HomeMy WebLinkAbout03-23-2015 TRANSPORTATION BENEFIT DISTRICT BOARD AGENDAA N-nr or �� •
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WASH I NG"I'ON
CALL TO ORDER
II. ACTION
Auburn Transportation Benefit
District
March 23, 2015 - 4:00 PM
Council Chambers
AGENDA
A. 2014 Annual Report* (Snyder)
Transportation Benefit District Board to approve the 2014 Annual Report
III. DISCUSSION ITEMS
A. Discussion and Possible Direction on Board Preference(s) for Funding
Alternatives Authorized under Chapter 36.73 RCW (Transportation Benefit
Districts) and Chapter 3.23 (Transportation Benefit Districts) of the Auburn
City Code* (Snyder)
IV. ADJOURNMENT
Agendas and minutes are available to the public at the City Clerk's Office, on the City
website (http: / /www.auburnwa.gov), and via e -mail. Complete agenda packets are
available for review at the City Clerk's Office.
*Denotes attachments included in the agenda packet.
Page 1 of 25
C -M OF
AUBURN
WASH E NG1'( -)N
AGENDA BILL APPROVAL FORM
Agenda Subject: Date:
2014 Annual Report March 17, 2015
Department: Attachments: Budget Impact:
Public Works cover Memo $0
Annual Report
Administrative Recommendation:
The Board approve the 2014 Annual Report required pursuant to RCW 36.73.160.
Background Summary:
Reviewed by Council Committees:
Councilmember: Staff: Snyder
Meeting Date: March 23, 2015 Item Number: ACT.A
ACT.A AUBURN * MORE THAN YOU IMAGINED Page 2 of 25
Memorandum
DATE: March 18, 2015
TO: Nancy Backus, Board Chairperson
Board of Directors of the Auburn Transportation Benefit District
FROM: Kevin Snyder, AICP, Director, Auburn Community Development and Public
Works
CC: Shelley Coleman, Treasurer /Auburn Finance Director
Dan Held, Legal Advisor /Auburn City Attorney
Dam Daskam, Clerk of the Board/Auburn City Clerk
Ingrid Gaub, PE, City Engineer /Assistant Director, Auburn
Engineering Services
Randy Bailey, Assistant Director, Auburn Maintenance & Operations Services
SUBJECT: March 23, 2015 Transportation Benefit District Board Meeting
The Auburn Transportation Benefit District Board is scheduled to meet on Monday, March
23, 2015, 4:00 p.m. to 5:00 p.m., City Council Chambers of Auburn City Hall, 25 West
Main Street, Auburn, WA 98001. The agenda items for the meeting are:
1. Board approval of 2014 Annual Report required pursuant to RCW 36.73.160.
2. Discussion and possible direction on Board preference (s) for funding alternatives
authorized under Chapter 36.73 (Transportation Benefit Districts) and Chapter 3.23
(Transportation Benefit Districts of the Auburn City Code.
For the first agenda item, the Board will be asked to take positive motion action to accept the
2014 Annual Report. For the second agenda item, there is no official action required of the
Board. Rather, Board consensus will be sought on one or more potential funding alternatives for
additional review and possible future action consideration by the Board.
Please find attached the following attachments for the Board's review prior to the March
23rd meeting:
Attachment 1: 2014 Annual Report
Attachment 2: March 18, 2015 Transportation Benefit District (TBD) Funding Options
Memorandum from Shelley Coleman, TBD Treasurer /Auburn Finance
Director
Attachment 3: March 23, 2015 Transportation Benefit Districts (TBD) — Statutory Overview
& Funding Alternatives Discussion
ACT.A Page 3 of 25
ATTACHMENT 1
AUBURN TRANSPORTATION BENEFIT DISTRICT
2014 ANNUAL REPORT
(RCW 36.73.160.2)
DATED MARCH 23, 2015
Pursuant to RCW 36.73.120, the Auburn Transportation Benefit District shall issue an annual
report, indicating the status of transportation improvement costs, transportation improvement
expenditures, revenues, and construction schedules, to the public and to newspapers of record in
the district.
