HomeMy WebLinkAboutFIN 2018-04-17 COMPLETE AGENDA PACKETCity of Tukwila
Finance Committee
o De'Sean Quinn, Chair
o Dennis Robertson
o Kate Kruller
AGENDA
TUESDAY, APRIL 17, 2018 — 5:30 PM
HAZELNUT CONFERENCE ROOM
(At east entrance of City Hall)
Distribution:
D. Quinn
D. Robertson
K. Kruller
V. Seal
Z. Idan
Mayor Ekberg
D. Cline
C. O'Flaherty
L. Humphrey
Item
Recommended Action
Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. An ordinance amending Ordinance No. 2559, relating to
a. Forward to 4/23 C.O.W.
Pg.1
Limited Tax General Obligation (LTGO) Bonds in the
aggregate principal amount of not to exceed $20,000,000.
and 5/7 Regular Mtg.
Peggy McCarthy, Finance Director
b. Fire and Parks impact fees:
b. Forward to 4/23 C.O.W.
Pg.11
(1) An ordinance updating fire impact fees.
and 5/7 Regular Mtg.
(2) An ordinance updating parks impact fees.
(3) A resolution amending the 2017-2022 Financial Planning
Model and the Capital Improvement Program (CIP).
(4) An ordinance amending the 2014 PROS Plan (Parks,
Recreation and Open Space Plan).
Peggy McCarthy, Finance Director
c. Business & Occupation (B&O) tax presentation.
c. Discussion only.
Pg.115
Laura Crandall, Finance Department
d. Sales tax revenue sector trends.
d. Discussion only.
Pg.121
Laura Crandall, Finance Department
e. 2017 4th Quarter Sales Tax and Miscellaneous report.
e. Discussion only.
Pg.147
Peggy McCarthy, Finance Director
f. 2018 February General Fund update.
f. Discussion only.
Pg.153
Vicky Carisen, Deputy Finance Director
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Tuesday, May 8, 2018
to. The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk(aTukwilaWA.gov) for assistance.
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
CC: Mayor Ekberg
DATE: April 11, 2018
SUBJECT: Ordinance Amending Bond Ordinance 2559, Finance the Public Works
Shops portion of the Public Safety Plan
ISSUE
Approve an ordinance amending bond ordinance 2559, allowing for bond maturities up to thirty years
and setting the expiration date for the Designated Representatives' authority at December 31, 2018.
BACKGROUND
The Public Safety Plan includes the siting and construction of Public Works Shops. On November 6,
2017, the City Council authorized the acquisition of property to site the shops, the justice center, and
fire station 54. On December 4, 2017, the City Council approved bond ordinance 2559 for the
issuance of up to $20 million of limited tax general obligation (LTGO) bonds for financing the
acquisition of property for the Public Works shops and to pay for soft costs through mid -2019. The
ordinance specified a final maturity date for the bonds of no later than December 1, 2038 and
granted authority to the Designated Representatives until one year after the effective date of the
ordinance.
DISCUSSION
A financial framework has been developed to model financing options for funding the Public Safety
Plan, including the Public Works shops. One financing option extends the $20 million LTGO bond
payment term to thirty years from the twenty-year period written into bond ordinance 2559. By
lengthening the maturity period, the annual debt service is reduced. Based on the assumptions
used by the City's financial advisor, PFM Financial Advisors LLC, in the attached Overview of Debt
Service Scenarios, the annual debt service savings using a 30 -year term rather than a 20 -year term
would be between $264,000 and $356,000 depending on whether interest only payments are made
during the construction period. Half of this annual savings would benefit the City's utility funds and
the other half would benefit the City's governmental funds.
The proposed amendment specifies that the final bond maturity date shall be no later than
December 1, 2048 and the authority granted to the Designated Representatives shall expire on
December 31, 2018. It is recommended that the City Council approve the amending ordinance to
allow for flexibility in structuring the bond sale and to reduce the estimated annual debt service
payments on the $20 million bonds.
RECOMMENDATION
The Council is being asked to approve the ordinance and consider this item at the April 23, 2018
Committee of the Whole meeting and subsequent May 7, 2018 Regular Meeting.
ATTACHMENTS
Draft amending bond ordinance.
Overview of Debt Service Scenarios, prepared by PFM Financial Advisors, LLC
Time Schedule for Bond Issuance
1
2
Frl'i 13) p6
Li n
•—:-) L1 u I
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO.
2559 RELATING TO THE ISSUANCE OF ONE OR MORE
SERIES OF LIMITED TAX GENERAL OBLIGATION BONDS
TO FINANCE AND/OR REIMBURSE COSTS RELATED TO
THE ACQUISITION OF LAND AND THE CONSTRUCTION,
IMPROVEMENT AND EQUIPPING OF MAINTENANCE AND
OTHER CITY FACILITIES; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council (the "Council") of the City of Tukwila, Washington
(the "City") has deemed it is in the best interest of the City to acquire certain parcels of
land, including through eminent domain, and to construct, improve and equip
maintenance and other City facilities (together, the "Project"); and
WHEREAS, after due consideration the Council adopted Ordinance No. 2559 on
December 4, 2017, authorizing the issuance and sale of one or more series of limited
tax general obligation bonds (the "Bonds") to pay all or a portion of the costs of the
Project and to pay costs of issuance for the Bonds; and
WHEREAS, the sale and issuance of the Bonds is contingent on satisfaction of
certain parameters relating to maximum interest rates, final maturity dates, redemption
terms and principal maturities as set forth in Ordinance No. 2559; and
WHEREAS, the Council now desires to amend Ordinance No. 2559 to extend the
final maturity date for the Bonds and other matters related thereto, as provided herein;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Definitions. Except as otherwise provided herein, definitions used in
this ordinance shall have the meanings set forth in Ordinance No. 2559.
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Page 1 of 4
3
4
Section 2. Amendment to Ordinance No. 2559: Section 12 (Sale of Bonds).
Section 12 (Sale of Bonds) of Ordinance No. 2559 is hereby amended to read as
follows:
Section 12. Sale of Bonds.
(a) Bond Sale. The Council has determined that it would be in the best interest of
the City to delegate to each Designated Representative, for a limited time, the authority
to determine the method of sale for each series of Bonds and to approve the final
interest rates, maturity dates, redemption terms and principal maturities for each series
of Bonds. Each series of Bonds issued pursuant to this ordinance may be issued at the
same or different times so long as each series complies with the terms hereof. Each
Designated Representative is hereby authorized to approve the issuance, from time to
time, of one or more series of Bonds and to approve whether the Bonds of such series
shall be sold in a private placement to a Direct Purchaser or to an Underwriter through
a competitive public sale or a negotiated sale, as set forth below.
(b) Direct Purchase. If a Designated Representative determines that the Bonds of
a series are to be sold by private placement, a Designated Representative shall select
the Direct Purchaser that submits the proposal that is in the best interest of the City.
Direct Purchase Bonds shall be sold to the Direct Purchaser pursuant to the terms of a
Loan Agreement.
(c) Negotiated Bond Sale. If a Designated Representative determines that the
Bonds of a series are to be sold by negotiated public sale, a Designated Representative
shall select the Underwriter that submits the proposal that is in the best interest of the
City. Such Bonds shall be sold to the Underwriter pursuant to the terms of a Bond
Purchase Contract.
(d) Competitive Sale. If a Designated Representative determines that the Bonds
of a series are to be sold at a competitive public sale, a Designated Representative
shall: (1) establish the date of the public sale; (2) establish the criteria by which the
successful bidder will be determined; (3) establish the criteria for a good faith deposit;
(4) cause notice of the public sale to be given; and (5) provide for such other matters
pertaining to the public sale as he or she deems necessary or desirable. A Designated
Representative shall cause the notice of sale to be given and provide for such other
matters pertaining to the public sale as he or she deems necessary or desirable. Such
Bonds shall be sold to the Underwriter pursuant to the terms of a Certificate of Award.
(e) Sale Parameters. Subject to the terms and conditions set forth in this Section
12, each Designated Representative is hereby authorized to approve the method of
sale and the final interest rates, aggregate principal amount, principal maturities, and
redemption rights for each series of Bonds in the manner provided hereafter so long as:
(1) the aggregate principal (face amount) amount of all Bonds issued from
time to time under this ordinance does not exceed $20,000,000;
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Page 2 of 4
(2) the final maturity date for each series of Bonds is no later than
December 1, 203e December 1. 2048;
(3) the aggregate purchase price for each series of Bonds shall not be less
than 98% of the aggregate stated principal amount of such series of Bonds, excluding
any original issue discount; and
(4) the true interest cost for each series of Bonds (in the aggregate for such
series) does not exceed 4.5%.
Subject to the terms and conditions set forth in this section, each Designated
Representative is hereby authorized to execute the appropriate Sale Document on
behalf of the City. The signature of one Designated Representative shall be sufficient to
bind the City. Following the execution of a Sale Document, a Designated
Representative shall provide a report to the Council describing the final terms of the
Bonds sold pursuant to such Sale Document and approved pursuant to the authority
delegated in this section.
The authority granted to the Designated Representatives by this Section 12 shall
expire on December 31. 2018. ore yoar after the effective date of th s crd r.ance. After
such date additional Council approval shall be necessary to sell and issue Bonds
pursuant to the terms of this ordinance.
(f) Delivery of Bonds; Documentation. Upon the passage and approval of this
ordinance and execution of the applicable Sale Document for a series of Bonds, the
proper officials of the City, including the Designated Representatives and the City Clerk,
are authorized and directed to undertake all action necessary for the prompt execution
and delivery of such series of Bonds to the purchaser thereof and further to execute all
closing certificates and documents required to effect the closing and delivery of the
Bonds in accordance with the terms of the applicable Sale Document. Such documents
may include, but are not limited to, documents related to a municipal bond insurance
policy delivered by an insurer to insure the payment when due of the principal of and
interest on all or a portion of such series of Bonds as provided therein, if such insurance
is determined by a Designated Representative to be in the best interest of the City.
Section 3. Severability; Ratification. Except as hereby amended, the remaining
terms and conditions of Ordinance No. 2559 are hereby ratified and confirmed in all
respects. All acts taken pursuant to the authority granted in this ordinance but prior to
its effective date are hereby ratified and confirmed. If any one or more of the covenants
or agreements provided in this ordinance to be performed on the part of the City shall
be declared by any court of competent jurisdiction to be contrary to law, then such
covenant or covenants, agreement or agreements, shall be null and void and shall be
deemed separable from the remaining covenants and agreements of this ordinance and
shall in no way affect the validity of the other provisions of this ordinance or of the
Bonds.
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5
6
Section 4. Corrections by City Clerk. Upon approval of the City Attorney and
Bond Counsel, the City Clerk is hereby authorized to make necessary corrections to
this ordinance, including but not limited to the correction of clerical errors; references to
other local, state or federal laws, codes, rules, or regulations; ordinance numbering and
section/subsection numbering; and other similar necessary corrections.
Section 5. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of the City, and shall take effect and be in full force
five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Pacifica Law Group LLP, Bond Counsel
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Page 4 of 4
Year
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
204
204
204
204
204
Tota
30 -Year
City of Tukwila, Washington
Limited Tax General Obligation Bonds, 2018
Overview of Debt Service Scenarios
20 -Year
30 -Year (Interest only until 2022)
20 -Year (Interest only until 2022)
Principal
4
5
6
7
8
interest
Debt Service
Principal
Interest
Debt Service
;'
Principal
Interest
Debt Service
$452,625
$452,625
$449,500
$449,500
$451,500
$451,500
$446,875
$446,875
$275,000
905,250
1,180,250
$545,000
899,000
1,444,000
903,000
903,000
893,750
893,750
285,000
891,500
1,176,500
570,000
871,750
1,441,750
903,000
903,000
893,750
893,750
300,000
877,250
1,177,250
600,000
843,250
1,443,250
903,000
903,000
893,750
893,750
315,000
862,250
1,177,250
630,000
813,250
1,443,250
$330,000
903,000
1,233,000
$690,000
893,750
1,583,750
330,000
846,500
1,176,500
660,000
781,750
1,441,750
345,000
886,500
1,231,500
725,000
859,250
1,584,250
350,000
830,000
1,180,000
695,000
748,750
1,443,750
365,000
869,250
1,234,250
765,000
823,000
1,588,000
365,000
812,500
1,177,500
730,000
714,000
1,444,000
385,000
851,000
1,236,000
800,000
784,750
1,584,750
385,000
794,250
1,179,250
765,000
677,500
1,442,500
400,000
831,750
1,231,750
840,000
744,750
1,584,750
400,000
775,000
1,175,000
805,000
639,250
1,444,250
420,000
811,750
1,231,750
885,000
702,750
1,587,750
425,000
755,000
1,180,000
845,000
599,000
1,444,000
445,000
790,750
1,235,750
925,000
658,500
1,583,500
445,000
733,750
1,178,750
885,000
556,750
1,441,750
465,000
768,500
1,233,500
975,000
612,250
1,587,250
465,000
711,500
1,176,500
930,000
512,500
1,442,500
490,000
745,250
1,235,250
1,020,000
563,500
1,583,500
490,000
688,250
1,178,250
975,000
466,000
1,441,000
510,000
720,750
1,230,750
1,075,000
512,500
1,587,500
515,000
663,750
1,178,750
1,025,000
417,250
1,442,250
540,000
695,250
1,235,250
1,125,000
458,750
1,583,750
540,000
638,000
1,178,000
1,075,000
366,000
1,441,000
565,000
668,250
1,233,250
1,185,000
402,500
1,587,500
565,000
611,000
1,176,000
1,130,000
312,250
1,442,250
595,000
640,000
1,235,000
1,240,000
343,250
1,583,250
595,000
582,750
1,177,750
1,185,000
255,750
1,440,750
625,000
610,250
1,235,250
1,305,000
281,250
1,586,250
625,000
553,000
1,178,000
1,245,000
196,500
1,441,500
655,000
579,000
1,234,000
1,370,000
216,000
1,586,000
655,000
521,750
1,176,750
1,310,000
134,250
1,444,250
685,000
546,250
1,231,250
1,440,000
147,500
1,587,500
690,000
489,000
1,179,000
1,375,000
68,750
1,443,750
720,000
512,000
1,232,000
1,510,000
75,500
1,585,500
725,000
454,500
1,179,500
755,000
476,000
1,231,000
760,000
418,250
1,178,250
795,000
438,250
1,233,250
795,000
380,250
1,175,250
835,000
398,500
1,233,500
835,000
340,500
1,175,500
875,000
356,750
1,231,750
880,000
298,750
1,178,750
920,000
313,000
1,233,000
920,000
254,750
1,174,750
965,000
267,000
1,232,000
970,000
208,750
1,178,750
1,015,000
218,750
1,233,750
1,015,000
160,250
1,175,250
1,065,000
168,000
1,233,000
1,070,000
109,500
1,179,500
1,120,000
114,750
1,234,750
1,120,000
56,000
1,176.000
1,175,000
58,750
1,233,750
I $18,105,000
$17,676,375
$35,781,375
$17,980,000
$11,323,000
$29,303,000
$18,060,000
$18,399,750
$36,459,750
$17,875,000
$12,207,875
$30,082,875
Scenarios assume AA MMD as of 4/2/2018 plus 50 basis points cushion, $10 per bond Underwriter's Discount, $140k costs of issuance
Prepared by PFM Financial Advisors LLC
4/3/2018
8
pfm
City of Tukwila, Washington
Limited Tax General Obligation Bonds, 2018
As of March 26, 2018
MARCH
M T W T F S
APRIL
S M T W T F
12 3 12 3 4 5 6 7 1 2 3 4 5
4 5 6 7 8 9 10 8 9 10 11 12 13 14 6 7 8 9 10 11 12
11 12 13 14 15 16 17 15 16 17 18 19 20 21 13 14 15 16 17 18 19
18 19 20 21 22 23 24 22 23 24 25 26 27 28 20 21 22 23 24 25 26
25 26 27 28 29 30 31 29 30 27 '':'28 29 30 31
City Finance Director/City Manager/Staff. City
Pacifica Law Group LLP (Bond Counsel). BC
PFM Financial Advisors LLC (Financial Advisor): PFM
References to "All Parties" includes City, BC, and PFM
Date
Event
Responsibility
3/20-21
City mince approve:
FOMC Meet n r
Ott fi Orden
until/Ci
3/26 • Send current draft POS and list of information needs PFM
3/30 • Good Friday
4/4 • Comments provided on first draft POS
[4/6] • Financing Team call to review POS
By 4/6 • Rating application submitted
4/10 • Second draft POS distributed
Mid -April • Unaudited 2017 financial statements available
4/17-20 • Washington Public Treasurers Association Conference (WPTA)
4/17 • Comments provided on second draft POS All Parties
4/18 • Draft rating materials distributed PFM
Week of 4/23 • Rating agency prep call/meeting City/PFM
4/25 • Comments due on draft rating materials All Parties
4/27 • Third draft POS distributed PFM
4/27 • Final rating materials distributed PFM
Week of 4/30 • Bond rating agency call City/PFM
Week of 4/30 • Due diligence call to review POS All Parties
5/1-2 • FOMC Meeting
5/4 • Final comments provided on POS All Parties
5/6-9 • Government Finance Officers Association Conference (GFOA)
5/8 • POS distributed for final sign -off PFM
5/9 • Final sign -off on POS provided All Parties
By 5/10 • Receive bond rating
5/10 • POS posted PFM
5/17 • Bond sale All Parties
5/21 • OS distributed for final sign -off PFM
5/22 • Final sign-off/OS posted All Parties
5/28 • Memorial Day
5/31 • Bond Closing All Parties
All Parties
All Parties
PFM
PFM
City
9
10
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
CC: Mayor Ekberg
DATE: April 10, 2018
SUBJECT: Update Fire and Park Impact Fees
ISSUE
Approve the following impact fee legislation:
1. an ordinance updating the fire impact fees
2.an ordinance updating the park impact fees
3.an ordinance amending the Park, Recreation and Open Space (PROS) Plan
4.a resolution amending the Capital Improvement Plan (CIP)
BACKGROUND
The City of Tukwila enacted Growth Management Act impact fees in 2008 to fund growth -driven needs in
fire and emergency services and recreation, parks, and open space. In 2017, the City engaged BERK
Consulting to update these rates to incorporate current growth projections and to respond to newly adopted
fire and parks capital needs.
BERK, in coordination with the staff Impact Fee Team, undertook an extensive study of the City's
historical, existing and projected growth in population, housing, and employment; examined capital
plans and facilities, the Park, Recreation and Open Space (PROS) Plan and Fire Master Plan, the level
of service standards and other pertinent information. The data was analyzed, summarized and computed
to produce a maximum allowable impact fee for each property type listed below:
• Residential —
1. single family
2. multifamily
• Commercial/Non-Residential
3. Retail
4. Office
5. Industrial
The preliminary impact fee results were presented to the Finance Committee on November 21, 2017. Staff
was directed to bring the item back to Committee after further analysis, outreach to the business community
and with policy options for consideration. In February 2018, the Council approved an amendment to the
BERK Consulting contract to provide resources should additional work by BERK be required to address
policy issues or other requests. To date, the amendment has not been exercised.
Staff has reviewed the fee model and made modifications as appropriate; the Capital Improvement Program
project pages have been updated for the proposed updates to the fire and park impact fee eligible projects;
the PROS plan has been updated to reflect an additional level of service standard for park and recreation.
The preliminary fees were compared with the fees of neighboring jurisdictions to assess regional
competitiveness and affordability. The proposed fees reflect a 40% reduction from the preliminary fees
bringing them to a level considered competitive in the region.
11
INFORMATIONAL MEMO
Page 2
Selected developers were invited to review and discuss the proposed fees with City staff. Two meetings
were held and the feedback included the following:
The fees should ...
• Allow easy and inexpensive change of land use (ie from retail to office).
• Be competitive when compared with total development costs of other neighboring jurisdictions.
• Have visible benefits that are easily understood by tenants.
• Be strategic in attracting development that complements existing businesses. Two suggestions
were to incentivize multifamily development and medical/dental offices in the central business
district to attract foot traffic.
In addition to the draft fire and park impact fee ordinances, the draft amended Recreation and Open Space
Plan and the draft amended Capital Improvement Program resolution, the following documents serve as
attachments to this memorandum
• "Tukwila Fire and Park Impact Fee Rate Study, 2018", prepared by BERK Consulting provides
background information on impact fees in general and specific data, assumptions and methodology
for computing the Tukwila park and fire impact fees.
• "Regional Impact Fee Comparison -Fire", compares proposed fire impact fees with fees charged by
the Puget Sound Regional Fire Authority, the Renton Fire Authority and the City of Issaquah.
• "Regional Impact Fee Comparison — Park", compares proposed park impact fees with fees charged
by the City of Renton, Edmonds, Issaquah, Redmond and Bothell.
• "Tukwila Impact Fee Comparison", compares the 2018 proposed fire and park impact fees with fees
from the 2008 study.
• "Selected Fire and Park Impact Fee Data", provides relevant data used in developing the 2018
proposed fees and the 2008 fees.
• "Fire Impact Fee Eligible Project and Capital Improvement Program Pages", lists the proposed fire
projects eligible for impact fees and the corresponding, updated CIP pages.
• "Park Impact Fee Eligible Projects and Capital Improvement Program Pages", lists the proposed
park projects and updated CIP pages.
DISCUSSION
Growth Management Act impact fees are those fees charged by a local government on new development
to recover a portion of the cost of capital facility improvements needed to serve that new development. The
Washington State Legislature outlined the intent of local impact fees in RCW 82.02.050.
Impact fees may be charged to help pay for: public transportation and road facilities; fire protection facilities;
schools; and public parks, open space, and recreation facilities. Local governments are authorized to
charge fees only for system improvements that are reasonably related to the new development, do not
exceed a proportionate share of the costs of necessary system improvements, and are only used for system
improvements that will reasonably benefit the new development (RCW 82.02.050(3)). In addition, cities'
"financing for system improvements to serve new development must provide for a balance between impact
fees and other sources of public funds" — i.e., impact fees cannot be the sole source of funding for system
improvements that address growth impacts.
The proposed fire impact fees are based on the estimated cost of adding capacity to respond to
development driven increases in fire service incidents. The proposed park impact fees are based on the
estimated cost of adding capacity to respond to increased demand for park and recreation facilities, both
growth related and due to changes in population.
Following are items for discussion and consideration stemming from questions that arose at the November
17, 2017 Finance Committee meeting and from the staff Impact Fee Team.
12 C:IUsers\Peggy-M\City of Tukwila\Finance - RevenuelImpact Fees\Council, legislation12018-0417_Into?vlemo_ImpactFees.docx
INFORMATIONAL MEMO
Page 3
Impact Fee Calculation Questions.
1. Why did the park impact fee for the retail land use category increase by 191% and the industrial land
use category increase by 133% while the other land use categories increased by a lower
percentage?
In the 2018 Impact Fee study, both the existing and the projected retail and industrial development square
footage is less than the 2008 study. With a smaller base in 2018 over which to spread the cost of
maintaining park capacity, the fee increased. Retail development existing square footage was measured
at 3.1 million less than 2008 and projected square footage at 1.38 million less. Industrial development
existing square footage was measured at 2.5 million less than 2008 and projected square footage at 1.8
million less.
2. Why did the fire impact fee for the retail land use category increase by 223% and the office land use
category decrease by 55% while the other land use categories increased by a lower percentage?
In the 2018 Impact Fee study, both the existing and the projected retail development square footage was
less than the 2008 study and both the existing and projected office development square footage was greater
than the 2008 study. For retail, with a smaller base in 2018 over which to spread the cost of maintaining
capacity, the fee increased. For office, with a larger base in 2018 over which to spread the cost of
maintaining capacity, the fee decreased. Additionally, the increase in fire incidents was higher
proportionately for retail than it was for office in the 2018 study. Retail existing square footage was
measured at 3.1 million less than 2008 and projected square footage at 1.38 million less. Office existing
square footage was measured at 5.6 million more than 2008 and projected square footage at 676 thousand
more. Retail fire incidents increased by 40% compared with the 2008 study while office fire incidents
increased by 28%.
3. Which land use classifications have been categorized as retail, office and industrial for impact fee
purposes?
A list of the land use classifications grouped by impact fee categories, "Land Use Classifications Aligned
with Impact Fee Categories" will be provided.
4. In the Capital Improvement Plan, how was the amount of annual impact fee expected to be
collected determined?
The annual expected impact fee collection was calculated based on historical actual collections over the
most recent three years, 2015, 2016 and 2017 of $172 thousand annually on average for fire impact fees
and $182 thousand annually on average for park impact fees. These amounts were then increased by the
total increase from the adopted 2008 fees to the proposed 2018 fees of 43% for fire and 83% for park. The
resulting amounts were rounded up to factor in expected increases in development activity in the next 10
years. The average annual fire impact fee estimate is $300 thousand and the average annual park impact
fee estimate is $400 thousand.
5. What was the priority for allocating the expected impact fees to the projects?
The expected park impact fees were first allocated to the existing project, Pedestrian Bridge. The expected
fire impact fees were first allocated to the new Fire Station 51 because it is the farthest along in terms of
design, then to the new Fire Station 52 next because its construction is imperative to maintain response
times after Fire Station 51 is relocated.
Impact Fee Policy Questions
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INFORMATIONAL MEMO
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6. Should special impact fee rates be established for educational facilities?
In the impact fee study, educational facilities are included in the Office land use category. Since conceivably
most of the students attending K-12 school in Tukwila are also residents of Tukwila and would therefore be
subject to the residential park impact fee, reducing the fee charged to K-12 educational facilities for
additional park capacity due to growth seems reasonable; not reducing the fee might produce a double
counting of park usage by students who are also residents. The proposed park impact fee has been
reduced by 80% on Exhibit B, Park Impact Fee Schedule, accordingly. Since the fire impact fee is based
on the occurrence and cost of fire incidents and several fire incidents occurred at educational facilities within
the analysis period, there is no recommendation to adjust or reduce the fire impact fee for educational
facilities.
7. Should an accessory dwelling unit (ADU) be charged impact fees?
Currently, the City of Tukwila allows only accessory dwelling units that are attached to the primary
residence; an impact fee is not charged on development of these units. Should the City revise its policy
and allow detached accessory dwelling units, the staff Impact Fee Committee recommends these units also
be exempt from impact fees to encourage the development of this modestly sized, affordable housing type
that makes use of existing infrastructure.
8. For fire impact fees, should the commercial/non-residential categories be further defined into more
specific, narrower categories such as the following?
Current Categories
COMMERCIAL/ NON-RESIDENTIAL
Retail
Office
Potential Additional Categories
COMMERCIAL/ NON-RESIDENTIAL
Retail
Office
Hotel/Motel/Resort
Restaurant/Lounge/Gambling
Retail other
Leisure
Medical care facility
Office other
Institutional
Church/religious
Education
Special Public Facilities
Industrial Industrial/manufacturing
Further defining the categories could add complexity to the administration of the fee. With the use
categories narrower and more defined, changes in land use by the property owners could trigger more
frequent reporting to the City and possibly payment of additional impact fees. To further categorize the
data, the City of Tukwila land parcels and fire incident data would need to be re-evaluated and re -
categorized based on the new categories. For the current study, staff recommends no changes to the five
land use categories used in the 2018 study.
9. Should additional adjustments be made to the proposed fire and park impact fees to increase
affordability and regional competitiveness or to encourage development of certain property types?
The proposed residential fire impact fees are comparable with the Puget Sound Fire Authority and are high
compared with the Renton Fire Authority. The commercial/non-residential fire impact fees are comparable
with both Regional Fire Authorities when considering the average fire impact fee charged to commercial
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property types by the Renton RFA. The park impact fees are considered comparable with the impact fees
charged by the cities analyzed. Staff has no recommendations for changes.
10. Should an update to the impact fee data and calculations be undertaken periodically?
Both the fire and park impact fee ordinances provide an automatic annual update based on the Construction
Cost Index for Seattle (June -June) published by the Engineering News Record in section 16.28.080.
The maximum fees that can legally be charged are the adjusted fees presented in the Tukwila Fire and
Park Impact Fee Rate Study, 2018, also shown in the impact fee ordinance Exhibits B — Fee Schedule.
The proposed fees represent a 40% reduction to bring them to a level considered competitive in the region.
The City Council can choose to increase the proposed fees to the maximum limit; the proposed fees can
be further reduced using the same reduction rate for all land use categories and for both impact fee types
— fire and park; the fees can be further reduced using a different reduction rate for each land use category
and for each impact fee type -fire and park; or the fees can be considered as presented. The business
community discussions made it clear that the City's fees would be considered in relation to the fees charged
by neighboring jurisdictions when development decisions are made. Strategic fee setting was encouraged
to incentivize desired development.
RECOMMENDATION
The Council is being asked to approve the fire impact fee ordinance, the park impact fee ordinance, the
Parks, Recreation and Open Space Plan amending ordinance, and the 2017-2022 Capital Improvement
Plan amending resolution and consider these items at the April 23, 2018 Committee of the Whole meeting
and subsequent May 7, 2018 Regular Meeting.
ATTACHMENTS
Draft fire impact fee ordinance.
• Exhibit A, Tukwila Fire and Park Impact Fee Rate Study, 2018
• Exhibit B Impact Fee Schedule - Fire
Draft park impact fee ordinance
• Exhibit A, Tukwila Fire and Park Impact Fee Rate Study, 2018
• Exhibit B Impact Fee Schedule - Park
Regional Impact Fee Comparison — Fire
Regional Impact Fee Comparison — Park
Tukwila Impact Fee Comparison Selected Impact Fee Data
Land Use Categories Aligned with Impact Fee Catgories
Draft Resolution Capital Improvement Plan Amendment (CIP)
• Fire Impact Fee Project List and Amended Capital Improvement Plan pages
• Park Impact Fee Project List and Amended Capital Improvement Plan pages
Draft Ordinance Parks, Recreation and Open Space amendment (PROS plan)
Amended PROS plan-
• page 2-6 with amendment highlighted
• page 4-10 with amendment highlighted
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RAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NOS.
2486 AND 2365, AS CODIFIED IN TUKWILA MUNICIPAL
CODE CHAPTER 16.26; REPEALING ORDINANCE NO. 2521
§4, 5 AND 6; REENACTING TMC CHAPTER 16.26, 'FIRE
IMPACT FEES," TO AMEND THE PROCESS FOR IMPOSING
AND ADMINISTERING FIRE IMPACT FEES TO BETTER
ADDRESS THE NATURE OF DEVELOPMENT ACTIVITY IN
TUKWILA; ADDING REGULATIONS RELATING TO ANNUAL
FIRE IMPACT FEE UPDATES; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2365 on March 5, 2012;
Ordinance No. 2486 on October 19, 2015; and Ordinance No. 2521 on December 5, 2016,
all related to impact fees; and
WHEREAS, the City may periodically update its impact fee schedules to reflect
changes in the cost of completing planned improvements and the fair share contribution
applicable to new growth; and
WHEREAS, on April 23, 2018, the Tukwila City Council, following adequate public
notice, held a public hearing on the draft ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Repealer. Ordinance Nos. 2486 and 2365 are hereby repealed in their
entirety.
