HomeMy WebLinkAboutCity Council Committees - Operations - 12/08/2009 KENT
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OPERATIONS COMMITTEE MINUTES
DECEMBER 8, 2009
Committee Members Present: Debbie Raplee, Tim Clark and Les Thomas
The meeting was called to order by Tim Clark at 5:03 p.m.
1. APPROVAL OF MINUTES DATED DECEMBER 1, 2009
Thomas moved to approve the minutes of the December 1, 2009 Operations
Committee meeting. Raplee seconded the motion, which passed 3-0.
2. MOVE TO RECOMMEND COUNCIL ADOPT THE PROPOSED ORDINANCES
AUTHORIZING AN INCREASE IN THE PROPERTY TAX LEVY AND LEVYING
THE PROPERTY TAX FOR COLLECTION IN 2010.
Finance Director Bob Nachlinger provided a revised motion sheet and ordinance
amending the ordinance in the packet. This is due to receiving final assessed
valuation numbers from King County. Have amended the motion and ordinance to
reflect those final numbers. The actual tax rate that had assumed a $2.358 went
down to $2.353, a reduction of about $30,000 in total property taxes.advised that
State law requires two separate ordinances to authorize the City's property tax.
State law provides that the limit factor used by a taxing jurisdiction with a
population of 10,000 or over is the lesser of 101 percent of the previous maximum
allowed tax levy, or 100 percent, plus inflation. Historically, the City has imposed
the 101 percent limit factor each year since it became law. Due to a drop in
inflation, the limit factor used to collect property taxes in 2010 could decrease.
With already decreasing revenues from sales tax, permit fees, and the lack of
development and new construction, reduced property tax revenues would impact
the City's decreasing budget revenues resulting in further reductions to City
services. Therefore, staff recommends that Council include a finding that a
substantial need exists pursuant to RCW 84.55.0101 to maintain a limit factor of
101 percent. In order to authorize the limit factor, Council must adopt the
ordinance by a majority vote, plus one. The first ordinance authorizes an increase
in the regular property tax to 1% over the previous maximum allowed tax levy.
The second ordinance levies the tax for collection in 2010. The estimated levy is
$27,649,944 for the General Fund and $600,000 for the Voted Debt Levy, for an
estimated total of $28,249,944. The proposed property tax ordinances are being
presented to the full City Council for discussion the same night that they are
presented to the Operations Committee. BUDGET IMPACT: The revenue generated
by the proposed property tax levy rate has been taken into consideration in
preparing the 2010 budget for Council consideration.
Raplee moved to recommend Council adopt the proposed ordinances
authorizing an increase in the property tax levy and levying the property
tax for collection in 2010. Thomas seconded the motion, which passed 3-0.
Operations Committee Minutes
December 8, 2009
Page: 2
3. MOVE TO RECOMMEND ADOPTION OF AN ORDINANCE ADOPTING THE 2010
BUDGET.
Finance Director Bob Nachlinger provided a new motion sheet for adoption of the
budget. It incorporates changes received from the Council's Saturday workshop.
Have a 0% COLA for employees, maintained $1 million for flood fight, project 8.1%
fund balance, and adding back in Prosecutors position. Nachlinger advised that this
ordinance adopts the 2010 budget. The budget to be adopted is summarized in
Exhibit A. It includes the Preliminary Budget document as amended by Exhibit B,
which includes all adjustments made to the Preliminary Budget since its original
publication and amends the authorized Employee Full-Time Equivalent count as
presented at the December 2, 2009 workshop. BUDGET IMPACT: 2010 Budget.
BACKGROUND: Council has held two public hearings and three workshops on the
2010 budget. All amendments in Exhibit B have been reviewed by the Operations
Committee. Adjustments related to the actual property tax levy will be
incorporated as soon as we receive final numbers from King County. Thomas
questioned getting to 8.1% fund balance when previously projected a week ago at
only 7.2%. Nachlinger responded that moving slowly back to 8.1% as projected in
budget, won't have final fund balance until after the end of February. Clark asked
questions regarding the affect on the budget should the RFA not be approved by
voters. Chief Administrative Officer John Hodgson responded to Clark's question,
explaining that the 2010 budget assumes the Fire Department is not in the RFA. So
whatever is adopted for the Fire Department in the 2010 budget is their budget.
The fire benefit charge does not take effect until 2011. Thomas questioned
Hodgson regarding reaching the 8.1% fund balance and the possibility of future
layoffs. Hodgson responded that the books on 2010 would not be closed until the
end of February and that would be the soonest that they would know did we get to
the 8.1% or are we shy of it and that is when adjustments would be made up or
down.
Raplee moved to recommend adoption of an ordinance adopting the 2010
budget. Clark seconded the motion, which passed 2-1. Thomas opposed.
4. MOVE TO RECOMMEND/DO NOT RECOMMEND UPDATING THE CAPITAL
FACILITIES ELEMENT OF THE KENT COMPREHENSIVE PLAN AND CHAPTER
12.13 KENT CITY CODE TO INCORPORATE THE 2009/10 — 2014/15
CAPITAL FACILITIES PLANS OF THE KENT, FEDERAL WAY AND AUBURN
SCHOOL DISTRICTS, INCLUDING UPDATED SCHOOL IMPACT FEES, AS
RECOMMENDED BY STAFF.
