>
>> GOOD AFTERNOON. THANK YOU ALL
YOU ALL FOR COMING BACK TO THE D
MEETING OF THE SEATTLE CITY
COUNCIL SELECT BUDGE COMMITTEE.E
TIME IS 2:01 P.M. MADAM CLERK,
WILL YOU PLEASE -- EXCUSE ME,
MADAM CLERK, WILL YOU PLEASE LET
LET ME KNOW IF I'M OKAY TO
PROCEED WITH OUR DELIBERATIONS,
OR DO WE NEED TO CALL ROLE?
>> I THINK WE'LL CALL ROLE.
>> WONDERFUL. PLEASE GO AHEAD
AND CALL THE ROLE.
>> COUNCILMEMBER NELSON.
>> PRESENT.
>> COUNCILMEMBER PEDERSEN.
>> PRESENT.
>> COUNCILMEMBER STRAUSS.
>> PRESENT.
>> COUNCILMEMBER SAWANT.
>> PRESENT.
>> COUNCILMEMBER HERBOLD.
>> HERE.
>> COUNCILMEMBER JUAREZ.
>> HERE.
>> COUNCILMEMBER LEWIS.
>> PRESENT.
>> COUNCILMEMBER MORALES.
>> HERE.
>> CHAIR MOSQUEDA.
>> PRESENT.
>> NINE PRESENT.
>> EXCELLENT. WE ARE ALL HERE. K
YOU, COLLEAGUES, FOR REJOINING
US. I'M GOING TO TAKE THIS OFF E
WE DO HAVE ONLY THREE PEOPLE IN
CHAMBERS, AND APPRECIATE THE
CONTINUED PARTICIPATION
REMOTELY, SO WE CAN LIMIT
IN-PERSON EXPOSURE TO COVID. AND
TO COVID. AND I WILL KEEP MY
MASK ON WHEN I AM NOT SPEAKING,
BUT I WANTED TO LET FOLKS KNOW
HE HOW APPRECIATIVE I AM OF THE
ONGOING CONVERSATION THAT WE'RE
HAVING IN THIS HYBRID FORMAT. AD
AGAIN, IF YOU HAVE NOT ALREADY W
-- SEEN THIS IN THE BUDGET
MEMOS, ALL OF OUR PRESENTATIONS,
OUR PRESENTATIONS, INCLUDING THT
PRESENTATIONS TOMORROW AND THE
CENTRAL HAVE STAFF
PRESENTATIONS, EVERYONE WILL
CONTINUE TO BE AT A REMOTE TABL,
IF YOU WILL. WE ARE NOT GOING TO
TO HAVE ANYBODY SIT WITHIN
CHAMBERS AT THE TABLE HERE, AND
THIS WILL ALL BEA REMOTE
CONVERSATION, TUESDAY, WEDNESDA,
THURSDAY, FRIDAY, FOR ALL OF OUR
OUR GUESTS IN THE SELECT BUDGE
COMMITTEE MEETING. I WANT TO
THANK ALY PENNUCCI, ESTHER
HANDY, AND ESPECIALLY THANK TOML
FOR WALKING US THROUGH THE FIRST
FIRST 25 SLIDES. WE ARE GOING TO
TO PICK UP THE PRESENTATION ON
REVENUE STREAMS THAT ARE GENERAL
GENERAL FUND REVENUE ADJACENT. I
REVENUE ADJACENT. I HOPE I'M NOT
NOT TRIPPING OVER MY WORDS. WE'E
GOING TO PICK BACK UP ON SLIDE
NUMBER 26. JUST TO ORIENT US, WE
WE JUST WRAPPED UP WITH A
DISCUSSION ON THE FIRST SIX
SECTIONS, THE LAST SECTION WAS
FISCAL RESERVES. WE'VE ADD BRIEF
BRIEF CONVERSATION ON FISCAL
RESERVES. WE'RE GOING TO GET
INTO RELATED FUND POLICIES. IF
COLLEAGUES DID HAVE ANY QUESTIOS
ABOUT THE FISCAL RESERVE SLIDE,T
WAS SLIDE NUMBER 25, OF COURSE,
YOU'RE WELCOME AS WELL TO FOLLOW
FOLLOW UP ON THOSE. I'M NOT
SEEING ANY HANDS RAISED AT THIS
MOMENT, SO I'M GOING TO TURN IT
BECAUSE OVER TO TOM MIKESELL,
ALY PENNUCCI, AND ESTHER HANDY,
OUR DIRECTOR OF CENTRAL STAFF. I
STAFF. I SEE SOME OF OUR FRIENDS
FRIENDS FROM CENTRAL STAFF
INCLUDING LISH. THANK YOU AS
WELL. PLEASE GO AHEAD, CENTRAL
STAFF.
>> THANK YOU, CHAIR MOSQUEDA, CL
MEMBERS. I'M ALY PENNUCCI,
CENTRAL.
>> WE'RE STARTING ON SLIDE 26, E
20 OF THE MEMO. THE 2023 TO 2024
2024 PROPOSED BUDGET IS
BALANCED, ASSUMING THAT THE COUL
WILL ACCEPT CHANGES FOR THREE OF
OF THE DEDICATED REVENUES OR
FUNDS. THAT WAS -- THESE SOURCES
SOURCES OF REVENUE AND FUNDS
WERE ESTABLISHED TO SUPPORT INVS
IN SPECIFIC AREAS ACROSS
MULTIPLE DEPARTMENTS AND CITY
PROGRAMS. THIS INCLUDES REVENUES
REVENUES FROM THE SHORT-TERM
RENTAL TAX, TRANSPORTATION
NETWORK COMPANY TAX, AND JUMP
START PAYROLL EXPENSE TAX. WE AE
GOING TO SPEND THE REST OF THE
AFTERNOON WALKING THROUGH THE
PROPOSED CHANGES TO POLICIES THT
OUTLINE THE CURRENT AUTHORIZED
USE OF THESE FUNDS, WHAT IS
ASSUMED IN THE PROPOSED BUDGET,
AND THEN SOME OF THE OPTIONS
AVAILABLE FOR THE COUNCIL'S CON.
SO WE ARE GOING TO START FIRST H
THE SHORT-TERM RENTAL FUND. I'M
GOING TO TURN IT OVER TO MY COLE
LIRKS SH TO WALK YOU THROUGH
THOSE CHANGES.
>> THANK YOU. WELCOME TO THE
TABLE LISH. WE'RE ON PAGE 20.
>> THANK YOU. GOOD AFTERNOON. LH
WHIDSON, CENTRAL STAFF. THE
STATE SALES TAX ON LODGING IS
RECEIVED FROM SHORT-TERM RENTALS
SHORT-TERM RENTALS SUCH AS THOSE
THOSE THAT ARE -- SUCH AS
LODGING FROM AIRBNB. FOR
SEATTLE, THE TAX IS COLLECT BY
THE CENTER AND THEN PASSED ON TO
ON TO THE CITY. STATE LAW
REQUIRES THAT THE CITY'S FUNDS
BE USED FOR COMMUNITY
INITIATIVE, EQUITABLE DEVELOPMET
AND AFFORDABLE HOUSE PROGRAMS AE
CITY'S SOLE DISCRETION. THE COUL
ADOPTED ORDINANCE125872 IN 2019H
LAYS OUT THE PRIORITIES FOR THE
USE OF THE SHORT-TERM RENTAL TA.
THE FIRST $5 MILLION ARE TO BE D
FOR EQUITABLE DEVELOPMENT INITIE
PROJECTS, OR EDI. E DIRKS FUNDS
COMMUNITY INITIATED FUNDS WITH
AN EMPHASIS ON SERVING
COMMUNITIES TARGETED BY
INSTITUTIONAL RACISM. FUNDS ARE
AVAILABLE FOR DEVELOPMENT COSTSE
NEXT $2.2 MILLION RAISED THROUGH
RAISED THROUGH THE SHORT-TERM
RENTAL TAX ARE ALLOCATED TO DEBE
ON 30-YEAR BONDS THAT WERE
ISSUED IN 2017 TO RAISE $29 MILN
FOR AFFORDABLE HOUSING PROJECTSE
NEXT $3.3 MILLION, WHICH IS INDD
TO INFLATION, IS ALLOCATED
TOWARDS PERMANENT SUPPORTIVE
HOUSING OPERATIONS. IF
ADDITIONAL FUNDS ARE AVAILABLE,
APPROXIMATELY $1 MILLION CAN BE
USED FOR EDI OPERATIONS AND ANY
FUNDS ABOVE THAT FIRST $11.5
MILLION ARE TO BE USED FOR EDI
PROJECTS. WHEN DRAFTED, THE CITD
AT LEAST $10.5 MILLION A YEAR
WOULD BE RECEIVED THROUGH THE
SHORT-TERM RENTAL TAX. THE CITY
HAS NOT RECEIVED MORE THAN $10
MILLION A YEAR FROM THE SHORT-TM
RENTAL TAX AND HAS USED GENERAL
FUND TO BACKFILL FOR THE SHORT-M
RENTAL TAX DEFICIT. LET'S GO TOE
NEXT SLIDE, PLEASE. THE
EXECUTIVE HAS PROPOSED LEGISLATN
THAT WOULD RESTRUCTURE THE
PRIORITIES UNORDINANCE TO
ADDRESS THIS LOWR THAN
ANTICIPATED REVENUE. UNDER THE
PROPOSED LEGISLATION THE FIRST
$2.2 MILLION WOULD BE USED TO
PAY OFF HOUSING FUNDS. THE
SECOND $3.3 MILLION WOULD BE USD
FOR PERMANENT SUPPORTIVE HOUSIN.
ANY MONEY HE OVER THAT WOULD GOO
EDI GRANTS. FOLLOWING THESE
POLICIES THE 2022 BUDGET REDUCES
REDUCES SPENDING TO THE EDI BY Y
$700,000. IN 2023 AND 2024 THE
PROPOSED BUDGET WOULD ALLOCATE
$4 MILLION FROM THE SHORT-TERM
RENTAL TAX TO EDI FOR GRANTS.
SHORT-TERM RENTAL TAX IS NOT THY
FUNDING SOURCE FOR EDI. THE EDI
PROGRAM IS ALSO CALLED OUT IN
THE JUMP START FUND POLICIES ANL
RECEIVE APPROXIMATELY $20
MILLION A YEAR FOR GRANTS FROM P
START. NEXT SLIDE, PLEASE. EDI
IS ONE OF THE FEW CITY PROGRAMS
DIRECTLY FOCUSED ON SUPPORTING
COMMUNITIES IN EFFORTS TO
ADDRESS DISPLACEMENT AND
INCREASE OPPORTUNITY. COUNCILMES
HAVE SPREXED DESIRE TO MAINTAIN
THE COMMITMENT TO PROVIDING $5 N
A YEAR FROM THE SHORT-TERM
RENTAL TAX TO EDI PROJECT. YOU
HAVE A FEW OPTIONS IN RESPONSE
TO THE LEGISLATION PROPOSED BY
THE EXECUTIVE. THE FIRST IS TO
ACCEPT THE PROPOSED CHANGE TO
THE FUND AND PASS THE LEGISLATIN
AS PROPOSED. THE SECOND IS TO RT
$1 MILLION, OTHER EXPENDITURES
IN THE 2023-2024 BUDGET AND USEE
FUNDS TO MAINTAIN THE $5 MILLION
$5 MILLION COMMITMENT. AMEND THE
COMMITMENT. AMEND THE BILLY TO
REMOVE THE DEBT SERVICE PAYMENTS
PAYMENTS OR SUPPORTIVE HOUSING
AS PERMITTED USES OF THE
SHORT-TERM RENTAL TAX AND PASS
AS AMENDED. THIS WOULD REQUIRE
FINDING ANOTHER ONGOING SOURCE
OF FUNDING FOR THOSE USES. OR DO
DO NOT PASS. WITHOUT OTHER
CHANGES THIS WOULD REQUIRE
FINDING ANOTHER ONGOING SOURCE
OF FUNDING TO BACKFILL FOR THE M
RENTAL TAX. ANY QUESTIONS?
>> THANK YOU SO MUCH, LISH. I
JUST WANT TO PAUSE FOR A SECONDS
SOME THAT ARE ON COUNCIL RIGHT
NOW WHO MAYBE WOULD LIKE TO
COMMENT ON THIS. BUT I THINK IT
WOULD BE HELPFUL TO JUST
REORIENT US TO WHY THE EQUITABLE
THE EQUITABLE DEVELOPMENT
INITIATIVE EXISTS IN THE FIRST
PLACE. I ONLY HAVE A SMALL UNDEG
OF HOW IT CAME TO FRUITION, AND
I KNOW THAT COUNCILMEMBER
MORALES, THIS CYBILL WITHIN YOUR
YOUR COMMITTEE RIGHT NOW. I
THINK IT'S IMPORTANT FOR US TO D
OURSELVES WHY EDI IS PRIORITIZE,
GIVEN THAT IT WAS ESPECIALLY
AREAS THAT HAD SEEN HISTORIC
DISINVESTMENT AND HIGH RATES OF
DISPLACEMENT WERE NOT EVEN INCLD
IN EARLIER ITERATIONS OF THE
PLAN. DOES ANYBODY MIND WEIGHING
WEIGHING IN ON THAT? COUNCILMEMR
MORALES, WOULD YOU LIKE TO
ORIENT US AND WELCOME ANY HISTOL
INPUT FROM CENTRAL STAFF ON THEY
WE HAVE AN EDI.
>> SURE. SO THIS GOES BACK
SEVERAL YEARS. I BELIEVE IT WAS
2014-2015 WHEN COMMUNITY ORGANIS
THAT WERE -- YOU MAY HAVE HEARD
OF SOUTH COMPANY, COMMUNITIES OG
FOR RACIAL EQUITY, MOSTLY
IMMIGRANT AND PEOPLE OF COLOR-LD
ORGANIZATIONS REALIZED THAT THEY
THEY NEEDED SOME KIND OF TOOL,
MECHANISM FOR ACCESS CAPITAL FOG
SUPPORT, FOR CAPACITY BUILDING,
AND FOR ACTUALLY BUILDING,
DEVELOPING COMMUNITY-LED PROJEC,
AND HAD BEEN LEFT OUT OF THE
TYPICAL CITY PROCESSES BECAUSE
THEY AREN'T DEVELOPERS, PER SE.T
THEY DO HAVE COMMUNITY NEEDS,
FOR EXAMPLE, SENIOR HOUSING,
CHILDCARE FACILITIES, AND ACCESO
HEALTHCARE FACILITIES, ALL THE
THINGS THAT WE HAVE SINCE
FUNDED, BUT WE'RE REALLY LOOKING
LOOKING FOR STEADY STREAM, A
DEDICATED STREAM OF REVENUE, SO
THAT THESE COMMUNITIES THAT HAD
TYPICALLY BEEN LEFT OUT OF THESE
THESE PROCESSES WERE INCLUDED. S
IS NOT JUST ABOUT AFFORDABLE
HOUSING. IT'S NOT JUST ABOUT
SENIOR HOUSING. IT REALLY IS
ABOUT INTENTIONALLY BUILDING
SPACE FOR THE ESSENTIAL SERVICES
ESSENTIAL SERVICES THAT ANY HEAY
NEIGHBORHOOD NEEDS AND TO HAVE E
OPPORTUNITY TO DO IT IN A CULTUY
APPROPRIATE WAY FOR BLACK AND
BROWN NEIGHBORS WHO HAVE FINALLY
FINALLY BEEN ABLE TO PARTICIPATN
THOSE PROCESSES. I'M SURE I WILE
MUCH MORE TO SAY ABOUT THIS TOM,
BUT THAT IS JUST A LITTLE BIT OD
ON WHY THIS IS SO IMPORTANT.
