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2021, 10-26 Formal Meeting MINU TES City of Spokane Valley City Council Regular Formal Meeting Tuesday, October 26, 2021 Mayor Wick called the meeting to order at 6:00 p.m. The meeting was held in City Hall with Council, staff and some members of the public participating in person; and some members of the public participating remotely via Zoom meeting. Attendance: Councilmembers Staff Ben Wick, Mayor Mark Calhoun, City Manager Brandi Peetz,Deputy Mayor John Hohman,Deputy City Manager Pam Haley, Councilmember Erik Lamb, Sr. Deputy City Attorney Tim Hattenburg Councilmember Chelsie Taylor, Finance Director Rod Higgins, Councilmember Chaz Bates, Senior Planner Linda Thompson, Councilmember John BottelIi, Parks, Rec&Facilities Director Arne Woodard, Councilmember Bill Helbig, City Engineer Jerremy Clark, Sr. Traffic Engineer Jenny Nickerson, Building Official Christine Bainbridge, City Clerk INVOCATION: There was no invocation as a pastor was not in attendance. PLEDGE OF ALLEGIANCE Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL City Clerk Bainbridge called the roll; all Councilmembers were present. APPROVAL OF AGENDA It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to approve the agenda. INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS: COMMITTEE,BOARD,LIAISON SUMMARY REPORTS Councilmember Thompson: said she chaired the AWC (Association of Washington Cities) Large Cities Advisory Committee where they discussed the 2020 legislative list for AWC which dovetails into many city agendas; said they discussed how other cities are dealing with the Blake decision and the changes to law enforcement and to find ways to fix the unintended consequences that came out of that legislation but to also be proactive in how to support getting the tools to law enforcement and make sure the community is safe, including looking at other alternatives; said they talked about the federal package,infrastructure and the legislative work at the congressional level; said the City Action Days will be virtual again this year. Said she is on a National League of Cities (NLC) task force for re-imagining public safety in the nation, and that was published and will be distributed with a `roll out' of the task force's recommendations at the NLC virtual conference held in mid-November;said it is about seeking guidance from peers,cities,etc. and sharing resources of what has worked,and being able to talk about our behavioral health work,the training for law enforcement, and how to connect with community partners. Councilmember Higgins: no report. Councilmember Haley: reported that she attended some STA(Spokane Transit Authority) board meetings; said they will have a type of budget meeting to discuss how to allocate the new money that is coming from this administration,that they are very positive about transit,about electric;said we will have a lot of battery electric buses in Spokane; we currently have ten in service, and another thirty have been ordered; said she will be attending the in-person Expo the second week in November, where there will be lots of classes, Council Meeting Minutes, Formal: 10-26-2021 Page 1 of 6 Approved by Council: 11-09-2021 vendors, and looking at the`first mile last mile' and how to service that because if people can't get that last mile home,they won't use transit. Councilmember Woodard: said that on Thursday he went to a Spokane County Housing Development Advisory Committee meeting which was for the allocation of the HHAA Funds,and said that everyone was fully funded except our city; said we got our outreach person and nothing for the policeman, as according to staff, part of the reason is the policeman doesn't qualify; said one of the concerned staff mentioned the issue is with the expensive cost of two employees. Councilmember Woodard said he didn't get a chance to rebut the comment about the policeman as it was taken off the table; said he suggested to the staff and committee that Spokane Valley will be working with our legislators to get the laws changed on HHAA funds because the funds are derived from our citizens with every recorded document; said it is $657,000 a year currently and will go to $1.3 million next year since by law the cost to record a document doubled; said we asked for a pittance of the total to do something that no one else is doing, and that we should be able to come back and prove next year and onward, how successful our homeless program is; said we need that officer; said one of the people said since this is already in our City's budget,why would this program pay for it; and he said that is the purpose of the grant;said with everyone else getting funded,the difference was our $165,000 for our policeman; suggested that in the future, maybe we'd have a better chance of getting what we needed if we ask for a smaller amount; but we got the $1 00,000 for the outreach person. He also noted that the County just got their second round of.20 of DETAP funds, which are given to help people with their rent; they just got $12.5 million in the county to help people with their rents; said they don't have rules yet, and that funds will go to SNAP to help people catch up in rents and in moving forward to help people get back on their feet;said it doesn't help with mortgage payments,although SNAP has some programs for that; and that they have until 2025 to put that out. Councilmember Hattenburg: regarding the STA, said part of their ten-year plan is to extend commuter express, non-stop service to our City and to Liberty Lake; and in their two-year plan they are looking at a park and ride in the Cheney Spokane corridor, somewhere near Highway 195; said their feasibility study is to increase sixteen hours on Sundays throughout the entire system; said they are $20 million above sales at this point; paratransit ridership is up 70% but overall ridership is still down about 25% which is still an improvement from the previous year; regarding the Growth Management Steering Committee of Elected Officials, said he found out how well we are doing and extended appreciation to Mr.Bates and Mr.Basinger for the job they are doing for zoning in the R4 zone, and the compact areas for infill of land that isn't being developed within our boundaries; and added that they are working on an updated county-wide plan for the state. Deputy Mayor Peetz: said she attended an `Adult and Teen Challenge' dinner at the addiction recovery center and said it was enlightening, and she gave some statistics about drug and alcohol issues across the country; said she attended the TPA (Tourism Promotion) committee meeting where they had the 2022 application presentations;said there are two funds of money for TPA,one which is very small where people can apply for tourism, and the large fund is split between Visit Spokane and the Sports Commission; said she attended the Visit Spokane meeting where she is chair of the bylaws committee and that they are wrapping up that process; said the 2020 annual report shows $881 million that came in through tourism; said she attended the Washington Traffic Safety Commission meeting where our grants engineer Mr.Adam Jackson gave a great presentation talking about traffic safety; said they are implementing public comment in their meetings and they are using some of our language and process to import that in their meeting; she mentioned that Senate Bill 5485 related to traffic safety and police officers, which didn't pass last session so this might be something we want to examine; and that she attended the Chamber Manufacturing Matters Event where they talked about free markets. MAYOR'S REPORT Mayor Wick said he also attended the Steering Committee of Elected Officials meeting; that as we try to get more affordable housing, a way to do that is through the adjustment of the Urban Growth Boundary; said it seems it will be a long process; said he didn't realize the County has been out of compliance with the GMA for several years, so before we can look at what the boundaries are, there is the need to get the County back in compliance; said the committee passed a resolution to try to encourage them through one Council Meeting Minutes, Formal: 10-26-2021 Page 2 of 6 Approved by Council: 11-09-2021 of the check-marks that was in their settlement agreement; said the Regional Health District's budget has a $3 million shortfall so the committee is working hard to close that gap by prioritizing programs and other means, and that there is about$2 million that the County usually contributes so the committee is working on receiving that; said the Lodging Tax Advisory Committee met which had some good outcomes which will come to Council in the future; said that the SRTC (Spokane Regional Transportation Council) came up with a regional priority list for the legislative session,which he said he'll distribute to Council later,said our projects fared well more are in the top tier of that list than anywhere else; said we'll see what the second tiers produce;said if Councilmembers have any feedback after reading the list to please let him know; said the Office of Financial Management is working to finalize the population counts since the last census; said we are in the comment period but at the moment they have our city at 102,000 with 104,000 estimated for 2021, which once the figures are finalized,would make us the 9t" largest city in the state; and said he was selected by the Fairchild Air Force Base to be an honorary commander for the next two years. GENERAL PUBLIC COMMENT OPPORTUNITY f11: Mayor Wick invited public comment. Mr. Dan Allison, Spokane Valley: said a few months ago we brought up the issue of abandoned shopping carts and he sked that someone get back to him to give him an update. Mr. John Harding, Spokane Valley: spoke of the Governor's mandate and extended emergency and use of the word emergency; said that it would be interesting if he could be given the statutory authority where a mandate supersedes constitutional law 1.PUBLIC HEARING: 2021 Budget Amendment —Chelsie Taylor Mayor Wick opened the public hearing at 6:25 p.m. Finance Director Taylor went over the events that have necessitated this amendment to the 2021 budget, as noted in her October 26, 2021, Request for Council Action form. Mayor Wick invited public comment. No comments were offered and Mayor Wick closed the public hearing at 6:36 p.m. 2.First Reading Ordinance 21-017,Amending 2021 Budget—Chelsie Taylor. After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Peetz and seconded to advance Ordinance No. 21-017 Amending the 2021 Budget, to a second reading as proposed. Vote by acclamation: in favor: unanimous. Opposed: none. Motion carried. NEW BUSINESS: 3. Consent Agenda: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion:I move to approve the Consent Agenda. a. Approval of Claim Vouchers on October 26, 2021,Request for Council Action Form: $3,165,799.26 b. Approval of Payroll for Pay Period Ending October 15, 2021: $403,169.46 c. Approval of Council Meeting Minutes of October 5, 2021 Study Session d. Approval of Council Meeting Minutes of October 12, 2021, Formal Format It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to approve the Consent Agenda. 