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

8 October 28, 2015 Tukwila Steering Committee Meeting

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

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Kent Fire Authority Fire Benefit Charge Funding System

$1.00 Tax Levy

FBC Assessment

(Size, Use & Risk)

Total Annual Fire Assessments

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Tukwila FBC begins at 58% of ops budget in 2017 Declines through 2035

Tukw ila Service Area FBC

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FBC System by Property Classification

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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%

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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%

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Preliminary FBC Development

Operations and Capital Funding

Tukwila Funding - Distribution of taxes at $2.68 by use

Homes & Mobile Homes - 29% Apartments & Commercial - 71%

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Preliminary FBC Development

Residential Comparisons

Max Size in Class Units in Class Percent of Total Total Houses in Class

• Avg. Size in Class

Avg Value Avg Tax Avg FBC Total Fire Fee Equiv Levy Tukwila Capitalized Equivilant Levy Change

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%

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Preliminary FBC Development

Residential Comparisons Home Costs Compared to Tukwila Option of $2.68 Per Thousand

< $2.50 Per Thousand - 31% < $2.60 Per Thousand - 47% < $2.70 Per Thousand - 17% > $2.70 Per Thousand - 5%

Only 231 Homes Pay more than the Tukwila Option 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%

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Preliminary FBC Development

Apartment Comparisons

All Apartments will pay more than $2.68 equivalent levy Revenue at $2.68 = $700,601 Revenue with FBC system = $1,057,617 - +50%

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Max Size in Class Parcels in Class Percent of Total Units Total Units

• Avg. Size in Class

Avg Value Avg Tax Avg FBC Total Fire Fee Equiv Levy Tukwila Capitalized Equivilant Levy 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

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%

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Preliminary FBC Development

Commercial Comparisons

Max Size in Class Parcels in Class Percent of Total Parcels

• Avg. Size in Class

Percent of Total Square Footage by Class AVG Value AVG Tax AVG FBC Total Fire Fee Equal Levy Tukwila Capitalized Equivalent Levy 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

Commercial Parcels Paying Less - 36.88% Commercial Parcels Paying More - 63.12%

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<4% total Square Feet

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

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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

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Questions

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