HomeMy WebLinkAbout03-18-2019 AgendaAuburn Transportation Benefit District
March 18, 2019 - 6:00 P M
Council Chambers - City Hall
A GE NDA
I .C AL L T O O RD E R
A .Roll Call
I I .C O NS E NT AG E ND A
All matters listed on the Consent Agenda are considered by the City Council to be
routine and will be enacted by one motion in the form listed.
A .Minutes of the March 5, 2018 Transportation Benefit District
Meeting
I I I .AC T IO N
A .B enefit District Options
I V.RE S O L UT IO NS
A .Resolution No. 2019-01 - 2018 Annual Report
A Resolution of the A uburn Transportation B enefit District adopting the 2018 Annual
Report
V.AD J O URNM E NT
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.
Page 1 of 25
AGENDA BILL APPROVAL FORM
Agenda Subject:
Minutes of the March 5, 2018 Trans portation Benefit Dis tric t Meeting
Date:
March 10, 2019
Department:
Adminis tration
Attachments:
03-05-2018 Minutes
Budget Impact:
Current Budget: $0
Proposed Revis ion: $0
Revis ed Budget: $0
Adminis trative Rec ommendation:
Background Summary:
Reviewed by Counc il Committees :
Counc ilmember:Staff:
Meeting Date:March 18, 2019 Item Number:CA.A
Page 2 of 25
Auburn Transportation Benefit District
March 5, 2018 - 6:30 P M
Auburn City Hall
MINUT E S
I .C AL L T O O RD E R
A .Roll Call
B oard Chairperson Nancy B ackus called the special meeting to order at
6:30 p.m. B oard Members present: B ob B aggett, L arry B rown, Claude
DaCorsi, J ohn Holman and Yolanda Trout-Manuel. Board Members Bill
P eloza and L argo Wales were excused.
City of Auburn department directors and staff members present included:
City A ttorney Daniel B. Heid, Assistant Director of Engineering
S ervices/City E ngineer I ngrid G aub, F inance Director S helley Coleman,
A ssistant P ublic Works Director Randy B ailey, Police Commander Mike
Hirman, and City Clerk Danielle Daskam.
I I .C O NS E NT AG E ND A
All matters listed on the Consent Agenda are considered by the City Council to be
routine and will be enacted by one motion in the form listed.
A .Minutes of the S eptember 18, 2017 S pecial Meeting
Member DaCorsi moved and Member Trout-Manuel seconded to approve
the Consent Agenda.
MO T I O N C A R R I E D UNA NI MO US LY. 5-0
I I I .RE S O L UT IO NS
A .Resolution No. 2018-01
A Resolution of the A uburn Transportation B enefit District adopting the 2017 Annual
Report
A uburn A ssistant D irector of E ngineering S ervices/City E ngineer Gaub
presented R esolution No. 2018-01 adopting the 2017 A nnual R eport for
the Auburn Transportation Benefit District. T he B oard has not enacted a
fee or tax authorized pursuant to R C W 36.74, and since there was no
funding source in place, the D istrict does not have any substantive report
for the calendar year 2017 for the status of transportation improvement
costs, transportation, improvement expenditures, revenues and
construction schedules.
Page 1 of 2Page 3 of 25
Member Holman moved and Member B aggett seconded to adopt
Resolution No. 2018-01.
MO T I O N C A R R I E D UNA NI MO US LY. 5-0
I V.AD J O URNM E NT
There being no further business to come before the B oard, the meeting
adjourned at 6:36 p.m.
A P P R O V E D the _____ day of ______________________, 2019.
_________________________ __________________________
NA NC Y B A C K US , C HA I R Clerk of the Board
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.
Page 2 of 2Page 4 of 25
AGENDA BILL APPROVAL FORM
Agenda Subject:
Benefit District Options
Date:
March 1, 2019
Department:
Finance
Attachments:
TBD Options
TBD Lis t
Budget Impact:
Administrativ e Recommendation:
Background Summary:
This presentation will review options for the Transportation Benefit District (TBD) including:
Revenue options and capacity available to the TBD which include: car tab fees; excess
property tax and sales tax levies; and voted bonds;
Also to be discussed is the assumption of the TBD’s rights, powers, functions and obligations
by the City. We will review the process required by State law for the assumption.
