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Home My WebLink AboutRFA 2015-10-28 Item 4 - Powerpoint Presentation Shown at Meeting - Funding Tukwila Fire Services Through AnnexationFunding Tukwila Fire Services through Annexation to the Kent RFA Using Taxes and Fire Benefit Charges For Sustainable Fire Services in Tukwila Part 2 October 28, 2015 Tukwila Steering Committee Meeting 1 Funding Tukwila Fire Services through Annexation to the Kent RFA Using Taxes and Fire Benefit Charges For Sustainable Fire Services in Tukwila Part 2 October 28, 2015 Tukwila Steering Committee Meeting 2 RFA Capital Commitment • Summary - RFA commitment — Station 51 construction begins 2017 open 2021 — Station 52 open by 2023 — Station 53 and 54 later 2030 — 2033 — Capital equipment replacement cycles • 20 years heavy duty • 7 years medium duty • 10 years light duty Tukwila 15 years Tukwila 10 year Tukwila 10 years • Other equipment per requirements October 28, 2015 Tukwila Steering Committee Meeting RFA Capital Commitment • Summary RFA commitment (cont.) — Operational and most capital funding — Additional Aid Car and Engine to maintain reliability — Additional staffing for: • Distribution 53 as required • Additional units as required October 28, 2015 Tukwila Steering Committee Meeting 4 Tukwila Capital Assistance to RFA • Assistance needed from Tukwila — Continue to fund life cycle replacements 2016 • $565,000 or in kind purchases — SCBA? — Continue to fund life cycle replacements 2017 • $565,000 or in -kind purchases — PPE? —Cost to support cash flow for Stations • Interest and fees of $10 million - 12 yr. Bon • Estimated at $2,453,540 — Total cash or in -kind = $3,583,540 October 28, 2015 Tukwila Steering Committee Meeting 5 Tukwila Capital Assistance to RFC • Assistance needed from Tukwila — Assurance of fire impact fees: • Tukwila & RFA ILA for Impact Fees — Current Planned Environment through 2035 » 10 million plus square feet commercial space » 3,000 plus Residential housing units — Tukwila assures impact fee of $7.039 million: » 80% of expected commercial space • $4.75 Tukwila South Mitigation » 55% of expected new housing units October 28, 2015 Tukwila Steering Committee Meeting 6 Tukwila Capital Assistance to RFA • Summary - Tukwila commitment — $3.58 million cash or in -kind — Financial assurances • $2.29 million fire impact fees ($7.039 - $4.75 contract) — ILA with RFA for fire impact fee pass- through — 80% of Tukwila South total build out — 53% of housing build -out October 28, 2015 "ukwila Steering Committee Meeting 7 Capital Expenses Table 1 Total Capital Expenses Expense Description Fire Station Construction / Remodeling Life Cycle Replacements Asset Preservation Added Response Capacity Interim Funding - $113 mill bond costs Capital Reserve of 9.4% of expenses Expense Use Stations 51, 52, 53, 54 Vehicles and Equipment Roofing, siding, HVAC etc. for Stations Additional Aid Car and Engine Interest and origination fees KFDRFA Capital Contingency Total Tukwila Area Capital Expenses Expense Amount $25,828,452 $12,332,250 $567,000 $1,150,000 $2,453,540 $4,942,496 $47,273,379 Capital Revenue Table 2 Capital Revenue and Sources for Plan Revenue Source Tukwila Taxpayers KFDRFA Taxpayers Tukwila Developers City of Tukwila City of Tukwila October 28, 2015 Revenue Type Taxes & fees Taxes & fees Impact fees Cash or in -kind purchases Cash or in -kind property Revenue Use All capital needs New fire station 51 Fire stations, Aid Car, Engine Life cycle in 2016 & 2017 Payment of bond interest