HomeMy WebLinkAbout04-24-2017 Special City Council Ad Hoc Committee MeetingSpecial City Council Meeting
April 24, 2017 - 4:00 PM
$20 Car Tab Fee Ad Hoc - City Hall
AGENDA
I. CALL TO ORDER
II. CONSENT AGENDA
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 April 3, 2017 Ad Hoc Committee Meeting*
III. DISCUSSION ITEMS
A. Full Spectrum of Issues Regarding the $20 Car Tab Fee*
B. Future Meetings
The next special meeting is scheduled for May 1, 2017 at 6:00 p.m.
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.
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Minutes of the April 3, 2017 Ad Hoc Committee Meeting
Date:
April 17, 2017
Department:
Administration
Attachments:
4-3-2017 Minutes
Budget Impact:
$0
Administrative Recommendation:
Background Summary:
Reviewed by Council Committees:
Councilmember: Staff:
Meeting Date:April 24, 2017 Item Number:CA.A
AUBURN * MORE THAN YOU IMAGINEDCA.A Page 2 of 26
Page 1
CAR TAB AD HOC COMMITTEE
MEETING MINUTES
April 3, 2017 6:00 PM
I. CALL TO ORDER
Deputy Mayor Wales called the meeting to order at 6:01 p.m. in the Council
Chambers, Auburn City Hall.
A. Roll Call
Ad hoc Committee members present: Deputy Mayor Largo Wales,
ex officio; Bill Peloza, Claude DaCorsi, and Bob Baggett
Mayor Nancy Backus and Councilmember John Holman were in
attendance, and the following department directors and staff
members were present: City Attorney Dan Heid, Assistant Director
of Engineering Services/City Engineer Ingrid Gaub, Community
Development and Public Works Director Kevin Snyder, Finance
Director Shelley Coleman, and Deputy City Clerk Shawn Campbell.
II. COUNCIL AD HOC COMMITTEE ACTION ITEMS
A. Selection of Chair
Councilmember Peloza moved and Councilmember Baggett seconded to
nominate Deputy Mayor Wales at the ad hoc committee chair.
MOTION CARRIED UNANIMOUSLY. 4-0
B. Schedule Future Meetings
The Committee discussed the frequency of meetings. It was decided the
ad hoc committee needs to meet at least twice a month. The next two
meetings will be Monday April 24, 2017 at 4:00 p.m. and Monday May 1,
2017 at 6:00 p.m.
The Committee requested Director of Administration Dana Hinman,
Finance Director Shelley Coleman, Community Development Director
CA.A Page 3 of 26
City of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 3, 2017
Page 2
Kevin Snyder and Assistant Director of Engineering Services/City
Engineer Ingrid Gaub attend the meetings.
III. COUNCIL AD HOC COMMITTEE DISCUSSION ITEMS
A. Discussion of the Full Spectrum of Issues Regarding the $20
Car Tab Fee
Assistant Director Gaub reviewed the project that was proposed to be
funded in 2017 from the Transportation Benefit District funding. She
stated that the additional work to overlay from 45th to 277th that was to be
included in the B Street NW Reconstruction project has been removed
from the scope so that the reconstruction work may continue. The funding
gap for the arterial/collector pavement preservation program is
approximately $5 million annually. The car tab fee was only one revenue
stream identified in previous discussions with the Transportation Benefit
District Board.
Councilmember DaCorsi stated since the funding gap is larger than the
$800,000 proposed to be generated from the car tab fee the ad hoc
committee needs to look at the issue in an overall sense to secure the
funding to maintain the roads, including the proposed 0.2% sales tax
increase. The City may need to look at additional sources of funding for
street preservation. The funds from the State of Washington may be not
be available in the future, or different funds available may be available.
Director Snyder explained if maintenance is deferred the streets will
continue to degrade and then the repairs will be more significant and
impact quality of life and economic development in the City.
