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HomeMy WebLinkAboutCOW 2023-06-26 Item 5A - Resolution - South King Housing and Homelessness Partners 2024 Work Plan and Operating BudgetITEM INFORMATION STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 6/26/23 AGENDA ITEM TITLE Resolution adopting 2024 South King Housing and Homeless Partners Work Plan and Operating Budget CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 6/26/23 Mtg Date Mtg Date 7/10/23 Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW SPONSOR’S SUMMARY In accordance with the Interlocal Agreement, the annual SKHHP work plan and budget must be approved by the legislative body of each member jurisdiction in addition to the SKHHP Executive Board. REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev. LTAC Arts Comm. Parks Comm. Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 6/26/23 7/10/23 MTG. DATE ATTACHMENTS 6/26/23 Informational Memo dated 6/20/23 Draft Resolution 7/10/23 COUNCIL AGENDA SYNOPSIS ----------------------------------Initials --------------------------------- ITEM NO. Meeting Date Prepared by Mayor’s review Council review 6/26/23 LH 7/10/23 LH PowerPoint 5.A. 11 12 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Laurel Humphrey, Legislative Analyst Claire Vanessa Goodwin, Executive Manager, SKHHP DATE: June 20, 2024 SUBJECT: Resolution adopting the 2024 South King Housing & Homelessness Partners Work Plan and Operating Budget ISSUE In accordance with the Interlocal Agreement, the annual SKHHP work plan and budget must be approved by the legislative body of each member jurisdiction in addition to the SKHHP Executive Board. BACKGROUND Every year, an annual work plan and budget is developed in collaboration with the SKHHP Executive Board, Advisory Board, and staff work group to guide the work of SKHHP staff in the coming year. Pursuant to the SKHHP Interlocal Agreement, each participating jurisdiction must approve SKHHP’s annual budget and work plan. The 2024 draft work plan was developed through surveys to the Executive and Advisory Boards on their priorities in February and an interactive in-person workshop with the Executive Board in March. The draft 2024 work plan was then reviewed with the SKHHP Advisory Board on April 6, 2023 and the Executive Board at their regularly scheduled meeting on April 19, 2023. Feedback was incorporated. A revised draft was shared with the Executive Board to review with member Councils as needed. The 2024 work plan includes four goals with corresponding objectives and action items. Each action item is prioritized as higher, medium, or lower priority. Indicators are included to measure progress on the goals. The four goals include the following: 1. Fund the expansion and preservation of affordable housing 2. Develop policies that expand and preserve affordable housing 3. Serve as advocate for South King County 4. Manage operations and administration The 2024 SKHHP operating budget totals $419,158, supporting two full-time staff, and includes itemization of all categories of budgeted expenses and itemization of each jurisdiction’s contribution, including in-kind services. Operating revenues originate from SKHHP member contributions. Contributions are proposed to increase 15% annually for each member city through 2026 as approved by the Executive Board in July 2021 to work towards a balanced budget. These projected numbers assume no additional staff would be added. Member contributions are based on population size accordingly: 13 INFORMATIONAL MEMO Page 2 Population tier 2023 Contribution 2024 Contribution 2025 Contribution 2026 Contribution <10,000 $5,290 $6,084 $6,996 $8,045 10,001 – 35,000 $9,919 $11,407 $13,118 $15,085 35,001 – 65,000 $19,838 $22,814 $26,236 $30,172 65,000 – 100,000 $34,385 $39,543 $45,474 $52,295 100,000+ $44,965 $51,710 $59,466 $68,386 Expenses impacted by inflation are proposed to increase by 5% in 2024, including salaries and benefits. SKHHP continues to spend down the fund balance from cost-savings in 2019 and 2020 to mitigate any additional increases to member contributions. RECOMMENDATION Staff recommends approval of the resolution adopting the 2024 SKHHP work plan and budget due to the following: 1. The 2024 SKHHP work plan and budget is consistent with the Interlocal Agreement between Auburn, Burien, Covington, Des Moines, Federal Way, Kent, Maple Valley, Normandy Park, Renton, Tukwila, and King County. 