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2004, 11-09 Regular MeetingVOUC1iER LIST DATE VOUCITER Number(s) TOTAL VOUCHER AMOUNT 10 -22-04 5713 -5771 1.791.402.75 10.26 -04 5773 -5774 5,506.54 11-01-04 5775-5797 1,I55,549.74 GRAND TOTAL 2.952,459.03 AGENDA SPOKANE VALLEY CiTY COUNCIL REGULAR MEETING #55 Tuesday, November 9, 2004 CiTY HALL AT REDWOOD PLAZA 11707 East Sprague Avenue, First Floor Council Requests All Electronic Des ices be Turned Off During Council Meetini 6:00 p.m. CALL TO ORDER PLEDGE OF ALLEGIANCE INVOCATION: Pastor Bill Dropko, Greenacres Christian Fellowship Church ROLL CALL APPROVAL OF AGENT/A INTRODUCTION OF SPECLAL GUESTS AND PRESENTATIONS COM MITTEE, BOARD, LLAISON SUMMARY REPORTS MAYOR'S REPORT: PUBLIC COMMENTS For members of the Public to speak to the Council regarding matters NOT on the Agenda. Please state your name and address for the record and limit remarks to three minutes. 1. CONSENT AGENDA Consists of items considered routine which are approved as a firoup. A Councilmember may remove an item from the Consent Agenda to be considered separately. a. Approval of Regular Council Meeting Minutes of October 26. 2004 b. Approval of Study Session Minutes of November 2, 2004 c. Approval of Payroll of October 30, 2004 of S143,652.24 d. Approval of the Following Vouchers: NEW BUSINESS 2.. Second Reading Proposed Ordinan c 04 -044 Adopting 2005 I3udget — Ken Thompson [public commcntj 3. Second Reading Proposed Ordinance 04 -046 for Planned Unit Developments (PUD) — Marina Sukup (public commcntj 4. First Reading Proposed Ordinance 04-047 Amending Spokane Valley Building Code — Tom Scholtens [public comment] 5. Motion Consideration: Selecting a Library Services Provider, and Authorizing City Manager to Negotiate Agreement - Nina Regor [public commcntj Council Agenda 11-09-04 Regutat Meeting Page 1 of 2 4 49e?, 6. Discussion: Mayoral Appointments to Boards and Committees - Mayor I)eVleming ]public comment] 7. Presentation: Six -Year Financial Forecast— Dave Mercier (public comment] UNFINISHED BUSINESS: 8. First Reading Proposed Utility Tax Ordinance (Tabled October 26, 2004)— Ken Thompson [public comment] PUBLIC COMMENTS (Maximum of three minutes please; State your name and address for the record) ADMINISTRATIVE REPORTS: [no public comment] 9 Update on ['ark Maintenance Service Proposals - Mike Jackson ADJOURNMENT FUTURE SCHEDULE Regular Council Meetings are general& held 2nd and e`" Tuesdays, beginning at 6:00 p.m. Council Study Sessions are generally held t, .3"4 and ;th Tuesdays, beginning at 6:00 p.m. Other Tentative Upcoming Meetings /Events: November 23, 2004 — No Council Meeting or Council Study Session Nor, ember 30, 2004 — Regular Council Meeting December 28, 2004 — No Council Meeting or Council Study Session January 19, 2005 — Conversation with the Community, 6 p.m., Sports USA February 12, 2005 — Half -Day Council/Staff Retreat June 11, 2005 — Mid -Year Council /Staff Retreat, 9 a.m. - noon NO-110E: Individuals planning to attend the meeting who require special assistance to accommodate physical, hearing. err other Impairments, please contact the City Clerk of 0509) 921 -1000 as Bonn as possible so that arrangements may be mnric Council Agenda 11 -09 -04 Regular Meeting ■ Page2or2 Draft Attendance: Councilmembers: Michael DeVleming, Mayor Diana Wilhite, Deputy Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Steve Taylor, Councilmember Gary Schimmels, Councilmember Richard Munson, Councilmember MINUTES City of Spokane Valley City Council Regular Meeting Tuesday, October 26, 2004 Mayor DeVleming called the meeting to order at 6:00 p.m., and welcomed everyone to the 54 meeting. Staff: David Mercier, City Manager Nina Regor, Deputy City Attorney Stanley Schwartz, City Attorney Cary Driskell, Deputy City Attorney Marina Sukup, Community Development Director Mike Jackson, Parks & Recreation Director Neil Ke.rsten, Public Works Director Ken Thompson, Finance Director Cal Walker, Police Chief Courtney Moore, Accountant/Budget Analyst Tom Scholtens, Building Official Bing (Greg) Bingaman, IT Specialist Sue Pearson, Deputy City Clerk Chris Bainbridge, City Clerk PLEDGE OF ALLEGIANCE — Mayor DeVleming led the Pledge of Allegiance. INVOCATION: Pastor Eric Hinnenkamp, of New Hope Bible Church, gave the invocation. ROLL CALL City Clerk Bainbridge called roll; all Councilmembers were present. APPROVAL OF AGENDA Mayor DeVleming announced he would like to add item #9a: Mayoral Appointment: to nominate an appointment to the Student Advisory Council. It was moved by Mayor DeVleming and seconded by Deputy Mayor Wilhite to approve the amended agenda. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. COMMITTEE, BOARD, LIAISON SUMMARY REPORTS Councilmember Munson: reported that he attended the Growth Management Advisory Committee meeting where they passed the County -wide planning policies recommended by the Citizens and Technical Review Committees; and that they now have a revised set of County -wide planning policies to guide the County's effort to comply with the Growth Management Act. Councilmember .Taylor: gave his congratulations to the subcommittee on the revised updated planning policies. Councilmember Schinnnels: said that he attended the Spokane Regional Transportation meeting a few weeks ago, that they are working with their budgets and discussed funding situations that affect the city; that he and most of the council attended the Association of Washington Cities meetings; and that he also attended the Weed and Seed meeting with the Mayor last week; that he attended the Transportation Commission meeting with WS.DOT in Seattle last week and that they are meeting tomorrow morning at Spokane Community College at 8 a.m. I-le also mentioned that he received information from the City of Council Meeting ,Minutes: 10 -26 -04 Page 1 of 7 Approved: Draft Spokane Valley regarding business license information and asked that staff distribute copies of that to all Councilmembers as an informational item. Councilmember Denenny: explained that he attended the Executive Board Meeting of Spokane Regional Health Department; and reminded everyone of the evening televised STA meetings. Councilmember Flanigan: reported that he attended last 'Wednesday's Ad Hoc Library Committee Meeting for analysis of received proposals, and that there was a large turnout; that they will meet again tomorrow night with the goal to reach a recommendation to bring before Council; that he attended the Open House at Sports USA; and that the City received seven responses to the HoteVM.otel Request For Proposals. Deputy Mayor Wilhite: stated that she also attended the Ad Hoc Library Committee meeting; and standing in for Mr. Taylor, she attended the Steering Committee of Elected Officials dealing with the final draft of the County -wide Planning Policies; and also that the Washington Policy Center came to Spokane and that she attended that meeting which discussed health care issues in our community. MAYOR'S REPORT: Mayor DeVleming mentioned planning and work is under way for this year's Celebration of Lights, which is the community Christmas tree lighting project scheduled for December 2 2004; and that the Centennial Trail Board has been meeting to respond to the State regarding requiring a parking fee for access to the trailhead use at Riverside State Park. PUBLIC COMMENTS Mayor DeVleming invited public comment. Grace Graham, 710 N McCabe Rd, Spokane Valley Wa: asked what could be done about getting different codes, rules and regulations to prohibit big trucks and trailers from parking on residential streets; that she has been putting up with that since early spring; that the trucks park across from the school at Broadway and McCabe, and she feels that makes for a dangerous condition with children in area. She handed pictures to the City Clerk for later council viewing. John Snediker, 18316 E Broadway, Spokane Valley: said that the Library Transition Report mentioned the possibility of annexing and that could still happen later; that he feels the Library District is doing a great job; and mentioned some of the positive comments heard at the last Ad Hoc Library Meeting. Debra Chant, 16004 E 6 Lane, Spokane Valley: said she feels we should contract with the Library District for another year then vote on annexation; she gave three reasons for not going to LSSi which is a profit - motivated company; she said that LSSI relies on volunteer labor; that we would lose our investment if we had to start over with LSSI; that we have a decades -old relationship with SCLD; and she feels we should keep tax dollars within the community instead of sending them to another state; that she wants us to keep the fine library system we have and not give it to a profit motivated business. Rich Bryant, S Valley, 12025 East 31 spoke concerning the ongoing comprehensive plan; said he realizes it is governed by law; but asks how can we determine where or to even start planning for zoning changes if we haven't figured out where the city center will be; that he understood the proposed light rail has a stand -alone project for the U -City area, and they already determined where the city center could be; that he read that developers can pay an $1800 fee and have a zoning change so money talks and individuals who have been there for years have no say. Mayor DeVleming invited further public comment; no further comments were offered. Council Meeting Minutes: 10 -26 -04 Page 2 of 7 Approved: VOUCHER LIST VOUCHER TOTAL VOUCHER DATE Number(s) AMOUNT 10 -06 -04 5673 -5705 37,974.55 GRAND TOTAL 37,974.55 Draft 1. PUBLIC HEARING: Final 2005 Budtet Hearin!! — Ken Thompson Mayo DeVleming opened the public hearing at 6:23 p.m. Finance Director Thompson said that staff has worked to place budget information on our website; he then introduced Courtney Moore, member of the finance division who has worked on the first six or seven items on tonight's agenda. Director Thompson explained that tonight's hearing for the 2005 budget is the third budget: hearing and the second hearing on the full budget; that we have a balanced budget for 2005 of $44 million dollars, which is down about 13% from the current year; the budget includes funds for CenterPlace operations, a service level reserve, and a contingency in case of an emergency. He also explained that the budget includes $10 million dollars in capital projects, and a loan repayment of up to $1.3 million dollars, which is on the money we borrowed from the street fund last year for start -up costs. Mayor DeVleming invited public comment; no comments were offered. After asking Council for any discussion and receiving none, Mayor DeVleming closed the public hearing at 6:28 p.m. 2. CONSENT AGENDA Consists of items considered routine which are approved as a group. A Councilmember may remove an item from the Consent Agenda to be considered separately. a. Approval of Regular Council Meeting Minutes of October 12, 2004 b. Approval of Study Session Minutes of October 19, 2004 c. Approval of Payroll of October l 5 of $108,992.68 d. Approval of Following Vouchers: It was moved by Mayor DeVleming and seconded by Counclltnember Tailor, to waive the reading and approve the Consent Agenda. Councilmember Flanigan pointed out a clarification in the minutes from the October 26 meeting regarding outside agency funding, that both EDC and ITA should have separate line items in future budgets. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. NEW BUSINESS 3. Second Reading: Proposed 2005 Annual Property Tax Ordinance 04 -041— Ken Thom s son After City Clerk Bainbridge read the ordinance title, it was moved by Mayor DeVleming and seconded by Councilmember Flanigan to approve Ordinanwe 04 -041. Finance Director Thompson explained that statute dictates an ordinance is required to levy property taxes, and that it is expected that the property tax levy would be close to $9,870,000 for 2005 and would be based on a rate of $2.10 per thousand dollars of assessed value, which is close to the rate we have in the current year. Mayor DeVleming invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 4. Second Reading Proposed Ordinance 04 -042 to Confirm Extra 1 +% L.evv — Ken Thompson After City Clerk Bainbridge read the ordinance title, it was moved by Mayor DeVleming and seconded by Councilmember Denenny to approve Ordinance 04 - 042. Finance Director Thompson stated that a second requirement under the State budget law is that if we want to collect the 1% increase in property tax each year, there must be a separate ordinance; and that it is usually 1 %, but in our case this year only it will 1.37 %, which equates to $126,681; he further explained that our property tax levy in the current year was approximately $9.2 million dollars, and the State budget law allows us to collect 1% more than that, and we can receive that if we so specify via an ordinance. Mayor DeVleming invited public comment; no comments were offered. Vote by Acclamation: br Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Council Meeting Minutes: 10 -26 -04 Page 3 of 7 Approved: Draft 5. First Reading Proposed Ordinance 04 -044 Adopting 2005 Budget — Ken Thompson After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Munson and seconded by Councilmember Flanigan to advance Ordinance 04 -044 to a second reading. Finance Director Thompson explained that this is the ordinance which formally adopts the 2005 budget. Mayor DeVleming invited public comment; no comments were offered. Council briefly discussed the budget including the beginning and ending balances of the street fund as shown, and noted that this is a "bare - bones" budget and depletes the street fund to a dangerous low level. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 6. Proposed Resolution 04 -025 Amending Fee Resolution for 2005 — Ken Thompson After City Clerk Bainbridge read the resolution title, it was moved by Councilmember Munson and seconded by Councilmember Denenny to approve Resolution 04 -025. Finance Director Thompson explained that fees are adopted with a resolution, and as fees change, the resolution must be amended. He stated there are only two changes in this resolution, and that those changes will not be effective until 2005. He stated that one change is the $13 business registration fee including the S3.00 fee for non - profit: business registration; and that the other change deals with stormwater utility fees of $24.00 per equivalent residential unit per year, for the 2005 stormwater fund. Discussion turned to the $24 stormwater utility fee and the use of the 3,160 square foot and how staff derived that figure; of the impact this would have on some businesses; the overall allocation of the ERU's; and whether staff' researched other possible alternatives. Mayor DeVleming invited public comment. Dick I3ehnt, 3626 S Ridgeview: said he worked on the water quality advisory board and spent most of that time dealing with stormwater, stormwater fees, and floodplains, and that this is an unfair fee against business people; that business property is required to keep their stormwater on site; that most of the stormwater is caused by city streets and rains and drywells. He said that Spokane County is raising their fee to S 17.00, and he recommends we not increase Spokane Valley's fee higher than the County's; that historically Spokane Valley doesn't have any stormwater problems because of the nature of our soils and our drywells, although there are some isolated areas like the Ponderosa; he stated that if the 3100 square feet were spread across the Valley Mall, their stormwater bill would be tens of thousands of dollars; that he feels fees are being diverted to streets and street funding and that he takes exception to that; that the law is clear on how to handle stormwater; and he asks that Council delay the vote and do more due diligence on this and bring it up again later. In response to Council question, Public Works Director Kersten explained that this issue is more of a method of how to accumulate the revenue needed to accomplish the work, and is similar to a school bond issue where not everyone has children in school but everyone pays the school tax; that this is one method of calculation but that staff could work to come up with some other ideas. He explained that he and staff can research how other communities go about the process. Further discussion included what the County is currently charging and what they intend to charge in future years; our flat rate versus the county's changing rate; locating and inventory of all stormwater facilities; maintenance (including preventive maintenance) and monitoring issues; that the county's rate apparently does not cover maintenance; moving the square footage. number (3,160) up or down; plugged dryrwells and drain areas and flooding issues this year; being sensitive to businesses with large parking areas; fee issues including equitable setting of fees, capping, customer classification preference, and a sliding fee scale. It was moved by Councilmember Denenny and seconded to table this motion. Vote by Acclamation: In favor: Deputy Mayor Wilhite and Councilmembers Schinrmels, Munson, Flanigan, and Denenny. Opposed: Mayor DeVleming and Councilmember Taylor. Abstentions: None. Motion carried to table the motion to approve Resolution 04 -025. Council Meeting Minutes: 10 -26 -04 Page 4 of 7 Approved: Draft 7. First Reading Proposed Utility Tax Ordinance 04 -045 — Ken Thompson After City Clerk Bainbridge read the ordinance title, it was moved by Councilmember Denennv and seconded by Councilmenaber Munson to advance Ordinance 04 -045 to a second reading Finance Director Thompson explained that the reason to explore a possible utility tax is to help alleviate financial difficulties in future years in the general fund and in the street fund; that the Boundary Review Board in their 2001 study mentioned there may later be need for additional revenue sources; that most cities (especially cities our size) levy that tax. He mentioned that other options were reviewed such as admission taxes, increased business license tax, increased gambling tax, and business and occupation tax; and that it was felt that the best way to solve the financial problem for future years was through a utility tax. Mr. Thompson explained that tonight's recommendation is for a 6% utility tax on natural gas, electricity, refuse, telephone, and stormwater; and if council approves, the utility companies need a minimum sixty-day's notice so that they can identify those accounts that are within our city limits. In response to Council questions concerning the water districts, Attorney Schwartz explained that the ability of a city, to tax another entity depends upon the form of the entity; that one local government may not tax another local government unless the legislature has given specific authority to do so; that concerning special purpose districts, such as water, our legal intern did a survey of the special purpose districts providing water within the city, and found that some are governmental entities and some are not. Mr. Schwartz added that there is a special exception for electric, but as far as we can tell that does not seem to apply within the City of Spokane Valley. City Manager Mercier stated that the proposal for the utility tax does not include application against any water or sewer enterprises. Mr. Schwartz also explained that Vera Water and Power is an irrigation district, which is a municipal corporation; and as such falls under the rule that one municipality cannot tax another. In response to Councilmember Taylor's question about a list of utilities serving the area, Director Thompson said the list includes Avista, Inland Power and Light, Modern Electric, Valley Garbage, and several telephone companies, as well as the City's stormwater enterprise. After a brief explanation of how the figured was derived, discussion turned to comparison of our City with Yakima, Vera's electric. customers, each utility's volume of customers, the numerous variables in calculating a tax, that the tax would be on the company's gross revenues received, and mention that wholesale power entities like Bonneville Power would not be included as this tax would be levied against the utility doing business and earning revenue within our City. Mayor DeVleming invited public comment. Mike Baker, 815 ,S Glenbrook Court, Greenacres, 99016: stated that he is the General Manager at Modern Electric Water Company; that his company would be subject to the tax; that they serve about 20,000 citizens of the city; that he feels this is a regressive tax and very unfair; if the tax is enacted they will pass the tax to their customers and the bill will show the tax as an itemized line item showing Spokane Valley City tax; that small businesses will pay $200 month; that many people are struggling financially and this will hurt the community service organizations; that this increase to the school districts might mean a few teacher positions; that this is not a fair tax as Vera Water and Power would be exempt, adding that maybe there is a conflict of interest and /or an appearance of fairness issue since the Mayor works for Vera; he suggests we try to do something else. Dan Malabos, Representative of Inland Power and Light, 320 East y Avenue, Spokane: said his company has many customers in Spokane Valley; that this would have an adverse impact on people on fixed income, seniors, and low income people; that this should apply to all utilities within the city's boundaries, and if not it becomes a fairness issue; that those businesses that will be affected will pass on those increases to their customers; that maybe 6% is not a fair burden; that he feels this tax is probably inevitable; but asks whether the full percentage is necessary, or can we balance with less. John O'Rourke, 212 W 2'', is the director of one of the Spokane Neighborhood Action Programs called Citizens Utility Alliance, which is an advocate for utility customers; that he opposes the tax; says it is a regressive tax; that they do energy assistance with the Spokane Valley Center and he feels low income Council Meeting Minutes: 10 -2b -04 .Page 5 of 7 Approved: Draft people will pay a larger percentage of their income than those with a higher income; he wants us to find a non- regressive alternative; and he feels if this must be approved, that maybe there is something that can be done to cushion the low income households, perhaps an exemption or dedicate a portion, perhaps 1 /6` to low income assistance programs. Tony Lazanis, 10626 East Empire, Spokane Valley: stated that he is surprised at what we are trying to do to the citizens of Spokane Valley; that we are doing damage to the people; that this is a bad tax; he suggested implementing impact fees for each new house as that would generate quite a bit of money; that we need to generate revenue without hurting the poor people; and that he doesn't know who to blame, the Council or the City Manager; and that he hopes the tax is not implemented and he suggested we do other things. Mayor DeVleming invited further public comment; no comments were offered. In response to Councilmember Flanigan's question about the City of Spokane's utility tax, Attorney Schwartz stated that the City of Spokane has a utility tax on eight types of utilities: electric Tight or power 6 %; manufactured gas 6 %; solid waste collection 17 %; wastewater collection and treatment 17 %; telegraph 3.5 %; telephone business 6 %; water 17 %; and cable 6% of gross income. After further discussion, it was Council consensus that further public discourse is essential on this topic. It was moved by Councilmember Munson and seconded by Councilmember Flanigan to table the motion to move the ordinance to a second reading, to November 9, 2004 in order to allow continued discussion and public participation over the next several council meetings. Vote by acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion to table this issue was approved. Mayor DeVleming called for a short recess at 7:58 p.m., he reconvened the meeting at 8 :10 p.m. 8. Vacation of a Portion of David Road • Second Reading: Proposed Street Vacation Ordinance 04 -043 (David Street) — Marina Sukup After City Clerk Bainbridge read the ordinance title, it was moved by Mayor DeVleming and seconded by Councilrnemher Flanigan to approve Ordinance 04 -043. Community Development Director Sukup explained the background as noted on her October 26, 2004 Request for Council Action. Councilmember Taylor stated that he continues to have reservations on this ordinance, would like to keep the options open, and if there is some type of entryway or beautification proposal in the future, it would best be situated on Sprague rather than Applcway; and that he will vote against the motion. City Manager Mercier added that the recommendation before Council is to proceed with the vacation of the streetway and to consider a declaration of surplus status for only the triangular piece; that what happens to that piece has not been decided. Director Sukup added that concerning that piece of property, an appraisal must be done and the area will be sold at auction or to the highest bidder as determined by the City Manager for the best interest of the city; so it will not be conveyed for free. Vote by Acclamation: In Favor: Mayor DeVleming, Deputy Mayor Wilhite, Councilmembcrs Schimmels, Munson, Flanigan, and Denenny. Opposed: Councilmember Taylor. Abstentious: None. Motion carried. • Motion Consideration: Declaring the remainder of the property as Surplus Property It was moved by Councilmember Munson and seconded by Deputy Mayor Wilhite to declare the subject property surplus, and that surplus property is the triangular piece represented on the drawing included in the council packet. Vote by Acclamation: In Favor: Mayor DeVleming, .Deputy Mayor Wilhite, Councilmembers Schimmels, Munson, Flanigan, and Denenny. Opposed: Councilmember Taylor. Abstentions: None. Motion carried. Council Meeting Minutes: 10 -26 -04 Page 6 of 7 Approved: Draft 9. First Reading Proposed Ordinance 04 -046 for PUD Amendments — Marina Sukup After City Clerk Bainbridge read the ordinance title, it was moved by Councibnember Munson and seconded by Councilmember Flanigan to advance ordinance 04 -046 to a second reading. Community Development Director Sukup explained the proposed ordinance as noted in her October 26, 2004 Request for Council Action form. Mayor DeVleming invited public comment; no comments were offered. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. 9a Mayoral Appointment: Student Advisory Council — Mayor DeVlemint; Mayor DeVleming announced that the previous Valley Christian school representative was transferred to West Valley, leaving that position vacant. It was moved by Mayor DeVleming, and seconded, to appoint Laura Schlet to the Student Advisory Council as the Valley Christian School representation. Vote by Acclamation: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. PUBLIC COMMENTS Dick Bchm: mentioned in reference to the surplus property and the triangle area; that it might be possible to get the County to transfer that property to the City free of charge; and he advises Council exercise caution when declaring property surplus. Mayor DeVleming invited further public comment; no comments were offered. Tt was moved by Councilmember Flanigan, seconded, and unanimously agreed upon to adjourn. The meeting adjourned at 8:49 p.m. ATTEST: Christine Bainbridge, City Clerk Michael DeVleming, Mayor Council Meeting Minutes: 10-26-04 Page 7 of 7 Approved: DRAFT Attendance: Councilmembers: Michael DeVleming, Mayor Diana Wilhite, Deputy Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Rich Munson, Councilmember Gary Schimmels, Councilmember Steve Taylor, Councilmember Absent: Councilmember Taylor (excused) MI NIJTES CITY OF SPOKANE VALLEY STUDY SESSION Tuesday, November 2, 2004, 6:00 p.m. Staff: Nina Regor, Deputy City Manager Cary Driskell, Deputy City Attorney Ken Thompson, Finance Director Neil Kersten, Public Works Director Cal Walker, Police Chief Marina Sukup, Community Development Director Tom Scholtens, Building Official John Hohman, Senior Engineer Mike Jackson, Parks and Recreation Director Morgan Koudetka, Administrative Analyst Sue Pearson, Deputy City Clerk Chris Bainbridge, City Clerk Mayor DeVleming opened the meeting at 6:00 p.m., welcomed all in attendance, reminded everyone that this is a study session, and requested that all electronic devices be turned off for the duration of the meeting. Mayor DeVleming announced there will be an addition to the agenda, an item 2a: Hotel Motel Fund Set Aside, and that he will give opportunity for public comment. Mayor DeVleming also mentioned that Councilmember Steve Taylor has asked to be excused from tonight's meeting. It was moved, seconded, and unanimously agreed upon to excuse Councilmember Taylor from tonight 's meeting. 1. PUBLIC COMMENT: Proposed 'Utility Tax Ordinance 04 -045 Finance Director Thompson gave a brief overview of the proposed tax ordinance, explaining that the matter was tabled at the last council meeting in order to give additional opportunity to receive public input; and that this matter is now scheduled for a first reading at the November 9, 2004 Council meeting. Mayor DeVleming invited public comment: Eldonna Gossett, President and CEO of the Spokane Valley Chamber of Commerce, 9507 E Sprague Avenue: stated she was speaking on behalf of the Chamber Of Commerce and stated opposition to the proposed tax; she suggests Council seriously investigate efficiencies in existing contracts and that a thorough study of potential service cuts is.desired (see her accompanying letter to Council). Mike Baker, General Manager, Modern Electric Water Co. iV 904 N Pines Road: said he appreciates that the. City is looking ahead in upcoming years to determine needs; but he opposes the tax; said he would pass it through to his customers; that it is a regressive tax; about 25 -30% of the households are near or at the poverty level and this will hit them the most; and if Vera is exempt that will create an unfair shift to the other 75% of electric rate payers; and that it might be in violation of state law in assessing taxes in an equitable and fair manner; that he hasn't seen anything on possible budget cuts, and feels a 5 -10% across the board budget cut would be prudent now, and to bring up in the spring levies for those services for streets and police and let the citizens vote on what services and what level they want, Study Session Minutes of 1 I -02 -04 Page 1 of 6 Approved by Council: DRAFT Umg Kelly. Avista, 1411 E Mission, Spokane: said he knows this tax is common among many communities but feels there should be an equitable way to administer the tax; that there are four electric service providers which serve the city and the boundaries are not clearly defined; that pending Vera's exemption from this, he feels adoption of a tax that creates unfair competition from one provider to . another is wrong; and said we need to resolve the issue of equity before taking action. Wayne Frost, 3320 N Argonne said he is here representing Centennial Property as their General Manager; that Centennial is a major land owner here; that he opposes the tax; that he is also an active member of the Chamber of Commerce and agrees with the Chamber's viewpoint; said as a major landowner he is active in attempts to attract new quality businesses to this area and is concerned about being put at a competitive disadvantage; that this tax will hurt low and fixed income and the large users of the utilities; that he recommends Council use due diligence to look at alternatives and examine necessary cuts; and suggests looking at the expense side first. Dick Rehm, 9405 East Sprague: said he is also a property owner of Modern Electric; that he endorses everything said thus far and urges Council to consider putting the issue on the ballot; or failing that, the citizens of Spokane Valley have the right of initiative to put it on the ballot. John Miller, Viacom Inc. Pinecrofi Business .Park: stated that he has about 100 acres they are developing at Mirabeau Point and his concern is that the tax would hurt their ultimate tenants; that they're trying to attract businesses in the locality mostly from the outside; that he gets calls from the outside and one thing that comes up is the utilities and other taxes and whether they are steady or increasing; he suggests that the worst thing to do is to start new taxes; said that there are possibly other ways to reduce expenditures; that they compete with Liberty Lake and they chose Mirabeau Point and are adding to this tax base; and that he doesn't want to lose customers to Liberty Lake anymore. .Iin: Scott S 2312 Bolivar Road: spoke in opposition to the tax; said he is a resident and business owner and the tax is unfair; that it is not what the people expected when they incorporated; prior to incorporation it was stated that there would never be a need for a utility tax; that the City is in debt and has borrowed to the maximum; that he'd ask Council to put the matter of incorporation back on the ballot; or do we want to go back to the way it was; that Council should do what the people want, that is the direction to take and give the community the opportunity to say yes we want to continue or no we don't and this was a failed experiment and we don't want to do it anymore. Bill Gothn :ann. 100.10 East 48 said it would be nice if we could develop the philosophy that says let them pay, but "them" turns out to be me; that we can't go back to the way it was because we are under the 1% limitation; and when the license tab was reduced it had a great affect; that the reality is someone needs to pay and we pay; we can't go back to the 1900's and cut service; the problem is cities and counties need money in order to function; and that if we do not raise a utility tax, that Council relate exactly what we will lose and list what service we intend to cut so everyone knows what we are buying with a utility tax. Ruv Perrv, 2020 N.EIi; said he was one of the self - starters of this thing; that he read in the Spokesman Review that some will have to pay this and some not; if some should pay all should pay. Mayor DeVleming invited further public comment; no further comments were offered. Mayor DeVleming announced that this issue will continue to be discussed and there will be other opportunities for the public to comment. Study Session Minutes of 11.02 -04 Page 2 of 6 Approved by Council: DRAFT Council discussion then turned to the issue of equity and if ample research has been performed concerning what revenues would be available if this tax were not applied to electricity companies. City manager Mercier stated that staff tried to calculate what the revenue impact would be should the utility tax not be placed against any electrical use; and that it is estimated receipts would be reduced by 42 %; that of the entities considered to be taxed, that the electric utility group is the largest contributor. City Manager Mercier then showed the options 4, 5 and 6 on his PowerPoint presentation, each option being shown did not include electrical companies' contributions; and he stated that the deficit would still occur but it would occur in later years (depending on the option). He also mentioned that with a 1% growth limitation in all services, council would be looking at the elimination of approximately six police officers; that at council direction, he has examined a number of nonpersonnel cuts and those cuts have already been incorporated into the 2005 budget. He added that it takes at least 60 days for the utility companies to prepare to implement the tax, then apply the tax, and then more time after that before collections are realized; that if the decision was delayed until December to impose any utility tax, that receipts of that tax would not be seen until the end of first quarter of 2005 or later; so the deficit numbers would be larger then the scenarios shown in the various options. Mr. Mercier reiterated that expenses are accumulating more than a few percentages per year; and that we have been given notice that the State's retirement system, which is mandatory participation for employees, will show an employer- contribution increase of 8% or more over the next three or four years; that the CPi index for goods and services increases between two and 2.5% a year; and that wage increases will be forthcoming for employees based on longevity and service; and that the cumulative affect is a rise between six and eight percent. Mr. Mercier explained that we sought efficiency in operation through service operators, but those operators have experienced cost increases and passed those increases to us; that law enforcement personnel has binding arbitration and we anticipate that settlement will be about 3% retroactive, but that the figure in 2005 will have the 3% retroactive plus 3% in the contract and that alone will be a 6% increase. Mr. Mercier also explained about the street fund which is separate from the general fund; that staff continues to look at sales tax and as reported, projections are less than forecasted by the pre - incorporation study; that staff has worked diligently to make sure that the appropriate GEO code is applied to all who report to the Valley. Councilmember Munson stated that the last thing council has turned to is a tax; and that all Councilmembers are very uncomfortable with the concept of tax; but they are more uncomfortable with disincorporation; that we do not want to go back to the problems of junk cars and other enforcement issues; and that we are the only municipality in the County to look forward more than few years to see what cost and revenue picture looks like. Councilmember Denenny said he realizes what it has cost the citizens to form this city and what we have gained in the process; that we have a say in local government; and that Council participates on 27 different committees and boards; and if there were no city, the County would be in the exact same position if not worse. Deputy Mayor Wilhite said imposing an additional tax fairly should be spread across to all citizens; but if the community wants us to live within certain dollars, then they need to show us where and what cuts should be made; that it is a difficult process as we don't have very many staff; that if the public feels we can do with less police officers we need to know; or perhaps we should delay park maintenance and /or close down a park or two. She stated there needs to be frank decisions with the public; if the answer is not to raise taxes, then we must look elsewhere and one place to look is the police department. Councilmember Schimmels mentioned RCW 54.28.070, which gives a description of permitted uses in the area of electricity sold within city and town limits; and asked that staff explore that issue. He also Study Session Minutes of 11 -02 -04 Page 3 of 6 Approved by Council: DRAFT asked if we could start at 1% and review the situation annually or every two years; and said that we can cut the dollars but the service would have to go with it. Councilmember Flanigan said this situation is not unique in any governing agency in this area and even across the state and the country; but that we are the only governing entity willing to put out to the public future revenue projections; that the City of Spokane staff were told for several years that they were "a train wreck waiting to happen" and that has now occurred; and that we are trying to avoid that from happening. He added that the County has been burning down their reserve fund consistently for the last several years, and only has one or two years left to drawn on and then the County will also be looking at serious cuts. Councilmember Flanigan said they represent the people; and he hopes people will come forward with solid recommendations to avoid this tax; that council needs to know what people are willing to pay for; and if you don't want the tax, to tell us what services you don't want. Mayor DeVleming reiterated that this is just one opportunity for public input, and there will be others. 