Director Coleman explained the City has funding streams and reserve
funds that fund programs and operations. The reserve funds are one time
funds that will not be replaced once they have been spent. Funding for
road maintenance is an unmet need. The City will need to find a funding
stream to fund ongoing maintenance. The City receives Real Estate
Excise Tax 1 (REET 1) and Real Estate Excise Tax 2 (REET 2) funds that
can be used for capital projects. The City is currently using REET 1 funds
for debt service payments and the REET 2 funds are allocated to grant
matching funds and for smaller specific projects.
Councilmember Peloza requested the Finance Department provide the
Committee a white paper on the reserve funds and other funds that could
be used for funding street maintenance.
CA.A Page 4 of 26
City of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 3, 2017
Page 3
Deputy Mayor Wales stated the City needs $7 million a year over the next
20 years to fully fund the arterial/collector pavement preservation
program. This Committee needs to look at the entire picture of how to
fund this program.
Councilmember Baggett stated no one wants to see taxes increase. The
fact is either the Council is going to have to consider reallocating funds
already allocated in the budget or raise taxes. There needs to be a
revenue source not a one time expenditure of funds.
Councilmember Peloza stated he believes the Committee can provide a
recommendation to the full Council in the next 3-4 months.
Director Snyder stated the Transportation Benefit District (TBD) Board
met on February 22, 2017. When the TBD tabled the car tab fee it was
scheduled to be brought back before them for discussion in 120 days.
IV. ADJOURNMENT
There being no further business, the meeting adjourned at 6:46 p.m.
APPROVED THIS 24th DAY OF April, 2017.
Deputy Mayor Wales, Chair Shawn Campbell, Deputy City Clerk
CA.A Page 5 of 26
City of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 3, 2017
Page 4
CA.A Page 6 of 26
AGENDA BILL APPROVAL FORM
Agenda Subject:
Full Spectrum of Issues Regarding the $20 Car Tab Fee
Date:
April 17, 2017
Department:
Administration
Attachments:
Ad Hoc Info
4-3-meeting info
white paper
net changes
Budget Impact:
$0
Administrative Recommendation:
Background Summary:
Reviewed by Council Committees:
Councilmember: Staff:
Meeting Date:April 24, 2017 Item Number:DI.A
AUBURN * MORE THAN YOU IMAGINEDDI.A Page 7 of 26
Memorandum
Engineering Services
CDPW
Date: April 17, 2017
To: Ad Hoc Committee on Car Tabs Members
Cc: Mayor, Nancy Backus
Director of Community Development & Public Works, Kevin Snyder
From: Assistant Director of Engineering Services/City Engineer, Ingrid Gaub
Re: Presentation Slides from the April 3, 2017 Ad Hoc Committee Meeting
Following the meeting on April 3, 2017, Councilmember DeCorsi requested a copy of
the two slides that we reviewed during the meeting be provided to the committee
members. Please find these two slides attached for your information.
DI.A Page 8 of 26
SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Capital, Programs, Signal
Operations & Maintenance
4 Mega Projects
$37M Auburn Way South
$29M Lea Hill Road
$40M AWS Bypass
$32M BNSF Rail Yard Crossing
62 Other Projects/Programs
$166M
Pavement
Preservation
Arterial/Collectors
$2M Per Year = $40M
Local Streets
$2M Per Year = $40M
20 YEAR PROGRAM FUNDING
GOAL
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SERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATION
Scenario #1 - $2M/ Yr
Scenario #2 - $2.75M/ Yr
Scenario #3 - $5.5M/ Yr
Scenario #4 - $6.25M/ Yr
Scenario #5 - $7M/ Yr
30
35
40
45
50
55
60
65
70
2017
2037
55
49
53
64
66
70
PCI RatingTBD Supplemental Preservation Funding Scenarios
Scenario #1 - $2M/ Yr Scenario #2 - $2.75M/ Yr Scenario #3 - $5.5M/ Yr
Scenario #4 - $6.25M/ Yr Scenario #5 - $7M/ Yr
Funding Scenarios
1.Baseline $2M Annually
2.Baseline + Car Tabs
3.Baseline + Sales Tax
4.Baseline + Car Tabs &
Sales Tax
5.$7M Annually
TBD FUNDING SCENARIOS –OVER 20 YRS
$20 Car Tab ~ $800K / Year
0.2% Sales Tax ~ $3.7M / Year
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City of Auburn Revenue Sources and Reserve Funds
(in particular those that could be used to fund streets)
General Discussion on Revenues and Reserves Available for Streets
The City Council ad hoc committee on the $20 tab fee met on April 3, 2017. Councilmember Peloza
requested the Finance Department provide the Committee a white paper on the reserve funds and
other funds that could be used for funding street maintenance.
