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

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To S hare Information

• n REVENUE

OPTIONS to address growing expenses. The Council at a later date will give direction

• n the way forward.

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• 1. S
• me current revenues

compared to other entities

• 2. Available Revenue

Options

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Voted Non- voted Total %

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%

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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 Zone

• 0.11740

0.11740 0.86% 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%

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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

Voted 56% Non- voted 44%

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City, $290.32 FWPS , $1,621.16 King County, $354.91 Washington S tate, $521.31 Flood, $30.19 Port, $39.32 Fire, $470.06 Library, $115.85 EMS , $67.40

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

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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

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Federal Way

1.13 1.19 1.25 1.4 1.42 1.3 1.2 1.13 0.97 1.04

Kent

1.41 1.51 1.58 1.65 1.69 1.57 1.48 2.36 2.18 2.36

Auburn

2.20 2.05 2.08 2.17 2.10 2.08 1.93 1.82 1.49 1.49

Renton

2.61 2.71 2.83 3.15 3.10 3.1 2.83 2.71 2.37 2.62

Seattle

2.62 2.77 2.62 3.05 3.29 3.58 3.36 3.23 2.86 3.07

SeaTac

2.89 3.00 3.16 3.10 3.10 2.88 2.80 2.58 2.34 2.45

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1 1

• 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

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

Equal Application of Utility Tax

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S everal Utility Districts are serving Federal Way

• 1. Water:
• 1. Lakehaven
• 2. Tacoma Water
• 3. Highline Water –

North

• 4. Private - S
• uth
• 2. S

ewer

• 1. Lakehaven
• 2. Midway S

ewer – North

• 3. Private - S
• uth

Utility Tax

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Equal Application of Utility Tax

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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

• 1. Current Rate is 7.75%
• 2. Current rate paid by

water & sewer is 0%

• 3. S
• me residents pay

Utility Tax

• 4. S
• me Utility Districts

pay Franchise Fee

Equal Application of Utility Tax

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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 Utility Tax on a bimonthly billing cycle

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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%

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Lakehaven Resolution 2016-1262

• Proposing annual rate growth of between

1%

• 2%

from 2017 through 2020

Affected Businesses

• P

AEC

• Wild Waves
• Movie Theater

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• Usually based on revenue
• Requires additional staff
• Tax payer Data S

haring Agreement

• Cities with B & O Tax

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City Manufacturing Retail Services Wholesale

• Bus. Reg.

Burien 0.001 0.001 0.001 0.001 $75 - $150 Des Moines 0.002 0.002 0.002 0.002 $50 - $750 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

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

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

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