COUNCILMEMBER SAKA IS RUNNING A
COUPLE MINUTES LATE AND EXCUSED
UNTIL HE ARRIVES. WILL THE CLERK
PLEASE CALL ROLL?
>> COUNCILMEMBER KETTLE?
>> HERE.
>> COUNCILMEMBER SAKA?
>> HERE.
>> COUNCILMEMBER NELSON.
>> CHAIR STRAUSS.
>> PRESENT.
>> ALL COUNCILMEMBERS HAVE BEEN
INVITED TO TODAY'S COMMITTEE,
SO IF ANYONE JOINS, WE WILL
ANNOUNCE THEM, WE DO HAVE A
PACKED AGENDA TODAY, AT THE LAST
COMMITTEE WE DISCUSSED HAVING
OUR TRIBAL RELATIONS DIRECTOR
COME BACK AND PRESENT ADDITIONAL
INFORMATION. WE HAVE ASKED HER
TO COME BACK IN SEPTEMBER DUE TO
THE PACKED AGENDA AND PACKED
MONTH WE HAVE BEFORE US. WE HAVE
THREE ITEMS ON TODAY'S AGENDA,
APPOINTMENT OF DAN AS DIRECTOR
OF CITY BUDGET OFFICE FOR A TERM
TO JULY 1st, 2029. WE HAVE AN
ORDINANCE RELATING TO THE
FINANCING OF THE SEATTLE SOCIAL
HOUSING DEVELOPER AUTHORIZING
THE DIRECTOR TO ENTER INTO A
LOAN AGREEMENT, AND THE THIRD
ITEM IS THE PROPOSED BUSINESS
AND OCCUPATION REBALANCING ACT,
KNOWN AS THE SEATTLE SHIELD
INITIATIVE. AS I MENTIONED
DURING COUNCIL BRIEFING MONDAY
THIS WILL BE A LONG MEETING, I
AM ASKING FOLKS TO BE READY TO
STAY UNTIL 1:00 P.M. THESE ARE
HEFTY AND IMPORTANT TOPICS AND I
WOULD LIKE TO RESERVE AS MUCH
TIME FOR FULL DISCUSSION AS
POSSIBLE. SO, PLEASE STAY WITH
US UNTIL 1:00 P.M. BEFORE WE
BEGIN, IF THERE IS NO OBJECTION
THE AGENDA WILL BE ADOPTED.
HEARING NO OBJECTION, THE AGENDA
IS ADOPTED. HYBRID PUBLIC
COMMENT PERIOD, PUBLIC COMMENT
SHOULD RELATE TO ITEMS ON
TODAY'S AGENDA WITHIN PURVIEW
OF THIS COMMITTEE. CLERK, I SEE
WE HAVE FIVE SIGNED UP IN
PERSON, WE WILL GO WITH THE
IN-PERSON NAMES FIRST, AND THEN
THE ONLINE COMMENTERS, WE HAVE
SIX PEOPLE, SEVEN PEOPLE SIGNED
UP ONLINE. WE ARE GOING TO TAKE
TWO MINUTES FOR COMMENT.
WE WILL TAKE TWO MINUTES FOR
COMMENT. IF YOU DO NOT NEED FULL
TWO MINUTES, PLEASE RELEASE THE
REMAINDER. WE WILL START WITH
IN-PERSON SPEAKERS FIRST, THE
PUBLIC COMMENT PERIOD WILL BE
MONITORING IN THE FOLLOWING
MANNER, UP TO 20 MINUTES,
SPEAKERS WILL BE CALLED IN THE
ORDER IN WHICH REGISTERED, WE
BEGIN WITH IN-PERSON AND THEN
REMOTE. SPEAKERS WILL HEAR A
CHIME WHEN 10 SECONDS REMAIN.
MICROPHONES WILL MUTE IF THEY DO
NOT END COMMENTS WITHIN ALLOTTED
TO TIME TO CALL ON THE NEXT
SPEAKER. I WILL READ ALL OF THE
IN-PERSON NAMES AND THEN WE WILL
GO THROUGH IN ORDER. WE TONYA
NGUYEN, ANDREW TRAN, JORDAN
COWLY, CALEB FITZGERALD, AND
DAVID HANES. WITH THAT, IF YOU
WOULD LIKE IT LINE UP ON THE
MICROPHONE, YEP. PLEASE COME ON
UP AND IF YOU WANT TO LINE UP IN
ORDER.
WELCOME, WHENEVER YOU ARE READY,
THE CLOCK WILL START.
>> THANK YOU SO MUCH. GOOD
MORNING, COUNCILMEMBERS, MY NAME
IS TONYA NGUYEN, I AM THE OWNER
OF A VEGAN DELI LOCATED IN
INTERNATIONAL DISTRICT. I AM
HERE TODAY TO SPEAK ON BEHALF OF
SMALL BUSINESS OWNERS IN
SEATTLE, ESPECIALLY THOSE OF US
FROM IMMIGRANT COMMUNITIES,
CULTURAL DISTRICT AND
HISTORICALLY UNDER SERVED
NEIGHBORHOODS. RUNNING A SMALL
BUSINESS RIGHT NOW IS LIKE
SWIMMING UPSTREAM IN A STORM. WE
ARE DEALING WITH SKY ROCKETING
RENT, UTILITIES, FOOD COSTS, AND
WAITERS, WHICH WE SUPPORT, BUT
MARGINS ARE SHRINKING FAST. AT
THE SAME TIME, WE ARE DEEG TAXED
BASE ON GROSS REVENUE, NOT ON
ACTUAL PROFIT. THAT REALLY-- IT
IS NOT JUST HURT, BUT PUNISHES
SURVIVAL FOR SMALL BUSINESS LIKE
MINE. WE ARE NOT A BIG
CORPORATION, WE ARE COMMUNITY,
WE ARE SUPPORT ELDERS, WE FEED
AND HOUSE THE NEIGHBORS, AND WE
ALSO PRESERVE HISTORICAL CULTURE
TURAL DISTRICT. SO, THIS
PROPOSAL TO RAISE THEBUSINESS--
>> THANK YOU.
>> SORRY.
>> IF YOU HAVE ANY ADDITIONAL
COMMENTS, PLEASE FEEL FREE TO
SUBMIT IN WRITING TO THE BOX TO
YOUR LEFT.
>> THANK YOU SO MUCH.
>> THANK YOU, TONYA. UP NEXT IS
ANDREW FOLLOWEDBY JORDAN.
>> GOOD MORNING, COUNCILMEMBERS.
MY NAME IS ANDREW TRAN, I WANT
TO SINCERELY THANK YOU FOR
ALLOWING ME TO SPEAK TODAY. I
HAVE TWO QUESTIONS IN REGARDS TO
THE PROPOSED BUSINESS AND
OCCUPATION TAX REBALANCING. MY
FIRST QUESTION IS IN REGARDS TO
FISCAL ACCOUNTABILITY. HOW WILL
YOU INSURE THAT THE NEW REVENUE
FROM THIS TAX CHANGE WILL
ACTUALLY PRODUCE BETTER RESULTS
FOR PUBLIC PROGRAMS BEYOND
CURRENT EFFORTS? I AM CURRENTLY
NOT SEEING ANY CLEAR CONNECTIONS
ON HOW INCREASING THE BUDGET
WOULD IMPROVE PUBLIC PROGRAM
PERFORMANCE. WHAT IS CURRENTLY
LACKING AND HOW DOES MORE MONEY
SOLVE THAT PROBLEM? FOR EXAMPLE,
USING SEATTLE'S PUBLIC BUDGET
DASHBOARD, I SEE THAT $210,000
IS ALLOCATED TO A UCT DIRECTERAL
WITHOUT JUSTIFICATION FOR THIS
ROLE. WHAT, SPECIFICALLY,
JUSTIFIES THIS? HOW WILL YOU
TRACK AND MEASURE HOW THIS WILL
IMPROVE RESOLUTION EFFORTS
COMPARED TO CURRENT METHODS?
THIS IS ONE OF MANY BUDGET LINE
ITEMS THAT HAVE NO CLEAR
JUSTIFICATION AND NO CLEAR
MEASURABLE PERFORMANCE METRIC.
MY SECOND QUESTION IS IN REGARDS
TO ECONOMIC IMPACT
RESPONSIBILITY. HOW CAN WE BE
SURE THAT THIS TAX INCREASE IN
LARGE CORPORATIONS WON'T RESULT
IN JOB LOSS? WHAT ANALYSIS OR
PRIVATE PARTNERSHIPS HAVE BEEN
DONE TO MITIGATE OR PRESENT
UNINTENDED CONSEQUENCES OF JOB
LOSS OR HIGHER CONSUMER PRICES?
WHAT I AM ASKING FOR HERE IS
FISCAL ACCOUNTABILITY AND
ECONOMIC IMPACT. THANK YOU FOR
YOUR TIME.
>> THANK YOU, ANDREW.
>> UP NEXT WE WILL HAVE JORDAN
CROWLEY FOLLOWED BY CALEB AND
DAVID.
>> GOOD MORNING, COUNCILMEMBERS,
I AM JORDAN CROWLEY,
REPRESENTATIVE OF MY FAMILY'S
SMALL BUSINESS IN WEST SEATTLE,
CHAIR OF 34th DEMOCRATS AND
ADVOCATE FOR SMALL BUSINESS. I
STAND PROUDLY IN SUPPORT OF THE
PROPOSED CHANGES TO THE BNO TAX.
WE ARE AT THE EDGE OF ANOTHER
FISCAL CLIFF. BETWEEN FAILURES
TO ENACT BETTER TAX POLICY AND
TRUMP'S DEFUNDING, THIS COUNCIL
IS IN A TOUGH POSITION, WITH
IMPACTFUL CHANGE, SEATTLE CAN
EASE THE BURDEN ON EVERY SMALL
AND MEDIUM-SIZED BUSINESS WHILE
SUPPORTING ESSENTIAL CITY
SERVICES WITH NEW REVENUE. FOR
TOO LONG SMALL BUSINESSES HAVE
BOUGHT THE NARRATIVE SOLD TO
THEM BY HUGE CORPORATIONS AND
CONSERVATIVE POLICY MAKERS THAT
SHIELDING THE WEALTHY FROM
SHARING EQUITABLY AND COMMUNITY
IS THE ONLY WAY. BUDGET ON THE
BACK OF WORKING CLASS, WEALTH
EVAPORATED OUT OF OUR
COMMUNITIES. NONE OF US HAS
TRICKLED DOWN. IT NEVER WILL.
ECONOMIZE GROW WHEN SMALL
BUSINESSES THRIVE. WHEN
COMMUNITIES ARE SUPPORTED, AND
THROUGH SUSTAINED RELIABLE
PUBLIC INVESTMENT. THE STATUS
QUO IS FAILING US, BUT WE HAVE
THE CHANCE NOW AND MUST HAVE THE
COURAGE TO CHANGE COURSE. THESE
CHANGES WON'T SOLVE ALL OF OUR
PROBLEMS, BUT IT IS A GOOD AND
NECESSARY FIRST STEP. THIS
ISN'T JUST ABOUT WHO PAYS WHAT,
IT IS ABOUT ANSWERING A MORE
FUNDAMENTAL QUESTION, WHO DO WE
SERVE? HOW DO WE SERVE THEM
WELL? THE LOCAL DEMOCRATIC
PARTY, BUSINESS REPRESENTATIVES,
LABOR LEADERS, AND HUMAN SERVICE
PROVIDERS FROM ACROSS THE CITY
ARE CALLING ON ALL OF YOU TO DO
THE SAME THING. GET THIS
PROPOSAL TO THE BALLOT, LET THE
PEOPLE TAKE IT FROM THERE. THANK
YOU.
>> THANK YOU. I SEE WE HAVE TWO
MORE PEOPLE IN ADDITION TO DAVID
HANES, HAS ANYONE NOT SIGNED UP
THAT WOULD LIKE TO SPEAK? GREAT.
I AM GOING TO PASS THIS TO YOU
TO ADD AFTER DAVID'S NAME.
SCALEB, WELCOME. JUST GIVE US
ONE SECOND. THEN WHEN YOU START
SPEAKING, WE WILL START THE
CLOCK. THANK YOU.
>> GOOD MORNING, MY NAME IS
CALEB FITZGERALD Y AM THE OWNER
OF--
>> WE ARE GOING TO RESTART THE
CLOCK. I WOULD SAY USE THE OTHER
MICROPHONE.
>> THERE YOU GO.
>> REAL CLOSE.
>> ALL RIGHT. GOOD MORNING,
COUNCILMEMBERS, MY NAME IS CALEB
FITZGERALD, I AM THE OWNER OF
CONSULTING, AN ACCOUNTING FIRM
THAT SPECIALIZES IN SMALL AND
MEDIUM-SIZE BUSINESSES,
PARTICULARLY THE ONES DIRECTLY
AFECKED BY THE BUSINESS AND
OCCUPATION TAX CHANGE. WE ARE
ALSO CONTRACTED WITH THE OFFICE
OF ECONOMIC DEVELOPMENT WITH THE
CITY OF SEATTLE. OUR CLIENTS ARE
THE MOM AND POP SHOPS, CAFES,
COFFEE ROASTERS, RESTAURANTS,
BAR S, SALONS, THE GYMS,
EVERYWHERE WE LOVE. IF YOU ASK
ANYBODY IN SEATTLE WHAT THEY
LIKE TO DO IN THE EVENING OR
WEEKEND, OUR BUSINESSES WILL
COME UP. I WORKED WITH HUNDREDS
OF SMALL BUSINESS OWNERS FROM
HAVING AN IDEA AND WONDERING
WHAT THEY SHOULD DO, ALL THE WAY
THROUGH I AM DONE AND READY TO
RETIRE, AND I WANT TO FIGURE
WHAT I WILL DO TO EXIT. STARTING
OUT IS BY FAR THE HARDEST PART,
REQUIRES THE MOST TIME, EFFORT,
AND CAPITOL. OWNERS NEED TO BE
DILIGENT IN FINANCIAL PLANNING.
MANY WORK LONG DAYS AND STRUGGLE
TO GET TO THE MEDIUM INCOME.
RAISING THE TAX THRESHOLD
$100,000 TO $2 MILLION IS A STEP
TOWARDS SHOWING THE CITY OF
SEATTLE CARES ABOUT THE SMALL
BUSINESS COMMUNITY AND THEY ARE
A VALUED PART OF THE CYSTY. VAST
MAJORITY OF THE PLACES WE GO TO
CELEBRATE AND HAVE FUN WILL SEE
A DIRECT IMPACT FROM THIS. WHEN
BUSINESSES OF THIS SIZE ARE ABLE
TO SAVE EXTRA MONEY, WE SEE
THOSE FUNDS GO TOWARDS TANGIBLE
THINGS. IT IS THINGS LIKE SAVING
FOR THEIR KIDS' COLLEGE FUND,
GIVING THEIR EMPLOYEES A RAISE,
THINGS LIKE CAN I OFFER
RETIREMENT OR OTHER BENEFITS? IT
IS THINGS INVESTMENTS BACK INTO
THE CITY. I AM VERY EXCITED TO
SEE THE PROPOSAL IN THE COUNCIL
AND LOOKING FORWARD TO HOPEFULLY
VOTING ON IT IN NOVEMBER. THANK
YOU.
>> THANK YOU.
>> UP NEXT IS DAVID HANES,
WELCOME, GOOD TO SEE YOU IN
PERSON TODAY.
>> THANK YOU. WANTED TO
REFERENCE THE 145th AVENUE, THE
SIDEWALK AND CONCERNS ABOUT
JACKSON. REAL DILEMMA ON 145th--
>> DAVID, WE DO HAVE TO SPEAK TO
ITEMS ON TODAY'S COMMITTEE
AGEND OFF. SORRY.
>> IS IT MORAL TO ADD AN
INTEREST RATE TO MONEY THAT IS
FROM TAXPAYERS THAT GIVEN TO
SOCIAL HOUSING? WHY CAN'T YOU
GIVE THE PRINCIPLE AND MAKE THEM
REPAY IT? I THOUGHT I COULD
ADDRESS THE 145th BECAUSE YOU
REFERENCED DURING THE BRIEFING
REGARDING THE SIDEWALK, THAT IS
NOT SUPPOSED TOVER WHOLE BUNCH
OF PRICKER BUSHES STICKING OUT
OF THE FENCE. THAT NEEDS TO BE
PULLED AWAY.
>> IF YOU WERE TO SPEAK TO THE
BUDGET RELATED ASPECTS TO THAT
TOPIC, IT WOULD BE APPROPRIATE.
>> ALL RIGHT. SEEMS LIKE WHEN IT
COMES TO THE BUDGET YOU WILL
SPEND MONEY TO MOVE THE FENCE
WHEN YOU COULD JUST HAVE PEOPLE
TEAR DOWN THE PRICKER BUSHES
KICKING OUT AND GRABBING
PEOPLE'S FACES AS YOU WALK DOWN
THE SIDEWALK. BUT THE REAL PART
OF THAT SIDEWALK, 145th IS 17th,
ONE BLOCK TO KING COUNTY
REGIONAL HOUSING AUTHORITIES'
SENIOR LIVING, NONE OF THOSE
ELDERS CAN GET TO THE GROCERY
STORE BECAUSE IT IS COMPLETELY
UNSAFE FOR ANY OF THEIR
ASSISTANT WALKERS. THAT NEEDS TO
BE ADDRESSED BUT THE SIDEWALK
GOING TO THE LINK LIGHT RAIL BY
THE GOLF COURSE NEEDS TO HAVE
THE BUSHES TRIMMED ON THE OTHER
SIDE OF THE FENCE, NOT THE FENCE
MOVED. IF YOU CAN GO DOWN AND
TAKE A LOOK, ANYWAY, SORRY TO
BOTHER YOU.
>> THANK YOU, DAVID. UP NEXT,
ZACH HUNTING.
>> HELLO. THANK YOU FOR LETTING
ME SPEAK TODAY. I AM ZACH
HUNTING, I OWNED MORE THAN TEN
BUSINESSES HERE IN SEATTLE. I
ALSO WORK WITH THE OFFICE OF
ECONOMIC DEVELOPMENT TO CONSULT
WITH SMALL BUSINESSES, SO I
WORKED WITH HUNDREDS MORE. I AM
IN SUPPORT OF THE BNO TAX
REFORM. IT IS REALLY HARD RIGHT
NOW AS A SMALL BUSINESS, AS I
MENTIONED, I ALSO KNOW HOW HARD
IT IS AND HAVE RUN AND HAD TO
CLOSE BUSINESSES BECAUSE OF
MARGINS THAT WERE ROUGHLY THE
SAME SIZE AS THE AMOUNT TAKEN
OUT EVERY MONTH BY THE TAX. I
KNOW ESPECIALLY RIGHT NOW, RENT,
EVERYTHING, I THINK THIS IS A
GOOD STEP IN THE RIGHT
DIRECTION. THANK YOU.
>> THANK YOU.
>>> REMOTE PUBLIC COMMENTERS,WE
DO HAVE ONE, TWO, THREE, FOUR,
FIVE, SIX ALREADY PRESENT AND A
SEVENth NOT PRESENT. GARRET
MOORE, IF YOU ARE LISTENING,
PLEASE CALL IN WITH THE E-MAIL
YOU RECEIVED AFTER YOU SIGNED
IN. I SEE YOU SIGNED IN TWICE.
WITH THAT, THE ONLINE PUBLIC
COMMENTERS ARE AS FOLLOWATIZE.
BJ LAST, WEST REID, HALLIE,
ALBERTO, ASTRED, AND KATE
REUBEN. YOU WILL EACH, IF WE
COULD PROMOTE BJ AT THIS TIME,
YOU WILL EACH HAVE TWO MINUTES.
IF YOU DON'T NEED YOUR FULL TWO
MINUTES, PLEASE DO RELEASE THE
REST OF YOUR TIME AS SOON AS BJ
IS PROMOTED, I SEE BJ, YOU ARE
HERE, STAR 6 TO UNMUTE. FOR ALL
CALL INS, YOU WILL BE PROMOTED
INTO THE MEETING AND THEN YOU
WILL HAVE TO PRESS STAR 6. I SEE
BJ IS OFF MUTE. WHENEVER YOU ARE
READY, THE CLOCK WILL START.
WELCOME, BJ.
>> GOOD MORNING, MY NAME IS BJ
LAST, FORMER SMALL BUSINESS
OWNER. I WANT TO POINT OUT THAT
DEFICIT THE CITY IS LOOKING AT
NEXT YEAR IS $251 MILLION. THE
BNO TAX PROPOSAL IS ESTIMATED TO
JUST RAISE $90 MILLION. SO, THIS
IS NOT GOING TO GET AROUND
SOOELT, SET UP BY FIRE REFUSAL,
TO TAKE ACTION, KICKING THE THE
CAN DOWN THE ROAD .
WE NEED ACTUALLY BIG, BOLD
ACTION TO CLOSE AT THE MINIMUM,
THE CITY'S OWN PROJECTED
DEFICIT, LET ALONE WHAT WE KNOW
IS COMING FROM CUTS AT FEDERAL
AND STATE LEVEL. I WANT TO POINT
OUT IN TERMS OF WHAT IS
HAPPENING, FEDERAL LEVEL, LARGE
BUSINESSES ARE GETTING HUNDREDS
OF BILLIONS OF DOLLARS IN TAX
BREAKS RIGHT NOW. SO, THIS IS
PUT ADDITIONAL MONEY ON THEM,
THEY ARE COMING OUT MASSIVELY
AHEAD WITH HUGE SAVINGS THAT ARE
GOING ON TO THEM. I REALLY DO
EMPATHIZE WITH SMALL BUSINESS
OWNERS WHO MENTIONED HOW HARD IT
IS TO RUN A SMALL BUSINESS RIGHT
NOW WITH THE COST OF EVERYTHING
GOING UP. THIS IS ABSOLUTELY
TRUE. THIS IS ALSO COMPLETELY
TRUE FOR ALL OF THE WORKERS WHO
PAY SALES TAX, WHICH IS WHERE
THE GENERAL FUND REVENUE COMES
FROM, THE LARGEST SOURCE GOING
IN THERE. THERE IS NO FLOOR FOR
PEOPLE EARNING REVENUE RIGHT
NOW. THERE IS NO FLOOR, WHEN
SOMEONE GOES TO BUY SOMETHING,
THERE IS NOTHING IF THEY WERE
RECENTLY LAID OFF, THEY DON'T
PAY SALES TAX. PEOPLE STRUGGLING
ARE GETTING HIT REALLY HARD AND
WE HAVE SEEN PROPOSALS COMING TO
RAISE THE SALES TAX. WHERE IS
THE EXEMPTION FROM THEM? WHERE
IS THE EXEMPTION FOR PEOPLE
WHERE THEY DON'T HAVE TO PAY
SALES TAX IF THEY MAKE UNDER A
CERTAIN AMOUNT? WHY ONLY
EXEMPTION FOR BUSINESSES TO GET
OUT OF TAXES IF CONSIDERED TOO
SMALL? WHERE IS PROTECTION FOR
PEOPLE? THIS ISN'T GOING TO END
AUSTERITY AT THE CITY LEVEL.