>> THANK YOU, COUNCILMEMBER MOR.
I'LL CALL OWN IF YOU HAVE ADDITL
QUESTIONS OR COMMENTS. LIRKS SHI
MAY HAVE READ ABOUT THIS FOR THE
FOR THE FIRST TIME IN ONE OF
YOUR MEMOS, ESPECIALLY THE AREAS
THE AREAS WITH HIGH NUMBERS OF S
OF COLOR, HIGH RATES OF
DISPLACEMENT, NOT BEING CONTEMPD
IN EARLIER ITERATIONS OF THE
PLAN. DO YOU HAVE ANYTHING ELSE
FOR CONTEXT ON WHY EDI EXISTS?
>> YES. SO IN ADDITION TO
PROVIDING FUNDING TO DEVELOP
PROJECTS, EDI ALSO IS INTENDED
TO PROVIDE CAPACITY BUILDING FOR
FOR THESE ORGANIZATIONS SO THEY
CAN BUILD AND MANAGE THEIR
FACILITIES, SO THAT THEY CAN ACY
OWN AND RUN THEM AND BE
SUCCESSFUL. I'LL GIVE AWE COUPLE
AWE COUPLE OF EXAMPLES OF
PROJECT THAT ARE BEING FUNDED TH
THE EDI, OR HAVE BEEN FUNDED
RECENTLY. CHIEF SEATTLE CLUB'S
PROJECT UNPIONEER SQUARE. A LOT
OF AFFORDABLE HOUSING FUNDING
WENT TO THAT PROJECT, BUT IT
WOULDN'T BE SUCCESSFUL WITHOUT
THE EDI FUNDING THAT HELPED TO
CREATE THE COMMUNITY SPACES AND
SPACE FOR INDIGENOUS-RUN BUSINES
ON THE GROUND FLOOR OF THAT
BUILDING. THE BLACK AND TAN HALL
HALL IN COLUMBIA CITY IS
RENOVATING HISTORIC THEATER IN
THAT NEIGHBORHOOD. EAT OP UNION
VILLAGE IN RAINIER BEACH IS
USING EDI FUNDS AS PART OF A
AFFORDABLE HOUSING MIXED USE
PROJECT, AND THE EDI FUNDS, UNLE
AFFORDABLE HOUSING FUNDS, CAN BE
BE USED FOR THE COMMUNITY SPAWST
WILL BE PART OF THAT PROJECT.
AFRICA TOWN'S MIDTOWN CENTER AGN
PROVIDED FUNDING TO ALLOW AFRICN
TO ACQUIRE COMMERCIAL SPACE IN
THAT BUILDING FOR AFRICAN AMERIN
BUSINESSES AND COMMUNITY-BASED
ORGANIZATIONS THAT ARE LOCATED
IN THAT FACILITY. THE CENTER FOR
FOR CULTURAL INNOVATION IS
ANOTHER AFRICA TOWN PROJECT THAS
PROVIDING TRAINING FOR MEMBERS
OF THE COMMUNITY THAT -- AND
TECHNICAL EXPERTISE IN THE CENTL
DISTRICT. SO THOSE ARE SOME OF E
TYPES OF PROJECTS THAT ARE BEIND
THROUGH THE EDI, OFTEN BUT NOT
ALWAYS FUNDS ARE PAIRED WITH
AFFORDABLE HOUSE DOLLARS TO CREE
A HOLISTIC MIXED USE PROJECT.
>> COUNCILMEMBER MORALES DID YOE
ADDITIONAL COMMENTS OR QUESTION?
>> JUST TO REIT TEAR RAY LISH'S,
THE CATALYST WAS THAT WE DON'T
REALLY HAVE GREAT FUNDING SOURCS
FOR GROUND FLOOR CONSTRUCTION,
AND VERY OFTEN WHAT HAPPENS IS
THERE'S A LOT OF OFFICE HOUSING
MONEY FOR THE FLOORS ABOVE THATE
FOR HOUSING, BUT IT'S HARD TO
FIGURE OUT HOW TO FINISH A
PROJECT IF THERE AREN'T
RESOURCES AVAILABLE FOR THOSE
ESSENTIAL SERVICES THAT PEOPLE
ARE ALSO TRYING TO INCLUDE IN
THE PROJECT, LIKE CHILDCARE OR
HEALTH CLINICS. EDI IS A TAL FOR
FOR BEING ABLE TO COMPLETE THE
FINANCING FOR SOME OF THESE
PROJECTS THAT ARE REALLY ESSENTL
FOR ANCHORING COMMUNITIES THAT E
BEEN PUSHED OUT OF THE CITY FORG
A WAY FOR THEM TO STAY IN THE
CITY AND REALLY CONTRIBUTE TO
COMMUNITY COHESION AND KEEP
PEOPLE FROM GETTING PUSHED OUT.
>> THANK YOU VERY MUCH. I'LL
JUST SUMMARIZE SOME OF MY INITIL
THINKING HERE, AND THEN I'LL
TURN OVER TO COUNSEL MEMBER HER.
I, TOO, AM VERY CONCERNED ABOUTG
THE INITIAL INTENT OF THE
EQUITABLE DEVELOPMENT INITIATIV.
I'M GOING TO REMAIN CONCERNED AE
HAVE DISCUSSIONS THROUGHOUT THIS
THROUGHOUT THIS AFTERNOON ATTEND
ATTEND IN UPCOMING WEEKS ABOUT
ANY PROPOSAL THAT REPRIORITIZES
OUR REVENUE STREAM USING THE JUN
TO DE-PRIORITIZE INVESTMENTS
THAT WERE SUPPOSED TO BE
ADDITIVE. FOR EXAMPLE, JUMP
START IN THIS CASE IS BEING USED
USED AS AN EXAMPLE OF WHERE
THERE'S ADDITIONAL INVESTMENT IN
IN EQUITABLE DEVELOPMENT
INITIATIVE, AND THUS WHY THE SHM
RENTAL TAX COULD BE USED TO
DE-PRIORITIZE INVESTMENTS IN
EDI. THIS IS NOT THE INTENDED
USE OF JUMP START, AS WE
DISCUSSED THIS MORNING AND WE'LL
WE'LL DISCUSS LATER. JUMP START
IS NOT INTENDED TO SUPPLANT. I
THINK, AS HAS BEEN OUTLINED IN E
MEMO AND IN COMMENTS THIS AFTER,
THERE'S ADDITIONAL FUNDING
NEEDED FOR PROJECT TO HELP ROOT
COMMUNITY IN PLACE INVEST IN AN
TIE-DISPLACEMENT EFFORTS, HE ESY
IN HIGH DISPLACEMENT RISK WITH
AN EMPHASIS ON SERVING
COMMUNITIES THAT HAVE
SYSTEMATICALLY OR BY PROGRAM
BEEN DIVESTED, INCLUDING BECAUSE
INCLUDING BECAUSE OF
INSTITUTIONAL RACISM. WE NEED TO
TO CENTER OUR INVESTMENTS IN EDI
EDI TO TRY TO ADDRESS PAST
HISTORIC WRONGS AS WE TRY TO
CATCH UP. ALSO WANT TO LIFT UP
THE LANGUAGE FROM PAGE 21 OF THL
STAFF MEMO WHICH UNDERSCORES THE
THE NEED OUT THERE IN THE COMMUY
FOR EQUITABLE DWOMMENT INITIATIS
TO BE ADDITIVE AND TO BE
MAINTAINED INVESTMENT IN
EQUITABLE DEVELOPMENT INITIATIVE
IT SAYS IN 2022, 106 COMMUNITY-D
PROJECT REQUESTED FUNDING FOR A
TOTAL OF $107 MILLION OF FUNDS.T
ONLY $19.3 MILLION WAS AVAILABL,
AND JUST 23 PROJECT OR AT LEAST
PARTIALLY FUNDED. AND THE
EXECUTIVE'S DESCRIPTION OF THE
PROPOSED CHANGES ARE NOTED IN
THE MEMO. I THINK WHAT'S REALLY
IMPORTANT IS FOR US TO BE ABLE O
CONTINUE TO RISE TO MEET THE
NEED OF THE COMMUNITY WHO IS
STEPPING UP, IN MANY WAYS, TO BE
-- TO BECOME DEVELOPERS, IN SOME
SOME CASE, BECAUSE THEY ARE
DEVELOPING COMMUNITY RESOURCES
IN THE MOLD AND IN THE VISION OF
OF THE COMMUNITY THAT THEY'RE RD
IN. THEY HAVE STEPPED UP, AND SO
AND SO DO WE. WE NEED TO
CONTINUE TO STEP UP TO MAINTAIN
THESE SERVICES, AND GROW
INVESTMENTS IN EDI. OBVIOUSLY
I'M CONCERNED ABOUT THE PROPOSED
PROPOSED CHANGES HERE AND WANT O
SEE WHAT WE CAN DO TO CONTINUE
TO MAINTAIN PRIORITY FOR EDI. VR
HERBOLD, PLEASE GO AHEAD.
>> THANK YOU. I WAS TRYING TO
GET A CONTEXT FOR HAVING THE
DISCUSSION ABOUT THE POLICY ANDT
IS PROPOSED. AND I'M HAVING A
LITTLE BIT OF A HARD TIME WITHOT
KNOWING WHAT THE ANTICIPATED NUR
OF DOLLARS FROM THE REVENUE
SOURCE.
>> THE FINANCIAL PLAN ASSUMES $5
TO $10 MILLION OVER THE NEXT
THREE OR FOUR YEARS FROM THE
SHORT-TERM REVENUE TAX, THE SHOM
RENTAL TAX.
>> AND -- OKAY. BUT I THOUGHT I
READ THAT THERE'S AN ANTICIPATE,
LIKE WE'RE EXPECTING LESS.
>> WELL, WE ARE EXPECTING LESS N
HAS BEEN ALLOCATED UNDER THE
FUND POLICIES.
>> OKAY.
>> SO IF YOU GO BACK TWO SLIDESY
GO BACK TWO SLIDES, PATTY, SO WE
WE OWE THE $2.2 MILLION A YEAR
FOR THE HOUSING BONDS. WE HAVE
SUPPORTIVE HOUSING PROJECT THAT
ARE RELYING ON THAT $3.3 MILLION
MILLION TO CONTINUE OPERATING. T
IF WE'RE ONLY GETTING $9.5 MILL,
THEN WE ARE NOT COVERING THE
COST FOR THE EDI GRANTS PLUS
THESE OTHER TWO SOURCES -- USES
OF THE SHORT-TERM RENTAL TAX
FUNDS, WHICH MEANS THAT WE ARE G
THOSE FUNDS WITH GENERAL FUND
EVERY YEAR.
>> THANK YOU. APPRECIATE THAT.
>> DID YOU HAVE SOMETHING TO AD?
OKAY. THANK YOU FOR CLARIFYING
THAT, AND THANKS FOR THE
QUESTION, VICE-CHAIR. ALL RIGHTM
NOT SEEING ADDITIONAL HANDS AT
THIS POINT. SHALL WE CONTINUE?
>> THANK YOU, LISH. WE ARE GOINO
MOVE ON TO TALK ABOUT THE
PROPOSED CHANGES RELATE TO THE
CITY'S TNC TAX REVENUES. I WILL
JUST NOTE THAT MY COLLEAGUE LISA
LISA IS ON THE LINE. IF YOU HAVE
DETAILED QUESTIONS, YOU MAY TURN
TURN TO HER FOR AN ASSIST. CURRY
THE CITY COLLECTS A PER-RIDE
TAX FOR TNC RIDES AND HAS A
REGULATED FECAL CAN YOU LATE ON
A PER-RIDE BASIS. THE FEE COVERS
COVERS ADMINISTRATIVE ENFORCEMET
AND OTHER REGULATORY COSTS FOR
THE CITY. AND THE TAX WAS
IMPLEMENTED TO HELP -- FOR
INVESTMENT IN SPECIFIC AREAS
AROUND LABOR STANDARDS FOR TNT
WORKERS AS WELL AS INVESTMENT IN
AND HOUSING AND TO COVER THE
COST OF ADMINISTERING THE TAX. N
THE CITY FIRST ADOPTED THE TAX,
THEY ALSO -- YOU ALSO CREATED A
SPENDING PLAN THAT WAS ADOPTED
FOR RESOLUTION 31914 THAT
OUTLINED THE INTENDED USE OF THE
THE FUNDS, AND IT IS SOMEWHAT SD
ON THIS SLIDE, BUT IT GENERALLY
HITS THE HIGH NOTES. THERE WERE
SOME NUANCES TO THE RESOLUTION
THAT WOULD HAPPEN IN THE SEVENTH
IN THE SEVENTH YEAR, IN TERMS OE
SPLIT BETWEEN SPENDING ON TRANSN
AND HOUSING, BUT FOR THE PURPOSS
OF THIS DISCUSSION I DON'T THINK
THINK THOSE DETAILS ARE REALLY
CRITICAL. SO IN GENERAL, THE
SPENDING PLAN WOULD OUTLINE UP O
$2 MILLION CAN BE USED TO ADMINR
THE TAX AND REGULATIONS UP TO
$3.5 MILLION FOR DRIVER
RESOLUTION CENTER AND
ADMINISTERING DRIVER PROTECTION,
DRIVER PROTECTION, AND THEN
AFTER FUNDING THOSE FIRST TWO
ITEMS, UP TO 5% OF ANY REMAINING
ANY REMAINING TAX PROCEEDS WERE
INTENDED TO BE HAD USED FOR
INVESTMENTS IN AFFORDABLE
HOUSING, NEAR FREQUENT TRANSIT.S
WELL. AND THEN ANYTHING
REMAINING WOULD BE INVESTED UNT.
AND SO FOR PURPOSES OF THIS DIS,
I'M GOING TO PRIMARILY FOCUS ON
THE PROPOSED CHANGES TO THE SPEG
PLAN. WE COULD MOVE TO THE NEXT.
THE PROPOSED BUDGET WOULD INSTIE
SEVERAL CHANGES TO THE CITY'S
REGULATION OF TNC, INCLUDING
LOWERING THE TAX RATE ON A
PER-TRIP BASIS TO $0.42. THERE
WAS A STATE LAW CHANGE, AND THE
CITY IS NOT AUTHORIZED TO
COLLECT MORE THAN 42 CENTS PER
TRIP, SO THAT IS CONSISTENT. PRD
BUDGET ALSO BALANCES ASSUMING AN
AN INCREASE IN THE CITY'S TNC
FEE FROM $0.08 TO 0.18 PER RIDET
IS CONSISTENT WITH CURRENT POLIY
THAT DIRECT THE FAS DIRECTOR TO
ADJUST FEES AS NECESSARY TO
ENSURE THAT WE'RE ACHIEVING FULL
WE'RE ACHIEVING FULL COST
RECOVERY. AND THEN THE PROPOSED
BUDGET WOULD REVISE THE SPENDING
SPENDING PLAN FOR THE USE OF TNC
TNC TAX REVENUES, AND THERE WAS
A RESOLUTION TRANSMITTED WITH
THE BUDGET THAT WOULD REPEAL THE
THE EXISTING SPENDING PLAN THAT
ESTABLISHED COUNCIL'S ORIGINAL
INTENT AND WOULD BROADEN THE USF
TNC TAX REVENUES REALLY FOR ANY
GENERAL FUND INVESTMENT, PUTTING
PUTTING A PRIORITY FOR USING IT
TO ADMINISTER THE TAX AND TNC RS
AND THEN FOR TRANSPORTATION
PROJECTS. I WILL JUST NOTE,
UNLIKE THE OTHER TWO SOURCES OFE
THAT WE'RE DISCUSSING TODAY THAE
THEIR OWN DEDICATED FUND WITH
ADOPTED FUND POLICIES, TNC HAS
BEEN A REVENUE SOURCE THAT GOES
-- IS DEPOSITED INTO THE GENERAL
THE GENERAL FUND. THERE'S BEEN G
GUIDANCE, BUT THERE IS NOT A
FUND THAT IS SPECIFICALLY
RESTRICTING THE USE OF THE FUNDN
SPECIFIC THINGS. SO I WILL JUST
NOTE HE THAT THE RESOLUTION AS
TRANSMITTED DOESN'T PROHIBIT THE
THE USE OF FUNDS FOR AFFORDABLE
HOUSING. IT REMAINS A
PERMISSIBLE USE BUT NOT A
PRIORITIZED USE OF TNC TAX REVEE
WITHIN THE GENERAL FUND. AND
WITH THE STATE LAW CHANGE, THE
AMOUNT OF MONEY THAT THE TNC TAX
TNC TAX WILL GENERATE WILL MAKE
UP ABOUT -- LESS THAN 1% OF ALLL
FUND REVENUES. SO PROVIDING
GREATER FLEXIBILITY TO BACKFILL
DECREASES IN OTHER GENERAL FUNDR
TRANSPORTATION REVENUES DOESN'T
APPEAR TO HAVE A SIGNIFICANT
FISCALIMPACT, BUT THERE IS A
SHIFT IN POLICY HERE. WE COULD
MOVE TO THE NEXT SLIDE. SO REALY
THE OPTIONS BEFORE THE CITY TORE
TORE ACCEPT THE PROPOSED CHANGES
PROPOSED CHANGES TO THE TNC TAX
SPENDING PLAN TO BROADEN THOSE
USES AND ALLOW IT TO BE USED FOR
FOR GENERAL FUND ITEMS IN THE '3
AND '24 PROPOSED BUDGE AT THE
TIME FUNDS ARE USED TO SUPPORT N
INVESTMENTS AND TO HELP COVER
THE LOSS OF OTHER TRANSPORTATION
OTHER TRANSPORTATION REVENUES
LIKE THE COMMERCIAL PARKING TAXU
COULD AMEND THE RESOLUTION TO
REINCORPORATE OTHER SPENDING PR.
IF YOU ACTUALLY WANTED TO REPROM
THE MONEY IN THE '23 AND '24
BUDGET YOU WOULD NEED TO FIND
OTHER FUNDING SOURCES OR MAKE
REDUCTIONS, OR YOU COULD REJECT
IT ENTIRELY, AND SIMILAR THAL
WOULD REQUIRE FINDING OTHER FUNS
TO SUPPORT S-DOT'S PROPOSED
BUDGET.
>> OKAY. COLLEAGUES, QUESTIONS
ON THE TNC TAX SPENDING PROPOSAL
PROPOSAL FROM THE MAYOR THAT ACS
THE BUDGET? YES, PLEASE GO
AHEAD, COUNCILMEMBER HERBOLD.
>> THANKS. DO WE HAVE MEMBERS --
-- THE CHART WE HAVE ON THE REVE
SIDE I THINK STARTS IN 2020. DOE
HAVE NUMBERS -- I JUST DON'T
KNOW IF THAT'S THE RIGHT BASELI,
GIVEN COVID AND EVERYTHING.
>> I DON'T HAVE THOSE NUMBERS BT
I CAN LOOK FOR THEM AND FIND TH,
IF THEY EXIST.
>> I APPRECIATE THAT. THANK YOU.
YOU.
>> VICE-CHAIR, I'M NOT SURE IF S
IS A SIMILAR QUESTION OR RELATE,
BUT ON PAGE 23 OF THE MEMO, I
NOTED MIDWAY THROUGH THAT IT SAS
THAT THERE IS -- THAT THIS
PROPOSED CHANGE IS PARTIALLY IN
RESPONSE TO THE ANTICIPATED
REVENUE REDUCTION COMING FROM
THE STATEMENT, OBVIOUSLY WE
CAN'T DO ANYTHING ABOUT THE
PREEMPTION THAT'S BEEN IMPOSED,T
IT SAYS ALSO DUE TO INCREASED
PROGRAM COSTS. WHAT INCREASED
PROGRAM COSTS ARE WE REFERRING O
AS IT RELATES TO THE APPLICATIOF
THE TNC POLICY?
>> I THINK WE WOULD HAVE TO LOOO
THAT IN MORE DETAIL, BUT GENERAY
SPEAKING I THINK THAT IT IS NOT
UNCOMMON WHEN IMPLEMENTING NEW
REGULATIONS AND IMPLEMENTING
TAXES THAT THE INITIAL ESTIMATES
ESTIMATES OF WHAT IT WILL COST O
ADMINISTER THOSE FUNDS IS AN UN.
YOU ARE SEEING IN THAT THE JUMPT
PROPOSAL THIS YEAR. AND SO I
THINK SOME OF IT IS GETTING MORE
MORE DETAIL THAN WHAT THEIR
COSTS ARE TO SUPPORT THE PROGRA.
LISA, DID YOU HAVE ANYTHING TO ?
>> I DON'T, BUT THANK YOU.
>> I WOULD ALSO JUST NOTE THAT E
TABLE 13 ON PAGE 23 OF THE MEMO
SHOWS THAT THE EXPECTATION IS
THAT RIDERSHIP WILL REBOUND MOR,
BY 2024 IT WILL GO FROM $8 --
8.4 MILLION RIDES IN 2021, TO 14
MILLIONS UN2024 IS WHAT THE
CURRENT PROJECTIONS ARE. THEY
ARE PROJECTING THAT RIDERSHIP
WILL REBOUND A LITTLE BIT, AND
WE'LL GET YOU THOSE NUMBERS ON
PREVIOUS ESTIMATES PRIOR TO 202.
AND THE PROPOSED CHANGES TO THEC
TAX, THIS IS IN PERPETUITY, IS
THAT CORRECT? OR IS THIS FOR TWO
TWO YEARS ONLY?
>> THIS IS ONGOING.
>> THIS IS ONGOING. IS THAT THE?
OKAY. QUESTION I HAD ABOUT OFFIE
OF LABOR STANDARDS, OBVIOUSLY
THEY ARE NOT GOING TO BE
MANAGING THE DISPUTE RESOLUTION
CENTER PER THE PREEMPTION THAT
ADVOCATES HAD INCLUDED IN THE
STATE LEGISLATION, BUT WHAT DOES
DOES OLS MAINTAIN IN TERMS OF
FUNDING OR SUPPORTIVE SERVICES
TO HELP DO EDUCATION AND
OUTREACH ABOUT EXISTING LAWS,
AND IS THERE NUG THAT OLS IS NOW
NOW NOT RECEIVING FUNDING FOR TT
THEY OSTENSIBLY WILL CONTINUE TO
AS IT RELATES TO MAKING SURE
PEOPLE ARE AWARE OF THEIR RIGHT?
>> NOT TO MY KNOWLEDGE. TO MY K,
THIS FUNDING REALLY WAS -- THE
MONEY THAT THEY'RE LOSING WAS
BECAUSE OF THE DISPUTE RESOLUTIN
CENTER. SO I THINK THEY WILL
CONTINUE TO DO ANY RELATED
FUNCTIONS THAT THEY WERE ALREADY
ALREADY DOING.
>> OKAY. AND IN THE CHART WE SEN
OVER 30% REDUCTION TO OFFICE OF
LABOR STANDARDS. IS THAT SOLELY
DUE TO THIS CHANGE IN POLICY
THAT PRE-EMPTS US FROM HAVING
THE DISPUTE RESOLUTION CENTER,
OR IS OLS ALSO EXPERIENCING
ADDITIONAL CUTS?
>> CHAIR MOSQUEDA, I THINK THATL
OF DETAIL ON OLS' PROPOSED BUDGT
ISN'T SOMETHING WE'RE PREPARED
TO ADDRESS TODAY, BUT THE OLS
PAPER WILL BE AVAILABLE -- IT
MIGHT BE AVAILABLE ALREADY. I
DON'T ACTUALLY KNOW. IT WILL BE
PUBLISHED TO THE AGENDA FOR
TOMORROW'S MEETING SOMETIME
TODAY.
>> OKAY, GREAT. I THINK I FAILED
FAILED TO REMEMBER THAT OLS IS
GOING TO BE COVERED SPECIFICALL.
IS IT UNDER MISCELLANEOUS?
>> YEAH, EVERY DEPARTMENT HAS AR
PREPARED, EVEN IF THEY'RE NOT
HAVING A FORMAL PRESENTATION.
>> THANKS SO MUCH. IT'S BEEN A
LONG YEAR SINCE LAST YEAR WHEN
WE DID THIS. OKAY, THAT'S GREATL
LOOK FOR THAT AS IN THAT PAPER.Y
ADDITIONAL QUESTIONS ON THE TNC
PROPOSED CHANGES TO THE SPENDING
THE SPENDING OR THE TAX ITSELF?
OKAY. I DO WANT TO RAISE, BUT I
THINK THERE'S A PARALLEL HERE
BETWEEN THE VARIOUS REVENUE
SOURCES THAT CAME TOGETHER
BECAUSE OF BROAD COMMUNITY
SUPPORT, LARGE COALITIONS, THAT
IS TRUE OF JUMP START, THAT IS
TRUE HERE OF THE TNC TAX. THERE
WAS A BROAD COALITION OF ADVOCA,
TRANSPORTATION, FOLKS WHAT ARE
ARE CONCERNED ABOUT AFFORDABLE
HOUSING AND LABOR AND PEOPLE
REPRESENTING AND WORKING WITHIN
THE TNC INDUSTRY. SO I AM
CONCERNED THAT THIS PROPOSED
SPENDING PLAN CHANGE IN PERPETUY
DOES NOT ALIGN WITH THE TRANSIT
ORIENTED AFFORDABLE HOUSING,
TRANSPORTATION AND TRANSIT INVET
INCLUDING THE STREETCAR, AND I
AM VERY INTERESTED IN CONTINUINO
HEAR FROM THE FOLKS WHO ORIGINAY
WORKED ON THE PLAN, THEIR THOUGS
ABOUT THE RECONFIGURED PRIORITIS
IN TNC'S PROPOSED USE. I
UNDERSTAND THE EXECUTIVE CAN SED
DOWN A PROPOSED BUDGET THAT DOES
THAT DOES NOT CONFORM WITH
EXISTING AND SETTLED LAW. I ALSO
ALSO THINK THAT IT IS NOT JUST T
CHANGING THAT LAW, THAT'S WHAT
THEY'RE PROPOSING, BUT WE NEED
TO MAKE SURE WE'RE KEEPING COMMS
TO COMMUNITIES THAT HAD FOUGHT
FOR THESE IN THE FIRST PLACE. I
THINK THAT APPLIES TO ALL OF THE
OF THE REVENUE STREAMS WE'RE TAG
ABOUT. WE ALL RECOGNIZE WE'RE IN
IN A TOUGH SITUATION RIGHT NOW.I
WANT TO UNDERSCORE THIS IS NOT A
NOT A VALUE STATEMENT FOR THOSEO
ARE TRYING TO SEND AS YOU PROPOD
BUDGET, BUT WE HAVE TO BALANCE
THE SHORT-TERM REQUIREMENTS FOR
A BALANCED BUDGET IN THE BIANIUM
BIANIUM WITH THE LONGER TESTIFY
INVESTMENT IN TRUST AND NEED THT
THE COMMUNITY HAS IDENTIFIED AND
AND THE PROCESS THEY WENT
THROUGH TO SET UP THESE SPEND
PLANS. JUST GENERALLY CONCERN
ABOUT NOT EITHER ADHERE AING TO
STATUTE OR ALSO TO THE
COALITIONS THAT HAD BUILT THE
TRUST TO COME YOU UP WITH THE
SPEND PLANS TO BEGIN WITH AND
LOOK FORWARD TO FUTURE CONVERSAS
WITH THOSE WHO HELPED DEVELOP
THESE PIECES OF LEGISLATION IN E
FUTURE. I DID ALSO WANT TO JUST
DO A QUICK CHECK ON THE MATH ASD
WITH THE TNC TAX AND -- NOT THE
MATH. I DON'T QUESTION YOUR MAT.
I WANT TO CHECK MY MATH REGARDIG
THE TNC TAX AND THE SHORT-TERM
RENTAL TAX. I THINK IT WAS NOTED
NOTED THAT BOTH OF THESE CHANGES
CHANGES WOULD GO TO THE FULL
COST FOR ADMINISTRATION. SO THE
BACK OF THE ENVELOPE IS ABOUT --
-- I'M LOOKING AT PAGE 11 HERE,
THE BACK OF THE ENVELOPE IS
ABOUT 1.4 MILLION, PLUS ABOUT .7
MILLION, SO 2.3 MILLION IS GOING
IS GOING DIRECTLY BACK IN TO SYS
PROGRAMMING COSTS. IS THAT
CORRECT? MIDWAY THROUGH ON PAGE
10, CODE FOR THE TNC AND SHORT-M
RENTAL TAX INCREASES. SO ALL OF
THE INCREASED DOLLARS ARE
DIRECTLY GOING TO THE DEDICATED
SPENDING OUTLINED. THERE'S NOING
NOING GOING BACK INTO THE
GENERAL FUND FOR USE FOR REAPPER
PROP YAGS. IS THAT CORRECT?
>> I THINK THE ANSWER IS YES TOT
QUESTION. FOR THE TNC TAX FEE
THAT IS COLLECTED IN ORDER TO
PAY FOR THE COST OF
ADMINISTERING IT, GENERALLY FEES
FEES ARE AVAILABLE TO SUPPORT
THE COST OF IMPLEMENTING THE
PROGRAM AND ARE NOT REVENUE GENG
OPTION. SO IT'S TO MAKE THE
PROGRAM COST NEUTRAL BUT ISN'T A
ISN'T A SOURCE OF REVENUE. BUT E
TO CONFIRM THAT ON THIS
PARTICULAR FEE. BUT, FOR EXAMPL,
THE SHORT-TERM RENTAL FEE AND
THE TNC FEE IS CALCULATED BASED
ON JUST COVERING THE COST OF
REGULATING VERSUS A TAX, WHICH
IS OFTEN A GENERAL FUND SOURCE F
REVENUE OR A DEDICATED -- FOR
SPECIFIC USES. SO I'M NOT SURE
I'M ANSWERING YOUR QUESTIONS,
BUT TYPICALLY FEES CAN ONLY BE
USED TO COVER THE COST OF
ADMINISTERING AND IMPLEMENTING
THE PROGRAM.
