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HomeMy WebLinkAbout092706 Council Workshop2oo(P City of Renton Financial Forecast & Annexation Workshop September 27, 11:00 a.m. — 6:00 p.m. AGENDA 1) Agenda Overview (Council President Corman, Mayor Keolker — 5 minutes) 2) 2007 Financial Forecast and Revenue Assumptions (Mike Bailey - 60 minutes) Short break and working lunch 3) Workshop Goals (Jay Covington - 15 minutes) a) Recap: Where we've been - annexations b) Focus on "big picture" regarding funding, timing, Renton's growth c) Initiate annexation planning 4) Current Annexation Policy Direction (Alex Pietsch - 15 minutes) a) Growth Management Act b) Renton's Business Plan c) Renton's Comprehensive Plan d) Discussion 5) Reasons to Annex (Alex Pietsch & Marty Wine - 30 minutes) a) Discussion 6) Description of Annexation Areas & Impacts (Marty Wine - 45 minutes) a) Maplewood Addition Expansion b) East Renton c) Benson Hill Communities d) West Hill e) Fairwood f) Discussion & Questions Short break 7) Funding Environment (Mike Bailey & Marty Wine - 30 minutes) a) Short-term and long-term funding options b) State Sales Tax Credit c) Annexation Initiative proposals from King County d) Streamlined Sales Tax e) Planning strategically: funding and timing by area i) East Renton ILA preliminary terms ii) "Road Map" ILA preliminary terms f) Discussion & questions 8) Service & Transition Planning (Marty Wine - 15 minutes) a) Interdepartmental annexation group b) Discussion & questions 9) Wrap-up/Next Steps (Marty Wine - 10 minutes) a) Outreach to communities b) Next steps Council Workshop — Budget Priorities and Annexations Roster Councilmember Randy Corman Councilmember Don Persson Councilmember Dan Clawson Councilmember Marcie Palmer Councilmember Terri Briere Councilmember Denis Law Councilmember Toni Nelson Mayor Kathy Keolker Jay Covington, Chief Administrative Officer Marty Wine, Assistant to CAO Preeti Shridhar, Communications Director Terry Higashiyama, Community Services Administrator Michael Bailey, Finance & Information Services Administrator Kevin Milosevich, Police Chief Michael Webby, Human Resources and Risk Management Administrator David Daniels, Fire Chief Gregg Zimmerman, Planning/Building/Public Works Administrator Larry Warren, City Attorney Alex Pietsch, Economic Development, Neighborhoods and Strategic Planning Administrator Julia Medzegian, City Council Liaison City of Renton, WA Analysis of Future Annexation Pro -Forma As of 2025 Existing Renton in 2025 (w/o lid lifts) Based on 2005 numbers and fiscal analysis Starting point for planning assumptions 2025 Drivers Renton Revenues: (2025 dollars) Property Tax 22,076,707 Annual Increase 1% 26,937,778 Assessed Value 5% 19,370,549,320 Rate 1.3907 New Construction AV Drivers 5.00% Result 7,300,556,316 Property Tax 37,090,343 Utility tax 3% 18,196,636 Sales Tax 3% 32,579,090 State Shared Revenue 2% 4,919,611 Loss of FD 25 Revenue Gambling Tax 2% 3,425,109 Permit Fees 2% 5,084,760 Sales Tax- Criminal Justice 3% 1,986,722 Fines & Forfeits 3% 1,322,706 Franchise Fees 4% 1,621,650 Recreation Fees 3% 6,535,594 Other 3% 9,922,956 Total 122,685,176 Expenditures Police Services 4% 39,428,365 Planning, Building, Public Works 3% 20,631,299 Fire Service 4% 30,866,339 Administrative, Judicial &Legal 3% 7,130,662 Community Services 3% 25,205,915 Finance and Information Services 3% 2,741,693 HR & Risk Management 3% 1,131,986 Economic Development 3% 2,528,079 Legislative 2% 396,375 Staff Related Facility