2. Unfinished Business: Proposed Fee Resolution # 04 -025 — Nina Regor /Neil Kersten It was moved by Councilmember Munson and seconded by Mayor DeVleming to remove the tabled motion from table. Vote by acclamation to take the issue from the table: In Favor: Unanimous. Opposed: None. Abstentions: None. Motion carried. Mayor DeVleming invited John Holtman to discuss the issue of stormwater. Engineer Hohman explained the background of stormwater issues as shown on his PowerPoint presentation; after which he explained it is anticipated that a stormwater ordinance will be brought before council before the end of this year. Discussion included flooding areas, the County's program, rate increases, and various ways to calculate the fee (as shown on the slide presentation). Deputy City Manager Regor added that this topic has been discussed numerous times; and that the intent of the forecast is to provide predictability of costs; and the recommendation is to increase the fee from $10 to $24 and remain there over a five -year period; she mentioned that the Resolution includes the $24 ERU fee, but that. Council of course, can implement that or adjust as appropriate, such as make an adjustment to change that to $1 7.00 effective 2005; and then perhaps to $20 effective January 2006. Mayor DeVleming invited public comment. Dick Rehm, 9405 East Sprague: said he noticed in the newspaper that Spokane County's stormwater ordinance was declared invalid by the Supreme Court and that they'll vote on a new one next week; he suggests Attorney Driskell look into that to see what we have to do comply; that SCAPA requires all cities to sweep streets six months out of the year; and said that we would have to charge ourselves stormwater fees the same as would apply to private properties; that some things proposed don't belong to stormwater, and he urges we do research. City Manager Mercier said that staff met with representatives of the State Auditor's Department to review the proposal to make sure cost attributions were appropriate and rightful under law; and that has occurred and staff received approval from the State Auditor's Office to move ahead; also that a high percentage. of sweeping can legitimately be allocated to stormwater as it is primarily debris that clutters the wells. Eldonna Gossett, representing the Chan:ber of Commerce: she stated she wanted to go on record that the Chamber opposes the $24 fee and is pleased to see there are other alternatives being discussed to bring that fee down (see her accompanying letter to Council). Wayne Frost. Centennial Properties: on behalf of them; and Pinecroft business at Mirabeau point; stated that the equity issue is his problem, and he appreciates Councilmember Schimmel's suggestion to find means to soften the blow. Study Session Minutes of 11-02-04 Page 4 of 6 Approved by Council: DRAFT Discussion turned to staggering fees, reducing fees, remaining business friendly, the residential community's share of this fee; taking over a problem from the County that was not fully addressed, and methods used in deriving the fee formula. As the current motion on the floor is the motion to approve Resolution 04 -025; it was moved by Deputy Mayor Wilhite, and seconded by Councilmember Flanigan, to amend that motion to approve Resolution 04 -025 with an amended fee for 517.00 for stormwater. Vote by Acclamation to amend the motion: In Favor: Mayor Devleming, Deputy Mayor Wilhite, and Councilmembers Schinunels, Munson, and Flanigan. Opposed: Councilmember Denenny. Abstentions: None. Motion to amend approved. Vote by Acclamation on the amended motion: 117 Favor: Mayor Devleming, Deputy Mayor Wilhite, and Councihnembers Schimmels, Munson, and Flanigan. Opposed: Councilmember Denenny. Abstentions: None. Amended motion approved. It was also noted that this does not change the business registration fee, and that these fees will be effective January 1, 2005. 2a Hotel Motel Fund Set -aside It was moved by Councihnember Flanigan and seconded by Deputy Mayor Wilhite to approve $40,000 to be set aside for the marketing of CenterPlace, with fznnds to come out of the hotel motel tax returns. Parks and Recreation Director Jackson discussed the issue of marketing the facility on a city-wide and regional basis, and to add to the grand opening celebration in conjunction with Valleyfest next year; and that staff recently learned that it is possible for a community to set aside a portion of the lodging tax proceeds to be used internally for their own city. Mayor DeVleming invited public comment; no comments were offered. City Manager Mercier said that there is an allocation of funds process that will be ongoing November and December, and that such a set - aside of funds would be applied in 2005 for its actual uses as we would only incur expenses associated with that set - aside which has been provided. Vote by Acclamation: In Favor. Unanimous. Opposed: !None. Abstentions: None. Motion carried. Mayor DeVleming called for a short recess at 7:50 p.m. and reconvened the meeting at 8:00 p.m. 3. Valleyfest Presentation — Jeff Wright Jeff Wright and Valleyfest Chair Peggy Doering gave a PowerPoint presentation showing how the funds the City granted them, were used in marketing this year's Valleyfest; and Chair Doering expressed thanks to the City of Spokane Valley for its assistance and for attending; and to the Parks Department and to Director Jackson for their help; and to many others who assisted with the celebration. 4. Ad Hoc Library Committee Presentation — Julie Rosenoff Julie Rosenoff, Ad Hoc Committee chair, thanked Council on behalf of those who participated on this committee; and said the opportunity gave them an appreciation for what Council is facing. She explained that the committee examined the two proposals, one with SCLD and one with LSSI. During her PowerPoint. presentation, Ms. Rosenoff said that the committee took the challenge and read everything very carefully and asked questions and got more information; that they did their own research and got even more information; and that the committee worked hard to compare the two proposals. Ms. Rosenoff stated that the committee recommends a contract with SCLD for up to five years; and within the next few years to look at annexing the SCLD as they feel that is the only way to proceed. Council thanked Ms. Rosenoff and the committee for their work on this task. (Th 5. Update on .Library Services Proposals — Nina Regor Deputy City Manager Regor explained that one of the 2005 goals was to engage in managed competition; that the pilot projects were the library and parks maintenance, and that tonight the focus is on the library. Study Session Minutes or 11 -02 -04 Page 5 of 6 Approved by Council: DRAFT She gave a summary of the process to date, thanked the committee for their work and thanked Julie for her work as chair of the committee. Ms. Regor also mentioned that she and staff members Mike Jackson and Morgan Koudelka analyzed the proposals. After her PowerPoint presentation, Ms. Regor said that staff recommends we continue contracting with the District for two years with the potential for up to three years, with one -year extensions. Ms. Regor stated that there is always a risk in change, but that a major reason to change is community dissatisfaction with current services; and that we have a large percentage of the community residents who are very satisfied with the current service. After brief council discussion, it was Council consensus for staff to work to bring formal recommendation to the November 9 meeting. 6. Advance Agenda Additions — Mike DeVleming Mayor DeVleming mentioned he would like to explore the possibility of having a presentation from law enforcement similar to the previous presentation given by Code Enforcement. Council stated it has no objection. 7. Council Check in —Dave Mercier City Manager Mercier said that in the managed competition process, they have attempted to do true diligence on looking at alternatives, and he hopes the community will appreciate that this is what due diligence is all about. 8. City Manager Comments — Dave Mercier. No comments. It was moved seconded, and unanimously agreed upon to adjourn. The meeting adjourned at 8:53 p.m. Al ZEST: Christine Bainbridge, City Clerk Michael DeVleming, Mayor Study Session Minutes of 11 -02.04 Page 6 of 6 Approved by Council: AGENDA ITEM TITLE : OPTIONS: RECOMMENDED ACTION OR MOTION: BUDGET /FINANCIAL IMPACTS: Payroll for period ending 10 -30 -04 ATTACHMENTS CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 11 -09 -04 City Manager Sign -off: Item: Check all that apply: x consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation Payroll for Period Ending October 30, 2004 GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: STAFF CONTACT: Daniel Cenis /Courtney Moore Salary: $ 96,057.30 Benefits: $ 47,594.94 $ 143,652.24 C ) Meeting Date: 11 - 09 - 04 City Manager Sign -off: Item: Check all that apply: x consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: OPTIONS: RECOMMENDED ACTION OR MOTION: Approve claims for vouchers 5713 -5771; 5773 -5774; and 5775 -5797 for a total of $2,952,459.03 BUDGET /FINANCIAL IMPACTS:- STAFF CONTACT: Mary Baslington ATTACHMENTS Voucher Lists CITY OF SPOKANE VALLEY Request for Council Action Voucher List of claims vchlist 10/22/2004 4:30:28PM Bank code : apbank Voucher List Page: 1 Spokane Valley Voucher Date Vendor Invoice PO # Description /Account Amount 5713 10/22/2004 000654 AIR CHOICE 10/18/04 Refund REFUND FURNACE PERMIT 50.00 Total : 50.00 5714 10/22/2004 000335 ALTON'S TIRE 6 -468 POOL VEHICLE MAINTENANCE 51.31 Total : 51.31 5715 10/22/2004 000037 AMERICAN LINEN 493426 FLOOR MAT SERVICE 45.78 Total : 45.78 5716 10/22/2004 000659 ASCE INLAND EMPIRE • 10/20/04 ASCE STORMWATER SEMINAR 10.00 Total : 10.00 5717 10/22/2004 000030 AVISTA UTILITIES 410069444 1016/04 STREET LIGHTING /SIGNAL POWEF 19,590.96 Total : 19,590.96 5718 10/22/'2004 000113 BASLINGTON, MARY 10/18/04 MEB Reimb. TRAVEUMILEAGE 145.00 Total : 145.00 5719 10/22/2004 000604 CAMERON CONTRACTING, INC. 04-002 No.2 BOWDISH /24TH SIDEWALK PROJE 6,208.02 Total : 6,208.02 5720 10/22/2004 000101 CDWG PB95848 40324 SMALL TOOLS & MINOR EOUIPMEP 1,233.67 Total : 1,233.67 5721 10/22/2004 000109 COFFEE SYSTEMS INC 24670 COFFEE SUPPLIES 146.50 Total : 146.50 5722 10/22/2004 000606 COLUMBIA FIBER SOLUTIONS 3856 10/12/04 DARK FIBER LEASE 32.52 Total : 32.52 5723 10/22/2004 000278 DRISKELL, CARY 10/11/04 CD Reimb. TRAVEUMILEAGE 189.17 Total : 189.17 5724 10/22/2004 000171 GEIGER CORRECTIONS CENTER SEPT., 2004 GEIGER GEIGER CONTRACT PAYMENT 9.832.80 Total : 9,832.80 5725 10/22/2004 000071 GOLMAN, SUE 10/12/04 SG Reimb. PICTURES /CENTERPLACE BOOK 30.69 / e: 1 vchlist 10/2212004 4:30:28PM Bank code : apbank Voucher Date Vendor 5725 10/22/2004 000071 000071 GOLMAN, SUE 5726 10/22/2004 000002 H & H BUSINESS SYSTEMS 080319 125124 125146 125147 125148 125149 125210 155902 Voucher List Spokane Valley Invoice PO # Description /Account Amount (Continued) 40309 TONER CARTRIDGE COST PER COPY CHARGES COST PER COPY CHARGES COST PER COPY CHARGES COST PER COPY CHARGES COST PER COPY CHARGES COST PER COPY CHARGES WIDE- FORMAT PAPER 5730 10/22/2004 000022 INLAND BUSINESS PRODUCTS, INC. 51924 CITY PHOTO ID CARD 5731 10/22/2004 000288 INTERNATIONAL CODE COUNCIL 0831146 -IN 40113 PUBLICATIONS 5732 10/22/2004 000655 INTERNATIONAL CODE COUNCIL, CERT 10/19/04 ICC MYRE ICC RENEWAL Total : 30.69 Total : 5727 10/22/2004 000505 H & H FINANCIAL SERVICES 10012004 MONTHLY LEASE PAYMENT 201.60 11012004 MONTHLY LEASE PAYMENT 201.60 Total : 403.20 5728 10/22/2004 000009 HEWLETT - PACKARD COMPANY 36749304 40318 SMALL TOOLS & MINOR EQUIPMEI 2,644.96 Total : 2,644.96 5729 10/22/2004 000222 ICMA RETIREMENT CORP. 23153 ICMA QUARTERLY PLAN FEE 250.00 23158 ICMA QUARTERLY PLAN FEE 125.00 Total : 375.00 Total : Total : Total : Page: 2 92.01 253.49 187.63 69.76 217.54 34.53 31.83 124.05 1,010.84 17.34 17.34 282.88 282.88 60.00 60.00 5733 10/22/2004 000117 JOURNAL NEWS PUBLISHING 25172 ADVERTISING 132.30 25180 ADVERTISING 88.20 25181 ADVERTISING 35.00 25183 ADVERTISING 54.00 25184 ADVERTISING 55.50 Page: 2 vchlist 10/22/2004 4:30:28PM Bank code : apbank Voucher Date Vendor 5733 10/22/2004 000117 JOURNAL NEWS PUBLISHING 5734 10/22/2004 000033 MCPC 5735 10/22/2004 000069 MERCIER, DAVID 5737 10/22/2004 000013 NEOPOST, INC. 5738 10/22/2004 000193 NORTHWEST CHRISTIAN SCHOOLS 5739 10/22/2004 000036 OFFICE DEPOT CREDIT PLAN 5740 10/22/2004 000307 OFFICE OF THE STATE TREASURER 5741 10/22/2004 000024 RESOURCE COMPUTING INC. 5742 10/22/2004 000341 RICOH CORPORATION Voucher List Spokane Valley Invoice (Continued) 25185 25223 4618533 4620501 4620806 5736 10/22/2004 000636 MOORE IACOOFANO GOLTSMAN, INC. 0016985 10/21/04 DM Reirnb. 41834287 NOVEMBER 2004 RENT 6011565610072627 8500 -0006 9/30/04 36514 04115869492 04115869962 04115891692 PO # 40322 40325 Description /Account ADVERTISING ADVERTISING OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES PARK & REC MASTER PLAN POSTAGE METER RENTAL MONTHLY RENT OPERATING SUPPLIES STATE REMITTANCES IT SUPPORT Total : Total : REIMB. FOR TRAVEUMILEAGE Total : Total : Total : Total : Total : Total : Total : COPIER RENTAL PAYMENT COPIER RENTAL PAYMENT COPIER RENTAL PAYMENT Total : 5743 10/22/2004 000415 ROSAUERS U -CITY 548909 COMMUNITY MEETING SUPPLIES 548910 COUNCIL MEETING SUPPLIES Page: 3 Amount 56.25 69.75 491.00 79.62 199.40 -31.74 247.28 1,118.73 1,118.73 7,332.75 7,332.75 312.19 312.19 22,738.68 22,738.68 125.00 125.00 59, 915.69 59,915.69 2,378.20 2,378.20 246.07 411.92 238.48 896.47 58.86 2.59 3 vchlist 10/22/2004 4 :30:28PM Bank code : apbank Voucher Date Vendor 5743 10/22/2004 000415 ROSAUERS U -CITY 5744 5745 5746 5747 5748 5749 5750 5751 5752 5753 10/22/2004 000003 ROYAL BUSINESS SYSTEMS 10/22/2004 000202 SCAPCA 10/22/2004 000297 SCHOLTENS, TOM 10/22/2004 000657 SICHKAR, VASILIY 10/22/2004 000661 SPECIALTY HOME PRODUCTS 10/22/2004 000321 SPOKANE AREA EDC 10/22/2004 000660 10/2 000172 10/22/2004 000656 10/22/2004 000090 Invoice (Continued) 548912 SPOKANE COUNTY DISTRICT COURT 10/19/04 Juror Fees SPOKANE COUNTY ENGINEER SPOKANE COUNTY ENGINEERS SPOKANE COUNTY INFORMATION, SYS 41392 41406 Voucher List Spokane Valley 380385 2752 10/8/04 TS Reimb. 10/07/04 Refund 4803 1167 PO # Description /Account MEETING SUPPLIES MAINT. PER COPY CHARGES Total : 4TH QTR ASSMT FEE TRAVEL /MILEAGE REIMBURSEMEP Total : PERMIT REFUND JURY CONTRACT PAYMENT COUNTY IT SERVICES 16 CITRIX LICENSES Total : Total : Total : SHELTER ROOFING REPLACEMEN Total : 4Th QTR. CONTRACT PAYMENT Total : Total : 04 -32 COUNTY ENGINEERING SERVICES 04 -33 STREET MAINTENANCE SERVICES Total : 16302 SPOKANE COUNTY ENGINEERS Total : Total : 5754 10/22/2004 000308 SPOKANE COUNTY PROSECUTING, AT1 10/20/04 Pros. Attry CRIME VICTIMS COMPENSATION F E) Page: 4 Amount 28.17 89.62 268.06 268.06 28,736.50 28,736.50 356.73 356.73 1,588.76 1,588.76 2,248.15 2,248.15 13, 750.00 13,750.00 2,519.00 2,519.00 132,576.24 203,693.57 336,269.81 1,486.60 1,486.60 10, 275.19 4,160.00 14,435.19 816.42 Page: 4 vchlist 10/22/2004 4:30:28PM Bank code : Voucher 5754 5755 5756 5757 5758 5759 5760 5761 5762 5763 5764 5765 5766 5767 apbank Date Vendor 10/2.2/2004 000308 000308 SPOKANE COUNTY PROSECUTING (Continued) 10/22/2004 000658 SPOKANE COUNTY SUPERIOR COURT 10 /01 /04 Juror Fees 10/22/2004 000001 SPOKANE COUNTY TREASURER 10/22/2004 000323 SPOKANE COUNTY UTILITIES 10/22/2004 000470 SPOKANE COUNTY, FAIR & EXPO CENT #3 Fair & Expo 10/22/2004 000509 SPOKANE PUBLIC SCHOOLS 10/22/2004 000328 SPOKANE VALLEY SENIOR, CITIZENS A 10/15/04 Reimb. SC 10/22/2004 000311 SPRINT PCS 10/22/2004 000257 STATE AUDITOR'S OFFICE 10/22/2004 000093 THE SPOKESMAN- REVIEW 10/22/2004 000177 U.S. POSTAL SERVICE 10/22/2004 000646 U.S. POSTAL SERVICE, NEOPOST POST 05320424 10/22/04 10/22/2004 000025 UNISOURCE CORPORATION 10/22/2004 000653 URBAN LAND INSTITUTE Invoice 1070 Voucher List Spokane Valley 10/20/04 County 10/1/04 County Util, 0141276664 -3 L51339 42365 10/1/04 Senior Ctr. 657 21256960 10/19/04 ULI PO # 40330 Description /Account JUROR FEES Total : Total : COUNTY CONTRACT PAYMENTS Total : Total : Total : Total : PARK SEWER CHARGES TOURISM PROMOTION ROOM RENTAL REIMBURSEMENT FOR INTERNET/ Total : CELL PHONE CHARGES ADVERTISING POSTAGE COPIER PAPER PUBLICATIONS Total : STATUTORY AUDIT SERVICES Total : Total : POSTAGE FOR S.C. NEWSLETTER Total : Total : Total : Page: 5 Amount 816.42 336.00 336.00 1222,632.43 1,222,632.43 681.49 681.49 652.50 652.50 164.00 164.00 37.99 37.99 929.86 929.86 14,091.70 14,091.70 1,073.62 1,073.62 152.29 152.29 2,010.00 2,010.00 551.31 551.31 183.85 ae: 5 vchlist 10/22/2004 4:30:28PM Bank code: apbank Voucher Date Vendor 5767 10/22/2004 000653 000653 URBAN LAND INSTITUTE 5768 10/2212004 000167 VERA WATER & POWER 5769 10/22/2004 000023 VERISIGN, INC. 5770 10/22/2004 000021 WITHERSPOON, KELLEY, DAVENPORT • 70082 5771 10/22/2004 000089 XO COMMUNICATIONS 59 Vouchers for bank code : apbank 59 Vouchers in this report 1, the undersigned, do certify under penalty of perjury. that the materials have been fumished, the services rendered, or the labor performed as described herein and that the claim is just, due and an unpaid obligation against the City of Spokane Valley, and that I am authorized to authenticate and certify to said claim. Finance Director Date Invoice Voucher List Spokane Valley 10/04/04 Vera 3300120847 3300249179 0104418626 (Continued) PO # Description /Account Total : STREET POWER LIGHTING/WATEF Total : ON -LINE REG. & SECURITY ON -LINE REG. & SECURITY LEGAL PROFESSIONAL SERVICES Total : TELEPHONE CHARGES Total : Total : Bank total : Total vouchers : Page: 6 Amount 183.85 637.25 637.25 59.95 59.95 119.90 5,393.10 5,393.10 1,273.99 1,273.99 1,791,402.75 1,791,402.75 Page: 6 vchlist 10/28/2004 10:17: 24A M Bank code : apbank I. the undersigned, do certify under penalty of perjury, that the materials have been furnished, the services rendered, or the labor performed as described herein and that the claim is just, due and an unpaid obligation against the City of Spokane Valley, and that I am authorized to authenticate and certify to said claim. Finance Director Date Voucher List Page: 1 Spokane Valley Voucher Date Vendor Invoice PO # Description /Account 5773 10/28/2004 000285 JACKSON, MIKE 10 -28 -04 MJ Moving MOVING EXPENSES Total : 5774 10/28/2004 000036 OFFICE DEPOT CREDIT PLAN 6011565610072627 OFFICE SUPPLIES Total : 2 Vouchers for bank code : apbank Bank total : 2 Vouchers in this report Total vouchers : Amount 3,500.00 3,500.00 2,005.54 2,006.54 5,506.54 5,506.54 vchlist 11/01/2004 12:46:12 P M Bank code : apbank Voucher Date Vendor 5775 11/29/2004 000335 ALTON'S TIRE 5776 11/29/2004 000037 AMERICAN LINEN 5777 11/29/2004 000604 CAMERON CONTRACTING, INC. 5778 11/29/2004 000101 CDWG 5779 11/29/2004 000109 COFFEE SYSTEMS INC 5780 11/29/2004 000060 DENENNY, RICHARD Invoice 6 -541 6 -716 502154 PF99375 PF99447 PG92064 25027 25057 Voucher List Spokane Valley 10/21/04 DD Reimb. 5781 11/29/2004 000152 DEPARTMENT OF TRANSPORTATION RE- 313- ATB41012086 RE- 313- ATB41012087 5782 11/29/2004 000246 EAST SPOKANE WATER DIST #1 10/18/04 ESWD #1 5783 11/29/2004 000645 ECONORTHWEST 6423 5784 11/29/2004 000028 FARMERS & MERCHANTS BANK 10!25/04 MasterCard PO # 40332 40331 40332 40306 Description /Account VEHICLE MAINTENANCE VEHICLE REPAIR FLOOR MAT SERVICE 2251 1141 2004-0070 40296 REMOVE /REPLACE PAVING 2252 1142 2004-0070 ADDTL. REMOVE/REPLACE PAVIN( Total : OFFICE SUPPLY OFFICE SUPPLIES OFFICE SUPPLIES COFFEE SUPPLIES COFEE & TEA SUPPLIES REIMS. FOR LAPTOP REPAIR Total : SIGNAL & ILLUMINATION MAINT. STATE ROUTE ROADWAY MAINT. Total : WATER CHARGES PLANNER PROFESSIONAL SERVIC Total : CREDIT CARD CHARGES Total : Total : Total : Total : Total : Total : Page: 1 Amount 23.18 506.48 529.66 45.78 45.78 11,740.00 10,276.00 22,016.00 120.12 788.37 216.37 1,124.86 74.76 8.70 83.46 75.84 75.84 2,127.18 2,835.86 4,963.04 308.68 308.68 19,554.69 19, 554.69 4,284.65 4,284.65 ,ige: 1 vchlist 11/01/2004 12:46:12PM Bank code : apbank Voucher 5785 11/29/2004 000117 JOURNAL NEWS PUBLISHING 5786 11/29/2004 000033 MCPC 5787 5788 5789 5790 5791 Date Vendor 11/29/2004 000636 MOORE IACOFANO GOLTSMAN, INC. 11/29/2004 000239 NORTHWEST BUSINESS STAMP 11/29/2004 000652 OFFICE DEPOT 5792 11/29/2004 000415 ROSAUERS U -CITY Invoice 25255 25250 4617895 4628493 0017067 11/29/2004 000662 NATIONAL BARRICADE & SIGN CO., OF 44501 50960 481324 548913 Voucher List Spokane Valley 11/29/2004 000484 MOONEY & PUGH CONTRACTORS INC. 04 -001 9/30/04 260598198 -001 260905381 -001 260905669 -001 261025690 -001 261026784 -001 5793 11/29/2004 000658 SPOKANE COUNTY SUPERIOR COURT 10/22/04 Jury charge 5794 11/29/2004 000231 STORMWATER UTILITY, SPOKANE COU 1- 101404 5795 11/29/2004 000398 TAN MOORE ARCHITECTS P3983 Request #10 PO # 40334 40335 40326 40327 40327 40328 40328 Description /Account ADVERTISING ADVERTISING OFFICE SUPPLIES OFFICE SUPPLIES PARK & REC MASTER PLAN MESSAGE BOARDS/RENTAL NAME PLATES OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES STUDENT ADVISORY COUNCIL MEETING SUPPLIES JURY CHARGES Total : Total : Total : Total : Total : Total : Total : Total : STORMWATER INTERLOCAL AGRE Total : Page: 2 Amount 75.75 108.75 184.50 216.65 145.11 145.11 40176 PROJECT BILLING ON CENTERPLP 1,065,141.00 Total : 1,065,141.00 7,190.50 7,190.50 2,016.24 2,016.24 21.57 21.57 337.63 94.23 35.88 460.31 20,73 948.78 6.49 24.99 31.48 253.00 253.00 264.08 264.08 MIRABEAU POINT CENTERPLACE I 22,570.61 Page: 2 vchlist 11/01/2004 12:46:12 P M Bank code : apbank Voucher List Page: 3 Spokane Valley Voucher Date Vendor Invoice PO # Description /Account Amount 5795 11129/2004 000398 000398 TAN MOORE ARCHITECTS (Continued) Total : 22,570.61 5796 11/29/2004 000516 TETRA TECH /KCM 143412 Sept, 2004 40174 SWALE EVALUATION SERVICES 2,940.10 Total : 2,940.10 5797 11/2912004 000167 VERA WATER & POWER 10/18 -26/04 Vera STREET POWER LIGHTING/WATEF 856.11 Total : 856.11 23 Vouchers for bank code : apbank Bank total : 1,155,549.74 23 Vouchers in this report Total vouchers : 1,155,549.74 I, the undersigned, do certify under penalty of perjury, that the materials have been furnished, the services rendered. or the labor performed as described herein and that the claim is just, due and an unpaid obligation against the City of Spokane Valley, and that I am authorized to authenticate and certify to said claim. Finance Director Date CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 9, 2004 City Manager Sign -off: Item: Check all that apply: ❑ consent old business El new business public hearing ❑ information ❑ admin. report X pending legislation AGENDA ITEM TITLE : Second Reading 2005 Proposed Budget Ordinance GOVERNING LEGISLATION: Passage of an ordinance is required under state law to adopt the 2005 City Budget PREVIOUS COUNCIL ACTION TAKEN: Public hearings on the proposed budget for 2005 were held on September 14, October 12 and October 26. The first reading of the ordinance was conducted on October 26. BACKGROUND: The ordinance has been updated in the following areas since the first reading. +$40,000 in room tax receipts has been allocated for marketing of CenterPlace +Library expenditures have been budgeted at $2.27 million +Storm Water Fund revenues and expenditures have been budgeted assuming an annual $17 /equivalent residential unit fee +The Equipment Replacement Fund has been reduced to reflect the purchase of one vehicle rather than two +The loan repayment budgeted in the General Fund has been decreased to reflect the net change in all other General Fund items OPTIONS: The City Council could conduct the second reading of the attached budget ordinance. The City Council could also elect to consider the second reading of the ordinance adopting the 2005 budget at a later date. The council could also modify the amounts appropriated within this ordinance and conduct the second reading. However, the second reading must take place prior to December 24, 2004 to comply with state law. RECOMMENDED ACTION OR MOTION: A motion to conduct the second reading of the 2005 budget ordinance is recommended. BUDGET /FINANCIAL IMPACTS: Once passed, this will be the adopted budget for 2005. STAFF CONTACT: Ken Thompson, Finance /Administrative Services Director FUND ESTIMATED APPROPRIATION GENERAL FUND S28,508,165 STREET FUND 3,318,066 ARTERIAL STREET FUND 856,400 TRAILS & PATHS FUND -0- HOTEL/MOTEL FUND 300,000 DEBT SERVICE LTGO 03 582,835 CAPITAL PROJECTS FUND 332,545 SPECIAL CAPITAL PROJECTS FUND 205,145 STREET CAPITAL PROJECTS FUND 933,000 MIRA13EAU POINT CAPITAL FUND 3,000,000 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 04 -044 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD OF JANUARY 1, 2005 THROUGH DECEMBER 31, 2005 APPROPRIATING FUNDS AND ESTABLISHING SALARY SCHEDULES FOR ESTABLISHED POSITIONS. WHEREAS, State law requires the City Manager to prepare a preliminary budget for the City of Spokane Valley at least sixty (60) days before the beginning of the City fiscal year beginning January 1, 2005 and ending December 31, 2005; WHEREAS, the City Manager in consultation with the Finance Director and Department Heads has prepared and placed on file with the City Clerk a preliminary budget together with an estimate of the amount of money necessary to meet the expenses of the City including payment of outstanding obligations; WHEREAS, notice was posted and published on October 1 and 8, 2004 that the City Council in the City of Spokane Valley would meet and receive public comment in the City Council Chambers prior to the adoption of the budget. WHEREAS, following the filing of the preliminary budget with the City Clerk, notice of the same and a hearing on the budget, the City Council desires to adopt the 2005 budget, including all allowances and appropriations for each fund so that a balanced budget where appropriations are limited to the estimated revenues, is adopted for the City. NOW, THEREFORE, the City Council of the City of Spokane Valley do ordain as follows: Section 1. Adoption of 2005 Budget. The budget for the City of Spokane Valley for the year of 2005 is hereby adopted as the balanced budget of the City with appropriations limited to the total estimated revenues of the City. The final budget for 2005 is attached hereto and by this reference is incorporated herein pursuant to RCW 35A.33.075. For summary purposes the total estimated appropriations for each separate fund plus the aggregate total for all such funds are set forth as follows: Ordinance 04 -044 Annual Appropriation 2005 Page 1 of 2 STREET BOND CAPITAL FUND 406,000 CD BLOCK GRANT FUND -0- CAPITAL GRANTS FUND 3,827,000 BARKER 13R1DGE FEDERAL FUND 234,000 STORMWATER MANAGEMENT FUND 1,312,521 EQUIPMENT R&R FUND 51,051 RISK MANAGEMENT FUND 134,450 The total balance of all funds appropriated for the year 2005 is $44,001,178. Section 2. Positions and Salary Schedules. The various positions and salary ranges for City Employees are attached to this Ordinance as Appendix "A." Section 3. Transmittal of Budget. A complete copy of the budget as adopted, together with a copy of this Ordinance shall be transmitted by the City Clerk to the Division of Municipal Corporations in the Office of the State Auditor and the Association of Washington Cities. Section 4. Severability. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Section 5. Effective Date. This Ordinance shall be in full force and effect five (5) days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City ATTEST: PASSED by the City Council this day of November, 2004. Christine Bainbridge, City Clerk Approved As To Form: Cary P..Driskell, Deputy City Attorney Date of Publication: Effective Date: Michael DeVleming, Mayor Ordinance 04 -044 Annual Appropriation 2005 Page 2 of 2 Position Title Grade 2005 Range City Manager Unclassified Deputy City Manager 21 $ 7,020 - $ 9,000 Community Development Director 21 7,020 - 9,000 Finance Director 21 7,020 - 9,000 Public Works Director 21 7,020 - 9,000 Parks and Recreation Director 19 5,686 - 7,290 City Engineer 19 5,686 - 7,290 Planning Manager 18 5,118 - 6,561 Building Official 18 5,118 - 6,561 Senior Engineer - Capital Projects, Development 18 5,118 - 6,561 Senior Engineer - Traffic, CIP Planning /Grants 17 4,606 - 5,905 Deputy City Attorney 16 4,145 - 5,314 City Clerk 16 4,145 - 5,314 Senior Planner 16 4,145 - 5,314 Accounting Manager 16 4,145 - 5,314 IT Specialist 15 3,731 - 4,783 Associate Planner 15 3,731 - 4,783 Assistant Engineer 15 3,731 - 4,783 Public Works Superintendent 15 3,731 - 4,783 Accountant/Budget Analyst 14 3,358 - 4,305 Administrative Analyst 14 3,358 - 4,305 Assistant Planner 14 3,358 - 4,305 Building Inspector II 14 3,358 - 4,305 Plans Examiner 14 3,358 - 4,305 GIS Technician 14 3,358 - 4,305 Engineering Technician 14 3,358 - 4,305 Maintenance /Construction Inspector 13 -14 3,022 - 4,305 Recreation Coordinator 13 -14 3,022 - 4,305 Code Enforcement Officer 13 3,022 - 3,874 Building Inspector I 13 3,022 - 3,874 Planning Technician 13 3,022 - 3,874 Deputy City Clerk 12 -13 2,720 - 3,874 Senior Center Specialist 12 -13 2,720 - 3,874 Maintenance Worker II 12 2,720 - 3,487 Administrative Assistant 11 -12 2,448 - 3,487 Permit Specialist 11 -12 2,448 - 3,487 Accounting Technician 11 -12 2,448 - 3,487 Maintenance Worker I 10 -12 2,203 - 3,487 Office Assistant II 10 -11 2,203 - 3,138 Office Assistant I 9 -10 1,983 - 2,824 Recreation Assistant 5 1,301 - 1,668 Appendix A EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE 2005 Salary Schedule Appendix A 2005 Salary Schedule CITY OF SPOKANE VALLEY — 2005 BUDGET Table of Contents Budget Message Councilmembers & Staff 1 Budget Introduction 2 City Manager Budget Message 5 Budget Guide About the Budget & the Budget Process 12 Spokane Valley Budget Policies 15 Basis of Accounting and Budgeting 16 Explanation of Revenue Sources 18 Budget Summary Revenue Assumptions 22 Expenditure Assumptions 23 Budget Summary 24 Revenues by Type 25 General Fund Revenue Sources Chart 26 City-Wide Revenue Sources Chart 27 Detail Revenues by Type 28 Expenditures by Department 30 General Fund Expenditures by Department by Type 31 General Fund Expenditures by Department Chart 32 General Fund Expenditures by Type Chart 33 Expenditures General Fund: Legislative Branch 34 Executive & Legislative Support 36 Public Safety 38 Contract Expenditures Chart 40 Operations & Administrative Services 41 Public Works 45 Planning & Community Development 47 Library 50 Parks & Recreation 51 General Government 57 All Other Funds: Street Fund 58 Arterial Street Fund 59 Trails & Paths Fund 59 Hotel/Motel Fund 60 Debt Service Funds 61 Capital Projects & Special Capital Projects Funds 62 CITY OF SPOKANE VALLEY — 2005 BUDGET Table of Contents Street Capital Projects Fund 63 Mirabeau Point Capital Project Fund 64 Street Bond Fund 64 Capital Grants Fund 65 Barker Bridge — Fed Grant Fund 65 Stormwater Management Fund 66 Equipment Rental & Replacement Fund 67 Risk Management Fund 68 City Profile & Other Budget Information General Fund Capital Expenditures 69 All Other Funds Capital Expenditures 70 Position Listing by Department 71 Full Time Equivalent Count by Year 72 2004 Workforce Comparison 73 Community Profile and History 74 Budget Ordinance 78 Glossary 81 10/7/2004 Steve Taylor Position #2 Richard Munson Position #5 Dick Denenny Position #7 CITY OF SPOKANE VALLEY City Council Members Michael DeVleming, Mayor Position #3 Diana Wilhite, Deputy Mayor Position #1 Gary Schimmels Position #4 Mike Flanigan Position #6 Staff David Mercier, City Manager Nina Regor, Deputy City Manager Ken Thompson, Finance & Administrative Services Director Marina Sukup, Community Development Director Mike Jackson, Parks & Recreation Director Neil Kersten, Public Works Director Cary Driskell, Deputy City Attorney Tom Scholtens, Building Official Chris Bainbridge, City Clerk 1 City of Spokane Valley Introduction of the FY 2005 Preliminary Budget Prepared By David Mercier, City Manager September 14, 2004 A. It is my pleasure to submit a "balanced" preliminary budget for Council consideration. This budget proposal acknowledges the fiscal constraints of the City and concentrates on sustaining core program responsibilities, consistent with directionfrom the City Cou B. Again this year, the City Council Finance Committee has worked closely with administrative staff in examining and understanding the budget construction process, the cost control methods applied to the emerging budget, and the financial data upon which the budget is based C. As prescribed by City Council, the six (6) specific goals for Council and staff focus and accomplishment in 2005 are: • Adopt Spokane Valley's First Comprehensive Plan in compliance with the requirements of the Growth Management Act, including an accepted vision statement, documentation of land use goals in support of that vision and identification of significant transportation system goals linked to implementation of the Plan. • Enact a Uniform Development Code that collates all of the City development related regulations into a single, understandable reference that streamlines the permitting process and facilitates customer service and business development. • Recompose the Five -Year Financial Forecast into a Six -Year Strategic Financial Plan that forecasts revenues and expenses; identifies fiscal constraints; and, formulates for Council consideration a budget - balancing plan that proposes necessary service reductions or increased revenues or a combination thereof. • Advance the Interests of Spokane Valley through Effective External Relations such as building a constructive relationship with the newly- composed Board of County Commissioners; participating as full members of regional and statewide boards and Commissions whose work affects the quality of life in the community, and by advocating city issues with neighboring jurisdictions, municipal organizations, the Legislature and Congress. • Collaborate with Wastewater Dischargers and Regulatory Agencies in analyzing data related to system acquisition options and in pursuit of interim and long -term resolutions to water quality and wastewater treatment capacity concerns so that economic development and natural resources continue to support the vitality of the region. 10/7/2004 2 • Establish a formal cite -wide customer service program with emphasis on timely response, a user - friendly atmosphere, and an attitude of facilitation and accommodation within the bounds of responsibility, integrity, and financial capability of the City, including organizational and job description documents while pursuing "best practices" in customer service. • D. Conservative fiscal policies geared toward the attainment of long -term financial health for the City are recommended for adoption in the Final Budget. Meeting the targets established by these fiscal policies require a commitment to fund only those levels of service that are fiscally sustainable. E. This Preliminary Budget adheres to thefiscally responsible principles established last year. Several measures worthy of comment are: 1. The utilization of conservative revenue projections and realistic expenditure forecasts in the construction of this budget proposal — guarding against fiscal disappointments. 2. The constraint of programmatic growth —no new programs. 3. The commitment to fully pay -off the interfund loan used to defray start-up costs and thus end the year with a modest positive fund balance moving out of the red and into the black. 4. The maintenance of a CenterPlace Operating Reserve that will function as a hedge against any lag in the receipt of state funding upon which repayment of construction bonds are dependent —no delay in receipts to date. 5. The funding of a $500,000 Operating Contingency that will serve as the City's first line of defense against unforeseen expenses. F. Several positive fiscal indicators are reflected in the proposed Preliminary Budget. They include: 1. Increases in sales tax receipts apparently due to improved use of the correct Spokane Valley #3213 geo- code by local businesses filing reports with the Washington State Department of Revenue. 2. Continued leveraging of state and federal funds to reduce the cost of local capital improvements borne by city residents. 3. Closely controlling the number of new employees hired. Total direct employment funded in FY 2005 is 52.2 full time equivalent positions versus 46.95 in 2004—a change of only 5.25 FTE's. Two positions are related to the new CenterPlace Community Building due for completion in 2005. Two positions are needed to replace the Stormwater Management Utility work formerly provided by the County as a contract service. The other one and a fraction positions relate to capital project grant solicitation, design and monitoring. 10/7/2004 3 G. The remaining action steps toward adoption of the budget include: 1. October 5: Departmental highlights and work program presentations. 2. October 12: Public bearing to take citizen comment on the 2005 proposed budget 3. October 12: First reading of the Proposed Property Tax Levying Ordinance. 4. October 12: Budget discussions and focus on the Street Fund. 5. October 19: Continued general budget discussions. 6. October 26: A final public hearing on the proposed budget. 7. October 26: Second reading of the Proposed Property Tax Levying Ordinance 8. October 26: Adoption of the Proposed Fee Resolution. 9. October 26: First reading of the Proposed 2005 Budget Ordinance. 10. November 9: Second reading of the Proposed 2005 Budget Ordinance 11. November 9: Adoption of the FY 2005 Budget H. As a budget adoption follow -up activity, a City Council-Staff Retreat is scheduled for February 12, 2005 at which time an updated f veear financial forecast will be reviewed I. The FY 2005 budget process begins in March with a targeted adoption date in mind of November 8, 2005. 10/7/2004 4 City Manager's Budget Message Preliminary Annual Budget For Fiscal Year 2005 Dear Citizens, Mayor and City Council of Spokane Valley: It is my pleasure to present the budget document for the fiscal year of 2005, which represents the combined efforts of the City Council, staff and citizens. Budget Highlights The 2005 budget continues to recognize the dynamic and changing environment within which the City must operate. The budget process has been used to reinforce the City's commitment to delivering its core services, and the budget document was built around funding a set of services and investments that are consistent with that core mission. A summary of key budget highlights for the Council and community's review is as follows: Revenue: Expense: Spoka �Ualley Little Growth: Revenues for the 2005 fiscal year are conservatively estimated to grow at just 1% until the economic rebound occurring elsewhere becomes evident in our region. Unlike the pre - incorporation revenue assumptions, these budget projections reflect conservative growth, consistent with recent trends. Moderate Growth in Current Operational Expenses: Investing in the necessary core services identified by the Council and community creates baseline costs that are currently growing at a higher rate than tax revenues. Even with a remarkably small internal staff, credible programming requires an investment in basic capacity to operate. Threshold personnel costs, the price of operating supplies and charges for contract services are escalating at a compound rate approximating 6% to 8% annually. For example, the Legislature is expected to refinance the cost of the public employee retirement system by charging employers an additional 4% contribution. Capital Investments: Good Deal for City: The best financial news is the fabulous rate of return the City realizes on its investments in capital improvements— roads, bridges and parks —that accommodate the needs of the community. The capital construction program totals $10.303,551 of which the City contributes $1,763.551 or just 17.1 %. 5 Street Fund: 56,500,000 $6,000.000 $5,500,000 55,007,007 54. 500.000 Sg000 COC 53,500,000 $3,000,030 52.500.000 52,000,000 $1,500,000 st,0o0.000 2004 Trouble Brewing: This fund derives its revenues from an allocation of the state gas tax currently amounting to only about $1.2 million, when about $3.8 million is needed to pay for street maintenance activities like snow plowing, pothole repair, resurfacing eroded lanes, sweeping, weed control, street lighting, traffic signals and state roads and a variety of other repairs. Spokane County budgeted about $3.1 million for just a portion of those services prior to incorporation. A new work order system has been implemented in an effort to reduce maintenance services expenses by better targeting work assignments and priorities. The problem facing Spokane Valley for the foreseeable future will be closing that gap between street related revenues and costs. Clearly, reduced expenditures would result in noticeable differences in the conditions of local streets. Strut Fund Operating (Not Capital) Revenuea'Ecpenditure s June 2004 06.11712004 2005 The Current Fiscal Year in Review 6 2006 �— ape,ditrres —a— Revertrs 2005 It has been a challenging yet successful year for Spokane Valley. Initiating a new City is a high civic privilege filled with high demands and activity. The City Council initiated a broad and inclusive public involvement process to develop a twenty (20) year Comprehensive Plan that will serve as the foundation of vision, values and mission which will guide the community in reaching its potential. The absence of prior history as a city requires us all to continuously design, build and evaluate public policies, services and spending plans. The leaming curve is steep, the workload plentiful and the satisfaction of effort rewarding. Despite the demands created by these changing dynamics, the City achieved substantial progress in meeting the 2004 budget goals this year. Progress in Attainment of the six (6) Major Goals of 2004: Experiment with a Managed Competition Program designed to identify alternative service providers at more economical rates than accorded by current service providers. With City Council approval, staff researched the methods used to implement managed competition elsewhere and recommended that pilot projects be launched seeking competitive bids from providers of library and park maintenance services. Proposals are due back in early fall. Initiate the Development of Spokane Valley's First Comprehensive Plan which will create the City's long -term vision and link transportation sytstem improvements to land use goals in support of that vision The City Council and Planning Commission held several joint sessions to initiate brainstorming about the future of the new City. They created a draft vision statement that creates the broad statement of purpose to be pursued in developing a Comprehensive Plan: "A community of opportunity where individuals and families can grow and play and businesses will flourish and prosper." Subsequently, a scientifically valid survey of community attitudes and perceptions was commissioned and the results shared with the community. Five (5) well attended neighborhood meetings were held around the City and citizens energetically participated in exercises designed to solicit their opinions about a broad range of community wide and neighborhood issues. Staff prepared numerous draft documents to stimulate policy discussions about the fundamental issues facing the community. Continuously Improve Overall Communication between government and its citizens, between staff and Council, among staff and between Councilmembers. The City's official website was designed and made available online for ease of information sharing between citizens and their City Hall. The City Council and staff engaged in six (6) Conversations with the Community which provide a comfortable To Meeting atmosphere at various locations so that citizens could talk about city matters that interest them. Outreach to the youth in our community was made through a series of "Pizza with the Mayor" conversations in Local schools where students and Councilmembers met and discussed issues of importance to students. As a result, a 7 • • r-1.tdde T *,. v4ix A.. -acme 32 6 Wes! • fi : 'Atilrg IVES Rrce = .