Loading...
HomeMy WebLinkAboutCSS 2025-12-08 Item 1D - Contract Agreement - 2026-2031 King County Parks Property Tax LevyThomas cLeod, ayor Parks Recreation Department - Pete Mayer, Director INFORMATIONAL MEMORANDUM TO: Thomas McLeod, City of Tukwila Mayor Community Servies & Safety Committee FROM: Pete Mayer, Parks & Recreation Director BY: David Rosen, Parks & Recreation Analyst DATE: November 25, 2025 SUBJECT: 2026 - 2031 King County Parks Levy Property Tax Levy Agreement ISSUE The King County Parks Levy has been renewed by King County voters. In order for the City of Tukwila to receive its allotted passthrough funding from the County, it must execute a Property Tax Levy Agreement that, per city policy, must be approved for mayoral signature by the City Council. BACKGROUND The King County Parks Levy is a six -year property tax levy that has been approved/renewed by voters since the original levy was passed in 2007. The 2026 — 2031 Levy represents the fourth six -year levy to be approved by King County voters (2008 — 2013, 2014 — 2019, 2020 — 2025, and 2026 — 2031) having passed with 73% approval in the August 2025 election. The levy's purpose has generally remained the same across its lifetime, to support maintenance, operations, stewardship, and capital projects across King County parks, trails, and open space facilities and provide pass -through and competitive grants funding to various entities and organizations across the county for their parks and recreation system operations and capital projects. DISCUSSION Passthrough funding uses are allowed per Section 4 of the proposed Property Tax Levy Agreement, which states "The CITY shall only use the transferred CITY'S Share for its CITY Projects." The following definitions found in Section 1 of the proposed Property Tax Levy Agreement provide additional context to this language: ❖ "CITY Projects" shall mean CITY Parks System operations and capital improvements projects... ❖ "CITY Parks System" shall mean any building or other structure related to parks or recreation, parks, trails, open space, such as natural areas and resource or ecological lands and other parks or recreation property owned or otherwise under the jurisdiction of the CITY. Accordingly, Parks Levy passthrough funds are used for a variety of needs across the Tukwila parks, trails, and open space system. Currently, the county has informed the city that its allotted share of passthrough funding provided via the 2026-2031 Parks Levy totals $2,783,361, or approximately $463,893.50 per fiscal year. This funding will be distributed to the city twice a year, generally in the months of May and November. Tukwila City Hall • 6200 South center Boulevard • Tukwila, A 9 88 • 208 3318©O • Website: TukwilaWA.gov 61 Community Services & Safety Committee Page 2 FINANCIAL IMPACT Revenues from the King County Parks Levy passthrough allotment will be tracked within the newly formed King County Parks Levy Special Revenue Fund (Fund 102). This fund was formed via approval of the 2025-2026 Mid -Biennium Budget Amendment. Approval of this Property Tax Levy Agreement does not create any net General Fund inflows or outflows. RECOMMENDATION City staff recommend the Community Services and Safety Committee forward the proposed property tax levy agreement to the December 15th Regular Meeting Consent Agenda for final approval. ATTACHMENTS A — Proposed Parks Property Tax Levy Agreement between King County and City of Tukwila B — King County Parks Levy FAQs Phone: 206-433-i800 • Email: Mayor T kwil WA.gov • Website. Tukwila WA.gov 62 PARKS PROPERTY TAX LEVY AGREEMENT between KING COUNTY & CITY OF TUKWILA This Parks Property Tax Levy Agreement ("Agreement") is made and entered by and between KING COUNTY, a political subdivision of the state of Washington (the "County") and the City of Tukwila, a State of Washington municipal corporation ("CITY"). The County and the City are singularly referred to as a "Party" and collectively referred to as the "Parties". RECITALS A. The County owns and operates a system of regional and local parks and trails that consists of thirty-two thousand (32,000) acres of parklands and more than one hundred eighty-five (185) miles of regional trails. In addition, the County provides regional trails, regional recreational facilities, regional natural areas, regional parks, and local parks in unincorporated areas. B. Since 2003, on recommendation of the Metropolitan Parks Task Force and direction from the County Executive and County Council, the County's Parks and Recreation Division has focused on managing a system of regional parks, open spaces and trails and a limited set of regional active recreation assets. Consistent with its role as a regional and local rural service provider under Countywide Planning Policies and the State Growth