>> THANK YOU. ANY ADDITIONAL
QUESTIONS? ALL RIGHT. LET'S
CONTINUE ON.
>> WE WILL NOW MOVE INTO A DISCN
OF THE JUMP START PAYROLL
EXPENSE TAX FUND. IF YOU CAN
GIVE ME A FEW LIBERTIES HERE I'M
I'M JUST GOING TO PROVIDE A LITE
BACKGROUND ON HOW WE GOT TO
TODAY BEFORE DIVING INTO THIS
TABLE. IN JULY OF 2020, THE
COUNCIL AUTHORIZED THE NEW
PAYROLL EXPENSE TAX FOR THE
CITY. THAT WOULD BEGIN IN 2021.D
AT THAT TIME THE PAYROLL TAX IS
ESTIMATED TO GENERATE $214 MILLN
ANNUALLY WITH INCRUISES IN
FUTURE YEARS. AT THE SAME TIME
THE COUNCIL PASSED THE TAX, THEY
THEY ALSO CODIFIED A HIGH-LEVEL
SPENDING PLAN FOR THESE NEW TAX
REVENUES BY ORDINANCE AND
PROVIDED ADDITIONAL DETAILS VIAN
31957. THIS WAS ALSO ON JULY 20,
2020. AFTER THE FIRST YEAR OF
THE TAX BEING IN PLACE TO
PROVIDE FOR MORE ACCOUNTABILITY
AND TRANSPARENT USE OF THE NEW
TAX, IN ACCORDANCE WITH THE
ORIGINAL SPENDING PLAN, LAST
JULY THE CITY COUNCIL PASSED
ORDINANCE 126393. THIS CREATED
THE JUMP START FUND AND CODIFIED
CODIFIED IN THE SMC THE SPENDING
SMC THE SPENDING PLAN. SO THIS
TABLE ON THE SCREEN RIGHT NOW IS
IS HOW THE JUMP START FUND WOULD
WOULD BE ALLOCATED IF THE EXISTG
POLICIES WERE IMPLEMENTED, BASED
BASED ON THE CURRENT BUDGET SITN
WE'RE IN. SO AS SHOWN ON THIS
TABLE THE EXISTING POLICIES
WOULD NOT HAVE ALLOWED FOR ANY
CREWS OF JUMP START TO SUPPORT
GENERAL FUND EXPENDITURES IN THE
THE 2023 AND '24 PROPOSED
BUDGET. SO THE FIRST COLUMN
LISTS THE SPENDING CATEGORIES
AND THEN HOW THOSE -- HOW THE
PROCEEDS WERE TO BE ALLOCATED TO
TO EACH OF THE EXISTING
CATEGORIES. THE SECOND COLUMN
SHOWS WHAT WOULD HAVE BEEN THE
ALLOCATION IF THE EXISTING
POLICIES WERE IMPLEMENTED, AND
THEN THE COLUMN TO THE RIGHT OUS
WHAT IS ACTUALLY IN THE PROPOSED
THE PROPOSED BUDGET FOR EACH OF
THE PROPOSED CATEGORIES. SO AS
TOM WALKED YOU THROUGH THIS
MORNING, THE CITY CONTINUES TO
FACE A PROJECTED LONG-TERM OPERG
DEFICIT IN THE GENERAL FUND. THY
ARE INCREASING COSTS TO MAYBE
TAKEN CITY SERVICES AND INCREASG
ECONOMIC UNCERTAINTY AS WELL AS
THE CITY NEEDING TO RESPOND TO
THE GROWING POPULATION AND
INCREASING NEEDS IN THE
COMMUNITY. AND SO WITHOUT A
TRANSFER FROM THE JUMP START
FUND, AS DIRECTOR HANDY POINTED
TO THIS MORNING, THE PROPOSED
GENERAL FUND BUDGET WOULD NOT BE
BE BALANCED, OR WOULD HAVE BEEN
PROPOSED WITH MORE REDUCTIONS IN
IN EXISTING SERVICES AND PROGRA.
WE CAN MOVE ON TO THE NEXT SLID.
THIS IS SLIDE 35. I'M OP ABOUT
PAGE 26 OF THE MEMO. SO THE
PROPOSED BUDGET AS TRANSMITTED
ASSUMES PASSAGE OF A COUNCIL
BILL THAT WOULD AMEND THE
SEATTLE MUNICIPAL CODE, AND IT
ALSO ASSUMES ADOPTION OF A RESON
THAT WOULD AMEND THE JUMP START
FUND POLICIES THAT TOGETHER IN L
WAYS WERE USED TO BALANCE THE
GENERAL FUND. THIS INCLUDES
PROPOSAL TO MODIFY THE CURRENT
LAW ABOUT HOW THE CALCULATION IE
WHEN A TRANSFER FROM THE JUMP
START FUND TO THE GENERAL FUND
IS AUTHORIZED. ADOPTING BY
SEPARATE RESOLUTION NON CODIFIED
CODIFIED FINANCIAL POLICIES THAT
POLICIES THAT WOULD PROVIDE
ADDITIONAL GUIDANCE BEYOND
WHAT'S IN THE SMC TO CREATE A RE
FOR THE FUND AND TO ALL SOME
DEBT POLICIES. IT WOULD AMEND
THE JUMP START POLICIES THAT ARN
THE SEATTLE MUNICIPAL CODE TO
REMOVE THE RESTRICTION THAT
PROHIBITS JUMP START FUNDS TO
SUPPLANT APPROPRIATIONS FROM
OTHER FUNDING SOURCES. AS
TRANSMITTED, IT WOULD ALSO MODIY
THE REQUIREMENT IN THE EXISTING
JUMP START FUND POLICIES UNDER
THE AFFORDABLE HOUSING CATEGORY
THAT REQUIRES THAT THOSE FUNDS
ARE USED TO DEVELOP AND ACQUIRE
AFFORDABLE HOUSING THAT
PRIORITIZE SEVERALLING
HOUSEHOLDS WITH INCOMES AT OR
BELOW 30% OF AREA MEDIAN INCOME,
INCOME, AND THEY WOULD INCREASE
THAT TO 60% OF AREA MEDIAN
INCOME. HOWEVER, UPON FURTHER
DISCUSSION WITH THE EXECUTIVE,
WE UNDERSTAND THAT THAT REQUEST
FOR POLICY CHANGE IS NOT
NECESSARY ONCE WE GOT INTO THE
DETAILS OF WHAT THE EXISTING
POLICIES ACTUALLY SAY, AND,
THEREFORE THIS WILL NOT BE
DISCUSSED FURTHER IN THIS
PRESENTATION. JUST WANTED TO
FLAG THAT. IT CAME UP DURING
DIRECTOR DINGILY'S PRESENTATION
ON SEPTEMBER 28TH. AND THEN IT
WOULD ALSO -- THE PROPOSED
BUDGET EXPANDS THE SPENDING
FRAMEWORK TO ALLOW SOME SPENDING
SOME SPENDING FROM THE JUMP
START FUND THAT MAY NOT ALIGN
WITH THE ORIGINAL POLICY INTENTO
WE ARE GOING TO WALK THROUGH EAH
OF THOSE FOUR ITEMS IN A LITTLE
BIT MORE DETAIL. IF WE CAN MOVE
ON TO THE NEXT SLIDE. THIS IS
ONE PIECE OF INFORMATION THAT
WASN'T INCLUDED IN THE MEMO, BUI
WANTED TO RETURN TO A
CONVERSATION THAT WE HAD IN AUGT
WITH THE FINANCE AND HOUSING
COMMITTEE. KNOWING THAT THE CITY
CITY WAS CONTINUING TO FACE A
DEFICIT IN THE GENERAL FUND,
THROUGH DISCUSSIONS WITH THE
BUDGET CHAIR, OTHER MEMBERS OF
THE FINANCE AND HOUSING
COMMITTEE, AS WELL AS THE CITY
BUDGET OFFICE IN AUGUST WE ON
CENTRAL STAFF PREPARED A POLICY
OPTION FOR THE FINANCE AND
HOUSING COMMITTEE'S
CONSIDERATION ON AN APPROACH
THAT WOULD ALLOW SOME SUPPORT
FOR THE GENERAL FUND FROM THE
JUMP START FUND IN '23 AND '24.E
APPROACH DISCUSSED IS DISPLAYED
ON THE SCREEN, AND WHAT THE
GENERAL INTEND WAS IS THAT IT
WOULD MAINTAIN THE SPENDING
COMMITMENTS IN THE JUMP START
SPENDING PLAN FOR 2023 AND '24
THAT WERE ASSUMED WHEN THE COUNL
FIRST AUTHORIZED THE JUMP START
TAX IN 2020. SO THAT IS TO SAY,
WHAT WAS CONTEMPLATED AT THE
COMMITTEE DURING THAT DISCUSSIOS
THAT IF WE LOOK AT WHAT WE WEREG
THE REVENUES WOULD BE UN'23, ATE
TIME OF ADON, AND THEN LOOK AT T
THE CURRENT FORECAST IS, THE
DIFFERENCE BETWEEN THOSE NUMBERS
NUMBERS WOULD BE THE MAXIMUM
AMOUNT THAT THE COUNCIL WOULD
AUTHORIZE TRANSFERRING FROM THE
JUMP START FUND TO THE GENERAL D
TO BALANCE. SO THE TABLE ON THE
SCREEN SHOWS, FOR EXAMPLE, IN
2023, IN 2020 WE ESTIMATED THATT
$223 MILLION OF REVENUE WOULD B-
WOULD COME TO THE CITY FROM THE
PAYROLL TAX. CURRENT REVENUE
ESTIMATES ARE $294 MILLION SO
THAT WOULD HAVE -- IF THE POLICY
THE POLICY HAD BEEN CHANGED
EXACTLY IN THIS WAY, 71 MILLION
COULD HAVE BEEN TRANSFERRED IN
'23 AND A $84 MILLION IN 2024. O
IF WE COULD MOVE TO THE NEXT SL,
WITH THE ACTUAL USE OF JUMP
START FUNDS IN THE PROPOSED DOET
DEVIATE SIGNIFICANTLY IN TERMS
OF THE AMOUNT TRANSFERRED TO THE
THE GENERAL FUND, AS DISCUSSED N
AUGUST THE PROPOSED CHANGE TO
THE POLICY WOULD AUTHORIZE THE
LARGER TRANSFER THAN WHAT IS
PROPOSED IN THE BUDGET. SO THIS
TABLE ILLUSTRATES THE MAXIMUM
TRANSFER AMOUNT THAT WOULD BE
ALLOWED BASED ON THE PROPOSED
POLICY CHANGE WHICH, AS NOTED AY
THIS WITH ALLOW A HIGHER AMOUNT
OF FUNDS TO BE TRANSFERRED. THIS
BE TRANSFERRED. THIS APPROACH
WILL ALLOW GREATER FLEXIBILITY
TO USE THE JUMP START FUND FOR
GENERAL FUND ACTIVITIES IN THE
FUTURE IF OTHER STRATEGIES ARE
NOT ENACTED TO ADDRESS THE
STRUCTURAL BUDGET DEFICIT. BUT
-- AND IT ALSO WOULD ALLOW, FOR
EXAMPLE, IF THE PROJECTED REVENS
GET WORSE, LOOKING INTO 2024,
THAT THE '24 PROPOSED BUDGET
COULD INCLUDE A TRANSFER OF UP
TO $176 MILLION, AND WE COULDN'T
WE COULDN'T SAY IT WASN'T
COMPLIANT WITH THE POLICIES, IF
THE COUNCIL ACCEPTED THIS
PROPOSAL. SO IF IMPLEMENTED AS
THE POLICY WOULD HAVE ALLOWED
THIS WOULD HAVE ALLOWED AN
ADDITIONAL $20 MILLION TO BE
TRANSFERRED FROM THE JUMP STARTD
TO THE GENERAL FUND IN 2023, ANR
$82 MILLION MORE UN2024, AND WOD
IN THE '25 AND '26. SO AGAIN,
THIS WOULD MEAN ABSENT A NEW
FUNDING SOURCE OR REDUCTION
UNGENERAL FUND SPENDING, OR A
REBOUND OF EXISTING GENERAL FUN,
THE JUMP START TRANSFER WOULD BD
TO PERMANENTLY SOLVE THE STABILY
ISSUES IN THE GENERAL FUND.
>> I'M HAVING A HARD TIME TRACKG
HERE. MY APOLOGIES. THIS SLIDE
IS WHAT IS IN THE MAYOR'S
PROPOSED BUDGET, NOT WHAT WE
DISCUSSED IN AUGUST. IS THAT
CORRECT?
>> YEAH. THANK YOU FOR THAT
CLARIFYING QUESTION, COUNCILMEMR
HERBOLD. THE PREVIOUS SLIDE
SHOWS WHAT WAS DISCUSSED IN
AUGUST, WHICH WOULD HAVE ALLOWED
ALLOWED THE 71 MILLION IN 2023 D
84 MILLION IN 2024.
>> GOT IT.
>> THE PROPOSED BUDGET ONLY INCS
A TRANSFER OF ABOUT 85 MILLION N
EACH YEAR, BUT THE CHANGE IN
POLICY THAT WOULD BE ENACTED IF
YOU ACCEPTED THE LEGISLATION AS
TRANSMITTED WOULD CHANGE THE
FORMULA AS CALCULATED ON THIS
TABLE. SO IT WOULD BE BASICALLY
TAKING WHAT IS A STATIC FLOOR CY
IN THE CODE, SO RIGHT NOW THE PY
SAYS THAT IF GENERAL FUND REVENS
COME IN BELOW $1.5 BILLION, THE
DIFFERENCE BETWEEN THAT
PROJECTION AND $1.5 BILLION IS
THE AMOUNT THAT CAN BE TRANSFERD
TO THE GENERAL FUND. CURRENTLY
GENERAL FUND REVENUES ARE
PROJECTED TO COME IN ABOVE THATO
THE PROPOSAL IS TO ADJUST THAT
FLOOR ANNUALLY FOR INFLATION. SO
FOR INFLATION. SO YOU START BY
MULTIPLYING THE $1.5 BILLION BY
7.6, WHICH IS THE CURRENT
INFLATIONARY ADJUSTMENT THAT THE
THAT THE CITY IS USING, AND THAT
THAT WOULD MEAN A MAXIMUM
TRANSFER OF 105.6 MILLION.
>> THANK YOU.
>> PLEASE GO AHEAD.
