The URL can be used to link to this page

Home My WebLink AboutCommittee of the Whole - 20 Apr 2020 - Agenda - Pdf CITY OF RENTON AGENDA Committee of the Whole Meeting 5:45 PM - Monday, April 20, 2020 VIDEOCONFERENCE 1. Financial Update a) Presentation 2. Forestry Ordinance Update a) Presentation Impact of COVID-19 on City’s Financial Position & Response Committee of the Whole April 20, 2020 1AGENDA ITEM #1. a) Background/City’s actions Impact on revenues Actions in response to revenue loss Next steps 2 Agenda AGENDA ITEM #1. a) Mayor issued a Proclamation of Emergency on March 11 and has been providing regular updates regarding City’s continued operations Governor declared a Stay Home, Stay Healthy order on March 23 which was later extended through May 4 Non-essential physical retail locations are closed under the state’s orders Many retailers furloughing or laying off staff Governor’s construction guidance on March 25 indicated most construction is not considered essential except those to “further a public purpose” Boeing announced in early April that factories will be closed indefinitely Bottom line –all of this has a significant impact on the City’s revenues 3 Background/City’s Actions AGENDA ITEM #1. a) Sales Tax B&O Tax Property Tax Utility Tax Real Estate Excise Tax State Shared Revenue Lease Revenue Miscellaneous Revenue 4 Impact on Revenues Multiple revenue sources are expected to be significantly impacted AGENDA ITEM #1. a) •Projecting loss of $9 million •Assumptions: •50% decrease for months under social distancing •17% for remainder of the year •Last week’s sales tax report represented January collections 5 Impact on Revenues Sales Tax AGENDA ITEM #1. a) •Projecting loss of $2.4 million •Assumption: •25% decrease estimated •Providing an extension/deferral for taxes due March 31- May 31 upon request (taxes must be paid by June 30) •Losses may be affected if 737 MAX in not put back into production by mid-year 6 Impact on Revenues Business & Occupation Tax AGENDA ITEM #1. a) •Projecting loss of $4.3 million •Assumption: •20% loss for all types of properties •King County provided an extension to June 1 for payment of property taxes 7 Impact on Revenues Property Tax AGENDA ITEM #1. a) Utility Taxes: •Projecting loss of $1.6 million •Assumptions: 10% loss due to closures Gambling Tax: •Projecting loss of $0.8 million •Assumption: 1/3 loss due to closures 8 Impact on Revenues Other Revenues AGENDA ITEM #1. a) Real Estate Excise Tax: •Projecting loss of $1.2 million •Assumption: Decrease of 30% due to loss of jobs, decreased real estate transactions and decreased financial power to purchase additional real estate State Shared Revenues: •Projecting loss of $0.8 million •Assumption: 20% loss similar to Great Recession 9 Impact on Revenues Other Revenues AGENDA ITEM #1. a) Waived Lease Rent: •Projecting loss of $0.1 million •Assumption: Loss of rent due to suspending payment for two months Miscellaneous Revenues: •Projecting loss of $2.3 million •Assumption: 25% loss due to cancellations, decrease in construction, etc. 10 Impact on Revenues Other Revenues AGENDA ITEM #1. a) 11 Impact on Revenues Revised Forecast Due to Loss of Revenue Related to COVID-19 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Summary ($ in Million)Actual Actual Actual Actual Actual Projected Projected Projected Projected Projected Beginning Fund Balance 12.3$ 14.8$ 24.4$ 31.5$ 44.5$ 48.1$ 16.1$ 11.6$ 5.3$ (2.9)$ Operating Revenue 104.3$ 114.8$ 104.1$ 105.7$ 128.5$ 125.9$ 125.7$ 127.8$ 129.9$ 132.0$ Base Operating Expenditure1 (107.9) (104.8) (86.3) (89.7) (117.3) (134.6) (131.1) (135.0) (138.9) (143.0) Operating Surplus (Deficit)(3.7)$ 10.0$ 17.8$ 16.1$ 11.2$ (8.7)$ (5.4)$ (7.2)$ (9.0)$ (11.0)$ 1X Sources2 10.3$ 5.3$ 0.6$ 0.0$ 2.5$ 1.5$ 1.3$ 1.2$ 1.2$ 1.1$ ADD the Changes in Rev Here:-$ -$ -$ -$ PROPERTY TAX (4.3)$ SALES TAX (9.0)$ B&O TAX (2.4)$ UTILITY TAX (1.6)$ GAMBLING TAX (0.8)$ REET (1.2)$ STATE SHARED REVENUES (0.8)$ OTHER (2.3)$ Waived Lease Rent (0.1)$ 