Title
Discussion of Budget Special Topics - Utility Rates, Lodging Tax Advisory Committee Recommendations, Impact Fees and Parking & Business Improvement Area Budget
Recommended Action
Committee Recommendation:
The Lodging Tax Advisory Committee (LTAC) is recommending tourism service contracts in the amount of $383,000 and the Utility Advisory Committee (UAC) is making recommendations on utility rates and general facility charges (GFC).
City Manager Recommendation:
Review and discuss the following operating budget topics: LTAC tourism service contracts in the amount of $383,000, the UAC 2019 recommended utility rate and general facility charges, Parks and Transportation impact fees, and the proposed Parking & Business Improvement Area Board (PBIA) Budget.
Report
Issue:
Whether to discuss the following operating budget special topics: LTAC tourism service contracts in the amount of $383,000, the UAC 2019 recommended utility rate and general facility charges, Parks and Transportation impact fees, and the 2019 PBIA Draft Budget. Action will be taken in mid-December as part of the budget approval process
Staff Contact:
Debbie Sullivan, Administrative Services Director, Administrative Services, 360.753.8499
Presenter(s):
Debbie Sullivan, Administrative Services Director
Andy Haub, Director of Water Resources, Public Works
Laura Keehan, Parks Planning & Design Manager, Parks, Arts & Recreation
Randy Wesselman, Engineering & Planning Supervisor, Public Works
Amy Buckler, Downtown Programs Manager
Kellie Purce Braseth, Strategic Communications Director, Lodging Tax Advisory Committee Staff Liaison
Background and Analysis:
The 2019 Preliminary Operating and Capital Budget assumes revenue and expenses from utility rates, GFCs, lodging taxing tax, parks impact fees, transportation impact fees, and PBIA. Staff will present information on these topics and take questions from Council for future budget discussion meetings.
Utility Rates and GFC Increases
On October 4, the UAC discussed 2019 utility rates and proposed changes for the four utilities - Drinking Water, Wastewater, Stormwater, and Waste ReSources. This recommendation was presented to Finance Committee on October 17. Staff will share the recommendation with the full Council.
Park Impact Fees
In 2018, the City hired the consulting firm FCS Group to update the City’s Park Impact Fee calculations. Their report was completed in August, 2018. For most housing types, the updated fee calculations would result in an increase of 26-38% over 2018 rates. Staff proposes to phase this increase in over two years. The proposed fee structure for 2019 (attached) therefore contains just half of the increase.
Transportation Impact Fees
Public Works Transportation staff annually adjusts project costs to remain current with the cost of labor, construction materials, and real property. Staff makes updates to the Transportation Impact Fee Rate Study approximately every three-five years. The last update was in 2016. The Transportation Impact Fee will decrease from $2,957 to $2,782 per new PM peak hour trip. This represents a -5.9% decrease. The transportation impact fee is decreasing due to the removal of recently completed projects.
PBIA Draft Budget
Staff will share the 2019 Draft budget. The PBIA Board is scheduled to take a final vote on November 7.
Lodging Tax
The Lodging Tax Advisory Committee (LTAC) met and developed funding recommendations. RCW 67.28.1816 defines City Council’s role regarding LTAC recommendations as follows:
(ii) The local lodging tax advisory committee must select the candidates from amongst the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended amounts of funding to the municipality for final determination. The municipality may choose only recipients from the list of candidates and recommended amounts provided by local lodging tax advisory committee.
Neighborhood/Community Interests (if known):
A public hearing is scheduled for November 13 on the operating and capital budget. Council can hear testimony on the proposed changes at that time.
Options:
1. After hearing the presentation, request additional information from City staff.
Financial Impact:
Briefing only.
Attachments:
2019 Proposed Park Impact Fees
2019 PBIA Draft Budget Recommendations
2019 Lodging Tax Recommendations
LTAC Memo
LTAC Chart History