HomeMy WebLinkAboutSpecial 2018-06-11 Powerpoint Shown at Meeting - Financing the Public Safety PlanFinancing the
Public Safety Plan
Council Workshop
June 11, 2018
What we will cover this evening
• Process
• Tools for financing the gap
• Consensus on tools that make up the framework
• Staff recommendation
• Committee recommendation
• Council discussion and consensus on recommendation
Process
• Began on February 6, 2018
• Committee and staff consensus on process
• Collaborative approach; staff responded to Committee requests,
incorporated feedback as it developed recommendations
• Committee reviewed preliminary six-year forecast and preliminary Q1
sales tax revenue report to fully understand impacts
• Staff developed multiple scenarios for review
• Consensus among Committee and staff that whatever
recommendation moves forward, this is a framework and at each
budget cycle it will be refined based on current data
Tools
• Voter -approved bonds
• LTGO (councilmanic) bonds
• Fire impact fees
• Land sales and other one-time
funds
• Ongoing REET 1
• New revenue
• General Fund operations
• Capital Improvement Program
(CIP) prioritization
• Project schedules, delay and
ramifications
• Reduction in apparatus and
equipment funding
• Financing apparatus and
equipment
Consensus on tools used in the framework
• LTGO (councilmanic) bonds
• Fire impact fees
• Land sales and other one-time
funds
• Ongoing REET 1
• General Fund operations
• Reduction in apparatus and
equipment funding
• Financing apparatus and
equipment
Staff recommendation — E-30
• Build three fire stations and
justice center
• Dedicate $30M to PW for land
purchase, building upgrade and
master planning
• 30 -year bonds provide most
flexibility for general fund
• Impact to the General Fund
limited to using maturing debt
1.
MILTGO Repayment Method
Option
E-30
FS 51 FS 52 FS 54 A&E JC PW
LTGO
Bond
Range of
Annual Cash
Contribution
Capacity
from
maturing
debt
Total
GF
Cont.
Total
Debt
Service
83K
$12M $17M $14M $15M $68M $30M $55M in n 2017
$830K - $51.9M $70.6M
$2M per yr
Committee recommendation — D -20(f)
• Build two fire stations (51. & 52)
and justice center
• Dedicate $30M to PW for land
purchase, building upgrade and
master planning
• 20 -year bonds to not bind future
councils
• Least overall impact to the
General Fund
LTGO Repayment Method
Option
D-20
(A&E
Financed)
FS 51 FS 52 FS 54 A&E JC PW
LTGO
Bond
Range of
Annual Cash
Contribution
Capacity
from
maturing
debt
Total
GF
Cont.
Total
Debt
Service
$500K - $1M $SOOK -
$12M $17M $0 $15M $68M $30M $40M 2026-2032 $1.2M per $21.6M $37 M
yr
Council discussion and consensus
on recommendation
Staff at the table and in the audience happy to answer questions
Annual Sales Tax Revenue
Data Source: Municipal Research and Services Center
19
0
c
0
18
17
16
15
14
13
12
Tukwila Annual Sales Tax Revenue, 2010-2017
Sum of 2010 Sum of 2011
Sum of 2012 Sum of 2013
Sum of 2014 Sum of 2015
Tukwila, $18.13
Sum of 2016 Sum of 2017