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Home My WebLink AboutCOW 2016-10-24 Item 3C.3 - Budget Review - 2017-2018 Biennial Budget: Urban Renewal Fund (302 Fund)COUNCIL AGENDA SYNOPSIS ---------------------------- - - - - -- Initials Meetin ,g Date Prepared by Ma , W C review O�VKI 10/24/16 VC W/1C E] Ordinance At g Dale F-1 Bid,,l),vard Ali g ]date ❑ Public Hearin ,g Alt ,g Di, ❑ Other Altg Dale SPONSOR ❑ Counnil ❑ Mayor E].I-IR ❑ DCD N,Flinaw [:] Fire ❑ T ❑ P&E E] Police ❑ PWI SPONSOR'S Council is being asked to review the Urban Renewal Fund 2017-2018 proposed budget. If SUMMARY no changes are requested, Council consensus will be requested to move the Urban Renewal fund 2017-2018 proposed budget forward to the final budget package for approval in November. Rt,'IvIEwj;i) i3y [—] cow mtg. CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/10/16 COMMITME CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. Finance COmm"I"') "I For Information Only; Forward to Committee of Whole for Discussion COST IMPACT / FUND SOURCE Exi)i,"Nl)l't'Ulzj,'REQUIIZI l) AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source; Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/24/16 ITEM INFORMATION 3.C. (3) I H STAFF SPONSOR: VICKY CARLSEN I ORIGINAL AGENDA DxIT": 10/24/16 AGENDA I,i,j ?m TITI,I Review Urban Renewal Fund 2017-2018 Proposed Budget CXFEGORY N Discussion All Date 10124116 El Motion Ai g Dale ❑ Resolution At g Date E] Ordinance At g Dale F-1 Bid,,l),vard Ali g ]date ❑ Public Hearin ,g Alt ,g Di, ❑ Other Altg Dale SPONSOR ❑ Counnil ❑ Mayor E].I-IR ❑ DCD N,Flinaw [:] Fire ❑ T ❑ P&E E] Police ❑ PWI SPONSOR'S Council is being asked to review the Urban Renewal Fund 2017-2018 proposed budget. If SUMMARY no changes are requested, Council consensus will be requested to move the Urban Renewal fund 2017-2018 proposed budget forward to the final budget package for approval in November. Rt,'IvIEwj;i) i3y [—] cow mtg. CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/10/16 COMMITME CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. Finance COmm"I"') "I For Information Only; Forward to Committee of Whole for Discussion COST IMPACT / FUND SOURCE Exi)i,"Nl)l't'Ulzj,'REQUIIZI l) AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source; Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/24/16 MTG. DATE ATTACHMENTS 10/24/16 Informational Memorandum dated 10/5/16 Urban Renewal Fund 2017 - 2018 Proposed Budget Minutes from the Community Affairs and Parks Committee meeting 10/10/16 H m City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Affairs and Parks Committee FROM: Derek Speck, Economic Development Administrator DATE: October 5, 2016 SUBJECT: Fund 302 Proposed Budget for 2017-2018 ISSUE As provided for in the budget process approved by the Finance and Safety Committee, Council Committees are reviewing budget sections prior to review by the full Council. This memo provides a description of the proposed budget for Fund 302. BACKGROUND Until this year, the 302 Fund was called the "Facilities Fund" or "Facilities Replacement Fund" and it included expenditures related to general government building replacement and major enhancements. In the past years, the main expenditures in the 302 Fund were for development of a facilities plan, Tukwila Village, and the purchase and demolition of the motels on Tukwila International Boulevard. Due to the Public Safety Plan, the City has now created Fund 306 as the City Facilities fund to account for costs associated with major reconstruction of City facilities including the Public Works shops. Accordingly, Fund 302 has been renamed "Urban Renewal" and will continue to be used for tracking significant property transactions such as Tukwila Village, the motels, the Longacres Parcel, or other properties if they arise. DISCUSSION Tukwila Village: The proposed budget for Tukwila Village estimates $46,000 of expenditures through 2018 and revenues from selling the property of $3,483,000 in 2017 and $2,061,000 in 2018. The land sale revenue estimates for phases 1, 2 and 3 are based on the formula in the Disposition and