Management Act, the County has divested itself of local parks and facilities in urban, unincorporated areas as these areas incorporate or annex to cities. C. On April 29, 2025, the King County Council adopted Ordinance 19922 which called for a special election in accordance with RCW 29A.04.321 to authorize a property tax levy in excess of the levy limitation contained in 84.55 RCW for a period of six (6) years for specified park purposes. D. On August 5, 2025, King County voters approved Proposition No. 1 Parks Levy that authorized an additional six year property tax levy at a rate of $0.2329 per one thousand dollars of assessed valuation in the first year and limiting annual levy increases by the King County inflation plus population index published by the King County office of economic and financial analysis, or the chapter 84.55 RCW limitation, whichever is greater in years two through six for the purpose of maintaining and operating King County's open space system; improving parks, recreation, access, and mobility in King County by acquiring lands and continuing to develop and support parks, recreation facilities, and regional trails; improving parks and trails in and acquiring lands by metropolitan parks districts, towns and cities in King County; funding environmental education, maintenance and conservation programs at the Woodland Park Zoo; funding environmental education, maintenance and conservation programs at the Seattle Aquarium; funding development, maintenance, and programming for Seattle's Waterfront park; funding environmental and climate stewardship and education at Pacific Science Center; funding a capital project at Memorial Stadium; and funding capital improvements at public pools, for all King County residents. 63 King County Parks Property Tax Levy 2026-2031 Agreement NOW, THEREFORE, in consideration of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: AGREEMENT 1. Definitions. As used in this Agreement, the following terms shall have the following meanings: A. "Annual Report" shall mean the annual report prepared by the CITY and provided to the County annually by May 31 st beginning in 2027 setting forth a summary of CITY Projects for the preceding year, along with a complete financial accounting for the use of the CITY'S Share, along with a listing of all capital investments made at the CITY funded in whole or in part by County Levy Proceeds, and for the 2026 annual report the CITY shall identify the dollar amount of the CITY's Existing Funds. B. "CITY" shall mean the City of Tukwila, State of Washington, and all of its boards, commissions, departments, agencies and other subdivisions. C. "CITY Parks System" shall mean any building or other structure related to parks or recreation, parks, trails, open space, such as natural areas and resource or ecological lands and other parks or recreation property owned or otherwise under the jurisdiction of the CITY. D. "City and Park District Proceeds" shall mean ten percent (10%) of the total County Levy Proceeds collected by King County, net the amounts specified and allocated in Ordinance 19922 Sections 5A-I, and any interest earnings on these funds. E. "CITY Projects" shall mean CITY Parks System operations and capital improvement projects consistent with Ordinance 19922. F. "CITY'S Share" shall mean the CITY's proportionate share of the City and Park District Proceeds as authorized by Ordinance 19922 Section 5C and 5I, subject to County Council appropriation. G. "County" shall mean King County, State of Washington, and all of its boards, commissions, departments, agencies and other subdivisions. H. "County Council" shall mean the County Council of King County, State of Washington. "County Levy" means the annual King County property tax levy for park purposes imposed by the King County Council and authorized by Proposition No. 1 Parks Levy that was approved by the County voters on August 5, 2025 and replaced a levy expiring at the end of 2025. Page 2 of 7 64 King County Parks Property Tax Levy 2026-2031 Agreement J. "County Levy Proceeds" shall mean the principal amount of the County Levy collected by the County. K. "Executive" shall mean the King County Executive or their functional successor. L. "Existing funds" shall have the meaning, as defined by RCW 84.55.050. 2. Teiui of Agreement. The term of this Agreement (the "Term") shall be for a period commencing upon signature by both parties (the "Commencement Date"), and expiring on December 31, 2031 (the "Termination Date"). 3. Receipt of County Levy Proceeds. A. General Distribution. Each year the County shall distribute the CITY's Share to the CITY as authorized by Ordinance 19922, subject to County Council appropriation. B. Receipt and Distribution of Levy Proceeds. 