Loading...
HomeMy WebLinkAbout2006-005 Annexation to the Yakima County Rural Library District ORDINANCE NO 2006- 05 AN ORDINANCE of the City of Yakima City Council initiating the process that will result in a special election to determine whether the City of Yakima shall terminate its contractual affiliation with the Yakima County Rural Library District No 1, jointly operating as the Yakima Valley Regional Library, and be annexed into the Yakima County Rural Library District by declaring the required intent to join the Rural Library District and by finding that such annexation is in the public interest. WHEREAS, the Yakima County Rural Library District No 1 ( "Library District "), presently operating jointly with the Yakima Public Library as the Yakima Valley Regional Library, is a rural library duly organized and existing under the laws of the State of Washington; and WHEREAS, the City of Yakima ( "City") is a first class city with a population of less than one hundred thousand people, duly organized and existing under the laws of the State of Washington, and has continuously been affiliated with Yakima County Rural Library District No 1 providing library service to the City of Yakima and Yakima County as the Yakima Valley Regional Library since February 23, 1951, and WHEREAS, public library service is an important and essential service to the people of the City, assisting them to meet their information, recreation and self - education needs, and WHEREAS, present limitations of revenue and taxation have made it increasingly difficult for the City to maintain the present Regional Library relationship with the Library District; and WHEREAS, the City finds that the public interest of its citizens and the continued operation of the Yakima County library services will be best served by the City terminating its relationship with the Regional Library and annexing to the Library District. Joining the Library District will help maintain, and potentially improve, the present quality of library service for the City; and WHEREAS, RCW 27 12.010, 27 12 360, 27 12.370, 27 12 380 and 27 12.390 provide a statutory process for the City's annexation to the Library District; and WHEREAS, annexation would allow City taxpayers to support and utilize library services on the same basis as taxpayers in the unincorporated county; and WHEREAS, the City of Yakima Public Library Board of Trustees, the Yakima Valley Regional Library Board of Trustees and the Library District Board of Trustees have agreed that upon the City's annexation to the Library District, there shall always be at least one resident of the City of Yakima who shall be nominated by the Yakima City Council and presented by the Library District to the Yakima County Board of Commissioners for appointment to the Library District Board of Trustees, so long as the City remains annexed to the Library District; and WHEREAS, the City of Yakima and the Yakima Valley Regional Library agree that the costs of the special election necessary to complete the annexation of the City to the Library District shall be born equally by the City of Yakima and the Yakima Regional Library; and WHEREAS, this Ordinance has been submitted to the Yakima Public Library Board of Trustees for review and recommendations, and the Board recommends the annexation of the City to the Library District, together with the conditions set forth herein; and WHEREAS, this Ordinance has been received and reviewed by the Board of Trustees of the Library District, and said Board has concurred in the proposed annexation, (jc)ord /library annexation 1 NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA. Section 1 The City intends to join the Library District, and by this Ordinance does initiate annexation to the Library District pursuant to RCW 27 12.360, et seq. Section 2. After enactment of this Ordinance the City Council shall, by Resolution, request that the Yakima County Commissioners call a special election for April 25, 2006, whereby voters can pass upon such proposed annexation. If then approved by the majority of citizens voting on the proposition, annexation will be accomplished thereafter as provided by statue Section 3 The City of Yakima Public Library Board of Trustees, the Yakima Valley Regional Library Board of Trustees and the Library District Board of Trustees agree that upon the annexation of the City to the Library District, there shall always be at least one resident of the City of Yakima who shall be nominated by the Yakima City Council and presented by the Library District to the Yakima County Board of Commissioners for appointment to the Library District Board of Trustees, so long as the City remains annexed to the Library District. Section 4 The City of Yakima and the Yakima Valley Regional Library agree that the costs of the special election necessary to complete the annexation of the City to the Library District shall be born equally by the City of Yakima and the Yakima Valley Regional Library Section 5 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 6 This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter PASSED BY THE CITY COUNCIL, signed and approved this 28th day of February, 2006 ATTEST David Edler, Mayor 2 City Clerk Publication Date 3/3/06 Effective Date 4/2/06 (jc)ord /library annexation 2. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT 3 Item No __ For Meeting Of 2/28/06 ITEM TITLE Consideration of reports and legislation regarding a Proposed Annexation Election of the City of Yakima Public Library to the Yakima County Rural Library District No 1, and the Disposition of Property vested in the Yakima Public Library Board of Trustees ; fl SUBMITTED BY City Administration Finance Department Legal Department CONTACT PERSON/TELEPHONE. Dick Zais, City Manager; # 575 -6040 Cindy Epperson, Financial Services Manager; # 575 -6070 Jeff Cutter, Assistant City Attorney; # 575 -6030 SUMMARY EXPLANATION History /Backcuound Because of the trend over the past five years of flattening municipal revenues, voter - approved initiatives that have reduced or severely restricted existing resources and increasing fixed, mandated, and contractual expenses, in 2004 the City Council appointed a committee - the Budget Strategy Team (BST) - to thoroughly review and evaluate City spending and to make recommendations on future alternatives to reduce the costs of providing municipal services and to consider alternative revenue sources. The BST examined the Library's budget and the level of library service provided within the City limits as part of their review last year Their final report was issued in September 2005 and included the recommendation that the City divest itself of the current relationship /contract with the library and place the issue of annexing to the County Library District before the voters, recognizing that this was favorable to both the Library and the City Continued Resolution 1 Ordinance 1 Contract _ Other (Specify) 2 Memorandums of Understanding Funding Source 000 - General Fund — Property Tax Revenue APPROVED FOR SUBMITTAL. - City Manager STAFF RECOMMENDATION Accept the report and enact the applicable legislation BOARD /COMMISSION RECOMMENDATION The Council's Economic Development Committee approved this report at their February 13, 2005 meeting COUNCIL ACTION Details regarding this item are located at the end of the agenda statement (after page 3 of 3) Page 2 of 3 Annexation would stabilize the Library's revenue stream from the City; equalize the property tax rates paid by City residents for library services with the rates paid by other County residents, narrow the existing gap between annual revenues and expenditures thereby lessening the risk of future service reductions for both the library and the City and would enable the City to redirect a portion of its levy toward reducing dependency on emergency /contingency cash reserves Annexation would also allow the citizens to dedicate their taxes directly to library services Additionally, part of the negotiated agreements includes the requirement that the City of Yakima would have a representative on the 5- member County Library Board Council approved a policy issue during the 2006 budget process to bring this issue forward, to be accomplished by meeting with the Council's Economic Development Committee (Ron Bonlender, Norm Johnson and Bill Lover) to coordinate for an election in 2006 with the Library board and management. Additionally, during the 2005 budget process, the Library proposed to buy a portion of the land that the Downtown Library is located on for $100,000 to maintain its contribution level from the City Part of the research in preparing the legal documents for a property sale included a title search of the property and an appraisal The title search showed that the City owned 6 of the 8 lots, and one -half of the building After negotiations with Library management and review of the condition of the building, staff is recommending that the City sell their entire ownership in the Downtown Library for the agreed upon $100,000, even though the appraisal indicated the City's share of current market value was about $513,000, so that the City is released from any potential cost - sharing of future capital needs of this 49 year old facility Current Action and Proposed Legislation At this point in time, the fiscal/legal analysis has been completed, negotiations with the Library board and management are concluded, and the Council's Economic Development Committee met and approved the details of the annexation and property transfer at their February 13, 2006 meeting The attached documents include reports on both the annexation and sale of property, and legislation to accomplish both of these The documents include 1 Calendar of actions necessary to complete annexation 2 Draft Fact sheet describing issues regarding library annexation 3 Financial analysis of library annexation 4 Fact sheet describing the downtown Yakima library property disposition 5 Motion ratifying Mayor's appointment of Library trustees 6 Resolution authorizing approval of Memorandum of Understanding, which describes terms of disposition of library property and other economic concerns 7 Proposed Ordinance adopting annexation of City to County Rural Library District 8 Resolution of the Yakima City Council to the Yakima County Board of County Commissioners requesting a special election for City annexation 9 Resolution of the Yakima Public Library Board of Trustees recommending the City annexation to the City Council 10 Resolution authorizing an Agreement for Consideration among the City, Library Districts and Yakima County regarding Library Board representation Because the present Yakima City Council has not addressed the appointment of public library trustees during its tenure, the consideration of the issue of annexation will begin with the Mayor's ratification of the five current members of the Yakima Public Library Board of Trustees Upon ratification, the full Council will be asked to approve the Mayor's ratification Following this the Council will review the Public Library Trustees' resolution recommending the proposed annexation to the City Council The Council will then consider the Ordinance initiating the annexation of the City to the Library District. Page 3 of 3 Upon approving the Ordinance, Council will then consider a Resolution requesting that the Yakima County Board of Commissioners set a