>> THANK YOU, BJ.
>> IF YOU ADDITIONAL COMMENTS,
PLEASE FEEL FREE TO WRITE INTO
US. UP NEXT IS WES REID,
FOLLOWED BY HALLIE. WES, STAR 6
TO UNMUTE.
>> I SEE YOU ARE UNMUTED, WES,
WHENEVER YOU ARE READY, WE WILL
START THE CLOCK. WELCOME.
>> THANK YOU. GOOD MORNING,
COUNCILMEMBERS, WES REID,
RESIDENT OF NORTH GATE DISTRICT
FIVE. I AM HERE TO ASK EACH
COUNCILMEMBER TO FULLY SUPPORT
THE SEATTLE SHIELD INITIATIVE.
WE ARE FACING A CRITICAL
NUMBNESS, SEATTLE HAS DEMANDS,
LANDSCAPE IS SHIFTING, WE CANNOT
AFFORD TO BE DEPENDENT ON
FEDERAL DOLLARS THEY MAY
DISAPPEAR WITHOUT WARNING. THE
TRUMP ADMINISTRATION ALREADY
SIGNALED CUTS TO GRANTS SEATTLE
RELIES ON.
THE CUTS ARE COMING TO SEATTLE,
CHANGES FOR EVERY DAY PEOPLE IN
SEATTLE. OTHER CITIES ARE
PREPAREING FOR THIS REALTY,
SEATTLE CANNOT AFFORD TO WAIT.
WE NEED TO ACT NOW RATHER THAN
CRISIS CUTS. I AM ASKING YOU TO
SUPPORT, BECAUSE YOU UNDERSTAND
GOOD GOVERNANCE MEANS PLANNING
AHEAD. PLEASE GIVE US THE
OPPORTUNITY TO VOTE ON THIS IN
NOVEMBER. THANK YOU SO MUCH FOR
YOUR TIME AND SERVICE TO OUR
CITY.
>> THANK YOU. UP NEXT IS HALLIE
WILL, FOLLOWED BY ALBERTO
ALVAREZ AND AST RUD GALVEZ.
HALLIE, I SEE YOU ARE HERE.
WELCOME.
>> THANK YOU. GOOD MORNING,
COUNCILMEMBERS, MY NAME IS
HALLIE. I AM THE POLICY MANAGER,
I -- THIS PROPOSAL IS NECESSARY
BUT NOT NEARLY ENOUGH BY ITSELF
TO FIX OUR STRUCTURAL $250
MILLION BUDGET DEFICIT, MUCH
LESSPHIC FILL FEDERAL CUT. THE
COUNCIL SHOULD SEND THIS TO THE
VOTERS AND RAISE ADDITIONAL
PROGRESSIVE REB NEW TO TRULY
PROTECT OUR COMMUNITY. I SENT A
LETTER SIGNED BY THE FOLLOWING
27 ORGANIZATIONS. PROTECT 17,
OPEIU LOCAL 8, ASIAN COUNSELING
AND REFERRAL SERVICES, EAST
SEATTLE, COMPASS HOUSING, DESC,
ECONOMIC OPPORTUNITY INSTITUTE,
ELSENT ROW, EVER GREEN TREATMENT
SERVICES REACH, HUNGER
INNOVATION PROGRAM, EMANUEL
COMMUNITY SERVICES, LAKE CITY
PARTNERS, MOCKING BIRD,
NEIGHBORHOOD HOUSED, OSL SERVES,
PORCH LIGHT, PUGET SOUND SAVES,
PDA, QUEEN ANNE HELP LINE, REAR
CHANGE, ROOTS YOUNG ADULT
SHELTER SOLID GROUND, TEAM FEED,
TRANSIT RIDER'S UNION, AND
WHITE CENTER SEAT BANK. PLEASE
SENT THIS TO THE VOTERS AND
RAISE ADDITIONAL PROGRESSIVE
REVENUE THIS YEAR. THANK YOU.
>> THANK YOU, HALLIE. UP NEXT IS
ALBERTO FOLLOWED BY ASTRED AND
KATE, GARRET MORE R PLEASE CALL
IN. ALBERTO, I SEE YOU ARE HERE
AND OFF MUTE. THE CLOCK WILL
START WHEN YOU START TALKING.
WELCOME.
>> THANK YOU. SO, I WANT TO
RESPOND TO THE FIRST PEOPLE THAT
SAID THAT THE SHIELD LEGISLATION
WOULD LEAD TO JOB LOSS. FIRST OF
ALL, IN THE WORLD WE ARE IN TOP
FIVE OF GLOBAL ECONOMIC
POWERHOUSES FOR CITIES ACROSS
THE WORLD, NOT JUST THE NATION.
THE HONEST TRUTH IS THESE
CORPORATIONS NEED US MORE THAN
WE NEED THEM. EVEN IF THEY MOVE
JOBS ACROSS THE WATER TO
BELLEVUE, THOSE PEOPLE LIVING
THERE, OR EVEN STILL RESIDING IN
SEATTLE WILL STILL PROVIDE FOR
OUR LOCAL SMALL BUSINESSES. THEY
CAN LIGHT RAIL, BUS IT IN, OR
TAKE UBER, THEY WILL STILL BE
PROVIDING ECONOMIC ACTIVITY IN
OUR CITY. IT IS AN EMPTY THREAT
THAT THEY WILL TAKE JOBS AND
MOVE THEM SOMEWHERE ELSE . EVEN
IF THE WORSE HAPPEN WHERES THEY
SOMEHOW MANAGE TO MOVE THEM TO
TEXAS OR WHENEVER, A WHOLE OTHER
STATE, WE ARE A GROWING CITY, WE
JUST HIT 800,000 SEATTLE
RESIDENTS. AGAIN, THE
CORPORATIONS NEED US MORE THAN
WE NEED THEM. SO, THANK
YOU,COUNCILMEMBER YOUR SCHIELEED
LEGISLATION IS WHAT WE NEED MORE
THAN EVER. AFTER SIX MONTHS OF
FEDERAL CHAOS AND LOOMING SENSE
OF DREAD, WE CAN FINALLY TAKE A
STRONG FIRST STEP TO RALLY THE
CITY AND PROTECT THE PEOPLE WE
VALUE. AS YOU PROPOSE, THIS
WOULD PROVIDE TAX RELIEF TO OVER
16,000 LOCAL SMALL BUSINESSES.
IN TURN, THIS WILL MAKE THE
GREEDIEST CORPORATE FACTIONS PAY
THE FAIR SHARE THEY HAVE LONG
AVOIDED. FAIR IS FAIR. OVERALL,
YOUR SHIELD LEGISLATION WOULD
BRING IN ABOUT A THIRD OF THE
$250 MILLION WE NEED TO PROTECT
OUR CITY.
>> THANK YOU. UP NEXT IS ASTRED,
KATE, AND GARRET. YOU ARE STILL
NOT PRESENT. ASTRED, I SEE YOU
ARE OFF MUTE. WHEN YOU START
TALKING WE WILL START THE CLOCK.
WELCOME.
>> GOOD MORNING, THANK YOU,
COUNCILMEMBERS FOR THE
OPPORTUNITY TO SPEAK TODAY. MY
NAME IS ASTRED GALVEZ, I RUN AND
OPERATE SALINA SACKS AND
ACCOUNTING LLC, WE ARE A SMALL
BUSINESS AND SMALL ACCOUNTING
AND TAX BRACKET Y. AM AN
INDEPENDENT CONTRACTOR FOR THE
CITY OF SEATTLE OFFICE OF
ECONOMIC DEVELOPMENT WHERE I
HELP SMALL BUSINESS OWNERS STAY
COMPLIANT WITH TAX FILINGS AND
SO ON. I WANT TO EXPRESS MY
SUPPORT FOR THIS CHANGE. I SEE
FIRST HAND THE IMPACT OF THE BNO
TAX ON ENTREPRENEURS ACROSS THE
CITY, AND HEAVILY IMPACTED ALSO
ARE THE HISPANIC BUSINESSES THAT
I SUPPORT AND ASSIST, BECAUSE
THIS FILING IS BASED ON GROSS
RECEIPTS, NOT PROFITS, SMALL
BUSINESSES ARE TAXED EVEN WHEN
THEY ARE BARELY MAKING IT OR
OPERATING AT A LOSS, MANY HAVE
TIGHT MARGINS, LIKE RESTAURANTS,
CHILD CARE, INDEPENDENT
CONTRACTORS, IT CREATES THIS AS
ENORMOUS BURDEN FOR THEM. THE
CLIENTS I SERVE ARE MAJORITY IN
THE HISPANIC POPULATION ARE
BILINGUAL AND THEY ARE
REINVESTING EVERY DOLLNER TO
PAYROLL, RENT, SURPRISE,
MATERIALS, ET CETERA. THEY ARE
KEEPING PEOPLE EMPLOYED AND
CONTRIBUTING TO THE
NEIGHBORHOODS, BUT THEY ALSO
FACE TAX OBLIGATIONS THAT DON'T
REFLECT THEIR FINANCIAL HELP. IN
ADDITION TO THIS, THERE IS MORE
COMPLEXITY AND REPORTING BECOMES
OVERWHELMING FOR THEM. I
STRONGLY ENCOURAGE THE COUNCIL
TO MOVE FORWARD WITH RAISING THE
EXEMPTION, SIMPLIFYING
REPORTING, AND PROVIDING
ASSISTANCE TO IMMIGRANTS AND
HISPANIC BUSINESSES, THE CHANGE
WILL RELIEVE THE PRESSURE. I
FULLY SUPPORT THIS CHANGE.
>> THANK YOU, UP NEXT IS KATE
REUBEN, GARRET, I SEE YOU HAVE
SIGNED IN AGAIN ON THE ONLINE
FORUM. YOU WILL RECEIVE AN
E-MAIL AFTER SIGNING IN. YOU
HAVE TO USE THE DIRECTIONS IN
THE E-MAIL YOU RECEIVED. PLEASE
FOLLOW THE DIRECTIONS THAT YOU
HAVE RECEIVED IN YOUR E-MAIL.
KATE, I SEE YOU ARE ALREADY OFF
MUTE. WHEN YOU ARE READY, WE
WILL START THE CLOCK. WELCOME.
>> GOOD MORNING. MY NAME IS KATE
REUBEN. I AM THE COEXECUTIVE
DIRECTOR IN BEACON HILL, THE
PROPOSAL IS A WELCOMED CHANGE
AND THE RIGHT DIRECTION, I
APPRECIATE COUNCILMEMBER RINK
MAYOR HARRELL FOR BRINGING IT
FORWARD. $250 MILLION BUDGET
SHORTFALL, RAISING $90 MILLION
BARELY A THIRD OF THE SHORTFALL,
IS NOT QUITE MEETING THE MOMENT.
OUR COMMUNITIES ARE ALREADY
HURTING AND CUTS TO HOUSING,
HUMAN SERVICES, FOOD ACCESS,
HEALTHCARE, WILL ONLY BRING
HARM. THIS ISN'T GOING TO SOLVE
IT. THE TRUMP ADMINISTRATION AND
GOVERNOR FERGUSON ARE PULLING
FUNDING FOR CRITICAL PROGRAMS
AND THE CITY'S BUDGET DECISIONS
WILL DETERMINE WHO CAN RAISE THE
BURDEN. YOU HAVE THE OPPORTUNITY
TO NAK THIS INITIATIVE SO MUCH
STRONGER, ESPECIALLY GIVEN THAT
THE CENSUS IS ONLY FOUR YEARS
FROM NOW. SEATTLE SHIELD SHOULD
BE PASSED, THIS PROPOSAL SHOULD
BE TREATED AS THE FLOOR, NOT THE
CEILING. COUNCIL MUST INSURE
COMMUNITIES ARE PROTECTED FROM
THE HARM THE FEDERAL
ADMINISTRATION IS CAUSING. WE
NEED TO INSURE RESOURCES GO
TOWARD THE NEEDS OF THE PEOPLE
HOUSING, FOOD, PUBLIC HEALTH,
COMMUNITY CARE. FUNDING FOR
SERVICES MUST BE MANDATORY AND
IT MUST BE FULLY COVERED. THANK
YOU.
>> THANK YOU, KATE. WE ARE GOING
TO GIVE GARRET ANOTHER 30
SECONDS TO SEE IF WE ARE ABLE TO
GET HIM IN. GARRET, IF YOU ARE
NOT ABLE TO ACCESS THE
DIRECTIONS THAT WERE E-MAILED TO
YOU AFTER SIGNING IN, YOU CAN
SEND IN YOUR WRITTEN PUBLIC
COMMENT.
KIND OF JUST DOUBLE CHECK WITH
OUR LEGISLATIVE INFORMATION
TECHNOLOGY. MR. G, DO WE HAVE
GARRET PRESENT AT THIS TIME?
>> NEGATIVE.
>> THANK YOU, MR. G.
>> WITH THAT, SEEING AS WE HAVE,
GARRET, PLEASE DO FEEL FREE TO
WRITE US ALL YOUR PUBLIC COMMENT
AND WE WILL HAVE IT ADDED.
SEEING AS WE HAVE NO ADDITIONAL
SPEAKERS WE WILL MOVE ON TO THE
NEXT AGENDA ITEM, THAT TOOK 24
MINUTES AND WE HAD ALL SPEAKERS
ABLE TO PROVIDE COMMENTS FOR TWO
MINUTES. WE HAVE ALSO BEEN
JOINED BY COUNCIL PRESIDENT SARA
NELSON. WILL THE CLERK PLEASE
READ THE FIRSTITETIME OF
BUSINESS INTO THE RECORD?
>> APPOINTMENT 3189, APPOINTMENT
OF DAN AS DIRECTOR AT THE CITY
BUDGET OFFICE FOR TERM TWO JULY
FIRST, 2029, A POSSIBLE VOTE,
PRESENTER INCLUDE DAN, INTERIM
DIRECTOR OF THE CITY BUDGET
OFFICE.
>> THANK YOU. WELCOME TO MAYOR
WONG AND INTERIM DIRECTOR, DAN,
THE CITY BUDGET OFFICE. WE HAD
YOU AT COMMITTEE FEW WEEKS AGO.
I KNOW THERE WERE PRESSING
ISSUES AT THAT TIME AS WELL. YOU
DID ANSWER A FEW QUESTIONS BUT
YOU HAD NOT YET ANSWERED US IN
WRITING. TODAY WE HAVE YOUR
WRITTEN ANSWERS ATTACHED TO THE
AGENDA, I WILL TURN IT OVER TO
DEPUTY MAYOR WONG AND THEN THE
INTERIM DIRECTOR AND THIS TIME
IS RESERVED FOR YOUR QUESTIONS.
WITH THAT, DEPUTY MAYOR,
WELCOME. AND IF YOU WANT TO
INTRODUCE YOURSELVES AS WELL.
>> THANK YOU, DEPUTY MAYOR GREG
WONG. PLEASED TO BE HERE. THANK
YOU FOR HAVING US AND
CONSIDERING INTERIM DIRECTOR'S
CONFIRMATION, I KNOW COUPLE
WEEKS AGO MY COLLEAGUE, CHIEF OF
STAFF, JEREMY ROCK WAS HERE TO
PROVIDE INTRODEKZ OF DAN EDER, I
WILL LET YOU GET TO YOUR
QUESTIONS.
>> THANK YOU, CHAIR STRAUSS,
HAPPY TO BE HERE. APPRECIATED
THE EXCHANGE WE HAD ON JULY 2nd,
AND THE OPPORTUNITY TO ANSWER
WRITTEN QUESTIONS. I KNOW YOU A
PACKED AGENDA. I WILL JUST VERY
BRIEFLY NOTE MY THANKS FOR THE
MAYOR FOR THE APPOINTMENT AND
THE VOTE OF CONFIDENCE. I AM
APPRECIATIVE TO YOU FOR
CONSIDERING MY CONFIRMATION, AND
I WANT TO THANK THE CBO TEAM AND
ALL OF THE HARD-WORKING STAFF
THROUGHOUT THE CITY WHO SUPPORT
THE WORK THAT WE DO HERE AT THE
CITY OF SEATTLE. I REMAIN
THRILLED ABOUT THE PROSPECT OF
CONTINUING TO MAKE A
CONTRIBUTION AT THE CITY BUDGET
OFFICE. I ALSO APPRECIATE EACH
OF YOU TAKING TIME OUT OF YOUR
SCHEDULE TO MEET WITH ME IN THE
LAST TWO WEEKS TO DISCUSS MY
VISION FOR THE CITY AND FOR THE
CITY BUDGET OFFICE, AND WITH
THAT I WILL JUST SAY I AM HERE
TO ANSWER ANY QUESTIONS YOU
HAVE.
>> THANK YOU, DIRECTOR EDER.
COLLEAGUES, QUESTIONS? I HAVE
SOME BUT I WILL HOLD THEM TO THE
END.
I WILL JUMP IN WITH ONE, MAYBE
THAT WILL SPARK INTEREST HERE. I
WILL OFTEN TIMES SAY RUNNING A
CAMPAIGN IS THE LARGEST PANEL
INTERVIEW THAT ONE WILL HAVE. IN
THE CASE OF OUR RELATIONSHIP, WE
HAVE WORKED TOGETHER FOR SEVEN
YEARS IN MANY DIFFERENT ROLES.
WHEN WE FIRST MET I WAS YOUR FAR
JUNIOR, THEN WE WORKED TOGETHER
AS YOUR CENTRAL STAFF DEPUTY
DIRECTOR, AND NOW CBO. THOSE ARE
BEEN DIFFERENT TYPES OF
RELATIONSHIPS. I CAN SAY THAT IT
HAS BEEN A PLEASURE TO WORK WITH
YOU IN ALL OF THOSE ROLES BUT I
WAS WONDERING SO IN THAT SENSE,
THAT IS THE LONGEST INTERVIEW
YOU HAVE PROBABLY EVER HAD
WITHOUT KNOWING IT. IN ALL OF
THOSE VARIOUS ROLES YOU HAVE
SERVED ACROSS CITY GOVERNMENT,
HOW DOES THAT ENABLE YOU TO
PERFORM IN THIS JOB AT A HIGHER
LEVEL?
>> WELL, AS YOU WERE ALLUDING
TO, I SPENT MOST OF MY TIME WITH
THE CITY ABOUT 13, 14 YEARS
WORKING DIRECTLY FOR THE CITY
COUNCIL ON THE CITY COUNCIL
CENTRAL STAFF. I HAVE DEEP
APPRECIATION FOR THE HARD WORK
THAT YOU DO IN THE PUBLIC EYE,
MAKING DIFFICULT TRADE OFF
DECISIONS, AND EVALUATING YOUR
OPTIONS. I WILL PRIORITIZE
WORKING WITH EACH OF YOU TO MAKE
SURE YOU HAVE ALL OF THE
INFORMATION YOU NEED, BOTH YOU
AND YOUR STAFF, TO MAKE THE KIND
OF HARD CHOICES THAT YOU WERE
ELECTED TO MAKE. I WORK DIRECTLY
FOR THE MAYOR IN THE
ORGANIZATIONAL CHART, BUT MY
ROLE WOULD SIMPLY NOT WORK IF I
DIDN'T HAVE THE TRUST AND
CONFIDENCE OF EACH AND EVERY ONE
OF YOU. SO I WILL CONTINUE TO
THE WORK I HAVE BEEN DOING THE
LAST YEAR AS INTERIM BUDGET
DIRECTOR. IF YOU DECIDE TO
CONFIRM ME MOVING FORWARD. TO
SUPPORT YOUR DECISION MAKING,
MAKING SURE YOU HAVE ALL OF THE
INFORMATION YOU NEED TO MAKE THE
HARD TRADE-OFF DECISIONS.
>> THANK YOU. COLLEAGUES, AT ANY
POINT-- I SEE COUNCILMEMBER
SAKA. TAKE IT AWAY, I HAVE MY
STANDARD QUESTIONS THAT I WILL
GET TO IF THEY ARE NOT ASKED BY
OTHERS.
>> THE FLOOR IS YOURS.
>> THANK YOU, MR. CHAIR. THANK
YOU, DIRECTOR EDER. WE LOVE TO
BETTER UNDERSTANDING, FACING
$250 MILLION PLUS BUDGET
DEFICIT. THERE IS A LOT OF
PENDING UNCERTAINTY ABOUT THE
BUDGET, REVENUE, NEW REVENUE
OPTIONS, THIS IS AN IMPORTANT
JOB, NOW MORE THAN EVER. SO,
AGAINST THIS BACK DROP, WHAT
GIVES YOU THE MOST HEARTBURN, OR
ANXIETY ABOUT STEPPING INTO THIS
ROLE AND THE OUTLOOK AHEAD? HOW
ARE YOU PREPARED TO ADDRESS
THAT?
>> THANK YOU FOR THE QUESTION,
COUNCILMEMBER SAKA. YOU KNOW, I
THINK NO CITY LIVES ENTIRELY BY
ITSELF. WE ARE PART OF A REGION
AND A STATE, A NATION, AN
INTERNATIONAL COMMUNITY. I GUESS
MY -- WHAT KEEPS ME UP AT NIGHT
IS THOSE THINGS THAT WE CAN'T
CONTROL THAT WILL AFFECT OUR
ABILITY TO DELIVER CRITICAL
SERVICES AND PROJECTS TO THE
PEOPLE OF SEATTLE. THINGS LIKE
MACROECONOMICFORCE S, THAT MAKE
OUR COSTS OF DELIVERING THOSE
SERVICES MORE EXPENSIVE. AND
THREATS AND EVEN ACTIONS NOW
THAT THE FEDERAL GOVERNMENT IS
UNDERTAKING TO PULL BACK MONEY
THAT HAS HISTORICALLY BEEN USED
TO SUPPORT THE WORK THAT WE DO
AND THE WORK THAT OUR PARTNERS
DO. IN BRIEF, I WORRY ABOUT THE
CURVE BALLS THAT ARE COMING AT
US THAT WE CAN'T CONTROL. I AM
INCREDIBLY HOPEFUL, HOWEVER,
BECAUSE I KNOW THAT OUR CITY IS
FULL OF INNOVATIVE THINKERS,
WORLD CLASS BUSINESSES, CREATIVE
PEOPLE, NOT TO MENTION GREAT
BEAUTY. I KNOW WE ARE A
RESILIENT CITY AND WE WILL PLAN
FOR AND DEAL WITH THESE
EVENTUALITIES AS THEY COME, AS
WE HAVE IN THE PAST. I AM
PRIVILEGED TO WORK WITH, AS I
MENTIONED IN MY OPENING REMARKS,
A TEAM OF INCREDIBLY SMART
PEOPLE, NOT ONLY AT CBO, BUT
ESPECIALLY AT CBO, BUT
THROUGHOUT THE CITY. THE LEAD
SXRZ THE WORKERS OF THE CITY
HAVE INCREDIBLE RESILIENCE AND I
KNOW TOGETHER WITH THE
LEADERSHIP OF THE MAYOR, AND OF
YOU, THE CITY COUNCILMEMBERS, WE
WILL PREVAIL.