4. Second Reading Ordinance 21-0 1 6, Property Tax—Chelsie Taylor After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Peetz and seconded to approve Ordinance No. 21-016 levying regular property taxes for 2022. Finance Director Taylor briefly explained the purpose of the ordinance,adding that it does not include the increase allowed by state law but does include revenues from new construction. Mayor Wick invited public comment. No comments were offered. Vote by acclamation: in favor: unanimous. Opposed.` none. Motion carried. 5. First Reading Ordinance 21-018 Adopting 2022 Budget—Chelsie Taylor After City Clerk Bainbridge read the ordinance title, it was moved by Deputy Mayor Peetz and seconded to advance Ordinance No. 21-018 Adopting the 2022 Budget to a second reading. Finance Director Taylor gave an overview of the 2022 budget; noted the newly shown changes in the 2021 budget amendment just Council Meeting Minutes, Formal: 10-26-202I Page 3 of 6 Approved by Council: 11-09-2021 discussed in the previous agenda item,will not affect these budget numbers. Vote by acclamation: in favor: unanimous. Opposed: none. Motion carried. 6. Proposed Resolution 21-008: Tourism Promotion Area(TPA)—Erik Lamb It was moved by Deputy Mayor Peetz and seconded to pass Resolution 21-008,giving notice of termination of the City of Spokane Valley's participation in Amendment No. 3 and Restated Interlocal Cooperation Act Agreement for Establishment of Spokane County Tourism Promotion Area, as well as the original Interlocal Cooperation Act Agreement for Establishment of Spokane County Tourism Promotion Area or as amended in 2008 and 2009 as that original TPA agreement may continue to have any legal effect, and authorize the City Manager to finalize and execute any documents or actions necessary to accomplish the same. Deputy City Attorney Lamb said this is in follow-up from the October 5 report given by City Attorney Driskell about submitting a resolution terminating the City's participation in the Spokane County Tourism Promotion Area interlocal agreement; said this resolution will give the required notice of termination and if approved, will take effect December 31, 2022; and that staff will come forward in the future with discussion about possible next steps. Mayor Wick invited public comment; no comments were offered. Deputy Mayor Peetz said she is on the TPA committee,said in the past it was at times difficult to see where our money went; that the current CEO of the TPA is doing an amazing job, and that we hope to keep good relations with the TPA as well as with Visit Spokane.Mayor Wick added that he thinks this will help in the relationship with Visit Spokane as it puts us in a better position to work with them to best use those marketing dollars. Vote by acclamation: in favor: unanimous. Opposed: none. Motion carried. 7. Motion Consideration: City Hall Holiday Closure—Mark Calhoun It was moved by Deputy Mayor Peetz and seconded to authorize the closure of City Hall and CenterPlace, at noon Wednesday,November 24, 2021, to allow staff time to prepare for their Thanksgiving Holiday;and to close at noon Thursday, December 23, 2021; that this closure will affect only normal administrative functions of the City, however, all pre planned events at CenterPlace will take place as scheduled. City • Manager Calhoun stated that Council has historically been very generous in giving additional time off;that this was discussed at the Agenda Committee a few weeks ago; that this year Christmas and New Year's Day fall on a Saturday, so the observed holiday will be Friday before, and that the Committee supported closing at noon on Wednesday before Thanksgiving, and at noon on Thursday, December 23, but not for the New Year holiday, which is more of a minor holiday. Mayor Wick invited public comment; no comments were offered. Vote by acclamation: in favor: unanimous. Opposed: none. Motion carried. 8. Motion Consideration: Outside Agency Grant Awards- Chelsie Taylor It was moved by Councilmember Hattenburg and seconded as follows; to award 2022 Outside Agency funding as follows: Elevations; a Children's Therapy Resource Foundation-$5,837; Greater Spokane County Meals on Wheels-$18,408;HUB Sports Center- $5,000;JAKT Foundation - $12,051;NAOMI-$6,179;Northwest Winterfest- $4,571; Project id- $12,714; Spokane Valley Arts Council- $15,500; Spokane Valley Heritage Museum - $11,622; Spokane Valley Partners - $36,945; Spokane Valley Summer Theatre - $7,643; Spokane Valley Performing Arts Center-$6,357; Teen &Kid Closet-$9,051; Valleyfest-$17,214;and Widows Might - $12,908. Finance Director Taylor went over the background of the outside agency grant awards, and of the method used since 20I3 to determine the allocations, as noted in her Request for Council Action form. Mayor Wick invited public comment. Ms. Barb Howard, Spokane Valley: said she remembers when the Winterfest group came before Council a few years ago and all they wanted was use of the property, then they came back and wanted $100,000, then $75,000; she questioned what's going on because of a comment a person made, and she read: `there is a group of us dedicated to see you win the next election,this is not over yet.' A point of order was called with Mayor Wick cautioning Ms.Howard not to get into election material. Ms. Howard said she wasn't using anyone's name; said the same thing was with the arts and said she doesn't understand why; said she questioned who did they go to as it sends up red flags for her. There were no other public comments. Deputy Mayor Peetz said she struggled with the allocation; said we have two Councilmembers who were on a board that is receiving money in these allocations; said there is something in our Governance Manual that talks Council Meeting Minutes,Formal: 10-26-2021 Page 4 of 6 Approved by Council: 11-09-2021 about us being on a board and financial ties; said this particular organization is a great organization and said she appreciates what they do in our community and that she doesn't want to punish them, but said she feels even if those Councilmembers resign from the board there is nothing that says they can't go back on the board once these allocations have been made; said she knows that there's other Councilmembers who used to participate in this process but can't because they are a Councilmember now;so said she feels they should have sit out a year and then come back to us a year later so it wasn't a conflict of interest; said she doesn't know if she needs to make an amendment and zero-out Project id, or have a discussion first. Deputy City Attorney Lamb said we looked at this issue because we did have some Councilmembers who identified that they were on the board, and it is his understanding that they have resigned from that board and that they did so prior to this process,so that would not create a current conflict; said that under the state law it would not create a conflict for them to participate in this process. Councilmember Haley said that this was fully checked out with City Attorney Driskell and Deputy City Attorney Lamb before the process was started, and said they were assured there was no conflict there;said we had talked about recusing ourselves but in order to do that we'd have to recuse ourselves off of everything, which would then mean that there wouldn't be enough votes to do anything because of the way we do our process;she said that where the Governance Manual discusses being on a board, that it probably means are you going to benefit from the money that's coming there;just like Mayor Wick has the Current where we advertise, and we determined that's not a conflict of interest even though he receives money directly from the City; said we don't get anything from anything that Project id does and if anything, said she spent a lot of money toward Project id as they do amazing work; said there are multiple people here on many of our things, who have not only held big fundraising parties for members who are on the council currently, who also did not recuse themselves when they were actually receiving the benefit of the money; something that she and Councilmember Higgins never did. Vote by acclamation: In Favor: Mayor Wick, and Councilmembers Thompson, Haley, Higgins, Hattenburg, and Woodard. Opposed:Deputy Mayor Peetz. Motion carried. GENERAL PUBLIC COMMENT OPPORTUNITY [21: Mayor Wick invited public comment. Ms. Barb Howard, Spokane Valley: said she appreciates what Mr. Calhoun has done for the City, hates to see him leave and she thanked him for his work; she then announced that she would be running against; at which point Deputy Mayor Peetz called for a point of order, and Ms. Howard stopped her comments. Ms. Marshal Jones, Spokane Valley: extended thanks to Council and to Parks and Recreation and to Mr. Glenn Ritter and others for all the work they all are doing for Balfour Park;said there were several neighbors who couldn't be here tonight, including one with kids looking forward to the playground; said they are also looking forward to the library and appreciate the City working together with the Library to make a beautiful place; and she extended thanks to Council and staff for the work on Appleway Trail, and asked to please remember to have the trees watered. ADMINISTRATIVE REPORTS: 9. Community Development Block Grant(CDBG)Potential Projects—Chaz Bates Mr.Bates explained the application process and purpose of the CDBG grant program;he mentioned project selection and methodology such as identifying gaps in sidewalks; then went over the three suggested projects for inclusion in the process as well for the upcoming public hearing, i.e. the Park Road Broadway to Cataldo, Park Road Nora to Baldwin, and 4`1` Avenue, Eastern to Catherine Johnson Apartments; and there were no objections from Council for staff to include Park Road Broadway to Cataldo,and 4'E'Avenue, Eastern to the Catherine Johnson Apartments.It was also noted at an upcoming meeting, Council will have the opportunity to prioritize the projects.There were no objections to moving forward as proposed. 