Costs 1% 8,933,996 Total 138,994,708 Net Revenues (16,309,532) Population 56,500 Assessed Value 7,300,556,316 Dated: 9/27/2006 Originally presented Spring, 2006 City of Renton, WA Analysis of Future Annexation Pro -Forma As of 2025 2025 Fiscal Analysis (w/o lid lifts) Based on 2005 numbers and fiscal analysis Starting point for planning assumptions 2025 Drivers Fairwood Cascade West Hill East Plateau Total Revenues: (2025 dollars) (2025 dollars) (2025 dollars (2025 dollars) Property Tax 10,567,000 3,685,000 3,800,000 2,260,000 16,627,000 Annual Increase 1% 12,893,748 1% 4,496,400 1% 4,636,722 1% 2,757,629 20,288,100 Assessed Value 5% 9,021,212,197 5% 3,183.957.246 5% 3,232,255,224 5% 1,928.155,595 14.181,623,017 Rate 1.4293 1.4122 1.4345 1.4302 New Construction AV Drivers 5.00% 5.00% 15.00% 10.00% Result 3,400,000,000 1,200,000,000 3,654,609,000 1,453,403,130 8,508.012,130 Property Tax 17,753,266 6,191,046 9,879,318 4,836,273 32,468,856 Utility tax 3% 6,697,060 3% 2,505,076 5% 2,913,321 4% 1,358,496 10.968,878 Sales Tax 3% 3,353,949 3% 1,504,491 5% 992.333 5% 416.568 4,762,850 State Shared Revenue 2% 2,126,391 2% 811,327 2% 713,255 2% 364,057 3,203,703 Loss of FD 25 Revenue (908,000) (908,000) Gambling Tax 2% 649,359 2% 592,893 2% 1,545,385 2% - 2,194,744 Permit Fees 2% 1,471,088 2% 512,652 5% 944.574 5% 557,193 2,972,854 Sales Tax- Criminal Justice 3% 1,526,164 323,000 280,000 146,000 1,952,164 Fines & Forfeits 3% 937,372 3% 530,997 3% 377,477 3% 133,652 1,448,501 Franchise Fees 4% 786,613 4% 300,184 5% 318,396 5% 164,504 1,269,513 Recreation Fees 3% 238,407 3% 119,203 3% 149,907 3% 97,530 485,844 Business License Fees 1% 47,099 1% 28,064 2% - 2% 3,863 50,963 Total 35,686,768 13,418,934 18,113,966 7,170,136 60,870,871 Expenditures Police Services 4% 14,415,399 4% 8,168,507 4% 7,184,693 4% 1,617,049 23,217,141 Planning, Building, Public Works 3% 8.501,366 3% 3,195,011 3% 3,025,236 3% 1,737,479 13,264,081 Fire Service 4% 8,317,503 4% 2,438,720 4% 5,834,961 4% - 14,152,464 Administrative, Judicial &Legal 3% 2,133,479 3% 1,027,413 3% 865,189 3% 290,035 3,288,703 Community Services 3% 5,127,550 3% 868,740 3% 2,095.089 3% 1,114,371 8,337,009 Finance and Information Services 3% 1,573,123 3% 615,884 3% 642,976 3% 202.284 2,418,383 HR & Risk Management 3% 335.937 3% 131,846 3% 139,071 3% 43,347 518.354 Economic Development 3% 1,199,258 3% 420,824 3% 135,458 3% 12,643 1,347,359 Legislative 2% 52,008 2% 20,803 2% 22,289 2% 5,944 80,241 Staff Related Facility Costs 1 % 888,298 1 % 414,865 1 % 564.948 1 % 179,368 1,632,614 Total 42,543,921 17,302,612 20,509,910 5,202,519 68,256,350 Net Revenues (6,957,153) (3,883,678) (2,395,944) 1,967,617 (7,385,480) Population 26,100 16,100 13,900 7,287 63,387 Assessed Value 3,400,000,000 1,200,000,000 1,218,203,000 726,701.565 5,344,904,565 State Annexation Assistance Qualifies? Yes Yes Yes No Amount 0.2 0.1 0.1 4,503,118 2,251,559 2,251,559 4.503,118 Note: can only receive up to a maximum of .2 Dated: 9/27/2006 Originally Presented Spring 2006 Renton Annexation History_ Since 1998 NAME ANNEX DATE GROSS ACRES I ORIGINAL AV 8/06 AV % CHANGE East Renton Plateau 2/14/1998 193.61 $7,325,30OF $182,243,900 2388% Davis 1 5/10/1999 3.91 $90,0001 $9,847,000 10841% Smith 12/6/1999 11.8 $576,OOOT $19,351,100 3260% Morrison 2/7/20001 39.9 $277,0501 $35,037,0001 12546% Knight 12/4/20001 45.61 $3,721,0001 $42,163,000 1033% Medino-Empire Estates 2/12/20011 87.51 $9,139,3001 $17,121,100 87% Lee 1 10/24/20011 11.91 $690,1001 $7,092,0001 928% Piele 1 12/5/20011 20.0i $4,045,100 $9,864,1001 144% Vuong 1 6/18/20031 2.71 $162,000 $277,000 71% Falk 1 12/10/20031 6.4 $506,000 $0, -100% Bales 1 3/24/20041 9.0! $776,000 $1,663,0001 114% Stoneridge 1 4/28/20041 28.91 $2,720,530 $1,368,4001 -50% Carlo ! 