Street Funds – What is Currently Funding the Program
The City provides street maintenance in the General Fund and construction in the three special revenue
street funds. Below is a chart showing the budgeted expenses in each of these funds for the 2017/2018
biennium:
Revenues into these funds are from several sources:
Arterial Streets Fund 102 – Gas tax, grants, transportation impact fees, and occasionally REET funds.
Local Street Funds – Sales tax received on construction and $50,000 annually from the Water, Sewer and
Storm Funds, and occasionally REET.
Arterial Streets Preservation – 1% of utility tax from Water, Sewer, Storm and Garbage utilities.
Additionally, 1% utility tax from cable TV, electric, gas and phone utilities. There has also been grant
funding and occasional REET funds.
Arterial Strts Streets
Arterial Strts Local Strts Preservation Maintenance Totals
Fund 102 Fund 103 Fund 105 001.42*
2017 Budget 16,529,350$ 3,131,193$ 7,495,554$ 3,798,094$ 30,954,191$
2018 Budget 6,643,292 2,418,270 2,880,440 3,863,742 15,805,744
23,172,642$ 5,549,463$ 10,375,994$ 7,661,836$ 46,759,935$
DI.A Page 11 of 26
Unobligated funds (one time) that could be used for streets:
Finance recommends that these funds be used for onetime events as these have been accumulated over
many years since the recession. They cannot be relied upon for ongoing programs for any length of
time.
What Other Funds may be used for Streets
General Fund Revenues, in the most part, are unrestricted in use. However, they support many non-
discretionary costs such as contract payments to SCORE, Valley Com, King County District Court, debt
service, public defenders, elections, audits, LEOFF 1 liability etc. Other items that are non-discretionary,
however, may be reduced by limiting programs and services such as interfund services and labor
contracts which are the two largest expenditures in the General Fund. These non-discretionary costs are
87% of the total 2017 general fund budget.
The remaining 13% of expenditures fund supplies, training, services, association dues, human services
grants and contracts, state and federal representation, and other items to aid in delivering programs
and services. Therefore, the General Fund is not a good candidate to provide ongoing revenues for
expansion of the street program. Residual General funds are often transferred to the Cumulative
Reserve Fund or used for onetime expenses. Residual General Fund dollars were recently used to fund
the hangar repairs at the airport. If the General Fund did not have capacity to pick up this one time
project, the Cumulative Reserve Fund would have been used.
Discussion on Fund Types and Uses
The City of Auburn receives several different types of revenue. Revenues received consist of: taxes;
licenses, permitting and development fees; intergovernmental revenues from federal, state and other
local governments; fines and penalties; and user fees in the City’s enterprise funds. Attachment 1
Revenues may also be transferred into a fund from another fund. Transfers in are recorded as revenue
in the receiving fund and transfers out are recorded as expenditures in the fund sending the money.
The City records these revenues in different fund types: General Fund, Special Revenue Funds, Debt
Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds. It is important to
note that most of the revenue received in the internal service funds comes from other funds within the
City via interfund user fee assessments. Attachment 2
General Fund
Funds receipted into this fund are, in the most part, unrestricted. Fees received for permitting and
development are used to directly support those services. All other revenues are used to support general
government operations. Periodically the General Fund has residual Funds and they are transferred to
the Cumulative Reserve Fund. Attachment 3 lists all the General Fund revenues.