2. The 2024 SKHHP work plan and budget incorporates the feedback and priorities of the SKHHP Executive Board made up of representatives of each participating jurisdiction and the Advisory Board made up of South King County community members, representatives of housing organizations, and affordable housing subject matter experts. ATTACHMENTS 1. Resolution 14 CC:\Legislative Development\SKHHP 2024 Work Plan and Operating Budget 6-15-23 Laurel Humphrey: Review by Andy Youn Page 1 of 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS’ 2024 WORK PLAN AND 2024 OPERATING BUDGET. WHEREAS, on February 21, 2019, the City of Tukwila entered into an Interlocal Agreement (ILA) with 8 other south King County cities and King County to form the South King Housing and Homelessness Partners (SKHHP); and WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must approve an annual work plan each year to guide the work of SKHHP staff; and WHEREAS, pursuant to the Interlocal Agreement, each participating jurisdiction must approve SKHHP’s annual budget that includes an itemization of all categories of budgeted expenses and itemization of each Party’s contribution, including in-kind services; and WHEREAS, the purpose of the annual work plan and budget is to provide management and budget guidance, and to implement the overarching SKHHP goals to work together and share resources to increase the available options for south King County residents to access affordable housing and to preserve the existing affordable housing stock; and WHEREAS, on May 19, 2023, the SKHHP Executive Board adopted Resolution No. 2023-01 adopting the 2024 SKHHP Work Plan and 2024 SKHHP Operating Budget effective upon approval by the legislative body of each participating jurisdiction; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council adopts the 2024 South King Housing and Homelessness Partners Work Plan and 2024 Operating Budget, hereby incorporated by reference as “Attachment A.” 15 CC:\Legislative Development\SKHHP 2024 Work Plan and Operating Budget 6-15-23 Laurel Humphrey: Review by Andy Youn Page 2 of 2 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this ________ day of ____________________, 2023. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC Cynthia Delostrinos Johnson City Clerk Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney Attachment A: South King Housing and Homelessness Partners Resolution No. 2023- 01, dated May 22, 2023, with Attachment A (SKHHP 2024 Work Plan) and Attachment B (2024 SKHHP Operating Budget) 16 ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 1 of 7 RESOLUTION NO. 2023-01 A RESOLUTION OF THE EXECUTIVE BOARD OF THE SOUTH KING HOUSING AND HOMELESSNESS PARTNERS (SKHHP), ADOPTING THE 2024 SKHHP WORK PLAN AND OPERATING BUDGET WHEREAS, pursuant to the Interlocal Agreement, the SKHHP Executive Board approves an annual work plan and budget each year to guide the work of SKHHP staff; and WHEREAS, pursuant to the Interlocal Agreement, the annual budget includes an itemization of all categories of budgeted expenses and itemization of each Party’s contribution, including in-kind services; and WHEREAS, upon adoption by the Executive Board, the annual work plan and budget will be transmitted to each participating jurisdiction for approval by their legislative body; and WHEREAS, the budget will not become effective until approved by the legislative body of each jurisdiction and adopted by the SKHHP Executive Board; and WHEREAS, if a party does not approve the work plan or budget in a timely manner, the Executive Board may adopt the budget and work plan with a two-thirds majority vote; and WHEREAS, the purpose of the annual work plan and budget is to provide management and budget guidance, and implement the overarching SKHHP mission to work together and share resources to increase the available options for South King County residents to access affordable housing and to preserve the existing affordable housing stock; and WHEREAS, the 2024 work plan includes four goals with corresponding action items that further SKHHP’s mission. NOW, THEREFORE, THE EXECUTIVE BOARD RESOLVES as follows: Section 1. The Executive Board adopts the 2024 SKHHP Work Plan in Attachment A. Section 2. The Executive Board adopts the 2024 SKHHP Operating