5/22/20041 38.31 $3,756,000 $14,807,000 294% Tydico_ ! 9/22/2004 9.6 $776,000 $01 -100% Johnson 11/3/2004 18.2 i $1,999,700 $14,533,8001 627% Honey Creek East 6/l/2005 27.51 $10,586,700 $12,315,5001 16% Maplewood East 6/1/20051 26.11 $2,288,000 $3,603,0001 57% Merritt II (phase I 6/l/2005 80.71 $9,547,200 $11,483,0001 20% Wedgewood Lane 7/4/2005 37.0! $5,761,340 $8,450,0001 47% Park Terrace 11/7/20051 80.01 $30,951,700 $29,933,6001 -3% Mosier II 12/1/2005 65.0! $18,828,000 $21,446,0001 14% Lindberg 1 2/10/20061 9.71 $2,364,000 $2,547,000 8% Hoquiam 5/31/20061 20.51 $5,109,000 $5,324,000 4% Falk II 5/31/20061 6.31 $1,221,000 $1,464,0001 20 0 Akers Farms 5/31/20061 13.31 $799,000 $1,039,000 30% Total 1 1398.61 $124,016,020 $452,973,500 265% Figure 8-1 represents the number of regular full-time employees (FTE) working for the City of Renton, as well as the number of employees per every 1,000 Renton citizens. The number of FTEs has increased 12.4 percent between 1995 and 2005, while the population of Renton grew 26.62 percent during that same time period. The number of FTEs per 1,000 Renton citizens remained fairly constant until 2001. The high was in 1998 at 12.21 FTE per 1,000 citizens. Figzn-e 8-1. Cio, of Ren1017 Full -Time Employee (FTE) Staffing Levels per I, 000 Renton Citizens 60,000 50,000 40,000 C O 75 30,000 a 0 a 20,000 10,000 0 ®Population 4 Emp(FTE)/1,000 Population 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 12.5 C 12.0 0 co a 11.5 �° O O 11.0 Nm Year Regular FIFES Employees per 1,000 Population Total Population of Renton 1995 541.0 12.05 44,890 1996 549.0 12.15 45,170 1997 553.0 12.04 45,920 1998 565.0 12.21 46,270 1999 573.7 12.05 47,620 2000 583.7 12.09 48,270 2001 594.7 12.16 48,900 2002 598.7 11.71 51,140 2003 603.7 11.00 54,900 2004 609.2 11.00 55,360 2005 608.0 10.70 56,840 Source Population: State of Washington Office of Financial Management All other information: C it yof Renton Finance Department Appendix 8-5 City of Renton Revenues and Economic Review September 27, 2006 Early Budget Briefing • The Economy and City Revenues • Budget Issues of Significance Revenue — By Type — All Funds Miscellaneous Property 14% 16% Sales 14% UtilityCharg e for 7% Service 30% Ocher License / Gambling Governments Permits 2% 10% 4% Ocher Taxes 3% 3 1� Voter I nitiafive s • Initiative 695 - passed -Wiled unconstitutional - Prompted legislature to eliminate Motor Vehicle Excise Tax - $640,000 in 1999 • Initiative 722- passed - ruled unconstitutional Eliminated any new tax or fee increase • Initiative 747- passed - tentatively ruled unconstitutional note change in status •. Limits property tax increase amount to one -percent • Initiative 776- passed - constitutional Eliminates $15 car license surcharge • Initiative 900 - passed - being implemented by State Auditor's Office - Requires performance audits of all govemments • Initiative 933 - proposed and on November ballot - Requires government to reimburse landowners when regulations restricting land use are enforced 5 Property Taxes • Limits: — $3.60 per $1,000 of assessed value —1% increase on amount for existing tax base rm (plus annexations, new construction)lpeq OY1 • Note: Implicit price deflator limit still applies jueld ) SWITAffle — County assessor verifies tax role — County treasurer assesses the tax 6 3 Property Taxes • Assessed Value times • Levy Rate equals • Property Tax — Subject to 1% increase (on tax) • Plus new construction 7 Property Taxes Current Situation (2006) Not in your control Policy decision Assessed Value Levy Rate $ 7.3 billion ZColfie,Zd consequence $22.225 million 8 :a Property Taxes One percent increase — no change in AV Not in your control Assessed Value I $ 7.3 billion , no change A aXes $22.447 million Policy decision I % growth Levy Rate -$3.0441,000 $3.15/$1,00 Consequence higher levy rate Property Taxes One percent increase — increased AV Not in your control a 1Y(o Asses lue Polir,y deciision. I% Levy Rate 9 Was $ 7.3 billion $3:8441,000 Up to $ 7.9 billion Taxes $2.81/$1,000 Collected Consequence lower levy rate $22.447 million 10 5 Property Taxes 10/6 increase, new AV, new construction, annexation Not in your control up love pc�lzey decision 1% ..., Assessed V Levy Rate Was $ 7.3 billion $3.^�M Up to $ 7.9 billion Taxes $2.81/$1,000 Now $ 8.2 billion//Ool�lecfted Consequence lower levy rate $23.625 million $2� 44 7 . illie -- • 11 Pmperty Taxes Assessed Value Trends 9;o00,000,000 Ounges W Assessed V Wakdoa 7,OWpOM.000 h,fl00;Q(10;-u44 5,ab0,ti00iU00 3;600;81i0;�4 2 600 OW;040 =wmIjacreasn fvr past Oeo exrrrds 9% ,000,aD0,OD0 - --: - r--- --r 1"6 VW 1"S 1"SO 2OW 2001. 3002 2003 2M4 2005 2046. 2007 i 12 6 2005 1 2006 2007 Property Taxes Actual Forecast Forecast Assessed Values 6:476:973,084 7,163,861,699 7,522,054,784 Levy Rate 3.1245 3.0386 ' 2.8105 Base Tax Levy 20,724,4001 20,931:6441 21,140,960 Rate of increase New Construction 311,710,459 300,000,000 Annexatiions 13,599,794 79,000,000 Total Tax Levy 21,011,539 22,407,820 23,6 55,663 Total rate of increase 6.65% 5AMY i -r= � _' - =�a?tee-••� i 2008 Forecast 7,898:157,523 2.7035 21,352,370 200,000,000 150,000:000 24,873,515 Sales Taxes • .85% of total cost of taxable goods Rate o State 6.50% 6.5 ■ City .85% 0.85 o County .15% State El Metro .60% 0.6 0 Transit .90% ■ RTA .40% 0.15 ■CrunmalJustice .10% 0.2 0.033 1 0 Stad urns .33% 16 K I I 22,000,000 Total Sales Tax Receipts 20,000,000 `- 18,000,000 ' 16,000,000 14,000,000 �— K t' 12,000,000 _.. .. ..,.. . 10.000,000 8,000,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Sales Taxes Sales by Sector 6% 6% © Electronics 28% %% ■General Merch. a Furniture 11 % o SeNces ■ Other General Retail 5% mconstruction 23% 14% ■Automotive 0 Other Categories 18 I 3.000,000 Y ID AU2. 05 YFD Aw. 06 1.500.0ou 1.000.0no C J 12,000,000 - Utility Tax 10,000,000 - 8,000,000 - — 6,000,000 41000,000 2,000,000 0 2002 2003 2004 2005 2006 2007 Other Taxes Cable Franchise 900000 ' 700:000 _........,...... .. 600.000 { 500000 400:0009 - 7 300,000 200,000 too,000 0 2002 2003 2004 2005 2006 2007 Leasehold Excise Taxes 140.000 120,000 100,000 60.000 . 60,000 . 40,000 -4 20,000 { o - 2002 2003 2004 2005 2006 2007 Gambfi Taxes . 21500,000 --- 2,000,000 1 500,000 I,o00,000 500,000 i 0 M j 2002 2003 2004 2005 2006 2007 Admission Taxes 700,000 F-- 600.000 .`�... , 600,000 E 400,000 300.000 200,000 { i 100,000 0 2002 2003 2004 200E 2006 A Licenses & Permits Licenses/ Permits 3,000,000 — 2,500,000 ... 2,000,000 1,500,000 1,000,000 Building 500,000 o Business 0 2002 2003 2004 2005 2006 2007 Eighty percent of business license is invested in our transportation systems 22 Intergovernmental Intergovernmental 1,500,000 - - 1,000,000 s � 500,000 { 0 2002 2003 2004 2005 2006 2007 El State Shared Rev. ■ Gas Tax ❑ County License Fee O Fire District Contract o Other 23 Charges for Service Charges for Service 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000000 500:000 0 .. 