OF THE SELECT BUDGET COMMITTEE.
WILL THE CLERK PLEASE CALL THE
ROLE.
>> COUNCIL MEMBER HERBOLD.
COUNCIL MEMBER GONZALEZ.
COUNCIL MEMBER JUAREZ.
COUNCIL MEMBER GONZALEZ.
COUNCIL MEMBER HERBOLD.
COUNCIL MEMBER JUAREZ.
COUNCIL MEMBER LEWIS.
>> PRESENT.
>> COUNCIL MEMBER MORALES.
>> HERE.
>> COUNCIL MEMBER PEDERSEN.
>> HERE.
>> COUNCIL MEMBER SAWASN.
>> COUNCIL MEMBER STRAUSS.
>> PRESENT.
>> CHAIRMAN MOSQUEDA.
>> PRESENT.
>> FIVE PRESENT.
>> THANK YOU, COLLEAGUES AND
THANK YOU MADAM CLERK, FOLKS
FROM IT AND STAFF FOR MAKING
THE COMMITTEE MEETING POSSIBLE
AS WE HEAR FROM OUR ADDITIONAL
COLLEAGUES THAT WILL BE TALKING
THIS IMPORTANT WE WILL
ANNOUNCEEM THEM.
THE CITY OF SEATTLE ISSUED A
EMERGENCY PROBING CLAMMATION ON
MARCH 3rd, 2020 AND THERE HAS
BEEN A STAY AT HOME ORDER
THROUGH MAY 4th.
TO COMPLY WITH THE
RECOMMENDATIONS AND FOR THE
SAKE OF THE SAFETY OF OUR
EMPLOYEES WE ARE MEETING
REMOTELY.
THE PURPOSE OF THE CONVERSATION
TODAY AND THE PURPOSE OF THE
CONVERSATION IN OUR COMMITTEE
IS TO HAVE A DISCUSSION ABOUT
LEGISLATION RELATED TO
EMERGENCY ASSISTANCE IN 2020 AS
FOLKS ARE RESPONDING TO THE
2020 COVID CRISIS.
BOTH THE PUBLIC HEALTH CRISIS
AND THE ECONOMIC CRISIS THAT
HAS ENSUE.
THE CONVERSATION WILL BE A
CONTINUATION OF LAST WEEK'S
ATTORNEY.
IT WILL FOCUS ON THE ABILITY
FOR US TO RAISE REVENUE TO PAY
FOR THE 2020 EMERGENCY FUNDS
THAT HAVE BEEN PROPOSED IN THE
LEGISLATION THAT IS BEING
DISCUSSED.
AND INTRODUCED BY COUNCIL
MEMBER SAWANT AND MORALES.
THIS IS LARGELY A CONTINUATION.
WE HAVE ADDED A COMMUNITY PANEL
AFTER PUBLIC COMMENT TO PROVIDE
CONTEXT ON THE IMMEDIATE IMPACT
AND THE REALITY OF THE BUDGET
CRISIS THAT HAS BEEN
EXACERBATED BY COVID AND FOR
SMALL BUSINESSES AND HEALTH
CARE PROVIDERS.
AGAIN, WE WANT TO THANK ALL OF
THE FOLKS WHO HAVE PARTICIPATED
IN OUR COMMUNITY CONVERSATIONS
AND ENGAGED BOTH THE E-MAIL,
PHONE AND PUBLIC COMMENT IN
LAST WEEK'S MEETING.
WE HEARD FROM WORKERS, SMALL
BUSINESSES, AND THE COMMUNITY
AT LARGE AS WE TALKED ABOUT HOW
TO PROVIDE IMMEDIATE ASSISTANCE
AND TRY TO REPLENISH THE FUNDS
FOR THE IMMEDIATE ASSISTANCE.
THIS IS A CONVERSATION FOR US
TO PUT INTO CONTEXT THE REALITY
THAT WE HEARD FROM DIRECTOR BEN
NOBLE LAST WEEK THAT
ARTICULATED THE SITUATION THAT
WE MAY FACE UP TO A $299
MILLION BUDGET SHORTFALL.
I ENCOURAG FOLKS TO REVIEW THE
SLIDES PRESENTED LAST WEEK.
AND WANT TO ENSURE THAT FOLKS
KNOW THAT WE ARE FOLLOWING UP
TO GET ADDITIONAL DETAILS ON
THE PROJECTED REVENUE
SHORTFALL.
YOU ALSO HEARD THIS MORNING OR
MONDAY MORNING AT MORNING
BRIEFING ABOUT THE POTENTIAL
ABILITY FOR US TO USE FEDERAL
DOLLARS AND STATE DOLLARS WHICH
WE KNOW WILL NOT BE ENOUGH.
AND IT COULDN'T COME QUICKER.
BUT WE WANT TO MAKE SURE THAT
WE ARE FOLLOWING UP AND
COMPLIMENTING THOSE FEDERAL AND
STATE RESOURCES WITH ADDITIONAL
SUPPORT IN 2020 FOR THOSE IN
NEED OF FOOD AND HOUSING
SECURITY.
THANK YOU EVERYBODY WHO HAS
LOGGED IN TODAY FOR PUBLIC
COMMENT.
AND WE WILL HAVE A FEW COMMENTS
ABOUT THE PUBLIC COMMENT
PROCESS.
BUT FIRST I WOULD LIKE TO MOVE
THE AGENDA BE ADOPTED.
IF THERE IS NO OBJECTION, THE
AGENDA WILL BE ADOPTED.
HEARING NO OBJECTION, THE
AGENDA IS ADOPTED.
WE ARE ABOUT TO MOVE INTO
PUBLIC COMMENT AT THIS TIME.
WE WILL OPEN REMOTE PUBLIC
COMMENT.
PLEASE BE PATIENT AS WE LEARN
TO OPERATE THIS NEW SYSTEM IN
REAL TIME.
AS WE MOVE FORWARD, WE WILL
CONTINUOUSLY LOOK FOR WAYS TO
FINE-TUNE THIS PROCESS EXAMINE
HOPEFULLY ADD NEW FEATURE
THAT'S WILL PROVIDE ADDITIONAL
PARTICIPATION IN COUNCIL
MEETINGS AND DISCUSSIONS.
>> I JUST WANT TO DO.
>> COUNCIL MEMBER SAWANT, WE
HEAR YOU AND WE WILL
ACKNOWLEDGE TORE THE RECORD
THAT WE ARE HERE.
I WILL TAKE A PAUSE REAL QUICK.
ARE THERE ANY ADDITIONAL
COUNCIL MEMBERS THAT HAVE
JOINED US?
OKAY.
THANK YOU COUNCIL MEMBER
SAWANT.
>> I HAVE BEEN ABLE TO FINALLY
LOG ON AFTER SOME TECHNOLOGCAL
DIFFICULTIES.
>> UNDERSCORING OUR ONGOING
COMMITMENT TO MAKE SURE THAT
PEOPLE CAN PARTICIPATE IN THE
PROCESS, THANK YOU COUNCIL
MEMBER GONZALEZ FOR BEING HERE.
I WANT TO ISSUE AN APOLOGY FOR
THE VIEWING PUBLIC, ANYONE WHO
CALLED AND TRIED TO LOG IN THIS
MORNING TO SIGN UP FOR PUBLIC
COMMENT.
WE WANT TO ACKNOWLEDGE THAT
THIS MORNING AT 8:00 A.M.
THERE WAS A TYPO AND THERE WAS
A SIGN THAT SAID COUNCIL
COMMITTEE MEETING APRIL 27th AT
2:00 P.M.
INSTEAD OF THIS MORNING'S
BUDGET MEETING.
WE APOLOGIZE FOR THAT ERROR.
THE CLERK'S OFFICE IMMEDIATELY
WAS NOTIFIED AND FIXED THE
ERROR AS SOON AS THEY COULD.
AND LET PEOPLE KNOW THEY HAD IT
SUCCESSFULLY SIGNED UP.
THE FORMER ERROR CAUSED
CONFUSION.
AND THIS TYPO HAS BEEN
CORRECTED.
WE WILL MAKE SURE THAT FOLKS
WHO DID NOT GET A CHANCE TO
SIGN UP CONTINUE TO E-MAIL US.
I HEAR A LITTLE BIT OF.
>> YEAH.
CAN WE ASK THAT COUNCIL MEMBER
JUAREZ PUT HERSELF ON MUTE.
>> THANK YOU COUNCIL MEMBER
JUAREZ.
>> YEAH.
IF THE IT TEAM COULD -- THANK
YOU.
COUNCIL MEMBER JUAREZ, WE
APPRECIATE YOU JOINING US.
THANK YOU SO MUCH FOR BEING
HERE.
SO WITH THAT, WE ARE GOING TO
MODERATE THE UPCOMING PUBLIC
COMMENT PERIOD.
WE'RE GOING TO GO FOR AT LEAST
20 MINUTES AND THEN WE WILL
CONSIDER EXTENDING IT.
COUNCIL MEMBERS LAST WEEK WE
TRIED TO DO A CHIME AT 50
SECONDS.
WE DID HEAR THAT WAS A LITTLE
BIT OF AN INTERRUPTION FOR OUR
COLLEAGUES AND THE COMMUNITY
WHO WAS TRYING TO PROVIDE
PUBLIC TESTIMONY.
SO YOU'RE GOING TO SEE THIS
TIMER ON THE SCREEN.
IT WILL GIVE YOU ONE MINUTE TO
SPEAK AND WE ASK THAT YOU WRAP
UP YOUR COMMENTS WITHIN ONE
MINUTE.
YOUR LINE WILL BE MUTED AFTER A
MINUTE AND FIVE SECONDS.
SO WE ASK THAT YOU SUMMARIZE
YOUR COMMENTS SO YOU DON'T GET
CUT OFF.
WE WANT TO ALSO ACKNOWLEDGE
THAT THE WEB PAGE PROVIDES A
LINK TO TODAY'S AGENDA.
ALL MATERIALS WILL BE LISTED ON
THE LINE.
WHEN YOU HEAR YOUR NAME CALLED,
YOUR MIKE WILL BE UNMUTED.
PLEASE GO AHEAD AND BEGIN YOUR
PUBLIC TESTIMONY, BEGINNING
WITH YOUR NAME.
AFTER YOU HEAR THE PROMPT YOU
HAVE BEEN UNMUTED.
PLEASE BEGIN SPEAKING AND DO
TRY TO WRAP UP AT ONE MINUTE,
OTHERWISE UNFORTUNATELY WE WILL
HAVE THE LINE MUTED AT ONE
MINUTE AND FIVE SECONDS.
THANK YOU FOR SEATTLE CHANNEL
TO PROVIDE THE OPPORTUNITY FOR
FOLKS TO SEE AND HEAR ALL OF
THE PUBLIC TESTIMONY TODAY AND
OUR UPCOMING CONVERSATION.
IF YOU DO GET A CHANCE TO
SPEAK, PLEASE DISCONNECT FROM
THE LINE AND CONTINUE TO WATCH
US ON SEATTLE CHANNEL OR THE
WEBSITE STREAMING SO YOU CAN
CONTINUE WITH THE CONVERSATION.
I APOLOGIZE FOR FOLKS IN
ADVANCE.
WE HAVE A NUMBER OF PEOPLE WHO
HAVE SIGNED UP FOR PUBLIC
TESTIMONY.
WE WILL GET TO AS MANY PEOPLE
AS WE CAN.
AGAIN, IF YOU ARE NOT ABLE TO
STAY ON THE LINE WITH US OR IF
YOU HAVE A NUMBER THAT ALLOWS
-- DOES NOT ALLOW FOR US TO GET
THROUGH TO YOU TODAY, E-MAIL
US.
AND EACH ONE OF OUR OFFICES IS
CONTINUING TO OPERATE A FULL
STAFF.
WE HAVE PEOPLE ANSWERING THE
LINES IN OUR OFFICES AS WELL.
AT THIS TIME WE WILL OPEN
PUBLIC COMMENT WITH A 20 MINUTE
PUBLIC COMMENT PERIOD.
AND THE FIRST THREE SPEAKERS ON
THE LIST IS LAWRENCE LEONARD,
ALICIA LEWIS AND DON.
LAWRENCE LEONARD, YOUR LINE
SHOULD BE UNMUTED.
PLEASE GO AHEAD.
>> GOOD MORNING.
THANK YOU SO MUCH, COUNCIL
MEMBERS.
MY NAME IS LAUREN.
I'M INVOLVED WITH MULTIPLE
NONPROFITS HERE. OVER 800
BUSINESSES OPERATING WITH
AROUND $7 MILLION OR MORE IN
INCOME.
AND INTERESTINGLY THE COST TO
IMPLEMENT THIS BY MY CALCULATE
BASED ON WHAT WAS PROVIDED IS
$7 MILLION AS WELL.
AND WHAT THAT IS GOING TO DO IS
MAKE BUSINESSES HAVE TO MAKE
SOME HARD CHOICES ABOUT WHETHER
OR NOT THEY CAN OPEN, REMAIN
OPEN AND HOW MANY EMPLOYEES
THAT THEY CAN BRING BACK IN.
IT IS ALSO CREATING ONE MORE
BARRIER TO ENTRY FOR BRINGING
BUSINESSES INTO SEATTLE.
LAST YEAR I WAS INVOLVED WITH A
425 BUSINESS STARTUP IN
NEIGHBORING CITIES AND THEY
WERE LOOKING AT LOWERING
BARRIERS TO BRING IN.
I BELIEVE THIS WILL HAVE A
SEVERE IMPACT ON --
>> THANK YOU VERY MUCH,
LAWRENCE.
FOLLOW UP BY E-MAIL.
>> ALICIA LEWIS.
>> MY NAME IS ALICIA LEWIS.
I'M A TAX AMAZON ACTIVIST.
I WANT TO SPEAK ABOUT THE
MAYOR.
HE RECEIVED $350,000 IN
CORPORATE TAX MONEY FROM AMAZON
WHEN SHE WAS ELECTED.
SHE IS NOT NEUTRAL ON THIS
ISSUE AND HER ARGUMENTS ABOUT
THIS TAX SHOULD BE TAKE WENT A
GRAIN OF SALT.
USE BE INNER FUND LOANS TO
PROVIDE CASH ASSISTANCE TO
WORKING FAMILIES IS ROBBERY.
AS ALL COUNCIL MEMBERS ARE
AWARE, THE $314 MILLION IN
FUNDS AVAILABLE ARE A YEAR END
BALANCE THAT WOULDN'T IMPACT
ANY EXISTING PROJECTS OR DELAY
FUTURE ONES.
THIS ACCUSATION IS NOT ONLY
UNTRUE BUT BAD FAITH IN AN
ATTEMPT TO CAPTURE MOVEMENT OFF
GUARD ON TECHNICALITY.
WE PREVENTED AMAZON AND OTHER
LARGE CORPORATIONS FROM BUYING
THIS CITY COUNCIL ELECTIONS.
AT THAT TIME THE COUNCIL
MEMBERS CAME OUT PUBLICLY
CONDEMNING AMAZON IN THE
ELECTIONS.
I WANT TO THANK BOTH OF YOU FOR
TAKING A CLEAR STAND WHEN IT
WAS NEEDED.
THAT FIGHT WAS NOT FOR NOTHING.
STAND WITH THE PEOPLE OF
SEATTLE AND PASS A STRONG --
>> THANK YOU VERY MUCH.
DON.
>> COUNCIL MEMBERS, GOOD
MORNING.
MY NAME IS DON BLAKELY WITH THE
DOWNTOWN SEATTLE ASSOCIATION.
I'M CALLING TO EXPRESS OUR
STRONG OPPOSITION TO THE TAX ON
JOBS.
ON THE FRONT LINES OF THIS
ECONOMIC CRISIS WITH 50,000
JOBS OF THOSE AT RISK.
WE ARE ON THE EVE OF A MAJOR
ECONOMIC DOWNTURN.
WE NEED TO FOCUS ON GETTING OUR
LOCAL JOBS AND ECONOMY BACK
ONLINE.
WORKING WITH THE FEDERAL
GOVERNMENT TO CONNECT LOCAL
BUSINESSES TO MUCH NEEDED AID.
WE NEED TO YOU FOCUS ON
RECOVERY AND NOT A NEW TAX ON
JOBS.
THANK YOU FOR YOUR TIME THIS
MORNING.
>> THANK YOU, DON.
>> I'M EXCITED TO SEE MY
COUNCIL MEMBER IN THIS FIGHT.
ALONG WITH THOUSANDS OF OTHER
SEATTLEITES.
I'M HERE TO SPEAK ON THE ATTACK
ON OUR MAYOR.
SHE IS OPPOSED TO THE EMERGENCY
CLAUSE IN THIS BILL YET I WOULD
CHALLENGE ANYONE HERE TO
IDENTIFY A MORE ACUTE
EMERGENCY.
THE VIRUS IS KILLING OUR
NEIGHBORS.
THE RECESSION IS PUTTING
WORKING FAMILIES IN DIRE
STRAITS AND THE HOUSING
EMERGENCY IS MORE EMERGENT THAN
EVER.
STAND BY THE EMERGENCY CLAUSE.
SHE HAS BEEN VOCAL I CANNOT DO
ATTITUDE.
SHE HAS LIED ABOUT HOW LONG IT
WOULD TAKE TO COLLECT THIS TAX.
HOW DO I KNOW SHE IS LYING.
IN MARCH SHE SAID THE PAYROLL
TAX COULD BE IMPLEMENTED IN SIX
MONTHS.
THAT INCLUDED A POISON PILL.
NOW THE EXACT SAME TAX
MECHANISM WOULD IMPACT THE
PROBLEM -- IT IS SHOCKING TO
SEE EVEN A CORPORATE POLITICIAN
BE SO.
>> YOU SHOULD GO AHEAD, PLEASE.
>> I'M WITH THE ETHNIC
COALITION.
AT A TIME WHEN THE LOCAL
ECONOMY IS REALLY IMPACTED BY
THE CORONAVIRUS OUTBREAK.
OUR CITY COUNCIL SHOULD BE
FOCUSED ON DOING EVERYTHING
THEY CAN TO HELP OUR LOCAL
BUSINESSES RECOVER, REOPEN AND
REHIRE.
LARGE AND SMALL BUSINESSES
COEXIST AS PART OF THE SAME
ECONOMIC ECOSYSTEM.
THE JOBS PACT WILL HAVE A
RIPPLE EFFECT THROUGHOUT THE
BUSY ECONOMY, PLACING A TAX
BURDEN ON LARGE BUSINESSES WILL
ONLY INCREASE THE CHALLENGES
FOR SMALL BUSINESSES.
STRAINING THE ECOSYSTEM EVEN
FURTHER.
I URGE CITY COUNCIL TO PLEASE
OPPOSE THIS BILL.
THANK YOU.
>> THANK YOU, TAYLOR.
EVA METS.
>> HI.
MY NAME IS EVA METS.
I'M A RENTER IN DISTRICT 2.
THOUSANDS OF PEOPLE HAVE GOTTEN
ACTIVE IN THE FIGHT TO ATTACK
AMAZON AT RALLIES, MARCHES,
TOWN HALLS AND CONFERENCES.
AND IN THIS CRISIS CITY COUNCIL
HAS A DUTY TO ACT MORE THAN
EVER.
WE WANT TO THANK MORALES AND
TAKE A SECOND CHANCE TO BE ON
THE RIGHT SIDE OF HISTORY.
CITY COUNCIL FAILED TO ACT.
WE'RE PREPARED TO TAKE OUR TAX
DIRECTLY TO VOTERS AND WE HAVE
COLLECTED THOUSANDS OF
SIGNATURES WITHIN A FEW WEEKS.
SMALL BUSINESSES.
RYAN SMITH, YOU SHOULD BE
UNMUTED.
>> THANK YOU FOR THE
OPPORTUNITY TO COMMENT TODAY.
MY NAME IS RYAN SMITH.
MY LOCAL FAMILY OWNED COMPANY
HAS OVER 250 TENANTS ALL
SUFFERING SIGNIFICANT ECONOMIC
CHALLENGES RIGHT NOW.
THE MAJORITY OF OUR TENANTS ARE
SMALL BUSINESSES WHO EMPLOY
THOUSANDS OF PEOPLE WITH LIVING
WAGE JOBS.
AS I REGULARLY TALK WITH OUR
TENANTS ABOUT RENT RELIEF
SOLUTIONS DURING THIS CRISIS, I
CONTINUE TO HEAR UNANIMOUS
DISAPPOINT IN OUR CITY COUNCIL
FOR OPPOSING THIS TAX ON OUR
BUSINESSES.
I HAVE YET TO HEAR FROM A
SINGLE BRIDGE LARGE OR SMALL
WHO SUPPORTS THIS TAX.
ALTHOUGH IT IS A TAX ON BIG
BUSINESS, IT WILL NEGATIVELY
IMPACT ALL OF THE BUSINESSES IN
OUR LOCAL ECONOMY.
THE BEST ANALOGY THAT I CAN
THINK OF IS TO DESCRIBE THE
SITUATION AS AKIN TO PROPOSING
THAT WE BUILD A WALL AROUND OUR
CITY AND TELL PEOPLE TO GROW
YOUR BUSINESS ELSEWHERE.
THANK YOU FOR YOUR TIME TODAY.
>> THANK YOU.
>> SHELTERING OUR DISTRICT 2
AND THE WOMEN WITH FOOD AND
SUPPLIES.
SUPPORT THIS SMALL BUSINESS
TAX.
FOR THE MAJORITY OF THIS COVID
HAS ENDED JUSTICES OF OUR
SYSTEM OF A SMALL MINORITY WITH
AN OBSCENE AMOUNT OF WEALTH AND
BEZOS HAVING $140 BILLION AND
THE MAJORITY OF THE REST OF US
AND THAT INCLUDES THOSE WHO ARE
HOMELESS AND WORKING SINGLE
MOMS BARELY MAKING RENT AND
THOSE LIVING ON THE EDGE.
INMATES DYING IN PRISON.
WE NEED THE BUSINESSES TO START
RETURNING RESOURCES TO OUR
COMMUNITY THAT THEY HAVE TAKEN
SO MUCH FROM.
SUPPORT THIS LITTLE BIG
BUSINESS TAX.
>> THANK YOU, SUE.
THE NEXT SPEAKER IS CARRY
LAFFERTY.
>> MY NAME IS CARRIE LAFFERTY.
I LIVE IN NORTH SEATTLE.
I'M A SMALL BUSINESS OWNER IN
THE FREMONT NEIGHBORHOOD.
I'M A HEALTH CARE PROVIDER.
AND A CHINESE MEDICINE
PRACTITIONER.
I WANT YOU TO LOOK AT THIS FROM
THE ENERGY IN THE WORLD OF YING
AND YONY.
YONG IS OUT OF CONTROL.
THE OBSCENITY OF WEALTH IS JUST
OUT OF CONTROL.
WE NEED SOME HEART CENTERED
YING ENERGY THAT LIVES IN EVERY
ONE OF US.
LIKE LET'S JUST LOOK AT WHO IS
SURVIVING IN THIS.
IT IS AMAZON.
IT IS THESE BIG COMPANIES.
AND MY BUSINESS IS GOING TO BE
READY TO GO OUT OF BUSINESS
SOON BECAUSE I CAN'T AFFORD TO
PAY RENT.
AND IT IS TIME TO HAVE THIS BE
MORE EQUITABLE, TO BRING THIS
BALANCE BACK.
IT IS ONLY HUGE BUSINESS THAT'S
ARE BEING INTACT.
THE REST OF THIS IS
MISINFORMATION AND I'M
EXTREMELY DISAPPOINTED IN
DURKAN'S COMMENTS.
>> THANK YOU VERY MUCH.
THE NEXT THREE PEOPLE ARE
LOGAN, STEVE AND STEPHANIE.
I HOPE YOU WILL NOT ONLY VOTE
FOR THIS TAX IN FULL WITHOUT
WATERING IT DOWN BUT JOIN
COUNCIL MORALES IN PUSHING FOR
IT TO PASS.
THE AMAZON TAX WILL CREATE
10,000 UNION WAGE JOBS OVER THE
NEXT DECADE AND 30,000 JOBS
OVER THE NEXT DECADE.
UNEMPLOYMENT RATES WERE NEARLY
A THIRD OF THE WORKFORCE.
DURING THIS BOOM PRIVATE
MARKETS FAILED TO PROVIDE
AFFORDABLE HOUSING FOR US.
AND THE PRESENT MARKET WILL
FAIL TO PROVIDE US FOR WORK
DURING THE BOOMING BUST.
THE CRISIS WILL HAVE TO BE PAID
FOR AND WE'RE IN A WORLD
DIVIDED BETWEEN RENTERS AND
LANDLORDS AND THE REST OF US
ARE WORKING OUR FINGERS TO THE
BONE.
IT IS REDUCE TODAY UNION
FAMILIES OR THE EXTREMELY
WEALTHILY THAT WILL PROFIT OFF
OF OUR LABOR.
>> THANK YOU, LOGAN.
>> STEVE, YOU SHOULD BE
UNMUTED.
>> I'M STEVE.
I'M TESTIFYING FOR DEBORA
JUAREZ'S DISTRICT IN FAVOR OF
THE TAX.
I'M A MEMBER OF THE WORKING
FAMILIES PARTY.
I FOUNDED A NONPROFIT.
SINCE RETURNING I HAVE WORKED
FOR THE FAITH COMMUNITY FOR
JUSTICE.
WASHINGTON PAYS RELATIVELY FEW
TAXES.
SINCE THE '09s WE HAVE FALLEN
FROM 11th PLACE NATIONWIDE TO
35th PLACE.
WE ARE SO -- WE SO EASILY HAVE
THE MEANS TO CONTRIBUTE MORE
THROUGH TAXATION.
WASHINGTON LEADS THE NATION IN
ECONOMIC GROWTH.
WE ARE NUMBER ONE.
INSTEAD WASHINGTON IS UNDULY
BURDENING THE ROLE WITH THE TAX
SYSTEM IN THE NATION.
WE DO NOT HAVE AN INCOME TAX
AND A HANDFUL OF STATES NOT
TAXING CAPITAL GAINS.
UNTIL WASHINGTON ADAPTS AN
INCOME TAX I SUPPORT MAJOR
EMPLOYERS.
THE COMPANIES CAN PAY IT.
AMAZON STOCK HAS HAS OVER THE
LAST FIVE YEARS.
>> THANK YOU FOR SENDING THOSE.
STEPHANIE.
>> I'M A BOARD MEMBER OF THE
SEATTLE RESTAURANT ALLIANCE.
WE OPPOSE THIS TAX PROPOSAL.
IT IS TEN TIMES LARGER THAN THE
FAILED 2018 HEAD TAX.
IT TARGETS MORE THAN 800 OF THE
CITY EMPLOYERS THAT PROVIDES
300,000 JOBS.
MANY OF THESE BUSINESSES WILL
NOT MAKE IT OUT OF THIS COVID
CRISIS.
THEY DO NOT NEED THIS HUGE NEW
JOBS TAX.
WE CALL ON COUNCIL MEMBERS AND
THE MAYOR TO FOCUS ON KEY
ECONOMIC RECOVERY NEEDS ONCE
THE STAY AT HOME ORDER IS
LIFTED.
CREATE PARTNERSHIPS WITH
BUSINESSES AND WORKERS IN
COOPERATION WITH KING COUNTY
AND THE STATE TO GET OUR CITY
BACK ON ITS FEET AS QUICKLY AS
POSSIBLE.
THANK YOU FOR YOUR TIME TODAY.
>> THANK YOU VERY MUCH.
>> HELLO.
I'M A RENTER IN DISTRICT 3 AND
A MEMBER OF THE SEATTLE
DEMOCRATIC SOCIALISTS OF
AMERICA.
I LOST MY JOB ON MARCH 13th
BECAUSE OF COVID-19.
I DON'T HAVE A JOB TO GO BACK
TO AFTER THE STAY AT HOME ORDER
AND NOT BEING ABLE TO PAY RENT.
I'M SCARED AND NEIGHBORS ARE
ALL SCARED.
MANY OF THEM ARE MORE
VULNERABLE THAN I AM.
THIS AEXACERBATING THE HOUSING
CRISIS IN THE CITY.
IT DOESN'T HAVE TO BE THAT WAY.