REET 1 $3.7M
REET 2 $3.7M
Transportation Impact Fees $5.4M
Cumulative Reserve $8.7 M
Total $21.5M
DI.A Page 12 of 26
Special Revenue Funds
The use of these funds are restricted by Federal, State or Local laws/legislation and must be used for the
purposes identified in those laws/legislation. The Cumulative Reserve Fund may be used for revenue
stabilization, supplies, materials, or expenditures that are capital in nature which would include debt
service. Attachment 4
There are three special revenue funds just for streets: Arterial Streets Fund; Local Streets Fund; and
Arterial Streets Preservation.
The Mitigation Fees Fund had over $11,000,000 as of 12/31/2016. Transportation and Park impact fees
primarily made up this balance at $5.1M and $4.8M respectively.
The 2017 and 2018 budget has committed some of the transportation impact fees for ongoing street
projects. The estimated balance of transportation fees at 12/31/2018 is $2.6M. The estimated balance
of the park impact fees at 12/31/2018 is $5.4M.
The Cumulative Reserve Fund balance at 12/31/2016 was $8.7M.
Debt Service Funds
Principal and interest on bond issues are paid from these funds. Revenues to service the debt are
transferred in from one of the following funds: General Fund, Cumulative Reserve Fund, Capital Projects
Fund, or Utility Funds. Currently SCORE debt service is an accounting adjustment entry showing funds
receipted at SCORE on behalf of Auburn as servicing that debt.
Capital Projects Funds
The Municipal Parks Capital Fund is used for park projects. Funding comes primarily from grants and
transfers in of REET to assist in projects. This fund will receive the parks impact fees as a transfer in
from the Mitigation Fund, 124, when an eligible project is identified/planned and budgeted. Currently
there is over $5M in accumulated park impact fees.
The Capital Improvement Fund receives revenues from the sales of general government assets and REET
1 and 2 (Real Estate Excise Taxes 1, Real Estate Excise Taxes 2). Currently the balances of unobligated
REET 1 and REET 2 at 12/31/2016 are $3.3M and $3.9M, respectively. The estimated balances of REET 1
and REET 2 at the end of the biennium, 2018, are $3.7M and $3.7 M, respectively. The allowable uses
of REET 1 and REET 2 are noted in Attachment 5.
Enterprise Funds
Revenues consist of user fees and funds from loans or bond issues. The user fees pay for operations,
debt service, and capital projects. The uses are limited to support the enterprise function. The City may
also levy a utility tax on the City owned utility funds. The General Fund receives a 6% tax and the
Arterial Street Preservation Fund receives 1% tax on the gross revenues of the utility funds.
DI.A Page 13 of 26
Internal Service Funds
Revenues received in these funds come from user fees charged to the funds supported by the services.
Additional assessments are made to funds when new equipment is purchased (ER&R) and for special
projects or tasks benefitting one fund or department.
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DI.A Page 19 of 26
1
The City Council ad hoc committee on the $20 tab fee met on April 3, 2017. Councilmember Peloza requested the
Finance Department provide the Committee a white paper on the reserve funds and other funds that could be used for
funding street maintenance.
Additionally, Council member Wales requested, via voice mail on April 4, additional information to be provided at the
meeting on April 24th of the Council ad hoc committee on the $20 tab fee. The request was for Finance to prepare year
over year percentage changes back to 2011of all the major departments, including Administration and IT.
Page 5 shows the raw data of the percent changes of the General Fund departments and IT. Percent changes in Police
appear relatively small. However a 5% change in a $23 M dollar budget is $1,150,000 and is more impactful than a 5%
change in a $3 M budget at $150,000. It is important to keep these impacts in mind. Page 6 shows the dollar changes
and page 7 shows the expenditures in total from 2011 – 2018.
The schedule below supplements the schedule on page 5 showing percentage changes 2011-2018. Finance provided
high level analysis on those increases and decreases exceeding 25%. These explanation are general in nature. To fully
identify the changes, each account expenditure and budget within a department would need to be reviewed for anomalies
and then the detail for anomalies analyzed for the 2011-2018 time frame.