Finally, when and how a TBD is dissolved.
Attached is a list of over 100 TBD’s in the state noting whether their powers have been
assumed, revenues, or not, in place to fund the TBD and other notations.
Rev iewed by Council Committees:
Councilmember:Staff:Coleman
Meeting Date:March 18, 2019 Item Number:ACT.A
Page 5 of 25
Transportation Benefit
District (TBD)
Page 6 of 25
Agenda
Review Revenue Options Provided by the
TBD Legislation.
Discuss Assumption of the TBD by the City.
Dissolution of the TBD.
Page 7 of 25
Revenue Options
Source Via Potential $
Car tab fees B $20/license 900,000$
Car tab fees B $40/license 1,800,000
Car tab fees B $50/license 2,250,000
Car tab fees V $50/license 2,250,000
One year excess levy V TBD TBD
Sales tax V 0.20%4,200,000
GO Bonds B 1.5%171,000,000
GO Bonds V 5%570,000,000 *
B=Board authorized
V=Voted
*=5% includes the 1.5% of Board capactiy
Transportation Benefit District (TBD) Revenue Options
Page 8 of 25
Other Revenue Options
(Not so practical for Auburn)
Commercial Construction Fees.
Similar to a transportation impact fee (TIF)
and would be net of any existing TIF’s.
Road Tolls.
Page 9 of 25
TBD Revenue Authority
$20-$100 License
Fee
.2% Sales & Use
Tax
Ad Valorem
Property Taxes
in Excess of the
1% Limit
Ad Valorem Property
Tax to Retire GO Bonds
Issued for Capital
Purposes Only.
Estimated Annual Revenues $900k - $4.5M $4.3M
Each additional
1% generates
$220k.
Levied for the amount
of the debt service
annually until debt is
retired.
Voter Approval No and Yes Yes Yes Yes
Taxes, fees, charges, some
vehicles licensing fees, and
tolls require approval by a
majority of voters in the
District, voting on a
proposition, at a general or
special election. All
propositions must include
specific description of the
improvement(s).
Fees up to $20 per
tab do not require
voter approval;
Additional $20 fee
may be imple-
mented after 24
months; another
$10 after another
24 months;
subject to Ref.
Tab fees >$50-
$100 do require
voter approval.
Based on 2018
taxable retail
sales in the City
of $2.14B.
Can exceed the
1% limit for a
one year period.
Voted GO Bonds, with
maturities not
exceeding 40 years.
Amount of
indebtedness: non voter
approved up to 1.5% of
AV ($171M) or 5% of AV
($570M).
Authorizing RCW 36.73.040 36.73.060 36.73.060-.070Page 10 of 25
To Assume or not to
Assume
Page 11 of 25
Assumption of TBD into the City
The 2015 Legislature changed the law where the TBD may be absorbed by
a city.
The TBD must have the same boundaries as the city;
The city would assume all the TBD’s rights, powers, functions, and obligations;
The TBD would cease to exist as a separate entity.
As of December 2018 about three quarters of the TBD’s in the State have
been assumed by their cities. Page 12 of 25
Steps to Assumption by the City
Passage of a resolution or ordinance indicating the intention to hold a
public hearing on the proposed assumption of the rights, powers,
functions, and obligations of the TBD, and setting the time and place of
the hearing.
After the hearing, the legislative authority determines that “public interest
or welfare would be satisfied” by the assumption of the TBD, it passes an
ordinance or resolution assuming the rights, powers, functions, and
obligations of the TBD.