BIG BUSINESS IN SEATTLE HAS
ENOUGH MONTY BAIL US OUT.
I SUPPORT THE LEGISLATION
BECAUSE IT CAN PROVIDE RELIEF
NOW TO THOSE MOST AFFECTED BY
THE PANDEMIC AND PROVIDE
HOUSING IN THE FUTURE IN THE
FORM OF DREAM HOMES IN THE
FIRST DECADE OF LEGISLATION.
I BELIEVE THIS MODEST TAX IS A
SMALL AND IMPORTANT STEP
TOWARDS A MORE IDEAL CITY.
I HOPE COUNCIL HAS THE COURAGE
TO PASS IT.
THANK YOU.
>> THANK YOU.
THE NEXT PERSON IS ALAN MAY.
>> GOOD MORNING.
I'M ALAN MAY.
I OWN A SMALL BUSINESS ON
CAPITOL HILL.
I HAVE 19 EMPLOYEES.
THEY GET PAID REALLY WELL AND
WITH GENEROUS BENEFITS.
OUR CLIENTS ARE BIG BUSINESSES
IN THE REGION.
I STRONGLY OPPOSE THE TAX ON
JOBS.
JOBS ARE GOOD.
WE NEED TO BE FOCUSED ON
CREATING JOBS.
WE NEED TO BE ENCOURAGING JOB
CREATION, PUNCHING FOR CREATING
JOBS IS SHORT SIDED.
I THINK YOU GUYS ARE IN A
TRICKY POSITION WITHOUT THE
INCOME TAX AND I RECOGNIZE
THAT.
AND THANK YOU FOR YOUR HARD
WORK.
BUT JOBS ARE GOOD.
EVERYBODY SAY IT.
JOBS ARE GOOD.
WE NEED TO BE ENCOURAGING JOB
CREATION, NOT PUNCHING IT.
BIG BUSINESSES CREATE HIGH
PAYING JOBS ARE BAD, THEN SPEND
TIME IN CLEVELAND.
THEY BEND OVER BACKWARDS TO
HAVE COMPANIES COME IN AND
CREATE HIGH PAYING JOBS.
THANKS.
STAY SAFE.
>> THANK YOU VERY MUCH.
COLLEAGUES, WE HAVE GONE 20
MINUTES.
I'M GOING TO ASK IF THERE IS
NOT OBJECTION THAT WE EXTEND
UBLIC COMMENT FOR 10 MORE
MINUTES.
HEARING NO OBJECTION, PUBLIC
COMMENT WILL BE EXTENDED TEN
MORE MINUTES.
>> I'M ONE OF THE CO-FOUNDERS
OF BASED IN SOTO.
WE ARE IN UNCHARTERED PERIOD.
IT IS A PERIOD OF SEVERE
UNCERTAINTY.
THE FUTURE OF OUR BUSINESS IS
NOT GUARANTEED.
WE'VE HAD TO LAY STAFF OFF AND
ARE WORKING ON PRESERVING CASH.
HOWEVER THE STAFF THAT WE WERE
ABLE TO KEEP ON CONTINUE TO
RECEIVE THEIR FULL PAY AND
GENEROUS BENEFITS.
THIS TAX WOULD BE BASED OFF OF
A BUSINESS' 2019 PAYROLL
RECORDS.
IN THE COVID PERIOD, WE'RE
UNABLE TO HAVE ANY LEVEL OF
CONFIDENCE IN FORECASTING.
WE CANNOT RELIABLY PREDICT THAT
WE WILL CONTINUE TO GROW AT ANY
PACE AS WE WERE BEFORE COVID.
THAT MEANS WE CANNOT MAKE
INVESTMENTS IN THE FUTURE AND
WE CERTAINLY CAN'T GUARANTEE
JOBS.
THIS PROPOSED TAX WOULD AFFECT
800,000 SEATTLE BUSINESSES, NOT
JUST AMAZON THAT EMPLOY OVER
300 PEOPLE.
THE DOLLARS SPENT ON TAXES AT
THIS MOMENT IN TIME ARE DOLLARS
THAT WILL NOT BE SPENT TO KEEP
THE ECONOMY ALIVE.
GET PEOPLE BACK TO WORK NOT TAX
THE BUSINESSES.
>> THANK YOU VERY MUCH.
I APOLOGIZE, I CALLED EMILY
HAZLETON AND I DIDN'T ASK HER
TO SPEAK.
EMILY, IF YOU'RE STILL ON THE
LINE, WE WOULD LOVE TO UNMUTE
YOU AND THEN CONTINUE WITH
JOHN.
EMILY, ARE YOU AVAILABLE.
>> YES.
THANK YOU.
MY NAME IS EMILY.
I WOULD LIKE TO SPEAK IN
SUPPORT OF THE BIG BUSINESS
TAX.
I WORK AT NEIGHBOR CARE HEALTH,
A COMMUNITY HEALTH CARE
ORGANIZATION AS A DATA ANALYST.
MY HOURS HAVE BEEN REDUCED TO
.5 OR .8 OF OUR STANDARD
SCHEDULE.
EVEN WITH THAT I FEEL LUCKY.
OUR OTHER ADMIN STAFF AND
SCHOOL BASED PROVIDERS HAVE
BEEN ON FURLOUGH FOR OVER A
MONTH.
THIS IS ONE STORY HOW THE
PANDEMIC IS IMPACTING WORKERS
AND CRITICAL SERVICES IN THE
COMMUNITY.
I'M ALSO A VOLUNTEER WITH 350
SEATTLE.
WE ARE CURRENTLY EXPERIENCING
MULTIPLE CRISIS.
A PANDEMIC, ECONOMIC DOWNTURN,
AND CLIMATE CHANGE.
IBUILDING SOCIAL HOUSING AND
CONVERTING OUR HOME HEATING
SYSTEMS WILL CREATE THOUSANDS
OF JOBS OVER THE COMING FIVE
YEARS.
THE MAJORITY OF BUSINESSES CAN
CHIP IN 1% TO HELP IN THE
CRISIS.
IN OF OVERHEAD OF OPERATING THE
PROGRAM IS 3% OF TOTAL REVENUE
COLLECTED.
THANK YOU FOR LISTENING AND
THANKS FOR YOUR WORK.
>> THANK YOU VERY MUCH.
JOHN MANILA AND SHARON WILL BE
THE NEXT SPEAKERS.
JOHN GO AHEAD.
>> GREAT.
THANK YOU, MEMBERS OF THE
COUNCIL.
OUR COMMUNITIES, ESPECIALLY
RENTERS ARE GETTING CRUSHED
RIGHT NOW.
THIS PANDEMIC HAS -- AT THE
EXPENSE OF OUR COMMUNITY EVEN
IN THIS PANDEMIC.
WE HAVE A MORAL DUTY TO RIGHT
SIDE OUR UPSIDE-DOWN TAX
SYSTEM.
THIS BILL IS EXACTLY THAT.
PLEASE SUPPORT THIS BUSINESS
TAX SO OUR COMMUNITIES GET
IMMEDIATE RELIEF SO WE CAN
RECOVER FROM THE PANDEMIC
BECAUSE OUR COMMUNITIES ARE THE
ONES MOST IMPACTED BY BOTH THE
PANDEMIC AND BY CLIMATE CHANGE.
MOST IMPORTANTLY THIS WILL
PROVIDE THOUSANDS OF JOBS.
JOBS ARE GOOD.
SO OUR COMMUNITIES CAN RECOVER
FROM THE PANDEMIC.
PLEASE HELP OUR COMMUNITIES AND
SUPPORT THIS BUSINESS TAX.
WE NEED RECOVERY AND RELIEF
NOW.
THANK YOU.
>> SHARON.
MY NAME IS SHARON AND I'M A
RETIRED CPA AND LIVE IN
DISTRICT 7. I'M OPPOSED TO THIS
PAYROLL TAX ON 800 BUSINESSES
WHO CALL SEATTLE HOME.
I'M ALSO OPPOSED TO THE
BORROWING FROM VOTER APPROVED
FUNDS INCLUDING AFFORDABLE
HOUSING PARKS EDUCATION, SCHOOL
TRANSPORTATION.
EVERY BUSINESS PAYS A TAX.
SALES TAX AND PROPERTY TAXES.
I AM CONCERNED THAT THIS TAX
WILL OVERBURDEN BUSINESS WHO'S
HAVE BEEN IN SEATTLE FOR YEARS,
FOR DECADE WHO'S HAVE BUILT
THIS CITY AND EMPLOY OUR
WORKING FAMILIES.
BUSINESSES LIKE DAIRY GOLD,
COPPER ELECTRIC, THE CLINIC,
AGELESS LIVING.
THIS IS A NEW JOBS TAX WHICH IS
TEN TIMES LARGER THAN THE ONE
THAT FAILED IN 2018.
OUR CITY COUNCIL NEEDS TO BE
LOOKING AT OTHER WAYS TO
ADDRESS THE BUDGET SHORTFALL
AND NOT HURT OUR EXISTING
BUSINESSES.
THIS IS NOT ONLY ABOUT AMAZON.
IT IS ABOUT MANY, MANY OTHER
BUSINESSES WHO EMPLOY WORKING
FAMILIES.
THANK YOU VERY MUCH.
>> MEGAN MURPHY, PLEASE GO
AHEAD.
>> HI.
I SUPPORT THIS TAX.
WE ARE CURRENTLY FUNDING THE
ELITE 1% OF THE 1% WHO IS
SUPPOSEDLY AGAINST SOCIALISM
AND USING OUR TAX MONEY FOR
SOCIALIST PURPOSES.
HOWEVER, THEY ARE LIVING WELL
BEYOND THEIR -- WHAT IT TAKES
TO SURVIVE IN THIS WORLD.
SO WHAT KIND OF BUSINESSES DO
WE WANT TO PARTNER WITH ANYWAY?
THE PAYROLL IS VERY MINIMAL.
AND IT CREATES LOTS OF GREEN
JOBS.
SEATTLE LOVES TO CREATE JOBS AS
THEY SAY.
LET THEM CREATE MORE JOBS AND
BUILD AFFORDABLE HOUSING
INSTEAD OF HOARDING MONEY IN
MANSIONS.
ECOLOGICAL CONSCIENTIOUSNESS
AND SEXISM AND OTHER THINGS.
UNLESS THE DESIGN OF THE
SOCIETY SHARING WEALTH.
>> THANK YOU VERY MUCH.
THE NEXT THREE -- I'M SORRY.
THE NEXT SPEAKER IS BRENT
MACFARLANE.
>> HELLO.
MY NAME IS BRETT MAC FAR LAND.
I LIVE IN NORTH SEATTLE
DISTRICT 5. I'M A KING COUNTY
LABOR COUNCIL AND DELEGATE AND
A MEMBER OF PUGET SOUND
ADVOCATES FOR ACTION.
I'M HERE TO SUPPORT A TAX ON
THE WEALTHIEST 2% OF BUSINESSES
TO BUILD AFFORDABLE GREEN
HOUSING AND FOR COVID-19 RELIEF
FOR THOSE MOST IN NEED IN OUR
CITY.
THIS IS NOT A TAX ON JOBS.
IT IS A TAX THAT CREATES GREEN
JOBS.
THE MAYOR DIDN'T SPEAK FOR US
WHEN SHE SAID OF THIS PROPOSAL,
YEAH, THAT'S NEVER GOING TO
HAPPEN.
WE NEED YOU THE CITY COUNCIL TO
SAY, YEAH, IT'S GOING TO HAPPEN
BECAUSE IT IS WHAT THE CITY
NEEDS NOW.
WE NEED TO YOU STEP UP BIG
PROGRESSIVE SOLUTIONS.
PROGRESSIVELY FUNDED SOLUTIONS.
THIS IS AN OPPORTUNITY TO DO
JUST THAT.
SHOW REAL SOLIDARITY WITH
PEOPLE OF THE CITY AS WE WORK
TOGETHER TO COME BACK FROM THE
PANDEMIC.
BE BRAVE.
STAND IN SOLIDARITY WITH THE
MAJORITY OF THE PEOPLE THAT YOU
REPRESENT.
THANK YOU.
>> THANK YOU.
THE NEXT PERSON IS WALE.
APOLOGIES FOR THE
MISPRONUNCIATION.
>> HI.
I LIVE IN DISTRICT 2. I'M A
RENTER AND I AM IN SUPPORT OF
THIS TAX.
I'M ALSO A MEMBER OF THE
DEMOCRATIC SOCIALISTS OF
AMERICA.
AMAZON IS DOING SO WELL.
IT IS DOING SO WELL DURING THIS
TIME.
ITS STOCK PRICES HAVE GONE
THROUGH THE ROOF DURING THIS
EPIDEMIC TIME.
AND SO IT JUST MAKES SENSE FOR
US TO TAX THE BIG BUSINESSES
THAT ARE DOING SO WELL AND
REALLY IT IS OUR RESPONSIBILITY
TO THE PEOPLE OF SEATTLE TO
ACTUALLY NOT HAVE ALL OF THESE
AGGRESSIVE TAXES LIKE SALES
TAXES BE PUT ON THE PEOPLE AND
HAVE THE POOR BARE THE BRUNT OF
IT BUT ACTUALLY HAVE EVERYDAY
PEOPLE NOT BARE THAT BRUNT AND
HAVE THE BIG SUBSIDIZED
COMPANIES BARE IT.
SO THANK YOU.
>> THANK YOU.
FOLKS, THE LAST THREE SPEAKERS
WILL BE BESS BRIARS, MARK
CUMMINS AND ROMNEY.
>> BESS, YOU SHOULD BE UNMUTED.
>> HI.
MY NAME IS BESS BYERS.
I'M HERE TO SAY NO A 1.3% TAX
OF PAYROLL.
THAT BREAKS OUT TO $91,000
STOLEN FROM COMPANY WHO'S ARE
VOLUNTARY PAYING THE INCOME IN
THE COMMUNITY AND GIVES IT TO
THE GOVERNMENT.
THE SAME CITY GOVERNMENT HAS A
$6.24 BILLION ANNUAL BUDGET.
WHERE IS THE MONEY GOING?
$6BILLION.
I'M NOT WORRIED ABOUT THE 7
BILLION THAT YOU HAVE RIGHT
NOW.
I'M WORRIED IT WILL BECOME 5
MILLION AND 3 MILLION AND THEN
YOU WILL TAX ALL BUSINESSES.
WHY IS IT THAT THE SEATTLE CITY
COUNCIL, EVERY ONE OF YOU THAT
MAKES $172,000 A YEAR WILLVILLE
IDENTIFY BUSINESSES.
PEOPLE INVESTING THEIR OWN
MONEY.
IF YOU WANT TO CREATE GREEN
JOBS, START A GREEN JOB.
DON'T LET GOVERNMENT TAX YOU
OUT OF BUSINESS.
DON'T DEPEND ON GOVERNMENT.
MAKE IT HAPPEN FOR YOURSELF.
>> THANK YOU, BESS.
THE NEXT PERSON IS MARK
CUMMINS.
>> WE REPRESENT HUNDREDS OF
LIFE SCIENCE ORGANIZATIONS
THROUGHOUT SEATTLE.
THESE ARE EXACTLY THE COMPANIES
AND MEDICAL RESEARCH
INSTITUTIONS DOING EVERYTHING
THAT THEY CAN TO FIGHT COVID-19
PANDEMIC.
IT IS IRONIC THAT I'M HERE
TODAY ASKING THE COUNCIL TO
OPPOSE A BILL THAT WOULD SLOW
DOWN THE RESPONSE EFFORTS.
BECAUSE THAT'S EXACTLY WHAT IT
WOULD DO.
MANY LIFE SCIENCE COMPANIES
HAVE LARGE BILLS BUT WE DON'T
HAVE ANY PROFITS.
LET ME REPEAT THAT.
THEY DON'T HAVE ANY PROFITS.
INSTEAD THEY'RE SPENDING YEARS
IN RESEARCH AND CLINICAL TRIALS
AND MANY OF THEM HAVE PUT THAT
WORK ON HOLD TO FOCUS
EXCLUSIVELY ON COVID-19.
WITHOUT PROFITS THEY HAVE TO
TAKE FUNDS OUT OF RESEARCH AND
CLINICAL TRIALS TO PAY THIS
TAX.
HEALTH CARE PROVIDERS DOING
HEROIC WORK AND FACING
FINANCIAL LOSSES IT FURTHER
REDUCES THEIR ABILITY TO SERVE
AT RISK POPULATIONS.
WE EMPLOY THE COUNCIL NOT TO
SLOW THE RESPONSE FOR THE NEW
TAX ON THE EXACT PEOPLE WORKING
TO FIND A CURE AND A VACCINE.
THANK YOU FOR YOUR TIME.
>> THANK YOU, MARK.
AND THE LAST PERSON IS ROMNEY.
>> CAN YOU HEAR ME?
>> YES.
GO AHEAD.
THANK YOU FOR WAITING.
>> YEAH.
THANK YOU.
I'M GIVING MY COMMENTS
SUPPORTING THE BIG BUSINESS
TAX.
AND I AM QUOTING FROM AN
ARTICLE FROM THE GUARDIAN THAT
CAME OUT TEN DAYS AGO.
IT SAYS THE ONLINE RETAILER
AMAZON HAS BEEN DESCRIBED AS A
CLEAR WINNER FROM THE
CORONAVIRUS CRISIS.
ITS SHARE PRICE SURGING BY MORE
THAN A THIRD INSIDE JUST A
MONTH.
ITS CUSTOMER SPENDING IS
$11,000 A SECOND ON PRODUCTS
AND SERVICES AND ITS OWNER JEFF
BEZOS REINFORCING HIS POSITION
AS THE WORLD'S RICHEST PERSON
WITH A FORTUNE OF $138 BILLION.
WHILE MORE BUSINESSES HAVE BEEN
HIT BY THE IMPACT OF THE
PANDEMIC AND THE LOOMING
RECESSION, SHARES IN AMAZON
HAVE HIT A RECORD HIGH AS
HUNDREDS OF MILLIONS OF PEOPLE
STUCK IN LOCKDOWN CONDITIONS
TURN TO THE RETAIL GIANT.
I URGE COUNCIL TO PROVIDE WITH
THIS BIG BUSINESS TAX AND USE
THE MONEY TO FUND SOCIAL
HOUSING AND THE GREEN NEW DEAL
AND OTHER JOBS THAT THE CITY SO
BADLY NEEDS.
THANK YOU.
>> THANK YOU VERY MUCH.
I WANT TO THANK EVERYBODY WHO
CALLED IN.
AND, AGAIN, EXTEND MY SINCERE
APOLOGIES FOR THE TROUBLE THAT
THERE MAY HAVE BEEN WITH
SIGNING UP THIS MORNING.
THIS WILL NOT BE THE LAST TIME
FOR PUBLIC COMMENT.
WE ENCOURAGE FOLKS TO E-MAIL
US.
AGAIN, ALL OF OUR OFFICES ARE
OPEN AND FURNISHINGSING FULL-
TIME DURING THE CRIES TSA IS
COVID AND WE U YOU TO REACH OUT
TO OUR OFFICES.
WE RECEIVED CALLS AND E-MAILS
AND APPRECIATE THAT.
ANY PUBLIC COMMENT CAN BE SENT
TO US AND WE WILL SEND IT OUT
IMMEDIATELY TO THE FULL
COUNCIL.
THANKS FOR THE COMMUNICATION TO
THE FOLK THAT'S DID SIGN UP.
YOU SHOULD BE RECEIVING AN E-
MAIL WITH INSTRUCTIONS ABOUT
THOUSAND TO SEND IN YOUR
WRITTEN COMMENTS.
OUR SINCERE APOLOGIES FOR
PEOPLE WAITING ON THE LINE.
MANY HAVE SMALL BUSINESSES TO
RUN, WORK THAT THEY NEED TO DO
AS ESSENTIAL BUSINESSES AND WE
APPRECIATE YOUR TIME.
WE WILL CONTINUE TO EXTEND
PUBLIC COMMENT IN FUTURE
MEETINGS.
I WOULD LIKE TO MOVE ON TO ITEM
D.
>> THANK YOU SO MUCH.
IT IS IN THE CONTEXT OF HOW
WE'RE ABLE TO GET IMMEDIATE
ASSISTANCE OUT THE DOOR IN 2020
FOR THOSE AFFECTED BY THE COVID
CRISIS AND THE ECONOMIC CRISIS
THAT HAS ENSUED.
TO PROVIDE MORE CONTEXT ON THE
NEED FOR POTENTIAL IMMEDIATE
RELIEF AND A LITTLE BIT MORE OF
A REALITY OF WHAT IS HAPPENING
ON THE GROUND, WE HAVE SOME HE
STEAMED COLLEAGUES THAT WILL
PRESENT.
WE HAVE ASKED THEM TO SHARE
THREE MINUTES TO GIVE US A
CHANCE TO ASK ANY QUESTIOS
THAT WE HAVE AS WELL.
THE PANEL INCLUDES OUR FRIENDS
THAT WE HAVE SEEN IN MANY
ASPECTS OF BOTH COMMERCE AND
THE SOCIAL SAFETY NET INCLUDING
MOLLY MOON, THE CEO OF MOLLY
MOON'S HOME MADE ICE CREAM.
JEANETTE RANDALL.
DAVID PARSONS WHO IS THE
PRESIDENT OF UNITED AUTO
WORKERS 4121.
KATIE WILSON WHO IS THE GENERAL
SECRETARY OF THE TRANSIT RIDERS
UNION.
AND THE CODIRECTOR OF
WASHINGTON I AM GRANT
SOLIDARITY NETWORK.
I KNOW WE HAVE A NUMBER OF
FOLKS WHO ARE ALSO INTERESTED
IN PROVIDING FEEDBACK AND
TESTIMONY ON FUTURE PANELS.
AND WE WILL CONTINUE WORKING ON
THAT.
WAY OPPORTUNITY TO THANK THE
SPONSORS FOR SUGGESTING A
HANDFUL OF THESE FOLKS AND FOR
THE INDIVIDUAL THAT'S WE
REACHED OUT TO DIRECTLY.
I REALLY APPRECIATE YOUR TIME
AND INTEREST IN PARTICIPATING
IN THIS.
WE WILL HAVE A CHANCE TO ASK
THE PANEL QUESTIONS AT THE END.
WITH THAT, WE WILL GO AHEAD AND
GET STARTED.
I WILL CALL ON FOLKS AND WE ARE
GOING TO PUT A THREE-MINUTE
TIMER ON THE SCREEN.
HOPEFULLY WITH YOUR FACE SO
EVERYBODY CAN SEE YOUR FACE AS
WELL.
ACTUALLY STAFF, PLEASE DON'T
PUT THE TIMER UP.
THE FOLKS REPRESENTING KNOW
THAT WE WILL TRY TO KEEP IT TO
THREE MINUTES.
ON SEATTLE'S CHANNEL YOU SHOULD
BE ABLE TO SEE FOLKS' FACES.
FOR PEOPLE ONLINE, MAKE SURE
THAT YOU HAVE A CHANCE TO
UNMUTE YOUR LINE WHEN WE GET TO
YOU AND THEN MUTE AGAIN.
I'M GOING TO START TODAY WITH
KATIE WILSON.
I KNOW YOU'RE ON A SHORT TIME
LIMIT.
WOULD YOU LIKE TO START US OFF
WITH A THREE-MINUTE OVERVIEW OF
WHAT YOU'RE SEEING ON THE
GROUND AS IT RELATES TO
IMMEDIATE NEED FOR RELIEF
RELATED TO COVID CRISIS.
>> SURE THING.
THANK YOU COUNCIL MEMBER
MOSQUEDA.
I'M THE GENERAL SECRETARY OF
THE TRANSIT RIDERS UNION.
OUR MEMBERS ARE PEOPLE WHO RIDE
PUBLIC TRANSIT, INCLUDING MANY
PEOPLE WHO DON'T HAVE ANY OTHER
OPTIONS, PEOPLE WITH
DISABILITIES, AND PEOPLE
EXPERIENCING HOMELESSNESS.
AND WHAT WE -- SO MANY PEOPLE
WERE ALREADY STRUGGLING TO
AFFORD THE COST OF HOUSING IN
SEATTLE BEFORE THE COVID-19
CRISIS MADE EVERYTHING SO MUCH
WORSE.
WE STARTED ORGANIZING WITH
TRANSIT RIDERS IN 2011 A FEW
YEARS INTO THE GREAT RECESSION.
AND AT THAT POINT METRO BUS
SERVICE WAS IN THE DANGER OF
CUTS.
NOW WE'RE AGAIN LOOKING AHEAD
TO A FEW CUR WHERE THE TRANSIT
SYSTEM IS UNDER THREAT BECAUSE
SALES TAX REVENUES ARE
PLUNGING.
I WANT TO SAY SOMETHING ABOUT
OUR TAX SYSTEM BECAUSE WE'RE
SEEING IN REAL TIME THE MOST
PART OF WHAT HAPPENS WHEN WE
RELY SO HEAVILY ON AGGRESSIVE
SOURCES OF REVENUE LIKE THE
SALES TAX.
AS MANY PEOPLE PROBABLY KNOW,
THE CITY AND -- THE CITY IN OUR
STATE WITH THE MOST REGRESSIVE
TAX SYSTEM IN THE STATE WITH
THE MOST REGRESSIVE TAX SYSTEM
IN THE COUNTRY.
THAT MEANS THAT LOWER INCOME
PEOPLE, INCLUDING OUR MEMBERS,
ARE PAYING STATE AND LOCAL
TAXES AT A MUCH HIGHER RATE,
LIKE 18% OF THEIR INCOME
COMPARED TO THE WEALTHIEST
HOUSEHOLDS PAYING ONLY 3%.
THAT PLACES A HUGE BURDEN ON
THE PEOPLE THAT CAN'T AFFORD IT
AND IT CREATES A PROBLEM FOR
GOVERNMENTS.
TAXING PEOPLE AT THE TOP WHO
HAS THE BULK OF THE WEALTH EVEN
THOUGH IT HAS BEEN A POWER
HOUSE IN RECENT YEARS, PUBLIC
REVENUE HASN'T RISEN TO MEET
THE GROWING NEEDS OF OUR CITY.
MAINTAINING OUR BRIDGES AND
STREETS AND EXPANDING PUBLIC
TRANSIT TO HUMAN NEEDS LIKE
ADDRESSING THE HOMELESSNESS
CRISIS.
NOW WITH THE COVID-19 PANDEMIC
AND A NEW DEEP RECESSION, WE'RE
SEEING A SITUATION WHERE NEW
NEEDS ARE PILING ON TOP OF THE
OLD ONES.
PEOPLE EXPERIENCING
HOMELESSNESS ARE BEING LEFT
BEHIND.
WE'VE BEEN HEARING FROM OUR BUS
DRIVERS THAT MANY MORE PEOPLE
THAN USUAL ARE RIDING A BUS
WITHOUT A DESTINATION.
USING THE TRANSIT SYSTEM AS
SHELTER.
THAT MAKES THE BUS DRIVERS FEEL
UNSAFE BECAUSE THEY'RE TRYING
TO SOCIALLY DISTANCE AND LIMIT
CONTACT WITH RIDERS.
METRO HAS LANITIED LOADS.
BUT THE TRUTH IS THAT HOMELESS
PEOPLE DON'T HAVE ANYWHERE TO
GO RIGHT NOW.
PUBLIC SPACES LIKE LIBRARIES
AND COMMUNITY CENTERS ARE NOT
CLOSED AND THERE IS NOT ENOUGH
SHELTER SPACE.
MANY PROGRAM THAT'S PREVIOUSLY
PROVIDED MEALS HAVE BEEN SHUT
DOWN.
AND PEOPLE CAN'T FIND PLACES TO
CHARGE THEIR PHONES, LAPTOPS,
WHEELCHAIRS AND MEDICAL
DEVICES.
THERE A HUMANITARIAN EMERGENCY
UNFOLDING OUR OUR STREETS RIGHT
NOW EVEN THOUGH WE'RE NOT
SEEING IT BECAUSE WE'RE
SHELTERING AT HOME.
I'LL LEAVE IT THERE.
THANK YOU.
>> THANK YOU SO MUCH.
I WOULD LOVE TO TURN IT OVER TO
MOLLY MOON.
MOLLY, INTRODUCE YOURSELF AND
YOUR ORGANIZATION, YOUR SMALL
BUSINESS.
