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Home My WebLink AboutR-2008-120 Yakima Capital Facilities Plan Update; 2008 Real Estate Excise Tax Capital Program Project ListRESOLUTION NO. R-2008-120 A RESOLUTION to amend the Yakima Capital Facilities Plan incorporating the update of the 2008 Real Estate Excise Tax Capital Program Project List WHEREAS, the City of Yakima annually allocates funds from the Real Estate Excise Tax for specific Capital Improvement Projects consistent with the requirements of RCW 82.46.010 and RCW 82.46.035, and WHEREAS, the City of Yakima annually prepares, reviews and adopts a Capital Budget in the City of Yakima for the ensuing year including the revenues and expenditures of the Real Estate Excise Tax proceeds, as contemplated and required by Yakima Municipal Code Section 3.79, and WHEREAS, the City of Yakima desires to amend the Yakima Capital Facilities Plan to reflect the updated project list for expenditures of the Real Estate Excise Tax Funds to ensure compliance with the Growth Management Act and consistency of the Comprehensive Plan and the requirements of the Tax, and WHEREAS, this amendment is limited to incorporation of the projects listed Real Estate Excise Tax Capital Program Project List Update to the Capital Facilities Plan, which is contemplated and provided under RCW 36.70A.130(2B) and WHEREAS, a significant share of Real Estate Excise Tax funds are expended on transportation projects that are included in the 6 -Year Transportation Plan and public hearings have been held by the Yakima City Council on the 6 -Year Transportation Improvement Plan on Tuesday, July 1, 2008, and again on July 15, 2008, with proper public notice as required by RCW 35.77.010 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City of Yakima will incorporate the update of the Real Estate Excise Tax Capital Program Project List, 2008 into the Capital Facilities Element of the Yakima Urban Area Comprehensive Plan. ADOPTED BY CITY COUNCIL this 5th day of August, 2008. City Clerk avid Edler, ayor • • City of Yakima, Washington Real Estate Excise Tax Capital Facilities Program 2008 Update Summary and Purpose This document has been prepared by the City of Yakima Finance, Legal, Public Works and Community & Economic Development Departments in cooperation with the City Manager as a guide to assist in the reporting of revenues and expenditures from Real Estate Excise Tax (REET). This information provides readily accessible public review of the revenues and expenditures of REET funds. In addition, the updating of the Real Estate Excise Tax Capital Facilities Program provides the foundation for consistency with Capital Facilities Element of the Comprehensive Plan. Beginning in 2008, an annual amendment to the Capital Facilities Element of the Plan will be presented to the City Council to maintain consistency with the REET fund guidelines. REET1 and REET2 Funds Real Estate Excise Tax (REET) revenues are available to the City of Yakima to finance capital projects specified in a Capital Facilities Plan element of a Comprehensive Plan. The City of Yakima receives funds from the first one-quarter of one percent of the selling price of real property known as the Real Estate Excise Tax (REET1) as authorized in RCW 82.46.010. Eligible projects for REET1 Funding include: Public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; administrative and/or judicial facilities. In addition, the City of Yakima adopted the second one-quarter of one percent of the selling price of real property (REET2) in the year 2004. The local option to levy the REET2 funds is authorized by RCW 82.46.035. Eligible projects for REET2 funding include: Public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, bridges, domestic water systems, storm and sanitary sewer systems, and planning, construction, reconstruction, repair, rehabilitation, or improvement of parks. Yakima Urban Area Comprehensive Plan Capital Facilities Element On December 12, 2006 the City of Yakima adopted the mandatory update of the Yakima Urban Area Plan, 2025 by Ordinance 2006-62. The complete Capital Facilities Element Update was adopted by reference into the Urban Area Plan, and summarized in Chapter VII of the Plan. Likewise, the complete Transportation Plan Update was also adopted by reference and summarized in Chapter VI of the Plan. Both the Transportation Update and the Capital Facilities Update include detailed information regarding planned "Capital Facilities Projects". The Transportation Element also includes the required information •on Capital