DI.A Page 20 of 26
2
Note Department Date Explanation Amount
a. Mayor/Council (2013-14): 3 FTEs were moved to Admin as part of establishing
the new department. ($0.2M)
b. Administration (2014-15): Lobbying costs moved from Non-departmental budget. $0.3M
One-time costs included in decision packages:
• 10-Year Economic Development Plan $125k
• Market/Economic Pro Forma Studies $ 15k
• Downtown Storefront Improvements $ 50k
• Business Development Recruitment $ 60k
• Business Support Services $ 50k
Subtotal $0.3M
Human services contracts. $0.2M
TOTAL $0.8M
c. Administration (2016-17B): Budget for real estate services moved from Facilities;
and Chamber of Commerce and ADA costs moved
from Non-departmental budget. $0.1M
Personnel costs for Facilities & Property Analyst
moved from Facilities budget $0.1M
New Port of Seattle economic development grant (in BA#1) $0.1M
Increase in interfund allocations (Fleet and Multimedia) $0.1M
TOTAL $0.4M
DI.A Page 21 of 26
3
Note Department Date Explanation Amount
d. Human Resources (2012-13): Reduction in Court and probation costs as service
moved to King County District Court. ($2.5M)
e. Human Resources (2013-14): Increase in King County District Court costs. $0.8M
f. Human Resources (2014-15): Increase in King County District Court costs. $0.4M
g. SCORE (2011-12): 2011 included start-up costs, not present in 2012. ($2.6M)
h. SCORE (2012-13): First year of debt service payment; also, increase in
ADP from 100 (29%) in 2012 to 122 (34%) in 2013. $3.5M
i. SCORE (2014-15): Debt service no longer paid directly by COA; also,
Reduction in ADP from 97 in 2014 to 79 in 2015. ($1.8M)
j. Non-Departmental (2011-12): Interfund loans (IT and ER&R). $0.2M
Increase in debt service costs. $0.7M
Total $0.9M
DI.A Page 22 of 26
4
Note Department Date Explanation Amount
k. Non-Departmental (2012-13): One-time items in 2012 only:
• Interfund loans (IT and ER&R) ($209k)
• Transfer for traffic calming (Fund 328) ($200k)
• MVFT transfers (to Funds 102 and 120) ($537k)
• Other tax transfers ($127k)
• Transfer of Cable TV franchise fees (to F518) ($ 75k)
Subtotal ($1.2M)
Reduction in debt service costs. ($0.2M)
Total ($1.4M)
m. Non-Departmental (2016-17B): Retirement costs (health care benefits):
• Police LOEFF1 $301k
• Police retirees $ 72k
• Fire Relief/Pension $220k
• Engineering retirees $ 87k
Subtotal $0.7M
Budgeted contingencies in 2017 less 2016 actuals. $0.9M
Transfers out (in 2017 BA#1):
• Vehicles $294k
• Emergency repairs at the Airport $275k
• Facility capital projects $103k
Subtotal $0.7M
TOTAL $2.3M
DI.A Page 23 of 26
5
25%
2011 to 2012 to 2013 to 2014 to 2015 to 2016 to 2017B to
2012 2013 2014 2015 2016 2017B 2018B
11 Mayor/Council 14.8%11.8%-26.8%a 22.6%16.7%10.0%3.2%
12 Administration 44.6%b -13.6%27.1%c -2.7%
13 Human Resources 3.5%-48.7%d 25.1%e 28.0%f 7.2%11.0%0.5%
14 Finance 2.4%0.0%0.3%6.4%0.3%22.5%-2.7%
15 Legal 4.8%21.8%-11.6%10.5%4.1%13.0%3.7%
17 Community Development 1.2%-0.2%-20.6%3.2%5.2%16.8%0.4%
20 SCORE -42.2%g 99.0%h -21.9%-33.5%i 9.9%-1.7%3.7%