>> GREAT. MOVE ON TO THE NEXT
SLIDE. OH, AND I HAD CREATED A
SLIDE, BUT I GOT AHEAD OF
MYSELF. THE POINT WAS TO
HIGHLIGHT REALLY THE DIFFERENCE
BETWEEN WHAT WAS CONTEMPLATED IT
AND WHAT IS ACTUALLY IN THE PROD
BUDGET VERSUS THE MAXIMUM AMOUNE
POLICY WITH ALLOW. THIS
HIGHLIGHTS THE MOST CRITICAL
PIECES, WHAT WOULD BE THE
MAXIMUM TRANSFER AMOUNT AND IF
THE MAXIMUM AMOUNT WAS TRANSFERD
TO THE GENERAL FUND, WHAT WOULD
REMAIN FOR THE JUMP START
SPENDING CATEGORY. NEXT SLIDE. O
THE QUESTION REALLY BEFORE THE
COUNCIL IS WHETHER TO ACCEPT,
REJECT, OR MODIFY THIS PROPOSED
CHANGE TO THE POLICY. GIVEN THE
HIGHER LEVELS OF UNCERTAINTY
EXPRESSED BY CBO AND THE
FORECAST OFFICE AT THE AUGUST
FORECAST UPDATE, AND THAT THE
'23 TO '24 PROPOSED BUDGE IT INS
THE DEFICIT, IT IS LIKELY THAT
WE'RE GOING TO CONTINUE TO
RETURN THIS TO THE CONVERSATION,
AS CHAIR MOSQUEDA NOTED THIS
MORNING, THERE IS WORK TO ESTABH
-- OR THE WORK IS UNDERWAY TO
GET THE REVENUE STABILIZATION
GROUP GOING WITH RECOMMENDATIONS
WITH RECOMMENDATIONS POTENTIALLG
EARLY TO MID NEXT YEAR ON POTENL
NEW SOURCES OF PROGRESSIVE
REVENUE. BUT IF THIS PERMANENT
POLICY CHANGE PROPOSED BY THE
EXECUTIVE IS NOT ACCEPTED AND IS
IS MODIFIED TO ONLY BE A
TEMPORARY MEASURE, IT IS
POSSIBLE IF THOSE THINGS ARE NOT
NOT COMPLETED UNTIME THAT WE WIL
BE RETURNING TO IT AGAIN IN 2025
IN 2025 OR NEXT YEAR IF ECONOMIS
WORSEN. AND THE CHALLENGE IS, OF
IS, OF COURSE, IF YOU REJECTED E
PROPOSAL ENTIRELY, THERE WOULD
NEED TO BE AN $84 MILLION OF
OFFSETTING CUTS IDENTIFIED IN
THE BUDGET. SO THERE ARE SOME
CHOICES AVAILABLE TO THE
COUNCIL. ACE NOTED, REJECTING TE
PROPOSED POST. YOU COULD MODIFY
THE PROPOSED FORMULA. COULD
INCLUDE PUTTING IN EXACTLY WHAT
WAS CONTEMPLATED IN THE AUGUST
MEETING. I WILL JUST NOTE THAT
THE PROPOSED BUDGET TRANSFERS 8N
OF JUMP START FUNDS, BUT THEY
ARE ONLY PROPOSING TO USE 71
MILLION OF THE '23 REVENUES CONT
WITH THAT DISCUSSION, AND THEN
USE $14 MILLION OF 2022 REVENUES
2022 REVENUES THAT ARE PROJECTED
ARE PROJECTED TO COME IN OVER
WHAT WAS BUDGETED IN THE ADOPTED
ADOPTED BUDGET. COULD ALSO ADD
ADDITIONAL CRITERIA ABOUT
EXACTLY WHEN THE JUMP START FUND
FUND CAN BE USED AND HOW IT GETS
GETS PAID BACK. THIS COULD
INCLUDE IMPOSING THE SUNSET DAT,
ONLY ALLOW THIS TO BE AUTHORIZED
AUTHORIZED IN '23 AND '24. PROVG
MORE SPECIFICITY ABOUT THE USE
OF THE FUNDS. REQUIRING THAT IF
GENERAL FUND REVENUES COME IN
ABOVE PROJECTIONS THAT THE JUMP
START FUND GETS PAID BACK. SO
THAT IS EARLY NEXT YEAR WHEN WE
HAVE THE BOOKS CLOSED FOR 2022,
IF GENERAL FUND REVENUES CAME IN
IN ABOVE 2022 PROJECTIONS, WE
WOULD PAY THE JUMP START FUNDS
BACK, OR SOME COMBINATION OF ALF
THOSE OPTIONS.
>> OKAY. THANK YOU, DEPUTY DIRER
THANK YOU, DEPUTY DIRECTOR
PENNUCCI. FOR FOLKS ON SEATTLE
CHANNEL, IF YOU NEED TO LOWER
THAT SHADE, FEEL FREE TO. WE
HAVE ABOUT AN HOUR 10 MINUTES L,
IF NEEDED, FOR THE REMAINDER OFE
PRESENTATION, SO I DO WANT TO
TAKE A FEW SECONDS TO PAUSE HERE
HERE AND CHAT ABOUT JUMP START
PROGRESSIVE PAYROLL TAX. NO
SURPRISE TO ANYBODY. BUT THERE
IS A SIGN-ON LETTER THAT I
REFERENCED IN AUGUST IN CONJUNCN
WITH THE DISCUSSION THAT THE FIE
AND HOUSING COMMITTEE HAD WITH
THE MEMBERS OF THE PUBLIC
BROADLY BUT ALSO WITH A SIGNAL
TOWARD OUR FUTURE PARTICIPATION
UNWANTING TO SOLVE THIS REVENUE
SITUATION IN PARTNERSHIP WITH
THE MAYOR'S OFFICE. IN AUGUST,
WE OUTLINED THE PROPOSAL THAT
DEPUTY DIRECTOR PENNUCCI
OUTLINED WHICH WAS ONLY IF YOU
ADHERE TO EVERY SINGLE DOLLAR
AND EVERY SINGLE PERCENT THAT WE
WE ORIGINALLY ENVISIONED IN THE
CODIFIED SPEND PLAN FOR JUMP ST,
ONLY IF THAT WERE MAINTAINED ANE
SPENDING CATEGORIES ADHERED TO
WHAT WAS DIVISIONED AND AS
DESIGNED AND COD FIEND SPEND
PLAN THEN WOULD THERE BE
POTENTIAL INTEREST FROM A BROAD
COALITION TO USE THE HIGHER THAN
THAN ANTICIPATED REVENUE TO
PREVENT CUTS AND PREVENT AUSTER.
THE TWO QUESTIONS WE NEED TO ASS
ARE, IS THE HIGHER THAN
ANTICIPATED REVENUE GOING INTO
SOLELY PREVENTING CUTS AND PREVG
AUSTERITY, AND AS WE OUTLINED IN
IN THE SEPTEMBER 28TH MEETING, I
I THINK ARGUABLY HAVING A HUMAN
SERVICE PROVIDER WAGE INFLATIONY
ADJUSTMENT CUT FROM 7.6%, WHICH
IS WHERE IT WAS SUPPOSED TO BE
AT, TO A NEW AMOUNT OF JUST 4%,
WHICH IS LESS THAN I WILL NOTE
EVEN THE INFLATIONARY ADJUSTMENT
ADJUSTMENT FOR JUMP START IS
BAKED IN FOR THE MAYOR'S
PROPOSED BUDGET. THAT IS A CUT.A
CUT TO THOSE HUMAN SERVICE PROVS
BUDGE E. A REDUCTION UNWHAT
THEIR TAKE-HOME PAY. AND IT IS .
THESE FOLKS ARE ANTICIPATING IN,
IN LESS THAN TWO-AND-A-HALF MONS
FROM NOW THAT THEY WOULD BE ABLE
ABLE TO HAVE A CERTAIN WAGE THAT
THAT THEY COULD RELY ON. AND SO
THAT IS A CUT. WE HAVE A LOT OFK
TO DO WITH ALL OF YOU IN CENTRAL
CENTRAL STAFF TO FURTHER ANALYZE
ANALYZE WHAT THE HIGHER THAN
ANTICIPATED REVENUE IS GOING
INTO. SOME DISSECT SHUN OF
FUNDING IS GOING TO THE GENERAL
FUND, THEN THE GENERAL FUND
RELIES ON IT FOR NEW INVESTMENTT
IS ALSO NOT CONTEMPLATED IN OUR
EARLY CONVERSATIONS ABOUT PREVET
IS AUSTERITY, INVESTMENTS IN NEW
NEW PROGRAMMING IS NOT WHAT ONE
WOULD ANTICIPATE IN THESE TOUGH
BUDGET TIMES. WE HAVE TO WEIGH T
AS A COUNCIL IN TERMS OF WHERE
THE PRIORITIES LAG. AND LASTLY E
AMOUNT CONTEMPLATED. I WANT TO
MAKE SURE THAT I FULLY UNDERSTAD
AND GET A CHANCE TO DIG INTO THT
THAT'S BEING PROPOSED FOR 20 23,
20 23, WHAT WE TALKED ABOUT IN
AUGUST WAS JUST USING THE HIGHER
HIGHER THAN ANTICIPATED AMOUNT.1
MILLION IN THE YEAR 2023, NOT 95
NOT 95 MILLION, NOT 85 MILLION.,
THE PROPOSED CHANGES TO THE
INFLATION ADJUSTMENT TO BRING
MORE FUNDING FROM JUMP START TO
BACKFILL THE GENERAL FUND IS NOT
NOT SOMETHING THAT I EXPRESSED
INTEREST IN, THAT THE COALITION
EXPRESSED SUPPORT FORKS AND I
THINK MAKING THESE CHANGES IN
PERPETUITY IS VERY PROBLEMATIC
TO THE SUSTAINABILITY TO JUMP
START, AND AS YOU'VE HEARD
CENTRAL STAFF DESCRIBE, IS
CONCERNING FOR SUSTAINABILITY
FOR THE BUDGET OVERALL TO RELY
MORE AND MORE ON JUMP START. IT
CREATES GREATER INSTABILITY FORR
OVERALL BUDGET, AND I WANT TO
MAKE SURE WE'RE NOT CREATING
CLIFFS OR EBBS AND FLOWS
UNPROGRAMMING THAT ARE INTENDED
TO SERVE OUR MOST VULNERABLE AND
AND THAT NEEDS TO BE RELIED ON,
LIKE IN HOUSING, TO MAKE SURE WE
WE CAN CONTINUE TO CREATE
INVESTMENT IN CAPITAL INFRASTRU.
SO I BRING UP THE COALITION ANDE
SIGN-ON LETTER THAT HAS BEEN CIG
BECAUSE THERE WAS REALLY TWO
THINGS. STICK TO THE SPEND PLAN
AND MAKE SURE THAT ALL DOLLARS
ARE GOING INTO THE SPEND PLAN A,
AND THEN USE ANY HIGHER HE THAND
REVENUE TO GO INTO PREVENTING
CUTS. THOSE TWO QUESTIONS ARE
WHAT WE WILL CONTINUE TO DIVE I,
BUT AT FIRST BLUSH IT IS CONCERG
TO SEE THAT THERE MIGHT BE SOMET
WITH WHERE THE INVESTMENTS ARE
GOING WITHIN THE CATEGORIES
WITHIN JUMP START AND ALSO HOW
FUNDING IS BEING USED IN THE
GENERAL FUND TO FUND EITHER NEW
PROGRAMS OR PROGRAMS THAT MIGHT
NOT ALIGN WITH WHAT'S ALREADY
CODIFIED FROM THE COUNCIL IN
PREVIOUS ACTIONS. I WANT TO BE Y
CLEAR THE COALITION SAYS IN
THEIR LETTER, LET US BE CLEAR,
ONLY IF THE FULL PROMISE AND
FUNDING OF THE COMMITMENT TO
JUMP START AS INTENDED -- AS
CODIFIED ARE ADHERED TO THEN
WOULD THEY CONSIDER USING OR
BEING SUPPORTIVE OF THE ADDITIOL
FUNDING GOING INTO BEING USED TT
AUSTERITY. WE ALL WANT TO
PREVENT AUSTERITY. WE ALL WANT
TO PREVENT CUTS. THAT IS THE
CHARGE, TO MAKE SURE WE CAN HAVE
HAVE AFTER BUDGET THAT INVESTS
IN OUR MOST VULNERABLE, INVEST
IN FRONT LINE WORKE INVEST IN
THE HEALTH AND SAFETY OF OUR
COMMUNITY WHILE MAKING SURE WE
ARE CREATING MORE HOUSE AND
PROVIDING SERVICES TO THOSE WHO
ARE UNSTABLELY HOUSED RIGHT NOWI
LOOK FORWARD TO HEARING FROM OTS
ABOUT ANY QUESTIONS OR COMMENTS
THEY HAVE. BUT AGAIN, THE
REVENUE STABILIZATION WORK GROUP
GROUP IS JUST BEGINNING TO FORM
THIS MONTH. THANKS AGAIN TO
DEPUTY MAYOR HAROLD AND HER WORK
WORK TO CONVENE THAT GROUP BASED
BASED ON THE CITY COUNCIL'S
STATEMENT OF LEGISLATIVE INTENT
LAST YEAR THAT CREATED THE NEW
REVENUES TASK FORCE, BUT THAT
EFFORT IS JUST UNDERWAY, AND ON
PAGE 29 OF THE CENTRAL STAFF MEO
IT NOTES THAT GIVEN THE WORK TO
IDENTIFY RESOURCES -- OR SOURCES
OR SOURCES OF PROGRESSIVE
REVENUE AND THE WORK THAT CBO IS
IS UNDERTAKING TO IDENTIFY
EFFICIENCIES IN BETTER BUDGET OT
THAT WE DESCRIBED EARLIER IS
JUST BEGINNING. THE DECISION MAY
MAY NOT BE RIGHT TO MAKE THIS
POLICY CHANGE IN JUMP START PER.
SO THAT'S WHAT I'M GOING TO CONE
TO LOOK INTO. ADDITIONAL COMMENS
OR QUESTIONS. OKAY. ALY, I THINU
CAN CONTINUE.
>> THANK YOU. I'M MOVING
>> THANK YOU. I'M MOVING TO PAGE
PAGE 30 OF THE MEMO. IN ADDITION
ADDITION TO TRANSMITTING LEGISLN
THAT WITH AMEND THE JUMP START
FUND POLICIES IN TERMS OF THAT
CALCULATION WE JUST DISCUSSED ON
ON THE GENERAL FUND TRANSFER THE
ALSO TRANSMITTED A RESOLUTION
THAT WOULD PROVIDE ADDITIONAL GE
ON THE USE AND MANAGEMENT OF THE
THE JUMP START FUND. THIS INCLUS
REFERENCING EXISTING POLICIES
CODIFIED IN THE SEATTLE MUNICIPL
CODE THAT WERE INCLUDED IN THE
ORIGINAL SPENDING PLAN ORDINANCE
ORDINANCE IN 2020 AS WELL AS NEW
NEW FINANCIAL POLICIES THAT
WOULD CREATE A FUND BALANCE
RESERVE OF NO LESS THAN 10% OF E
PAYROLL EXPENSE TAX REVENUE, AND
AND IT WOULD ADD SOME SPECIFIC T
POLICIES THAT EXPLICITLY ALLOW
USE OF PAYROLL TAX FOR THE
PROJECTS FUNDED WITH BONDS THAT
ARE CONSISTENT WITH THE SPENDING
SPENDING PLAN. FOR EXAMPLE, FOR
USE WITH, IF YOU WERE USING DEBG
FOR AFFORDABLE HOUSING INVESTME,
OR SOMETHING LIKE THAT. SO
CENTRAL STAFF IDENTIFIED TWO ISS
FOR THE COMMITTEE'S CONSIDERATI.