Total Revenue Total Expenses from Table 1 Unfunded Balance Tukwila Steering Committ Revenue Amount $36,330,946 $319,613 $7,039,640 $1,130,000 $2,453,540 $47,273,379 - $47,273,379 $0.00 The Process • Summary — Cost of sustaining services compared to current year "2015" costs • Tukwila estimates sustainability at a cost of $2.68 per thousand of assessed value — Open timeline for capital — Estimated at $0.47 per thousand or $3.15 total • RFA estimates sustainability at a cost of $2.78_ — Capital timeline established October 28, 2015 "ukwila Steering Committee Meeting Fire Benefit System FBC Designed for Tu wi a s Unique Service Area Kent Fire Authority Fire Benefit Charge Funding System SPECIFIED IN RCW 52.26.240 TAX LEVY + FIRE BENEFIT CHARGE $1.00 Tax Levy FBC Assessment (Size, Use & Risk) Total Annual Fire Assessments Tukwila FBC begins at 58% of ops budget in 2017 Declines through 2035 Tukwila Service Area FBC ....,..._.................._ Kent Regional Fire Authority - Tukwila Service Area Benefit Charge Formula: Square root of total square footage X 18 X Category Factor X Fire Flow Factor X Response Factor X Risk Factor X Applicable Discount = FBC Total square footage of structures) Category Factors: im N er n ti ni ry m m a r un CI a $ 006 0 ° .ti 0 :-o 20,000-29,999 666'61? - 000 "0£ rn a in 100,000 - 139,999 140,000 - 199,999 2 a MI cri 8 0 0 ° 8 0 oi ° a 0 0 500,000 - 599,999 8 0 di 0 0 0 o a ccn rn di ° o 0 d °n A c M 0 g Residential Mobile Homes Apartments Commercial 0.70 0.70 1.60 1.10 0.70 0.70 1.60 1.10 0.70 0.70 1.60 1.10 0.70 0.70 1.60 1.10 0.70 0.70 1.60 1.30 0.70 0.70 1.60 1.30 0.70 1.60 1.30 0.70 1.60 1.40 0.70 3.25 1.40 3.25 1.40 3.25 1.50 6.70 1.50 6.70 2.05 8.60 2.05 11.10 3.05 14.25 3.35 14.25 3.50 14.25 3.75 14.25 4.00 14.25 4.15 14.25 4.25 Fire Flaw Factor* 0 4923064* Response Factor: ** Residental Manufactured Homes Apartments Commercial 1.00 1.00 1.60 1.18 1.10 1.00 1.60 1.18 1.35 1.00 1.60 1.18 1.65 1.00 1.60 1.18 1.65 1.00 1.60 1.18 2.25 1.00 1.60 1.18 2.25 1.00 1.60 1.75 2.25 1.60 1.75 2.25 1.60 1.75 1.60 2.65 1.60 4.10 1.60 4.10 1.60 4.10 1.60 4.10 1.60 4.30 1.60 4.30 1.60 4.40 1.60 4.50 1.60 4.50 1.60 4.50 1.::0 4.50 Risk /Regional Usage Factor : * ** Light Hazard /Regional Ordinary Hazard /Regional -1 Ordinary Hazard /Regional - 2 Extra Hazard /Regional - 1 Extra Hazard/Regional -2 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 T.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 1.00 1.10 1.20 1.30 1.40 Discounts: Automatic Fire Sprinklers Manual Local Alarm Manual Central Alarm Automatic Local Alarm Automatic Central Alarm Agricultural 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250120.250 0.900 0.980 0.950 0.970 0.925 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0,250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 0.900 0.980 0.950 0.970 0.925 0.250 *Fire flow factor is estimated until final tar and nrnnerty data is rprtifipd by the Kinp County Assessor FBC System by Property Classification Preliminary FBC Development Operations and Capital Funding IMO ipip RFA Distribution of Fire Fees (Tax + FBC) by Property Classification in Tukwila Homes - 19% Apartments - 9% Mobile Homes - 002% Commercial - 72% Preliminary FBC Development Operations and Capital Funding Distribution of tax based funding at $2.68 (Tukwila estimated cost) by Property Classification in Tukwila Homes -29% Apartments - 9% Mobile Homes - .005° Commercial - 62% 71% Apartments and Commercia Preliminary FBC Development Operations and Capital