special election on April 25, 2006 at which time the citizens of Yakima may vote on the library annexation issue Finally, the Mayor will be requested to join the three library boards of trustees in signing a Memorandum of Understanding resolving the transfer of the Yakima Public Library property to the Library District for the specified consideration Part of the negotiated terms included in the above documents is the understanding that the City and the Library will share equally in the cost of the special election regarding annexation, currently scheduled for April 25, 2006 Future Action If the annexation vote by Yakima's citizens is favorable, the change in property taxes will be effective for the 2007 property tax levy That levy will be set by separate action of both the Library board and City Council in November 2006 and is anticipated to have the following effects (based on 2006 assessed values): • The City of Yakima's 2007 property tax rate would drop from the current $3 38 p /$1000 assessed value to approximately $3 12 (the City will no longer assess or collect property taxes for library services) • The Library board would assess approximately 48 p/$1000 of assessed value (this includes the 32 cents p /$1000 assessed value previously collected by the City) • It is estimated that the total tax rate for Yakima citizens would increase from the current $3 38 p /$1000 assessed value to the maximum of $3 60, or approximately 22 cents per one thousand of assessed valuation (approximately 15 cents per thousand for the Library and approximately 7 cents per thousand for the City) • This equates to an annual increase of approximately $22 per each $100,000 of assessed valuation (approximately $15 for the Library and $7 for the City). Should the annexation be approved, the resulting effects on the levy rates for both the City and the Library, as described above, would be the same as in every other city in Yakima County that has recently voted to annex into the County Library District. Therefore, future Council action items would include 1) Setting the property tax levy at the maximum allowed by law when the 2007 levy is before Council in November 2006 to accomplish the BST objective of narrowing the existing gap between annual revenues and expenditures thereby lessening the risk of future service reductions for both the City and the Library and would allow the City to redirect a portion of its levy toward reducing dependency on emergency /contingency cash reserves, and 2) Nominating a Library Board member when necessary, in conjunction with the expiration of current member terms Recommendation The Council's Economic Development Committee approved this report at their February 13, 2006 meeting and recommended full Council consideration and authorization of all legal documents herein and action by City Council in November 2006 to set the City's 2007 property tax levy at it's new maximum rate of approximately $3 12 p /$1000 of assessed value (assuming a successful library annexation vote) ' FEBRUARY 28, 2006 COUNCIL ACTION: A. Calendar of actions necessary to complete annexation Monica Weyhe, Director of the Yakima Valley Regional Library system, advised they are anticipating holding a special election April 25 B Draft fact sheet describing issues regarding library annexation Monica Weyhe described the annexation strategy as an alternate funding source for the City Funds would be shifted from the General Fund property tax to the library levy rate (about $ 15 per thousand) of assessed property valuation. Without this alternative funding source, the branch libraries at the Southeast Community Center and on Summitview will be at nsk for closure. C Financial analysis of library annexation Cindy Epperson, Financial Services Manager, advised that the City's levy rate would be reduced and the library's rate would increase on assessed property valuation. D Fact sheet describing the downtown Yakima library property disposition The County library distnct offers to pay the City $100,000 for the library facility to obtain a clear title on the building and the land. E Motion ratifying Mayor's appointment of Library trustees Action: Motion ratified F Resolution authorizing approval of Memorandum of Understanding describing terms of disposition of library property and other economic concerns Action: Resolution adopted. RESOLUTION NO. R- 2006 -24 G Proposed Ordinance adopting annexation of City to County Rural Library District Action: Ordinance adopted. ORDINANCE NO. 2006-05 H. Resolution of the Yakima City Council to the Yakima County Board of County Commissioners requesting a special election for City annexation Action: Resolution adopted. RESOLUTION NO. R- 2006 -25 I Resolution of the Yakima Public Library Board of Trustees recommending the City annexation to the City Council No action necessary by the City J Resolution authorizing execution of agreement between the City, Library Districts and Yakima County regarding Library Board representation Action: Resolution adopted. RESOLUTION NO. R- 2006 -26 At the request of the Library Director, the Council will hold a public hearing on March 21, 2006 to allow them to take a position on this issue, if desired, and permit further public comment. Y A K I M A Connectin VALLEY ..:.: people 0 e : !... LIBRARY ideas. S '! Annexation Calendar (Reverse) for April 2006 General/special election Special election on April 25, 2006, certified Apnl 15, 2006 Ballots Mailed April 5 County Auditor Ordinance calling for a special election must be received by March 10, 2006 County Commissioners Resolution calling for a special election. The last agenda date is March 7 request for agenda due March 1; documents and public notice due