>> THANK YOU, APPRECIATE THE
RESPONSE. FOLLOW-UP QUESTION, OR
SAME QUESTION, BEFORE I MOVE ON
TO ANOTHER QUESTION. SO, TOTALLY
UNDERSTAND THE CIRCUMSTANCES
BEYOND OUR SPAN OF CONTROL, KEEP
YOU UP AT NIGHT, CAUSE, SOME
CONSTERNATION WITH YOU.
GENERALLY, THAT IS THE CASE WITH
ME AS WELL. JUST FOR WHAT IT IS
WORTH. WE CAN'T CONTROL THAT.
WE CAN'T CONTROL THOSE EXTERNAL
FACTORS WE CAN'T DIRECTLY
CONTROL THEM, BUT WE DO HAVE AN
ENORMOUS AMOUNT OF DIRECT
CONTROL AND INFLUENCE OVER ANY
NUMBER OF FACTORS AND THAT IS
WHAT I THINK, IN MY VIEW, WE
SHOULD BE SPENDING THE BULK OF
OUR TIME ON. SO, AGAINST THAT
BACKDROP, OF THOSE FACTS, AND
CIRCUMSTANCES THAT WE CAN
DIRECTLY CONTROL, AND LEVERS,
WHAT KEEPS YOU UP AT NIGHT FOR
THOSE CIRCUMSTANCES THAT WE CAN
CONTROL?
>> WELL, THE CITY BUDGET IS A
PLACE FOR US TO MAKE CHOICES
ABOUT HOW TO SPEND OUR LIMITED
RESOURCES. I THINK THAT IT IS
UNLIKELY THAT THE MAYOR'S
PROPOSED BUDGET IS GOING TO DIG
US OUT FROM UNDER A PROBLEM WE
HAVE IDENTIFIED IN MID APRIL OF
THIS YEAR, ABOUT $250 MILLION OF
REVENUES JUST DISAPPEARED FROM
THE ENDORSED AND ADOPTED BUDGETS
FOR 2025 AND 2026. WE AREN'T
GOING TO BE ABLE TO DIG
OURSELVES OUT MERELY BY REDUCING
SPENDING. I THINK WE ARE GOING
TO HAVE TO DO A VARIETY OF
STRATEGIES, WE ARE GOING TO HAVE
TO LOOK HARD AT WHAT THE MOST
EFFECTIVE WAY TO SPEND OUR MONEY
IS, AND WE MAY NEED TO MAKE SOME
REDUCTIONS IN THE KINDS OF
SERVICES THAT WE PROVIDE AND BE
MORE EFFICIENT IN THE DOLLARS
THAT ARE LEFT. AND WE ARE ALSO
GOING TO BE LOOKING AT, AS I
KNOW YOU HAVE LATER ON YOUR
AGENDA, THE POSSIBILITY OF
INCREASING THE AMOUNT OF
REVENUES WE HAVE TO WORK WITH.
IN COMBINATION AND STRIKING THE
RIGHT BALANCE, THAT IS THE HARD
WORK THAT POLICY LEADERS,
ELECTED OFFICIALS LIKE
YOURSELVES, AND THE MAYOR, ARE
GOING TO BE DOING STARTING
TODAY, BUT CONTINUING THROUGH
THIS BUDGET PROCESS. I LOOK
FORWARD TO SUPPORTING YOUR WORK
IN THAT REGARD.
>> THANK YOU.
>> FLIP SIDE OF THE COIN TO MY
EARLIER QUESTION, WHAT GIVES YOU
THE GREATEST HOPE FOR THE
FUTURE? FOCUSING ON THE THINGS
WE CAN CONTROL.
>> I FEAR REPEATING MYSELF
SOMEWHAT. I AM HOPEFUL IN THAT I
THINK WE ARE LED BY SMART
PEOPLE, WHO ARE INFORMED BY ALL
OF THE WORK THAT IS HAPPENING IN
THE DEPARTMENTS, AND OUTSIDE OF
THE CITY AS WELL. PEOPLE ARE
FREE WITH THEIR IDEAS AND THEY
ARE SMART IDEAS AND I AM HOPEFUL
THAT WE WILL MAKE WISE DECISIONS
ABOUT HOW TO SPEND SCARCE
RESOURCES MOVING FORWARD SO THAT
WE CAN ADDRESS THE MOST CRITICAL
NEEDS OF PEOPLE WHO LIVE, PLAY,
AND WORK HERE.
>> IN THIS ROLE, DIRECTOR EDER,
YOU HAVE ONE BOSS, THE
EXECUTIVE, THE MAYOR. YOU WOULD
BE ONE OF HIS 40-SOMETHING
DIRECT REPORTS, OR THROUGH, YOU
KNOW, HIS LEADERSHIP TEAM. SO,
YOU KNOW, IN EVERY JOB I HAVE,
ALWAYS IMPORTANT TO KEEP MY BOSS
HAPPY, RIGHT? BUT IN THIS, AS A
DEPARTMENT HEAD, YOU ARE ALSO IN
THE UNIQUE POSITION OF BEING
RESPONSIVE TO THIS BODY, MEMBERS
IN THIS BODY. MAYBE A GOOD
ANALOGY WOULD BE YOU HAVE SORT
OF A DOTTED LINE REPORTED
RELATIONSHIP TO EACH AND EVERY
ONE OF US IN THIS BODY. YOU HAVE
TO KEEP YOUR BOSSES, PLURAL,
HAPPY, UNDERSTANDING YOU HAVE--
IF THERE IS ANY CONMRIKT OR
TENSION, THERE IS ONE AND ONLY,
AND DURING THE AMENDED OR DURING
THE BUDGET PROCESS EVERY YEAR,
WE ADD VARIOUS COUNCIL AND
LEGISLATIVE PRIORITIES, AND
COLLECTIVELY, THE FINAL ADOPTIVE
BUDGET THAT THE MAYOR SIGNS INTO
LAW REFLECTS THE CITY'S
PRIORITIES, EXECUTIVE, COUNCIL,
EVERYBODY'S. RIGHT? SO, IN THIS
UNIQUE POSITION THAT YOU HAVE,
HOW WOULD YOU INSURE THAT YOU
ARE GOING TO BE AND REMAIN
RESPONSIVE TO ALL OF US? ALSO,
HOW WOULD YOU INSURE DURING THE
BUDGET PROCESS, AND AFTER,
DURING IMPLEMENTATION, AND
EXECUTION OF THE BUDGET,
DELIVERY OF THOSE BUDGET
PRIORITIES, THAT TO THE FULL
EXTENT POSSIBLE, ALL OF THE
PRIORITIES REFLECTED IN THAT
BUDGET, INCLUDING COUNCIL
PRIORITIES, ARE SPENT, AND
INVESTED IN?
>> THANK YOU FOR THAT QUESTION.
YOU HAVE JUST DESCRIBED HOW
CHALLENGING THIS JOB IS. AS
BUDGET DIRECTOR, HAVE MANY
BOSSES, THE MAYOR, I SERVE AT
THE PLEASURE OF THE MAYOR, AND
HE CAN CERTAINLY DECIDE WHEN I
AM NO LONGER DOING A GOOD ENOUGH
JOB TO STAY IN THE ROLE. BUT HE
IS NOT MY ONLY BOSS. I VIEW MY
RELATIONSHIP WITH THE CITY
COUNCIL AS BOSS LIKE, I AM
RESPONSIVE TO AND REPORT UP TO
YOU AS LEADERS OF THE CITY, JUST
AS I DO TO THE MAYOR. I KNOW
THAT IN ORDER TO MAKE THE KIND
OF HARD CHOICES THAT YOU ARE
CALLED ON TO MAKE EVERY DAY, YOU
NEED ENOUGH GOOD INFORMATION,
CRYSTALLIZED IN DIGESTIBLE WAYS
SO THAT IT IS USABLE AND IN THE
MOMENT, AND I WILL WORK TO MAKE
SURE TO CONTINUE MAKING SURE
THAT MY STAFF, IN COORDINATION
WITH YOUR CENTRAL STAFF, AND
YOUR LAs, AND YOU DIRECTLY, GET
EVERYTHING THAT YOU NEED IN
ORDER TO MAKE THOSE HARD
DECISIONS.
>> THANK YOU, THANK YOU FOR SOME
OF THE EARLIER INFORMATION YOU
SHARED WITH ME OFFLINE. ABOUT
SOME SPENDING WITHIN OUR
TRANSPORTATION NETWORK, WE WILL
BE ASKING CENTRAL STAFF EXPERTS
WITHIN THE DEPARTMENT TO WORK
CLOSELY WITH YOU IN YOUR OFFICE
TO PROVIDE A MORE WHOLESOME
ANALYSIS, CONTINUING YOUR
COLLABORATION ON ANYTHING
PERTAINING TO THAT AND OTHER
STUFF.
>>> FINAL QUESTION, THANK YOU
FOR YOUR INDULGEANCES, MR.
CHAIR. THIS IS AN IMPORTANT,
VERY IMPORTANT NOMINATION HERE.
IN ALL OF YOUR ACCOMPLISHMENTS
AND SUCCESSES, DIRECTOR EDER,
PROFESSIONALLY, PERSONALLY, IN
THE COMMUNITY, OVER MANY, MANY
YEARS AND DECADES, THAT IS A
GOOD THING, BY THE WAY, WISDOM.
>> NOT THAT OLD.
>> OVER ALL OF THAT YOU HAVE
ACCOMPLISHED IN LIFE, AGAIN,
PROFESSIONALLY, PERSONALLY, IN
THOOCOMMUNITY, WHAT
ACCOMPLISHMENT, SINGULAR
ACCOMPLISHMENT, ARE YOU THE MOST
PROUD OF? WHAT ARE YOU THE MOST
PROUD OF TODAY?
>> THAT IS A TOUGH QUESTION,
COUNCILMEMBER. I AM GOING TO SET
ASIDE THE PRIDE I HAVE AND LOVE
FOR MY FAMILY AND THOSE KIND OF
PERSONAL, PERSONAL LIFE
ACCOMPLISHMENTS. I WILL STICK TO
PROFESSIONAL ACCOMPLISHMENTS.
BECOMING THE BUDGET DIRECTOR, IF
THAT IS THE WILL OF THIS
COMMITTEE, AND ULTIMATELY THE
COUNCIL, WOULD BE THE CROWNED
JEWEL AND SORT OF THE
CULLMANATION OF THE WORK THAT I
HAVE DONE IN MY PROFESSIONAL
LIFE FOR DECADES NOW. IT WOULD
BRING TOGETHER THE STRENGTHS
THAT I HAVE FROM WORKING AT
SOUND TRANSIT FOR OVER A DECADE
WORKING FOR THE CITY COUNCIL,
WORKING IN THE MAYOR'S OFFICE
TWO AND A HALF YEARS AS POLICY
DIRECTOR, AND GIVE ME AN
OPPORTUNITY TO BRING TOGETHER
THE STRENGTHS, THE APTITUDES AND
ENERGY THAT I HAVE BEEN DRAWING
UPON FOR MANY YEARS AS I
MENTIONED, IN A WAY THAT I THINK
WILL BE MOST BENEFICIAL TO THE
CITY. IT GIVES ME A CHANCE TO
SERVE AND USE MY TALENTS IN A
WAY THAT I THINK SUPPORTS THE
ELECTED OFFICIALS, SUCH AS
YOURSELF, WHO ARE ULTIMATELY
MAKING THE CHALLENGING CHOICES
AND HELPING MOVE OUR CITY BEYOND
THE CHALLENGES THAT WE FACE TO
ACHIEVE THE BENEFITS AND THE
SERVICES THAT WE ALL ARE HERE TO
PROVIDE TO OUR FELLOW CITY
RESIDENTS.
>> THANK YOU. GOOD ANSWER, AND
YOU DON'T HAVE TO PUT YOUR
FAMILY ASIDE FOR PURPOSES OF
ANSWERING THAT QUESTION.
SPEAKING OF GENERATIONS, THAT IS
A CLASSIC GEN-X ANSWER, I WILL
SPEAK ALL ABOUT THE
PROFESSIONAL. ALL GOOD. BUT, SO
GREAT ANSWER. THANK YOU.
>> THANK YOU, COUNCILMEMBER
SAKA, AND LEGISLATIVE TSA.
ASTRED IS STILL A PRESENTER. I
THINK THEY HAVE ALREADY SPOKEN
FOR PUBLIC COMMENT. WITH THAT I
SEE COUNCILMEMBER KETTLE
FOLLOWED BY COUNCIL PRESIDENT
NELSON. COUNCILMEMBER KETTLE.
>> UM, THANK YOU, CHAIR STRAUSS.
I SHOULD NOTE FOR
CLAIRIFICATION, GIVING I, TOO,
AM A GEN-X ER. I WANTED TO THANK
MR. EDER FOR COMING TODAY, ALONG
WITH DEPUTY MAYOR WONG.
APPRECIATE IT, AS I APPRECIATE
THE VERY MANY, I DON'T KNOW HOW
MANY MEETINGS WE HAD OVER THE
LAST YEAR AND A HALF, BUT I
APPRECIATE THEM ALL AND THE
COUNCIL THAT YOU HAVE BEEN GIVEN
DURING THE COURSE OF ALL OF
THOSE MEETINGS, BIGGER TOPICS,
SMALL, AND ACROSS THE BOARD. AS
YOU KNOW MY APPROACH, LOOKING
FOR LONG TERM, STRATEGIC, HAVING
PLANNED FOR THAT, I RECOGNIZE
RECOGNIZE THERE ARE TRADE-OFFS,
I WAS WONDERING IF YOU COULD
SPEAK TO LONG-TERM STRUCTURAL
REFORM, LONG-TERM BUDGET
APPROACH, HOW DO WE SET
OURSELVES UP FOR 2027 AND
BEYOND? BUT AT THE SAME TIME THE
CHALLENGES OF DEALING WITH THE
DAY-TO-DAY, THE YEAR-TO-YEAR,
YOU KNOW, MORE TACTICAL, MORE
PRESENT CHALLENGES, CAN YOU
SPEAK TO THAT PROCESS AND THAT
CHALLENGE THAT WE HAVE IN TERMS
OF REALLY TRYING TO LOOK FORWARD
IN TERMS OF SETTING OURSELVES UP
FOR SUCCESS LONG TERM? BUT THE
CHALLENGE OF DEALING WITH THOSE
SHORT-TERM, YOU KNOW, POP-UPS
AND THE LIKE? CAN YOU SPEAK TO
THAT DYNAMIC?
>> IT IS ONE OF THE PARTS OF
OVER THE LAST YEAR AS I HAVE
BEEN WORKING AS INTERIM DIRECTOR
OF CBO, ONE OF THE PARTS OF THE
JOB THAT I LOVE THE MOST, THE
TENSION YOU ARE TALKING ABOUT
BETWEEN, THAT I KNOW YOU DEAL
WITH EVERY DAY AS WELL, DEALING
WITH THE PROBLEMS AS THEY ARISE
IN THE MOMENT, AND IMMEDIATE
DECISIONS THAT HAVE TO BE MADE
DAY TO DAY, WEEK TO WEEK, MONTH
TO MONTH, BY EVERY DEPARTMENT IN
THE CITY, WHETHER WE DECIDE TO
HIRE STAFF NOW IN THE FACE OF A
HIRING FREEZE, WE ARE LOOKING AT
WE ARE TRYING TO RESERVE MONEY
THIS YEAR SO THAT WE CAN LESSEN
THE IMPACT OF LOSS OF REVENUES
IN THE COMING BUDGET CYCLE. WE
ARE WEIGHING THE TRADE-OFFS OF
THE WORK THAT EACH DEPARTMENT'S
PROPOSED STAFF MEMBER WILL DO,
OR NOT DO, AGAINST THE LONGER
TERM NEED TO HAVE A BALANCED
BUDGET IN THE COMING CYCLE. THEN
THERE IS A THOUSAND DIFFERENT
EXAMPLES OF WHAT DEPARTMENTS ARE
LOOKING AT DAY-TO-DAY THAT NEED
INTERVENTION AND FROM BUDGET
OFFICE AND WEIGHING THAT AGAINST
THE LONGER TERM SUSTAINABILITY
AGAINST CITY FINANCES, WE ARE
LOOKING AT $100, $200 PLUS
MILLION DOLLARS OUT OFP $1.8
BILLION GENERAL FUND TOTAL
SPENDING ANNUALLY. THAT IS A BIG
PERCENTAGE. WE ARE TALKING ABOUT
A NEED FOR SOME STRUCTURAL
STRATEGY AND AS I MENTIONED
BEFORE I DON'T THINK THERE IS
ONE ANSWER, I THINK IT IS
MULTIPLICITY OF ANSWERS WHERE WE
ARE GOING TO BE REDUCING OUR
SPENDING AND THE SERVICES THAT
WE WILL BE MORE EFFICIENT WITH
THE RESOURCES THAT ARE LEFT BY
FOLDING TOGETHER DEPARTMENTS AND
WORKFORCE EFFICIENCIES AND WE
ARE LOOKING AT SOME NEW REVENUE
PROPOSALS THAT WILL BRING US
BACK INTO LONGER TERM BALANCE
WITH A RISING COST OF DELIVERING
SERVICES WE WILL CONTINUE TO
PROVIDE. HOPE THAT ANSWERS YOUR
QUESTION. I AM HAPPY TO ANSWER
FOLLOW UP.
>> I APPRECIATE THAT ANSWER, IT
KIND OF GETS TO IT IS COMPLEX
PIECE, AND I THINK WE CAN HAVE
BOTH THINGS IN HAND WHERE WE
HAVE THE STRATEGIC, KIND OF
LONGER-TERM FOCUS AND PLAN AT
THE SAME TIME, WORK THE
DAY-TO-DAY AS WELL; ON THE
DAY-TO-DAY, THAT IS TRANSITION
FOR ME, YOU KNOW, WHEN I SOUGHT
THIS OFFICE, I FOCUSED ON
PUCKLIC SAFETY, PUBLIC HEALTH,
AND HOMELESSNESS AND HOW THOSE
THREE ENTITIES INTERACTED. WE
HAVE BEEN WORKING THE PUBLIC
SAFETY PIECE QUITE A BIT, ALSO
NOW WORKING THE PUBLIC HEALTH
ANGLES TO THAT, AND IN TERMS OF
WHAT WE SEE ON OUR STREETS
TODAY. I RECOGNIZE-- I CAN'T
REMEMBER HOW IT WAS PHRASED BUT
IN TERMS OF WHAT WE ARE DOING
NOW IN TERMS OF DEALING WITH THE
DEFICIT CHALLENGES IS THE
PRIORITIZEATION ON THOSE
PROGRAMS. CAN YOU SPEAK TO THAT
BODY OF WORK? THAT AREA OF
INTEREST, THE MORE CURRENT
PIECE, PUBLIC SAFETY, PUBLIC
HEALTH AND HOMELESSNESS, IN
TERMS OF WHAT THE ADMINISTRATION
IS LOOKING TO DOER AND IS DOING
ON THAT FRONT?
>> THOSE ARE THREE OF THE TOP
PRIORITIES OF THIS
ADMINISTRATION AS WELL. SO WE
ARE CERTAINLY IN SYNC WITH YOU
ON THAT, COUNCILMEMBER. WITH
RESPECT TO PUBLIC SAFETY, JUST
ABOUT HALF OF THE GENERAL FUND
IS DEVOTED TO PAYING FOR POLICE,
FIRE, AND CARE. RESPONSE. SO WE
PRIORITIZE, WE PUT OUR MONEY
WHERE OUR MOUTH IS, AND HALF
GENERAL FUND PAYS FOR PUBLIC
SAFETY. WE ARE EXPERIENCING
EXCELLENT KIND OF PROBLEM, NOT
REALLY A PROBLEM EXCEPT
FINANCIALLY, SUBSTANTIAL
INCREASE IN THE NUMBER OF POLICE
OFFICERS, AND WE ARE
SIMULTANEOUSLY KEEP ING IN LINE
TEAM MEMBERS. GREAT FOR THE CITY
OF SEATTLE. IT DOES MEAN WE HAVE
TO PAY THOSE SALARIES AND
BENEFITS TO KEEP PEOPLE ABLE TO
LIVE AND WORK IN THE CITY. WE
NEED A SUSTAINABLE WAY TO
CONTINUE TO MAKE THOSE
INVESTMENTS TO DELIVER THOSE
SERVICES TO THE PEOPLE OF
SEATTLE. HOMELESSNESS IS A MAJOR
PROBLEM FOR THE CITY, AND IT IS
ONE WE HAVE BEEN ADDRESSING
THROUGH THE MAYOR'S THREE AND A
HALF YEARS OF HIS
ADMINISTRATION, AND WE MADE
GREAT STRIDES IN PROVIDING NEW
RESPONSES AND NEW SOLUTIONS FOR
PEOPLE EXPERIENCING HOMELESSNESS
AND FOR THE DISORDER THAT THAT
CAUSES ON THE STREETS AND IN THE
PARKS OF THE CITY. I AM PROUD OF
THE WORK WE HAVE DONE ON THAT
FRONT. WITH RESPECT TO PUBLIC
HEALTH, WE MADE INVESTMENTS IN
KCHRA AND KING COUNTY SEATTLE
PUBLIC HEALTH DEPARTMENT, AND WE
HAVE RAMPED UP OUR EFFORTS WITH
THE FIRE DEPARTMENT, WITH HEALTH
ONE AND OTHER PROGRAMS. I AM
VERY PROUD OF THE WORK THAT THIS
ADMINISTRATION HAS DONE AND WE
SHARE THE EMPHASIS THAT YOU HAVE
BEEN DESCRIBING AS THE TOP
PRIORITIES OF THE CITY.
>> THANK YOU, AND THERE HAS BEEN
QUITE A BIT. I THINK SOMEWHAT
UNDER APPRECIATED SOMETIMES
BECAUSE WE DON'T HAVE
CHALLENGES. WHERE WE WERE TWO
YEARS AGO TODAY, IT IS RELATIVE.
YOUR ANSWER LEADS ME TO MY NEXT
QUESTION, WHEN YOU BROUGHT UP
KING COUNTY, ON THE PUBLIC
SAFETY FRONT, PILLAR SIX
STREAMWORK PLAN IS IN GAUGING IN
A ONE SEATTLE WAY, MEANING THE
CITY NEEDS TO INSURE THE
EXECUTIVE AND LEGISLATIVE
BRANCHES ARE WORKING TOGETHER IN
A ONE SEATTLE WAY TO USE THE
MAYOR'S TERM, WHICH IS OUR TERM
NOW TO THE COUNTY AND THE STATE.