THE FIRST IS RELATED TO THE FUNE
RESERVE. ADOPTING POLICIES
AROUND CREATING A RESERVE IN A
FUND IS NOT UNCOMMON, AND GIVENS
IN THE ECONOMY, THE NEWNESS OF
THIS REVENUE SOURCE, IT IS
PROBABLY ADVISABLE TO HAVE SOME
RESERVE. THE APPROPRIATE LEVEL
IS SOMEWHAT OF A JUDGMENT CALL.O
10% MAY OR MAY NOT BE THE APPROE
AMOUNT. AS COMPARISON, THE
CITY'S REVENUE STABILIZATION
FUND FOR THE GENERAL FUND IS
CAPPED BASED ON A CALCULATION
THAT DOES IT NOT EXCEED 5% OF
GENERAL FUND TAX REVENUE. IT
DOESN'T EVEN APPLY TO ALL THE RS
DEPOSITED INTO THE GENERAL FUND,
AGAIN, I WOULD JUST NOTE THAT
THE FORECAST OFFICE HAS SIGNALED
SIGNALED SIGNIFICANT UNCERTAINTY
SIGNIFICANT UNCERTAINTY ABOUT TE
SPECIFIC REVENUE SOURCE. AND SO
HAVING A FUND BALANCE WOULD HELH
OUT FLUCTUATIONS. IF, FOR
EXAMPLE, IN APRIL THE FORECAST
UPDATE SUGGEST THAT WE WERE
GOING TO COLLECT LESS THAN WHAT
WAS ASSUMED IN THE ADOPTED BUDGT
FOR THE PAYROLL TAX, IT WOULD
ALLOW THE EXPENDITURES INCLUDED
IN THE ADOPTED BUDGET TO
PROCEED, ASSUMING THAT THE REVEE
ESTIMATE DIDN'T DROP SO SIGNIFIY
THAT IT WAS BEYOND 10% OF THE
OVERALL REVENUES. SO THE COUNCIL
COUNCIL COULD CONSIDER A LOWER
RESERVE AMOUNT OR HIGHER RESERVE
HIGHER RESERVE AMOUNT, FOR THAT
MATTER, OR JUST ADOPT AS TRANSM.
THE SECOND IS BROADER, AND IT WD
APPLY TO THIS. THAT COULD BE A
POLICY IN THE CODE OR IT COULD
BE A POLICY ADOPTED BY SEPARATE.
IT IS CURRENT PRACTICE IN MANY S
TO HAVE ADOPTED FINANCIAL POLICS
BY RESOLUTION, LIKE VIA NONCODID
RESOLUTION FOR SOME OF OUR
FUNDS. WHILE IT IS CONSISTENT
WITH PAST PRACTICE IT CAN
SOMETIMES BE DIFFICULT FOR STAFF
STAFF AND THE PUBLIC TO TRACK
WHAT POLICIES APPLY TO ANY ONE
GIVEN REVENUE SOURCE, IF SOME
ARE INCLUDED IN THE CODE AND
OTHERS ARE ADOPTED BY
RESOLUTION. ONE OPTION AVAILABLE
AVAILABLE IF THE COUNCIL ACCEPTS
ACCEPTS THESE PROPOSED POLICIES
TO INCORPORATE INTO SMC RATHER
THAN BY ADOPTING THEM BY SEPARAE
RESOLUTION.
>> MADAM CHAIR.
>> GO AHEAD, COUNCIL PRESIDENT.
>> I JUST HAVE A QUICK FOLLOW-UY
QUESTION HERE. I'M TRYING TO
TRACK WITH THE PRINTOUT OF THE
POWERPOINT, THE MEME MORE, AND
THEN THE ATTACHMENTS. SO
ATTACHMENT F, 11 PAGES ARE DEDID
TO JUMP START AND KIND OF
PUTTING TOGETHER WHAT ESTHER AND
ESTHER AND ALY HAVE PUT TOGETHEN
THESE POWER POINTS. I HAD A FEWR
MORE TECHNICAL ONES, BUT I CAN
ASK THOSE OFF-LINE. ON HERE IT
SAYS ON RESOLUTION TO ADOPT TO
THE JUMP START FUND, WHEN DID WS
FUND, WHEN DID WE PASS
SMC538-055, AND HAVE WE MODIFIED
MODIFIED OR DONE ANYTHING WITH
IT SINCE? AND WHAT THE TITLE OF
IT?
>> LET'S SEE. YOU PASSED THE
LEGISLATION CREATING THE JUMP
START FUND IN JULY OF 2021.
>> RIGHT. I THOUGHT IT WAS 2020.
2020.
>> 2020 WAS WHEN THE COUNCIL PAD
-- IMPLEMENTED THE TAX, AND YOU
ADOPTED A SPENDING PLAN.
>> RIGHT.
>> BUT IT WASN'T A CODIFIED -- U
DIDN'T -- IT WASN'T A CODIFIED
PLAN OR FUND. IN 2020 YOU
ADOPTED BY RESOLUTION A DETAILED
DETAILED SPENDING PLAN BUT THE S
WERE JUST GETTING DEPOSITED INTO
INTO THE GENERAL FUND. SO IN
2021 ALL IF PAYROLL TAX REVENUES
IF PAYROLL TAX REVENUES WERE
JUST ONE OF THE SOURCES OF FUNDS
FUNDS FOR THE GENERAL FUND. HOW,
THE BUDGET PROPOSALS COMING
THROUGH WERE NOT CONSISTENT WITH
NOT CONSISTENT WITH THE SPENDIN.
AND SO AT THAT TIME THE COUNCILD
THE SPENDING PLAN, CREATED A
FUND TO MAKE IT EASIER TO TRACK
THE JUMP START FUND AND PROVIDE
OVERSIGHT ON COMPLIANCE WITH
THAT INTENT. I DON'T RECALL THE
TITLE OF THE BILL, BUT I CAN SA,
IN THE CODE, THERE IS A SECTION5
IS WHERE YOU FIND THE CURRENT LW
THAT GUIDES THE USE OF JUMP
START FUND POLICIES AND THE
CALCULATION FOR WHEN OR IF JUMP
START FUNDS CAN BE TRANSFERRED
TO THE GENERAL FUND.
>> OKAY. I THOUGHT THAT WE HAD D
THE TWO ORDINANCES IN JULY OF
2020.
>> YOU DID. DID YOU PASS TWO
ORDINANCES. YOU PASSED A ORDINAE
TO IMPLEMENT THE TAX.
>> THEN THE SPENDING PLAN.
>> YOU PASSED AN ORDINANCE THATD
A HIGH-LEVEL SPENDING PLAN, BUT
IT WASN'T IN THE CODIFIED
SECTION OF THE SMC.
>> OKAY.
>> AND THEN YOU ADOPTED A RESOLN
THAT PROVIDES -- PRIOR TO THE
DETAILED SPENDING PLAN.
>> RIGHT.
>> BUT THAT WAS REALLY LIKE -- T
WAS NOT CODIFIED. IT WASN'T AS
BINDING. IN 2021 THE COUNCIL
PASSED LEGISLATION TO CREATE THE
THE JUMP START FUND. SO IT ALL
STARTED IN THE BEGINNING OF
2022, ALL PAYROLL JUMP START
REVENUES ARE DEPOSITED INTO THEP
START FUND. AND THEY ARE TO BE D
IN THE WAY DESCRIBED IN
SMC5.38.055. THE ONE CHANGE THAT
THAT YOU MADE AT THAT TIME, IN
2020 THE COUNCIL HAD AUTHORIZED
QLOOS OF THE JUMP START FUND TO
PROVIDE CONTINUITY OF SERVICE
AND COVID RELIEF. SO IT WAS TO
AVOID GENERAL FUND CUTS AND TO
SUPPORT COVID RELIEF EFFORTS. BT
AFTER THAT THE FUNDS WERE ALL TE
USED ENTIRELY WITH THE JUMP STAT
FUND. IN 202 1, KNOWING THAT WEE
STILL IN THE MIDST OF A PANDEMID
THAT THE GENERAL FUND CONTINUED
TO SHOW REVENUES COMING IN BELOW
BELOW PREPANDEMIC ESTIMATES,
WHEN CREATING THE FUND YOU ALL
CREATED A NEW POLICY THAT ALLOWD
SOME AMOUNT OF FUNDS TO BE
TRANSFERRED TO THE GENERAL FUNDR
THIS YEAR -- EXCUSE ME, FOR THE
2022 ADOPTED BUDGET, $85 MILLION
$85 MILLION COULD BE TRANSFERREM
THE JUMP START FUND TO THE GENEL
FUND.
>> SO I GETS' FAIR TO SAY FROM E
BEGINNING OF THIS, WHEN WE PASSD
THE FIRST TWO ORDINANCES IN
2020, AND THEN CODIFIED IT IN 2,
AND THEN LOOKING AT YOUR ATTACHT
F, WHERE YOU KIND OF ALLOCATE
WHERE THE MONEY GOES, LIKE THE
DEPARTMENT OF NEIGHBORHOODS,
OED, OFFICE OF HOUSING, THAT HAS
THAT HAS OBVIOUSLY CHANGED,
OBVIOUSLY, CORRECT?
>> SORRY. SAY THAT AGAIN.
>> FROM ITS ORIGINAL INTENT, IN,
TO CODIFYING IT IN 2021, WHERE
THE FUNDS WOULD GO, OBVIOUSLY
THAT HAS CHANGED OR HAS ADAPTED
TO WHATEVER THE ECONOMIC
LANDSCAPE IS, LIKE NOW.
>> YEAH. THE PIECE THAT HAS CHAD
IS ALLOWING SOME ONGOING USE OFP
START FUND FOR THE GENERAL FUND.
GENERAL FUND.
>> OKAY. SO I GUESS MY POINT IST
IT HAS CHANGED. IT'S NOT SET IN
AMBER SO WE KNOW THAT, TURNED
LEADERSHIP OF COUNCILMEMBER
MOSQUEDA AND ESTHER, YOU GUYS,
MEETING THOSE NEEDS, AND THE
EXECUTIVE. SO IF WE WERE TO LOOK
LOOK AT REJECTING THE PROPOSED N
AND INCORPORATING THE POLICIES
INTO A BILL TO AMEND SEATTLE
MUNICIPAL CODE, THAT WOULD BE TE
FIRST TIME IT WOULD BE DONE, IF
WE WERE TO LOOK AT OPTION A-8 -.
>> SORRY, I THINK I HAVE CREATEE
CONFUSION. RIGHT NOW THE
POLICIES ARE ALREADY IN THE
CODE. WHAT WAS TRANSMITTED WITH
THE BUDGET IS TWO PIECES OF LEG.
ONE BILL THAT WOULD AMEND THE C,
THE CURRENT POLICIES IN THE SMC
TO ALLOW ONGOING TRANSFER OF
JUMP START TO THE GENERAL FUND
AND SOME OTHER CHANGES, AND THEN
THEN WOULD ALSO SEPARATELY ADOPT
ADOPT OTHER FINANCIAL POLICIES
THAT WOULD HELP GUIDE THE USE OF
USE OF JUMP START FUNDS, BUT IT
WOULD BE ADOPTED BY NONBINDING
RESOLUTION. AND SO REALLY WHAT
I'M GETTING AT WITH ISSUE A IT'S
IT'S KIND OF CONFUSING TO HAVE
SOME POLICIES IN THE CODE AND
SOME POLICIES ADOPTED BY
RESOLUTION THAT AREN'T IN THE
CODE. AND SO THIS IS REALLY JUST
REALLY JUST DO YOU WANT TO JUST
HAVE EVERY -- ALL THE POLICY
GUIDING THE USE OF JUMP START
FUNDS IN ONE PLACE OR NOT. THATS
WHAT ISSUE 8 IS ABOUT. IT'S NOT
ABOUT HOW YOU USE THE FUNDS OR
NOT. IT'S JUST ABOUT WHERE DO WD
THE POLICIES.
>> RIGHT. AND PART OF THE -- AG,
I DON'T WANT TO GET INTO -- I KW
THE CHAIRWOMAN HAS SAID -- I'M T
TRYING TO DEBATE THE ISSUE. I'M
JUST TRYING TO MAKE SURE THAT WE
WE ERR ON THE SIDE WHERE WE HAVE
WE HAVE THE FLEXIBILITY FOR THIY
FORMED GROUP AND THE MAYOR'S
OFFICE AS WE MOVE FORWARD,
BECAUSE I DON'T KNOW IF WE'RE AS
GOING TO BE -- I DON'T KNOW IF
WE'RE ALWAYS GOING TO HAVE THE
MONEY HE THAT WE'RE GOING TO
HAVE FROM THE JUMP START TAX. TS
ALL. IF WE HAVE ROOM TO BE
FLEXIBLE AND NIMBLE AND ACCOUNT,
BECAUSE WE MAY MEET SOME OF THES
IN OUR ORIGINAL INTENT AND MAY
WANT TO USE THE JUMP START FUNDS
START FUNDS IF WE -- IF EVERYON,
FOR SOME OTHER STUFF. THAT'S ALM
GETTING AT. THAT'S ALL I'M TRYIG
TO SAY HERE. THANK YOU.