10. Balfour Park Design Update—Bill Helbig,John Bottelli Mr. Helbig noted the updated site plans distributed to Council tonight; said they are different as the consultant was still working on the project when this Council packet was distributed; he and Mr. Bottelli spoke of the phase 1 construction with estimated cost of$3 million,and showed what we can do with those funds.There was discussion about a veterans memorial or flagpole as that is not shown on the drawing.Mr. Council Meeting Minutes,Formal: 10-26-2021 Page 5 of 6 Approved by Council: 11-09-2021 Bottelli explained that the veterans memorial is not part of that $3 million for phase 1, with Mr. Helbig adding that the park will definitely have a flag pole, but the final design has not yet been vested. Deputy Mayor Peetz asked if there is a theme for the park, and she asked that they remember to include areas of shade,and lots of seating.Mr.Bottelli said a theme has not been discussed except for the downtown campus, and that this park will tie that together as it is in the heart of the city. Art sculptures were also mentioned and Mr. Bottelli said those details are still to be worked out; and the sculptures will be incorporated into a park design in a subsequent feature phase. Mr. Calhoun mentioned about time to fully vet the design and still be in a position to go out to bid in January with the library.After further brief discussion about amenities and concepts, it was noted by Mr. Bottelli that staff will be bringing forward more details in the future. 11. Code Text Amendment 2020-0006,Planned Residential Dev Regs—Jenny Nickerson Building Official Nickerson talked about the Planned Residential Development (PRD) regulations and of the ordinance adopted by Council last year, that established a one-year moratorium on submission, acceptance, processing,modification and approval of PRDs;that the concern was that the range of housing allowed within a PRD regulations is inconsistent and incompatible with surrounding existing uses in single family zoning districts; and after Ms. Nickerson explained the conclusions of the Planning Commission, there was no objection from Council in moving forward as proposed with Code Text Amendment 2020- 0006,which if approved, will eliminate SVMC Chapter 19.50, PRD regulations. 12. Advance Agenda—Mayor Wick Deputy Mayor Peetz suggested having an info only' report included in an upcoming agenda packet, about mandates and what our City can and can't do, or what is our jurisdiction or authority. A majority of Councilmembers agreed. 13. Department Reports The Department reports were for information only and were not reported or discussed. CITY MANAGER COMMENTS City Manager Calhoun reminded everyone that due to next week's election, there will be no Council meeting. EXECUTIVE SESSION: Potential Litigation IRCW 42.30.110(i)1 It was moved by Deputy Mayor Peetz and seconded that Council adjourn into executive session for approximately 15 minutes to discuss potential litigation, and that no action will be taken upon return to open session. Council adjourned into executive session at 7:44 p.m. At 7:56 p.m. Mayor Wick declared Council out of executive session, as which time it was moved, seconded and unanimously agreed to adjourn. C—)J2 A Ben Wick,Mayor Christine Bainbridge, City Clerk Council Meeting Minutes,Formal: 10-26-2021 Page 6 of 6 Approved by Council: 11-09-2021 Revised Item #1 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 26, 2021 Department Director Approval: iAI Check all that apply: ❑ consent ❑ old business ❑ new business ® public hearing ❑ information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: Public Hearing on the proposed 2021 Budget Amendment. GOVERNING LEGISLATION: In order for the City to amend an adopted budget, State law requires the Council to approve an ordinance that appropriates additional funds. PREVIOUS COUNCIL ACTION TAKEN: The Council last took formal action on the 2021 Budget when it was amended on May 18, 2021.. On October 12, 2021, an Administrative Report was delivered to Council regarding the need for a budget amendment. BACKGROUND: Since the amendment of the 2021 Budget on May 18, 2021, a number of events have transpired in the normal course of operations that necessitate a second 2021 Budget amendment. There have been two changes since the administrative report on October 12th. • First, the activity in Fund #314 was previously estimated to decrease substantially. The decrease was primarily due to a change in the way the Barker Rd project is being administered. The City has entered into an interlocal agreement with the Washington State Department of Transportation (WSDOT) to perform contract administration for the construction of the project. In that capacity, WSDOT is directly paying the construction contractor and drawing on the City's grants. The City then provides any local match above and beyond the grant proceeds to WSDOT. As such, the City was not recording the expenditures and related revenues for the project. Upon consultation with the State Auditor's Office, the City must record all expenditures and grant revenues even though they are not flowing through the City's books. As such, staff adjusted the original budget estimates for Fund #314 and related amounts in Fund #302 to reflect the updated costs. • Second, survey work for the Spokane Valley River Loop Trail is being moved up into 2021 in Fund #309, which affects the expenditures and revenues in that fund as well as expenditures in Fund #312. Proposed amendment items include: #001 - General Fund The total of both recurring and nonrecurring revenues reflects a decrease of $424,200, which is comprised of: • $464,200 decrease in district court passthrough fees in Public Safety revenues. These are fees the City collects on behalf of the State and Spokane County which are paid to those entities after collection. A change in accounting rules in 2020 necessitates accounting for these types of transactions in a Fiduciary Fund. This is the new Passthrough Fees and Taxes Fund #632 that is created with this budget amendment. • $40,000 increase for the remaining balance of a grant from the Department of Commerce to complete the Housing Action Pian. This was started in 2020 and completed in 2021. Revised Item #1 • October 26, 2021 — First reading of Ordinance #21-017 amending the 2021 Budget. • November 9, 2021 — Second reading of Ordinance #21-017 amending the 2021 Budget. BUDGET/FINANCIAL IMPACTS: , This action amends the estimated revenues and appropriations for the 2021 Budget that was adopted on December 8, 2020 and amended on May 18, 2021. There are adequate funds available to pay for these amendments. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: • Fund level line-item detail of revenues and expenditures. • Fund summaries for all funds affected by the proposed budget amendment. 6 Revised Item #1 A decrease of$426,003 in appropriations (expenditures) comprised of: • $12,000 increase rental costs in the City Manager Department to reserve shelter beds for the use of the City. • $485,900 decrease in the Public Safety Department to move the passthrough district court fees to the new Passthrough Fees and Taxes Fund#632 as described above under revenues. • $40,000 increase to complete the Housing Action Plan paid for by a grant from the Department of Commerce. This was started in 2020 and completed in 2021. • $7,897 increase in transfers to the Parks Capital Projects Fund#309 for residual costs related to the CenterPlace west lawn improvements and the CenterPlace roof replacement projects. #104— Hotel / Motel Tax—Tourism Facilities Fund Increase revenues by $868,660 including: • $187,000 increase reflecting updated estimates of lodging tax revenues. • $21,500 decrease in investment interest due to a decrease in interest rates. • $703,160 increase in transfers in from the Hotel/Motel Tax Fund #105. This increase reflects a Council motion on December 8, 2020, as part of the lodging tax grant process for the 2021 awards. This motion stated that the remainder of lodging tax collections in Fund #105 after 2020 and 2021 award payouts would be transferred to Fund #104 so that the ending fund balance in Fund #105 is approximately $165,000 at the end of 2021. #105 -- Hotel f Motel Tax Fund Increase revenues by $398,700 including an increase of $404,000 reflecting updated estimates of lodging tax revenues and a decrease of $5,300 in investment interest due to a decrease in interest rates. Increase expenditures by $676,160 including a decrease of $27,000 to reflect actual awards for 2021 lodging tax grants and an increase of $703,130 in transfers out to the Hotel/Motel Tax — Tourism Facilities Fund #104 (see explanation under Fund #104 above). #106 — Solid Waste Fund Increase transfers out to the Pavement Preservation Fund #311 by $37,776 due to 2020 receipts of the road wear administration fee related to the Waste Management collection contract exceeding previous estimates. #107 — PEG Fund Increase expenditures by $15,000 to replace broadcast equipment in Council Chambers. There are adequate reserves in Fund #107 to cover these costs. #301 — REET 1 Capital Projects Fund Real Estate Excise Tax (REET) revenue is increased by $1,000,000 based on revised revenue projections and investment interest is decreased by $22,000 due to a decrease in interest rates. #302 REET 2 Capital Projects Fund Real Estate Excise Tax (REET) revenue is increased by $1,000,000 based on revised revenue projections and investment interest is decreased by $19,500 due to a decrease in interest rates. Decrease expenditures by $466,871 due to changes in the expected transfers out to the Railroad Grade Separation Projects Fund #314 to reflect current estimates. 