HomeMy WebLinkAboutCommittee of the Whole - 07 Oct 2024 - Agenda - Pdf
CITY OF RENTON
AGENDA - Committee of the Whole Meeting
5:45 PM - Monday, October 7, 2024
7th Floor Council Chambers/Videoconference
1. 2025/2026 BIENNIUM BUDGET
a) Presentation
If you would like to attend this week's meeting remotely, you can do so by going to
https://us02web.zoom.us/j/86753290028?pwd=M2pOc09HWWNrY05uVnlIWnpGS1E4UT09
Zoom Meeting ID: 867 5329 0028, Passcode: 881839
You can call through Zoom at (253) 215-8782 and use the Meeting ID.
2025-2026
Preliminary Budget
Budget Overview
Committee of the Whole
October 7, 2024
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Key Budget Deadlines
November 30th
Deadline to set property tax rate
December 31st
Deadline for Final Budget Adoption AG
E
N
D
A
I
T
E
M
#
1
.
a
)
25-26 Biennium Council Workshops
October 7:
Committee of the Whole
•Mayor delivers budget message
•Proposed budget presented to
council
October 14:
Committee of the Whole
•Department presentations
•Council deliberation
October 14:
Regular Council Meeting
•Public Hearing #2: Revenue
sources & proposed budget as
required by RCW 35A.34
October 21:
Committee of the Whole
•Department presentations
•Council deliberation
October 21:
Regular Council Meeting
•Public Hearing #3
October 28:
Committee of the Whole
•Department presentations (if
needed)
•Council deliberation/consider
draft committee report
November 4:
Regular Council Meeting
•Adopt committee report
•1st reading of budget-related
legislation
November 18:
Regular Council Meeting
•2nd reading and enactment of
all budget-related legislation
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Community Outreach
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Survey Results
indicate respondents’ top priorities are:
PUBLIC SAFETY HEALTH & HUMAN
SERVICES
PARK
MAINTENANCE
CITY CLEAN-UP
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Budget
Development
Priorities
▪Staffing to align internal service resources
▪Safety & Health
▪Inflation
▪New and ongoing maintenance and
improvements to the city’s infrastructure
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Citywide
Revenues
& Sources:
$645M
Property Tax
8%
Sales Tax
15%B&O Tax
7%
Utility Tax
6%
Other Taxes1
4%
Intergovernmetal2
2%
Utility Service
Charges
30%
Misc3
7%
Interfund
Transaction
21%
1. Other taxes includes business license fees, permits, gambling, admissions, franchise fees and REET
2. Intergovernmental includes stated shared revenue and capital grants
3. Miscellaneous includes fines, forfeits, and development services
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Citywide
Expenditures
& Uses:
$648.4M
Personnel
37%
Supplies/
Small Equipment
2%
Services &
Utilities
30%
Interfund
21%
Capital
8%
Debt Service
2%
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Increase
Expenditures
Citywide
21 positions
Capital funding for City
infrastructure
Supplies & Professional
Services
Human Services
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
City Service Area Operating Cost:
per capita per year
Average 2025 operating budget per resident, per year,
is $2,359, or $6.46 per day
When employment base is included – $1,430 per
person per year, $3.92 per day
$120
$130
$251
$253
$615
$1,007
$116
$158
$260
$267
$587
$971
Representative
Government
Internal Support
Mobility
Livable Community
Safety & Health
Utilities & Environment
2025 2026
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
General Fund
Revenues &
Sources:
$279.8M
Property Tax
19%
Sales Tax
29%
Utility Tax
13%
B & O Taxes
16%
Other Taxes1
4%
Intergovernmental2
6%
Miscellaneous3
13%
1. Other taxes includes business license fees, permits, gambling, admissions, franchise fees and REET
2. Intergovernmental includes stated shared revenue and service charges
3. Miscellaneous includes fines, forfeits, interfund transfers and development services
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
2025 Preliminary Property Tax
▪Proposed Property Tax Levy for 2025 is
$26.2 million
▪Adjustment for 1% inflation
▪Banked capacity available of $15.7M
▪Average assessed value home price in
2025 is $652K
▪City tax on average home in 2025 is
$592/year
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Sales Tax Distribution
▪City share is 10.5%
▪Added Transportation
Benefit District (TBD) in
2025 of $3.5M per year
▪Base sales tax, 1.6% growth
in 2023 and a 2% decline in
2024
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Estim.
Actual
2025
Prop
2026
Prop
2027
Proj
2028
Proj
2029
Proj
2030
Proj
Mi
l
l
i
o
n
s
Past and Projected Sales Tax
Base Sales Tax Criminal Justice Affordable Housing Trans. Benefit Dist.
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
For Renton businesses with $500,000 or
higher annual gross receipts:
▪Low tax rates of 0.07% for retail and
0.121% for all other
▪Maximum amount paid is capped at
$12 million in 2025 with a 75%
reduction for any tax over $12 million
▪Provides a three-year, new employer
tax credit for new businesses with 50
or more employees in Renton
B&O Tax/
Business License
$-
$5
$10
$15
$20
$25
$30
2022
Actual
2023
Actual
2024 Est.
Actual
2025
Proj.
2026
Proj.
2027
Proj.
2028
Proj.
2029
Proj.
2030
Proj.