by March 2 County Library Board Review Ordmance from the City requesting the special election, Concurring Resolution passed by the Rural County Library Board no later than February 28 City Council Ordinance stating intent to annex to/ loin the Library District and Resolution requesting a special election no later than February 28 City Council Ratify current Yakima Public Library Board of Trustees no later than Feb. 28th (so they can make recommendations re a) real property; b) annexation, and c) then sunset upon annexation) City Library Board Resolution recommending proposed annexation, Public hearing and Resolution to transfer Downtown Library property; Ordmance and resolution before the city must be reviewed and recommended by the City Library Board on Feb. 27 County Library Board Agreement and Resolutions concurring in property transfer, and / appointment of Trustee, annexation Regional Library Board and special election on Feb. 27 102 N Third Street • Yakima WA 98901 • 509.452.8541 • Fax 509.575.2093 • www.yvrls.lib.wa.us Buena Granger Harrah Mabton Moxee Naches Nile Selah Southeast Yakima Summitview Sunnyside Terrace Heights Tieton Toppenish Union Gap Wapato White Swan Yakima Zillah Library Annexation Analysis: 2005 2006 2007* Assuming Library and City Assess Net Change Statutory Maximum 2006 vs 2007 City's Levy - Dollar Amount $13,660,632 $14,099,086 $13,030,436 - Rate p /$1000 AV $3.44 $3.38 _ $3.125 Based on assessed value of $ 3,971,667,847 $ 4,169,739,611 $ 4,169,739,611 City's Contribution to Library $1,414,107 $1,314,107 n/a _ Approx. rate p/$1000 AV $0 36 $0 32 City Net Prop.Tax Rev Available to City $12,246,525 $12,784,979 $245,457 Library Library's Levy - Dollar Amount n/a n/a $1,980,626 $666,519 - Rate p/$1000 AV $0.475 Total Levy Rate to Taxpayers: $3 44 $3 38 $3 60 ( rate p/$1000 AV) Difference in Levy Rate _ $0.22 $911,977 * This represents the options related to the Library Annexation assuming the same Assessed Valuation and Levy Rates as proposed in 2006 The 2007 levy will likely look different because of changes in these underlying values. 2006 Projects - Lbrary Annexation Library Annex impact on Property Tax 2/24/2006 Draft YakimaLibraries V "A! I M A VALLEY REGI ONA,L.`, 4 Annexation Q & A L �" LIBRAR <Y Voters in the City of Yakima may decide if their city is to be "annexed" to the Yakima Rural County Library District in a Special Election April 25 with Ballots in the mail on April 5th How does Yakima currently get library service? The Yakima Valley Regional Library was formed in 1951 when the City of Yakima Library contracted with the Yakima Rural County Library District (Library District) to operate as a Regional Library and provide books, materials, programs and other library services. The Regional Library combines the City's annual contract payment with dollars paid by those who live outside city limits to pay for operating the county-wide library system. What is the problem or why have an annexation election? The Regional Library projects a shortfall of over $500,000 to keep the 3 public libraries in the city open during 2007 and beyond. The Summitview and Southeast Yakima libraries are at risk of closing in 2007 unless the citizens of Yakima vote to annex to the library district and pay directly for library services. The Downtown Yakima library may not be able to stay open to the public beyond 2008 due to the decline in operating funds. The library district received the same level of fondling ($1.4 million) from the City from 2003 -2005, their payment was cut by $100,000 to $1.3 :million in 2006, and greater reductions totaling $566,000 by 2007 were recommended by the City's Budget Strategy Team in their final report. Expenditures continue to increase more than inflation as well, with medical benefits up over 100% since 2000, books and materials, postage and most supplies up 5% per year, and even higher fuel and utility increases. The district carried needed vacant positions in 2005 and will dip into limited reserves in 2006, for basic operations, required building renovations and needed capital projects such as computers, security cameras, other equipment, and telecommunications. As a junior taxing district, the County Library District is subject to the same limitations on increasing revenues as is the City, such as I -747, other tax initiatives and the 1% limitation. The loss of revenue due to tax limits, the difference between the library district levy and the City contract payments, reduced payments by the City, and fixed costs rising above the rate of inflation, have caused a significant gap between revenues and expenses. What is annexation? Annexation is the way for cities and towns to join the County Library District, instead of contracting for services. The Library District is a junior taxing district and its jurisdiction is Yakima County. Property owners are taxed directly for library services by paying the library levy rate, in the same way citizens in unincorporated Yakima County fund library services, rather than indirectly from property tax paid to the City. Funding for library services shifts from the City's general fund to the Library District. What is the library levy rate? The levy rate in 2006 for Yakima County residents is 47.5 cents /$1,000 assessed value. If annexation passes, City residents will pay at the library levy rate beginning in 2007. For example, owners of a home assessed at $100,000 would pay $47.50 beginning 2007, about 15 cents more than the City is currently collecting for library service. [By state law, property owners will pay no more than 500 per $1,000 assessed property value to a library district.] Why annex and how much will it cost? Annexation will cost an