WE WOULD LOVE TO HEAR FROM YOU
ABOUT THE IMPACTS OF COVID AS
IT HAS BEEN PLAYING OUT FOR
SMALL BUSINESSES ON MAIN STREET
ACROSS SEATTLE.
>> YEAH.
THANK YOU COUNCIL MEMBER
MOSQUEDA AND THANK YOU CITY
COUNCIL.
I KNOW YOUR DECISIONS ARE
EXTREMELY DIFFICULT RIGHT NOW.
MY DECISIONS ARE EXTREMELY
DIFFICULT RIGHT NOW.
I USED TO RUN -- I AM THE CEO
AND FOUNDER OF MOLLY MOON'S
HOME MADE ICE CREAM.
I HOPE MANY OF YOU KNOW ABOUT
OUR ICE CREAM.
I HAVE EIGHT ICE CREAM SHOPS
AND I'M UNDER CONSTRUCTION ON
THE NINTH.
LAST YEAR I DID JUST UNDER $8
MILLION A YEAR IN REVENUE.
AND TO GIVE YOU SOME CONTEXT
FOR THE TAX YOU ALL ARE TALKING
ABOUT, I HAD ABOUT $3.5 MILLION
IN PAYROLL.
SO WELL UNDER THE THRESHOLD
THAT IS BEING TALKED ABOUT IN
THE PROPOSED TAX.
I NOW HAVE NO IDEA WHAT I WILL
DO IN REVENUE THIS YEAR.
IT WILL DEFINITELY BE LESS THAN
8 MILLION.
MY SALES HAVE DROPPED ABOUT
80%.
AND I'M EXTREMELY LUCKY AND
THANKFUL THAT I'VE BEEN ABLE TO
PIVOT TO RUSH MY ICE CREAM
PINTS TO GROCERY STORES.
BOTH OUR LOCAL PPCs AND
METROPOLITAN MARKETS HAVE
STARTED CARRYING MY PINTS AND
THEY HAVE DONE EXTREMELY WELL.
SO I'VE BEEN ABLE TO MAKE ABOUT
20% OF WHAT I WOULD NORMALLY
MAKE.
BUT THAT ALSO MEANS THAT I'VE
LAID OFF OVER 90 PEOPLE.
AND I BROUGHT FOUR PEOPLE BACK
TO WORK THIS WEEK BECAUSE PINT
PRODUCTION IS GOING WELL.
BUT I FEEL REALLY UNCLEAR ABOUT
HOW TO REOPEN ICE CREAM SHOPS
IN A SAFE WAY.
THAT'S ONE OF THE THINGS THAT I
WOULD LOVE FOR YOU ALL TO HEAR
FROM SMALL BUSINESSES.
WE NEED CONSISTENT GUIDANCE
ABOUT HOW TO OPEN -- HOW TO
REOPEN SAFELY.
AS FOR BUSINESS TAXES, I HAVE
ALWAYS BELIEVED THAT BUSINESSES
AND FOLK THAT'S MAKE A LOT OF
MONEY NEED TO PAY TO HELP OUR
COMMUNITY BE A WONDERFUL PLACE
TO LIVE AND WORK.
I THINK THAT SMALL BUSINESSES
UNDER FIVE OR SEVEN OR $10
MILLION IN A YEAR NEED TO A TAX
RELIEF THIS YEAR IN A PRETTY
SUBSTANTIAL WAY.
AND I DON'T THINK THAT
BUSINESSES SHOULD BE PAYING ANY
NEW TAXES.
BUT AS FOR THE PROPOSED TAX THE
WAY THAT IT IS WRITTEN, I THINK
WE NEED TO ASK OUR BIG
BUSINESSES TO PAY TO HELP OUR
COMMUNITY SURVIVE.
AND I THINK ONE OF THE THINGS
THAT IS DIFFICULT ABOUT THIS
TAX BOTH FOR SMALL BUSINESSES
WHO DEPEND ON CUSTOMERS WHO MAY
WORK AT AMAZON OR MICROSOFT OR
GOOGLE OR WHEREVER IS THAT WE
JUST DON'T WANT THE DIVISIVE
LANGUAGE.
I WOULD SAY THAT I AGREE WITH
MOST OF THE POLICIES THAT YOU
COUNCIL MEMBER PUT INTO THE
UNIVERSE.
AND I APPRECIATE YOUR THOUGHTS
AND YOUR LEADERSHIP.
I THINK THAT THE WAY THAT WE
TALK ABOUT IT COULD BE MORE
UNIFYING.
YOU KNOW, I HAVE FRIENDS THAT
WORK AT AMAZON.
AND THEY ALSO THINK THAT AMAZON
SHOULD PAY MORE TAXES.
MANY OF MY CUSTOMERS WORK AT
AMAZON.
BUT I THINK WE CAN INVITE LARGE
COMPANIES TO HELP THE BEST
SOLUTION TO THE CITY WHERE THEY
WANT TO BE AND OPERATE.
I ALSO THINK IT IS IMPORTANT TO
JUST WRITE THIS LEGISLATION IN
A THOUGHTFUL WAY THAT THINKS
ABOUT CARVE-OUTS.
I DO THINK WE NEED TO BE SO
CAREFUL ABOUT TAXING MEDICAL
RESEARCH RIGHT NOW.
I KNOW PUBLIC COMMENTER SAID --
WAS TALKING ABOUT THAT EARLIER.
AND I THINK SMALL BUSINESSES
LIKE MINE AND TAYLOR WONG WHO
SPOKE EARLIER WHO I VERY MUCH
RESPECT IN OUR COMMUNITY, WE
NEED HELP WITH RETROFITTING OUR
BUSINESSES TO OPEN SAFELY WITH
PPE FOR OUR EMPLOYEES AND TAX
RELIEF HELP THIS YEAR.
WE ALSO WANT OUR CUSTOMERS NOT
TO LEAVE SEATTLE.
BUT I THINK THERE'S A WAY TO DO
ALL OF THIS.
AND I THINK THIS TAX AS WRITTEN
IS A PRETTY GOOD WAY TO DO IT.
I WOULD LOVE TO SEE US START TO
TALK IN A MORE UNIFYING WAY AND
A MORE INVITING WAY TO EVEN THE
BIG BUSINESS LEADERS ABOUT HOW
THEY CAN PARTICIPATE IN HELPING
SEATTLE MOVE FORWARD.
>> THANK YOU VERY MUCH, MOLLY.
I REALLY APPRECIATE YOU BEING
ON THE LINE AND FOR ALL THAT
YOU'RE DOING.
THE NEXT PERSON IS JEANETTE
RANDALL.
A GROCERY WORKER.
THANK YOU FOR BEING HERE WITH
US.
>> THANK YOU SO MUCH FOR THIS
OPPORTUNITY, COUNCIL.
I AM A GROCERY WORKER.
AND I WORK AT IN UNINCORPORATED
KING COUNTY BUT I LIVE IN
DISTRICT 1. MY HUSBAND WORKS
FOR SAFE WAY TOO.
SO FORTUNATELY THE BOTH OF US
STILL HAVE JOBS BECAUSE WE'RE
ESSENTIAL FRONT LINE WORKERS
RIGHT NOW.
WHAT I SIT HERE AND THINK ABOUT
THE WEEK OF COVID, WE HAVE A
REALLY BAD HOMELESS PROBLEM IN
THE CITY.
AND IT IS NOT JUST PEOPLE WHO
ARE, YOU KNOW, HORRIBLY
HOMELESS.
WORKING PEOPLE ARE HOMELESS.
WE WILL HAVE AN INCREASE IN
WORKING PEOPLE BECOMING
HOMELESS.
AND WORKING PEOPLE CANNOT
AFFORD TO HAVE MORE OF THE TAX
DUMPED ON TO THEM.
IT IS TIME FOR BIG BUSINESS TO
PAY THEIR FAIR SHARE AND HELP
THE COMMUNITY OUT.
I HAVE NEIGHBORS AND PEOPLE
THAT I KNOW IN MY COMMUNITY WHO
ARE STILL WAITING FOR
UNEMPLOYMENT AND THEY APPLIED
LIKE A MONTH AGO.
WHAT ARE THEY SUPPOSED TO DO TO
PAY THE BILLS, YOU KNOW, UNTIL
THEN?
IT IS JUST VERY DISHEARTENING.
YOU KNOW.
AND WE HAVE TO LOOK TO OUR
LOCAL GOVERNMENT FOR RELIEF AND
SUPPORT FOR OUR COMMUNITY SO WE
DON'T HAVE MORE PEOPLE LOSING
THEIR HOMES, LOSING THEIR
FAMILIES.
IT'S JUST -- IT MAKES SENSE TO
UPLIFT FROM THE BOTTOM.
THANK YOU.
>> THANK YOU FOR ALL OF YOUR
COMMENTS AND FOR THE WORK THAT
YOU'RE DOING ON A DAILY BASIS
TO FEED SO MUCH OF THE CITY.
WE APPRECIATE IT AND WE KNOW
THAT YOU ARE ALSO PUTTING YOUR
LIFE AND YOUR FAMILY'S LIFE AT
RISK.
THANK YOU FOR BEING A FRONT
LINE WORKER IN THIS TIME OF
COVID AND BEING WITH US HERE
TODAY.
THE NEXT PERSON THAT WE HAVE IS
THE CODIRECTOR OF WASHINGTON
IMMIGRANT SOLIDARITY NETWORK.
CAN YOU HEAR US?
>> YES.
GOOD MORNING, COUNCIL.
IT IS AN HONOR TO BE WITH YOU
TODAY.
I'M HOPEFUL THAT YOU ARE
KEEPING HEALTHY AND SAFE.
AS MENTIONED EARLIER, I
ACTUALLY HAVE BEEN LIVING IN
THE CITY OF SEATTLE FOR OVER 20
YEARS.
I'M 27 NOW.
I AM UNDOCUMENTED AND AFRAID.
TRANSGENDER AND UNASHAMED.
IN MY DAY WORK, I WORK AS THE
DIRECTOR OF THE WASHINGTON
IMMIGRANTS SOLIDARITY NETWORK.
IT IS A NETWORK THAT WORKS TO
SUPPORT IMMIGRANT COMMUNITIES.
PLEASE LET ME KNOW IF YOU LOSE
ME.
IMMIGRANT COMMUNITIES WHO ARE
LIVING IN FEAR OF FAMILY
SEPARATION.
OVER 250,000 UNDOCUMENTED
IMMIGRANTS CALL WASHINGTON
STATE THEIR HOME.
BUT MANY OF THESE COMMUNITIES
ARE NOT BENEFITING FROM THE TWO
TRILLION CARES ACT THAT HAS
BEEN APPROVED BY CONGRESS.
MANY OF THEM DON'T HAVE ACCESS
TO UNEMPLOYMENT BENEFITS AND
CONTINUE TO FACE THE BARRIERS
-- MANY BARRIERS, TAXES, HEALTH
CARE AND BASICALLY RESOURCES TO
SURVIVE THE PANDEMIC.
BEEN RECEIVING THOUSANDS OF
CALLERS EVERY DAY FROM ALL
ACROSS THE STATE ASKING FOR
FOUR MAJOR THINGS.
FOLK THAT'S ARE UNDOCUMENTED.
THE FIRST ONE IS FOR FOLKS TO
BE AIBLE TO HAVE A WAY TO
RENTAL ASSISTANCE AS MANY OF
THE IMMIGRANT AND UNDOCUMENTED
WORKERS HAVE BEEN IMPACTED BY
THE DISSEMINATION OF JOB LOSS
THAT'S WE HAVE SEEN IN THIS NEW
PANDEMIC.
THE SECOND THING THAT FOLKS ARE
CALLING TO REQUEST IS ACCESS TO
FOOD.
BECAUSE WE KNOW THAT HAS BEEN A
FEAR FACTOR FOR MANY OF THE
COMMUNITIES TO BE ABLE TO
ACCESS FOOD FOR THEIR FAMILIES.
SO THE SECOND THING THAT FOLKS
ARE ASKING FOR IS ACCESS TO
FOOD.
THE THIRD THING IS ASKING HOW
TO GET CARE BECAUSE THEY HAVE
BEEN EXPOSED OR FEEL
SYMPTOMATIC TO COVID-19 AND ARE
AFRAID THAT THEY WILL NOT BE
TREATED WITH -- WITH THE CARE
THAT THEY NEED IN ORDER TO
SURVIVE THIS PANDEMIC.
AND THEN FINALLY MANY
UNDOCUMENTED WORKERS ARE STILL
BEING DEEMED ESSENTIAL DURING
THIS TIME.
MANY OF THEM WORK IN THE FOOD
SUPPLY LINE.
AND THE FOOD SUPPLY PIPELINES
AS WELL AS AGRICULTURAL SECTOR
AND ARE AFRAID THAT THEY'RE
BEING ALLOWED INTO WORK WITHOUT
THE PROTECTIVE GEAR THEY NEED
TO ENSURE THAT THEIR FAMILIES
ARE SAFE AND THEMSELVES ARE
SAFE.
AS I MENTIONED EARLIER,
EXCLUDING UNDOCUMENTED
COMMUNITIES.
INCLUDING THE NORTH WESTERN
IMMIGRANTS RIGHT PROJECT HAVE
STARTED A COMMUNITY FUND THAT
AS OF YESTERDAY REACHED $1
MILLION IN ORDER TO SUPPORT
COMMUNITIES.
HOWEVER, OVER 14,000
APPLICATIONS HAVE COME IN FROM
ACROSS THE STATE, WITH THE
MAJORITY OF THE APPLICANTS
RESIDING IN SEATTLE.
THIS SHOWS THE WORK INDUSTRY
THAT WE HAVE IN SEATTLE AND
ACROSS THE REST OF THE STATE.
MOST OF THE BURDEN OF
UNEMPLOYMENT BENEFITS IS REALLY
COMING FROM THE CITY OF
SEATTLE.
AND SO I REALLY URGE THAT THE
COUNCIL CONTINUES TO ENACT
PROGRAM THAT'S ARE UNRESTRICTED
FUNDS AND THAT THEY ARE NOT TO
INFORMATION THAT WOULD BE USED
FOR PUBLIC CHARGE OR FURTHER
IMMIGRATION PURPOSES THAT WOULD
POTENTIALLY COMPLICATE THE
SITUATION OF FAMILIES.
AND SO OUR COMMUNITIES ARE
RIGHT NOW IN A LOT OF FEAR.
BUT ALSO THEY FEEL GENERALLY
LEFT OUT.
THEY ALSO FEEL THAT TIME AND
TIME AGAIN THE GOVERNMENT
DEPENDS ON OUR LABOR, DEPENDS
ON OUR COMMUNITIES HAVING TO BE
THE ONES THAT SACRIFICE THE
MOST TO MAKE SURE THAT OTHERS
ARE ABLE TO PULL THROUGH.
THE REALITY IS THAT THERE IS NO
MORE TO SACRIFICE.
WE HAVE GIVEN EVERYTHING TO THE
BATTLEFIELD AND CONTINUE TO DO
SO.
WE URGE THE CITY COUNCIL TO
CONTINUE ENACTING PROGRAMS THAT
WILL INCLUDE UNDOCUMENTED
IMMIGRANT COMMUNITIES TO ENSURE
THAT THEY'RE ABLE TO ENDURE
THIS PANDEMIC AND REMOVE THE
SYSTEMIC BARRIERS.
THANK YOU.
>> THANK YOU SO MUCH FOR YOUR
COURAGE EVERY DAY AND FOR
EVERYTHING THAT YOU'RE DOING TO
PROVIDE RELIEF TO THE COMMUNITY
RIGHT NOW.
WE REALLY APPRECIATE YOU
SHARING THAT PERSPECTIVE ON HOW
FOLKS HAVE BEEN LEFT OUT, EVEN
AT THE FEDERAL AND STATE
ASSISTANCE.
I WANT TO NOTE THAT WE HAVE TWO
MORE PEOPLE, DAVID PARSONS AND
THEN WE ALSO HAVE A MEMBER FROM
THAT WORKS AT DECS I WANT TO
MAKE SURE THAT THEY'RE ON THE
LINE.
DAVID PARSONS, LET'S TURN IT TO
YOU AND THEN GO TO THE UNION
MEMBER.
WELCOME PRESIDENT PARSONS.
>> CAN YOU HEAR ME?
>> YES.
THANK YOU.
>> GREAT.
THANKS CHAIRMAN MOSQUEDA.
MY NAME IS DAVID PARSONS.
I'M THE PRESIDENT OF UAWA LOCAL
4121 WHICH IS THE UNION FOR
MORE THAN 6,000 ACADEMIC
EMPLOYEES AT THE UNIVERSITY OF
WASHINGTON.
I WANT TO THANK YOU FOR
INVITING ME TO SPEAK TODAY
ABOUT HOW OUR MEMBERSHIP WILL
BE IMPACTED DURING AND AFTER
THE PANDEMIC AND PROPOSALS THAT
WE HAVE ABOUT THAT.
FIRST WITH REGARD TO THE
ACADEMIC WORKERS THAT WE
REPRESENT, I WANTED TO POINT
OUT THAT IT IS IMPORTANT TO
UNDERSTAND THAT ALL OF OUR
MEMBERS WORK IN FIXED TERM
APPOINTMENTS WITH END DATES
THAT ARE OFTEN ESTABLISHED LONG
BEFORE THE GOVERNOR'S STAY AT
HOME ORDER.
70% OF OUR MEMBERS' JOBS ARE
SCHEDULED TO END IN THE NEXT
SIX WEEKS.
THAT'S NEARLY 4,400 PEOPLE.
98% OF OUR MEMBERS' JOBS WILL
END WITHIN THE NEXT YEAR.
THAT IS 6,100 PEOPLE.
APPROXIMATELY 40% OF THAT GROUP
ARE NOT U.S. CITIZENS.
THAT IS NEARLY 2,500 PEOPLE.
IF EVEN A FRACTION OF THIS
GROUP FINDS THEMSELVES WITHOUT
WORK WHICH WILL BE LIKELY
WITHOUT AGGRESSIVE INTERVENTION
FROM THE EMPLOYER AND FROM ALL
LEVELS OF GOVERNMENT, THEN
THERE WILL BE IN --
>> I'M SORRY?
>> SO SORRY.
PRESIDENT PARSONS, I WANT TO
NOTE FOR FOLKS I BELIEVE
COUNCIL MEMBER JUAREZ, YOU'RE
OFF MUTE.
HIT MUTE REAL QUICK.
GO AHEAD PRESIDENT PARSONS.
>> GREAT.
SO WHAT WOULD HAPPEN TO OUR
MEMBERS, THEY WOULD BE WITHOUT
INCOME AND WITHOUT HEALTH
INSURANCE.
THIS MEANS THAT IN MOST CASES
EVEN A SINGLE PAYCHECK AWAY
FROM AN INABILITY TO PAY RENT
BECAUSE THE VAST MAJORITY ARE
RENT BURDENED.
THEY ARE AT INCREASED RISK FOR
DEPORTATION, PARTICULARLY
BECAUSE TRAVEL ABROAD IS
HEAVILY RESTRICTED RIGHT NOW.
ALSO IF THEY ARE INTERNATIONAL
STUDENTS AND NOT U.S. CITIZENS
OR SCHOLARS, THEY ARE
INELIGIBLE TO WORK FOR ANOTHER
EMPLOYER AND AGAIN MANY OF THEM
WILL BE INELIGIBLE FOR
UNEMPLOYMENT, TOTALLY
INELIGIBLE, EITHER BECAUSE OF
THEIR NONCITIZEN STATUS OR
BECAUSE OF THEIR STUDENT STATUS
OR BECAUSE THEY HAVE FIXED TERM
APPOINTMENTS.
AS YOU ALL KNOW QUITE WELL,
LONG STANDING PUBLIC HEALTH
RESEARCH SHOWS THAT IN
PANDEMICS LIKE THIS THOSE THAT
ARE MOST VULNERABLE FACE
EXACERBATED HARM.
IT IS CRITICAL THAT WE IDENTIFY
SOURCES OF REVENUE, AGAIN AT
ALL LEVELS OF GOVERNMENT THAT
WILL HELP ACADEMIC WORKERS
VERSUS TECH WORKERS, GROCERY
WORKERS AND ALL OTHER WORKERS
REMAIN EMPLOYED AND ABLE TO
HAVE ACCESS TO SOCIAL SAFETY
NET PROGRAMS THAT ARE SO
CRITICAL.
SUPPORT JOB GROWTH AND HOUSING
MUST BE FUNDAMENTAL TO THIS.
KNOWING THE DETAILS OF THE
RISKS FACED BY THE MEMBERS OF
THE UNION AND MANY OTHER WORKER
ILLUSTRATES HOW URGENT IT IS TO
TAKE ACTION.
SUCH AN URGENT NEED IS NOT
INEXPENSIVE.
WE NEED REVENUE AND ROOT OUT
THE SOURCES OF INEQUALITIES
THAT CREATE THE EXACERBATED
NEED FOR REVENUE.
SHARED WITH ME RECENTLY THAT
THE AMAZON CORPORATION RECEIVED
BETWEEN 2013 AND 2017, $220
MILLION NEXT IN
EXCUSED TAXES FROM THE CITY.
WE HAVE GIVEN A LOT TO
COMPANIES LIKE AMAZON.
NOW IN THIS CRISIS PERHAPS MORE
OF OF US ARE UNDERSTANDING THAT
THIS LEVEL OF GENEROSITY RAISES
THE RISKS THAT RUN ACCEPTABLE.
TAKE STEPS TO FIX.
THIS THE UNION IS JOINING WITH
TECH WORKERS AND OTHERS TO ASK
THAT YOU HELP ALL VULNERABLE
WORKERS AND TAX BIG BUSINESSES
AND DO IT NOW.
THANK YOU VERY MUCH.
>> DAVID, THANK YOU SO MUCH FOR
BEING HERE ON BEHALF OF YOUR
MEMBERS AT THE UNIVERSITY OF
WASHINGTON AND ON BEHALF OF
COMMUNITY AS WELL.
WE REALLY APPRECIATE YOUR
COMMENTS AND DIRECTIVE THERE.
THE LAST SPEAKER WILL BE DAVID,
A MEMBER OF 1199 HEALTH CARE
AND WORKS AT DECS.
WE SEE YOU ON THE LINE.
I BELIEVE YOU'RE ON AUDIO ONLY.
PLEASE GO AHEAD AND UNMUTE
YOURSELF IF YOU CAN.
GREAT.
AND YOU CAN PLEASE GIVE US A
PICTURE WHAT WAS IS HAPPENING
AT DECS AND IN COMMUNITY AS
RESPONSE AS YOU HAVE SEEN
RESPONSES TRY TO SCALE UP TO
MEET THE CRISIS THAT IS COVID
AND WHERE THE CURRENT NEEDS ARE
IN THE 2020 RESPONSE PACKAGE IF
POSSIBLE.
>> FIRST OF ALL, THANK YOU VERY
MUCH FOR HAVING ME.
THANK YOU VERY MUCH FOR YOUR
EFFORTS AT ADDRESSING THIS
SITUATION, ESPECIALLY YOU
COUNCIL WOMEN MOSQUEDA.
WHERE TO START?
DECS, I'VE BEEN THERE FOR FIVE
YEARS NOW.
AND IT IS JUST WILDLY DIFFERENT
[AUDIO DIFFICULTIES]
>> DAVID, WE LOST YOU.
IF YOU'RE STILL WITH US, IT
MIGHT BE A SIGNAL.
>> HELLO.
CAN YOU HEAR ME NOW?
>> YES.
WHEREVER YOU'RE AT, THAT'S A
GOOD SPOT TO STAND.
YOU SAID -- WE LOST YOU AT
WILDLY DIFFERENT.
>> YES.
I MEAN, WITH THE MAIN SHELTER
CLOSED, WITH BASICALLY ALL OF
OUR SHELTERS CLOSED AND USING
THE EXHIBITION HALL, ALL OF OUR
CASE MANAGERS ARE OPERATING
PART-TIME CASE MANAGEMENT AT
BEST AND PRIMARILY OPERATING
JUST AS ENTRY LEVEL STAFF, JUST
TO -- JUST TO MAKE THINGS WORK
IN OUR HOUSING BUILDINGS, IN
THE RED LION.
BECAUSE WE HAVE SUCH A HIGH
LEVEL OF PEOPLE THAT ARE
CALLING OUT SICK BECAUSE --
WELL, JUST BECAUSE THEY ARE
OUT.
THEY CAN'T GET THERE.
EVERYTHING THAT IS GOING ON
RIGHT NOW, IT'S BEEN VERY, VERY
DIFFICULT FOR STAFF TO JUST
MANAGE.
ONE WAY OR ANOTHER WE WILL GET
THROUGH THIS.
WHAT I AM LOOKING FOR IS SOME
SORT OF PLAN FOR HOW THE
HOMELESS LANDSCAPE IS ACTUALLY
GOING TO CHANGE AFTER THIS.
THERE'S GOING TO BE SOME LONG-
TERM SHIFTS, I BELIEVE.
AND GETTING AHEAD OF THAT I
THINK WILL BE REALLY IMPORTANT.
AS OF RIGHT NOW, WE CERTAINLY
JUST NEED MORE FLEXIBILITY IN
OUR FUNDING.
I KNOW SPECIFICALLY FOR DECS
THERE IS AN AWFUL LOT OF VERY
PROGRAM SPECIFIC FUNDING.
AND THOSE PROGRAMS ARE ALREADY
VERY TIGHTLY -- IT IS VERY
TIGHT.
AND I JUST DON'T SEE HOW THAT'S
REQUESTING TO WORK AS THIS IS
LIFTED AND MORE PEOPLE ARE HURT
AND WE'RE GOING TO GET A MUCH,
MUCH BROADER DEMOGRAPHIC OF
HOMELESS IS MY PREDICTION WHEN
ALL OF THIS ENDS.
AND I'M REALLY, REALLY WORRIED
ABOUT WHAT THINGS ARE GOING TO
LOOK LIKE A YEAR FROM NOW.
AND SO I'M REALLY HOPING TO GET
MORE FUNDING, MORE HOUSING,
MORE CLINICAL SERVICES, MORE --
MORE EVERYTHING BECAUSE --
BECAUSE WE'RE HURTING RIGHT
NOW.
ANYWAYS, THANK YOU VERY MUCH
FOR CONSIDERING THIS.
AND PLEASE, PLEASE PROVIDE JUST
MORE FOR US.
BECAUSE A LOT OF PEOPLE ARE IN
AN AWFUL LOT OF NEED RIGHT NOW.
THANK YOU.
>> DAVID, THANK YOU FOR SHARING
THAT PERSPECTIVE WITH US TODAY.
AND FOR ALL THAT YOU'RE DOING
TO CARE FOR THE MOST VULNERABLE
IN OUR CITY THROUGH DECS AND
THE FOLKS LIVING UNSHELTERED.
THANK YOU FOR SHARING YOUR TIME
AND PUTTING YOURSELF OUT THERE
EVERY DAY.
FOLKS, WE DO HAVE ABOUT FIVE TO
TEN MINUTES.
WE KNOW THAT WE HAVE A HANDFUL
OF QUESTIONS.
BUT PLEASE I HOPE YOU CAN SEE
US.
THANK YOU FOR YOUR GENEROUS
COMMENTS TODAY.
COUNCIL MEMBER LEWIS YOU HAVE
THE FLOOR.
>> THANK YOU CHAIR.
THANK YOU TO THE PANELISTS FOR
JOINING US AND PROVIDING
PERSPECTIVE FROM SMALL LABOR
SERVICE PROVIDERS.
THANK YOU SO MUCH.
MY QUESTION IS FOR MOLLY, IF
MOLLY MOON IS STILL ON.
THERE SHE IS.
MOLLY, FIRST OFF I'M GOING TO
SAY REALLY APPRECIATE THE
DISTRIBUTION OF THE PINTS TO
THE GROCERY STORES.
STRAWBERRY IS MY FAVORITE SO
FAR.
JUST A PSA TO EVERYBODY, IT IS
18-OUNCES OF ICE CREAM PER
PINT.
SO A SCOOPER'S PINT I GUESS IS
18-OUNCES.
THAT'S NOT MY QUESTION.
BUT I JUST WANT TO FLAG THAT
THAT IS GREAT AND IT HAS BEEN
GOOD TO SEE THOSE THERE AND I
WILL CONTINUE USING THEM UNTIL
THE RADIO HE TAIL STORES ARE
OPEN AGAIN.
I DID JUST WANT TO ASK BECAUSE
I'VE GOTTEN A NUMBER OF
COMMUNICATIONS OBVIOUSLY ON ALL
SIDES OF THE PROPOSALS.
ONE OF THE COMMON E-MAILS THAT
I'VE BEEN RECEIVING AS AN
ARGUMENT AGAINST IS FROM SMALL
BUSINESS OWNERS WHO WHILE THEY
ARE NOT DIRECTLY IMPACTED BY
THE TAX MAKE SORT OF LIKE A
SUPPLY CHAIN AND ECOSYSTEM
ARGUMENT THAT THIS TAX WILL
SOMEHOW GET PASSED ON TO THEM
OR THAT IT WILL BE FACTORED
INTO THEIR COST OF DOING
BUSINESS.
AS SOON WHO RUNS A LOCAL SMALL
BUSINESS WITH MULTIPLE CHAINS,
I WANTED TO KIND OF ASK YOU
WHAT YOUR RESPONSE IS TO THAT
ARGUMENT?
AND THOSE CONSIDERATIONS.
AND WHAT SOME POSSIBLE THINGS
COULD BE CONSIDERED TO LIMIT
THAT KIND OF AN EFFECT OR AN
IMPACT OF A CITY TAX LIKE THIS?
>> THANKS FOR THE QUESTION.
I THINK THIS IS EXACTLY THE
KIND OF THING THAT, YOU KNOW,
JUST NEEDS TO BE THOUGHTFULLY
FIGURED OUT.
I MOSTLY BUY FROM VERY SMALL
BUSINESSES THAT WOULD NOT BE
TAXED.
BUT I CAN SEE HOW SOME OF MY
PEERS ARE BUYING INGREDIENTS
FROM MUCH LARGER COMPANIES THAT
WOULD MEET -- IS IT RIGHT NOW
$7 MILLION IN PAYROLL.
IS THAT THE THRESHOLD?
THAT IS BEING PROPOSED?
>> YEAH.
>> SO I CAN SEE THAT THAT WOULD
BE AN ISSUE.
I THINK, YOU KNOW, DISTRIBUTORS
TO GROCERY OR FOOD
MANUFACTURERS OR FOOD
DISTRIBUTORS TO GROCERY, THAT
COULD BE A PART OF WHAT IS
THOUGHT ABOUT FOR THE GROCERY
CARVE OUT, THAT INDUSTRY CARVE
OUT.
I DON'T TEND TO LOVE INDUSTRY
CARVE-OUTS IN GENERAL FOR TAX
BILLS.
BUT I THINK IN THIS CASE REALLY
THINKING ABOUT CONTINUING TO
MAKE FOOD AS AFFORDABLE AS
POSSIBLE AND CONTINUING TO MAKE
HEALTH CARE AS AFFORDABLE AS
POSSIBLE IS A GOOD THING TO
THINK ABOUT IN THIS
LEGISLATION.
SO I CAN -- I CAN SEE THAT
ARGUMENT.
I THINK THE OTHER THING THAT
MANY OF MY PEERS ARE WORRIED
ABOUT EVEN MORE THAN OUR
VENDORS BEING TAXED AND THEN
PASSING COSTS ON TO US IS JUST
CUSTOMERS WORKING FOR THESE
LARGE COMPANIES.
AND HOW THAT MIGHT IMPACT THOSE
CUSTOMERS, YOU KNOW, REMAINING
IN SEATTLE.
AND THAT'S WHERE I THINK, YOU
KNOW, THE UNIFYING MESSAGE
COMES IN.
I THINK IF MOST PEOPLE WHO WORK
FOR THESE LARGE COMPANIES THAT
MAY NEED TO PAY THIS TAX
UNDERSTAND WHAT IT'S GOING FOR,
I -- I JUST -- I DON'T KNOW.
I BELIEVE IN PEOPLE WANTING TO
TAKE CARE OF THEIR COMMUNITY.
AND I DON'T THINK AMAZON WANTS
TO LEAVE SEATTLE.
AND I THINK THERE'S A WAY TO
INVITE THEM TO PARTICIPATE.
>> MOLLY, THANK YOU SO MUCH.
COUNCIL MEMBER LEWIS, DID YOU
HAVE ADDITIONAL COMMENTS?
ANY FOLLOW-UP?
>> NO.
THAT WAS IT.
THANK YOU SO MUCH MADAM CHAIR.
>> YOU'RE WELCOME.
THANK YOU AGAIN, MOLLY.
I'M LOOKING AT OUR OTHER
COUNCIL COLLEAGUES.
COUNCIL MEMBER SAWANT.
>> THANK YOU.
I HAD A QUESTION AND A COMMENT.
A QUESTION IS TO DAVID PARSONS.
AND IF HE IS NOT AVAILABLE,
THEN I CAN DIRECT THE QUESTION
TO KATIE WILSON.
DAVID MENTIONED AS BADLY
IMPACTED AS THE GRADUATE
STUDENTS ARE GOING TO BE, THAT
OUR HOMELESS NEIGHBORS ARE IN A
VERY DIFFICULT SITUATION.
KATIE MENTIONED THAT AS WELL.
I WONDERED IF KATIE WANTED TO
QUICKLY TALK ABOUT HOW A TAX
LIKE THIS THAT IS GOING TO --
WILL HAVE AN IMPACT ON THE
PEOPLE WHO ARE CURRENTLY
EXPERIENCING HOMELESSNESS.
THERE IS ONE CLARIFICATION.
THE TAX AS IT IS WRITTEN RIGHT
NOW, THE LEGISLATION, IT
EXEMPTS ALL NONPROFITS AND
GROCERY STORES.
ONLY THE PROFITERRING PHARMA
COMPANIES ARE NOT EXEMPT IN
THIS TAX.
FRED HUTCHINSON WILL BE EXEMPT.
AS FAR AS JOB CREATIVITY, I
AGREE WITH MOLLY MOON'S
COMMENTS.
WE ABSOLUTELY NEED TO CREATE A
VIRTUAL CYCLE OF JOBS.
THIS IS WHAT THIS TAX WOULD
CREATE.
IT WOULD CREATE JOBS AND
AFFORDABLE HOUSING.
IT WILL HELP THE NEIGHBORHOOD
TACO TRUCK WHICH CAN COME BACK
TO BUSINESS BECAUSE
CONSTRUCTION WORKERS WILL BE
BUYING LUNCH FROM THEM AND SO
ON AND SO FORTH.
SO IN THAT SENSE, SMALL
BUSINESSES WILL BE POSITIVELY
IMPACTED.
>> THANK YOU.
WE WILL TURN IT OVER TO DAVID
PARSONS OR KATIE, IF SHE IS
STILL AVAILABLE.
OKAY.
NOT HEARING THEM, ARE THERE ANY
OTHER PANELISTS THAT DID HAVE A
COMMENT IN RESPONSE?
OKAY.
COUNCIL MEMBER SAWANT, WE WILL
FOLLOW UP WITH THE FOLKS THAT
PROVIDED THE DIRECT RESPONSES
THAT YOU'RE INQUIRING ABOUT AND
GET ADDITIONAL INFORMATION FOR
AND YOU OTHERS IN THE VIEWING
PUBLIC AND ALSO TO OUR COUNCIL
COLLEAGUES.
PLEASE DO JOIN ME IN A HUGE
NOTE OF APPRECIATION FOR ALL OF
THE FOLKS THAT JOINED US BY
PHONE TODAY.
WE APPRECIATE YOUR PERSPECTIVE
AND EVERYTHING THAT YOU'RE
DOING TO SERVE THE COMMUNITY
AND PROVIDE COMMUNITY IN THIS
TIME OF COVID.
THANK YOU FOR BEING WITH US
TODAY.
AND WE LOOK FORWARD TO
CONTINUING THE CONVERSATION
WITH YOU AS WE CONTINUE THIS
DIALOGUE ABOUT 2020 ASSISTANCE
AND HOW WE CAN BEING THERE FOR
SMALL BUSINESSES AND THOSE WHO
NEED HEALTH CARE, FOOD AND
HOUSING.
WITH THAT, I WOULD LIKE TO MOVE
ON TO ITEMS TWO THROUGH FOUR.
WILL THE CLERK READ THE SHORT
TITLES OF THE ITEMS AND I WILL
GIVE YOU A LITTLE BIT OF MY
PERSPECTIVE ON HOW TO ENGAGE IN
THE CONVERSATION WITH CENTRAL
STAFF AND OUR COUNCIL
COLLEAGUES TODAY.
MADAM CLERK.
>> AGENDA ITEMS 2 THROUGH 4.
ORDINANCE RELATING TO TAXATION,
IMPOSING A PAYROLL EXPENSE TAX
ON PERSONS ENGAGING IN BUSINESS
RELATING TO THE TO THE GENERAL
FUND. FOR LOW INCOME
HOUSEHOLDED IMPACTED BY THE
CRISIS IN 2020..
>> COUNCIL COLLEAGUES AS I
NOTED AT THE BEGINNING OF THIS
MEETING, THIS IS A CHANCE FOR
US TO HAVE A CONVERSATION ABOUT
IMMEDIATE RELIEF FOR THOSE WE
JUST HEARD ABOUT IN THE
COMMUNITY WHO ARE SUFFERING DUE
TO THE PUBLIC HEALTH CRISIS AND
ECONOMIC CRISIS CREATED BY
COVID.
AS WE THINK ABOUT ASSISTANCE IN
2020 WHETHER IT IS FOOD
ASSISTANCE, SMALL BUSINESS
ASSISTANCE, HOUSING ASSISTANCE,
WE KNOW THE FUNDING NEEDS TO
COME FROM SOMEWHERE.
WE APPRECIATE THE $135.1
MILLION THIS WE KNOW WILL COME
TO THE CITY OF SEATTLE FROM
FEDERAL RELIEF AND THERE IS
ONGOING CONVERSATIONS ABOUT HOW
TO GET ADDITIONAL REVENUE.
EVEN WITH THAT ADDITIONAL
SUPPORT, THERE WILL BE
INCREASED NEED IN THE COMMUNITY
THAT WE SEE CURRENTLY AND NEED
THAT WE HAVEN'T SEEN CROP UP
YET.
OUR INTENT IS TO HAVE A
CONVERSATION ABOUT HOW WE CAN
FREE UP DOLLARS TO GET OUT TO
THE COMMUNITY AND THE
CONVERSATION YOU WILL HEAR FROM
CENTRAL STAFF WILL FOCUS ON
BOTH AN INTERFUND LOAN
AGREEMENT THAT COULD BE A
POTENTIAL SOURCE FOR ADDITIONAL
REVENUE OUT THE DOOR IN 2020
FOR IMMEDIATE RELIEF AND A TAX
SOURCE THAT COULD BE USED TO
BACKFILL THOSE DOLLARS, ANY
DOLLAR THAT'S WERE USED FOR
THAT.
WE APPRECIATE CENTRAL STAFF'S
PRESENTATION TODAY AND WALKING
US THROUGH THE BILL THAT'S WE
DID NOT GET A CHANCE TO TALK
ABOUT LAST WEEK.
AGAIN, I'M GOING TO TURN OVER
TO DIRECTOR TO TALK ABOUT THE
FLOW OF CONVERSATION.
AT THE END OF THE PRESENTATION
ON EACH BILL, I WILL DO WHAT WE
DID LAST TIME AND WALK THROUGH
EACH OF THE COUNCIL MEMBERS BY
ORDER THAT WE DID INTRODUCTIONS
TODAY OR ROLL CALL AND CONCLUDE
WITH ADDITIONAL COMMENTS OR
SUMMARY FROM THE SPONSORS.
WE HEARD FROM COUNCIL MEMBER
MORALES AND SAWANT LAST WEEK
THAT ARTICULATED THEIR INTENT
OF THE LEGISLATION AND WALKING
US THROUGH THE LEGISLATION AS
THE BILL SPONSORS.
TODAY WE'RE GOING TO HAVE THE
TWO BILLS THAT WE DIDN'T GET
TO.
I UNDERSTAND THAT WE HAVE FROM
CENTRAL STAFF SOME ANSWERS TO
QUESTIONS THAT WERE ASKED
DURING THE LAST MEETING.
IF WE HAVE THE CHANCE TO GET TO
THOSE, I KNOW A LOT OF FOLKS
ARE INTERESTED IN THAT
DISCUSSION AS WELL.
WITH THAT I'M GOING TO TURN IT
OVER TO DIRECTOR ARASTAD WHO
WILL WALK US THROUGH THE
PRESENTATION AND THEN TURN IT
OVER TO COLLEAGUES.
>> ARE YOU WITH US TODAY.
>> I AM.
THANK YOU, MADAM CHAIR.
YOU DID A GREAT JOB OF
SUMMARIZING THE POINTS THAT I
WAS GOOD TO MAKE.
SO I'LL MAKE MY COMMENTS BRIEF.
TODAY IS THE SECOND
PRESENTATION BY THE CENTRAL
STAFF TEAM CONCERNING THE
PROPOSED PAYROLL EXCEPTIONS TAX
PACKAGE.
LAST WEDNESDAY TRACY AND ALLIE
DISCUSSED THE SPENDING PLAN
WHICH IS ONE OF THE THREE BILLS
IN THE PROPOSED TAX PACKAGE.
TODAY, TOM MIKESELL WILL
DESCRIBE THE TAX ITSELF.
AND DAN EDER, THE INNER FUND
MECHANISM TO ALLOW FOR THE
EMERGENCY SPENDING IN 2020.
IF TIME ALLOWS, WE WILL TURN TO
ALLIE AND TRACY AS WELL AS AMY
GORE AND YOLANDA TO HIGHLIGHT
SOME OF THE QUESTIONS THAT YOU
POSED LAST WEDNESDAY.
AND SINCE LAST WEDNESDAY
CONCERNING THE SPENDING PLAN.
AS YOU MENTIONED, MADAM CHAIR,
WE WOULD LIKE TO ASK THAT THE
COUNCIL MEMBERS HOLD QUESTIONS
UNTIL THE CONCLUSION OF EACH
PRESENTATION.
AND IF YOU HAVE ADDITIONAL
QUESTIONS FOLLOWING TODAY'S
DISCUSSIONS, SEND THOSE
QUESTIONS TO WITH COUNCIL
MEMBER MOSQUEDA'S OFFICE TO
GIVE US TIME TO DEVELOP
RESPONSES AND GET THOSE
RESPONSES TO YOU BEFORE THE
NEXT MEETING.
SO WITH THAT, I WILL SHARE MY
SCREEN AND TOM WILL NOW BEGIN
WITH A SIX-POINT OVERVIEW OF
THE PAYROLL EXCEPTIONS TAX BILL
BEFORE PAUSING FOR QUESTIONS.
AND THEN FOLLOWED BY DAN EDER
WHO WILL DO THE SAME FOR THE
INTERFUND LOAN BILL.
I'M GOING TO SHARE MY SCREEN.
THANK YOU.
>> THANK YOU VERY MUCH
DIRECTOR.
AND THANKS TO YOUR INCREDIBLE
TEAM AT CENTRAL STAFF AS WELL
FOR THEIR ONGOING RESEARCH AND
RESPONSE TO THE VARIOUS
QUESTIONS.
I WANT TO UNDERSCORE IF FOLKS
HAVE QUESTIONS THAT THEY WANT
CENTRAL STAFF TO RESPOND TO,
THE DEADLINE IS NOON ON FRIDAY.
AND THANKS IN ADVANCE FOR ALL
OF YOUR WORK.
AS WE HAVE YOU TEE UP YOUR
SCREEN, I'LL TURN IT BACK OVER
TO YOUR TEAM FOR WALKING US
THROUGH THE LEGISLATION.
I WANT TO NOTE FOR FOLKS YOU
DID RECEIVE CENTRAL STAFF MEMOS
TWO FRIDAYS AGO ON ALL OF THE
LEGISLATION.
WE ALSO HAVE THAT IN OUR HIP
POCKET.
>> THANK YOU FOR THAT REMINDER.
WE WILL MOVE ON TO TOX
MIKESELL'S OVERVIEW.
>> GOOD MORNING.
IT IS UNCLEAR IF I'M ON.
CAN YOU HEAR ME.
>> WE CAN HEAR YOU.
>> THANK YOU, KIRSTEN.
GOOD MORNING.
THANK YOU CHAIR MOSQUEDA AND
MEMBERS OF THE SELECT BUDGET
COMMITTEE THE.
AS KIRSTEN DESCRIBED I WILL
GIVE A REVIEW OF THE COUNCIL
BILL WHICH ENCLOSES A PEA ROLEX
PENCE TAX.
I'LL DISCUSS THE PROVISIONS OF
THE TAX BILL AS INTRODUCED.
I'M GOING TO COVER ELEMENTS
INCLUDING THE ANNUAL AMOUNT OF
REVENUE THAT IS GENERATED, THE
STRUCTURE THAT IS DESIGNED TO
COLLECT THAT REVENUE.
WHAT BUSINESSES WOULD GENERALLY
BE -- [AUDIO DIFFICULTIES]
AND GO INTO THE EMERGENCY
CLAUSE PROVISION AND HOW THAT
PLAYS INTO THE BILL'S ADOPTION.
AND THEN DISCUSS -- DISCUSS THE
ELEMENTS OF THE IMPOSITION DATE
AND THE DUE DATE.
WE WILL GO TO THE NEXT SLIDE,
PLEASE.
>> THANK YOU.
AS NOTED IN THE SUMMARY, THE
REVENUE MAP $500 MILLION PER
YEAR.
THE TAX WOULD GO INTO EFFECT ON
JUNE 20 -- OR JUNE 1st OF 2020.
AND IT --]
AUDIO DIFFICULTIES [
>> CAN I INTERRUPT?
YOU ARE BREAKING UP.
I'M NOT SURE IF YOU CAN PUT THE
MIC IN A DIFFERENT LOCATION.
>> WE JUST NEED THE LAST POINT.
>> LET'S SEE IF I CAN DO
ANYTHING.
>> THAT SOUNDS BETTER.
>> OKAY.
LET'S TRY THIS.
SO I THINK I'VE COVERED THE
REVENUE.
LET ME KNOW IF -- [AUDIO
DIFFICULTIES]
>> I'M FROM IT.
YOU HAVE THE OPTION TO CALL IN
TO THE MEDIA AS WELL.
YOU CAN CALL INTO THE MEETING
WITH YOUR PHONE.
THAT MIGHT GIVE YOU BETTER
AUDIO.
UNLESS YOU WANT TO -- I DON'T
KNOW IF YOU HAVE ANY OTHER
DEVICES GOING ON IN YOUR
HOUSEHOLD RIGHT NOW.
JUST IF YOU WANT TO DO THAT.
>> OKAY.
I'M TRYING TO MAKE -- IS THAT
ANY BETTER.
>> YOU ARE, TOM.
IF THERE IS A PROBLEM PERHAPS
WHAT I WILL DO IS ASK FOR THE
NEXT BILL TO BE TEED UP AND WE
CAN HAVE DAN WALK YOU THROUGH
THAT ONE WHILE YOU GET YOUR
AUDIO SET UP.
FOR NOW, TOM, YOU ARE COMING
THROUGH LOUD AND CLEAR.
YOUR IMAGE IS A LITTLE BLURRY
BUT WE CAN DEFINITELY HEAR YOU.
WHY DON'T WE GO AHEAD AND GO
AHEAD WITH THE PRESENTATION AS
IS IT AND WE WILL LET YOU KNOW
IF WE CAN'T HEAR YOU.
>> GREAT.
THANK YOU.
>> SO SLIDE 4, PLEASE, KIRSTEN.
>> UH-HUH.
>> SO THIS IS GENERALLY THE
GENERAL STRUCTURE OF THE TAX.
SO AS HAS BEEN DESCRIBED AND
DISCUSSED EARLIER IN TODAY'S
MEETING, THE TAX IS A 1.3% TAX
ON PAYROLL THAT IS ASSIGNED TO
SEATTLE BUSINESS.
IT GENERALLY APPLIES TO
BUSINESSES WITH $7 MILLION OF
ANNUAL PAYROLL IN THE PRIOR
YEAR.
THERE ARE EXEMPT CATEGORIES
THAT I WILL DISCUSS FURTHER.
AND SO ONE OF THE CONCEPTS IS
WHAT IS -- WHAT DO I MEAN WHEN
I SAY SEATTLE ASSIGNED PAYROLL.
AND SO THIS IS A SIMILAR
CONSTRUCTION THAT IS USED FOR
OUR -- TO THESE CURRENT
BUSINESS AND OCCUPATION TAX.
AND IT IS A WAY OF DEFINING THE
TAX BASE SO THAT IT RELATES TO
THOSE ACTIVITIES THAT ARE
OCCURRING IN SEATTLE AND NOT IN
OTHER JURISDICTIONS.
SO SIMILAR TO OUR EXISTING TAX
THERE, IS A THREE-PART TEST
THAT IS APPLIED IN
ADMINISTERING THIS BILL AS
PROPOSED.
ONE IS DETERMINING IF THE
INDIVIDUAL IS PRIMARILY
ASSIGNED SO A PLACE OF BUSINESS
WHERE THAT EMPLOYEE WORKS IS IN
SEATTLE, THAT WOULD BE THE
FIRST CHECK.
IF AN EMPLOYEE IS NOT PRIMARILY
ASSIGNED TO ONE SPECIFIC
LOCATION, BUT --
THE ENTIRE AMOUNT OF THAT
PAYROLL EXPENSE WOULD BE
ASSIGNED.
AND THEN FINALLY IF THE
EMPLOYEE IS PRIMARILY ASSIGNED
TO ANY ONE PARTICULAR LOCATION
OF BUSINESS BUT THEY DO NOT
PERFORM 50% OR MORE OF THEIR
ACTIVITIES IN ANY ONE PLACE BUT
THEY DO RESIDE IN SEATTLE, THAT
EMPLOYEE WOULD BE ASSIGNED.
NEXT SLIDE.
>> SO HAVING QUESTIONS SINCE
THE BILL WAS INTRODUCED ABOUT
THE TAX WOULD APPLY IN THE
BUSINESS SITUATION.
AND HERE ARE A FEW OF THE MOST
FREQUENT QUESTIONS THAT ARE
ASKED.
I WOULD NOTE THAT THE
INDEPENDENT CONTRACTOR IS --
[AUDIO DIFFICULTIES]
>> THAT IS INCLUDED.
SO THESE ARE INDEPENDENT
CONTRACTORS.
GIG ECONOMY.
AND THAT'S WHAT WE'RE TALKING
ABOUT HERE.
WORK PERFORMED BY THOSE
INDEPENDENT CONTRACTORS FACTOR
INTO THE CALCULATION OF A
BUSINESS' PAYROLL AGAINST THE
$7 MILLION THRESHOLD.
AND THE KEY HERE IS IF A
BUSINESS IS EMPLOYING
INDEPENDENT CONTRACTOR AND THAT
INDEPENDENT CONTRACTOR'S
PAYROLL IS NOT BEING INCLUDED
IN SOME OTHER BUSINESS, THEN
THAT -- THE PAYMENT TO THAT
INDEPENDENT CONTRACTOR WOULD BE
INCLUDED IN THAT BUSINESS'
PAYROLL EXPENSE.
SO, AGAIN, THAT IS SPECIFICALLY
NOTED IN THE LEGISLATION.
THE NEXT TWO THAT I WILL
DISCUSS BRIEFLY ARE RATHER
INTERPRETATIONS.
>> ONE OF THESE ARE INTEGRATED.
IF A BUSINESS ADVERTISES AND
SPEAKS ABOUT ITSELF AS ONE
LARGER ENTITY BUT IN FACT COULD
BE A COLLECTION OF SMALLER
INDEPENDENTLY OPERATED
BUSINESSES THAT FUNCTION UNDER
A SINGLE MANAGEMENT CONSULTING
GROUP.
FOR THE PURPOSES OF CONCERNING
WHETHER OR NOT THOSE
BUSINESSES, HOW THEY CALCULATE
THEIR 7 MILLION -- THEIR
PAYROLL AGAINST THE $7 MILLION
THRESHOLD, EACH ONE OF THOSE
INDEPENDENT BUSINESSES WOULD BE
MEASURED [AUDIO DIFFICULTIES]
A LARGER -- A RESTAURANT
ENTERPRISE THAT OPERATES A
NUMBER OF DIFFERENT RESTAURANTS
[AUDIO DIFFICULTIES]
INDEPENDENTLY LICENSED.
AND FINALLY THIS WILL BE MORE
FAMILIAR.
BUT THE CONCEPT OF A FRANCHISE.
SO THERE ARE [AUDIO
DIFFICULTIES]
EACH ONE OF THOSE FRANCHISES
WILL HAVE ITS OWN DISCREET
INDIVIDUAL BUSINESS LICENSE.
SO RATHER THAN SAY ALL
McDONALD'S IN THE CITY, JUST TO
USE A FAMILIAR EXAMPLE,
TALLYING UP THE PAYROLL
EXPENSES, THE PURPOSE OF THIS
BILL, EACH INDIVIDUAL
McDONALD'S WOULD DETERMINE
WHETHER OR NOT THEIR PAYROLL
EXPENSE IS ABOVE OR BELOW.
SO I UNDERSTAND THOSE ARE
COMPLEX TOPICS.
HOPEFULLY THAT HELPS SHED A
LITTLE LIGHT HOW THE TAX WOULD
APPLY IN THIS CASE.
NEXT SLIDE, PLEASE.
>> TOM, IS THIS A GOOD POINT
FOR US TO JUMP IN AND ASK
QUESTIONS.
>> I'M NOT FAR AWAY.
I THINK WE CAN GET THROUGH IT
PRETTY QUICKLY.
>> LET'S DO IT.
>> OKAY.
>> TURN IT BACK OVER TO YOU.
>> OKAY.
THANK YOU.
SO THE BUSINESSES THAT WOULD
GENERALLY BE SUBJECT TO THE TAX
WOULD BE THOSE ABOVE $7 MILLION
OF PAYROLL ANNUALLY IN PRIOR
YEAR.
THAT DOES INDEX WITH INFLATION
STARTING IN 2021.
THERE ARE A NUMBER OF
EXEMPTIONS.
THE NONPROFIT ORGANIZATIONS,
EDUCATION EMPLOYERS, RETAIL AND
-- [AUDIO DIFFICULTIES]
NOT SUBJECT TO TAXATION.
[AUDIO DIFFICULTIES]
NEXT SLIDE, PLEASE.
KIRSTEN.
>> YES.
>> THANK YOU.
OKAY.
SO THIS IS THE LAST SLIDE AND
THEN WE CAN GO INTO SOME
QUESTIONS.
I MENTIONED EARLIER THE TAX IS
EFFECTIVE JUNE 1st, 2020.
THERE WILL BE TIME TO SET UP
THEIR AUDIT OUTREACH AND
COLLECTIONS CAPABILITIES.
SO THERE'S ABOUT A YEAR AND A
HALF FOR THAT.
BUSINESSES WILL BE RESPONSIBLE
FOR DETERMINING AND MAINTAINING
RECORDS TO CALCULATE THEIR TAX
LIABILITY.
HOWEVER, TAX PAYMENTS WILL NOT
BE COLLECTED UNTIL THE FINAL
TAX PAYMENT OF JANUARY -- OF
THE 2021 FISCAL YEAR, WHICH IS
THE FINAL QUARTERLY PAYMENT,
WHICH IS WHAT WE DO BY FEBRUARY
OF 2022.
FINALLY THE EMERGENCY CLAUSE.
THE BILL AS PROPOSED AND AS
INTRODUCED INCLUDES AN
EMERGENCY CLAUSE PROVISION
WHICH REQUIRES A THREE QUARTERS
CITY COUNCIL VOTE AND THE
EFFECT. SIGNATURE TO GO INTO
AND IT WOULD HAVE AN IMMEDIATE
EFFECTIVE DATE IF THOSE TWO
CRITERIA ARE MET.
AND THAT'S THE CONCLUSION OF MY
PRESENTATION.
>> THANK YOU VERY MUCH.
IS THERE ANYTHING ELSE FROM
YOUR PERSPECTIVE BEFORE WE DO
QUESTIONS.
>> NO.
I WOULD ADD THAT I KNOW SOME
PARTS OF THE PRESENTATION WERE
DIFFICULT TO HEAR.
AND WE APOLOGIZE FOR THAT.
BUT IF YOU WOULD LIKE TO HAVE
AN OFF LINE INDIVIDUAL BRIEFING
TO DISCUSS THAT PART OF THE
PRESENTATION, WE WOULD BE HAPPY
TO DO THAT.
>> THANK YOU VERY MUCH.
WE WILL GO THROUGH THE ROLL
CALL TO SEE IF ANYONE HAS ANY
QUESTIONS.
IT IS THE FAIREST WAY TO GET
THROUGH THE FULL LIST TO SEE IF
ANYONE DOES.
I WOULD LIKE TO START WITH
COUNCIL MEMBER PEDERSEN.
ANY QUESTIONS FROM YOU?
HEARING NONE.
GREAT.
COUNCIL MEMBER SAWANT AND
MORALES, WE'RE GOING TO TURN TO
YOU LAST AS THE SPONSORS OF
THIS AND WE WILL GET TO YOU
THOUGH.
AND THAT WAY THE FOLK THAT'S
ARE NEWER TO THE LEGISLATION
CAN ASK QUESTIONS FIRST.
COUNCIL MEMBER STRAUSS.
ANY QUESTIONS FROM YOU?
HEARING NONE.
COUNCIL PRESIDENT GONZALEZ.
HEARING NONE.
COUNCIL MEMBER JUAREZ.
HEARING NONE.
COUNCIL MEMBER LEWIS.
>> THANK YOU, MADAM PRESIDENT.
I HAVE A QUICK QUESTION.
AND THIS MAY HAVE BEEN COVERED
BUT SIMILARLY I HAD TROUBLE
WITH TOM GOING IN AND OUT A
LITTLE BIT.
I WANTED TO ASK, GIVEN THE
COVID CRISIS, HAS THERE BEEN
ANY ANALYSIS OF THE IMPACT THAT
WOULD HAVE GOING FORWARD ON THE
REVENUE ESTIMATES AND HOW MUCH
WOULD COME IN DUE TO THIS TAX?
IT SOUNDS LIKE THE UNIVERSE
WHERE THE INITIAL 2020 PAYMENT
WOULD BE KIND OF FIXED BECAUSE
IT WOULD BE BASED ON LAST
YEAR'S PAYROLL.
I DON'T KNOW IF I FOLLOWED
THAT.
BUT GOING FORWARD, I WONDER IF
THERE'S BEEN REVISIONS
DOWNWARD, UPWARD OR WHEREVER
BASED ON THE PROJECTED IMPACT
THAT COVID MIGHT HAVE ON THE
ECONOMY, THE PAYROLL OF FIRMS
OR EVEN THE POSSIBLE BANKRUPTCY
OF SOME FIRMS.
JUST WANTED TO ASK THAT
QUESTION.
>> CAN YOU HEAR ME?
>> YES.
>> OKAY.
GREAT.
I APOLOGIZE FOR THE AUDIO.
I'M TRYING TO FIGURE OUT WORK-
AROUNDS HERE.
SO COUNCIL MEMBER STRAUSS,
THANK YOU FOR YOUR QUESTION.
WITH REGARDS TO THE -- OR
LEWIS.
MY APOLOGIES.
WITH REGARDS TO COVID-19
IMPACTS, SO WHEN THE PROPOSAL
WAS BEING ORIGINALLY DRAFTED,
WE WERE EARLY IN THE PUBLIC
HEALTH CRISIS AND RECOGNIZED
THAT AN ADJUSTMENT WOULD BE IN
ORDER THOUGH LITTLE INFORMATION
TO GUIDE WHAT THAT ADJUSTMENT
WOULD BE.
>> I APOLOGIZE.
I'M GOING TO ASK TOM TO CALL
BACK IN AND WE WILL PUT COUNCIL
MEMBER LEWIS' QUESTION ON HOLD
REALLY QUICKLY.
WHAT I WOULD LOVE -- SINCE
WE'RE RUNNING A LITTLE BIT OF
TIME IS HAVE TOM CALL BACK IN
USING AUDIO ONLY.
YOU CAN WALK US THROUGH THE
SLIDES AT THAT POINT SO WE CAN
HAVE THE PRESENTATION DONE
AGAIN.
WE'RE A LITTLE AHEAD OF TIME.
SO I THINK THERE IS TIME TO DO
THAT.
IT IS REALLY HARD TO HEAR YOU
AND I THINK IF YOU JUST CALLED
IN USING YOUR PHONE INSTEAD OF
úTRYING TO DO VIDEO, WE WOULD
ALL BE ABLE TO HEAR YOU.
I KNOW THERE'S A NUMBER OF
PEOPLE WHO ARE WATCHING ONLINE
WHO WANT TO HEAR THESE DETAILS
AS WELL AS FOLKS IN THE PRESS.
SO WHAT WE'RE GOING TO DO IS
TURN IT OVER TO DAN.
BECAUSE I CAN SEE YOU WELL.
I ASSUME YOU HAVE EXCELLENT
INTERNET CONNECTION AND AUDIO.
WE WILL PUT THE QUESTION ON
HOLD.
WHEN WE'RE DONE WITH DAN'S
PRESENTATION WE WILL ASK FOR
QUESTIONS.
BEFORE WE ADJOURN TODAY WE'RE
GOING TO ASK TOM TO WALK US
THROUGH THE PRESENTATION AGAIN
AND THEN IMMEDIATELY ADDRESS
COUNCIL MEMBER LEWIS' QUESTION
AT THAT POINT.
I HOPE THAT, WOULDS COUNCIL
COLLEAGUES.
OKAY.
SO WITH THAT, I'M GOING TO TURN
IT OVER TO DAN.
YOU ALSO HAVE A POWERPOINT
PRESENTATION THAT YOU WILL WALK
US THERE.
IF WE CAN'T HEAR YOU WE'RE
GOING TO ASK YOU TO CALL BACK
IN SO WE DON'T MISS A BEAT.
I APOLOGIZE FOR THE DELAY BUT I
HOPE THAT IS A SATISFACTORY
RESPONSE.
>> FINE WITH ME, MADAM CHAIR.
>> THANK YOU VERY MUCH.
>> DAN EDER, THANKS FOR WAITING
ON THE LINE.
FOR THE VIEWING PUBLIC'S
KNOWLEDGE, CAN YOU START WITH
THE COUNCIL BILL WE'RE TALKING
ABOUT SO THAT PEOPLE CAN FOLLOW
ALONG AT HOME.
AND REMIND FOLKS AN OVERVIEW OF
THE INTERFUND LOAN AND HOW IT
TIES INTO 2020 FUNDING FOR
IMMEDIATE RELIEF.
AND THEN WE WILL GO BACK TO TOM
AGAIN HOW THAT GET REPLENISHED
WITH A POSSIBLE REVENUE STREAM.
>> HAPPY TO DO THAT.
MY NAME IS DAN EDER.
I'M THE DEPUTY DIRECTOR OF THE
CITY COUNCIL CENTRAL STAFF.
MY PORTION OF THE PRESENTATION
IS ABOUT COUNCIL BILL 119773.
THIS BILL WOULD AUTHORIZE
SEVERAL CITY FUNDS TO MAKE
LOANS TO THE CITY'S GENERAL
FUND.
THE PURPOSE OF THE PROPOSED
LOANS IS TO SUPPORT 2020
EMERGENCY SPENDING THAT IS
COVERED IN COUNCIL BILL 119774
THAT YOU HEARD ABOUT AT YOUR
MEETING ON APRIL 22nd.
THE EMERGENCY SPENDING WOULD BE
SUPPORTED BY THE INTERFUND LOAN
UNTIL ANTICIPATED TAX REVENUES
BECOME AVAILABLE THROUGH A
PROPOSED NEW BUSINESS TAX.
AND THAT'S WHAT TOM MIKESELL
WAS JUST DESCRIBING COUNSEL
BILL 119772.
SO I'M GOING TO COVER THE
TOPICS ON YOUR SCREEN NOW.
AND I'LL DO MY BEST TO ADDRESS
QUESTIONS AS THEY ARISE.
AND IF YOU CAN HOLD THEM UNTIL
THE END, THAT WOULD MAKE THINGS
EASE YEAH.
SPECIFICALLY I WILL COVER THE
CUMULATIVE LOAN AMOUNT THAT
WOULD BE AUTHORIZED BY 119773.
I'LL DISCUSS THE SOURCE OF THE
FUNDS FOR THE LOAN.
THE APPROACH THAT THE BILL USES
FOR MINIMIZING IMPACTS.
I WILL DESCRIBE WHAT WE KNOW
ABOUT THE YEAR-END FUND BALANCE
PROJECTS AND HOW THOSE APPEAR
TO SUPPORT -- ALLOW THE CITY TO
SUPPORT THIS KIND OF FUND LOAN
ARRANGEMENT.
AND THEN I'LL PROVIDE SOME
ADDITIONAL CONTEXT ABOUT
INTERFUND LOANS GENERALLY AND
THOSE ONES IN PARTICULAR,
INCLUDING ADDRESSING THE
EMERGENCY CLAUSE.
WE CAN GO TO THE NEXT SLIDE,
PLEASE.
>> SO AS SHOWN ON THIS SLIDE,
THE CUMULATIVE LOAN AMOUNT THAT
WOULD BE AUTHORIZED BY THE BILL
IS $200 MILLION.
THESE LOANS WOULD BE REPAID
PLUS INTEREST USING TAX
REVENUES THAT WOULD BEGIN TO
FLOW IF THE TAX BILL WAS
APPROVED.
THE FLOW WOULD -- OF REVENUES
WOULD BEGIN IN EARLY 2022, AS
TOM JUST DESCRIBED IN HIS
PRESENTATION.
THE BILL IDENTIFIES SIX
DIFFERENT SOURCE FUNDS FOR
MAKING UP A VARIETY OF
POTENTIAL PATHS THE $200
MILLION IN CUMULATIVE LOANS.
SPECIFICALLY THE LOAN HOUSING
FUND, INCENTIVE FUNNED, THE NEW
SEATTLE LEVEE FUND, THE FAMILY
EDUCATION AND PRESCHOOL PROMISE
FUND, THE METROPOLITAN PARKS
DISTRICT FUND WHICH IS REFERRED
TO AS THE PARKS LEVEE FUND AND
THE LIBRARY LEVEE FUND.
NOW, THE BILL AS INTRODUCED
WOULD AUTHORIZE EACH OF THESE
FUNDS TO LOAN UP TO $50 MILLION
TO THE GENERAL FUND.
I BELIEVE -- I DON'T WANT TO
SPEAK FOR THE COSPONSORS BUT I
BELIEVE THAT WAS INTENDED AS A
STARTING PLACE TO EVALUATE HOW
MUCH IS ACTUALLY NEEDED AS YOU
WILL SEE THERE ARE NOT EVEN
AMOUNTS OF ANTICIPATED YEAR-END
FUND BALANCES TO BORROW FROM.
SO THAT $50 MILLION MAY WANT TO
BE ADDRESSED THROUGH POTENTIAL
AMENDMENTS.
THIS APPROACH WOULD PROVIDE THE
EXECUTIVE WITH SOME FLEXIBILITY
ABOUT HOW MUCH THE GENERAL FUND
WILL ACTUALLY BORROW FROM THE
SOURCE FUNDS.
THE INTERFUND LOAN BILL
PROVIDES DISCRETION TO THE
EXECUTIVE ABOUT THE EXACT MIX,
AS I WAS DESCRIBING, OF WHICH
FUNDS WILL PROVIDE HOW MUCH
MONEY.
SECTION 3 OF THE BILL ASKS THE
EXECUTIVE TO DO SOME ANALYSIS
NEEDED TO ARRIVE AT AN APPROACH
THAT MINIMIZES OR ELIMINATES
ANY IMPACTS TO PLANNED SPENDING
FROM EACH OF THE SELECTED
SOURCE FUNDS.
THE BILL ALSO DIRECTS THE
EXECUTIVE TO PROVIDE A REPORT
TO THE COUNCIL WITHIN THREE
WEEKS THAT IDENTIFIES THE
SELECTED SOURCE FUNDS AND
AMOUNTS.
IN GENERAL, THE EXPECTATION IS
THAT DURING THE PERIOD OF THE
LOANS, THE CITY WILL NOT NEED
THESE CASH RESERVES TO PAY FOR
NEAR TERM SPENDING COMMITMENT.
THE NEXT SLIDE, PLEASE,
KIRSTEN.
THANK YOU.
THE NEXT SLIDE ESSENTIALLY
BACKS UP THE THINKING BEHIND
THAT CONCLUSION, NAMELY THAT
THE FUNDS WOULD HAVE SUFFICIENT
CASH BALANCES TO MAKE A
CUMULATIVE $200 MILLION OF
LOANS.
I KNOW THAT THERE'S A LOT OF
NUMBERS ON THIS SLIDE.
SO I WANT TO WALK YOU THROUGH
WHAT INFORMATION WE HAVE AND
WHAT UNKNOWNS REMAIN.
SO FOR EACH OF THE SIX FUNDS
THAT I MENTIONED, THERE ARE TWO
COLUMNS OF NUMBERS.
THE FIRST COLUMN OF NUMBERS
LABELED AT THE TOP 2020 BUDGET
IDENTIFIES THE AMOUNT OF
PROJECTED YEAR-END FUND
BALANCE, THAT IS TO SAY CASH
RESERVES THAT WERE NOT EXPECTED
TO BE SPENT BY THE END OF 2020.
THIS IS FROM THE PERSPECTIVE OF
THE ADOPTED 2020 BUDGET.
SO THAT -- THE CITY COUNCIL
TOOK ACTION AND THE MAYOR
SIGNED THE ADOPTED BUDGET IN
NOVEMBER OF 2019, BEFORE THE
2019 HAD OFFICIALLY CLOSED ITS
BOOKS.
THE SECOND COLUMN CALLED --
LABELED CBO UPDATE HAS MORE
RECENT INFORMATION THAT
REFLECTS INFORMATION THAT WAS
AVAILABLE SUBSEQUENT TO THE
ADOPTION OF THE BUDGET.
BOTH OF THESE COLUMNS IN
GENERAL WHAT I WANT TO -- I
WANT TO DRAW YOUR ATTENTION TO
THE BOTTOM LINE.
THERE APPEARS TO BE ENOUGH
MONEY FROM THE ANTICIPATED YEAR-
END FUND BALANCES TO SUPPORT A
$200 MILLION LOAN WITHOUT
IMPACTING PLANNED SPENDING FROM
THESE FUNDS.
IN THE 2020 BUDGET COLUMN, I'M
GOING TO DRAW YOUR ATTENTION TO
THE MIDDLE OF THE CHART WHERE
IT SAYS SUB TOTAL $245 MILLION.
THAT'S HOW MUCH CASH IS
EXPECTED TO BE AVAILABLE THAT
WON'T BE SPENT FOR OTHER
PURPOSES.
AS OF THE VIEWPOINT FROM THE
2020 ADOPTED BUDGET.
THAT NUMBER HAS INCREASED FOR
THE FOUR FUNDS THAT ARE BEING
SUB TOTALED BY ABOUT $69
MILLION TO A NEW ANTICIPATED
ENDING FUND BALFOUR THESE FOUR
FUNDS OF $314 MILLION.
THAT'S GOOD NEWS FROM THE
PERSPECTIVE OF THE CITY'S
ABILITY TO SUPPORT AN INTERFUND
LOAN OF $200 MILLION.
I BROKE OUT THE FOUR FUNDS AT
THE TOP BECAUSE WE HAVE MORE
DETAILED INFORMATION ABOUT EACH
OF THOSE FUNDS.
THE TWO FUNDS AT THE BOTTOM HAS
AN INCENTIVE FUND AND A ME ROW
POLL TAN PARKS FUND.
WE'RE STILL CHASING DOWN
INFORMATION ABOUT THAT.
SO I APOLOGIZE THAT I DON'T
HAVE ALL OF THE INFORMATION
THAT I WISH I HAD TO SHARE WITH
YOU.
BUT JUST FROM THOSE FOUR FUNDS
AT THE TOP, IT NOW APPEARS AS
OF THE END OF 2019, THAT
THERE'S ABOUT -- THERE'S GOING
TO BE ABOUT $314 MILLION IN
AVAILABLE RESOURCES.
I THINK THERE IS AN IMPORTANT
CAVEAT TO SHARE WITH YOU, THE
CBO UPDATE, THE COLUMN ON THE
RIGHT ON THE SCREEN, DOES NOT
YET REFLECT THE REVENUE HIT
THAT THE GENERAL FUND IS NOW
EXPECTED TO TAKE THAT BEN
NOBLE, THE CEO DIRECTOR
DESCRIBED TO YOU AT YOUR
PREVIOUS MEETING ON THE 22nd.
THE EXPECTATION IS THAT CBO AND
BEN NOBLE IN HIS PRESENTATION
DESCRIBED THIS -- SOME OF THE
TOOLS IN HIS TOOL KIT, THAT HE
MAY BE LOOKING TO USE SOME OF
THE FUND BALANCES FROM THESE
FUNDS TO ADDRESS SOME OF THE
SHORTFALL IN THE GENERAL FUND.
AND OF COURSE IS SUBJECT TO
CITY COUNCIL REVIEW AND YOUR
APPROVAL.
SO YOU ESSENTIALLY HAVE POLICY
CHOICES ABOUT WHAT YOU WANT TO
DO WITH THE AVAILABLE -- THE
ANTICIPATED REVENUE THAT WILL
BE IN THE CITY'S CONSOLIDATED
CASH POOLS FROM THESE FUNDS IN
2020.
I WOULD LIKE TO GO TO THE NEXT
SLIDE, PLEASE.
SO THIS SLIDE PROVIDES THIS
ADDITIONAL CONTEXT.
IN GENERAL, I WANTED TO JUST
MAKE SURE EVERYONE UNDERSTANDS
THAT IT IS -- IT HAS BEEN
ROUTINE PRACTICE OF THE CITY TO
BORROW BETWEEN FUNDS TO DO
INTERFUND LOANS.
I JUST PULLED OUT SOME RECENT
EXAMPLES, DID A SEARCH, THE
LARGEST INTERFUND LOAN THAT I
COULD FIND IN NOT ONLY RECENT
HISTORY BUT GOING BACK MANY
YEARS IS AN $85 MILLION
INTERFUND LOAN FOR THE SEA WALL
REPLACEMENT.
AND WE ESSENTIALLY BORROWED TO
BEGIN DOING CONSTRUCTION ON THE
SEA WALL AHEAD OF RECEIVING
PROPERTY TAXES FROM VOTER-
APPROVED BOND MEASURE.
THERE HAVE BEEN MANY OTHER
INTERFUND LOANS.
HERE ARE SOME EXAMPLES.
$29MILLION IN 2019.
$26MILLION FROM WEST IN 2019 AS
WELL.
WE BORROWED AGAINST THE
EXPECTED REVENUES FOR THE
WATERFRONT LID.
AND WE ALSO AUTHORIZED ABOUT $5
MILLION TO STAND UP THE SHORT
TERM RENTAL TAX IN 2017.
THAT WAS A CITY-APPROVED NOT A
VOTER-APPROVED MEASURE.
SO IT IS IN THE CITY'S
FINANCIAL TOOL KIT, IF YOU
WILL, TO USE INTERFUND LOANS.
THERE IS ALWAYS AN EXPECTATION
THAT MONEYS WILL BECOME
AVAILABLE IN THE FUTURE TO
REPAY THE INTERFUND LOAN THAT
HAS BEEN TAKEN OUT.
THAT HAS GENERALLY BEEN THE
CITY'S EXPERIENCE.
BUT ON OCCASION WE HAVE FOUND
THAT THE CITY'S EXPECTATION IS
NOT MET.
SOME EXAMPLES COME TO MIND
THERE ARE INTERFUND LOAN THAT
WE TOOK MANY YEARS AGO TO BEGIN
CONSTRUCTION AND ACTUALLY
COMPLETE CONSTRUCTION OF THE
SOUTH LAKE UNION STREET CAR.
INTERFUND LOAN WAS INTENDED TO
BE PAID OFF WITH WITH A VARIETY
OF REVENUES THAT DIDN'T COME TO
FRUITION ON THE TIMELINE THAT
WAS ORIGINALLY ANTICIPATED.
AND THEN WE TOOK ANOTHER
INTERFUND LOAN RELATED TO THE
STREET CAR OPERATIONS THAT WE
ALSO TOOK LONGER THAN
ANTICIPATED TO PAY BACK BUT WE
ARE PAYING BACK AND I BELIEVE
NOW HAVE FULLY PAID BACK.
THE OTHER THINGS THAT I WANT
TODAY CALL TO YOUR ATTENTION ON
THIS SLIDE ARE BEN NOBLE'S
DISCUSSION OF THE VARIOUS KINDS
OF REVENUES THAT FEED THE
CITY'S GENERAL FUND ARE ON THE
DECLINE.
THE ONE EXCEPTION TO THAT IN
DR. NOBLE'S PRESENTATION FROM
APRIL 22nd IS THE PROPERTY TAX.
PROPERTY TAXES ARE AT LEAST IN
THE FORESEEABLE FUTURE
ANTICIPATED TO BE VERY STABLE.
AND NOBLE'S PRESENTATION
ANTICIPATED PERHAPS A 1%
DECLINE IN PROPERTY TAX.
AND THE SIX FUNDS THAT ARE THE
SOURCE FUNDS FOR THE INTERFUND
LOAN TO THE GENERAL FUND
CONTEMPLATED BY THIS COUNCIL
BILL ARE ALMOST ENSTEYERLY, NOT
100% BUT ALMOST -- ARE
PREDOMINANTLY FUNDED WITH A
PROPERTY TAX REVENUE.
SO WE THINK THAT THE REVENUE
PICTURE IS PRETTY STABLE FOR
THE FEEDING OF THESE FUNDS.
BUT THE FISCAL IMPACTS ON THE
YEAR-END BALANCES DEPEND NOT
ONLY ON THE REVENUES COMING IN,
BUT ALSO THE PLANNED USES.
SO I DESCRIBE THAT AS UNKNOWN
BECAUSE THERE ARE SOME POLICY
DECISIONS TO MAKE ABOUT WHAT
LEVEL OF SPENDING WILL CONTINUE
THROUGHOUT THE BALANCE OF THE
YEAR.
AND WHAT OTHER COMPETING USES
FOR THE FUND BALANCES MAY BE
PROPOSED AND CONSIDERED AND
ULTIMATELY APPROVED BY THE CITY
COUNCIL.
NEXT SLIDE, PLEASE.
THE LAST THING THAT I WANTED TO
MENTION WAS LIKE WITH THE OTHER
TWO BILLS, THERE IS AN
EMERGENCY CLAUSE.
THE PURPOSE OF THE INTERFUND
LOAN IS TO SUPPORT EMERGENCY
2020 APPROPRIATIONS.
SO THE INTERFUND LOAN WOULD BE
THE FUNDING SOURCE AND WOULD BE
-- THE BILL WOULD BE EFFECTIVE
IMMEDIATELY UPON BOTH AN
AFFIRMATIVE VOTE OF THREE-
QUARTERS OF COUNCIL MEMBERS AND
THEIR SIGNATURE.
I GUESS THE LAST THING THAT I
WOULD LEAVE YOU WITH, OF THE
THREE BILLS, THE SPENDING BILL,
THE TAX BILL AND THE INTERFUND
LOAN ARE PROPOSED TO WORK AS A
PACKAGE.
THE 2020 EMERGENCY SPENDING
RELIES ON THE INTERFUND LOAN AS
A REVENUE SOURCE.
AND THE INTERFUND LOAN IN TURN
RELIES ON THE TAX BILL GOING
INTO EFFECT TO PROVIDE A WAY TO
REPAY THE AMOUNT BORROWED BY
THE GENERAL FUND.
AND THAT CONCLUDES MY PREPARED
REMARKS.
I WOULD BE HAPPY TO ADDRESS ANY
QUESTIONS THAT YOU MIGHT HAVE.
IF I CAN'T ADDRESS THEM
IMMEDIATELY, I COMMIT TO DOING
MY BEST TO GET YOU QUICK
ANSWERS AFTER THIS MEETING.
>> EXCELLENT.
WE APPRECIATE YOUR FLEXIBILITY.
CAN YOU HEA ME OKAY?
>> YES.
>> OKAY.
GOOD.
WE APPRECIATE YOUR FLEXIBILITY.
COLLEAGUES, WE ARE GOING TO ASK
FOR QUESTIONS ON THIS INTERFUND
LOAN PROPOSAL.
AND WE DO HAVE CONFIRMATION
THAT TOM IS BACK ON.
SO NO WORRIES FOR OUR COUNCIL
COLLEAGUES, VIEWING PUBLIC AND
THE PRESS.
WE WILL DO HIS PRESENTATION
AGAIN.
WE HAVE ANOTHER HOUR'S WORTH OF
TIME IN THIS COMMITTEE SO WE
HAVE PLENTY OF TIME TO HAVE HIS
PRESENTATION IN DETAIL TO WALK
THROUGH AGAIN.
COUNCIL COLLEAGUES, I
APPRECIATE YOUR PATIENCE AS WE
ALL PARTICIPATE REMOTELY.
I WILL ASK IF COUNCIL MEMBERS
HAVE ANY QUESTIONS.
COUNCIL MEMBER PEDERSEN?
HEARING NO QUESTIONS.
COUNCIL MEMBER STRAUSS?
HEARING NO QUESTIONS.
COUNCIL PRESIDENT GONZALEZ?
HEARING NO QUESTIONS.
COUNCIL MEMBER LEWIS?
>> THANK YOU, MADAM CHAIR.
I DO HAVE A COUPLE OF QUICK
QUESTIONS.
ONE OF THEM IS CLARIFYING.
SO, DAN, EARLIER YOU TALKED
ABOUT HOW, YOU KNOW, THERE'S A
CERTAIN AMOUNT OF MONEY IN
THESE DIFFERENT FUNDS THAT
WE'RE LOOKING AT TO POTENTIALLY
ENTER INTO THE INTERFUND LOANS
WITH THAT DON'T HAVE SPENDING
COMMITMENTS.
I'M CURIOUS WHAT THE DEFINITION
OF A NEAR TERM SPENDING
COMMITMENT IS, JUST FOR
CLARIFICATION.
LIKE, THERE IS NO -- LIKE THERE
IS NO CURRENT PLAN TO USE IT OR
THERE ARE CURRENT PLANS BUT
IT'S NOT FOR ANOTHER YEAR?
WHAT DOES THAT MEAN.
>> I WOULD SAY THAT THE ANSWER
IS YEAR BY YEAR, THE FUNDS ARE
FED BY RESOURCES, REVENUES.
MOST CASES AS I MENTIONED IN MY
PREPARED REMARKS, WE'RE TALKING
ABOUT PROPERTY TAXES COMING IN
IN GENERALLY APRIL AND OCTOBER.
THE ANNUAL BUDGET AUTHORIZES
SPENDING TO HAPPEN OUT OF THESE
FUNDS.
SO THAT THERE CAN NEVER BE MORE
SPENDING THAN THERE IS MONEY ON
HAND TO SPEND.
THE YEAR-END FUND BALANCE IS A
-- IS A STRAIGHTFORWARD
DIFFERENCE BETWEEN THE REVENUE
THAT'S ARE COMING IN THE DOOR
AND THE ANTICIPATED SPENDING
AND AUTHORIZED SPENDING THAT IS
ALLOWED FROM EACH OF THE FUNDS.
SO BY NEAR TERM, I GUESS FOR
2020 I MEAN BETWEEN TODAY AND
THE END OF 2020.
IF THERE IS A POSITIVE FUND
BALANCE, AND THERE SHOULD
ALWAYS BE A POSITIVE FUND
BALANCE, THAT MEANS THAT WE'RE
ANTICIPATING MORE REVENUES TO
BE AVAILABLE THAN PLAN
SPENDING.
>> AND MADAM CHAIR, I DO HAVE
AN ADDITIONAL QUESTION.
I DON'T KNOW IF YOU WANT TO --
>> YOU'RE OKAY.
PLEASE CONTINUE.
>> OKAY.
DAN, GOING BACK, YOU HAD
DISCUSSED THERE HAD BEEN AN
INTERFUND LOAN ON THE STREET
CAR.
I DIDN'T SEE A NUMBER
ENUMERATED FOR HOW MUCH THAT
INTERFUND LOAN WAS, UNLESS I
MISSED IT.
BUT THE STREET CAR INTERFUND
LOAN WAS ONE THAT YOU SAID THE
EXPECTATION HADN'T BEEN
REALIZED ON THE TIMELINE OF HOW
IT WOULD BE BACKFILLED.
SO I GUESS MY QUESTION IS, HOW
-- HOW BIG OF AN INTERFUND LOAN
WAS THAT ONE?
AND WHERE DID THE MONEY COME
FROM TO BACKFILL IT?
WAS IT NORMAL GENERAL FUND
REVENUE AND IT WAS PUT TOGETHER
IN THAT YEAR OR WAS THERE SOME
OTHER WAY THAT MONEY WAS
REALIZED, BROUGHT BACK?
>> YEAH.
MY UNDERSTANDING IS THAT THAT
IS A LONG -- A QUESTION WHICH
NEEDS A LONG ANSWER.
PROBABLY LONGER THAN YOU WANT
ME TO GO INTO HERE.
BUT I CAN FIND OUT BOTH THE
ORIGINAL AMOUNT.
I BELIEVE THAT AMOUNT -- I'M
SORRY.
I DON'T KNOW THE NUMBER
OFFHAND.
BUT I BELIEVE THAT NUMBER WAS
ACTUALLY INCREASED BECAUSE THE
INTEREST BEGAN TO ACCRUE.
SO THE AMOUNT OF MONEY THAT WAS
EVENTUALLY OWED WAS MORE THAN
THE ORIGINAL AMOUNT.
I DON'T KNOW THE ANSWER TO WHAT
SPECIFIC REVENUES WERE USED TO
REPAY THE LOAN, NOR DO I KNOW
IN PARTICULAR THE STATUS OF THE
LOAN.
I WILL FOLLOW UP WITH ALL OF
THAT INFORMATION FOR YOU.
>> ALL RIGHT.
I APPRECIATE THAT.
I'M REALLY INTERESTED IN THAT
OBVIOUSLY, GIVEN THE SIZE OF
THE INTERFUND LOAN THAT IS
ENVISIONED BY THIS LEGISLATION
AND GIVEN THE CHALLENGES THAT
WE HAVE WITH GENERAL FUND.
YOU KNOW, I JUST THINK IT IS
IMPORTANT TO MAKE SURE THAT WE
LOOK AT SOME OF OUR PAST
EXPERIENCES AND JUST -- THIS IS
KIND OF RELATED TO MY
CONVERSATION FOR TOM IN THE
SENSE OF THE STRENGTH AND
VIABILITY OF THIS FUNDING
SOURCE IN THE WAKE OF THE
STRAINS THAT COVID MIGHT CAUSE
ON THE ECONOMY, MAKING SURE
THAT WE DON'T SET UP A MASSIVE
TIME BOMB FOR THE GENERAL FUND
ON TOP OF WHAT IS ALREADY
HAPPENING IS GOING TO BE A
PRIORITY FOR ME.
SO THAT INFORMATION WOULD BE
REALLY INSTRUCTIVE, I THINK,
FOR HOW I'M ENGAGING WITH THIS
LEGISLATION.
AND I REALLY WOULD APPRECIATE
THAT.
LIKE I SAID, KIND OF RELATED TO
TOM'S QUESTION.
SO WHEN WE GET BACK INTO THAT
PRESENTATION, I WILL BRING IT
BACK UP.
MADAM CHAIR, I DON'T HAVE ANY
ADDITIONAL QUESTIONS AT THIS
TIME.
>> THANK YOU VERY MUCH, COUNCIL
MEMBER LEWIS.
COUNCIL MEMBER JUAREZ, ANY
QUESTIONS FROM YOU?
HEARING NONE.
COUNCIL COLLEAGUES MORALES AND
SAWAN.T, I HAVE A COUPLE
QUESTIONS.
A QUESTION ABOUT THE DATE.
THE LEGISLATION SETS THE DATE
OF NO LATER THAN 12-31-2021 FOR
REPAYMENT AND ALSO CAN MODIFY
THE REPAYMENT SCHEDULE.
IS THERE ANY CHANCE THAT THE
DIRECTOR OF FINANCE COULD PUSH
THE DUE DATE OUT BEYOND THE
DECEMBER 31st, 2021.
>> I DON'T THINK SO.
THE THINK THE MODIFICATION IS
GENERALLY TO MAKE THE REPAYMENT
SOONER THAN THE FINAL
AUTHORIZED DATE OF REPAYMENT.
IF IT TAKES -- IN THE EVENT
THAT IT DOES TAKE LONGER THAN
12-31 OF 2021 TO REPAY THE
LOAN, THEN MY UNDERSTANDING IS
THAT ADDITIONAL COUNCIL
AUTHORIZATION WOULD BE NEEDED
TO EXTEND THE PERIOD OF THE
LOAN.
>> OKAY.
AND THEN A QUESTION ABOUT THE
INTERFUND LOAN IMPACT.
I UNDERSTAND THAT YOU SAID
BASED ON PREVIOUS CALCULATIONS
THAT WE BELIEVE THERE'S A
BUFFER WITHIN THESE FUND SOURCE
THAT'S WOULD NOT MITIGATE OR
NOT IMPACT THE PROGRAMS THAT
HAD BEEN ORIGINALLY SLATED FOR
USING THOSE DOLLARS.
COULD YOU EXPLAIN A LITTLE MORE
ABOUT HOUSING.
WHEN WE DO AFFORDABLE HOUSING,
FUNDING IS COMMITTED IN OUT
YEARS WHILE THE FUNDS MAY STILL
BE IN THE FUND SOURCE ITSELF.
A LOT OF TIMES THOSE DOLLARS
ARE ACCOUNTED FOR.
CAN YOU TALK A LITTLE BIT MORE
ABOUT THE OFFICE OF HOUSING OR
ANY ANALYSIS THAT WE HAVE DONE
TO ANALYZE WHETHER OR NOT THE
INTERFUND LOAN WOULD AFFECT THE
FUTURE FUNDING CYCLES FOR
AFFORDABLE HOUSING, FOR
EXAMPLE.
>> OF COURSE.
AS YOUR QUESTION POINTS OUT,
THE LOW INCOME HOUSING FUND IS
THE LARGEST ANTICIPATED YEAR-
END FUND BALANCE.
SO YOU'RE RIGHT TO BE ASKING,
PROBING ABOUT HOW STABLE TO
EXPECTATION IS.
MY UNDERSTANDING OF HOW THE
OFFICE OF HOUSING PARTNERS WITH
HOUSING DEVELOPER WHO'S ARE
BUILDING AFFORDABLE HOUSING IS
THAT IT MAKES A COMMITMENT OF
CITY RESOURCES, GENERALLY AS A
-- AS A PARTNER IN A LARGER
FUNDING SCHEME FOR ANY GIVEN
PROJECT.
OUR FUNDING IS USED TO LEVERAGE
OTHER FUNDING SOURCES TO
SUPPORT THE ENTIRE PROJECT IN
ORDER FOR OTHER FUNDING SOURCES
TO COME TO THE TABLE WITH THEIR
MONEY SO THAT THE PROJECT CAN
ACTUALLY BEGIN CONSTRUCTION.
THE CITY HAS TO DEMONSTRATE
THAT IT HAS -- IT HAS THE
RESOURCES ACTUALLY COMMITTED TO
ALL OF THE PROJECTS THAT ARE
ANTICIPATING A PARTNERSHIP
CONTRIBUTION FROM THE CITY.
SO THE WAY THAT THE CITY BOOKS
ITS RESOURCES IS IT MAKES A
COMMITMENT TO FUND X NUMBER OF
MILLIONS OF DOLLARS FOR ABC
HOUSING DEVELOPMENT.
AND IT PUTS THAT MONEY ASIDE IN
THE LOW INCOME HOUSING FUND.
IT IS TYPICALLY IN THAT
PARTICULAR FUND FOR ONE OR TWO
OR SOMETIMES EVEN THREE YEARS
BEFORE THE HOUSING PROJECT
ADVANCES TO THE -- TO THE STAGE
THAT IT ACTUALLY NEEDS THAT
MONEY.
SO THAT'S WHY THE LOW INCOME
HOUSING FUND HAS A RATHER LARGE
ANTICIPATED ENDING FUND BALANCE
IN 2020.
THESE ARE DOLLARS THAT ARE IN
LARGE PART COMMITTED.
I THINK OF THE ROUGHLY 250 OR
SO MILLION DOLLARS, I'M SORRY,
I CAN'T SEE THE SLIDE
IMMEDIATELY, ABOUT 150 MILLION
IS COMMITTED TO VERY SPECIFIC
PROJECTS THAT ARE NOT -- SIMPLY
NOT READY TO ACCEPT THE MONEY.
AND DON'T ANTICIPATE TO BE
READY TO ACCEPT THE MONEY IN
2020.
THE REMAINING APPROXIMATELY 100
TO $110 MILLION IS UNRESERVED
AND IS AVAILABLE FOR FUTURE
COMMITMENTS TO OTHER PROJECTS.
BUT WE HAVEN'T YET IDENTIFIED
WHICH PRONGS THOSE ARE.
>> OKAY.
THANK YOU.
>> DOES THAT ANSWER YOUR
QUESTION?
>> YES.
BUT I MAY HAVE FOLLOW-UP
QUESTIONS AND LOOK THROUGH SOME
EXAMPLES.
AND THEN LASTLY BEFORE TURNING
IT OVER TO THE SPONSORS, YOU
BRIEFLY TOUCHED ON.
THIS BUT COULD YOU ELABORATE A
LITTLE BIT MORE GIVEN THE
FORECAST OF DOWNTURN IN
REVENUE, WHILE ASSUMPTIONS WERE
MADE PRIOR TO COVID, LOOKING AT
YEARS BACK, CAN YOU TALK A
LITTLE BIT ABOUT MORE ABOUT IF
THERE IS ANTICIPATED DECREASES
IN THE REVENUE PROJECTED FOR
THESE FUND SOURCES THAT WE'RE
USING TO PAY THE INTERFUND
LOANS?
CAN YOU TALK ABOUT A BACKUP
PLAN OR WHAT OTHER STRATEGIES
MAY EXIST TO REPAY THESE
ACCOUNTS?
>> WELL, THE CITY WOULD BE
ESSENTIALLY BORROWING FROM
ITSELF.
AND WOULD EVENTUALLY -- I THINK
WE ARE GOOD FOR REPAYING
OURSELVES THE MONEY THAT WE
HAVE BORROWED.
THERE ARE NO EXAMPLES IN THE
PAST THAT I KNOW OF WHERE WE
HAVE NOT REPAID AN INTERFUND
LOAN.
THE EXAMPLE T█HAT I TOUCHED UPO
EARLIER, THE STREET FUND
CAPITAL DEVELOPMENT LOAN AND
THE OPERATING LOAN, THOSE ARE
EXAMPLES WHERE IT TOOK US
LONGER TO REPAY THE LOAN THAN
WE HAD INITIALLY ANTICIPATED.
BUT THOSE LOANS WERE REPAID OR
ARE BEING REPAID.
I DON'T KNOW THE EXACT STATUS
OF THOSE LOANS.
MAYBE A SMALL AMOUNT STILL
OWING.
OVER A PERIOD OF TIME AND
DURING THE PERIOD, INTEREST
CONTINUED TO ACCRUE.
IT IS RELATIVELY LOW -- LOW
INTEREST AMOUNTS BECAUSE IT IS
EQUIVALENT TO WHAT THE CITY
WOULD BE EARNING NOT ITS SHORT
TERM INVESTMENTS CASH POOL.
BUT WE EFFECTIVELY WOULD IN THE
FUTURE, IF/OWE IF THERE WASN'T
A WAY TO REPAY THE LOAN, WE
WOULD HAVE TO MAKE HARD CHOICES
ABOUT WHAT TO DO WITH THE
REMAINING FUNDS THAT WE DO
HAVE.
>> OKAY.
THANK YOU SO MUCH.
>> SEPARATE FROM THE QUESTION
THAT YOU WERE ASKING, WHICH IS
WHAT IS THE -- WHAT HAPPENS IF
THE REVENUE SOURCES THEMSELVES
GO DOWN.
THERE IS -- RIGHT NOW THERE IS
A CUSHION OF ABOUT $140 MILLION
ABOVE THE $200 MILLION SO
UNLESS THE PROPERTY TAXES
DECREASED BY MORE THAN 35%,
ABOUT 150 OUT OF -- I'M SORRY.
I CAN'T DO THE MATH IN MY HEAD.
UNLESS THERE WAS A DRAMATIC
DECREASE IN THE PROPERTY TAXES
THAT FEED THESE FUNDS, I
WOULDN'T ANTICIPATE THAT BEING
A PROBLEM.
>> DAN, THANK YOU SO MUCH FOR
WALKING THROUGH THOSE QUESTIONS
FOR US.
COUNCIL MEMBER SAWANT AND
MORALES, AS SPONSORS OF THE
LEGISLATION, DO YOU HAVE
QUESTIONS BEFORE WE GO BACK TO
TOM AT THAT TUCK ABOUT THE
FIRST BILL?
>> YES.
CAN YOU HEAR ME.
>> YES.
>> COUNCIL MEMBER MORALES, GO
AHEAD.
>> FIRST OF ALL, THANK YOU SO
MUCH, DAN.
I KNOW THE WHOLE CENTRAL STAFF
HAS BEEN WORKING REALLY HARD TO
HELP NAVIGATE US THROUGH THIS
DEVELOPMENT AND QUESTIONS.
SO I REALLY APPRECIATE THE WORK
THAT YOU'VE BEEN DOING.
I'M LOOKING AT THE MEMO THAT
YOU SENT LAST WEEK.
WHEN AYE TALKING ABOUT THE
EFFECTIVE AND DUE DATES, IT
DOES INDICATE THAT THE EARLIEST
WE EXPECT TO BE ABLE TO COLLECT
THE TAX AND HAVE THE
INFRASTRUCTURE SET UP WOULD BE
THE FIRST QUARTER OF 2022.
THE THAT IS SUBSTANTIALLY
DIFFERENT FROM THE CONVERSATION
WE WERE HAVING IN JANUARY AND
FEBRUARY WHEN THERE WAS A
SIMILAR IDEA BEING PROPOSED IN
OLYMPIA.
WE WERE HEARING AT THAT TIME
THAT THE CITY WOULD BE ABLE TO
COLLECT PAYROLL TAX AND WOULD
-- IT WAS DOING IT ON BEHALF OF
KING COUNTY.
SO I JUST WANT TO UNDERSTAND A
LITTLE BIT BETTER THE
DISCREPANCY THERE.
>> COUNCIL MEMBER I'M SORRY.
I DON'T KNOW EXACTLY WHAT
INFORMATION YOU ARE REFERRING
TO IN TERMS OF CONVERSATIONS
ABOUT THE COUNTY TAX AND THE
TIMING FOR COLLECTION.
I CAN TELL YOU THAT IN THE
CONVERSATIONS THAT I'VE HAD
WITH THE CITY BUDGET OFFICE AND
THE DEPARTMENT OF FINANCE AND
ADMINISTRATIVE SERVICES, THE
EXECUTIVE STAFF I HAVE SPOKEN
TO HAVE BEEN CONSISTENT IN
TELLING ME THAT IT WOULD TAKE
ON THE ORDER OF A YEAR AND A
HALF TO SET UP THE
INFRASTRUCTURE TO BEGIN TO
ACCEPT REVENUES FROM TAXPAYERS
DUE TO THE RULE MAKING THAT
WOULD ANTICIPATE FOR THE
GENERAL TAXPAYER, WHAT THEY OWE
IN DIFFERENT CIRCUMSTANCES.
AND HAVE THE FINANCIAL SYSTEMS
IN PLACE TO TRACK, AUDIT THE
TAX COLLECTION.
>> OKAY.
THANK YOU.
COUNCIL MEMBER MORALES, ANY
FOLLOW-UP QUESTIONS.
>> NO THANK YOU.
COUNCIL MEMBER SAWANT, ANY
QUESTIONS FROM YOU.
>> I DON'T HAVE QUESTIONS
BECAUSE A LOT OF THIS IS
EMERGING.
BUT THERE ARE THINGS THAT I CAN
HELP CLARIFY ON SOME OF THE
POINTS THAT HAVE COME UP.
I FIRST OF ALL APPRECIATE DAN
SHARING THE SET OF COMMENTS AND
SLIDE THAT'S DIFFERENT LOANS
ARE A STANDARD MECHANISM THAT
MUNICIPALITIES USE.
AND THERE ARE EXAMPLES THAT HE
HAS GIVEN AND ALSO APPRECIATE
YOUR QUESTION, COUNCIL MEMBER
MOSQUEDA THAT DAN RESPONDED TO
HOW THE LOW INCOME FUND WORKS.
THOSE POINTS.
BUT I WOULD SAY FOR COUNCIL
MEMBERS CONCERNED ABOUT BUDGET
SHORTFALLS, AND I AM EXTREMELY
CONCERNED, REJECTING NEW
PROGRESSIVE REVENUE SOURCE IS
NOT A SMART STRATEGY FOR US
BECAUSE, YOU KNOW, WE MAYO OWE
FIRST OF ALL I WANT TO
APPRECIATE THE NUMBERS DAN
POINTING OUT THE KIND OF BUFFER
THAT EXISTS AND ALSO THE
RELATIVE STABILITY OF THE
PROPERTY TAX AS A RESOURCE.
THE POINT BEING WHEN THEY'RE
HEADING INTO A DEEP RECESSION,
WHICH WE DON'T KNOW HOW LONG IT
WILL LAST, IT MAY BE OKAY TO
USE EXISTING BUFFERS THIS YEAR.
BUT WHAT ABOUT NEXT YEAR AND SO
ON?
AS LONG AS THERE IS A RELIANCE
ON AGGRESSIVE TAXES, REVENUE
WILL CONTINUE TO PLUMMET.
AND THAT IS A VERY IMPORTANT
POINT TO POINT OUT.
THERE IS A DIFFERENCE BETWEEN
THIS LEGISLATION SAYING WE WILL
DO AN INTERFUND LOAN AND THEN
COVER IT WITH NEW REVENUE
SOURCES THAT WILL COME INTO
EFFECT WHEN THE TAXES -- THE
TAX REVENUES ARE AVAILABLE TO
TAX BIG BUSINESSES.
THAT IS COMPLETELY DIFFERENT
THAN CITY SAYING WE'RE GOING TO
COVER BUDGET SHORTFALLS THROUGH
THE BUFFERS THAT ARE AVAILABLE.
BECAUSE THAT, THE LATTER CASE
IS AN EXAMPLE OF AN -- BUDGET.
THAT WOULD MEAN THAT THE FUNDS
WILL NOT BE AVAILABLE FOR THE
NEEDS THAT ARE ACTUALLY
AVAILABLE.
SO, FOR EXAMPLE, EFFECTIVELY IT
WOULD MEAN THAT THE MAYOR WOULD
CUT TENS OR HUNDREDS OF
MILLIONS OF DOLLARS TO COVER
THE SHORTFALL BECAUSE THOSE
FUNDS WOULD NOT BE AVAILABLE
LATER.
I WANTED TO POINT OUT A KEY
DIFFERENCE BETWEEN THE TWO
CASES.
AND THEN LASTLY ON THE
EMERGENCY CLAUSE, JUST TO
CLARIFY, YOU KNOW, WHY WE HAVE
DONE THIS EMERGENCY.
IT IS NOT SOME TECHNICALITY.
IT IS BECAUSE PEOPLE ARE IN AN
IMAGINE THAT THE LEGISLATION
HAS BEEN ADOPTED AS AN
EMERGENCY LEGISLATION.
WE KNOW THAT THE EMERGENCY WILL
NOT PASS ONCE THE MAJOR MEDICAL
DANGER IS ALSO GOING TO PASS.
WE KNOW THEY'RE GOING TO BE IN
A RECESSION.
I WANTED TO POINT OUT
CONCRETELY IF THERE WAS NO
EMERGENCY CLAUSE, WE WOULD HAVE
TO WAIT FOR 30 DAYS FOR IT TO
GO INTO EFFECT.
THE CITY WOULD LOSE $30 MILLION
AND THE WORKERS THAT WOULD GET
CASH ASSISTANCE, FAMILIES, THEY
WOULD HAVE TO FIND OTHER WAYS
TO MAKE RENT.
AND ALSO WE SAW THE EXAMPLE OF
THE BIG BUSINESS DRAFT
MEMORANDUM.
AND I THINK THAT, YOU KNOW, THE
EMERGENCY SHOULD BE SEEN IN
THAT LIGHT.
WHY IT IS SO IMPORTANT FOR
PEOPLE TO HAVE THIS
IMMEDIATELY.
YEAH.
I'LL JUST DROP THERE.
IF THERE ARE FURTHER QUESTIONS
THAT I CAN CLARIFY ON.
>> THANK YOU VERY MUCH.
BEFORE WE MOVE TO THE PAYROLL
EXPENSE TAX, WE DO HAVE SOME
QUESTIONS FROM COUNCIL
PRESIDENT GONZALEZ.
COUNCIL PRESIDENT GONZALEZ,
THANK YOU FOR WAITING.
GO AHEAD.
>> THANK YOU.
IF I CAN ASK COUNCIL STAFF TO
GO TO THE SLIDE THAT SHOWS THE
INTERFUND LOAN TYPES.
I THINK IT IS SLIDE 11.
THERE WE GO.
THANK YOU SO MUCH.
SO DAN ON THIS PARTICULAR
SLIDE, IT IS MY UNDERSTANDING
THAT ALL OF THESE NUMBER 1
THROUGH 6 SO THIS PROPOSES
TAKING $50 MILLION FROM EACH OF
THESE FUNDING SOURCES IN ORDER
TO GET TO $200 MILLION.
IS THAT -- IS MY UNDERSTANDING
ACCURATE?
>> WITH A SLIGHT AMENDMENT.
UP TO $50 MILLION.
THAT WOULD GET TO 300 MILLION.
>> OKAY.
SO NONETHELESS, SETTING ASIDE
THE AMOUNT OF WHERE THE DIAL
WOULD BE SET, THESE ARE THE
FUNDING SOURCES PROPOSED TO GET
TO -- UP TO $200 MILLION.
>> THAT'S CORRECT.
>> OKAY.
AND ON ALL OF THESE SIX ITEMS,
ARE ALL OF THESE LEVEES?
>> ALL OF THEM ARE FED WITH
LEVEES EXCEPT THE HOUSING
INCENTIVE FUND WHICH WE THINK
WE'RE STILL INVESTIGATING BUT
WE THINK IS ACTUALLY A SUB FUND
TO THE LOW INCOME HOUSING FUND.
THAT ONE IS GENERALLY SUPPORTED
BY NHA.
I MAY GET THE TERMINOLOGY WRONG
BUT AFFORDABILITY ACT IN
PAYMENTS IN LIEU OF BUILDING
AFFORDABLE HOUSING FOR
ADDITIONAL HEIGHT INCENTIVES.
>> OKAY.
SO THEN IF I'M LOOKING AT THESE
SIX OPTIONS, THE NUMBER 3, 4,
5, AND 6 ARE ACCURATELY
CHARACTERIZED AS VOTER APPROVED
LEVEES?
>> YES.
THAT'S CORRECT.
AND THE LOW INCOME HOUSING FUND
IS --
>> I DON'T WANT YOU TO TALK
ABOUT THE LOW INCOME HOUSING
FUND RIGHT NOW.
I'M ASKING YOU TO CONFIRM MY
SIMPLE QUESTION WHICH IS NUMBER
3, 4, 5, AND 6 ARE VOTER
APPROVED LEVEES.
IS THAT ACCURATE.
>> THAT IS ACCURATE.
>> OKAY.
AND 3, 4, 5, AND 6 LISTED ON
THIS SLIDE ARE -- ARE ALL
RELIANT ON PROPERTY TAXES?
IS THAT WHAT I HEARD YOU SAY?
>> YES.
SO FAR AS I KNOW, THAT IS THE
ONLY SOURCE FOR THOSE FUNDS,
PROPERTY TAXES.
>> OKAY.
AND IN THE CONTEXT OF THOSE
VOTER APPROVED TAX LEVEES
RELATED TO 3, 4, 5 AND 6 ON
SLIDE 11, WHAT -- WHAT LANGUAGE
IN THE ENABLING ORDINANCES AND
ANY IMPLEMENTATION, ANY
EVALUATION PLANS RELATED TO
THOSE FUNDS PERMIT THOSE FUNDS
TO BE USED FOR INTERFUND LOANS?
>> I DON'T HAVE A READY ANSWER
FOR YOU OTHER THAN TO TELL YOU
THAT I'M NOT AWARE OF ANY
LANGUAGE THAT EITHER
SPECIFICALLY AUTHORIZES OR
SPECIFICALLY CONSTRAINS THE
CITY'S ABILITY TO DO AN.
>> Reporter: FUND LOAN FROM
THESE FUNDS.
>> OKAY.
SOINTERFUND LOANS.
>> OKAY.
I WAS A PRIME SPONSOR ON.
THAT HAS AN ENABLING ORDINANCE
THAT USES A LOT OF SHALL
LANGUAGE FOR THE ITEMS THAT
WILL BE SUPPORTED THROUGH THAT
FUNDING.
SO HAS THE LAW DEPARTMENT BEEN
ENGAGED ON EITHER ITEMS 3, 4,
5, AND 6 TO PROVIDE US WITH
THEIR LEGAL OPINION ON HOW
THOSE DOLLARS MAY BE USED
EITHER FOR THE PROGRAMS -- I'M
SORRY.
FOR THE PROGRAMS PROPOSED --
SPENDING PLAN.
>> YOU CUT OUT A LITTLE BIT
COUNCIL PRESIDENT BUT I THINK I
UNDERSTOOD THE GIST OF THE
QUESTION.
YES, THE LAW DEPARTMENT HAS
BEEN ENGAGED IN REVIEW OF THE
PROPOSED LEGISLATION.
>> SO I WON'T ASK YOU TO
DIVULGE ATTORNEY-CLIENT
PRIVILEGE IN OPEN SESSION, BUT
I WOULD ASK THAT YOU SHARE THAT
LEGAL OPINION WITH ME AND MY
OFFICE.
I WOULD CERTAINLY APPRECIATE
SEEING THAT.
AND THEN -- AND THEN -- THE
SECOND LINE OF QUESTIONING HERE
IS IN THE EXAMPLES OF -- I
THINK THIS IS WHERE WE CAN GO
TO SLIDE 13.
SORRY.
MAYBE IT WAS 12.
SLIDE 12.
NOPE.
14.
SORRY.
I'LL GET IT RIGHT.
14.
THERE WE GO.
SO IN THESE -- ON THIS SLIDE,
DAN, I UNDERSTAND THE CONCEPT
THAT YOU'RE DESCRIBING WHICH
IS, YOU KNOW, IT IS PRETTY --
PRETTY -- INTERFUND LOANS IS A
COMMON CONCEPT.
AND, YOU KNOW, BY DEFINITION
ALLOWS US TO USE EXISTING
REVENUE SOURCES AND STREAMS TO
-- TO PAY FOR OTHER SERVICES ON
THE PROMISE THAT WE WILL PAY
THESE BACK.
SO IT IS -- YOU KNOW, GIVING
OURSELVES A CREDIT CARD AND
THEN PAYING BACK ON THAT
CREDIT.
SO IN THESE CASES HOWEVER ON
THE SEA WALL REPLACEMENT,
AFFORDABLE HOUSING, MERCER
WEST, WATERFRONT LED AND THE
SHORT TERM RENTAL TAX, WHILE I
UNDERSTAND THAT WE HAVE
BORROWED AGAINST OURSELVES FOR
OTHER PURPOSES, WHAT I'M ASKING
IS WHAT DETAILS CAN YOU PROVIDE
US RIGHT NOW ABOUT HOW THOSE
DOLLARS WERE USED?
SO IN OTHER WORDS, I'LL JUST
PLAY IT OUT.
ON THE $85 MILLION FOR THE SEA
WALL REPLACEMENT, WHAT WERE THE
$85 MILLION USED FOR?
SAME QUESTION FOR THE $29
MILLION AFFORDABLE HOUSING.
THE $26 MILLION MERCER WEST.
AND THE $19 MILLION WATERFRONT
LID AND THE $5 MILLION SHORT
TERM RENTAL TAX.
WHAT WAS THE PURPOSES FOR THE
SPENDING FOR WHICH WE TOOK OUT
THE INTERFUND LOAN.
WAS IT IN ONE CHUNK OR OVER A
PERIOD OF TIME AND WE TOOK BITS
HERE AND BITS THERE?
I JUST WANT TO KNOW A LITTLE
BIT MORE.
AND IF DETAIL BELOW ZERO THAT
NOW, I WOULD APPRECIATE HEARING
IT.
IF NOT YOU CAN GET IT TO ME OFF
LINE.
I WANT TO HEAR ABOUT THE
MECHANISMS AND THE PRINCIPLES,
FRANKLY THE FISCAL POLICIES AND
PRINCIPLES THAT WERE UNDERLYING
THE -- THE INTERFUND LOANING
THAT WAS GOING BACK AND FORTH
IN THESE PARTICULAR EXAMPLES
THAT YOU HAVE HERE.
>> YEAH.
I -- WHAT I HAVE FROM EACH OF
THESE EXAMPLES IS WHAT THE
MONEY WAS USED FOR.
WHAT I DON'T HAVE OFFHAND IS
EXACTLY WHICH FUND DID THE
LOANING THAT WAS REPAID WITH.
>> GOT IT.
>> THE FUNDING SOURCES.
I THINK THAT'S WHAT YOU'RE
REALLY PROBABLY AFTER.
I THINK IT WOULD BE BEST FOR ME
TO FOLLOW UP OFF LINE AND GET
YOU THIS INFORMATION RATHER
THAN TELL YOU WHAT I KNOW THAT
ISN'T THAT INTERESTING TO YOU.
>> YEAH.
DAN, I APPRECIATE THAT.
THAT IS A GOOD CLARIFICATION.
BECAUSE I HAD ACTUALLY HEARD IT
THE OTHER WAY AROUND.
I HAD HEARD YOU SAY THAT THESE
DOLLARS WERE TAKEN FROM THESE
PROJECTS FOR OTHER THINGS.
AND WHAT YOU'RE SAYING NOW IS
THAT THESE DOLLARS WERE TAKEN
FROM OTHER PLACES TO FUND THE
THINGS THAT ARE LISTED HERE.
SO I THINK MY QUESTION STILL
STANDS.
I APPRECIATE YOU GIVING ME THAT
CORRECTION.
BUT I WOULD REALLY APPRECIATE
UNDERSTANDING, AGAIN, WHERE DID
THAT $85 MILLION COME FROM IN
ORDER TO DO THE SEA WALL
REPLACEMENT?
WHERE DID THE $29 MILLION COME
FROM IN ORDER TO DO THE
AFFORDABLE HOUSING.
WHAT WAS THE PLACE, THE REVENUE
STREAM FOR THAT.
AND SORT OF WHAT WERE THE
UNDERLYING FINANCIAL FISCAL
POLICY PRINCIPLES THAT WERE AT
PLAY IN THE COURSE OF MAKING
THOSE DECISIONS AND WERE THEY
EXECUTIVE -- EXECUTIVE
INITIATED OR WERE THEY --
COUNCIL DRIVEN.
>> YES.
I WILL BE HAPPY TO FOLLOW UP
WITH THAT INFORMATION.
I UNDERSTAND THE QUESTION.
>> THANK YOU.
I DON'T THINK I HAVE ANY OTHER
QUESTIONS, CHAIR MOSQUEDA.
I APPRECIATE YOUR INDULGENCE IN
COMING BACK TO ME.
>> WE DO HAVE TOM WHO IS BACK
ON THE LINE FROM CENTRAL STAFF.
COLLEAGUES I'M GOING TO ASK US
TO WALK THROUGH THE
PRESENTATION IN FULL AGAIN.
IF YOU ARE PAYING ATTENTION
ONLINE, YOU CAN SEE THE FULL
POWERPOINT PRESENTATIONS LINKED
IN THE AGENDA.
KIRSTEN I'M GOING TO ASK YOU TO
START WITH SLIDE NUMBER ONE.
WE JUST CONCLUDED A
CONVERSATION ABOUT THE
INDEPENDENT FUND LOAN BY DAN
EDER, AND BECAUSE OF THE
TECHNICAL DIFFICULTIES AND
AUDIO QUALITY, WE'RE GOING TO
ASK TOM MIKESELL TO WALK US
THROUGH THE COUNCIL BILL, THE
PAY ROW EXPENSE TAX SO THERE IS
FULL TRANSPARENCY BOTH WITH OUR
COLLEAGUES AND THE VIEWING
PUBLIC AND ANY PRESS FOLLOWING
THIS.
TOM, I BELIEVE YOUR AUDIO HAS
BEEN TESTED.
LET'S TEST IT BEFORE WE BEGIN
AND THEN WE WILL WALK THROUGH
THE FIRST PART OF THE
PRESENTATION SO THERE IS FULL
TRANSPARENCY.
I'LL TURN IT BACK OVER TO THE
SPONSORS FOR ANY CLARIFICATION
ON LEGISLATIVE INTENT BEFORE WE
WRAP UP.
WE WILL HAVE PLANE TEE OF TIME
TO ASK QUESTIONS ON THIS AS
WELL.
TOM, LET'S TEST YOUR AUDIO.
>> HI, CHAIRMAN MOSQUEDA.
CAN YOU HEAR ME.
>> I CAN.
IT IS STILL A LITTLE GLITCHY.
BUT IF THERE ARE ANY PROBLEMS,
WE WILL MAKE SURE THAT THIS
GETS TRANSFERRED TO OUR NEXT
COMMITTEE MEETING SO THAT THERE
IS NOT ANY CONCERNS.
AND TOM, PLEASE TRY TO SPEAK
SLOWLY IN CASE THE AUDIO NEEDS
TO CATCH UP WITH YOUR
PRESENTATION.
AND I BELIEVE KIRSTEN HAS TEED
YOU UP FOR THE PAYROLL EXPENSE
TAX OVERHAVE YOU.
THANKS, TOM.
>> GREAT.
THANK YOU.
OKAY SO I WILL TRY TO FILL IN
ANY GAPS SO WE CAN GO OVER THE
PRESENTATION IN COMPLETE.
WE ARE TALKING ABOUT COUNCIL
BILL 119772.
THIS GIVES AN OVERVIEW OF THE
ITEMS I WILL TOUCH ON IN THE
PRESENTATION.
WE WILL COVER THE ANNUAL
REVENUE AMOUNT, THE TAX
STRUCTURE, INCLUDING THE RATE
AND THRESHOLD.
WE WILL GO INTO WHAT BUSINESSES
ARE GENERALLY SUBJECT TO TAX
AND TALK ABOUT THE DESCRIPTION
OF SITUATIONS.
WE WILL TALK ABOUT THE
EXEMPTIONS IN THE BILL.
THERE IS AN EMERGENCY CLAUSE
THAT IS INCLUDED IN THE
LEGISLATION.
SO I WILL SPEAK TO THE EFFECT
OF THAT.
AND THEN FINALLY I WILL TOUCH
EXAMINE CONCLUDE WITH A
DISCUSSION OF THE DATE THAT THE
TAX IS IMPOSED AND THE ACTUAL
DUE DATES FOR TAX PAYMENTS.
SO NEXT SLIDE, PLEASE.
AT A HIGH LEVEL THE TAX IS
STRUCTURED TO BRING IN $500
MILLION PER YEAR.
THE TAX GOES INTO EFFECT JUNE
1st OF THIS YEAR.
SO THERE IS A PARTIAL
COLLECTION ASSUMPTION THAT IS
INCLUDED IN REVENUE ESTIMATES.
SINCE IT GOES INTO EFFECT JUNE
1st, THERE IS APPROXIMATELY 7
MONTHS OF COLLECTION.
AND SO JUST DOING THE SIMPLE
MATH, THAT WOULD BE $286
MILLION OF REVENUE FOR 2020.
NEXT SLIDE, PLEASE.
THE RATE FOR THE TAX IS 1.3% OF
PAYROLL ASSIGNED TO SEATTLE.
ASSIGNED TO SEATTLE IS A
TECHNICAL TERM.
AND IT IS SIMILAR TO THE WAY
THAT THE CITY'S CURRENT
BUSINESS LICENSE TAX, THE WAY
THAT IT DETERMINES THE AMOUNT
OF ECONOMIC ACTIVITY THAT
HAPPENS WITHIN THE CITY LIMITS
FOR PURPOSES OF DETERMINING
BUSINESS TAX LIABILITY.
SO FOR THE PURPOSES OF THIS
BILL, FOR BUSINESSES TO
DETERMINE WHAT THEIR PAYROLL IS
AGAINST THE $7 MILLION
EXEMPTION THRESHOLD, THEY WOULD
APPLY A THREE-PART TEST SIMILAR
TO THE BUSINESS LICENSE TAX.
FIRST WE ARE LOOK AT WHETHER OR
NOT AN EMPLOYEE IS ASSIGNED TO
WORK IN SEATTLE.
SO THEY WORK FOR A BUSINESS
OPERATING IN SEATTLE.
NEXT CRITERIA IS IF THEY ARE
NOT PRIMARILY ASSIGNED TO ANY
ONE LOCATION, IT WOULD LOOK TO
SEE WHERE THE EMPLOYEE PERFORMS
50% OF THEIR WORK.
SO IF THE EMPLOYEE PERFORMS 50%
OR MORE OF THEIR WORK FOR -- IN
SEATTLE, THEN THE ENTIRE AMOUNT
OF THAT INDIVIDUAL'S PAYROLL
WOULD BE INCLUDED IN THE TAX
BASE.
AND THEN FINALLY IN INSTANCES
WHERE AN EMPLOYEE WORKS IN
MULTIPLE LOCATIONS AND DOES NOT
PERFORM WORK -- DOES NOT
PERFORM 50% OF THEIR WORK IN
ANY SINGLE CITY, BUT THAT
PERSON DOES LIVE IN SEATTLE,
THAT FULL AMOUNT OF THE PAYROLL
WOULD BE INCLUDED IN MEASURING
AGAINST THE $7 MILLION
THRESHOLD.
NEXT SLIDE.
SO THERE IS A -- THE EXEMPTION
THRESHOLD.
SO BUSINESSES BELOW $7 MILLION
WOULD NOT PAY.
I JUST WANTED TO TALK A LITTLE
BIT ABOUT SOME OF THE DIFFERENT
BUSINESS SITUATIONS.
SO THIS SLIDE COVERS SOME OF
THOSE -- SOME OF THOSE
SITUATIONS THAT HAVE COME UP IN
DISCUSSIONS AFTER THE BILL WAS
INTRODUCED.
ESSENTIALLY TRYING TO
UNDERSTAND HOW THE TAX WOULD
APPLY IN DIFFERENT SITUATIONS.
I WOULD NOTE THE FIRST
INDEPENDENT CONTRACTORS IS
ACTUALLY SPECIFICALLY INCLUDED
IN THE LEGISLATION.
THE SECOND TO INTEGRATED AND
FRANCHISE BUSINESSES ARE NOT
SPECIFICALLY NOTED WITHIN THE
LEGISLATION.
THE POINT ON THE SLIDES AND MY
COMMENTS WILL BASICALLY PROVIDE
AN INTERPRETATION OF HOW THE
TAX WOULD APPLY FOR THOSE
SITUATIONS.
WITH REGARDS TO INDEPENDENT
CONTRACTORS, THESE ARE -- I
GUESS WHEN YOU HEAR THE TERM
GIG WORKERS, THAT IS
ESSENTIALLY WHAT WE'RE TALKING
ABOUT.
SO IN CASES WHERE A BUSINESS
HAS -- SO THEY HIRE AND PAY
COMPENSATION TO AN INDEPENDENT
CONTRACTOR.
AND IN INSTANCES WHERE THAT
PERSON IS NOT WORKING FOR SOME
OTHER BUSINESS, THE ENTIRE
AMOUNT OF THE PAYMENTS TO THE
INDEPENDENT CONTRACTOR WOULD BE
INCLUDED IN THE BUSINESS
CALCULATION OF ITS TOTAL
PAYROLL EXPENSE.
THE NEXT INTEGRATED ENTERPRISE.
THIS IS NOT INCLUDED IN THE
LEGISLATION BUT AN
INTERPRETATION OF HOW THE
LEGISLATION WOULD APPLY.
THESE ARE INSTANCES WHERE A
BUSINESS MAY FORMALLY AND
INFORMALLY ADVERTISE ITSELF AS
A LARGER BUSINESS STRUCTURE,
BUT IN TERMS OF PRACTICE IT IS
ACTUALLY A COLLECTION OF
SMALLER BUSINESSES THAT PERHAPS
REPORT TO OR ARE MANAGED BY A
LARGER MANAGEMENT CORPORATION.
SO EACH INDIVIDUAL BUSINESS GOT
AHOLD OF THE BUSINESS LICENSE
WOULD BE TESTED AGAINST THE $7
MILLION THRESHOLD AS OPPOSED TO
AGGREGATING ALL OF THE
INDIVIDUAL CASES AS ONE GROUP
ENTITY AND TESTING AGAINST THE
$7 MILLION THRESHOLD.
SO FINALLY FRANCHISE
BUSINESSES, THESE ARE PERHAPS
MORE FAMILIAR.
THESE ARE CASES WHERE A
BUSINESS CAN ENTER INTO AN
AGREEMENT WITH A LARGER
NATIONAL AND IN MANY CASES
CORPORATION AND USE
INFORMATION, BUSINESS PLAN
INFORMATION TO OPERATE THEIR
OWN INDIVIDUAL BUSINESS.
SO IN THESE INSTANCES, EACH ONE
OF THOSE FRANCHISE BUSINESSES
WILL BE MEASURED AGAINST THE $7
MILLION THRESHOLD AS OPPOSED TO
AGGREGATING THEM -- ALL OF THE
DIFFERENT FRANCHISES THAT
OPERATES IN THE CITY AND
TESTING AGAINST THE $7 MILLION
THRESHOLD.
SO THE EXAMPLE THAT I LIKE TO
REFER TO IS McDONALD'S.
IT IS A NATIONAL NAME AND THERE
ARE MANY McDONALD'S WITHIN THE
CITY OF SEATTLE.
IN THE INSTANCE THAT EACH ONE
HOLDS A BUSINESS LICENSE, EACH
ONE OF THE INDIVIDUAL
RESTAURANTS WOULD BE MEASURED
AGAINST THE $7 MILLION
THRESHOLD IN THE LEGISLATION.
NEXT SLIDE, PLEASE.
>>> SO I COVERED THIS A FEW
TIMES.
BUT GENERALLY THE $7 MILLION
THRESHOLD APPLIES.
THERE ARE A NUMBER OF
EXEMPTIONS IN THE BILL.
THOSE INCLUDE NONPROFIT
ORGANIZATIONS, ANY EDUCATIONAL
EMPLOYERS, GROCERY STORES,
INCLUDING RETAIL AND WHOLESALE,
AND THESE ARE GENERALLY STORES
THAT SELL 75% OR MORE OF THEIR
-- OF THEIR SALES ARE FOR TAX-
EXEMPT FOOD PRODUCTS.
LOCAL GOVERNMENT EMPLOYERS.
NEXT SIDE, PLEASE.
FEDERAL AND STATE GOVERNMENTS,
INSURANCE BUSINESSES, WHICH ARE
GENERALLY NOT SUBJECT TO TAX.
BUSINESSES THAT SELL,
MANUFACTURE, DISTRIBUTE MOTOR
VEHICLE FUEL, AND BUSINESSES
THAT SELL OR DISTRIBUTE LIQUOR.
AND NEXT SLIDE, PLEASE.
>>> SO WITH REGARDS TO THE DUE
DATES AND THE EFFECTIVE DATE,
THE TAX WOULD BE EFFECTIVE JUNE
1st OF 2020.
BUSINESSES WOULD THEN AT THAT
POINT IN TIME NEED TO DETERMINE
THEIR LIABILITY FOR THE TAX.
HOWEVER, THERE IS AN ELEMENT OF
ADMINISTRATION OUTREACH AUDIT
THAT NEEDS TO BE ESTABLISHED IN
THE DEPARTMENT OF FINANCE AND
ADMINISTRATIVE SERVICES.
AND THE BILL PROVIDES FOR
APPROXIMATELY 18-MONTH PERIOD
FROM THE EFFECTIVE DATE OF THE
TAX TO THE END OF NEXT YEAR FOR
THE -- DETERMINING THE
LIABILITY AND THEN MAKING THE
FINAL PAYMENTS.
AND SO THE ALL TAX PAYMENTS FOR
2020 AND 2021 WOULD BE DUE WITH
THE FINAL QUARTERLY PAYMENT OF
2021 WHICH IS DUE WITHIN ONE
MONTH AT THE END OF THE FISCAL
YEAR, WHICH WOULD BE DUE BY
FEBRUARY 1st, 2022.
ACCRUALS, THIS IS ESSENTIALLY
JUST THE ACCOUNTING SPEAK FOR
THE WAYS IN WHICH GOVERNMENTS
CAN MONITOR THEIR REVENUE FLOWS
AGAINST THE OBLIGATIONS THAT
THEY HAVE.
THIS IS SIMILAR TO OUR CURRENT
PRACTICE.
ANY TAX RECEIPTS THAT ARE
MEASURABLE, COMMON EXCESSIVE
PERIOD.
SO IN THIS CASE THE PAYMENTS
THAT COME 2022, THOSE CAN BE
ACCRUED BACK INTO THE 2021
FISCAL YEAR WHICH WAS DESCRIBED
EARLIER AS A RESULT OF THE
SPENDING PLAN.
AND THEN FINALLY THE EMERGENCY
CLAUSE.
THE LEGISLATION INCLUDES AN
EMERGENCY CLAUSE WITH AN
IMMEDIATE EFFECTIVE DATE TO
HAVE SUCCESSFUL PASSAGE OF THE
LEGISLATION, WITH WOULD REQUIRE
A THREE QUARTERS COUNCIL VOTE
AND APPROVAL OF THE MAYOR.
I HOPE THAT CAME THROUGH LOUD
AND CLEAR THIS TIME.
AND I WOULD BE HAPPY TO BE
ANSWER ANY QUESTIONS.
I BELIEVE THERE WAS A QUESTION
FROM COUNCIL MEMBER LEWIS THAT
I WOULD HAPPY TO RESPOND TO.
BUT I WOULD REFER TO THE CHAIR
HOW SHE WOULD LIKE ME TO PRO
ED.
>> WE DID HEAR YOU LOUD AND
CLEAR.
I HOPE THE VIEWING PUBLIC WHO
WAS HAVING CONCERNS IS STILL
TUNED IN AND COULD HEAR YOU AS
WELL.
AND FOR ANYONE WHO DOES WRITE
IN WITH CONCERNS ABOUT NOT
BEING ABLE TO HEAR YOUR
PREVIOUS PRESENTATION, WE WILL
MAKE SURE TO SEND THEM THE
RECORDED LINK TO SEATTLE
CHANNEL FOR THIS FULL WALK-
THROUGH.
COUNCIL MEMBER LEWIS I'M GOING
TO TURN IT OVER TO YOU.
DO YOU MIND POSING YOUR
QUESTION AGAIN FOR THE
CONTINUITY OF THE CONVERSATION.
>> OF COURSE.
THANK YOU, MADAM CHAIR.
SO JUST TO REPHRASE THE
QUESTION FROM EARLIER, IT WAS
ESSENTIALLY HAVE THE REVENUE
PROJECTIONS GOING FORWARD FROM
THIS TAX CHANGED AT ALL GIVEN
THE POTENTIAL IMPACTS OF COVID
ON THE ECONOMY AND HOW THAT
MIGHT HAVE AN IMPACT OF THE
PAYROLL OF FIRMS, BANKRUPTCY OF
FIRMS, IF IT WOULD REDUCE --
POTENTIALLY REDUCE THE TAX
BASE.
I'M WONDERING IF THAT IS --
FIRST, IF THAT IS A VALID
CONCERN.
SECOND, WHETHER THAT HAS BEEN
FACTORED INTO THE CURRENT
ESTIMATES ON THE INTEGRITY OF
THE PROJECTIONS ON HOW MUCH
THIS WOULD RAISE OVER THE NEXT
COUPLE OF YEARS.
>> OKAY.
SO I GUESS TO ACKNOWLEDGE THE
CONCERN, WHEN WE WERE
DEVELOPING THE RATES, SO WE HAD
INFORMATION THAT CAME BY WAY OF
THE EMPLOYMENT SECURITY
DEPARTMENT.
IT WAS 2018 DATA.
AND OUR ESTIMATES WERE BEING
DEVELOPED PRIOR -- OR PRIOR TO
THE COVID EMERGENCY, BEFORE WE
KNEW WHAT THE IMPACTS WERE
GOING TO BE.
SO WE WERE KIND OF A LITTLE BIT
TRYING TO FIGURE OUT A WAY TO
ACCOUNT FOR THE POTENTIAL
IMPACTS OF THE COVID EMERGENCY,
PARTICULARLY WITH REGARDS TO
SOCIAL DISTANCING.
AND GIVEN THAT THERE IS -- WAS
LITTLE INFORMATION AT THE TIME
WHAT THE IMPACTS COULD LOOK
LIKE, THE APPROACH THAT WE USED
WAS TO LOOK AT THE SHARE OF
EMPLOYMENT, SHARE OF TOTAL
COVERED EMPLOYMENT THAT WAS
REPRESENTED BY ACCOMMODATION,
FOOD SERVICE, ARTS,
ENTERTAINMENT AND RECREATION
BUSINESSES WHICH IS ABOUT 12%
OF THE TOTAL EMPLOYMENT AND USE
THAT SINCE THOSE ARE THE
BUSINESS SECTORS THAT ARE MOST
CLEARLY BEING DAMAGED BY THE
SOCIAL DISTANCING OR SEEING
IMPACTS FROM THAT.
WE USE THAT AS A PROXY.
AND, AGAIN, THIS WAS -- THIS
WAS EARLIER ON.
SUBSEQUENT TO THAT TIME, WE
HAVE SEEN ON CBOs A
PRESENTATION, OF COURSE THEY'RE
DEALING WITH GREAT LEVELS OF
UNCERTAINTY AS WELL.
BUT AS WE LEARN MORE
INFORMATION AND GET TO THE
POSSIBILITY OF TEST ASSUMPTIONS
THAT ARE MADE AND THE -- THE
REPORT FROM THAT IS THAT
UNEMPLOYMENT WHICH IT WOULD
PROBABLY BE THE BEST READ AS TO
WHAT THE IMPACTS WOULD BE FROM
A PAYROLL EXPENSE TAX,
UNEMPLOYMENT HAS INCREASED
ANYWHERE FROM 3.1 TO 9.6% IN
2020.
BASED ON THOSE ESTIMATES.
SO THAT COMPARES TO THE 12%
ADJUSTMENT THAT IS MADE FOR
SIZING THE RATE THAT IS USED IN
THIS TAX.
SO IT IS -- AGAIN, THAT IS THE
APPROACH THAT WAS TAKEN TO KIND
OF ACCOUNT FOR THE ECONOMIC
UNCERTAINTY.
AND IT SEEMS THAT GIVEN THE
MORE RECENT INFORMATION, AS BAD
AS THE INFORMATION IS, AT LEAST
IT VERIFIES THAT THE ADJUSTMENT
THAT WAS MADE WAS IN THE RIGHT
DIRECTION AND IN THE
APPROXIMATE CORRECT ORDER OF
MAGNITUDE.
>> COUNCIL MEMBER LEWIS, ANY
ADDITIONAL FOLLOW-UP QUESTIONS
úFROM YOU.
>> NO.
TOM, THANK YOU SO MUCH FOR THAT
RESPONSE.
>> OKAY.
GREAT.
COUNCIL COLLEAGUES, I'M GOING
TO GO BACK TO THE ROLL CALL TO
SEE IF THERE ARE ANY MORE
QUESTIONS.
THERE MAY BE MORE QUESTIONS NOW
THAT WE HEARD THE PRESENTATION.
COUNCIL MEMBER PEDERSEN.
HEARING NO QUESTIONS.
COUNCIL MEMBER STRAUSS.
HEARING NO QUESTIONS.
COUNCIL PRESIDENT GONZALEZ.
>> I DO HAVE I THINK ONE QUICK
QUESTION.
IF COUNCIL CENTRAL STAFF COULD
SCROLL BACK TO -- YES, THIS
ONE.
THANK YOU SO MUCH.
SLIDE 8 IS GREAT.
THANK YOU SO MUCH.
SO I JUST WANT TO -- I JUST
WANT TO GET CLARIFICATION FROM
YOU, TOM, ON A COUPLE OF POINTS
ON THIS -- ON THIS PARTICULAR
SLIDE.
SO ON THE TAX EFFECTIVE AND DUE
DATES, THE FIRST BULLET POINT
SAYS EFFECTIVE JUNE 1st, 2020.
I WANT TO MAKE SURE THAT I
UNDERSTAND WHAT THAT MEANS.
DOES EFFECTIVE MEAN THAT -- IS
EFFECTIVE THE SAME AS
IMPLEMENTATION OR EFFECTIVE --
OR EFFECTIVE MEANS IT IS
SOMETHING ELSE?
CAN YOU TALK ABOUT THAT A
LITTLE BIT?
>> YES.
ABSOLUTELY.
SO THE EFFECTIVE DATE IS WHEN
THE TAX LIABILITY WILL BEGIN
FOR THOSE BUSINESSES THAT HAVE
LIABILITY GIVEN THE EXEMPTIONS
AND THE THRESHOLDS.
THOUGH IT IS CLEAR THAT THE
ADMINISTRATIVE FUNCTIONS ARE
NOT SET UP AND IN PLACE.
THOSE WOULD INCLUDE PROCURING
SYSTEMS, TECHNOLOGY WITHIN THE
FINANCIAL -- DEPARTMENT OF
FINANCE ADMINISTRATIVE SERVICES
TO ADMINISTER THE TAX.
HIRE THE OUTREACH AND AUDIT
STAFF NECESSARY TO ADMINISTER
THE TAX.
AND -- AND ESSENTIALLY STAND UP
THE TAX COLLECTION
INFRASTRUCTURE.
úAND THAT'S WHY THE -- THE OTHE
SIDE OF THIS EQUATION IS WHEN
THE PAYMENTS ARE DUE.
AND THERE IS AN 18-MONTH PERIOD
BETWEEN WHEN THE TAX LIABILITY
BEGINS AND THEN WHEN THE ACTUAL
PAYMENTS ARE -- WILL BE
COLLECTED AND RECEIVED INTO
CITY COFFERS THAT PERIOD IS
WHAT ALLOWS FOR THE FUNCTION TO
BE SET UP.
THAT BEING SAID, THE LIABILITY
WOULD BE IN PLACE AND
BUSINESSES WILL BE RESPONSIBLE
FOR MAKING THOSE TAX PAYMENTS
BY THE END OF 2021 AND THE
BUSINESSES WILL MAKE THE
DETERMINATIONS AND BRIDGE THE
GAP BETWEEN THE JUNE 1st
EFFECTIVE DATE AND THE FEBRUARY
2022 PAYMENT OF ALL OF THOSE
LIABILITIES.
>> SO THE TERM EFFECTIVE JUNE
1st, 2020, IS -- IT DOES NOT
MEAN COLLECTED STARTING JUNE
1st, 2020.
>> THAT IS CORRECT.
>> OKAY.
IS THERE ANY PORTION OF THE
PAYROLL EXPENSE TAX AS PROPOSED
THAT WOULD BE COLLECTED IN
2020?
>> NO.
>> OKAY.
ON THE EMERGENCY CLAUSE PIECE
-- SO THIS IS A PERIOD ONCE
HERE AND ONCE IN DAN'S
PRESENTATION WHERE IT TALKS
ABOUT HOW THE IMMEDIATE
EFFECTIVE DATE WITH THREE-
FOURTHS CITY COUNCIL VOTE AND
MAYORAL SIGNATURE.
I THINK IT IS REALLY IMPORTANT
FOR US TO HAVE A CONVERSATION
AND TO HEAR FROM YOU WHAT THE
-- WHAT THE IMPACT OF AN
EMERGENCY CLAUSE IS ON -- ON
THE COUNSEL'S LEGISLATIVE
PROCESS.
SO I WOULD LIKE FOR YOU TO TALK
MORE ABOUT THAT.
>> I CAN -- I CAN SPEAK TO HOW
IT PERTAINS TO THE APPROVAL OF
THIS BILL.
I DON'T KNOW IF THAT IS -- IF
THAT'S THE TRUE SCOPE OF YOUR
QUESTION.
>> THAT'S ALL I'M ASKING.
SO I NEED --
>> OKAY.
OKAY.
>> I THINK IT'S -- YOU KNOW, WE
HAVE SORT OF THROWN THAT PHRASE
OUT A COUPLE OF TIMES NOW IN
THIS PRESENTATION.
BUT WE HAVEN'T TAKEN THE TIME
TO EXPLAIN IN THE CONTEXT OF
THESE PROPOSALS WHAT THE EFFECT
IS OF AN EMERGENCY CLAUSE.
GOT IT.
SO A NORMAL BILL WOULD REQUIRE
A MAJORITY VOTE OF COUNCIL WITH
A NINE-MEMBER COUNCIL.
IT IS FIVE COUNCIL MEMBERS
AFFIRMING THE APPROVAL OF THE
LEGISLATION.
AND THEN THAT -- THAT PIECE OF
LEGISLATION WOULD GO TO THE
MAYOR FOR EITHER A SIGNATURE OR
TO LET IT GO INTO ACTION
WITHOUT FURTHER -- WITHOUT
FURTHER ACTION OF THE MAYOR.
IN THIS PARTICULAR CASE, SINCE
IT HAS AN EMERGENCY CLAUSE, THE
THRESHOLD FOR PASSAGE IS
HIGHER.
IT WOULD REQUIRE AN AFFIRMATIVE
VOTE OF 7 OUT OF THE 9 MEMBERS
OF COUNCIL.
AND FURTHER, IT WOULD REQUIRE
THE MAYOR'S SIGNATURE FOR
APPROVAL SO THAT THERE IS NOT A
SITUATION WHERE THE COUNCIL
WOULD APPROVE AND THEN THE
MAYOR COULD NOT NOT ACT AND
HAVE THAT GO INTO LAW.
AND THEN A FINAL PIECE THAT IS
PART OF THIS IS IF THE BILL IS
PASSED WITHOUT -- WITH THE
THREE-QUARTERS VOTE AND THE
MAYOR DOES SIGN, THERE IS NO
PROVISION FOR A REFERENDUM FOR
THIS PIECE OF LEGISLATION.
>> AND WHAT HAPPENS IF THE CITY
COUNCIL SECURES THREE-FOURTHS
OF THE VOTE -- IN OTHER WORDS,
SEVEN COUNCIL MEMBERS VOTE IN
THE AFFIRMATIVE FOR THE BILLS,
BUT THE MAYOR DOES NOT SIGN THE
BILL?
>> MY UNDERSTANDING IS THAT THE
BILL WOULD NOT GO INTO EFFECT
WITH THAT -- WITH THAT
ALGORITHM.
>> AND IF -- IF THE BILL
DOESN'T GO INTO EFFECT BECAUSE
THE MAYOR DIDN'T SIGN IT, WOULD
THE CITY COUNCIL HAVE AN
OPPORTUNITY TO RECONSIDER THIS
LEGISLATION?
>> IT WOULD BE NO OPPORTUNITY
TO RECONSIDER THE LEGISLATION.
THOUGH IT COULD BE REINTRODUCED
AS A NEW BILL.
>> IS IT AS SIMPLE AS A
REINTRODUCTION WITH A NEW
COUNCIL BILL, TOM, OR WOULD
THERE HAVE TO BE SOMETHING THAT
IS SUBSTANTIVELY DIFFERENT.
>> I DO NOT KNOW THE ANSWER TO
THAT QUESTION SPECIFICALLY,
COUNCIL PRESIDENT.
OTHERWISE I COULD FOLLOW UP.
>> THIS IS DAN EDER.
I BELIEVE THAT THE SUBSTANTIVE
CHANGE THAT WOULD NEED TO TAKE
PLACE IN THE CIRCUMSTANCE THAT
YOU JUST DESCRIBED, COUNCIL
PRESIDENT, WHERE THE MAYOR
EITHER VETOED THE BILL OR
SIMPLY WITHHELD HER SIGNATURE,
AS TOM MENTIONED, THE BILL
WOULD NOT GO INTO EFFECT.
IF THE COUNCIL WANTED TO TAKE
UP A NEW BILL, THE SUBSEQUENT
CHANGE WOULD BE IT WOULD NOT BE
EMERGENCY LEGISLATION.
IF IT WAS OTHERWISE THE SAME,
AT LEAST THE EMERGENCY CLAUSE
WOULD NEED TO BE ELIMINATED
FROM THE PROPOSAL.
>> IF COUNCIL CENTRAL STAFF
COULD FOLLOW UP WITH ME OFF
LINE ON THAT, I THINK THAT
WOULD BE HELPFUL TO ME.
BECAUSE MY UNDERSTANDING IS A
LITTLE DIFFERENT THAN WHAT YOU
HAVE JUST DESCRIBED, DAN.
SO IF WE COULD -- IF WE COULD
CONNECT OFF LINE, THAT WOULD BE
GREATLY APPRECIATED.
CHAIR MOSQUEDA, I DON'T HAVE
ANY OTHER QUESTIONS ON THIS
PORTION OF THE PRESENTATION.
THANK YOU SO MUCH.
>> THANK YOU, COUNCIL
PRESIDENT.
LOOKING AT THE LIST, ARE THERE
ANY ADDITIONAL COUNCIL MEMBERS
BESIDES THE PRIME SPONSORS THAT
WOULD LIKE TO ASK A QUESTION?
COUNCIL MEMBER MORALES AND
SAWANT, I HAVE A FEW QUESTIONS
AS WELL.
FOLLOWING UP WITH THE QUESTION
AROUND THE EFFECTIVE DATE OF --
SHE ASKED IF THERE WOULD BE ANY
TAXES COLLECTED IN THE YEAR
2020 AND I BELIEVE YOU SAID THE
ANSWER IS NO, EVEN THOUGH THE
LEGISLATION SAYS EFFECTIVE IN
2020.
CAN YOU ALSO CONFIRM, MY
UNDERSTANDING WAS THAT THERE
WOULD BE NO TAXES COLLECTED IN
THE YEAR 2021 EITHER.
THAT THOSE WOULD NOT BE DUE
UNTIL 2022, LOOKING BACK AT THE
2021 YEAR.
CAN YOU COMMENT ON THAT FOR US
BRIEFLY?
>> THAT IS CORRECT.
THE LIABILITIES WILL ACCRUE FOR
2020 AND FOR 2021.
THOUGH THE PAYMENTS ARE NOT DUE
FOR BUSINESSES UNTIL THAT FINAL
TAX PAYMENT OF 2021, WHICH IS
FORMERLY DUE FEBRUARY OF 2022.
>> OKAY.
THANK YOU.
KIRSTEN, COULD YOU PLEASE GO TO
SLIDE NUMBER 4 FOR US.
LOOKING AT SLIDE NUMBER 4, I
HAD A FOLLOW-UP QUESTION ON
THIS.
IN DETERMINING WHICH BUSINESSES
HAVE A $7 MILLION OR HIGHER
SEATTLE PAYROLL IN THE PREVIOUS
YEAR, ARE WE ALSO LOOKING AT
2021 YEARS OR IS IT A DIFFERENT
THRESHOLD THAT WE ARE LOOKING
AT TO DETERMINE WHICH
BUSINESSES HAVE A HIGHER
SEATTLE PAYROLL THAN $7
MILLION?
>> SO IF I'M UNDERSTANDING THE
QUESTION CORRECTLY, IN EACH
YEAR, THE BUSINESSES WILL BE
LOOKING AT THEIR MOST IMMEDIATE
PRIOR YEAR.
SO FOR MAKING A DETERMINATION
OF TAX LIABILITY IN 2020,
BUSINESSES WILL BE LOOKING AT
THEIR 2019 -- AT THEIR 2019
PAYROLL.
AND SO GOING IN ORDER, IF
BUSINESSES ARE DETERMINING
THEIR TAX LIABILITY FOR 2021,
THEY WILL BE LOOKING AT WHETHER
OR NOT THEIR PAYROLLS WERE
ABOVE OR BELOW THE $7 MILLION
THRESHOLD IN 2020.
AND THAT BASICALLY CARRIES
THROUGH -- YOU KNOW, THROUGH
THE LIFE OF THE TAX.
ALWAYS LOOKING BACK AT THE
PRIOR YEAR'S PAYROLL TO
DETERMINE WHETHER OR NOT THEY
HAVE LIABILITY IN THE CURRENT
YEAR.
>> OKAY.
THANK YOU SO MUCH.
AND IN LOOKING AT SLIDE 4,
DEFINITION OF SEATTLE ASSIGNED
PAYROLL.
IN OUR CONVERSATIONS OVER THE
LAST TWO WEEKS IN THINKING
ABOUT HOW WE RESPOND TO THE
EMERGENCY THAT IS COVID AND THE
NEED TO GET ASSISTANCE OUT THE
DOOR TO SMALL BUSINESSES,
WORKERS, TO ENSURE FOOD
SECURITY AND HOUSING SECURITY,
AMONG OTHER THINGS, I KNOW THAT
THERE'S BEEN REFERENCE TO THE
HOUSE BILL, HOUSE BILL 2907.
I WANT TO CROSSWALK THE
DEFINITION OF SEATTLE ASSIGNED
PAYROLL AND SEE IF WE ARE USING
A SIMILAR DEFINITION.
>>> I BELIEVE THE ANSWER IS YES
BUT I WANT TO DOUBLE-CHECK.
WHEN YOU LOOK AT THE THREE SUB
BULLETS HERE, IS IT SIMILAR
LANGUAGE THAT YOU HAVE PULLED
FROM FROM THE HOUSE BILL TO
IDENTIFY HOW WE WOULD DEFINE
WHICH -- WHICH COMPANIES HAVE
SEATTLE PAYROLL?
IS THAT SIMILAR IN LANGUAGE
THAT THE HOUSE BILL USED?
>> CHAIR MOSQUEDA, I DO RECALL
LOOKING BACK.
THERE WERE -- IF YOU WILL
RECALL, THERE WAS A HOUSE BILL
2907 AND A HOUSE BILL 2948.
AND THEY BOTH LOOKED AT A
COUNTY-WIDE TAX.
I DO RECALL, I BELIEVE IT WAS
2948 HAD A SIMILAR
CONSTRUCTION, THOUGH IT WAS
MAKING THE PERMUTATIONS WITH
THE COUNTY AS THE FOCUS, VERSUS
THE CITY SINCE IT WAS A COUNTY
TAX.
THOUGH I DO NOT KNOW IF THE --
IF THE LANGUAGE IS EXACTLY THE
SAME.
THOUGH I DO RECALL THAT IT WAS
SIMILAR TO 2948.
>> OKAY.
GREAT.
I MAY ASK FOR A FOLLOW-UP ON
THAT AS WELL.
AND I KNOW IT WILL PROBABLY
TAKE A QUICK SECOND FOR ME TO
DO TOO.
LET'S FOLLOW UP ON THAT TO SEE
WHETHER THERE WOULD BE ANY
DEVIATIONS.
AS I KNOW THAT HOW WE DEFINE
SEATTLE ASSIGNED PAYROLLS IS AN
IMPORTANT QUESTION THAT WAS
ASKED DURING PUBLIC TESTIMONY
AS WELL.
>> YES.
>> COUNCIL COLLINS, I
APPRECIATE YOUR QUESTIONS.
I WANT TO MAKE SURE THAT YOU
HAVE A CHANCE TO SAY EVERYTHING
THAT YOU NEEDED TO SAY.
>> I'M GOOD HERE.
THANK YOU, CHAIR.
HOLD ON FOR A SECOND.
ARE THERE ANY ADDITIONAL
QUESTIONS BEFORE I TURN IT OVER
TO THE PRIME SPONSORS?
HEARING NONE, COUNCIL MEMBER
SAWANT AND MORALES, THANKS
AGAIN FOR YOUR FEEDBACK AS WE
GO THROUGH THIS.
I KNOW YOU PROVIDED YOUR
COMMENTS ABOUT LEGISLATIVE
INTENT LAST TIME.
ARE THERE ANY FOLLOW-UP
COMMENTS ON LEGISLATIVE INTENT
OR QUESTIONS THAT YOU WOULD
LIKE TO THROW OUT WHILE WE HAVE
CENTRAL STAFF ON THE PHONE.
>> THANK YOU.
YES, I DO HAVE A KIND OF
TECHNICAL QUESTION, TOM.
WE HAVE HAD A LITTLE BIT OF
BACK AND FORTH WITH FOLKS FROM
THE GROCERY INDUSTRY.
AND SO I DO HAVE A QUESTION
SIMILAR TO COUNCIL MEMBER
MOSQUEDA WHETHER THE LANGUAGE
THAT WE HAVE HERE MIRRORS THE
HOUSE BILLS THAT WERE
INTRODUCED IN OLYMPIA.
AND DEPENDING ON THE ANSWER TO
THAT QUESTION, I'M WONDERING IF
-- IF KIND OF A TECHNICAL CLEAN-
UP MIGHT BE TO -- TO REFERENCE
THE NEXT CODE FOR THE INDUSTRY
THAT WE ARE INTENDING TO
EXEMPT.
THE POINT HERE IS NOT TO
EXEMPT, YOU KNOW, GAS STATIONS
OR CORNER STORES OR EVEN TARGET
THAT SELL LOTS OF THINGS
BESIDES GROCERIES.
BUT WE DO WANT TO ACKNOWLEDGE
THAT ARE FOOD STORES PROVIDING
CRITICAL SERVICE AND WE MATCH
THE INTENT WITH THE LANGUAGE
THAT WE ACTUALLY HAVE.
>> OKAY.
THANK YOU, COUNCIL MEMBER
MORALES.
WITH REGARDS TO THE EXEMPTION,
IT IS SIMILAR TO THE -- MY
PRIOR RESPONSE ABOUT THE
ASSIGNMENT OF PAYROLL
CALCULATIONS.
THE LANGUAGE IS SIMILAR.
I DON'T KNOW -- I DON'T RECALL
IF IT IS WORD FOR WORD THE
SAME.
I DO KNOW THAT -- I HAD
CONVERSATIONS WITH INDIVIDUALS
WHO WERE INVOLVED IN DRAFTING
THE STATE LEGISLATION.
AND THAT THE INTENT WAS TO HAVE
THE LANGUAGE BE SIMILAR AND BE
BASED ON A METRIC THAT IS
ESTABLISHED IN STATE LAW, WHICH
IS THE EXEMPTION FOR RETAIL
SALES OF FOOD.
TO USE THAT AS THE THRESHOLD.
THE NEXT CODE WAS NOT USED
GIVEN THAT IT IS MORE OF A
SUBJECTIVE EXERCISE IN
EMERGENCY ROOM AT THE OF
ASSIGNING THE CODES.
AND NOT VIEW IT AS PRECISE AND
AS AUDITABLE STANDARD.
THAT BEING SAID, YOU KNOW,
THERE ARE POSSIBILITIES FOR A
DIFFERENT THRESHOLD MARK THAT
COULD BE APPLIED THROUGH AN
AMENDMENT OR SOME OTHER
MEASURE.
OR AN EXTENDER COULD BE USED
WITH THE UNDERSTANDING THAT --
AT LEAST FROM THE
ADMINISTRATIVE PERSPECTIVE, IT
PERHAPS IS NOT AS CLEAR --
CLEARLY AUDITABLE AS WHAT IS
CURRENTLY IN THE BILL.
>> THANK YOU COUNCIL MEMBER
MORALES.
ANY OTHER COMMENTS FROM YOU?
OKAY.
APPRECIATE IT.
COUNCIL MEMBER SAWANT TO WRAP
US UP.
>> THANK YOU, COUNCIL MEMBER
MOSQUEDA.
VERY QUICKLY FIRST OF ALL AND I
HAD ANOTHER CLARIFICATION AS
WELL.
ON THE QUESTION THAT YOU ASKED
AND THE REQUEST HE FROM COUNCIL
MEMBER MORALES ABOUT THE
PAYROLL PORTION OF THE LANGUAGE
AND THE EXEMPTION FOR THE
GROCERY STORE IS IS THE SAME AS
HOUSE BILL 2907 OR 2948.
I SECOND EVERYTHING THAT TOM
WAS SAYING.
JUST FROM MY STANDPOINT AS ONE
OF THE SPONSORS OF THE BILL,
THE INTENT OF MY OFFICE HAS
BEEN FOR BOTH THINGS, PAYROLL
AND GROCERY, USE THE SAME
LANGUAGE AS THE HOUSE BILL.
AND FOR THE SAME FOR THE
GROCERY STORES.
AND THE TAX REVENUE AND THE TAX
RATE WERE CALCULATED ASSUMING
THAT GROCERY STORES WOULD NOT
BE TAXED.
WE HAVE SINCE THEN HEARD FROM
THE GROCERY ASSOCIATION WHO IS
CLAIMING INDEED THEY WOULD BE
TAXED FROM THE LEGISLATION.
THEY HAVE NOT SUBSTANTIATED
THEIR OWN CLAIM WHICH WE'RE
ASKING THEM TO.
AT THE SAME TIME, AS TOM SAID,
MY OFFICE HAS REACHED OUT TO
CENTRAL STAFF ALREADY TO SEE IF
WE CAN CLARIFY THE LANGUAGE ANY
FURTHER.
AND ON THAT NOTE, I WILL ALSO
MENTION THAT WE WILL ASK
CENTRAL STAFF TO DRAFT AN
EXEMPTION FOR HOME CARE
AGENCIES.
AND ON THE GROCERY STORES, JUST
ONE LAST POINT.
WE ALSO REACHED OUT TO THE
UNION REPRESENTING GROCERY
STORE WORKERS FOR THEIR
PERSPECTIVE ON WHAT IS NEEDED
IN ORDER TO CLARIFY THE
LANGUAGE.
AND ON THE REFERENDUM, I
REALIZE I DIDN'T FULLY EXPLAIN
MY POINT ABOUT WHY EMERGENCY
CLAUSE AND HOW THAT RELATES TO
OTHER THINGS THAT ARE BEING
SPECULATED IN THE MEDIA.
ONE OF THE MEDIA SPECULATIONS
HAS BEEN THAT THE LEGISLATION
WAS DRAFTED IN THIS WAY IN
ORDER TO WIDER FRAME T I WANT
TO CLARIFY THAT IS NOT TRUE.
IT IS TRULY AN EMERGENCY.
WHETHER ANYBODY AGREES WITH ME
OR NOT ON THE AMAZON TAX, I
THINK THEY WILL WILL BE BROAD
AGREEMENT THAT WE TRULY ARE IN
AN EMERGENCY.
AND MANY PEOPLE ARE FACING AN
EMERGENCY.
AND THE WHOLE POINT WAS TO
IMMEDIATELY PROVIDE CASH
ASSISTANCE.
AND THAT IS WHY THE EFFECTIVE
DATE BEING JUNE 2020.
BECAUSE WE FEEL LIKE EVEN A
MONTH DELAY WILL BE A BIG DEAL
FOR PEOPLE WHO ARE RIGHT NOW
WONDERING WHETHER THEY CAN EVEN
AFFORD FOOD FOR THEIR CHILDREN.
AND THAT'S NOT HIGH PER BOWL
HIGH HYPERBOLE.
THAT IS THE INDICATE.
I'M CONFIDENT THAT WE WOULD WIN
THAT ELECTION JUST LIKE WE DID
LAST YEAR WHEN AMAZON TRIED TO
BUY THE CITY COUNCIL ELECTIONS.
THERE IS A QUESTION OF DELAY
HERE AGAIN.
WE WOULD HAVE TO WAIT UNTIL
2021 BEFORE WE CAN SEND OUT
COVID RELIEF CHECKS WHICH WOULD
OBVIOUSLY I THINK EVERYBODY
WOULD AGREE IT WOULD JUST BE
WAY TOO LATE FOR MANY, MANY
PEOPLE AND THEIR LIVES WOULD
HAVE BEEN GRAVELY IMPACTED.
I WILL ALSO NOTE THAT, YOU
KNOW, IN THE GREAT DEPRESSION,
THE HELP FOR PEOPLE DIDN'T COME
UNTIL TWO OR THREE YEARS INTO
THE CRISIS.
AND THE WAVE OF EVICTIONS AND
FORECLOSURES AND DROP IN HOME
CONSTRUCTION HIT ITS PEAK
BEFORE THEN.
YOU CAN SEE FROM THE UNIVERSITY
OF WASHINGTON PROJECT, GREAT
DEPRESSION IN WASHINGTON STATE
PROJECT, THEY NOTE THAT
ACTUALLY THAT DELAY HAD A BIG
IMPACT ON PEOPLE.
HOPEFULLY WE'RE NOT GOING TO
ENGAGE IN THAT KIND OF DELAY.
I WANT TO EXPLAIN THE
MOTIVATION BEHIND THAT.
AND THEN ON THE -- ON THE
QUESTION OF -- THE QUESTION
THAT COUNCIL MEMBER LEWIS ASKED
ABOUT THE ADJUSTMENTS.
IN ADDITION TO THAT, WE'RE
UNABLE TO PREDICT WHAT KIND OF
POSITIVE IMPACT WILL BE
EXPERIENCED BY THE SAME BIG
BUSINESSES AS A RESULT OF THE
RECORD-BREAKING FEDERAL
STIMULUS THAT THEY HAVE.
AND LOCAL AND STATE LOCAL
FISCAL AID.
WE DON'T KNOW HOW THOSE
CONSIDERATIONS WILL IMPACT 2021
PAYROLLS EITHER FOR THOSE
BUSINESSES.
SO ALL OF THOSE UNCERTAINTIES
ARE WRAPPED AROUND THIS IN WHAT
TOM WAS REPORTING ABOUT.
YOU KNOW, THE TAX RATE.
THE TAX RATE ESTIMATE OF 1.3%
APPLIES AT 12% REDUCTION TO THE
PAYROLL BASE, WHICH IS IN A
CONSERVATIVE REDUCTION BECAUSE
THE TRUE EXTENT OF THE IMPACT
WILL NOT BE KNOWN.
ON THE QUESTION ON INTERFUND
LOANS, I THINK ALL OF THE
CLARIFICATION SHOULD BE ENGAGED
IN AND I REALLY APPRECIATE
THAT.
BUT JUST FOR THE BENEFIT OF THE
VIEWING PUBLIC, I WANT TO POINT
OUT THAT THERE'S BEEN A LOT OF
QUESTIONS FROM COUNCIL ON
INTERFUND LOANS.
I WANT TO REMIND THE PUBLIC,
THESE ARE ROUTINE FUNCTIONS.
AND ALSO ANY LOAN THAT LASTS
LONGER THAN 90 DAYS REQUIRES
COUNCIL APPROVAL.
BY THAT MEASURE FOR US ON THE
COUNCIL FOR MANY YEARS WE HAVE
VOTED ON INTERFUND LOANS AS A
COUNCIL.
I DON'T REMEMBER A SINGLE
INSTANCE OFFHAND WHERE IT WAS
CONTROVERSIAL.
THERE IS NOTHING UNUSUAL ABOUT
HAVING AN INTERFUND LOAN.
AND ALSO THERE HAVE BEEN
QUESTIONS ABOUT WHEN THE TAXES
ARE GOING TO BE PAID, WHEN THE
MONEY WILL BE SPENT.
I JUST WANTED TO ALSO POINT
OUT, AGAIN THAT AGAIN THIS IS
FOR THE VIEWING PUBLIC.
THIS IS USUAL.
WHEN YOU PAY YOUR FEDERAL
INCOME TAXES, YOU PAY IN APRIL
FOR THE PREVIOUS YEAR.
IN OTHER WORDS, THE CITY
COLLECTS THE TAXES IN FEBRUARY
OF EACH YEAR.
BUT THEN SPENDING THE REVENUES
IN THE PREVIOUS YEAR.
WE DO THIS FOR SALES TAXES,
GAS, AND SO ON.
SO ALL OF THE CITY'S REVENUES
ARE CONSOLIDATED IN A CASH
POOL.
EACH KNOWS HOW MUCH IT IS
ENTITLED TO.
YOU SPEND THE MONEY IN ONE
YEAR, KNOWING THAT YOU WILL
REPLENISH THE POOL THE
FOLLOWING YEAR.
I WANTED TO THANK DAN EDER FOR
THIS EXPLANATION THAT WE
RECEIVED OFF LINE.
WE WERE HEARING THAT QUESTION
QUITE A BIT FROM A LOT OF
SOURCES.
>>> I JUST WANTED TO ADD THAT
CLARIFICATION.
>> THANK YOU VERY MUCH.
COUNCIL COLLINS IT IS 1:02
P.M.
AND WE HAVE COVERED A LOT OF
GROUND, INCLUDING GOING THROUGH
ONE OF THE PRESENTATIONS TWICE
TO ENSURE THAT THE VIEWING
PUBLIC AND OUR COUNCIL
COLLEAGUES COULD HEAR IT.
HEARING NO ADDITIONAL
QUESTIONS, PLEASE SPEAK UP NOW
IF YOU HAVE THEM.
WE WILL ASSUME THAT IF YOU HAVE
ANY ADDITIONAL QUESTIONS THAT
THOSE GET SENT BY FRIDAY THIS
WEEK TO MY CHIEF OF STAFF AND
KIRSTEN AS WELL IN CENTRAL
STAFF.
THE DIRECTOR OF CENTRAL STAFF
SO THE QUESTIONS GOD RESPONDED
TO.
I WANT TO THANK IN ADVANCE
ALLIE AND TRACY WHO WERE WITH
US LAST WEEK AND FIELDED A
NUMBER OF QUESTIONS FOR US OFF
LINE.
THEY ARE PREPARED TO WALK
THROUGH THOSE QUESTIONS AS WELL
THE NEXT TIME THAT WE MEET.
APOLOGIES THAT WE DID NOT HEAR
FROM THEM TODAY.
I FEEL WE HAVE COVERED A LOT OF
GROUND.
I AM LOOKING FORWARD TO HAVING
FUTURE CONVERSATIONS WITH
ADDITIONAL STAKEHOLDERS WHO DID
NOT GET A CHANCE TO CHIME IN
TODAY.
THERE WERE A LOT OF PEOPLE WHO
WANTED TO COMMENT PUBLICLY AND
I WILL BE FOLLOWING UP TO GET A
CHANCE TO HEAR FROM PEOPLE IN
OUR NEXT PUBLIC HEARING -- I'M
SORRY, NEXT PUBLIC TESTIMONY A
LITTLE BIT LONGER.
AND I DO APPRECIATE ALL OF YOUR
TIME AND PARTICIPATION TO
STAKEHOLDERS ACROSS SEATTLE FOR
CONTINUING TO ENGAGE IN THIS
DISCUSSION.
COUNCIL COLLEAGUES, YOU'VE BEEN
GENERAL WUSS WITH YOUR TIME AS
WELL.
THREE-HOUR MEETING IS GREATLY
APPRECIATED.
A REMIND TORE SEND ANY
QUESTIONS THAT YOU HAVE TO THE
STAFF BY FRIDAY AT NOON.
WE HAVE REACHED THE END OF THE
AGENDA.
OUR NEXT MEETING IS SCHEDULED
FOR WEDNESDAY, MAY 13th AT
10:00 A.M.
IF THERE IS NO OTHER QUESTIONS
OR COMMENTS, TODAY'S MEETING
WILL BE ADJOURNED.
THANK YOU COUNCIL COLLEAGUES
FOR ALL OF YOUR TIME.
I HOPE YOU ENJOY SOME OF THE
SUNSHINE OUT THERE.
STAY HOME AND STAY SAFE.
THANK YOU ALL.
>> THANK YOU, CHAIR.