Budget in Attachment B. Section 3. Each party’s contribution to SKHHP’s operating budget will be transmitted on an annual basis during the first quarter of the calendar year. Section 4. This Resolution will take effect and be in full force upon approval by the legislative body of each participating jurisdiction. Dated and Signed this __22nd_day of _____May, 2023 _________________________ NANCY BACKUS, CHAIR, SOUTH KING HOUSING AND HOMELESSNESS PARTNERS 17 ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 2 of 7 RESOLUTION 2023-01 – ATTACHMENT A SKHHP 2024 WORK PLAN PURPOSE Establish a 2024 SKHHP work plan and budget that is guided by Executive Board priorities, is consistent with the SKHHP Interlocal Agreement, and furthers SKHHP’s mission. BACKGROUND Established by an interlocal agreement, SKHHP jurisdictions work together and share resources to increase options for South King County residents to access affordable housing and preserve existing affordable housing. The 2024 SKHHP work plan builds on work done in previous years and was developed in collaboration with the Executive Board, Advisory Board, and staff work group. The work plan is organized into four goals with corresponding objectives and action items. Each action is identified by priority as follows: • Higher – Identified as higher priority by Executive Board or is necessary to carry out the Interlocal Agreements • Medium – Identified as mid-level priority • Lower – Identified as lower priority Quarterly budget and progress reports on the status of the work plan elements will be submitted to the SKHHP Executive Board and the legislative body of each member jurisdiction as follows: Quarter 1: May | Quarter 2: August | Quarter 3: November | Quarter 4: February In accordance with the Interlocal Agreement, the 2024 SKHHP work plan and budget will be approved by the SKHHP Executive Board and the legislative body of each member jurisdiction. SKHHP MISSION South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. GOALS & OBJECTIVES Number Goal Objective 1 Fund the expansion and preservation of affordable housing. Coordinate public resources to attract greater private and public investment for affordable housing in South King County. 2 Develop policies to expand and preserve affordable housing. Share technical information and resources to promote sound housing policy. 3 Serve as advocate for South King County. Provide a unified voice to advocate for South King County needs at a local, regional, and state level. 4 Manage operations and administration. Sustain operational commitments and Interlocal Agreement requirements. 18 ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 3 of 7 Goal 1 Fund the expansion and preservation of affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 1. Develop a long-term funding strategy for the Housing Capital Fund and facilitate conversations with member jurisdictions to identify and explore dedicated sources of revenue for affordable housing at the local and regional level. ••• 2. Pool resources from member jurisdictions for the Housing Capital Fund, including SHB 1406 and HB 1590 funds. ••• 3. Manage 2023 Housing Capital Fund funding round including facilitating approval from participating Councils and preparing contract documents. ••• 4. Manage 2024 Housing Capital Fund funding round including adopting annual guidelines, updating application materials, soliciting proposals, and facilitating project selection. ••• 5. Encourage investment by private investors, lenders, and philanthropies. ••• 6. Work with member cities and project sponsors to start developing a pipeline of projects to be funded over the next five years. •• Indicators o Number of housing units or number of projects funded with financial support from SKHHP o Number of housing units preserved with financial support from SKHHP o Total dollar amount pooled by member jurisdictions for Housing Capital Fund o Total dollar amount from new sources of revenue added to the Housing Capital Fund o Geographic diversity of applications received for annual Housing Capital Fund funding round 19 ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 4 of 7 Goal 2 Develop policies to expand and preserve affordable housing. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 7. Develop subregional housing preservation strategies and facilitate implementation. ••• 8. Facilitate technical assistance and updates to the Affordable Housing Inventory Dashboard. ••• 9. Build relationships with developers to learn from their perspective the ways to encourage housing development, especially affordable housing. •• 10. Continue to refine and update housing policy matrix. • 11. Convene land use planners to increase coordination and collaboration on housing policy and planning. • 12. Develop SKHHP Executive Board briefings on key housing and homelessness topics, especially as they relate to the goals of the work plan. • Indicators o Number of preservation policies explored with members of the Executive Board o Successful update of data and deployment of the Affordable Housing Inventory Dashboard o Number of relationships built with developers o Number of Executive Board briefings on key housing and homelessness topics 20 ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 5 of 7 Goal 3 Serve as advocate for South King County. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 13. Coordinate with the Advisory Board in collaboration with housing organizations and stakeholder groups to provide education and engagement opportunities for elected officials and community members. •• 14. Work collaboratively with public funders at the state and local levels to promote shared affordable housing goals and equitable geographic distribution of resources. •• 15. Produce public-facing communications content that highlights South King County through social media and newsletters. • 16. Represent SKHHP at relevant local and regional meetings and forums that help advance SKHHP’s mission and provide a voice for increasing access to safe, healthy, and affordable housing in South King County. • Indicators o Number of events or engagement opportunities Advisory Board members organize or support o Number of communications published o Number of meetings, forums, or events attended that advance SKHHP's mission 21 ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 6 of 7 Goal 4 Manage operations and administration. Actions Priority of Actions ••• = Higher •• = Medium • = Lower 17. Develop annual work plan and budget. ••• 18. Generate and distribute quarterly progress reports to SKHHP Executive Board and member jurisdictions. ••• 19. Work with administering agency to maintain records and produce regular financial reports for the SKHHP Housing Capital Fund and SKHHP Operating Account. ••• 20. Organize and host monthly Executive and Advisory Board public meetings. ••• 21. Manage the Affordable Housing Inventory Dashboard contract. ••• 22. Maintain and update the SKHHP website. •• 23. Advance work on SKHHP Foundation efforts to establish logistics, administration, and pursue federal nonprofit status. •• Indicators o Work plan and budget adopted o Quarterly progress reports prepared and presented to Executive Board o Financial reports and public records maintained o Commitments of the Affordable Housing Inventory Dashboard contract fulfilled o Website maintained o Application submitted for SKHHP Foundation 501c3 status 22 ------------------------------- Resolution No. 2023-01 May 19, 2023 Page 7 of 7 RESOLUTION 2023-01 – ATTACHMENT B 2024 SKHHP Operating Budget Estimated beginning fund balance - January 1, 2024 $ 205,736 Estimated ending fund balance -December 31, 2024 $ 144,877 REVENUES Auburn $ 39,543 Burien $ 22,814 Covington $ 11,407 Des Moines $ 11,407 Federal Way $ 51,710 Kent $ 51,710 Maple Valley $ 11,407 Normandy Park $ 6,084 Renton $ 51,710 Tukwila $ 11,407 King County* $ 51,710 Additional King County* $ 23,290 Interest earnings $ 2,100 Office space (in-kind donation) $ 12,000 TOTAL REVENUES $ 358,299 Spend down balance $ 60,859 TOTAL $ 419,158 EXPENSES Salaries and benefits $ 305,344 Interfund IT $ 31,500 Advisory Board compensation $ 14,400 Office space (in-kind donation) $ 12,000 Other professional services/Misc. $ 6,400 Travel $ 5,250 Professional development $ 5,250 Supplies $ 2,000 Subtotal $ 382,144 Administering agency - 10% admin fee** $ 37,014 TOTAL $ 419,158 *King County contribution based on the population of unincorporated King County is shown as increasing at the same rate as other partner jurisdictions and the additional allocation decreasing to maintain a total contribution of $75,000 per year. **10% administrative fee is calculated as a percentage of operating costs which excludes in-kind donations and carry-forwards. 