Section 2. Repealer. Ordinance No. 2521, §4, 5 and 6 is hereby repealed; these
sections were codified as follows:
TMC Section 16.26.030, "Definitions"
TMC Section 16.26.120, "Exemptions"
TMC Section 16.26.125, "Residential Impact Fee Deferral"
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Section 3. TMC Chapter 16.26 Reenacted. Tukwila Municipal Code (TMC) Chapter
16.26 is hereby reenacted to read as follows:
CHAPTER 16.26
FIRE IMPACT FEES
Sections:
16.26.010 Authority and Purpose
16.26.020 Findings
16.26.030 Definitions
16.26.040 Fire Impact Fee Assessment
16.26.050 Use of Fire Impact Fees
16.26.060 Fire Impact Fee Capital Facilities Plan
16.26.070 Fire Impact Fee Formula
16.26.080 Annual Fire Impact Fee Updates
16.26.090 Individual Projects Fire Impact Fee Adjustments
16.26.095 Fire Impact Foe Deferral
16.26.100 Credits
16.26.110 Appeals
16.26.120 Exemptions
16.26.125 Residential Impact Fee Deferral
16.26.130 Refunds
16.26.140 Authority Unimpaired
Section 4. TMC Section 16.26.010 is hereby reenacted to read as follows:
16.26.010 Authority and Purpose
A. Authority. The City of Tukwila's impact fee financing program has been
developed pursuant to the City of Tukwila's policy powers, the Growth Management Act
as codified in Chapter 36.70A of the Revised Code of Washington (RCW).
B. Purpose. The purpose of the financing plan is to:
1. Develop a program consistent with Tukwila's Fire Department Capital
Facilities Plan and the Capital Improvement Program for joint public and private financing
of fire protection services necessitated in whole or in part by development within the City
of Tukwila;
2. Ensure adequate levels of public fire protection and service are consistent
with the current level of service standards;
3. Create a mechanism to charge and collect fees to ensure that development
bears its proportionate share of the capital costs of public fire protection facilities
necessitated by development; and
4. Ensure fair collection and administration of such fire impact fees.
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Section 5. TMC Section 16.26.020 is hereby reenacted to read as follows:
16.26.020 Findings
The City Council finds and determines that growth and development in the City create
additional demand and need for public fire protection facilities in the City, and the City
Council finds that growth and development should pay its proportionate share of the costs
of the facilities needed to serve the growth and development in the City. Therefore,
pursuant to RCW 36.70A and RCW 82.02.050 through 82.02.100, which authorize the
City to impose and collect impact fees to fund public facilities that serve growth, the City
Council adopts this ordinance to impose fire protection impact fees for fire protection
services. It is the Council's intent that the provisions of this ordinance be liberally
construed in establishing the fire impact fee program.
Section 6. TMC Section 16.26.030 is hereby reenacted to read as follows:
16.26.030 Definitions
Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when
given their usual and customary meaning. For the purposes of this ordinance, unless the
context or subject matter clearly requires otherwise, the words or phrases defined in this
section shall have the following meanings:
1. "Accessory residential structure" means a structure that is incidental and
subordinate to the principal residence on the property and is physically detached to the
principal residence, but does not include accessory dwelling units. For example, a
detached garage or storage shed for garden tools are considered accessory residential
structures.
2. "Accessory dwelling unit (ADU)" means a dwelling unit that is within or
attached to a single-family dwelling or in a detached building on the same lot as the
primary single-family dwelling. An ADU is distinguishable from a duplex by being clearly
subordinate to the primary dwelling unit, both in use and appearance.
43. "Building permit" means an official document or certification of the City of
Tukwila issued by the City's building official which authorizes the construction, alteration,
enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement,
demolition, moving, or repair of a building or structure.
2/1. "City" means the City of Tukwila, Washington, County of King.
35. "Development activity" means any construction, reconstruction, or
expansion of a building, structure, or use, or any changes in use of a building or structure,
or any changes in the use of land, requiring development approval.
46. "Development approval" means any written authorization from the City,
which authorizes the commencement of the "development activity."
-57. "Encumber" means to reserve, set aside, or earmark the fire impact fees in
order to pay for commitments, contractual obligations, or other liabilities incurred for the
provision of fire protective services.
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48. "Fee payer" is a person, corporation, partnership, an incorporated
association or governmental agency, municipality, or similar entity commencing a land
development activity that requires a building permit and creates a demand for additional
fire capital facilities.
79. "Fire protection facilities" means all publicly owned apparatus and
buildings within the City that are used for fire protection and/or emergency response and
aid.
410. "Impact fee" means the payment of money imposed by the City on
development activity pursuant to this ordinance as a condition of granting development
approval in order to pay for the fire facilities needed to serve growth and development
that is a proportionate share of the cost of fire capital facilities used for facilities that
reasonably benefit development. Impact fees do not include reasonable permit fees,
application fees, administrative fees for collecting and handling fire impact fees, or the
cost of reviewing independent fee calculations.
911. "Low-income housing" means housing where monthly costs, including
utilities other than telephone, do not exceed are no greater than 30% of the resident's
household monthly income and where household monthly income must be is 80% or less
of the King County Median family income adjusted for family size as reported by the U.S.
Department of Housing and Urban Development.
1012. "Owner" means the owner of record of real property, as found in the
records of King County, Washington, or a person with an unrestricted written option to
purchase property; provided, that if the real property is being purchased under a recorded
real estate contract, the purchaser shall be considered the owner of the property.
4413. "Proportionate share" means that portion of the cost for fire facility
improvements that are reasonably related to the service demands and needs of
development.
Section 7. TMC Section 16.26.040 is hereby reenacted to read as follows:
16.26.040 Fire Impact Fee Assessment
A. The City shall collect fire impact fees from applicants seeking development
approvals from the City for any development activity in the City for which building permits
are required effective January 1, 2009, consistent with the provisions of this ordinance.
B. Fire impact fees shall be assessed at the time of a technically -complete building
permit application that complies with the City's zoning ordinances and building and
development codes. Fire impact fees shall be collected from the fee payer at the time the
building permit is issued, _- - -- =- - - - - -- -- -- - -
Section 16.26.095.
C. Except if otherwise exempt or deferred, the City shall not issue the required
building permit unless or until the fire impact fees are paid.
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Section 8. TMC Section 16.26.050 is hereby reenacted to read as follows:
16.26.050 Use of Fire Impact Fees
A. Pursuant to this ordinance, fire impact fees shall be used for fire facilities that will
reasonably benefit growth and development, and only for fire protection facilities
addressed by the City's Capital Facilities Element of the Comprehensive Plan.
B. Fees shall not be used to make up deficiencies in City facilities serving an
existing development.
C. Fees shall not be used for maintenance and operations, including personnel.
D. Fire impact fees shall be used for, but not limited to, land acquisition, site
improvements, engineering and architectural services, permitting, financing,
administrative expenses and applicable mitigation costs, and capital equipment
pertaining to fire protection facilities.
E. Fire impact fees may also be used to recoup public improvement costs incurred
by the City to the extent that growth and development will be served by the previously
constructed improvement.
F. In the event bonds or similar debt instruments are or have been issued for fire
facility improvements, impact fees may be used to pay the principal and interest on such
bonds.
Section 9. TMC Section 16.26.060 is hereby reenacted to read as follows:
16.26.060 Fire Impact Fee Capital Facilities Plan
In order to collect fire impact fees, the City must first adopt a Fire Capital Facilities Plan
as an element of the City's Comprehensive Plan. The City's Capital Facilities Plan for fire
protection services shall consist of the following elements:
1. The City's capacity over the next six years, based on an inventory of the
City's fire facilities both existing and under construction;
2. The forecast of future needs for fire facilities based upon the City's
population projections;
3. A six-year financial plan component, updated as necessary, to maintain at
least a six-year forecast for financing needed within projected funding levels;
4. Application of the formula set forth in this ordinance based upon the
information in the Capital Facilities Plan; and
5. City Council Action. No new or revised impact fee shall be effective until
adopted by the City Council following a duly advertised public hearing to consider the
City's Capital Facilities Plan or plan update, except for fees adjusted through the annual
update process outlined in TMC Section 16.26.080.
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Section 10. TMC Section 16.26.070 is hereby reenacted, thereby eliminating Figure
16-1, "Tukwila Fire Impact Fees, 2008;" and Figure 16-2, "Fire Department Capital Facilities
List," and shall read as follows:
16.26.070 Fire Impact Fee Formula.
A. The impact fee formula is based on the assumptions found in Figure 16 1. 2008
.___
List, "Tukwila Fire and Parks Impact Fee Rate Study, 2018," Exhibit A attached to the
ordinance and by this reference fully incorporated herein. A fee schedule is codified as
Figure 16-1, Fee Schedule, attached hereto as Exhibit B.
B. Each development shall mitigate its impacts on the City's fire protection facilities
by payment of a fee that is based on the type of land use and square footage of the
development, and proportionate to the cost of the fire protection facility improvements
necessary to serve the needs of growth. For residential development, fee amount is
based on number of units; for commercial development, fee amount is based on square
footage of the development.
C. Applications for a change of use shall receive credit based on the existing use.
This credit is calculated by deducting the fee amount of the existing use from the fee of
the proposed use.
Section 11. TMC Section 16.26.080, "Annual Fire Impact Fee Updates," is hereby
established to read as follows:
16.26.080 Annual Fire Impact Fee Updates
Fire impact fee rates shall be updated annually using the following procedures:
1. The Fire Chief shall use the Construction Cost Index for Seattle (June -June)
published by the Engineering News Record to calculate annual inflation adjustments in
the impact fee rates. The fire impact fees shall not be adjusted for inflation should the
index remain unchanged.
2. The impact fee rates, as updated annually per TMC Section 16.26.080(1),
shall be effective January 1, 2019, and on January 1 of each year thereafter, and a copy
shall be provided to the City Council.
Section 12. TMC Section 16.26.090 is hereby reenacted to read as follows:
16.26.080090 Individual Project Fire Impact Fee Adjustments
A. The City may adjust a fire impact fee at the time the fee is imposed in order to
consider unusual circumstances in specific cases to ensure that impact fees are imposed
fairly.
B. In calculating the fee imposed on a particular development, the City shall permit
consideration of studies and data submitted by a developer in order to adjust the amount
of the fee. The developer shall submit an independent fee calculation study to the Fire
Chief who shall review the study to determine that the study:
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1. Is based on accepted impact fee assessment practices and methodologies;
2. Uses acceptable data sources and the data used is comparable with the
uses and intensities planned for the proposed development activity;
3. Complies with the applicable state laws governing impact fees;
4. Is prepared and documented by professionals who are mutually agreeable
to the City and the developer and who are qualified in their respective fields; and
5. Shows the basis upon which the independent fee calculation was made.
C. In reviewing the study, the Fire Chief may require the developer to submit
additional or different documentation. If an acceptable study is presented, the Fire Chief
may adjust the fee for the particular development activity. The Fire Chief shall consider
the documentation submitted by the applicant, but is not required to accept such
documentation that the Chief reasonably deems to be inaccurate or unreliable.
D. A developer requesting an adjustment or independent fee calculation may pay
the impact fees imposed by this ordinance in order to obtain a building permit while the
City determines whether to partially reimburse the developer by making an adjustment or
by accepting the independent fee calculation.
Section 13. TMC Section 16.26.100 is hereby reenacted to read as follows:
16.26.898100 Credits
In computing the fee applicable to a given development, credit shall be given for the fair
market value measured at the time of dedication, for any dedication of land for
improvements to, or new construction of, any fire protection facilities that are identified in
the Capital Facilities Element and that are required by the City as a condition of approving
the development activity.
Section 14. TMC Section 16.26.110 is hereby reenacted to read as follows:
16.26.1--08110 Appeals
A. Any fee payer may pay the impact fees imposed by this ordinance under protest
in order to obtain a building permit.
B. Appeals regarding fire impact fees imposed on any development activity may
only be submitted by the fee payer of the property where such development activity will
occur. No appeal shall be permitted unless and until the impact fee at issue has been
paid.
C. Determinations by the City staff with respect to the applicability of fire impact fees
to a given development activity, or the availability of a credit, can be appealed to the City's
Hearing Examiner pursuant to this section.
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D. An appeal shall be filed within 10 working days of payment of the impact fees
under protest or within 10 working days of the City's issuance of a written determination
of a credit or exemption decision by filing with the City Clerk a notice of appeal giving the
reasons for the appeal and paying the accompanying appeal fee as set forth in the
existing fee schedule for land use decisions.
Section 15. TMC Section 16.26.120 is hereby reenacted to read as follows:
16.26.120 Exemptions.
A. The fire impact fees are generated from the formula for calculating the fees as
set forth in this chapter. The amount of the impact fees is determined by the information
contained in the adopted fire department master plan and related documents, as
appended to the City's Comprehensive Plan. All development activity located within the
City shall be charged a fire impact fee; provided, that the following exemptions shall apply.
B. The following shall be exempt from fire impact fees:
1. Replacement of a structure with a new structure having the same use, at the
same site, and with the same gross floor area, when such replacement is within 12
months of demolition or destruction of the previous structure.
2. Alteration, expansion, or remodeling of an existing dwelling or structure
where no new units are created and the use is not changed.
3. Construction of an accessory residential structure.
4. Miscellaneous improvements including, but not limited to, fences, walls,
swimming pools, and signs that do not create an increase in demand for fire services.
5. Demolition of or moving an existing structure within the City from one site to
another.
6. Fire impact fees for the construction of low-income housing may be reduced
at the discretion of the Fire Chief when requested by the property owner in writing prior
to permit submittal and subject to the following criteria:
a. The property owner must gsubmitfal of a fiscal impact analysis of how a
reduction in impact fees for the project would contribute to the creation of low-income
housing; and
eb- The developer property owner must record a covenant per RCW
82.02.060(3) that prohibits using the property for any purpose other than for low-income
housing at the original income limits for a period of at least 10 years. At a minimum, the
covenant must address price restrictions and household income limits for the low-income
housing, and that if the property is converted to a use other than low income housing
within 10 years, the property owner must pay the City the applicable impact fees in effect
at the time of conversion.
c. Should the property owner satisfy the criteria in TMC Section
16.26.120.B.6., a and b, and the Fire Chief determines a fee reduction is in the best
interest of the City, the fees will be reduced, based on the following table:
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Fee reduction table.
Unit Size
Affordability Target 1
Fee Reduction
2 or more bedrooms
80% 2
40%
2 or more bedrooms
60% 2
60%
Any size
50% 2
80%
1 — Units to be sold or rented to a person or household whose monthly
housing costs, including utilities other than telephone, do not exceed
30% of the household's monthly income.
2 — Percentage of King County Median family income adjusted for family
size as reported by the U.S. Department of Housing and Urban
Development.
7. Change of Use. A development permit for a change of use that has less
impact than the existing use shall not be assessed a fire impact fee.
8. A fee payer required to pay for system improvements pursuant to RCW
43.21C.060 shall not be required to pay an impact fee for the same improvements under
this ordinance.
9. A fee payer installing a residential fire sprinkler system in a single-family
home shall not be required to pay the fire operations portion of the impact fee. The
exempted fire operations impact fee shall not include the proportionate share related to
the delivery of emergency medical services.
Section 16. TMC Section 16.26.125 is hereby reenacted to read as follows:
16.26.125 Residential Impact Fee Deferral
A. Purpose. The purpose of this chapter is to comply with the requirements of RCW
. .
fee deferral process for single family residential construction in order to promote
economic recovery in the construction industry.
BA. Applicability.
1. The provisions of this chaptersection shall apply to all impact fees
established and adopted by the City pursuant to Chapter 82.02 RCW, including impact
fees for fire facilities assessed under Tukwila Municipal Code Chapter 16.26.
2. Subject to the limitations imposed in the Tukwila Municipal Code, the
provisions of this chaptersection shall apply to all building permit applications for single-
family detached and single-family attached residential construction. For the purposes of
this chaptersection, an "applicant" includes an entity that controls the named applicant, is
controlled by the named applicant, or is under common control with the named applicant.
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-GB. Impact Fee Deferral.
1. Deferral Request Authorized. Applicants for single-family attached or single-
family detached residential building permits may request to defer payment of required
impact fees until the sooner of:
a. final inspection; or
b. the closing of the first sale of the property occurring after the issuance
of the applicable building permit;
which request shall be granted so long as the requirements of this chapter
section are satisfied.
2. Method of Request. A request for impact fee deferral shall be declared
submitted at the time of preliminary plat application (for platted development) or building
permit application (for non -platted development) in writing on a form or forms provided by
the City, along with payment of the applicable application or permit fees.
3. Calculation of Impact Fees. The amount of impact fees to be deferred under
this chaptersection shall be determined as of the date the request for deferral is submitted.
QC. Deferral Term. The term of an impact fee deferral granted under this
chaptersection may not exceed 18 months from the date the building permit is issued
("Deferral Term"). If the condition triggering payment of the deferred impact fees does not
occur prior to the expiration of the Deferral Term, then full payment of the impact fees
shall be due on the last date of the Deferral Term.
ED. Deferred Impact Fee Lien.
1. Applicant's Duty to Record Lien. An applicant requesting a deferral under
this chapter section must grant and record a deferred impact fee lien, in an amount equal
to the deferred impact fees, against the property in favor of the City in accordance with
the requirements of RCW 82.02.050(3)(c).
2. Satisfaction of Lien. Upon receipt of final payment of all deferred impact fees
for the property, the City shall execute a release of deferred impact fee lien for the
property. The property owner at the time of the release is responsible, at his or her own
expense, for recording the lien release.
FE. Limitation on Deferrals. Each applicant for a single-family residential
construction permit, in accordance with his or her contractor registration number or other
unique identification number, is entitled to annually receive deferrals for the first 20 single-
family residential construction building permits. The deferral entitlements allowed under
identification number, per year.
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Page 10 of 13
16.26.095 Fire Impact Fee Deferral
A. In order to encourage residential and mixed use development within the Tukwila
Urban Center Transit Oriented Development (TUC TOD) zoning district, fee deferrals of
following criteria arc met:
1chnically complete building permit
2. Before issuance of the building permit, the property owner must submit a
written letter requesting that the fire impact fec be deferred. The City will not consider
any fee deferral requests from a tenant, contractor, or other third party. The request must
be submitted to the City no later than December 31, 2016.
3. The project must be located west of the Green River and be within the TUC
TOD zoning district per Figure 18 16, District Map, in Title 18 of the Tukwila Municipal
Code.
it- The project must include at least 100 residential units and at least 50 percent
or other similar transient lodging accommodations.
5. A fee deferral agreement between the City and the property owner must be
executed prior to issuance of the building permit. The Mayor is authorized to execute
such agreements on behalf of the City. Provisions must be included in the agreement to
secure payment of the deferred impact fees, plus accrued interest, in the case of default
subject property, letter of credit and/or surety bond.
appeals under TMC Section 16.26.100.
requests including, but not limited to, the ability of the property owner to satisfy the
obligations of the agreement and pay the deferred impact fees. The Mayor is authorized
issuance. The property owner shall make 8 equal, annual installment payments to the
City, with the first payment due to the City no later that-36-menth-s after issuance of the
building permit, with the final payment being due no later than 120 months from icsuancc
of the building permit. The property owner may pay off the entire balance any time prior
to the end of the 10 year deferral term.
D. Interest shall be charged on deferred fire impact fees. The interest rate shall be
the same as the stated interest rate on the Ten Y ar US Tr asury Note on the date the
building permit is is ucd (or closest date thereof). Interest shall be compounded annually
and shall begin to accrue upon issuance of the building permit.
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E. The fire impact fee deferral agreement may be consolidated with any agreements
to defer park, transportation, or building permit fees as outlined in TMC Chapters 9.48
and 16.28, and the consolidated permit fee schedule adopted by resolution of the City
Council.
Section 17. TMC Section 16.26.130 is hereby reenacted to read as follows:
16.26.1-1-0130 Refunds
A. If the City fails to expend or encumber the impact fees within 10 years from the
date the fees were paid, unless extraordinary, compelling reasons exist for fees to be held
longer than 10 years, the current owner of the property on which the impact fees were
paid may receive a refund of such fees. Such extraordinary or compelling reasons shall
be identified in written findings by the City Council.
B. The City shall notify potential claimants by first class mail that they are entitled to
a refund. In determining whether impact fees have been expended or encumbered,
impact fees shall be considered expended or encumbered on a first -in, first -out basis.
C. Owners seeking a refund must submit a written request for a refund of the fees
to the City within one year of the date the right to claim a refund arises or notice is given,
whichever comes later.
D. Any impact fees for which no application has been made within the one-year
period shall be retained by the City and expended on appropriate fire facilities.
E. Refunds of impact fees shall include any interest earned on the impact fees by
the City.
Section 18. TMC Section 16.26.140 is hereby reenacted to read as follows:
16.26.439140 Authority Unimpaired
Nothing in this ordinance shall preclude the City from requiring the fee payer to mitigate
adverse environmental effects of a specific development pursuant to the State
Environmental Policy Act, Chapters 43.21 C RCW and/or Chapter 58.17 RCW, governing
plats and subdivisions, provided that the exercise of this authority is consistent with
Chapters 43.21C and 82.02 RCW.
Section 19. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to other
local, state or federal laws, codes, rules, or regulations; or ordinance numbering and
section/subsection numbering.
Section 20. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
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Page 12 of 13
Section 21. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Attachments: Exhibit A — Tukwila Fire and Parks Impact Fee Rate Study, 2018
Exhibit B — Fee Schedule
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30
Exhibit A
Tukwila
Fire and Park Impact Fee Rate Study, 201 8
Rate Study to Update Tukwila's Fire and Parks Impact Fees
Prepared for:
The City of Tukwila
Prepared by:
BERK Consulting, Inc.
rill BERK
Date:
April 2018
:ii Fire and Parks Impact Fees Update Rate Study 1 Introduction I
Contents
1 Introduction 3
1.1 Purpose 3
1.1.1 Impact Fee Definition 3
1.1.2 Requirements for Impact Fee Rate Calculation 5
2 Fee Calculations 5
2.1 Anticipated Growth 5
2.1.1 Residential: Population, Housing, and Household Size 6
2.1.2 Commercial: Employment 7
2.1.3 Funding Other than Impact Fees 7
2.1.4 Level of Service and Methodology 7
2.1.5 Capital Plans 11
2.1.6 Identified Capital Projects 11
2.1.7 Future Need 12
2.1.8 Service Areas 13
2.1.9 Unadjusted Rate Schedules 13
2.1.10 Proportionate Share 15
2.1.11 Adjusted Rate Schedule 16
3 Plan Amendments 19
3.1 Financial Planning Model and Capital Improvement Program 19
3.2 Tukwila Parks, Recreation and Open Space Plan 19
4 Attachments 20
4.1 Appendix A: List of System Improvements 21
4.1.1 Fire System Improvements List 21
4.1.2 Parks System Improvements List 21
4.2 Appendix B: System Valuation for Fire and Parks 22
32 mill Fire and Parks Impact Fees Update Rate Study I Introduction I 2
1 Introduction
1.1 PURPOSE
The City of Tukwila enacted Growth Management Act impact fees in 2008 in order to fund growth -driven
needs in fire and emergency services and recreation, parks, and open space. In 2017, the City engaged
BERK Consulting to update these rates to incorporate current growth projections, to respond to newly
adopted fire and parks capital needs, and to address perceived shortcomings in the 2008 fee structure.
This study outlines the purpose and requirements for impact fees, documents the technical assumptions and
methodology for fee calculation, presents the findings from these calculations, and includes proposed
amendments to planning documents and an updated capital projects list.
1.1.1 Impact Fee Definition
Statutory
Growth Management Act impact fees are those fees charged by a local government on new development
to recover a portion of the cost of capital facility improvements needed to serve that new development.
Specifically, the Washington State Legislature outlined the intent of local impact fees in RCW 82.02.050:
(1) It is the intent of the legislature:
(a) To ensure that adequate facilities are available to serve new growth and development;
(b) To promote orderly growth and development by establishing standards by which counties,
cities, and towns may require, by ordinance, that new growth and development pay a
proportionate share of the cost of new facilities needed to serve new growth and
development; and
(c) To ensure that impact fees are imposed through established procedures and criteria so
that specific developments do not pay arbitrary fees or duplicative fees for the same
impact.
(2) Counties, cities, and towns ... are authorized to impose impact fees on development activity
as part of the financing for public facilities, provided that the financing for system
improvements to serve new development must provide for a balance between impact fees and
other sources of public funds and cannot rely solely on impact fees.
Impact fees may be charged to help pay for: public transportation and road facilities; fire protection
facilities; schools; and public parks, open space, and recreation facilities. Local governments are authorized
to charge fees only for system improvements that are reasonably related to the new development, do not
exceed a proportionate share of the costs of necessary system improvements, and are only used for system
improvements that will reasonably benefit the new development (RCW 82.02.050(3)). In addition, cities'
"financing for system improvements to serve new development must provide for a balance between impact
fees and other sources of public funds" — i.e., impact fees cannot be the sole source of funding for system
improvements that address growth impacts.
�i'I Fire and Parks Impact Fees Update Rate Study I Introduction
I 3 33
According to the provisions of RCW 82.02.060, impact fees must be adjusted for other revenue sources
that are paid by development, if such payments are earmarked or proratable to particular system
improvements. Likewise, the City must provide impact fee credit if the developer dedicates land or
improvements identified in the City's adopted Capital Facilities Plan and such construction is required as a
condition of development approval. Collected impact fees may only be spent on public facilities identified
in a capital facilities plan and may only be spent on capital costs; they may not be used to pay for
operating expenses or maintenance activities. (RCW82.02.050(4)).
Potential Deficiencies
Based on RCW 82.02.050(4), the capital facilities plan must identify "[d]eficiencies in public facilities
serving existing development and the means by which existing deficiencies will be eliminated within a
reasonable period of time," and must distinguish such deficiencies from "[a]dditional demands placed on
existing public facilities by new development."
The extent to which deficiencies exist is determined by the level of service (LOS) standard that the City uses
to measure the impact created by development.
Fire
As part of developing the 2016 Public Safety Plan, the City conducted a Facilities Needs Assessment that
considered the state of the City's four fire stations, both in their ability to respond to current needs and
anticipated future growth. That assessment found that all four stations are undersized and three have
significant deficiencies (Investing in Tukwila, 2015-1 2-14, p 1 1 ).
However, those three stations with deficiencies are being relocated or replaced with facilities that not only
address existing deficiencies but also plan for additional future growth. For example, capacity for
additional apparatus bays were added to the plans for Stations 51 and 54 "to accommodate future
population growth" (City of Tukwila, "Public Safety Plan Fire Station Programming and Budget
Implications", Information Memo, 2017-06-08, p 93 of Council Agenda Synopsis for Tukwila City Council
Meeting of 2017-06-12). Only those portions of the plans to relocate and/or replace stations, apparatus,
and equipment were considered in this study.
Parks
In the City of Tukwila's 2014 Parks, Recreation and Open Space Plan, 10 service access gaps were
identified throughout the City (Tukwila PROS Plan: Parks and Recreation Needs Analysis, p 9). These gaps
are based on a Level of Service standard that all residents and visitors should be within 1/4 to 1/2 miles of
a City -owned park (Needs Analysis, p 7). In compliance with RCW 82.02.050, these 10 gaps are not
included in the capital projects used to calculate impact fees in this study. The capital projects used in this
study are described in 2.1.6 Identified Capital Projects on page 11.
Project Eligibility
Impact fee legislation requires that impact fees only be used for system improvements that benefit the new
development and relate to the demand from new development. To the extent these projects extend fire
service and parks capacity, the growth -related portion of capital project costs can be funded by impact
fees. RCW 82.02.050(3) specifies that impact fees:
34 .111 Fire and Parks Impact Fees Update Rate Study I Introduction I 4
(a) Shall only be imposed for system improvements that are reasonably related to the new
development;
(b) Shall not exceed a proportionate share of the costs of system improvements that are
reasonably related to the new development; and
(c) Shall be used for system improvements that will reasonably benefit the new development.
Examples of the types of Tukwila Fire Department and Tukwila Parks and Recreation projects that are
impact -fee eligible include building additional square footage to accommodate future additional bays to
planned fire stations, new fire equipment, development of the Tukwila Pond Trail and Boardwalk, installing
artificial turf to athletic fields to allow increased hours of use. A list of the specific projects that could support
growth is found in Appendix A.
1.1.2 Requirements for Impact Fee Rate Calculation
Impact fee must be assessed in accordance with the requirements of RCW 82.02 subsections 050 through
090. The schedule must be based on a formula or consistent method (RCW 82.02.060(1)). The fees must
be adjusted for the share of future taxes or other available funding sources. The means by which the
proportionate share reduction is calculated is guided by RCW 82.02.060:
(1) ...In determining proportionate share, the formula or other method of calculating impact fees
shall incorporate, among other things, the following:
(a) The cost of public facilities necessitated by new development;
(b) An adjustment to the cost of the public facilities for past or future payments made or
reasonably anticipated to be made by new development to pay for particular system
improvements in the form of user fees, debt service payments, taxes, or other payments
earmarked for or proratable to the particular system improvement;
(c) The availability of other means of funding public facility improvements;
(d) The cost of existing public facilities improvements; and
(e) The methods by which public facilities improvements were financed.
2 Fee Calculations
2.1 ANTICIPATED GROWTH
Based the available capital project lists, demographic projections, and 10 -year expenditure window for
collected impact fees, this study incorporates growth for the 10 -year period between 2018 and 2027.
Additional consideration was made for the following period within the City's 20 -year planning period of
the Comprehensive Plan, 2028-2031 or later. As the City identifies capital projects in the later part of the
planning period window, the City will update the rate schedule accordingly.
The City of Tukwila provided employment and household growth estimates for 2010-2030 consistent with
the City of Tukwila assumptions for its long-range growth in consultation with PSRC. BERK incorporated
:1111 Fire and Parks Impact Fees Update Rate Study I Fee Calculations
15 35
employment, population, household size, and housing unit data from the Office of Financial Management
(OFM), Puget Sound Regional Council (PSRC), U.S. Census Bureau's American Community Survey (ACS), the
King County Countywide Planning Policies, and the City of Tukwila Comprehensive Plan. Using linear
interpolation to adapt the twenty-year City estimates to the 10 -year impact fee timeline, BERK found
annual expected growth in employment and residential figures for population, housing, and household size.
These results are split between commercial employees and residents below.
2.1.1 Residential: Population, Housing, and Household Size
The City of Tukwila provided internal estimates of growth in housing units. BERK calculated City of Tukwila
resident population by applying PSRC household size estimates to the City's housing unit estimates. These
projections assume a linear growth trend, which is different from what the City will actually experience as
projects tend to get built during economic upturns and construction slows during recessions and economic
downturns.
Exhibit 1 shows household size, housing units, and population projections. Both PSRC and the U.S. Census
Bureau's ACS produce average household sizes for the City of Tukwila. The ACS estimates include a greater
level of detail of the estimated population residing in different housing types, but the PSRC figures more
closely align with the OFM population estimates prepared for counties and cities planning under the Growth
Management Act. Generally, the PSRC figures are used in this study except when a greater level of detail
is needed by housing type, in which case ACS estimates are used.
There are some small discrepancies between housing targets. The 201 2 King County Countywide Planning
Policies set growth targets for the City of Tukwila of 4,800 new housing units between 2006 and 2031.
These targets were updated in the King County Buildable Lands Report 2014, where the 2031 housing unit
target was adjusted to 4,773 more units by 2031 based on a base year of 2012 and accounting for
residential building permits. The City of Tukwila Comprehensive Plan contains a 2031 housing target of
4,800 housing units (p 3-5). This analysis assumes an additional 4,773 units to be added between 2012
and 2031 given the updated status of the target. Using linear extrapolation between 2017 and 2031
results in a target of 3,108 new units by 2027.
Exhibit 1. Projected Household Size, 2017 and 2018-2027
YEAR
HOUSEHOLD SIZE HOUSING UNITS POPULATION
2017
2.51
7,833
19,660
2018 2.44 8,085 19,695
2027 2.27 10,749 24,367
2018-2027 Change
2,916 4,707
Notes: PSRC provides estimates for the average household size for 2025, 2030, 2035, and 2040. BERK used linear
extrapolation between these years to estimate the expected annual household size.
Sources: OFM, 2017; City of Tukwila, 2017; PSRC, 2008-2017; BERK Consulting, 2017.
The King County Countywide Planning Policies set growth targets for the City of Tukwila that represent a
40% increase in housing units by the end of 2027.
36 =i,l Fire and Parks Impact Fees Update Rate Study I Fee Calculations
6
The King County Countywide Planning Policies do not differentiate between housing types in growth targets.
To find the expected breakdown of single family and multifamily, BERK used the historic housing type
estimates from OFM's Postcensal Estimates of Housing Units reports to find the expected change in single
family/multifamily. Exhibit 2 shows projected housing unit growth by type.
Exhibit 2. Projected Change in Housing Units by Type, 2018-2027
HOUSING TYPE UNITS
Single Family
1,412
Multifamily
1,504
2018-2027 Change
2,916
Note: OFM includes three categories — Single Family, Multifamily, and Mobile Homes/Specials; for this analysis, Mobile
Homes/Specials were included in Single Family.
Sources: City of Tukwila, 2017; ACS, 2011-2015; BERK Consulting, 2017.
2.1.2 Commercial: Employment
The City of Tukwila provided estimates of employment growth for 201 3-2030, which BERK interpolated
using PSRC's most recent 2015 employment estimates to fit the 2018-2027 impact fee timeline. Employment
projections for 201 8-2027 are shown in Exhibit 3 below.
Exhibit 3. Projected Employment, 2013-2030
YEAR EMPLOYMENT
2013
2017
2018
2027
45,098
50,330
50,924
56,599
2018-2027 Change
6,269
Sources: City of Tukwila, 2017; PSRC, 2008-2015; BERK Consulting, 2017.
While not as large of an increase as is estimated for housing, the PSRC estimates suggests a significant
increase in employees of 12.5% over a ten-year period.
2.1.3 Funding Other than Impact Fees
BERK used historic budget actuals provided by the City to find the expected share of funding related to
growth — please see 2.1.10 Proportionate Share on page 15.
2.1.4 Level of Service and Methodology
To collect impact fees for parks, the City of Tukwila has identified parks facilities and services necessary
to support growth. By law, these projects must be addressed in a capital facilities plan (RCW
82.02.050(4)). The Growth Management Hearing Board concluded in McVittie 1999 that local
governments need a locally -established minimum standard to provide the basis for objective measurement
:i" Fire and Parks Impact Fees Update Rate Study I Fee Calculations
I 7 37
of need for those projects necessary to support growth (McVittie, 99-3-0016c, FDO, at 25), or a Level of
Service (LOS) standard.
The City of Tukwila created five land use categories for determining Fire and Parks Impact Fees. These five
categories are:
• Residential: Single Family
• Residential: Multi -Family
• Commercial: Retail
• Commercial: Office
• Commercial: Industrial
Tukwila Fire Department uses a response time approach as a Level of Service standard. A response time
LOS standard is included in both the 2008 Tukwila Fire Department Comprehensive Master Plan and the
2017 City of Tukwila Fire Station Location Study. The existing system investment is what the City has
determined is necessary to maintain their identified LOS standard for the current population.
In order to maintain this standard, the Fire Department needs to add capacity to respond to development
driven increases in fire service incidents. To determine the cost of the additional needed capacity on a per
residential unit and per commercial square foot basis, BERK estimated the 2017 replacement cost of the
Tukwila Fire Department's system divided by the number of incidents per development type. This created
a cost per incident. Combining the average number of incidents per development type with the cost per
incident produced a cost per unit. Each step is described below.
To find the 2017 replacement cost, BERK estimated the cost of the land, facilities, and
equipment/apparatus. The methodology for each is described separately.
Land: To determine the replacement cost of the Tukwila Fire Department's land, BERK used GIS and King
County Assessor data to find the average land value within one-quarter mile of each the four current
Tukwila Fire Department stations. These land values ranged from $8-$15 per square foot; by multiplying
the surrounding aggregate land value per square foot by the fire lot square feet, BERK estimated the land
values for each of the four fire station parcels.
Facilities: The City recently received updated cost estimates for replacing and/or relocating three of the
four fire stations (stations 51, 52, and 54). BERK generated a station -level cost per square foot by dividing
the estimated project cost by the proposed square footage. The existing station sizes were multiplied by
the cost per square foot to find a replacement cost for the stations as they exist today. The cost of the
Tukwila Emergency Operations Center (EOC) was separated from station 51, where it is currently housed,
and brought out as a separate project as part of the planned Tukwila Justice Center, which will include the
EOC.
Equipment and Apparatus: Using a combination of data from the 2008 Tukwila Fire Department
Comprehensive Master Plan, City financial records of fire capital investments from 2008-2017, and the
City's fleet services replacement schedule for fire equipment and apparatus, an estimate of the
replacement costs for the City's fire equipment and apparatus inventory was calculated.
Adding these three figures together, BERK estimates that the 2017 total replacement value of Tukwila
Fire Department System is estimated to be approximately $51.0M; please see Exhibit 4 for a
38 :i,l Fire and Parks Impact Fees Update Rate Study I Fee Calculations
8
breakdown by investment type. For the complete inventory valuation, see Error! Reference source not
found..
Exhibit 4. Tukwila Fire Department System Replacement Cost, 2017
SYSTEM INVESTMENT TYPE TOTAL VALUE (2017$)
Land
Stations
$2,838,000
$46,800,000
Equipment and Apparatus
$8,225,000
Tota I
$57,863,000
Sources: Tukwila Fire Department, 2008, City of Tukwila, 2008-2017; King County Assessor's Office, 2017; BERK Consulting,
2017.
With the system replacement cost estimate, the number of incidents were needed to create a cost per
incident. Using a 10 -year period of data, BERK analyzed Tukwila Fire Department fire and emergency
responses between 2008 and 2017 (the 2017 data only covered a portion of the year). The 46,475
response incidents from this period were summarized by property type to find the number of response
incidents produced by each of the five impact fee land use categories. The incidents per property type
were analyzed for anomalies and the 201 6 incident data, the most recent full data set, was used to project
future incidents. Incidents that could not be directly attributed to one of the five property types were
allocated based on the proportionate share of directly attributable incidents of each property type to the
total.
The Tukwila Fire Department uses the National Fire Incident Reporting System (NFIRS) to categorize all
department responses by address, response type, duration, etc. BERK aligned the NFIRS categories with
the City's five impact fee categories (Single Family, Multifamily, Retail, Office, and Industrial) to create
annual and total incidents per type. The Tukwila Fire Department incidents analysis is summarized in Exhibit
5 below.
Fire and Parks Impact Fees Update Rate Study I Fee Calculations
9 39
Exhibit 5. Tukwila Fire Department Fire and Emergency Response Incidents by Property Type, 2016
2016 % OF
INCIDENTS TOTAL
Residential
Single Family_
Multifamily
973 18%
1,182 22%
Residential Subtotal
2,154 40%
Commercial
Retail
Office
Industrial
2,034 38%
806 15%
329 6%
Commercial Subtotal
3,169 60%
All Incidents
5,323 100%
Notes: Using the National Fire Incident Reporting System (NFIRS), Tukwila Fire Department maintains records of all
department responses by address, response type, duration, etc.
Sources: Tukwila Fire Department, 2008-2017; BERK Consulting, 2017.
Parks
Tukwila Parks and Recreation has two LOS standards, one as outlined in the 2014 PROS Plan based on
access, and one included in the proposed amended version of the 2014 PROS Plan based on the per capita
investment.
• Parks LOS 1: All residents and visitors should be within 1/4 to 1/2 mile of a City -owned park.
• Parks LOS 2: The investment per capita of the City's park systems including land and facilities
commensurate with the current level of investment as growth occurs.
Taken together, these LOS standards direct the City's response to increased demand, both growth related
and due to changes in population.
BERK estimated the replacement value of park investments per capita for the City's park system, including
both land and facilities. This analysis can be used to determine the total new investment that would be
needed to keep the current level of investment per capita accounting for future population and employment
growth.
Land: to determine the replacement cost of Tukwila Parks and Recreation's land, BERK used GIS and King
County Assessor data to find the average land value within one-quarter mile of each of the 22 Tukwila
Parks and Recreation parks. These land value ranged from $5-$21 per square foot; but multiplying the
surrounding aggregate land value per square foot by the parks' square feet, BERK estimated the land
values for each of the 22 parks parcels.
Improvements: to determine the replacement cost of the improvements located on parks parcels, BERK
coordinated with Tukwila Parks and Recreation to generate an inventory of all facility improvements, and
40 :i,I Fire and Parks Impact Fees Update Rate Study I Fee Calculations
I10
their respective replacement costs. Facilities inventoried ranged from playgrounds, restrooms, and fields to
trails, lighting, and shelters; improvements that increased the usability and capacity of park land.
Adding these two figures together, BERK estimates that the 2017 total replacement value of Tukwila Parks
and Recreation system is $107.9M; please see Exhibit 6 for a breakdown by investment type.
Exhibit 6. Parks and Recreation System Replacement Cost, 2017
SYSTEM INVESTMENT TYPE TOTAL VALUE (2017$)
Land
$74,700,000
Improvements
Total
$33,200,000
$107,900,000
Sources: King County Assessor's Office, 2017; City of Tukwila, 2015-2017; BERK Consulting, 2017.
2.1.5 Capital Plans
The City of Tukwila has developed a capital project list that includes investments to support and facilitate
the increased usage of existing park and recreation assets to meet growing demand as well as strategic
expansions of the system as opportunities arise. This list of projects needed to accommodate future growth
is used to calculate a base LOS Standard for impact fee rate setting, as described below.
2.1.6 Identified Capital Projects
The City of Tukwila adopted the 2017-2022 Financial Planning Model and Capital Improvement Program
(CIP) in December of 201 6. The CIP has the identified capital improvement projects for both Tukwila
Parks and Recreation and the Tukwila Fire Department for the next six years. In addition to a description
of each project, the CIP contains annual cost projections and expected revenues.
As part of the process of updating the fire and parks impact fee rates, the City has proposed to amend
the CIP to reflect updated project cost estimates and recalculated impact fee eligibility based on
updated growth projections.
With these changes, the amended CIP contains the identified capital projects used to update the impact
fee program. Appendix A: List of System Improvements, lists the 13 projects identified by City of Tukwila
staff related to serving new growth and Exhibit 7 provides a summary of those system improvements that
are impact fee eligible.
Exhibit 7. Impact Fee Eligible System Improvement Projects
NUMBER OF TOTAL ANTICIPATED PERCENT OF
PROJECTS PROJECT COST PROJECT FUNDING TOTAL COST
FROM IMPACT FEES FUNDED BY
IMPACT FEES
Fire Impact Fee Eligible
Parks Impact Fee Eligible
4 $74,846,000
$18,791,720
9 $46,722,000
$23,561,750
25%
50%
Total
13 $121,568,000
$42,353,470 35%
.111 Fire and Parks Impact Fees Update Rate Study I Fee Calculations
Note: One transportation project, the TUC Pedestrian Bridge, was identified in the CIP as parks impact fee eligible and is
included in Impact Fee Eligible Parks Projects total.
Sources: City of Tukwila CIP 2017-2022; BERK Consulting, 2017.
Working with City staff, BERK calculated impact fee -eligible costs associated with each project by
estimating the portion of each project that is related to growth, resulting in an estimated impact fee -eligible
need of $42M. This need is based on the projects identified at the time of this memo; as part of the periodic
update of master planning documents, especially the six-year CIP, the City of Tukwila will update the
capital project list and additional value needed. In addition to the periodic review as required by the
Washington State Growth Management Act, the City has included provisions in both impact fees to allow
for automatic inflation adjustments.
Funding Other than Impact Fees
The identified need under the base LOS was also reduced by subtracting other funding sources that have
already been identified to fund these projects. The proposed ordinance includes up to 80% discounts of
the fee for low-income housing as allowed in RCW 82.02. The City identified expected funding for parks
capital facilities in the CIP. The draft impact fee eligible project list included with this memo identifies any
funding other that impact fees by project.
2.1.7 Future Need
Fire: The future need for fire will be determined by the number of incidents produced by new development.
As described in 2.1.4 Level of Service and Methodology on page 7 above, BERK used past incidents
information to estimate typical number of incidents by commercial development type.
Parks: Unlike fire, the City's financial need related to growth for Parks is the lesser of two numbers — the
future needs identified by the LOS standards or the capital projects that the City has identified. Any given
LOS standard may suggest that City will need to invest in capital projects at a level that is not physically
or financially possible. For example, the City's parks access -based LOS standard may suggest a necessary
investment that in an area where there is no land available.
Exhibit 8 below contains the comparison between the expected need using the per capita system investment
LOS service standard and the planned capital projects that the City has identified.
Exhibit 8. Parks Future Needs Identified by Per Capita LOS Standard and Identified Capital Projects
2017 SERVICE VALUE NEW SERVICE IDENTIFIED
POPULATION (2017$) POPULATION, NEED, 2018-
2018-2027 2027 (2017$)
Residential
Visitor (Commercial)
Total
19,660
50,330
4,707
7,334
69,990 $107,900,000 12,041
Per Capita System Investment
Value
$1,542
42 sill Fire and Parks Impact Fees Update Rate Study I Fee Calculations
1 12
Expected Need to Keep $1 8,562,972
Investment per Capita
Planned Projects $23,561,750
Per Capita Share of Planned $1,957
Projects
Study Per Capita Need $1,542
(System Investment)
Source: City of Tukwila, 2017; BERK Consulting, 2017.
2.1.8 Service Areas
Both the Tukwila Fire Department and the City of Tukwila have one service area that corresponds with the
City's boundaries. The Tukwila Fire Department has service sharing agreements with adjacent fire districts
which result in some responses to incidents outside of City limits and also results in some City incidents
including responses from other fire departments.
2.1.9 Unadjusted Rate Schedules
For both fire and parks impact fees, BERK found the expected fee by development before adjusting for
expected proportionate share.
In keeping with the existing impact fee structure, BERK calculated five fees depending upon the
development type. These five are:
• Residential: Single Family
• Residential: Multi -Family [determine how ADUs will be addressed]
• Commercial: Retail
• Commercial: Office
• Commercial: Industrial
For residential development, impact fees are charged per dwelling unit, not per person. To connect
residential units by type to the number of people, this study used information from the U.S. Census Bureau's
ACS 5 -Year Estimates. The single-family dwellings were assumed to have an average of 2.89 people living
in them compared to an average of 2.51 in multi -family dwellings (see Exhibit 2 on page 7 for more
information).
For impact fees collected on commercial developments, fees are charged per 1,000 square feet of
development. The unadjusted rates are as shown in
Exhibit 9 below.
:i'I Fire and Parks Impact Fees Update Rate Study I Fee Calculations
113 43
Exhibit 9. Unadjusted Rate Schedules for Fire and Parks by Development Type
FIRE: RESIDENTIAL
SINGLE MULTIFAMILY TOTAL
FAMILY
2016 Residential Units
3,795
4,004
7,799
201 6 Incidents per Property Type
973
1,182
2,154
Average Incidents per Residential Unit Type
0.256 0.295
Cost per Incident
$10,870
Unadjusted Fee: Cost per Unit
$2,785.67 $3,207.96
FIRE: COMMERCIAL
RETAIL OFFICE INDUSTRIAL TOTAL
2016 Built Square Feet
7,087,600 7,183,598 13,778,128 28,049,326
201 6 Incidents per Property Type
2,034
806
329
3,169
Incidents per Built 1,000 Sq. Ft. 0.287 0.112 0.024
Cost per Incident
$10,870
Unadjusted Fee: Cost per 1,000 $3,119.80
Gross Sq. Ft.
$1,219.63 $259.36
44 :��I Fire and Parks Impact Fees Update Rate Study Fee Calculations I 1 4
PARKS: RESIDENTIAL
SINGLE MULTIFAMILY TOTAL
FAMILY
Identified Service Area Capital Need from Growth
$23,561,750
Per Capita Investment Needed to Respond to
Growth for Service Area Population
$1,542
Household Size
2.89
2.51
Unadjusted Fee: Cost per Unit
$4,448.83 $3,875.51
PARKS: COMMERCIAL
RETAIL OFFICE INDUSTRIAL TOTAL
Identified Service Area Capital Need from Growth
$23,561,750
Per Capita Investment Needed to Respond to Growth for Service Area Population
$1,542
Expected Employees per 1,000 Sq. Ft. 2.47
2.22 1.23
Unadjusted Fee: Cost per 1,000 Gross $3,803.22 $3422.54 $1,890.51
Sq. Ft.
Sources: BERK Consulting, 2017
These schedules represent intermediary steps to a final rate schedule; each must be adjusted for the
expected proportion of future funding contributed by growth.
2.1 .1 0 Proportionate Share
As required RCW 82.02.030(1), BERK calculated the proportionate share of future payments reasonably
anticipated to be made by new development users in the form of fees, debt service payments, taxes, and
other payments specific to the identified public facilities.
To project these on-going revenue sources, BERK evaluated financial actuals provided by City staff for
2008-2017 (in the case of 2017, budgeted amounts were used as the year had not been completed at
the time of this study). These revenues were inflation-adjusted to a single year dollar basis using the Puget
Sound -area All Urban Consumer Price Index. In total, 15 revenue sources were projected through the study
period. Revenues were finally converted into per capita estimates for consistency with this study's growth
projection methodology.
The historic portion of general fund used to for fire and parks projects was used and applied to projected
future general fund revenues to find the amount expected to be spent on fire and parks capital projects
from general fund revenues.
:ill Fire and Parks Impact Fees Update Rate Study I Fee Calculations
115 45
Exhibit 10. Proportionate Share of Expected Fire and Parks Revenues
FIRE REVENUES
Average 2018-2027 Annual Fire Capital Revenues
$2,562,800
Average 2018-2027 Service Population
76,291
Estimated 2018-2027 Fire Per Capita Contribution
$33.59
PARKS REVENUES
Average 2018-2027 Annual Parks Capital Revenues
$1,052,487
Average 201 8-2027 Service Population
Estimated 201 8-2027 Parks Per Capita Contribution
76,291
$13.80
Note: All amounts show in 2017 dollars. Source: BERK Consulting, 2017.
2.1.1 1 Adjusted Rate Schedule
BERK incorporated the proportionate share revenue estimates in the unadjusted rates to create adjusted
rate schedules. The park rate schedule for commercial property types was further adjusted to reflect the
usage differential between employees and residents, referred to as the population coefficient adjustment
(assuming 9 hours x 5 days = 45 hours per week for employees versus 12 hours x 7 days = 84 hours for
residents). These rate schedules represent the final rate study calculation of suggested impact fee rates.
The adjusted rate schedules are presented in Exhibit 11 below.
Exhibit 11. Adjusted Rate Schedules for Fire and Parks by Development Type
FIRE: RESIDENTIAL
SINGLE MULTIFAMILY TOTAL
FAMILY
2016 Units
3,795
2016 Incidents per Property Type
973
4,004 7,799
1,182
2,154
Average Incidents per Unit
0.256 0.295
Cost per Incident
$10,870
Unadjusted per Unit Fee
$2,785.67 $3,207.96
Expected Revenue per Capita
People per Unit
$33.59
2.89 2.51
Expected Revenue per Unit
$96.94 $84.45
Adjusted Fire Impact Fee Rates
per Unit ***
$2,688.73 $3,123.51
46 :SII Fire and Parks Impact Fees Update Rate Study I Fee Calculations
16
FIRE: COMMERCIAL
RETAIL OFFICE INDUSTRIAL TOTAL
2016 Built Square Feet
2016 Incidents per Property Type
Incidents per Built 1,000 Gross Sq. Ft.
Cost per Incident
7,087,600 7,183,598
2,034 806
0.287 0.112
13,778,128 28,049,326
329 3,169
0.024
$10,870
Unadjusted Fee per 1,000 Gross Sq. Ft. $3,119.80 $1,219.63 $259.36
Expected Revenue per Employee $33.83
Employees per 1,000 Gross Sq. Ft.
2.47 2.22 1.23
Expected Revenue per 1,000 Gross
Square Feet
$82.87 $74.58 $41.19
Adjusted Fire Impact Fee Rates
per 1,000 Gross Sq. Ft. ***
$3,036.96 $1,145.05
$218.16
Before effect of City policy decisions.
�i,� Fire and Parks Impact Fees Update Rate Study I Fee Calculations
11747
PARKS: RESIDENTIAL SINGLE FAMILY MULTIFAMILY TOTAL
Identified Service Area Capital Need
from Growth
Per Capita Investment Needed to
Respond to Growth for Service
Area Population
Household Size
Unadjusted per Unit Fee
Expected Revenue per Capita
People per Unit
$23,531,750
$1,542
2.89 2.51
$4,448.83 $3,875.51
Expected Revenue per Unit
$13.80
2.89 2.51
$39.81 $34.68
Adjusted Parks Impact Fee Rates
per Unit ***
$4,409.02 $3,840.83
PARKS: COMMERCIAL
RETAIL OFFICE INDUSTRIAL TOTAL
2016 Built Square Feet
7,087,600 7,183,598 13,778,128 28,049,326
Identified Service Area Capital Need from
Growth
$23,531,750
Per Capita Investment Needed to Respond
to Growth for Service Area
Population
$1,542
Expected Employees per 1,000 Sq. Ft. 2.47
2.22 1.23
Expected Employees Adjusted for 1.32 1.19 .66
Population Coefficient
Unadjusted Fee per 1,000 Gross Sq. Ft. $2,034.97 $1,834.56 $1,017.49
Expected Revenue per Employee
Expected Employees per 1,000 Sq. Ft. 2.47 2.22 1.23
Expected Revenue per 1,000 Gross Sq. Ft. $34.03 $30.63 $16.92
$13.80
Adjusted Parks Impact Fee Rates
per 1,000 Gross Sq. Ft. ***
$2,000.94 $1,803.93 $1,000.57
Sources: BERK Consulting, 2017
** Before effect of policy decisions by City.
48 aim,
Fire and Parks Impact Fees Update Rate Study Fee Calculations
1 1 8
3 Plan Amendments
As part of the process of updating the fire and parks impact fee rates, two City planning documents
were amended to reflect updated information
3.1 FINANCIAL PLANNING MODEL AND CAPITAL IMPROVEMENT PROGRAM
The City amended the 2017-2022 Financial Planning Model and Capital Improvement Program (CIP) to
reflect updated project cost estimates, recalculated impact fee eligibility based on current growth
projections, and adjusted projects.
3.2 TUKWILA PARKS, RECREATION AND OPEN SPACE PLAN
The City amended the 2014 Tukwila Parks, Recreation and Open Space Plan (PROS Plan) to include a
second Level of Service standard of maintaining the system value per capita as growth occurs, to allow
the City to respond to growth in those areas where a park was already within 1/4 to Y2 mile of
development as well as to respond to growth in newly developing areas.
:111 Fire and Parks Impact Fees Update Rate Study I Plan Amendments
119 49
4 Attachments
4.1 APPENDIX A: LIST OF SYSTEM IMPROVEMENTS
4.1 .1 Fire System Improvements List
4.1 .2 Parks System Improvements List
50 :AI Fire and Parks Impact Fees Update Rate Study I Attachments
I 20
4.1 APPENDIX A: LIST OF SYSTEM IMPROVEMENTS
4.1.1 Fire System Improvements List
FIRE PROJECT NAME
COST
(2017$)
IMPACT FEE
ELIGIBLE
PROJECT
FUNDING
FROM IMPACT
FEES
% OF
PROJECT
FUNDED BY
IF
Relocate Fire Station 51
$12,509,000
Replace Fire Station 52 $17,652,000
Yes
$4,254,320
34%
Yes
$7,455,960
42%
Replace Fire Station 54 $14,753,000 Yes
$7,081,440
Fire Apparatus & Equipment $29,932,500 Yes
$74,846,000
0
$1 8,791,720
48%
0%
Sources: City of Tukwila and Tukwila Fire Department, 2017; BERK Consulting, 2017.
4.1.2 Parks System Improvements List
PARKS PROJECT NAME
COST
(2017$)
IMPACT FEE
ELIGIBLE
PROJECT
FUNDING
FROM IMPACT
FEES
% OF
PROJECT
FUNDED BY
IF
Park Acquisition
$2,200,000
Yes
$2,200,000
100%
Park Improvements
$1,838,000 Yes
$459,500
25%
Duwamish Hill Preserve $8,018,000
Yes
$2,004,000
25%
Tukwila Pond Trail & Boardwalk $7,250,000
Tukwila South Trail $6,525,000
Yes
$5,437,500
75%
Yes
$4,893,750
75%
Macadam Winter Garden & Wetland
Open Space Improvements
$1,450,000 Yes $725,000 50%
$5,800,000 Yes $4,350,000 75%
Tukwila Urban Center Pedestrian Bridge
Synthetic Turf Field
$10,741,000 Yes
$1,317,000
$2,900,000 Yes
$46,722,000
12%
$2,175,000
$ 23,561,750
75%
50%
Sources: City of Tukwila, 2017; BERK Consulting, 2017.
:ill
21 51
4.2 APPENDIX B: VALUATION FOR FIRE AND PARKS
4.2.1 Fire
Exhibit 12. Summary of Fire Assets and Values
ASSET TYPE
NUMBER
VALUE (2017$)
Apparatus
Land
45 vehicles and equipment, including 5 pumpers
4 Parcels
Fire Stations
4 Stations, 1 EOC
$8,224,500
$2,838,167
$46,800,328
$57,862,995
Exhibit 13. Fire Equipment and Apparatus
TOTAL
FIRE EQUIPMENT AND APPARATUS DESCRIPTION VALUE
(2017$)
Chevy Lumina sedan
$ 30,000
Ford Taurus sedan
Ford Crown Victoria sedan
$40,000
$55,000
Ford Expedition SUV
$70,000
Ford Expedition SUV
$42,322
International rescue truck
Darley pumper
$ 275,000
$700,000
Darley pumper
MCI Tow vehicle
$700,000
$80,000
Quad Cab Pickup 4x4 $79,000
Ford Expedition SUV $65,000
Trailer, mass casualty $35,000
Trailer, mass casualty $35,000
Aerial ladder truck, Pierce $1,800,000
Pumper, Ferrara $700,000
Pumper, Ferrara $700,000
Pumper, Pierce
Pumper, Pierce
$875,000
$875,000
Van, Chevy Astro $30,000
1/2 Ton Pickup, Chevy $50,000
3/4 Ton Pickup, Ford $60,000
3/4 Ton Pickup, Ford extended cab $65,000
'/2 Ton Pickup, extended cab $80 000
Ford Expedition SUV $80,000
Ford Expedition SUV $80,000
Trailer $2,000
Trailer, 32 FT $25,500
52 :ill
Fire and Park Impact Fee Rate Study, 201 8 I Attachments I 22
Trailer, Strong Boy, Tria-axle $71,000
Trailer, Carnai, Rescue boat $1,500
Trailer, Utility $3,000
Trailer, Whiteman $10,000
Trailer, Haulmark $90,000
Trailer Cargomate $10,000
Utility, John Deere HPX Gater $12,000
Flatbed Ford Super duty
Forklift Hyster
Boat, rescue
$60,000
$ 20,000
$ 30,000
Generator, trailer -mounted $25,000
Trailer, EZ Loader $10,000
Boat, Woolridge (50% Fire, 50% Police) $25,000
Boat, Woolridge (50% Fire, 50% Police)
Trailer, EZ Loader
Ford Escape SUV
Trailer, Cargomate
Trailer, Cargomate
$25,000
$5,500
$30,000
$10,000
$10,000
Aid Car, Ford Rescue
$190,000
Total Apparatus Replacement Cost (2017$)
$8,224,500
Exhibit 14. Fire Land Values
FIRE LOT AGGREGATE LAND PROJECTED FIRE
STATION ADDRESS SQ. FT. VALUE/SQ. FT. LAND VALUE
(2017$) (2017$)
Station 51
Station 52
Station 53
Station 54
444 Andover Park E
5900 S 147th St
4202 S 115th St
81,000
50,530
111,064
4237 S 144th St 38,860
$15.32
$8.14
$7.76
$1,241,182
$411,454
$862,121
$8.32 $323,411
Totals
281,454
$2,838,167
Exhibit 15. Fire Station Values
EXISTING FIRE COST PER
STATION ADDRESS SQ. FT. SQ. FT.
(2017$)
PROJECTED
REPLACEMENT
COST FOR FIRE
STATIONS (2017$)
Station 51
Station 52
444 Andover Park E
17,700
$1,048
$21,247,262
5900 S 147th St
Station 53
4202 S 115th St
3,350 $1,171
Station 54
EOC (Housed in Station 51)
4237 S 144th St
14,000
$ 3,779,372
$15,794,389
5,300 $1,165 $5,979,304
444 Andover Park E
$1,350
Totals
$46,800,328
:ill Fire and Park Impact Fee Rate Study, 201 8 I Attachments
23 53
PARK NAME PARK SQ. FT.
AVERAGE LAND PROJECTED PARK
VALUE PER SQ. FT. LAND VALUE
57th Ave South Park
Cascade View Park
17,424 $5.05 $168,976
$12.08 $1,204,125
$7.26 $35022305
26,136 $7.44 $211,610
4,356 $11.39 $531156
$10.44 $2,950,349
104,544
Crystal Springs Park
479,160
Hazelnut Park
Riverton Mini Park
Tukwila Park
278,784
Bicentennial Park
56,628
$16.46 $995,237
Codiga Park
291,852
$14.99 $4,479,299
Duwamish Hill Preserve 378,972 $13.40 $4,574,921
Fort Dent Park (Starfire Sports Complex) 2,234,628
$7.11 $17,300,293
Ikawa Park (Japanese Garden) 8,712 $13.57 $133,423
Macadam Wetlands & Winter Garden 431,244 $7.60 $3,422,262
Tukwila Community Center 553,212 $13.00 $7,108,895
Tukwila Pond Park 513,480 $37.53 $19,269,943
Black River Lot 13,068 $6.19 $78,589
Christensen Road Property/Riverview 130,680
Plaza Riverfront
$17.30
Green River Lot 4,356
$13.28
$2,371,865
$65,665
Interurban Hill Lot 74,052 $6.83 $587,357
Southgate Park 474,804
Tukwila Hill 78,408
Tukwila Parkway
$9.63 $4,666,669
$6.84 $586,807
43,560 $15.17 $741,420
Wilcox Drive/Pamela Drive Open Space 30,492
$4.02 $202,482
4.2.2 Parks
Exhibit 16. Summary of Parks Assets and Values
ASSET TYPE VALUE (2017$)
Equipment and Investments
$33,224,110
Land
$74,675,648
Total
$107,899,758
Exhibit 17. Parks Land Values
Total
9,682,860 $74,675,648
54 It Fire and Park Impact Fee Rate Study, 201 8 I Attachments
I24
CITY OF TUKWILA
FIRE IMPACT FEE SCHEDULE
Exhibit B
RESIDENTIAL - per dwelling unit
(a)
(b)
Single family
(d)
With fire sprinkler system installed
Multi -family
COMMERCIAL/NON-RESIDENTIAL
- per 1,000 square feet of development
(c)
(c)
(c)
(a)
(b)
(c)
(d)
(e)
(f)
Retail
Office
Industrial/manufacturing
Unadjusted Adjusted Fee FIRE
Fee fee (e) Reduction Impact
(e) (f) Fee
$ 2,786 $ 2,689 40% $ 1,671
$ 1,571
$ 3,208 $ 3,124 40% $ 1,925
$ 3,120 $ 3,037 40% $ 1,872
$ 1,220 $ 1,145 40% $ 732
$ 259 $ 218 40% $ 156
Attached accessory dwelling units are exempt from impact fees.
