TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Kelley Cochran |
425-556-2478 |
DEPARTMENT STAFF:
|
Public Works |
Aaron Bert |
Public Works Director |
|
Executive |
Malisa Files |
Chief Operating Officer |
TITLE:
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Conduct Public Hearing and Approve Transportation Benefit District (TBD) Assumption Ordinance
a. Ordinance No. 3123: An Ordinance of the City of Redmond, Washington, Amending RMC 3.93.040; Assuming the Rights, Powers, Functions, and Obligations of the Redmond Transportation Benefit District and Abolishing the Governing Board of the District as an Entity Separate from the Redmond City Council; Providing for Severability; and Establishing an Effective Date
OVERVIEW STATEMENT:
recommendation
On May 2, 2023, Council held a public hearing and approved the TBD formation ordinance required for the City to establish a Transportation Benefit District. On May 16, 2023, Council approved the resolution of intent to assume the governance of the TBD and set a second public hearing date. The next step in the process is to hold an additional public hearing and to approve an ordinance allowing Council to assume the rights, powers, functions, and obligations of the TBD.
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☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
2023-2024 Adopted Budget
• Required:
Transportation Benefit Districts are governed under RCW 36.73 allowing the City to establish a TBD and for the levying of additional revenue sources. RCW 35.21.225 authorizes the establishment of a TBD subject to the provisions in RCW 36.73.
• Council Request:
The TBD was approved as a new revenue source in the 2023-2024 Adopted Budget.
• Other Key Facts:
Approving the Resolution of Intent to hold a Public Hearing on assumption of the district is the next step in establishing the TBD.
OUTCOMES:
Per the timeline shared with Council at the April 11, 2023, Finance, Administration and Communications Committee of the Whole, the next step in establishing the TBD is to hold the second public hearing and approve an ordinance assuming the rights, powers, functions, and obligations of the Redmond Transportation Benefit District. In the same ordinance, Council will abolish the governing board of the district as a separate entity from the City Council
In late June 2023, Council will be asked to approve another ordinance imposing the one-tenth of one percent sales tax to fund the TBD. After the imposition of the sales tax, staff will work with Council on approval of a TBD budget in the fourth quarter, 2023.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
The proposed timeline above outlines Council actions. Staff has reached out to the business community through OneRedmond as well as communicated through other media channels to update the Community on the potential change in sales tax.
• Outreach Methods and Results:
The following outreach methods are being used to inform the public, including:
- Six posts in Seattle Times, the City’s official newspaper
- All details and updates posted on City’s website at www.redmond.gov/1971 <http://www.redmond.gov/1971>
- Included in the City’s enewsletter twice to 11,000+ unique emails
- Live stream both public hearings on Facebook Live, YouTube Live, and RCTV and promoted the stream on social media
- Posted to social media five times
• Feedback Summary:
In response to feedback from OneRedmond, additional social media posts and additional week in eNews has been added to the communication plan.
BUDGET IMPACT:
Total Cost:
Estimated revenue to be collected by the TBD through the 0.1% sales tax equals $5.5 million in the 2023-2024 budget.
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
Capital Investment Program
Budget Priority:
Vibrant and Connected
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
The 0.1% sales tax imposed by the TBD.
Budget/Funding Constraints:
The expenditures from the TBD are restricted to transportation purposes under RCW 36.73.
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
12/6/2022 |
Business Meeting |
Approve |
|
4/11/2023 |
Committee of the Whole - Finance, Administration, and Communications |
Receive Information |
|
5/2/2023 |
Business Meeting |
Approve |
|
5/9/2023 |
Committee of the Whole - Finance, Administration, and Communications |
Receive Information |
|
5/16/2023 |
Business Meeting |
Approve |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
6/13/2023 |
Committee of the Whole - Finance, Administration, and Communications |
Receive Information |
|
6/20/2023 |
Business Meeting |
Approve |
Time Constraints:
The TBD establishment, formation, assumption of governance and imposition of sales taxes must be accomplished by October 2023 in order for the Department of Revenue to be able to collect the additional revenue by January 1, 2024.
ANTICIPATED RESULT IF NOT APPROVED:
If the TBD is not established, the transportation projects and programs relying on the TBD funding would not move forward.
ATTACHMENTS:
Attachment A: Ordinance Assuming Governance of TBD
Attachment B: Timeline of Council Actions