HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 11/14/2017Kent City Council Special Workshop
Minutes
November L4,2OL7
Kent, Washington
Date:
Time:
Place:
Attending:
Approved LL/2L/L7
November L4,2OL7
5 p.m.
Council Chambers East/West
Bill Boyce, Council President
Tina Budell, Councilmember
Jim Berrios, Councilmember
Brenda Fincher, Councilmember
Dennis Higgins, Councilmember
Les Thomas, Councilmember
Council President Boyce opened the meeting at 5:04 p.m.
Aqenda:
2018 MID.BIENNIUM BUDGET REVIEW
Aaron BeMiller, Finance Director, provided information regarding the 2018 Mid-
Biennium Budget.
Aaron indicated the remaining issues include:
The use of property tax and use of banked property tax
Quiet Zone funding
Increasing the square footage tax
Increasing the external utility tax on private utílities
1. The Use of Prooerty Tax and Use of Banked Property Tax
Aaron presented details regarding the General Fund Six-Year Forecast, including
revenue and expenditure assumptions.
Aaron provided details regarding the Six-Year Forecast and the use of:
o $2.25m in banked capacity in 2OLB, $1.5m in 2OL9, and the remaining
$2.6m in 2O20.o $4.5m Banked capacity in 2018 and the remaining 91.9m in 2020. Full banked capacity of $6.4m in 2018
Aaron provided revenue scenarios for the cumulative to/o growth over time and the
cumulative to/o incremental growth over time.
Property tax assessed valuation and levy rates and the impacts to Kent residents
were provided with regards to the use of 92.25m, 94.5m and 96.4m banked
capacity for 2018.
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Kent City Council Special Workshop
Minutes
November L4,2Ot7
Kent, Washington
Approved tL/2LlL7
The council requested additional information from the Finance Department
regarding the total impacts to residents for each of the banked property tax
assumptions. Aaron indicated that any information presented would be based on
assumptions.
Derek Matheson, Chief Administrative Officer, advised that the City will provide
scenarios for the impacts of voter approved property tax levies to a house valued at
$300,000 and $500,000.
2. Quiet Zone Funding
Aaron provided information regarding quiet zone funding using general fund
reserves over 18o/o - $1.4m, funds from the 20L7-2OL8 Street Capital Budget -
$600,000, and Capital Resource Funds - $1m. Aaron indicated the Capital
Resources Fund will be used to cover any costs in excess of $3m.
Tim LaPorte, Public Works Director, and Chad Bieren, Deputy Public Works Director,
provided additional details regarding the Quiet Zone Project that would include 13
total crossings on both the Union Pacific and Burlington Northern Railroad tracks.
The Council sought details on when the cost estimates will be finalized. Chad
ensured that the City will make this project as cost-effective as possible.
3. Increasing the B&O Souare Footage Tax
Aaron provided estimated impacts of doubling the square footage tax and provided
uses for the additional revenues that included depositing funds into the Capital
Resources Fund and budget Parks capital, or for any good governmental purpose.
Aaron reviewed scenarios if the square footage tax threshold is increased to $1m,
doubling the manufacturing/retailing rate, and maximizing the wholesaling/services
rate.
The Council requested that the Finance Department provide scenarios of businesses
with small, medium, and large square footage and the proposed impacts with the
proposed increase to the square footage tax.
4. Increasing the external utility tax on orivate utilities
Aaron indicated the current external utility tax on private utilities is 60lo and the tax
could be increased to Bolo, that increase requires a vote of the people. The increase
would generate an additional $4.2m in revenue. The additional revenue would be
used for public safety to fully-fund the Police Depaftment, provide additional
staffing to the Legal Department, the courts, and corrections.
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Kent City Council Special Workshop
Minutes
November t4,2Ot7
Kent, Washington
Approved LL/TL|L7
The estimated annual increase to a household of four would be $137.00.
Aaron BeMiller advised of upcoming dates of note:
. Council Workshop - Final Decisions- November 2L, 20L7
. Operations Committee - Budget Review and Recommendation - December 5,
2017. Council Meeting - Adoption of 2018 Property Tax Levy and Adoption of the
2018 Budget Adjustment - December L2,2017
The meeting concluded at 6:35 p.m.
City Clerk
November L4,2OL7
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