Mi
l
l
i
o
n
s
Business License and B&O Tax Collections
Business License B&O
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Other Revenues
+2.5M +1.4M +1.3M
Utility
Taxes
Interest
Income
Charges for
Services
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
General Fund
Expenditures
& Uses:
$289.6M
Personnel
63%
Supplies/Small
Equipment
1%
Services &
Utilities
17%
Interfund
16%
Transfer/Capital
3%
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Positions in comparison to population
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.00
98,000
100,000
102,000
104,000
106,000
108,000
110,000
112,000
114,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Em
p
l
o
y
e
e
s
p
e
r
1
,
0
0
0
P
o
p
u
l
a
t
i
o
n
Po
p
u
l
a
t
i
o
n
Total Population of Renton Employees per 1,000 Population
Staffing Additions
To align internal service resources to accomplish department objectives in
support of the city’s business plan
5 Police 4 Police
3 Parks & Recreation 1 Utilities
4 Utilities 2
0.5 Transporation
6 Overhead:
Executive, City Attorney
Finance, and Facilities
Deletions 3.5 Unfilled/unused positions 1 Limited term position
Net Change
2025
15 FTE
Overhead:
Executive and Finance
6 FTE
2026
Additions
21 New FTE
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Capital Improvement Plan (CIP)
Grants,
20,223,000 ,
40%
Taxes,
5,969,000 ,
12%
REET,
7,920,000 ,
16%
TBD,
7,000,000 ,
14%Impact,
1,104,000 , 2%Insurance,
865,000 , 2%
Bond,
7,005,000 ,
14%
2025/2026 CIP Funding Sources
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Other Additions
Insurance Restroom
Cleaning
$1M
Information
Technology
$3.5M$1M
Services &
Other
$3M
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Long Range Forecast
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
2022 2023 2024 2025 2026 2027 2028 2029 2030
Operating Revenue Base Operating Expenditure Ending Fund Balance
2022 2023 2024 2025 2026 2027 2028 2029 2030
Summary ($ in Million)Actual Actual Projected Projected Projected Projected Projected Projected Projected
Beginning Fund Balance 69.1$ 83.6$ 99.2$ 87.7$ 82.4$ 77.9$ 71.6$ 64.0$ 54.2$
Operating Revenue 131.9$ 145.2$ 132.1$ 137.8$ 140.2$ 143.3$ 146.6$ 150.1$ 153.8$
Base Operating Expenditure (117.3) (122.9) (136.0) (137.5) (142.7) (148.0) (152.5) (158.4) (163.3)
Operating Surplus (Deficit)14.6$ 22.3$ (3.8)$ 0.3$ (2.5)$ (4.7)$ (5.9)$ (8.3)$ (9.5)$
1X Sources 12.8$ 3.1$ 5.1$ 0.9$ 0.9$ -$ -$ -$ -$
1X Uses (12.8) (9.8) (12.8) (6.5) (2.9) (1.7) (1.7) (1.5) (1.5)
Net Resources - Uses 14.5$ 15.6$ (11.5)$ (5.3)$ (4.5)$ (6.3)$ (7.6)$ (9.8)$ (11.0)$
Ending Fund Balance 83.6$ 99.2$ 87.7$ 82.4$ 77.9$ 71.6$ 64.0$ 54.2$ 43.3$
Ending Bal as % of Opr Budget (Target=12%)71.30%80.72%64.51%59.94%54.62%48.40%41.98%34.24%26.50%
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Utilities Revenue:
$194.4M
Utility Rate Increases 2021 2022 2023 2024 Est
2025
Proposed
2026
Proposed
Water Rate Increase 2.0%2.0%0.0%0.0%2.0%0.0%
Sewer Rate Increase 2.0%2.0%3.0%3.0%0.0%2.0%
Storm Rate Increase 2.0%2.0%4.0%4.0%3.5%3.5%
Garbage Rate Increase (residential)4.0%5.0%7.0%3.0%6.2%6.2%
King County Metro Rate Increase 4.5%4.0%5.8%5.8%5.8%7.0%
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Utilities
Expenses:
$111M
Personnel
10%
Services & Charges1
59%
Debt
5%
Interfund Payments
8%
Capital
18%
1. Services & charges include $46.6 million (42%) for wastewater treatment services by King County
Metro, that is billed to Renton residents as a reimbursement to the city
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
$3M Republic Services
$6.8M King County wastewater
$390K for an asset management
system
Utilities
Budget
Highlights
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Airport/Golf Budget Overview
Airport Revenues: $9.8M
Airport Expenses: $9.7M
Golf Revenues: $9.3M
Golf Expenses: $9.7M
•$500K general increases in costs
due to inflation
•Adopted fee increases to be in line
with market average of other
neighboring courses
•Adopted fee increases for hangar
and tie-down rentals
•Increased revenue due to CPI and
re -negotiated lease contracts
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Budget-related Legislation
Property Tax Levy Ordinances
Utility Rate Adjustment Ordinance
Fee Schedule Resolution (Various User Fee Adjustments)
2025-2026 Budget Ordinance
AG
E
N
D
A
I
T
E
M
#
1
.
a
)
Next
Steps
Department Presentations:
Public Works
Parks & Recreation
Police
14
OCT
21
OCT
Department Presentations:
CED
Executive
Legal
Finance
Human Resources
Court
AG
E
N
D
A
I
T
E
M
#
1
.
a
)