HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 09/29/2020
Pending Approval
City Council Workshop
Workshop Special Meeting
Minutes
September 29, 2020
Date: September 29, 2020
Time: 5:34 p.m.
Place: THIS IS A REMOTE MEETING
I. CALL TO ORDER
Attendee Name Title Status Arrived
Toni Troutner Council President Present
Bill Boyce Councilmember Present
Brenda Fincher Councilmember Present
Satwinder Kaur Councilmember Present
Marli Larimer Councilmember Present
Zandria Michaud Councilmember Present
Les Thomas Councilmember Present
Dana Ralph Mayor Present
II. PRESENTATIONS
1 2021-2022 Biennial Budget Paula Painter 90 MIN.
Finance Director, Paula Painter walked the Council through the Mayor’s 2021-
2022 Proposed Budget.
The 2021-22 revenue funds were reviewed, including detailed information on
all funds: general, special, debt service, capital project, enterprise and
internal service funds. Painter provided information on the revenue changes
from 2020 through the proposed 2022 numbers and the revenue sources.
Details on the major revenue changes to the property tax, sales tax, and
utility tax, B&O tax, licenses and permits, intergovernmental revenue,
charges for services, fines and forfeitures, miscellaneous revenue, and
transfers in were explained.
Painter reviewed the various expenditure assumptions for salary increases,
health plans, retirement, supplies and services.
Painter reviewed the expenditures by department for each fund in addition to
reviewing the position counts by fund for 2020 through 2022. The number of
full time employees per thousand population for the years 2013-2022 were
reviewed that ranged from 5.2 to 5.6 for the City of Kent. Painter responded
to councilmember’s questions and Matheson explained the FTE count in the
Administration Department.
The general fund expenditures by department were reviewed in addition to
City Council Workshop Workshop Special
Meeting
Minutes
September 29, 2020
Kent, Washington
Page 2 of 4
the major changes that impact the general fund.
Painter went over the timeline for upcoming regular and special workshops
and council meetings. Painter anticipates seeking a budget recommendation
from the Council during the November 10th Committee of the Whole so that
the Council may adopt the budget on November 17th.
Painter requested that councilmembers send all of their budget questions to
her so that she can prepare responses and provide them during an upcoming
workshop. The paper copies of the budget book will be delivered to
councilmember’s City mailbox as soon as they are available.
2 HB1590 Sales and Use Tax for
Affordable Housing
Merina Hanson
Adam Long
15 MIN.
Human Services Manager, Merina Hanson provided an overview of House Bill
1590 that was approved by the legislature in 2020 and wasn’t really a
substantive policy change; it is mostly just speeding up the process for
enacting this tool.
HB 1590 allows King County to councilmanically impose a sales tax of up to
1/10th of 1 percent countywide. That authority to implement the sales tax is
extended to cities if the County doesn’t take action by September 30th.
A minimum of 60% of the funds collected must be used for -
· Construction of affordable housing
· Construction of mental and behavioral health facilities
· Funding the operation and maintenance costs of newly constructed affordable
housing, facilities providing housing-related services, or evaluation and
treatment centers.
The facilities and programs funded through the levy must serve those below
60% Area Median Income - including individuals with mental illness,
veterans, senior citizens, homeless families with children, unaccompanied
homeless youth, persons with disabilities, or domestic violence victims.
The remainder of the money must be used for operation, delivery or
evaluation of mental and behavioral health treatment programs and services
or housing-related services.
If King County does not impose the full tax right by September 30th, then
any city can submit a proposition to voters or impose their new councilmanic
authority to impose the whole or remainder of the sales and use tax rate.
If the County does impose the full tax rate but is after a city has imposed
the tax (which could be done after September 30th) then the county must
provide a credit against its tax for the full amount imposed by a city.
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Meeting
Minutes
September 29, 2020
Kent, Washington
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The County is focusing on housing 2,000 chronically homeless residents by
October of 2020 - so targeting 30% AMI or below. They will immediately
start to use them for emergency and affordable housing and then the long-
term goal will be to convert those units to permanent supportive housing
while also developing additional affordable housing.
The Initial Plan also includes a mobile behavioral intervention program as an
alternative to the use of law enforcement. It would connect clients to housing
that was created and/or operated with the Health through Housing revenues.
They also plan to eventually use some of the funds to build the capacity of
community-based organizations. And they plan to line out the process for
siting affordable housing and behavioral health facilities beginning in 2022
(so after this initial focus on motels).
The County plans on using an equity and social justice impact review process
and also consult with any cities that they plan to site a capital project in.
They will prioritize the 2021 proceeds for projects within any city that
submits a written statement of support. And then in accordance with the
RCW they will plan to spend at least 30% of funds collected in cities with
over 60,000 residents in the community that generated those funds.
The early estimate is that Kent would generate close to $2.8 million if the
city was to impose the tax locally before the county imposes it countywide.
Assistant City Attorney, Adam Long walked the Council through the proposed
ordinance.
In 2020, Washington State enacted House Bill 1590 (Chapter 222, Laws of
2020), which amended RCW 82.14.530 to allow local governments to impose
an additional sales and use tax to fund investments in affordable housing and
related services.
As amended, RCW 82.14.530 allows King County to impose an additional
sales and use tax at a rate of up to one-tenth of one percent. However, if
King County does not impose the tax, or the full rate of the tax authorized, by
September 30, 2020, the City of Kent may impose the whole sales and use
tax rate or the remainder of the rate. If the County imposes the tax
authorized by RCW 82.14.530 after the City of Kent has imposed the tax, the
County must provide a credit against its tax for the full amount of tax
imposed by the City. By acting first, the full amount of the tax revenue will
remain in the Kent community, and use of those funds will be controlled by
the City.
City Council Workshop Workshop Special
Meeting
Minutes
September 29, 2020
Kent, Washington
Page 4 of 4
If the City imposes the tax, there are statutory restrictions on the use of the
revenue. A minimum of sixty percent of the moneys collected from this tax
must be used for constructing affordable housing, constructing mental and
behavioral health-related facilities, or funding the operations and
maintenance costs of new units of affordable housing and facilities where
housing-related programs are provided, or newly constructed evaluation and
treatment centers.
There are also restrictions regarding the population the additional funding
may be used to serve. The affordable housing and facilities providing
housing-related programs may only be provided to persons whose income is
at or below sixty percent of the median income of King County and are
persons with behavioral health disabilities, veterans, senior citizens,
homeless families with children, unaccompanied homeless youth or young
adults, persons with disabilities, or domestic violence survivors.
The remainder of the moneys collected from this tax must be used for the
operation, delivery, or evaluation of mental and behavioral health treatment
programs and services or housing-related services.
To date, King County has not imposed the additional sales and use tax
authorized by RCW 82.14.530. By acting now, the City will receive 100% of
the tax revenue authorized and will retain control over how the funds are
used in the community.
Mayor Ralph advised that King County referred an item to their October 6th
Committee of the Whole with the intent to leverage this opportunity to
impose the tax.
Councilmembers expressed their concern over imposing a new tax, but also
agreed that they would rather impose the tax so that Kent could control the
use of the funds within the City.
Mayor Ralph indicated that if the Council wishes to adopt an ordinance
imposing the tax, they may need to do so during an emergency meeting.
Meeting ended at 7:11 p.m.
Kimberley A. Komoto
City Clerk