A structure with more than two dwelling units.
See the more detailed land use descriptions in the Land Use Categories document.
6% discount for single family units with fire sprinkler system installed representing the portion of all
incidents that were fire only - as opposed to emergency medical incidents. Per 16.26.120, B. 9. of the
Tukwila Municipal Code, "A fee payer installing a residential fire sprinkler system in a single-family
home shall not be required to pay the fire operations portion of the impact fee."
From the "Tukwila Fire and Park Impact Fees Rate Study, 2018".
Fee reduction to retain economic competitiveness.
55
56
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NOS.
2485 AND 2366, AS CODIFIED IN TUKWILA MUNICIPAL
CODE CHAPTER 16.28; REPEALING ORDINANCE NO. 2521
§7, 8 AND 9; REENACTING TMC CHAPTER 16.28, "PARKS
IMPACT FEES," TO AMEND THE PROCESS FOR IMPOSING
AND ADMINISTERING PARKS IMPACT FEES TO BETTER
ADDRESS THE NATURE OF DEVELOPMENT ACTIVITY IN
TUKWILA; ADDING REGULATIONS RELATING TO ANNUAL
PARKS IMPACT FEE UPDATES; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council adopted Ordinance No. 2366 on March 5, 2012;
Ordinance No. 2485 on October 19, 2015; and Ordinance No. 2521 on December 5, 2016,
all related to impact fees; and
WHEREAS the City may periodically update its impact fee schedules to reflect
changes in the cost of completing planned improvements and the fair share contribution
applicable to new growth; and
WHEREAS, on April 23, 2018, the Tukwila City Council, following adequate public
notice, held a public hearing on the draft ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Repealer. Ordinance Nos. 2485 and 2366 are hereby repealed in their
entirety.
Section 2. Repealer. Ordinance No. 2521, §7, 8 and 9 is hereby repealed, these
sections were codified as follows:
TMC Section 16.28.030, "Definitions"
TMC Section 16.28.120, "Exemptions"
TMC Section 16.28.125, "Residential Impact Fee Deferral"
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Section 3. TMC Chapter 16.28 Reenacted. Tukwila Municipal Code (TMC) Chapter
16.28 is hereby reenacted to read as follows:
CHAPTER 16.28
PARKS IMPACT FEES
Sections:
16.28.010 Authority and Purpose
16.28.020 Findings
16.28.030 Definitions
16.28.040 Parks Impact Fee Assessment
16.28.050 Use of Parks Impact Fees
16.28.060 Parks Impact Fee Capital Facilities Plan
16.28.070 Parks Impact Fee Formula
16.28.080 Annual Parks Impact Fee Updates
16.28.090 Individual Projects Parks Impact Fee Adjustments
16.28.095 Parks Impact Fce Deferral
16.28.100 Credits
16.28.110 Appeals
16.28.120 Exemptions
16.28.125 Residential Impact Fee Deferral
16.28.130 Refunds
16.28.140 Authority Unimpaired
Section 4. TMC Section 16.28.010 is hereby reenacted to read as follows:
16.28.010 Authority and Purpose
A. Authority. The City of Tukwila's impact fee financing program has been
developed pursuant to the City of Tukwila's policy powers, the Growth Management Act
as codified in Chapter 36.70A of the Revised Code of Washington (RCW).
B. Purpose. The purpose of the financing plan is to:
1. Develop a program consistent with Tukwila's Parks and Recreation
Department Capital Facilities Plan for joint public and private financing of public parks
facilities and services necessitated in whole or in part by development within the City of
Tukwila;
2. Create a mechanism to charge and collect fees to ensure that development
bears its proportionate share of the capital costs of public parks facilities necessitated by
development; and
3. Ensure fair collection and administration of such parks impact fees.
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Section 5. TMC Section 16.28.020 is hereby reenacted to read as follows:
16.28.020 Findings
The City Council finds and determines that growth and development in the City create
additional demand and need for public parks facilities in the City, and the City Council
finds that growth and development should pay its proportionate share of the costs of the
facilities needed to serve the growth and development in the City. Therefore, pursuant to
RCW 36.70A and RCW 82.02.050 through 82.02.100, which authorize the City to impose
and collect impact fees to fund public facilities that serve growth, the City Council adopts
this ordinance to impose parks impact fees for parks services. It is the Council's intent
that the provisions of this ordinance be liberally construed in establishing the parks impact
fee program.
Section 6. TMC Section 16.28.030 is hereby reenacted to read as follows:
16.28.030 Definitions
Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when
given their usual and customary meaning. For the purposes of this ordinance, unless the
context or subject matter clearly requires otherwise, the words or phrases defined in this
section shall have the following meanings:
1. "Accessory residential structure" means a structure that is incidental and
subordinate to the principal residence on the property and is physically detached to the
principal residence, but does not include accessory dwelling units. For example, a
detached garage or storage shed for garden tools are considered accessory residential
structures.
2. "Accessory dwelling unit (ADU)" means a dwelling unit that is within or
attached to a single-family dwelling or in a detached building on the same lot as the
primary single-family dwelling. An ADU is distinguishable from a duplex by being clearly
subordinate to the primary dwelling unit, both in use and appearance.
4-3. "Building permit" means an official document or certification of the City of
Tukwila issued by the City's building official which authorizes the construction, alteration,
enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement,
demolition, moving, or repair of a building or structure.
2/1. "City" means the City of Tukwila, Washington, County of King.
35. "Development activity" means any construction, reconstruction, or
expansion of a building, structure, or use, or any changes in use of a building or structure,
or any changes in the use of land, requiring development approval.
46. "Development approval" means any written authorization from the City,
which authorizes the commencement of the "development activity."
-57. "Encumber" means to reserve, set aside, or earmark the parks impact fees
in order to pay for commitments, contractual obligations, or other liabilities incurred for
the provision of parks services.
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68. "Fee payer" is a person, corporation, partnership, an incorporated
association or governmental agency, municipality, or similar entity commencing a land
development activity that requires a building permit and creates a demand for additional
parks capital facilities.
79. "Impact fee" means the payment of money imposed by the City on
development activity pursuant to this ordinance as a condition of granting development
approval in order to pay for the parks facilities needed to serve growth and development
that is a proportionate share of the cost of parks capital facilities used for facilities that
reasonably benefit development. Impact fees do not include reasonable permit fees,
application fees, administrative fees for collecting and handling parks impact fees, or the
cost of reviewing independent fee calculations.
810. "Low-income housing" means housing where monthly costs, including
utilities other than telephone, do not exceed are no greater than 30% of the resident's
household monthly income and where household monthly income must be is 80% or less
of the King County Median family income adjusted for family size as reported by the U.S.
Department of Housing and Urban Development.
911. "Owner" means the owner of record of real property, as found in the
records of King County, Washington, or a person with an unrestricted written option to
purchase property; provided, that if the real property is being purchased under a recorded
real estate contract, the purchaser shall be considered the owner of the property.
1012. "Parks facilities" means those capital facilities identified as park and
recreational facilities in the City's Capital Facilities Plan.
1-1-13. "Proportionate share" means that portion of the cost for parks facility
improvements that are reasonably related to the service demands and needs of
development.
Section 7. TMC Section 16.28.040 is hereby reenacted to read as follows:
16.28.040 Parks Impact Fee Assessment
A. The City shall collect parks impact fees from applicants seeking development
approvals from the City for any development activity in the City for which building permits
are required, effective January 1, 2009, consistent with the provisions of this ordinance.
B. Parks impact fees shall be assessed at the time of a technically -complete
building permit application that complies with the City's zoning ordinances and building
and development codes. Parks impact fees shall be collected from the fee payer at the
time the building permit is issued, unless a fee deferral agreement is executed pursuant
to TMC Section 16.26.095.
C. Except if otherwise exempt or deferred, the City shall not issue the required
building permit unless or until the parks impact fees are paid.
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Section 8. TMC Section 16.28.050 is hereby reenacted to read as follows:
16.28.050 Use of Parks Impact Fees
A. Pursuant to this ordinance, parks impact fees shall be used for parks facilities
that will reasonably benefit growth and development, and only for park facilities addressed
by the City's Capital Facilities Element of the Comprehensive Plan.
B. Fees shall not be used to make up deficiencies in City facilities serving an
existing development.
C. Fees shall not be used for maintenance and operations, including personnel.
D. Parks impact fees shall be used for but not limited to land acquisition, site
improvements, engineering and architectural services, permitting, financing,
administrative expenses and applicable mitigation costs, and capital equipment
pertaining to parks facilities.
E. Parks impact fees may also be used to recoup public improvement costs incurred
by the City to the extent that growth and development will be served by the previously
constructed improvement.
F. In the event bonds or similar debt instruments are or have been issued for parks
facility improvements, impact fees may be used to pay the principal and interest on such
bonds.
Section 9. TMC Section 16.28.060 is hereby reenacted to read as follows:
16.28.060 Parks Impact Fee Capital Facilities Plan
In order to collect parks impact fees, the City must first adopt a parks capital facilities plan
as an element of the City's Comprehensive Plan. The City's Capital Facilities Plan for
parks services shall consist of the following elements:
1. The City's capacity over the next six years, based on an inventory of the
City's parks facilities both existing and under construction;
2. The forecast of future needs for parks facilities based upon the City's
population projections;
3. A six-year financial plan component, updated as necessary, to maintain at
least a six-year forecast for financing needed within projected funding levels;
4. Application of the formula set forth in this ordinance based upon the
information in the capital facilities plan; and
5. City Council Action. No new or revised impact fee shall be effective until
adopted by the City Council following a duly advertised public hearing to consider the
City's Capital Facilities Plan or plan update, except for fees adjusted through the annual
update process outlined in TMC Section 16.28.080.
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Section 10. TMC Section 16.28.070 is hereby reenacted, thereby eliminating Figure
16-3, "2008 Tukwila Parks Impact Fees Calculation," and Figure 16-4, "Tukwila Parks
Capital Facilities List," and shall read as follows:
16.28.070 Parks Impact Fee Formula
A. The impact fee formula is based on the assumptions found in Figure 16-3, 2008
t_.ist,"Tukwila Fire and Parks Impact Fee Rate Study, 2018," Exhibit A attached to the
ordinance and by this reference fully incorporated herein. A fee schedule is codified as
Figure 16-1. Fee Schedule, attached hereto as Exhibit B.
B. Each development shall mitigate its impacts on the City's parks facilities by
payment of a fee that is based on the type of land use and square footage of the
development, and proportionate to the cost of the parks facility improvements necessary
to serve the needs of growth. For residential development, fee amount is based on
number of units; for commercial development, fee amount is based on square footage of
the development.
C. Applications for a change of use shall receive credit based on the existing use.
This credit is calculated by deducting the fee amount of the existing use from the fee of
the proposed use.
Section 11. TMC Section 16.28.080, "Annual Parks Impact Fee Updates," is hereby
established to read as follows:
16.28.080 Annual Parks Impact Fee Updates
Park impact fee rates shall be updated annually using the following procedures:
1. The Director of Parks and Recreation ("Director) shall use the Construction
Cost Index for Seattle (June -June) published by the Engineering News Record to
calculate annual inflation adjustments in the impact fee rates. The parks impact fees shall
not be adjusted for inflation should the index remain unchanged.
2. The impact fee rates, as updated annually per TMC Section 16.28.080(1),
shall be effective January 1, 2019, and on January 1 of each year thereafter, and a copy
shall be provided to the City Council.
Section 12. TMC Section 16.28.090 is hereby reenacted to read as follows:
16.28.080090 Individual Project Parks Impact Fee Adjustments
A. The City may adjust a parks impact fee at the time the fee is imposed in order to
consider unusual circumstances in specific cases to ensure that impact fees are imposed
fairly.
B. In calculating the fee imposed on a particular development, the City shall permit
consideration of studies and data submitted by a developer in order to adjust the amount
of the fee. The developer shall submit an independent fee calculation study to the Director
of Parks and Recreation, who shall review the study to determine that the study:
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1. Is based on accepted impact fee assessment practices and methodologies;
2. Uses acceptable data sources and the data used is comparable with the
uses and intensities planned for the proposed development activity;
3. Complies with the applicable state laws governing impact fees;
4. Is prepared and documented by professionals who are mutually agreeable
to the City and the developer and who are qualified in their respective fields; and
5. Shows the basis upon which the independent fee calculation was made.
C. In reviewing the study, the Director of Parks and Recreation ("Director") may
require the developer to submit additional or different documentation. If an acceptable
study is presented, the Director Recreation may adjust the fee for the
particular development activity. The Director shall consider the documentation submitted
by the applicant, but is not required to accept such documentation that the Director
reasonably deems to be inaccurate or unreliable.
D. A developer requesting an adjustment or independent fee calculation may pay
the impact fees imposed by this ordinance in order to obtain a building permit while the
City determines whether to partially reimburse the developer by making an adjustment or
by accepting the independent fee calculation.
Section 13. TMC Section 16.28.100 is hereby reenacted to read as follows:
16.28.090100 Credits
In computing the fee applicable to a given development, credit shall be given for the fair
market value measured at the time of dedication, for any dedication of land for
improvements to, or new construction of, any parks facilities that are identified in the
Capital Facilities Element and that are required by the City as a condition of approving
the development activity.
Section 14. TMC Section 16.28.110 is hereby reenacted to read as follows:
16.28.4 0110 Appeals
A. Any fee payer may pay the impact fees imposed by this ordinance under protest
in order to obtain a building permit.
B. Appeals regarding parks impact fees imposed on any development activity may
only be submitted by the fee payer of the property where such development activity will
occur. No appeal shall be permitted unless and until the impact fee at issue has been
paid.
C. Determinations by the City staff with respect to the applicability of parks impact
fees to a given development activity, or the availability of a credit, can be appealed to the
City's Hearing Examiner pursuant to this section.
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D. An appeal shall be filed within 10 working days of payment of the impact fees
under protest or within 10 working days of the City's issuance of a written determination
of a credit or exemption decision by filing with the City Clerk a notice of appeal giving the
reasons for the appeal and paying the accompanying appeal fee as set forth in the
existing fee schedule for land use decisions.
Section 15. TMC Section 16.28.120 is hereby reenacted to read as follows:
16.28.120 Exemptions
A. The parks impact fees are generated from the formula for calculating the fees as
set forth in this chapter. The amount of the impact fees is determined by the information
contained in the adopted parks master plan and related documents, as appended to the
City's Comprehensive Plan. All development activity located within the City shall be
charged a parks impact fee; provided, that the following exemptions shall apply.
B. The following shall be exempt from parks impact fees:
1. Replacement of a structure with a new structure having the same use, at the
same site, and with the same gross floor area, when such replacement is within 12
months of demolition or destruction of the previous structure.
2. Alteration, expansion, or remodeling of an existing dwelling or structure
where no new units are created and the use is not changed.
3. Construction of an accessory residential structure.
4. Miscellaneous improvements including, but not limited to, fences, walls,
swimming pools, and signs that do not create an increase in demand for parks services.
5. Demolition of or moving an existing structure within the City from one site to
another.
6. Parks impact fees for the construction of low-income housing may be
reduced at the discretion of the Parks and Recreation Director when requested by the
property owner in writing prior to permit submittal and subject to the following criteria:
a. The property owner must Ssubmittat of a fiscal impact analysis of how a
reduction in impact fees for the project would contribute to the creation of low-income
housing; and
Gb. The developer property owner must record a covenant per RCW
82.02.060(3) that prohibits using the property for any purpose other than for low-income
housing at the original income limits for a period of at least 10 years. At a minimum, the
covenant must address price restrictions and household income limits for the low-income
housing, and that if the property is converted to a use other than low income housing
within 10 years, the property owner must pay the City the applicable impact fees in effect
at the time of conversion.
c. Should the property owner satisfy the criteria in TMC Section
16.28.120.B.6., a and b, and the Director determines a fee reduction is in the best interest
of the City, the fees will be reduced, based on the following table:
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b. Fee reduction table.
Unit Size
Affordability Target 1
Fee Reduction
2 or more bedrooms
80% 2
40%
2 or more bedrooms
60% 2
60%
Any size
50% 2
80%
1 — Units to be sold or rented to a person or household whose monthly
housing costs, including utilities other than telephone, do not exceed
30% of the household's monthly income.
2 — Percentage of King County Median family income adjusted for family
size as reported by the U.S. Department of Housing and Urban
Development.
7. Change of Use. A development permit for a change of use that has less
impact than the existing use shall not be assessed a parks impact fee.
8. A fee payer required to pay for system improvements pursuant to RCW
43.21 C.060 shall not be required to pay an impact fee for the same improvements under
this ordinance.
Section 16. TMC Section 16.28.125 is hereby reenacted to read as follows:
16.28.125 Residential Impact Fee Deferral
A. Purpose. The purpose of this chapter is to comply with the requirements of RCW
recovery in the construction industry.
gA. Applicability.
1. The provisions of this chapter section shall apply to all impact fees
established and adopted by the City pursuant to Chapter 82.02 RCW, including parks
impact fees assessed under Tukwila Municipal Code Chapter 16.28.
2. Subject to the limitations imposed in the Tukwila Municipal Code, the
provisions of this chapter section shall apply to all building permit applications for single-
family detached and single-family attached residential construction. For the purposes of
this chaptersection, an "applicant" includes an entity that controls the named applicant,
is controlled by the named applicant, or is under common control with the named
applicant.
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GB. Impact Fee Deferral.
1. Deferral Request Authorized. Applicants for single-family attached or single-
family detached residential building permits may request to defer payment of required
impact fees until the sooner of:
a. final inspection; or
b. the closing of the first sale of the property occurring after the issuance
of the applicable building permit;
which request shall be granted so long as the requirements of this chapter
section are satisfied.
2. Method of Request. A request for impact fee deferral shall be declared
submitted at the time of preliminary plat application (for platted development) or building
permit application (for non -platted development) in writing on a form or forms provided by
the City, along with payment of the applicable application or permit fees.
3. Calculation of Impact Fees. The amount of impact fees to be deferred under
this chapter section shall be determined as of the date the request for deferral is
submitted.
DC. Deferral Term. The term of an impact fee deferral granted under this chapter
section may not exceed 18 months from the date the building permit is issued ("Deferral
Term"). If the condition triggering payment of the deferred impact fees does not occur
prior to the expiration of the Deferral Term, then full payment of the impact fees shall be
due on the last date of the Deferral Term.
ED. Deferred Impact Fee Lien.
1. Applicant's Duty to Record Lien. An applicant requesting a deferral under
this chapt r section must grant and record a deferred impact fee lien, in an amount equal
to the deferred impact fees, against the property in favor of the City in accordance with
the requirements of RCW 82.02.050(3)(c).
2. Satisfaction of Lien. Upon receipt of final payment of all deferred impact fees
for the property, the City shall execute a release of deferred impact fee lien for the
property. The property owner at the time of the release is responsible, at his or her own
expense, for recording the lien release.
FE. Limitation on Deferrals. Each applicant for a single-family residential
construction permit, in accordance with his or her contractor registration number or other
unique identification number, is entitled to annually receive deferrals for the first 20 single-
family residential construction building permits. The deferral entitlements allowed under
identification number, per year.
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16.28.095 Parks Impact Fee Deferral
A. In order to encourage residential and mixed use development within the Tukwila
Urban Center Transit Oriented Development (TUC TOD) zoning district, fee deferrals of
1. The property owner must submit a technically complete building permit
application clearly depicting the project for which the fee deferral agreement will apply.
2. Before issuance of the building permit, the property owner must submit a
written letter requesting that the parks impact fee be deferred. The City will not consider
e e
be submitted to the City no later than December 31, 2016.
3. The project must be located west of the Green River and be within the TUC
TOD zoning district per Figure 18 16, District Map, in Title 18 of the Tukwila Municipal
Code.
�. The project must include at I ast 100 residential units and at least 50 percent
of this section, the term "residential" does not include hotels, motels, bed and breakfasts
or other similar transient lodging accommodations.
ee-- . e••. --
executed
-
executed prior to issuance of the building permit. The Mayor is authorized to execute
such agreements on behalf of the City. Provisions must be included in the agreement to
.- e
by the property owner. Provisions may include, but are not limited to, a lien against
appeals under TMC Section 16.28.100.
e ee -.
requests including, but not limited to, the ability of the property owner to satisfy the
City, and/or to protect the public welfare.
i'suance. The property owner shall make 8 equal, annual installment payments to the
City, with the first payment due to the City no later than 36 months after issuance of the
building permit, with the final payment being due no later than 120 months from issuance
of -the building permit. The property owner may pay off the entire balance any time prior
to the end of the 10 year deferral term.
the building permit is issued (or closest date thereof). Interest shall be compounded
-ee-
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68
E. The parks impact fcc deferral agreement may be consolidated with any
Council.
Section 17. TMC Section 16.28.130 is hereby reenacted to read as follows:
16.28.140130 Refunds
A. If the City fails to expend or encumber the impact fees within 10 years from the
date the fees were paid, unless extraordinary, compelling reasons exist for fees to be held
longer than 10 years, the current owner of the property on which the impact fees were
paid may receive a refund of such fees. Such extraordinary or compelling reasons shall
be identified in written findings by the City Council.
B. The City shall notify potential claimants by first class mail that they are entitled to
a refund. In determining whether impact fees have been expended or encumbered,
impact fees shall be considered expended or encumbered on a first -in, first -out basis.
C. Owners seeking a refund must submit a written request for a refund of the fees
to the City within one year of the date the right to claim a refund arises or notice is given,
whichever comes later.
D. Any impact fees for which no application has been made within the one-year
period shall be retained by the City and expended on appropriate parks facilities.
E. Refunds of impact fees shall include any interest earned on the impact fees by
the City.
Section 18. TMC Section 16.28.140 is hereby reenacted to read as follows:
16.28.130 140 Authority Unimpaired
Nothing in this ordinance shall preclude the City from requiring the fee payer to mitigate
adverse environmental effects of a specific development pursuant to the State
Environmental Policy Act, Chapters 43.21C RCW and/or Chapter 58.17 RCW, governing
plats and subdivisions, provided that the exercise of this authority is consistent with
Chapters 43.21C and 82.02 RCW.
Section 19. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to other
local, state or federal laws, codes, rules, or regulations; or ordinance numbering and
section/subsection numbering.
Section 20. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
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Section 21. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Attachments: Exhibit A — Tukwila Fire and Parks Impact Fee Rate Study, 2018
Exhibit B — Fee Schedule
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70
Exhibit A
Tukwila Fire and Parks Impact Fee Rate Study, 2018
For Exhibit A to this Parks Impact Fee ordinance, refer to the
"Tukwila Fire and Parks Impact Fee Rate Study, 2018" that is included
as Exhibit A with the Fire Impact Fee ordinance.
71
72
CITY OF TUKWILA
PARK IMPACT FEE SCHEDULE
EXHIBIT B
RESIDENTIAL - per dwelling unit
(a)
(b)
Unadjusted Adjusted Fee PARK
Fee (e) fee (e) Reduction Impact Fee
(f)
Single family $ 4,449 $ 4,409 40% $ 2,669
Multi -family $ 3,876 $ 3,841 40% $ 2,325
COMMERCIAL/NON-RESIDENTIAL
- per 1,000 square feet of development
(c) Retail $ 2,035 $ 2,001 40% $ 1,221
(c) Office $ 1,835 $ 1,804 40% $ 1,101
(d) K-12 Educational facilities $ 220
(c) Industrial/manufacturing $ 1,017 $ 1,001 40% $ 610
Attached accessory dwelling units are exempt from impact fees.
A structure with more than two dwelling units.
See the more detailed land use descriptions in the Land Use Categories document.
80% discount for K-12 educational facilities.
From the "Tukwila Fire and Park Impact Fees Rate Study, 2018".
Fee reduction to retain economic competitiveness.
73
CITY OF TUKWILA
FIRE AND PARK IMPACT FEE UPDATE, 2018
REGIONAL IMPACT FEE COMPARISION - FIRE
Land Use Categories
Residential - per housing unit
Single family
FIRE IMPACT FEES
CATEGORY MIX
Tukwila 2018 (a) ! Renton ! Puget Snd ! Issaquah
Unadj Adj Reduced to I RFA (b) I RFA (d)
Tukwila
2018
Renton RFA
Puget Sound
RFA
Issaquah
100% Var. 1 40% I I
I I I I I
I I I I I
2,786 2,689 1,671 830 1,741 796
830
I I I I I
3,208 3,124 1,925 965 1,639 1,091
I I 965
I I I I I
Resid All
/Comm
46% 26%
54% 30%
Resid All
/Comm
46% 24%
54% 28%
Resid All
/Comm
52% 25%
48% 23%
Resid All
/Comm
42% 25%
58% 34%
Duplex
Multifamily
Accessory dwelling unit
TOTAL RESIDENTIAL
5,994 5,812 3,596 1,795 3,380 1,887
100% 57%
100% 52%
100% 48%
100% 58%
Commercial/Non-Residential - per 1,000 SF
Retail
1 r I 1 r
I I I
3,120 3,037 1,872 1,250 1,210 820
I I I 1,290 I I 360
i 3,920 i i 12,290
2,360 . 2,670
I 5,9201 I 7,790
68% 29%
27% 12%
6% 2%_
75% 36%
16% 8%
9% 4%
33% 17%
33% 17%
33% 17%
61% 25%
19% 8%
19% 8%
hotel/motel/resort
Medical care facility (hospital)
Leisure facilities
Restaurant/lounge
Average
Office
I I 2,948
4,786
I I I
1,220 1,145 732
I I
I I
i
2601
1,990
560
I 720
4,480
I
1,210
,
!
I I
260
8,550
500
1,040
3,990
Medical/dental office
Church/non-profit
Education
Special Public Facilities
Average
Industrial
i i
1,602
2,868
259 218 156
1
f
iI 150
I
I 1,210
I I_
260
TOTAL NON-RESIDENTIAL
4,599 4,400 2,759 1,660 1 3,630 1,340
100% 43%
100% 48%
100% 52%
100% 42%
TOTAL
• 10,592 10,212 6,355 3,455 . 7,010 3,227
100%
100%
100%
100%
(a) From the Tukwila Fire and Park Impact Fees Rate Study, 2018; unadjusted fees are reduced to retain economic competitiveness in region.
(b) 2018, 2017-2018 City of Renton Fee Schedule
DRAFT Tukwila_Impact_Fee_Model_FinComm04172018.xlsb 4/11/2018
CITY OF TUKWILA
FIRE AND PARK IMPACT FEE UPDATE, 2018
REGIONAL IMPACT FEE COMPARISON - PARKS
Land Use Categories
CATEfORY MIX
Tukwila 2018 (a)
Unadj Adj Reduced
Renton
(b)
Ed- Issa-
mondsquah(d)I
Red-
mond
Bothell
(f)
Tukwila
2018
Renton
Edmonds
Issa-
quah
Red-
mond
Bothell
I
I
(c) I
(e)
100% I
Var. I
40% I
I
I
I
I
Resid
All
Resid
All
Resid
All
Resid
All
Resid
All
Resid
All
I
I
I
I
/Comm
/Comm
/Com
/Comm
/Com
/Comm
Residential - per housing unit
I
I
I
I
I
I
Single family
4,449
4,409
2,669
2,740
2,734
6,174
4,585
1,557
53%
34%
55%
55%
54%
30%
54%
31%
59%
45%
50%
24%
mobile home
1,944
4,009
I
I
I
I
I
I
I
Multifamily
3,876
3,841
2,325
2,2241
2,340
5,317
3,183
1,557
47%
29%
45%
45%
46%
26%
46%
27%
41%
31%
50%
24%
Multifamily: 2 units, duplexes & ADU
I
I
2,224 1
I
I
I
4,009
Multifamily 3-4 units
2,117
Multifamily 5 or more units
I
1,859 I
I
I
I
TOTAL RESIDENTIAL
8,324 !
8,250 !
4,995 !
4,964 !
5,074 !
11,491 !
7,768 !
3,114
100%
63%
100%
100%
100%
56%
100%
58%
100%
77%
100%
49%
Commercial/Non-Residential
I
I
I
I
I
I
- per 1,000 SF ***
I
I
I
I
I
I
Retail
2,035
2,001
1,221
1,340
5,390
551
1,090
42%
15%
0%
0%
33%
15%
65%
27%
23%
5%
33%
17%
hotel/motel/resort
Medical care facility (hospital)
Leisure facilities
I
I
I
I
I
I
I
Restaurant/lounge
I
I
I
I
I
I
I
Average
I
I
I
I
I
I
I
Office
1,835
1,804
1,101
- I
1,340
1,360
1,242
1,090
38%
14%
0%
0%
33%
15%
16%
7%
53%
12%
33%
17%
Medical/dental office
I
I
I
I
I
I
I
Church/non-profit
Education
I
I
I
I
I
I
I
Average
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Industrial
1,017
1,001
610
-
1,340 i
1,560 i
559 i
1,090
21%
8%
0%
0%
33%
15%
19%
8%
24%
6%
33%
17%
construction
I
�
5301
TOTAL NON-RESIDENTIAL
4,887
f
4,805 !
I
2,932
I
-
4,020 ;
8,310 ,
I
2,352
3,270
100%
37%
0%
0%
100%
44%
100%
42%
100%
23%
100%
51%
TOTAL
13,211
13,0551
7,927 4,9641
9,0941
19,8011
10,1201
6,384
100%
100%
100%
100%
100%
100%
(a) From the Tukwila Fire and Park Impact Fees Rate Study, 2018; unadjusted fees are reduced to retain economic competitiveness in region.
(b) 2018, 2017-2018 City of Renton Fee Schedule
(c) http://www.edmondswa.gov/development-fees.html
(d) City of Issaquah website; Impact Fee Schedule 2018-02-01
( e) City of Redmond website; http://www.redmond.gov/cms/one.aspx?pageld=203336
(f) City of Bothell website, updaetd 2/17; http://www.ci.bothell.wa.us/DocumentCenter/View/961
01
DRAFT Tukwila_Impact_Fee_Model_FinComm04172018.xlsb
4/11/2018
INCREASE (DECREASE)
Fire
Park
Total
Fire
Park
Total
Fire
Park
Total
Fire
Park
Total
Fire
Park
Total
CITY OF TUKWILA
FIRE AND PARK IMPACT FEE UPDATE, 2018
Tukwila Impact Fee Comparison
Residential
Percentage Increase (Decrease)
Residential
Commercial / Non -Residential
TOTAL
Single Family Multi - family
TOTAL
Retail
Office
Industrial I
TOTAL
per hsg unit I
$ 6,355
$ 7,927
Office
per 1,000 sq ft
I
$ 4,341 $ 4,250 , $ 8,591
$ 1,902
$ 3,585
$ 749
$ 1,243
$ 725
$ 927 I
I
$ 1,474
$ 2,171
$ 1,292
$ 802
$ (892)
$ 264
$ 29
$ 348 I
$ 428
$ 1,414
$ 2,122
$ 2,824
$ 580
$ 419
I
$ 127 !