The Auburn Transportation Benefit District was formed on September 19, 2011 with the passage
of Ordinance No. 6377 by the Auburn City Council. The Auburn Transportation Benefit District
was established in accordance with the statutory provisions of RCW 36.73 (Transportation
Benefit Districts). Subsequent to its formation the Auburn Transportation Benefit District Board
has not, through its own authority or through voter approval, implemented a funding
mechanism(s) to make or fund transportation improvements necessitated by economic
development and to improve the performance of the transportation system within the geographic
boundaries of the District.
Therefore, at this time, the Auburn Transportation Benefit District does not have any substantive
report for the status of transportation improvement costs, transportation improvement
expenditures, revenues and construction schedules.
Following Board acceptance of this Annual Report, it shall be made available to the public and
to newspapers of record within the District.
ACT.A Page 4 of 25
C -M OF
AUBURN
AGENDA BILL APPROVAL FORM
Agenda Subject:
Discussion and Possible Direction on Board Preference(s) for
Funding Alternatives Authorized under Chapter 36.73 RCW
(Transportation Benefit Districts) and Chapter 3.23 (Transportation
Benefit Districts) of the Auburn City Code
Date:
March 17, 2015
Department: Attachments: Budget
Public Works TBD Funding OpticnsMemo from Director Coleman Impact:
PowerNint $0
Administrative Recommendation:
Background Summary:
Reviewed by Council Committees:
Councilmember: Staff: Snyder
Meeting Date: March 23, 2015 Item Number: DI.A
DI.A AUBURN * MORE THAN YOU IMAGINED Page 5 of 25
CITY OF *
AtjBijiK Finance Department
WASHINGTON Memorandum
ATTACHMENT 2
To: Nancy Backus, Board Chairperson, Auburn Transportation Benefit District
From: Shelley Coleman, TBD Treasurer /Auburn Finance Director
Date: March 18, 2015
Re: Transportation Benefit District (TBD) Funding Options
The City formed a TBD in September 2011. To date there have been no revenues collected. There
are several revenue options available under the law, most requiring voter approval:
• Excess Property tax levy for one year to fund operations or multiple years to repay long
terms bonds issued to fund capital projects;
• Sales and Use Tax levy -up to two - tenths of one percent (.002) or $.002 on the selling price of
taxable items within the TBD;
• Vehicle License fees may be increased from a maximum of $20 to $100 with voter approval;
and
• Tolls maybe imposed with voter approval on streets within the TBD boundaries, subject to
approval by the tolling authority, the State Transportation Commission, for city streets.
There are a few revenue options that do not require voter approval:
• Vehicle license fees up to a maximum of $20 per vehicle;
• Impact fees, however they must be credited against any impact fees imposed by the City;
• Local Improvement District (LID) assessments. The City may impose a special benefit
assessments for LID's via the petition method
Funds can only be used on 'transportation improvements' per RCW 36.75.015 and the
improvements must be included in the regional plan. To meet the regional plan requirement, the
Page 1 of 2
DI.A AUBURN MORE THAN YOU IMAGII *e 6 of 25
City files its six -year Transportation Improvement Plan (TIP) with Puget Sound Regional Council
(PSRC) who incorporates the City's TIP with their regional plan.
Also, the improvements must be performed on arterial streets or streets of major significance.
Below is a matrix showing funding options. (The LID assessment is not included here but would
follow the same process as any LID formed by the City.)
Page 2 of 2
DI.A AUBURN* MORE THAN YOU IMAGIIge 7 of 25
$20 -$100 License
Fee
.2% Sal es & Use
Tax
Ad Valorem
Property Taxes
in Excess of the
1% Limik
Ad Valorum Property
Tax to Retire GO Bonds
Issued for Capital
Purposes Only.
Commercial
Construction Fees
Road Tol Is
Levied for the amount
Impose fees on
Each additional
Estimated Annual Revenues
$700k -$3.5M
$3.7M
0
1% generates
of the debt service
building
Impose a toll,
$172k.
annually until debt is
construction or
retired.
land development.
Voter Approval
No and Yes
Yes
Yes
Yes
Yes
Yes
Taxes, fees, charges, some
Fees up to $20 per
Based on 2614
Can exceed the
Voted Go Bonds, with
Fees and charges
Collection
vehicles licensing fees, and
tab do not require
taxable retail
1% limit for a
maturities not
would be net of
dependent on
tolls require approval by a
voter approval;
sales in the City
one year period.
exceeding 40 years.
any transportation
District voter
majority of voters in the
Fees $21 -$100
of $1.83B.