1. Payment Schedule. Beginning in 2026 and through 2031, the County shall transfer the CITY's Share to the CITY on a semi-annual basis, generally in the months of May and November. The annual amounts transferred shall never exceed the CITY's proportionate share of the City and Park District Proceeds actually collected and appropriated by King County. 2. Administrative Fee. The Parties agree that the County has authority to deduct a portion from City and Park District Proceeds for eligible expenditures related to the administration of the distribution of County Levy Proceeds, consistent with Ordinance 19922. 4. Use of County Levy Proceeds. The CITY shall only use the transferred CITY'S Share for its CITY Projects. On or before May 31' of each year throughout the Term of this Agreement, the CITY shall provide the County with a copy of the Annual Report and provide any further documentation showing that the CITY'S Share was expended on CITY Projects. The CITY shall maintain financial records to account separately for the CITY'S Share. 5. Representations and Warranties. The CITY represents and warrants that all of the CITY'S Share received by the CITY shall be used only for specific CITY Projects as defined in this Agreement. The CITY represents and warrants that all CITY Projects shall be consistent with the requirements in King County Ordinance 19922. The CITY represents and warrants that in addition to the CITY'S Share, the CITY shall annually expend on CITY Projects an amount equal to the CITY's Existing Funds. 6. Title to Improvements. All appurtenances, fixtures, improvements, equipment, additions and other property attached to or installed in the CITY Park System during the Term shall Page 3 of 7 65 Last updated: November 24, 2025 What can towns and cities use levy funds towards in the 2026-2031 King County Parks Levy? Direct pass -through levy funds distributed to towns and cities from the 2026-2031 King County Parks Levy can be used for parks system operations and capital improvement projects within a town or city's parks system. The "parks system" refers to any building or other structure related to parks or recreation, park areas, trails, open space, natural areas, resource or ecological lands, and other parks or recreation property owned or otherwise under the jurisdiction of the town or city. The criteria for eligible expenditures is broad and flexible in order for towns/cities to best serve their local communities, meet the specific needs of their constituents, and improve natural areas unique to their parks systems. Expenditures that would traditionally fall under a park maintenance/operations budget or a dedicated budget for a parks capital improvement program are considered good candidates for levy -funded projects and activities. Other types of expenditures which support parks system operations and capital improvement projects could also be considered eligible as long as the expenses support parks -related projects/activities. This includes but is not limited to salary/benefits for personnel, vehicles for parks operations, and equipment for parks employees. For questions about eligible expenditures please contact Grayson Court, Parks Levy Manager: gcourt@kingcounty.gov, 206-477-9229 (work phone), 206-247-9324 (cell phone). By signing the Parks Property Tax Levy Agreement towns and cities agree they are financially responsible for the lawful use of the levy funds distributed under the agreement. Can our town/city wait to use our distribution of levy funds until the following year? Yes. Towns and cities can carry forward unused levy funds from the 2026-2031 King County Parks Levy to the next year to accumulate funds for future planned projects and/or activities. If unused funds are being carried over to a future year the town or city must describe the specific project (such as project name, high-level details, etc.) as well as expected completion date(s). What are the reporting requirements for towns and cities? The annual report is prepared by the town or city and provided to King County Parks by May 315t of each year setting forth a summary of projects from the preceding year along with a complete financial accounting for the use of the levy funds from the 2026-2031 King County Parks Levy. This includes a listing of all capital investments made in the town or city funded in whole or in part by levy proceeds. In addition, towns and cities must provide any further documentation that shows that the levy funds were expended on projects and/or activities as described in the Parks Property Tax Levy Agreement. Page 1 of 4 66 Are there signage requirements for using parks levy funds? Yes. For each completed capital project funded with county levy proceeds, the town or city shall install a permanent sign at a common access point of the park facility's premises that shall include the following