Development Agreement. Land sale revenue from the Gregor House and Newporter site are based on a conservative estimates of $250,000 and $775,000, respectively. TIB Redevelopment (Motels): The proposed budget for the TIB Redevelopment (Motels) project estimates $50,000 of expenditures through 2018 and revenue of $2,250,000 from selling the property in 2018. RECOMMENDATION Staff recommends that the Community Affairs and Parks Committee forward this section of the budget on to the Committee of the Whole for review. If there are no recommended changes, staff request Council consensus to move this Fund budget forward to the final budget package in November. ATTACHMENTS Proposed Fund 302 budget for 2017-2018 Proposed Capital Improvement Plan budget for Tukwila Village (#90030222) Proposed Capital Improvement Plan budget for TIB Redevelopment/Motels (#91330201) W DEPARTMENT: FUND: Urban Renewal FUND NUMBER: 302 RESPONSIBLE MANAGER: Bob Giberson POSITION: Director Description: The Urban Renewal fund has been established to provide future funding needs to encourage redevelopment in specific areas throughout the City. 2015-2016 Accomplishments Sold property to the King County Library System for the new Tukwila library. Sold parcels C and E to Tukwila Village developer and construction began. Executed site use agreement with Tukwila Village developer. Completed purchase of four motels and smoke shop for the TIB redevelopment project. 2017-2018 Outcome Goals Complete Tukwila Village. Determine future use for the TIB redevelopment site (motels). Determine future use for the former Newporter Motel property. 2017-2018 Indicators of Success Complete construction of phase I and 11 of Tukwila Village. Council decision on development of the redevelopment project. Council decision on development of the Newporter Motel site. LIE Revenue and Expenditure Summary Urban Renewal 10IMi 2014 2015 2016 2016 2017 2018 2016 -17 2017 -18 Actual Actual Projected Budget Budget Budget %Change %Change Operating Rew nue Miscellaneous Re\enue Inwstment Earnings $ 1,216 $ 868 $ 5,198 $ 3,602 $ 3,600 $ 3,600 -0.06% 0.00% Total Miscellaneous Re\enue 1,216 868 5,198 3,602 3,600 3,600 -0.06% 0.00% Total Operating Re\,enue 1,216 868 5,198 3,602 3,600 3,600 -0.06% 0.00% Capital Project Re\enue Sale of Tukwila Village /KC Library - 500,000 - - - - 0.00% 0.00% Sale of Tukwila Village /Phase 1 - 4,325,000 2,230,000 - 48.44% 0.00% Sale of Tukwila Village /Phase 2 - 1,003,000 0.00% 0.00% Sale of Tukwila Village /Phase 3 - - 1,286,000 0.00% 0.00% Sale of Longacres 1,600,000 - - 0.00% 0.00% Sale of Gregor House - 250,000 - 0.00% 0.00% Sale of Newporter - 775,000 0.00% 0.00% Sale of Motels 2,250,000 0.00% 0.00% Gain/Loss on Irnest of Cap. Asset - - 0.00% 0.00% Interfund Loan 1,900,000 - 0.00% 0.00% Bond/Line of Credit 3,850,000 2,250,000 - 0.00% 0.00% Total Capital Project Re\enue 5,750,000 2,750,000 - _ 5,925,000 3,483,000 4,311,000 - 41.22% 23.77% Transfers In - - - - - - 0.00% 0.00% Total Revenue 5,751,216 2,750,868 5,198 5,928,602 3,486,600 4,314,600 - 41.19% 23.75% Capital Projects Tukwila Village 15,571 14,538 25,907 75,000 35,000 11,000 - 53.33% - 68.57% City Facilities 138,024 14,534 117,295 2,250,000 - - 0.00% 0.00% TIB Rededelo ment 3,663,770 1,968,703 680,835 15,000 25,000 25,000 66.67% 0.00% Total Capital Projects 3,817,365 1,997,775 824,037 2,340,000 60,000 36,000 - 97.44% - 40.00% Interfund Load Repayment 1,900,000 - - - - - 0.00% 0.00% Transfer to General Fund 1,000,000 500,000 - 2,075,000 1,800,000 6,050,000 - 13.25% 236.11% Total Expenses 6,717,365 2,497,775 824,037 4,415,000 1,860,000 6,086,000 - 57.87% 227.20% Beginning Fund Balance 1,902,602 936,453 11189,546 1,873,602 370,706 1,997,306 - 80.21% 438.78% Change in Fund Balance (966,149) 253,093 (818,839) 1,513,602 1,626,600 (1,771,400) 7.47% - 208.90% Ending Fund Balance $ 936,453 $ 1,189,546 $ 370,706 $ 3,387,204 $ 1,997,306 $ 225,906 - 41.03% - 88.69% 10IMi Expenditure Detail - Supplies, Services and Other Services include costs associated with the Public Safety Plan, consulting, and engineering. Capital includes the purchase of property and costs