Amount of
impactfee
approval.
District, voting on a
per tab do require
indebtedness: non voter
imposed by a city
proposition, at a general or
voter approval.
approved up to 1.5 %of
or county.
special election. All
AV ($123M) or 5% of AV
propositions must include
($410,0D0,000).
specific description of the
improvement(s).
Authorizing RCW
36.73.D65
36.73.D40
36.73.060
36.73.060 -.070
36.73.120
36.73.065
Page 2 of 2
DI.A AUBURN* MORE THAN YOU IMAGIIge 7 of 25
ATTACHMENT 3
Auburn Transportation Benefit District Meeting
March 23, 2015
Transportation Benefit Districts
(TBD) - Statutory Overview &
Funding Alternatives Discussion
Fast Facts:
Transportation Benefit Districts authorized by
Washington State Legislature in zoos (RCW 36.73)
6o Transportation Benefits Districts established statewide
between zoos and 2014:
57 cities
3 counties
Between zoos and 2Oo8, the following funding efforts
have occurred:
35 TBDs have imposed $20.00 vehicle license fee
1 TBD has imposed a slo.00 vehicle license fee (Burien)
14 TBDs have obtained voter approval of a sales tax
DLA Page 9 of 25
36.73 Mane
p0rta •
ton Benefit CW36- 73.010 •
icts
)
(intent): pistr
The legislature finds
gublic and that the citizens of
e private sectors � the sta
fostered throe h e rs �n addressin tra to can benefit b co
fund transportation enhanced capability nsportation needs. °perpera of the
improve the portation improveme for cities This cooperation
improvements necessitated b' town and counties to 1On can
legislature tpe�ormance of the transportation eCOno make
encourage ansp0rtation s mac deVe►0 and
private sector to reS ge.lO1nt efforts b the Ystem. It is the intent and to
state high�,ays co pond to the need fo state, local governments/ of the
allowing county roads those trans nments/ and the
g cities, towns , and city streets This portat;on irn
order to respond and counties to establish goal can be better achieve on
resulting from the specialtran I'sh better achieved
seeks in to facilitate private sector al transportation need benefit districts by
acilitate the equitable for the and economic 0 cts �n
developments ma quitable partici a Pub,,
c good T Opportunities
costs. y generate the need p t1On °f private developers legislature also
for el
those improvements °pers whose
DVA P ments in the improvement
p vement
Page 10 of 25
arspoCtd�,. -- o,� t�G OX
p . ,.-fir fan tour y t Tray
y...el ��� , at'or p city, r O�e ec . `carte
015 s °�' ate °r � 21. P p ref6.13 e tr ay p an�Z .02o� �c� 3 �n th ' r °r g 6 �13 tate� .
gyred �arr� g CW 3 s o{ s ac�t11 on
cotta t�or p . • d �r R hv� all h cap ortat� Ong
orta ert�f �e hag ce hag ansp
transp as �d eX�st�ng • �f�car ther tr arce he
. d;ct�on e� or a� sign . and 0 . r�f�c c��de t
• �r�s t �r n e nor anon, ode s '� Aso �r
trren s oj r g ort tat, a s or
• ry es ter �a� tr arse � or s cts r� y • ��t�es
� a\ ar �b�\c Bona rode iac�
r�nc`p ' or p of reg ert. P these
p ortat� arts a e'm ce of
arse r ° gr rrar g teran
tr s and p and ,main o{ 25
roject � °n deCn and page �1
p ortat� r� anon
tr ansp . r ese
anon, p
open
° ra, \*"
pr g
0\.N
RCW 36-73.020(:L): TBDs can acquire, construct, improve, provide and fund
transportation improvements within the District that are consistent with
existing state, regional or local transportation plans and necessitated by existing
or reasonably foreseeable congestion levels .... To extent practicable, TBDs shall
consider the following criteria when selecting transportation improvements:
Reduced risk of transportation facility failure and improved safety
Improved travel time
Improved air quality
Increases in daily and peak period trip capacity
Improved modal connectivity
Improved freight mobility
Cost - effectiveness of the investment
Optimal performance of the system through time
Improved accessibility for or other benefits to persons with special
transportation needs
Other criteria established by governing body
DLA Page 12 of 25
me
General:
Must be established by the legislative authority of a city or
county
Members of the establishing legislative body = governing
body of TB D
Quasi - municipal corporation
Independent Taxing Authority — Article VII, Section 1, State
Constitution
Taxing District — Article II, Section 1, State Constitution
Page 13 of 25
Cor'P °rate of pkjb"lc'P tat�te es
P11 po`N a1�y �onferredby es� Staff and Servic
Spec�f1�
\oye
�thority to hire e'�'p ropert`I
P ter lnto cOntra�t5 rea, and persona, p
En of t
Hold and d�sp�se 1"p ercen
d be sped taX �n eX�esso°v d y p; strict
See an Pert"y hen appr
`evy ad valorem qvo
ar period `N Page A4 of 25
tion {Or 1y
1�m�ta
voters
00.