� ..t Y . - I Y I[ M1H V .Y/Y .1� 611 Oe W. 1 .mp• ddpeams ed.* d 0' >idomdm\ ,IMI -- 7c f....• h..ed ., y, f...d dm f..r.. •. .l- mod r f....e eland r r hi. vim, urt a,++ tear. Lod . r Comm* D..Mq..Y M.m t .w aria I.1 5... C•1e11/ x_ ImlN• al ../M am Om Sped Van C•ammif f..e. nob tin.... lard. rc yggi Y __ M _ 7II7S - 2010fe Ter lidep wisaL•e.= Vim Student Advisory Council was formed to contribute energy and ideas to the development of Spokane Valley. City Council and staff held two retreats that were open to the public to review and adopt work plans for each city department that outlines the major tasks to be accomplished during the year. Develop a Five -Year Strategic Financial Plan that forecasts revenues and expenses as well as identifies es funding and financial challenges and options. The City faces many complex issues which require multi -year projects and programs to effectively address them. A five -year financial forecast of the City's financial health was made to create a snapshot of our long -term fiscal situation so that today's budget choices are not made without awareness of the financial trends that affect the sustained affordability of public services. The forecast has served as a useful tool to evaluate spending priorities. Develop and Strenzthen External Relations to advance the interests of Spokane Valley through interaction and advocacy with neighboring jurisdictions, the state legislature, funding boards and commissions, the congressional delegation and statewide and national municipal organizations. Councilmembers have readily assumed additional responsibilities when they agreed to provide Spokane Valley representation on twenty -seven (27) regional boards and commissions whose activities affect the quality of life in our community. Both Council and staff have initiated contact with their counterparts locally, statewide and nationally about the issues that matter most to Spokane Valley. Develop an Approach for Long -Term Wastewater Services including the evaluation of a regional system option. An immense amount of time and talent has been applied in researching potentially workable interim and long -term solutions to wastewater treatment problems in order to provide for continued growth and economic development in the region. There are major capacity limitations, natural resource protection concerns and regulatory hurdles to overcome that require an extraordinary willingness and necessity to collaborate with people of diverse opinions about how best to proceed. City representatives have participated extensively in sorting through a variety of complex choices and restrictions that defy simple solutions. That work continues. The Budget Proposal for 2005 Balanced Budget Proposed: The 2005 budget is in balance; expenses have been limited to known or reasonably predictable revenues. The General Fund does not register a positive fund balance because the start-up interfund loan of 53.69 million required to fund the first year of city operations has not been completely repaid. However, this budget proposal is calibrated to continue paying down this loan amount at an accelerated rate. In pursuit of that outcome, special attention was given to limiting the growth in new programs and financial commitments while city revenue and expenditure patterns stabilize. This approach allows available resources to be put toward sustaining services consistent with Council's priorities for 2005 and beyond. 8 The City of Spokane Valley growth rate was a modest 2.3 %. One of the many fiscal realities we must contend with, is the realization that sufficient revenues are not available for use in defraying the costs associated with adding and maintaining basic infrastructure and programs Therefore, proposed increases in expenditures for ongoing operations continue to be made with caution, relying on the City's five -year financial forecast that indicates significant sustainability challenges for the foreseeable future. Public Works. Three point two five positions are proposed for addition to the public works department in the Engineering division. A project engineer is needed to keep up with the demand for rehabilitation of roads, bridges and new facilities added to the system from new development and the City's capital program. The addition in Engineering will allow for a substantial amount of the design and monitoring work that is currently contracted to outside vendors to be completed in -house thereby assuring the City can meet its responsibilities in a timely manner as mandated by customer needs and relevant state and federal laws. 9 "Fact About 562,500,004 of building construction value is needed to produce enough property tax revenue to pay for each police officer position." Department Achievements: Each of the City's departments undertook an aggressive work program in 2004. The budget document contains descriptions of their accomplishments for the year and their goals for next year. I invite residents to take a few minutes to acquaint themselves with the efforts made by municipal employees on their behalf. Multiple positions needed to address demands of a City of 83,950 people: As we moved through the formative stage of incorporation, this City has taken a conservative approach to adding new City staff. A 2004 survey of 31 full service and contract Washington cities with populations greater than 30,000 revealed an average count of 862 full -time employees and 51 part-time employees. By comparison, Spokane Valley contracted for many services and employed just 47 full -time and 4 part -time employees. [Please see the attached 2004 Work Force Comparison.] Although significant staff increases are warranted, the conservative approach followed in formulating the 2005 preliminary budget, which affords the addition of five point two five (5.25) full -time equivalent positions spread across two departments. Parks. Two positions are proposed to staff CenterPlace, the new community building now under construction at Mirabeau Point and fully financed through state revenues and donations. Occupancy is anticipated next summer and a maintenance worker and administrative assistant are needed to operate the facility for the community. Lastly, an engineer and one technician will be brought "in- house' because Spokane County has advised the City that it no longer has the staff to provide stormwater facility management and construction as a contracted service as they had in 2004. So the funding used to pay for the contract services will be redirected to pay for the new City personnel who perform the stormwater functions. Goal Statement 2005: The Principal 2005 Budget Goals - flee 200.5 budget reflects the dispatch of resources consistent with the Council's core service. priorities for the last, the currZnt_arid future budget l The following list reflects the broad service goals affecting core services for the City_ :Adopt Spokane Valley's First Comprehensive Plan in compliance with the requirements of the • tirowth'�ianai ernent :Act_ including an accepted vision statement documentation of land use goals in sttplxorl of that c and identification o1 significant transportation system goals linked to urpiementation of the Plan_ Enact a Uniform 1)cvelopinent Code that collates all of the City development related regulations into a sinttic. understandable reference that streamlines the permitting process and facilitates customer cr ice and business dcvclopruenL Recompose the Five-Year Financial Forecast into a Six -Year Strategic Financial Plan that forecasts revenue; and expenses: identifies fiscal constraints: and fomiulates for Council consideration a budeet-balanciint plan that proposes necessary s-rvice reductions or increased rCv= or a combination thereof Advance the Interei.ts of Spokane Valley through Effective I. tcrnal Relations such as buildin�� a constructive relationship with the newly- cornposet] Board of County l participating as full member of re4ional and statewide hoards and 'omrissions whose work affects the quality of lift: in the community, and by advocating tty issues i ith rrei= la►txorinijutisdictions, municipal or�.anizations, the Legislature and 'ouurc-ss. ( oil:tlwr :tte %tiith %Yasteuater Dischargers and Regulatory Agencies in Anal■ I1ata Rel :ttetl to tit stem Acquisition Options and in pursuit of interim and long -terin resolutions t water quality and w rstcw'atcr treatment capacity concerns, sit that economic development and nattrm! resources continue to support the Vitality Oi ti,_ ree Establish a formal city-wide customer service program with emphasis on timely response, a user - friend]; atmosphcr.:, and an attitude of facilitation and accommodation within the bounds of resixrnsihilit). integrity_ and financial capability of the City, including organirational and job description documents while pur=.titnl'_ best practices" in customer sell ice. Acknowledgments: In closing, it has been a pleasure to work with the Council and individual City departments to usher this preliminary budget in its earliest stages. I look forward to working with the City's team over the coming year to deliver to the citizens of Spokane Valley the services it funds. I also offer my continued appreciation to the citizens of Spokane Valley, the Mayor and City Council, the departments, and all those individual staff members who have made it possible for the City to travel this early road of success, sampling its potential and working toward a bright future. Everyone involved continues to give generously of their time and energy during this period of rapid formation of community identity and programs, and has risen to the challenges it has presented. Thanks also for the patience and feedback from the many citizens who have shown interest or volunteered their time in activities to improve the quality of life in Spokane Valley. Respectfully, David Mercier, City Manager 11 _ ..r... Valley 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.921.100 • Fax: 509.921.1008 • citythall @spokanevalle T O: David Mercier, City Manager and Members of Council FROM: Ken Thompson, Finance & Administrative Services Director DATE: September 1, 2004 SUBJECT: About the Budget and the Budget Process The budget includes the financial planning and legal authority t o the Additionally, the budget provides significant policy direction by the City Council staff and community. As a result, the City Council, staff and public are involved in establishing the budget for the City of Spokane Valley. The budget provides four functions: 1. A Policy Document The budget functions as a policy document in that the decisions the taken for the futureuA a wi reflect the general principles or plans that gw policy document, the budget makes specific attempts to link desired goals and policy direction to the actual day -to -day activities of the City staff. 2. An Operational Guide The budget of the City reflects its operation. Activities of each City function and owing organization have been planned, debated, fo formalized, understanding of ibed in the the v ous of sections. This process will help to maintain the City and how they relate to each other and to the attainment of the policy issues and goals of the City Council. 3. A Link with the General Public The budget provides a unique opportunity to allow and encourage public review of City operations. The budget describes the activities of the City, the reason or cause for those activities, future implications, and the direct relationship to the citizenry. 4. A Le all , Re wired Financial Plannin° Tool The budget is a financial planning tool, which has been its most traditional use. In this light, preparing and adopting a budget is a State law requirement �Th mu t adopted asa Ti 35A of the Revised Code of Washington (RC ) c budget balanced budget and must be in place prior to the beginning of the City's fiscal year. The xpenditures by budget is the legal authority to expend public moneys levelcTheorevenueseof the City are limiting the amount of the appropriation at th e fund 12 ri estimated, along with available cash carry- forward, to indicate funds available. The budget takes into account unforeseen contingencies and provides for the need for periodic adjustments. Year 2005 Budget Process The City of Spokane Valley operates on a calendar year basis. It utilizes an incremental budgeting approach that assumes, for most functions of government, that the current year's budget is indicative of the base required for the following year. Any increases are incremental and based on need defined by the organization's budget policies, emerging issues, Council goals, and available resources. The formal budget planning begins in the Spring with discussions between the City Manager and City Council during a mid -year retreat. Following the retreat, the City Manager and the Department Directors prepare the preliminary budget based upon the City Council priorities. The City Council reviews the preliminary budget beginning in September. In June, departments prepare requests for new staff, programs, or significant increases to their current year budget that will address emerging issues and other operationalneeds. In their requests, the departments identify the problem that they are trying to address, the recommended solution, implementation plan, projected cost and expected outcomes. The Finance Department and City Manager conduct an analysis of the departmental base budgets and the revenue outlook for the coming year to determine the availability of funds for any new initiatives. During June and July, the departments also develop their base budgets. These budget requests are submitted to the Finance Department by the middle of July. In early August, the City Manager reviews each department's budget requests and develops a preliminary budget recommendation. As mandated by RCW 35A.33.135, the first requirement is that the City Manager submit estimated revenues and expenditures to the City Council on or before the first Monday in October. The preliminary budget is presented to the City Council in late September or early October. Public hearings are held to obtain taxpayers' comments, and revisions as applicable, are made. The Council makes ud t no later December 31 budget The final adopts by ordinance a final balanced budget budget as adopted is published, distributed, and made available to the public during the first three months of the following year. After the budget is adopted, the City enters a budget implementation and monitoring stage. Throughout the year, expenditures are monitored by the Finance Department and department directors to ensure that funds are within the approved budget. Finance provides financial updates to the City Council to keep them current with the City's financial condition. Any budget amendments made during the year are adopted by City Council ordinance. 13 The City Manager is authorized to transfer budgeted amounts within a fund; however, any revisions that alter the total expenditures conditions n employment must be authorized employee positions, salary rang es or other approved by the City Council. When the City Council determines that it is in the best interest of the City to increase or decrease the appropriation for a particular fund, it may do so by ordinance approved by one more than the majority after holding one public hearing. Si ficant Chan es to the 2005 Bud et A review of the 2005 preluninary budget reveals the following significant changes: Revenues 1. Sales tax receipts have been increased $1,080,000 reflecting more accurate coding by retailers of sales locations and growth in retail sales of 3 + %. Also, $600,000 of this increase is based on the voter approved sales tax increase of .1% for criminal justice purposes. 2. A vibrant construction industry has fueled an increase of $154, 000 in estimated building permits and planning fees. 3. Fine receipts have been increased $200,000 reflecting a greater backlog of citations. 4. Recreational program revenues have been reduced because the city council prefers not to compete with organizations offering similar activities. E•x nenditures 1. CenterPlace at Mirabeau Point, a regional $ 21 hav included in the summer of 2005. Operating costs budget. 2. Construction costs on CenterPlace at Mirabeau Point have been reduced from $9.5 million to $3 million reflecting the completion of this project. City of Spokane Valley Selected Budget Policies responsibility for formulating budget Department directors have primary sp direction, and for proposals in line with City Council and. City Manager priority implementing them once they are approved. The Finance Department is responsible for coordinating the overall preparation and administration of the City's budget. statutes is function local cai om pli a nce with applicable State of Washington n o budgeting practices. The Finance Department assists department staff in identifying budget problems, formulating solutions and alternatives, and implementing any necessary corrective actions. lnterfund charges will be based on recovery of the direct costs associated with providing those services. Budget adjustments requiring City Council approval will occur through the ordinance process at the fund level prior to fiscal year end. The City's budget presentation will be directed at displaying the City's services plan in a Council/constituent-friendly format. Achieving a fund balance of 8% to 15% of undesignated revenues would at fiscally prudent in providing for cash flow requirements, defraying p expenditures and sustaining essential services. begin pfi c o sts year with a negative fund balance due to an interfund loan to pay _ t in 2003 and 2004. The proposed budget constraints e �° � end the )ear es so with a s sufficient funds will be available topay-off modest positive fund balance. At full stabilization in the eighth year, short term debt shall not exceed 10% of revenues. No long term debt will bey debt will without fork of a revenue purposes source to repay the debt. Long term lly The City will maintain equipment replacement �d of departments owning to budgeted contributions from the operating P replace the equipment at the end of capital equipment in an amount necessary ep its useful life. Life cycle assumptions and required contributions will be reviewed annually as part of the budget process. 15 BASIS OF ACCOUNTING AND BUDGETING Accounting Accounting records for the City are maintained in accordance with methods prescribed by the State Auditor under the authority of Washington State law, Chapter 43.09.20 RCW, and in compliance with generally accepted accounting principles as set forth by the Governmental Accounting Standards Board. Basis of Presentation - Fund Accounting The accounts of the City of Spokane Valley are organized on the basis of funds, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of double -entry accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The City's resources are allocated to and accounted for in individual funds depending on their intended purpose. The following are the fund types used by the City of Spokane Valley: Governmental Fund Types Governmental funds are used to account for activities typically associated with state and local government operations. All governmental fund types are accounted for on a spending or "financial flows" measurement focus, which means that typically only current assets and current liabilities are included on related balance sheets. The operating statements of governmental funds measure changes in financial position, rather than net income. They present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. There are four governmental fund types used by the City of Spokane Valley: General Fund This fund is the primary fund of the City of Spokane Valley. It accounts for all financial resources except those required or elected to be accounted for in another fund. Special Revenue Funds These funds account for revenues that are legally restricted or designated to finance particular activities of the City of Spokane Valley. Special Revenue funds include the Street Fund, Arterial Street Fund, Trails & Paths Fund, and the Hotel/Motel Fund. Debt Service Funds These funds account for financial resources which are designated for the retirement of debt. Debt Service funds are comprised of the Debt Service LTGO 03. Capital Project Funds These funds account for financial resources, which are designated for the acquisition or construction of general government capital projects. Capital Project Funds include the Capital Project Fund, Special Capital Projects Fund, Streets Capital Projects Fund, Mirabeau Point Capital Project Fund, CDBG Fund, Capital Grants Fund, and Barker Bridge Federal Grant Fund. 16 Proprietary Fund Types Proprietary funds are used to account for activities similar to those found in the private sector where the intent of the governing body is to finance the full cost of providing services, including depreciation, which based on the commercial model uses a flow of economic resources approach. Under this approach, the operating statements for the proprietary funds focus on a measurement of net income (revenues and expenses) and both current and non - current assets and liabilities are reported on related balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. As described below, there are two generic fund types in this category: Enterprise Funds These funds account for operations that provide goods or services to the general public and are supported primarily by user charges. The Stormwater Management Fund is included in this group of funds. Internal Service Funds These funds account for operations that provide goods or services to other departments or funds of the City. The Equipment Rental and Replacement Fund and Risk Management Fund are included in this group of funds. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. The City of Spokane Valley uses a modified accrual basis of accounting. Modified accrual recognizes revenues when they become both measurable and available to finance expenditures of the current period. The basis of accounting for enterprise and internal service funds is full accrual. The appropriate basis is used throughout the budgeting, accounting, and reporting processes. Full accrual is a method of accounting that matches revenues and expenses with the period to which they relate, rather than focusing on actual cash flows. In this method, for example, an asset is depreciated as it is "used up ", and the expense is recognized in periodic increments, rather than assuming the asset holds its value until it is actually disposed of. However, since the focus of budgeting is on the revenues and expenditure accounts, depreciation and amortization are not considered budgetary accounts, and are excluded from the budgeting system. Budgets and Budgetary Accounting Annual appropriated budgets are adopted for all funds. These funds are budgeted on the modified cash basis of accounting. The financial statements include budgetary comparisons for those funds. Budgets are adopted at the fund level that constitutes the legal authority for expenditures. Annual appropriations for all funds lapse at the fiscal period end. 17 GENERAL FUND REVENUES: EXPLANATION OF REVENUE SOURCES Property Tax Revenue Property taxes play an essential role in the finances of the municipal budget. State law limits the City to a 53.60 levy per $1,000 assessed valuation, deducting from there the levy of $1.50 by the Spokane County Fire Districts #1 and #8, which leaves the City with the authority to levy $2.10 for its own purposes. The levy amount must be established by ordinance by November 15th prior to the levy year. Local Retail Sales and Use Tax The local retail sales and use tax is comprised of two separate .5% options with the County receiving 15% of each .5 %. After deducting .01% as a County administrative fee, the City's effective rate is .84 %. Local Criminal Justice Sales Tax Local Sales Tax for Criminal Justice funding is to be used solely for criminal justice purposes, such as the City's law enforcement contract. This tax is authorized at 1/10 of 1% of retail sales transacted in the County. Of the total amount collected, the State distributes 10% to the County, with the remainder being distributed by population to the cities and the unincorporated areas of the County. Beginning in 2005, an additional .1% voter approved increase in sales tax will be devoted to criminal justice purposes. Gambling Tax Revenues Gambling tax revenues must be spent primarily on law enforcement purposes pertaining to gambling. Funds remaining after necessary expenditures for such enforcement purposes may be used for any general government purpose. Gambling taxes are to be paid quarterly to the City, no later than the last day of January, April, July and October. The' City imposes a tax on the following forms of gambling at the following rates: Bingo (5% gross, less prizes); Raffles (5% gross, less prizes); Games (2% gross, less prizes); Punch Boards (5% net); Pull Tabs (5% net); Card playing (10% gross). Leasehold Excise Tax Taxes on property owned by state or local governments and leased to private parties (City's share). Franchise Fees Cable TV is the only franchise fee levied in the City at a rate of 5% of gross revenues. This is a fee levied on private utilities for the right to use city streets, alleys, and other public properties. State - Shared Revenues State - shared revenues are received for liquor sales, and motor vehicle excise taxes including travel trailer and camper excise tax. These taxes are collected by the State of Washington and shared with local governments based on population. State - shared revenues are distributed on either a monthly or quarterly basis, although not all quarterly revenues are distributed in the same month of the quarter. The 2004 population figure used in the 2005 Preliminary Budget is 83,950 as determined by the Office of Financial Management for Washington State. This figure is important when determining distribution of State shared revenues on a per capita basis. Liquor Board Profits and Liquor Excise Tax Cities receive a share of both liquor board profits and liquor excise tax receipts. The profits are distributed on the last day of March., June, September, and December. The excise portion is distributed on the last day of January, April, July, and October. To be eligible to receive these revenues, a city must devote at least two percent of the distribution to support an approved alcoholism or drug addiction program. Service Revenues Fees are charged for services rendered by the City of Spokane Valley. Most of the fees in the General Fund are construction inspections and permits related to services such as planning, zoning and building.. Fines and Forfeitures Fines and penalties are collected as a result of Municipal Court rulings and other miscellaneous rule infractions. All court fines and penalties are shared with the State and the City, on average, keeps less than 50% of the amount collected. Recreation Program Fees The Parks and Recreation Department charges fees for selected recreation programs. These fees offset some of the costs related to providing the program. Investment Interest The City earns investment interest on sales tax, property tax, and fund investments. OTHER FUND REVENUES: STREET FUND: Motor Vehicle Fuel Excise Tax (gas taxi There are two separate distributions to cities of revenues from this tax. Cities with a population of 15,000 and above are required to account for the per capita share of the unrestricted gas tax as a source to finance street maintenance. Cities in this population group are also required to account for the per capita share of the restricted gas tax to be used for arterial street construction. Both distributions must be accounted for in separate funds, the Street Fund receives the 19 unrestricted portion of the gas tax, while the restricted portion goes to the Arterial Street Fund. The City's allocation for the gas tax in the Street Fund for 2005 is $14.33 per capita. ARTERIAL STREET FUND: Motor Vehicle Fuel Excise Tax (eas tax) This fund receives its tax revenue from the restricted portion of the gas tax. This Fund is to provide capital project funding as well as major maintenance functions on arterial streets. The City's allocation for the gas tax for 2005 is $6.70 per capita. TRAILS & PATH FUND: A small percentage of the City's gas tax must be set aside for trails and paths. This money will likely accumulate for several years until adequate dollars are available for a project. HOTEL,MOTEL FUND: This fund receives all revenue resulting from the Hotel/Motel Tax levied upon charges made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp and other transient accommodations in the City. The tax rate is 2 percent of the selling price or charge made for the lodging. It is collected and administered by the Washington State Department of Revenue. State law requires that these taxes be credited to a special fund with limitations on use, principally to support tourism/convention activities and related facilities, as prescribed by RCW 67.28.310. DEBT SERVICE FUND — LTGO 03: The Public Facilities District will provide funding for the debt service on CenterPlace Bonds. The City's Capital Projects and Special Capital Projects Funds will provide funding for the debt service on street bonds. CAPITAL PROJECTS FUND: Under Washington State Law, RCW 82.46.010, the City is allowed to impose an excise tax on each sale of real property at the rate of one - quarter of one percent of the selling price. The revenue generated is be used for financing capital projects as specified in the capital facilities plan under the Growth Management Act. SPECIAL CAPITAL PROJECTS FUND: Under Washington State Law, RCW 82.46.010, the City is allowed to impose an additional excise tax on each sale of real property at the rate of one - quarter of one percent of the selling price. The revenue generated is to be used for financing public works capital projects as specified in the capital facilities plan under the Growth Management Act. 20 INTERFUND TRANSFERS: Many funds receive their revenues from other funds in the form of an interfund transfer. These transfers may represent payments for service, an operating transfer, or a concentration of revenues for a specific project. The following funds receive transfers from other fiends. General Fund is budgeted to receive transfers from Street Fund, $152,495, Capital Projects, $40,000, Stormwater Management Fund, $54,462 and Hotel/Motel Fund, $40,000. Trails & Paths Fund is budgeted to receive a transfer from the Street Fund in the amount of $5,100. Street Capital Projects Fund is budgeted to receive transfers from Arterial Streets, $670,400, and Special Capital Projects, $112,600, and Stormwater Management, $150,000. Capital Grants Fund is budgeted to receive transfers from Arterial Streets, $186,000, and Street Bond Fund, $406,000. Equipment Rental & Replacement is budgeted to receive transfers from the General fund for interfund charges in the total amount of $145,305. Risk Management Fund is budgeted to receive S134,450 from the General Fund for employment security payments and City insurance premiums. STORMWATER MANAGEMENT FEE: This fee is imposed upon every developed parcel of property. within the City and is an annual charge of $17.00 for each single family unit and $17.00 per 3,160 square feet of impervious surface for all other properties. These charges are uniform for the same class of customers or service facilities. These fees are estimated to be $1 ,270,750 for 2005. 21 2005 PRELUd1NA.RY BUDGET Major Revenue Assumptions 1. The 2004 population figure used in the 2005 Preliminary Budget is 83,950 as determined by the Office of Financial Management for the State of Washington. This figure is important when determining distribution of State shared revenues on a per capita basis. 2. The 2005 estimated assessed valuation (AV) is $4,700,000,000. The City's actual assessed value will be assigned by the Spokane County Assessor. 3. Property taxes are levied based on assessed value and the City expects to collect 95% of those taxes levied in 2005 realizing the remaining 5% may be collected in the following years. 4. Estimates for sales tax receipts were based on the City's actual collections in 2004. 5. Gambling tax estimates were estimated from amounts collected by the City in 2004. 6. Franchise fees were based upon the projected fees collected in the 2004 budget year. 7. Liquor excise taxes and liquor profits are based upon estimates from the Municipal Research Services & Center (MRSC). 8. Fines & Forfeits were based upon projected collections by the City in 2004. 9. Building permit and land use fees were estimated by the Spokane Valley Community Development Department based upon 2004 records. 10. Real estate excise taxes were based upon projected collections by the City in 2004. 11. Gas tax revenues are based upon estimates from the MRSC. 12. The Stormwater Management fee is based upon an Equivalent Residential Unit (ERU), or the amount of stormwater associated with the frontage of a standard residence. 22 2005 PRELIMINARY BUDGET Major Expenditure Assumptions 1. Service levels are the same or greater than provided in 2004. 2. Positions and salary ranges are based upon the City's compensation and classification plan. 3. Benefit amounts were based upon the proposed employee benefits plan. 4. The contract costs for public safety, library, park maintenance and street maintenance are based upon estimates by City staff. 