associated with urban renewal projects. Urban Renewal i • 2014 2015 2016 2016 2017 2018 Account Number Actual Actual Projected Budget Budget Budget 302.98.518.200.31.00 Supplies - Office & Operating $ 2,833 $ 436 $ $ $ $ 302.98.518.200.31.01 Supplies - Office & Operating 170 - 302.98.559.300.31.00 Supplies - Office & Operating - 3,925 302.98.594.180.31.00 Supplies - Office & Operating - - 118 Total Supplies 3,003 4,361 118 302.98.518.200.41.00 Prof Secs - Feasibility study 155,689 116,249 - 302.98.518.200.43.00 Travel - Mileage, parking 11 - 302.9&518.200A4.00 Advertising - Bid ads 20 302.98.518.200.45.00 Rental - Services 10,832 302.98.518.200.47.00 Public Utilities - Tukwila Village 11,274 302.98.518.200.48.00 R &M - Tukwila Village 1,533 - - 302.98.518.200.49.00 Misc - Tukwila Village 985 3,222 (250) 302.98.559.300.41.00 Prof Svcs - Consulting, engineering - 200,621 - 302.98.559.300.44.00 Advertising - Bid ads 681 302.98.559.300.45.00 Rental - TIB redevelopment 7,583 302.98.559.300.47.00 Public Utilities - TIB redevelopment 2,155 302.98.559.300.47.21 Public Utilities - TIB redevelopment 3,437 302.98.559.300.47.22 Public Utilities - TIB redevelopment 436 302.98.559.300.47.25 Public Utilities - 11B redevelopment 6,471 302.98.559.300.47.26 Public Utilities -11B redevelopment 9,230 302.98.559.300.47.28 Public Utilities - TIB redevelopment 145 302.98.559.300.49.00 Misc - 11B redevelopment 4,890 - - - - 302.98.594.180.41.00 Prof Svcs - Consulting, engineering - 246,813 5,000 25,000 25,000 302.98.594.180.45.00 Rental - Rental of equipment 1,530 - - 302.98.594.180.47.00 Public Utilities - Motels 69 8,500 302.98.594.180.47.21 Electricity - Motels 105 - 302.98.594.180.48.00 R &M - Motels - 1,500 302.98.594. 180.49.00 Misc - Recording fees 692 - 302.98.594.190.47.22 Utilities - Gas 177 302.98.594.190.47.25 Utilities - Water /sewer 545 302.98.594.190.47.26 Utilities - Surface water - - 6,067 Total Services 180,344 355,121 255,748 15,000 25,000 25,000 302.98.594.180.61.00 Capital - Land 1,369,500 - - - 35,000 11,000 302.98.594.590.61.00 Capital - Land - 620,500 - - 302.98.594.180.62.00 Capital - Buildings & Structures 2,200,500 - - 302.00.594.180.62.00 Capital - Buildings & Structures - - 75,000 302.98.594.190.65.00 Capital - Construction projects - 491,789 - 302.98.594.590.62.00 Capital - Buildings & Structures - 1,011,298 - - - - Total Other 3,570,000 1,631,798 491,789 75,000 35,000 11,000 Total Supplies, Services and Other $ 3,753,347 $1,991,280 $ 747,655 $ 90,000 $ 60,000 $ 36,000 i • City of Tukwila CAPITAL IMPROVEMENT PROGRAM for 2017-2022 URBAN RENEWAL 302 Fund CIP "Other After Six Page* PROJECT TITLE 2017 2018 2019 2020 2021 2022 TOTAL Souroes Years 46 Tukwila Village 35 11 0 0 0 0 46 5,544 0 47 TI Redevelopment (Motels) 25 25 0 0 0 0 50 2,250 0 Grand Total 60 36 0 0 0 0 96 7,794 0 ** Denotes other funding sources, grants, or mitigation. Changes from 2015 to 2017 CIP: Changed 302 Fund from Facilities to Urban Renewal 2017 - 2022 Capital Improvement Program 45 1 1 912WO16 i CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: Tukwila Village Project No. 90030222 DESCRIPTION: The City owns 5.76 acres of property at Tukwila International Boulevard and South 144th Street that is intended for a mixed -use development including a library, plaza, police neighborhood resource center, and other amenities. JUSTIFICATION: The new development will help revitalize the neighborhood. STATUS: In 2012, the City signed a Disposition and Development Agreement with Tukwila Village Development Associates. Construction began in 2014 and will be completed in phases with the final phase in 2018. MAINT. IMPACT: COMMENT: Land sales reflect the Library in 2015, Phase 1, Phase 2 and the Gregor House in 2017, with Phase 3 and the Newporter site in 2018. FINANCIAL Through Estimated tin $000's► 2015 2016 2017 2018 2019 2020 2021 2022 BEYOND TOTAL EXPENSES Engineering 1,706 5 1,711 Land (RM) 7,580 45 35 11 7,671 Construction 230 0 230 TOTAL EXPENSES 9,516 50 35 11 1 0 0 0 0 0 9,612 FUND SOURCES Awarded Grant 0 Proposed Grant 0 Land Sale 500 3,483 2,061 6,044 Bonds 5,550 5,550 City Oper. Revenue 