FOR EXAMPLE, YESTERDAY I HAD A
CONVERSATION, PHONE CONVERSATION
WITH MY COUNTERPARK, KING COUNTY
COUNCILMAN BUROAN, I AM CURIOUS,
PARTICULARLY HOW YOU FINISHED
THE LAST QUESTION, WHAT IS
ENGAGEMENT AND UNDERSTANDING IN
TERMS OF WHAT THE COUNTY IS
DOING AND WHAT THE STATE IS
DOING, IN TERMS OF BUDGET AND
HOW THAT INFORMS YOU, WHAT IS
THE RELATIONSHIP LIKE? IS THERE
DEEP COORDINATION? CAN YOU
CHARACTERIZE THE ENGAGEMENT WITH
THE COUNTY AND STATE? I KNOW
THERE IS FOCUS ON THE FEDERAL
BUT THAT IS ON ITS OWN. IT IS A
VERY DIFFERENT DYNAMIC WITH THE
COUNTY AND STATE. I WAS
WONDERING IF YOU COULD SPEAK TO
THAT PART.
>> SURE.
>> IN TERMS OF THE BUDGET, I
WORKED WITH DWIGHT DIVELY, HEAD
OF BUDGET SHOP AT KING COUNTY
FOR A COUPLE OF DECADES NOW,
BACK TO MANY YEARS WHEN HE WAS
THE CITY'S BUDGET DIRECTOR,
EXCELLENT RELATIONSHIP, HE WAS
AMONG THE FIRST CALLS I MADE
WHEN I STARTED AS INTERIM BUDGET
DIRECTOR TO MAKE SURE WE WERE IN
SYNC AND HAD OPEN LINES OF
COMMUNICATION TODAY. SO I AM-- I
CAN ONLY ANSWER FROM BUDGET
PERSPECTIVE, WE ARE TALKING
REGULARLY WITH COUNTERPART AT
KING COUNTY. I KNOW AFFAIRS
MAINTAINS COMMUNICATION
REGIONALLY AND SPECIFICALLY WITH
KING COUNTY GOVERNMENT AND OUR
DEPARTMENTS, ALSO VERY MUCH IN
SYNC, S-DOT, FOR INSTANCE, HAS
VERY, VERY CLOSE TIES TO KING
COUNTY TRANSPORTATION, IN
PARTICULAR, KING COUNTY METRO.
SO, YEAH, AT THE DEPARTMENT
LEVEL, BUDGET LEVEL, AT THE
ELECTED LEVEL, MAYOR, AND THE
COUNTY EXECUTIVE, ARE CERTAINLY
VERY MUCH COORDINATED ON
HOMELESSNESS RESPONSE, REGIONAL
TRANSPORTATION, AND A HOST OF
OTHER ISSUES.
>> I WILL ADD TO COUNCILMEMBER
KETTLE. I THINK YOUR QUESTION
GOES TO THE RELATIONSHIP BEYOND
THE BUDGET CONTEXT A LITTLE BIT.
I THINK WHAT YOU IDENTIFIED AND
CERTAINLY THE MAYOR HAS IS A LOT
OF THE ISSUES WE SEE ON OUR
STREETS, THAT WE AS A CITY
RESPOND TO, HAVE NEXUS TO PUBLIC
HEALTH ISSUES. THOSE ARE
CONCERNS FOR US AS A CITY. AS A
CITY, AS YOU KNOW, WE DON'T GET
ALL OF THOSE PUBLIC HEALTH
DOLLARS. THOSE HAVE
TRADITIONALLY BEEN THROUGH THE
COUNTY AND THROUGH THE STATE.
WHAT WE HAVE BEEN LOOKING TO DO
IS FIGURING HOW CAN WE BUILD
THOSE RELATIONSHIPS? BECAUSE WE
KNOW WE NEED TO WORK TOGETHER TO
ADDRESS THE PROBLEMS. WE CAN'T
DO IT IN A SILO, WE CAN'T SAY
THIS IS JUST SEATTLE'S PROBLEM,
OR JUST KING COUNTY'S PROBLEM
OR JUST THE STATE'S PROBLEM. I
THINK THIS STRUCK ME A LITTLE
EARLIER TODAY, AS I WAS READING
HEADLINES ABOUT MEDICAID IMPACTS
ON WASHINGTON STATE. SAW
HEADLINE LARGEST DECREASE IN
PEOPLE RECEIVING MEDICAID IN THE
NATION UNDER THE BILL THAT
UNITED STATES SENATE PASSED
YESTERDAY. SO AS WE SEE
INCREASED PRESSURES ON THE
HEALTH OF OUR POPULATIONS, THAT
ALSO INCREASES THE PRESSURE ON
US TO HAVE GOOD RELATIONSHIPS
AND COLLABORATIONS TO FIGURE
WAYS WE, AT THE LOCAL, COUNTY,
AND STATE LEVEL CAN PROVIDE FOR
OUR PEOPLE.
>> THANK YOU FOR THAT. SINCE YOU
RAISED THE POINT, I DO HAVE TO
SAY, BECAUSE WE ARE, FOR THE
PUBLIC, THAT IS MASSIVE THAT
POINT YOU MADE ABOUT MEDICAID. I
HAVE BEEN SPEAKING FOR A WHILE
ON THE PUBLIC SAFETY FRONT, IF
THESE MEDICAID CUTS GO THROUGH
THE WAY THEY ARE DESIGNED, AND
"REFORM" WHICH IS NOT REALLY
REFORM, IT WOULD HAVE MASSIVE
IMPACTS ON US. SO THIS IS WHERE
WE NEED TO BE THINKING AHEAD NOW
AND I HAVE ALREADY BEEN TALKING
TO DIFFERENT PEOPLE BECAUSE WE
NEED TO INSURE WE HAVE A SYSTEM
WHERE THOSE THAT ARE ON MEDICAID
AND, YOU KNOW, ARE NOT ABLE TO
WORK, AND WE ALL KNOW THE
CIRCUMSTANCES OF SOME OF THOSE
INDIVIDUALS, THAT IS COVERED
BECAUSE IF THE SYSTEM, WHICH IS
DEPENDENT ON MEDICAID, IF IT IS
CUT, WILL HAVE MASSIVE RIPPLE
EFFECTS. THE MORE WE WORK
TOGETHER NOW, BY THE WAY, THIS
IS NOT JUST WITH KING COUNTY AND
THE STATE, THIS IS NON-PROFITS,
ONE REASON I HAVE BEEN TALKING
LEAD AND OTHER GROUPS ON THE
PUBLIC SAFETY, YOU KNOW, THE
INTERFACE BETWEEN PUBLIC SAFETY
AND PUBLIC HEALTH, IT WILL BE
MASSIVE. SINCE YOU BROUGHT THAT
UP I NEEDED TO HIGHLIGHT THAT,
THAT WILL BE SO IMPORTANT THAT
WE CREATE A PROCESS NOW TO, YOU
KNOW, MITIGATE THAT CHALLENGE,
BECAUSE IT WILL BE NO OTHER WORD
THAN MASSIVE. SO THANK YOU FOR
THAT, AND SORRY, CHAIR, FOR THE
QUICK INTERLUDE THERE. I WANTED
TO ADD, I REALLY APPRECIATE YOU
WORKING CLOSELY WITH MR. DIVELY,
I KNOW HIM AS PROFESSOR DIVELY.
AND FROM A DECADE AGO. SO I
THINK THAT IS GREAT. I THINK
THAT IS REALLY IMPORTANT. I
REALLY APPRECIATE THIS KIND OF--
WE NEED TO BE PARTNERING AND
WORKING TOGETHER WITH THE
VARIOUS LEVELS OF GOVERNMENT,
PARTICULARLY IN THE FACE OF WHAT
IS HAPPENING IN WASHINGTON,
D.C.. I JUST WANTED TO CLOSE,
CHAIR, BY SAYING THAT I FOUND
MR. EDER TO BE A STAND-UP CIVIL
SERVANT WHO IS WORKING FOR THE
BEST FOR OUR CITY, AND I RESPECT
THAT AND SUPPORT HIM AND THIS
NOMINATION FOR CONFIRMATION.
THANK YOU, CHAIR.
>> THANK YOU, COUNCILMEMBER
KETTLE.
>> COUNCIL PRESIDENT NELSON.
>> WHAT IS THE STRUCTURALDEFICIT
? DO WE HAVE ONE?
>> I WOULD DESCRIBE A STRUCTURAL
DEFICIT AS SOMETHING THAT IS
LONG-TERM IN THE MAKING, AND
WILL TAKE SOME DEEP CHANGES TO
ADDRESS. I COO THINK WE HAVE
ONE, AND IN THE GENERAL FUND, IN
PARTICULAR. ONE OF THE MAJOR
REVENUES FOR THE GENERAL FUND IS
THE PROPERTY TAX. NOT THE
PROPERTY TACKS THAT ARE
LEVY-TYPE PROPERTY TAXES THAT
VOTERS APPROVE PERIODICALLY FOR
LIBRARIES AND TRANSPORTATION AND
HOUSING. THOSE ARE SPECIALIZED
FUNDS. THE KIND OF PROPERTY TAX
THAT GOES IN TO THE GENERAL FUND
IS THE KIND THAT IS ACTED ON
COUNCIL, FOR THE MOST PART, AND
IT HAS BEEN CAPPED BY STATE LAW
SINCE 2001 AT 1% GROWTH, PLUS
THE VALUE OF NEW CONSTRUCTION.
THAT HAS NOT KEPT UP WITH THE
RATE OF COST INCREASES THAT THE
GENERAL FUND PAYS FOR, AND AS I
MENTIONED EARLIER IN MY REMARKS,
ABOUT HALF OF THE GENERAL FUND
IS FOR SALARIES FOR POLICE
OFFICERS AND FIREFIGHTERS AND
CARE TEAM MEMBERS WHICH HAVE
RISEN BY INFLATION. SO, WHEN YOU
HAVE ONE OF THE MAJOR FUNDS
SOURCES IN THE GENERAL FUND
RISING AT A LOWER RATE THAN THE
RATE OF EXPENDITURES THAT THE
GENERAL FUND REVENUES NEED TO
PAY FOR, I WOULD DESCRIBE THAT
AS A STRUCTURAL BUDGET
CHALLENGE. WE HAVE BEEN ABLE TO
BUY OUR WAY OUT OF THAT
STRUCTURAL PROBLEM THROUGH SOME
SHORT-TERM BOONS. IT WAS A
SILVER LINING THAT THERE WAS
FEDERAL SUPPORT DURING THE VERY,
VERY DIFFICULT YEARS OF THE
COVID PANDEMIC. I WOULD RATHER
NOT HAVE HAD THE PANDEMIC. SINCE
WE HAD THE PANDEMIC AND
MUNICIPALITIES THAT WANTED TO
SUPPORT, WE HAD SIGNIFICANT,
HUNDREDS OF MILLIONS OF DOLLARS
OF ONE-TIME GRANT RESOURCES.
THAT HELPED US CONTINUE TO PAY
FOR COST OF DOING BUSINESS WITH
THE CITY. IN THE LAST YEAR'S
BUDGET CYCLE AND SEVERAL CYCLES
BEFORE THAT, HAVE USED ONE-TIME
ON UNCOMMITTED RESOURCES FROM
PAYROLL EXPENSE TAX TO HELP
SHORE UP THE GENERAL FUND. BUT
OUR UNEXPENDED FUND BALANCE FROM
THE PAYROLL EXPENSE TAX HAS BEEN
EXPENDED AND WILL BE BY THE END
OF 2026, STARTING 2027, THAT
PUTS US IN A DEFICIT EXPECTATION
THAT I DON'T HAVE AN
EXPECTATION THAT WE WILL REDUCE
SPENDING ENOUGH TO ADDRESS. I
THINK WE WOULDN'T LIKE THE CITY
THAT LEAVES THE DEARTH OF
SERVICES THAT WOULD RESULT, I
DON'T THINK WE WOULD ALL
COLLECTIVELY LIKE THAT, SO THAT
IS WHY THE MAYOR HAS PROPOSED IN
CONJUNCTION WITH COUNCILMEMBER
RINK, SOME IDEAS FOR HOW WE CAN
HAVE NEW REVENUES.
>> I ASK THAT, YOU PROBABLY
UNDERSTAND WHY I ASKED THAT, WE
USE THE PHRASE STRUCTURAL
DEFICIT A LOT. IT SOUNDS SCARIER
OR WORSE THAN DEFICIT. IT
IMPLIES THAT THERE IS SOMETHING
INTRINZICALLY WRONG THAT WE ARE
ALWAYS GOING TO, OUR BALANCE,
REVENUES AND COSTS WILL ALWAYS
BE OUT OF BALANCE, USUALLY I AM
NOT AN ECONOMIST, BUT MY
UNDERSTANDING IS USUALLY
STRUCTURAL BALANCE IS ATTRIBUTED
TO WHEN AT FULL EMPLOYMENT AND
YOU ARE STILL-- THERE IS STILL
AN IMBALANCE ON THE NEGATIVE
SIDE. SO, IMPLYING SOMETHING
THAT ONE CANNOT CHANGE. I
SUPPOSE THE TAX STRUCTURAL OF
WASHINGTON STATE, BECAUSE OF THE
1% LIMIT, COULD, I DON'T KNOW
IF THAT WOULD COUNT CONTRIBUTING
TO STRUCTURAL AS UNCHANGEABLE,
BUT THE POINT THIS COUNCIL MUST
MAKE CHANGES, THE MAYOR AND
BUDGET DEPARTMENT TOO. I AM
ALWAYS WANTING TO MAKE SURE YOU
DO LOOK AT THE PROS AND CONS OF
THE DECISIONS WE WILL BE SEEING
COMING DOWN THE PIKE. HAVE YOU
LOOK ED AT THE REASONS FOR--
HAVE YOU-- HOW DEEP HAVE YOU DUG
INTO THE REASON REVENUES ARE
DOWN? BECAUSE, YOU KNOW, YOU
ANSWER-- YOU PAUSE MANY REASONS
IN YOUR RESPONSE, BUT IS IT
BECAUSE OF DECLINING EMPLOYEES
HERE IN SEATTLE.
>> THE NEWS THE CITY GOT IN MID
APRIL FROM THE OFFICE OF
ECONOMIC AND REVENUE FORECAST,
THE INDEPENDENT OFFICE THAT DOES
THE FORECAST FOR OUR REVENUES
FOR UP COMING YEARS. I HAVE
SPOKEN TO THE DIRECTOR OF SHGS
ERF TO ASK THAT VERY QUESTION,
ANDER THE FORECAST THAT VERY
QUESTION. THE PAYROLL EXPENSE
TAX HAS HAD A DEEP DECLINE IN
THE 2025 AND 2026 EXPECTED
REVENUES COMPARED TO WHAT WE ALL
COLLECTIVELY WERE COUNTING ON IN
THE ADOPTED 2025 BUDGET AND
ENDORSED 2026 BUDGET. IT IS OVER
$200 MILLION JUST IN THOSE TWO
YEARS FOR THE GENERAL FUND, AND
THE P.E.T. COMBINED. MOST, $167
MILLION, IS FROM P.E. T.,
PAYROLL EXPENSE TAX. MY
UNDERSTANDING FROM OERF IS THEY
BELIEVE THERE ARE TWO MAIN
SOURCES OF, OR TWO MAIN
CONTRIBUTORS TO THE DECLINING
FORECAST OF REVENUES. THE FIRST
IS THAT A LOT OF THE PAYROLL
EXPENSE TAX IS PAID FOR BY TECH
COMPANIES, BIG TECH COMPANIES,
WHO PAY THEIR WELL-COMPENSATED
EMPLOYEES IN LARGE PART BASED ON
THE VALUE OF THEIR STOCK, AND
THE TIME THE APRIL FORECAST CAME
OUT, THERE HAD JUST BEEN SEVERAL
MONTH PERIOD WHERE TECH STOCKS
WERE IN SIGNIFICANT DECLINE.
THAT IS ONE MAIN REASON WHY THE
PAYROLL EXPENSE TAX, WHICH IS
PAID AS A MEASURE OF WHAT
BUSINESSES ARE PAYING THEIR
EMPLOYEES, FOR TECH EMPLOYEES,
THAT IS TECH STOCK VALUE DRIVEN.
THE SECOND MAIN COMPONENT OF THE
DECLINE IN REVENUES IS THAT WE
ARE NOT GROWING AND, IN FACT,
ARE SHRINKING IN THOSE SAME
LARGE TECH EMPLOYEES, THE NUMBER
OF EMPLOYEES WHO WORK IN
SEATTLE. THAT THEY ARE FLAT, OR
DECREASING AND INCREASING IN
OTHER PARTS OF WASHINGTON STATE
AND OTHER CITIES. THOSE TWO
FACTORS COMBINED WILL HAVE
INDEPENDENT OFFICE OF ECONOMIC
AND REVENUE FORECAST DETERMINE
THEY ARE NOT GOING TO GET AS
MUCH PAYROLL EXPENSE REVENUE IN
2025 OR 2026 AS PREVIOUSLY
EXPECTED.
>> DID YOU SAY THAT THE NUMBER
OF EMPLOYEES IS GOING DOWN IN
BELLEVUE AS WELL?
>> NO. SORRY, IF I SAID THAT I
WAS MISSTATEMENT ON MY PART.
FLAT OR DECREASING IN SEATTLE,
INCREASING OUTSIDE OF SEATTLE.
>> SUGGESTING THOSE EMPLOYEES
ARE BEING MOVED TO OUTSIDE THE
CITY TO BELLEVUE?
>> YES, THAT IS RIGHT.
>> OKAY.
>> WE WILL FOLLOW UP AS TO YOUR
THOUGHTS ON WHY THAT IS LATER.
THANK YOU.
>> VERY GOOD.
>> THANK YOU, COUNCIL PRESIDENT,
COUNCILMEMBER SAKA.
>> THANK YOU, MR. CHAIR. A QUICK
FOLLOW-UP ON THE EARLIER LINE OF
QUESTIONING. YOU INDICATED THAT
TECH STOCK VOLATILITY,
ESPECIALLY IN EARLIER THIS YEAR,
APRIL TIMING, THAT HAD-- THAT
WAS A CONTRIBUTING FACTOR TO THE
BLEAK FORECAST. SINCE THEN MANY,
MOST OF THE TECH STOCKS HAVE
REBOUNDED, MICROSOFT, FOR
EXAMPLE. I JUST LOOKED $380 PER
SHARE LOW END, APRIL, NOW IT IS
ALMOST $500 PER SHARE. THAT IS
JUST ONE EXAMPLE. HOW DO YOU
ACCEPT A POTENTIAL REBOUNDING
EFFECT OF STOCKS OF A STOCK
MARKET LOCALLY TO IMPACT THE
NEXT FORECAST, AND THEREFORE THE
BUDGET, THE PROPOSED BUDGET.
>> I WISH I HAD A CRYSTAL BALL,
THAT REALLY IS A QUESTION FOR
THE INDEPENDENT OFFICE OF
ECONOMIC AND REVENUE FORECAST,
THEY WILL ULTIMATELY ANSWER THAT
QUESTION IN AUGUST. WE WILL GET
ANOTHER FORECAST THAT IS WHAT
WILL INFORM THE MAYOR'S
PROPOSED BUDGET AND THERE WILL
BE YET ONE MORE FORECAST THAT
COMES IN LATE OCTOBER, THAT
INFORMS THE COUNCIL'S
DELIBERATIONS AND ULTIMATELY
ADOPTION OF THE 2026 BUDGET. I
THINK IT COULD BE GOOD NEWS, IT
COULD BE NEUTRAL, BECAUSE THERE
ARE OTHER FACTORS AT AND COULD
BE BAD NEWS FOR GENERAL FUND IN
THE UPCOMING FORECAST. I DO NOT
KNOW WHAT THE ANSWER WILL BE.
>> THANK YOU.
>> THANK YOU, COUNCILMEMBER
SAKA. MY QUESTIONS WERE MOSTLY
ASKED, I HAVE TWO FOLLOW-UPS
HERE, ONE THAT YOU AREN'T
EXPECTING. ONE OF THE QUESTIONS
WHICH YOU ANSWERED, ASKING YOU
IN WRITING, WHAT CRITERIA DO YOU
AND YOUR TEAM USE TO EVALUATE
PROGRAM EFFECTIVENESS AND THE
LEVEL OF FUNDING THAT THEY
RECEIVE?
>> UM, THANK YOU FOR THE
QUESTION, CHAIR STRAUSS. AS I
NOTED IN MY WRITTEN ANSWER TO
THAT QUESTION, I THINK THERE ARE
SORT OF ONE HOST OF COLLECTION
OF QUESTIONS THAT NEEDS TO BE
ASKED IF WE ARE ADDING A NEW
PROGRAM, AND THERE I WOULD FOCUS
ON TRYING TO DETERMINE IF WE
WERE TO ADD THIS NEW BOOK OF
BUSINESS THAT WE ARE NOT
CURRENTLY EMPLOYED IN, HOW WILL
WE DETERMINE AND MEASURE SUCCESS
FOR THAT PROGRAM? HOW SHOULD WE
SCALE THE PROGRAM TO GET STARTED
AND LEAVE ROOM FOR GROWTH IF THE
PROGRAM IS SUCCESSFUL? HOW DOES
THE CHANGE ADDRESS DESPAIRTIES
IN THE POPULATION? I THINK THOSE
ARE THE KINDS OF QUESTIONS YOU
ASK FOR A NEW PROGRAM. THERE IS
ALSO QUESTIONS WHICH I THINK WE
WOULD WANT TO ASK OURSELVES
WHEN, AS WE ARE CURRENTLY DOING,
WE ARE THINKING ABOUT HOW DO WE
SCALE DOWN THE BUSINESS THAT THE
CITY IS ALREADY EMPLOYED IN?
HERE, I WOULD WANT TO FOCUS ON
WHICH MEMBERS OF THE COMMUNITY
WILL BE MOST IMPACTED BY A
REDUCTION, CAN THE DEPARTMENT
MAINTAIN THE CURRENT LEVEL OF
SERVICE WITH FEWER STAFF
MEMBERS? AND IS THE PROGRAM THAT
WE ARE CURRENTLY DELIVERING
SERVICES ON STILL MEETING ITS
ORIGINAL PURPOSE AND INTENT? OR
HAS ITS PRIORITY, PERHAPS,
CHANGED? THESE ARE THE KIND OF
QUESTIONS AND CATEGORIES OF
QUESTIONS DEPENDING ON WHICH
BUCKET WE FIND OURSELVES IN,
ADDING A NEW PROGRAM OR LOOKING
FOR WAYS AS WE ARE CURRENTLY TO
REDUCE SPENDING AND THE SERVICES
THAT ARE SUPPORTED BY THAT
SPENDING.
