Loading...
HomeMy WebLinkAbout05-01-2017 SPECIAL CITY COUNCIL AD HOC COMMITTEE AGENDASpecial City Council Meeting May 1, 2017 - 6:00 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 24, 2017 Ad Hoc Committee Meeting* III. DISCUSSION ITEMS A. Full Spectrum of Issues Regarding the $20 Car Tab Fee* 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 15 AGENDA BILL APPROVAL FORM Agenda Subject: Minutes of the April 24, 2017 Ad Hoc Committee Meeting Date: April 26, 2017 Department: Administration Attachments: minutes Budget Impact: $0 Administrative Recommendation: Background Summary: Reviewed by Council Committees: Councilmember: Staff: Meeting Date:May 1, 2017 Item Number:CA.A AUBURN * MORE THAN YOU IMAGINEDCA.A Page 2 of 15 Page 1 CAR TAB AD HOC COMMITTEE MEETING MINUTES April 24, 2017 4:00 PM I. CALL TO ORDER Deputy Mayor Wales called the meeting to order at 4:00 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, Councilmember John Holman and Councilmember Trout-Manuel 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 Human Resources and Risk Management Director Rob Roscoe, and Deputy City Clerk Shawn Campbell. II. CONSENT AGNEDA A. Minutes of the April 3, 2017 Ad Hoc Committee Meeting Councilmember Peloza moved and Councilmember DaCorsi seconded to accept the consent agenda. MOTION CARRIED UNANIMOUSLY. 4-0 III. COUNCIL AD HOC COMMITTEE DISCUSSION ITEMS A. Discussion of the Full Spectrum of Issues Regarding the $20 Car Tab Fee Director Coleman reviewed the funds the City can use for streets. She reviewed Fund 102, the Arterial Streets Fund, the revenue sources for the 120 fund are gas tax, grants, transportation impact CA.A Page 3 of 15 City of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 24, 2017 Page 2 fees and occasionally REET funds; the Local Streets Fund receives revenue from sales tax received on construction and $50,000.00 annually for the Water, Sewer and Strom funds and occasionally some REET funds; and the Arterial Street Preservation Fund receives revenue from a 1% utility tax from the Water, Sewer, Storm and Garbage utilities, a 1% additional utility tax from the cable TV, electric, gas and phone utility’s, grant funding and occasional REET funds. Many of the revenues that go into the different funds are restricted and the City must ensure the funds are spent on appropriate projects that fit all of the restrictions. Councilmember Peloza asked if the City can take additional funds from the Stormwater and Sewer funds to put in the Local Street Funds. Director Coleman stated the Stormwater and Sewer Departments generate approximately $50,000.00 worth of street repairs from their activity in the street per year. Any additional funds would have to coincide with activity in the street. Councilmember Peloza asked why the REET funds are listed as occasionally. Director Coleman explained the REET funds are cyclical and there are times when additional funds are available. A large percentage of REET funds are obligated to debt service payments. Councilmember Peloza requested staff provide the REET 1 and REET 2 funds for the last 5 years and the expected revenue for the next 5 years. He would like to know what the funds have been spent on and what the funds are budgeted for in the future. Councilmember Peloza asked if the City could raise the fees taken from the enterprise funds. Director Coleman stated Council can direct a larger fee be directed to the Streets fund but the increased rate would need to be passed on to the rate payer. Councilmember Baggett stated the Committee needs to look at department budgets. There may be cuts in those budgets the City could use to cover some of the shortfall. Director Coleman stated Council can direct the funds to where they need them to go. She noted the major expense in departmental budgets are salaries and benefits. Councilmember Baggett requested the department directors bring proposed cuts within their budgets to the next ad hoc Committee meeting. CA.A Page 4 of 15 City of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 24, 2017 Page 3 Deputy Mayor Wales stated the Committee will need to come up with different options to find the least impactful way to fund the roads. Councilmember DaCorsi asked for clarification on what the Cumulative Reserve Fund could be used for. Director Coleman stated that fund can be used for capital projects and revenue stabilization. The City policy is to keep the Cumulative Reserve Fund plus the General Fund balance at 25% of the current year General Fund budgeted expenses. Director Coleman cautioned the Committee from using the Cumulative Reserve Fund as standing revenue source. Councilmember Peloza requested to have each departmental budget with all planned capital project and dollar amount associated with each project brought to the next meeting. Councilmember DaCorsi stated there is currently a $5 million gap between what the City has budgeted for roads and what will be needed per year over the next 20 years to bring the roads to an acceptable level. He asked what will happen to the roads if any a portion of the gap is filled. Assistant Director Gaub explained the department has developed five scenarios with predicted road conditions over the next 20 years; Scenario 1 assumes the City funds the roads at the current $2 million resulting in the PCI rating to fall to a 49, Scenario 2 assumes the City funds the roads at $2.75 million a year and the roads will be at a PCI of 53 after 20 years, Scenario 3 assumes the City will fund roads at $5.5 million a year and the roads will be at a PCI of 64 after 