3,466 50 (3,448) (2,050) 0 0 0 0 0 (1,982) TOTAL SOURCES 1 9,516 1 50 1 351 11 01 01 01 01 01 9,612 2017 - 2022 Capital Improvement Program 46 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: TIB Redevelopment (Motels) Project No. 91330201 DESCRIPTION: Tukwila International Blvd (TIB) Redevelopment Project is for the acquisition and disposition of properties within and adjacent to the City's Urban Renewal Area. JUSTIFICATION: Improve the neighborhood's safety by eliminating the high amounts of crime associated with the motel properties. Traveler's Choice Motel, Boulevard Motel, Great Bear Motel and the Spruce Motel. STATUS: City has completed the purchase and demolition of the four motels and smoke shop. MAINT. IMPACT: Upkeep of property until development. COMMENT: Debt service costs are not shown (see Attachment A). FINANCIAL Through Estimated fin UnWal ME 2019 2017 2018 WHO 2n211 2n21 2022 RFYONn TnTAI EXPENSES Engineering 353 105 25 25 508 Land (RIV4) 5,205 5,205 Const. Mgmt. 2 100 102 Construction 710 710 TOTAL EXPENSES 5,560 1 916 25 261 0 0 01 0 0 6,526 FUND SOURCES Awarded Grant 0 Land Sale 2,250 2,250 Bonds 6,100 6,100 City Oper. Revenue (540) 915 25 (2,225) 0 0 0 0 0 (1,825) TOTAL SOURCES 5,5601 915 1 251 25 01 01 01 01 01 5,525 2017 - 2022 Capital Improvement Program 47 ti$ Community Affairs and Parks Committee Minutes ........................................ ............................... ........................October 10, 2016 D. Contract: Building Inspection Services Staff is seeking Council approval of a contract with 41-eaf, Inc. in an amount not to exceed $200,000.00 for the continued provision of building inspection services through December 31, 2018. The Building Division has continued to have trouble recruiting qualified inspectors and this contract will allow the City to maintain a 24 -hour inspection turnaround time. There are many highly technical commercial projects underway such as Tukwila Village, School District Projects, and Washington Place. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 17, 2016 REGULAR CONSENT AGENDA. E. Contract: Structural Plan Review Services Staff is seeking Council approval of a contract with Reid Middleton, Inc. in an amount not to exceed $200,000.00 for the continued provision of structural plan review services through December 32, 2018. Revenues from permit fees offset the cost of the contracted review services. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 17, 2016 REGULAR CONSENT AGENDA. F. Proposed 2017 -2018 Biennial Budget Pursuant to the process requested by Council earlier this year, sections of the proposed 2017- 2018 budget are being presented to standing Council Committees prior to moving forward through the full Council review process. Staff presented proposed 2017 -2018 budgets for the following departments and funds: Parks and Recreation Department The Parks and Recreation Department Budget proposes an increase of 10.83% for 2017, primarily due to transfers from other departments, revenue - backed programs and previously approved program changes. The proposal also includes a.25 FTE and $100,000 for replacement of the existing recreation management software that has become obsolete. Urban Renewal (302 Fund) Fund 302 was previously known as the "Facilities Replacement Fund" but is being renamed to Urban Renewal to accurately reflect its use for tracking significant property transactions such as Tukwila Village and the TIB motel redevelopment. General Governmental Improvement Fund (303 Fund) Fund 303 is used for improvements, additions, or other miscellaneous minor capital projects. No specific projects are currently planned and there are no proposed changes. Fire Improvement Fund (304 Fund) The fund provides fire department capital improvements and apparatus through Fire Impact Fees. It does not include the mitigation fees from the Tukwila South agreement, which are included in the new Public Safety Plan fund. Chair Quinn asked for a list showing revenues and expenditures from fire impact fees. COMMITTEE DISCUSSION ONLY. FORWARD TO OCTOBER 24, 2016 COMMITTEE OF THE WHOLE. 91