure zoning policy, ie burden reduction of 20% and funding. Need to housing needs. Council tactical infill units being constructed for 100 miles of water, address building cycle sustainability over the last 20 years. sewer, and streets. problem. (Current unit count per year is 50) �Housi Support diverse Commercial Business Growth Possible new and additional jobs. Makes use of commercially zoned property. Vitality in commercial districts supports better services. Housing Non -Tax Options cont. Total gross commercial activity is $450 m for the city or $1.3 m/acre of commercial land space (325 acres). For Example Room to increase commercial activity on land by 20% which generates $640k additional annual revenue. Growth can occur depending community apetitie for increasing business activity and workforce housing availability. Cyclic based on economy. However, on average very sustainable based on WA State tax structure. Commercial activity is what drives city revenue. This includes professional services, trades, small business, manufacturing, etc. Depends on job types Requires dedicated investment in economic development and housing Balancing good paying jobs with community needs is the key strategy for commercial growth. (ie arts community) Improves level of service Goal to maximize Huge improvement in Zoning is the key Best return on High revenue potential for High growth potential equity in housing. for housing and attainable units. We driver for making investment is Support Market Inccrease attainability of market rate apartments if MF development can Creates long term financial Apartments serve all 150% AMI Multi infrastructure due to need 80% of all new land available for apartment Multifamily Housing housing from 120% to due to utility tax, sales tax, be established as the sustainability for cities. people at different maximum density and property tax revenue. norm for unit creation. stages of life and don" t aparments. complexes. - Strong Exemption Program opportunity. or affordable. Council decision Towns. households. tax base discriminate. Reduce or Based on Dept. of by 2044 Helps with housing Not estimated yet. May Commerce 20 yr Equitable use of the eliminate off-street density, increases cost of be a net zero if housing Depends on housing N/A right of way for housing Council decision Growth potentialfor parking density clevleopment housing density street maintenance density is achieved. purposes reauirements Goal to maximize development of new attainable units. We growth potential for Inccrease attainability of revenue neutral ,but 150% AMI Multi need 80% of all new Marking and housing = >1 176 Family Tax housing from 120% to transfers property tax to be N/A Makes housing available 150% AMI qualified costs to rest of property units attainable for more people. strategy eligilbe units out of Exemption Program or affordable. development. 1448 units needed households. tax base Based on Dept. of by 2044 Commerce 20 yr projection Next Steps Financial Sustainability Task Force Meetings continue through June Comprehensive Financial Sustainability Report to Council in July Public Engagement Videos Preliminary ranking results from the Task Force will be provided as an update on Monday May 8th. PortTownsend ThankYou Questions? Discussion and Feedback Financial options with criteria-Taskforce Taxes and Fees General Purpose Property tax increase Could fund no -net loss or $.50/$1000 = Subject to 1 % Impacts all property Requires voter Can be used for any - temporary, enhancemenents $900,000 budgetary growth Can be ongoing owners approval purpose permanent or limited purpose Current 22% rate eff to 12/2023• Jan Water, Sewer & Can be Could fund no -net loss or 1 % increase = Would grow as 2024 reverts to Impacts all utility Can be used for any Stormwater enhancemenents $76,000 development grows 20% ($152k users implemented without purpose Utility tax increases voter approval reduction in revenue) Electric and Could fund no -net loss or I% _ $8,500 Would grow as Ongoing Impacts all utility Requires voter Can be used for any Telephone enhancmenents development grows users approval purpose Would grow with Current rate 0.2%, Impacts all business Already Can be used for any B&O Tax Could fund no -net loss increased economic Ongoing maximum allowed development owners implemented purpose Allows implementation of a parking management Impacts toursim. Needs study, Parking fees program (assume 500 $312,500 Would grow with time Self-sustaining Concern over community buy -in, Can be used for any our of 1,000 stalls at and inflatoin accessibility and purpose 50% occupancy at $5 upper story housing and council decision per day) Fees must be attributed Can be User Fees directly to a providers TBD Would grow with use Ongoing Impacts specific implemented without service