Economic and Community Development Planning Manager Charlene Anderson noted
that the Kent City Code provides for imposition of school impact fees on behalf of
any school district which provides to the City a capital facilities plan; the plan is
adopted by reference as part of the Capital Facilities Element of the Kent
Comprehensive Plan. The school districts are required to submit for annual Council
review their updated capital facilities plans. The Kent, Federal Way and Auburn
School Districts submitted their updated Capital Facilities Plans to the City of Kent
Operations Committee Minutes
December 8, 2009
Page: 3
and are proposing to amend school impact fees. Anderson further noted that the
City Council held the required public hearing on November 17, 2009, at the same
time as the second public hearings for the budget and the City's 6-year Capital
Improvement Plan. The proposed Capital Facilities Element of the Kent
Comprehensive Plan and Chapter 12.13 Kent City Code to incorporate the 2009/10
- 2014/15 Capital Facilities Plans of the Kent, Federal Way and Auburn School
Districts, including updated School Impact Fees, as recommended by staff
ordinances are being presented to the full City Council for discussion the same night
that they are presented to the Operations Committee. BUDGET IMPACT: None
BACKGROUND: One of the planning goals under the Growth Management Act
(RCW 36.70A.020) is to ensure that those public facilities and services necessary to
support development are adequate and timely to serve the development without
decreasing current service levels below minimum standards. The Act (RCW
36.70A.070) requires the Capital Facilities Element of the Kent Comprehensive Plan
to inventory existing capital facilities, forecast future needs and provide for
financing of those facilities. RCW 82.02.050 authorizes cities planning under the
Growth Management Act to impose impact fees on development activity as part of
the financing for public facilities needed to serve new growth and development. As
a result, KCC 12.13.080 and 090 provide for imposition of school impact fees on
behalf of any school district which provides to the City a capital facilities plan; the
plan is adopted by reference as part of the Capital Facilities Element of the Kent
Comprehensive Plan. The school districts are required to submit for annual Council
review their updated capital facilities plans (KCC 12.13.060 & 070). The Kent,
Federal Way and Auburn School Districts submitted their 2009/10 — 2014/15
Capital Facilities Plans and are requesting amendments of the Kent Comprehensive
Plan and Kent City Code Chapter 12.13 to reflect changes to impact fees resulting
from new student population generated by new single family and multifamily
residential development. The updated plans include an inventory of existing
facilities, existing facility needs, expected future facility requirements, expected
funding, and calculation of the impact fees according to the formula set forth in KCC
12.13.140. The Kent School District proposes to increase their existing school
impact fees for single family units from $5,304 to $5,394 (an increase of $90 or
1.7%) and for multifamily units from $3,266 to $3,322 (an increase of $56 or
1.7%). The Federal Way School District proposes to decrease their existing school
impact fees for single family units from $4,017 to $3,832 (a decrease of $185 or
4.6%) and increase their fees for multifamily units from $1,733 to $2,114 (an
increase of $381 or 22.0%). The Auburn School District proposes to increase their
existing school impact fees for single family units from $5,374.64 to $5,432.70 (an
increase of $58.06 or 1.1%) and increase their fees for multifamily units from
$877.02 to $1,184.71 (an increase of $307.69 or 35.1%). The only area in Kent
where Auburn School District's impact fees are applied is the Verdana or Bridges
PUD on the former impoundment reservoir site. Please refer to your November 17,
2009 City Council agenda packet for the school district capital facilities plans,
environmental determination, comparison charts, and applicable code sections.
Included in today's packet is the DNS and Addendum for the Federal Way School
District. Staff will be available at the December 81h committee meeting to answer
questions. The Committee raised questions which Anderson responded to.
Operations Committee Minutes
December 8, 2009
Page: 4
Thomas moved to recommend updating the Capital Facilities Element of
the Kent Comprehensive Plan and Chapter 12.13 Kent City Code to
incorporate the 2009/10 — 2014/15 Capital Facilities Plans of the Kent,
Federal Way and Auburn School Districts, including updated School Impact
Fees, as recommended by staff. Raplee seconded the motion which passed
3-0.
5. MOVE TO RECOMMEND/DO NOT RECOMMEND UPDATING THE CAPITAL
FACILITIES ELEMENT OF THE KENT COMPREHENSIVE PLAN TO INCLUDE
THE 2010-2015 CAPITAL IMPROVEMENT PLAN, AS RECOMMENDED BY
STAFF.
Economic and Community Development Planning Manager Charlene Anderson
advised that the Kent City Code allows update of the Capital Facilities Element of
the Kent Comprehensive Plan concurrent with the adoption of the City budget. The
Capital Facilities Element includes the City's 6-year financing plan, which is updated
annually. Anderson further advised that the City Council held the required public
hearing on this proposed update to the Kent Comprehensive Plan on November 17,
2009, at the same time as the second public hearings for the budget and the City's
6-year Capital Improvement Plan. The proposed Capital Facilities Element of the
Kent Comprehensive Plan to include the 2010-2015 Capital Improvement Plan
ordinance is being presented to the full City Council for discussion the same night
that it is presented to the Operations Committee. BUDGET IMPACT: None
BACKGROUND: One of the planning goals under the Growth Management Act
(RCW 36.70A.020) is to ensure that those public facilities and services necessary to
support development are adequate and timely to serve the development without
decreasing current service levels below minimum standards. The Act (RCW
36.70A.070) requires the Capital Facilities Element of the Kent Comprehensive Plan
to inventory existing capital facilities, forecast future needs and provide for
financing of those facilities needed in the future. The 2010-2015 Capital
Improvement Plan is being considered at the December 8th Operations Committee
meeting and is proposed also to update the Capital Facilities Element of the Kent
Comprehensive Plan. Staff will be available at the December 8th committee
meeting to answer questions.
Raplee moved to recommend updating the Capital Facilities Element of the
Kent Comprehensive Plan to include the 2010-2015 Capital Improvement
Plan, as recommended by staff. Thomas seconded the motion which
passed 3-0.
The meeting adjourned at 5:20 p.m.
Nancy Clary
Operations Committee Secretary