20 years, Scenario 4 assumes the City will fund the roads at $6.25 million a year and the roads will be at a PCI of 66 in 20 years and Scenario 5 assumes the City will fund roads at $7 million a year and the roads will be at a PCI of 70 in 20 years. A PCI rating of 0-25 is considered very poor, a rating of 26-50 is considered poor, a rating of 51-70 is considered fair and a rating of 71-100 is good. Roads that are new are rated between 90-100. Councilmember DaCorsi asked what is the minimum the City can get by with. Assistant Director Gaub stated that question is for Council to decide what PCI goal they want to set. Councilmember DaCorsi stated he wants to make sure the streets are passable and can be maintained with some level of consistency. CA.A Page 5 of 15 City of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 24, 2017 Page 4 Deputy Mayor Wales stated this process may take a couple years to get to a fully funded program. Deputy Mayor Wales request staff bring back departmental budgets with proposed cuts, the REET 1 and REET 2 funds and what would be generated by a .5% increase to the utility tax. B. Future Meetings The Committee discussed dates of future meetings. The consensus was to hold meetings on the first and third Monday of each month at 6:00 p.m. IV. ADJOURNMENT There being no further business, the meeting adjourned at 5:02p.m. APPROVED THIS 1st DAY OF May, 2017. Deputy Mayor Wales, Chair Shawn Campbell, Deputy City Clerk CA.A Page 6 of 15 City of Auburn Car Tab Ad Hoc Committee Meeting Minutes April 24, 2017 Page 5 CA.A Page 7 of 15 AGENDA BILL APPROVAL FORM Agenda Subject: Full Spectrum of Issues Regarding the $20 Car Tab Fee Date: April 26, 2017 Department: Administration Attachments: Departmental Budet Finance Report Budget Impact: $0 Administrative Recommendation: Background Summary: The Finance Documents include REET 1 and REET 2 Revenues and Uses/Expenditures 2012- 2018 and .5% utility tax on water, sewer, storm and garbage utilities. Reviewed by Council Committees: Councilmember: Staff: Meeting Date:May 1, 2017 Item Number:DI.A AUBURN * MORE THAN YOU IMAGINEDDI.A Page 8 of 15 Budget Discussion Regarding Road Funding Prepared for May 1, 2017 Ad Hoc Meeting of Auburn City Council The $20 Car Tab Ad Hoc Committee has requested information and input from the Department Directors regarding potential additional revenue sources for arterial street improvements. The specific requests for suggested cuts to departmental budgets and all planned capital project and dollar amount associated will require further discussion and policy direction. In order to inform this discussion and to avoid creating duplicate data sources, it is recommended that we examine the currently adopted Capital Facilities Plan and the recently adopted biennial budget documents (to include the latest budget amendments from March 2017). These documents have all been provided to Council and staff upon adoptions and it is recommended that current copies be brought to the upcoming meetings as we further examine potential solutions. Finance Director Coleman can assist with finding the capital projects in the budget book if needed. We believe that this direction will help us better understand what the Committee is looking for as well as help focus our efforts and that of our teams. DI.A Page 9 of 15 Finance Department Memorandum Date: April 25, 2017 To: City Council Ad Hoc Committee on the $20 Tab Fee Cc: Nancy Backus, Mayor From: Shelley Coleman, Finance �ff . ./ Re: Reet 1 and Reet 2 Revenues and Uses; Revenues Generated by .5% Utility Tax The Committee requested a history of REET 1 and REET 2 uses over the past 5 years. The attached schedules and graphs provide this information. Page 2 is a shows a summary of the uses and revenues by graph from 2012-2018: The top graph shows uses, by category, of REET 1. Debt service on the 2010 bond issue for the Annex debt is the largest use at approximately $650,000 annually. The second largest use of REET 1 is for buildings. The middle graph shows the uses, by category, of REET 2. The largest use of REET 2 is streets. Sidewalks, traffic light improvements, and intersection improvements are included in the category 'Streets'. The bottom graph on page 2 shows actual REET revenues from 2012-2016 and budgeted revenues for 2017-2018. Page 3 shows detail of REET 1 uses year by year and page 4 shows REET 2 uses year by year. Page 5 shows REET 1 and REET 2 revenues and expenditures/uses in dollars. Page 6 is the project detail of each use year by year. The Committee also requested the amount of funding a .5% utility tax on the water, sewer, storm and garbage utilities would generate. It would provide approximately $300,000 annually. The chart is at the top of page 5. 1DI.A Page 10 of 15 2DI.A Page 11 of 15 $1.0 $0.9 $0.8 $0.7 � $0.6 � $0.5 � $0.4 $0.3 $0.2 $0.1 $- ACTUAL 2012 REET 1 Expenditures Actual 2012 Debt Service $ 644,799 Streets Buildings 187,785 Parks - Other Total $ 832,584 $ $ ACTUAL 2013 Actual 2013 659,823 562,598 - 125,000 1,347,421 REET 1 Expenditures ACTUAL 2014 ACTUAL 2015 ACTUAL 2016 iii Debt Service • Streets • Buildings • Parks • Other Actual Actual Actual 2014 2015 2016 $ 645,200 $ 659,121 $ 657,826 228,091 358,725 873,071 -759,219 11,779 - $ 885,070 $ 1,017,846 $ 2,290,116 $ $ BUDGETED 2017 Budgeted Budgeted 2017 2018 645,037 $ 645,039 128,966 530,000 125,000 - 30,000 75,000 929,003 $ 1,250,039 BUDGETED 2018 TOTAL $ 4,556,845 2,869,235 884,219 241,779 $ 8,552,078 4/25/2017 3:43 PM 3DI.A Page 12 of 15 4DI.APage 13 of 15 5DI.APage 14 of 15 6DI.A Page 15 of 15