City Council Special Meeting February 21, 2017 Presented by Ad - PDF document

City Council Special Meeting February 21, 2017 Presented by Adé Ariwoola, Finance Director

To S hare Information on REVENUE OPTIONS to address growing expenses. The Council at a later date will give direction on the way forward. 2

1. S ome current revenues compared to other entities 2. Available Revenue Options 3

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Non- Voted Total % voted City - 1.18504 1.18504 8.1% FWPS 6.74731 - 6.74731 46.4% King County 0.55569 0.92548 1.48027 10.2% Washington S t. - 2.16898 2.16898 14.9% Cnty Flood Zone - 1.12980 0.12980 0.9% Port of S eattle - 0.16954 0.16954 1.2% Fire District #39 0.41030 1.50000 1.91030 13.1% Library 0.05275 0.42439 0.47714 3.3% EMS 0.28235 - 0.28235 1.9% 8.04840 6.50233 14.55073 100% VOTED: 8.04840 or 55.3% NON-VOTED: 6.50233 or 44.7% 5

Voted Non-voted Total % City - 1.13118 1.13118 8.27% FWPS 6.31715 - 6.31715 46.18% King County 0.62438 0.75856 1.38294 10.11% Washington S t. - 2.03205 2.03205 14.85% County Flood - 0.11740 0.11740 0.86% Zone Port of S eattle - 0.15334 0.15334 1.12% Fire District #39 0.33237 1.50000 1.83237 13.39% Library 0.05000 0.40118 0.45118 3.30% EMS 0.26305 - 0.26305 1.92% 7.58695 6.09371 13.68066 100% VOTED: 7.58695 or 55.5% NON-VOTED: 6.09371 or 44.5% 6

Median Residence Value - $252,000 Property Tax Rate - $13.93066/ 1,000 Tax amount - $3,510.53 Voted $1,948.34 Non-voted $1,562.19 Non- voted Voted 44% 56% 7

Median Residence Value - $252,000 Property Tax Rate - $13.93066/ 1,000 Tax amount - $3,510.53 Voted $1,948.34 Non-voted $1,562.19 Flood, $30.19 Library, EMS , $67.40 City, $290.32 $115.85 Port, $39.32 Fire, $470.06 Washington S tate, $521.31 FWPS , $1,621.16 King County, $354.91 8

Tax Payment Distribution by District • Washington S tate $ 521.31 • King County 354.92 • City 290.32 • FWS D 1,621.16 • Fire 470.06 • Port 39.32 • Library 115.85 • EMS 67.40 • Flood 30.19 Total tax $3,510.53 9

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 Federal 1.13 1.19 1.25 1.4 1.42 1.3 1.2 1.13 0.97 1.04 Way 1.41 1.51 1.58 1.65 1.69 1.57 1.48 2.36 2.18 2.36 Kent 2.20 2.05 2.08 2.17 2.10 2.08 1.93 1.82 1.49 1.49 Auburn 2.61 2.71 2.83 3.15 3.10 3.1 2.83 2.71 2.37 2.62 Renton 2.62 2.77 2.62 3.05 3.29 3.58 3.36 3.23 2.86 3.07 Seattle 2.89 3.00 3.16 3.10 3.10 2.88 2.80 2.58 2.34 2.45 SeaTac 10

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A. Equal application of Utility Tax B. Admissions Tax - Done up to $0.60 C. Permit Fees - Done D. Business Registration - Done E. B & O Tax F. TBD - Declined 12

Equal Application of Utility Tax Taxable Utilities (a) Water (b) S ewer (c) Gas (d) Electric (e) S tormwater (f) Phone (g) Cell phone (h) Pager (i) Cable 13

Utility Tax S everal Utility Districts are serving Federal Way 1. Water: 1. Lakehaven 2. Tacoma Water 3. Highline Water – North 4. Private - S outh 2. S ewer 1. Lakehaven 2. Midway S ewer – North 3. Private - S outh 14

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Equal Application of Utility Tax Service Providers of Water and Sewer within the City of FW 1. Lakehaven – Water and Sewer 1. 3.6% Franchise Fee 2. Fire Protection Charges 3,199 hydrants @ $49.84/ qtr ($638k annually) 2. Tacoma Water – Water only 1. 8% Utility tax on our residents 2. Fire Protection Charges ($157k annually) 3. Highline Water – Water only - North 1. No agreement 2. City of Des Moines – 6% 4. Private – Water and Sewer South 5. Midway Sewer – Sewer only - North 17

Equal Application of Utility Tax 1. Current Rate is 7.75% 2. Current rate paid by water & sewer is 0% 3. S ome residents pay Utility Tax 4. S ome Utility Districts pay Franchise Fee 18

Utility Tax on a bimonthly billing cycle Current Billing Amount 7.75% Tax $50.00 $3.88 $80.00 $6.20 $100.00 $7.75 $120.00 $9.30 $140.00 $10.85 $160.00 $12.40 19

Equal Application of Utility Tax 1. City of Puyallup 8% 2. City of Pacific 6% 3. City of Everett 6% 4. City of Tacoma 6% 5. Proposed 7.75% Lakehaven Resolution 2016-1262 • Proposing annual rate growth of between 1% - 2% from 2017 through 2020 20

Affected Businesses • P AEC • Wild Waves • Movie Theater 33

• Usually based on revenue • Requires additional staff • Tax payer Data S haring Agreement • Cities with B & O Tax 22

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City Manufacturing Retail Services Wholesale Bus. Reg. Burien 0.001 0.001 0.001 0.001 $75 - $150 Des 0.002 0.002 0.002 0.002 $50 - $750 Moines Kent 0.00046 0.00046 0.00152 0.00152 $50-713.93 Renton 0.00085 0.0005 0.00085 0.00085 $50 - $110 S eaTac X X X X $50 - $9,500 Auburn X X X X $50 + $63 for Insp 24

Declined • ST3 Impact. • Property tax • 25cent/ $1,000 • Median home - $252k - $63 • 1-1-17 • S ales tax • additional 0.5% • From 9.5% to 10% • 4-1-17 • MVT • Current 0.3% MVET thru 2028 • additional $80/ $10,000 vehicle • Family with 2 cars @ $20k - $320 • 3-1-17 25

Direct staff on additional information needed. Mayor’s Recommendation will be forthcoming after future Study. 39

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