Improvement Projects that are necessary to maintain acceptable Level of Service and Concurrency requirements. The Capital Facilities Element Chapter of the Comprehensive Plan includes summaries of Capital project issues between 2007 and 2012, including Table VII -1, Improvement Needs by Functions - Revenue Table VII -2, Improvement Needs by Function - Expenditures, Table VII -3, Improvement Needs by Specific Revenue Sources The Capital Facilities Plan identifies $195 Million in improvement need over the Capital Facilities Planning 6 -year horizon (2007 to 2012). Of the total, $145 million represents rebuilding of existing infrastructure and $49.6 million are needed capacity projects. Only a portion of the projects listed below from the Capital Facilities Plan are anticipated to use REET funding. • Fire -- $7.6 Million • Parks -- $3.4 Million • Transportation $115.1 Million • Transit — $2.1 Million • Wastewater -- $25.7 Million • Water --$6.5 Million • Irrigation -- $10.5 Million • Other Government Facilities (primarily Capitol Theater) $24.4 Million The Plan estimates a total of $1,500,000 is expected to be received annually from REET1 and REET2 or $9 Million between 2007 and 2012. During each annual budget cycle, the City of Yakima allocates REET1 and REET2 funds toward specific eligible capital improvement projects. Specifically, REET Funds are used for Parks, Fire, Transportation and Government facility projects in the city of Yakima. Tracking of REET Funds Because the sources of REET funds have a restricted, dedicated purpose, revenue and expenditures are required to be accounted separately in a Capital Projects Funds with projects established in the Capital Facilities Element of the Comprehensive Plan. The City tracks revenues and expenditures for both REET1 (Fund 342) and REET2 (Fund 343). The projects included within the adopted Six year Transportation Improvement Plan and listed in the Yakima Urban Area Transportation Plan Element of the Comprehensive Plan are all eligible for funding under REET1 and REET2. • • Likewise, park capital projects listed in the Yakima Parks and Recreation Plan and the Parks Chapter of the Comprehensive Plan are eligible for funding under REET1 and REET2. Fire capital projects are eligible only for REET1--it should be noted that apparatus does not meet the definition of an eligible capital project in the legislation. The following attachments detail many of the planned capital projects, in addition to those included in the Transportation Plan and the Parks Plan Elements of the Urban Area Comprehensive Plan, and provide a summary of REET1 and REET2 fund activity for 2007 and 2008. ➢ Table 1 "REET1 and REET2 Capital Program Eligible Projects" identifies projects that can be funded wholly or partially by REET revenues. These are the projects that will be added to Capital Facilities Element of the Comprehensive Plan upon adoption of the resolution. > Table 2 "REET1 and REET2 Capital Program Fund Summary" identifies 2007 actual revenue andlir expenditures in the REET funds, and the current 2008 budget. • • • Table 1: REET1 and REET2 Capital Program Eligible Projects PROJECT TYPE Capital Project Description Project I.D. # Project Cost Estimate Status Parks Capital Projects Only (2008 allocation) $250,000 Kissel Park Improvements 1800 $40,000 Kiwanis Park Construction 1924 Gaillon park 1996 Chesterley Park Parking Lot 2014 Kiwanis Skatepark 2023 $200,000 Aquatic Playground 2134 $215,000 Aquatic Study 2135 $75,000 complete SE Community Center Improvements 2169 $215,000 complete Kiwanis Fourth Ballfield 2171 $673,459 Lions Pool Rehabilitation 2186 $235,000 Elks Park Restroom & Improvements 2187 $100,000 Upper Kiwanis Development 2212 $900,000 Franklin Pool Rehabilitation 2225 $50,000 Harmon Center Parking Lot 2226 $35,000 Harmon Center Sign 2234 $35,000 Other Capital Park Projects $70,000 Fisher Golf Course CBD Maintenance Elks Park Parking lot surfacing Streets & Engineering Projects 3rd Ave -Mead to Chestnut G.O. 2230 $25,000 Operating Supplies for Street Repair $425,000 Annual 40th Ave Street Repairs 2122 $292,000 Nob Hill Overpass Bridge Repair 2229 $1,000,000 Robertson School Sidewalk match 2046 complete Yakima Ave Pedestrian Project 2216 $130,000 Nob Hill Blvd & Fair Ave 2143 design 16th Ave & Washington Ave IS 2232 $1,200,000 Englewood Grind and Overlay $301,000 complete Tieton Dr Paving (10th to 65th) 653 $202,733 Debt Service Tieton Dr (5th to 16th Ave) 1360 $120,558 1-82 Condor Study 1371 $365,073 Resignalization 1367 $1,141,074 Tieton Drive Sidewalk, ADA project 2233 $192,000 66th