2 Revised Item #1 #303 — Street Capital Projects Fund Revenues and expenditures are proposed to increase by $94,000 to reflect current estimates on various sections of the Barker Road corridor. #309 — Park Capital Projects Fund This fund is being amended to reflect current estimates on several projects. Revenues are increased by $422,575 reflecting: • $7,897 increase in transfers in from the General Fund for residual costs related to the improvements to the CenterPlace west lawn and the replacement of the CenterPlace roof. • $414,678 increase in transfers in from the Capital Reserve Fund #312 for the Evergreen to Sullivan section of the Appleway Trail, improvements at Balfour Park, the water line at Sullivan Park, and the Spokane Valley River Loop Trail. Expenditures increase by $422,575, including: • An increase of$2,033 for residual costs on the Evergreen to Sullivan segment of the Appleway Trail to close out the project. • An increase of $5,124 for residual costs on the improvements to the CenterPlace west lawn. • An increase of $2,773 for residual costs on the replacement of the CenterPlace roof. • An increase of $367,503 for preliminary engineering costs for phase one of improvements at Balfour Park. • A decrease of $64,858 on the Sullivan Park water line reflecting a changing of the timing on the project. • An increase of$100,000 for preliminary engineering costs for the Spokane Valley River Loop Trail. #310 — Civic Facilities Capital Projects Fund Revenues are decreased by $2,300 to reflect a decrease in investment interest earnings. Expenditures are increased by $3,600 in transfers out to the Capital Reserve Fund #312. This amount reflects excess investment earnings that have accumulated in Fund #310. #311 — Pavement Preservation Fund Increase transfers in from the Solid Waste Fund#106 by $37,776 due to 2020 receipts of the road wear administration fee related to the Waste Management collection contract exceeding previous estimates. Decrease expenditures by $885,473 to reflect current estimates and timing on several projects including the Broadway Preservation project from Havana to Fancher and the Evergreen Preservation project. #312 — Capital Reserve Fund Revenues increase by $1,020,500 including: • $3,600 increase in transfers in from the Civic Facilities Capital Projects Fund #310 for excess interest earnings. • $109,400 increase for the proceeds from the sale of the Balfour horse arena. • $1,000,000 increase in grant proceeds from the RCO grant received for the Flora Rd park property. This grant is partially reimbursing Fund #312 for the cost of this purchase. • $92,500 decrease in investment interest due to a decrease in interest rates. 3 Revised Item #1 Increases expenditures/appropriations of $3,585,635 include: • Increase of $14,000 in transfers to the Street Capital Projects Fund #303 for sections of the Barker Road corridor. • Increases of$414,678 in transfers out to the Parks Capital Projects Fund #309 for the Evergreen to Sullivan section of the Appleway Trail, improvements to Balfour Park, the water line at Sullivan Park, and the Spokane Valley River Loop Trail. • Increases of$921,957 in transfers out to the Railroad Grade Separation Projects Fund #314 for the Barker Rd overpass, the Pines Rd underpass, and the Sullivan Rd interchange. • $2,225,000 for the purchase property on Sprague Ave. for potential Precinct use. #314-- Railroad Grade Separation Projects Fund Revenues increase by $1,849,586, comprised of: • Increase of$1,394,500 in grant proceeds to reflect current estimates on the Pines Road grade separation projects. • Decreases of$466,871 in transfers in from the REET 2 Capital Projects Fund #302 for the Barker Road grade separation project. • Increase of$921,957 in transfers in from the Capital Reserve Fund #312 for the Barker Road grade separation project, the Pines Road grade separation project, and the Sullivan Road interchange. Expenditures increase by $359,834, comprised of: • Increase of$284,834 due to updated estimates for the Barker Road grade separation project. • Increase of$75,000 for preliminary engineering for the Sullivan Road interchange project. #315 —Transportation Impact Fees Fund This is a new fund that is being created to account for the transportation impact fees implemented by the City beginning in 2021. The fees are restricted by law and therefore must be separately tracked. Revenues increase by $150,000 in estimated transportation impact fee collections for 2021, and expenditures increase by $80,000 in transfers out to the Street Capital Projects Fund #303 for use on eligible capital projects. #316 — Economic Development Capital Projects Fund This is a new fund that is being created to account for capital projects undertaken by the City for economic development purposes. The first project being accounted for in this fund is the new Expo Center building at the Spokane County Fairgrounds. Revenues increase by $10,000 in transfers in from the Capital Reserve Fund #312 for the fairgrounds building, and expenditures increase by $10,000 for preliminary design work for the new Expo Center building. #402 — Stormwater Fund Expenditures increase by $160,000 related to updated estimates and timing on capital projects. #403 —Aquifer Protection Area Fund Revenues decrease by $628,000 consisting of $615,000 in grant proceeds related to updated estimates on construction projects and $13,000 in investment interest. 4 Revised Item #1 Provide additional appropriations (expenditures) of $580,431 including updated estimates on construction projects such as the Regional Decant Facility canopy, the Appleway Stormwater Improvements project, and various pavement preservation projects with aquifer protection updates. #632 — Passthrouqh Fees & Taxes Fund This is a new Fiduciary Fund that is required due to a change in accounting rules. The City receives district court fees that are assessed by the State and Spokane County. These fees are required to be paid to the State or County when received. The City also collects sales taxes and leasehold excise taxes on behalf of the State, which are then remitted quarterly. Revenues increase $399,687 in estimated passthrough fees and taxes that will be collected on behalf of the State and County. Expenditures increase by $400,000 in estimated fees and taxes that will be remitted to the State and County from the passthrough collections. The 2021 Budget amendment reflects the changes noted above and will affect 18 funds resulting in total revenue increases of $6,155,484 and expenditure increases of $4,646,664. The amendment will also create three new funds -- the Transportation Impact Fees Fund #315, the Economic Development Capital Projects Fund #316, and the Passthrough Fees & Taxes Fund #632. Revenue Expenditure Fund Fund Increase Increase No. Name (Decrease) (Decrease) 001 General Fund (424,200) (426,003) 104 HotelMotel Tax -Tourism Facilities Fund 868,660 0 105 HotelMotel Tax Fund 398,700 676,160 106 Solid Waste Fund 0 37,776 107 PEG Fund 0 15,000 301 REST 1 Capita! Projects Fund 978,000 0 302 REET2 Capital Projects Fund 980,500 (466,871) 303 Street Capital Projects Fund 94,000 94,000 309 Parks Capital Projects Fund 422,575 422,575 310 Civic Facilities Capital Projects Fund (2,300) 3,600 311 Pavement Preservation Fund 37,776 (885,473) 312 Capital Reserve Fund 1,020,500 3,585,635 314 Railroad Grade Separation Fund 1,849,586 359,834 315 Tranportation Impact Fees Fund 150,000 80,000 316 Economic Development Capital Projects Fu 10,000 10,000 402 Stormwater Fund . 0 160,000 403 Aquifer Protection Area Fund (628,000) 580,431 632 Passthrough Fees & Taxes Fund 399,687 400,000 6,155,484 4,646,664 OPTIONS: Future options are to accept the proposed amendments in whole or in-part. RECOMMENDED ACTION OR MOTION: The purpose of this evening's public hearing is to consider input from the public on the proposed budget amendment and no action is required of Council at this time. Anticipated future action by the Council includes: 5 PAFinance12021 Budget\BudgetAmendment\Amendment#212021 10 26 Public Hearing&1st Reading\Public Hearing12021 Amendment No 2 Detail v2 for RCA CITY OF SPOKANE VALLEY,WA 10/26/2021 2021 Budget-Amendment#2 Line Item Detail Account Account Initial Amended Description Number Description 1 Justification Budget Amendment Budget #001-General Fund Recurring Revenues District Court Passthrough 001.016.000.389.30.xx - Passthrough amounts moved to Fiduciary Fund #632 464,200 (464,20D) 0 Total recurring revenues (464,200) Recurring Expenditures Shelter Space Rental 001.013.000.565.40.45.00 - Reserve shelter beds for City use 0 12,000 12,000 District Court Passthrough 001.016.000.586.30.xx.xx - Passthrough amounts moved to Fiduciary Fund #632 485,900 (485,900) 0 Total recurring expenditures (473,900) Nonrecurring Revenues Grant Proceeds 001.040.319.334.04.20 - Grant for Housing Action Plan 49,000 40,000 89,000 Total nonrecurring revenues 40,000 Nonrecurring Expenditures Professional Services 001.040.334.558.60.41.05 - Housing Action Plan study 0 40,000 40,000 Transfer out-#309 001.090.099.597.30.00.90 -CenterPlace west lawn improvements-costs moved from prior year due to project timing 14,876 5,124 20,000 Transfer out-#309 001.090.099.597.30.00.90 -CenterPlaceroofreplacement-costsmoved from prior year due to project timing 12,227 2,773 15,000 Total nonrecurring expenditures 47,897 Total of all General Fund revenues (424,200) ,Total of all General Fund expenditures (426,003) Page 1 of 7 P:IFinance12021 Budget\Budget AmendrnentlAmendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing12021 Amendment No 2 Detail v2 for RCA CITY OF SPOKANE VALLEY,WA 10/26/2021 2021 Budget-Amendment#2 Line Item Detail Account Account Initial Amended Description Number Description/Justification Budget Amendment Budget `#104-Hotel/Motel Tax-Tourism Facilities Fund Revenues Hotel/Motel Tax 104.000,000.313.31.01 -Estimated increase in collections 213,000 187,000 400,000 Investment Interest 104.000.000.361,11.00 - Decrease due to economic conditions 24,000 (21,500) 2,500 Transfers in-#105 104.000.000.397.13.50 -Transfer based on Council action in 2020 453,840 703,160 1,157,000 Total revenues 868,660 #105-Hotel'Motei Tax Fund Revenues Hotel/Motel Tax 105.105.000.313.31.00 - Estimated increase in collections 346,000 404,000 750,000 Investment Interest 105.105.000.361.11.0D - Decrease due to economic conditions 6,000 (5,300) 700 Total revenues 398,700 Expenditures Tourism Promotion 105.105.000.557.30.41.00 - Decrease in spending due to COVID-19 224,400 (27,300) 197,400 Transfers out-#104 105.105.000.597.10.00.40 -Transfer based on Council action in 2020 453,840 703,160 1,157,000 Total expenditures 676,160 #106-Solid Waste Fund Expenditures Transfer out-#311 106.000.000.597.31.00.10 -2019 road wear fee in excess of estimates 1,500,000 37,776 1,537,776 Total expenditures 37,776 #1D7-PEG Fund Expenditures Capital Outlay 107.000.000.594.11.64.02 - Replace broadcast equipment in Council Chambers 33,500 15,000 48,500 Total expenditures 15,000 Page 2 of 7 P:1Finance12021 Budget\Budget Amendment'Amendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing12021 Amendment No 2 Detail v2 for RCA CITY OF SPOKANE VALLEY,WA 10/26/2021 2021 Budget-Amendment#2 Line Item Detail Account Account Initial Amended Description Number Description/Justification Budget Amendment Budget #301-REET 1 Capital Projects Fund Revenues REET 1 -Taxes 301.301.000.318.34.00 - Estimated increase in collections 1,000,000 1,000,000 2,000,000 investment Interest 301.301.000.361.11.00 - Decrease due to economic conditions 25,000 (22,000) 3,000 Total revenues 978,000 #302-REET 2 Capital Projects Fund Revenues REST 2-Taxes 302.302.000.318.35.00 - Estimated increase in collections 1,000,000 1,000,000 2,000,000 Investment Interest 302.302.000.361.11.00 - Decrease due to economic conditions 25,000 (19,500) 5,500 Total revenues 980,500 Expenditures Transfer out-#314 302.000.000.597.31.04.40 - Updated construction project estimates 1,127,387 (466,871) 660,518 Total expenditures (466,8711 #303-Street Capital Projects Fund Revenues Transfer in-#312 303.000.275.397.31.20 - Barker Rd Widening-River to Euclid 0 14,000 14,000 Transfer in-#315 303.000.329.397.31.50 - Barker Rd Imp-City Limits to Appleway 0 80,000 80,D00 Total revenues 94,004`` Expenditures Barker Rd-River to Euclid 303.000.275.595.)x.xx.xx -2021 Construction Costs 1,132,320 14,000 1,146,320 Barker Rd Imp-City Limits to Appleway 303.000.329.595.xx.ocxx -2021 Construction Costs 0 80,000 8.0,000 Total expenditures 94,0001 • Page 3 of 7 P:1Fnance12021 Budget\BudgetAmendment\Amendment#212021 10 26 Public Nearing&1st Reading\Public Hearing12021 Amendment No 2 Detail v2 for RCA CITY OF SPOKANE VALLEY,WA 10/26/2021 2021 Budget-Amendment#2 Line Item Detail Account Account Initial Amended Description Number Description 1 Justification _ Budget Amendment Budget #309-Park Capital Projects Fund Revenues Transfer in-#001 309.000.xxx.397.00.10 -CenterPlace West Lawn,CenterPlace roof 187,103 7,897 195,000 Appleway Trail,Balfour Park Imp,Sullivan Park Transfer in-#312 309.000.xc.397.31.20 water line,Spokane Valley River Loop Trail 718,008 414,678 1,132,686 Total revenues 422,575 Expenditures Appleway Trail-Evergreen to Sullivan 309.000.268.595.xx.xx.xx -2021 Construction Costs 0 2,033 2,033 CenterPlace West Lawn Improvements 309.000.304.595.xx.xx.xx -2021 Construction Costs 14,876 5,124 20,000 CenterPlace Roof Replacement 309.000.305.595.xx.xx.xx -2021 Construction Costs 12,227 2,773 15,000 Balfour Park-Phase 1 309.000.316.595.xx.xx.xx -2021 Construction Costs 0 367,503 367,503 Sullivan Park water line 309.000.xxx.595.xx.xx.xx -2021 Construction Costs 152,858 (54,858) 98,000 Spokane Valley River Loop Trail 309.000.xxx.595.xx.xx.xx -2021 Construction Costs 0 100,000 100,000 Total expenditures 422.575 #310-Civic Facilities Capital Projects Fund Revenues Investment Interest 310.310.000.361.11.00 - Decrease due to economic conditions 3,100 (2,300) 800 Total revenues (2,300)1 Expenditures Transfer out-#312 310.000.000.597.31.00.20 - Excess interest income 0 3,600 3,600 Total expenditures 3,600' #311-Pavement Preservation Fund Revenues Transfer in-#106 311.000.000.397.10.60 -2020 road wear fee in excess of estimates 1,500,000 37,776 1,537,776 Total revenues 37,776 Expenditures Pavement Preservation Capital Outlay 311.000.xxx.595.xx.xx.xx -2021 Construction Costs 4,726,350 (885,473) 3,840,877 Total expenditures (885,473) • Page 4 of 7 P:1Finance12021 Budget\Budget Amendment'Amendment#212021 10 26 Public Hearing&1st Reading\Public Hearing12021 Amendment No 2 Detail v2 for RCA CITY OF SPOKANE VALLEY,WA 10126/2021 2021 Budget-Amendment#2 Line Item Detail Account Account Initial Amended Description Number Description 1 Justification Budget Amendment , Budget #312-Capital Reserve Fund Revenues Transfer in-#310 312.000.000.397.31.00 - Excess interest income 0 3,600 3,600 Proceeds from sale of land 312.000.000.395.10.02 - Sale of Balfour Horse Arena 0 109,400 109,400 Grant Proceeds 312.000.000.334.02.70 - RCO grant for Flora Rd park property 0 1,000,000 1,000,000 Investment Interest 312.000.000.361.11.00 - Decrease due to economic conditions 100,000 (92,500) 7,500 Total revenues 1,020,500 Expenditures Transfer out-#303 312.000.000.597.30.00.30 - Barker Rd Corridor 0 14,000 14,000 Transfer out-#309 312.000.000.597.30.00.90 -Appleway Trail-Evergreen to Sullivan 0 2,033 2,033 Transfer out-#309 312.000.000.597.30.00.90 -Balfour Park improvements-Phase 1 0 367,503 367,503 Transfer out-#309 312.000.000.597.30.00.90 -Sullivan Park water line 152,858 (54,858) 98,000 Transfer out-#309 312.000,000.597.30.00.90 -Spokane Valley River Loop Trail 0 100,000 100,000 Transfer out-#314 312,000.000.597.31.00.40 - Pines Rd Underpass 64,192 562,123 626,315 Transfer out-#314 312.000.000.597.31.00.40 -Barker Rd Overpass 411,582 284,834 696,416 Transfer out-#314 312.000.000.597.31.00.40 -Sullivan Rd Interchange 250,000 75,000 325,000 Transfer out-#316 312.000.000.597.31.00.60 - Fairgrounds Building 0 10,000 10,000 Public Safety Land Acquisition 312.000.000.594.21.61.00 -Sprague Ave.Land Acquisition 0 2,225,000 2,225,000 Total expenditures 3,585,6351i #314-Railroad Grade Separation Projects Fund Revenues Grant Proceeds 314.000.xxx.330.00.00 - Updated construction project estimates 11,508,819 1,394,500 12,903,319 Transfer in-#302 314.000.143.397.30.10 - Barker Rd Grade Separation Project 1,127,387 (466,871) 660,516 - Pines Rd Underpass,Barker Rd Overpass, - Transfer in-##312 314.000.223.397.31.20 Sullivan Interchange 725,774 921,957 1,647,731 Total revenues 1,849,586 i Expenditures Barker BNSF Grade Separation 314.000.143.595.xx.xx.xx -2021 Construction Costs 9,396,870 284,834 9,681,704 Pines Rd Underpass 314.000.223.595.xx.xx.xx -2021 Construction Costs 4,149,450 0 4,149,450 Sullivan Rd Interchange 314.000.311.595.xx.o io -2021 Construction Costs 250,000 75,000 325,000 Total expenditures 359,834 #315-Transportation Impact Fees Fund Page 5 of 7 P.1Finance12021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing\2021 Amendment No 2 Detail v2 for RCA CITY OF SPOKANE VALLEY,WA 10/26/2021 2021 Budget-Amendment#2 Line Item Detail Account Account Initial Amended Description Number Description/Justification Budget Amendment Budget Revenues Transportation Impact Fees 315.000.000.345.85.01 - Estimate for new transportation impact fees 0 150,000 150,000 Total revenues 150,000 Expenditures Transfer out-#303 315.000.000.597.30.00.30 -2021 Construction Costs 0 80,000 80,000 Total expenditures 80,000 #316-Economic Development Capital Projects Fund Revenues Transfer In-#312 316.000.000.397.31.20 - Fairgrounds Building 0 10,000 10,000 Total revenues 10,000 Expenditures Fairgrounds Building 316.000.xxx.595.xx.o -2021 Construction Costs 0 10,000 10,000 Total expenditures 10,000 #402-Stormwater Fund Expenditures Capital Outlay 402.000.xxx.595.xx.xx.xx -2021 Construction Costs 500,000 160,006 660,000 Total expenditures 160,000 #403-Aquifer Protection Area Fund Revenues Grant Proceeds 403.000m.374.03.80 - Updated construction project estimates 2,122,045 (615,000) 1,507,045 Investment Interest 403.403.000,361.11.00 - Decrease due to economic conditions 15,000 (13,000) 2,000 Total revenues (628,000) Expenditures Capital Projects 403,000,xxx.595.40.63.00 -2021 Construction Costs 2,378,109 580,431 2,958,540 Total expenditures 580,431 Page 6 of 7 P:1Finance12021 Budget\Budget AmendmentlAmendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing12021 Amendment No 2 Detail v2 for RCA CITY OF SPOKANE VALLEY,WA 10/26/2021 2021 Budget-Amendment#2 Line Item Detail Account Account Initial Amended Description Number Description I Justification Budget Amendment Budget #632-Passthrough Fees&Taxes Fund Revenues Passthrough Fees&Taxes 632.000.000.389.30.xx - Fees&taxes collected on behalf of others 0 399,687 399,687 Total revenues 399,68T! Expenditures Passthrough Fees&Taxes 632.000.000.589.30ic o - Fees&taxes collected on behalf of others 0 400,000 400,000 Total expenditures 400,000 Totals Across all Funds Total revenues 6,155,484 Total expenditures 4,646,664 Page 7 of 7 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing& 1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OF SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 As 1st 2nd As Adopted Amendment Amendment_ Amended #U01 -GENERAL FUND RECURRING ACTIVITY Revenues Property Tax 12,724,200 0 0 12,724,200 Sales Tax 22,220,000 2,980,000 0 25,200,000 Sales Tax- Public Safety 1,054,800 105,200 0 1,160,000 Sales Tax-Criminal Justice 1,862,400 177,600 0 2,040,000 Gambling Tax and Leasehold Excise Tax 384,000 0 0 384,000 Franchise Fees/Business Registration 1,215,000 0 0 1,215,000 State Shared Revenues 1,760,000 0 0 1,760,000 Fines and Forfeitures/Public Safety 1,010,200 0 (464,200) 546,000 Community and Public Works 1,908,719 0 0 1,908,719 Recreation Program Revenues 643,600 0 0 643,600 Grant Proceeds 0 0 0 0 Miscellaneous Department Revenue 21,000 0 0 21,000 Miscellaneous & Investment Interest 592,500 0 0 592,500 Transfers in -#105 (him tax-CP advertising) 30,000 0 0 30,000 Total Recurring Revenues 45,426,419 3,262,800 (464,200) 48,225,019 Expenditures City Council 631,566 7,106 0 638,672 City Manager 1,158,089 5,750 12,000 1,175,839 City Attorney 718,593 0 0 718,593 Public Safety 28,101,615 282,146 (485,900) 27,897,861 Deputy City Manager 284,844 0 0 284,844 Finance/IT 1,500,659 0 0 1,500,659 Human Resources 318,540 0 0 318,540 City Hall Operations and Maintenance 301,093 72,508 0 373,601 Community& Public Works- Engineering 2,098,642 0 0 2,098,642 Community& Public Works- Economic Dev 1,045,762 51,299 0 1,097,061 Community& Public Works- Building & Planning 2,487,066 (72,508) 0 2,414,558 Parks& Rec-Administration 356,467 (1,040) 0 355,427 Parks & Rec-Maintenance 940,003 0 0 940,003 Parks & Rec-Recreation 328,534 0 0 328,534 Parks & Rec-Aquatics 510,053 0 0 510,053 Parks & Rec-Senior Center 35,403 0 0 35,403 Parks & Rec-CenterPlace 972,214 0 0 972,214 General Government 1,297,380 0 0 1,297,380 Transfers out-#204(2016 LTGO debt service) 401,500 0 0 401,500 Transfers out-#309(park capital projects) 160,000 0 0 160,000 Transfers out-#311 (pavement preservation) 991,843 0 0 991,843 Transfers out-#501 (CenterPlace kitchen reserve) 36,600 0 0 36,600 Transfers out-#502 (insurance premium) 425,000 0 0 425,000 Total Recurring Expenditures 45,101,466 345,261 (473,900) 44,972,827 Recurring Revenues Over(Under) Recurring Expenditures 324,953 2,917,539 9,700 3,252,192 Page 1 of 10 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OF SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 As 1st 2nd As Adopted Amendment Amendment Amended • #101 -GENERAL FUND -continued NONRECURRING ACTIVITY Revenues Grant Proceeds 25,000 24,000 40,000 89,000 Reimbursement of chamber wall repairs 0 0 0 0 Transfers in-#312 (police vehicle replacements) 0 0 0 0 Total Nonrecurring Revenues 25,000 24,000 40,000 89,000 Expenditures General Government- IT capital replacements 212,800 0 0 212,800 City Manager(office furniture for Housing Sery emplc 0 5,000 0 5,000 City Manager(office furniture for Project Manager err, 0 0 0 0 Public Safety (replace HVAC units at Precinct) 0 62,000 0 62,000 Public Safety (replace handguns) 37,500 0 0 37,500 Public Safety (2 radar trailers) 11,400 0 0 11,400 Public Safety (Precinct access control gate) 20,000 0 0 20,000 Public Safety (Precinct fire panel replacement) 10,000 0 0 10,000 Public Safety (DEMS/Tasers/BodyCams) 0 109,608 0 109,608 Public Safety(vehicle for homeless services officer) 0 0 0 0 Public Safety(replace carpet at Precinct) 0 0 0 0 Public Safety(repaint Precinct exterior) 0 0 0 0 Public Safety(tree&debris removal from back lot) 0 0 0 0 Public Safety (police vehicle replacements) 0 0 0 0 Economic Dev (Commerce Housing Action Plan) 0 0 40,000 40,000 Economic Dev (Ecology SMP Update) 25,000 0 0 25,000 Parks& Rec(repaint portico at CenterPlace) 0 0 0 0 Parks& Rec(replace carpet at CenterPlace) 0 0 0 0 Parks& Rec(repair plumbing systems at pools) 0 0 0 0 Windstorm 2021 Cleanup Costs 0 32,000 0 32,000 Financial Software Capita! Costs 0 0 0 0 Transfers out-#101 (Street Fund operations) 1,859,600 693,000 0 2,552,600 Transfers out-#122 (replenish reserve) 0 364,440 0 364,440 Transfers out-#309 (CenferPlace west lawn) 0 14,876 5,124 20,000 Transfers out-#309 (CenterPlace roof repairs) 0 12,227 2,773 15,000 Transfers out-#312 ('19 fund bal>50%) 0 11,126,343 0 11,126,343 Transfers out-#501 (vehicle for Code Enf Supervise 0 0 0 0 Total Nonrecurring Expenditures 2,176,300 12,419,494 47,897 14,643,691 Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (2,151,300) (12,395,494) (7,897) (14,554,691) Excess (Deficit)of Total Revenues Over(Under)Total Expenditures (1,826,347) (9,477,955) 1,803 (11,302,499) Beginning unrestricted fund balance 42,516,032 42,516,032 Ending unrestricted fund balance -40,689,685 31,213,533 Fund balance as a percent of recurring expenditures ` 90.22% 69.41% Page 2 of 10 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing& 1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OF SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 As 1st 2nd As Adopted Amendment Amendment Amended SPECIAL REVENUE FUNDS #104- HOTEL/MOTEL TAX-TOURISM FACILITIES FUND Revenues Hotel/Motel Tax 213,000 0 187,000 400,000 Investment Interest 24,000 0 (21,500) 2,500 Transfers in -#105 453,840 0 703,160 1,157,000 Total revenues 690,840 0 868,660 1,559,500 Expenditures Capital Outlay 0 0 0 0 Total expenditures 0 0 0 0 Revenues over(under) expenditures 690,840 1,559,500 Beginning fund balance 2,986,573 2,986,573 Ending fund balance 3,677,413 4,546,073 #105-HOTEL/MOTEL TAX FUND Revenues Hotel/Motel Tax 346,000 0 404,000 750,000 Investment Interest 6,000 0 (5,300) 700 Total revenues 352,000 0 398,700 750,700 Expenditures Transfers out-#001 30,000 0 0 30,000 Transfers out-#104 453,840 0 703,160 1,157,000 Tourism Promotion 224,400 0 (27,000) 197,400 Total expenditures 708,240 0 676,160 1,384,400 Revenues over(under) expenditures (356,240) (633,700) Beginning fund balance 798,716 798,716 Ending fund balance 442,476 - 165,016 #106-SOLID WASTE FUND Revenues Solid Waste Administrative Fee 225,000 0 0 225,000 Solid Waste Road Wear Fee 1,500,000 0 0 1,500,000 Investment Interest 12,000 0 0 12,000 Total revenues 1,737,000 0 0 1,737,000 Expenditures Education/Contract Admin 237,000 0 0 237,000 Transfers out-#311 1,500,000 0 37,776 1,537,776 Total expenditures 1,737,000 0 37,776 1,774,776 Revenues over(under) expenditures 0 (37,776) Beginning fund balance 726,788 726,788 Ending fund balance 726,788 689,012 Page 3 of 10 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 • CITY OF SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 As 1st 2nd As Adopted Amendment Amendment_ Amended SPECIAL REVENUE FUNDS #107- PEG FUND Revenues Comcast PEG contribution 79,000 0 0 79,000 Investment Interest 0 0 0 0 Total revenues 79,000 0 0 79,000 Expenditures PEG Reimbursement-CMTV 39,500 0 0 39,500 Capital Outlay 33,500 0 15,000 48,500 Total expenditures 73,000 0 15,000 88,000 Revenues over(under) expenditures 6,000 (9,000) Beginning fund balance 181,773 181,773 Ending fund balance 187,773 172,773 CAPITAL PROJECTS FUNDS #301 -REET 1 CAPITAL PROJECTS FUND- Revenues REET 1 -Taxes 1,000,000 0 1,000,000 2,000,000 Investment Interest 25,000 0 (22,000) 3,000 Total revenues 1,025,000 0 978,000 2,003,000 Expenditures Transfers out-#204 80,775 0 0 80,775 Transfers out-#303 316,620 0 0 316,620 Transfers out-#311 (pavement preservation) 827,278 0 0 827,278 Total expenditures 1,224,673 0 0 1,224,673 Revenues over(under) expenditures (199,673) 778,327 Beginning fund balance 2,048,068 2,048,068 Ending fund balance 1,848,395 2,826,395 #302-REET 2 CAPITAL PROJECTS FUND Revenues REET 2-Taxes 1,000,000 0 1,000,000 2,000,000 Investment Interest 25,000 0 (19,500) 5,500 Total revenues 1,025,000 0 980,500 2,005,500 Expenditures Transfers out-#204 80,775 0 0 80,775 Transfers out-#303 1,662,684 0 0 1,662,684 Transfers out-#311 (pavement preservation) 827,279 0 0 827,279 Transfers out-#314 1,127,387 0 (466,871) 660,516 Total expenditures 3,698,125 0 (466,871) 3,231,254 Revenues over(under) expenditures (2,673,125) (1,225,754) Beginning fund balance 5,165,924 5,165,924 Ending fund balance 2,492,799 3,940,170 Page 4 of 10 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OI✓ SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 As 1st 2nd As Adopted Amendment Amendment Amended CAPITAL PROJECTS FUNDS-continued #303-STREET CAPITAL PROJECTS FUND Revenues Grant Proceeds 6,843,308 0 0 6,843,308 Developer 53,703 0 0 53,703 Transfers in -#301 316,620 0 0 316,620 Transfers in -#302 1,662,684 0 0 1,662,684 Transfers in -#312 0 0 14,000 14,000 Transfers in-#315 0 0 80,000 80,000 Total revenues 8,876,315 0 94,000 8,970,315 Expenditures 205 Sprague/Barker Intersections Improvement 329,453 0 0 329,453 249 Sullivan/Wellesley Intersection 1,020,522 0 0 1,020,522 267 Mission Ave Sidewalk 11,310 0 0 11,310 275 Barker Rd Widening-River to Euclid 1,132,320 0 14,000 1,146,320 285 Indiana Ave Pres- Evergreen to Sullivan 7,210 0 0 7,210 293 2018 CSS Citywide Reflective Signal BP 74,250 0 0 74,250 294 Citywide Reflective Signal Post Panels 17,875 0 0 17,875 299 Argonne Rd Concrete Pvmt Indiana to Mont 2,392,450 0 0 2,392,450 300 Pines and Mission Intersection Improvement 498,000 0 0 498,000 301 Park and Mission Intersection Improvements 693,000 0 0 693,000 310 Sullivan Rd Overcrossing UP RR ❑eck Repl 317,625 0 0 317,625 313 Barker Rd/Union Pacific Crossing 1,312,500 0 0 1,312,500 318 Wilbur Sidewalk- Boone to Mission 50,000 0 0 50,000 320 Sullivan Preservation- Sprague to 8th 19,800 0 0 19,800 326 2020 Citywide Retroreflective Post Plates 0 0 0 0 329 Barker Road Imp- City Limits to Appleway 0 0 80,000 80,000 Mission Ave over Evergreen Deck Repair 0 0 0 0 School zone beacons 0 0 0 0 Contingency 1,000,000 0 0 1,000,000 Total expenditures 8,876,315 0 94,000 8,970,315 Revenues over(under) expenditures 0 0 Beginning fund balance 67,402 67,402 Ending fund balance 67,402 67,402 Note: Work performed for pavement preservation projects out of the Street Capital Projects Fund is for items such as sidewalk upgrades that the were bid with the pavement preservation work. • Page 5 of 10 • P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing& 1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OF SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 As 1st 2nd As Adopted Amendment Amendment Amended CAPITAL PROJECTS FUNDS-continued #309 -PARK CAPITAL PROJECTS FUND Revenues Grant Proceeds 480,530 44,730 0 525,260 Transfers in -#001 160,000 27,103 7,897 195,000 Transfers in -#312 565,150 152,858 414,678 1,132,686 Total revenues 1,205,680 224,691 422,575 1,852,946 Expenditures 268 Appleway Trail (Evergreen to Sullivan) 0 0 2,033 2,033 304 CenterPlace west lawn improvements-Ph. 2 0 14,876 5,124 20,000 305 CenterPlace roof repairs 0 12,227 2,773 15,000 314 Balfour Park frontage improvements 565,150 0 0 565,150 315 Browns Park improvements 2020 499,805 204,926 0 704,731 316 Balfour Park improvements Phase 1 0 0 367,503 367,503 Install stage fill speakers Great Room 6,346 0 0 6,346 Repair failed pixels Great Room 6,505 0 0 6,505 Reprogram Great Room AN System 12,499 0 0 12,499 Repair/replace siding at Mirabeau restroom 30,000 0 0 30,000 Sullivan Park water line 0 152,858 (54,858) 98,000 Replace pond liner at Mirabeau 0 0 0 0 Spokane Valley River Loop Trail 0 0 100,000 100,000 Total expenditures 1,120,305 384,887 422,575 1,927,767 Revenues over(under) expenditures 85,375 (74,821) Beginning fund balance 75,577 75,577 Ending fund balance 160,952 756 #310 -CIVIC FACILITIES CAPITAL PROJECTS FUND Revenues Investment interest 3,100 0 (2,300) 800 Total revenues 3,100 0 (2,300) 800 Expenditures Miscellaneous 0 0 0 0 Transfers out-#312 0 0 3,600 3,600 Total expenditures 0 0 3,600 3,600 Revenues over(under) expenditures 3,100 (2,800) Beginning fund balance 842,964 842,964 Ending fund balance 846,064 840,164 Note: The fund balance in#310 includes$839,281.10 paid by the Library District for 2.82 acres at the Balfour Park site. if the District does not succeed in getting a voted bond approved by October 2022 then the City may repurchase this land at the original sale price of$839,285.10. Page 6 of 10 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OF SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 As 1st ' 2nd As Adopted Amendment Amendment_ Amended 'CAPITAL PROJECTS FUNDS -continued _ #311 - PAVEMENT PRESERVATION Revenues Transfers in-#001 991,843 0 0 991,843 Transfers in -#106 1,500,000 0 37,776 1,537,776 Transfers in -#301 827,278 0 0 827,278 Transfers in -#302 827,279 0 0 827,279 Grant Proceeds 0 0 0 0 Total revenues 4,146,400 0 37,776 4,184,176 Expenditures Pavement preservation 4,676,350 0 (885,473) 3,790,877 Pre-project GeoTech 50,000 0 0 50,000 Total expenditures 4,726,350 0 (885,473) 3,840,877 Revenues over(under) expenditures (579,950) 343,299 Beginning fund balance 5,792,145 5,792,145 Ending fund balance 5,212,195 6,135,444 #312-CAPITAL RESERVE FUND • Revenues Transfers in-#001 ('19 fund bal>50%) 0 11,126,343 0 11,126,343 Transfers in -#310 (excess interest earnings) 0 0 3,600 3,600 Proceeds from sale of land 0 0 109,400 109,400 Grant Proceeds 0 0 1,000,000 1,000,000 Investment Interest 100,000 0 (92,500) 7,500 Total revenues 100,000 11,126,343 1,020,500 12,246,843 Expenditures Transfers out-#001 (police vehicle replacements) 0 0 0 0 Transfers out-#303 (Barker Corridor) 0 0 14,000 14,000 Transfers out-#303 (school zone beacons) 0 0 0 0 Transfers out-#309 (Appleway Trail-Sullivan to Ev 0 0 2,033 2,033 Transfers out-#309 (Balfour Park frontage improve! 