additional $19.50 per year for the average homeowner ($130,000 home) to keep the public libraries open in the city and provide a stable source of funding for access to library materials, services and programs, and cover the basic maintenance and operating (M &O) costs. City residents would then pay the same as county residents. Have Other Cities Annexed? Yes: Selah, Sunnyside, Wapato, Toppenish, Zillah, Moxee, and Harrah have annexed. Buena, Nile,Terrace Heights and White Swan libraries are in the unincorporated area and so people in those communities already pay the library levy rate. Will library service change if annexation is successful? The Library District will continue to .provide library materials, services, and programs to Yakima based upon the district's needs and priorities, dependent upon income and expenses. If annexation passes, Yakima residents will also continue to be able to use all of the Library District branches and resources. Will library service change if annexation fails? Summitview and Southeast libraries are at risk of closing the first year. It is unknown whether the Yakima City Council could provide enough funding to keep the downtown library open to the public after that. That decision is made by the City Council, and is not part of the annexation vote. If the City does not provide funding and if annexation fails, residents of the City of Yakima would not be able to check out items from other County Library branches because the community would not be providing the tax dollars to support the public library system. How is annexation decided? Annexation is decided by a simple majority election. How will annexation affect County residents in the Greater Yakima area? County residents already pay the regular library tax levy, and their taxes will not change regardless of whether annexation is approved or not. What will the ballot say? The wording will be similar to Proposition No. 1 Shall the City of Yakima be annexed to and be a part of the Rural County Library District of Yakima County? ❑ Yes ❑No Will Yakima still have a say in the library system? Yes. The five member County Library Board of Trustees represents the entire county, and is the t nin body for the lib system. S ton as Yakima a at r ' trustees governing body library J .+ long i atWtla :is annexed, al lead one of file ll _ will be a city resident. Yakima Library users also regularly suggest materials and services. The Director and Trustees welcome your input. • How can I get more information? Attend a public meeting prior to the election. Your questions are welcome. You may also contact: www.yvrl.org * Yakima Valley Regional Library, 452 -8541 * Summitview Library, 966 -7070 * Southeast Library, 576 -0723 * Greater Yakima Friends of the Library Downtown Yakima Library Property Offer Y n A K IM A f .: V ALLEY '` pie The Yakima Rural County Library District offers to transfer REGIONAL e A, an $100,000 to the City Yakima in exchange for all remaining L a I B R A R Y - tc, 1 interest in the downtown Yakima Library building and land. 'a� Background: • Research disclosed that the current facility was constructed using $400,000 of general obligation bonds issued each by the City and the Library District in 1957, totaling $800,000, fully repaid through tax levies collected • The 2005 appraisal concluded the total value of both land and building is $900,000; land only is valued at $252;'000; and the building is 85% depreciated • Two of the 8 lots ,are owned by the Library District and 6 by the City Library Board of Trustees (City Board) , • Facility condition assessment estimates the cost to be $4.03 -5.22 million for Minimum Renovation required or $6.8- -$8.95 million to bring up to current standards Why Should the City Transfer their Full Interest for $100,000, when the City's value can be calculated at $513,000? • The library building needs to commence major upgrades, repairs and renovation, or other capital improvements, which are the responsibility of the building owners. The City Board could divest itself of ownership to avoid short and long -term liability (half of costs above) and save much more than the price difference in the long run. • The library district is offering to pay $100,000 and the City Board has the authority to transfer this property to the Rural Library District without any consideration under RCW 39.33, as one government entity to another, although the City could require some consideration as a matter of policy • Ownership in a single entity removes a number of obstacles to planning and developing a renovated or new ,ifacility • Ownership by the,; library district supports the renaissance of downtown, as a primary economic improvement strategy, because it will simplify obtaining funding for capital improvements by the library district which could later ask the people to vote for a capital improvement bond • It serves the Budget Strategy Team and City Manager's recommendation that "the City divest itself of its special relationship with the Library" by transferring title solely to the library district • The current downtown public library facility was constructed for sole purpose of providing public library services for residents of the City and County, and it would be difficult to sell it for a significant profit to another party, for a use compatible with the downtown core • The building is already 85% depreciated • Yakima taxpayers have already paid for the downtown public library facility; and it is in their • best interests to continue to provide a public library facility downtown to help foster its renaissance and improve the economy of Yakima • This proposal has the support of the Committee for Downtown Yakima and local business