$ 262 1
$ 1,993
$ 1,652 1
$ 3,645
$ 2,094
$ (628)
$ 377 ;
$ 1,842
$ 5,487
Fire
Park
Total
Fire
Park
Total
Fire
Park
Total
Fire
Park
Total
Fire
Park
Total
CITY OF TUKWILA
FIRE AND PARK IMPACT FEE UPDATE, 2018
Tukwila Impact Fee Comparison
76
DRAFT Tukwila_Impact_Fee_Model_FinComm04172018.xlsb
4/9/2018
2018 UPDATED
Percentage Increase (Decrease)
Residential
Commercial / Non -Residential
TOTAL
Single Family Multi- family I TOTAL
Retail Office Industrial 1 TOTAL
per hsg unit I
per 1,000 sq ft I
Single Family
$ 1,671 $ 1,925 I $ 3,596
$ 2,669 $ 2,325 $ 4,995
$ 1,872 $ 732 $ 156 1 $ 2,759
$ 1,221 $ 1,101 $ 610 '1 $ 2,932
$ 6,355
$ 7,927
Office
Industrial I
TOTAL
$ 4,341 $ 4,250 , $ 8,591
$ 3,093 $ 1,833 $ 766 . $ 5,691
$ 14,282
76
DRAFT Tukwila_Impact_Fee_Model_FinComm04172018.xlsb
4/9/2018
Percentage Increase (Decrease)
2008 Original
Residential
Residential
Commercial / Non -Residential
Commercial / Non -Residential
TOTAL
Single Family
Multi- family !
TOTAL
Retail
Office
Industrial I
TOTAL
I
per hsg unit
60%!
66%I
1
69%
77%
per 1,000 sq ft
1
23%!
133%I
$ 4,453
$ 4,342
$ 922
$ 1,426
$ 1,200 !
$ 1,398 1
$ 2,122
$ 2,824
$ 580
$ 419
$ 1,624
$ 837
$ 127 !
$ 262 1
$ 2,331
$ 1,518
74%
1
-26%
97%j
48%
i
11%I
$ 2,348
$ 2,598 ;
$ 4,946
$ 999
$ 2,461
$ 389 ;
$ 3,849
$ 8,795
76
DRAFT Tukwila_Impact_Fee_Model_FinComm04172018.xlsb
4/9/2018
Percentage Increase (Decrease)
Residential
Residential
Commercial / Non -Residential
Commercial / Non -Residential
TOTAL
TOTAL
Single Family
Multi -family)
TOTAL
Retail
Office Industrial I
TOTAL
81%
87%
60%!
66%I
1
69%
77%
223%
191%
-55%
32%
23%!
133%I
18%
93%
43%
83%
5%
9%
1
85%
64%i
74%
210%
-26%
97%j
48%
62%
76
DRAFT Tukwila_Impact_Fee_Model_FinComm04172018.xlsb
4/9/2018
Average Annual Change Over 9 Years
Residential
Commercial / Non -Residential
TOTAL
Single Family
Multi - family
TOTAL
Retail
Office Industrial �
TOTAL
9%
10%
7%1
7%i
8%
9%
25%
21%
-6%
4%
3%1
15%I
2%
10%
5%
9%
9%
7%I
8%
23%
-3%
11%I
5%
7%
76
DRAFT Tukwila_Impact_Fee_Model_FinComm04172018.xlsb
4/9/2018
CITY OF TUKWILA,
SELECTED FIRE AND PARK IMPACT FEE DATA
2018 AND 2008 STUDY
EMPLOYMENT
DEVELOPMENT SQUARE FOOTAGE
City Profile - EMPLOYMENT
Residential:
2008
Land Use
2008
Change
2016
Single family
Change
Category
Category
(27)
-1%
Multi -family
4,107
4,004
Count
%
Count
%
Count
%
Retail
20,384
43%'
17,485
35%
(2,899)
-14%
Office6,245
-30%
13%
15,948
32%I
9,703
155%
5,622,348
360%
Industrial
16,274,400
58%
I
49%j
Industrial
20,343
43%
16,896
34%j
(3,447)
-17%
TOTAL46,972
100%.
50,329
100%
3,357
7%
DEVELOPMENT SQUARE FOOTAGE
HOUSING UNITS
City Profile - HOUSING UNITS
City Profile - BUILT SQUARE FEET
Residential:
2008
Land Use
2008
Change
2016
Single family
Change
3,795
Category
(27)
-1%
Multi -family
4,107
4,004
!
(103)
Count
%
Count
%
Count
%
Retail
10,192,000
36%
7,087,600
25%
(3,104,400)
-30%
Office
1,561,250
6%
7,183,598
26%;
5,622,348
360%
Industrial
16,274,400
58%
13,778,128
49%j
(2,496,272)
-15%
TOTAL
28,027,650
100%!
28,049,326
100%!
21,676
0%
HOUSING UNITS
City Profile - HOUSING UNITS
Growth Projections - EMPLOYMENT
Residential:
2008
2017
j
Change
516
Single family
3,822
3,795
Count % Count %
(27)
-1%
Multi -family
4,107
4,004
!
(103)
-3%
TOTAL
7,929 !
7,799
4,826 43%! 2,462 34%!
(130)
-2%
Growth Projections - HOUSING UNITS
Growth Projections - EMPLOYMENT
Land Use
2008-2020
2018-2027
Change
Category
516
Increase (Decrease)
Category
174%
Count % Count %
Count %
Retail
4,836 43% 2,548 35%I
(2,288) -47%
Count
I
i
Office
1,482 13%1 2,324 32%j
842 57%
Industrial
4,826 43%! 2,462 34%!
(2,364) -49%
I
I
1
TOTAL 1
11,144 100%1 7,334 100%1
(3,810) -34%
Growth Projections - HOUSING UNITS
Growth Projections - BUILT SQUARE FEET
Residential:
Land Use
2008-2020
Change
2018-2027
516
Increase (Decrease)
Category
174%
Multi -family
2,384
1,504
(880)
-37%
Count
%
Count
%
Count
%
Retail
2,418,000
36%
1,032,840
25%
(1,385,160)
-57%
Office
370,500
6% 1,046,820
26%
676,320
183%
Industrial
3,860,800
58% 2,007,679
49%
(1,853,121)
-48%
I
I
1
TOTAL
j 6,649,300
100%; 4,087,339
100%i
(2,561,961)
-39%
Growth Projections - HOUSING UNITS
Residential:
2008
2017
Change
Single family
516
1,412
896
174%
Multi -family
2,384
1,504
(880)
-37%
TOTAL
2,900
2,916
16
1%
77
SERVICE POPULATION PER UNIT OF MEASURE
2007
2016
Land Use
gory
Cate o
Residents
per Hsg
Unit
Employees
per 1,000
Built SF
Land Use
Cate o
g ry
Residents
per Hsg
Unit
Employees
per 1,000
Built SF
Single family 2.54
Multifamily 2.49
Retail 2.00
Office 4.00
Industrial 1.25
Single family 2.89
Multifamily 2.51
Retail 2.47
Office 2.22
Industrial 1.23
TOTAL 5.03 . 7.25
TOTAL 5.40 ; 5.91
FIRE INCIDENTS
CHANGE 2007-2016
Land Use
Category
Residents
per Hsg
Unit
Employees
per 1,000
Built SF
Single family 0.35
Multifamily 0.02
Retail I 0.47
Office (1.78)
Industrial � (0.02)
TOTAL . 0.37. (1.34)
2007
2016
CHANGE IN FIRE INCIDENTS 2007-2016
Land Use
Category
Incidents
per
Housing
Unit
Incidents
per 1,000
Built SF
TOTAL
Land Use
Category
Unit
Measure
TOTAL
Land Use
Category
Incidents
per
Housing
Unit
Incidents
per 1,000
Built SF
TOTAL
Single family!
Multifamily
Retail
Office
Industrial
868
1,215
868 19%
1,215 26%
1,458 1,458 31%
625 625 13%
508 508 11%
Single family I 973 ! ! 973 18%
Multifamily 1,182 1,182 22%
Retail 2,034 2,034 38%
Office 806 806 15%
Industrial 329 329 6%
Single family hsg unit 105 12%
Multifamily hsg unit (33) -3%
Retail 1,000 SF 576 40%
Office 1,000 SF 181 29%
Industrial 1,000 SF (179) -35%,
TOTAL I 2,083 ! 2,591 ! 4,674 100%
TOTAL ! 2,154 ! 3,169 ! 5,323 100%
TOTAL ! ! 649 14%
IMPACT FEE REVENUE
Sum of NET ACCT YEA
ACCT TITLE T FD T 2009 2010 2011 2012 2013 2014 2015 2016 2017 Grand Total
=FIRE IMPACT FEES - 304 $ 13,342 $ 142,383 $ 157,654 $ 33,686 $ 139,714 $ 66,862 $ 46,406 $ 183,867 $ 285,075 $ 1,068,990
- PARK IMPACT FEE - 104 79,519 58,980 58,373 189,838 296,425 683,136
PARK IMPACT FEES - 301 17,767 108,177 88,487 21,128 25,661 261,220
Grand Total $ 31,109 $ 250,560 $ 246,141 $ 54,814 $ 244,893 $125,842 $ 104,779 $ 373,706 $ 581,501 $ 2,013,345
Fire impact fee average over the 9 -year period is $119,000.
Park impact fee average over the 9 -year period is $105,000
78
LUltem
102
103
106
113
114
132
133
135
141
156
157
162
173
175
176
185
186
300
301
302
303
304
305
306
308
309
310
311
313
314
315
316
317
318
319
320
321
322
323
324
326
327
328
329
330
331
LAND USE CLASSIFICATIONS ALIGNED WITH IMPACT FEE CATEGORIES
Land Use Description Impact Fees 1 Category
Barn, General Purpose (102) Industrial
Barn, Special Purpose (103) Industrial
Controlled Atmosphere Storage (106) Industrial
Loafing Shed (113) Industrial
Milkhouse Shed (114) Industrial
Individual Livestock Shelter (132) Industrial
Prefabricated Storage Shed (133) Industrial
Greenhouse, Hoop, Arch -Rib, Small (135) Industrial
Greenhouse, Hoop, Arch -Rib, Medium (141) Industrial
Alternative School (156) Office
Maintenance Storage Building (157) Industrial
Outbuildings (162) Industrial
Church Educational Wing (173) Office
Skating Rink, Ice (175) Retail
Skating Rink, Roller (176) Retail
Truck Wash (185) Retail
Light Commercial Manufacturing Utility Bldg (186) Industrial
APARTMENT (300) Multifamily
ARMORY (301) Industrial
AUDITORIUM (302) Office
AUTOMOBILE SHOWROOM (303) Retail
BANK (304) Retail
BARN (305) Industrial
BOWLING ALLEY (306) Retail
CHURCH WITH SUNDAY SCHOOL (308) Office
CHURCH (309) Office
CITY CLUB (310) Office
CLUBHOUSE (311) Office
CONVALESCENT HOSPITAL (313) Office
COUNTRY CLUB (314) Retail
CREAMERY (315) Industrial
DAIRY (316) Industrial
DAIRY SALES BUILDING (317) Retail
DEPARTMENT STORE (318) Retail
DISCOUNT STORE (319) Retail
DISPENSARY (320) Retail
DORMITORY (321) Multifamily
FIRE STATION (STAFFED) (322) Office
FRATERNAL BUILDING (323) Office
FRATERNITY HOUSE (324) Multifamily
GARAGE, STORAGE (326) Industrial
GOVERNMENT BUILDING (327) Office
HANGAR, STORAGE (328) Industrial
HANGAR, MAINTENANCE & OFFICE (329) Industrial
HOME FOR THE ELDERLY (330) Retail
HOSPITAL (331) Office
1 of 5 79
LUltem Land Use Description Impact Fees I Category
332 HOTEL, LIMITED (332) Retail
335 JAIL-CORRECTIONAL FACILITY (335) Office
336 LAUNDROMAT (336) Retail
337 LIBRARY, PUBLIC (337) Office
338 LOFT (338) Multifamily
339 LUMBER STORAGE SHED, HORIZONTAL (339) Industrial
340 MARKET (340) Retail
341 MEDICAL OFFICE (341) Office
342 MORTUARY (342) Office
343 MOTEL, LIMITED (343) Retail
344 OFFICE BUILDING (344) Office
348 Residence (348) Single Family
349 FAST FOOD RESTAURANT (349) Retail
350 RESTAURANT, TABLE SERVICE (350) Retail
351 Single -Family Residence (351) Single Family
352 MULTIPLE RESIDENCE (LOW RISE) (352) Multifamily
353 RETAIL STORE (353) Retail
355 Fine Arts & Crafts Building (355) Retail
356 Classroom (356) Office
358 Gymnasium (School) (358) Office
365 ELEMENTARY SCHOOL (ENTIRE) (365) Office
366 JUNIOR HIGH SCHOOL (ENTIRE) (366) Office
368 Classroom (College) (368) Office
369 Commons (College) (369) Office
374 Multi-Purp Bldg (College) (374) Office
377 COLLEGE (ENTIRE) (377) Office
378 STABLE (378) Industrial
379 THEATER, LIVE STAGE (379) Retail
380 THEATER, CINEMA (380) Retail
381 VETERINARY HOSPITAL (381) Office
384 BARBER SHOP (384) Retail
386 MINI-WAREHOUSE (386) Industrial
387 TRANSIT WAREHOUSE (387) Industrial
388 UNDERGROUND PARKING STRUCTURE (388) Office
390 Lumber Storage Bldg., Vert. (390) Industrial
391 MATERIAL STORAGE BUILDING (391) Industrial
392 INDUSTRIAL ENGINEERING BUILDING (392) Industrial
405 SKATING RINK (405) Retail
406 STORAGE WAREHOUSE (406) Industrial
407 WAREHOUSE, DISTRIBUTION (407) Industrial
408 Service Station (408) Retail
409 T-HANGAR (409) Industrial
410 AUTOMOTIVE CENTER (410) Retail
412 NEIGHBORHOOD SHOPPING CENTER (412) Retail
413 COMMUNITY SHOPPING CENTER (413) Retail
414 REGIONAL SHOPPING CENTER (414) Retail
80
2 of 5
ILUltem I Land Use Description Impact Fees Category
1
416 TENNIS CLUB, INDOOR (416) Retail
417 HANDBALL -RACQUETBALL CLUB (417) Retail
418 HEALTH CLUB (418) Retail
419 CONVENIENCE MARKET (419) Retail
419 1 or 2 family dwelling Single Family
4191 Single Family Home Single Family
419A Single Family House W / Acc Dwelling Unit Single Family
419M Single Family Modular Home W / Foundation Single Family
419T Single Family Trailer W / 0 Foundation Single Family
423 MINI -LUBE GARAGE (423) Retail
424 GROUP CARE HOME (424) Retail
426 DAY CARE CENTER (426) Retail
427 FIRE STATION (VOLUNTEER) (427) Office
428 HORSE ARENA (428) Retail
431 OUTPATIENT SURGICAL CENTER (431) Office
434 Car Wash - Self Serve (434) Retail
435 Car Wash - Drive Thru (435) Retail
436 Car Wash - Automatic (436) Retail
441 COCKTAIL LOUNGE (441) Retail
442 BAR/TAVERN (442) Retail
444 DENTAL OFFICE/CLINIC (444) Office
446 SUPERMARKET (446) Retail
447 COLD STORAGE FACILITIES (447) Industrial
451 MULTIPLE RESIDENCE (SENIOR CITIZEN) (451) Multifamily
453 INDUSTRIAL FLEX BUILDINGS (453) Industrial
454 Shell, Industrial (454) Industrial
455 AUTO DEALERSHIP, COMPLETE (455) Retail
456 Tool Shed (456) Retail
458 WAREHOUSE DISCOUNT STORE (458) Retail
459 MIXED RETAIL WIRES. UNITS (459) Retail
460 Shell, Neigh. Shop. Ctr. (460) Retail
461 Shell, Community Shop. Ctr. (461) Retail
462 Shell, Regional Shop. Ctr. (462) Retail
465 Food Booth - Prefabricated (465) Retail
466 Boat Storage Shed (466) Industrial
467 Boat Storage Building (467) Industrial
468 SHED, MATERIAL STORAGE (468) Industrial
470 EQUIPMENT (SHOP) BUILDING (470) Industrial
471 LIGHT COMMERCIAL UTILITY BUILDING (471) Industrial
472 EQUIPMENT SHED (472) Industrial
473 Material Shelter (473) Industrial
475 POULTRY HOUSE -FLOOR OPERATION (475) Industrial
477 FARM UTILITY BUILDING (477) Industrial
479 Farm Utility Storage Shed (479) Industrial
481 MUSEUM (481) Office
482 CONVENTION CENTER (482) Office
3 of 5 81
LUltem Land Use Description Impact Fees I Category
483 FITNESS CENTER (483) Retail
484 HIGH SCHOOL (ENTIRE) (484) Office
485 NATATORIUM (485) Retail
486 FIELD HOUSES (486) Industrial
487 VOCATIONAL SCHOOLS (487) Office
489 JAIL - POLICE STATION (489) Office
490 KENNELS (490) Retail
491 GOVERNMENT COMMUNITY SERVICE BUILDING (491) Office
492 Shell, Office (492) Office
494 INDUSTRIAL LIGHT MANUFACTURING (494) Industrial
495 INDUSTRIAL HEAVY MANUFACTURING (495) Industrial
496 LABORATORIES (496) Office
497 COMPUTER CENTER (497) Office
498 BROADCAST FACILITIES (498) Office
499 Dry Cleaners -Laundry (499) Retail
508 Car Wash - Canopy (508) Retail
511 Drug Store (511) Retail
513 Regional Discount Shopping Center (513) Retail
514 Community Center (514) Office
515 Casino (515) Retail
525 MINI WAREHOUSE, HI -RISE (525) Industrial
526 Service Garage Shed (526) Retail
527 MUNICIPAL SERVICE GARAGE (527) Office
528 GARAGE, SERVICE REPAIR (528) Retail
529 SNACK BAR (529) Retail
530 CAFETERIA (530) Retail
531 MINI -MART CONVENIENCE STORE (531) Retail
532 FLORIST SHOP (532) Retail
533 WAREHOUSE FOOD STORE (533) Retail
534 WAREHOUSE SHOWROOM STORE (534) Retail
537 Lodge (537) Retail
551 ROOMING HOUSE (551) Multifamily
571 Passenger Terminal (571) Industrial
573 ARCADE (573) Retail
574 VISITOR CENTER (574) Office
578 Mini -Bank (578) Retail
581 POST OFFICE - MAIN(581) Office
582 POST OFFICE - BRANCH(582) Office
583 POST OFFICE - MAIL PROCESSING(583) Industrial
584 Mega Warehouse (584) Industrial
587 Shell, Multiple Residence (587) Multifamily
589 MULTIPLE RESIDENCES ASSISTED LIVING (LOW RISE) Multifamily
594 Hotel, Full Service (594) Retail
595 Hotel, Limited Service (595) Retail
596 Shell, Apartment (596) Multifamily
597 Mixed Retail w/ Office Units (597) Retail
82
4 of 5
ILUItem I Land Use Description Impact Fees 'Category
600 Administrative Office (600) Office
700 Mall Anchor Department Store (700) Retail
701 BASEMENT, FINISHED (701) Single Family
702 BASEMENT, SEMIFINISHED (702) Single Family
703 BASEMENT, UNFINISHED (703) Single Family
707 BASEMENT, RESIDENT LIVING (707) Single Family
709 BASEMENT, RETAIL (709) Retail
710 MULTIPLE RESIDENCE, RETIREMENT COMMUNITY COMPLEX Multifamily
718 Banquet Hall (718) Retail
782 Shell, Elderly Assist. Multi. Res. (782) Multifamily
783 Shell, Retirement Community Complex (783) Multifamily
784 Shell, Multiple Res. (Sen. Citizen) (784) Multifamily
810 WAREHOUSE OFFICE (810) Industrial
820 OPEN OFFICE (820) Office
830 MIXED USE RETAIL (830) Retail
840 MIXED USE OFFICE (840) Office
841 HOTEL, FULL SERVICE (841) Retail
842 HOTEL, SUITE (842) Retail
843 MOTEL, FULL SERVICE (843) Retail
844 MOTEL, SUITE (844) Retail
845 CONDO, OFFICE (845) Office
846 CONDO, RETAIL (846) Retail
847 MIXED USE -OFFICE CONDO (847) Office
848 MIXED USE -RETAIL CONDO (848) Retail
852 CONDO HOTEL, FULL SERVICE (852) Retail
853 CONDO HOTEL, LIMITED SERVICE (853) Retail
860 LINE RETAIL (860) Retail
984 Luxury Apartment (984) Multifamily
985 Senior Center (985) Office
5 of 5 83
Property Use Code
100 Assembly, other office
110 Fixed use recreation places, other office
111 Bowling alley Retail
112 Billiard center, pool hall Retail
113 Electronic amusement center Retail
116 Swimming facility: indoor or outdoor Retail
120 Variable use amusement, recreation places Retail
121 Ballroom, gymnasium Retail
122 Convention center, exhibition hall Retail
123 Stadium, arena Retail
124 Playground office
129 Amusement center: indoor/outdoor Retail
130 Places of worship, funeral parlors office
131 Church, mosque, synagogue, temple, chapel office
134 Funeral parlor Retail
140 Clubs, other Retail
141 Athletic/health club Retail
142 Clubhouse Retail
144 Casino, gambling clubs Retail
150 Public or government, other office
151 Library office
152 Museum office
155 Courthouse office
160 Eating, drinking places Retail
161 Restaurant or cafeteria Retail
162 Bar or nightclub Retail
180 Studio/theater, other Retail
181 Live performance theater Retail
182 Auditorium or concert hall Retail
183 Movie theater Retail
200 Educational, other office
210 Schools, non -adult office
211 Preschool Retail
213 Elementary school, including kindergarten office
215 High school/junior high school/middle school office
241 Adult education center, college classroom Retail
254 Day care, in commercial property Retail
255 Day care, in residence, licensed Retail
256 Day care in residence, unlicensed. Retail
300 Health care, detention, & correction, other office
311 24-hour care Nursing homes, 4 or more persons Retail
321 Mental retardation/development disability facility Retail
322 Alcohol or substance abuse recovery center Retail
84 1
323 Asylum, mental institution office
331 Hospital - medical or psychiatric Office
332 Hospices Office
340 Clinics, Doctors offices, hemodialysis centers Office
341 Clinic, clinic -type infirmary Office
342 Doctor, dentist or oral surgeon's office Office
343 Hemodialysis unit Retail
361 Jail, prison (not juvenile) office
365 Police station office
419 1 or 2 family dwelling Single Family
429 Multifamily dwellings > 6 units Multifamily
439 Boarding/rooming house, residential hotels Multifamily
449 Hotel/motel, commercial Retail
459 Residential board and care Retail
460 Dormitory type residence, other Multifamily
500 Mercantile, business, other Retail
511 Convenience store Retail
519 Food and beverage sales, grocery store Retail
529 Textile, wearing apparel sales Retail
539 Household goods, sales, repairs Retail
549 Specialty shop Retail
557 Personal service, including barber & beauty shops Retail
559 Recreational, hobby, home repair sales, pet store Retail
564 Laundry, dry cleaning Retail
569 Professional supplies, services Retail
571 Service station, gas station Retail
579 Motor vehicle or boat sales, services, repair Retail
580 General retail, other Retail
581 Department or discount store Retail
592 Bank Retail
593 Office: veterinary or research Office
596 Post office or mailing firms Retail
599 Business office Office
600 Utility, defense, agriculture, mining, other Industrial
610 Energy production plant, other Industrial
629 Laboratory or science lababoratory Industrial
631 Defense, military installation Industrial
635 Computer center Office
639 Communications center office
640 Utility or Distribution system, other Industrial
642 Electrical distribution Industrial
644 Gas distribution, pipeline, gas distribution Industrial
645 Flammable liquid distribution, pipeline, flammable Industrial
647 Water utility Industrial
648 Sanitation utility Industrial
659 Livestock production Industrial
669 Forest, timberland, woodland Industrial
285
679 Mine or quarry Industrial
700 Manufacturing, processing Industrial
800 Storage, other Retail
807 Outside material storage area Retail
808 Outbuilding or shed Retail
819 Livestock, poultry storage Industrial
839 Refrigerated storage Retail
849 Outside storage tank Industrial
880 Vehicle storage, other Industrial
881 Parking garage, (detached residential garage) Single Family
882 Parking garage, general vehicle Retail
888 Fire station office
891 Warehouse Industrial
899 Residential or self storage units Retail
900 Outside or special property, other Retail
919 Dump, sanitary landfill Industrial
926 Outbuilding, protective shelter Industrial
935 Campsite with utilities retail
951 Railroad right of way Industrial
952 Railroad yard Industrial
974 Aircraft loading area Industrial
981 Construction site Industrial
983 Pipeline, power line or other utility right of way Industrial
984 Industrial plant yard - area Industrial
3111 24-hour care Nursing homes, 4 or more persons Multifamily
4191 1 or 2 family dwelling Single Family
4192 1 or 2 family dwelling Multifamily
4293 Multifamily dwellings > 6 units Multifamily
4294 Multifamily dwellings > 6 units Multifamily
4295 Multifamily dwellings > 6 units Multifamily
4296 Multifamily dwellings > 6 units Multifamily
110G Fixed use recreation places, other office
1105 Fixed use recreation places, other Retail
111M Bowling alley Retail
113M Electronic amusement center Retail
123F Stadium, arena Retail
123S Stadium, arena Retail
124M Playground Retail
124P Playground office
141G Athletic/health club Retail
150C Public or government, other office
150H Public or government, other office
150M Public or government, other office
151M Library office
161F Restaurant or cafeteria Retail
161M Restaurant or cafeteria Retail
161R Restaurant or cafeteria Retail
86 3
183M Movie theater Retail
200A Educational, other office
213E Elementary school, including kindergarten office
215H High school/junior high school/middle school office
215M High school/junior high school/middle school office
241C Adult education center, college classroom Retail
300M Health care, detention, & correction, other office
322S Alcohol or substance abuse recovery center Retail
323M Asylum, mental institution office
331H Hospital - medical or psychiatric Office
340B Clinics, Doctors offices, hemodialysis centers Office
340P Clinics, Doctors offices, hemodialysis centers Office
341N Clinic, clinic -type infirmary Office
342D Doctor, dentist or oral surgeon's office Office
342M Doctor, dentist or oral surgeon's office Office
342U Doctor, dentist or oral surgeon's office Office
365C Police station office
419A 1 or 2 family dwelling Single Family
419M 1 or 2 family dwelling Single Family
419T 1 or 2 family dwelling Single Family
419U 1 or 2 family dwelling Multifamily
429B Multifamily dwellings > 6 units Multifamily
429C Multifamily dwellings > 6 units Multifamily
429U Multifamily dwellings > 6 units Multifamily
439R Boarding/rooming house, residential hotels Multifamily
449H Hotel/motel, commercial Retail
449V Hotel/motel, commercial Retail
459Q Residential board and care Retail
500B Mercantile, business, other Office
500M Mercantile, business, other Retail
5005 Mercantile, business, other Retail
511C Convenience store Retail
511M Convenience store Retail
519M Food and beverage sales, grocery store Retail
519T Food and beverage sales, grocery store Retail
529M Textile, wearing apparel sales Retail
539B Household goods, sales, repairs Retail
539M Household goods, sales, repairs Retail
549E Specialty shop Retail
549M Specialty shop Retail
549S Specialty shop Retail
557M Personal service, including barber & beauty shops Retail
559H Recreational, hobby, home repair sales, pet store retail
559P Recreational, hobby, home repair sales, pet store retail
571C Service station, gas station Retail
571G Service station, gas station Retail
579T Motor vehicle or boat sales, services, repair Retail
581A Department or discount store Retail
581C Department or discount store Retail
581D Department or discount store Retail
581K Department or discount store Retail
581M Department or discount store Retail
596M Post office or mailing firms Retail
599M Business office Office
599P Business office Office
635D Computer center Office
648M Sanitation utility Industrial
648T Sanitation utility Industrial
700C Manufacturing, processing Industrial
700M Manufacturing, processing Industrial
800M Storage, other Retail
808T Outbuilding or shed Retail
880B Vehicle storage, other Industrial
882C Parking garage, general vehicle Retail
8820 Parking garage, general vehicle Office
891F Warehouse Industrial
919T Dump, sanitary landfill Industrial
88
5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING RESOLUTION NO.
1901 TO ADOPT AN AMENDED 2017-2022 FINANCIAL
PLANNING MODEL AND THE CAPITAL IMPROVEMENT
PROGRAM FOR GENERAL GOVERNMENT AND THE
CITY'S ENTERPRISE FUNDS.
WHEREAS, the Capital Improvement Program (CIP) and the Financial Planning
Model for the period of 2017-2022 are resource documents to help plan directions the
City will consider for the future; and
WHEREAS, the Financial Planning Model and Capital Improvement Program are not
permanent fixed plans, but are guidelines or tools to help reflect future goals and future
resources at the time budgets are being planned; and
WHEREAS, the park and fire impact fee eligible projects have been revised based
on the Tukwila Fire and Parks Impact Fees Rate Study, 2018;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Resolution No. 1901 is hereby amended with the City Council's adoption
of the Amended 2017-2022 Financial Planning Model and accompanying Capital
Improvement Program, incorporated by this reference as if fully set forth herein, as set
forth in Sections 2 and 3 of this resolution.
Section 2. The park impact fee eligible projects are revised as follows:
W:\Word Processing\Resolutions\Financial Planning Model & CIP amended 4-2-18
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Page 1 of 3
89
90
Project Name
Original CIP 2017-2022
Project
Cost
Impact Fee
Funding
Expected
Lake to Sound Trail
$ 86,000
$ -
Park Acquisition
832,000
-
Multipurpose Trails
349,000
-
Park Improvements
1,835,000
-
Fort Dent Park
2,695,000
-
Municipal Arts Fund
70,000
-
Duwamish Hill Preserve Phases II & III
7,997,000
2,500,000
Dog Park Projects
80,000
-
Parks, Recreation & Open Space Plan
223,000
-
Tukwila Pond Trail & Boardwalk
3,664,000
2,400,000
Tukwila South Trail
1,000,000
-
Hand Boat Launches
1,801,000
-
Macadam Winter Garden & Wetland
1,000,000
237,200
Open Space Improvements
1,275,000
-
Tukwila Urban Center Pedestrian Bridge
10,741,000
1,100,000
Synthetic Turf Field
TOTAL
$ 33,648,000
$ 6,237,200
Amended CIP 2017-2022
Project
Cost
Impact Fee
Funding
Eligible
$ -
Expected
2,200,000
2,200,000
1,838,000
459,500
8,018,000
2,004,000
_ I
_
7,250,000
5,437,500
6,525,000
4,893,750
1,450,000
725,000
5,800,000
4,350,000
10, 741, 000
1,317,000
2,900,000
2,175, 000
$ 46,722,000 !
$ 23,561,750
Section 3. The fire impact fee eligible projects are revised as follows:
Project Name
Original CIP 2017-2022
Impact Fee
Project Funding
Cost
Expected
Relocate Fire Station 51
$ 12,207,000 i $ 1,168,000
Replace Fire Station 52
5,657,000 i 3,150,000
Replace Fire Station 54
7,329,000-
i
Fire Apparatus & Equipment
29,932,000 i -
TOTAL
$ 55,125, 000 $ 4,318,000
W:\Word Processing\Resolutions\Financial Planning Model & CIP amended 4-2-18
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Amended CIP 2017-2022
Project
Impact Fee
Funding
Cost
Eligible
$ 12,
509,
000
$ 4,254,320
17,
652,
000
7,455,960
14,753,000
7,081,/110
29,
932,
000 i
-
$ 74,
846,
000
$ 18, 791, 720
Page 2 of 3
Section 4. The detail of Capital Improvement Program projects will be reflected in
the published Amended 2017-2022 Financial Planning Model and accompanying Capital
Improvement Program.
Section 5. A copy of the Amended 2017-2022 Financial Planning Model and
accompanying Capital Improvement Program shall be kept on file electronically and
accessible from the City's website in accordance with Washington State records retention
schedule requirements and City policy, and shall be made available to the public upon
request.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this _ day of , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
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Page 3 of 3
91
92
CD
C)
CITY OF TUKWILA
FIRE IMPACT FEE ELIGIBLE PROJECTS
2018
Project Name
Project Cost
j
j
Growth / Capacity j
I I
% j Cost j
%
Non Capacity j Non Capacity (k) Funding j Growth/Capacity Funding
! I I I Unspent I Developer I Bond Measure I Unfunded
I
Bond Measure Total Secured Total 'Secured ,
j Cost j (j) Funding ( Unfunded Impact Fee i contribution 1 (J) I Funding I Impact Fee
i i
I I
c j thru 2017 i
i i Eligible (m)
Relocate Fire Station 51
$ 12,509,000
(a) j
48%
(d) j $ 6,004,320 j
52%
j $ 6,504,680
j $ 4,754,680
(g) j $ 4,754,680 j
$ 1,750,000
j j $ 1,750,000 j
j $ 1,750,000
j $ 4,254,320
Replace Fire Station 52
17,652,000
(a) I
48%
(d) I 8,472,960 I
52%
I 9,179,040
i 8,162,040
(g) 8,162,040 I
1,017,000
I 1,017,000 I j
j 1,017,000
(I)1
7,455,960
Replace Fire Station 54
14,753,000
(a) I
48%
(d) I 7,081,440 I
52%
1 7,671,560
I 5,907,280
(g) 5,907,280 I
1,764,280
I E I
I -
I 7,081,440
Fire Apparatus & Equipment
29,932,000
(b) I
47%
(e)I 14,205,677 I
53%
I 15,726,323
I 15,726,323
(h) 15,726,323 (
-
I I 14,205,677
(h) I 14,205,677
(h)I
-
I
I I
I
I
I I
I I
I
I
Total
$ 74,846,000
j
48%
j $ 35,764,397 j
52%
j $ 39,081,603 j $ 34,550,323
(i) j $ 34,550,323 j $ 4,531,280 j $ 1,017,000 j $ 1,750,000 j $ 14,205,677
(i) j $ 16,972,677
j $ 18,791,720
(a) Fire Station replacement cost is based on January 2018 schematic design for fire station 51
(b) Represents 10 -year need based on most recent fire apparatus and equipment 20 -year annual needs schedule.
( c) Based on estimated cost and square footage for emergency center relocated to Justice Center under Public Safety Plan
(d) Based on additional square footage for new or replaced fire stations
(e) Based on projected needs in relation to estimated replacement cost of existing equipment and apparatus.
(f) Area dedicated to EOC will double as meeting area.
(g) Bond measure proceeds allocated to fire stations, total of $18,824,000.
(h) Fire equipment and apparatus totally funded by bond measure
(i) Bond measure total = $18,824,000 for fire stations and $12,127,834 for fire apparatus and equipment purchases scheduled through 2027.
(j) Bond measure applied to non -capacity cost first.
(k) Secured funding allocated first to non -capacity unless specifically identified for growth/capacity portion
(I) Impact fees can only be used to pay for growth / added capacity.
(m) Financing costs on the impact fee eligible poriton of the project costs are estimated to be approximately $8 million over the 10 -year period.
4/11/2018
94
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Relocate Fire Station 51 Project No. 90830402
DESCRIPTION: Construct 15,000 sf Fire Station 51 with 5,000 sf designated from additional growth.
Fire Station 51 will be relocated as the existing facility is in the floodplain and seismically unsound.
JUSTIFICATION: Expected growth in Tukwila South led to the donation of land for the new fire station as part of the
Tukwila South Development Agreement.
STATUS: A site has been identified and there has been an exchange of the property deed.
MAINT. IMPACT:
COMMENT: Project is on Fire Impact Fee list for $4.3 million.
FINANCIAL Through Estimated
(in $000's)
2015 2016 2017
2018
2019
2020
2021
2022
BEYOND TOTAL
EXPENSES
Project Location'
'
l
L
..-
Russe'
S 16'.^.:
,I
1
y
J
r
Design
51
60
226
1,305
2,160
750
4,552
Land (RMI)
710
710
Const. Mgmt.
0
Construction
80
6,566
1,361
8,007
TOTAL EXPENSES
761
60
226
1,385
8,726
2,111
0
0
0
13,269
FUND SOURCES
Public Safety Bond
4,754
4,754
Land Donation/Sale
710
710
Tukwila South contribution
500
300
300
300
300
' 50
1,750
Fire Impact Fees
51
300
300
300
300
300 '
2,754
4,305
City / Bonding / Othe
0
(4,694)
(274)
785
8,126
1,511
(600)
(350)
(2,754)
1,750
TOTAL SOURCES
761
60
226
1,385
8,726
2,111
0
0
0
13,269
2017 - 2022 Capital Improvement Program
95
Project Location'
'
l
L
..-
Russe'
S 16'.^.:
,I
1
y
J
r
i
:
1?•
;
I
K C
T
ia
w ti \N )* 1.41,
I
S ae�s
lir
2017 - 2022 Capital Improvement Program
95
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Replace Fire Station 52 Project No. 90830405
DESCRIPTION: As part of the City's Public Safety Plan, replace Fire Station 52 after evaluation of need based on relocation
of Fire Station 51.
The existing Fire Station 52 is too small to house needed fire apparatus and equipment and is also seismically
JUSTIFICATION: unsound. In order to continue to provide fast response times, high quality service, and meet compliance with state
law, Fire Station 52 must be replaced.
STATUS: Fire Station 52 is part of the City's Public Safety Plan.
MAINT. IMPACT:
COMMENT: Project is on Fire Impact Fee list for $7.5 million.
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018 2019 2020 2021 2022 BEYOND TOTAL
EXPENSES
+�
'
.in
Project Location
_ 4
1•i
Eicig
}..
I
41 �
S 1,.
�
Design
8
157
890
2,286
2,540
474
it
_
6,355
Land (RNV)
I
Fy y
0
Const. Mgmt.
;' -k`.
0
Construction
_
SO
266
10,506
525
11,297
TOTAL EXPENSES
0
8
157
890
2,552
13,046
999
0
0
17,652
FUND SOURCES
Awarded Grant
0
Public Safety Bond
9,179
9,179
Fire Impact Fees
1,017
1,017
Fire Impact Fees Expected
7,455
7,455
City / Bonding / Other
0
(9,171)
(860)
890
2,552
13,046
999
0
(7,455)
1
TOTAL SOURCES
0
8
157
890
2,552
13,046
999
0
0
17,652
96 2017 - 2022 Capital Improvement Program
+�
'
.in
Project Location
_ 4
1•i
Eicig
}..
I
41 �
S 1,.
�
L
I1I1!1
�
/
it
_
.: b `. a
I
Fy y
V
;' -k`.
_I'Lll
51.: & \ \ Or li -,___
'-'14S
_
SO
96 2017 - 2022 Capital Improvement Program
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Replace Fire Station 54 Project No. 91630402
DESCRIPTION: As part of the City's Public Safety Plan, replace Fire Station 54.
The existing Fire Station 54 is too small to house needed fire apparatus and equipment and is also seismically
JUSTIFICATION: unsound. In order to continue to provide fast response times, high quality service, and meet compliance with
state law, Fire Station 54 must be replaced.
STATUS: Fire Station 54 is part of the City's Public Safety Plan.
MAINT. IMPACT:
COMMENT: Project is on Fire Impact Fee list for $7 million.
FINANCIAL Through Estimated
(in $000's)
2015 2016 2017
2018
2019
2020
2021
2022
BEYOND TOTAL
EXPENSES
Design
130
700
1,800
2,000
372
5,002
Land (RNV)
854
854
Const. Mgmt.
0
Construction
178
8,274
445
8,897
TOTAL EXPENSES
0
0
130
1,554
1,978
10,274
817
0
0
14,753
FUND SOURCES
Awarded Grant
0
Public Safety Bond
5,907
5,907
Fire Impact Fees
0
Fire Impact Fees Expected
7,081
7,081
City / Bonding / Othe
0
(5,907)
130
1,554
1,978
10,274
817
0
(7,081)
1,765
TOTAL SOURCES
0
0
130
1,554
1,978
10,274
817
0
0
14,753
2017 - 2022 Capital Improvement Program 57
97
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Fire Apparatus & Equipment Project No. 91630401
DESCRIPTION: Fire trucks and fire equipment must be purchased on a regular basis. Funding this life/safety equipment via
a voter -approved bond guarantees that the Tukwila Fire Department is fully funded for the life of the bond.
JUSTIFICATION: Safety and well-being of Tukwila citizens and visitors.
STATUS: Part of the City's Public Safety Plan.
MAINT. IMPACT:
COMMENT: Public Safety Plan will be paid with voter -approved debt.
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018
2019
2020
2021
2022
BEYOND TOTAL
EXPENSES
Design
0
Land (R/VV)
0
Apparatus & Equip
14
421
1,629
2,590
362
1,333
1,672
21,910
29,931
Construction
0
TOTAL EXPENSES
0
14
421
1,629
2,590
362
1,333
1,672
21,910
29,931
FUND SOURCES
Awarded Grant
0
Public Safety Bond
12,127
17,804
29,931
Fire Impact Fees
0
Fire Impact Fees Expected
0
City Oper. Revenue
0
(12,113)
421
1,629
2,590
362
1,333
1,672
4,106
0
TOTAL SOURCES
0
14
421
1,629
2,590 1
362
1,333
1,672
21,910
29,931
Capital Equipment Purchases.
98 2017 - 2022 Capital Improvement Program 58
CITY OF TUKWILA
PARK IMPACT FEE ELIGIBLE PROJECTS
2018
Project Name
Project Cost
Growth / Capacity j
I I
% Cost I
I ! I
Non Capacity '— _ —
Secured
Funding
% Cost
1
Non Capacity Funding
Anticipated Funding - Impact
Funding I Anticipated or ! Funding thru
Unfunded ; i
j Secured 2017
! I I
Growth/Capacity Funding
Other — — Funding -
Unfunded
Secured ; Anticipated or
; ! Impact Fee
Funding Secured
Funding j Eligible
•
1
Park Acquisition
2,200,000
100%
2,200,000
0%
-
-
-
-
2,200,000
Park Improvements
1,838,000
25%
459,500
75%
1,378,500
I I
I
425,000 .
I
425,000 .
I
953,500
I
-
459,500
I
I
I
i
I
I
I
I
!
!
Duwamish Hill Preserve
8,018,000
50%
4,009,000
50%
4,009,000
i
4,009,000 ,
4,009,000 j
- j
2,005,000
2,005,000
2,004,000
Tukwila Pond Trail & Boardwalk
7,250,000
I 75%
j
5,437,500 j
25%
1
1,812,500
j
250,000 !
250,000
1,562,500 I
j
- !
5,437,500
Tukwila South Trail
6,525,000
I 75%
I
4,893,750 I
25% I
1,631,250
I I
500,000 I
500,000 I
1,131,250 I
I
I
- I
4,893,750
Macadam Winter Garden & Wetland
1,450,000
50%
725,000
50%
725,000
I
50,000 I
50,000 ,
675,000
-
725,000
I
I
I
I
I
I
Open Space Improvements
5,800,000
75%
4,350,000
25%
1,450,000
j j
100,000 1
100,000
j 1,350,000
-
4,350,000
Synthetic Turf Field
2,900,000
j 75%
j
2,175,000
25%
j
725,000
t
725,000 j
725,000
j -
-
2,175,000
Total Parks
35,981,000
I
I
24,249,750 I
I
11,731,250
I
6,059,000
6,059,000
I 5,672,250 j
- I
2,005,000
2,005,000 I
22,244,750
Tukwila Urban Center Pedestrian Bridge
10,741,000
! 60%
I
6,444,600 I
40% I
4,296,400
I 4,296,400
I
4,296,400
I 4,296,400 !
683,000 !
4,444,600 I
5,127,600 !
1,317,000
I
TOTAL
$ 46,722,000 I 66%
I $ 30,694,350 ;
I $ 16,027,650
I $ 4,296,400 I $ 6,059,000 I $ 10,355,400
I $ 9,968,650 ;
$ 683,000 I $ 6,449,600 I $ 7,132,600 ' $ 23,561,750
4/11/2018
100
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Park Acquisition Project No. 90930102
DESCRIPTION: Acquisition of land to preserve open space or park land for future generations.
JUSTIFICATION: Provides for increased access to play spaces and helps to preserve green spaces for future generations.
STATUS: Allows implementation of PROS Plan. Project is on Park Impact Fee list.
MAINT. IMPACT: To be determined
COMMENT:
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018 2019 2020 2021 2022 BEYOND TOTAL
EXPENSES
Design
-
Land (RM/)
700
1,500
2200
Const. Mgmt.
0
Construction
0
TOTAL EXPENSES
0
0
0
700
0
0
1500
0
0
2,200
FUND SOURCES
Awarded Grant
0
KC Parks Levy
0
Mitigation Actual
0
Mitigation Expected
0
Park Impact Fees
2,200
2200
City revenue
-
TOTAL SOURCES
0
0
0
0
0
0
0
0
2200
2,200
Project Location:
Entire System
2017 - 2022 Capital Improvement Program
101
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Park Improvements Project No. 91630103
DESCRIPTION: Park improvements at existing parks throughout the system due to new growth and that will increase capacity.
May include play equipment replacement, shelters, park security cameras, and neighborhood play areas.
JUSTIFICATION: Renovation and improvement of amenities in various parks throughout the City.
STATUS: New project for 2017 - 2022 CIP. Program was scheduled to begin in 2017. REET 1 funds were reallocated the
Public Safety Plan so plan has been delayed. Project is on Park Impact Fee list.
MAINT. IMPACT: To be determined.
COMMENT: 1% Municipal Arts Fund for City funded construction costs to be included.
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018 2019 2020 2021 2022 BEYOND TOTAL
EXPENSES
Design
50
50
50
50
168
368
Land (RMI)
0
Const. Mgmt.
0
Construction
200
200
200
200
670
1470
TOTAL EXPENSES
0
0
0
0
250
250
250
250
838
1,838
FUND SOURCES
Awarded Grant
0
KC Parks Levy
245
180
425
Park Impact Fees
283
176
459
City revenue
250
250
(33)
5
482
954
TOTAL SOURCES
0 :
0
0
0
250
250
250
250
838
1838
1 O?017 - 2022 Capital Improvement Program
PROJECT:
DESCRIPTION:
JUSTIFICATION:
STATUS:
MAINT. IMPACT:
COMMENT:
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
Duwamish Hill Preserve Project No. 90330109
10.36 -acre parcel of open space allows for restoration of this site. Site is culturally and historically
significant. Partnership with Forterra (formerly Cascade Land Conservancy) to preserve the site.
Meets the Parks and Open Space Plan providing cultural and historical value along the City's shoreline.
Phase I development was completed in 2010. Phase II development to be completed in 2019, with future
work to possibly include a shelter.
Approximately 250 staff hours per year.
Phase II is on Park Impact Fee list. Sound Transit mitigation of $313K
for use of the site. Grants of $765K ($50K KCD, $500 HCPF, $15 HCF, $200K 4Culture) with REET
funds as a match. 1% Municipal Arts fund for City funded construction costs to be included. Formerly
known as Duwamish Riverbend Hill, Poverty Hill, and Grandmother's Hill.
FINANCIAL Through Estimated
in$000'
2015 2016 2017
2018 2019 2020 2021 2022 BEYOND TOTAL
EXPENSES
Design
602
10
10
1,038
1,660
Land (RAN)
2,036
2,000
4,036
Const. Mgmt.
6
830
836
Construction
742
207
16
14
8
4,150
5,137
TOTAL EXPENSES
3,386
217
26
14
8
0
0
0
8,018
11,669
FUND SOURCES
Awarded Grant
1,977
162
16
14
8
2,177
Proposed Grant
1,000
1,000
KC Parks Levy
599
S99
Mitigation
313
313
Park Impact Fees
243
2,004
2247
REET 1/City Revenue
254
55
10
5,013
5,332
TOTAL SOURCES
3,386
217
26
14
8
0
0
0
8,018
11,669
2017 - 2022 Capital Improvement Program
103
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Tukwila Pond Trail & Boardwalk Project No. 90330110 Phase I -Ill
90930101 Phase IV
DESCRIPTION: The Tukwila Pond Concept Plan identified development to extend viewing platforms, construct trail
and boardwalk and other amenities.
JUSTIFICATION: Provides improved access to open spaces, gathering places, and enhances the Tukwila Urban Center. Project is
on Park Impact Fee list.
Phase I completed 2006. Phase II was completed in 2009 and included 50% design for park amenities and
STATUS: feasibility study and design for water quality improvements. Phase III includes design of park improvements
and buffer enhancement along Andover Park West. Phase IV includes final design and construction of trail,
boardwalk, and park amenities. Proposd grant would be from Recreation Conservation Office.
MAINT. IMPACT: To be determined.
COMMENT: Wetland mitigation of $86,000 from WIG Properties and a 2008 King County grant for buffer enhancement.
Phase IV is on Park Impact Fee list. 1% Municipal Arts Fund for City funded construction included.
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018 2019 2020 2021 2022 BEYOND TOTAL
EXPENSES
Design
240
1,250
1,490
Land (RMI)
0
Const. Mgmt.
1,000
1000
Construction
5,000
5,000
TOTAL EXPENSES
240
0
0
0
0
0
0
0
7,250
7,490
FUND SOURCES
Awarded Grant
8
8
Proposed Grant
250
250
Mitigation Actual
86
86
Park Impact Fees
18
5,438
5,456
REET 1 Funds/City Re'
128
1,563
1,691
TOTAL SOURCES
240
0
0
0
0
0
0
0
7,250
7,490
104017 - 2022 Capital Improvement Program
PROJECT:
DESCRIPTION:
JUSTIFICATION:
STATUS:
MAINT. IMPACT:
COMMENT:
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
Tukwila South Trail
Construct trails along the Green River in the Tukwila South area.
Trail provides a connected park and trail system and promotes healthy
and biking. Improves trail access for those that will live, work, and play
Park Impact Fee list.
Easements to be received from developer. Developer should leave the
for the trail.
To be determined.
Project No. 91130101
and active living for walking
in the Tukwila South area. Project is on
easements near the final grade
1% Municipal Arts Fund for City funded construction costs to be included.
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018
2019
2020
2021
2022
BEYOND TOTAL
EXPENSES
Design
1,125
1,125
Land (RAN)
0
Const. Mgmt.
900
900
Construction
4,500
4,500
TOTAL EXPENSES
0
0
0
0
0
0
0
0
6,525
6,525
FUND SOURCES
Awarded Grant
0
Proposed Grant
500
500
Mitigation Actual
0
Mitigation Expected
0
Park Impact Fees
4,894
4,894
REET 1 Funds/City Revenue
1,131
1,131
TOTAL SOURCES
I 0
0
0
0
0
0
0
0
6,525
6,525
2017 - 2022 Capital Improvement Program
105
PROJECT:
DESCRIPTION: in 2007. Entire site purchased with 1989 King County Open Space funds with habitat cleanup recommended.
JUSTIFICATION: To utilize this preserved area to educate and provide a small garden area to improve the wetland area.
STATUS: The Winter Garden was constructed in 2007. Phase II in beyond will include a trailhead from the Winter
Garden, a trail system, boardwalk, and kiosks. Project is on Park Impact Fee list.
MAINT. IMPACT: To be determined.
Received a $15,000 grant from Starbucks and Home Street Bank contributed $2,500 for signage. The
COMMENT: remaining balance from Phase I came from extra REET funds collected in 2007. 1% Municipal Arts Fund for
City funded construction costs to be included.
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
Macadam Winter Garden & Wetland Project No. 90330108
A small winter garden area on this 11 acre site with educational exhibits related to the wetland was completed
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018 2019 2020 2021 2022 BEYOND TOTAL
EXPENSES
Project Location
f
\in.fra
opp-
rn ' j
Design
50
N
\ S
w
250
300
Land (R/W)
/ :t
IKI '
St
S P} 6
0
Const. Mgmt.
1
R
,y
200
200
Construction
374
st 31511.6i
k \Z
�ia15
..
I
1,000
1,374
TOTAL EXPENSES
424
0
0
0
0
0
0
0
1,450
1,874
FUND SOURCES
Awarded Grant
18
18
Proposed Grant
50
50
Mitigation Actual
0
Mitigation Expected
0
Park Impact Fees
725
725
REET 1 Funds/City Rev
406
675
1,081
TOTAL SOURCES
424
0
0
0
0
0
0
0
1,450
1,874
°'2017 - 2022 Capital Improvement Program
Project Location
f
\in.fra
opp-
rn ' j
1
N
\ S
w
am: l ..E
/ :t
IKI '
St
S P} 6
1
R
,y
st 31511.6i
k \Z
�ia15
..
I
°'2017 - 2022 Capital Improvement Program
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Open Space Improvements Project No. 90930102
DESCRIPTION: Development of new and future acquired properties to meet community needs.
JUSTIFICATION: Open spaces serve different roles from preserving green space for future generations to providing
active and passive recreational opportunities.
STATUS: Many sites exist within the current Tukwila Park System with potential for more sites in the future
via the Park Acquisition plan and property donations. Project is on Park Impact Fee list.
MAINT. IMPACT: To be determined.
COMMENT: 1% Municipal Arts Fund for City funded construction costs to be included.
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018 2019 2020 2021 2022 BEYOND TOTAL
EXPENSES
Design
1,000
1,000
Land (RMI)
150
150
Const. Mgmt.
800
800
Construction
4,000
4000
TOTAL EXPENSES
150
0
0
0
0
0
0
0
5,800
5,950
FUND SOURCES
Awarded Grant
100
100
Proposed Grant
0
Mitigation Actual
0
Mitigation Expected
0
Park Impact Fees
4,350
4350
REET 1 Funds/City Rev,
150
1,350
1,500
TOTAL SOURCES
150
0
0
0
0
0
0
0
5800
5,950
Project Location:
Entire System
2017 - 2022 Capital Improvement Program
107
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
PROJECT: Synthetic Turf Field Project No. TBD
DESCRIPTION: Change existing grass field to synthetic turf field for increased usage and playability.
Synthethic turf will increase the annual usage, make the site more playable all year, and will allow for increased
JUSTIFICATION: programming of the park. Potential candidate for Youth Athletic Field grant through Recreation Conservation
Office. Project is on Park Impact Fee list.
STATUS: Save Parks Levy funds to partner with Park Impact Fees and YAF Grant to complete project in 2022.
MAINT. IMPACT: To be determined.
COMMENT: 1% Municipal Arts Fund for City funded construction costs to be included.
FINANCIAL Through Estimated
in $000's
2015 2016 2017
2018 2019 2020 2021 2022 BEYOND TOTAL
EXPENSES
Design
500
500
Land (RNV)
0
Const. Mgmt.
400
400
Construction
2,000
2000
TOTAL EXPENSES
0
0
0
0
0
0
0
2,900
0
2,900
FUND SOURCES
Proposed Grant
500
500
Awarded Grant
0
KC Parks Levy
225
225
Park Impact Fees
400
1,775
2175
REET 1 Funds/City Revenue
1775
(1,775)
-
TOTAL SOURCES I 0
0
0
0
0
0
0
2,900
0
2,900
1 0017 2022 Capital Improvement Program
PROJECT:
CITY OF TUKWILA CAPITAL PROJECT SUMMARY
2017 to 2022
Tukwila Urban Center - Pedestrian Bridge
DESCRIPTION: Construct a new pedestrian/bicycle bridge over the Green River.
Pedestrian/bicycle connection between Tukwila's Urban Center and commuter rail/Amtrak station. Supports
local and regional goals and policies regarding land use and transportation in Urban Center.
Pedestrian System Report identified the optimal location for bridge corssing to be south of the Ramada Inn at
15901 West Valley Hwy. Type, Size and Location Report was completed in 2011. Council approved a design of
a twin -tied arch bridge with no accomodation for a future bridge crossing over West Valley Highway.
JUSTIFICATION:
STATUS:
MAINT. IMPACT: To be determined.
COMMENT:
Project No. 90510403
Design grants: State Enhancement for $190K & $500K., Transit Oriented Development (TOD) planning grant of
$55K, and Federal CMAQ grant of $751 K. WSDOT Regional Mobility construciton grant of $6.87M. Project is
on Park Impact Fee list with funding of $2 million.
FINANCIAL
(in $000's)
Through Estimated
2015 2016 2017
2018
2019
2020
2021
2022
BEYOND TOTAL
EXPENSES
Design
1,863
33
1,896
Land (RMI)
504
90
594
Const. Mgmt.
348
857
50
1255
Construction
1,854
3,639
1,503
6996
TOTAL EXPENSES
2367
2325
4496
1553
0
0
0
0
0
10,741
FUND SOURCES
Awarded Grant
1,496
1496
Awarded Reg Mobility
581
2,323
2,241
1,725
6870
Park Impact Fees
197
189
297
683
Park Impact Fees expected
400
400
400
117
-
1317
City revenue
93
(187)
1958
(572)
(400)
(400)
(117)
0
0
375
TOTAL SOURCES
2367
2325
4496
1553
0
0
0
0
0
10,741
2017 - 2022 Capital Improvement Program
109
110
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO.
2430 TO ADOPT AN AMENDED 2014 PARKS, RECREATION
AND OPEN SPACE PLAN FOR THE CITY OF TUKWILA;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, RCW 35A.63.062 authorizes the City of Tukwila to perform
comprehensive park and open space planning; and
WHEREAS, the 2014 Parks, Recreation and Open Space Plan was reviewed in
accordance with the State Environmental Policy Act process required by RCW 43.21C
and was the subject of public comment prior to adoption in 2014; and
WHEREAS, the Tukwila City Council adopted the 2014 Parks, Recreation and Open
Space Plan per Ordinance No. 2430 on February 18, 2014; and
WHEREAS, minor amendments to the 2014 Parks, Recreation and Open Space Plan
are deemed appropriate as it relates to impact fees as authorized by RCW 82.02; and the
overall goals, objectives and service standards of the 2014 Parks, Recreation and Open
Space Plan are retained; and
WHEREAS, the Plan amendments have been evaluated as appropriate under SEPA
pursuant to RCW 43.21C in 2017; and
WHEREAS, the amended Plan was presented to the public for comment and
modification at a public hearing on April 23, 2018;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance No. 2430 is hereby amended with the City Council's adoption
of the Amended 2014 Parks, Recreation and Open Space Plan.
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Page 1 of 2
111
112
Section 2. A copy of the Amended 2014 Parks, Recreation and Open Space Plan
shall be kept on file electronically and accessible from the City's website in accordance
with Washington State records retention schedule requirements and City policy, and shall
be made available to the public upon request.
Section 3. The Amended 2014 Parks, Recreation and Open Space Plan is adopted
by reference as part of the Comprehensive Plan.
Section 4. A copy of this ordinance and the Amended 2014 Parks, Recreation and
Open Space Plan shall be filed with the following City departments:
1. Community Development
2. Public Works Department
3. Finance Department
4. Parks & Recreation Department
5. Mayor's Office
Section 5. Corrections by City Clerk or Code Reviser. Upon approval of the City
Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to other
local, state or federal laws, codes, rules, or regulations; or ordinance numbering and
section/subsection numbering.
Section 6. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 7. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2018.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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Page 2 of 2
CHAPTER 2. PARK AND RECREATION NEEDS
• Existing Features: This category
depicts existing site features that would
allow for added site capacity including
access, public parking and restrooms.
• Fills Activity Gap: This category
identifies sites that have new activity
potential and that can improve access
to identified activity gap areas.
• New Activity Potential: Parks with
new activity potential are those that do
not currently accommodate one or more
of the top five close -to -home
recreational activities but have potential
to do so. In some cases, parks may
already feature one of the desired
activities but have the potential to add
more. For example, a site may already
have an internal pathway that could be
expanded to improve opportunities for
walking and biking.
LEVEL OF SERVICE (LOS) STANDARDS.
The LOS standards direct the City's
response to increased demand, both
growth related and due to changes in
population. Tukwila Parks and
Recreation has two LOS standards, one
based on access and one based on the
per capita investment.
Parks LOS 1: All residents and visitors
should be within 1/4 to 1/2 mile of a
City -owned park.
Parks LOS 2: The investment per capita
of the City's park systems including land
and facilities should be commensurate
with the current level of investment as
growth occurs.
The City of Tukwila has developed a
capital project list that includes
investments to support and facilitate the
increased usage of existing park and
recreation assets to meet growing
demand as well as strategic expansions
of the system as opportunities arise.
2-6 Tukwila Parks, Recreation and Open Space Plan
113
CHAPTER 4. RECOMMENDATIONS
Physical Planning and
Management
LEVEL OF SERVICE (LOS)
STANDARDS - ACCESS AND
INVESTMENT. The City's LOS
standards are outlined on page 2.6.
Tukwila's approach to park and
recreation services should be based on
providing different park types that serve
specific functions, following the
classifications outlined in this Plan. The
service area distance is based on
providing convenient access and
maximizing benefits to the public by
preventing duplication of services. Use
of this measurement also considers non-
residents, such as workers and visitors.
RANK PARK AND RECREATION
PROJECTS THROUGH THE USE OF
PRIORITIZATION CRITERIA.
The criteria should be used as a starting
point to identify how projects should be
ranked, while factoring changing
conditions and opportunities.
DEVELOP AND IMPLEMENT UPDATED
PARK DESIGN GUIDELINES AND
POLICIES.
Design guidelines for park and
recreation development should be used
as a basis for all future park master
plans and park improvements. These
should reference the guidelines
provided in the Southcenter Subarea
Plan, and outline best practices in
system development, including
parameters for park character and size,
access and compatible amenities and
features. The guidelines should promote
compatibility between uses and
structures adjacent to parks.
REDUCE THE MAINTENANCE NEEDS OF
LOW- FUNCTIONING SMALL PARKS.
Several of the city's smaller parks
should be undergo maintenance
efficiency improvements to better align
with the way these sites are used by the
public. This could include replacing
selected areas of turf with groundcover
or permeable pavers, increasing or
adding to tree groves or replacing park
benches with seat walls.
ADD A DISC GOLF COURSE TO THE
SYSTEM.
Parks with capacity for a disc golf
course offer open areas or fairways
ranging between 20-40 feet wide, and
can accommodate nine tee pads and
baskets, signage and user amenities
such as benches. Southgate Park has
potential for adding a disc golf course.
However, the park currently has no
public access, parking or access to
transit.
IDENTIFY THE PREFERRED LOCATION
FOR AN ADDITIONAL COMMUNITY
GARDEN.
The public has identified Duwamish
Park as having potential for a
community garden. Gardens require at
least six hours of unobstructed sunlight,
access to a reliable water source and
fencing. Duwamish Park is not City -
owned but has good public access,
parking and portable restrooms.
4-10 Tukwila Parks, Recreation and Open Space Plan
114
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
BY: Laura Crandall, Finance Staff
CC: Mayor Ekberg
DATE: April 11, 2018
SUBJECT: B&O Tax; Information Only
ISSUE
This memorandum provides information on B&O tax rates, implementation, and projected
revenues.
BACKGROUND
Business and Occupation (B&O) taxes are collected statewide. RCW 35A.82.020 gives cities
the authority to impose a B&O on businesses operating in their city; 43 of Washington's 281
cities do so. Four classifications—Retailing, Wholesaling, Manufacturing, and Service & Other
Activities—are subject to B&O.
The State's Model Ordinance for B&O requires cities to adopt an exemption threshold where
businesses grossing less than the threshold would not be subject to the tax. The threshold may
be set as low as $20,000 in gross receipts; it must be consistent across all classifications.
Administering a B&O tax is complex. Some businesses may engage in multiple activities,
requiring them to report in more than one classification. Rates may be set at different levels for
each classification, but not within a classification. Depending on whether a business is required
to file quarterly or annually, a business may be subject to taxation in one quarter, but not in
others. In addition, there are multiple activities that are exempt from B&O. Tax imposed is
primarily measured on gross proceeds of sales or gross income.
This memo includes:
• Revenue estimations
• Staffing and implementation information from other cities
• Considerations for implementation and administration
• Options for further inquiry
Staff interviewed Shoreline, Renton, and Kent finance staff about financial modeling,
implementation timelines, initial and ongoing costs and staffing levels, and recommendations or
unexpected issues regarding implementation. Burien was not interviewed, as they do not
administer B&O tax in-house.
Two data sets were used: 2017 taxable sales for Tukwila from the Department of Revenue, and
the City of Tukwila's own data on actual gross receipts for 2017.
115
INFORMATIONAL MEMO
Page 2
DISCUSSION
Revenue Targets
A few of the factors affecting the amount of revenue collected, number of returns processed,
and staff needed to support B&O are:
• Rate of Taxation
• Exemption Threshold Level
• Quarterly or Annual Filing
The lower the exemption threshold, the higher the number of returns the City could expect to
process since a greater number of businesses would be subject to the tax. Consequently, a
greater number of returns would require more administrative, outreach, and education work.
Similarly, when businesses file quarterly, the work load shifts.
All cities queried hired additional staff for implementation and ongoing administration. The City
of Kent has the highest number of returns and employs 4 B&O FTE's full-time: two field
auditors, one customer service specialist, and another in-house auditor. Table 1 shows FTE's,
program costs, and number of filings for three cities.
Table 1: Staffing, Costs, and # of Filings by City
City FTE Program Cost # of Filings
Quarterly Annual
Kent 4 $780,000 4,000 N/A
Renton 1 $250,000 N/A 1,200
Shoreline 1 $245,0001 N/A N/A
Cities surveyed established a target revenue and set taxation rates and threshold based on their
projections. Both Kent and Renton collected more tax than projected; Shoreline's tax goes into
effect in 2019. Once the cities had been through a budget cycle, projections became more
accurate. One city's initial target revenue was $5 million, and their actual collected was over $9
million. Another city's target revenue of $3 million resulted in over $4 million collected.
Rates
Rates and threshold affect the level of revenue generated and the number of businesses taxed.
How rates are applied can also shape the economic development landscape. For example, one
city set rates to encourage an increase in retail businesses and reduce another type of
business.
For this report four rates of taxation and two different thresholds were used for each data set. A
variety of additional scenarios could be produced by varying rates between classifications
and/or altering the threshold. It should be emphasized that the projections in this memorandum
are an estimate; businesses not subject to the tax were not identified and removed from the
scenarios. Instead, this was achieved by assuming that 75% of the total amount in each data
set would be subject to B&O tax. Should the Committee wish to pursue a B&O tax further, more
extensive modeling should be done, with exempt businesses and activities removed.
1 Estimated. Source: 12/4/2017 City of Shoreline Staff Report.
116 Z \Council Agenda Items\FinancelB&O Docs\Memo\B&OMemo doc
INFORMATIONAL MEMO
Page 3
Table 2. Annual Projections Based on Taxable Sales*
$200,000 Threshold $500,000 Threshold
Rate
0.0005 $507,593 $332,316
0.0009 $862,909 $564,937
0.001 $1,015,187 $664,632
0.002 $2,030,374 $1,329,263
*Department of Revenue data set. Assumes 75% of total subject to the tax.
Table 3. Annual Projections based on Gross Receipts*
Rate $200,000 Threshold $500,000 Threshold
0.00050 $629,641 $604,282
0.00085 $1,070,390 $1,027,280
0.001 $1,259,283 $1,208,565
0.002 $2,518,565 $2,417,129
"Tukwila data set. Assumes 75% of total subject to the tax.
The difference in projected revenue figures in Tables 2 and 3 can be attributed the use of
taxable sales figures in one table (Table 2) and gross receipts in another (Table 3). Both tables
assume 75% of the total dollars from the data set are subject to the tax. This method was an
expedient way to show potential revenues and should be considered an estimate requiring
further refinement.
Other Considerations
In addition to increased revenues for City operations, adopting a B&O tax would increase staff
workload, personnel costs, and systems costs. These and other items for consideration are
shown below, in no order of importance.
• Current staffing and workload in Finance and IT/IS
• Current and near future City projects requiring additional Finance and/or IT/IS services
• Initial and ongoing costs of implementing and administering program
• Community/Business outreach and education, initial and ongoing
• Client filing methods and forms
• Filing periods; frequency, and existing reporting requirements for businesses
• Exemption Threshold
• City's current business profile and desired future profile
• Existing taxation methods and potential impacts
• Technology and systems required for filing and processing B&O
RECOMMENDATION
Discussion Only.
ATTACHMENTS
Renton B&O Actuals Chart
Department of Revenue City B&O Rates, 2018
Z:ICounal Agenda Items\Finance\B&O Docs\Memo\B&OMemo.doc
117
118
BUSINESS AND OCCUPATION TAX
• 2016 was the first year
Business and Occupation
Tax was collected.
• $6.4M in B&O tax was
collected with a
corresponding $1.2M
decrease in business
license/head tax revenue.
• 2017 B&O tax collections
have outperformed 2016 by
18% and are projected to
exceed the budget by 10%.
■ Upward adjustment of
$700k is being made to the
2017 and 2018 budget.
$10
$8
$6
2 $4
$2
$-
Business License and B&O Tax Collections
II
i
1
2013 2014 2015 2016 2017 2018
Actual Actual Budget Budget
Business License B&O
119
(e "ti# W311 VON3JV
Local Business (B&O) Tax Rates
Effective January 1, 2018
City
Phone #
Manufacturing
rate
Retail rate
Services rate
Wholesale
rate
Threshold
Quarterly
Annual
Aberdeen
(360) 533-4100
0.002
0.003 e
0.00375 e
0.003 e
$5,000
$20,000
Algona
(253) 833-2897
0.00045
0.00045
0.00045
0.00045
$10,000
$40,000
Bainbridge Island
(206) 780-8668
0.001
0.001
0.001
0.001
$150,000
Bellevue
(425) 452-6851
0.001496
0.001496
0.001496
0.001496
$160,000
Bellingham
(360) 778-8010
0.0017
0.0017
0.0044 e
0.0017
$5,000
$20,000
Bremerton
(360) 473-5311
0.0016
0.00125
0.002
0.0016
$160,000
Burien
(206) 241-4647
0.001
0.001
0.001
0.001
$200,000
Cosmopolis
(360) 532-9230
0.002
0.002
0.002
0.002
$5,000
$20,000
Darrington
(360) 436-1131
0.00075
0.00075
0.00075
0.00075
$20,000
Des Moines
(206) 878-4595
0.002
0.002
0.002
0.002
$50,000
DuPont
(253) 964-8121
0.001
0.001
0.001
0.001
$5,000
$20,000
Everett
(425) 257-8610
0.001
0.001
0.001
0.001
$5,000
$20,000
Everson
(360) 966-3411
0.002
0.002
$1,000,000
Granite Falls**
(360) 691-6441
Hoquiam
(360) 532-5700
0.00200
0.00200
0.00200
0.00200
$5,000
$20,000
Ilwaco
(360) 642-3145
0.00200
0.00200
0.00200
0.00200
$20,000
Issaquah
(425) 837-3054
0.00120
0.00120
0.00150
0.00120
$25,000
$100,000
Kelso
(360) 423-0900
0.00100
0.00100
0.00200
0.00100
$20,000
Kenmore
(425) 398-8900
0.00200 *
$5,000
Kent
(253) 856-6266
0.00046
0.00046
0.00152
0.00152
$62,500
$250,000
Lacey
(360) 491-3214
0.00100
0.00200
$5,000
$20,000
Lake Forest Park
(206) 368-5440
0.00200
0.00200
0.00200
0.00200
$5,000
Long Beach
(360) 642-4421
0.00200
0.00200
0.00200
0.00200
$5,000
Longview
(360) 442-5040
0.00100
0.00100
0.00200
0.00100
$20,000
Mercer Island
(206) 275-7783
0.00100
0.00100
0.00100
0.00100
$150,000
North Bend
(425) 888-1211
0.00200
0.00200
0.00200
0.00200
$5,000
Ocean Shores
(360) 289-2488
0.00200
0.00200
0.00200
0.00200
$5,000
$20,000
Olympia
(360) 753-8327
0.00100
0.00100
0.00200
0.00100
$5,000
$20,000
Pacific
(253) 929-1100
0.00200
0.00200
0.00200
0.00200
$5,000
$20,000
Port Townsend****
(360) 385-2700
0.00200
0.00200
0.00200
0.00200
$0
$100,000
Rainier
(360) 446-2265
0.00200
0.00200
0.00200
0.00200
$5,000
Raymond
(360) 942-3451
0.00200
0.00200
0.00200
0.00200
$5,000
$20,000
Renton****
(425) 430-6400
0.00085
0.00050
0.00085
0.00085
$500,000
Roy
(253) 843-1113
0.00100
0.00200
0.00200
0.00100
$5,000
$20,000
Ruston
(253) 759-3544
0.00110
0.00153
0.00200
0.00102
$5,000
$20,000
Seattle***
(206) 684-8484
0.00222 v
0.00222 v
0.00427 v
0.00222 v
$100,000
Shelton
(360) 426-4491
0.00100
0.00100
0.00100
0.00100
$5,000
$20,000
Snoqualmie
(425) 888-1555
0.0015
0.0015
0.0015
0.0015
$5,000
South Bend
(360) 875-5571
0.001
0.002
0.002
0.002
$5,000
Tacoma
(253) 591-5252
0.00110
0.00153
0.00400 e
0.00102
$250,000
Tenino
(360) 264-2368
0.002
0.002
0.002
0.002
$5,000
$20,000
Tumwater
(360) 754-5855
0.001
0.001
0.002
0.001
$5,000
$20,000
Westport
(360) 268-0131
0.0025 e
0.005 e
0.005 e
0.0025 e
$5,000
Yelm
(360) 458-3244
0.001
0.002
0.002
0.001
$5,000
(v) = voter approved increase above statutory limit
(e) = rate higher than statutory limit because rate was effective prior to January 1, 1982 (i.e., grandfathered).
*Kenmore's B&O tax applies to heavy manufacturing only.
**Granite Falls repealed its B&O tax for all businesses other than extracting.
***Seattle changed its rates effective January 1, 2018.
**** Port Tonsend and Renton changed the minimal threshold in 2018
NOTE: Tax rates may apply to businesses categories other than those above. Thresholds are subject to change.
Exemptions, deductions, or other exceptions may apply in certain circumstances. Contact the city finance
de q tment for more information.
Assocla4bnl of Washington Cities
January 2017
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
BY: Laura Crandall, Finance Staff
CC: Mayor Ekberg
DATE: April 11, 2018
SUBJECT: Sales Tax Revenue Sector Trends
ISSUE
Tukwila's sales tax revenue is below projections, leading to budgetary constraints.
BACKGROUND
An overview of the City of Tukwila's taxable retail sales by sector shows an average increase of
3% per year. In a survey of taxable retail sales for five South King County cities for the 2011-
2017 period, Tukwila recorded the lowest average increase in taxable sales of all five cities.
Tukwila's largest sales tax revenue sector, Retail Trade, recorded a modest growth of 5% for
the period 2014-2016. Within the sector some lines of business have increased by 15%. The
purpose of this analysis is to take a closer look at categories within sectors that are showing
significant upward or downward movement. These categories make up a large portion of the
sector in some cases. In others, total dollars generated by the category may be small, but the
degree of movement may warrant attention.
The 2014-2016 period was used for the sector analysis because a complete data set through
2017 by sector was not available at the time of this writing.
ANALYSIS
Analysis was performed using the North America Industry Classification System (NAICS), an
index that assigns descriptive industry classifications to six -digit codes. Each six -digit code is
rolled up into a two -digit Sector category. For this analysis, four -digit NAICS codes were used.
The term Sector refers to the entire category. The term Classification refers to segments of
the sector. This level of detail allows for meaningful examination of changes within the sector,
making it possible to identify classifications contributing to a decline or increase of sales within
the sector.
An example of how the codes are constructed is below. The red circle indicates the level of
detail for this analysis.
Sector
Classification
31-33 - Manufacturing
312 - Beverage arnd tobacco product manufacturing
3121 - Beverage manufacturing
;11.. 31211 - Soft drink and ice manufacturing
312111 - Soft drink manufacturing
121
INFORMATIONAL MEMO
Page 2
Snapshot of Material Changes
2015 was an outlier year, with a spike in taxable for all but one of the cities (Burien) included in
this study. With that in mind, this analysis looks for sectors and Classifications that show
material change between 2014-2016. While in some cases movement up or down may be
significant, if the total taxable sales generated by the classification or sector is lower than $4
million, it has not been included. For the purposes of this study, material change for the period
would be any sector generating more than $4 million in taxable sales in 2016 that has increased
by more than 25% over 2014.
Classifications within the sector that are going against a trend will be highlighted if the trend is
material. For example, the Wholesale Trade sector decreased by $37.6 million, or 20%, but the
classification of Machinery, Equipment, and Supplies increased 25%, or $8.8 million.
Data Sets
Data sets from the Washington State Department of Revenue, Municipal Research and
Services Center, the Washington State Office of Financial Management, and the City of Tukwila
were used and are noted on each table and chart. Some classifications within the data sets are
confidential and could not be used for this analysis.
Tables
Each sector in this document will have an overall table showing sales for the entire sector,
number of business units (Units), and the +/- change. Following the sector table is a table
showing classifications within the sector that show notable movement.
Main Sales Table
Below is the Main Sales Table (Table M) of all sectors recording taxable retail sales in Tukwila.
Total sales for 2016, sales increase or decrease over 2014. and percent of increase in 2016
over 2014 sales is included.
Table M. City of Tukwila 2016 Taxable Retail Sales by Sector
NAICS
44-45 RE
72 AC
23 CO
42 WF
51 INF
53 RE
54 PR
71 AR
81 OT
31-33 MA
56 MA
52 FIF
62 HE
48-49 TR
61 SCHOOLS
SECTOR
2016 Taxable
Retail Sales
2016 $ +/-
over 2014 Sales
2016 % +/-
over 2014 Sales
TAIL TRADE
$ 1,104,979,507
$ 53,783,683
I 5%
COMMODATIONS AND FOOD SERVICES
. 280,946,808
26,440,007
I
9%
40%
NSTRUCTION
160,134,611
63,695,558
IOLESALE TRADE
150,167,871
-37,620,796
' -25%
ORMATION
97,342,457
26,073,747
27%
AL ESTATE
72,996,828
16,382,088
22% T
OFESSIONAL SERVICES
60,704,760
17,465,765
29%
TS, ENTERTAINMENT, & RECREATION
25,421,971
12,487,149
49%
HER SERVICES
23,005,239
-2,865,544
-12%
NUFACTURING
22,442,370
3,929,789
18%
NAGEMENT SERVICES
16,884,090
4,210,956
25%
IANCE/INSURANCE
7,385,541
1,907,389
26%
ALTH SERVICES
5,054,728
4,908,888
97%
ANSPORTATION
4,860,438
768,983
16%
970,514
Data Source: Department of Revenue Annual Taxable Retail Sales
1 22 Z:ICouncil Agenda Items\FinancelSales Tax\memoFinal12018-04FinSalesTax.doc
INFORMATIONAL MEMO
Page 3
Overview of King County and Five South King County Cities
Tukwila's taxable sales for the period 2010-2017 were reviewed in context with King County,
with a focus on four South King County (SKC) cities: Auburn, Burien, Kent, and Renton.
Taxable Sales: The County showed an average increase in taxable sales of 6% for the period.
All five SKC cities also showed an upward trend. Average growth for the period for Tukwila was
3%, with Kent and Auburn at 5%. Renton was on -trend with the County, recording 6% growth,
and Burien came in above the County trend at 8%.
Population Growth: Four SKC cities grew at a greater rate than the 11% rate reported for King
County. Auburn and Renton had the largest population increase, at 14% and 16% respectively.
The high population growth for Burien and Kent can be largely attributed to annexations.
Tukwila had the lowest population growth, at 7%. (Table 1)
Table 1. Regional Revenue and Population Growth
2010-2017
City
King County
Average Sales Tax
Growth
6%
Total Population
Growth
Auburn
Burienl
Kent2
Renton
5%
8%
5%
6%
Tukwila
3%
11%
14%
37%
30%
16%
7%
Data Source: OFM, MRSC
Figure I. Annual Sales Tax Revenue by City, in Millions
0 30
c
0
25
2
20
15
10
5
0
Renton, $26
1 Annexation 2010
2 Annexation 2010
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123
INFORMATIONAL MEMO
Page 4
Tukwila Sectors Moving
Table 2 shows sectors with notable movement for the 2014-2016 period. Some highlights were:
Construction; and Arts, Entertainment, and Recreation. Retail showed a modest increase of 5%-
-the smallest increase of all sectors shown at the beginning of this document. (Table M)
Figure 2 shows the movement of construction and wholesale trade.
Table 2. City of Tukwila 2016 Taxable Retail Sales by Sector
2016 Taxable Retail 2016 $ +1- 2016 % +1-
NAICS SECTOR Sales over 2014 Sales over 2014 Sales
44-45 RETAIL TRADE $ 1,104,979,507 $ 53,783,683 5%
ACCOMMODATIONS AND
72 FOOD SERVICES 280,946,808 26,440,007 9%
23 CONSTRUCTION 160,134,611 63,695,558 40%
42 WHOLESALE TRADE 150,167,871 -37,620,796 -25%
51 INFORMATION 97,342,457 26,073,747 27%
53 REAL ESTATE 72,996,828 16,382,088 22%
54 PROFESSIONAL SERVICES 60,704,760 17,465,765 29%
ARTS, ENTERTAINMENT,
71 & RECREATION 25,421,971 12,487,149 49%
Figure 2.
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INFORMATIONAL MEMO
Page 5
44-45 Retail Trade
Retail Trade is the City's largest generator of taxable retail sales, with over a billion dollars a
year in activity. (Table 3)
Table 3. 44-45 Retail Trade
2014 2015 2016 +1- 2016 over 2014
Sales $ 1,051,195,824 $ 1,092,047,954 $ 1,104,979,507 $ 53,783,683
Units 2445 2673 3018 +573
Data Source: Washington State Department of Revenue
Both the number of business units and the amount of taxable sales for this sector increased
each year within the period. Taxable sales were up by $53.7 million in 2016 over 2014's figures.
As mentioned before, 2015 year with high taxable sales and 2016 figures in this sector were an
improvement on that year. Four classifications within the sector have taxable sales over $100
million:
• Clothing Stores
• Department Stores
• Electronics and Appliance Stores
• General Merchandise Stores
Table 4. Retail Trade Classifications with Increasing Taxable Sales
2014 2015 2016 +/- 2016 over 2014
Electronics and
Appliance Stores $ 117,981,607 $ 123,835,343 $ 138,867,655 $ 20,886,048
Direct Selling
Establishments $ 5,187,895 $ 9,314,370 $ 11,879,687 $ 6,691,792
Data Source: Washington State Department of Revenue
Of those classifications, Electronics and Appliance stores' sales were a major contributor to
the sector's increase, a growth of almost $21 million, or 15%. This accounted for 39% of the
total increase for the sector. This classification made up 26% of the entire retail sector in 2016.
(Table 4) The number of units grew from 284 to 336.
Direct Selling, a small classification, more than doubled activity for the period, moving from
$5.1 million to $11.8 million.
Table 5. Classifications Moving Against the Sector Trend
• Automobile Dealers' figures were down almost 10%, or $4.4 million.
• Department Store sales decreased in 2016 over 2014 figures by just over $4 million.
Of note is the moderate increase of $1.5 million in 2015, the year in which taxable sales
across sectors were high. The number of units was unchanged (8).
• Electronic Shopping dropped almost $6 million, although number of units increased
slightly.
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125
INFORMATIONAL MEMO
Page 6
Automobile Dealers
Department Stores
Electronic Shopping
and Mail -Order Houses
Table 5. Retail Trade Classifications with Declining Taxable Sales
2014
$ 65,363,562
$ 154,480,120
$ 16,021,724
Data Source: Washington State Department of Revenue
2015
2016
+/- 2016 over
2014
70,923,413 $ 60,884,953 ($ 4,478,609)
155,986,762 $ 150,425,781 ($ 4,054,339)
15,785,600 $ 10,154,370 ($ 5,867,354)
Total +/- for these classifications ($ 14,400,302)
54 Professional, Scientific, and Technical Services
This sector increased 29%, up more than $17.4 million. Total sales stood at almost $61 million
in 2016.
Table 6. 54 Professional, Scientific, and Technical Services
2014
Sales $ 43,238,995
Units 496
2015
$ 54,033,784
561
2016
$ 60,716,836
624
+/- 2016 over 2014
$ 17,477,841
+128
Data Source: Washington State Department of Revenue
Table 7. Classifications Up and Down
Growth of in this sector can be attributed to an increase in Computer Systems Design and
Related Services; it grew by 70 units and $13.3 million.
There was a decrease of $5.5 million in Architectural, Engineering, and Related.
Table 7. Professional, Scientific, and Technical Services Classifications Increasing and Decreasing
Architectural, Engineering,
and Related Services
Computer Systems Design
and Related Services
2014
$ 6,717,995
$ 23,542,640
Data Source: Washington State Department of Revenue
2015
$ 9,377,094
$ 33,329,141
126 Z:1Council Agenda Items\Finance\Sales TaxlmemoFinal12018-04FinSalesTax.doc
2016 +/- 2016 over 2014
$ 1,263,934 $ (5,454,061)
$ 46,899,954 $ 23,357,314
INFORMATIONAL MEMO
Page 7
71 Arts and Entertainment
This sector almost doubled, increasing from $12.9 million in 2014 to $25.4 million in 2016.
Table 8. 71 Arts and Entertainment
2014 2015 2016
+1- 2016 over
2014
Sales $ 12,934,822 $ 23,399,168 $ 25,426,623 $ 12,491,801
Units
36 45 53 +17
Data Source: Washington State Department of Revenue
Other Amusement and Recreation Industries increased by $6.1 million, up 35%. Total
taxable sales in 2016 were $17.3 million, up from $11.2 million in 2014.
The largest classification within this sector is Other Amusement and Recreation Industries,
which includes golf courses, fitness centers, and bowling centers. It also accounts for the
greatest increase within the sector.
A caveat to this sector is that four classifications that were in confidential status in 2014 moved
out of confidential status in 2016, which would account for about 50% of the $12.4 million
increase. It is likely that not all of this increase is attributable to sector growth, as we have no
figures for the confidential classifications prior to 2016.3
72 Accommodations and Food Services
More than quarter -billion dollars are generated by this sector. Sales increased $26.4 million
although business units decreased.
Table 9. 72 Accommodations and Food Services
2014 2015 2016 +1- 2016 over 2014
Sales $254,506,801 $273,883,051 $280,946,808 $ 26,440,007
Units 226 218 213 -13
Data Source: Washington State Department of Revenue
Classifications showing growth were: Traveler Accommodation, up by $9.4 million, or 13%
and Restaurants and Other Eating Places. up $15.7 million, or 8%.
3 The previously confidential classifications are: 7112: Spectator Sports; 7113: Promoters of Performing Arts,
Sports, and Similar Events; 7121: Museums, Historical Sites, and Similar Institutions ($2.8 million 2016); 7131:
Amusement Parks and Arcades ($3.7 million in 2016; $2.9 million in 2015).
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127
INFORMATIONAL MEMO
Page 8
Tukwila Sectors Decreasing
42 Wholesale Trade
Wholesale Trade declined overall for the period despite a significant increase in the number of
business units operating. Figures for 2016 were down 25% on 2014 sales: a $37.6 million drop.
Table 10. 42 Wholesale Trade
2014 2015
2016 +1- 2016 over 2014
Taxable
Sales $ 187,788,667 $ 235,682,536 $ 150,167,871 ($ 37,620,796)
Units 1581 1600 1683 +102
Data Source: Washington State Department of Revenue
Table 11. Movement of Major Classifications within the Sector
Three classifications make up more than 80% of the total annual taxable sales in this sector,
shown in the table below.
1. Motor Vehicle/parts/supplies: While the number of business units increased by 5,
taxable sales dropped by $46.2 million for the period; falling from $67.2 million in 2014
to $20.9 million in 2016, or 69%.
2. Professional and Commercial Equipment registered an 11% drop in sales during the
high -revenue year of 2015, even while the number of units increased by 6. It rebounded
in 2016 to just under 2014 sales figures.
Table 11. Movement of Major Classifications within the Sector
Motor Vehicle and Motor
Vehicle Parts
Machinery, Equipment, and
Supplies
Professional and Commercial
Equipment and Supplies
2014 2015 2016 +1- 2016 over 2014
$ 67,287,390
$ 35,760,651
$ 48,004,497
Data Source: Washington State Department of Revenue
$ 113,860,049
$ 47,169,164
$ 34,672,939
$ 20,997,037
$ 44,627,333
$ 47,759,191
($ 46,290,353)
$ 8,866,682
($ 245,306)
Against the Sector Trend
Machinery, Equipment, and Supplies grew $8.8 million in 2016 over 2014 figures, a gain of
11%. The number of business units was up 25%, increasing from 250 to 275.
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INFORMATIONAL MEMO
Page 9
Small -Sectors Increasing
31-33 Manufacturing
Manufacturing units increased from 601 to 642 for the three-year period, and revenue
increased from $18.5 million in 2014 to $22.5 million in 2016.
Table 12. 32 Manufacturing
2014 2015 2016 +1- 2016 over 2014
Taxable
Sales $ 18,512,581 $ 19,880,153 $ 22,442,370 $ 3,929,789
Units
601 581 642 +41
Data Source: Washington State Department of Revenue
The number of beverage manufacturers grew from 76 units in 2014 to 101 units in 2016, with
revenue almost doubling from $600,000 in 2014 to $1.1 million in 2016. Within this
classification are brewers and distillers.
62 Health Services
Health Services taxable retail sales in 2016 was over $5 million, an increase of more than $4.9
million over 2014. The most active classifications within this sector were Vocational
Rehabilitation Services, which makes up about 75% of the total, and Offices of Other Health
Practitioners, which increased from under $100,000 to over $1.5 million for the period.
2014
Taxable
Sales $ 145,840
Units 33
Table 13. 62 Health Services
2015 2016 +1- 2016 over 2014
$ 338,482
33
$ 5,054,728 $ 4,908,888
40 +7
Additional Questions/Considerations:
Was there a change in tax law/reporting/classification?
What is the trend in other cities within sectors and classifications?
What are we missing from the confidential classifications?
RECOMMENDATION
Discussion only
ATTACHMENTS
Appendix
Powerpoint
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129
130
APPENDIX.
Regional General Retail Sales
Table A.
City
Auburn
Burien
Kent
Renton
Tukwila
Grand Total
2010
20%
6%
23%
28%
23%
100%
City Percent of Combined Annual Regular and Optional Sales Tax Revenue by Year
2011
20%
7%
2012 2013
20% 20%
7% 7%
23%
28% 28%
23% r 23%
27%
2014
20%
8%
23%
28%
2015
2016 2017
20% 19%
7% 8%
22% 23%
28%
30%
19%
8%
23%
29%
24% 22%
100% 100%
22%
21%
22% 21%
20%
100% 100% 100% 100%
100%
Data Source: Municipal Research and Services Center and Washington State Department of Revenue
Table B. SKC City Regular and Optional Annual Sales Tax Revenue
City ii 2010 2011 2012 2013 2014 2015 _I 2016 J; 2017
Auburn 1 $ 12,286,732 $ 12,887,253 $ 13,037,325 $ 14,364,200 $ 15,622,791 $ 16,865,539 ! $ 16,973,594' $ 17,581,514
Burien 4,006,5681 4,378,688 4,645,268 5,037,874 5,769,855 5,892,128 6,898,283 7,483,936
Kent ' 14,331,270 15,336,714 15,460,397 16,210,975 17,598,065 18,681,783 20,390,704 20,848,288
Renton �L__ 17,198,220 17,764,532 18,564,670 20,416,372 21,512,379 23,439,266 26,353,246 26,331,634
Tukwila 14,317,806 15,589,305 14,882,653 15,882,277 16,014,990 18,521,046 18,358,690 18,125,678
Grand Total $ 62,140,596 $ 65,956,493 $ 66,590,313 $ 71,911,698 $ 76,518,082 $ 83,399,762 $ 88,974,516 $ 90,371,050
IL Data Source: Municipal Research and Services Center and Washington State Department of Revenue
Table C. Percent Increase Over Prior Years' Regular and Optional Sales Tax Revenue, by City Average for
Location Name 2011 2012 2013 2014 2015 2016 2017 the period
King County 5% 7% 7% 8% 10% 8% N/A 6%4
Auburn 5% 1% 9% 8% 7% 1% 3% 5%
Burien 8% 6% 8% 13% 2% 15% 8% 8%
Kent 7% 1% 5% 8% 6% 8% 2% 5%
Renton 3% 4% 9% 5% 8% 11% 0% 6%
Tukwila 8% -5% 6% 1% 14% -1% -1% 3%
Data Source: Municipal Research and Services Center and Washington State Department of Revenue
Table D. April 1 Population Estimates
City/Town Name 2011 2012 2013 2014 2015 2016 2017
Auburn 70,705 71,240 73,235 74,630 75,545 77,060 78,960
Buriens 47,660 47,730 48,030 48,240 48,810 50,000 50,680
Kent6 118,200 119,100 j 120,500 121,400 122,900 124,500 127,100
Renton 92,590 93,910 95,540 97,130 98,470 101,300 102,700
Tukwila 19,050 19,080 19,160 19,210 19,300 19,540 19,660
Data Source: OFM
4 Does not include 2017, which was unavailable. Average is for 2011-2016
s Annexation 2010
6 Annexation 2010
SECTOR
44-45 RETAIL TRADE
72 ACCOMMODATIONS AND FOOD SERVICES
23 CONSTRUCTION
42 WHOLESALE TRADE
51 INFORMATION
53 REAL ESTATE
54 PROFESSIONAL SERVICES
71 ARTS, ENTERTAINMENT, & RECREATION
81 OTHER SERVICES
31-33 MANUFACTURING
56 MANAGEMENT SERVICES
52 FINANCE/INSURANCE
62 HEALTH SERVICES
48-49 TRANSPORTATION
61 SCHOOLS
City of Tukwila 2016 Taxable Retail Sales by Sector
2016 Taxable Retail
Sales
2016 $ +/-
over 2014 Sales
2016 % +/-
over 2014 Sales
$ 1,104,979,507 $ 53,783,683 5%
280,946,808 26,440,007 9%
160,134,611 63,695,558 40%
150,167,871 -37,620,796 -25%
97,342,457 26,073,747 27%
72,996,828 16,382,088 22%
60,704,760 17,465,765 29%
25,421,971 12,487,149. 49%
23,005,239 -2,865,544 -12%
22,442,370 3,979,789 18%
16,884,090 4,210,956 25%
7,385,541 1,907,389 26%
5,054,728 4,908,888 97%
4,860,438 768,983 16%
970,514 -3,869,470 `.