21 Police 0.1%5.7%5.7%8.8%6.1%13.8%1.2%
32 Public Works 11.9%8.0%-3.2%-0.8%12.4%20.4%4.7%
33 Parks 4.9%11.0%18.0%12.7%4.7%8.1%3.5%
42 Streets 12.9%-4.8%10.7%-6.5%6.4%18.3%1.7%
98 Non-Departmental 50.5%j -40.8%k 20.0%8.8%-2.1%98.1%m 6.5%
Total -0.2%5.1%4.4%5.7%5.2%16.2%2.1%
Innovation & Technology -1.9%-2.4%11.6%6.2%18.4%13.0%-0.9%
Net Change (percent)
DI.A Page 24 of 26
6
25%
Amended
Budget
Adopted
Budget
2012 2013 2014 2015 2016 2017 2018
11 Mayor/Council 117,394 107,159 (273,156) 168,256 152,570 106,023 37,325
12 Administration - - 1,658,185 739,061 (327,067) 560,394 (72,331)
13 Human Resources 134,708 (1,949,474) 516,449 720,513 235,390 386,650 19,345
14 Finance 26,532 (298) 3,944 73,149 3,530 276,110 (41,062)
15 Legal 74,967 354,783 (230,368) 184,601 78,628 262,311 84,997
17 Community Development 57,600 (11,693) (979,614) 120,097 201,863 689,388 17,642
20 SCORE (2,588,859) 3,507,712 (1,544,353) (1,845,904) 360,610 (66,323) 146,315
21 Police 12,170 1,042,238 1,094,019 1,789,680 1,344,845 3,221,892 313,678
32 Public Works 268,972 202,200 (86,987) (21,261) 325,337 601,603 167,614
33 Parks 340,423 806,633 1,464,645 1,216,449 505,752 912,423 425,219
42 Streets 349,481 (148,075) 311,406 (210,750) 193,223 588,596 65,648
98 Non-Departmental 1,094,843 (1,329,463) 387,033 205,251 (53,138) 2,426,122 316,928
Total (111,770) 2,581,723 2,321,202 3,139,143 3,021,543 9,965,189 1,481,318
Innovation & Technology (90,406) (112,412) 523,790 310,531 986,905 825,228 (67,110)
Net Change (dollars)
DI.A Page 25 of 26
7
25%
Amended
Budget
Adopted
Budget
2011 2012 2013 2014 2015 2016 2017 2018
11 Mayor/Council 793,172 910,566 1,017,725 744,569 912,825 1,065,395 1,171,418 1,208,743
12 Administration - - - 1,658,185 2,397,246 2,070,179 2,630,573 2,558,242
13 Human Resources 3,868,589 4,003,296 2,053,823 2,570,272 3,290,785 3,526,175 3,912,825 3,932,170
14 Finance 1,117,926 1,144,458 1,144,160 1,148,104 1,221,253 1,224,783 1,500,893 1,459,831
15 Legal 1,554,731 1,629,698 1,984,481 1,754,113 1,938,714 2,017,342 2,279,653 2,364,650
17 Community Development 4,720,942 4,778,542 4,766,848 3,787,235 3,907,332 4,109,195 4,798,583 4,816,225
20 SCORE 6,130,267 3,541,408 7,049,120 5,504,767 3,658,863 4,019,473 3,953,150 4,099,465
21 Police 18,147,673 18,159,843 19,202,081 20,296,100 22,085,780 23,430,625 26,652,517 26,966,195
32 Public Works 2,257,553 2,526,526 2,728,726 2,641,739 2,620,478 2,945,815 3,547,418 3,715,032
33 Parks 6,989,063 7,329,486 8,136,118 9,600,763 10,817,212 11,322,964 12,235,387 12,660,606
42 Streets 2,714,212 3,063,693 2,915,619 3,227,025 3,016,275 3,209,498 3,798,094 3,863,742
98 Non-Departmental 2,167,567 3,262,410 1,932,947 2,319,980 2,525,231 2,472,093 4,898,215 5,215,143
Total 50,461,695 50,349,925 52,931,648 55,252,850 58,391,994 61,413,537 71,378,726 72,860,044
Innovation & Technology 4,721,205 4,630,799 4,518,387 5,042,178 5,352,708 6,339,614 7,164,842 7,097,732
GENERAL FUND EXPENDITURES (excludes Transfers to Cumulative Reserve and Insurance Funds)
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