1X Uses3 (4.1) (9.7) (11.3) (3.1) (10.2) (2.4) (0.4) (0.4) (0.4) (0.4) Net Resources - Uses 2.5$ 5.7$ 7.1$ 13.0$ 3.6$ (32.0)$ (4.5)$ (6.4)$ (8.2)$ (10.3)$ Ending Fund Balance 14.8$ 20.5$ 31.5$ 44.5$ 48.1$ 16.1$ 11.6$ 5.3$ (2.9)$ (13.2)$ Ending Bal as % of Opr Budget (Target=12%)13.74%19.55%36.52%49.68%41.00%12.00%8.88%3.89%-2.12%-9.24%AGENDA ITEM #1. a) In response to the decrease in revenues, Mayor Pavone has asked Administrators to carefully look at their department budgets: •Reductions in discretionary spending •Delay of hiring for vacant positions •Elimination of out-of-state travel and training •Reductions in overtime •Other ideas, for example, sharing staff where possible 12 Actions in Response to Revenue Loss AGENDA ITEM #1. a) •Federal/State funding •Under expenditures •Use of reserves 13 Other Potential Resources in Response to Revenue Loss AGENDA ITEM #1. a) Departments identify and implement cost-savings measures Forecast updated as additional information becomes available Legislative effort at federal and state level for relief due to revenue losses 14 Next Steps AGENDA ITEM #1. a) Parks Planning and Natural Resources FORESTRY PROGRAM UPDATE Committee of the Whole April 20, 2020 1 AGENDA ITEM #2. a) Becoming a Program of Distinction Overview of recent accomplishments and the next steps: •2018 Tree canopy cover study •2019 New tree ordinance •2020 Update of tree inventory •Less backlogged work •Next steps •Sustainability Considerations 2 AGENDA ITEM #2. a) Why Trees? 3 AGENDA ITEM #2. a) Urban forests confer myriad benefits, here are a few: •Storm water •Neighborhoods •Air •Business •Soil •Property •Cooling •Health •Energy $1.00 invested = $1.50 in benefits 4 AGENDA ITEM #2. a) 2018 New Tree Canopy Cover Data •Important management tool •Gives benchmark metrics •Distinguishes trees from impervious hardscapes •More cover = more benefits •Creates ability to target areas and to monitor change 5 AGENDA ITEM #2. a) 2019 Improved Tree Ordinance Some of the highlights: •Responsibility for trees in the Right-of-way •Land-use and construction permitting review •Spacing and tree selection •Out of date language replaced •Better tree maintenance, protection and preservation 6 AGENDA ITEM #2. a) 2020 Update to GIS Tree Inventory •Citywide Program Elements •Trees affect multiple departments •Forestry interacts with many other departments •Another great Management Tool •Accurate tree data is used to calculate the benefits 7 AGENDA ITEM #2. a) 2019 By the Numbers •357 Trees trimmed, 298 trees removed, 129 trees planted •15 New contracts written •1,850 Trees inspected •870 Tree data entries made •390 Work Requests handled •525 Work Orders generated and completed 8 AGENDA ITEM #2. a) Less Backlogged Work Means: •Management moves from reactive to proactive •Routine cyclical maintenance •Risk management is much improved •Resource is more sustainable •Storm damage is lessened •Better response times •Healthier trees •Happy kids! 9 AGENDA ITEM #2. a) The Next Steps A new 10-year Urban and Community Forestry Plan is due in 2021. To be a sustainable program this should include a review of elements included in the previous plan: •Routine cyclical maintenance •Enhanced tree planting •Risk tree management •More community outreach •Educational opportunities •Canopy cover targets •Resiliency planning •Forestry crew 10 AGENDA ITEM #2. a) Sustainability Considerations Internal Factors External Factors Pruning Techniques Best Practice 11 AGENDA ITEM #2. a) Tree Topping •The COR has a ‘No Tree Topping’ ordinance •City and private trees have been topped •Jeopardizes Tree City USA status •Increases maintenance costs •Not an accepted ISA practice •Blights the landscape •Damages tree health •Creates future risk 12 AGENDA ITEM #2. a) Outreach Opportunities 13 AGENDA ITEM #2. a) Thank You! “I speak for the trees for the trees have no tongues.” ‘The Lorax’, Dr. Seuss Ian Gray Urban Forestry & Natural Resources Manager Ext. 6601 email: igray@rentonwa.gov 14 AGENDA ITEM #2. a)