Title
Briefing and PUBLIC HEARING on the Preliminary Capital Facilities Plan (CFP) 2015-2020
Recommended Action
Committee Recommendation:
The Planning Commission's Finance Subcommittee is reviewing the Preliminary CFP, and will propose draft recommendations to the full OPC for discussion on September 8 and 22. The Commission will final their recommendation letter to Council on October 6.
City Manager Recommendation:
Move to hold the public hearing and take input on the CFP, including a 6% tax on Cable TV.
Report
Issue:
The City Council received a briefing on the Preliminary CFP on Tuesday, July 15, and forwarded the Plan to the Planning Commission for review.
Staff Contact:
Jane Kirkemo, Administrative Services Director, 360.753.8499
Presenter(s):
Jane Kirkemo, Administrative Services Director
Jennifer Priddy, Olympia School District Assistant Superintendent
Background and Analysis:
The City Manager is required to present a six-year Capital Facilities Plan (CFP) to the City Council for adoption. The CFP must be balanced (revenues received realistically pay for proposed projects). Such planning involves determining when and where the facilities will be needed, and how much they will cost to construct and maintain.
Since the City of Olympia collects impact fees for the Olympia School District (OSD), their CFP must be incorporated into our CFP document before final adoption. In addition, any County projects within the Olympia boundaries or the Urban Growth Management Area (UGMA) will be included in the final document for reference.
The six-year plan is significantly larger than the current plan (17%). The increase is in the drinking water - up almost $20 million compared to the current plan.
The Preliminary CFP assumes 100% of the REET (Real Estate Excise Tax) money will be spent on capital projects. As the operating budget progresses, the Council could choose to use some portion of REET funds to balance the operating budget.
The 20-year CFP goals and policies are included in the CFP. The policies were edited for "Plain Talk" last year; however, no substantive changes were made in policy direction. The Commission's current work plan includes making a recommendation to the City Council regarding any 20-year goals or policies that may need to be reviewed more in depth and potentially changed during 2015.
The CFP includes expanding the Utility Tax to Cable TV. This change would go into effect 1/1/2015. The City Council has requested staff provide a summary of any public comments regarding the proposed tax from tonight's public hearing - comments for or against. (The Commission may also make a recommendation regarding the proposed tax - see next business item #14-0757.)
Neighborhood/Community Interests (if known):
Comments are welcome from all members of the public throughout the review process.
As in past years, Olympia advisory committees and the Coalition of Neighborhoods are encouraged to review and comment on the draft CFP throughout the process (hyperlink to process schedule is attached).
Options:
Receive the briefing and the open public hearing for comment. The Commission may choose to leave the hearing open for written comment until a specific date.
Staff and a representative from the Olympia School District will be available to answer questions.
Financial Impact:
The 2015-2020 CFP is $142.5 million. The 2015 budget is $21.7 million. By far, the most significant increase is the Drinking Water. Staff and the Utility Advisory Committee (UAC) are still reviewing the plan and preparing a financial analysis. The Committee will probably recommend pushing some of the projects out beyond the six-year horizon.
The Preliminary CFP includes applying the Utility Tax to cable TV. This does not apply to DISH Network or other internet providers. It will increase the average Comcast customer's bill by approximately $5 per month. Following the Planning Commission public hearing on the CFP, staff will take an ordinance to the Council applying the Utility Tax to cable. If Council adopts the ordinance it would go into effect in January 2015. It will generate approximately $800,000 on an annual basis. It is a quarterly revenue collection; and only three quarters ($600,000) will be received in 2015. (See next business item #14-0757.)