Funding Tukwila Fire Services through Annexation to the Kent RFA - PowerPoint PPT Presentation

Funding Tukwila Fire Services through Annexation to the Kent RFA Using Taxes and Fire Benefit Charges For Sustainable Fire Services in Tukwila Part 2 October 28, 2015 Tukwila Steering Committee Meeting 1

Funding Tukwila Fire Services through Annexation to the Kent RFA Using Taxes and Fire Benefit Charges For Sustainable Fire Services in Tukwila Part 2 October 28, 2015 Tukwila Steering Committee Meeting 2

RFA Capital Commitment • Summary - RFA commitment – Station 51 construction begins 2017 open 2021 – Station 52 open by 2023 – Station 53 and 54 later 2030 – 2033 – Capital equipment replacement cycles • 20 years heavy duty Tukwila 15 years • 7 years medium duty Tukwila 10 years • 10 years light duty Tukwila 10 years • Other equipment per requirements October 28, 2015 Tukwila Steering Committee Meeting 3

RFA Capital Commitment • Summary RFA commitment (cont.) – Operational and most capital funding – Additional Aid Car and Engine to maintain reliability – Additional staffing for: • Distribution 53 as required • Additional units as required October 28, 2015 Tukwila Steering Committee Meeting 4

Tukwila Capital Assistance to RFA • Assistance needed from Tukwila – Continue to fund life cycle replacements 2016 • $565,000 or in kind purchases – SCBA? – Continue to fund life cycle replacements 2017 • $565,000 or in-kind purchases – PPE? – Cost to support cash flow for Stations • Interest and fees of $10 million - 12 yr. Bond • Estimated at $2,453,540 – Total cash or in-kind = $3,583,540 October 28, 2015 Tukwila Steering Committee Meeting 5

Tukwila Capital Assistance to RFA • Assistance needed from Tukwila – Assurance of fire impact fees: • Tukwila & RFA ILA for Impact Fees – Current Planned Environment through 2035 » 10 million plus square feet commercial space » 3,000 plus Residential housing units – Tukwila assures impact fee of $7.039 million: » 80% of expected commercial space • $4.75 Tukwila South Mitigation » 55% of expected new housing units October 28, 2015 Tukwila Steering Committee Meeting 6

Tukwila Capital Assistance to RFA • Summary - Tukwila commitment – $3.58 million cash or in-kind – Financial assurances • $2.29 million fire impact fees ($7.039 - $4.75 contract) – ILA with RFA for fire impact fee pass-through – 80% of Tukwila South total build out – 53% of housing build-out October 28, 2015 Tukwila Steering Committee Meeting 7

October 28, 2015 Tukwila Steering Committee Meeting 8

The Process • Summary – Cost of sustaining services compared to current year “2015” costs • Tukwila estimates sustainability at a cost of $2.68 per thousand of assessed value – Open timeline for capital – Estimated at $0.47 per thousand or $3.15 total • RFA estimates sustainability at a cost of $2.78 – Capital timeline established October 28, 2015 Tukwila Steering Committee Meeting 9

Fire Benefit System FBC Designed for Tukwila’s Unique Service Area 10

Kent Fire Authority Fire Benefit Charge Funding System Total Annual FBC $1.00 Tax Fire Assessment Levy (Size, Use & Risk) Assessments Tukwila FBC begins at 58% of ops budget in 2017 Declines through 2035 11

Tukw ila Service Area FBC 12

FBC System by Property Classification 13

Preliminary FBC Development Operations and Capital Funding RFA Distribution of Fire Fees (Tax + FBC) by Property Classification in Tukwila Homes - 19% Apartments - 9% Mobile Homes - 002% Commercial - 72% 14

Preliminary FBC Development Operations and Capital Funding Distribution of tax based funding at $2.68 (Tukwila estimated cost) by Property Classification in Tukwila Homes-29% Apartments - 9% Mobile Homes - .005% Commercial - 62% 71% Apartments and Commercial 15

Preliminary FBC Development Operations and Capital Funding RFA Funding - Total Fire Fees (Tax + FBC) by use Homes & Mobile Homes - 18.78% Apartments & Commercial - 81.22% 16

Preliminary FBC Development Operations and Capital Funding Tukwila Funding - Distribution of taxes at $2.68 by use Homes & Mobile Homes - 29% Apartments & Commercial - 71% 17