2002 2003 2004 2005 2006 2007 ❑ Development 13 Recreation ■ Interfund0 Interfund reductions due to direct billing for Information Services 24 12 Fines and Forfeits Fines and Forfeits 1,100,000 1,000,000 900,000 800,000 `I 700,000 I 600,000 500,000 2002 2003 2004 2005 2006 2007 25 Miscellaneous Interest and Rents 800,000 700,000 600,000 500,000 400,000 300,000 i 200,000 ' 100,000 I 0 2002 2003 2004 2005 2006 2007 0 Interest ■ Rent 71 26 I� Other Funds Hotel Motel Taxes Lodging Taxes 200,000 150,000 100,000 50,000 t. 0 2002 2003 2004 2005 2006 2007 0 Lodging Tax ■ Marketing 27 Other Funds Real Estate Excise Tax Real Estate Ekds a Tax 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 All, 2,000,000 1,500,000 107 1,000,000 500,000 ; 0 2002 2003 2004 2005 2006 2007 28 14 Budget Issues of Significance • General Government Revenues — Overall Growth — 6.9% over 2006 budget • 2006 actual expected to be higher than budget by 4.35% General Government Expenditures — Retirement contribution • 44.54% higher than 2006 • Projected to grow 44.24% more in 2008 (combined 108%) • $ 1.8 million over two years — Wages / benefits developed using financial system parameters • 3% COLA, 10% health benefits • Bottom line — Strong revenue growth provides a small amount of funds available beyond retirement contribution 29 15 City of Renton Annexation Strategy Council/Administration Workshop September 27, 2006 Purpose • Review current status of potential annexation areas (PAAs) • "Big picture" focus on Renton in the future: growth, funding, timing • Initiate planning for annexation — implementation and impact Policy Direction to Date • Growth Management Act (regional) • Business Plan — Manage growth through sound urban planning: promote annexation where and when it is in the best interest of Renton • Comprehensive Plan — "Actively pursue" thoughtful annexations of the PAAs • Discussion What Does That Mean? • Renton is glad to support citizens interested in becoming part of the City and will welcome any area with the desire to join Renton to start the petition process. — The City doesn't initiate annexations. — The request — and the desire — to annex comes from area residents seeking lower taxes, improved services and accessible local government. — City provides information and answers questions. • The City will work with King County to leverage the maximum funding available to annex. • The City will negotiate with special purpose districts to ensure continuity of services at Renton levels of service after transition. �I)C> t - C,LCro95 44u_ topa,rG( 2 Reasons to Annex • What Renton is and how we'll grow — Communities with an affinity to Renton — Room to grow • Urban center concept • PAA residents' current use of City services • Quality of infrastructure • Ability to influence & affect development and quality of public services in PAAs • Regional influence • Funding opportunities • Discussion City of Renton's 20M POP 4.300MW Potential Eau PWWu 6700 Annexation), _y Areas 2003`— F 3 Maplewood Addition Expansion • Population: 1,330 • 340 acres, 3.06 square miles • 598 single-family units, zoned R-4 • 22,000 sf retail • Annexation date: Jan. 1, 2007 • Service Issues — S WM (5U ►',fa cz — Parks/cultural resources • Agreement with King County needed to transfer properties Maplewood Addition Expansion • Fiscal impact — Estimated by City staff based on per capita spending 2006 Revenues $674,876 2006 Costs $720,025 Year 1 Fiscal Impact ($45,149) 4 East Renton (POPA) • Population:7,287 • Acreage: 2,126 acres, 3.32 square miles • Election: Feb. 6, 2007 • Effective (if yes): Mar. 1, 2007 • Community open houses in Fall, 2005 • Survey in August, 2006 • Service issues: — Zoning and density — Sewer moratorium — Transportation/traffic — Parks East Renton (POPA) • Fiscal impact study findings — Berk & Associates' 2005 estimate: $263,000 initial cost — Refined estimate for 2007 — no impact — Year 2025 impact: $1.9M (2025 dollars) • Area residents desire better -managed growth, preservation of open space • Renton already provides fire/EMS and would lose the FD 25's contract payment 2006 Revenues $2.408M 2006 Costs $2.113M Loss of Revenue — FD 25 ($0.558M) Year 1 Fiscal Impact ($0.263M) Benson Hill Communities • Western half of Soos Creek PAA • Signature -gathering begins Sept. 28 • Population:—16,000 • 2,696 acres, 4.2 square miles • Service issues: — Fire ('b_9 '1C+`6) — Parks/Pool — Zoning/growth — Surface water management Benson Hill Communities • Fiscal impact study findings — Berk 2005 estimate: net costs of serving the area are relatively modest: just over $300K if facility costs are treated as capital — Year 2025 negative impact of $3.8 million (2025 dollars - Mike's analysis based on study) • Police: 1.7 additional patrol districts, 32 additional staff • Fire/EMS: annexation would require addition of one aid car, increased staffing to 5 positions • Parks & Recreation: Neighborhood Center ($1.5M) 2006 Revenues $8.038M 2006 Costs $8.360M Year 1 Fiscal Impact ($0.322--\l) 6 West Hill • Added to PAA in 2005 • 14,000 residents • 1,958 acres, 3.06 square miles • No active annexation conversations • Service Issues — Police — Library — Fire/EMS — Economic development West Hill • Fiscal Impact Study: costliest of all PAAs to serve: year 1 shortfall of $2.6M • Year 2025 negative impact of $2.3M (2025 dollars) • Two additional police patrol districts • Skyway Fire Station well -positioned to provide fire services to entire area • Two parks (Bryn Mawr Park and Skyway Park); would need to extend recreation activities • Skyway Library scheduled for reconstruction in 2011; a focus of negotiation with KCLS 2005 Revenues $7.840M 2005 Costs $10.475M Year 1 Fiscal Impact ($2.635M) 7 Fairwood • Eastern half of Soos Creek PAA • Population:—23,000 • 6.5 square miles • Election Sept. 19 incorporation appears to be failing (certified Sept. 29) • Proponents may return to the ballot • Service Issues for All-Fairwood PAA — Fire (negotiate with FD 40) — Zoning/Development — Library (acquisition could be costly) — Parks (two neighborhood centers, pool) • If Benson Hill annexes first, would need to refine fiscal impact estimates for Fairwood only Fairwood • Fiscal impact study findings: modest year 1 net costs of annexing the entire area — $820,000 if City does not take on Renton Pool — $100,000 if facility costs are counted as capital — Includes annualized facility costs associated with more employees — Doesn't include fire and library facility costs • Year 2025 negative impact of $6.9 million (2025 dollars - Mike's analysis based on study) 8 Funding Environment Short-term/Transition — King County Annexation Initiative • County General Fund • Real Estate Excise Tax • County Road Fund — State sales tax credit • 10-year transition window • "Clock" starts with annexation of 10,000+ Long-term — City General Fund — Real Estate Excise Tax — Other fees — Streamlined Sales Tax King County Annexation Initiative • Interlocal Agreement (ILA) Discussions • East Renton — $1.75 million — Election February 2007, effective March 2007 • 4-Year "Road Map" — Conceptual agreement about funding and timing, specific ILAs to follow — City works with communities to place issues on ballot — If rejected, City commits to re -place issue before voters; County funding commitment is halved • Renton needs: — Up -front planning dollars — County must describe service reductions if areas remain unincorporated 9 Preliminary King County Discussions Funding Source POPA Benson Hill Communities West Hill Fairwood Total Package Gen Fund $0.60M $LOOM $2.00M $0.50M $4.10M REET $1.15M - $0.35M - $1.50M Road Fund - $0.50M $ LOOM $0.725M $2.25M Other - $2-3M: "credits" - - kotaF77. $1.75M $1.50M $335M $1.25M $7.85M Preliminary timing discussions: Election Feb 07 Nov 07 Spring 08 Spring 09 Date Effective Mar 07 Mar 08 Jan 09 Jan 2010 Date Planning Strategically LPlateau ) Benson Hill West Hill Fairwood Election Fell 07 No%- 0"7 Sprimy 08 Spring SU sl • First available state funds come with Benson Hill annexation (up to $2.5 M/year) • Next state funds bump comes with an additional 10,000 population, to max of $5 M • County funding lag: City would receive '/z at successful election, %z at effective date im Service & Transition Planning • Interdepartmental annexation team assembled — Address how departments will carry out annexations — Representative from each department as internal and external communicator — Build from 2005 studies to scenario -plan • Identify service delivery challenges • Inventory transition costs (comprehensive plan, extending services, equipment, negotiation for properties) • Inventory infrastructure needs (capital planning) Service & Transition Planning • Interdepartmental annexation team, continued — Develop transition templates for each department to identify annexation costs • Berk studies as a starting point for ongoing costs • Create Month 1, Month 6, Year 1 implementation plans — Result • Transition and customer service plan • By department, by geographic area 11 City Actions with Pending Election • Can the City take a position on annexations? • Elective/appointive staff cannot use public facilities to support or oppose a ballot measure. • Except: Normal and regular conduct (neutral, factual presentation of impacts) Elected officials may act at an open public meeting; legislative body may express a collective decision or vote to support or oppose a ballot proposition in certain circumstances. - A statement by an elected official in support of or in opposition to any ballot proposition at an open press conference or in response to a specific inquiry. What it Means: Annexation Outreach • Active communication with current residents • East Renton - Advisory Task Force on zoning and community planning - Direct mail: FAQs about City services/impacts • Benson Hill Communities - Open house meetings through February 2006 - Direct mail: FAQs based on service -related questions • Fairwood & West Hill - Advisory committees/to be determined 12 Next Steps • Planning: — Departmental implementation plans — Inventory transition costs — Recruitment and hiring plans • Communication: — Conveying services Renton has to offer — Presence at community meetings • Near -term Council decisions: — Sewer moratorium — King County ILAs — Benson Hill annexation petition 13