>> THANK YOU. MY FINAL QUESTION
I SEE COUNCIL PRESIDENT HAS A
NEW HAND DEEP IN YOUR
APPOINTMENT PACKET YOU NOTE YOU
WORKED FOR SOUND TRANSIT BETWEEN
1997 AND 2007, THAT WAS FOR
COLLEAGUESED THAT MAY OR MAY NOT
BE FAMILIAR, 1997 TO 2000 WAS
ENTERING INTO A STORM FOR SOUND
TRANSIT THAT LED TO A
REIDENTIFYING PATHWAY FORWARD
THAT HAS GOTTEN US TO WHERE WE
ARE TODAY. CAN YOU SHARE WHAT
DID YOU LEARN FROM THAT
EXPERIENCE? I DON'T NEED YOU TO
GO INTO DUTIES AS OTHERWISE
ASSIGNED, WHICH WILL BE TO HELP
US GET THROUGH THE NEXT ROUND OF
SOUND TRANSIT THROUGH THE CITY
OF SEATTLE. WHAT WERE THE
LESSONS LEARNED FROM THAT TIME?
>> THANK YOU FOR THE QUESTION.
AT SOUND TRANSIT I WAS FOR MOST
OF THE TIME WORKING AS A PROJECT
MANAGER. I WAS DEVELOPING
CAPITAL PROJECTS, TRANSIT
CENTERS, PARK AND RIDES, HOV
RAMPS, HIGH OCCUPANCY VEHICLE
RAMPS. ONE COMMUTER RAIL STATION
UP IN MUKILTEO. IT WAS MY FIRST
JOB WORK ING IN THE PUBLIC
SECTOR, AND I THINK THE LESSONS
I LEARNED THERE WERE NOT ONLY
THAT IT IS REALLY HARD TO BUILD
ANYTHING, BUT ALSO WHAT PREPARED
ME FOR WORK ULTIMATELY HERE AT
THE CITY WAS THE WORK THAT I DID
WITH THE ELECTED OFFICIALS ON
THE BOARD OF SOUND TRANSIT. WE
ARE ALL SEPARATELY ELECTED
OFFICIALS AND THE MAYORS AND
CITY COUNCILMEMBERS AND THE LIKE
THROUGHOUT THE REGION WHO HAVE
BEEN APPOINTED TO SERVE ON THE
BOARD OF SOUND TRANSIT. I BEGAN
TO GET AN APPRECIATION FOR THE
CHALLENGING ROLE THAT IT IS TO
BE AN ELECTED OFFICIAL, AND ALSO
HOW EXCITING AND INTERESTING IT
IS TO WORK IN THAT REALM, TO
SUPPORT THE DECISION MAKING THAT
THE BOARD DOES, THAT THE CITY
COUNCIL DOES, THAT THE MAYOR
DOES, AND IS AN OPPORTUNITY
ULTIMATELY TO MAKE OUR REGION
AND OUR CITY AN EASE Y BETTER
PLACE TO LIVE AND I AM PROUD TO
BE MAKING A CONTRIBUTION IN THAT
REGARD.
>> THANK YOU. LOOK FORWARD TO
FOLLOWING UP AND MORE ON THAT.
>> WHAT WAS THE UNDERSPEND LAST
YEAR? WHAT IS THE PROJECTED
UNDERSPEND IN 2025, IF THAT IS
IMPOSSIBLE TO SAY, WHAT IS IT
RIGHT NOW?
>> THE UNDER SPEND LAST YEAR FOR
2025 WAS-- I MISSPOKE, 2024 WAS
67-- LET ME START AGAIN. IN
2024, OUR UNDERSPEND WAS $67
MILLION. THAT MONEY THAT WE
DIDN'T SPEND, BUT WAS
APPROPRIATED IS NET OF ANY
AMOUNT THAT WE CARRIED FORWARD,
OR PROPOSED TO CARRY FORWARD,
FOR FUTURE SPENDING THIS YEAR
AND BEYOND. THAT MONEY LAPSED
INTO OUR GENERAL FUND AND
PAYROLL EXPENSE FUND AND
AVAILABLE TO HELP ADDRESS THE
DEFICIT THAT WE ARE FACING THIS
YEAR AND NEXT. WE ARE IN THE
PROCESS OF DETERMINING WHAT THE
UNDERSPEND WILL WE THIS YEAR. WE
ARE NOT WAITING. FOR 2025 WE ARE
NOT WAITING UNTIL THE END OF
2025 TO SORT OUT WHAT THE
UNDERSPEND WILL BE. THAT IS WHAT
WE HAVE HISTORICALLY DONE AS A
CITY. THIS IS UNUSUAL TIMES. WE
HAVE ENGAGED WITH EACH
DEPARTMENT, GIVEN THEM A TARGET
AND ASKED THEM TO GIVE US
STRATEGIES AND APPROACHES TO
MEET AND UNDERSPEND TARGET THIS
YEAR, AFFIRMATIVELY, NOT JUST
HAVE IT HAPPEN TO US. WE ARE
LOOKING AT TENS OF MILLIONS OF
DOLLARS BUT HAVEN'T DETERMINED
EXACTLY WHAT THE NUMBER WILL BE.
ANY NUMBER THAT WE USE, THAT WE
CAN ARRIVE AT AND BE CONFIDENT
THAT WE HAVE A STRATEGY FOR
UNDERSPENDING THIS YEAR'S
APPROPRIATIONS OUR FORMAL
SPENDING AUTHORITY, ALSO BECOMES
A RESOURCE TO HELP ADDRESS THE
BUDGET DEFICIT IN 2026. I DON'T
HAVE A FINAL NUMBER FOR THIS
YEAR YET BUT WE WILL HAVE ONE
AND I WILL BE ABLE TO ANSWER
THAT QUESTION BY THIS FALL'S
BUDGET PROCESS. UNLIKE LAST YEAR
WE HAD TO WAIT UNTIL ALL OF THE
SPENDING WAS DONE BY THE END OF
THE YEAR TO DETERMINE WHAT THE
UNDERSPEND NET OF CARRY FORWARD
WAS.
>> THANK YOU.
>> THANK YOU. COLLEAGUES, ARE
THERE ANY OTHER QUESTIONS FOR
INTERIM DIRECTOR EDER? A TITLE
THAT WILL NOT LAST MUCH LONGER
SEEING AS THERE ARE NO FURTHER
COMMENTS. WITHOUT FINAL COMMENTS
BEFORE WE MOVE FORWARD, I WOULD
LIKE TO RECOMMEND THE
CONFIRMATION OF APPOINTMENT
3189, DAN EDER,. IS THERE A
SECOND?
>> SECOND.
>> IT HAS BEEN MOVED AND
SECONDED TO RECOMMEND
CONFIRMATION OF APPOINTMENT
3189. ANY FINAL COMMENTS? SEEING
NO FINAL COMMENTS, WILL THE
CLERK PLEASE CALL THE ROLL ON
RECOMMEND AGDZ TO CONFIRM
APPOINTMENT 3189?
>> COUNCILMEMBER KETTLE?
>> AYE.
>> COUNCILMEMBER SAKA?
>> AYE.
>> COUNCIL PRESIDENT NELSON?
>> AYE.
>> CHAIR STRAUSS?
>> YES.
>> THAT IS FOUR IN FAVOR, 0
OPPOSED.
>> THANK YOU. THE COMMITTEE
RECOMMENDATION APPOINTMENT 03189
WILL BE CONFIRMED SENT TO JULY
8th CITY COUNCIL MEETING AND
DIRECTOR EDER, THERE IS A SMALL
CHANCE I WON'T BE AT THE JULY
8th CITY COUNCIL MEETING BUT I
WILL HAVE COLLEAGUES SPEAK ON MY
BEHALF IN SUPPORT OF THIS
CONFIRMATION.
>> THANK YOU ALL FOR YOUR
SUPPORT, I REALLY APPRECIATE IT.
>>> WE WILL MOVE ON TO OUR
SECOND AGENDA ITEM. WILL THE
CLERK READ SHORT TITLE OF IM TWO
INTO THE RECORD?
>> COUNCIL BILL 121012,
ORDINANCE RELATING TO THE
FINANCING OF SEATTLE SOCIAL
HOUSING DEVELOPER AUTHORIZING
THE DIRECTOR OF FINANCE TO ENTER
INTO LOANGREEMENT WITH SEATTLE
SOCIAL HOUSING DEVELOPER
AUTHORIZING A LOAN OF FUNDS IN
AMOUNT UP TO $2 MILLION AS A
BRIDGE FINANCING TO BE REPAID
FROM FUTURE TAX PROCEEDS AND
CONFIRMING CERTAIN PRIOR ACTS,
FOR BRIEFING DISCUSSION POSSIBLE
VOTE. PRESENTERS INCLUDE JEREMY,
DIRECTOR OF THE OFFICE OF CITY
FINANCE, CHRISTIAN, OF THE
MAYOR'S OFFICE, HUMIN EZ, CEO
OF THE SOCIAL HOUSING AND
JENNIFER OF COUNCIL CENTRAL
STAFF.
>> THANK YOU.
>> WE WILL HAVE PRESENTERS
INTRODUCE THEMSELVES. I BELIEVE,
DOUBLE CHECKING THIS, YES. DO
YOU HAVE A PRESENTATION FOR
TODAY?
>> WE DO NOT. WE ASSUMED CENTRAL
STAFF WAS TAKING THE LEAD TODAY.
>>
>> NOPE. DO YOU HAVE A
PRESENTATION FROM THE LAST TIME
YOU WERE HERE?
>> WE SUBMITTED ONE SEVERAL
WEEKS AGO WHEN WE WERE HERE LAST
TIME.
>> OKAY. I WILL TAKE JUST A
MOMENT TO PULL THAT UP. WE ARE
GOING TO TICK THROUGH IT AGAIN,
WHILE I AM PULLING THAT UP, IF
YOU COULD GO DOWN THE LINE AND
INTRODUCE YOUR SELVES AND THEN
WE WILL GET INTO THE MEAT OF
THIS.
>> CHRIS, MAYOR'S OFFICE.
>> ROBERTO, CEO SEATTLE SOCIAL
HOUSING.
>> JAMIE, CITY FINANCE DIRECTOR.
>> HI, JENNIFER, CITY COUNCIL
CENTRAL STAFF.
>> THANK YOU. WE ARE JUST
PULLING UP THE PRESENTATION FROM
JUNE 18th COMMITTEE MEETING TO
REFRESH FOLKS. NO NEED TO
RE-CREATE A NEW POWER POINT. WE
DON'T HAVE TO GO THROUGH THE
PRESENTATION TO THE SAME LEVEL
OF DEGREE, I KNOW WITH THE LAST
COMMITTEE MEETING WE WERE
RUNNING SHORT ON TIME SO
MAJORITY OF THIS WILL BE ON FOR
QUESTIONS. I WOULD SAY IF YOU
WANTED TO FOCUS ON SLIDE FOUR
AND FIVE AND THEN OPEN FOR
COUNCILMEMBER QUESTIONS AT THIS
TIME. I WILL PASS IT OVER TO
YOU, OPENING REMARKS FROM ANYONE
SITTING AT THE TABLE?
>> YES. THANKS, CHAIR. WE WERE
HERE AT THE LAST COMMITTEE GOING
OVER SOME OF THE HISTORY OF THE
SOCIAL HOUSING PDA, TALKING THE
NEED TO PROVIDE A BRIDGE LOAN
UNTIL THE NEW REVENUE SOURCE
COMES IN, EXPECTED FIRST QUARTER
OF NEXT YEAR, THEN TO TALK
SPECIFICALLY ABOUT THE TERMS OF
THE LOAN THAT WE ARE PROPOSING
TO PROVIDE TO THE PDA. SO, WITH
THAT, AND THEN WE HAVE THE
EXECUTIVE DIRECTOR HERE TODAY
WHO IS HAPPY TO TAKE QUESTIONS
YOU MAY HAVE FOR HIM. I WOULD
LIKE TO TURN IT OVER TO THE
DIRECTOR WHOSE OFFICE WILL BE
THE DEPARTMENT ENTERING INTO THE
ACTUAL LOAN AGREEMENT WITH THE
PDA, AND SHE CAN SPEAK A LITTLE
BIT MORE SPECIFICALLY ABOUT THE
LOAN TERMS WE ARE PROPOSING.
>> THANK YOU.
>> AS WE DISCUSSED BEFORE WHEN
WE WERE HERE, THIS IS THE
PROPOSED LEGISLATION REALLY DOES
AUTHORIZE THE CITY, DIRECTOR OF
FINANCE, TO ENTER A LOAN
AGREEMENT WITH THE PDA, ALLOW
THE PDA TO CONTINUE OPERATIONS
UNTIL THE TAX RESERVES COME IN .
THIS LOAN IS REALLY THE MOST
EFFICIENT AND FINANCIALLY
RESPONSIBLE WAY TO PROVIDE THAT
INTERIM OR BRIDGE FUNDING TO THE
PDA SO IT IS ABLE TO CARRY OUT
ITS MISSIONS. GETTING MORE INTO
THE DETAILS, THIS IS A LOAN THAT
IS NOT TO EXCEED $2 MILLION VIA
DISPERSEMENT WITH PDA. CRUDE
RATE OF RETURN 3.65, THE RATE WE
HAVE ON OUR CASH FLOW, WE NEED
TO MAINTAIN, ONCE THE LOAN COMES
IN, THE PAYMENTS COME BACK IN.
WE WILL GO AHEAD AND DEDUCTS
AMOUNTS NECESSARILY ONCE THE
TAXES COME IN FIRST QUARTER. WE
WILL TAKE THE PAYMENTS OFF THE
TOP AND CONTINUE TO INTERCEPT,
WHICH IS NOT THE GREATEST WORD,
BUT WE WILL CONTINUE TO USE THE
TAX PROCEEDS COMING IN UNTIL THE
LOAN PRINCIPLE AND INTEREST HAS
BEEN REPAID AND WE EXPECT THAT
FULLY REPAID FROM THE 2025 TAX
PROCEEDS AND THE LOAN MATURITY
IS DECEMBER 1, 2026, TO GIVE
AMPLE TIME FOR THE TAX PROCEEDS
TO COME IN AND FOR THE LOAN TO
BE REPAID.
>> THANK YOU, DIRECTOR. I WILL
CALL ON JENNIFER FROM OUR CITY
COUNCIL CENTRAL STAFF TO PROVIDE
CONTEXT OR ANALYSIS FROM THE
CITY.
>> I DO NOT HAVE MUCH TO ADD
HERE. I THINK I MENTIONED LAST
TIME I HAD DONE MY OWN SEPARATE
ANALYSIS OF SOCIAL DEVELOPER
CASH FLOW POSITION AND CONCURED
THAT THE LOAN IS NEEDED IN ORDER
FOR THEM TO ESSENTIALLY MEET
EXISTING OPERATIONAL COSTS AND
CERTAINLY IF THEY WANT TO BE
ABLE TO GROW THE ORGANIZATION TO
PREPARE FOR RECEIVING THE
ADDITIONAL TAX REVENUE IN 2026.
>> THANK YOU.
>> WITH THAT, I WILL TURN IT TO
ROBERTO FOR SHORT INTRODUCTION,
I WILL PROMPT YOU WITH A COUPLE
QUESTIONS, WHAT DOES SUCCESS
LOOK LIKE FOR THE PDA? WHAT ARE
YOU PLANNING TO SPEND THE MONEY
ON? WHAT HAPPENS IF ARE WE
DON'T APPROVE THIS LOAN TODAY?
>> THANK YOU. I WAS HIRED LAST
SEPTEMBER, SO WE ARE COMING UP
ON TEN MONTHS EMPLOYMENT. WE
HAVE MADE GOOD PROGRESS. IN MAY
WE PASSED, ADOPTED OUR FIRST
THREE-YEAR STRATEGIC PLAN,
ADOPTED UNANIMOUSLY BY BOARD OF
DIRECTORS. WE ARE CURRENTLY
WORKING ON THE WORK PLAN OR
OPERATING PLAN TO SUPPORT THAT
OVER THE NEXT THREE YEARS. AND
THIS WEEK, PARTICULARLY,
FOCUSING ON THE THREE-YEAR
BUDGET TO SUPPORT THAT WORK. THE
WORK, TO SOME DEGREE, HAS BEEN
QUITE SLOW. I AM THE ONLY STAFF
PERSON TO DATE. THE RESOURCES
WOULD BE USED FOR STAFFING. IT
PUT PRESSURE ON THE BOARD TO BE
ENGAGED, VERY MUCH A WORKING
BOARD. THE RECENT APPOINTMENT BY
MAYOR HARRELL OF BRIAN OBEAL,
RECENTLY APPOINTED TREASURER OF
THE BOARD, IS A REALLY SOUND
APPOINTMENT AND HE BRINGS A LOT
OF FINANCIAL SKILL FROM HIS
YEARS IN FINANCE, PARTICULARLY
AT BOEING. SO, THE MAJOR FOCUS
OVER THE NEXT SIX MONTHS WILL BE
HIRING OF STAFFING, FINALIZING
THE WORKPLAN, ADDITIONAL WORK OF
SYSTEMS INTERNALLY, FINANCIAL
SYSTEMS, MANAGEMENT SYSTEMS, WE
WILL BE BUILDING OUT A PROPERTY
MANAGEMENT COMPANY THAT WON'T
HAPPEN IMMEDIATELY, BUT WE STILL
HAVE TO THINK THROUGH WHAT THOSE
SYSTEMS WILL LOOK LIKE, AND WHAT
THE NEEDS ARE. WE HAVE FOUR
PROPERTIES THAT WE ARE CURRENTLY
REVIEWING, ASSESSING FOR
FEASIBILITY, THEY ARE ALL
SUBSTANTIAL PROPERTIES AND ALL
SPREAD ACROSS THE CITY. WE HOPE
TO HAVE ONE PROPERTY UNDER
CONTRACT BY THE END OF THE YEAR,
AND WE ARE ON SCHEDULE TO DO
THAT. WE PLAN TO HAVE TWO OTHER
S UNDER CONTRACT BY THE END OF
2026. THAT IS A LOT OF REAL
ESTATE DEVELOPMENT WORK, LOT OF
FINANCIAL WORK, AND A LOT OF
RELATIONSHIP BUILDING WITH A LOT
OF FOLKS. WE ARE CURRENTLY
TALKING WITH DAFLCIO, WHO HAS A
SUBSTANTIAL HOUSING TRUST FUND
$7 BILLION, THEY WILL LEND UP TO
$300 MILLION FOR ANY PARTICULAR
PROPERTY BUT WE ARE ALSO TALKING
WITH KEY BANK AND COLLIER'S AND
OTHER MORE BUSINESS-ORIENTED
FOLKS, COMMERCIAL LENDERS. I
ALSO THINK WE ARE-- KNOW THAT WE
ARE WORKING ON GOVERNANCE AND
SUPPORT FOR THE BOARD OF
DIRECTORS. SO, BUILDING STRONGER
RECRUITMENT PLANS, ONBOARDING
PLANS, AND ONGOING TRAINING
PLANS TO SUPPORT THAT.
>> THANK YOU. I WILL CHECK IN TO
SEE IF YOU HAVE QUESTIONS, I
HAVE A FEW, I ALWAYS LIKE TO LET
MY COLLEAGUES GO FIRST, AS PER
ROBERT'S RULES. THANK YOU,
COUNCIL SAKA.
>> THANK YOU, MR. CHAIR. CAN YOU
HELP ME BETTER UNDERSTAND THE
SLIDE FIVE SPECIFICALLY THAT
TIMING BULLET? AM I READING THAT
RIGHT? WE EXPECT AS A CITY, THE
PRINCIPLE AND INTEREST FULLY
REPAID BY JANUARY 2026?
>> WE HOPE IT IS FULLY REPAID
WITHIN THE FIRST QUARTER BASED
ON THE TAX REVENUES.
>> FIRST QUARTER OF 2026?
>> YES. THE IDEA HERE IS JUST TO
GIVE ENOUGH BUFFER, WE DON'T
KNOW HOT THE TAX REVENUES WILL
BE LIKE AS THEY COME IN BUT
GIVES ENOUGH BUFF FOR THAT LOAN
TO BE FULLY REPAID IN 2026.
>> OKAY.
>> THANK YOU.
>> THANK YOU. COUNCIL PRED
PRESIDENT NELSON.
>> WHEN WILL IT START COMING
INTO THE IN BOX HERE?
>> PART OF THE Q1 IS ALL TAXES
COME IN THE FIRST QUARTER OF
2026, WE WILL HAVE THE ABILITY
TO START COLLECTING THAT THE
FIRST QUARTER OF 2026, THE
DEADLINE FOR ALL TAXES FOR THE
FIRST QUARTER FILINGS IS AROUND
THE END OF MARCH. END OF MARCH.
I WILL FOLLOW UP WITH YOU ON
THAT WITH FINAL DATES.
>> MY UNDERSTANDING IS THAT
SHOULD BE ALL OF THE REVENUES
THAT ARE DUE FOR 2025, AND THEN
THOSE WILL COME IN IN EARLY
2026, THEN AFTER THAT WILL BE
COLLECTED ON A QUARTERLY BASIS.
IS THAT CORRECT?
>> YES.
>> SO, END OF YEAR, SORRY,
APOLOGIES, END OF YEAR ALWAYS
COLLECTED THE FIRST QUARTER OF
NEXT YEAR, WE ARE LOOKING AT 25
REVENUES COMING IN, STARTING
COLLECTED Q1 OF 2026.
>> AM I UNDERSTANDING THAT THIS
ADDITIONAL PAYROLL EXPENSE TAX
HAS BEEN ALREADY STARTED REPAID?
WHEN DID THAT GO INTO EFFECT?
>> IT IS GOING INTO EFFECT FOR
2025, WE ARE GETTING SYSTEMS
READY. FOR THIS IT IS AN ANNUAL
FILING SO IT WILL BE FILED,
PEOPLE CAN PAY IT THE FIRST
QUARTER OF 2026 FOR 2025. WHEN
THEY GO TO FILE, WE WILL HAVE
ALL THE SYSTEMS IN PLACE FOR
THEM TO START PAYING THAT FIRST
QUARTER OF 2026. IT TAKES A
LITTLE TO GET IT UP AND RUNNING.
>> I ALSO LIKE TO KNOW WHEN THE
PEOPLE THERE ARE PAYING INTO THE
FUND, WHEN THEY EXPERIENCE IT.
IT IS JUST, GOOD DATA TO KNOW SO
WE CAN SEE WHAT OUR POTENTIAL
THINGS THAT HAPPEN AFTER THAT.
THANK YOU.
>> THANK YOU. ANY FURTHER
QUESTIONS, COUNCIL PRESIDENT?
>> NOPE.
>> OKAY.
>> OTHER COLLEAGUES? I PROMPTED
YOU WITH ONE OF THE QUESTIONS
BUT DIDN'T QUITE HEAR THE
ANSWER, I WILL ASK AGAIN AND ADD
ONE TO IT. WHAT DOES SUCCESS
LOOK LIKE FOR THE PDA? WHAT DO
YOU NEED TO DO IN THE NEXT SIX
MONTHS TO SET THE PDA UP FOR
SUCCESS?