Provide for retirement
�SSUed for ►rement ° f voter -a
rcap►tal Of pprOVedgenera► o .
valorem property only — b lev bl�gat ;on bo
authorized p tY tax levies ; Y y'ng bond retirement nds —
by pistrict voters n eXCeSS of 1 Percent ad
If approved b
ent /�mitat ;on if
approved majority of District ed taxes ict voters, impose fees, charges pOSe or in
District t g and to/is crease alread
that Incorporate Y
impose b p to all of the boundaries within
voter approval, governing b °d n a jurisdiction
body following may
Up to a$20 vAhc, ►� g wITH�UT
Fee or char � (K(- W 36.73.o6S)
Dl.q charge on building constructi
on or land development
(RCw36.73.i20)
Page 15 of 25
orate r" " ee rebate vi - � exceed are °'` ob��gat�U� I erty `,I
Cor'P h�c�e f r�otto enera �e prop
;sr a ve bonds roped g { taXab
EStabv at\ °r' ter app valve °
eras obi g none° t of the er
ve gen tand�ng ercen 65 -0 th
�s5 her ovt5 a� t° 1.5 p 46 �� °n
BM of ess eav RCw 3g .
d
ebtedn ce `Nth
�� ;strict accordar' �on>
the p onas \\ e `stmt
v
enve b . �°nS -R g
�ssve re ovs Prove ;strict t�on5
. ce��ane gent d d dona
Mss `r,�pro�e rants an
a �oca� 4gs 6 ofi Form endjvse Page 1
t and eXp ;n eats
Accep t dox, `N
em�nen hay � p
Exercise fior scr ee t and
D \.P COOVac t hag
Established with passage of Ordinance No. 6377 by Auburn
City Council on5eptember1q, 2011:
District encompasses corporate boundaries of City of
Auburn
Governing Board of Auburn TBD = Auburn City Council
Meetings of TBD governed by procedural rules applicable
to Auburn City Council
Mayor is Chairperson of Auburn TBD
Auburn City Attorney is Legal Advisor to Auburn TBD
Auburn Finance Director is Treasurer for the Auburn TBD
DLA Auburn City Clerk is Clerk to the Board Page 17 of 25
�� ' •�� 3•z3.0
.....The trans 40):
be made in pO�ation improve
its in frastru
structure to 'gents funded b
Protect the ��t � Y the
failure to reduce Y s long-term d Strict shall
e, to improve the risk of invest
infrastructure ov Safety, to �ont�n� transpo�ation facility
in
replacement time, to avoid e Optima/ cility
ments in the to more ex pens of
within the Cit e and to improve Pensive infrastructure
he
Y °f Auburn.,,
Dissolutio model connectivity
Auto n of p�strict () CC3 23.0 0 .