Preliminary FBC Development Residential Comparisons Max Size in Class Avg. Size in Class Percent of Total Total Houses in Equivilant Levy Units in Class Total Fire Fee Capitalized Equiv Levy Avg Value Avg FBC Tukwila Avg Tax Change Class 1799 1,922 46.66% 1,922 1,144 $133,194 $133.19 $201.12 $334.31 $2.51 $2.68 ($0.17) 2699 1,282 31.12% 1,282 2,250 $216,460 $216.46 $316.60 $533.06 $2.46 $2.68 ($0.22) 3599 684 16.61% 684 3,048 $270,712 $270.71 $449.52 $720.23 $2.66 $2.68 ($0.02) 4999 196 4.76% 196 4,050 $348,874 $348.87 $641.06 $989.93 $2.84 $2.68 $0.16 None 35 0.85% 35 5,964 $534,551 $535.55 $1,074.61 $1,609.16 $3.01 $2.68 $0.33 4,119 100.00% 18

Preliminary FBC Development Residential Comparisons Home Costs Compared to Tukwila Option of $2.68 Per Thousand Only 231 Homes Pay more than the Tukwila Option < $2.50 Per Thousand - 31% < $2.60 Per Thousand - 47% < $2.70 Per Thousand - 17% > $2.70 Per Thousand - 5% 19

Preliminary FBC Development Residential Comparisons Percentage of Homes Paying More or Less than Tukwila Capital Option of $2.68 Homes to Pay Less - 94.39% Homes to Pay More - 5.61% 20

Preliminary FBC Development Apartment Comparisons Percent of Total Units Tukwila Capitalized Max Size in Class Avg. Size in Class Parcels in Class Equivilant Levy Total Fire Fee Total Units Equiv Levy Avg Value Avg FBC Avg Tax Change 14,999 66 15.79% 497 778 $78,794 $78.79 $220.25 $299.04 $3.79 $2.68 $1.11 49,999 30 34.86% 1,097 835 $78,641 $78.64 $216.36 $295.00 $3.75 $2.68 $1.07 139,999 14 36.70% 1,155 887 $89,931 $89.93 $304.52 $394.45 $4.38 $2.68 $1.70 199,999 2 12.65% 398 806 $80,695 $80.69 $245.35 $326.04 $4.04 $2.68 $1.36 112 100.00% 3,147 All Apartments will pay more than $2.68 equivalent levy Revenue at $2.68 = $700,601 Revenue with FBC system = $1,057,617 - +50% 21

Preliminary FBC Development Apartment Comparisons Percentage of Apartments Paying More or Less than Tukwila Capital Option of $2.68 Apartments to Pay Less - 0% Apartments to Pay More - 100% 22

Preliminary FBC Development Commercial Comparisons Percent of Total Parcels Percent of Total Square Tukwila Capitalized Max Size in Class Avg. Size in Class Footage by Class Equivalent Levy Parcels in Class Total Fire Fee Equal Levy AVG Value AVG FBC AVG Tax Change 3999 106 19.45% 2,289 0.91% $832,136 $832 $614 $1,446 $1.74 $2.68 ($0.94) 9999 95 17.43% 7,109 2.52% $1,143,398 $1,143 $1,548 $2,691 $2.35 $2.68 ($0.33) 29999 127 23.30% 18,611 8.83% $2,093,104 $2,039 $3,615 $5,708 $2.73 $2.68 $0.05 99999 145 26.61% 57,789 31.31% $6,107,586 $6,108 $11,760 $17,638 $2.89 $2.68 $0.21 199999 49 8.99% 133,014 24.35% $11,506,163 $11,506 $24,690 $36,197 $3.15 $2.68 $0.47 999999 23 4.22% 373,296 32.08% $30,520,187 $30,520 $74,429 $102,949 $3.37 $2.68 $0.69 545 100.00% 23

Preliminary FBC Development Commercial Comparisons Percentage of Commercial Paying More or Less than Tukwila Capital Option of $2.68 <4% total Square Feet Commercial Parcels Paying Less - 36.88% Commercial Parcels Paying More - 63.12% 24

Specific Commercial • Large Retailer Properties – Tukwila Without RFA • $2.89 million value @ $2.68 = $775,515.08 • $2.89 million value @ $0.47 = $136,004.51 • Total = $911,519.60 – With RFA Approval - $24.7 mil = vacant land • $2.89 million value @ $1.00 = $289,371.30 • Fire Benefit Charge = $346,051.98 • Total = $635,423.28 25

Specific Commercial • Multiple Warehouse Owner – 64 Properties – Tukwila Without RFA • $2.89 million value @ $2.68 = $494,076.22 • $2.89 million value @ $0.47 = $ 86,647.70 • Total = $580,723.92 – With RFA Approval – $64 mil AV = vacant land • $2.89 million value @ $1.00 = $184,356.80 • Fire Benefit Charge = $331,178.72 • Total = $515,535.52 26

Questions 27