A final annual financial report is required for the final year of existence
Auburn has had no activity therefore the final report would be unnecessary if
the Auburn TBD continues to have no revenue or expenditures. Page 13 of 25
Pro/Con Analysis of Assumption
Pro Con
1.No longer a legal separate entity
requiring a separate financial report
and audit. Activities would be
included in the City's budget and
annual financial statements.
1.Lose the 5% bond capacity
provided to a TBD that is a legal
separate entity.
2.Revenue options remain.
3.May use City's unused debt capacity:
$231M.
Page 14 of 25
Debt Capacity Comparison
1.50%170,925,000 Councilmanic capacity
1.00%113,950,000 Additional capactiy w/vote
2.50%284,875,000$ Total Limit
54,200,000$ Current oustanding debt
116,725,000$ Councilmanic capacity
113,950,000 Additional capacity w/vote
230,675,000$ Legal debt limit
TBD Under the City
1.50%170,925,000 Board capacity
3.50%398,825,000 Additional capacity w/vote
5.00%569,750,000$ Legal debt limit for TBD
TBD Stand Alone
Page 15 of 25
Dissolution of the TBD
Page 16 of 25
TBD Dissolution
A TBD must end its operations within 30 days of the specified project(s) completion.
A TBD may continue to collect revenue to service debt after project completion.
A TBD must be completely dissolved within 30 days after the financing or debt is paid off.
Dissolution is by ordinance.
Page 17 of 25
Questions?
Page 18 of 25
Page 19 of 25
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Page 21 of 25
AGENDA BILL APPROVAL FORM
Agenda Subject:
Resolution No. 2019-01 - 2018 Annual Report
Date:
March 10, 2019
Department:
Public Works
Attachments:
Res olution 2019-01
Exhibit A
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrativ e Recommendation:
Transportation Benefit District to adopt the 2018 Annual Report
Background Summary:
Subsection 2 of RCW 36.73.160 (Transportation improvement projects – Material change
policy-Annual report) specifies that a 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.
Rev iewed by Council Committees:
Councilmember:Staff:Gaub
Meeting Date:March 18, 2019 Item Number:RES.A
Page 22 of 25
--------------------------------
Resolution No. 2019-01
February 4, 2019
Page 1 of 2 Rev. 2018
RESOLUTION NO. 2019-01
A RESOLUTION OF THE AUBURN TRANSPORTATION
BENEFIT DISTRICT ADOPTING THE 2018 ANNUAL
REPORT
WHEREAS, RCW 36.73.160(2) requires the District to 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.
NOW, THEREFORE, THE BOARD OF THE AUBURN TRANSPORTATION
BENEFIT DISTRICT RESOLVES as follows:
Section 1. The Board accepts the report attached as Exhibit A as its 2018
Annual Report.
Section 2. The Board Chairperson is authorized to issue the Report, and to
implement those administrative procedures necessary to carry out the directives of this
legislation.
Page 23 of 25
--------------------------------
Resolution No. 2019-01
February 4, 2019
Page 2 of 2 Rev. 2018
Section 3. This Resolution will take effect and be in full force on passage and
signatures.
Dated and Signed this _____ day of _________________, 2019.
CITY OF AUBURN
____________________________
NANCY BACKUS, BOARD CHAIR
ATTEST:
____________________________
Shawn Campbell, MMC, Clerk of the
District
APPROVED AS TO FORM:
____________________________
Steven L. Gross, District Legal Counsel
Page 24 of 25
Resolution 2019-01
Exhibit A
AUBURN TRANSPORTATION BENEFIT DISTRICT
2018 ANNUAL REPORT
(RCW 36.73.160.2)
DATED JANUARY 22, 2019
Pursuant to RCW 36.73.160.2, 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.
Subsequent to the formation of the Auburn Transportation Benefit District and prior to
December 2018, the Auburn Transportation Benefit District Board had not completed the
process to enact a fee or tax authorized pursuant to RCW 36.74 (Transportation Benefit
Districts). Therefore, and because throughout 2018 there was no funding source in place,
the Auburn Transportation Benefit District does not have any substantive report for the
calendar year 2018 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.
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