565,150 0 0 565,150 Transfers out-#309 (Balfour Park Improvements Ph 0 0 367,503 367,503 ' Transfers out-#309 (Sullivan Park water line) 0 152,858 (54,858) 98,000 Transfers out-#309 (Spokane Valley River Loop Trt 0 0 100,000 100,000 Transfers out-#314 (Pines Rd Underpass) 64,192 0 562,123 626,315 Transfers out-#314 (Barker Rd Overpass) 411,582 0 284,834 696,416 Transfers out-#314(Sullivan Rd Interchange) 250,000 0 75,000 325,000 Transfers out-#316(Fairgrounds Building) 0 0 10,000 10,000 WSDOT Sullivan Park Property Acquisition 759,600 0 0 759,600 Flora & MontgomeryTrailhead Land Acquisition 0 300,000 0 300,000 Ponderosa Park Land Acquisition 0 1,600,000 0 1,600,000 Sprague Ave Land Acquisition 0 0 2,225,000 2,225,000 Total expenditures 2,050,524 2,052,858 3,585,635 7,689,017 Revenues over(under) expenditures (1,950,524) 4,557,826 Beginning fund balance 8,503,764 8,503,764 Ending fund balance 6,553,240 13,061,590 Page 7 of 10 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing&1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OF SPOKANE VALLEY, WA 10I26/2021 2021 Budget Amendment 2021 As 1st 2nd As Adopted Amendment Amendment Amended CAPITAL PROJECTS FUNDS-continued #314-RAILROAD GRADE SEPARATION PROJECTS FUND Revenues Grant Proceeds 11,508,819 0 1,394,500 12,903,319 Developer Contributions 0 0 0 0 Transfers in#302 1,127,387 0 (466,871) 660,516 Transfers in#312 725,774 0 921,957 1,647,731 Total revenues 13,361,980 0 1,849,586 15,211,566 Expenditures 143 Barker BNSF Grade Separation 9,396,870 0 284,834 9,681,704 223 Pines Rd Underpass 4,149,450 0 0 4,149,450 311 Sullivan Rd Interchange 250,000 0 75,000 325,000 Total expenditures 13,796,320 0 359,834 14,156,154 Revenues over(under) expenditures (434,340) 1,055,412 Beginning fund balance 793,526 793,526 Ending fund balance 359,186 1,848,938 #315 -TRANSPORTATION IMPACT FEES FUND Revenues Transportation Impact Fees 0 0 150,000 150,000 Total revenues 0 0 150,000 150,000 Expenditures Transfers out-#303 0 0 80,000 80,000 Total expenditures 0 0 80,000 80,000 Revenues over(under) expenditures 0 70,000 Beginning fund balance 0 0 Ending fund balance 0 70,000 #316 - ECONOMIC DEVELOPMENT CAPITAL PROJECTS FUND Revenues Transfer in-#312 (fairgrounds building) 0 0 10,000 10,000 Total revenues 0 0 10,000 10,000 Expenditures Fairgrounds Building 0 0 10,000 10,000 Total expenditures 0 0 10,000 10,000 Revenues over(under) expenditures 0 0 Beginning fund balance 0 0 Ending fund balance 0 0 Page 8 of 10 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing& 1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OF SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 • As 1st 2nd As Adopted Amendment Amendment ' Amended ENTERPRISE FUNbS #402-STORMWATER FUND RECURRING ACTIVITY Revenues Stormwater Management Fees 1,900,000 0 0 1,900,000 Investment Interest 40,000 0 0 40,000 Miscellaneous 0 0 0 0 Total Recurring Revenues 1,940,000 0 0 1,940,000 Expenditures Wages/Benefits/Payroll Taxes 538,864 13,830 0 552,694 Supplies 14,750 0 0 14,750 Services & Charges 1,320,643 0 0 1,320,643 Intergovernmental Payments 45,000 0 0 45,000 Vehicle rentals-#501 6,750 0 0 6,750 Total Recurring Expenditures 1,926,007 13,830 0 1,939,837 Recurring Revenues Over(Under) Recurring Expenditures 13,993 (13,830) 0 163 NONRECURRING ACTIVITY Revenues Grant Proceeds 100,000 0 0 100,000 Miscellaneous 0 0 0 0 Total Nonrecurring Revenues 100,000 0 0 100,000 Expenditures Capital-various projects 500,000 0 160,000 660,000 Watershed studies 100,000 0 0 100,000 Stormwater comprehensive plan update 100,000 0 0 100,000 Generator for Maintenance Shop (1/2 cost to#101) 0 0 0 0 Total Nonrecurring Expenditures 700,000 0 160,000 860,000 Nonrecurring Revenues Over(Under) Nonrecurring Expenditures (600,000) 0 (160,000) (760,000) Excess (Deficit) of Total Revenues Over(Under)Total Expenditures (586,007) (13,830) (160,000) (759,837) Beginning working capital - 2,159,796 2,159,796 Ending working capital. 1,573,789 1,399,959 Page 9 of 10 P:\Finance\2021 Budget\Budget Amendment\Amendment#2\2021 10 26 Public Hearing& 1st Reading\Public Hearing\2021 Budget Summary for Amended Funds No 2 v2 CITY OF SPOKANE VALLEY, WA 10/26/2021 2021 Budget Amendment 2021 As 1st 2nd As Adopted Amendment Amendment Amended ENTERPRISE FUNDS -continued #403 -AQUIFER PROTECTION AREA Revenues Spokane County 460,000 0 0 460,000 Grant Proceeds 2,122,045 0 (615,000) 1,507,045 investment Interest 15,000 0 (13,000) 2,000 Total revenues 2,597,045 0 (628,000) 1,969,045 Expenditures Capital-various projects 2,378,109 0 580,431 2,958,540 Effectiveness study 0 0 0 0 Total expenditures 2,378,109 0 580,431 2,958,540 Revenues over(under) expenditures 218,936 (989,495) Beginning working capital 2,120,365 2,120,365 Ending working capital 2,339,301 1,130,870 FIDUCIARY FUNDS #632 -PASSTI-IROUGH FEES &TAXES FUND Revenues Fees&taxes collected for other governments 0 0 399,687 399,687 Total revenues 0 0 399,687 399,687 Expenditures Fees&taxes remitted to other governments 0 0 400,000 400,000 Total expenditures 0 0 400,000 400,000 Revenues over(under) expenditures 0 (313) Beginning fund balance 313 313 Ending fund balance 313 0 Page 10 of 10 Revised Item #2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: October 26, 2021 Department Director Approval: �f Check all that apply: ❑ consent ❑ old business ® new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation ❑ executive session AGENDA ITEM TITLE: First reading of proposed Ordinance #21-017 which amends the 2021 Budget. GOVERNING LEGISLATION: In order for the City to amend an adopted budget, State law requires the-Council to approve an ordinance that appropriates additional funds. PREVIOUS COUNCIL ACTION TAKEN: The Council last took formal action on the 2021 Budget when it was amended on May 18, 2021. On October 12, 2021, an Administrative Report was delivered to Council regarding the need for a budget amendment. Finally, earlier this evening a public hearing was held on this topic. BACKGROUND: Since the amendment of the 2021 Budget on May 18, 2021, a number of events have transpired in the normal course of operations that necessitate a second 2021 Budget amendment. There have been two changes since the administrative report on October 12th • First, the activity in Fund #314 was previously estimated to decrease substantially. The decrease was primarily due to a change in the way the Barker Rd project is being administered. The City has entered into an interlocal agreement with the Washington State Department of Transportation (WSDOT) to perform contract administration for the construction of the project. In that capacity, WSDOT is directly paying the construction contractor and drawing on the City's grants. The City then provides any local match above and beyond the grant proceeds to WSDOT. As such, the City was not recording the expenditures and related revenues for the project. Upon consultation with the State Auditor's Office, the City must record all expenditures and grant revenues even though they are not flowing through the City's books. As such, staff adjusted the original budget estimates for Fund #314 and related amounts in Fund #302 to reflect the updated costs. • Second, survey work for the Spokane Valley River Loop Trail is being moved up into 2021 in Fund #309, which affects the expenditures and revenues in that fund as well as expenditures in Fund #312. Proposed amendment items include: #001 - General Fund The total of both recurring and nonrecurring revenues reflects a decrease of $424,200, which is comprised of: • $464,200 decrease in district court passthrough fees in Public Safety revenues. These are fees the City collects on behalf of the State and Spokane County which are paid to those entities after collection. A change in accounting rules in 2020 necessitates accounting for these types of transactions in a Fiduciary Fund. This is the new Passthrough Fees and Taxes Fund #632 that is created with this budget amendment. • $40,000 increase for the remaining balance of a grant from the Department of Commerce to complete the Housing Action Plan. This was started in 2020 and completed in 2021. 