language: "This project was funded (or as applicable, funded in part) with proceeds from the voter - approved King County Parks Levy in August 2025 under an Agreement with King County parks and Recreation Division". There is no template or standard for the design of this signage requirement so a town or city may design the sign based on existing standards within the parks system, or however the town or city chooses. If a town or city has not installed its own sign the county will provide its own signage to be installed. There are strict conditions for the use of a King County Parks logo but this is not a signage requirement. If the town or city chooses to include a King County Parks logo please contact Grayson Court, Parks Levy Manager, for details: gcourt@kingcounty.gov, 206-477-9229 (work phone), 206-247-9324 (cell phone). Are towns and cities required to notify King County when a major milestone or opening date is planned for a parks capital project? Yes, but only if the parks capital project has been funded with county levy proceeds. For each capital project funded with county levy proceeds from the 2026-2031 King County Parks Levy, the town or city must report to King County Parks and their King County Councilmember major milestones, such as groundbreakings and opening dates, thirty (30) days prior to such milestone. The town or city must deliver reports to both King County Parks and their King County Councilmember. Notifications to King County Parks may be sent to gcourt@kingcounty.gov and notifications to King County Councilmembers can be sent directly to the Councilmember's office or to clerk.council@kingcountygov. Section 5.0 of Ordinance 19922 identifies a specific amount of levy funding to my town/city. When is that funding provided and what can it be spent on? Section 5.0 is a repurposed source of levy funding for all towns and cities. Section 5.0 replaces the expiring Parks Capital and Open Space grant program and provides funding directly to towns and cities using a formula based on population and other factors. The amount identified for each town and city will be distributed equally across all six years of the levy and will be combined with the traditional, direct pass -through funding towns and cities currently receive (described in Section 5.1.3). The criteria for eligible levy expenditures identified in Section 5.0 is the same as the traditional, direct pass -through funding to towns and cities described in Section 5.1.3. Must a town or city maintain financial records to account separately for their share of the 2026-2031 King County Parks Levy proceeds? Yes. Must a town or city report unused funds from previous King County parks levies? Yes. Must a town or city provide a complete financial accounting for the use of their share of levy proceeds? Yes. A town or city must provide King County a summary of projects for the preceding year along with a "...complete financial accounting..." for the use of their share. This could be in a form of a report generated by a town or city's finance system (Oracle, Springbrook, Munis, Dynamics, etc.) which shows how the levy funds are received as revenue and used when there are expenditures using levy proceeds Page 2 of 4 67 from the 2026-2031 King County Parks Levy. Below are some examples of financial reports that can be included: • Revenue: o Account Information Report o Account Detail History o Accounting History o Account Ledger Export o Detail Report: Account Detail o General Ledger: Account Detail Report o General Ledger: Detailed Trial Balance o General Ledger: Line Details o Income Statement: Account Summary o Revenue Detail Activity o Revenue Detail Report o Revenue Status Report o Transaction Journal • Expenditures: o Account Activity Report o Account Detail History o Detail Report: Account Detail o Expenditure Status Report o General Ledger: Account Detail Report o General Ledger: Detail Report o General Ledger: Detailed Trial Balance o General Ledger: Line Details o Transaction Journal o Year -to -Date Budget Report What is the King County Parks Levy Oversight Board? The King County Parks Levy Oversight Board consists of nine members who are nominated by a member of the King County Council representing their respective district then confirmed by the whole council. The mission of the Board is to review and report to the County Executive and King County Council on the allocation of King County Parks Levy proceeds and the progress on achieving the purposes of the Parks Levy ballot proposition. Specifically, the Levy Oversight Board is to confirm that the levy proceeds have been expended consistent with the requirements of King County Ordinance 19922, which outlines eligible expenditures and the specific use of levy proceeds including towns and cities in King County. King County