23 City of Spokane Valley 2005 Budget Summary Est. Beg Est. Ending Fund Fund Balance Revenues Expenditures Fund Balance 001 General Fund $ 544,981 • $ 28,508,165 $ 28,508,165 $ 544,981 101 Street Fund 1,241,049 * 2,562,109 3,318,066 485,092 102 Arterial Street Fund 519,538 566,465 856,400 229,603 103 Trails & Paths Fund 12,800 5,100 17,900 105 Hotel/Motel Fund 86,827 351,000 300,000 137,827 204 Debt Service LTGO 03 582,835 582,835 - 301 Capital Projects Fund 1,299,904 806,000 332,545 1,773,359 302 Special Capital Projects 1,106,457 806,000 205,145 1,707,312 303 Street Capital Projects 30 933,000 933,000 30 304 Mirabeau Point Capital Projects 3,000,000 - 3,000,000 305 Street Bond Capital Projects 406,000 406,000 306 CD Block Grant Fund - 307 Capital Grants Fund 3,827,000 3,827,000 308 Barker Bridge Federal Fund 234,000 234,000 402 Stormwater Management 784,276 1,276,750 1,312,521 748,505 501 Equipment R & R 127,587 145,305 51,051 ' 221,841 502 Risk Management 6,378 134,450 134,450 6,378 $ 9,135,827 $ 40,738,179 $ 44,001,178 $ 5,872,828 * Estimated beginning fund balance includes reserves for Mirabeau operations and an adjustment for a 2005 loan repayment. These do not include interfund loans receivable or payable. General Fund Estimated Beg. Fund Balance: Expected ending fund balance 2004 $ (257,755) Adjustments for: Mirabeau Operating Reserve (300,000) Service Level Stablization Reserve (200,000) 2005 Interfund Loan Repayment 1,302,736 Estimated beginning fund balance 2005 $ 544,981 24 City of Spokane Valley 2005 Budget Revenues by Type General Fund Property Tax Sales Tax Gambling Tax Leasehold Excise Tax Franchise Fees State Shared Revenues Service Revenues Fines and Forfeitures Recreation Program Fees Miscellaneous & Investment Interest Transfers Total General Fund Other Funds Street Fund Arterial Street Fund Trails & Paths Fund Hotel /Motel Fund Debt Service LTGO 03 Capital Projects Fund Special Capital Projects Fund Street Capitial Projects Fund CD Block Grant Fund Capital Grants Fund Barker Bridge - Federal Grant Fund Stormwater Management Fund Equipment Rental & Replacement Risk Management Fund Total Other Funds Total All Funds 25 $ 10,055,316 13,000,000 800,000 5,000 620,000 1,121,709 1,293,000 '1,200,000 90,000 36,000 287,140 28,508,165 2,562,109 566,465 5,100 351,000 582,835 806,000 806,000 933,000 3,827,000 234,000 1,276,750 145,305 134,450 12,230,014 $ 40,738,179 Recreation Program Fees 0.3% Fines & Forfeitures 4.2% Service Revenues 4.6% State Shared Revenues 3.6% All Other Revenues 1.0% Franchise Fees 2.2% Gambling Tax 2.8% City of Spokane Valley 2005 General Fund Revenue Sources $28,508,165 Property Tax 35.3% Sales Tax 45.6% Stormwater Management Fee - 4.3% Real Estate Excise Tax 3.9% Facilities District 1.0% Hotel /Motel Tax 0.8% Motor Fuel Excise Tax 4.3% All Other Revenues 0.7% Recreation Program Fees 0.2% Fines & Forfeitures 2.9% Service Revenues 3.1% Interfund Transfers State Shared Revenues 2.5% 8.8% City of Spokane Valley 2005 Estimated City Resources $40,738,179 Franchise Fees Gambling Taxes 1.5% 1.9% 27 Property Taxes 24.2% Grant Proceeds 8.4% Sales Tax 31.4% General Fund Revenues Proo9Av Tax Property Tax Property Tax - Delinquent City of Spokane Valley 2005 Budget Detail Revenues by Type Sales Taxes Sales Tax 11,000,000 11,460,000 Sales Tax - Criminal Justice 920,000 920,000 Sales Tax - .1 % County Criminal Justice - 609,000 11,920,000 13,000,000 Gambling Taxes Punch Boards & Pull Tabs 110.000 130,000 Bingo & Raffles 30,000 44,000 Card Games 550,000 626,000 690,000 800,000 Leasehold Extiso_Tax 5.000 5,000 Franchise Fees 640,00D 620,000 State Shared Revenues MVET Criminal Justice - Population 11,100 18,469 Criminal Justice Area #1 14,134 16,000 Criminal Justice Area #2 20,191 22,500 Criminal Justice Area #3 20,191 22,500 Criminal Justice Area #4 17,200 90,000 DUI - Cities 12,000 12,000 Liquor Board Excise Tax 296,000 327,405 Liquor Board Proft 492,000 612,835 882,815 1,121,709 Service Revenues Building Permit, 509,000 600,000 Plumbing Permts 49,000 53,000 Grading Permits 7,000 7,000 Mechanical Permits 49,000 50,000 Demolition Permits 1,000 1,000 Misc. Permit~ & Foow 195,000 205,000 Plans Check Fees 197,000 197,000 Planning Fees 135,000 180,000 1,139,00D 1,293,000 Fines and Forfeitures Fines & Forfeits - Traits 500,000 600,000 Other Criminal Non- Trafnc Fines 500 500,000 1,000,000 1,200,000 Recreation Program Characs Activity Fees (To use a recreational facility) 9,000 30,000 Program Fees (To participate in a program) 112.000 60,000 121,000 90,000 investment Interest Investment Interest 6,000 12.000 Sales Tax Interest 6,000 12,000 Property Tax Interest 6,000 12,000 18,000 36,000 Transfers Transfer from Street Fund 42,500 40,000 Transfers for Interfund Billings 207,140 Transfer from Capital Proiects 80,000 40 122,500 287,140 Total General Fund Revenue $ 25,804,125 S 28,508,165 2004 Amended 2005 Budget Budget $ 9,265,809 $ 9,870,000 185,316 9,265,809 10,055,316 Other Fund Revenues 101 Street Fund Motor Fuel (Gas) Tax Operating Transfer - Loan Repayment Transfer from Mlrabeau - Interfund Services Interfund Loan Interest 102 Arterial Street Fund Motor Fuel (Gas) Tax Investment Interest 103 Trails & Paths Fund Transfer from Street Fund 105 Hotol/M tel Fund HotellMotel Tax Investment Lntarost 204 IJebt Service - LTGO 03 Facilities District Revenue Debt Service Transfer from Capital Projects and Special Capital Projects 301 Capital Pro jects Fund REET 1 -1st 25 Percent Investment Interest ,302 Special Capital Projects Fund REET 2 - 2nd .25 Percent Investment Interest 303 Street Capital Projects Transfer from Arterial Street Fund Transfer from Stormwator Management Fund Transfer from Special Capital Projects 306 co Block Grant Fund CDSG Grant Proceeds Transfer from Arterial Street Fund 3D7 Ca akar Grants Fund Capital Grant Proceeds Transfers from Arterial Street Fund Transfers from Street Bond Fund 308 Barker Bridge Reeenstruction - Fed Grant Federal Grant Proceeds 402 Storrmw+ter Management Fiend Stormwator Management Fee Investment Interest 501 Equipment Rental & Replacement Fund Workstation Charges Pool Car Charges Vehicle Purchase Transfers Vehicle Replacement Charges 502 Risk Management Fund Employment Security Transfers Risk Management Services City of Spokane Valley 2005 Budget Detail Revenues by Type Total Revenues 29 2004 Amended Budget 1,187,200 800,000 75,000 2,062,200 542.000 542,000 12,800 380,000 380,000 600,000 200,000 800,000 840,000 840,000 840,000 640,000 600,000 200,000 800,000 375,965 128,035 504,000 547,000 290,000 837.000 702,000 747,500 747,500 88,200 5,560 15,000 37,874 148 7,500 130,000 137,500 Total All Other Funds 9,351,634 $ 35,155,759 2005 Budget 1,203,004 1,259,105 25,000 75,000 2,562,109 562,465 4,00D 566,465 5,100 350,000 1,000 351,000 397,745 185,090 582,835 800,000 6,000 806,000 800,000 6,000 809,000 670,400 150.000 112,600 933,000 3.235,000 168,000 406,000 3,827,000 234,000 1,270,750 6,000 1,276,750 81,750 3,800 18,551 41,204 145,305 4,450 130,000 134,450 12,230.014 $ 40,738,179 City of Spokane Valley 2005 Budget Expenditures by Department General Fund Legislative Branch $ 288,226 Legislative & Executive Services 442,867 Public Safety 15,711,424 Operations & Administrative Deputy City Manager 268,942 Finance 436,969 Legal 202,307 Human Resources 119,383 Public Works 723,990 Planning & Community Dev. Planning 934,006 Building 696,559 Library 2,270,000 Parks & Recreation Administration 215,425 Maintenance 854,837 Recreation 158,215 Aquatics 255,818 Senior Center 126,592 CenterPlace 321,299 General Government 4,481,306 Total General Fund 28,508,165 Other Funds Street Fund 3,318,066 Arterial Street Fund 856,400 HotellMotel Fund 300,000 Debt Service - LTGO 03 582,835 Capital Projects Fund 332,545 Special Capital Projects Fund 205,145 Street Capitial Projects Fund 933,000 Mirabeau Point Capital Projects Fund 3,000,000 Street Bond Capital Projects Fund 406,000 CD Block Grant Fund - Capital Grants Fund 3,827,000 Barker Bridge - Federal Grant Fund 234,000 Stormwater Management Fund 1,312,521 Equipment Rental & Replacement 51,051 Risk Management Fund 134,450 Total All Funds $ 44,001,178 30 Wages & Benefits Supplies Servicos Interaov. Interfund Capital Exp Debt Syr Total General Fund Legislative Branch 152,675 15,460 109,291 10,800 288,226 Legislative & Executive 391,969 6,998 38,650 5,250 442,867 Public Safety 15,711,424 15,711,424 Operations & Administrative Deputy City Manager 249,292 6,200 7,700 5,750 268,942 Finance 407,619 7,700 12,400 9,250 436,969 Legal 93,945 2,300 102,562 3,500 202,307 Human Resources 32,062 3,500 81,821 2,000 119,383 Public Works 661,392 29,878 15,620 17,100 723,990 Planning & Community Dev, Planning 633,301 16,250 270,955 13,500 934,006 Building 555,816 31,575 74,255 26,664 8,249 696,559 Library 2,270,000 2,270,000 Parks & Recreation Parks Administration 162,718 9,580 40,127 3,000 215,425 Maintenance 33,755 821,082 854,837 Recreation 116,790 8,555 24,930 7,940 158,215 Aquatics 255,818 255,818 Senior Center 78,998 2,600 43,494 1.500 126,592 CenterPlace 144,848 10,075 146,325 20,051 321,299 9 General Government - 23,000 2,785,538 154,918 205 53 745 1,259,105 4 City of Spokane Valley 2005 Budget January 1 - December 31, 2005 General Fund Expenditures by Department by Type Total General Fund 3,681,425 207,426 4,830,568 18,136,342 331,305 61,994 28,508,165 Parks & Recreation 6.8% Library 7.4% Planning & Community Development 5.7% Public Works 2.6% General Government 15.9% City of Spokane Valley 2005 General Fund Expenditures by Dept $28,508,165 Operations & Administrative Support 3.6% Legislative Branch Legislative & Executive 1.0% c,....... coi 32 Public Safety 55.4% Intergovernmental Payments 63.3% City of Spokane Valley 2005 General Fund Expenditures by Type $28,508,165 Interfund Transfers 1.2% Capital Outlay 0.2% Debt Service 4.6% Salaries & Benefits `� — 13.0% Supplies 0.7% Services & Charges 17.0% Fund: 001 Dept 011 General Fund Legislative Branch Spokane Valley 2005 Budget 011 - Legislative Branch This department accounts for the cost of providing effective elected representation of the citizenry in the goveming body. The Council makes policy decisions for the City and is accountable to Spokane Valley citizens by making decisions regarding how resources are allocated, the appropriate levels of service, and establishing goals and policies for the organization. Accomplishments for 2004 • Managed competition methods were researched and two pilot projects selected for implementation: competitive bids from providers of library and park maintenance services. • A draft vision statement was created "A community of opportunity where individuals and families can grow and play and businesses will flourish and prosper." A scientifically valid survey of community attitudes and perceptions was commissioned and the results shared with the community. Five (5) well attended neighborhood citizen participation meetings were held around the City. Numerous draft documents were prepared to stimulate policy discussions about the fundamental issues facing the community. • City's official website was designed and launched. • The City Council and staff engaged in six Conversations with the Community. Outreach to the youth in the community resulted in the formation of a Student Advis- ory Council. Two retreats that are open to the public to review and adopt work plans for each city department that outlines the major tasks to be accomplished during the year. • A five -year financial forecast of the City's financial health was made to create a snapshot of our long -term fiscal situation so that today's budget choices are not made without awareness of the financial trends that affect the sustained affordability of public services. The forecast has been a useful tool to evaluate spending priorities. • Councilmembers serve on twenty -seven (27) regional boards and commissions. Both Council and staff have initiated contact with their counterparts locally, statewide and nationally about the issues that matter most to Spokane Valley. • Potentially workable interim and Tong -term solutions to wastewater treatment problems were examined. City representatives continue to participate extensively in sorting through the major capacity limitations, natural resource protection concerns and regulatory hurdles facing the region. Goals for 2005 • Adopt Spokane Valley's First Comprehensive Plan in compliance with the requirements of the Growth Management Act, including an accepted vision statement, documentation of land use goals in support of that vision and identification of significant transportation system goals linked to implementation of the Plan. 34 Fund: 001 Dept 011 General Fund Legislative Branch Spokano Valley 2005 Budget 011 - Legislative Branch Goals for 2005, Continued • Enact a Uniform Development Code that collates all of the City development related regulations into a single, understandable reference that streamlines the permitting process and facilitates customer service and business development • Recompose the Five -Year Financial Forecast into a Six -Year Strategic Financial Plan that forecasts revenues and expenses; identifies fiscal constraints; and, formulates for Council consideration a budget - balancing plan that proposes necessary service reductions or increased revenues or a combination thereof. • Advance the Interests of Spokane Vallev through Effective External Relations such as building a constructive relationship with the newly- composed Board of County Commissioners; participating as full members of regional and statewide boards and Commissions whose work affects the quality of life in the community, and by advocating city issues with neighboring jurisdictions, municipal organizations, the Legislature and Congress. • Collaborate with Wastewater Dischargers and Regulatory Agencies in analyzing data related to system acquisition options and in pursuit of interim and long- term resolutions to water quality and wastewater treatment capacity concems so that economic development and natural resources continue to support the vitality of the region. • Establish a Formal City -Wide Customer Service Program with emphasis on timely response, a user - friendly atmosphere, and an attitude of facilitation and accomodation within the bounds of responsibility, integrity, and financial capability of the City, including organizational and job description documents while pursuing "best practices" in customer service. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Personnel - FTE Equivalents Mayor 1.0 1.0 1.0 Council 6.0 6 6 Total FTEs 7.0 7.0 7.0 Budget Detail Salaries, Wages, & Benefits $ 80,821 $ 83,008 $ 152,675 Supplies 10,010 14,760 15,460 Services & Charges 19,372 105,844 109,291 Capital Outlay 3,403 - Interfund Charges 11,187 11,760 10,800 Total Legislative Branch $ 124,793 $ 215,372 $ 288,226 35 Fund: 001 Dept 013 General Fund Executive & Legislative Support Spokane Valley 2005 Budget 013 - Executive & Legislative Support This department is accountable to the City Council for the operational results of the organization, effective support of elected officials in achieving their goals; fulfillment of the statutory requirements of the City Manager, implementation of City Council policies, and provides communication linkage between citizens, the City Council, City departments, and other govemment agencies. Accomplishments for 2004 • Managed competition methods were researched and two pilot projects selected for implementation: competitive bids from providers of library and park maintenance services. • A draft vision statement was created "A community of opportunity where individuals and families can grow and play and businesses will flourish and prosper." A scientifically valid survey of community attitudes and perceptions was commissioned and the results shared with the community. Five (5) well attended neighborhood citizen participation meetings were held around the City. Numerous draft documents were prepared to stimulate policy discussions about the fundamental issues facing the community. • City's official website was designed and launched. • The City Council and staff engaged in six Conversations with the Community. Outreach to the youth in the community resulted in the formation of a Student Advis- ory Council. Two retreats that are open to the public to review and adopt work plans for each city department that outlines the major tasks to be accomplished during the year. • A five -year financial forecast of the City's financial health was made to create a snapshot of our long -term fiscal situation so that today's budget choices are not made without awareness of the financial trends that affect the sustained affordability of public services. The forecast has been a useful tool to evaluate spending priorities. • Councilmembers serve on twenty -seven (27) regional boards and commissions. Both Council and staff have initiated contact with their counterparts locally, statewide and nationally about the issues that matter most to Spokane Valley. • Potentially workable interim and long -term solutions to wastewater treatment problems were examined. City representatives continue to participate extensively in sorting through the major capacity limitations, natural resource protection concems and regulatory hurdles facing the region. Goals for 2005 • Adopt Spokane Valley's First Comprehensive Plan in compliance with the requirements of the Growth Management Act, including an accepted vision statement, documentation of land use goals in support of that vision and identification of significant transportation system goals linked to implementation of the Plan. 36 Fund: 001 Dept 013 General Fund Executive & Legislative Support Spokane Valley 2005 Budget 013 - Executive & Legislative Support Goats for 2005, Continued • Enact a Uniform Development Code that collates all of the City development related regulations into a single, understandable reference that streamlines the permitting process and facilitates customer service and business development. • Recompose the Five -Year Financial Forecast into a Six -Year Strategic Financial Plan that forecasts revenues and expenses; identifies fiscal constraints; and, formulates for Council consideration a budget - balancing plan that proposes necessary service reductions or increased revenues or a combination thereof. • Advance the Interests of Spokane Valley through Effective External Relations such as building a constructive relationship with the newly- composed Board of County Commissioners; participating as full members of regional and statewide boards and Commissions whose work affects the quality of life in the community, and by advocating city issues with neighboring jurisdictions, municipal organizations, the Legislature and Congress. • Collaborate with Wastewater Dischargers and Regulatory Agencies in analyzing data related to system acquisition options and in pursuit of interim and long- term resolutions to water quality and wastewater treatment capacity concems so that economic development and natural resources continue to support the vitality of the region. • Establish a Formal City -Wide Customer Service Program with emphasis on timely response, a user - friendly atmosphere, and an attitude of facilitation and accomodation within the bounds of responsibility, integrity, and financial capability of the City, including organizational and job description documents while pursuing "best practices" in customer service. Personnel - FTE Equivalents City Manager City Clerk Deputy City Clerk Administrative Assistant (CC) Administrative Assistant (CM) Total FTEs Budget Summary 2003 2004 9-Month Amended 2005 Actual Budget Budget 1.0 1.0 0.5 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 1.0 0.5 1.0 1.0 4.5 4.5 4.5 Budget Detail Salaries, Wages, & Benefits $ 170,816 $ 367,312 $ 391,969 Supplies 12,321 10,600 6,996 Services & Charges 70,169 54,690 38,650 Capital Outlay 2,636 - - Interfund Charges 6 5,680 5,250 Total Executive & Legislative Support $ 262,012 $ 438,482 $ 442,867 37 Fund: 001 Dept 016 General Fund Public Safety City of Spokane Valley 2005 Budget 016 - Public Safety The Public Safety department budget provides funds for the protection of persons and property in the city. The City contracts with Spokane County for law enforcement, municipal court, prosecutor services, public defender services, probation services, jail and animal control services. See following page for detail information on each budgeted section. Law Enforcement - The Spokane County Sheriffs office is responsible for maintaining law and order and providing police services to the community under the direction of the Police Chief. The office provides for the preservation of life, protection of property, and reduction of crime. Budgeted contract amount: $ 13,018,576 Judicial System - The Spokane County District Court is contracted to provide municipal court services. The contract provides for the services of judge and court commissioner with related support staff. Budgeted amount also includes jury management fees. Budgeted contract amount: $ 1,403,423 Jail System - Spokane County provides jail and probation services for persons sentenced by any City of Spokane Valley Municipal Court Judge for violating laws of the city or state. Budgeted contract amount: $ 289,798 Animal Control - Spokane County will provide animal control services to include licensing, care and treatment of lost or stray animals, and response to potentially dangerous animal confrontations. Budgeted contract amount: $ 402,295 3B City of Spokane Valley 2005 Budget 016 - Public Safety 2003 2004 9 -Month Amended 2005 Actuals* Budget Budget Judicial System: District Court Contract 818,342 910,000 691,328 Jury Management Contract - 5,000 5,000 Public Defender Contract 260,946 294,400 310,028 Prosecutor Contract 271,622 369,000 294,159 Crime Victim Compensation 4,078 10,000 10,000 Pretrial Services Contract - 24,000 32,908 Probation Services Contract 5,393 30,000 60,000 Subtotal Judicial System 1,360,381 1,642,400 1,403,423 Law Enforcement System: Sheriff Contract 6,729,927 11,690,000 12,892,303 Emergency Management Contract 36,483 64,590 64,700 Law Enf. Bldg Maintenance Contract - 28,500 38,573 Vehicle Decals 4,105 10,000 10,000 Clothing & Uniforms 7,408 7,000 7,000 Purchase of Law Enf. Building - 28,500 - Vehicle Usage Costs 1,199 500 500 Equipment Replacement Charge 4,100 5,500 5,500 Subtotal Law Enforcement System: 6,783,222 11,834,590 13,018,576 Jail System: Jail Contract 146,589 210,000 171,039 Work Release (Geiger) - 48,000 118,759 Subtotal Jail System: 146,589 258,000 289,798 Other: Capital Outlays 50,117 Fines & Forfeitures State Remittance 290,567 590,000 590,000 Prosecution - Animal Control - - 7,332 Animal Control Contract 288,120 369,000 402,295 628,804 959,000 999,627 Total Public Safety $ 8,918,996 $ 14,693,990 $ 15,711,424 • Not all contract services were paid for the full 9 -month period • Sheriff Contract increase in 2005 is largely paid for using the increased sales tax of .1% approved by voters in 2004 for criminal justice purposes. 39 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 691,3 5 OpQ r X10M28,* • 'r-y City of Spokane Valley 2005 Budgeted Contract Expenditures � 1Sa `` `` 1 � �� a G � ,� 0 G� 2 1 rpo G °� N. � G ° � � ° � � Go y G ° 1 � � 'S G ° c � Go c % `G e `� Go t �� �a ° 5 5 0 ° c1 QJ �� Q �� °o a °�� Q Oc 40 ;908' Fund: 001 Dept 018 General Fund Operations & Administrative Services Spokane Valley 2005 Budget 018 - Operations & Administrative Services The Operations & Administrative Services Department is composed of four divisions, the Deputy City Manager Division, the Finance Division, the Legal Division, and the Human Resources Division. 013 - Deputy City Manager Division The Deputy City Manager (DCM) supervises the Operations & Administrative Services Department, assists the City Manager in organizing and directing the other operations of the city and assumes the duties of the City Manager in his/her absence. Accomplishments for 2004 • Developed a managed competition pilot program and issued an RFP for library and parks maintenance services. Performance measures, including those for customer service, were developed as a part of the proposal. • Presented major decision points conceming options for City Hall. Council determined that the City should continue leasing, and evaluate specific options when and if they became available. • Developed administrative policies and procedures for the organization. • Developed an employee recognition program. Goals for 2005 • Oversee and refine the day - to-day operations of the City services, focusing on interdepartmental cooperation. • Develop and institute procedures to ensure timely monitoring, response and intervention in all critical path projects and significant issues in the operating departments of the City. • Complete an identification process to define the values which reflect the organization's culture as well as its vision, mission and goals. • Estabiish a formal, citywide customer service program. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Personnel - FTE Equivalents Deputy City Manager 1.0 1.0 1.0 Administrative Analyst 1.0 1.0 1.0 Office Assistant II 1.0 1.0 1.0 Administrative Assistant 12, 0_5 0_5 Total FTEs 3.5 3.5 3.5 Budget Detail Salaries, Wages, & Benefits $ 91,663 $ 247,200 $ 249,292 Supplies 9,383 4,800 6,200 Services & Charges 74,623 8,770 7,700 Capital Outlay - Interfund Charges 6,856 6,360 5,750 Total Deputy City Manager Division $ 182,530 $ 267,150 $ 268,942 41 Fund: 001 Dept 018 General Fund Operations & Administrative Services Spokane Valley 2005 Budget 014 - Finance Division The Finance Department provides financial management services for all city departments. Programs include accounting and reporting, payroll, accounts payable, purchasing, budgeting and financial planning, treasury, information technology and investments. The department is also responsible for generating and analyzing data related to the City's operations. The department prepares monthly, quarterly, and annual financial reports and budgets to ensure compliance with state laws. Accomplishments for 2004 • Developed a Five -Year Financial Plan. • Implemented a business registration system. • Produced a disaster recovery plan for the IT system. • Produced the first Comprehensive Annual Financial Report. • Received unqualified opinion for 2003 financial statements. Goals for 2005 • Expand multiyear financial plan to six years, identify financial constraints and propose a budget balancing plan. • Complete an A -87 cost allocation study and plan. Budget Summary Personnel - FTE Equivalents Finance & Admin Services Director Accounting Manager Accountant/Budget Analyst Accounting Technician IT Specialist Administrative Assistant Total FTEs 2003 2004 9 -Month Amended 2005 Actual Budget Budget 1.0 • 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 0.5 0.5 5.5 5.5 5.5 Budget Detail Salaries, Wages, & Benefits $ 128,385 $ 380,867 $ 407,619 Supplies 4,494 8,883 7,700 Services & Charges 91,806 11,960 12,400 Capital Outlay - - - Interfund Charges 6,407 10,240 9,250 Total Finance Division $ 231,092 $ 411,950 $ 436,969 42 Fund: 001 Dept 018 General Fund Operations & Administrative Services Spokane Valley 2005 Budget 015 - Legal Division The City Attorney provides accurate and timely legal advice to the Council, City departments and advisory boards and commissions on a wide variety of municipal issues to improve effectiveness and minimize risk of City operations. General legal services for the city are contracted from Witherspoon, Kelley, Davenport, & Toole. Stanley Schwartz is the lead attorney. Additional funds have been included in the budget for special counsel, which may be needed from time to time. Funding has also been included for a Legal Intern, who will provide assistance to the Deputy City Attorney on a number of issues. Accomplishments for 2004 • Drafted most of the ordinances, resolutions and contracts adopted by the Council since January 2004. • Provided IegaVtechnical support to the Department of Community Development in planning phase of the Comprehensive Plan. • Successfully prosecuted Growth Management appeal. Goals for 2005 • Continue researching options for provision of court- related services. • Provide quality and timely legal support for all city departments. • Assist Community Development in developing Final Comprehensive Plan. Budget Summary Personnel - FTE Equivalents Deputy City Attorney Budget Detail Salaries, Wages, & Benefits Supplies Services & Charges Capital Outlay Interfund Charges Total Legal Division 2003 9 -Month Actual 1.0 1.0 1.0 $ 62,638 562 94,212 2004 Amended 2005 Budget Budget $ 87,964 $ 93,945 3,180 2,300 105,300 102,562 18 3,860 3,500 $ 157,430 $ 200,304 $ 202,307 43 Fund: 001 Dept: 018 General Fund Operations & Administrative Services Spokane Valley 2005 Budget 016 - Human Resources Division Human Resources (HR) is administered through the Deputy City Manager (DCM) who serves as the Human Resources Manager for the City. The HR operation provides services in compensation, benefits, training and organizational development, staffing, employee relations, and communications. Accomplishments for 2004 • Developed City's web based intranet to make information more accessible to employees. • Developed a basic City employee training program, based upon an assessment of legally required or highly encouraged topics. • Conducted training classes for employees, including topics such as media relations and professional (report) writing. Goals for 2005 • Negotiate the City's first labor agreement. • Review and revise human resources policies and procedures. • Develop a schedule for reviewing and revising the City's job descriptions. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Personnel - FTE Equivalents Deputy City Clerk 0.5 0.5 0.5 Budget Detail Salaries, Wages, & Benefits $ 24,233 $ 29,701 $ 32,062 Supplies 2,611 5,000 3,500 Services & Charges 41,307 820 81,821 Capital Outlay Interfund Charges 2,680 2,000 Total Human Resources Division $ 68,151 $ 38,201 $ 119,383 44 Fund: 001 Dept 032 General Fund Public Works Spokane Valley 2005 Budget 032 - Public Works The Public Works Department provides overall planning and oversight of public works projects in the City of Spokane Valley. The department provides engineering plan review, inspection, coordination of major public works capital improvement projects, long -range transportation planning and neighborhood traffic management. Accomplishments for 2004 • Continued on -going analysis and review with the County, City of Spokane, and DOE regarding Wastewater Treatment Facility options. • Established a RE9ional Wastewater Committee to evaluate the possibilities of a Spokane Regional Wastewater Alliance. • Managed and refined contracts with Spokane County and others for public works services and construction. • Provided engineering review and support for City projects and other City public works needs. • Developed the 2005 -2010 Six Year Transportation Improvement Plan (TIP) for Council adoption. • Provided public works expertise in the Comprehensive Planning effort. • Provided Development Review on nine (9) new Commerical Development Projects, and sixty -three Single Family projects from July 1, 2003 to July 1, 2004, resulting in seventy-one new Commercial Development Tots and one thousand, twenty-one Single Family lots. • Implemented and closely supervised the major Street Capital Projects. Goals for 2005 • Analyze and review with the County, City of Spokane, and DOE regarding Wastewater Treatment Facility options. • Work with the Regional Wastewater Committee to evaluate the possiblities of a Spokane Regional Wastewater Alliance. • Develop a Public Works strategic plan that will provide a blueprint for the development of the department. 45 Fund: 001 Dept 032 General Fund Public Works Spokane Valley 2005 Budget 032 - Public Works Goals for 2005, Continued • Manage and refine contracts with Spokane County and others for public works services and construction. • Provide engineering review and support for City projects and other City public works needs. • Develop the Six Year Transportation Improvement Plan (TIP) for Council adoption. • Provide public works expertise in the Comprehensive Planning effort. • Provide Development Review on new Commercial Development Projects, Single Family Lots and Multi - Family Units. • Implement and closely supervise the major Street Capital Projects. Budget Summary Personnel - FTE Equivalents Public Works Director City Engineer Administrative Assistant Senior Engineer (Development) Assistant Engineer (Development) Senior Engineer (CIP) Engineer (CIP Planning /Grants) Assistant Engineer (CIP) Engineering Technician Total FTEs 2003 2004 9 -Month Amended 2005 Actual Budget Budget 1.0 1.0 1.0 1.0 0.0 0.0 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.0 0.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 7.5 7.0 8.0 Budget Detail Salaries, Wages, & Benefits $ 309,172 $ 524,019 $ 661,392 Supplies 16,284 16,740 29,878 Services & Charges 98,779 40,240 15,620 Capital Outlay 20,530 35,170 - Interfund Charges 17,950 14,910 17,100 Total Public Works $ 462,715 $ 631,079 $ 723,990 46 Fund: 001 Dept: 058 General Fund Planning & Community Development Spokane Valley 2005 Budget 058 - Planning & Community Development The Planning & Community Development Department provides overall management and oversight of development services including current and long -range planning, coordination of regional environmental issues, building permitting and inspections, and code enforcement. The Permit Center provides coordinated, one -stop administration of all development permits. The Code Enforcement Officer is responsible for the enforcement of zoning regulations and nuisance abatement. 058 - Planning Division The Planning Division is responsible for providing professional policy guidance on land use issues to the City Council and Planning Commission. It is also responsible for processing land use permits, reviewing environmentally sensitive areas, and providing code enforcement services. Accomplishments for 2004 • Streamlined the development review process. • Implemented a functional permitting system. • Completed a draft of the Comprehensive Plan for Community Review. • Secured participation in the National Flood Insurance Program. • Completed revisions to the Sign regulations. • Completed webpage update process. • Initiated review of key development standards. • Completed economic analysis for Sprague Appleway Corridor. • Initiated a strategic annexation plan. • Updated Shoreline Management Program. • Completed development regulations informational pamphlet. 47 Fund: 001 Dept: 058 General Fund Planning & Community Development Spokane Valley 2005 Budget 058 - Planning Division Goals for 2005 • Complete the Comprehensive Plan. • Complete Spokane Valley Uniform Development Code. • Complete the strategic annexation plan. • Participate in a Regional /Urban Design Assistance Team (R/UDAT) Program. Budget Summary Personnel - FTE Equivalents Community Development Director Planning Manager Senior Planner Planning Manager - Current Associate Planner Assistant Planner Planning Technician Permit Specialist Administrative Assistant Total FTEs Budget Detail Salaries, Wages, & Benefits Supplies Services & Charges Capital Outlay Interfund Charges Total Planning Division 2003 9 -Month Actual 1.0 1.0 0.0 1.0 2.0 2.0 1.0 0.0 0.5 8.5 $ 298,987 15,904 222,785 1,811 15,940 2004 Amended Budget 1.0 1.0 0.0 1.0 2.0 2.0 1.0 0.0 1.0 9.0 $ 623,975 19,999 260,500 20,284 2005 Budget 1.0 1.0 1.0 0.0 2.0 1.0 1.0 1.0 1.0 9.0 $ 633,301 16,250 270,955 13,500 $ 555,427 $ 924,758 $ 934,006 4B Fund: 001 Dept 058 General Fund Planning & Community Development Spokane Valley 2005 Budget 059 - Building Division The Building Division implements the Washington State Building Code. It is responsible for ensuring that buildings and structures comply with adopted building code standards through professional plan review and inspection services. The Permit Center receives applications and coordinates the review and processing of permits. Accomplishments for 2004 • Streamlined the permit process. • Completed implementation of a functional permitting system. • Completed the Grading Ordinance. • Secured participation in the National Flood Insurance Program. • Adopted International Building Codes. • Completed informational pamphlets. • Established pool of on -call inspectors to supplement inspection staff • Instituted enforcement of Clear View triangles. Goals for 2005 • Integrate Building and Code Compliance provisions within the Uniform Development Code. • Reduce backlog of Code Compliance actions by 10 %. • Consolidate Planning site plan review within Plan Review. • Integrate inter - agency requirements with adopted Code provisions. • Expand inter - agency participation in Code Compliance. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Personnel - FTE Equivalents Building Official 1.0 1.0 1.0 Building Inspector II 2.0 2.0 2.0 Code Enforcement Officer 1.0 2.0 2.0 Permit Specialist 2.0 2.0 2.0 Plans Examiner 1.0 1 0 Total FTEs 7.0 8.0 8.0 Budget Detail Salaries, Wages, & Benefits $ 254,832 $ 497,058 $ 555,816 Supplies 18,940 31,998 31,575 Services & Charges 39,006 19,265 74,255 Capital Outlay 51,704 40,000 8,249 Interfund Charges 14,061 31,440 26,664 Total Building Division $ 378,543 $ 619,761 $ 696,559 49 Fund: 001 Dept: 072 General Fund Library Spokane Valley 2005 Budget 072 - Library Library services to Valley residents are currently provided by the Spokane County Library District (SCLD). Under a managed competition pilot project, the City issued a request for proposals for 2005 library services. Budget Detail Salaries, Wages, & Benefits Supplies Services & Charges Capital Outlay Interfund Charges Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget 2,053,250 2,270,000 Total Library $ $ 2,053,250 $ 2,270,000 50 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2005 Budget 076 - Parks & Recreation The Parks and Recreation Department is composed of six divisions, the Administration, Park Maintenance Division, Recreation, Aquatics, Senior Center, and the CenterPlace Division. The overall goal of the department is to provide quality recreation programs and acquisition, renovation, development, operation, and maintenance of parks and recreation facilities, within a defined budget. 000 - Parks Administration The Administration Division provides direction and leadership for the Parks and Recreation Department in implementing the goals and objectives of the City Council and facilitates the general upkeep of parks and public areas of the City. Accomplishments for 2004 • Started the Parks and Recreation Master Plan. • Dedication of Mirabeau Meadows Park. Goals for 2005 • Strive for the highest level of customer service in all department activities. • Complete & evaluate Master Plan to determine community's needs and provide direction for a Comprehensive Plan. • Dedication/Grand Opening of the CenterPlace facility. • Pursue new grant opportunities. Budget Summary Personnel - FTE Equivalents Parks & Recreation Director Administrative Assistant 1.0 1.0 Total FTEs 2.0 2003 2004 9 -Month Amended 2005 Actual Budget Budget 1.0 1.0 1.0 1.0 2.0 2.0 Budget Detail Salaries, Wages, & Benefits $ 129,229 $ 169,069 $ 162,718 Supplies 2,713 44,487 9,580 Services & Charges 659,619 649,539 40,127 Capital Outlay 32,589 112,127 - Interfund Charges 3,185 5,040 3,000 Total Parks Administration $ 827,335 $ 980,262 $ 215,425 51 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2005 Budget 300 - Maintenance Division The Maintenance Division coordinates and facilitates the operation and maintenance of all City parks. Currently, the City contracts with Spokane County for the parks maintenance services. In 2004, a request for proposals was issued for parks maintenance services to assure the City is getting a reasonable price for the service. Accomplishments for 2004 • Created a park maintenance proposal for the privatization of park maintenance. Goals for 2005 • Evaluate and manage the park maintenance contract. Budget Summary Budget Detail Salaries, Wages, & Benefits Supplies Services & Charges Capital Outlay Interfund Charges Total Maintenance Division 2003 2004 9 -Month Amended 2005 Actual Budget Budget $ $ 33,755 821,082 $ 854,837 Note: The Maintenance Division was combined with the Administration Division for 2003 and 2004. Historical maintenance costs are included in the Parks Administration budget. 52 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2005 Budget 301 - Recreation Division The Recreation Division coordinates and facilitates the delivery of recreation programs and services throughout the city and the City's park system. In 2004, the Division developed summer recreation programs to provide healthy, constructive leisure time for citizens of all ages. Accomplishments for 2004 • Developed cost recovery spreadsheets for all recreation programs. • Developed a comprehensive list of other recreation providers for Spokane Valley. Goals for 2005 • Pursue recreation programming as per Master Plan recommendations. • Continue to serve,as a clearinghouse for recreation program needs by referring citizens to other providers. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Personnel - FTE Equivalents Recreation Coordinator 1.0 1.0 1.0 Budget Detail Salaries, Wages, & Benefits $ 24,754 $ 61,167 $ 116,790 Supplies 4,707 8,585 8,555 Services & Charges 48,489 25,561 24,930 Capital Outlay Interfund Charges 4,885 8,120 7,940 Total Recreation Division $ 82,835 $ 103,433 $ 158,215 53 J Fund: 001 Dept 076 General Fund Parks & Recreation Spokane Valley 2005 Budget 302 - Aquatics Division The City of Spokane Valley owns three pools: Park Road Pool, Terrace View Pool, and Valley Mission Pool. Services include Open Swim, Swim Lessons, Swim Team and facility rentals. In addition, the City leases a portion of Valley Mission Park to Splashdown Inc. for a water park. The City currently is contracting with Spokane County for all aquatic activities within the City. The County provides the lifeguards and maintains the pools during the season. Accomplishments for 2004 • Participation was as follows: 16,001 swimmers; 909 people enrolled in swim lessons; and 79 people enrolled in swim teams. • Pools were open additional hours and on weekends. Goals for 2005 • Pursue recommendations of the Parks & Recreation Master Plan. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Budget Detail Salaries, Wages, & Benefits $ $ - $ Supplies - Services & Charges 253,074 255,818 Capital Outlay - 10,000 Interfund Charges - Total Aquatics Division $ - $ 263,074 $ 255,818 54 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2005 Budget 304 - Senior Center Division The Senior Center Division accounts for the costs associated with providing entertainment and leisure activities for the City's senior citizens. Accomplishments for 2004 • Expanded program opportunities. • Expanded volunteer opportunities for seniors within the community. • Developed fundraiser activities. • Reduced cost to print the monthly newsletter. Goals for 2005 • Develop programs to reach the 50+ (young seniors). • Develop a Wellness Center at CenterPlace and expand wellness awareness. • Offer outdoor activities for active seniors. • Recruit volunteers to work in the greenhouse. • Investigate feasibility of extended hours for activities at the Center for working seniors. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Personnel - FTE Equivalents Senior Center Supervisor 1.0 1.0 1.0 Budget Detail Salaries, Wages, & Benefits $ 6,271 $ 84,021 $ 78,998 Supplies 2,465 3,945 2,600 Services & Charges 2,864 38,045 43,494 Capital Outlay - - - Interfund Charges - 3,360 1,500 Total Senior Center Division $ 11,600 $ 129,371 $ 126,592 55 Fund: 001 Dept: 076 General Fund Parks & Recreation Spokane Valley 2005 Budget 305 - CenterPlace Division Construction of Mirabeau Point CenterPlace began in late 2003, and has an expected completion date of mid -year 2005. The project represents the culmination of eight years of planning and fundraising by Mirabeau Point Inc. and the joint involvement of the City and Spokane County. This $10 million project is financed through numerous corporate, individual and service club donations along with funding support from the Spokane Public Facilities District. The City will be responsible for the construction, finance and operation of the new facility. At total build out, the approximately 54,000 square foot facility will house the new City of Spokane Valley Senior Center, a great room (banquet facility), numerous meeting rooms, multi purpose rooms and a high tech lecture hall. The facility will combine with Mirabeau Meadows Park and Mirabeau Springs to form a regional focal point for Northeast Washington and Northern Idaho. Accomplishments for 2004 • Construction continued on schedule and within budget. Goals for 2005 • Develop programs and ideas for space utilization, and begin marketing and future reservations for the facility. • Assist with construction oversight and with purchase of furniture, kitchenware, etc. Budget Summary Personnel - FTE Equivalents CenterPlace Manager Administrative Assistant Maintenance Worker Total FTEs Budget Detail Salaries, Wages, & Benefits Supplies Services & Charges Capital Outlay Interfund Charges 2003 2004 9 -Month Amended Actual Budget 0.0 1.0 0.0 0.0 0.0 0.0 0.0 1.0 $ - 2005 Budget 1.0 1.0 1.0 3.0 $ 75,719 $ 144,848 6,554 10,075 29,725 146,325 11,962 1 20,051 Total CenterPlace Division $ $ 125,640 $ 321,299 56 Fund: 001 Dept 090 General Fund General Government Spokane Valley 2005 Budget 090 - General Government The General Government Department comprises activities that encompass services to multiple departments. Included in this department are the costs of city hall and related utilities, management information services, insurance costs, miscellaneous city intergovernmental costs and capital equipment costs that benefit more than one department. In 2005, the General Fund is scheduled to repay $1 ,259,105 of outstanding debt. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Budge; Detail General Citywide Costs Accounting & Audit Services $ - $ 35,000 $ 155,900 Software Maintenance 13,155 35,000 20,000 Election Costs - 50,000 50,000 Business Registrations 5,075 15,000 15,000 Advertising 21,550 21,550 Employee Recognition & Safety Program - 3,000 3,000 Web. Page 26,104 10,000 5,000 Telephone/DSL Charges - 20,000 20,000 IT Consulting 77,660 60,000 70,000 Permitting Software - 60,000 - Student Advisory Council - 500 500 Operating Supplies 22,887 5,000 Search Fees • 122,408 Start-Up Capital Outlays 271,795 Miscellaneous 1,183 20,000 20,000 Interfund lnterfund Loan Interest 34,891 75,000 75,00D Interfund Risk Management Payment 669 130,000 130,000 Operating Transfer - Loan Repayment - 800,000 1,259,105 Facilities Facility Repairs & Maintenance - 1,500 Miscellaneous Building Maintenance 3,077 5,000 5.000 City Hall Leasing Costs: City Hall Rent 190,580 220,683 251,055 Leasehold Improvements 36,193 88,745 53,745 Storage Space & Parking - 3,000 3,000 Outside Services Memberships - SRTC - 42,500 36,000 Alcohol Treatment 8,858 15,800 19,000 Spokane County Air Pollution Authority 87,227 115,000 118.918 Voter Registration Maintenance - - 50,000 City Economic Development 4,306 10,000 10,000 Cable Franchise Negotiations - 50,000 20,000 Impact Fee Study - 50,000 Requests from Outside Agencies 100,000 100,000 Contingency & Reserves Reserve for Revenue Adjustments 463,300 813,533 Operating Reserve - Mirabeau Project 300,000 - Service Level Stabilization Reserve 200,000 600,000 Contingency 500,000 500,000 $ 906.068 $ 3.450.578 $ 4.481.306 57 Fund: 101 Dept: 042 Street Fund Spokane Valley 2005 Budget 101 - Street Fund The Street Operating program is established to provide efficient and safe movement of both motorized and non - motorized vehicles as well as pedestrians within the limits of the City and coordinate convenient interconnect to the regional transportation system. The transportation networks, under this program, are designed, constructed, and maintained to improve the quality of life while providing the efficient movement of commerce. Accomplishments for 2004 • Managed contracts with the County and State for public works services including maintenance, engineering and construction. • City assumed operation and maintenance of all City streets and two state highways, SR 290 and SR 27. • Continued to contract with Spokane County for engineering services related to operations and maintenance of City streets. • Worked with Community Development to ensure that adequate traffic and transportation mitigation was provided. Goals for 2005 • Operate and maintain all City streets and two state highways, SR 290 and SR 27, which the City has assumed. • Continue to contract with Spokane County for engineering services related to operations and maintenance of City streets. • Develop a Neighborhood Traffic Calming Management program. • Work with Community Development to ensure that adequate traffic and transportation mitigation is provided. • Develop a six -year street master plan and a 20 year pavement management plan. Budget Summary Personnel - FTE Eouivalents Senior Engineer - Traffic Public Works Superintendent Construction Inspector Senior Engineer (Planning /Grants) Total FTEs 2003 2004 9 -Month Amended 2005 Actual Budget Budget 0.4 0.4 0.4 1.0 1.0 1.0 1.5 1.4 1.4 0_0 0 15 0_4 2.9 2.95 3.2 Budget Detail Salaries, Wages, & Benefits $ 85,953 S 185,638 $ 198,354 Supplies 3,584 13,280 13,280 Services & Charges 2,354,215 3,531,766 2,939,292 Capital Outlay 49,611 - - Interfund Charges 22 42,500 167,140 Total Street Fund $ 2,493,385 $ 3,773,184 S 3,318,066 58 Fund: 102 Dept: 041 Arterial Street Fund Spokane Valley 2005 Budget 102 - Arterial Street Fund The Arterial Street Fund accounts for the receipt and expenditure of the State - levied motor vehicle fuel tax distributed to the City in accordance with State RCW 82.36.020. These revenues will be transferred to the Street Capital Projects Fund for the construction, improvement, chip sealing, seal coating, and repair of arterial streets. Budget Summary Budget Detail Transfer to Street Capital Projects $ 165,549 $ 600,000 $ 670,400 Transfer to Capital Grants Fund - - 186,000 Total Arterial Street Fund 2003 2004 9 -Month Amended 2005 Actual Budget Budget $ 165,549 $ 600,000 $ 856,400 Fund: 103 Dept: 103 Trails & Paths Fund Spokane Valley 2005 Budget 103 - Trails & Paths Fund The Trails & Paths Fund accounts for the receipt and expenditure of the State - levied motor vehicle fuel tax distributed to the City in accordance with State RCW 47.30.050. These revenues originate from .42% of motor vehicle fuel tax attributable to Street Maintenance. These funds are restricted for the purpose of constructing new trails and paths throughout the City. No expenditures are budgeted for this fund in 2005. 59 Fund: 105 Dept: 105 Hotel /Motel Fund Spokane Valley 2005 Budget 105 - Hotel /Motel Fund The Hotel/Motel Fund accounts for the receipt and expenditure of a basic tax of two percent on all charges for fumishing lodging at hotels, motels, and similar establish- ments for a continuous period of Tess than one month. When this tax is imposed, the state sales tax decreases by a like amount, so tourists and other lodgers experience no increase as a result of this tax. This basic tax is to be used solely for the purposes of tourism promotion, acquisition or operation of tourism - related facilities, and marketing of special events and festivals designed to attract tourists. Budget Summary Budget Detail Tourism Promotion Transfer to GF - Mirabeau Allocation 2003 2004 9 -Month Amended 2005 Actual Budget Budget $ 35,425 $ 475,000 $ 260,000 - 40, 000 $ 35,425 $ 475,000 $ 300,000 60 Fund: 204 Dept: 204 Limited Tax General Obligation - Debt Service Fund Spokane Valley 2005 Budget 204 - Limited Tax General Obligation - Debt Service Fund The LTGO - Debt Service Fund collects and distributes monies received and paid for Tong -term debt obligations. Revenue to this fund consists of money received from the Public Facility District, which will be used to pay annual debt obligations for the Mirabeau bonds. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Budget Detail Debt Service on Mirabeau Bonds $ $ 600,000 $ 397,745 Debt Service on Street Bonds 200,000 185,090 Total Debt Service Fund $ - $ 800,000 $ 582,835 61 Fund: 301/302 Capital Projects & Special Capital Projects Funds Spokane Valley 2005 Budget 301/302 - Capital Projects & Special Capital Projects Funds These funds account for the collection and expenditure of the real estate excise tax levied on all sales of real estate. The tax is levied in two phases of a quarter of a percent each. The first quarter percent of the real estate excise tax (REET 1) must be spent on capital improvements identified in a capital improvements plan. This REET 1tax is accounted for in the Capital Projects Fund 301. The second quarter percent (REET 2) may only be levied by cities that are planning under the Growth Management Act These funds must be used for public works capital projects The REET 2 tax is accounted for in the Special Capital Projects Fund 302. Revenues accumulated in these funds will be used as matching funds for construction projects and will be transferred to other Capital Project Funds. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget 301 - Capital Projects Fund' Transfer to Street Capital Projects $ 36,554 $ $ Transfer to Debt Service 100,000 92,545 Transfer to General Fund - 80,000 40,000 Parks Capital Improvements - - 200,000 Total Capital Projects Fund $ 36,554 $ 180,000 $ 332,545 302 - Special Capital Projects Fund Transfer to Street Capital Projects $ 110,000 $ 200,000 $ 112,600 Transfer to Debt Service - 100,000 92,545 Total Special Capital Projects Fund $ 110,000 $ 300,000 $ 205,145 10/6/2004 62 Fund: 303 Street Capital Projects Fund Spokane Valley 2005 Budget 303 - Street Capital Projects Fund The Street Capital Projects Fund accounts for monies used to finance the 6 year transportation improvement plan. Revenues are transfers from the Arterial Street Fund, Capital Projects Fund, and Special Capital Projects Fund and bond sale proceeds. Expenditures are often for matching funds for Transportation Improvement Board and other grants. Budget Summary • See page 70 for funding information on these projects. 2003 2004 9 -Month Amended 2005 Actual Budget Budget Budget Detail Road Design & Construction Projects Pines /Mansfield, Wilbur Rd. to Pines $ $ 55,000 $ 28,000 Sullivan Road Extension 15,700 5,000 16th Avenue - Project 2 260,000 - Park Road - Project 2 - 195,000 - Evergreen Road 348,000 Valley Couplet 15,000 TIB Matching Funds 294,964 - Engineering Services 17,109 Road Preservation Projects Other Preservation Projects 830,000 750,000 Consultant Contract 60,000 - Contingency - 150,000 Road Paveback (Septic Elimination) Sipple 141,000 Veradale Phase II 284,000 Bums Road 31,000 Orchard Avenue Inland - Johnston - Sherwood Forest - Parks Road - Edgerton Miscellaneous Projects - 92,609 Total Street Capital Projects Fund $ 312,073 $ 2,327 $ 933,000 10/62004 63 Fund: 304 Dept: 304 Mirabeau Point Capital Project Fund Spokane Valley 2005 Budget 304 - Mirabeau Point Capital Project Fund Mirabeau Point is a multi -use regional project located at 2426 Discovery Place which will be constructed and operated by the City. CenterPlace will provide space for a Conference Center Wing, Senior Center Wing and a Great Room Wing. The portion of CenterPlace used for the Conference Center Wing and Great Room Wing is being developed as a "regional facility" as defined in RCW 36.100 and 35.57.020. Budget Detail Construction in Progress Bond Issue Costs Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget $ 98,470 $ 9,500,000 $ 3,000,000 170,692 Total Mirabeau Point Project Fund $ 269,162 $ 9,500,000 $ 3,000,000 Fund: 305 Dept: 305 Street Bond Capital Projects Fund Spokane Valley 2005 Budget 305 - Street Bond Capital Projects Fund The Street Bond Capital Projects Fund accounts for monies received from bond proceeds which will be used for various capital street projects. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Budget Detail Transfer to Street Capital Projects $ - $ 2,460,000 $ 406,000 Bond Issue Costs 48,584 Total Street Bond Capital Fund $ 48,584 $ 2,460,000 $ 406,000 10/6/2004 64 Fund: 307 Dept 307 Capital Grants Fund Spokane Valley 2005 Budget 307 - Capital Grants Fund The Capital Grants Fund accounts for capital improvement projects funded partially by grant proceeds from other governmental agencies, such as TIB, SRTC and BRAC. Revenues to this fund are from grant proceeds and transfers from other special revenue funds. Budget Summary Budget Detail Barker Road Reconstruction $ $ 639,000 $ 1,114,000 24th Avenue Sidewalk Project - $ 198,000 8th Avenue - - 1,136,000 Broadway Avenue 812,000 Wellesley Avenue 344,000 Park Road 164,000 Dishman Mica Road 41,000 Appleway Road - - 216,000 Total Capital Grants Fund See page 70 for funding information on these projects. 2003 2004 9 -Month Amended 2005 Actual Budget Budget $ 837,000 $ 3,827,000 Fund: 308 Dept 308 Barker Bridge - Federal Grant Fund Spokane Valley 2005 Budget 308 - Barker Bridge - Federal Grant Fund The Barker Bridge - Federal Grant Fund was created to account for the revenues and expenditures associated with the Barker Road Bridge Replacement Project. This project is fully funded by BRAC grant proceeds and will cost approximately $8,000,000 over the course of the next few years. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Budget Detail Barker Road Bridge Replacement Project $ $ 702,000 $ 234,000 • See page 70 for funding information on these projects. 10/6/2004 65 Fund: 402 Dept 402 Stormwater Management Fund Spokane Valley 2005 Budget 402 - Stormwater Management Fund The Stormwater Management fund accounts for receipt and expenditure of the stormwater management fee. This fee is levied on an annual basis based upon a number of service units attached to the parcel. The expenditures are used for stormwater construction and management through both the Public Works Department and Spokane County. Accomplishments for 2004 • Enforced standards to improve water quality and protect the aquifer. • Provided support to planning and building to insure that now development meets stormwater standards. • Participated in the development of Department of Ecology stormwater regulations including the UIC and NPDES Phase 11 programs and the finalization of the Eastem Washington Stormwater Manual. • Investigated existing drainage problems. • Performed floodplain permit engineering review. • Managed the swale inspection program. • Managed Spokane County contract work for stormwater billing. • Initiated development of City drainage design manual based upon DOE's Eastern Washington Manual. Developed new swale design method. Goals for 2005 • Design and implement solutions for existing drainage problems. • Perform floodplain permit engineering review. • Manage the swale inspection program. • Update stormwater billing procedures. • Implement new swale design method. • Develop and implement sox year plan for construction of regional and semi - regional drainage facilities. • Continue development of the City stormwater design manual. Budget Summary Budget Detail Salaries, Wages, & Benefits Supplies Services & Charges Capital Outlay Interfund Transfers 2003 2004 9 -Month Amended 2005 Actual Budget Budget Personnel - FTE Equivalents Engineer 0.0 0.0 1.0 Engineering Technician 0 . 0.0 1.0 Total FTEs 0.0 0.0 2.0 $ $ - $ 151,112 6,700 22,700 4,141 362000 859,102 20,000 150,000 259,607 Total Stormwater Fund $ 4,141 $ 518,700 $ 1,312,521 55 Fund: 501 Dept: 501 Equipment Rental & Replacement Fund Spokane Valley 2005 Budget 501 - Equipment Rental & Replacement Fund The Equipment Rental & Replacement Fund (ER &R) accounts for the cost of maintaining and replacing City vehicles and equipment for all City departments. The ER &R fund is an Internal Service fund. The fund accumulates the resources for vehicle and equipment replacements in the fund. The Funds or Departments using the vehicle or equipment pay the scheduled replacement fee. Replacement funds are being collected on the telephone system, computer network system, desktop computers, and vehicles. Maintenance and service charges for copiers, telephones, intemet are also charged to funds through this department The fund also finances and administers a fleet of pool cars for use by City departments. Accomplishments for 2004 • Administered an accounting system for replacement costs for city equipment. • Revised replacement charges for the 2005 budget year to better reflect expected usage. Goals for 2005 • Continue to administer and refine the accounting system for replacement costs. • Setup and administer an inventory tracking system. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Budget Detail Salaries, Wages, & Benefits $ - $ $ Supplies 2,212 5,000 7,500 Services & Charges 26,579 23,600 25,000 Capital Outlay 41 15,000 18,551 Interfund Transfers - Total ER &R Fund $ 28,832 $ 43,600 $ 51,051 67 • if Fund: 502 Dept: 502 Risk Management Fund Spokane Valley 2005 Budget 502 - Risk Management Fund The City of Spokane Valley Risk Management Fund is established to account for insurance costs, claims settlement and administration of a risk management safety program. This fund also accounts for the funding of self - insured unemployment claims through the State of Washington and Washington Cities Insurance Authority. Accomplishments for 2004 • Administered an accounting system for the risk management internal service fund. Goals for 2005 • Continue to administer and refine the risk management internal service fund accounting system. Budget Summary 2003 2004 9 -Month Amended 2005 Actual Budget Budget Budget Detail Salaries, Wages, & Benefits $ $ $ Supplies - Services & Charges 137,500 134,450 Capital Outlay - - Interfund Transfers Total Risk Management Fund $ - $ 137,500 $ 134,450 68 Department 059 Building 090 General Government "Real Estate Excise Tax 1 Shelving Leasehold improvements Total Capital Expenditures City of Spokane Valley Capital Expenditures for 2005 Revenue Source Capital Outlay Description Total City REET 1* 69 8,249 53,745 $ 61,994 8,249 53,745 $ 61,994 Deparlmeal 361 Capital Pnateale Fund 303 Street Fund 307 Capltel Gnnle Fund 300 Barkor Bridao • Fad Granl Fund 304 fdlrabeau Pulnt 402 Slorm•afer Fund 501 Equlpmont MLR Fund Porky trrVrovamarda 'Reel Estate) Excise Tex 1 "Rani Eatltte Excise 7s4 2 "'Transpert low Improvement Board (State Funds) " "Spokane Ratjonal Transportation Couod (Federal Funds) ' a1dgo Replacement A1Msory Conmrrltee (Fa0aal Funds) Gilts bsau Point Gonerol Otani Bond Street Bond Fund Noosed, Capital Outlay Description Total Proceeds Prucaois Tronn and Peoo auslIkeztliSmenrclan Pr6Jes3 PlnoaM4raf std, %Dux Rd. 10 Plnos S1Avan Road Extension hoed Preaetve5c0 FralaWs Other Preservadon Prefects Ccntngenay 6011.12astal M1 Comevcfte Baker Road Applevray Road 801 Avcmte rdIfitaitli=0110.RELIO2110 Broadway Avenue Welaslay Aventue Path Road Dialer= noes Road 200,000 1,777,000 327 ,000 750,000 150,000 1,114,000 210,000 1,135,000 812.000 344,000 104,000 41,000 Darker Rood Bridge Reconstruction 234.000 Consttxdfon In Prcyels 3,000,000 Vehicle Purchase 2p000 Vc)dclo Medina 16.e51 Total Capital fi.pond /twos f10.1111255. City of Spokane Valtay Capital Erpandllurea for 2005 70 Artorlal Stomwrel or Sleet llanapenronl 200,000 1.749,000 20.000 322.000 5,000 112.559 520.441 117.000 150,000 215,000 8.000 891.000 30000 180.000 153,000 903,000 110.000 702.000 9,OOD 47,000 14,000 297,000 142,003 7,000 34,000 234,000 3,000,000 20,000 10,561 _3?.000.000 f 408.000 f t &551 S 031 GOD 3 IOU 000 3 11 55 9 3 850.441 S 170000 3 091 0 3 2 44 00 3 234 ODO Deparlmeal 361 Capital Pnateale Fund 303 Street Fund 307 Capltel Gnnle Fund 300 Barkor Bridao • Fad Granl Fund 304 fdlrabeau Pulnt 402 Slorm•afer Fund 501 Equlpmont MLR Fund Porky trrVrovamarda 'Reel Estate) Excise Tex 1 "Rani Eatltte Excise 7s4 2 "'Transpert low Improvement Board (State Funds) " "Spokane Ratjonal Transportation Couod (Federal Funds) ' a1dgo Replacement A1Msory Conmrrltee (Fa0aal Funds) Gilts bsau Point Gonerol Otani Bond Street Bond Fund Noosed, Capital Outlay Description Total Proceeds Prucaois Tronn and Peoo auslIkeztliSmenrclan Pr6Jes3 PlnoaM4raf std, %Dux Rd. 10 Plnos S1Avan Road Extension hoed Preaetve5c0 FralaWs Other Preservadon Prefects Ccntngenay 6011.12astal M1 Comevcfte Baker Road Applevray Road 801 Avcmte rdIfitaitli=0110.RELIO2110 Broadway Avenue Welaslay Aventue Path Road Dialer= noes Road 200,000 1,777,000 327 ,000 750,000 150,000 1,114,000 210,000 1,135,000 812.000 344,000 104,000 41,000 Darker Rood Bridge Reconstruction 234.000 Consttxdfon In Prcyels 3,000,000 Vehicle Purchase 2p000 Vc)dclo Medina 16.e51 Total Capital fi.pond /twos f10.1111255. City of Spokane Valtay Capital Erpandllurea for 2005 70 Artorlal Stomwrel or Sleet llanapenronl CITY MANAGER DEPUTY CITY MANAGER DEPUTY CITY ATTORNEY - 1.0 1.0 1,0 - _ 0 .o 0 0 ? ? ?? 0 o a q. e 0 0 0?? 0 0 0 0 0 0? o ?? o o ?? e o 0 o a a v COMMUNITY DEVELOPMENT DIRECTOR 1.0 PUBLIC WORKS DIRECTOR FINANCE DIRECTOR 1.0 PARKS 6 RECREATION DIRECTOR 1A CITY CLERK 1.0 PLANNING MANAGER 1.0 CENTERPLACE MANAGER 1.0 SENIOR ENGINEER 2.0 0.4 1.0 SENIOR ENGINEER SENIOR ENGINEER - TRAFFIC ASSISTANT ENGINEER ENGINEERING TECHNICIAN 1.0 1.0 SENIOR PLANNER 1.0 ASSOCIATE PLANNER - CURRENT 1.0 ASSOCIATE PAWNER - LONGTERM 1.0 ASSISTANT PAWNER 1.0 CODE ENFORCEMENT OFFICER e ni BUILDING OFFICIAL . BUILDING INSPECTOR II BUILDING INSPECTOR I PLANS EXAMINER PERMIT SPECIALIST 1.0 PLANNING TECHNICIAN 1.0 PUBLIC WORKS SUPERINTENDENT 1.0 RECREATION COORDINATOR 1.0 ADMINISTRATIVE ANALYST 1.0 ACCOUNTANT/BUDGET ANALYST 1,0 ACCOUNTING MANAGER 1,0 IT SPECIALIST a 1,0 SENIOR CENTER SPECIALIST 1.0 DEPUTY CITY CLERK 0.5 0.5 ADMINISTRATIVE ASSISTANT 1.0 0.9 55 1.0 1.0 1.0 • ADMINISTRATIVE ASSISTANT x 1.0 1.0 01-i-Ice ASSISTANT II 1.0 ACCOUNTING TECHNICIAN 1.0 MAINTENANCE WORKER x 1.0 OOHS IRUCT IO N INSPECTOR 1.4 Totele 4,5 15 5,5 1.0 0.5 8.0 0,0 0.0 2.0 1_0 1.0 9.0 3.2 2.0 W... Funding Source fi Position City o1 5pokon* Valley I005 0udg e eZ "--:; t e Gametal FunQ 51ne1 Fund Storrs Wets r Fund City of Spokane Valley FTE Count by Year 2005 Budget 2004 2005 2005 Budget Authorized FTE Proposed Department FTEs Additions FTEs General Fund: Executive & Legislative Support 4.5 4.5 Operations & Administrative Services: Deputy City Manager 3.5 3.5 Finance 5.5 5.5 Legal 1.0 1.0 Human Resources 0.5 0.5 Public Works 7.0 1.0 8.0 Planning & Community Development Planning 9.0 9.0 Building 8.0 8.0 Parks & Recreation: Parks Admin 2.0 2.0 Recreation 1.0 1.0 Senior Center 1.0 1.0 CenterPlace 1.0 2.0 3.0 Street Fund 2.95 0.25 3.2 Stormwater Fund - 2.0 2.0 TOTAL 46.95 5.25 52.2 72 • • T Ye nriff firt TONT irr Uri '." 11 5 ;tteti MI5 n : 14° Seattle Tacoma Spokane Bellevue Everett Vancouver Bellingham Kent Yakima Renton Kennewick Federal Way Shoreline Lakewood Spokane Valley AVERAGE .1-305t0 O. .1r 9 Olympia Redmond Richland Auburn Kirkland Lynnwood Bremerton Puyallup Longview Edmonds Bothell Pasco Lacey University Place Sammamish Burien AVERAGE - VVo rkjcep m paj on : 571,900 196,300 197,400 117,000 95,470 150,700 69,850 84,210 79,220 54,900 57,900 83,500 52,730 58,940 82,005 42,860 46,480 41,650 45,355 45,630 34,500 38,700 35,490 35,290 39,580 32,900 37,580 32,240 30,720 35,930 31,480 E r „ _ 7 9473 3447 2139 1163 1041 1016 750 748 630 571 358 286 120 99 47 1459 548 548 540 443 419 334 332 309 289 260 237 228 196 66 59 40 303 19.9 C ' 411■ 2 t . I • : I gr 899 69 35 62 16 25 57 34 18 19 9 23 10 7 4 86 44 38 6 2 40 24 25 18 63 7 10 13 9 4 2 13 10/6/2004 Source: Association of Washington Cities Survey: 2004 73 Spokane . COMMUNITY PROFILE AND HISTORY "You cannot look to the future if you do not know the past." On May 21, 2002, voters within the City approved incorporation of the City of Spokane Valley, which is the second largest city in the County and the eighth largest city in the State, with approximately 83,950 residents. The City incorporated as of March 31, 2003. The assessed valuation of real property within the boundaries of the City for taxation purposes is estimated for 2005 tax collection to be approximately $4,700,000,000. Spokane Valley encompasses approximately 38.2 square miles of land area. It has an extensive retail tax base and is home to several major auto dealerships and the Spokane Valley Mall, which includes over 700,000 square feet of gross leasable floor area. There are an estimated 5,000 businesses in Spokane Valley with estimated retail sales of $1.5 billion. The first permanent settler in the Spokane Valley was Antoine Plante, a retired French - Canadian trapper. Mr. Plante built a cabin near the Spokane River in 1849, from which he operated a small Hudson's Bay Company trading post. Other settlers began arriving in this area between 1865 and 1882. "Firsts" to occur in Spokane Valley include the first settler in 1849, first business and ferry in 1850, the first store and bridge in 1862, the first house in 1866, and the first post office in 1867. All of these "firsts" occurred before the arrival in 1 873 of James Glover who was considered the "Father of Spokane." In 1883, the Northern Pacific Railroad opened the west up with the transcontinental railroad. The new railroad, coupled with the discovery of silver in north Idaho, created an influx of people to the Spokane Valley area. Within a few years the Spokane area was connected to the rest of the country by five transcontinental railroads. The next major innovation to Spokane Valley was the introduction of irrigation to the area. Within 20 years 30,000 acres of dry land had been converted into fertile farm land. The first irrigation systems were constructed between 1899 and 1905. The Valley population grew from 1,000 residents at the turn of the century to nearly 10,000 by 1922. During this time apple growing became the predominant agricultural crop with nearly 2 million apple trees being planted by 1912. As the population of the Valley increased, small communities with churches, schools, businesses, community clubs, and other organizations thrived. Prior to World War II, the federal government made a decision to build an aluminum plant in Spokane Valley along the Spokane River. Additionally, the federal government 10/7/2004 74 identified a need for warebouse space and facilities to support coastal activities during the war. In 1942, Spokane Valley was chosen as a site for one of theses Inland Supply Depots. The Naval Storage Yards are now the Valley Industrial Park that has 5,000,000 square feet of gross leasable floor area. Rapid growth continued in Spokane Valley throughout the 1950s, 60s, and 70s. Along with this continued growth came concerns regarding the impact of the development on the Valley environment. Citizens' concerns were related to impacts to lakes in the area as well as the aquifer underlying a majority of the Spokane Valley. No protections were put into place to address these issues; sanitary sewers were not required for new construction. Steady residential and commercial growth continued in the Spokane Valley throughout the 80s and 90s. High tech companies followed Hewlett Packard into the Liberty Lake area. Later, some high tech companies moved into the Industrial Park. The State Board of Health threatened to enact a moratorium on new development in 1983, unless sewering of the Valley began. In response, Spokane County developed a wastewater management plan that put into motion construction of a sewer trunk line and a sanitary sewer system was made available to the citizens of Spokane Valley. MAJOR PUBLIC FACILITIES AND PARKS IN SPOKANE VALLEY There are public facilities and a number of parks in the City of Spokane Valley. The Spokane Indians, a minor league baseball team, plays its home games at Avista Stadium, located just inside the city limits on the east side of Havana Street. This stadium is one of the finest facilities in the Northwest League and can seat 7,200 spectators. Situated next door to Avista Stadium is the Spokane County Fair and Exposition Center. The Fairgrounds was expanded in 2003 with the construction of a new covered grandstand that was opened at the 2003 Interstate Fair. Various other shows and events are held throughout the year at the Fairgrounds. Mirabeau Point Park, situated on 54.5 acres of land, located between Pines Road and Evergreen Road interchanges (north of I -90), along the south bank of the Spokane River, is a City cultural development currently under construction. It has been designed as a multiuse community facility that will provide public, educational, recreational, and cultural activities for its citizens. CenterPlace, a 54,000 square foot facility, will be built to accommodate a regional senior center, education and business center, and a cultural and performing arts center. Mirabeau Meadows is a 15 -acre parcel of land providing another area for community activities, such as family get - togethers and games, outdoor music, corporate outings, farmers markets, arts and crafts, and other special events in Mirabeau Point Park. Valleyfest, an annual community event that is sponsored by individuals and businesses in our City, was held in this park in 2004. 10/7/2004 75 Park Name Park Classification Park Size Balfour Community Park 2.8 acres Brown's Community Park 8.2 acres Castle Community Park 2.7 acres Edgecliff Community Park 4.8 acres Mirabeau Point Park Community/Regional Park 6.5 acres owned/54.5 total Myrtle Point Natural Area 31.0 acres Opportunity Township Special Use 0.2 acres Park Road Pool Special Use 2.0 acres Sullivan Community Park 10.3 acres Terrace View Community Park 9.1 acres Valley Mission and Valley Mission South & Pool Community Park 27.2 acres Valley Senior Center Special Use 2.0 acres Centennial Trail Trail 1 7 linear miles The City of Spokane Valley operates a number of parks within the City. Below is a summary of these parks: THE FUTURE OF SPOKANE VALLEY Spokane Valley: a community of opportunity where individuals and families can grow and play, and business will flourish and prosper. The potential of Spokane Valley is tremendous, with an adequate tax base and room for expansion of residential, commercial, and industrial growth. Spokane Valley rivals other cities in Eastern Washington in terms of population and significance in the region. The City is committed to planning for the future. It has created a rough draft of its first Comprehensive Plan, which is undergoing community review. In addition, the City is developing a Parks and Recreation Master Plan. 11/3/2004 76 LOCATION The City of Spokane Valley is located in the eastern part of Spokane County adjacent on the east by the City of Liberty Lake and on the west by the City of Spokane and is accessible from I -90, SR 27 and SR 290. Demographics Square Miles Population Housing Units Miles of Paved Streets CITY COUNCIL Mike DeVleming, Mayor Diana Wilhite, Deputy Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Richard Munson, Councilmember Gary Schimmels, Councilmember Steve Taylor, Councilmember MUNICIPAL SERVICES Law Enforcement The City of Spokane Valley contracts with the Spokane County Sheriffs Office for its law enforcement services. The City also contracts with Spokane County for jail and court services. The Washington State Patrol also provides services on state and interstate highways and as backup for emergencies. Fire Protection Spokane County Fire District 1, the largest District in Spokane County, provides fire protection as well as basic and advanced EMT life support services for the majority of the City. Portions of the City are also served by Spokane County Fire District 8. 11/3/2004 77 COMMUNITY PROFILE Library Services The Spokane County Library District provides library services to the City. 38.5 83,950 37,867 420 Public Works The City's engineering and roads maintenance is provided by the City's Public Works Department, with road maintenance provided under contracts by Spokane County. Animal Control Animal control services are provided by the Spokane County Animal Control Department, and is staffed with Animal Control Officers trained and commissioned by Spokane County Sheriff's Department. Parks and Recreation The City of Spokane Valley contracts with Spokane County for the maintenance of parks within the community Recreational Facilities • Balfour Park • Brown Park • Castle Park • Centennial Trail • Edgecliff Park • Mirabeau • Park Road Park • Sullivan Park • Terrace View Park and Pool • Valley Mission Park, Pool and Senior Center Educational Services The City of Spokane Valley is served by: • Central Valley School District No. 356 • East Valley School District No. 361 • Spokane School District No. 81 • West Valley School District No.363 • (7) private schools FUND ESTIMATED APPROPRIATION GENERAL FUND 528,508,165 STREET FUND 3,318,066 ARTERIAL STREET FUND 856,400 TRAILS & PATHS FUND -0- HOTEL/MOTEL FUND 300,000 DEBT SERVICE LTGO 03 582,835 CAPITAL PROJECTS FUND 332,545 SPECIAL CAPITAL PROJECTS FUND 205,145 STREET CAPITAL PROJECTS FUND 933,000 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 04- AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON, ADOPTING A BUDGET FOR THE PERIOD OF JANUARY 1, 2005 THROUGH DECEMBER 31, 2005 APPROPRIATING FUNDS AND ESTABLISHING SALARY SCHEDULES FOR ESTABLISHED POSITIONS. WHEREAS, State law requires the City Manager to prepare a preliminary budget for the City of Spokane Valley at least sixty (60) days before the beginning of the City fiscal year beginning January 1, 2005 and ending December 31, 2005; WHEREAS, the City Manager in consultation with the Finance Director and Department Heads has prepared and placed on file with the City Clerk a preliminary budget together with an estimate of the amount of money necessary to meet the expenses of the City including payment of outstanding obligations; WHEREAS, notice was posted and published on October 1 and 8, 2004 that the City Council in the City of Spokane Valley would meet and receive public comment in the City Council Chambers prior to the adoption of the budget. WHEREAS, following the filing of the preliminary budget with the City Clerk, notice of the same and a hearing on the budget, the City Council desires to adopt the 2005 budget, including all allowances and appropriations for each fund so that a balanced budget, where appropriations are limited to the estimated revenues, is adopted for the City. NOW, THEREFORE, the City Council of the City of Spokane Valley do ordain as follows: Section 1. Adoption of 2005 Budget. The budget for the City of Spokane Valley for the year of 2005 is hereby adopted as the balanced budget of the City with appropriations limited to the total estimated revenues of the City. The final budget for 2005 is attached hereto and by this reference is incorporated herein pursuant to RCW 35A.33.075. For summary purposes the total estimated appropriations for each separate fund plus the aggregate total for all such funds are set forth as follows: 11/3/2004 78 MIRABEAU POINT CAPITAL F T D 3,000,000 STREET BOND CAPITAL FUND 406,000 CD BLOCK GRANT FUND -0- CAPITAL GRANTS FUND 3,827,000 BARKER BRIDGE FEDERAL. FUND 234,000 STORMWATER MANAGEMENT FUND 1,312,521 EQUIPMENT R&R FUND 51,051 RISK MANAGEMENT FUND 134,450 The total balance of all funds appropriated for the year 2005 is 544,001,178. Section 2. Positions and Salary Schedules. The various positions and salary ranges for City Employees are attached to this Ordinance as Appendix "A." Section 3. Transmittal of Budget. A complete copy of the budget as adopted, together with a copy of this Ordinance shall be transmitted by the City Clerk to the Division of Municipal Corporations in the Office of the State Auditor and the Association of Washington Cities. Section 4. Severability. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Section 5. Effective Date. This Ordinance shall be in full force and effect five (5) days after the date of publication of this Ordinance or a surrunary thereof in the official newspaper of the City ATTEST: PASSED by the City Council this day of , 200_. Chris Bainbridge, City Clerk Approved As To Form: Stanley M. Schwartz, City Attorney Date of Publication: Effective Date: 11/3/2004 79 Mayor, Michael DeVleming Position Title Grade 2005 Range City Manager Unclassified Deputy City Manager 21 $ 7,020 - $ 9,000 Community Development Director 21 7,020 - 9,000 Finance Director 21 7,020 - 9,000 Public Works Director • 21 7,020 - 9,000 Parks and Recreation Director 19 5,686 - 7,290 City Engineer 19 5,686 - 7,290 Planning Manager 18 5,118 - 6,561 Building Official 18 5,118 - 6,561 Senior Engineer- Capital Projects, Development 18 5,118 - 6,561 Senior Engineer - Traffic, CIP Planning /Grants 17 4,606 - 5,905 Deputy City Attorney 16 4,145 - 5,314 City Clerk 16 4,145 - 5,314 Senior Planner 16 4,145 - 5,314 Accounting Manager 16 4,145 - 5,314 IT Specialist 15 3,731 - 4,783 Associate Planner 15 3,731 - 4,783 Assistant Engineer 15 3,731 - 4,783 Public Works Superintendent 15 3,731 - 4,783 Accountant/Budget Analyst 14 3,358 - 4,305 Administrative Analyst 14 3,358 - 4,305 Assistant Planner 14 3,358 - 4,305 Building Inspector II 14 3,358 - 4,305 Plans Examiner 14 3,358 - 4,305 GIS Technician 14 3,358 - 4,305 Engineering Technician 14 3,358 - 4,305 Maintenance/Construction Inspector 13 - 14 3,022 - 4,305 Recreation Coordinator 13-14 3,022 - 4,305 Code Enforcement Officer 13 3,022 - 3,874 Building Inspector I 13 3,022 - 3,874 Planning Technician 13 3,022 - 3,874 Deputy City Clerk 12 -13 2,720 - 3,874 Senior Center Specialist 12 -13 2,720 - 3,874 Maintenance Worker II 12 2,720 - 3,487 Administrative Assistant 11 -12 2,448 - 3,487 Permit Specialist 11 -12 2,448 - 3,487 Accounting Technician 11 -12 2,448 - 3,487 Maintenance Worker I 10-12 2,203 - 3,487 Office Assistant II 10 -11 2,203 - 3,138 Office Assistant I 9 -10 1,983 - 2,824 Recreation Assistant 5 1,301 - 1,668 1018/2004 Appendix A EMPLOYEE POSITION CLASSIFICATION MONTHLY SALARY SCHEDULE 2005 Salary Schedule 80 Accrual Basis — A basis of accounting in which revenues and expenditures are recorded at the time they occur as opposed to when cash is actually received or spent. Appropriation — A legal authorization granted by the City Council to make expenditures and to incur obligations for a specific purpose. Assessed Valuation — The valuation set upon real estate and certain personal property by the County Assessor as a basis for levying property taxes. Authorized Positions — Employee positions, which are authorized in the adopted budget, to be filled during the year. Bond — A long -term promise to repay a specified amount (the face amount of the bond) on a particular date (the maturity date). The most common types of bonds are general obligation revenue bonds. Bonds are primarily used to finance capital projects. Budget — A plan of financial activity for a specified period of time (fiscal year or biennium) indicating all planned revenues and expenses for the budget period. Budget Message — The opening section of the budget that provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous years, and the views and recommendations of the Mayor. CITY OF SPOKANE VALLEY Glossary of Budget Terms 10/7/2004 81 Capital Improvement — Expenditures related to acquisition, expansion or rehabilitation of an element of the government's physical plant; sometimes referred to as infrastructure. Capital Outlay — Fixed assets that have general value of 55,000 or more and have a useful economic lifetime of more than one year. Capital Project — Major construction, acquisition, or renovation activities which add value to government's physical assets or significantly increase their useful life, also called capital improvements. Capital Projects Fund — A fund created to account for all resources and expenditures used for the acquisition of fixed assets except those financed by enterprise funds. Contingency — A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contractual Services — Services rendered to a government by private firms, individuals, or other governmental agencies. Debt Service — Payment of interest and principal on borrowed money according to a predetermined payment schedule. Department — The basic unit of service responsibility, encompassing a broad mandate of related service responsibilities. Division — Can be a subunit of a department which encompasses a substantial portion of the duties assigned to a department (e.g. Building Division in the Planning and Community Development Department). Encumbrance — The commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a specified future expenditure. Expense — Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other charges. Face Value — The amount of principal that must be paid at maturity for a bond issue. Fiscal Year — A twelve -month period designated as the operating year for accounting and budgeting purposes in an organi nation. Full -time Equivalent Position (h "1'E) — A full -time or part -time position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time person working 20 hours per week would be equivalent of 0.5 of a full -time position. Fund — A fiscal entity with revenues and expenses that are segregated for the purpose of carrying out a specific purpose or activity. GAAP — Generally Accepted Accounting Principles. Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures 10/7/2004 82 that define accepted accounting principles. GASB — The Governmental Accounting Standards Board, established in 1985, is the current standard - setting board for governmental GAAP. General Fund — The principal operating fund of the City used for general governmental operations. Taxes and fees that generally have no restriction on their use support it. General Obligation (G.O.) Bonds — This type of bond is backed by the full faith, credit and taxing power of the government issuing it. Indirect Cost — A cost necessary for the functioning of the organization as a whole, but which cannot be identified with a specific product, function or activity. Infrastructure — The physical assets of a goverment (e.g. streets, water, sewer, public buildings, and parks). Interfund Transfers — The movement of monies between funds of the same governmental entity. Levy — To impose taxes for the support of the governmental activities. Long -term Debt — Debt with a maturity of more than one year after the date of issuance. Mission Statement — A broad statement of the intended accomplishment or basic purpose of a program. Modified Accrual Accounting — A basis of accounting in which expenditures are accrued but revenues are accounted for when they become measurable and available. Since this type of accounting basis is a conservative financial approach, it is recommended as the standard for most governmental funds. Operating Budget — The portion of the budget that pertains to daily operations that provide basic governmental services. Ordinance — A formal legislative enactment by the City Council. If it is not in conflict with any higher form of law, such as a statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. Program — The smallest organization that delivers a specific set of services. A program may be an entire department; or if a department encompasses significantly diverse responsibilities or large work forces, a single department may be divided into two or more programs Reserve — An account used to either set aside budgeted revenues that are not required for expenditure in the current budget year or to earmark revenues for a specific future purpose. Resolution — A special or temporary order of a legislative body —an order of a legislative body requiring less legal formality than an ordinance or statute. Resources — Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. 