>> THANK YOU, COUNCIL PRESIDENTI
THINK I WILL SPEAK TO SOME OF TE
ISSUES THAT YOU RAISED, MAYBE
FROM A SLIGHTLY DIFFERENT ANGLEO
GET THERE. I THINK ONE OF THE WS
TO MAKE SURE THAT WE ARE FLEXIBE
IN CREATING SPACE FOR THE NEW RE
STABILIZATION TASK FORCE IS BY
MAKING SURE THAT WHATEVER WE'RE
TALKING ABOUT HERE IN TERMS OF
FLEXIBILITY FOR THE BUDGE SET CD
TO THIS BIENNIUM THAT WE DON'T
HAVE CHANGES THAT ALLOW FOR
THESE REVENUE CHANGES TO --
WHERE THE MAYOR'S OFFICE AND THE
THE CBO WERE INTENDING TO GO. IF
GO. IF YOU LOOK, THEY DON'T USE
JUMP START FOR YEARS FOUR, FIVE,
FIVE, AND SIX. AND, TOM, FEEL
FREE TO CORRECT ME, BUT THEY
REALLY ONLY FOCUS ON USING HIGHR
THAN ANTICIPATED REVENUE FOR TWO
TWO YEARS. SO THE CONCEPT OF SUG
APPLICATION OF JUMP START IN A Y
MANNER IS SOMETHING THAT WE CAN
HELP COD FINE STATUE BY SAYING S
IS ONLY FOR TWO YEARS, WHICH THN
REALLY MAKES SURE THAT WE ARE
MOVING FORWARD IN CONNECTION
WITH THIS NEW REVENUE STABILIZAN
TASK FORCE WHOSE GOAL WILL BE TO
TO IDENTIFY NEW REVENUE THAT IS
DEPLOYABLE IN 2025 AND BEYOND. E
SECOND THING THAT I WOULD ADD, E
IT'S CLARIFICATION, AND, ALY, I
DON'T MEAN TO CONTRIBUTE YOU,
BUT WE HAVE NOT CHANGED WHERE
THE JUMP START SPENDING
CATEGORIES HAVE GOWN STATUTE. WE
CATEGORIES HAVE GOW
REALLY DID STICK TO THE PERCENTS
THAT WERE ORIGINALLY ENVISIONED
IN THE 2020 SPEND PLAN. WE HAVE
CODIFIED THOSE ORIGINAL PERCENTS
IN OUR JUMP START FUND POLICY
LAST YEAR IN -- EXCUSE ME, IN
2021, LAST YEAR. WE ALSO
IDENTIFIED, THOUGH, IN EXTREME
CIRCUMSTANCES WHERE REVENUE CONS
TO DECLINE, SOME FLEXIBILITY
COULD BE ACHIEVED. I THINK THAT
IT'S STILL CONSISTENT WITH THE
ORIGINAL VISION OF JUMP START TG
A GAINS AUSTERITY. THAT'S I
THINK WHY AFTER YOU BROAD
COALITION OF FOLKS SIGNING ON TO
TO SAY LET'S ALL WORK TOGETHER
TO PREVENT CUTS. BUT I THINK THE
THE QUESTION IS STILL, AND WE
WILL NEED TO DIG INTO THIS WITH
CENTRAL STAFF, IS WHERE IS THAT
FUNDING GOING. IS IT IN
ALIGNMENT WITH WHAT'S ALREADY
BEEN CODIFIED? ARE WE WANTING IT
WANTING IT TO BE USED FOR NEW I?
THOSE ARE THE QUESTIONS IN FRONF
US. I WANTED TO ADD THAT.
>> MADAM CHAIR, I GET THAT. WE'E
HEARD IT A LOT. AND THERE'S NO
DOUBT THAT WE ARE TRYING TO
REMAIN TRUE AND LOYAL OF WHAT
THIS COUNCIL PASSED IN 2020 AND
THEN CODIFIED IN 2021. LET ME
JUST ASK A QUICK FOLLOW-UP
QUESTION. I HAD A CHANCE TO LOOK
LOOK AT THE TASK FORCE MEMBERS.O
ARE THOSE TERMS GOING TO BE FORT
ONE YEAR, OR TWO YEARS, OR IS IT
IS IT GOING TO CHANGE?
>> I CAN ANSWER THAT, IF YOU WOD
LIKE, MADAM PRESIDENT.
>> YES.
>> AS SOMEONE WHO HAS BEEN WORKG
WITH THE SENIOR DEPUTY MAYOR HAD
AND THE SPONSOR OF THE SLIDE
WITH SUPPORT FROM MY COLLEAGUES
LAST YEAR AND THE BUDGET FOR THE
THE CREE AS YOU OF THIS TASK
FORCE, WE ARE GOING TO HAVE
BASICALLY BETWEEN NOW AND MARCH
THE TASK FORCE IS GOING TO BE
COMING UP WITH RECOMMENDATIONS
IDEALLY FOR RECOMMENDATIONS TO
BE FINAL LINDS APRIL, AND THEN R
US TO BE ABLE, AS A COUNCIL TO
RECEIVE THOSE RECOMMENDATIONS IN
IN MAY. I DON'T HAVE THE EMAIL
IN FRONT OF ME BUT THAT'S MY RE.
ALY, IF YOU SEE ANYTHING ELSE FM
THOSE COMMUNICATIONS FROM THE
MAYOR'S OFFICE PLEASE LET ME KN.
THAT MEANS THAT THE COUNCIL WILE
RECOMMENDATIONS IN MAY. THEN IT
WOULD BE UP TO THE COUNCIL
THROUGHOUT THE REMAINDER OF THE
YEAR NEXT YEAR TO HOPEFULLY
IDENTIFY WAYS TO PUT THOSE
RECOMMENDATIONS INTO STATUTE. TT
WAY WE KNOW IMPLEMENTATION CAN .
I THINK WHAT'S CLEAR IS THAT ITT
HAVE TO BE NECESSARILY ONE LARGE
LARGE REVENUE STREAM. IT COULD E
A SERIES OF WAYS TO BRING IN ADL
REVENUE. BUT IT ALSO NEEDS TO
HELP US IDENTIFY WISE TO SHORE
UP EXISTING REVENUE STREAMS THAE
NOT PRODUCING AT THE RATES ORIGY
ANTICIPATED, LIKE PARKING TAXES,
TAXES, FOR EXAMPLE. IT COULD BE
A COMBINATION OF BOTH NEW
PROGRESSIVE REVENUE STREAMS,
PLURAL, AND HELPING TO OFFSET
WHERE WE SEE DECREASED RETURNS
FROM TRADITIONAL STREAMS. SO
BASICALLY, MADAM PRESIDENT, OVER
MADAM PRESIDENT, OVER THE COURSE
THE COURSE OF THE NEXT SIX TO
EIGHT MONTHS.
>> WHAT I WAS GETTING AT, I APOE
IF I WASN'T CLEAR, I WAS LOOKING
LOOKING AT THE TASK FORCE MEMBES
AND I JUST WANT TO BE HONEST AND
AND CANDID. MAYBE WE CAN TALK
OFF LINE ABOUT SOME ADDITIONAL
VOICES ON THE TASK FORCE,
BECAUSE I DON'T KNOW HOW LONG
THAT THIS TASK FORCE THAT YOU
ARE PUTTING TOGETHER IS FOR. IS
IT FOR SIX MONTHS? IS IT FOR A
YEAR? IT'S CERTAINLY UP TO YOU,
MADAM CLAIRE TO DECIDE WHO THOSS
ARE. BUT I'D LIKE TO SEE MAYBE E
BIT MORE REPRESENTATION ON SOMER
AREAS. BUT WE CAN TALK ABOUT
THAT OFF LINE.
>> ABSOLUTELY. THANK YOU, MADAM.
>> THANK YOU.
>> THANK YOU. SO LET'S KEEP GOI.
ALY.
>> OKAY. SO WE CAN MOVE ON TO
THE NEXT SLIDE, SLIDE 40. I
THINK WE ARE MOVING TO PAGES 31
TO 32 OF THE MEMO. SO INCLUDED
IN THE COUNCIL BILL TRANSMITTED
WITH THE PROPOSED BUDGET IS A
PROPOSAL TO AMEND SOME OF THE -W
THE JUMP START FUNDS WITHIN THES
CAN BE USED. SO OVERALL THE 2023
2023 TO 2024 BUDGE WET AUTHORIZE
AUTHORIZE $220 MILLION OF JUMP
START FUNDS FOR THE SPECIFIC
CATEGORIES AND $225.4 MILLION IN
IN 2024. AS COUNCIL PRESIDENT
JUAREZ MENTIONED ATTACHMENT S
PROVIDES A MORE DETAILED
DESCRIPTION FROM EACH OF THE
CATEGORIES. BUT OVERALL THE
POLICY CHOICES BEFORE THE
COUNCIL ARE NOT UNIQUE TO ANY OE
SPENDING CATEGORY. SO WE'RE GOIG
TO HE REMAIN AT A RELATIVELY
HIGH LEVEL FOR THIS DISCUSSION,
ALTHOUGH I DO HAVE OTHER ANALYSS
ON THE LINE IF YOU HAVE SPECIFIC
SPECIFIC QUESTIONS ON SOME OF
THESE ITEMS. AND THEN THE MAIN
POLICY CENTERS THAT APPLY ACROSS
ACROSS ARE DESCRIBED UNISSUES
NINE AND TEN IN THE MEMO. SO THE
IN THE MEMO. SO THE FIRST CHANGE
CHANGE IN TERMS OF USE OF FUNDS
WITHIN CATEGORIES IS THE
LEGISLATION WOULD AMEND THE
POLICIES TO REMOVE THE RESTRICTN
THAT PROHIBITS JUMP START FUNDS
FROM SUPPLANTING APPROPRIATIONSM
OTHER FUNDING SOURCES. TO DATE
CENTRAL STAFF IDENTIFIED THE
EXPENDITURES LISTED ON THE SCREN
HERE TOTALING I THINK JUST OVER
$2 MILLION WHERE IT IS -- WHERE
WE HAVE IDENTIFIED PLACES THAT
PREVIOUS HELY, IN LAST YEAR'S
BUDGET, FOR EXAMPLE, OTHER FUNDS
FUNDS WERE USED TO SUPPORT THESE
SUPPORT THESE EFFORTS, AND THE P
START FUND IS BEING USED TO SUPT
THEM. I WILL JUST NOTE THAT IT
ISN'T REALLY EXPLICIT IN THE
CURRENT POLICIES ABOUT WHAT THE
TIME HORIZON IS WE'RE LOOKING AT
AT WHEN SOMETHING SUPPLANTING AD
SOMETHING IS NOT. MY
UNDERSTANDING IS IT APPLIED ONLY
APPLIED ONLY TO EXPENDITURES
THAT WERE PART OF THE CITY'S BAE
BUDGET PRIOR TO ADOPTION OF THE
TAX IN 2020. I THINK CENTRAL
STAFF'S INTERPRETATION IS THAT
IF SOMETHING WAS FUNDED IN ANY S
BUDGE WET OTHER FUNDS, THEN IT T
-- IF IN THE NEXT YEAR'S BUDGET
IT IS PROPOSED TO BE FUNDED, IT
IS SUPPLANTING. SO WE WENT THROH
THE LIST, WHAT IS ON THE SCREEN
TODAY IS WHAT WE HAVE IDENTIFIED
IDENTIFIED TO DATE CLEARLY SUPPG
EXPENDITURES THAT WERE
PREVIOUSLY SUPPORTED BY OTHER
FUNDS. AND SO THE OPTIONS AVAILE
TO THE COUNCIL ARE TO REJECT THL
TO AMEND THE POLICIES TO ALLOW G
OTHER FUNDS, AND THEN WOULD YOU
EITHER HAVE TO FIND AN
ALTERNATIVE SOURCE OF FUNDS FOR
THESE PROPOSED APPROPRIATIONS OT
THIS PROPOSED SPENDING AND CUT
THE PROGRAMS OR STAFF, OR REDUCR
ELIMINATE OTHER PROPOSED
SPENDING IN ORDER TO SWAP
GENERAL FUNDS FOR THE JUMP STAR.
>> QUESTIONS, COMMENTS? ALL
RIGHT. I THINK YOU CAN KEEP
GOING, ALY.
>> OKAY. AND SO I'M MOVING NOW O
PAGES 32 THROUGH 34 OF THE MEMOD
THIS ISN'T REALLY AS MUCH -- THE
ISN'T A SPECIFIC POLICY CHANGE
PROPOSED IN THE BUDGET AS TRANSD
FROM THE MAYOR, BUT THERE ARE
SOME AREAS WHERE THERE MAY BE
NOT CLEAR ALIGNMENT WITH THE
PROPOSED SPENDING WITH THE JUMP
START FUND POLICIES. I WOULD SAY
SAY GENERALLY THAT THE PROPOSED
SPENDING APPEARS TO MEET THE
BROAD INTENT OF THE SPENDING
PLAN CODIFIED UNORDINANCE 126393
126393 AND THE DETAILS AND
RESOLUTION 31957. IN A LOT OF
CASES WHETHER OR NOT YOU THINK
IT ALIGNS WITH THE POLICY IS
REALLY SUBJECTIVE. FOR EXAMPLE,
MANY OF THE PROPOSED
EXPENDITURES COULD EASILY BE
ARGUED EITHER WAY AND IN MANY
CASES YOU WILL SEE THAT IT MEETS
THAT IT MEETS THE BROAD INTENT
OF THE POLICY. I THINK THE
QUESTION IS REALLY WHETHER OR
NOT THAT'S THE SPECIFIC PROGRAM
OR SUGHS WANT TO PRIORITIZE FOR
USE OF THOSE FUNDS. SO ON THE
SCREEN TODAY IS A HANDFUL OF
ITEMS WE OFFER FOR YOUR
CONSIDERATION WHERE THERE'S NOT
A CLEAR ALIGNMENT BETWEEN THE
PROPOSED USE OF FUNDS AND THE
PROPOSED SPENDING AND THE EXISTG
SPENDING PLAN. BUT I WOULD NOTET
REALLY THE ONLY ONE ON THIS LIST
LIST THAT IS VERY OBVIOUSLY NOT
ALIGNED WITH THE EXISTING
POLICIES IS THE PROPOSED USE OF
FUNDS IN THE SEATTLE DEPARTMENT
OF CONSTRUCTION AND INSPECTION.S
IS BOTH A -- IT WOULD SUPPLANT
EXISTING GENERAL FUND USED TO
SUPPORT LEGAL SERVICES THAT THE
COUNCIL HAS INCREASED OVER MANY
YEARS FROM THE GENERAL FUND IN
AN ONGOING WAY, AND THE POLICIES
THE POLICIES AROUND THE HOUSING
AD STFSES IS REALLY CLEARLY
ABOUT INVESTING IN THE
DEVELOPMENT AND THE ACQUISITION
OF AFFORDABLE RENTAL AND
HOMEOWNER SHOP OPPORTUNITIES AS
WELL AS PROVIDING SERVICES FOR
THOSE UNITS AND DOESN'T SPEAK TT
RELATED SERVICES AT ALL IN TERMS
TERMS OF EVICTION DEFENSE OR OTR
TENANT RELATED SERVICES THAT ARE
ARE TYPICALLY SUPPORTED THROUGHS
AND SERVICES OFFERED THROUGH THE
THE DEPARTMENT OF CONSTRUCTION D
INSPECTION.
>> SO YOU SEE A THEME IN ALL THS
OFFERED TO YOU TODAY, BECAUSE
REALLY THE CHOICES ARE, IF YOU
DON'T AGREE OR ACCEPT THESE PRO,
YOU HAVE LIMITED CHOICES IN
TERMS OF WHAT YOU CAN DO. YOU
NEED TO EITHER FIND AN ALTERNATE
FUND SOURCE OR CUT THIS PROPOSED
PROPOSED SPENDING, AND THAT COUD
BE DONE IN TERMS OF FINDING AN
ALTERNATIVE SOURCE BY CUTTING
SOMETHING ELSE IN THE PROPOSED
BUDGET OR IDENTIFYING A NEW REVE
SOURCE. ANY QUESTION?
>> I'M NOT SEEING ANY QUESTIONS.
SEEING ANY QUESTIONS.
>> ALL RIGHT. THAT CONCLUDES OUR
OUR PRESENTATION FOR TODAY. I'M
HAPPY TO ANSWER ADDITIONAL QUES.
>> WONDERFUL. THANK YOU. COUNCIR
NELSON, PLEASE GO AHEAD.
>> SO THE SPENDING PLAN IN RESON
31957 FROM 2020, WHEN JUMP START
START PASSED, ANTICIPATED 219
MILLION IN REVENUES UN2022, ANDY
ARE NOW PROJECTED TO BE 279
MILLION BY YEAR'S END AND 294 IN
IN 2023, AND THEN 311 MILLION IN
311 MILLION IN 2024. BUT I'M
JUST TRYING TO GET MY HISTORY,
BECAUSE I WASN'T HERE LAST YEARE
THE ACTUAL CHECKS STARTED COMING
STARTED COMING IN THIS YEAR,
LAST FALL COUNCIL PASSED THE
SLIDE THAT WE'RE TALKING ABOUT
RIGHT NOW, COMMITTING TO LOOKING
LOOKING AT ADDITIONAL SOURCES OF
OF REVENUE. AND THAT IS
CONCERNING TO ME BECAUSE NOW
THAT REVENUES ARE BACK TO
PREPANDEMIC LEVELS, I THINK THAT
THAT WE SHOULD COMMIT TO SPENDI,
BUT HAVE WE LOOKED AT THE
UNDERSPEND FOR JUMP START IN 201
AND 2022 TO SEE IF WE ARE ACTUAY
GETTING THE MONEY OUT THE DOOR
ACCORDING TO THE SPENDING PLAN ?
>> COUNCILMEMBER NELSON, IN VARS
WAYS WE HAVE LOOKED AT SOME OF .
THE 2021 FUNDS WERE USED TO BALE
THE GENERAL FUND AND TO PROVIDED
RELIEF EFFORTS. 2022 WAS THE
FIRST YEAR THAT THEY WERE
DEDICATED TO THE SPENDING CATEG.
AND SO WE CAN FOLLOW UP WITH MOE
DETAILS ON WHERE SOME OF THE
OFFICES ARE. I WILL JUST NOTE,
GIVEN THAT IT WAS THE FIRST YEAR
YEAR OF IMPLEMENTING THE SPENDIG
PLAN, I WOULD EXPECT TO SEE SOME
SEE SOME SLOW ROLLOUT OF SOME OF
OF THOSE FUNDS. FOR EXAMPLE,
JUST IN SEPTEMBER THE COUNCIL
RELEASED $6 MILLION OF FUNDING
THAT WAS ALLOCATED FOR THE GREEN
GREEN NEW DEAL THAT WAS HELD
UNFINANCE GENERAL INTENTIONALLY
SO THAT THE GREEN NEW DEAL OVERT
BOARD HAD TIME TO BE STOOD UP
AND PROVIDE RECOMMENDATIONS ON
HOW TO ALLOCATE THOSE FUNDS. SO
I WOULD EXPECT THAT THOSE APPROS
WILL BE EXPENDED THROUGHOUT NEXR
AND WILL CARRY FORWARD AND THEN,
THE OFFICE OF ECONOMIC
DEVELOPMENT RECEIVED A SIGNIFICT
INCREASE IN FUNDING LAST YEAR,
IS STILL DEVELOPING THEIR STRAY
TEGGIC PLAN. I DON'T KNOW WHERE
THEY ARE EXACTLY ON SPENDING
ACTUALS TO DATE BUT WE CAN LOOKO
THAT MORE. AND THEN TYPICALLY
OFFICE OF HOUSING FUNDS ARE
COMMITTED BUT DON'T NECESSARILY
ROLL OUT THE DOOR VERY QUICKLY.O
THEY ARE COMMITTED TO A PROJECTT
IT MAY TAKE SOME TIME BEFORE THT
IS ACTUALLY PICKING UP CHECKS TY
FOR THE COST OF DEVELOPING OR
PURCHASING THE BUILDINGS. SO
THAT WAS A LONG ANSWER OF SAYING
OF SAYING I THINK THEY ARE
MAKING PROGRESS. WE CAN GET
ACTUAL NUMBERS OFF LINE.
>> THANK YOU.
>> THANK YOU. ARE THERE ANY
ADDITIONAL COMMENTS OR QUESTIONS
OR QUESTIONS ON THE MATERIALS
THAT WE HAVE REVIEWED TODAY?
COLLEAGUES, I AM NOT SEEING ANYS
OR QUESTIONS. PLEASE DO NOTE
THAT THIS IS A MARATHON, NOT A
SPRINT. SO WE LOOK FORWARD TO
HAVING FULL DAYS OF DELIBERATIO,
THAT'S TODAY, WEDNESDAY,
THURSDAY, AND FRIDAY, ALL DAY. ,
WE WILL MAKE SURE TO GET FOLKS
OUT OF THEIR CHAIRS BY 5:00
P.M., AND WE WILL HAVE A BREAK M
1:00 TO 2:00 FOR A LUNCH. I WANT
WANT TO THANK CENTRAL STAFF FOR
ALL OF THIS ANALYSIS THAT THEY
HAVE PROVIDED SO FAR AND THE
ANALYSES THAT ARE COMING FORWARS
WEEK. AS A REMINDER, WE ARE
GOING TO HAVE THE DEPARTMENT DO
AN OVERVIEW OF THE PROPOSED
BUDGET ADDITIONS, CHANGES,
SHIFTS, REDUCTIONS, AND ANY
PROGRAM MATTIC OR POLICY CHANGES
CHANGES YOU WOULD LIKE TO ASK. F
COURSE, THEY WILL BE THERE TO HP
ANSWER THOSE QUESTIONS. BUT THEN
THEN WE'RE GOING TO HAVE CENTRAL
HAVE CENTRAL STAFF IMMEDIATELY
FOLLOW THE PANEL FROM EACH OF
THE DEPARTMENTS TO WALK THROUGHR
ISSUE IDENTIFY INDICATION. THATS
OUR CHANCE TO REALLY IDENTIFY
CONCERNS OR COMMENTS, LIFT UP IS
YOU'D LIKE CENTRAL STAFF TO LOOK
LOOK INTO AS YOU CONSIDER
POSSIBLE AMENDMENTS FOR NEXT
MONDAY. THAT WILL BE OUR PROCESS
PROCESS OVER THE NEXT THREE
DAYS. AND SO WE GREATLY
APPRECIATE, AND I THINK WE HAVE
MADE SURE TO NOTE IN EVERY
MEETING, BUT AGAIN, WANT TO
APPRECIATE THE CITY BUDGET HE'SE
FOR WORKING IN CONJUNCTION WITH
US. THAT APPRECIATION EXTENDS TE
DEPARTMENTS WHO WILL BE COMING N
DOING AN OVERVIEW ON THE INITIAL
THE INITIAL PANEL, THEN A SUBSET
PANEL FROM CENTRAL STAFF ON THEE
DEPARTMENTS. AND SO WE'LL HAVE A
HAVE A CHANCE TO WALK THROUGH
EACH OF THESE ITEMS AS OUTLINED
IN THE CENTRAL STAFF MEMO IN THE
THE UPCOMING DAYS. I DO REALLY
APPRECIATE ALL OF THE HARD WORK
THAT CENTRAL STAFF HAS TAKEN TO
UNPACK THE PROPOSED BUDGET. MUCH
UNPACK THE PROPOSED
EASIER THIS TIME TO UNPACK IT TN
WAS THE LAST TWO YEARS, GIVEN
THE COMMITMENT TO TRANSPARENCY
AND THE COLLEGIAL TEE THAT WE'VE
WE'VE EXPERIENCED BASE LEVEL
ASSUMPTIONS. THAT'S BEEN HELPFUL
HELPFUL BECAUSE WE ONLY HAVE SIX
SIX WEEKS TO FINALIZE AND GATE T
FOR THE COUNCIL'S CONSIDERATION,
CONSIDERATION, FOR THE COMMUNITS
REVIEW AND FEEDBACK. AS YOU CAN,
I THINK THAT I AM GOING TO
CONTINUE TO HIGHLIGHT THE DUAL
FEELINGS THAT I HAVE JUST
EXPRESSED. REALLY STRONG
APPRECIATION FOR ALL OF THE WORK
THE WORK THAT'S BEEN DONE, BOTH
FROM THE EXECUTIVE AND THE
LEGISLATIVE BRANCH. WE ARE ALL
ROLLING UP OUR SLEEVES TO TRY TO
TO WORK THROUGH THESE VERY CHALG
TIMES. THE BUDGET DEFICIT TODAY
A, WHETHER YOU SLICE IT BY LOOK
AT HOW THE EXISTING DEFICIT IS D
THAT CBO USES, OR THE REALLY
TRANSPARENT AND HELPFUL WAY THAL
STAFF IS SLICING IT, WE HAVE THE
THE SAME UNDERLYING BUDGET CON ,
AND WE HAVE TO NOT ONLY CREATE D
BUDGET FOR THE NEXT TWO YEARS BT
REALLY TRY TO CONTINUE TO RIGHT
OUR INVESTMENTS IN THE NEXT SIX
YEARS TO CREATE A STABLE
SIX-YEAR OUTLOOK. WE WILL DO
THIS TOGETHER. WE'RE GOING TO RL
UP OUR SLEEVES. WE'RE GOING TO
HAVE SOME TOUGH CONVERSATIONS. M
SURE WE WILL HAVE NOT ONLY DISCN
BUT HEALTHY DEBATE. I'M GOING TO
TO CONTINUE TO RAISE CONCERNS. M
SURPRISED BY SOME OF THE DECISIS
THAT WERE MADE IN THE PROPOSED
BUDGET. SURPRISED BY THE
INVESTMENT OF OVER 50 MILLION
UNNEW INVESTMENT AS WE SEE
RESTRAINTS BEING PLACED ON MOST
DEPARTMENTS AND HOLDS ON
ESPECIALLY COUNCIL PRIORITIES IN
IN THE LAST YEAR. I'M GOING TO
CONTINUE TO BE LOOKING AT HOW WE
WE ADHERE TO THE LAW THAT'S IN
STATUTE AND WHERE WE NEED TO INT
SOME FLEXIBILITY FOR A SHORT TE.
I.E., FOR THE NEXT TWO YEARS THT
WE DO SO WITH SPECIFIC RESTRAINS
AND CONSTRAINTS ON HOW THAT
FUNDING CAN BE USED SO THAT
WE'RE INVESTING UNPREVENTING
AUSTERITY, PREVENTING CUT, INVEG
IN OUR MOST VULNERABLE, AND THAS
SMALL BUSINESSES AND VULNERABLE
INDIVIDUALS LIKE WORKERS,
SURVIVORS OF DOMESTIC VIOLENCE,
SENIORS, AND I'LL SAY IT, KIDDO,
COUNCIL PRESIDENT WHO NEED FOOD
AND ADDITIONAL SECURITY. WE'VE T
A LOT IN FRONT OF US TO ACT COM
PLISH IN A VERY SHORT AMOUNT OF
TIME. AND WE HAVE TO WALK OUT OF
OF THE UPCOMING SIX WEEKS WITH T
JUST A BALANCED BUDGET BUT A
LARGER, LONG-TERM STRATEGY TO
ADDRESS THIS GAP IN OVERALL
FUNDING, RECOGNIZING THAT
THERE'S A REVENUE DISCUSSION TO
COME. BUT WE HAVE POLICY
STRATEGIES THAT HAVE BEEN
OUTLINED BY CENTRAL STAFF TODAY
THAT COULD HELP CREATE A MORE
STABLE PROJECTION FOR THE NEXT
SIX YEARS. I LOOK FORWARD TO
WORKING WITH YOU. WE'LL CONTINUE
CONTINUE TO RAISE UP ISSUES
AROUND NEW INVESTMENTS, THE
IOUS, THE CHANGES IN UNDERLYING
REVENUE STREAMS, AND WITH YOU I
LOOK FORWARD TO MAKING SURE THAT
SURE THAT THE COALITION, THE
BROAD STAKE HOLDERS WHO HELPED
DEVELOP THOSE REALLY CRITICAL
REVENUE STRATEGIES GET THE
CHANCE TO PROVIDE THEIR FEEDBACK
THEIR FEEDBACK ON WHETHER AND IF
IF ANY OF THESE UNDERLYING SPENS
SHOULD BE CHANGED, BECAUSE
KEEPING THEIR TRUST AND THE
PUBLIC'S TRUST AS HAS BEEN OUTLD
BY THE SEATTLE TIMES, NUMEROUS S
OVER THE LAST TWO YEARS, KEEPING
KEEPING THAT TRUST AND MAINTAING
OUR COMMITMENTS IS ALSO
IMPORTANT AS CREATING A STABLE
BUDGET SO THAT WE CAN MAINTAIN
AND BUILD TRUST WITH THE
COMMUNITY IN THE YEARS OT. IN
CLOSING I WANT TO MAKE SURE THAT
SURE THAT WE LIFT UP ALL OF THE
WORK THAT WE'VE DONE SO FAR BUTO
MUCH WORK IS YET TO BE DONE, ANI
GUESS CITING THE SEATTLE TIMES O
SAID, PROVE ME WRONG AGAIN, PLE,
AND DO -- AND CONTINUE TO MAKE
INVESTMENTS IN REVENUE STREAM
THAT ADHERE TO THE INVESTMENTS
THAT WE ORIGINALLY STUCK TO. I
WANT TO MAKE SURE THAT WE CONTIE
TO INVEST IN WHERE WE NEED THE
MOST HE REVENUES FOR OUR VULNERE
COMMUNITY BUT ALSO THAT WE ARE
PREVENTING AGAINST CUTS AND
STICKING TRUE TO OUR PROMISES AS
PROMISES AS CODIFIED IN STATUTEH
THAT, I DON'T SEE ANY OTHER HAN.
LOOKING TWICE. OKAY. LET'S GO AD
AND PLAN TO SEE YOU ALL AGAIN
TOMORROW, 9:30 A.M. WE'RE GOING
TO JUMP RIGHT INTO IT WITH
OFFICE OF PLANNING COMMUNITY
DEVELOPMENT, DEPARTMENT OF
NEIGHBORHOODS, OFFICE OF
ECONOMIC DEVELOPMENT. PUBLIC
COMMENT WILL BE ACCEPTED BY
WRITTEN COMMENTS ONLY. AND THAT
IS EITHER IN PERSON, YOU CAN
WRITE A NET AND DROP IT OFF AT
THE FRONT, BUT PROBABLY THE
EASIEST WAY IS TO EMAIL US AT
COUNCIL AT SEATTLE.GOV. THANKS
AGAIN FOR ALL OF YOUR FEEDBACK.L
SEE YOU HERE THIS EVENING FOR
THOSE WHO ARE PARTICIPATING IN
OUR UPCOMING PUBLIC HEARING. THE
HEARING. THE WEBSITE IS LIVE SO
DO SIGN UP ONLINE TO PROVIDE YOR
VIRTUAL PUBLIC COMMENTS, AND IFU
WOULD LIKE TO PROVIDE COMMENTS
IN PERSON, THE SIGN-IN SHEETS
WILL BE AVAILABLE AT 4:30 OUTSIE
OF THE COUNCIL CHAMBERS. PLEASE
DO BRING YOUR MASK IF YOU ARE
COMING IN PERSON. THANK YOU ALLS
MEETING IS ADJOURNED. WE'LL SEE
YOU AT 9:30 A.M. TOMORROW FOR