Ave & Summitview IS 2191 $350,000 Nob Hill Blvd (68th to 80th) River Road (16th to Fruitvale) 1944 Street Repair Equipment $50,000 "A" Street Parking Garage Ramp removal $85,500 Nob Hill Grind and Overlay $551,032 Project Type Description ID # Cost Estimate Status Public Buildings & Facilities Upgrades City Hall & Parking lot (Detail Below) 1783 $450,000 on-going 8th St & A Parking Lot 2nd St & B Parking Lot $3,500 $134,800 Remodel in Basement Elevator Upgrade $30,000 HVAC improvements $16,200 $5,000 Major Maintenance (windows, painting) Remove Asbestos -3rd & 4th Floor $200,000 Security Improvements $28,000 Install Back Flow Valve -Fire Suppression Sys. $7,500 $25,000 Emergency Generator System Expansion City Hall Sidewalks 1815 City Hall Water System 1386 1460 Airport Improvement Chesterley Park & Ride Lot 1547 Public Works Parking Lot Rehab 2184 $1,000,000 $50,000 study Westside Service Center Ca • itol Theatre 2231 Fire Dept Ca 'dal Projects Only (2008 allocation) Debt Service- Remodel of WV Fire Station 92 $250,000 $75,000 Annual Remodel of Airport Fire Station 94 $600,000 Nob Hill Station 95 Storage Shed $27,000 N Front Street Station 91 HVAC Replacement $18,000 Debt Service not otherwise listed above $161,215 Contingency $100,000 • • OTable 2: REET1 and REET2 Capital Program Fund Summary 2007 2008 Actual Estimate Real Estate Excise Tax First Quarter (REET 1) Revenue: Real Estate Excise Tax Other Revenues Total Revenues $1,056,417 $161,820 $900,000 $135,000 $1,218,237 $1,035,000 Expenditures: Debt Service $229,297 $242,702 Parks Capital Transfer $200,000 $250,000 Fire Capital Transfer $200,000 $250,000 Electrical Engineering Services $0 $10,000 City Hall Renovation $143,564 $450,000 Nob Hill Grinding and Overlay $0 $550,000 Total Expenditures $772,861 $1,752,702 Excess of Revenue over (under) expenditure Beginning Fund Balance Ending Fund Balance $445,376 ($717,702) $1,582,432 $2,027,808 $2,027,808 $1,310,106 Real Estate Excise Tax Second Quarter (REET 2) Revenue: Real Estate Excise Tax $1,056,417 $900,000 Federal Grant for Nob Hill Bridge $0 $500,000 Other Revenues $52,500 $40,000 Total Revenues $1,108,917 $1,440,000 Expenditures: Street Maintenance Supplies $303,822 $400,000 Debt Service $30,138 $161,215 Street Equipment /Replacement $170,000 $50,000 Match for Nob Hill Blvd, 68th to 80th Ave $130,000 $0 Match for Robertson School Sidewalk $103,000 $0 Fiesta Foods $27,000 $0 Safety Flashers $31,921 $0 40th Ave Roadway Repairs $1,500 $0 Nob Hill Bridge Repair $0 $1,000,000 16th Ave & Washington Reconstruction $305,000 Contingency $100,000 Total Expenditures $797,381 $2,016,215 Excess of Revenue over (under) expenditure $311,536 ($576,215) Beginning Fund Balance $961,616 $1,273,152 Ending Fund Balance $1,273,152 $696,937 • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of August 4, 2008 ITEM TITLE: Conduct a Public Hearing and Approve the First and Second Quarter Percent Real Estate Excise Tax (REET1 and REET2) Project funding, consistent with and Amending the Yakima Capital Facilities Element of the Comprehensive Plan, as authorized by RCW 36.70A.130 SUBMITTED BY: Bill Cook, Director of Community & Economic Dev. Chris Waarvick, Director of Public Works Cindy Epperson, Deputy Director of Accounting & Budgeting Jeff Cutter, Senior Assistant Attorney Brett Sheffield, Chief Engineer Joan Davenport, Supervising Traffic, Engineer CONTACT PERSON: Bill Cook, Director of Community & Economic Development SUMMARY EXPLANATION: The City of Yakima collects revenue from the First and Second Quarter Real Estate Excise Tax (REET1 and REET2), as provided for in RCW 82.46.010 and RCW 82.46.035. The use of these funds is constrained to projects properly identified in the Capital Facilities Element of the Comprehensive Plan. To ensure consistency with the use of REET funds and the Capital Facilities Element, an amendment to the Yakima Capital Facilities Element of the Comprehensive Plan as authorized by RCW 36.70A.130, is hereby submitted including an update of the Real Estate Excise Tax Capital Program. The attached Resolution amends the Capital Facilities Plan acknowledging the update of the Real Estate Excise Tax Capital Program. The attached Report provides additional information about the background and status of the Authority to Expend REET1 and REET2 Funds. Resolution _X Ordinance _ Other Report on Real Estate Excise Tax Capital Program Update Funding Source APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt Resolution amending Yakima Capital Facilities Plan BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: