Mountlake Terrace Civic Center Update. January 12, 2012
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1 Mountlake Terrace Civic Center Update January 12, 2012
2 INTRODUCTION Purpose of tonight s update and discussion: Provide the City Council an update on the Civic Center project Continue discussion on policy considerations Identify timelines and next steps
3 CITY COUNCIL GOAL Develop and Implement a Strategy to address the City s Aging Public Facilities Implement Civic Center plan that incorporates public facilities not only as an anchor for the community, but also as a catalyst for downtown redevelopment and revitalization. Develop as a key priority, financing options for voter-consideration to implement Civic Center plan including opportunity for other unfunded capital needs (i.e., new Recreation Pavilion, parks, open space, etc.). Review Civic Center plan every 6 months
4 CITY COUNCIL GOAL Age of Major Public Facilities Civic Center 1962 (demolished in 2010) Fire Station # (demolition scheduled for 2012) Recreation Pavilion 1968 Operations Facility 1985 Library 1988 Ballinger Lake Clubhouse 1989 Police Station 1991 New Fire Station # New Fire Station # (constructed by Fire District #1)
5 CIVIC CENTER HISTORY 1961: Civic Center constructed ( th Avenue W) Built to serve population of 5,000 Original City Hall Library Police Station Fire Station : Key safety, code and structural deficiencies identified 2003: City Council determined that Civic Center building had reached the end of its useful life and should be replaced Jun 2008: City Council appoints Civic Facilities Advisory Task Force (CFAT) to seek input from the community about future facilities, which occurs between Jun 2008 and Jul 2009 Jul 2008: Ceiling collapse
6 CIVIC CENTER HISTORY Jul 08-Jan 09: Temporary City Hall Options evaluated 1. Remodel & Remain at old City Hall 2. Lease job Trailers 3. Purchase Office Space 4. Lease Office Space Jan 2009: Interim City Hall Lease approved (Jul 2009-Jul 2014 with option for 3 additional years) th Street SW, Suite 200
7 CIVIC CENTER HISTORY Mar 2009: Resolution #673 approving Civic Center Project Location of the Civic Center th Avenue West City offices (including new Police Station) 47,694 square feet Community/Senior Activities Center 8,500 square feet Level of Environmental Design LEED Silver Cost Estimate $37,500,000 Revenue Source Voter-Approved Property Tax Levy Financing Tool 30-year Municipal Bond Jul 2009: Resolution #677 approving future improvements for Recreation Pavilion, Lake Ballinger Golf Course and Fire Station #18 Mar 2010: Civic Center demolished May 2010: Adoption of an ordinance providing for the submission to the voters Proposition #1 authorizing the City to issue general obligation bonds for the purpose of constructing a Civic Center Nov 2010: General election - Proposition #1 supported by 47% of voters and opposed by 53%
8 2010 BOND PROPOSITION
9 RECENT CITY COUNCIL ACTIONS Dec 2010: Post-election telephone survey showed residents approved of the project, but not the cost Keeping the proposal on the table, but not vote again on the same package given current economic conditions; Preference to see a scaled back version of the Civic Center; Most voters were unaware of a campaign to help pass the measure; Residents got information primarily from the city newsletter and voters pamphlet more outreach would have provided more people with early information; Residents want to know more details about the overall project cost or what will be built under a new proposal; and If the project goes to ballot again, local volunteers should consider engaging a professional to run a YES campaign.
10 RECENT CITY COUNCIL ACTIONS Dec 2010: City Council directed that a less expensive project be developed without changing scope Mar 2011: City Council discussion at annual planning retreat Apr 2011: City Council continued discussion Jun 2011: City Council half-day retreat Continue communication and outreach to community regarding Civic Center options Develop financing options (capital bond & levy lid lift) Use of focus groups and community satisfaction survey to ascertain community s level of support Timing of placing ballot measure before the voters Impact of Regional Fire Protection Service Authority (RFA)
11 RECENT CITY COUNCIL ACTIONS Jun 2011: Focus Groups Jul 2011: Results presented to City Council Results similar to post-election survey Voters approved of the project, though they too thought it was too expensive and needed to be scaled back Two financing options were presented 1. a voter-approved Property Tax Lid Lift (e.g., 6 years ) to continue renting the interim City Hall; or 2. put the reduced-cost Civic Center measure ($25 million, rather than $37.5 million) on the ballot as early as 2012 to take advantage of the favorable bidding climate Interim City Hall location is inconvenient and renting is wasteful Prefer to own than to rent Unaware that the city does not have the finances to continue renting interim office space beyond 2014 Discussed how downtown revitalization is a priority City should set a good example in maintaining its own facilities to attract new businesses into our downtown
12 REVISED CIVIC CENTER PLAN
13 REVISED CIVIC CENTER PLAN
14 REVISED CIVIC CENTER PLAN
15 FUTURE BOND PROPOSITION Why does this project require voter approval? City s financial capacity to fund projects of this size does not exist. The majority of City funds are reserved and dedicated for specific purposes and cannot be used to construct a new Civic Center. The Mountlake Terrace community has a long history of funding large facility projects through voter-approved tax levies (e.g., old Civic Center (1960); Recreation Pavilion (1964); Evergreen Playfield (1975); Sno-Isle Library District (1986); and Police Station/Fire Department Equipment (1988)). What is a bond levy? A bond levy is a financing tool that local governments use to fund projects. The City would give the investors bonds, which are written commitments to repay the loan over 30 years with interest. The loan is repaid from additional property taxes that property owners would pay for 30 years. What interest rates and term are assumed? Interest rates are assumed to be very conservatively estimated -- current rates plus 1.25% to 1.50% (5.2% to 5.6%). The term is 30 years.
16 FUTURE BOND PROPOSITION Are exemptions available? Low-income seniors may qualify to be exempt from the bond levy altogether. Senior citizens, 61 and older, or disabled persons with a combined income (from all sources) of less than $35,000 a year may be exempt from all or part of special levy taxes. Could the amount be less? The impact to the average homeowner will be less if construction bids are lower than estimated and the City spends less than the $25 million. These amounts will also be reduced as new development occurs in Mountlake Terrace over the next several years and additional property owners of redeveloped properties pay into the levy. When will this project happen? Design would occur immediately following approval by the voters with construction to follow about one year after design.
17 FINANCING OPTIONS Option 1: Property Tax Levy Lid Lift (6 years ) Financing ($500,000 per year) to remain in Interim City Hall and repay line-of-credit Levy lid lift can transition to fund new Civic Center in the future Allows time to evaluate financial impact the formation of a Regional Fire Protection Service Authority (RFA) may have by applying the dollars the City saves in no longer providing fire/ems services to the cost of the Civic Center Option 2: Property Tax Levy Lid Lift (6 years ) Financing ($600,000) to remain in Interim City Hall and repay line-of-credit, together with some already prioritized aging facility and park improvements Levy lid lift can transition to fund new Civic Center in the future Allows time to evaluate financial impact the formation of a Regional Fire Protection Service Authority (RFA) may have by applying the dollars the City saves in no longer providing fire/ems services to the cost of the Civic Center Option 3: Capital Bond Proposition (adopted scope) Bond measure ($25 million) to build new Civic Center
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23 $211 $217 $220 $247 $163 $299 $322 $256 $258 $366 $376 $381 $390 $406 $473 $392 $613 $817 $755 COMBINED PROPERTY & SALES TAX PER CAPITA Numbers = Total Property Tax per Capita Sales Tax per Capita 1,600 1,400 1,200 1,
24 PROPERTY TAX
25 POLICY CONSIDERATIONS 1. Is doing nothing an option? 2. How is the BAN to be repaid since the voters did not approve Proposition #1 in November 2010? 3. How will the City finance the interim City Hall beyond July 2014 (e.g., impact to General Fund)?
26 POLICY CONSIDERATIONS 4. Should the City Council first proceed with a Property Tax Levy Lid Lift (requires 50% approval) to repay the BAN and interim City Hall costs, which could then transition to partially fund a new Civic Center as part of a future capital bond when the economy improves? a. Should the Property Tax Levy Lid Lift option include other projects such as already prioritized aging facility needs (particularly Recreation Pavilion, Library, Police Station & Ballinger Lake Golf Course Clubhouse) and park improvements? b. How does the Regional Fire Protection Service Authority (RFA) process impact the decision-making process? c. How could a Metropolitan Park District (MPD) process impact the decision-making process?
27 POLICY CONSIDERATIONS 5. Should the City Council proceed with a $25 million Capital Bond Proposition (requires 60% approval) that shows the community s preference for a scaled back version or should the City Council start over and develop a lower cost option (e.g., similar 2004 Civic Center Plan that excludes new police station & community/senior center) or higher cost option? 6. If/When should the City Council place a ballot initiative before the voters for consideration again? 7. Given there is awareness of the Civic Center project -- but low awareness of project details and a mistaken sense that City buildings are in decent shape with no great urgency to replace anything -- should the City continue its outreach efforts to the community?
28 SCHEDULE OPTIONS 2012 Election and Resolution Due Dates (RCW 29A , 321) 2012 Dates of Election Last Day to Deliver Resolution February 7, 2012 December 23, 2011 April 24, 2012 March 9, 2012 August 21, Primary May 29, 2012 November 6, General August 14, 2012
29 RECOMMENDATION Review and evaluate key policy issues (page 15) to include advantages and disadvantages of each option. (Winter/Spring 2012) Review 2011 community satisfaction survey results to obtain a sense of the community s level of support and to determine the appropriate amount of financing to seek from the community. (February 2, 2012) Select a financing option and project scope as preferred alternative for further review and consideration; (Spring 2012) Adopt a preferred financing alternative via City Council Resolution. (Spring/Summer 2012) Consider placing the preferred alternative on a future ballot for voter consideration (to be determined) Continue communication and outreach to community (e.g., City Happenings, social media, new webpage, development of standard presentation similar to City Finances 101). (Ongoing)
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