>> I THINK THERE ARE TWO
DIFFERENT AREAS, ONE IS MORE
TECHNICAL, AND THAT IS ARE WE
DEVELOPING HOUSING AT A
REASONABLE PACE AND UTILIZING
THE RESOURCES TOWARD THAT END?
SO BUDGET AND FISCAL
RESPONSIBILITY VERY MUCH A PART
OF THAT. ARE WE HIRING THE
APPROPRIATE STAFF AND AT THE
RIGHT PACE TO BE ABLE TO DO THE
WORK AS WE ARE RAMPING UP? BUT
THERE IS ALSO, I THINK,
ANECDOTAL EVIDENCE AND ONE IS
HOW ARE RELATIONSHIPS? HOW IS
COMMUNICATION WITH THE COUNCIL,
MAYORS, VOTERS, AND WITH THE
BUSINESS COMMUNITY AND
AFFORDABLE HOUSING DEVELOPERS?
WE HAVEN'T ALWAYS HAD THE MOST
SMOOTH COMMUNICATION AND
RELATIONSHIPS BUT WE HAVE BEEN
WORKING ON THAT AND I BELIEVE IT
IS IMPROVING. WE WANT TO
CONTINUE TO IMPROVE. WE WANT TO
BE GOOD PARTNERS.
>> I GUESS DIGGING INTO THAT,
MAYBE I WILL PROMPT YOU WITH
WHAT I HEARD YOU SAY IN THE
FIRST OPENING, THE IMPORTANCE OF
THE LOAN IS TO HIRE STAFF--
>> THAT IS CORRECT. FIRST AND
FOREMOST.
>> RIGHT. BECAUSE RIGHT NOW YOU
HAVE A WORKING BOARD, WHICH
MEANS YOU HAVE A BOARD OF
VOLUNTEERS WHO HAVE EXPERTISE,
AND FULL-TIME JOBS, MOST LIKELY.
ONE OF THE THINGS YOU REALLY
NEED NOW IS TO TURN THE WORKING
BOARD INTO ADMINISTRATIVE, INTO
A TYPICAL BOARD SO YOU CAN HAVE
YOUR STAFF DOING THAT WORK. WHAT
OTHER THINGS DO YOU NEED DO IN
THE NEXT 6 MONTHS TO SET
YOURSELF UP FOR SUCCESS?
>> BUILDING OFF WHAT YOU SAID,
IT HAS BEEN A LOT OF WORK, A
COUPLE BOARD MEMBERS CAN PARTED
BECAUSE OF THE VOLUME OF WORK. I
RECENTLY HAD A COUPLE OF FOLKS
SAY THIS IS A LOT OF WORK. BOARD
MEMBERS ARE LIKE WE CANNOT LIE,
IT IS A LOT OF WORK. THAT IS
EXPECTED IN A START UP THAT HAS
A BOARD OF THIS TYPE . SO WE
HAVE HAD SOME OF THE EXPERTISE,
WE HAVEN'T HAD ALL OF THE
EXPERTISE, AND THEREFORE IT IS
MORE IMPORTANT TO BRING STAFF
ON. ARE WE, AGAIN, LOOKING AT
OUR STAFFING STRUCTURE THAT WE
BUILT UP? AND OUR WORK PLAN OR
OPERATIONS PLAN WE ARE BUILDING
UP? ARE WE MEETING THE METRICS?
THE POINT OF OPERATING PLAN IS
TO BUILD OFF OF THE STRATEGIC
PLAN, AND THAT BUILDS IN THE
METRICS AND THE OPERATING PLAN
AND PUTS THEM TO A TIMELINE SO
WE HAVE CLEAR METRICS TO KNOW
WHETHER WE ARE MEETING OUR
GOALS.
>> THANK YOU.
>> ONE OF THE REASONS I FIND
THIS TO BE SO IMPORTANT, SO THAT
YOU CAN HAVE YOUR STAFF DOING
THE WORK, SO YOUR BOARD DOESN'T
HAVE TO BE DOING IT. COUNCIL
PRESIDENT I SEE A NEW HAND?
>> YEP. I HAVE SAID BEFORE, IN
THIS ROOM AND ALSO JUST OUT AND
ABOUT, THAT IT IS OUR
RESPONSIBILITY, COUNCIL'S
RESPONSIBILITY, AT LEAST, I
WOULD SAY THE CITY'S, TO SET
YOU UP FOR SUCCESS, YOU ARE
GOING TO BE WORKING WITH A WHOLE
BUNCH OF MONEY AND MAKE SURE YOU
ARE PUTTING IT TO THE BEST USE
POSSIBLE TO GET PEOPLE HOUSED.
AND HOUSED IN A WAY THAT IS NOT
RENT BURDENSOME. I AM IN FULL
SUPPORT OF THE LEGISLATION. I
WANT TO MAKE SURE THAT YOU ARE
ABLE TO HIRE THE PEOPLE THAT ARE
THE-- THAT HAVE THE SPICK
KNOWLEDGE OR THE SPECIALTIES
THAT YOU NEED RIGHT AWAY FROM
THE GET GO AS SOON AS THE MONEY
STARTS COMING IN. I DON'T KNOW
HOW TO WRITE A JOB DESCRIPTION
FOR THAT KIND OF PERSON OR THOSE
PEOPLE BUT I WILL HAVE TO TRUST
THAT YOU DO, BECAUSE YOUR BOARD
IS-- I HAVEN'T LOOKED AT THE
BIOES OF THE PEOPLE ON THE
BOARD, BUT, YOU KNOW, ALL COMES
DOWN--
>> THAT IS RIGHT. AND
ADDITIONALLY, WE ARE, OR JUST
PUT A NAME FORWARD, ON A
POTENTIAL COUNCIL APPOINTEE WHO
IS VERY HIGH CALIBER. THAT WILL
BE VERY HELPFUL. YES, I HAVE 20
YEARS EXPERIENCE IN RECRUITMENT
AND HIRING OF EXECUTIVE STAFF
AND OVERSIGHT. THAT IS ONE OF MY
STRONGER SKILLS. I DON'T THINK
WE WILL HAVE TROUBLE. THIS IS A
UNIQUE, INNOVATIVE OPERATION
THAT PEOPLE ARE HUNGRY FOR, AND
THERE IS A LOT OF TALENT HERE IN
SEATTLE TO RECRUIT FROM. I
DON'T FORESEE A PROBLEM, BUT,
YES, I THINK MY BOARD MEMBERS
WILL APPRECIATE HAVING A BREAK,
AND GETTING BACK TO DOING THE
WORK THAT THIS TYPE OF BOARD
SHOULD BE DOING, WHICH IS
GOVERNANCE AND OVERSIGHT AND
RESPONSIBILITY.
>> THANK YOU.
>> ANY FURTHER QUESTIONS?
>> NO.
>> COUNCILMEMBER SAKA?
>> THANK YOU, JUST CURIOUS, SO,
THIS MONEY WILL BE SPENT,
LEARNED TO HELP YOU GROW AND
SCALE AND DO MORE OPERATIONALLY
AND HELP EVENTUALLY TRANSITION
YOUR WORKING BOARD TO A MORE
TRADITIONAL GOVERNANCE AND
OVERSIGHT BOARD. SO, WHAT IS THE
SPECIFIC HIRING PLAN FOR STAFF?
WHAT KIND OF FUNCTIONS AND ROLES
ARE YOU SEEKING THAT WILL HAVE
THE MOST IMMEDIATE IMPACT AS
PART OF YOUR HIRING PLAN?
>> WE HAVE BEEN TALKING ABOUT
THIS A LOT, BECAUSE WE ARE
WORKING ON A THREE-YEAR
OPERATING BUDGET THIS WEEK,
SINCE WE DON'T KNOW WHAT THE
REVENUE WILL BE, BUT WE HAVE THE
MODEL BUILT AND WE CAN START
INPUTTING THE STAFFING, WE WILL
DO THAT TOMORROW. EXECUTIVE
ASSISTANT IS THE FIRST THING.
THERE IS JUST A LOT OF
ADMINISTRATIVE WORK THAT IS
FALLING ON ME AND THE SECRETARY.
PROJECT MANAGEMENT AND REAL
ESTATE DEVELOPMENT, WE ARE
UTILIZING CONSULTANTS RIGHT NOW,
AND THEY ARE VERY GOOD, BUT WE
ONLY CAN AFFORD A BIT OF THEIR
TIME, IF WE HAD FULL-TIME STAFF
WE WOULD BE ABLE TO ANALYZE ALL
FOUR OF THESE POTENTIAL DEALS
THAT ARE IN FRONT OF US, MUCH
MORE QUICKLY AND DETERMINE WHICH
MOVE FORWARD FIRST AND WHICH
LATER, WE CAN BUILD OUT THE
THREE-YEAR DEVELOPMENT PLAN FROM
THERE. A COO WILL BE NEEDED
SOONER THAN LATER. THAT PERSON
WILL LEAD THE INFRASTRUCTURE
SYSTEM WITH SUPPORT FROM A CFO.
WE HAVE CFO CALIBER TALENT
ALREADY, BOTH AS A CONSULTANT
AND ON THE BOARD, BUT WE NEED
SOMEBODY TO LEAD THE GROUND WORK
IN BUILDING THAT OUT. THEN
BUILDING A PROPERTY MANAGEMENT
COMPANY, WE ARE GOING TO HAVE TO
HIRE, THERE ARE TWO SIDES TO
THIS. WE WILL EVENTUALLY BE
RECRUITING A SENIOR PROPERTY
MANAGEMENT PERSON, AS I HAVE
DONE IN THE PAST, TO WORK WITH
ME AND A COO TO BUILD OUT AN
ENTIRE COMPANY AROUND THAT.
THERE IS ALSO A REAL NEED FOR
COMMUNITY ENGAGEMENT, AND THAT
GETS BACK TO THE COMMUNICATION
AND RESPONSIVENESS TO THE
VOTERS, AND TO EVERYBODY IN THE
CITY. WE DON'T HAVE CAPACITY
NOW TO DO NEARLY ENOUGH OF THAT
ENGAGEMENT. THAT IS A KIND OF
HIGH-LEVEL PICTURE OF IT.
>> THANK YOU.
>> THANK YOU, COUNCILMEMBER
SAKA. COLLEAGUES, ANY FURTHER
QUESTIONS ON THIS ITEM? SEEING
NO FURTHER QUESTIONS, OR
COMMENTS ON THE BILL BEFORE US,
I HAVE-- READY TO MOVE THIS
BILL. SYING NO FURTHER COMMENT I
MOVE TO RECOGNIZE PASSAGE OF
BILL 121012. SECOND?
>> SECOND.
>> THANK YOU. IT HAS BEEN MOVED
AND SECONDED TO RECOMMEND
CONFIRMATION OF PASSAGE OF THE
BILL ONE LAST CALL FOR FINAL
COMMENTS? SEEING NO FINAL
COMMENT, SEE THE COUNCIL
PRESIDENT BRIEFLY STEPPED OUT,
SO TRYING TO STALL. STALLING.
STALLING. HERE WE GO. WILL THE
CLERK PLEASE CALL THE ROLL ON
COUNCIL BILL 121012?
>> COUNCILMEMBER KETTLE?
>> AYE.
>> COUNCILMEMBER SAKA?
>> AYE.
>> COUNCIL PRESIDENT NELSON?
>> AYE.
>> CHAIR STRAUSS?
>> YES.
>> FOUR IN FAVOR, 0 OPPOSED.
>> THANK YOU. THE COMMITTEE
RECOMMENDS PASSAGE OF COUNCIL
BILL 121012 AND SENT TO JULY 8th
CITY COUNCIL MEETING. ANY OTHER
QUESTIONS BEFORE WE CONTINUE? IF
NOT, THANK YOU FOR YOUR TIME
COMING TO COMMITTEE TODAY, AND
TWO WEEKS AGO.
>> THANK YOU, COUNCILMEMBERS.
>> NOW WE WILL MOVE TO OUR THIRD
ITEM OF BUSINESS, COMING UP, I
WILL HAVE THE CLERK READ THE
SHORT TITLE INTO THE RECORD,
JUST TO PROVIDE A LITTLE BIT OF
ORDER OF OPERATIONS TO THIS
THIRD ITEM. AGAIN, IT 11:15, WE
HAD 30 MINUTES PUBLIC COMMENT
FROM 10:00 TO 11:15, WE TOOK UP
TWO ITEMS OF BUSINESS FOR AN
HOUR AND 15 MINUTES, AS I HAVE
STATED, I AM HOPING TO ASK
COLLEAGUES TO STAY UNTIL 1:00
P.M. FROM 11:15 TO 1:00 P.M.,
THAT IS AN HOUR AND 45 MINUTES
ON THIS TOPIC, THE SINGULAR
TOPIC, AND ALL PRESENTERS CAN
COME UP SO WE DON'T HAVE TO
KEEP MOVING AROUND CHAIRS IF YOU
WANT. THE ORDER OF OPERATIONS
HERE WILL BE CENTRAL STAFF
DIRECTOR BEN NOBLE WILL PROVIDE
AN OVERVIEW OF ALL OF THE
REVENUE OPTIONS BEFORE US TODAY.
WE WILL THEN MOVE ON TO
COUNCILMEMBER RINCK AND MAYOR
HARRELL'S TEAM TO SPEAK ABOUT
THEIR BILL WITH A PRESENTATION
AND THEN WE WILL HAVE TOM AND
JENNIFER PROVIDE CENTRAL STAFF
ANALYSIS ON THE TOPIC. I WILL BE
TREATING THE MAYOR'S TEAM AND
COUNCILMEMBER RINCK BOTH AS
SPONSORS OF THE BILL IN THE
SENSE I WILL BE CALLING ON THEM
FOR FIRST AND LAST WORD AND TO
RESPOND TO QUESTIONS OF THIS
SPONSOR. WITH THAT, WILL THE
CLERK PLEASE READ THE SHORT
TITLE INTO THE RECORD?
>> ITEM 3, PROPOSED BUSINESS AND
OCCUPATION B&O TAX REBALANCING
FOR BRIEFING AND TISCUSSION,
PRESENTERS INCLUDE GREG WONG,
DEPUTY MAYOR, MAYOR'S OFFICE,
DAN EDER, INTERIM DIRECTOR, TOM,
JENNIFER, AND BEN NOBLE OF
CENTRAL COUNCIL STAFF.
>> THANK YOU.
>> DIRECTOR NOBLE, ALREADY ON
IT. I DON'T KNOW WE NEED TO DO
INTRODUCTIONS BUT MAYBE FOR THE
RECORD AND WE WILL DIVE RIGHT ON
IN.
>> CENTRAL STAFF DIRECTOR,
>> TOM, ANALYST.
>> THIS, IDEALLY, BRIEF BRIEFING
IS DESIGNED TO BRING CONTEX TZ
FOR THE REMAINDER OF THE
DISCUSSION ABOUT A SPECIFIC
SPECIFIC PROPOSAL. THOUGHT IT
WAS IMPORTANT TO GIVE RANGE OF
SIGNIFICANT REVENUE OPTIONS, I
SAY SIGNIFICANT, I WILL EXPLAIN
MORE ABOUT WHAT I MEAN BY THAT.
WE WANT TO GIVE YOU THE BROADER
CONTEXT BEFORE YOU DOVE INTO
DETAILS ABOUT THE SPECIFIC
PROPOSAL REGARDING BUSINESS AND
OCCUPATIONAL TAXES. THAT IS THE
INTENT HERE. I WILL GIVE YOU
BACKGROUND AND EXPLAIN WHY THE
GROVE OF SPECIFIC REVENUE
SOURCES WERE SELECTED AND GIVE
YOU BRIEF COMMENTS ON SALES TAX
OPTIONS, PROPERTY TAX OPTIONS,
CAPITOL GAINS OPTIONS, I WILL
SAY LITTLE ABOUT BUSINESS AND
OCCUPATIONS, ONLY BECAUSE YOU
ARE GOING TO HEAR BUNCH ABOUT IT
AND MAKE REFERENCE TO PAYROLL
EXPENSE TAX, ALTHOUGH I DON'T
HAVE A SPECIFIC SLIDE AND I WILL
EXPLAIN WHY WHEN WE GET THERE.
CONTEXT ANDBACKGROUND,
BACKGROUND Y. AM QUOTING A
DEFICIT AS COMBINATION OF THE
PAYROLL EXPENSE TAX AND THE
GENERAL FUND. SHORTFALL. WHAT WE
ARE LOOKING AT IS THE THINGS
THOSE ARE PAYING FOR NOW, WHAT
IT WOULD COST TO CONTINUE THE
THINGS THAT THOSE REVENUE
SOURCES PAY FOR NOW, COMPARE
THAT COST TO THE REVENUES WE ARE
PROJECTING, THAT GIVES YOU THE
NOTION OF DEFICIT. BEFORE WE HAD
THE APRIL REVENUE FORECAST
DOWNGRADE, AS I DESCRIBED IT
HERE, WE WERE FACING A
STRUCTURAL DEFICIT OF $90
MILLION IN 2027 AND BEYOND. WHAT
HAPPENED IS WE HAD BALANCED 2025
AND 2026, BUT PART OF THAT HAD
BEEN DONE ONE-TIME RESOURCES
SUCH THAT WE WEREN'T GOING TO
BE ABLE TO SUSTAIN THE SAME
BALANCING STRATEGY INTO 2027,
THE FACT THERE WOULD BE $90
MILLION PROBLEM. WHEN I SAY
STRUCTURAL, THAT MEANS IT IS A
PROBLEM IN 2027, SAME IN 2028
AND 2029 AND GOING FORWARD. ONE
YOU NEED TO RESOLVE BY
STRUCTURALLY REDUCING
EXPENDITURE OR REVENUE. WHAT IS
CHALLENGING IS THE PROJECTIONS
DID TWO THINGS, FIRST, WE TALKED
ABOUT IT FOR 2025 AND 2026
CREATED $150 MILLION PROBLEM.
THE BUDGET YOU WOULD HAVE
APPROVED WHICH HAD ONE-TIME
RESOURCES FOR BALANCING, WAS OUT
OF BALANCE AND IS IT OUT OF
BALANCE. WEE TO THE TUNE OF $150
MILLION, THAT LED TO UNDERSPEND
STRATEGY AND MORE. LOOKING
FORWARD, THAT REVENUE DOWNGRADE
HAD A BIGGER IMPACT IN THE YEARS
BEYOND, AND, IN FACT, THE $90
MILLION, 89, PER SLIDE,
STRUCTURAL DEFICIT BASED ON THE
NEW FORECAST INCREASED TO NORTH
OF $230 MILLION. AGAIN, EVERY
YEAR FROM 2027 AND BEYOND FACING
$230 MILLION PROBLEM, YOU NEED
TO INCREASE REVENUE OR REDUCE
EXPENDITURE BY THAT AMOUNT. THAT
IS THE COMBINED GENERAL FUND.
THE PROBLEM THAT BIG DIDN'T
MAKE A WHOLE LOT OF SENSE TO
SPEND A LOT OF TIME ON REVENUE
CHANGES THAT WOULD BRING YOU A
LITTLE BIT OF MONEY. YOU COULD
STACK UP A MILLION DOLLARS AT A
TIME BUT YOU WOULD HAVE TO STACK
UP 233 TO DO ON THE REVENUE
SIDE. SO, DISCUSSION DAY FOCUSES
ON BIG MOVES AND IN PARTICULAR
ONES THAT ARE $10 MILLION OR
MORE. SO, NOTING TIME IS OF THE
ESSENCE, SALES TAX, CURRENTLY
THE CITY, SALES TAX RATE IN THE
CITY OF SEATTLE IS 10.35%, 6.5
FROM THE STATE, REMAINING 3.85
LOCAL SOURCES, COUNTY, CITY,
SOUND TRANSIT, OTHERS. WE
COLLECT FROM THE BASE TAX SALES
TAX ABOUT $350 MILLION. THIS
SHOULD SAY 0.1.%. THERE POINT
MISS, $35 MILLION. SALES TAX
REGRESSIVE, NOT IDEAL SOURCE OF
REVENUE BUT WE ARE CONSISTENTLY
GRANTED AUTHORITY FOR BY THE
STATE. SO, IF THERE IS SALES TAX
INCREMENT AVAILABLE, THE SHORT
ANSWER IS YES. THE STATE
AUTHORIZED STATE LEGISLATURE
THIS PAST SESSION AUTHORIZED A
COUNCIL MANIC, A FUNNY WORD, BUT
MEANS THE COUNCIL CAN APPROVE IT
BY ITSELF WITHOUT APPROVAL FROM
THE SOTEERS. YOU CAN IMPOSE A
0.1% TAX FOR PUBLIC SAFETY
PURPOSES, PUBLIC SAFETY IS
RELATIVELY BROADLY DEFINED. THE
COUNTY CAN DO THE SAME AND THEY
ARE, AS WE UNDERSTAND, PURSUING
THAT SPECIFIC AUTHORITY. THERE
IS ALSO ON THE BOOKS AND HAS
BEEN VOTER APPROVED OPTION FOR
0.1% FOR PUBLIC SAFETY THAT
WOULD BE IN ADDITION. IT IS NOT
FOR GENERAL GOVERNMENT PURPOSES,
BUT THERE IS ALSO 0.15%
AVAILABLE UNDER THE
TRANSPORTATION BENEFIT DISTRICT,
SOME OF THAT IS AVAILABLE FOR
COUNCIL MANIC, SOME WOULD
REQUIRE VOTER APPROVAL. THERE IS
SALES TAX CAPACITY IN ORDER OF
$35 MILLION, IT DIRECTLY, TWICE
FAT IF THAT IF YOU CAN GO TO
VOTERS. PROPERTY TAX, WE THINK
OF BASE PROPERTY TAX, GENERAL
FUND, THEN SERIES OF SPECIALIZED
LEVIES WE IMPOSE. LET ME GIVE
YOU A SENSE OF THE OVERALL
STRUCTURE HERE. THE CITY CAN
IMPOSE A MAXIMUM TAX RATE OF
$3.60 AND THAT IS A TYPO, SHOULD
SAY PER $1,000 ASSESSED VALUE.
MAXIMUM RATE YOU CAN IMPOSE,
EXCUSE ME, THE CITY CAN IMPOSE,
EITHER THROUGH YOUR ACTIONS OR
THAT OF THE PEOPLE, IS $3.60.
