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HomeMy WebLinkAbout050823 City Council Workshop with Financial Sustainability Task Force Meeting MinutesCITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL WORKSHOP MEETING OF MAY 8, 2023 CALL TO ORDER/ ROLL CALL The Port Townsend City Council met in a Regular Workshop Meeting and the Financial Sustainability Task Force met in a Special Session on 8th day of May 2023 in Council Chambers at 540 Water Street to have a Joint Council/Financial Sustainability Task Force Meeting. Mayor David Faber called the meeting to order at 6:04pm. Financial Sustainability Task Force members present were Rick Jahnke, John Nowak, Catharine Robinson, with Earll Murman absent. Councilmembers present at roll call were Aislinn Diamanti, David Faber, Monica MickHager, Owen Rowe, Libby Wennstrom, and Ben Thomas with Amy Howard excused. Staff members present were City Manager John Mauro, Planning and Community Development Director Emma Bolin , Public Works Director Steve King , Communications and Marketing Manager Shelly Leavens, Parks and Recreation Strategy Director Carrie Hite, Finance and Technology Service Director Connie Anderson , Chief of Police Tom Olson, and City Clerk Alyssa Rodrigues . GENERAL PUBLIC COMMENT (REGARDING ITEMS NOT ON THE AGENDA) There was no public comment. DISCUSSION ITEMS Workshop with Financial Sustainability Task Force City Manager John Mauro introduced the Options for Financial Sustainability City Council Work Shop. Finance and Technology Service Director Connie Anderson presented the Options for Financial Sustainability City Council Work Shop presentation which included Presentation Objective, Financial Sustainability Background, Financial Picture, Ending Cash Balance 10 Year Historical Cash Flow, and Ending Fund Balance 10 Year Financial Model. In response to Council/Taskforce clarifying questions Ms. Anderson confirmed the model is based off the same revenue and same operational expenses as in today's budget and it includes items that are already included and nothing new, she confirmed it presumes the sunsetting of utility tax and confirmed December 31, 2023 is the sunsetting date of utility tax. Ms. Anderson, Mr. Mauro, and Public Works Director Steve King continued with May 8, 2023 City Council Workshop Meeting with Financial Sustainability Task Force Meeting Page 1 of 3 presentation which included Level of Service and Level of service discussion In response to Council/Taskforce clarifying questions Mr. King confirmed the City would need to enhance services to improve streets and the cost being four or five times higher to fix a failed street than to fix it before it fails. Ms. Anderson continued with presentation which included Level of Service discussion Notes from Task Force Meeting 3. Discussion ensued around what enhanced services actually means and the relation to pictures in PPT, the difference between service and facilities, level of service discussion regarding pool, including language regarding restoring, and length of time. Ms. Anderson continued her presentation which included Efficiencies, Options for Financial Sustainability, Balancing options for financial sustainability and Proposed criteria for evaluating revenue options, General Purpose Tax Revenue Options with Preliminary Scoring, General Purpose Non -Tax Options with Preliminary Scoring, General Purpose Non -Tax Options cont. with Preliminary Scoring, and Transportation, Roads, and Trails Tax Revenue Options with Preliminary Scoring. In response to Council/Task Force clarifying questions Planning and Community Development Director Emma Bolin explained on-call services. Discussion ensued around the phrasing of equity and its intention. In response to Council/Taskforce clarifying questions Ms. Anderson explained the City used a basic scoring methodology where 1 is low and 5 is high and it was not weighted, she stated the BO tax brings in closer to $1 million. Mr. King stated Parking Fees could be a way to generate revenue and is a gross revenue estimate. Ms. Anderson confirmed Re -instate Fleet Replacement Reserves Option would require a Council decision. In response to Council/Taskforce clarifying questions Ms. Anderson confirmed only Port Townsend Residents would be affected by vehicle license tab. Ms. Hite explained the difference between Metropolitan Park District and Parks and Recreation Service Area, confirmed she will look into Public Facilities District sales tax voter approval to see if it is simple majority or 61 % approval, and stated in response to impact fees some Council's provide exemptions. Discussion ensued around impact fees and "workforce" housing term. Ms. Anderson continued with her presentation which included Housing Tax Revenue Options with Preliminary Scoring and Housing Non -Tax Options with Preliminary Scoring, Next Steps, and Questions/Feedback for all Teams. In response to Council/Taskforce clarifying question Ms. Bolin and Ms. Anderson explained the Development Service Fees. Mr. King confirmed you must get the UGA before Annexation, the process and stated the county benefits from increased commercial and industrial activity. Ms. Bolin explained perceived gentrification, Mr. King explained justified fees for responsibilities for vacant lots. In addition, Mr. King confirmed system development charges are the same for lots. Ms. Bolin stated she believes the 150% AMI Multifamily Tax Emption Program is for rental and ownership. May 8, 2023 City Council Workshop Meeting with Financial Sustainability Task Force Meeting Page 2 of 3 Public Comment: Scott Walker spoke about selling Right of Way to adjacent property owners at bluff ends in old central Port of Port Townsend, charge for utilities by undeveloped land whether connected or not, utility tax being inequitable, managed parking estimates being low, managed parking and taxing others, and reduced run off from reduced impervious services. Council and Task Force discussed B&O tax increase, B&O tax comparison with other cities, B&O tax and small businesses, funding strategies between comparable cities, Financial Sustainability Task Force discussions, being mindful about equity, majority of revenue coming from commercial, physical location vs. delivery of goods sales tax, educational video concept and engagement, financial bucket concept, information regarding percentage of taxes to the City, basic concept financial PowerPoints, added costs to projects, increasing minimum zone density requirements and buy down with impact fees, the need for people to build by decreasing costs and increasing market capacity, lack of predictability, density examples, infill potential and analysis, rezoning, maximum lot sizes, housing roadmap, and demographic shift and climate change. ADJOURN There being no further business, the meeting adjourned at 8:34pm, Attest: Alyssa Rodrigues City Clerk May 8, 2023 City Council Workshop Meeting with Financial Sustainability Task Force Meeting Page 3 of 3