10/7/2004 83 Revenue — Sources of income financing the operations of government. Taxes — Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those who pay, for example, sewer service charges. Unreserved Fund Balance — The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation. User Charges — The payment of a fee for direct receipt of a public service by the party who benefits from the service. Vision Statement — A short statement that conveys the big picture of the organization. It is general in scope, not restricting. It answers the question y- Meeting Date: November 9, 2004 CITY OF SPOKANE VALLEY Request for Council Action Item: Check all that apply: ❑ consent 0 old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ® pending legislation AGENDA ITEM TITLE: Second Reading: An ordinance establishing Section 4.08.19 of the Spokane Valley Uniform Development Code relating to Planned Unit Developments (PUDs) and amending Section 4.15.1 Residential Standards of the Spokane Valley Uniform Development Code. GOVERNING LEGISLATION: RCW 36.70, Spokane Valley Ordinance 03 -53 PREVIOUS COUNCIL ACTION TAKEN: City Council was briefed on interim development regulations requiring review on April 6, 2004 and on proposed amendments to development regulations relating to Planned Unit Developments on September 7, 2004. On October 26, 2004, the proposed ordinance was advanced to a second reading. BACKGROUND: The City Council adopted the Spokane County Comprehensive Plan pursuant to Ordinance No. 03 -52, subsequently adopting the Zoning Code of Spokane County as interim development regulations for the new city (Ordinance 03 -53). Chapter 14.704 of these regulations establishes the requirements for Planned Unit Development (PUDs) which are designed to provide flexibility in site design and incentives. Spokane County amended their regulations effective July 13, 2004, as part of the Phase 11 Development Regulations to correct deficiencies. Substantive changes include: • Bonus Density calculations (see chart); • Requiring that streets be designed and constructed to public street standards; • Providing that required landscape areas and drainage facilities are not included in the required open space requirements, and that the open space be usable. • Specifying the requirements for financial guarantees for open space and private street maintenance. • Requiring sidewalks on both sides of the street. • Maintaining existing provisions for lighting, but requiring provisions that street lighting is owned and maintained by the property owners association. • Requiring that streets will not impede the current or future development of an arterial or collector and that the PUD shall have direct access to a designated collector or arterial. Table 4.15.1 Residential Standards is updated to include provisions for PUDs. Also added is a footnote providing that rear and side setbacks of five feet apply to accessory structures. A Determination of Non - Significance was issued on August 19, 2004 with comments due not later than September 14, 2004 and a draft proposal was submitted to CTED and other agencies for their review on August 24, 2004. The Planning Commission held a public hearing on the proposed ordinance on October 14, 2004 and recommended approval by a vote of 6 -0. Administrative Report Planned Unit Developments Page 2 of 3 Lot Standards City Current Proposed 0.3 du /acre if 10% with slope of 10% or less 0.3 du /acre if 50% with slope of 10% or less 800 square feet 1,600 square feet Road Standards 20 feet one -way, 22 feet two way private streets 200 square feet 0.3 du /acre if llandscaped open areas, tennis courts, pool or play areas Environmental 0.15 du /acre if "significant" public access to lake river 0.1 du /acre if to trails 0.1 du/acre if to scenic view Public street standards 0 e S•ace 10% of development Bonus Density Open Space 0.5 du /acre if two or more specific improvements, including hard surface trails, improved playfields swimming or wading pools or play areas with structures/equipment 10,000 in size. 0.3 du/acre if access to lake river 0.1 du/acre if to trails 0.1 du/acre if to scenic view 1.0 du /acre if 40% of existing disease -free trees > 10 caliper preserved, where trees number more than 10 /acre Internal Circulation /Parking 0.1 du /acre if off- street parking 50 feet or Tess from the entrance deleted 0.15 du /acre if non - residential parking small (10-20 s a aces / rou, and landsca • ed 0.15 du /acre with bike /pedways separate from road 0.2 du /acre if non - residential parking small (10 -20 spaces/_rou• and landsca•ed 0.5 dulacre with bike / pedways separate from road 0.15 du /acre if primary access is via arterial road deleted 1.0 du /acre for interconnected roadways w/o cul-de -sacs 1.0/acre for interconnected roadways w/o cul-de -sacs 0.5 du/acre for un -gated development allowing public access 0.2 du/acre if Y2 parking is covered deleted 0.3 du/acre if all parking is covered deleted 0.15 du /acre if public transit within Y< -mile Public Service & Facility Availability 0.3 du /acre if public transit within % 0.15 du /acre if off -site convenience shopping within % -mile 0.2 du /acre if off -site convenience shopping within % -mile 0.1 du /acre if water and sewer lines are within or adjacent and service district will not be "stressed" deleted 0.1 du /acre with a crime prevention plan incorporating locks, lighting, doors, windows and alarms deleted 0.1 du /acre if within school 'preferred growth" area deleted 0.15 du /acre if transit amenities included e.g shelters schedule information, bus passes 0.5 du /acre if transit amenities included ie. shelters, benches and park 'n ride spaces 0.2 du /acre for school bus loading shelters approved by the school district. Other City Current Proposed 0.2 du/acre with a "design development team" deleted 0.15 du/acre with housing mix and 10% single family detached. deleted Administrative Report Planned Unit Developments Page3of3 OPTIONS: Approve; remand to Planning Commission for additional consideration with direction; or take no action. RECOMMENDED ACTION OR MOTION: Approval. BUDGET /FINANCIAL IMPACTS: None. STAFF CONTACT: Marina Sukup, AICP, Community Development Director ATTACHMENTS: Draft ordinance CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 04 -046 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON, AMENDING ORDINANCE No. 03 -53 TO ESTABLISH SECTION 4.08.19 OF THE SPOKANE VALLEY UNIFORM DEVELOPMENT CODE RELATING TO PLANNED UNIT DEVELOPMENT (PUDs), AMENDING SECTION 4.15.1 RESIDENTIAL DIMENSIONAL STANDARDS OF THE SPOKANE VALLEY UNIFORM DEVELOPMENT CODE; REPEALING CHAPTER 14.704.00 OF THE INTERIM DEVELOPMENT REGULATIONS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING EFFECTIVE DATE. WHEREAS, The Interim Comprehensive Plan adopted by the City of Spokane Valley pursuant to Ordinance 03 -53, specifies dimensional standards for residential and non - residential development; and WHEREAS, the Comprehensive Plan Goal ED.5a is to "[p]rovide consistent, fair and timely regulations that are flexible, responsive and effective" and WHEREAS, Interim Comprehensive Plan Goal UL.3 is to .."[e]ncourage exemplary developments by providing for flexibility and innovative design through planned unit commercial/industrial and residential developments "; and WHEREAS, Interim Comprehensive Plan Policy UL.3.1 through UL.3.3 encourage flexible regulations and incentives; and WHEREAS, there exist geographic areas within the City of Spokane Valley which would benefit from more flexibility in order to preserve and protect sensitive environmental resources; and WHEREAS, the development of Mixed -Use and Urban Activity Centers identified in the Interim Comprehensive Plan require flexibility for successful design and implementation; and WHEREAS, the proposed development regulations must be submitted to the Washington Department of Community Trade and Economic Development pursuant to WAC 365- 195 -620; and NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, do ordain as follows: Section 1. Section 4.08.19 of the City of Spokane Valley's Interim Zoning regulations is hereby amended to read as follows: 1 "Section 4.08.19 Planned Unit Development Overlay Zone Section 4.08.19.01 Purpose and Intent The purpose of the Planned Unit Development Zone is to establish a process to foster creative, efficient, and comprehensive design of site development. The overlay zone is to be used in conjunction with other zoning classification except the - - xcJucive -Ag B+oal-(Ee eneral Agrisult xal- {6A)and the Mining (MZ) zones. . These regulations provide flexibility in site design and offer incentives in order to: 4-- Easeur- age- creative, efficient- uses -ef 44d 2. Ensure - preservation -ef- usable -open- space; 1. Encourage innovative design and the creation of permanent open space. 2. 3- Preserve and enhance special site features. 3. Encourage the conservation of natural features, wildlife habitat, and critical areas. 4. Facilitate the development of mixed -use projects. 5. Encourage the development of street. pedestrian and bicycle paths that contribute to a system of fully connected routes. 6. 4- Facilitate the economical and adequate provision of public services. S- --Maxi iZe uce- ef- alteraaa - - - - - - - - - - - - - • - - - - = 7. Provide for diverse and convenient recreational opportunities. 8. 6- Provide a variety of environments for living, working, and recreation. Section 4.08.19.02 Applications and Process 1. Planned unit developments shall be initiated by the owner(s) of all property involved, if under one ownership, or by joint application of all owners having title to all the property in the area proposed for planned unit development. 2. The planned unit development process entails a preliminary and final phase. -A-p ar-y - - = - - - - - - - - - - - = = - r 9- 6edy--of f- the- develepmer t pFelimiaaFyphase -sha is - valid - fof - three yeaF -pefio Body, , as follows: a. The preliminary phase examines the planned unit development plan for compliance with the requirements of the zone. The preliminary planned unit development is considered through a public hearing before the Hearing Examiner. Once approved by the Hearing Examiner, the planned unit development is a binding plan that defines the concept of the development and uses to be allowed. The planned unit development approval is valid for a 5 -year period. which may be extended by a period not to exceed twelve months by submitting a time extension request to the Department. Any extension of time must be requested by the applicant, in writing, before expiration of the original approval, stating specific reasons for such a request. b. The final planned unit development plan may be approved administratively, to determine if all standards, requirements, and conditions of preliminary approval have been met. 2 Section 4.08.19.03 Preliminary Planned Unit Developments The preliminary planned unit development shall have a site development plan, including, but not limited to, the following: 1. The exact boundaries and legal description of the property to be developed. 2. The name of the proposed planned unit development. 3. Date, north arrow, and scale of the drawing. 4. Names, addresses. and telephone numbers of the owner(s), applicant(s), engineer, and surveyor. 5. 2 -The general location of all proposed improvements that are to be constructed on the land, including, but not limited to, all residential and nonresidential structures, building heights, recreational facilities, walls, fences, refuse areas, streets, walks and public transit facilities. 6. Setbacks to the property line, roadways, and the planned unit development perimeter. 7. Location of pedestrian and bicycle circulation systems. 8. 3- Common open spaces showing size and functions upon completion. 4. F- leer - plans -ef- typical dwelling aeflser mon -ope - feet 9. A description of the method of ownership and responsibility for maintenance of all common open space and private streets. 10. The location and dimension of off - street parking facilities, public and private, including transit facilities for nonresidential uses. 11. 6- Location and size of all public and semipublic sites if applicable (i.e., schools, churches, parks, plazas, etc.). 7-. - - - . - - - • - in-the-deNxeielaFilentl 12. 8,A tabulation of densities within each project area, phase. or sector. A®win _ - - - - - = - - • stFustecl • - : - - - _ - - • _ - _ _ - • - �ize -of- plant- material to be- ccd, and the -metta fat-maiRteRaflse- to -alt- planted 13.E -If applicable, a subdivision map showing land divisions. The preliminary and final subdivision map shall comply with the county subdivision ordinance and state subdivision regulations. 14. 42, A proposed phasing and /or timing schedule. 15.43- Topographical map of existing terrain at a minimum 48- two foot contour level, including 100 -year flood plains identified under the National Flood Insurance program. 16.44- Natural features to be retained, such as natural slopes, stands of trees, etc. 17. All critical areas as defined in the Comprehensive Plan. Section 4.08.19.04 Final Planned Unit Developments 1. Prior to expiration of the preliminary planned unit development, approval of a final planned unit development plan is required. Approval of the final planned unit development shall be 3 administrative. A final planned unit development differs from the preliminary planned unit development in the amount of detailed information provided. In addition to all of the information required for a preliminary planned unit development, the final planned unit development plan shall include the following items. a. Approved road plans. b. Approved drainage system plans. c. Typical building footprints. d. A tabulation of the percentage of total building coverage in the development. e. A schematic landscaping plan indicating the type and the size of plant material to be used and the method for providing permanent maintenance to all planted areas and open spaces. 2. Any planned unit development not finalized before the expiration of the preliminary planned unit development approval shall become void, unless a time extension is granted by the Director of Community Development. Construction shall not commence until a planned unit development has been given final approval. Section 4.08.19.05 Phased Planned Unit Developments 1_A planned unit development may be developed in phases, subject to an approved phasing schedule. All construction and improvements not completed within three -(3} five (5) years of approval of the phased final planned unit development are subject to compliance with updated City Standards through a time extension action. Any planned unit development where construction has not commenced before expiration of the final planned unit development approval shall become void. 2. Each phase of the proposed development must contain the required parking spaces. common open space. ingress, egress and transportation circulation landscape. and utility areas necessary to sustain that phase as an independent development, in the event that the remaining property is not developed. Section 4.08.19.06 Modifications 1. The Hearing Examiner may require modifications to the application for a planned unit development to ensure that the purpose spirt -and intent of this chapter is accomplished. 2. A substantial modification to the approved preliminary or final planned unit development plan shall only be approved through a change of condition application process. All modifications which are not minor, shall be considered substantial. 3. A minor modification to the preliminary or final planned unit development plan may be approved administratively. Minor modifications shall be consistent with the following requirements: a. The modification shall be limited to minor shifting of the location of buildings, proposed streets, utility easements, or common open space. b. The modification shall not: i. Enlarge the boundaries of the approved planned unit development plan. ii. Change the approved uses. iii. Change the general location or amount of land devoted to a specific land use. iv. Increase the residential densities. 4 Section 4.08.19.07 Permitted Uses Hereafter-i premises- be-use 1. All uscsper All- aeoessery -use are - allowed. 'tdie -st4 i-portion ther-eo# Rvefted a Iarged or 63311 any- lot-er r i#ted- as- follows. Used allowed in a planned unit development include those uses allowed in the underlying zone(s) and those accessory uses and structures ordinarily associated with a permitted use. 5 Uses- net- spesificalfy- authorize _ - . _ knot- limited -to tie- following- 1. Mining Section 4.08.19.08 Development Standards Prior to the issuance of a building permit, evidence of compliance with provisions of this chapter, when applicable, shall be provided to the Division. Section 4.08.19.09 Density 1. The total units permitted in a planned unit development shall be determined as follows. a. In any planned unit development, the number of dwelling units per acre of land shall not exceed that which is permitted by the underlying zone(s), except as approved for density bonus by the Hearing Examiner subject to the following procedures. However, this does not preclude an applicant from transferring density from one portion of the development to another portion of the development, so Iona as the total project does not exceed the maximum density of all zoning classifications included within the project boundary. Residential density shall be determined by the following formula: Net Maximum number of Density Total Units Development x units per acre allowed in + Bonus = Permitted Factor underlying zone Earned b. The net development factor is the acreage of the planned unit development area minus the area set aside for, or existing in, any of the following: i. Schools. ii. Commercial and/or industrial uses. iii. Single- family residential platted areas, if determining net development factor for the multifamily portion of a mixed single - family, multifamily development. iv. Natural water bodies, including lakes, streams, swamps, marshes, and bogs which are not incorporated in the common open space plan of the planned unit development. v. 75% of areas having slopes that exceed 40 %. vi. Public or private streets. 2. Bonus Density: The following units per acre may be cumulatively earned as additional density to the maximum base unit density of the underlying zone. a. Common Open Space. i. 0.3 unit - per -acre bonus if at least 40% -50% of the dry, common open space has a slope of 10% or less. ii. 00.5 unit - per -acre bonus if significant recreation areas are developed and equipped with sect -at least 2 of the following features: , ,: hard surface biking, hiking or walking trails landscaped - open -ar as, etc. connecting the entire development improved plavfields, sport tennis- courts; swimming or wading pool; or children's play areas that incorporate play structures /equipment and are at least 10,000 square feet in size. b. Environmental Concern. i. 00_3 unit - per -acre bonus if significant- general public access is provided to lake or river; to trails, 0.1 unit - per -acre bonus; to scenic viewpoint, 0.1 unit - per -acre bonus. ii. 1.0 unit - per -acre bonus if 40% or more of the existing, disease -free trees over 10 inches in diameter, are retained on the site. Tree diameter shall be measured at 6 feet above the ground. This bonus shall only apply in forested areas where the density of the above - described trees is equal or greater than 10 trees per acre. The health of the trees shall be certified by a licensed arborist. c. Internal Circulation and Parking. ding ed provided -that, i€ -one- can - walker- cover -#nom structure to-parkiing,the-p receive -the bonus; i. 0.15 0.2 unit - per -acre bonus if nonresidential parking areas are kept small (10 to 20 spaces in a group) and interspersed with landscaping, or provided within or under main buildings. ii. -0.15- unit -per- acre - bonus -if- prevision ' 'Ire- and- pedest4iar sYstem - - - - , - - - - - - - - - - = adwa-ys- iii. 1.0 unit - per -acre bonus for an interconnected roadway system without cul -de -sacs. iv. 0.5 unit - per -acre bonus for an un -gated development allowing through access to the public. v. 0.2 unit onus -if_a guired- parking -is- covered or-0 -0 -unit- per acre- bonus -if all -the- required - parking is covered- d. Public Service and Facility Availability. 6 i. 9,1-5-0.3 unit - per -acre bonus if public transit is available within '/4 -mile walking distance of the majority of dwelling units and offices. The walking route shall be hard- surfaced and accessible, and may require an off -site sidewalk /pathway. ii.045 -0_2 unit - per -acre bonus if off -site convenience shopping facilities are functionally accessible within reasonable walking distance (approximately 'A- mile). The walking route shall be hard - surfaced and accessible, and may require an off -site sidewalk/pathway. the-systen-w4l-Ret-be-stFessed by the added development; er- rife -bof s-i e- develepfn 4ef} ssfpefatif►g -leesk dwelI4 -u ait- light4F g streetli el t onG niinanees; and OJ4ien- of- a-sGteel nsistent distfist- w#aieh4hat-distfis with- that- distfist= s-five- (5)-year- planning- objeetives iii. 845 -0_5 unit - per -acre bonus if integrated- special facilities and -a- program to enGetrrage- and - facilitate use f-p bliG- r-aesit -and -e = - _ - - - -. ., - - = eeling -) for public transit are incorporated into the design and approved by the STA (e.g., sheltered, lighted waiting /loading facilities, including benches and park- and -ride spaces ). car-pee ; intef►anee- chafges) roved- by-the This -eff oft- Fnust- e*seed- that- fetwifed -under slt- Authority, iv..0.2 /acre for school bus loading shelters approved by the school district. c. Other. 1o re- boeas- if -sewerr-afe- ad}aeeet ii,i4fteen- efre -huw dfedth (.1 5) -enit-{ref- acre -bon at res- a- fwix -ef we sider ee ; residences; duplexes wnhho se es- ef- heusing es square -feet unle propose-in a P.U.D. 7 r distfie - _ - - - - - - - hat ice- approved -at -time of P.U.D. hearing -minim - setbacks -ef-t a eflyig zone- shall- apply- te- exterasr -pro ect- boundaries. Interior yards shall -b e ent- plan - Each- developme e- reviewed- to- easere- adeguate- prevision of -fight- and- aif- feFall- ctruct es- 44,741,330- Coverage (sent -(60 %) of the- site - may -be- utilized -fe fight -of-way - dedications- i muna- Building - Height Building- height -rn -be- waived- en-an- individual -- building -te allow - greater flexibility- with - the -dev nd -uses ancl- bu+ldiag- heights -as-we l-as- building- retatienslaips- within- the - development- Section 4.08.19.10 Parking, Signage, and Landscaping Standards Parking, signage and landscaping standards shall be as provided in chapter 14.802, Off - Street Parking and Loading Standards; chapter 14.804, Signage Standards; and chapter 14.806, Landscaping and Screening Standards. Section 4.08.19.11 Storage Standards All storage in the planned unit development zone shall be within a closed building, except for the storage of retail products that are for sale or rent, which may be stored outdoors during business hours only and -not- Outdoor storage of retail products shall not be within any required front or side yard, nor in any public street or road right - of -way. Section 4.08.19.12 Refuse Storage All outdoor trash, garbage and refuse storage areas shall be screened on all sides from public view and, at a minimum, be enclosed with a 5 foot -high concrete block, masonry wall, or sight - obscuring fence with a sight- obscuring gate for access. Single- family and duplex residences are exempted from this provision. Section 4.08.19.13 Mechanical Equipment All rooftop mechanical equipment shall be placed behind -a- permanent screen completely - restricted- fromvview- screened from adjacent roadways and properties, so as not to be visible by persons standing at the property line. Section 4.08.19.14 Utilities All utilities shall be underground. Section 4.08.19.15 Street- Design - Flexibility— Additional Requirements Within- planned - unit -deve twenty -(20) feet -fo - - - - r- twe-way-tFaffic-provided -that -all the - fallowing -c Ned a On- site - parking- shall -be- provided whiela- is- #unctienally- senvenierntts- planned- dwefing units, and-w ' goal- ts-the- zene- reguirem guest - parking; s s- peint-slaall-sewe -no -more -than -ne- more -t-h be- • - = - - = - • e - ` - - . e ne -way eets shall -be signed -at -every intcrcoetaen; a. All streets shall meet or exceed the current design and construction standards for public streets adopted by the City of Spokane Valley, as they may be amended from time to time. b. All areas which are to be occupied or traveled over by motor vehicles shall be paved. 8 tar c. On- street -faark ng- shall -b p- - -- - -- -, = - .421tk etch —P44 or "firo lane =- signs- shall -be-re eRt -shat d- R•eadw E-A ' aids a4d c. No proposed street shall impede the current or future development of any arterial or collector identified on the Arterial Road Plan. All PUDs shall have direct access to a designated collector or arterial. d. Energy efficient street lights shall be located at the entrance of the development and at each intersection. The lights shall be owned and maintained by the homeowners' association. e. There - shall -b per feAt -ma e. Maintenance of Private Streets and Common Areas. i. Residential developments. A homeowners= association shall be created pursuant to RCW Chapter 64.38. The association shall be created for the purpose of managing and maintaining private streets, common areas, and other improvements not otherwise owned by individual lot owners, and any other lawful purpose allowed under RCW Chapter 64.38. ii. Nonresidential developments. An association or other legal entity shall be created pursuant to the laws of the State of Washington for the purpose of managing and maintaining private streets, common areas, and other improvements not otherwise owned by individual lot owners, and any other lawful purpose. iii. Declaration of Covenants. Conditions and Restrictions shall be recorded with the Spokane County Auditor for all planned unit developments containing private streets and /or common areas. The Declaration of Covenants, Conditions and Restrictions shall include the following provisions: iv. Repair and Maintenance Rights and Duties of Association: The Association shall maintain, repair and replace all parts of the common area including private streets, drainage systems, and retention ponds or similar drainage facilities, or shall contract for such maintenance, repair and replacement to such areas are maintained in good condition and function for their intended use. v. Maintenance of Private Streets: The private streets, as designed and approved by the City of Spokane Valley, have been or are being constructed for the purpose of providing ingress and egress and pedestrian access to the property. The City of Spokane Valley has no obligation to maintain, repair or reconstruct the private streets. The Association is responsible for repairs and maintenance. The Association shall maintain the private streets in reasonable conformance with the approved private road plans on file with the City of Spokane Valley. 9 vi. Dissolution of Association: The Association may be dissolved only if ownership and maintenance responsibility of common areas, common area roadways, and drainage control features is assumed by a governmental entity with the authority to assume such ownership and upon written acceptance of the same by the governmental entity. It is not the policy of the City of Spokane Valley to assume ownership of common areas, private streets or other common area improvements. vii. Enforcement: The Board, any Owner, and any governmental or quasi - governmental agency or municipality having jurisdiction over the Project shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed in the Declaration, and all such action shall be entitled to recover cost and reasonable attorneys fees as ordered by the Court. viii. Reserve Fund: The Association shall exercise good faith and best efforts to maintain a Reserve Fund for the maintenance of private streets and other improvements such as common greenbelts, security station structures and equipment, and other infrastructure. This Reserve Fund should not be co- mingled with any other association fund. The balance of the fund should be equal to the total replacement cost of the private streets and other improvements divided by the average life expectancy of those improvements times the age of the improvements. ix. Access Required: Emergency vehicles utility personnel, the U.S. Postal Service, and governmental employees in connection with their official duties shall have access to the planned unit development 2. Drainage. A-- drainage- plan -s is uiFed conciste ty- Drainage 644idelincs. Drainage improvements shall be designed, constructed and maintained in accordance with the current Spokane Valley Storm Water Management Standards, as they may be amended from time to time. 3. Pedestrian Circulation Facilities. Within planned unit development projects, pedestrian circulation facilities serving each unit shall be provided on both sides of the street or private road and shall be: a. Pave vitla- asphalt sencrete- sr- Rertland cement- see6rete;Hard- surfaced with asphalt or concrete. Asphalt walkways shall be only allowed when physically separated by a minimum of 7' from the vehicle roadway. Alternative hard surface material may be used when approved by the Public Works Department. Sidewalks separated by less than 3' from the roadway shall have a vertical curb separating sidewalk from roadway. Walkways shall meet accessibility standards. b. Functionally and safely convenient to each dwelling unit served; 10 c. Functionally and safely convenient to schools and to industrial, commercial, recreational and utility areas within or adjacent to the project, ient irsuIation- systeaa- outside- tlae- P-1� -D ; d. Sufficiently wide (minimum of six [61 feet for commercial areas and five [51 feet for residential areas) to accommodate potential use; e. Located and designed in accordance with approval from the City of Spokane Valley f. Lighted for security and - safety- Section 4.08.19.16 Required Open Space 1. Required Open Space: A minimum of 10% of the total area of the planned unit development shall be rece v d- designated and maintained as common open space. Required landscape areas and storm water facilities shall not be used in the calculation of open space. 2. Types of Open Space: Land dedicated for open space should be usable for either greenbelts that serve as a buffer between land uses. using existing vegetation and new plant materials, active or passive recreational activities, or for protecting environmentally sensitive areas or critical areas. Unusable open space includes the design of areas that do not meet the intent and purpose of this chapter, such as open space areas that are not accessible to residents of the development, or do not function for active /passive recreation or do not conserve wildlife habitat or other natural features. 3. Maintenance and Ownership of Common Open Space: The applicant shall choose 1 or any combination of the following methods of administering common open space: a. Dedication of common open space to the Gount-y Cam, which is subject to formal Gounty City acceptance; or b. Establishment of an association or nonprofit corporation of all property owners or corporations within the project area to ensure ownership of and responsibility for perpetual maintenance of all common open space. Fnmen epen- spase-lay- the- -apglisant— Alt- grivateiy-ewned -Gamin senfer -te- its -inte ea-use -and Fe ain- as -e*pfe evelepmeFit-P-lan-by tiae- IFIElusien -in -all- deeds- of- appnaianataFest atiens -te- ensure -t an,Said -deed Fe hibitien- against fiz+tuFe- division- eF- segFegatiees -wit nut- fuFtlaer -Ee+ F►ty- approvals- 4. Transfer of Ownership. Where dedication to the public or a homeowners' association is proposed required improvements shall be completed prior to any transfer of ownership. Where improvements are not completed in accordance with these requirements, building permits and/or approval of permitted structures may be withheld upon notification to the Building Official by the Community Development Director, pending completion of said improvements. 5. Phasing: All common spaces, as well as public and recreational facilities, shall be specifically included in the phasing schedule and be constructed and fully improved by the applicant at an equivalent or greater rate than the construction of structures. e feet of private open space shall be provided Fesidential -unit- 11 ateria The- aforementioned- Deveea re-i mended -te- accompli owing- design c�+ ter aa- ebjestives4n- a11� -U-B�. 1. Open-spases-r pedestrian- and - vehicular circulation facil - - z. , - • ^ the pertinertmen +ties - shah- be -an -i S ntien chall be given- to -t#c retention of nat ral- landscape feamss -of the -site- the- Iayeut eteres- and -other facilities- shall- effect- a-con et- and - utility improvements- -Recreational -areas (active- and - passive) shall- be- generally-d development- and- ehal4 -bc easily assessible- from -all- dwelling- units-: sit All - developments- located- within -the Public Tr-an pertatien- Benefit-Area -reg More - p - c - - e - - : ading and --ehel Wanning- Director in consultation -wit rit Refer to Seetian 44.892299 - for- reguireme pe,4atien- P-lan- Section 2. Section 4.15.1 of the Spokane Valley Uniform Development Code is hereby amended to add the dimensional standards for residential PUDs as shown on Attachment "A" made a part hereof for all purposes. Section 3. Chapter 14.704 Planned Unit Development Overlay Zone of the Interim Zoning Code is hereby repealed. Section 4. Severability. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Section 5. Effective Date. This Ordinance shall be in full force five (5) days after publication of this ordinance or a summary thereof in the official newspaper of the City as provided by law. ATTEST: PASSED by the City Council this day of November, 2004. City Clerk, Christine Bainbridge Approved as to Form: Deputy City Attorney, Cary P. Driskell Date of Publication: Effective Date: Mayor, Michael DeVleming 12 ( 0 ( 1•) ional Standards "Clear view" Triangle required Measured from property line outside border easement, if any Zero setbacks along rear and/or one side are allowed provided that a 5'-0" construction and maintenance easement(s) is recorded with the Spokane County Auditor prior to issuance of a building permit. Minimum rear yard setbacks on zero lot line configuration shall not be less than fifty (50) feet or the sum of the rear yards required by the underlying zone, whichever is greater. Minimum side yard setbacks between dwelling units and adjacent lots shall not be less than 10 feet on the side opposite the zero in a zero lot line configuration 1s1 Institutional and Office uses have the same setback as residential uses in zones where permitted. Attached garages loading from the side may have the same setback as a principal structure. Pe milted accesso structur _ shal aintain a five foot 5'- side and rear and s- back ATTACHMENT "A" 13 "...... ,.. _.. UR 7 (3" UR -3 -5 UR 12 ( UR 22 (3)(1) Residential PUDs °I° wnwium Lot Area /Dwelling Unit Lot Fronta•e Lot De•th Front Yard Setback (5) Single Famil 10 000 80 -_- 15 Duplex 20 000 80 15 Single Famil 6,000 65 15 °) Du«lex 11 000 90 15 Multi- famil 15 000 100 15 Single Famil 4,200 50 80 15 Du•lex 5,000 50 80 15 Mufti- famil 6,000 60 100 1 5 42) Single Famil 1 600 20 80 15 Du•lex 3 200 40 BO 15° Multi - famit 6 000 60 100 15 1,600 30 50 15 • Garage Setback turn 26 rn 20 °) 20 nr 20 m 20 m 200 20 24 m 26 kz1 20 20 20 200 20 is)• {1 Rear Yard Setback 1410 20 20 20 20 15 20 20 15 20 20 15 15 Side Yard Setback l4I(5m Side Yard Setback flankin. Street (3) 15 15rn 15m 15 15 ----�� Open Space 15 15 15 15 15m 15 -�- _10 10 % ass e area wnwixun li Densi DU /Acre 4.35 4.35 7 7 7 12 12 12 22 22 22 Zone+ Bonus Lot Covera . e 50.0% 50.0% 55.0% 55.0% 55.0% 60.0% 60.0% 60.0% 65.0% 65.0% 65.0% 60.0% Building Height (in feet 35 35 35 35 35 40 40 40 50 50 50 Zone Building Height (in stories 2' 2% 2'% 2% 3 3 3 4 4 4 Zone ( 0 ( 1•) ional Standards "Clear view" Triangle required Measured from property line outside border easement, if any Zero setbacks along rear and/or one side are allowed provided that a 5'-0" construction and maintenance easement(s) is recorded with the Spokane County Auditor prior to issuance of a building permit. Minimum rear yard setbacks on zero lot line configuration shall not be less than fifty (50) feet or the sum of the rear yards required by the underlying zone, whichever is greater. Minimum side yard setbacks between dwelling units and adjacent lots shall not be less than 10 feet on the side opposite the zero in a zero lot line configuration 1s1 Institutional and Office uses have the same setback as residential uses in zones where permitted. Attached garages loading from the side may have the same setback as a principal structure. Pe milted accesso structur _ shal aintain a five foot 5'- side and rear and s- back ATTACHMENT "A" 13 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 9 November 2004 City Manager Sign -off: Item: Check all that apply: • ❑ consent ❑ old business ei new business ❑ public hearing . ❑ information ❑ admin. report ® pending legislation AGENDA ITEM TITLE : First Reading: Proposed Ordinance Amending Spokane Valley Building Code GOVERNING LEGISLATION: Spokane Valley Ordinance 04 -010 Spokane Valley Municipal Code Title 10 Chapter 10.15 Buildings and Construction WAC 51 -50 -004 Conflicts with Washington State Ventilation and Indoor Air Quality Code RCW 19.27 State Building Code PREVIOUS COUNCIL ACTION TAKEN: On 12 October, staff provided an administrative report on proposed amendments to the City's building code. BACKGROUND: 1. Building Code: City Council approved Ordinance 04 -010 after a public hearing with the City of Spokane Valley Planning Commission and two readings. Washington requires amendments to the residential code to be reviewed by the State Building Code Council (SBCC) after passage of the local Building Code Ordinance. In September we received notification that SBCC voted to disapprove our local amendment to the IRC Section 310.1.5, the section that requires rescue windows meet current dimensional standards if windows are changed out in dwellings. SBCC states that this condition could not be addressed locally as it wasn't a unique local condition that was being addressed and that this requirement could pose structural difficulties in some older homes. In addition SBCC determined that IRC Appendix F, Radon, was in conflict with Washington State Ventilation and Indoor Air Quality Code and was disapproved. No other details were provided. 2. Fire Code: City Council approved the adoption of Appendix C from the International Fire Code that details the spacing of Fire Hydrants. This detail adopted in Ordinance 04 -010 is the same detail that Council had previously adopted in Ordinance 03 -041 except that in that code the Appendix Chapter is "III -B" Spokane Valley Fire District #1 (SVFD) has requested that we amend the spacing requirement of 500 feet between hydrants to increase that space to 600 feet between hydrants for 1 & 2 family residential construction. SVFD has stated that their first response equipment is outfitted to accommodate hydrant spacing of 600 feet and that increasing the spacing will not impact the safety of the community. The proposed amendments delete two sections in Article III, as identified by SBCC, and revise the hydrant spacing requirements in Appendix C of the Fire Code. OPTIONS: The Spokane Valley Building Code is required to be amended to comply with the disapproval of amendments as itemized by SBCC. Council directed that the Spokane Valley Building Code Section 3.03.4 be amended to establish a greater hydrant spacing than is currently provided. RECOMMENDED ACTION OR MOTION: Move to approve the first reading of an ordinance amending the Spokane Valley Building Code, and forward it to a second reading. BUDGET /FINANCIAL IMPACTS: • Deleting the requirement of retrofitting egress windows into older structures will decrease costs associated with changing out specific windows. • Proper hydrant spacing and adequate fire flow provide the basis for fire suppression and may be reflected in lower fire insurance costs for our citizens. STAFF CONTACT: Tom Scholtens, Spokane Valley Building Official ATTACHMENTS : 1. Draft Ordinance to amend the Spokane Valley Building Code (NOTE: The draft ordinance is in strikeout /underline format, with additions underlined and deletions struck - through) 2. Copy of 2003 IFC 508.5 Fire hydrant systems. DRAFT Attachment 41. CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 04 -047 AI ORDINANCE OF TIir CITY OF SPOKANE VALLEY, WASHINGTON, AMENDING CHAPTER 10.15 ARTICLE I OF THE SPOKANE VALLEY MUNICIPAL CODE, RELATING TO THE• BUILDING CODE. WHEREAS, Washington statutes require all jurisdictions in the state to adopt by reference and enforce the same building code throughout Washington; and WHEREAS, Washington requires that amendments to the Residential Code or Building Code that affect structures containing up to four living units be submitted to the State Building Code Council for review and approval after local jurisdiction action; and WHEREAS, the State Building Code Council has disapproved two amendments; and WHEREAS, the Spokane Valley .Fire District 1 has requested a modification in Fire Hydrant Spacing Requirements. NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, do ordain as follows: SECTION 1. Chapter 10.15, Article 1 of the Spokane Valley Municipal Code is hereby amended to read as follows: Chapter 10.15 BUILDINGS AND CONSTRUCTION Article I. BUILDING CODE 10.15.010 Adoption of Referenced Codes. The City of' Spokane Valley hereby adopts the following codes, as amended by the Washington State Building Code Council pursuant to RCW 19.27.074 for the purpose of establishing rules and regulations for the construction, alteration, removal, demolition, equipment, use and occupancy, location and maintenance of buildings and structures, including permits and penalties: A.1. The 2003 International Building Code (IBC) published by the International Code Council, Inc. The following appendices are specifically adopted: Appendix H, Signs. Appendix I, Patio Covers. 