Title
Briefing and PUBLIC HEARING on the Preliminary Capital Facilities Plan (CFP)
Body
Issue:
The Planning Commission will receive a briefing and hold a public hearing on the City of Olympia's Preliminary CFP.
City Manager's Recommendation:
Move to forward the Preliminary CFP to the Planning Commission and other advisory committees for their review and comments.
Staff Contact:
Jane Kirkemo, Administrative Services Director, 360.753.8499
Presenter(s):
Jane Kirkemo, Administrative Services Director
Jennifer Priddy, Olympia School District
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 not only where the facilities will be needed, but when; and not only how much they will cost, but how they will be paid for as well as maintained.
Because the City of Olympia collects impact fees for the Olympia School District, their CFP must be incorporated into our CFP document before final adoption. However, their CFP will not be available until early fall. In addition, any County projects within the Olympia boundaries or the Urban Growth Management Area (UGMA), should be included in the document.
This six-year plan is slightly less than the current plan. The increase is predominantly from the completion of the Washington Center renovations and the LED streetlight conversion project.
The preliminary CFP assures 100% of the REET money will be spent on Capital projects. As the operating budget progresses, the Council may choose to use some portion of REET funds to balance the operating budget.
The CFP goals and policies have been included this year in the CFP. The policies have been edited for "plain talk." However, no substantive changes have been made. The Planning Commission will be reviewing the goals and policies as well as the projects.
The Planning Commission's Finance Subcommittee will take the lead on reviewing the CFP for the Commission. The Subcommittee will meet with staff and draft a recommendation letter to the City Council. In September, the full Commission will review and adopt the letter with any changes. The letter will be forwarded to the City Council prior to the Council's public hearing on the CFP on October 8.
Neighborhood/Community Interests (if known):
Neighborhoods are always interested in the all of the projects in their area.
Options:
Hear the briefing and hold a public hearing. Staff will be available to answer questions before, during or after the hearing.
Financial Impact:
The 2014-2019 CFP is $122.1 million. The 2014 budget is $12.2 million. There are sufficient revenues from approximately 16 different sources to cover this plan. One financial area for discussion is the Real Estate Excise Tax (REET). The legislature made a change in 2012 allowing the use of 35% of the annual proceeds for operations and maintenance. This change will sunset in 2016. The current plan assumes all of the REET money will remain in the CFP.