23 24 South King Housing and Homelessness Partners (SKHHP) 2024 Work Plan and Budget CLAIRE GOODWIN SKHHP EXECUTIVE MANAGER 25 About SKHHP 2019: SKHHP was formed via an Interlocal Agreement Eleven member jurisdictions include: ▫ Auburn ▫ Federal Way ▫ Renton▫ Burien ▫ Kent ▫ Tukwila▫ Covington ▫ Maple Valley ▫ King County▫ Des Moines ▫ Normandy Park Mission: •South King County jurisdictions working together and sharing resources to create a coordinated, comprehensive, and equitable approach to increasing housing stability, reducing homelessness, and producing and preserving quality affordable housing in South King County. Interlocal agreement requires City Council adoption of annual work plan and budget June 26, 2023 South King Housing and Homelessness Partners 2024 Work Plan and Budget 226 Work Plan and Budget Development Process Executive & Advisory Board Surveys & Workshop Draft review by Staff Work Group & Advisory Board Draft review at April Executive Board meeting Board Members share with member Councils Final draft adopted May 19 at Executive Board meeting Council adoption We are here June 26, 2023 South King Housing and Homelessness Partners 2024 Work Plan and Budget 327 2024 Work Plan Goals 1.Fund the expansion and preservation of affordable housing. 2.Develop policies to expand and preserve affordable housing. 3.Serve as advocate for South King County. 4.Manage operations and administration. 428 Total operating budget: $419,159 73% funds salary and benefits (2 FTEs) No new expenditures proposed 5% increase over previous year in expenses impacted by inflation Salaries, professional services, travel Operating revenues come from member jurisdiction annual contributions and based on population tiers Executive Board adopted policy in July 2021 15% increase in member contributions each year through 2026 Continuing to spend down cost savings from first two years to balance additional contribution increases June 26, 2023 South King Housing and Homelessness Partners 2024 Work Plan and Budget 2024 Operating Budget 529 Member Jurisdiction Population Tier 2023 Contribution 2024 Contribution 2025 Contribution 2026 Contribution <10,000 $5,290 $6,084 $6,996 $8,045 10,001 – 35,000 $9,919 $11,407 $13,118 $15,085 35,001 – 65,000 $19,838 $22,814 $26,236 $30,172 65,000 – 100,000 $34,385 $39,543 $45,474 $52,295 100,000+$44,965 $51,710 $59,466 $68,386 South King Housing and Homelessness Partners 2024 Work Plan and Budget Operating Contributions by Population June 26, 2023 630 SKHHP Member Jurisdictions Population (OFM 2018 estimate) Population (OFM 2021 estimate) Population (OFM 2022 estimate) Population (OFM 2023 estimate) Auburn 80,615 Total: 83,950 KC: 73,901 Total: 88,750 KC: 78,690 Data not published until June 30, 2023 Burien 51,850 53,290 52,490 Covington 20,080 20,890 21,200 Des Moines 31,340 32,820 33,160 Federal Way 97,440 99,590 101,800 Kent 128,900 132,400 137,900 Maple Valley 28,920 Normandy Park 6,700 6,740 6,790 Renton 104,100 106,500 107,500 Tukwila 19,800 21,970 22,620 King County (unincorporated)111,000*248,160 *Represents unincorporated South King County Population by City and Year June 26, 2023 South King Housing and Homelessness Partners 2024 Work Plan and Budget 731 2023 2024 2025 2026 Estimated beginning fund balance $ 283,152 $ 205,736 $ 144,877 $ 108,135 REVENUES Auburn $ 34,385 $ 39,543 $ 45,474 $ 52,295 Burien $ 19,838 $ 22,814 $ 26,236 $ 30,171 Covington $ 9,919 $ 11,407 $ 13,118 $ 15,086 Des Moines $ 9,919 $ 11,407 $ 13,118 $ 15,086 Federal Way $ 44,965 $ 51,710 $ 59,466 $ 68,386 Kent $ 44,965 $ 51,710 $ 59,466 $ 68,386 Maple Valley $ 9,919 $ 11,407 $ 13,118 $ 15,086 Normandy Park $ 5,290 $ 6,084 $ 6,996 $ 8,045 Renton $ 44,965 $ 51,710 $ 59,466 $ 68,386 Tukwila $ 9,919 $ 11,407 $ 13,118 $ 15,086 King County*$ 44,965 $ 51,710 $ 59,466 $ 68,386 Additional King County*$ 30,035 $ 23,290 $ 15,534 $ 6,614 Interest earnings $ 2,100 Office space (in-kind donation)$ 12,000 $ 12,000 $ 12,000 $ 12,000 TOTAL REVENUES $ 321,084 $ 358,299 $ 396,576 $ 443,013 Spend down balance $ 77,416 $ 60,859 $ 36,742 TOTAL EXPENSES $ 397,800 $ 419,158 $ 433,318 Projected Budget 2023-2026 June 26, 2023 South King Housing and Homelessness Partners 2024 Work Plan and Budget 832 Thank you CLAIRE GOODWIN SKHHP EXECUTIVE MANAGER CVGOODWIN@SKHHP.ORG 33