users voter approval Transportation, Roads, Trails Sales tax available Transportation Would grow with Benefit District Could fund no -net loss or 0.2% _ $550,000 increased economic for 10 years with Impacts all May require voter For transportation enhancmenents indefinite number of purchases approval projects sales tax development renewals Page 1 of 7 Financial options with criteria-Taskforce Taxes and Fees �o =�i Ell I IMMEN= � Sales tax available Transportation Would grow with Can be Could fund no -net loss or Benefit District 0.1 % _ $275,000 increased economic for 10 years with Impacts all implemented without For transportation enhancmenents indefinite number of purchases projects sales tax development voter approval renewals Sales tax available Transportation Can be Benefit District Could fund no -net loss or $20 fee = $186,000 Would grow with more for 10 years with Same fee for all implemented without For transportation enhancmenents vehicles registered indefinite number of vehicle owners projects vehicle license fee voter approval renewals $5,000/housing unit x Growth could be 50 units per year = reduced by attainable $250,000 per year housing incentive For capital projects Impact Fees Impact Fees strategy to current levels of program for additional Ongoing until Impacts specific Can be specific to the fee achieve attainable develoment. $5,000 units. If all new units are implemented without - Transportation housing goal. would need to be market rate (75 per strategy is achieved. users voter approval (housing, streets, parks) justified by study for year), then growth in non -motorized revenue goes up to facilities $375,000. Improves andImpacts Could fund no -net loss or Based on Capital all property Requires voter For capital projects Capital Bond One time money maintains enhancmenents Improvement Plan owners approval specific to the bond infrastructure Parks, Pools, Public Facilities Metropolitan Park Could fund no -net loss or $0.75 per $1,000 = ° Subject to 1 /o Impacts all property Requires voter District enhancemenents ~$1,600,000 budgetary growth Ongoing owners approval For park projects property tax Subject to 1 Parks and Could fund no -net loss or Impacts all property Requires voter For parks services, 6 year levy budgetary growth; Limited to 6 years Recreation District enhancemenents limited to 6 years owners approval limted term Parks and Subject to 1 Could fund no -net loss or Impacts all property Requires voter For parks services, Recreations Service 6 year levy budgetary growth; Limited to 6 years Area enhancemenents limited to 6 years owners approval limted term Public Facilities Would grow with District Could fund no -net loss or 0.2% _ $550,000 increased economic Ongoing Impacts all Requires voter For a regional enhancemenents purchases approval facility sales tax development Page 2of7 Financial options with criteria-Taskforce Taxes and Fees �oEll IMIFMMEEM $5,000/housing unit x Growth could be 50 units per year = reduced by attainable $250,000 per year housing incentive Impact Fees Impact Fees strategy to current levels of program for additional For capital projects Can be - Parks / Open achieve attainable develoment. $5,000 units. If all new units are Ongoing until Impacts specific specific to the fee implemented without Space housing goal. would need to be market rate (75 per strategy is achieved. users (housing, streets, voter approval justified by study for year), then growth in parks) non -motorized revenue goes up to facilities $375,000. Current fees, $100k Fees must be attributed Current cost to run Impacts specific Can be Specific for O&M of Pool Use fees directly to user existing pool, $600k Would grow with use Ongoing users implemented without facility voter approval Increase fees, $100k Housing Implemented at County Provides Affordable Affordable level; ILA with the $500k Grows with increased Ongoing Impacts all Already Housing and Housing Sales Tax County through the economic development purchases implemented Homeless Housing Housing Fund Board Programs Implemented by the Provides Affordable Affordable City; ILA with the County $25k Grows with increased Ongoing Impacts all Already Housing and Housing Sasles Tax through the Housing Fund economic development purchases implemented Homeless Housing Board Programs Provide higher level of responsiveness for permit Development processing by funding Would grow as Impacts specific Can be Supports critical Services Fees staff positions. Fees must TBD development grows Ongoing users implemented without attainable housing be attributed directly to voter approval needs a providers service Page 3 of 7 Financial options with criteria-Taskforce Non -tax General Purpose Current leased spaces 10,000 sf of leased space Charge lease rates Could reduce the ability at $15/year NNN, est. _ do no pay rent for for City Space at to provide subsidized $150,000 per year. NSA Stable public benefit. The City Council decision Current subsidy Mtn. View/City services for public subsidizes services like supports communiy Hall benefit timeted and needs (SF is estimated the food bank, historical to be verified) society, YMCA. Addresses reduction of Improves sustainability. Increase reserve services and saves on Recessions are prime times Equitable to employees Sustainable Services fund balance Stablilizes City services unexpected infrastructure Investment pool for government to build and provides better Council decision requirements. costs. Helps city weather infrastructure instead of services. and Community recessions. laying people off. Re -instate Fleet Creates consistent Saves one time unexpected Allows good year Replacement funding for replacement expenses when equipment funding to be applied to Sustainable Services Reserves with one of vehicles. Allows fails. Also saves N/A High sustainability strategy community projects and Community time funds transition to eletric fleet. maintenance costs for old instead of fleet vehicles replacement Creates consistent Saves one time unexpected Allows good year expenses when building Establish a Facilities funding for maintenace systems fails. Also saves funding to be applied to Sustainable Services Repair Reserve of buildings such as roof NSA High sustainability strategy community projects Council Decision with one time funds replacments, carpet, unitended damage to instead of building and Community buildings by staying ahead painting, etc. of repairs. repairs No savings to general fund because internal service fund. Could be more Loss of local control and efficient, but may lose local Operational and Contract tailored services for control and public process Concern over lack ofCouncil may not be Engineering urban needs (ie., non- associated with key N/A No guarantee of staffing attention for city specific and County strategic. May have Services -Jefferson motorized). Still requires features like non -motorized given labor market problems decision misalignment Co. management. Reduction transportation. Also would between urban and in public process. rural goals. require contract manager(s). Saves Overhead. Page 4 of 7 Financial options with criteria-Taskforce Non -tax Page 5 of 7 Loss of local control and Savings undetermined. Not Operational and tailored services for likely a cost saving unless may not be Contract Planning Concern over lack of Services - Jefferson urban needs (ie., non- programs like historic N/A No guarantee of staffing attention for city specific Council and County strategic. May have motorized). Still requires preservation are given labor market decision misalighment Co. management. Reduction eliminated. problems between urban and in public process. Saves overhead rural goals. Operational and Contract Police Savings undetermined. Concern over lack of may not be Services -Jefferson Rural versus urban Requires analysis. Saves NSA No guarantee of staffing attention for city specific Council and County strategic. May have Co. policing overhead, equipment, and given labor market p roblems decision misalighment other potential efficiencies. between urban and rural goals. No savings determined. Current Structure Delamarter report, Would result in a (CLEO Cooperative revenue expense gap of Libraries of Eastern considered the est. $400k + annually Sustainable for the City Olympics) aligns the Contract Library annexation of PT Library Council and Services -Jefferson to Jefferson County based on taxing authority. NSA finances. May not be Maintains access for Jeffercon County needs of City and County Library Library Currently, no general fund sustainable for library everyone. Library decision County by working (November 2001) subsidy of the library. In services. together to make the future, may require seemless services for general fund contribution community due to inflation. May help with park Absent creating a metro Savings could result in no Maintains access for maintenance Contract Park parks district, could increase in operational Sustainable for the City everyone. Concern over Council and County deficiencies. Could Services -Jefferson create efficiency of costs. Assume $1 m per NSA finances. May not be the ability to build new decision expand recreational Co. sustainable for parks. service. year continues. parks as the city grows. programs with Jefferson Co. Housing Estimated market value = Council decision. Reduce remnant $2,000,000 based on Could be for affordable Neighborhood Seed fund or use for Sale of Land ownership potentially for estimated 20 lots with net No growth potential One time housing. concerns to be affordable housing housing value of $100,000 Equitable strategy