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Home My WebLink AboutR-2006-025 Special Election RequestRESOLUTION NO. R-2006- 25 A RESOLUTION requesting a special election be set on April 25, 2006 in the City of Yakima regarding the annexation of the City of Yakima to the Yakima County Rural Library District No. 1, presently operating as the Yakima Valley Regional Library. WHEREAS, the Yakima County Rural Library District No. 1 ("Library District"), presently operating with the Yakima Public Library as the Yakima Valley Regional Library, is a rural library district duly organized and existing under the laws of the State of Washington; and WHEREAS, the City of Yakima ("City") is a first class city duly organized and existing under the laws of the State of Washington, and has continuously been affiliated with the Library District to provide library service to the City and Yakima County as the Yakima Valley Regional Library since February 23, 1951; and WHEREAS, the City Council has approved Ordinance No. 2006- declaring its intentions to terminate its affiliation with the Yakima Valley Regional Library and to join the Library District by annexation, pursuant to RCW 27.12.360; and WHEREAS, the Yakima Public Library Board of Trustees has recommended the annexation by Resolution No. ; and WHEREAS, the Board of Trustees of the Library District has concurred in the proposed annexation by Resolution No. ; and WHEREAS, RCW 27.12.370 requires the Yakima County Board of Commissioners, by resolution, to call a special election to be held in the City of Yakima on April 25, 2006 to pass on the question of annexation of the City to the Library District; and WHEREAS, the Yakima City Council finds that the above actions are in the best interests of residents of the City of Yakima and will promote the general health, safety and welfare; Now therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: res/library annexation 1 Section 1. The Yakima City Council requests that the Yakima County board of Commissioners schedule a special election to be held in the City on April 25, 2006 to pass on the question of the annexation of Yakima to the Library District. Section 2. The ballot proposition shall read substantially as follows: PROPOSITION NO. 1 ANNEXATION OF THE CITY OF YAKIMA TO RURAL LIBRARY DISTRICT #1 OF YAKIMA COUNTY? Shall the City of Yakima be annexed to and be part of Rural Library District #1 of Yakima County? YES ❑ NO ❑ Section 3. The City Manager of the City of Yakima is hereby authorized to submit this Resolution to the Yakima County Board of Commissioners and to other parties in interest. ADOPTED BY THE CITY COUNCIL this 28tday of February , 2006. ATTEST: •avid Edler, Mayor City Clerk res/library annexation 2 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3 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. 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/Background: 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 altematives 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: -.- �� J' 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 9 of 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 se!! 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 concems 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 Relrfl 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 risk 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 district 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. Annexation Calendar (Reverse) for April 2006 General/special election Ballots Mailed County Auditor County Commissioners County Library Board City Council City Council City Library Board YAKIMA Conner ting VALLEY people REGIONAL and LIBRARY ideas. Special election on April 25, 2006; certified April 15, 2006 April 5 Ordinance calling for a special election must be received by March 10, 2006. Resolution calling for a special election. The last agenda date is March 7`11; request for agenda due March 1; documents and public notice due by March 2"d Review Ordinance from the City requesting the special election; Concurring Resolution passed by the Rural County Library Board no later than February 28 Ordinance stating intent to annex to/ join the Library District and Resolution requesting a special election no later than February 286 . 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). Resolution recommending proposed annexation; Public hearing and Resolution to transfer Downtown Library property; Ordinance and resolution before the city must be reviewed and recommended by the City Library Board on Feb. 27`h. County Library Board Agreement and Resolutions concurring in property transfer, and i/ appointment of Trustee, annexation Regional Library Board and special election on Feb. 27`h. 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 Statutory Maximum Net Change 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