Parks staff present reports, including information provided by towns and cities in their annual reports, to the Board for review and confirm if towns and cities receiving parks levy proceeds have complied with the levy spending requirements. When are parks levy funds distributed to towns and cities? King County transfers to each town and city their share of the levy proceeds over the course of the year, generally in the months of May, August and November. How much does my town/city expect to receive from the King County Parks Levy each year? It's difficult to provide an exact amount each year because a town or city's share of the levy proceeds is dependent upon several factors, including but not limited to population estimates, assessed property values, and tax collection. For estimated forecasts based on the adopted pass -through funding model Page 3 of 4 68 please contact Grayson Court, Parks Levy Manager: gcourt@kingcounty,gov, 206-477-9229 (work phone), 206-247-9324 (cell phone). What if we have more questions about the 2026-2031 King County Parks Levy and/or we would like to showcase the exciting work that our town or city is doing with levy funds? Please contact Grayson Court, Parks Levy Manager, for any questions about the parks levy or to schedule a site visit: gcourt@kingcounty.gov, 206-477-9229 (work phone), 206-247-9324 (cell phone). Page 4 of 4 69 King County Parks Property Tax Levy 2026-2031 Agreement be and remain the properties of CITY and shall not be deemed property of the County under any circumstances. 7. Notices. All notices required to be given hereunder shall be in writing and either delivered personally or sent by certified mail to the appropriate address listed below, or at such other address as shall be provided by written notice. Notice shall be deemed communicated upon actual receipt. For convenience of the parties, copies of notices may also be given be other means; however, neither party may give official or binding notice except by personal delivery or by certified mail. If to the CITY: CITY's Contact and Title: City Name: Mailing Address: City, State, Zip Code: If to King County: Warren Jimenez, Division Director King County Parks and Recreation Division Department of Natural Resources and Parks 201 South Jackson Street Mailstop: KSC-NR-6500 Seattle, WA 98104 wjimenez@kingcounty.gov kcparks.legalnotices@kingcounty.gov 8. Compliance with Laws. The CITY shall comply and conform with all applicable laws and all governmental regulations, rules, and orders. 9. CITY Agreement to Comply with Audit Finding or Repay. The CITY agrees that it is financially responsible for the lawful use of the levy funds distributed under this contract. The CITY agrees that if the State Auditor makes an audit finding that the levy funds have not been spent properly, the CITY shall comply with the State Auditor's audit finding and correct any improper expenditure or, at the sole discretion of the County, repay any indicated amounts to the County. This duty to comply with the audit finding or repay shall not be diminished or extinguished by the prior termination of this Agreement and shall survive the termination of this Agreement. 10. Miscellaneous. A. Liability of the County. The County's obligations to the CITY under this Agreement shall be limited to the terms and conditions set forth herein. Notwithstanding any other Page 4 of 7 70 King County Parks Property Tax Levy 2026-2031 Agreement provision in this Agreement to the contrary, in no event shall the County be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect or incidental damages, including without limitation lost profits, arising out of or in connection with this Agreement or the services performed in connection with this Agreement. B. Dispute Resolution. In the event of a dispute between the CITY and the County regarding any term of this Agreement, the parties shall attempt to resolve the matter informally through the following mechanism: the CITY (reps.) or their respective designee(s), shall meet with County (reps) or their respective designee(s) to review and discuss the matter(s) in dispute; if the CITY (representatives) and County (representatives) are unable to reach a mutual resolution, the Executive and the mayor, or their respective designee(s) shall meet to review and discuss the matter(s) in dispute. If such persons are unable to resolve the matter informally, either party may submit the matter to a non -binding, structured mediation procedure fashioned by persons or organizations experienced in alternative dispute resolution ("ADR") procedures. The mediation may be requested by any party and shall be initiated within thirty (30) days from the date of the request unless extended by the mutual agreement of both parties. The alternative dispute resolution procedures