THE PART YOU IMPOSE CAN ONLY
GROW 1% PER YEAR, PLUS THE VALUE
OF NEW CONSTRUCTION, GIVEN THE
PACE OF NEW CONSTRUCTION OF
LATE, LOT MORE LIKE 1% THAN
ANYTHING ELSE. ANOTHER THING I
NEED, IT IS IMPORTANT TO
UNDERSTAND, UNUSUAL ABOUT THIS
STATE IS CHANGES IN PROPERTY
VALUES DON'T CHANGE THE CITY
TAX VALUE, AS PROPERTY VALUES
INCREASE, OTHER THINGS BEING
EQUAL, WHAT HAPPENS IS TAX RATES
DECLINE AND WE COLLECT 1% MORE
MONEY THAN WE DID THE YEAR
BEFORE. SO IT IS NOT THAT CHANGE
IN VALUE THAT DRIVES THE REVENUE
WE COLLECT, WHAT CHANGES IN
VALUE DO, THIS WILL BE IMPORTANT
IN A MOMENT, IS THEY CHANGE THE
RATE. SO, AS I DESCRIBED, AS
PROPERTY VALUES GO UP, RATES
TEND TO COME DOWN. THE PROBLEM
IS REVERSE IS ALSO TRUE. SO IF
RATES, IF PROPERTY VALUES DROP,
THEN RATE REQUIRED TO GENERATE
THE SAME AMOUNT OF MONEY
INCREASES. SO, I WILL BRING THAT
UP IN A MOMENT. CURRENTLY FOR
2026, IT IS THE FAMILY AND LEVY
PASSES WE WILL BE SHORT OF $3
PER ASSESSED A THOUSAND. WHICH
MEANS THERE IS 60 CENTS LEFT
UNDER 360 CAPACITY. IF YOU DO
THE MULTIPLICATION, THAT IS
WORTH $180 MILLION PER YEAR. SO,
THIS WOULD BE ACCESSIBLE THROUGH
VOTE OF THE PEOPLE BUT YOU
COULD, AND OTHER CITIES HAVE
DONE IT, YOU CAN PUT A MEASURE
ON THE BALLOT THAT IS A GENERAL
PURPOSE LEVY LID LIFT IS WHAT IT
IS TECHNICALLY CALLED. YOU CAN
ASK THE VOTERS TO TAX
THEMSELVES, ESSENTIALLY, UP TO
60 CENTS PER A THOUSAND, FOR
GENERAL GOVERNMENT PURPOSES AND
RAISE BASICALLY $180 MILLION A
YEAR, ANOTHER SIGNIFICANT WAY TO
RAISE REVENUE. BUT THAT BUSINESS
ABOUT THE RATE BECOMES
POTENTIALLY PROBLEMATIC. IF YOU
GO ALL THE WAY TO 360, IF
PROPERTY VALUES WERE TO START TO
DECLINE, YOU WOULDN'T BE ABLE
TO COLLECT AS MUCH MONEY AND YOU
WOULD HAVE TO MAKE CHOICES AND
ABOUT HOW MUCH OF EACH OF THE
LEVY S TO COLLECT VERSES GENERAL
FUND. THAT IS SOMETHING YOU
DECIDE EVERY YEAR, WHEN WE BRING
YOU THE PILE OF LEGISLATION IN
THE BUDGET, ONE OF THOSE
ORDINANCES IS ESTABLISHING HOW
MUCH REVENUE WE COLLECT FOR EACH
OF THE LEVYS, WE GENERALLY
COLLECT THE MAXIMUM AMOUNT. IF
WE GUT INTO A PINCH YOU COULD BE
COLLECTING LESS, IT IS CALLED
PRORATION, IT CAN HAPPEN. IN ANY
CASE, THERE IS SOME PROPERTY TAX
CAPACITY, SIGNIFICANT CAPACITY,
BUT YOU SHOULD PROBABLY NOT GO
UP TO 360 LIMIT AND LEAVE SOME
AMOUNT, PROPERTY VALUES DROP BY
AS MUCH AS 10% DURING THE GREAT
RECESSION, SO, IF YOU TRIED TO
LEAVE SOMETHING LIKE THAT, THEN
YOU ARE MORE LIKELY AROUND $100
MILLION EFFECTIVE CAPACITY IF
YOU TRY TO LEAVE YOURSELF SOME
ROOM, MAYBE LITTLE LESS. CAPITAL
GAINS, SWITCHING TO ANOTHER
SOURCE. AS CONTEXED IT,
WASHINGTON STATE IMPOSES 7% TAX
ON LONG-TERM CAPITAL GAINS,
ABOVE $22 50,000.
>> MAXIMUM RATE 9.9%. IT APPEARS
THE CITY HAS AUTHORITY TO IMPOSE
SUCH A TAX, WE HAVEN'T DONE SO,
DON'T KNOW IF COULD GARNER
LEGAL CHALLENGE BUT IT DOES
APPEAR ZEE THE AUTHORITY. THERE
IS NO CONSTRAINTS IMPOSED BY THE
STATE ON WHAT THE RATE COULD BE.
GIVE YOU A SENSE OF REVENUE,
LAST FALL THERE WAS PROPOSAL
FROM COUNCILMEMBER TO IMPOSE
SUCH A TAX, 2% RATE, AND THE
REVENUE ESTIMATE AT THE TIME WAS
BROAD, 16 TO $51 MILLION, BROAD
BECAUSE CAPITAL GAINS VARY A
GOOD DEAL YEAR TO YEAR BASED ON
GENERALIZED STOCK PERFORMANCE,
PARTICULAR ACTIONS OF
PARTICULARLY WEALTHY PEOPLE WHO
ARE DRIVING IT AT STATE LEVEL.
AT A LOCAL LEVEL, VARIABILITY
WOULD BE A CHALLENGE, I THINK
YOU CAN RUN INTO ISSUES ABOUT
WLR OUR ABILITY TO ENFORCE THE
TAX ON RESIDENTS AND WE CAN GET
INTO THAT IF THERE WAS INTEREST.
BUSINESS AND OCCUPATION TAX, AS
I SAID, I AM NOT GOING TO GO
THROUGH THIS SLIDE BECAUSE TOM
WILL COVER ALL THIS BACKGROUND
IN HIS. AS I MENTIONED, THERE IS
NOT A SLIDE ON THE PAYROLL
EXPENSE TAX, THAT IS A TAX YOU
HAVE COMPLETE AUTHORITY FOR. YOU
COULD RAISE REVENUE THERE BY
ADJUSTING THOSE RATES, HOWEVER,
GIVEN THE RATES WERE ADJUSTED
LAST YEAR AND BEING ADJUSTED
THIS YEAR BY BECAUSE OF THE
VOTER APPROVED MEASURE, IT IS
PROBABLY PRUDENT TO SEE HOW THE
REVENUE STREAM EVOLVES UNDER NEW
RATES BEFORE YOU WERE TO MOVE TO
INCREASE BUT IT IS A LEGAL
POSSIBILITY, IF YOU WILL, THAT
IS UNDER COUNCIL MANIC
AUTHORITY. THAT IS MY HIGH LEVEL
SURVEY. I WOULD NOTE WHEN I
FIRST STARTED THIS I STARTED
WITH A SLIDE ON INCOME TAX AND
WAS REMINDED INCOME TAX HAS BEEN
PROCLUDED AT STATE LEVEL BY
LEGISLATURE. THAT IS NO LONGER
AN OPTION, EVEN THOUGH
PREVIOUSLY COURT RULINGS
SUGGESTED WE MIGHT HAVE AN
OPPORTUNITY FOR A 1% FLAT TAX
BUT THAT IS NOW OFF THE TABLE.
THAT SLIDE IS NOT HERE. WITH
THAT, ANY QUESTIONS?
>> THANK YOU, DIRECTOR NOBLE.
COLLEAGUES IT, QUESTIONS?
>> I CAN SAY, DIRECTOR NOBLE,
YOU AND I HAVE HAD THIS
CONVERSATION MANY TIMES OVER AND
OVER, IN DEPTH, AND IN DETAIL,
AND I DON'T HAVE FURTHER
QUESTIONS AT THIS TIME BECAUSE
WE TALK ABOUT IT SO OFTEN, BUT
DO WANT TO DOUBLE CHECK FOR MY
COLLEAGUES, ANY QUESTIONS AT
THIS TIME?
IF WE DON'T HAVE QUESTIONS ON
THIS TOPIC, I AM GOING TO BRING
ADDITIONAL FOLKS UP FROM THE
MAYOR'S TEAM. [CAPTIONERS
TRANSITIONING]
>> I THINK THAT COMPUTER IS
IMMOVABLE. I DON'T KNOW HOW WE
SHIFT AND MOVE AROUND THAT
TABLE. COUNCILMEMBER RINK, THE
FLOOR IS YOURS.
>> THANK YOU, CHAIR STRAUSS.
COLLEAGUES, THE LEGISLATION
COMING BE FREE TODAY IS ABOUT
GIVING SEATTLE VOTERS THE CHOICE
THEY DESERVE ABOUT OUR CITY'S
FUTURE. THE SEATTLE SHIELD
INITIATIVE IS MORE THAN A
PROPOSAL. IT IS OUR RESPONSE TO
AN UNPRECEDENTED CHALLENGE.
WHERE -- WE HAVE THE OPPORTUNITY
TO LEAD WITH VALUES THAT MAKE
SEATTLE WHO WE ARE. THAT SEATTLE
SHIELD INITIATIVE REPRESENTS
THREE CORE PRINCIPLES THAT I
BELIEVE WE ALL SHARE. SMALL
BUSINESSES ARE THE BACKBONE OF
OUR ECONOMY. THIS LEGISLATION
PROVIDES TAX RELIEF FOR
BUSINESSES WITH A BREAKEVEN
POINT OF 5.7 MILLION IN GROSS
RECEIPTS, MEANING THAT 97 --
PARDON ME. WHILE WE ARE ASKING
LARGE CORPORATIONS TO STEP UP,
WE ARE PROVIDING SUPPORT WHERE
IT IS NEEDED MOST. THE SECOND
CORE PRINCIPLE HERE IS WORKERS
DESERVE PROTECTION. OUR OFFICE
OF LABOR STANDARDS BECOMES EVEN
MORE CRITICAL AND THIS
INITIATIVE ENSURES THAT WE CAN
CONTINUE PROTECTING THE RIGHTS
THAT MAKE SEATTLE A PLACE WHERE
WORK PAYS. AND THIRD, ESSENTIAL
SERVICES PROTECT ALL OF US. THAT
90 MILLION GENERATED ANNUALLY
WILL MAINTAIN PROGRAMS THAT KEEP
FAMILIES HOUSED, FED, AND SAFE.
SERVICES THAT STRENGTHEN OUR
COMMUNITY. NOT JUST THOSE WHO
USE THEM DIRECTLY. AND
DEVELOPING THIS PROPOSAL, WE
WORKED WITH 50 PARTNERS FROM
SMALL BUSINESS OWNERS AND
BUSINESS CHAMBERS AND HUMAN
SERVICES PROVIDERS. LABOR
ADVOCATES AND UNIONS. MY OFFICE
STARTED CRAFTING THIS
LEGISLATION WITH THREE SIMPLE
GOALS IN MIND. SHIELD CEDI
OSMAN'S FROM CUTS IN A
CHALLENGING ENVIRONMENT THAT WE
JUST DISCUSSED. SHIELD SMALL
BUSINESSES FROM THE INDEX OF
RISING COSTS, AND SHIELD OUR
COMMUNITY FROM THE MASSIVE CUTS
IN FEDERAL CUTTING -- SPENDING.
WE CONSULTED AND REFINED THIS TO
CREATE BOTH A MEANINGFUL
OPPORTUNITY FOR SMALL BUSINESSES
TO OFFSET TAX INCREASES COMING
FROM OLYMPIA, WHICH I KNOW IS
PART OF THIS EQUATION, AS WELL,
BUT TO ALSO FOCUS INVESTMENTS
AND AWAIT THAT BALANCES THE HARM
COMING FROM THE FEDERAL
GOVERNMENT. SINCE THE RELEASE OF
THIS PROPOSAL, WE'VE RECEIVED
AN OUTPOURING OF SUPPORT FROM
ACROSS THE CITY. WE HAVE A
LETTER OF SUPPORT FROM THE
SEATTLE HUMAN SERVICES COALITION
AND JUST THIS MORNING, COUNCIL
RECEIVED A LETTER SIGNED ON 527
COMMUNITY AND LABOR
ORGANIZATIONS IN SUPPORT OF THIS
ORGANIZATION. WE ARE CONTINUING
TO RECEIVE EMAILS IN SUPPORT OF
THIS FROM PEOPLE ACROSS THE CITY
EVERY DAY. AND BUILDING ON THAT,
I AM GRATEFUL THAT MAYOR HARRELL
AND I HAVE FOUND COMMON GROUND
ON THIS ISSUE BECAUSE THE NEED
IS CLEAR AND THE POLICY SOLUTION
IS SOUND. WORKING WITH MAYOR
HARRELL AND HIS TEAM AND THE
SOON TO BE PERMANENT CITY BUDGET
OFFICE DIRECTOR, DAN EDER , WE
HAVE BEEN ABLE TO WALK THE WALK.
THE CHALLENGES OF THIS MOMENT
REQUIRED NO LESS, AND I KNOW
THAT SAME SPIRIT OF
COLLABORATION EXISTS IN THIS
CHAMBER. SO THIS IS OUR CHANCE
TO PROVE THAT LOCAL GOVERNMENT
CAN STEP UP WHEN FEDERAL
LEADERSHIP STEPS BACK. THIS IS
OUR OPPORTUNITY TO SHOW THAT
SEATTLE ARMENTA CITY THAT
INVESTS IN EACH OTHER. THAT SHE
CHOOSES COLLABORATION OVER
DIVISION, BUILT A FUTURE WE ALL
DESERVE. I BELIEVE THAT WHEN WE
GIVE SEATTLE VOTERS THE CHOICE
THEY DESERVE, THEY WILL CHOOSE
TO SHIELD OUR CITY AND PROTECT
WHAT MATTERS MOST. I LOOK
FORWARD TO WORKING WITH EACH OF
YOU AS WE MOVE THIS LEGISLATION
FORWARD AND WITH THAT, I WILL
TURN IT OVER.
>> THANK YOU. I'LL TAKE THAT
LAST STEP FOR YOU, PASSING IT
OVER TO DEPUTY MAYOR LONG AND
ANSWERING THE QUESTION THAT
COUNCILMEMBER HOLLINGSWORTH
ASKED EARLIER THIS WEEK. IT IS
ATTACHED IN THE LEGISLATURE.
OVER TO YOU, DEPUTY MAYOR LONG.
-- WONG.
>> I AM HERE TO PROVIDE SOME
CONTEXT. THIS PROPOSAL IS NOT
ARISING OUT OF THIN AIR. IT IS
NOT ARISING AS A ONE-OFF. IT IS
DONE VERY DELIBERATELY TO FIND A
REASONABLE PATH FORWARD IN A
VERY CHALLENGING TIME. SO,
FIRST, I WOULD LIKE TO ZOOM OUT
A LITTLE BIT TO TALK ABOUT THREE
SIGNIFICANT EXTERNAL PRESSURES
FACING PEOPLE WHO LIVE, WORK AND
DO BUSINESS IN SEATTLE. I KNOW
COUNCILMEMBER SAW,, YOU HAVE
TALKED ABOUT EXTERNAL PRESSURES.
IT IS NO SECRET THAT
AFFORDABILITY IS ON EVERYBODY'S
MIND. I WOULD SAY PRETTY MUCH
498, 99% OF SEATTLEITES, YOU
DON'T JUST HAVE TO BE LOW
INCOME TO WORRY ABOUT
AFFORDABILITY THESE DAYS IF YOU
GO OUT TO EAT OR LIVE HERE. SOME
DATA THAT WE HAVE SEEN -- AND I
KNOW YOU PROBABLY EVERYDAY READ
ARTICLES ABOUT THIS. WE ARE NOW
THE 11th MOST EXPENSIVE CITY TO
LIVE IN. COMPARING IT TO MOST OF
THE CITIES IN CALIFORNIA AND NEW
YORK, WE HAVE A HIGH
AFFORDABILITY CRISIS. OUR
AVERAGE RENT IN JUNE ROSE TO
$2110 PER MONTH. OUR HOUSING
INDEX SCORE IS 112% ABOVE THE
AVERAGE. IT IS AS HARD ON
WORKING FAMILIES. IT IS HARD ON
BUSINESSES. IT IS HARD ON
IMMIGRANT AND REFUGEE
COMMUNITIES. ELDERS. IT CAN BE
TOUGH. I LOVE THIS CITY BUT WE
KNOW IT IS EXPENSIVE. THIS IS
NOT A NEW PROBLEM. WE ALL HAVE
BEEN ADDRESSING AFFORDABILITY
ISSUES FOR QUITE SOME TIME BUT
IT IS CERTAINLY ESCALATING THESE
DAYS. THAT IS TRUE ALSO FOR THE
SECOND EXTERNAL FACTOR. OUR
BUSINESSES ARE FEELING THIS.
NATIONALLY -- THIS IS NOT JUST A
SEATTLE ISSUE. 30% OF THOSE
BUSINESSES COULD NOT PAY RENT IN
NOVEMBER AND THAT NET MARGINS
FOR RESTAURANTS HERE DECREASED
FROM 4% TO 1.5%. OUR SMALLEST
BUSINESSES -- THE ONES THAT ARE
STRUGGLING TO THE ONCE WE HEARD
FROM EARLIER TODAY TALKING ABOUT
HOW TOUGH THAT IS, THEY ARE
REALLY FACING THIS CHALLENGE, AS
WELL. I KNOW WE HAVE TALKED
ABOUT IT SOME, I WOULD BE REMISS
NOT TO MENTION THE STATE AND
FEDERAL CHALLENGES AND
UNCERTAINTIES WE ARE FACING
BECAUSE THESE ARE NOT
THEORETICAL. ANYMORE. THEY ARE
VERY REAL. WE JUST WENT THROUGH
A STATE LEGISLATIVE STATION --
SESSION WHERE WE TALKED ABOUT
BILLIONS OF DOLLARS BEING CUT.
THOSE CUTS WILL IMPACT THE
PEOPLE OF SEATTLE DIRECTLY.
FEDERALLY, WE HAVE BEEN DOING
ALL WE CAN TO MITIGATE THE TRUMP
ADMINISTRATION'S AGGRESSIVE
APPROACH TO CUTTING OUR FUNDING.
IN WAYS THAT WE BELIEVE ARE
ILLEGAL AND UNCONSTITUTIONAL. WE
HAVE STEPPED UP THE LITIGATION.
WE HAVE BEEN DEFENDING THEM AND
MAKING SURE THAT OUR BUDGET AND
OUR PEOPLE ARE PROTECTED AGAINST
THESE FEDERAL ACTIONS. AS WE ARE
SEEING NOW WITH THE CURRENT
DEBATE IN WASHINGTON, D.C., THIS
IS NOT A QUESTION OF IF, BUT
WHEN. THE ONE BIG BEAUTIFUL BILL
THAT IS BEING DISCUSSED AS
REFERENCED EARLIER -- THERE WAS
A HEADLINE TODAY THAT IT WOULD
HIT WASHINGTON STATE THE HARDEST
IN TERMS OF LOSS OF PEOPLE FOR
THEIR MEDICAID AND INSURANCE
COVERAGE. WE ALREADY ARE SEEING
OVER $1 BILLION IN LOST FOOD
BENEFITS. THROUGH THE SNAP
PROGRAM. WE WILL CONTINUE TO SEE
THAT THROUGH ALL LEVELS OF
FEDERAL FUNDING. WE CONTINUE TO
FIGHT AND WE'VE HAD GREAT
PARTNERS BUT IN THIS COUNCIL,
THE CITY ATTORNEY'S OFFICE. WE
ARE CONTINUING THAT FIGHT FOR
THE PEOPLE OF SEATTLE. THIS
PRESSURES ARE REAL AND THEY WILL
BE FELT BY US. TO ZOOM IN JUST A
LITTLE BIT MORE LOCALLY, LAST
YEAR, WE MET WITH A NUMBER OF
SMALL BUSINESSES. THE MAYOR'S
OFFICE DID, TO DO A SMALL
BUSINESS WORKGROUP. TO
UNDERSTAND THE FACTORS. WHAT IS
GOING ON IN TERMS OF THE
PRESSURES? THEY ARE COMPLICATED.
WE HEARD FROM SOME COMMENTERS
ABOUT DIFFERENT THINGS THAT ARE
HAPPENING. BUT AS WE ALL KNOW,
THE TRUTH ABOUT THIS COUNTRY --
INFLATION OF COSTS HAVE GONE UP
AROUND THE BOARD. IT IS TRUE FOR
EVERYBODY. IT IS DEFINITELY TRUE
FOR OUR SMALL BUSINESSES. THIS
IS DATA WE DID BASICALLY A POLL
OF OUR SMALL BUSINESSES TO GET
INTO THEIR BOOKS TO SEE. THIS IS
WHAT THEY SAW IN HIS FIVE YEAR
PERIOD BETWEEN 2019 AND 2024. WE
SEE DOUBLE-DIGIT INCREASES AND
MOST OF THEM OVER 20% INCREASES,
IN THEIR CORE COSTS AND THEY'RE
SEEING EVERYTHING FROM
MAINTENANCE COSTS. INSURANCE
COSTS. UTILITY BILLS. WE HEARD
EARLIER, WAGE PRESSURE. THESE
ARE ALL THINGS THAT ARE VERY
REAL. PRESSURES THAT OUR SMALL
BUSINESSES HAVE TO FACE EVERY
DAY. AND WE HAVE TALKED SOME
ALREADY ABOUT OUR LOCAL CITY
BUDGETS. WE HAVE THE STATE
PRESSURES. THESE THINGS THAT ARE
OUTSIDE OF OUR CONTROL. BUT THEN
WE ALSO HAVE OUR LOCAL
PRESSURES, AS WELL. EACH OF YOU
KNOW BECAUSE YOU HAVE BEEN PART
OF THE BUDGET PROCESS THAT IT
HAS BEEN CHALLENGING. THE'S --
THESE HAVE BEEN TOUGH
CONVERSATIONS WE'VE HAD THE
PAST FEW YEARS. BECAUSE OF THE
PRESSURES OUR FOLKS ARE SEEING,
WE ARE SEEING AN INCREASE IN
DEMAND FOR SERVICES EVERY YEAR.
COST CONTINUES TO GO UP. THAT
DOESN'T JUST HIT BUSINESSES AND
OUR RESIDENTS. IT HITS THE CITY
OF SEATTLE ITSELF. THE COST OF
OUR BUSINESS GOES UP AT THE SAME
RATE. AS WAS ALLUDED TO BEFORE,
WE GOT SOME NOT GREAT NEWS THIS
APRIL. YOU DID THE HARD WORK
LAST YEAR -- LATE LAST YEAR TO
PASS A BALANCED BUDGET. AT THE
TIME, WE WERE SAYING, THIS IS
GREAT. WHERE BALANCED THROUGH
2025 AND 2026. WE DID THE HARD
WORK TOGETHER. UNFORTUNATELY, IN
APRIL, THAT PICTURE DRASTICALLY
CHANGED WHEN THE FORECAST
COUNCIL LOWERED ITS FORECAST FOR
2025 AND 2026 BY $215 MILLION IN
REVENUE. IT HAS BEEN DISCUSSED.