Funding FA Funding - Total Fire Fees (Tax + FBC) by use omes & Mobile Homes - 18.78° Apartments & Commercial - 81.22° Preliminary FBC Development operations and Capital Funding kwila Fun ribution of taxes at $2.68 by use Homes & Mobile Homes - 29% Apartments & Commercial - 71% Preliminary FBC Development Residential CoiliNdrisoil:, N N V N X 2 1799 2699 3599 4999 None ercent of Tota otal Houses in V 1,922 46.66 %1 1,922 1,282 31.12% 684 16.61% 1,282 684 3 txo 1,144 $133,194 $133.19 2,250 $216,460 $216.46 3.048 196 4.76% 196 4,050 $270,712 $348,874 $270.71 $348.87 $201.12 $334.31 $316.60 $449.52 $533.06 $720.23 $2.51 $2.46 $2.66 $641.06 $989.93 $2.84 35 0.85% 35 5,964 $534,551 $535.55 $1,074.61 $1,609.16 $3.01 bbO ca V $2.68 ($0.17) $2.68 ($0.22) $2.68 ($0.02) $2.68 $0.16 $2.68 $0.33 4,119 100.00% Preliminary FBC Development Residential Comparisons Home Costs Compared to Tukwila Option of $2.68 Per Thousand Only 231 Homes Pay more than the Tukwila Option < $2.50 Per Thousand - 31° < $2.60 Per Thousand - 47° < $2.70 Per Thousan > $2.70 Per Thousan Preliminary FBC Development Residential Comparisons NW ill Percentage of Homes Paying More or Less than Tukwila Capital Option of $2.68 MP MP MP Homes to Pay Less - 94.39 0 Homes to Pay More - 5.61° r Preliminary FBC Development Apartment ComNaH>U11, CO x 0 co o2 1— u. bA OA Q Q 14,999 49,999 139,999 199,999 66 30 14 2 112 15.79% 34.86% 36.70% 12.65% 100.00% 497 778 1,097 835 1.155 887 398 806 3,147 $78,794 $78,641 $89,931 $80,695 $78.79 $78.64 $89.93 $80.69 $220.25 $216.36 $304.52 $245.35 $299.04 $295.00 $394.45 $326.04 N ; co J J .Q ++ CU V ! •CT w •� •� W H $3.79 $3.75 $4.38 $4.04 $2.68 $2.68 $2.68 $2.68 $1.07 $1.70 $1.36 All Apartments wi pay more t an Revenue at $2.68 = $700,601 Revenue with FBC system = $1,057,6 Preliminary FBC Development Apartment Comparisons Percentage of Apartments Paying More or Less than Tukwila Capital Option of $2.68 Apartments to Pay Less - 0% Apartments Preliminary FBC Development Commercial Com parisonr Ma Pa Per Avg. GJ w 0.91% $832,136 $832 2.52% $1,143,398 99999 199999 999999 145 49 23 545 26.61% 57,789 8.99% 4.22% 100.00% 133,014 373,296 $2,093,104 $1,143 $614 $1,548 Tot $1,446 $2,691 $1.74 $2.35 $2.68 $2.68 ($0.94) ($0.33) $2,039 29999 127 23.30% 18,611 8.83% 99999 199999 999999 145 49 23 545 26.61% 57,789 8.99% 4.22% 100.00% 133,014 373,296 $2,093,104 $1,143 $614 $1,548 Tot $1,446 $2,691 $1.74 $2.35 $2.68 $2.68 ($0.94) ($0.33) $2,039 $3,615 $5,708 $2.73 $2.68 $0.05 31.31% $6,107,586 $6,108 $11,760 $17,638 $2.89 24.35% $11,506,163 $11,506 32.08% $30,520,187 $30,520 $24,690 $36,197 $74,429 $102,949 $3.15 $3.37 $2.68 $0.21 $2.68 $2.68 $0.47 $0.69 Preliminary FBC Development Commercial Comparisons Percentage of Commercial Paying More or Less than Tukwila Capital Option of $2.68 Commercial Parcels Paying Less - 6.88 Commercial Parcels Paying Mor 63.12° Specific Commercial 1 Large taller Properties — Tukwila Without RFA $2.89 million value @ $2.68 $2.89 million value @ $0.47 Total _ $775,515.08 - $136,004.51 - $911,519.60 — With RFA Approval - $24.7 mil = vacant land _ $289,371.30 - $346,051.98 - $635,423.28 • $2.89 million value @ $1.00 Fire Benefit Charge Total J Specific Commercial • 1 Multiple ous - Owner - 64 Properties - Tukwila Without RFA $2.89 million value @ $2.68 $2.89 million value @ $0.47 Total _ $494,076.22 - $ 86, 647.70 = $580,723.92 - With RFA Approval - $64 mil AV = vacant land • $2.89 million value @ $1.00 Fire Benefit Charge Total _ $184,356.80 - $331,178.72 - $515,535.52 Questions