utilized for the mediation shall include the exchange of written claims and responses, with supporting information, at least seven (7) days prior to the actual mediation. The positions expressed and the mediator's recommendations shall not be admissible as evidence in any subsequent ADR or legal proceeding. If the matter is submitted to mediation and the matter is not resolved, an affected party shall be entitled to pursue any legal remedy available. Any disputes involving the lawful expenditure of levy proceeds shall be resolved by King County Superior Court if the parties cannot agree. C. No Implied Waiver. No failure by either party hereto to insist upon the strict performance of any obligation of the other party under this Agreement or to exercise any right, power or remedy arising out of a breach thereof, irrespective of the length of time for which such failure continues (except in cases where this Agreement expressly limits the time for exercising rights or remedies arising out of a breach), shall constitute a waiver of such breach or of that party's right to demand strict compliance such term, covenant or condition or operate as a surrender of this Agreement. No waiver of any default or the performance of any provision hereof shall affect any other default or performance, or cover any other period of time, other than the default, performance or period of time specified in such express waiver. One or more written waivers of a default or the performance of any provision hereof shall not be deemed to be a waiver of a subsequent default or performance. The consent of either party hereto given in any instance under the terms of this Agreement shall not relieve the other party of any obligation to secure the consent of the other party in any other or future instance under the terms of this Agreement. D. Headings and Subheadings. The captions preceding the articles and sections of this Agreement and in the table of contents have been inserted for convenience of reference Page 5 of 7 71 King County Parks Property Tax Levy 2026-2031 Agreement and such captions in no way define or limit the scope or intent of any provision of this Agreement. E. Successors and Assigns. The terms, covenants, and conditions contained in this Agreement shall bind and inure to the benefit of the County and the CITY and, except as otherwise provided herein, their personal representatives and successors and assigns. There are no third party beneficiaries to this Agreement. F. Agreement made in Washington. This Agreement shall be deemed to be made in and shall be construed in accordance with the laws of the State of Washington. Venue of any action brought by one party against the other to enforce or arising out of this Agreement shall be in King County Superior Court. G. Integrated Agreement; Modification. This Agreement contains all the agreements of the parties hereto relating to the subject matter addressed herein, and cannot be amended or modified except by a written agreement approved by the King County Council and mutually executed between each of the parties hereto. H. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. I. Time of Essence. Time is of the essence of each provision of this Agreement. J. Signage. For each completed capital project funded with County Levy Proceeds, the CITY shall install a permanent sign at a common access point of the park facility's premises that shall include the following language: This project was funded (or as applicable, funded in part) with proceeds from the voter -approved King County Parks Levy in August 2025 under an Agreement with King County parks and Recreation Division. If the CITY has not installed its own sign the City shall install a sign provided by the County. K. Reporting. The CITY should report major milestones, such as groundbreakings and opening dates, thirty (30) calendar days prior to such milestone to King County Parks and the King County councilmember who represents the CITY's County Council district. The CITY can mail or deliver reports to both King County Parks and the current King County Council councilmember at: Warren Jimenez, Division Director King County Parks and Recreation Division Department of Natural Resources and Parks 201 South Jackson Street Mailstop: KSC-NR-6500 Seattle, WA 98104 wjimenez@kingcounty.gov kcparks.legalnotices@kingcounty.gov Page 6 of 7 72 King County Parks Property Tax Levy 2026-2031 Agreement Councilmember(s): In care of King County Council Clerk Room 1200. 516 3rd Avenue Seattle, WA 98104 clerk.council@kingcounty.gov IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the last date set forth below. KING COUNTY, a Washington municipal CITY OF TUKWILA, a Washington corporation municipal corporation By By Its Its Date Date By authority of Ordinance No. 19922 Page 7 of 7 73