1 Revised Item #2 A decrease of$426,003 in appropriations (expenditures) comprised of: • $12,000 increase rental costs in the City Manager Department to reserve shelter beds for the use of the City. • $485,900 decrease in the Public Safety Department to move the passthrough district court fees to the new Passthrough Fees and Taxes Fund#632 as described above under revenues. • $40,000 increase to complete the Housing Action Plan paid for by a grant from the Department of Commerce. This was started in 2020 and completed in 2021. • $7,897 increase in transfers to the Parks Capital Projects Fund#309 for residual costs related to the CenterPlace west lawn improvements and the CenterPlace roof replacement projects. #104 — Hotel / Motel Tax—Tourism Facilities Fund Increase revenues by $868,660 including: • $187,000 increase reflecting updated estimates of lodging tax revenues. • $21,500 decrease in investment interest due to a decrease in interest rates. • $703,160 increase in transfers in from the Hotel/Motel Tax Fund #105. This increase reflects a Council motion on December 8, 2020, as part of the lodging tax grant process for the 2021 awards. This motion stated that the remainder of lodging tax collections in Fund #105 after 2020 and 2021 award payouts would be transferred to Fund #104 so that the ending fund balance in Fund #105 is approximately $165,000 at the end of 2021. #105 — Hotel / Motel Tax Fund Increase revenues by $398,700 including an increase of $404,000 reflecting updated estimates of lodging tax revenues and a decrease of $5,300 in investment interest due to a decrease in interest rates. Increase expenditures by $676,160 including a decrease of $27,000 to reflect actual awards for 2021 lodging tax grants and an increase of $703,130 in transfers out to the Hotel/Motel Tax — Tourism Facilities Fund #104 (see explanation under Fund #104 above). #106 — Solid Waste Fund Increase transfers out to the Pavement Preservation Fund #311 by $37,776 due to 2020 receipts of the road wear administration fee related to the Waste Management collection contract exceeding previous estimates. #107 — PEG Fund Increase expenditures by $15,000 to replace broadcast equipment in Council Chambers. There are adequate reserves in Fund #107 to cover these costs. #301 — REET 1 Capital Projects Fund Real Estate Excise Tax (REET) revenue is increased by $1,000,000 based on revised revenue projections and investment interest is decreased by $22,000 due to a decrease in interest rates. #302 - REET 2 Capital Projects Fund Real Estate Excise Tax (REET) revenue is increased by $1,000,000 based on revised revenue projections and investment interest is decreased by $19,500 due to a decrease in interest rates. Decrease expenditures by $466,871 due to changes in the expected transfers out to the Railroad Grade Separation Projects Fund #314 to reflect current estimates. 2 Revised Item #2 #303 -- Street Capital Projects Fund Revenues and expenditures are proposed to increase by $94,000 to reflect current estimates on various sections of the Barker Road corridor. #309 — Park Capital Projects Fund This fund is being amended to reflect current estimates on several projects. Revenues are increased by $422,575 reflecting: • $7,897 increase in transfers in from the General Fund for residual costs related to the improvements to the CenterPlace west lawn and the replacement of the CenterPlace roof. • $414,678 increase in transfers in from the Capital Reserve Fund #312 for the Evergreen to Sullivan section of the Appleway Trail, improvements at Balfour Park, the water line at Sullivan Park, and the Spokane Valley River Loop Trail. Expenditures increase by $422,575, including: • An increase of$2,033 for residual costs on the Evergreen to Sullivan segment of the Appleway Trail to close out the project. • An increase of$5,124 for residual costs on the improvements to the CenterPlace west lawn. • An increase of$2,773 for residual costs on the replacement of the CenterPlace roof. • An increase of$367,503 for preliminary engineering costs for phase one of improvements at Balfour Park. • A decrease of $54,858 on the Sullivan Park water line reflecting a changing of the timing on the project. • An increase of$100,000 for preliminary engineering costs for the Spokane Valley River Loop Trail. #310 -- Civic Facilities Capital Projects Fund Revenues are decreased by $2,300 to reflect a decrease in investment interest earnings. Expenditures are increased by $3,600 in transfers out to the Capital Reserve Fund #312. This amount reflects excess investment earnings that have accumulated in Fund #310. #311 — Pavement Preservation Fund Increase transfers in from the Solid Waste Fund#106 by $37,776 due to 2020 receipts of the road wear administration fee related to the Waste Management collection contract exceeding previous estimates. Decrease expenditures by $885,473 to reflect current estimates and timing on several projects including the Broadway Preservation project from Havana to Faucher and the Evergreen Preservation project. #312 — Capital Reserve Fund Revenues increase by $1,020,500 including: • $3,600 increase in transfers in from the Civic Facilities Capital Projects Fund #310 for excess interest earnings. • $109,400 increase for the proceeds from the sale of the Balfour horse arena. • $1,000,000 increase in grant proceeds from the RCO grant received for the Flora Rd park property. This grant is partially reimbursing Fund #312 for the cost of this purchase. • $92,500 decrease in investment interest due to a decrease in interest rates. 3 Revised Item #2 Increases expenditures/appropriations of $3,585,635 include: • Increase of $14,000 in transfers to the Street Capital Projects Fund #303 for sections of the Barker Road corridor. • Increases of$414,678 in transfers out to the Parks Capital Projects Fund #309 for the Evergreen to Sullivan section of the Appleway Trail, improvements to Balfour Park, the water line at Sullivan Park, and the Spokane Valley River Loop Trail. • Increases of$921,957 in transfers out to the Railroad Grade Separation Projects Fund #314 for the Barker Rd overpass, the Pines Rd underpass, and the Sullivan Rd interchange. • $2,225,000 for the purchase property on Sprague Ave. for potential Precinct use. #314 — Railroad Grade Separation Projects Fund Revenues increase by $1,849,586, comprised of: • Increase of$1,394,500 in grant proceeds to reflect current estimates on the Pines Road grade separation projects. • Decreases of$466,871 in transfers in from the REET 2 Capital Projects Fund #302 for the Barker Road grade separation project. • Increase of $921,957 in transfers in from the Capital Reserve Fund #312 for the Barker Road grade separation project, the Pines Road grade separation project, and the Sullivan Road interchange. Expenditures increase by $359,834, comprised of: • Increase of $284,834 due to updated estimates for the Barker Road grade separation project. • Increase of$75,000 for preliminary engineering for the Sullivan Road interchange project. #315 --Transportation Impact Fees Fund This is a new fund that is being created to account for the transportation impact fees implemented by the City beginning in 2021. The fees are restricted by law and therefore must be separately tracked. Revenues increase by $150,000 in estimated transportation impact fee collections for 2021, and expenditures increase by $80,000 in transfers out to the Street Capital Projects Fund #303 for use on eligible capital projects. #316 — Economic Development Capital Projects Fund This is a new fund that is being created to account for capital projects undertaken by the City for economic development purposes. The first project being accounted for in this fund is the new Expo Center building at the Spokane County Fairgrounds. Revenues increase by $10,000 in transfers in from the Capital Reserve Fund #312 for the fairgrounds building, and expenditures increase by $10,000 for preliminary design work for the new Expo Center building. #402 — Stormwater Fund Expenditures increase by $160,000 related to updated estimates and timing on capital projects. #403 —Aquifer Protection Area Fund Revenues decrease by $628,000 consisting of $615,000 in grant proceeds related to updated estimates on construction projects and $13,000 in investment interest. 4 Revised Item #2 Provide additional appropriations (expenditures) of $580,431 including updated estimates on construction projects such as the Regional Decant Facility canopy, the Appleway Stormwater Improvements project, and various pavement preservation projects with aquifer protection updates. #632 — Passthrouqh Fees & Taxes Fund This is a new Fiduciary Fund that is required due to a change in accounting rules. The City receives district court fees that are assessed by the State and Spokane County. These fees are required to be paid to the State or County when received. The City also collects sales taxes and leasehold excise taxes on behalf of the State, which are then remitted quarterly. Revenues increase $399,687 in estimated passthrough fees and taxes that will be collected on behalf of the State and County. Expenditures increase by $400,000 in estimated fees and taxes that will be remitted to the State and County from the passthrough collections. The 2021 Budget amendment reflects the changes noted above and will affect 18 funds resulting in total revenue increases of $6,155,484 and expenditure increases of $4,646,664. The amendment will also create three new funds — the Transportation Impact Fees Fund #315, the Economic Development Capital Projects Fund #316, and the Passthrough Fees & Taxes Fund #632. Revenue Expenditure Fund Fund Increase Increase No. Name (Decrease) (Decrease) 001 General Fund (424,200) (426,003) 104 HotelMotel Tax -Tourism Facilities Fund 868,660 0 105 HotelMotel Tax Fund 398,700 676,160 106 Solid Waste Fund 0 37,776 107 PEG Fund 0 15,000 301 BEET 1 Capital Projects Fund 978,000 0 302 REET 2 Capital Projects Fund 980,500 (466,871) 303 Street Capital Projects Fund 94,000 94,000 309 Parks Capital Projects Fund 422,575 422,575 310 Civic Facilities Capital Projects Fund (2,300) 3,600 311 Pavement Preservation Fund 37,776 (885,473) 312 Capital Reserve Fund 1,020,500 3,585,635 314 Railroad Grade Separation Fund 1,849,586 359,834 315 Tranportation Impact Fees Fund 150,000 80,000 316 Economic Development Capital Projects Fu 10,000 10,000 402 Stormwater Fund 0 160,000 403 Aquifer Protection Area Fund (628,000) 580,431 632 Passthrough Fees & Taxes Fund 399,687 400,000 6,155,484 4,646,664 OPTIONS: Options are to accept the proposed amendments in whole or in-part. RECOMMENDED ACTION OR MOTION: Move to advance Ordinance #21-017 amending the 2021 Budget to a second reading. 5 Revised Item #2 BUDGET/FINANCIAL IMPACTS: This action amends the estimated revenues and appropriations for the 2021 Budget that was adopted on December 8, 2020, and amended on May 18, 2021. There are adequate funds available to pay for these amendments. STAFF CONTACT: Chelsie Taylor, Finance Director ATTACHMENTS: • Draft Ordinance #21-017 • PROPERTMLINE MAIN AVENUE I 1, i 110 �Y,w hy '�°i, i 4 O 0 0v� 41116 �� , (9 , WO New .„ 0 i PARE �� �� -I-I j 1 I -.- 1 1 I AMPHITHEATER O i / - - 'l® 3 I ; 1 oi. �14 t 4 I SPORT COURTS 1, -- 1 I CI I 0`PaOPEanEaE I 4 ''I OO ® ` a SPLASHPAO - 1 '� Ari 1 �,, a ,Q, �/ co ® i 1 , O I < 4. 0� I 1 4,..t, o ( _ / eI ,al° 2SHELTER • 1 + Il �- _� �O/ PARK �.. / ��eE$`'�`• // _ LI P ❑ �� O-'' '' -0, .e/ PLAYGROUND d:101 s--- ',..,., / ,/ i4 \�� �PaoaearvLae LC T �M��Oil i I\[�/�I Imo•-7�/I 1 1111, i• i i/7- - -77 i \ 6D 0 0 ni OPFRT'UNE o • I PaoPEarL�E \\ PARK EVENTS O FUTURE LIBRARY I PLAZA NOTA PART i V. 4 I'. , 1 It::yr)iTZ:,! N AL �v Pa�Ean�aE��\. �ae� !,,L __j___ I OI 1 O e MI 0, f 0 .0 Illo . 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