Data Source: Department of Revenue Annual Taxable Retail Sales
-399%
134
City of Tukwila Sales Tax Revenue Trends
• Regional Snapshot
• Large -Sector Movement
• Small -Sector Movement
City of Tukwila, April 2018
About the Analysis
• Material change from 2014-2016
• Data Sets from
• Sector Movement
• Increasing
• Decreasing
• Classifications moving against trend within
the sector
City of Tukwila, April 2018
NAICS Indexing System
• Explanation of Sectors and Classifications.
Sector
Classification
Ail- 31-33 - Manufacturing
31.2 - Bei erage and tobacco product manufacturing
3121 - Beverage manufacturing
31211- Soft drink and ice manufacturing
312111 - Soft drink manufacturing
City of Tukwila, April 2018
Regional Snapshot: Sales Tax and Population
Data Sources: Municipal Research and Services Center; Washington State Office of Financial Management
Table 1. Regional Revenue and Population
Growth 2010-2017
City
Average Sales Tax
Growth
King County
Auburn
Burien
Kent
Renton
Tukwila
6%
5%
8%
5%
6%
Total Population
Growth
11%
14%
37%
30%
16%
3%
7%
Data Source: MRSC, OFM
City of Tukwila, April 2018 4
Annual Sales Tax Revenue
Data Source: Municipal Research and Services Center
v,
30
0
25
20
15
10
5
0
Annual Sales Tax Revenue by City, 2010-2017
Renton, $26
Kent, $21
Tukwila, $18.13
Sum of 2010
Sum of 2011 Sum of 2012
Sum of 2013 Sum of 2014
City of Tukwila, April 2018
Sum of 2015
Auburn, $18
Sum of 2016 Sum of 2017
5
Overview of Large -Sector Movement in Tukwila
City of Tukwila 2016 Taxable Retail Sales by Sector
NAICS
44-45
72
23
42
51
53
54
71
SECTOR
RETAIL TRADE
ACCOMMODATIONS AND FOOD
SERVICES
2016 Taxable Retail
Sales
2016 $ +/-
over 2014 Sales
$ 1,104,979,507 $ 53,783,683
2016 % +/-
over 2014 Sales
5%
280,946,808 26,440,007 9%
CONSTRUCTION 160,134,611 63,695,558 40%
WHOLESALE TRADE 150,167,871 -37,620,796 -25%
INFORMATION 97,342,457 26,073,747 27%
REAL ESTATE 72,996,828 16,382,088 22%
PROFESSIONAL SERVICES 60,704,760 17,465,765 29%
ARTS, ENTERTAINMENT, &
RECREATION 25,421,971 12,487,149 49%
City of Tukwila, April 2018
Large -Sector Movement: Retail up 5%
Table 3. 44-45 Retail Trade
Sales
Units
2014
2015
2016
+1- 2016 over
2014
$ 1,051,195,824 $ 1,092,047,954 $ 1,104,979,507 $ 53,783,683
2445
2673
3018
+573
Data Source: Washington State Department of Revenue
City of Tukwila, April 2018
Retail Classifications Increasing: Electronics and Direct -Selling
Table 4. Retail Trade Classifications with Increasing Taxable Sales
Electronics and
Appliance Stores
Direct Selling
Establishments
2014
2015
2016
+1- 2016 over 2014
117,981,607 $ 123,835,343 $ 138,867,655 $ 20,886,048
5,187,895
$ 9,314,370
11,879,687 $
6,691,792
Data Source: Washington State Department of Revenue
City of Tukwila, April 2018
Retail Classifications Declining: Auto, Dept. Stores, Electronic/Nail Order
Table 5. Retail Trade Classifications with Declining Taxable Sales
Automobile
Dealers
Department
Stores
Electronic/
Mail -Order
2014
2015
2016
+/- 2016 over 2014
$ 65,363,562 $ 70,923,413 $ 60,884,953 ($ 4,478,609)
$ 154,480,120
$ 155,986,762
$ 16,021,724 $
$ 150,425,781
15,785,600 $
($ 4,054,339)
10,154,370 ($ 5,867,354)
Total +/- for these classifications
Data Source: Washington State Department of Revenue
City of Tukwila, April 2018
($ 14,400,302)
Other
Large -Sector
Movement
• 71 Arts and Entertainment
• 72 Accommodations and Food
• 54 Professional, etc. Services
• Wholesale Trade
1
ll
City of Tukwila, April 2018 10
Honorable Mention: Manufacturing and Health Services
Table 12. 32 Manufacturing
Taxable Sales
Units
2014
$ 18,512,581
601
2015 2016
$ 19,880,153 $ 22,442,370
581 642
2016 over 2014
$ 3,929,789
+41
Data Source: Washington State Department of Revenue
Table 13. 62 Health Services
Taxable Sales
Units
2014
$ 145,840
33
2015
$ 338,482
33
2016 +/- 2016 over 2014
$ 5,054,728 $ 4,908,888
40 +7
City of Tukwila, April 2018 11
Additional
Questions/Considerations
• Was there a change in tax law/reporting/classification?
• How do Tukwila's sector trends compare to other SKC
cities?
• What is the trend in other cities within this category?
• What are we missing from the confidential classifications?
Laura Crandall, laura.Crandall@tukwilawa.gov
City of Tukwila, April 2018
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Peggy McCarthy, Finance Director
CC: Mayor Ekberg
DATE: April 11, 2018
SUBJECT: Sales Tax and Miscellaneous Revenue Report- 4th Quarter 2017
Although 2017 sales tax collections came in only 1% or $98 thousand lower than 2016, the 2017
performance was 6% or $1.2 million below budget. The largest sector decline of ($115,985) occured
in wholesale trade; the largest sector increase of $105,608 occurred in the miscellaneous category,
unclassifiable establishments. A detailed analysis of sales tax performance will be presented to the
Finance Committee under separate memorandum.
Schedule I - Sales Tax
in $1,000's
147
2016 Actual
2017 Actual
YOY Change
Other
- Month -
!
Other ;
Total
!
Other ;
Total
Construction ;
Industries
!
Total
Collect-
Construe I
Construct I
I
j
ed
Rec'd
tion i Industries:
tion i Industries 1
Amount
% 1
Amount
% �
Amount
%
Jan
Mar
$ 99 j $ 1,190 j
$ 1,289
$ 123 j $ 1,149 j
$ 1,272
$ 24
24%1
$ (41)
-3%1
$ (17)
-1%
Feb
Apr
97 j
1,231 1
1,328
83 j
1,123 j
1,206
(14)
-14%1
(108)
-9%1
(122)
-9%
Mar
May
105 j
1,413 j
1,518
120 j
1,664 j
1,784
15
14%j
251
18%j
266
18%
Q-1 Totals
$ 301 1
3,834 I
$ 4,135
$ 326:
3,936
$ 4,262
$ 25
8%�
102
3%�
$ 127
3%
Apr
Jun
105
1,336
1,440
92 1
1,316
1,408
(13)
12%I
(20)
-1%:
(33)
-2%
May
Jul
119 :
1,361 I
1,480
106 I
1,315 ;
1,421
(12)
-10%I
(46)
-3%I
(59)
-4%
Jun
Aug
139 !
1,553 !
1,692
119 !
1,387 !
1,506
(20)
-14%!
(166)
-11%!
(185)
-11%
Q-2 Totals
$ 362 !
4,250 !
$ 4,612
$ 317 !
4,018 !
$ 4,335
$ (45)
-12%!
(232)
-5%!
$ (277)
-6%
Jul
Sep
1091
1,4281
1,537
1311
1,3761
1,508
22
20%I
(52)
-4%1
(30)
-2%
Aug
Oct
111 I
1,438 j
1,549
126 j
1,345 j
1,471
15
13%1
(93)
-6%j
(78)
-5%
Sep
Nov
115 j
1,444 1
1,559
140 1
1,473 j
1,613
25
22%j
29
2%j
54
3%
Q-3 Totals
$ 335 ;
4,310 ;
$ 4,645
$ 397 ;
4,194 i
$ 4,591
$ 62
19%;
(116)
-3%;
$ (54)
-1%
Oct
Dec
143 1
1,263 1
1,406
144 1
1,329 i
1,473
2
1%165
5%I
67
5%
Nov
Jan
126 ;
1,368 ;
1,494
110 ;
1,424 ;
1,534
(16)
-13%;
56
4%I
40
3%
Dec
Feb
118 !
1,852 !
1,970
120 !
1,849 !
1,969
2
1%!
(3)
0%!
(1)
0%
Q-4 Totals
$ 386 !
4,484 !
$ 4,870
$ 374 !
4,602 !
$ 4,976
$ (12)
-3%!
118
3%!
$ 106
2%
Totals
$ 1,385 j
16,878 j
$ 18,262
$ 1,414 j
16,750 j
$ 18,164
$ 30
2%1
(128)
-1%1
$ (98)
-1%
147
INFORMATIONAL MEMO
Page 2
Budget to Actual - Sales Tax in $1,000's
Schedule I - Sales Tax
1 48 W:1FIN Projects\Sales Tax Information1201711nfo Memo Sales Tax -2017-Q4 2017MEMO (Dec 2017).docx
- Month -
Collected Received
2016
2017
Variance [Actual
Over (Under) Original
Budget]
Actual
Allocated
Budget
Actual
Amt
%
Jan
Mar
$ 1,289
$ 1,366
$ 1,272
(94)
-7%
Feb
Apr
1,328
1,407
1,206
(201)
-14%
Mar
May
1,518
1,609
__ 1,784
175
11%
Q-1 Totals
$ 4,135
$ 4,382
$ 4,262
$ (120)
-3%
Apr
Jun
1,440
$ 1,526
1,408
(119)
-8%
May
Jul
1,480
1,568
1,421
(147)
-9%
Jun
Aug
1,692
1,793
1,506
(286)
-16%
Q-2 Totals
$ 4,612
$ 4,887
$ 4,335
$ (552)
-11%
Jul
Sep
1,537
$ 1,629
1,508
(121)
-7%
Aug
Oct
1,549
1,642
1,471
(171)
-10%
Sep
Nov
1,559
1,652
1,613
(39)
-2%
Q-3 Totals
$ 4,645
$ 4,923
$ 4,591
$ (331)
-7%
Oct
Dec
1,406
$ 1,490
1,473
(17)
-1%
Nov
Jan
1,494
1,583
1,534
(49)
-3%
Dec
Feb
1,970
2,089
1,969
(120)
-6%
Q-4 Totals
$ 4,870
$ 5,162
$ 4,976
$ (186)
-4%
Totals
$ 18,262
$ 19,352
$ 18,164
$ (1,189)
-6%
1 48 W:1FIN Projects\Sales Tax Information1201711nfo Memo Sales Tax -2017-Q4 2017MEMO (Dec 2017).docx
INFORMATIONAL MEMO
Page 3
Below is a graph of sales tax collections by type of industry showing annual change in revenue
receipts from 2016 to 2017.
$150,000
$100,000
$50,000
$-
$(50,000)
$(100,000)
$(150,000)
Change YTD by Category*
Miscellaneous
$105,608
Automotive
$57,966
Construction
$31,551
Reta i I Trade
$11,846
ra ns porta ti on/W a reho u s i
$(4,742)
Manufacturing
$(90,949)
Wholesale Trade
$(115,985)
Services
$(93,614)
W:IFIN Projects\Sales Tax Information1201711nfo Memo Sales Tax -2017-Q4 2017MEMO (Dec 2017).docx
149
1 50W:\ FIN Projects\Sales Tax Information1201711nfo Memo Sales Tax-2017-Q4 2017MEMO (Dec 2017).docx
SALES TAX SUMMARY
4th Quarter 2017 (Received in March 2017 - February 2018)
NAICS CONSTRUCTION
236 Construction of Buildings
237 Heavy & Civil Construction
238 Specialty Trade Contractors
TOTAL CONSTRUCTION
16 TOTAL 16 YTD
761,107 761,107
81,491 81,491
539,624 539,624
$ 1,382,222 $ 1,382,222 $
Overall Construction Change from Previous Year
MANUFACTURING
16 TOTAL
YTD
17YTD %Diff
844,136 10.9%
107,260 31.6%
462,376 -14.3%
1,413,773
$31,551 2.3%
16 YTD 17YTD
YTD
% Diff
311 Food Manufacturing 9,420
312 Beverage & Tobacco Products 5,217
313 Textile Mills 222
314 Textile Product Mills 11,406
315 Apparel Manufacturing 1,024
316 Leather & Allied Products 54
321 Wood Product Manufacturing 3,257
322 Paper Manufacturing 27,243
323 Printing & Related Support 28,709
324 Petroleum & Coal Products 19
325 Chemical Manufacturing -22
326 Plastic & Rubber Products 6,454
327 Nonmetallic Mineral Products 3,615
331 Primary Metal Manufacturing 2,008
332 Fabricated Metal Mfg Products 10,978
333 Machinery Manufacturing 10,555
334 Computer & Electronic Products 5,490
335 Electric Equipment, Appliances 2,588
336 Transportation Equipment Mfg 115,102
337 Furniture & Related Products 5,608
339 Miscellaneous Manufacturing 19,790
TOTAL MANUFACTURING $ 268,737 $
Overall Manufacturing Change from Previous Year
TRANSPORTATION &WAREHOUSING
481 Air Transportation
482 Rail Transportation
483 Water Transportation
484 Truck Transportation
485 Transit and Ground Passengers
487 Scenic and Sightseeing Tran
488 Transportation Support
491 Postal Services
492 Couriers & Messengers
493 Warehousing & Storage
TOTAL TRANSP & WI-ISING
16 TOTAL
0
44
269
2,679
664
2,058
48,851
811
2,139
1,161
$ 58,677 $
Overall Transportation Change from Previous Year
9,420 10,703 13.6%
5,217 11,960 129.3%
222 409 84.3%
11,406 14,792 29.7%
1,024 888 -13.3%
54 88 63.9%
3,257 3,740 14.8%
27,243 24,646 -9.5%
28,709 28,490 -0.8%
19 41 108.8%
-22 -15,834 73547.1%
6,454 3,955 -38.7%
3,615 5,081 40.5%
2,008 1,803 -10.2%
10,978 8,752 -20.3%
10,555 6,300 -40.3%
5,490 10,531 91.8%
2,588 3,949 52.6%
115,102 29,297 -74.5%
5,608 8,432 50.3%
19,790 19,765 -0.1%
268,737 $ 177,788
($90,949) -33.8%
16 YTD
WHOLESALE TRADE 16 TOTAL
0
44
269
2,679
664
2,058
48,851
811
2,139
1,161
58,677 $
17 YTD
11
169
86
1,852
395
57
47,071
816
1,600
1,878
53,936
($4,742)
16YTD 17YTD
YTD
% Diff
0.0%
285.5%
-68.1%
-30.9%
-40.5%
-97.2%
-3.6%
0.6%
-25.2%
61.8%
423 Whls Trade -Durable Goods 1,132,580
424 Whls Trade -Nondurable Goods 157,285
425 Wholesale Electronic Markets 2,988
WHOLESALE TRADE TOTAL $ 1,292,853 $
Overall Wholesale Change from Previous Year
1,132, 580 1,018,477
157,285 155,695
2,988 2,696
1,292,853 $ 1,176,868
($115,985)
NAICS AUTOMOTIVE 16 TOTAL
441 Motor Vehicle & Parts Dealer 654,125
447 Gasoline Stations 88,489
TOTAL AUTOMOTIVE $ 742,614 $
Overall Automotive Change from Previous Year
NAICS RETAIL TRADE 16 TOTAL
442 Furniture & Home Furnishings 475,117
443 Electronics & Appliances 1,181,336
444 Building Material & Garden 734,089
445 Food & Beverage Stores 236,576
446 Health & Personal Care 306,652
448 Clothing & Accessories 2,089,128
451 Sporting Goods, Hobby, Books 573,709
452 General Merchandise Stores 2,202,158
453 Miscellaneous Store Retailers 727,568
454 Nonstore Retailers 156,093
TOTAL RETAIL TRADE $ 8,682,425
Overall General Retail Change from Previous
SERVICES
16 YTD
654,125
88,489
742,614 $
16 YTD
475,117
1,181,336
734,089
236,576
306,652
2,089,128
573,709
2,202,158
727,568
156,093
$ 8,682,425 $
Year
16 TOTAL 16 YTD
17 YTD
709,541
91,039
800,581
$57,966 7.8%
YTD
% Diff
8.5%
2.9%
17 YTD
445,454
1,168,189
805,251
257,762
298,682
2,066,870
533,560
2,131,267
738,487
248,748
8,694,271
$11,846 0.1%
% Diff
-6.2%
-1.1%
9.7%
9.0%
-2.6%
-1.1%
-7.0%
-3.2%
1.5%
59.4%
YTD
17YTD %Diff
51X Information
52X Finance & Insurance
53X Real Estate, Rental, Leasing
541 Professional, Scientific, Tech
551 Company Management
56X Admin, Supp, Remed Svcs
611 Educational Services
62X Health Care Social Assistance
71X Arts & Entertainment
72X Accommodation & Food Svcs
81X Other Services
92X Public Administration
TOTAL SERVICES
858,379
117,529
657,600
586,373
5
155,622
11,320
325,504
245, 035
2,401,994
214,562
68,626
$ 5,642,550 $
Overall Services Change from Previous Year
MISCELLANEOUS
858,379
117,529
657,600
586,373
5
155,622
11,320
325,504
245,035
2,401,994
214,562
68,626
5,642,550
820,832 -4.4%
106,045 -9.8%
623,983 -5.1%
547,039 -6.7%
9 0.0%
170,046 9.3%
10,355 -8.5%
119,513 -63.3%
256,620 4.7%
2,536,470 5.6%
270,882 26.2%
87,143 27.0%
$ 5,548,937
($93,614) -1.7%
YTD
16 TOTAL 16 YTD 17 YTD % Diff
000 Unknown
111-115 Agriculture, Forestry, Fishing
211-221 Mining & Utilities
999 Unclassifiable Establishments
MISCELLANEOUS TOTAL $
-8.1% Overall Miscellaneous Change from Previous Year
0 0 0 -100.0%
514 514 1,089 111.8%
133 133 547 311.9%
191,819 191,819 296,439 54.5%
192,466 $ 192,466 $ 298,074
$105,608 54.9%
YTD
% Diff
-10.1%
-1.0%
-9.8%
16 TOTAL 16 YTD
YTD
17 YTD "/ Diff
GRAND TOTALS $18,262,544 $18,262,544 $18,164,227
Grand Total Change from Previous Year ($98,317) -0.54%
-9.0% Grand Total Change from Previous Year - Without New Construction ($129,868) -0.77%
INFORMATIONAL MEMO
Page 5
Below is Schedule IV which shows quarterly gambling tax earned in 2017 compared to 2016.
Schedule IV - Gambling Tax (a)
Quarter
Earned
(d)
2016 2017
Actual Actual
2017
Allocated
Budget
INCREASE
YEAR OVER YEAR
Amount
(DECREASE)
BUDGET VARIANCE
Amount
Q1
Q2
Q3
Q4
Totals
$ 950,379 $ 977,003
867,047 983,322
927,316 951,991
934,269 958,503
$ 3,679,011 $ 3,870,819
$ 989,745
902,961
965,727
972,968
$ 3,831,400
26,624
116,276 13%
3%
24,675
24,234
191,808
3%
3%
5%
$ (12,742) -1%
80,361 9%
(13, 736)
(14,465) -1%
$ 39,419 1%
- 1%
Gambling tax revenue exceeded expectations in 2017 and ending the year with a year over year
increase of 5% or $191 thousand and an increase over budget of 1% or $39 thousand. Four
casinos are in operation - the Great America, Riverside Inn, Fortune (formerly the Golden Nugget)
and the Macau.
Schedule V shows monthly admissions tax receipts for the prior year and current year to date.
Schedule V - Admissions Tax (b)
Quarter
Earned
(d)
2016 2017
Actual Actual
2017
Allocated
Budget
INCREASE (DECREASE)
YEAR OVER YEAR BUDGET VARIANCE
Amount
OA
Amount
Oh
Q1
Q2
Q3
Q4
Totals
$ 161,269 $
156,588
157,862
157,821
$ 633,540 $
166,003 $
157,574
177,422
171,641
672,640 $
178,187
173,014
174,422
174,377
700,000
$ 4,734
986
19,560
13,820
$ 39,100
3%
$ (12,183)
1% (15,441)
12% 3,000
(2,736)
6% $ (27,360)
9%
- 7%
-9%
2%
- 2%
- 4%
Admissions tax revenue exceeded 2016 collections by 6% or $39 thousand but came in at 4% or
$27 thousand less than budget. The movie theatres are the main source of admissions tax
revenue.
Schedule VI shows monthly telecommunications utility tax receipts for 2017 compared to 2016.
Schedule VI - Telecommunications Utility Tax (0)
Quarter
Earned
(d)
2016 2017
Actual Actual
2017
Allocated
Budget
INCREASE (DECREASE)
YEAR OVER YEAR BUDGET VARIANCE
Amount % Amount
Q1
Q2
Q3
Q4
Totals
$ 348,156 $ 323,708 $ 339,620
321,852 312,456 313,961
317,156 388,433 309,380
343,515 316,497 335,093
$ 1,330,679 $ 1,341,094 $ 1,298,053
$ (24,448)
(9,397)
71,277
(27, 018)
$ 10,415
- 7%
- 3%
22%
-8%
1%
$ (15,912)
(1,505)
79,053
(18, 596)
$ 43,041
- 5%
0%
26%
- 6%
3%
Telecommunications tax increased over 2016 by 1% or $10 thousand and exceeded budget by
3% or $43 thousand. This is due to a taxpayer who filed returns from prior years of $80K on behalf
of their merger company.
(a)
(b)
(c)
(d)
Gambling tax currently includes card games, punch boards, pull tabs, and amusement games.
Excludes golf course admissions tax.
Telecommunications Utility tax currently includes cellular, pager and telephone usage.
Actuals reflected in Schedules IV, V and VI are amounts earned for the quarter.
W:IFIN Projects\Sales Tax Information120171Info Memo Sales Tax -2017-Q4 2017MEMO (Dec 2017).docx
151
152
City of Tukwila
INFORMATIONAL MEMORANDUM
TO: Finance Council Committee
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carlsen, Deputy Finance Director
CC: Mayor Ekberg
DATE: April 11, 2018
SUBJECT: 2018 February General Fund Update
Summary
Allan Ekberg, Mayor
The purpose of the 2018 Financial report is to summarize for the City Council the general state of
Departmental expenditures and to highlight significant items or trends. The following provides a high-level
summary of the Departmental financial performance. The 2018 February YTD report is based on financial
data available as of April 9th, 2018, for the reporting period ending February 28, 2018. Additional details
can be found within the attached financial report.
Allocated budgets through the reporting period are calculated by analyzing spend patterns in the previous
year and allocating the current year budget using the same spend pattern. If a line item had no expenditures
in the prior year but a budget in the current year, the allocated budget for the current year would be zero.
It should be noted that budget amendments, as approved by Council on November 20, 2017, have been
included in this report.
Departmental Expenditures
General fund expenditures totaled $9.72 million as compared to the allocated budget of $10.60 million,
which is $874 thousand below budget. Notable variances are as follows:
• TIS department has exceeded allocated budget by $24.6 thousand. Salaries and benefits are above
allocated budget by $14 thousand. A position that what was vacant most of last year is now filled.
Communication line is above allocated budget by $19 thousand. In January of 2017, a large credit was
posted to this line that wasn't replicated in 2018. Through February 16.67% of the year has lapsed but
total spending in TIS is at 14%. Departmental spending will be closely monitored throughout the year.
• Salaries and benefits are $445 thousand lower than budget due to a few labor contracts that have not
been settled as well as vacancies in several departments including Police, Human Resources, Finance,
and DCD.
• The overall goal is to reduce general fund department expenditures by 3%. Departmental spending
will be closely monitored throughout the year to ensure that this goal is met.
153
INFORMATIONAL MEMO
Page 2
Year to Date Department Expenditures Compared to Allocated Budget
(Through February 2018)
City CouncilIN
$58
$64
Mayor
$587
$597
Human Resources $78
$109
Finance $636
Attorney $2
$51
Recreation
Community Dev.
Municipal Court
Police
Fire
$470
$520
11.1111111111.11111111.11.1 $501
$574
$203
$200
$869
Tech. & Innovation ...11111111.1 $296
$271
Public Works
Park Maintenance
Street Maint & Ops
$663
$724
$262
$278
Dept 20 • $50
am $86
$0
154
$745
$763
$1,000
■Year to Date •Allocated Budget
$2,000
Thousands
INFORMATIONAL MEMO
Page 3
GENERAL FUND
CITY OF TUKW ILA
GENERAL FUND EXPENDITURES
YTD AS OF FEBRUARY 28, 2018
4/9/2018 18:35
SUMMARY OF EXPENDITURES BY
DEPARTMENT
BUDGET
ACTUAL
COMPARISON OF RESULTS
2018 ANNUAL
2018
ALLOCATED
2016
2017
2018
ACTUAL
OVER/(UNDER) % CHANGE
ALLOCATED
BOOT
%SPENT 2016/2017 2017/2018
01 City Council
430,319
63,756
60,668
58,828
58,476
(5,280)
14%
(3)%
(1)%
03 Mayor
4,143,651
597,212
571,486
554,485
587,094
(10,118)
14%
(3)%
6%
04 Human Resources
728,083
109,040
110,775
100,818
78,273
(30,767)
11%
(9)%
(22)%
05 Finance
2,733,016
868,918
686,397
712,868
635,669
(233,249)
23%
4%
(11) %
06 Attorney
733,185
51,389
50,661
46,449
1,743
(49,647)
0%
(8)%
(96)%
07 Recreation
3,332,680
520,019
437,676
473,969
470,213
(49,806)
14%
8%
(1) %
08 Community Development
3,671,160
574,228
418,285
505,359
500,579
(73,649)
14%
21%
(1)%
09 Municipal Court
1,295,812
199,654
184,736
185,967
203,122
3,467
16%
1%
9%
10 Police
18,999,049
3,297,909
3,168,001
3,017,119
3,113,703
(184,206)
16%
(5)%
3%
11 Fire
12,432,599
2,191,664
1,916,114
2,107,444
2,059,503
(132,161)
17%
10%
(2)%
12 Technology & Innovation Svcs
2,040,671
271,212
184,195
201,998
295,821
24,609
14%
10%
46%
13 Public Works
3,876,047
724,337
650,142
660,324
663,098
(61,240)
17%
2%
0%
15 Park Maintenance
1,459,098
278,065
203,683
256,505
261,608
(16,457)
18%
26%
2%
16 Street Maintenance & Operations
3,149 643
763,208
717,372
738,308
744,576
(18,633)
24%
3%
1%
20 Dept 20
9,539,621
86,438
50,000
50,000
50,000
(36,438)
1%
0%
0%
Total Expenditures
68,564,634
10,597,051
9,410,191
9,670,442
9,723,477
(873,575)
14%
3%
1%
Percent o year completed
16.67%
155
INFORMATIONAL MEMO
Page 4
GENERAL FUND
CITY OF TUKWILA
GENERAL FUND EXPENDITURES
YTD AS OF FEBRUARY 28, 2018
4/9/2018 18:35
SUMMARY OF SALARIES AND
BENEFITS
BUDGET
ACTUAL
COMPARISON OF RESULTS
2018 ANNUAL
2018
ALLOCATED
2016
2017
2018
ACTUAL
OVER/(UNICFR) %CHANGE
ALLOCATED
BOOT
%SPENT 201612017
2017/2018
11 Salaries
28,339,011
4,701,678
4,410,807
4,497,579
4523,144
(178.534)
16%
2%
1%
12 E1dra Labor
754593
92,591
91,248
79,487
79,880
(12,710)
11%
(13)%
0%
13 Overtime
1,632,035
310,226
197,656
286,821
220,522
(89,703)
14%
45%
(23)%
15 Holiday Pay
525,583
465
-
489
97
(368)
0%
-
(80)%
21 FICA
1,843,030
306,835
281,354
290,651
298,020
(10,815)
16%
3%
2%
22 Pension-LEOFF2
880,275
134,102
130,126
133,423
138,003
3,901
16%
3%
3%
23 Pension-PERS/PSERS
1,608,904
257,360
223,620
239,905
279,347
21,987
17%
7%
16%
24 Industrial Insurance
940,895
142,359
101,538
95,951
96,455
(45,904)
10%
(6)%
1%
25 Medical&Dental
6,395,135
1,073,009
937,275
935,400
923,300
(149,709)
14%
(0)%
(1)%
26 Unemployment
13,000
-
10,624
471
16,622
18,622
128%
(96)%
3427%
28 Uniform/Clothing
10,500
1,168
520
630
1,030
(139)
10%
21%
63%
Total Salaries and Benefits
42,943,061
7,019,791
6,384,767
6,560,809
6,574,418
(445,374)
15%
3%
0%
Percent of year completed 16.67%
SUMMARY OF SUPPLIES,
SERVICES, AND CAPITAL
BUDGET
ACTUAL
COMPARISON OF RESULTS
2018 ANNUAL
2018
ALLOCATED
2016
2017
2018
ACTUAL
OVER/(UNDER) % CHANGE
ALLOCATED
BOOT
% SPB'IT 2016/2017
2017/2018
Transfers
9,539,621
86,438
50,000
50,000
50,000
(36,438)
1%
0%
0%
31 Supplies
1,176,504
184,490
169,050
165,801
138,455
(46,035)
12%
(2)%
(16)%
34 Items Purchased for resale
22,000
74
(1,115)
69
-
(74)
-
(106)%
-
35 Small Tools
97,318
23,190
8,387
16,060
11,144
(12,047)
11%
92%
(31)%
41 Professional Services
3,304,461
269,832
234,474
211216
199,111
(70,721)
6%
(10)%
(6)%
42 Communication
436,370
41,928
47,030
40,100
55,408
13,480
13%
(15)%
38%
43 Travel
189,880
33,202
27,008
30,554
28,712
(4,490)
15%
13%
(6)%
44 Advertising
51,500
8,423
3,239
4,237
3,796
(4,827)
7%
31%
(10)%
45 Rentals and Leases
2,313,038
418,359
435,663
355,612
355,766
(62,594)
15%
(18)%
0%
46 Insurance
976,992
987,822
804,035
880,875
968,135
313
99%
10%
10%
47 Public Utilities
1,928,305
600,620
539,968
581,973
603,098
2,477
31%
8%
4%
48 Repairs and Maintenance
799,988
88,116
66,371
117,078
33,487
(54,629)
4%
76%
(71)%
49 Mscellaneous
1,564,472
342,076
204,195
183,778
208,986
(133,091)
13%
(10)%
14%
51 Inter -Governmental
3,191,119
504,582
421,069
462269
488,066
(16,516)
15%
10%
6%
53 E# Taxes, Oper. Assess
5
-
6
16
85
85
1702%
170%
423%
64 Machinery & Equipment
30,000
8,108
16,083
9,995
4,812
(3,298)
16%
(38)%
(52)%
Total Supplies, Services, and Capital
25,621,573
3,577,260
3,025,424
3,109,633
3,149,059
(428,201)
12%
3%
1%
Percent o year completed
156
16.67%