2. The 2003 International Residential Code. (IRC) published by the International Code Council, Inc. (IRC) The following appendices are specifically adopted: Appendix A (I.FGC), Sizing and Capacities of Gas Piping. Appendix 13 (IFGC), Sizing of Venting Systems Serving Appliances Equipped with Draft Hoods, Category 1 Appliances and Appliances Listed for Use and Type B Vents. Ordinance 04 -047 Amending SVfMC 10.15 Page 1 of 7 DRAFT Appendix C, Exit Terminals of Mechanical Draft and Direct -Vent Venting. Systems. Appendix r. R C jntfol -Methe s, Appendix 11, Patio Covers. Appendix J, Existing Buildings and Structures. 13. The 2003 International Mechanical Code (IMC) published by the International Code Council, Inc., except that the standards for liquefied petroleum gas installations shall be NFPA 58 (Storage and Handling of Liquefied Petroleum Gases) and ANSI Z223.I /NFPA 54 (National Fuel Gas Code). C. The 2003 International Fire Code (IFC), published by the International Code Council, Inc., including those standards of the National Fire Protection Association specifically referenced in the International Fire Code; provided, that notwithstanding any wording in this code, participants in religious ceremonies shall not be precluded from carrying handheld candles. The following Appendices are specifically adopted: Appendix 8, Fire Flow for Buildings. Appendix C, Fire Hydrant Locations and Distribution. Appendix D. Fire Apparatus Access Roads. Appendix E, Hazard Categories. Appendix F, Hazard Ranking. Appendix G, Cryogenic Fluids - Weight and Volume Equivalents. D. Except as provided in RCW 19.27.170, the 2003 Uniform Plumbing Code (UPC) and Uniform Plumbing Code Standards, published by the International Association of .Plumbing and Mechanical Officials: provided, that any provisions of such code affecting sewers or fuel gas piping are not adopted; and The rules adopted by the Washington State Building Code Council establishing standards for making buildings and facilities accessible to and usable by the physically disabled or elderly persons as provided in RCW 70.92.100 through 70.92.160. In case of conflict among the codes enumerated in subsections A, B, C, and D of this section, the first -named code shall govern over those following. E. The 2003 International Fuel Gas Code (IFC) as published by the International Code Council, Inc. F. The 2001, Second Edition, Washington State Energy Code Chapter 51 -11 WAC. G. The 1997 Edition of the Uniform Code for the Abatement of Dangerous Buildings published by the International Conference of Building Officials, Whittier California. H. The 2003 International Property Maintenance Code as published by the International Code Council, Inc. 10.15.020 General Requirements for all Referenced Codes: A. Conflict. between Codes. Whenever there is a conflict between a referenced code in SVMC 10.15.010 and the general requirements contained in this section, the general requirements shall apply. 13. Reserved. C. Design Requirements: Ordinance 04 -0417 Amending S V,N1C 10.15 Page 2 of 7 Ground Snow Load • w ind Speed (Gust) Seismic Design Category weathering Frost line depth Termites Decay Winter Design Temp Ice Shield Underlay Flood 11i'nrds Air Freeze Index Mean Annual Temp 39 Ih51fl' 85 mph C Severe 24' Slight to Moderate None to slight IU° Yes 2003 1992 FIRM 1232 47.2° DRAFT 6 Minimum roof snow load to be 30 Ibsift in the City of Spokane Valley. D. Professional Preparation of Plans. The City of Spokane Valley shall require a Washington licensed design professional, licensed under the provisions of Chapters 18.08 or 18.43 RCW or Chapter 308 -12 WAC to prepare or oversee the preparation of plans for any building or structure containing five or more residential dwelling units or doing design work including preparing construction contract documents and administering the contract for construction, erection, enlargement, alteration, or repairs of or to a building of any occupancy over 4,000 square feet of construction. E. Construction Plans. All submitted construction documents must be of sufficient detail to show the entire project with emphasis on the following: 1. Structural integrity; 2. Life safety; 3. Architectural barriers (ADA handicap compliance); 4. Compliance with all codes having jurisdiction; 5. Scope of work; 6. Special Inspection requirements and protocols; 7. Deferred Submittal Schedule. In general, the amount of detail required will vary, depending on the nature and complexity of the project. F. Permits. 1. Ownership. The ownership of a Spokane Valley development permit inures to the property owner. The permit applicant is, by definition, an agent of the property owner if the property owner. 2. Expiration of Permits. All permits shall expire by limitation and be declared void if a. Work is not started within 180 days of obtaining a permit, or b. Work is abandoned for 180 days or more.after beginning work, or c. After two years from the date of permit issuance regardless of whether the work is finished. if a permit is expired for time, a new permit may be obtained for one -half the permit fee for the value of the remainder of the work to finish the original permit. G. Referenced Codes. All referenced codes are available for review at the City of Spokane Valley permit center. H. Fees. All Spokane Valley Permit fees shall be established by a City of Spokane Valley Resolution and may be found in Appendix 13, Schedule C• of the Spokane Valley Uniform Development Code. 1. - Investigation Fees - Work without a Permit. a. Investigation. Whenever any work for which a permit is required by this article has been commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for such work. b. Fee. An investigation fee, in addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The investigation fee shall be equal to the amount of the permit fee required by this article. The minimum investigation fee shall be the same as the minimum fee set forth in Schedule C.* This fee is an additional, punitive fee and shall not apply to any Spokane Valley grading or Ordinance 04 -047 Amending SVMC 10.15 Page 3 of 7 DRAFT building permit fee that may subsequently be issued. Payment of the investigative fee does not vest the illegal work with any legitimacy, nor does it establish any right to a Spokane Valley permit for continued development of that project. Hale work done remains illegal for 90 days after service of the stop work order, it shall be considered hazardous. c. The payment of such investigation fee shall not exempt any person from compliance with all other provisions of this article nor from any penalty prescribed by law. 2. Fee Refunds. The building official may authorize the refunding of: a. One hundred percent of any fee erroneously paid or collected; b. Up to 80% of the permit fee paid when no work has been done under a permit issued in accordance with this article; c. Up to 80% of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done. The building official shall not authorize refunding of any fee paid except on written application fled by the original permitee not later than 180 days after the date of fee payment. 1. Appeals. All appeals of any building official decision, order or determination relative to the application and interpretation of this article shall be made in conformance with SViMIC 10.30.560(B). J. Floodplain Development. All development within a designated floodplain located in the City of Spokane Valley jurisdiction shall comply with Section 5.01 of the Spokane Valley Uniform Development Code and the construction specifications detailed in the 2003 IRC, Section R323 Flood - Resistant Construction,as amended. K. Reserved. * Code revier's note: A copy of the piaster fee schedule is kept on file in the office of the Spokane Valley City Clerk. 10.15.030 Amendments to the referenced codes. A. 2003 International Building Code. 1. Amend Section 105.2 Work exempt from permit. Building: 1. by substituting "200" for "150" in the square feet of floor area exempt from building permits. B. 2003 International Residential Code. 1. Add Section R 310.1.5 Replacement -o,f-E rer 44-eme sue -open ings- tire- Fepltteed -or enewed except -fer• gla a ,l o„:- senst *uetien- I_a: Amend 8323.1.3 Establishing the design flood elevation. Add a first sentence: The design flood elevation is equal to base flood elevation plus one foot. 22- Amend 8323.2.1 Elevation Requirements by rewriting fit. to read: Buildings and structures shall have the lowest floors elevated to or above base flood elevation plus one foot. Also by rewriting 43 to read: Basement floors that are below grade on all sides shall be elevated to or above base flood elevation plus one foot. 3.4- Add a second paragraph to R323.3.6 Construction documents to read: Ordinance 04-047 Amending SViVIC 10.15 Page 4 of 7 DRAFT The documents shall include a verification of foundation elevation prior to footing inspection approval and a verification of lowest floor elevation to be base flood elevation plus one foot prior to framing inspection approval. 4. 5- Delete Part IV — Energy Conservation in itS entirety. 5.6 Delete Part VII - Plumbing in its entirety. References to chapters in Part VII shall be made instead to the appropriate sections of the 2003 - Uniform Plumbing Code published by IAPMO. 6..7- Delete Part `r1I1— Electrical in its entirety. R.eferenccs to chapters in Part VIII shall be made instead to the National Electrical Code published by the NFPA and enforced in Spokane Valley by the state of Washington Department of Labor and Industries. C. 2003 International Mechanical Code - Reserved. D. International Fire Code Amend Appendix C: add ail two exceptions after the last paragraph in C105.1 Hydrant spacing. Exception 1: The fire chief is authorized to reduce the number of required hydrants by up to 50% when the building is equipped with an approved, automatic fire sprinkler system and the fire chief has approved the location of those required fire hydrants. Exception 2: The required average maximum spacing of 600 ft. nominally between hydrants for one and two - family buildine_areas. on fire department access roads of public rights -of -way shall be required. Iyydrants are to he located within border easements at street intersections or on abutting property lines when an intersection is not present. .Buildings proposed to be located on dead -end or cul -de -sac sterets shall comply with 2003 IFC50S.5 Fire Hydrant Systems. Amend Appendix D: DI 01.1 Scope. Fire apparatus access roads shall be in accordance with this appendix and all other applicable requirements of the International Fire Code including the provisions of Section 503 Fire Apparatus Access Roads. E. 2003 Uniform Plumbing Code — Reserved F. 2003 International Fuel Gas Code - Reserved. G. 2001 Second Edition Washington State Energy Code - Reserved. H. 1997 Uniform Code for the Abatement of Dangerous Buildings. Section 302 Dangerous Buildings. Add additional definitions of a dangerous building: 19. Drug Properties and Structures. It is hereby declared that any building, structure and /or associated property, identified by the City of Spokane Valley chief of police, wherein or upon which the manufacture, distribution, production or storage of illegal drugs or the precursors to create illegal drugs has taken place in a manner which could endanger the public, such building, structure and /or associated property is not only a dangerous property as defined by the City of Spokane Valley but is also a classification of property calling for the special procedures set forth in this section. The building official is authorized to abate such dangerous buildings, structures, and /or associated properties in accordance Ordinance 04-047 Amending SVMC 10.15 Page 5 of 7 DRAFT with the dangerous building procedures set forth in this code and Washington statute, RCW 64.44.010, with the following modifications: 19.1 Due to public safety hazard in drug production facilities, the utilities shall be disconnected; 19.2 Building(s) and structures shall be inspected to determine compliance with all city ordinances and codes; 19.3 Building(s) and any entry gates to the property shall be secured against entry in the manner set forth in this code; 19.4 No reconnection of utilities or occupancy of the building(s), structures or property shall be allowed until all violations have been successfully addressed, all dangerous conditions abated and a notice of release for re- occupancy has been received from the health department and sheriffs office; and 19.5 If dangerous conditions cannot be abated, occupancy shall be prohibited. Resolution of said property shall be in conformance with RCW 35.80A.010, Condemnation of blighted property. 20. Blighted Property. In conformance with RCW 35.80A.010, the City of Spokane Valley may acquire by condemnation, in accordance with the notice requirements and other procedures for condemnation provided in RCW Title 8, any property, dwelling, building, or structure which constitutes a blight on the surrounding neighborhood. A "blight on the surrounding neighborhood" is any property, dwelling, building, or structure that meets any two of the following factors: 20.1 If a dwelling, building, or structure exists on the property, the dwelling, building, or structure has not been lawfully occupied for a period of one year or more; 20.2 The property, dwelling, building, or structure constitutes a threat to the public health, safety, or welfare as determined by the executive authority of the City of Spokane Valley or the designee of the executive authority; or 20.3 The property, dwelling, building, or structure is or has been associated with illegal drug activity during the previous 12 months. Prior to such condemnation, the City of Spokane Valley City Council shall adopt a resolution declaring that the acquisition of the real property described therein is necessary to eliminate neighborhood blight. Condemnation of property, dwellings, buildings, and structures for the purposes described in this chapter is declared to be for a public use. 1. 2003 international Property Maintenance Code - Reserved. Ordinance 04 -047 Amending SVMC 10.15 Page 6 of 7 DRAFT SECTION 2. Severability. If any section, sentence, clause or phrase of this ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. SECTION 3. Effective date. This ordinance shall be in full force and effect five (5) days after publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by law. ATTEST: Approved by the City Council this Christine Bainbridge, City Clerk Approved as to form: Cary P. Driskell, Deputy City Attorney Date of publication: Effective date: Michael DeVleming, Mayor day of , 2004. Ordinance 04 -047 Amending SVMC 10.15 Page 7 of 7 Attachment #2 2003 International Fire Code (IFC) 508.5 Fire hydrant systems. Fire hydrant systems shall comply with Section's 508.5.1 through 508.5.6. 508.5.1 Where Required. Where a portion of the facility or building hereafter constructed or moved into or within the jurisdiction is more than 400 feet (122 m ) from a hydrant on a fire apparatus access road, as measured by an approved route around the exterior of the facility or building, on -site fire hydrants shall be provided where required by the fire code official. Exceptions: 1. For group R -3 and Group U occupancies (1&2 family dwellings and garages), the distance requirement shall 600 feet. 2. For buildings equipped throughout with an approved automatic sprinkler system installed in accordance with Section 903.3.1.1. or 903.3.1.2. the distance requirement shall be 600 feet. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: November 9, 2004 City Manager Sign -off: Item: Check all that apply: ❑ consent old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Motion Consideration: Selecting a Library Services Provider, and Authorizing City Manager to Negotiate Agreement GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: On May 25, 2004 Council selected library services as one of the two areas for the City's managed competition pilot project. An update on the project took place on September 7, 2004. Staff presented a summary of the two submitted proposals on November 2, 2004. BACKGROUND: Spokane Valley currently has a contract with the Spokane County Library District (SCLD) for library services, which expires at the end of 2004. The City issued a request for proposals (RFP) and received two responses: one from SCLD and one from the Library Systems & Services, LLC (LSSI). At the November 2 meeting, the Ad Hoc Library Committee recommended awarding a five -year contract to SCLD, with a consideration of annexation in a couple of years. Staff recommended awarding a two -year agreement to SCLD, with the option of up to three one -year extensions. Council directed staff to return with the item on November 9 for motion consideration. Staff is seeking Council direction on the following issues: • Confirmation that SCLD is the provider of choice • Preferred term of the agreement • Policy direction on cost, including total dollar amount and methodology; provisions such as asset ownership; and other considerations identified by Council. OPTIONS: Accept the ad hoc library committee or the staff recommendation, or provide additional direction RECOMMENDED ACTION OR MOTION: Move to select SCLD as the Spokane Valley library service provider, and authorize the City Manager to negotiate an agreement. BUDGET/FINANCIAL IMPACTS: None for 2004. The SCLD proposal uses taxable valuation as its method of calculating cost. The District estimates this cost to be $2.27 million for 2005. The 2005 proposed budget includes $2.1 million, a difference of $170,000. Once negotiations are complete, any necessary budget adjustment would come forward for Council consideration in the first quarter of 2005. The 2004 library cost, which was based upon a usage model, came to $2.02 million. STAFF CONTACT: Nina Regor, Deputy City Manager ATTACHMENTS None CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 11 -09 -04 City Manager Sign -off: item: Check all that apply:❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Discussion: Mayoral Appointments to Boards and Committees GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: OPTIONS: RECOMMENDED ACTION OR MOTION: Mayor DeVleming may propose making committee appointments: • Convention Center & Visitor's Bureau — Dick Denenny (Diana Wilhite alternate): term expires 12 -31 -04 • Economic Development Council — Diana Wilhite (Steve Taylor alternate): tern expires 12 -31 -04 • Growth Management Steering Committee — Steve Taylor, Rich Munson (remainder Council alternates): Term expires: 12 -31 -04 • INTEC — Steve Taylor, ex- officio — term expired 8 -12 -04 • Lodging Tax Advisory Committee — Mike Flanigan (Diana Wilhite alternate): term expires 12- 31 -04 • Mirabeau Point Board — Dick Denenny (Rich Munson alternate): term expires 12 -31 -04 • Planning Commission — Mike DeVleming, council liaison — term expires 12 -31 -04 • Spokane Transit Authority Board of Directors — Dick Denenny and Rich Munson — tens expire 12 -31 -04 (Gary Schimmels alternate) BUDGET/FINANCIAL IMPACTS: STAFF CONTACT: ATTACHMENTS CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 11 -09 -04 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Presentation: Six -Year Financial Forecast GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: City Manager Mercier will give an updated presentation of the six -year financial forecast OPTIONS: RECOMMENDED ACTION OR MOTION: BUDGET /FINANCIAL IMPACTS: STAFF CONTACT: Dave Mercier ATTACHMENTS Six -Year Financial Forecast A Work in Progress November, 2004 CITY OF SPOKANE VALLEY Draft Vision Statement "A community of opportunity where individuals and families can grow and play and businesses will flourish and prosper." 2 Spokane Valley Statistics • 83,950 in population • 43,305 jobs (EWU Economic Analysis -2000) • 38.5 sq miles service area • 428 miles of city streets • 187 acres in parks and open space • 1361 permits (January— June '04) • 39,762 police calls for service (Jan-June '04) • 7,221 court cases (January— June `04) • 2 largest city in Spokane County • 8th largest city in Washington 10/25/04 3 General Governmental Revenue 8/23/04 Recreation Program Fees 0.4% Fines and Forfeitures 3.9% —� Service Revenues 4.4% State Shared Revenues 3.4% Franchise Fees 2.5% City of Spokane Valley 2004 General Fund Revenue Sources $25,804,125 Other Revenue 0.6% Gambling Tax 2.7% Property Tax 35.9% �� Sales Tax 46.2% 4 Washington City Comparisons 10/27/04 Prop. Ta Sales Ta Utility Ta B & 0 Ta Total GF % of % of % of % of City Revenue GF Revenue GF Revenue GF Revenue GF Revenue Federal Way $ 29,752,78 26.66% 43.84% 1.82% 0.00% Kent* 60,472,510 36.87% 24.90% 17.25% 0.00% Everett ** 81,132,19 26.60% 24.10% 12.56% 13.05% Lakewood 21,944,770 22.83% . 29.71% 13.53% 0.00% Yakima * ** 44,334,20 25.98% 25.98% 19.88% 0.00% Spokan 111,736,20 23.50% 21.90% 29.20% 0.00% Spokane Valley -200 28,381,79 35.43% 45.80% 0.00% 0.00% * City of Federal Way receives all utility tax dollars into a special revenue fund for utility tax and then distributes funds as needed. The General Fund only absorbs approximately $500,000 of this revenue which amounts to $8,003,020 ** City of Kent Street Fund also receives $2,020,340 of utility tax revenue which amounts to 49.10% of that Fund's revenues. 25% of sales tax revenue is dedicated to Capital Improvements - this amounts to $4,937,828 - which does not flow through the General Fund. * ** City of Everett budgets all street maintenance as part of a fund called general government. This fund includes both street maintenance and General Fund activities. $10,343,164 of property tax revenues are used for either capital projects or debt service. Criminal justice sales tax is segregated from General Government and received in a different fund, which amounts to $1,366,880. * * ** City of Yakima budgets a portion of sales tax dollars in a Law and Justice Capital Fund. Also, the street maintenance operations are budgeted with General Fund activities in a fund called General Government. 11/04/04 5 7/15/04 Per Capita General Fund Revenue Seattle Tacoma Bellingham Pasco Spokane Richland Kennewick Yakima Federal Way Spokane Valley 0 200 400 600 800 1000 6 Per Capita General Fund Revenue City Property Tax Rates Per $1000 of Assessed Valuation Spokane Fairfield Latah Airway Heights Rockford Millwood Spangle Cheney Medical Lake Waverly Spokane Valley Liberty Lake Deer Park 7/15/04 I r I I 0.560804 I I I I I I I I I 2.2 2.101443 Ini 2.050335 3.02236 2.962460 2.947654 899314 2.7 I 758 2.64 95 2.610 24 2.585 :0 7437 3.422243 5 Tax Year 2004 0.50000 1.000000 1.500000 2.00000 2.50000 3.00000 3.50000 4.00000 7 0 0 0 0 0 0 10/25/04 Sales Tax Distribution O State - 6.5% ■ City -0.85% ■ Transit - 0.6% 0 County - 0.15% ® PFD -0.1% ■ Criminal Justice - 0.1% • Juvenile Detention - 0.1% ci Total - 8.4% * From 1.0% collected by city 8 Business Category # of Businesses Taxable Sales Unknown 40 $ 3,996,088.12 0.28% Other 126 $ 7,104,524.39 0.50% Contracting 971 $ 89,869,651.97 6.31% Manufacturing 196 $ 60,076,697.28 4.22% Transportation /Communication /Utilities 95 $ 7,136,171.71 0.50% Wholesaling 414 $ 72,834,955.80 5.12% Retail Trade 1162 $ 1,072,374,649.40 75.33% Finance /Insurance /Real Estate 59 $ 8,263,542.57 0.58% Services 810 $ 101,419,943.26 7.12% Government 11 $ 403,793.21 0.03% $ 1,423,480,017.71 8/9/04 City of Spokane Valley Gross Sales of Products by Category 4/1/2003 to 3/31/2004 9 City of Spokane Valley Sales Tax Receipts by Business Category - 4/1 /2003 to 3/31/2004 Business Category # of Businesses Sales Tax Unknown 40 $ 33,627 0.28% Retail Auto /Gas 132 $ 2,884,739 24.05% Contracting 961 $ 756,573 6.31% Agriculture & Mining 125 $ 59,785 0.50% Retail 504 $ 3,021,120 25.19% Manufacturing 191 $ 505,680 4.22% Transportation /Communications /Utilities 96 $ 60,050 0.50% Wholesale 409 $ 612,926 5.11% Government 11 $ 18,641 0.16% Retail Gen Merchandise 16 $ 2,117,508 17.65% Finance /Insurance /Real Estate 57 $ 69,555 0.58% Other Misc Retail 488 $ 1,001,592 8.35% Services 795 $ 853,452 7.11% Total 3825 $ 11,995,248 100.00% 8/20/04 10 2004 $1 Average Property Tax Distribution The City receives $ 26.27 a month in property tax from a $150,000 home. The County receives $18.88 /month from a $150,000 home. 8/23/04 School Excess $ .37 Fire Excess $.11 Library Excess $.01 City $ .13 State $ .19 Fire Dist - $.09 11 9/22/04 How much does a $1.60 per thousand raise? • $1.60 x 1,000.00 of valuation = $1.60 • $1.60 x 10,000.00 of valuation = $16.00 • $1.60 x 100,000.00 of valuation = $160.00 • $1.60 x 1,000,000.00 of valuation = $1,600.00 • $1.60 x 10,000,000.00 of valuation = $16,000.00 • $1.60 x 100,000,000.00 of valuation = $160,000.00 12 OTHER CONSUMER CHOICES Monthly Costs August 2004 *Basic Telephone Service $20.00lmo *Internet Service Provider $15.00 /mo *Monthly charges are after installation 13 Other Consumer Choices August 2004 Basic Cable TV Premium Channels Sewer Bill Garbage Removal Basic Telephone Service -1 line Internet Service Provider Cell Phone TOTAL *after installation *$13.50/mo *$29.99/mo *$24.50/mo $14.39/mo $20.00/mo *$15.00 /mo *$30.00 /mo $147.38/mo 9/22/04 14 * Expenditures: Debt Service: City Hall Rent, Insurance Payment, Spokane County Air Pollution Authority, Consulting & Auditing, Election Costs Parks & Recreation_ 6.3% Library 8.0% Planning & Community Development 6.1% General Govemment 13.5% Public Works 2.5% Operations & Administrative Services 3.6% Legislative Branch 0.8% Legislative & Executive Services 1.7% City of Spokane Valley 2004 General Fund Expenditures Public Safety 57.5% City Services 9/22/04 15 8/23/04 Public Safety Analysis % of 2004 Property Tax Amended Revenues: Service Description Budget $9,265,809 Law Enforcement Services Sheriff Contract $11,690,000 126.16% Emergency Mgmt 64,590 0.70% Law Enf. Bldg Maint. 28,500 0.31% Vehicle Decals 10,000 0.11% Clothing & Uniforms 7,000 0.08% Purchase of Law Enf. Bldg 28,500 0.31% Vehicle Usage Costs 500 0.01% Equipment Replacement Charge 5,500 0.06% Subtotal 11,834,590 127.72% Court Services District Court 910,000 9.82% Jury Management 5,000 0.05% Public Defender 294,400 3.18% Prosecutor 369,000 3.98% Crime Victim Compensation 10,000 0.11% Pretrial Services 24,000 0.26% Probation Services 30,000 0.32% Subtotal 1,642,400 17.73% Jail Services Jail Contract 210,000 2.27% Work Release (Geiger) 48,000 0.52% Subtotal 258,000 2.78% Other Animal Control 369,000 3.98% Fines & Forfeitures Remittance 590,000 6.37% Subtotal 959,000 10.35% PUBLIC SAFETY TOTAL $14,693,990 158.58% Multi -Year Financial Plan - General Fund Six Year Forecast: Problem Statement #1 General Fund Revenues: Sales Tax Property Tax Gambling Tax Leasehold Excise Tax Franchise Fees State Shared Revenues Planning & Building Fees Fines & Forfeitures Recreation Program Fees Interfund Transfers Investment Interest Total General Fund General Fund Expenditures: Legislative Executive & Legislative Public Safety Deputy City Manager Finance Legal Human Resources Public Works Planning Building Library Parks Admin Recreation Aquatics Senior Center CenterPlace General Government Total Goneral Fund 9/22/04 2005 Estimate S 12,400,000 $ 10,055,316 800,000 5,000 620,000 1,035,340 1,293,000 1,200,000 90,000 80,000 36,000 27,614,656 2006 Estim ate 12,750,000 10.255,869 800,000 5,000 626,200 1,061,224 1,293,000 1,200,000 90,000 42,500 50,000 28,173,793 2007 Estimate $ 12,877,500 10.458,428 800,000 5,000 632,462 1,087,754 1,293,000 1,200,000 90,000 42,500 50,500 28,537,144 2008 Estimate $ 13,150,000 10,663,012 800,000 5,000 638,787 1,114,948 1,293,000 1,200,000 90,000 42,500 51,005 29,048,252 2009 Estimate $ 13,281,500 $ 10,869,642 800,000 5,000 645,174 1,142,822 1,293,000 1,200,000 90,000 42,500 51,515 2010 Estim ate 13,414,315 11,078,339 800,000 5,000 651,626 1,171,392 1,300,000 1.200,000 90,000 42,500 52,030 29,421,153 $ 29,805,202 290,305 313,529 338,612 365,701 394,957 426,553 460,369 497.199 536,974 579,932 626,327 676,433 15,652,488 16,904,687 18,257,062 19,71 7,627 21 ,295,037 22,998,640 268,942 290,457 313,694 338,789 365,893 395,164 440,269 475,491 513,530 554,612 598,981 646,900 207,300 223,884 241,795 261,138 282,029 304,592 1 21 ,462 131.179 141 ,673 153,007 165,248 178,468 756,202 816,698 882,034 952,597 1.028,804 1,111,109 954,681 1 ,031 ,055 1,113,540 1 ,202,623 1.298,833 1.402,740 721,760 779,501 841,861 909,210 981,947 1,060,502 2,100,000 2,268,000 2,449,440 2,645,395 2,857,027 3,085,589 1,070,262 1,155,883 1,248,354 1,348,222 1,456,080 1.572,566 158,215 170,872 184,542 199,305 215,250 232,470 255,818 276,283 298,386 322,257 348,038 375,881 126,592 1 36,71 9 147,657 159,469 172,227 186,005 321,299 380,000 410,400 443,232 478,691 516,986 3,708,692 3,450,000 2,700,000 2,700,000 2,916,000 3.149,280 $ 27,614,656 $ 29,301,438 $ 30,619,553 $ 32,853,118 $ 35,481,367 $ 38,319,876 17 Genered Fund Revenues/Expen August 2004: Probllem State 2004 2005 2006 —a—Expenditures —o-- Revenues 2007 dftures nt 2008 18 Street Fund: Six year Forecast Problem Statement #2 Street Fund Salaries, Wages & Benefits Supplies Spokane County Engineering Contrail VUSDQT Street N3i ntenanoe - SR 290 & SR 27 Spokane County Street Maintenance Contrail Minor Road Nai ntenanoe Street Lighting/Signal Rye' Consulting Services SRTC Interfund Transfers - Replacement Total Expenditures Revenue Surplus/Deficit 6-Year Ran - Service Level Nstintained 2005 $198,354 $13,280 $400,000 $350,000 $2185,364 $300,000 $300,000 $36,000 $18,645 $3,801,643 $1,226,342 2006 $214,222 $14,342 $432000 $378,000 $2,360,193 $324,000 $324,000 so $38,880 $20,137 $4,105,774 $1,200,000 ($2,905,774) 2007 $231,360 $15,489 $466,560 $408,240 $2,549,008 $349,920 $349,920 so $41,990 $21,748 $4,434,235 $1,200,000 _ ($3,234,235) 2008 $249,869 $16,728 $503,885 $440,899 $2,752,929 $377,914 $377,914 so $45,349 $23,488 $4,788,975 $1,200,000 ($3588,975) 2009 $269,859 $18,066 $544,196 $476,171 $2973,163 $408,147 $408,147 so $48,977 $25,367 $5,172,093 $1,200,000 ($3,972093) 2010 $291,448 $19,511 $587,732 $514,265 $3,211,016 $440,799 $440,799 so $52,896 $27,396 $5,585,861 $1,200,000 ($4,385,861) 9/22/04 Stre';t Fund: ; robIem Statement #2 $5,000,000 . $4,000,000 $6,500,000 86,000,000 $5,500,000 •- $4,500,000 y--? $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 his s T Street Fund Operatin Not Capital Revenues /Expenditures 2007 2004 2005 2006 Expenditures Revenues 9/22/04 20 2008 Washington City Comparison 10/27/04 City Federal Wa Kent* Everett ** Lakewood Yakima * ** Spokan Spokane Valle Street Maint Costs $ 2,809,270 2,935,802 2,050,260 1,410,750 2,957,65 12,511,51 2,939,292 Miles of Road 257 72 290 18 258.1 100 42 Maint. Cost Per Mile $ 10,931.01 4,032.70 7,069.8 7,667.12 11,459.3 12,436.90 6,867.50 11 /4/04 21 Six Year Projected Shortfall Summary Problem Statements #1, #2 and #3 affi 2007 200E3 20:9 2010 #1 General Furl $ - $(1,128,000) $(2,100,000) $ (3,805,000) $ (6,080,000) J8,515,000) 2 Stmt Fuld - (2,906,000) (3,235,000) (3,500,000) (3,875,000) (4,385,000) #t3 Capital Needs: Parks est. (150,000) (425,000) (450,000) (500,000) (500,000) (550,000) Streets (700,000) (900,000) (900,000) (900,000) (900,000) (960,000) COD'? (100,000) (100,000) (100,000) (100,000) (100,000) Tctal Capital (850,000) (1,426,000) (1,450,000) (1,500,000) (1,500,000) (1,600,000) Total $ (850,000) $(54000) $(6785000) $ (8 $(11,535,000) $(14500,000) 11 /5/04 22 Managing Diminishing Resources • • Sound Financial Policies: Maintaining stable budget during 2003/04 recession Recognized by a credit rating agency for sound management practices and received A3 bond rating Annual audit began August 2, 2004 and is expected to be completed by November 15, 2004 Continued 10/21/04 23 9/25/04 Managing Diminishing Resources continued • Efficient Business Practices: Leverage city funds with grants (received over $10 million in capital grants over the past year) 1. $8.1 Million Barker Road Bridge Replacement 2. $2.4 Million Barker Road Reconstruction 3. $146,000 24t" Ave. Sidewalk Project Maximize use of volunteers 1. Averages1300 Hours of services /year — Senior Center 2. 20,000 + hours S.C.O.P.E. Volunteer Hours Use of technology to deliver services more efficiently 24 2004 Work Force Comparison: The 15 Washington Communities with Population of .. 50,000 & Over CITY POPULATION FULL -TIME PART -TIME Seattle 571,900 9473 899 Tacoma 196,300 3447 69 Spokane 197,400 2139 35 Bellevue 117,000 1163 62 Everett 95,470 1041 16 Vancouver 150,700 1016 25 Bellingham 69,850 750 57 Kent 84,210 748 34 Yakima 79,220 630 18 Renton 54,900 571 19 Kennewick 57,900 358 9 Federal Way 83,500 286 23 Shoreline 52,730 120 10 Lakewood 58,940 99 7 Spokane Valley 82,005 47 4 AVERAGE 1459 86 6/30/04 25 Source: Association of Washington Cities Survey: 2004 6/30/04 7/16/2004 26 2004 Work Force Comparison: Continued • . The 16 Washington Communities with Population of 30,000-49;999 ._ Olympia 42,860 548 44 Redmond 46,480 548 38 Richland 41,650 540 6 Auburn 45,355 443 2 Kirkland 45,630 419 40 Lynnwood 34,500 334 24 Bremerton 38,700 332 25 Puyallup 35,490 309 18 Longview 35,290 289 63 Edmonds 39,580 260 7 Bothell 32,900 237 10 Pasco 37,580 228 13 Lacey 32,240 196 9 University Place 30,720 66 4 Sammamish 35,930 59 2 Burien 31,480 40 13 AVERAGE 303 19.9 Source: Association of Washington Cities Survey: 2004 6/30/04 7/16/2004 26 9/22/04 Budget Challenges General Fund >Rising employee benefit costs — medical insurance premiums, retirement contributors, workers compensation — substantially higher than the rate of inflation >Initiating savings by reducing services and cost 27 Budget Approach •:- Examine our business practices and consolidate services where possible. ❖ Prioritize our services and programs based on benefits derived by the community. ❖ Evaluate employee benefit costs /options (subject to bargaining). ❖ Examine revenue options. Minimize impact on the community when making necessary revenue and service adjustments. • 9/22/04 28 9/22/04 How to Participate • Public comment at regular council meetings • Public comment at budget hearings • Write /e -mail your concerns /comments 29 Six Year Projected Shortfall Summary General Fund and Street Fund Only (Nor-Capital) Operations: #1 General Fund $ #2 Street Fund 11/504 MD5 2CM 20S/7 2MB 2CD2 2010 $ (1,128,000) $ (2,100,000) $ (3,805,000) $ (6,060,000) $ (8,515,000) (2,905,000) (3,235,000) (3,590,000) (3,975,000) (4,385,000) Total $ - $ (4,033,000) $ (5,335,000) $ (7,395,000) $ (10,035,000) $ (12,900,000) 30 Options for Reducing Service Levels & Saving Money Options Eliminate Parks Maintenance (Mothball Parks) Eliminate Recreation & Aquatics Mothball CenterPlace (Build, but not open) Eliminate Library Services Eliminate Outside Agency Funding Eliminate Animal Control Contract Eliminate Code Enforcement Limit Street Maintenance to $1.2 million /year SUBTOTAL *Reduce a # of Law Enf. Officers: # x $97,000 = TOTAL COST SAVINGS Possible Savings 824,837 354,033 300,000 2,270,000 100,000 402,295 173,895 2,383,510 $ 6,808,570 * To save $800,000 by making law enforcement officer cuts, the formula is $800,000 / $97,000 = 8.25 officers. 11 /5 /04 31 Year General Fund Shortfall FTE Staff Reduction 2005 -- -- 2006 (1,128,000) (11.6) 2007 (2,100,000) (21.7) 2008 (3,805,000) (39.2) 2009 (6,060,000) (62.5) 2010 (8,515,000) (87.8) Six -Year General Fund Projected Shortfall: Impact on Law Enforcement Staffing - Service Level Outcome Problem Statement #1 11/4/04 • Assumes 3% annual growth in cost of FTE • Scenario reduces 2005 law enforcement workforce by 87% by 2010 32 Salaries, Wages & Benefits ... $19$,354 $0 $0 $0 $0 $0 Supplies ,, $13,280 $0 $0 $0 $0 $0 Spokane County Engineering Contract x....