considered. Page 5 of 7 Financial options with criteria-Taskforce Non -tax Page 6 of 7 Expansion of sewer for 100 acres existing Perceived gentrification housing and industry. industrial. Potential for High growth potentialwith with increase business Requires County and Potential UGA swap. utility tax, B&O, sales, and City Council 300 acres additional opportunity. Cost to run Glen Cove UGA - More efficient urban housing and light industry. Growth with time propert tax. Need business could increase approval. Requires Supports housing Expansion services based on Estimated annual $1 m in subarea plan to drive with urban services. Also UGA change and jobs existing development revenue growth over 20 density for most efficient opportunity for more approval by patterns and potential year period services. family wage jobs. Commerce. for infill. Ongoing annual revenue City intiated resulting from workforce Inflationary growth Continued development of Provides needed access Supports critical housing (Evans Provides housing housing = $15,000/yr for potential. Also there attainable housing is to attainable housing. Requires Council attainable housing required for a sustainable Need mix of housing. approval Vista) 150 units. Other non- one time tax revenue needs tangible community value community TBD Lowers tax burden on residents infrastructure. Est $330,000 per year for Infill Develompent We need 75 units per new revenue associated High level of sutainability if Strategy: Examples year on average going with construction sales tax housing is infill compared to Infill is equitable. Could Planning process, Critical need for include financial, forward plus 400 units and property tax. Also, Yes, depending on sprawl. Ongoing with new include program to requires Planning housing backlog marketing and right now because of there is a density tax density and local housing units. Will vary achieve attainable Commission and City needs, climate, and zoning policy, ie backlog of not enough a burden reduction of 20% capacity to build. with market conditions and housing needs. Council insfrastructure tactical infill units being constructed for 100 miles of water, funding. Need to address sustainability over the last 20 years. building cycle problem. (Current unit count per sewer, and streets. year is 50) Total gross commercial Cyclic based on economy. activity is $450 m for the However, on average very Possible new and city or $1.3 macre of Growth can occur sustainable based on WA Balancing good additional jobs. Makes commercial land space depending community State tax structure. Requires dedicated paying jobs with Support diverse use of commercially (325 acres). apetitie for increasing Commercial activity is what investment in community needs is Commercial zoned property. Vitality For Example Room to business activity and drives city revenue. Depends on job types economic the key strategy for Business Growth in commercial districts increase commercial workforce housing This includes professional development and commercial growth. supports better services. activity on land by 20% availability. services, trades, small housing (ie arts community) which generates $640k business, manufacturing, additional annual revenue. etc. Page 6 of 7 Financial options with criteria-Taskforce Non -tax Page 7 of 7 Tim7proveslevelof service Huge improvement in Zoning is the key Best return on High revenue potential for High growth potential equity in housing. Support Market and market rate apartments if MF development can Creates long term financial Apartments serve all driver for making investment is Multifamily Housing infrastructure due to due to utility tax, sales tax, be established as the sustainability for cities. people at different land available for apartment maximum density and property tax revenue. norm for unit creation. stages of life and don't aparments. complexes. - Strong opportunity. discriminate. Council decision Towns. Reduce or eliminate Helps with housing Not estimated yet. May Equitable use of the off-street parking density, increases cost of be a net zero if housing Depends on housing N/A right of way for housing Council decision Growth potentialfor density devleopment housing density requirements street maintenance density is achieved. purposes Goal to maximize development of new Inccrease attainability of revenue neutral ,but attainable units. We growth potential for 150% AMI Multi housing from 120% to transfers property tax costs need 80% of all new Makes housing available Marking and housing = > 1 176 Family Tax 150% o AMI qualified to rest of property tax units to be attainable N/A for more people. strategy eligilbe units out of Exemption Program households. base or affordable. development. 1448 units needed Based on Dept. of by 2044 Commerce 20 yr projection Page 7 of 7