eti�- 'eallydissolve n 51•
been r d when
have d and all of the all Indebtedness of
been satisfied, district s antic i the distric
gated t has
responsibilities
Page 18 of 25
d proceea,, I% j
Aube act ;ons an
Charter govern the
Charter g dude' d rocedures
;��es of Boar ►n rarr,s an p
Art n-�gD � . 1es� prog d p;str►ct
ur
s of Aub istrict p° ►c - r ers °n) an
Power �er�1ent � Xcept Cha► p
lisp and ►'mp °i{ ;cers Ce
Estab ve Board
0
Dint and rem eats
App ees and ag debtedness
e,�'pl °Y d incur ►n s
money an . tract fund
Borrow tment of D►s
vide for ►Hues res ;dents
P r° Comr�nittees to � c►tY
sh Board _limited page 1,90125
Estab�► o,mrn►ttees
dv isorY C State \ aw
Cr e ate A ste nt `N ►th
o�ers cons►
pI.A
Other p
.e
Save Our Streets (SOS) Program:
Focused on crack sealing, asphalt patching, pre - leveling, asphalt overlays and
reconstruction of local (unclassified) City streets
$2.6 million in 2015
s1.6 million in 2016
Funded from combination of Construction Sales Tax and other city funds
Arterial Street Preservation Program:
Focused on regular pavement maintenance and /or rehabilitation of classified City
streets —overlays, rebuilds, spot repairs
61.96 million in 2015
$2.7 million in 2016
Funded from 1% utility tax adopted in 2008 and Street Preservation Funds
Important Point: To fully address short -term and long -term street
maintenance and operation needs within the TBD boundary, s5 -6 million
annually is needed.
Page 20 of 25
Potential Implementation Options— Raising and Investment
of Funds:
Raising of Funds:
Board Action Only (No Voter Approval):
$20.00 Vehicle License Fee
Fee or charge on building construction or land development
Vote r Ap p rova l :
Sales Tax
General Obligation Bonds
Revenue Bonds
DI.A Local Improvement District
Page 21 of 25
.%P p 3�.� j.W-- .,tarin a��,.,. tares a�,,,. $2 °$ a,,u °ftax
R d use n to any other nder chapters The rate
in
the provisions ales an
to . m °seas addit,o e state v f the 61 of a sales taXI or is
is in xable by th o�ndarie5 ° of
S�blect a j-1)(306 � . section the case Lion �2i °f th
6.73 RCw m y1 -el this wh° are to within the b 'n Pace �n din ....,,e
-36-73 i f not
3 author ose persons event t of the self gas provide This Earl � r a period
e tar
Th cted from th ce of any ,,),,\)\e one Percen tar. EXcept . n ten years' eXtended fo
cone he °cc�rren of se ceed� g be the election.
on t d fw ° "tenthsthe case °f a v eriod eX • secti °n' may
up of eXcee , �sed� ,n osed for a P of this tern voting at maybe
shall n the articke not be ►,p subsection �2) e of the v° 201
0
vai�e Of a ta'y' may itions °f su • ,five vot after 1U1y . are
er the c°nd ith an a, der this section this section
secfionI the er 1re'ments of
osed end ten years imposed Un ece�ved end \th the regv
,mP eXceed'�ng tax initially the moneys r ccordance w
no sales ears ,f
-a pr °red ten y ss incurred �n a dance with
2 The voter p exceeding ebtedne actor
or a period ent of Ind ent in
osed f repaym 1On mist be ape 22 0125
�fnp r the nder this sect page
dedicated f° RCS' ed �
chapter 36.73 the tax impos
received from r 6 73 RCVV .
�3� M °ney is of chapte 3
eCkW,emen
t
Potential Implementation Options - Raising and Investment
of Funds (Continued):
Most jurisdictions = $20.00 Vehicle License Fee
Treasurer - $87S,000 (est.) raised with Board approval of $20.00
Vehicle License Fee
Sales and Use Tax Option:
Treasurer — Up to $3.7 million es
Sales a C t.) raised with voter approval o
and Use Tax PP of a .2 /0
Important Point —This approach "
residents. pp captures" more than just Aubur
... non - residents who use Auburn streets n
pay for their improvement o would also help to
DI.A
peration and maintenance.
Page 23 of 25
_..ease in
Sales and �Se taX
in" ``"� with an orts for gossil0e dealing
rushed e are Should nit be t the f act
Hare to a�cep .eat _ raising a t hat they are ge*lting
unpop�lar d to understand Se tax increase
Citizens ne
to a sales and inforrr'ation effO��
for agreeing education)
public versations
on..golny ears of public ��n vired Board or the
y for discuss and theTBD
Mukt:jqkei0flIfnS
� eeded.-be ll
�� �harnp Page 24 of 25
p,tulbufO City cokjf16
0I.PP
End ol Presentation
p\.P,
Page 25 of 25