$400;000 $0 $0 $0 $0 $0 WSDOT Street Maintenance - SR 290 & SR Z' $350 000 $ 350, 000 $ 350,000 $350,000 $350,000 $350,000 Spokane County Street Maintenance Contract . $599,820 $599,820 $599,820 $599,820 $599,820 Mnor Road Maintenance $306,000 $0 $0 $0 $0 $0 Street Lighting/Signal Power $300,000 $250,000 $250,000 $250,000 $250,000 $250,000 Consulting Services $0 $0 $0 $0 $0 $0 SRTC $36;000 $0 $0 $0 $0 $0 Interfund Transfers - Replacement ., „,$18;645 Total Expenditure $3,801,643 $1,199,820 $1,199,820 $1,199,820 $1,199,820 $1,199,820 Revenue $1,223,312 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 Street Fund 6-Year Plan Based on Current Revenues 2005 2006 2007 2008 2009 2010 Street Fund: Six Year Forecast Problem Statement #2 Service Level Afforded by Current Revenues 9/22/04 $2,415 Fund Balanance $1,5151 $1,6951 $1,8751 $2,0551. $2,235 33 Admissions tax (assumes 5 %) $70,000 Business & Occupation (B &O) (assumes .1% as conservative estimate; .2% is maximum) $3,200,000 Business registration increase (assumes $50) $111,000 Cable TV franchise fee increase (1 % available) $124,000 Gambling tax increase (reversion to 5% of gross for punchcards, etc.) $150,000 Utility tax (per percent) $1,000,000 Joint venture ?? Sales tax increase for criminal justice — countywide (.2% available) $1,200,000 Local Revenue Options for Ongoing Operations — Initial Annual Estimates 34 9/22/04 Multi -Year Financial Plan - General Fund Six Year Forecast: Utility Tax 6% General Fund Revenues: Sales Tax Property Tax Gambling Tax Leasehold Excise Tax Utility Tax 6% Franchise Fees State Shared Revenues Planning & Building Fees Fines & Forfeitures Recreation Program Fees Interfund Transfers Investment Interest Total General Fund General Fund Expenditures: Legislative Executive & Legislative Public Safety Deputy City Manager Finance Legal Human Resources Public Works Planning Building Library Parks Admin Recreation Aquatics Senior Center CenterPlace General Government Transfer to Street Fund Total General Fund 2005 Estimate $ 12,400,000 S 9,800,000 800.000 5,000 6,000,000 620.000 1,035,340 1,293,000 1,200,000 90,000 80,000 36,000 33,359,340 290,305 460,369 15,652,488 268,942 440,269 207,300 121,462 756,202 954,681 721,760 2,100,000 1,070,262 158,215 255,818 126,592 321,299 5,706,865 2,542,802 5 32,155,651 $ 2006 Estimate 12,750,000 9.998,000 800,000 5,000 6,120,000 626,200 1,061,224 1,293,000 1,200,000 90,000 42,500 50,000 34,035,924 313,529 497,199 16,904,687 290,457 475,491 223,884 131,179 816,698 1,031,055 779,501 2,268,000 1,155,883 170,872 276,283 136,719 380,000 1,880,000 6,236,829 33,968,266 2007 Estimate $ 12,877,500 $ 13,150,000 $ 13,281,500 $ 10,197,980 10,399,960 10,603,960 800,000 800,000 800,000 5,000 5,000 5,000 6,242,400 6,367,248 6,494,593 632,462 838,787 645,175 1,087,755 1,114,949 1,142,823 1,293,000 1,293,000 1,293,000 1,200,000 1,200,000 1,200,000 90,000 90,000 90,000 42,500 42.500 42,500 50,500 51,005 51,515 34,519,097 35,152,449 35,650,066 $ 338,611 536,975 18,257,062 313,694 513,530 241,795 141,673 882,034 1,113,539 841,861 2,449,440 1,248,354 184,542 298,386 147,657 410,400 1,990,000 4,561,226 $ 34,470,779 2008 Estimate 365.700 579,933 19,717,627 338,790 554,612 261,139 153,007 952,597 1,202,622 909,210 2,645,395 1,348,222 199,305 322,257 159,470 443,232 2,092,000 2,843,996 $ 35,089,114 2009 Estimate 394,956 626,328 21,295,037 365,893 598,981 282,030 165,248 1,028,805 1,298,832 981,947 2,857,027 1,456,080 215,249 348,038 172,228 478,691 2,211,000 823,934 $ 35,600,304 2010 Estimate 13,414,315 10,810,000 800,000 5,000 6,624,485 651,627 1,171,394 1,300,000 1,200,000 90,000 42,500 52,030 36,161,351 426,552 676,434 22,998,640 395,164 646,899 304,592 178,468 1,111,109 1,402,739 1,060,503 3,085,589 1,572,566 232,469 375,881 186,006 516,986 2,340,000 S 37,510,597 35 Street Fun Beginning Fund Bal Transfer from G Motor Fuel Ta Expenditure Ending Fund Bal 10 -26 -04 Street Fund Analysis Utility Tax 6% 9/20/04 200 Estimat 2,511,78 2,542,80 1,200,000 6,254,58 200 200 Estimat Estimat 2,452,94 6,236,82 1,200,000 9,889,77 5,783,99 4,561,22 1,200,000 11,545,22 200 Estimat 7,110,98 2,843,99 1,200,000 11,154,98 200 2010 Estimat Estimat 6,366,00 3,217,850 823,93 1,200,000 1,200,000 8,389,94 4,417,850 3,801,64 4,105,77 4,434,23 4,788,97 5,172,09 5,585,861 2,452,94 5,783,99 7,110,98 6,366,00 3,217,850 1,168,011 36 Multi -Year Financial Plan - General Fund Six Year Forecast: Utility Tax 5% General Fund Revenues: Sales Tax Property Tax Gambling Tax Leasehold Excise Tax Utility Tax 5% Franchise Fees State Shared Ravonues Planning & Building Fees Fines & Forfeitures Recreation Program Fees Interfund Transfers Investment Interest Total General Fund General Fund Expenditures: Legislative Executive & Legislative Public Safety Deputy City Manager Finance Legal Human Resources Public Works Planning Building Library Parks Admirt Recreation Aquatics Senior Center CenterPlace General Government Transfer to Street Fund Total General Fund 9/22/04 2005 Estimate $ 12,400,000 $ 9,800,000 800,000 5,000 5,000,000 620,000 1,035,340 1,293,000 1,200,000 90,000 80,000 38,000 32 290,305 460,369 15,652,488 268,942 440,269 207,300 121,462 756,202 954,681 721.760 2,100,000 1,070,262 158,215 255,818 126,592 321,299 5,706,885 1,642,802 $ 31,255,651 2006 Estimate 12,750,000 9,998,000 800,000 5,000 5,100,000 626,200 1,061,224 1,293,000 1,200,000 90,000 42,500 50,000 33,015,924 313,529 497,199 16,904,687 290,457 475,491 223,884 131,179 816,698 1,031,055 779,501 2,268,000 1,155,883 170,872 276,283 136,719 380,000 1,880,000 5,218,829 $ 32,950,266 2007 Estimate $ 12,877,500 10,197,980 800,000 5,000 5,202,000 632,462 1,087,755 1,293,000 1,200,000 90,000 42,500 50,500 33,478,697 338,611 536,975 18,257,062 313,694 513,530 241,795 141,873 882,034 1,113,539 841,861 2,449,440 1,248,354 184,542 298,386 147,657 410,400 1.990,000 3,522,866 $ 33,432,419 2008 Estimate $ 13,150,000 10,399.960 800,000 5.000 5,306,040 638,787 1,114,949 1,293,000 1,200,000 90.000 42,500 51,005 34,091,241 365,700 579,933 19,717,627 338,790 554,612 261,139 153,007 952,597 1,202,622 909,210 2,645,395 1,348,222 199,305 322,257 159,470 443,232 2,092,000 1,784,869 $ 34,029,987 2009 Estimate $ 13,281,500 10,603,960 800,000 5,000 5,412,161 645,175 1,142,823 1,293,000 1,200,000 90,000 42,500 51,515 34 394,956 626,328 21,295,037 365,893 598,981 282,030 165,248 1,028,805 1,298,832 981,947 2,857,027 1,456,080 215,249 348,038 172.228 478,691 2,211,000 $ 34,776,370 2010 Estimate $ 13,414,315 10,810,000 800,000 5.000 5,520,404 651,627 1,171,394 1,300,000 1,200,000 90,000 42,500 52,030 $ 35,057,270 426,552 676,434 22,998,640 395,164 646,899 304,592 178,468 1,111,109 1,402,739 1,060,503 3,085,589 1,572.566 232.469 375.881 186,006 516,986 2,340,000 $ 37,510,597 37 Street Fun Beginning Fund Bal 2,511,78 1,552,94 3,865,99 4,154,62 2,350,52 (1,621,571) Transfer from G 1,642,80 5,218,82 3,522,86 1,784,86 Motor Fuel Ta 1,200,00 1,200,00 1,200,00 1,200,00 1,200,00 1,200,00 5,354,58 7,971,77 8,588,86 7,139,49 3,550,52 (421,571) 10 -26 -04 Street Fund - Utility Tax 5% 9 -20 -04 200 200 200 200 200 201 Estimat Estimat Estimat Estimat Estimat Estimat Expenditure 3,801,64 4,105,77 4,434,23 4,788,97 5,172,09 5,585,861 Ending Fund Bal 1,552,94 3,865,99 4,154,62 2,350,52 (1,621,571) (6,007,432) 38 General Fund Revenues: Sales Tax Property Tax Gambling Tax Leasehold Excise Tax Utility Tax 4% Franchise Fees State Shared Revenues Planning & Building Fees Fines & Forfeitures Recreation Program Fees Intcrfund Transfers Investment Interest Total General Fund General Fund Expenditures: Legislative Executive & Legislative Public Safety Deputy City Manager Finance Legal Human Resources Public Works Planning Building Library Parks Admin Recreation Aquatics Senior Center CenterPlace General Government Transler to Street Fund Total General Fund 9/22/04 Multi -Year Financial Plan - General Fund Six Year Forecast: Utility Tax 4% 2005 Estimate $ 12.400,000 $ 9,800,000 800.000 5.000 4,000,000 620,000 1,035,340 1,293,000 1,200,000 90,000 80,000 38,000 31.359.340 290,305 460,369 15.652,488 268,942 440,269 207,300 121.462 756,202 954,681 721,760 2,100,000 1,070,262 158,215 255,818 126,592 321,299 5,706.885 742,802 $ 30,355,651 $ 2006 Estimate 12,750,000 9,998,000 800,000 5,000 4.080,000 626,200 1,061,224 1,293,000 1,200,000 90,000 42,500 50,000 31,995,924 313,529 497,199 16,904,687 290,457 475,491 223,884 131,179 816,698 1,031,055 779,501 2,268,000 1,155,883 170,872 276,283 136,719 380.000 1,880,000 4,200,829 31,932,266 2007 Estimate $ 12,877,500 10,197,980 800.000 5,000 4,161,600 632,462 1,087,755 1,293,000 1,200,000 90,000 42,500 50,500 32,438,297 2008 Estimate $ 13,150,000 $ 10,399,980 800,000 5,000 4,244,832 638,787 1,114,949 1,293,000 1,200,000 90.000 42.500 51,005 33,030,033 2009 Estimate 13,281,500 5 10,603,900 800,000 5.000 4,329,729 645,175 1,142,823 1,293,000 1,200,000 90,000 42,500 51,515 33,485,202 $ 338,611 365,700 394,956 536,975 579,933 626,328 18,257,062 19,717,627 21,295,037 313,694 338,790 365,893 513.530 554,612 598,981 241,795 261,139 282,030 141,673 153,007 165,248 882,034 952,597 1,028,805 1,113,539 1,202,622 1,298,832 841,881 909,210 981,947 2,449,440 2,645,395 2,857,027 1,248,354 1,348.222 1,450,080 184,542 199.305 215,249 298,386 322.257 348,038 147,657 159,470 172,228 410,400 443,232 478,691 1,990,000 2,092,000 2,211,000 2,484,506 725,742 $ 32,394,059 5 32,970 $ 34,776,370 $ 37,510,597 2010 Estimate 13,414,315 10,810,000 800,000 5,000 4,416,324 651,627 1,171,394 1,300,000 1,200,000 90,000 42,500 52,030 33,953,190 426,552 676,434 22,998,640 395,164 646,899 304,592 178,468 1,111,109 1,402,739 1,060,503 3,085,589 1,572,566 232,469 375,881 186,006 516,986 2,340,000 39 Street Fun Beginning Fund Bal 2,511,78 Transfer from G 742,80 Motor Fuel Ta 1,200,00 Expenditure Ending Fund Bal 10 -26 -04 Multi -Year Financial Plan Utility Tax 4% 9 -20 -04 200 Estimat 4,454,58 200 200 200 Estimat Estimat Estimat 652,94 4,200,82 1,200,00 6,053,77 3,801,64 4,105,77 652,94 1,947,99 200 201 Estimat Estimat 1,947,99 1,198,26 (1,664,965) (5,637,058) 2,484,50 725,74 - - 1,200,00 1,200,00 1,200,00 1,200,00 5,632,50 3,124,01 (464,965) (4,437,058) 4,434,23 4,788,97 5,172,09 5,585,861 1,198,26 (1,664,965) (5,637,058) (10,022,919) 40 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: 11 -09 -04 City Manager Sign -off: Item: Check all that apply: ❑ consent ® old business ❑ new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE: Unfinished Business: First Reading Proposed Utility Tax Ordinance GOVERNING LEGISLATION: When a motion is laid on the table (set aside temporarily), or tabled to a date certain, members must take it from the table by the end of the designated meeting or it dies. Anyone can make this motion; it needs a second and is not debatable. If adopted, the motion that was tabled is now before the assembly. PREVIOUS COUNCIL ACTION TAKEN: This matter was presented to Council at the October 26, 2004 Council meeting. At that meeting, Utility Tax Ordinance 04 -045 was scheduled for a first reading. It was moved by Councilmember Denenny and seconded by Councilmember Munson to advance Ordinance 04 -045 to a second reading. After an overview by Finance Director Thompson explaining the reasons to explore the possibility of a utility tax, council discussion, and public comment, the motion was tabled (to move the ordinance to a second reading) to November 9, 2004 to allow continued discussion and public participation over the next several council meetings. The motion to table was approved unanimously. RECOMMENDED ACTION OR MOTION: 1. Move to take from the table, the motion relating to the first reading of proposed utility tax ordinance 04 -045. 2. Vote on taking the motion from the table. If — yes — the motion is taken from the table. 3. The original motion may then be further discussed. 4. The last pending motion was: to advance Ordinance 04 -045 to a second reading. 5. Vote on the pending motion; or in the alternative, it may be withdrawn or amended. BUDGET /FINANCIAL IMPACTS: STAFF CONTACT: ATTACHMENTS Proposed Ordinance 04 -045 DRAFr2 CITY 1 OFSPO SPOKANE VALLEY SPOKANE COUNT ` WASHINGTON ORDINANCE NO. 04 -045 AN ORDINANCE OF '1 J±E CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, i STABi IS.HTNG A UTILITY TAX WITHIN THE CITY OF SPOKANE VALLEY, PROVIDING PROCEDURES FOR THE IMPLEMENTATION THEREOF INCLUDING CiVIL AND CRIMINAL PENALTIES AND OTHER MATTERS PROPERLY RELATED THERETO. WHEREAS, the State of Washington pursuant to RCW 35A.82.020 and RCW 35.21.870 has authorized code cities to raise revenue for the privilege of conducting certain utility businesses in the City and use the revenues to maintain the services, duties and obligations of the City; and WHEREAS, a excise utility tax may be imposed upon gross receipts of a business provided the tax is uniform in its application; and WHEREAS, the City desires to provide for a City /Utility Tax as authorized by law. NOW, THEREFORE, the City Council of the City of Spokane Valley, Spokane County, Washington, do ordain as follows: Section 1. Definitions, Unless the context clearly indicates otherwise, the words, phrases and terms used in this Ordinance shall have the following meanings: A. "Cellular Telephone Service" means a two -way voice and data telephone /telecommunications system based in whole or substantially in part on wireless radio communications which is not subject to regulation by the Washington State Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of cellular mobile service includes other wireless radio communications services such as specialized mobile radio (SMR), Personal communications services (PCS), and any other evolving wireless radio communications technology which accomplishes a purpose similar to cellular mobile service.. Cellular Telephone Service is included within the definition of "Telephone Business" for the purposes of this Ordinance. 13. "City Manager" means the City Manager and designees. C. "Competitive Telephone Service" means the providing by any Person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by Persons that are not subject to regulation as telephone companies under Title 80 RCW and for which a separate charge is made. D. "Gas Distribution Business" means the business of operating a plant or system for the production or distribution for hire or sale of gas, whether manufactured or natural. E. "Light and Power Business" means the business of operating a plant or system for the generation, production, distribution or furnishing of electrical energy for hire or sale and/or for the wheeling of ele.ctric.ity. Utility Tax Ordinance Page 1 of 7 DRAFT2 F. "Solid Waste" means all putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge, demolition and construction waste, abandoned vehicles or parts thereof. G. "Solid Waste Collection Business" means every person who receives Solid Waste or recyclable materials for transfer, storage, or disposal including but not limited to all collection services, public or private solid waste disposal sites, transfer stations, and similar operations. H. "Gross Income" means the value proceeding or accruing from the sale of tangible property or service and receipts (including all sums earned or charged, whether received or not) by reason of investment of capital in the business engaged in (including rentals, royalties, interest and other emoluments however designated) excluding receipts or proceeds from the sale or use of real property or any interest therein and the proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like and without any deduction on account of the cost of the property sold, cost of materials used, labor costs, interest or discount paid, or any expenses whatsoever, and without any deduction on account of losses. Further deductions and exceptions from Gross Income upon which the fee or tax described in this Ordinance is computed are set forth in Section 6. I. "Pager Service" means service provided by means of an electronic device which has the ability to send or receive voice or digital messages transmitted through the local telephone network, via satellite or any other form of voice or data transmission. "Pager Service" is included within the definition of "Telephone Business" for purposes of this Ordinance. J. "Person or Persons" means persons of either sex, firms, co- partnerships, corporations, limited liability companies, and other associations, whether acting by themselves or through servants, agents or employees. K. "Stormsewer Business" means the collection of storm or surface water through drains, channels and facilities controlled by the City including treatment and disposal facilities all as described and set forth in City of Spokane Valley Ordinance No. 31. L. "Taxpayer" means any Person liable for the license fee or tax imposed by this Ordinance. M. "Tax Year or Taxable Year" means (1) the year commencing January 1st and ending on December 3 lst, of such year, or (2) the Taxpayer's fiscal year when permission is obtained from the City Manager to use that period as the tax year. N. "Telephone Business" means the business of providing access to a local telephone network, local telephone network switching service, toll service or coin telephone services or providing telephonic, video, data or similar communication or transmission for hire, via a local telephone network, toll line or channel cable, microwave, or similar communication or transmission system. The term includes cooperative or farmer line telephone companies or associations operating an exchange. Telephone Business also includes Cellular Telephone Service. Telephone Business does not include the providing of Competitive Telephone Service, the providing of Cable Telephone Service, nor the providing of broadcast services by radio and Telephone stations. Utility Tax Ordinance Page 2 of 7 I)RAFT2 Section 2. Utility Tax Levied - Rate. There is levied on and shall be collected from every Person a tax for the act or privilege of engaging in utility business activities, measured by multiplying the below respective rates against Gross Income as follows: A. Telephone Business. Upon every Person engaged in or carrying on any Telephone Business (including Cellular Telephone Service and Pager Service) within the City a fee or tax equal to six percent (6 %) of the total Gross Income from such business in the City. Tax liability imposed under this Section shall not apply to that portion of Gross Lncome derived from charges to another telecommunications company, as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services, or charges for network telephone service that is purchased for the purpose of resale. B. Natural or Manufactured Gas. Upon every Person engaged in the Gas Distribution Business or carrying on the business of transmitting, distributing, selling, brokering and furnishing natural and /or manufactured gas, a tax equal to six percent (6 %) of the total Gross income from such business in the City. C. Solid Waste. Upon every Person engaged in the Solid Waste Collection Business or carrying on the business of collecting Solid Waste, recyclable materials or yard waste, a tax equal to six percent (6 %) of the total Gross Income from such business in the City, but not including income from the sale of recyclable materials or yard waste. D. Lir.tht. and Power (Electricity). Upon every Person engaged in the Light and Power Business or carrying on the business of selling, furnishing, or transmitting electric energy, a tax equal to six percent (6 %) of the total Gross Income from such business in the City. E. Storm and Surface Water. Upon every Person engaged in or carrying on the business of operating a public Stormwater Business, a tax equal to six percent (6 %) of the total Gross Income from such business in the City. Section 3. Allocation of Income - Cellular Telephone Service. A. Service Address. Payments by a customer for the telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer's principal service address during the period for which the tax applies. B. Presumption. There is a presumption that the service address a customer supplies to the Taxpayer is current and accurate, unless the Taxpayer has actual knowledge to the contrary. C. Roaming Phones. When the service is provided while a subscriber is roaming outside the subscriber's normal cellular network area, the Gross Income shall be assigned consistent with the Taxpayer's accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call. D. Dispute Resolution. If there is a dispute between or among the City and one or more other cities, as to the service address of a customer who is receiving Cellular Telephone Services and the dispute is not resolved by negotiation among the parties, then the dispute shall be resolved by the City and the other city or cities by submitting the issue for settlement to the Association of Washington Cities (AWC). Once. the taxes on the disputed revenues have been Utility Tax Ordinance Page 3 ot'7 DRAFT2 paid to one of the contesting cities, the Cellular Telephone Service company shall have no further liability with respect to additional taxes on the disputed revenues so long as it changes its billing records for future revenues to comport with the settlement facilitated by AWC. B. City Manager Authority. The City Manager is authorized to represent the City in negotiations with other cities for the proper allocation of Cellular Telephone Service taxes imposed pursuant to this Ordinance. Any agreement with respect to the allocation of the Cellular Telephone Service taxes shall receive the final approval of the City Council. Section 4. Remittance. A. Monthly Remittance. The tax imposed by this Ordinance shall be collected reported and remitted to the City monthly on or before the last clay of the subsequent month. If a Taxpayer commences to engage in business at any time other than the first day of the month, then the Taxpayer's first return and tax payment shall be based upon and cover the portion of the month during which the Taxpayer engaged in business. 13. Returns. The remittance shall be in legal tender and shall be accompanied by a return on a form to be provided and prescribed by the City. The Taxpayer shall be required to swear or affirm in writing on the return that the information therein given is full and true and that the Taxpayer knows it to be so. if the total tax for which any Person is liable under this Ordinance is not reasonably expected to exceed $100 in any month, the Taxpayer may file a written request with the City Manager to file and pay taxes due under this Ordinance annually. Such requests are subject to approval by the City Manager. Section 5. Taxpayer engaged in more than one business. Any Person engaged in, or carrying on more than'one activity or business subject to the tax imposed by this Ordinance, shall pay the tax so imposed on each such business or activity. Section 6. Deductions. in computing the tax imposed by this Ordinance, the following may be deducted from the measure of the tax: A. Adjustments made to a billing or to a customer account or to a telecommunications company accrual account in order to reverse a billing or charge that had been made as a result of third -party fraud or other crime and for which the Taxpayer can provide documentation to the City. B. All cash discounts allowed and actually granted to customers of the Taxpayer during the tax year and for which the Taxpayer can provide documentation to the City. C. Amounts derived from transactions in interstate or foreign commerce, or from business done for the government of the United States, its officers or agents in their official capacity, and any amount paid by the Taxpayer to the United States or the State of Washington, as excise taxes. D. The amount of credit losses actually sustained by Taxpayers whose regular books are kept on an accrual basis. E. Amounts derived from business which the City is prohibited from taxing under the Constitution or the laws of this State or the United States. Utility Tax Ordinance Page 4 of 7 Section 7. Record Retention Requirements. It shall be the duty of every Person liable for payment of the tax hereunder to obtain an occupation license, as prescribed by Spokane Valley Municipal Code 5.05.020, and to keep and preserve for a period of five years such books and records as will accurately reflect the amount of Gross Income from the business, and from which can be determined the amount of any tax for which the Person may be liable under the provisions of this Ordinance. The term "books and records" as used in this section includes but is not limited to copies of the Taxpayer's Federal income tax returns, Federal excise tax returns, State of Washington excise tax returns, and copies of income tax and excise tax audits made by the United States or the State of Washington and furnished to such Person. The Taxpayer's books and records shall be available for examination at all reasonable times by the City Manager and his or her duly authorized. DRAFT2 In the case of any Taxpayer who does not keep the necessary books and records within the City for examination, it shall be sufficient if such Person produce the same within the City as instructed or required by the. City Manager Any Taxpayer who fails, neglects, or refuses to produce such books and records in accordance with this Ordinance, or fails to file a return, in addition t:o being subject to other civil and criminal penalties provided by this Ordinance, is subject to a tax assessment in an amount determined by the City Manager in accordance with the provisions of this Ordinance, which tax assessment shall be deemed prima facie correct and shall be the amount of fee or tax owing to the City by the Taxpayer unless the Person can prove otherwise by competent evidence. The Taxpayer shall be notified by certified mail of the amount of tax assessment imposed pursuant to this Section, together with any penalty and/or interest due, and the total of such amounts shall thereupon become immediately due and payable. Section 8. Tax Delinquency -- Unlawful Acts. A. Penalties and Interest. For each payment due, if such payment is not made by the due date thereof, there shall be added penalty and interest as follows: (1) If paid 1 - 10 days late, there shall be a penalty of 5% added to the amount of tax due. (2) If paid 11 - 20 days late, there shall be a penalty of 7% added to the amount of tax due. (3) if paid 21 - 30 days late, there shall be a penalty of 10% added to the amount of tax due. (4) If paid 31 - 60 days late, there shall be a penalty of 15% added to the amount of tax due. (5) In addition to the above penalty, the City shall charge the Taxpayer interest on all taxes due at the rate of one percent (1 %) per month or portion thereof that said amounts are past due. (6) The tax imposed by this Ordinance, and all penalties and interest thereon, shall constitute a debt to the City, and may be collected by court proceedings in the same manner as any other debt which remedy shall be in addition to all other available remedies. Any judgment entered in favor of the City may include an award to the City of all court and collection costs including attorneys' fees to the extent permitted by law. Utility Tax Ordinance Page 5 of 7 i)RAFT2 Amounts delinquent more than sixty days niay be assigned to a third party for collection, in which case the amount of any collection charges shall be in addition to all other amounts owed. Amounts due shall not be considered paid until the City has received payment for the full amount due or has discharged the amount due and not paid. B. Unlawful Acts. It is unlawful for any Person liable for the tax imposed by this Ordinance to fail to pay the tax when due or for any Person, firm, or corporation to make any false or fraudulent return or any false statement in connection with the return. C. Criminal Penalties. Any Person who intentionally violates any provision of this Ordinance shall be guilty of a misdemeanor and upon conviction thereof punished pursuant to state law or City ordinance. Section 9. Ouitting, Selling. or Transferring Business. Whenever any Taxpayer quits business, or sells out, exchanges, or otherwise disposes of such business, any tax payable under this Ordinance shall become immediately due and payable, and such Taxpayer shall, within ten (10) days thereafter, make a return and pay the tax due; and any Person who becomes a successor shall become liable for the full amount of any unpaid tax, interest, and penalties and shall withhold from the purchase price an amount sufficient to pay any tax due from the Taxpayer until such time as the Taxpayer shall produce a receipt from the City showing payment in full of any tax due or a certificate that no tax is due. If such tax, interest or penalty has not been paid by the Taxpayer within 10 days from the date of such sale, exchange, or disposal, the successor shall become liable for the payment of the full amount of tax, interest and penalties. The successor's liability shall be limited to the purchase price or fair market value of the business purchased if no cash transaction took place. No successor shall be liable for any tax due from the Taxpayer from whom the successor has acquired a business or stock of goods if the successor gives written notice to the City Manager of such acquisition and no assessment is issued by the City Manager within six (6) months of receipt of such notice against the former operator of the business. Taxpayer's account will remain on an active status and be subject to all taxes, penalties, and interest until such time as the City Manager is notified in writing that the Taxpayer has discontinued business activity within the City. Nothing in this Ordinance is intended nor shall it be construed to prohibit the successor from engaging in business in the City pending resolution of the successor's tax liability. Section 10. Tax Not Exclusive. The tax levied herein shall be additional to any license fee or tax imposed or levied under any other law or under any other ordinance of the City. Section 11. Rate Changes. No change in the rate of tax upon Persons engaging in the business of furnishing natural gas or in the Telephone Business, including Cellular Telephone Service, shall apply to business activities occurring before the effective date of the change. Furthermore, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax on the business of furnishing natural gas or the Telephone Business may take effect sooner than sixty (60) days following the enactment of the ordinance establishing the change. The City shall send to each Cellular Telephone Service company at the address on its occupation license, a copy of any ordinance changing the rate of tax upon Cellular Telephone Service promptly upon its enactment. Section 12. Appeal Procedure. Any Taxpayer aggrieved by the amount of the fee or tax found by the City Manager to be required under the provisions of this Ordinance may, upon full payment of the amount assessed, appeal from such finding by filing a written notice of appeal with the City Clerk within fourteen (14) days from the date such Taxpayer was given notified in writing of such amount. The Clerk shall, as soon as practicable, fix a time and place for the hearing of such appeal before the Hearing Examiner, which time shall be not more than sixty (60) days after the filing of the notice of appeal, and Utility Tax Ordinance Page 6 of 7 DRAFT2 shall cause a notice of the time and place thereof to be delivered or mailed to the appellant. At such hearing before the Hearing Examiner, the Taxpayer shall be entitled to be heard and to introduce evidence in his or her own behalf. The Hearing Examiner shall render a decision, together with findings of fact and conclusions of law, based upon the evidence presented at the time of the hearing and all material on fil in the case. The Hearing Examiner's decisions shall indicate the correct amount of the fee or tax owing. The Hearing Examiner's decision shall be final. The appellant or the City may appeal the decision of the Hearing Examiner to the Superior Court of Washington in and for Spokane County within thirty (30) days after the date of the Hearing Examiner's decision. The Hearing Examiner may, by subpoena, require the attendance of any Person, and may also require hint /her to produce any pertinent books and records. Any Person served with such subpoena shall appear at the time and place therein stated and produce the books and records required, if any, and shall testify truthfully under oath administered by the Hearing Examiner as to any matter required of him/her pertinent to the appeal, and it shall be unlawful for him /her to fail or refuse so to do. Section 13. Over or - Underpayment of Tax. In the event that any Person makes an overpayment, and within two years of the date of such overpayment makes application for a refund or credit, the Person's claims shall be allowed and a refund made by the City upon determination by the City Manager that no other sums are owed by the Person to the City. If a Person determines that the tax has been underpaid and without notice by any party pays the amount due to the City, such amount shall not be subject to penalty. Section 14. Severability. If any section, sentence, clause or phrase of this Ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. Section 15. Effective Date. This Ordinance shall be in full force and effect five (5) days after date of publication of this Ordinance or a summary thereof in the official newspaper of the City, and the taxes imposes herein shall take effect February 1, 2005. ATTEST: PASSED by the City Council of the City of Spokane Valley this _ day of , 2004. City Clerk, Christine Bainbridge Approved as to Form: Interim City Attorney, Stanley M. Schwartz Date of Publication: Effective Date: Mayor, Michael DeVleming Utility Tax Ordinance Page 7 of 7 Meeting Date: November 9, 2004 City Manager Sign -off: Item: Check all that apply: ❑ consent ❑ old business X new business ❑ public hearing ❑ information ❑ admin. report ❑ pending legislation AGENDA ITEM TITLE : Update on Park Maintenance Service Proposals GOVERNING LEGISLATION: N/A CITY OF SPOKANE VALLEY Request for Council Action PREVIOUS COUNCIL ACTION TAKEN: On May 25, 2004, Council selected park maintenance services as one of two areas for the City's managed competition pilot project. BACKGROUND: Per Council direction, the Parks and Recreation Department advertised for contracted year -round maintenance of City parks, open space, playing fields and other facilities. A mandatory pre - submittal meeting and facility inspection was held September 9, 2004 with nine firms attending. The written Proposals were due October 1, 2004. Four proposals were received. A selection team comprised of Mike Jackson, Parks and Recreation Director, Nina Regor, Deputy City Manager; Neil Kersten, Public Works Director; and Morgan Koudelka, Administrative Analyst has been reviewing the proposals. A summary of the proposals will be presented at the meeting. RECOMMENDED ACTION OR MOTION: Review and discussion of options. BUDGET /FINANCIAL IMPACTS: None for 2004. The proposals are for 2005 and beyond. STAFF CONTACT: Mike Jackson, Parks and Recreation Director ATTACHMENTS Power Point October 13, 2004 Letter from Mike Jackson to Doug Chase at Spokane Co. October 15, 2004 Letter from Doug Chase to Mike Jackson • Ualley October 13, 2004 Doug Chase Spokane County Parks Recreation & Golf 404 North Havana Spokane, WA 99202 Dear Mr. Chase, RECEIVED OCT t4 m 11707 E Sprague Ave Suite 106 • Spokane Valley WA 99206 509.688 -0182 • Fax: 509.688 -0188 • parksandrec ®spokanevalley.org Thank you for submitting a proposal to the City o.f Spokane Valley for park maintenance. In reviewing your Cost Proposal, the Selection Committee noted that you included additional conditions that are not part of the City's Request for Proposal (RFP). The additional conditions, as briefly outlined below, appear to make the County's proposal non - responsive. Your response to the following will assist us in making that determination. In Paragraph 1, on the final page of your proposal, you have added language that stipulates that if the City selects Spokane County for park maintenance, the City m ust also agree to contract with the County for aquatic services. This paragraph also requires that if the City is to contract with Spokane County for aquatics, the City would be asked to obtain a separate insurance policy and agree to indemnify and hold harmless Spokane County (and others) for their activities related to aquatic services. Because aquatic services are not included in the RFP, it appears they cannot be a consideration in the award of the park services proposals. If however, there is legal foundation or other rational for the conditions you have noted, the Selection Committee would be interested in receiving that information. The final paragraph of your proposal states, "The proposal submitted by the County is not for a fixed cost ". This paragraph discusses a reimbursement of actual cost very similar, if not identical, to the City and the County's current contract. Again, if there is legal foundation, or other rational that will assist the City in determining if your proposal is responsive, please let us know. In order to ensure every consideration of the County's submittal, I would appreciate your review of the above as well as any additional information that might impact the City's decision. I would appreciate hearing frorn you in 3 business days. If you feel the time is inadequate, please let me know. Parks an ecreation Director October 15, 2004 Dear Mike, 4 .!' _ ; rig - r Mike Jackson, Parks and Recreation Director City of Spokane Valley 11707 East Sprague Suite 106 Spokane Valley, WA 99206 DEPARTMENT OF PARKS, RECREATION AND GOLF Doug Chase, Director By a �l OCT 1 5 2004 Please accept this letter as a response to your letter dated October 13 2004. Within your letter, you explain concerns and seek additional information in the form of reasoning, or "rational" behind two of the exceptions listed in the cost proposal submitted to the City of Spokane Valley as part of the County's proposal to provide park maintenance services. The two exceptions at issue were included within the proposal as a result of a policy decision made by a majority of the Board of Spokane County Commissioners Thursday, September 30 2004. This policy decision provides consistency with all other Spokane County service contracts presently in place between Spokane County and other municipalities including the City of Spokane Valley. This policy decision was determined by the Board to be in the best interest of the Citizens of Spokane County, including those, which reside in the City of Spokane Valley. During the discussion surrounding this decision, it was discussed that in the event a governmental agency were to provide a "fixed - cost" proposal to another governmental agency (for a sizable amount of services), ultimately, there arc only two outcomes that can take place: • One governmental agency would end up paying more than actual cost to another for governmental services, which some have argued becomes a "gifting of public funds issue" or, • One governmental agency would end up charging less than actual cost, creating a situation where that governmental agency would be financially supporting services of the other, again, creating a situation which some have argued becomes a "gifting of public funds issue ". In summary, strong feelings were expressed in regard to the inappropriateness (legally or otherwise) for one government agency to profit from another. 404 North Havana • Spokane, Washington 99202.4663 • Telephone (509) 477 -4730 Fax: (509) 477 -2454 ) In the event the City determines the County's Proposal to be "non- responsive ", on behalf of the Spokane County Parks and Recreation Department, 1 would like to wish the City the best with all future park and recreation endeavors, and express how much myself and my staff have enjoyed assisting the City through the provision of park maintenance and aquatic services in 2003 and 2004. Under any and all circumstances, I look forward to continuing the positive, professional relationship that we have enjoyed between our two departments. Sincerely, Dou "Chase D' •ector Spo ane Cou Parks and Recreation (50 0 cc. Board of Spokane Count Commissioners Marshall Farnell, Spokane County Chief Executive Officer Managed Competition Parks Maintenance Services Mike Jackson, Parks and Recreation Director November 9, 2004 Background • The City of Spokane Valley currently contracts with Spokane County for park maintenance services. The current agreement terminates on December 31, 2004. • Contract performance has been acceptable, with continual adjustments but no major problems or omissions. • Park Maintenance is one of the pilot projects in the Managed Competition Program. November 9, 2004 2 1 November 9, 2004 Request for Proposal • A Request for Proposal was released and advertised in August 2004, with a deadline of October 1. The RFP was a comprehensive document. Only one addendum was issued. • The RFP covers all aspects of park maintenance on all park properties Including but not limited to: — Lawn care — mowing, trimming, edging, raking, seeping, washing, spraying for weeds, aerating, fertilizing, watering — Litter control and graffiti eradication — Restroom and tadlity cleaning and repair — Playground maintenance, repair and installation • A mandatory pre - submittal conference was held on Thursday, September 9 — Spokane County and nine additional firms were represented • Four submittals were received. 3 Process • Several steps based on a combination of objective and subjective criteria including but not limited to qualifications, experience, work proposal and cost. — Work Proposals — Cost Proposals — Interviews • Reference checks and property inspections will be done on final selection. Some have already been completed. • Proposals were evaluated by selection team — Morgan Koudelka- Administrative Analyst — Neil Kersten - Public Works Director — Nina Regor - Deputy City Manager — Mike Jackson -Parks and Recreation Director November 9, 2004 4 2 Evaluation of Proposals • One Proposal was determined to be non- responsive. The submitter indicated they would not perform one important element. • The Cost Proposals for the three remaining submittals — Senske Lawn and Tree Care, Spokane County, and Skils'Kin —were opened. • Spokane County's proposal was an estimate and not a fixed cost. The County proposed an arrangement similar to the existing 2004 contract, i.e., actual costs would be calculated and billed to the City. November 9, 2004 5 Evaluation of Proposals • In order to determine if the County's bid was responsive, a letter was sent to the County requesting clarification. • It was determined that Spokane County could continue in the selection process but additional review of their Cost Proposal was warranted if they were selected. November 9, 2004 8 3 Evaluation of Proposals • The selection committee interviewed Senske, Spokane County and Skils'Kin on Wednesday, October 27. • The committee re- convened on Friday, October 29 to discuss the submittals. November 9.2004 7 Comparison of Proposals Spokane County Skils'Kin Senske Proposal Ratings 695 687 674 Interviews 83 91 80 Total Points 778 778 754 Cost $666,581 $650,350 S584,796 Greatest Benefit/Dollar 1.17 1.20 1.29 November 9, 2004 8 4 November 9, 2004 Three Choices • Continue with current provider — Spokane County • Select new provider with highest point value - Skils'Kin • Select new provider with lowest cost - Senske Lawn and Tree Care 9 Arguments to Continue with Current Service Provider • Widest diversity of equipment, skills and trades • Known history of satisfactory performance • Good communication with City • Potential for contract to cost less as cost proposal is not a fixed cost • Avoid potential service disruption • Spokane County has a well established risk management program November 9. 2004 10 5 Arguments to select a new provider • Spokane County's open -ended Cost Proposal could cost more than the amount estimated in their proposal • Potential for cost savings • Potential for increased service • Results in a greater diversity of providers to the City November 9, 2004 11 Issues to Discuss • It appears Spokane County's Cost Proposal is non - responsive — Open ended cost — Statement that Spokane County only provide park maintenance . services in conjunction with aquatic services — '...if not selected to provide park maintenance services, Spokane County shall not provide aquatic services for the City of Spokane Valley's Valley Mission, Park Road, and Terrace View Pools' • Should one of the two remaining firms be selected? — Skils'Kin • Highest score, highest price — Senske Lawn and Tree Care • Lowest score, lowest price • Should all bids be rejected and the City negotiate with the County outside of managed competition? November 9, 2004 12 6