WE ALREADY FACE A 2026 BUDGET
AND THEN A LARGER BUDGET DEFICIT
STARTING IN 2027. WE HAVE USED
THOSE ONE-TIME FUNDS SUCH AS THE
COVID RELIEF FUND AND ONE-TIME
FUND BALANCES. WE HAVE BEEN
CREATIVE. WE HAVE BEEN
EFFICIENT. WE FOUND REDUCTIONS,
ALL WITHOUT RAISING NEW REVENUE.
THAT IS THANKS TO THE HARD WORK
AND PARTNERSHIP BETWEEN THE
EXECUTIVE AND THE COUNCIL. IN
FACT, THE PAST THREE YEARS, WE
HAVE SEEN REVENUE FORECASTS THAT
WE'VE HAD TO BUDGET AGAINST
WHAT WE'VE SEEN A DECLINE IN
REVENUE. EACH YEAR, WE PROPOSED
TO THE MAYOR'S OFFICE BUDGETS
THAT BALANCE BUT TO KEEP THOSE
PROGRAMMATIC REDUCTIONS.
IDENTIFIED BUSINESS
EFFICIENCIES. UNFORTUNATELY,
WE'VE HAD TO LAY OFF EMPLOYEES
AS PART OF THAT. WE STREAMLINE
FUNCTIONS TO PROVIDE HIGH
QUALITY SERVICES. THROUGH
COORDINATION. DEFICIENCIES IN
TEAMS SUCH AS OUR UTC AND OUR
CUSTOMER TRUST TEAM. WE HAVE
ADDED FLEXIBILITY SPENDING
REGULATIONS AND, AGAIN, WE HAVE
DONE THAT ALL WITHOUT PROPOSING
NEW REVENUE IN THIS SPACE
BECAUSE WE HAVE HEARD LOUD AND
CLEAR, TIMES ARE TOUGH FOR A LOT
OF FOLKS AND WE WANT SEATTLE TO
BE AND TO REMAIN A PLACE WHERE
BUSINESSES FEEL WELCOME AND A
DESIRABLE PLACE TO BE. WE HAVE
PROPOSED BUDGETS AND YELL HAVE
APPROVED THEM. YOU HAVE DONE THE
HARD WORK TODAY. IT WAS ALLUDED
TO EARLIER. WE ACTUALLY STARTED
THAT NOW. WE HAVE THE REVENUE
FORECAST. WE HAD TO SHIFT GEARS
VERY QUICKLY. WE ASKED OUR
DEPARTMENTS TO START
UNDERSTANDING THEIR CURRENT YEAR
BUDGET, WHICH IS SOMETHING THAT
IS A NEW STEP. WE'VE IMPLEMENT
IT FREEZES ON NONESSENTIAL
HIRINGS. TRAININGS, TRAVEL. WE
KNOW THAT IN OUR PROPOSED BUDGET
WE ARE SENDING OUT LATER, WE ARE
ASKING DEPARTMENTS TO TAKE
FURTHER CUTS ON TOP OF THE ONES
THAT WE ASKED FOR LAST YEAR. ALL
THAT TO SAY, WE HAVE BEEN
TURNING OVER EVERY STONE TO TRY
TO FIND SOLUTIONS TO THE ISSUES
-- THE FISCAL ISSUES WE HAVE
BEEN FACING. WHAT WE ARE FINDING
IS THERE IS NO ONE SINGLE
SOLUTION THAT WILL SOLVE THIS.
WHICH BRINGS US TO TODAY AND WHY
WE ARE IN FRONT OF YOU WITH THIS
PROPOSAL. WITH THAT CONTEXT IN
MIND, AFTER LOOKING THROUGH
MULTIPLE STRATEGIES AND TALKING
THROUGH -- I APPRECIATED THEN
NOBLES PRESENTATION ON THE
DIFFERENT TAX PREPARATIONS. WE
HAVE BEEN THINKING THAT THROUGH.
IT IS WHAT WE THINK IS A
REASONABLE, SMART, AND
RESPONSIBLE APPROACH TO SOME OF
THE CHALLENGES WE DESCRIBED
TODAY. SO, CENTRAL STAFF WILL
HIT THE NUTS AND BOLTS OF THAT
LEGISLATION AND BE ABLE TO GO
THROUGH IT. I JUST WANTED TO DO
A FEW HIGHLIGHTS THAT TALKS
ABOUT MEETING SOME OF THE NEEDS
I JUST DESCRIBED. SO, THIS
PROPOSAL REALLY DOES THREE KEY
THINGS IN OUR MIND. THE FIRST IS
RAISING THAT SMALL BUSINESS
THRESHOLD FROM $100,000 WHICH IT
HAS SET UP SINCE $2010-$2
MILLION. SO SIGNIFICANT INCREASE
IN SMALL BUSINESSES WILL NO
LONGER PAY CITY B & O TEXAS. OUR
ESTIMATE IS THAT OF THOSE
TAXPAYERS, 67% WILL NO LONGER BE
SUBJECT TO PAYING THE B & O TAX.
WE ALSO, IN CONCERT WITH THAT,
CREATE A $2 MILLION B & O
REDUCTION. SO BUSINESSES THAT
MAKE MORE THAN $2 MILLION IN
GROSS RECEIPTS WILL BE ABLE TO
TAKE THAT DEDUCTION. THIS MEANS
THAT THERE IS A GOOD SECTION OF
MIDDLE SIZED BUSINESSES -- SAY
YOU HAVE THE MAIN DOLLARS IN
GROSS RECEIPTS -- THAT WILL SEE
LOWER TAXES UNDER THIS. IF YOU
COMBINE THOSE BUSINESSES WHO NO
LONGER WILL PAY TAXES WITH THOSE
THAT WILL PAY LOWER TAXES, THAT
EQUALS 90% OF CURRENT CITY B & O
TAXPAYERS WILL BE BETTER OFF,
PAYING LESS TAXES OR NO TAXES
UNDER THIS PROPOSAL. IF YOU
COMBINE THOSE WITH THOSE WHO ARE
ALREADY EXEMPT UNDER THE
$100,000 THRESHOLD, THAT IS 95%
OF ALL BUSINESSES IN SEATTLE
WILL BE BETTER OFF UNDER THIS
PROPOSAL. THE THIRD PIECE I TALK
ABOUT IS -- THIS ALSO GENERATES
THE REVENUE. IT HAS BEEN
IDENTIFIED. THERE ARE TOUGH
DECISIONS WE HAVE TO MAKE. HAD
WE PROVIDE SERVICES THAT ARE
GOOD FOR ALL OF OUR BUSINESSES
AND WORKERS. SO WE WANT TO RAISE
$90 MILLION FOR THIS PROPOSAL
FOR CRITICAL HUMAN SERVICES AND
PROGRAMS. AND MOST IMPORTANTLY,
WE THINK IT IS THE VOTERS THAT
WILL ULTIMATELY WANT TO HAVE A
SAY ON THIS. THAT IS WHY, WITH
THE B & O TAX THRESHOLD, THAT'S
WHAT YOU SEND TO THE PEOPLE TO
VOTE ON THIS NOVEMBER. SO, LET
ME GIVE YOU A COUPLE OF
SNAPSHOTS BECAUSE I WORK BETTER
WITH ILLUSTRATIONS THAN XL
SPREADSHEETS, AND SO, HERE IS
WHAT THIS WOULD LOOK LIKE FOR A
-- FOUR HYPOTHETICAL BUSINESSES
IN SEATTLE. WE PUT FOUR GROSS
RECEIPTS THAT A BUSINESS WOULD
HAVE AN EIGHT YEAR PERIOD THOSE
WERE THAT AT -- AT $400,000,
THEY DON'T SEE A CHANGE. THEY
ARE ALREADY NOT PAYING ANYTHING.
BUSINESS B, GOING UP TO $2
MILLION WILL SAVE $6500. WHILE
THAT MAY SEEM LIKE A SMALL
MARGIN, BUT WE HEARD FROM SMALL
BUSINESSES IS THAT IT MAKES A
DIFFERENCE. WHEN YOUR MARGINS
ARE SO THIN, IT MAKES THAT
DIFFERENCE IN WHETHER YOU CAN
STAY OPEN. WHETHER YOU CAN
PROVIDE THE NEIGHBORHOOD
COMMUNITY BENEFITS OUR SMALL
BUSINESSES DO. BUSINESS C HAS
FINALLY DOLLAR GROSS RECEIPT
BUSINESSES. THEY WILL RECEIVE
LOWER TAXES IN THIS PROPOSAL.
$1300 ANNUALLY. WE HAVE $5
MILLION GROSS RECEIPT
BUSINESSES. WE ARE GETTING UP
INTO THE UPPER TIERS HERE. THE
TIPPING POINT IS $7 MILLION.
ABOVE $5.7 MILLION. THAT IS
WHERE YOU CAN SEE AN INCREASE IN
TAXES. HYPOTHETICAL BUSINESS D
WOULD SEE $10,000 MORE ANNUALLY
IN CITY B & O TEXAS AGAINST
THOSE $12 MILLION. SO WHAT WILL
THE MONEY GO TO? CERTAINLY, THIS
IS A SMALL BUSINESS RELIEF
PROPOSAL. FIRST AND FOREMOST.
THAT IS WHERE A SIGNIFICANT
PIECE OF THIS RIBBON IS. WE NEED
TO HAVE A HEALTHY BUSINESS
ECOSYSTEM HERE. A HEALTHY
BUSINESS ENVIRONMENT AND WE WANT
BUSINESSES TO BE ABLE TO SAY,
THIS IS A BETTER PLACE TO BE.
WHEN WE PROVIDE TAX RELIEF TO
90% OF OUR BUSINESSES, I THINK
THAT SENDS A STRONG MESSAGE TO
OUR COMMUNITIES. IT WILL ALSO
SUPPORT GENERAL FUND
INVESTMENTS. WE MENTIONED
PRESSURES AND AXIS, SMALL
BUSINESS SUPPORTS, EMERGENCY
SHELTER, HOMELESSNESS
PREVENTION, AND WORKERS RIGHTS
AND PROTECTIONS. AND THE THIRD
BUCKET IS REALLY GETTING TO
MITIGATING THE INEVITABLE
REDUCTIONS WE ARE GOING TO SEE
FROM THE FEDERAL GOVERNMENT. WE
KNOW THAT IT MAY NOT DOLLAR FOR
DOLLAR MATCH WHAT REDUCTIONS WE
SEE FROM THE FEDERAL GOVERNMENT
-- I WOULD WAGER IT WON'T COME
CLOSE TO COVERING THAT -- WE
HAVE TO DO SOMETHING TO BE ABLE
TO PROTECT OUR PEOPLE.
PARTICULARLY THAT ARE MOST
HONORABLE THAT ARE GOING TO BE
HIT THE HARDEST. THESE
INVESTMENTS WOULD BE IN OUR
FINANCIAL STABILITY FOR
AFFORDABLE HOUSING AND EMERGENCY
SHELTER AND HOMELESSNESS. IF YOU
CAN PICK UP THE COMMON THEME
AMONG WHAT IS BEING SUPPORTED IS
HOW DO WE MAKE SURE THAT OUR
SMALL BUSINESSES AND INDIVIDUALS
MOST AT RISK THESE DAYS ARE ABLE
TO STABILIZE THEIR ABILITY TO
LIVE AND WORK IN SEATTLE AND
CONTINUE TO BE MEMBERS OF OUR
COMMUNITY? YOU KNOW, I SAW A NEW
YORK TIMES HEADLINE THIS
MORNING. YOU CAN OPEN UP THE
PAPER, WHETHER IT IS THE SEATTLE
TIMES OR THE NEW YORK TIMES
EVERY DAY, AND SEE THE NEWS THAT
IS COMING OUT. THE SENATE BILL
PASSED LAST NIGHT THAT THE
POOREST AMERICANS ARE DEALT THE
BIGGEST BLOW UNDER THE SENATE
BACKED PACKAGE. THOSE ARE THE
VULNERABLE IN OUR COMMUNITY AND
THE FOLKS WE WANT TO LOOK OUT
FOR HERE. FINALLY, JUST A PIECE
ON TIMING. STAFF WILL TALK ABOUT
THIS A LITTLE BIT MORE. BUT WE
DO SEE THIS AS BEING RESPONSIVE
TO THE NEEDS OF THE DAY. THIS
DOES NOT IMPLEMENT A TAX FOR THE
SAKE OF TAXATION. WE HAVE DONE
THE HARD WORK TO FIND THE
DIFFERENT WAYS WE CAN DO
SPENDING. WE WILL CONTINUE TO DO
SO IN A WAY THAT IS FORTHCOMING
IN OUR BUDGET PROPOSALS. THIS IS
TRYING TO BE RESPONSIVE TO THIS
MOMENT IN TIME. IT IS
PARTICULARLY CHALLENGING AND
COMPLEX FOR US. IT WAS VERY
IMPORTANT TO US THAT WE PUT IN A
SUNSET AFTER FOUR YEARS. IF THE
BOARD APPROVES THIS, THE TAX AND
THE REVENUE SUPPORTS WILL GO
AWAY AFTER FOUR YEARS WITH ONE
OPTION FOR COUNCIL TO RENEW IT
AFTER FOUR YEARS FOR ONE MORE
FOUR YEAR PERIOD. AFTER THAT, IT
WOULD NEED TO GO TO THE VOTERS
AGAIN. TRYING TO FIND THAT
BALANCE AND SUPPORTING
COMMUNITIES WHILE UNDERSTANDING
THE POTENTIAL IMPACTS THIS
PROPOSAL MAY HAVE. WITH THAT, I
WILL ANSWER ANY QUESTIONS YOU
MAY HAVE FOR THAT. [ INAUDIBLE ]
>> THANK YOU, DEPUTY MAYOR. I
WILL CHECK IN ONE TIME WITH
COUNCILMEMBER RINCK TO SEE IF
YOU HAVE ANY COMES AT THIS TIME.
WITH THAT, I WILL PASS IT OVER
TO JENNIFER AND TOM FOR THE
CENTRAL STAFF PRESENTATION, AND
THEN WE WILL OPEN IT UP FOR
QUESTIONS ACROSS THE PANEL.
>> THANK YOU.
>> HELLO AGAIN. I'M JUST GOING
TO LOAD UP THE PRESENTATION. [
INAUDIBLE ] OKAY. SHALL WE
BEGIN, CHAIR?
>> YES, PLEASE. TAKE IT AWAY.
AND INTRODUCTION FOR THE RECORD.
>> MORNING. TOM MIKESELL,
CENTRAL STAFF.
>> JENNIFER LABRECQUE, CENTRAL
STAFF.
>> I'M GOING TO COVER -- WE ARE
GOING TO COVER A GENERAL OUTLINE
TO FIRST GIVE SOME BACKGROUND ON
THE EXISTING BUSINESS AND
OCCUPATION TAX THAT WE HAVE --
GIVE AN OVERVIEW WITH PROPOSAL
FOR TODAY AND DIG INTO THE
DETAILS OF THAT PROPOSAL, TALK
ABOUT THE PROCEEDS, AND THEN
CLOSE UP WITH SOME STAFF
CONSIDERATIONS WE NEED TO TAKE
AWAY FROM THIS DISCUSSION. SOME
OF THESE TEAMS ARE GOING TO BE
FAMILIAR BECAUSE THEY WERE
COVERED BY DEPUTY MAYOR WONG'S
PRESENTATION, BUT THEY'RE A
LITTLE MORE DETAILED. THE CITY
CURRENTLY HAS A BUSINESS AND
OCCUPATION TAX, WHICH IS A TAX
ON GROSS REVENUES EARNED BY
BUSINESSES IN SEATTLE. I
UNDERLINED GROSS HERE BECAUSE IT
IS DIFFERENT THAN THE CORPORATE
INCOME TAX THAT EXISTS AT THE
FEDERAL LEVEL, WHERE BUSINESS
OPERATING EXPENSES CAN BE
DEDUCTED AND THE TAX IS INSTEAD
LEVIED ON A -- I APOLOGIZE IT'S
NOT ON-SCREEN. TAXES ON THE
TOTAL REVENUE. NOT A NET PROFIT.
THAT'S AN IMPORTANT DISTINCTION
BETWEEN THE CITY'S BUSINESS
OCCUPATION TAX AND THE FEDERAL
INCOME TAX. THE RATES THAT ARE
CHARGED BECAUSE IT IS BASED ON
GROSS REVENUE ARE ACTUALLY SMALL
IN NOMINAL TERMS. SO, AS YOU CAN
SEE HERE, THERE ARE TWO
DIFFERENT RATES DEPENDING ON THE
TYPE OF BUSINESS ACTIVITY. THERE
IS 0.222 RATE FOR WHOLESALE
SERVICES. WHOLESALING AND
MANUFACTURING, EXTRACTING. THAT
IS A LITTLE LESS THAT ONE
QUARTER OF 1% IN TERMS OF A
RATE. IF YOU GROSS IT UP IN
TERMS OF REVENUE, IT IS $.22 FOR
EVERY $100 OF REVENUE. FOR
TRANSPORT AND ALL OTHER
ACTIVITIES NOT COVERED IN THE
LOWER RATE, IT IS .427%. JUST
HIGH OF -- SHAI F HALF A
PERCENT.
THERE IS AN EXEMPTION FOR SMALL
BUSINESSES. ANY BUSINESS WITH
GROSS INCOME LOWER THAN $100,000
IN A YEAR, NEEDS TO FILE A
RETURN. THEY ARE ABLE TO
TRANSMIT A TAX RETURN. THEY WILL
INDICATE NO TAXES, TOO. I WILL
COVER THIS A LITTLE BIT LATER.
.2%. SEATTLE'S RATES ARE HIGHER
BECAUSE THOSE RATES WERE IN
EXISTENCE PRIOR. [ INAUDIBLE ]
RC2521711. I'M GOING TO TOUCH
ON THE COMPOSITION OF THE TAX
BASE IN 2024. PRIOR TO THE
PROPOSED CHANGES IN THIS BILL.
IN 2024, THERE WERE A TOTAL OF
42,000 TAX FILERS. THESE ARE
BUSINESSES THAT ARE SUBMITTING A
TAX RETURN. AS YOU CAN SEE, THE
PIE CHART -- FOR ANYBODY WITH
GROSS REVENUE OF LOWER THAN
$100,000, THEY ARE EXEMPT.
THAT'S ABOUT 21,000 TAXPAYERS.
ANYBODY ABOVE PAYS TAX DOSE THAT
IS ABOUT HALF. ANOTHER 21,000
TAXPAYERS. B & O TEXT IN 2024
GENERATED ABOUT $153 MILLION. [
INAUDIBLE ] THEY FORECASTED 369
MILLION IN 2025 AND 385 MILLION
IN 2026. THIS IS A SIGNIFICANT
REVENUE SOURCE FOR THE GENERAL
FUND, BRINGING ABOUT 20% OF
ANNUAL REVENUE. I WOULD NOTED
THERE WAS A STATE BILL THAT WAS
PASSED IN THE LAST LEGISLATIVE
SESSION WHICH CLASSIFIES SOME
TECHNOLOGY SERVICES AS RETAIL,
SO THAT HAS AN IMPACT ON THE B &
O TAX, AS WELL COVER THE CITY
AND THOSE IMPACTS ARE INCLUDED
IN THE METHODS USED TO GENERATE
THE RATES IN THIS PROPOSAL. THIS
IS A HIGH-LEVEL OVERVIEW OF THE
PROPOSAL. WHAT IT DOES IS
INCREASE THE EXEMPTION THRESHOLD
FROM $100,000-$2 MILLION. IT
CREATES A NEW $2 MILLION
STANDARD DEDUCTION, SO, FOR
NONEXEMPT BUSINESSES, THEY WOULD
BE ABLE TO DEDUCT THE FIRST $2
MILLION OF REVENUE FROM THE
BASIS OF THEIR TAX. IT WOULD
INCREASE THE B & O TAX RATES TO
A LEVEL TO OFFSET THE PRICE
CHANGES AND GENERATE ADDITIONAL
REVENUE, WHICH WILL COVER ABOUT
$90 MILLION. ALL OF THAT IS
CONTINGENT ON VOTE OR APPROVAL.
THEY WOULD SEND THE QUESTION TO
THE -- ACTUALLY NOVEMBER 4th
2025 BALLOT. THAT WOULD INCLUDE
ALL THESE CHANGES AND THE
CHANGES WOULD BE EFFECTIVE
JANUARY 1st 2026. FINALLY, THERE
IS A SUNSET DATE INCLUDED. IT IS
PART OF THE QUESTION ASKED OF
VOTERS. IT WOULD SUNSET ALL
PROVISIONS OF THE RATE CHANGE. [
INAUDIBLE ] ON JANUARY 1st,
2030, UNLESS COUNCIL APPROVES AN
ORDINANCE TO EXTEND IT FOR AN
ADDITIONAL -- ONE ADDITIONAL
FOUR YEAR PERIOD. NOW, I'M
GOING TO DIG INTO SOME OF THE
DETAILS. IT LOOKS LIKE THIS
SLIDE DID NOT CARRY THROUGH.
APOLOGIES FOR THAT. THERE IS
THIS TABLE. ON THE RIGHT. IT'S
TO SHOW YOU THE NUMBER OF
TAXPAYERS IN AN INDIVIDUAL
CATEGORY, AND THEN, THE FARTHEST
TO THE RIGHT SHOWS HOW MANY OF
THE TOTAL TAX FILERS THAT
REPRESENTS. AND SO, FOR EXAMPLE,
WITH THE NEW EXEMPTION, AND
LOOKING AT THE CONSTRUCTION
CATEGORY, 2557 BUSINESSES WOULD
BE EXEMPT FROM THE TAX. SO THIS
IS LOOKING AT INCREASING THE
EXCEPTIONS ARE SHORT FROM
$100,000-$2 MILLION. AT THE
BOTTOM OF THIS TABLE -- WHICH
DIDN'T FERMENT PROPERLY IN THIS
SLIDE -- SHOWS THE TITLE OF THE
16,000 TAXPAYERS WHICH REPRESENT
75% OF THE TOTAL TAX FILERS IN
2024. I WOULD DROP THE NUMBER OF
BUSINESSES OWING TAX TO A
FACSIMILE 25,000. ESTABLISHING
RATES TO THIS PROPOSAL INDICATED
THE IMPACT OF THAT HIGHER
THRESHOLD WOULD BE $28.4
MILLION. THE NEW $2 MILLION
STANDARD DEDUCTION, AGAIN,
RELYING ON THE FORECAST AND
ANALYSIS WOULD ACCEPT 10.8
MILLION DOLLARS OF REVENUE FROM
THE TAX BASE FOR THE 5000
REMAINING TAXPAYERS. IT
ESTIMATES THE IMAGES THROUGH $.3
MILLION FOR THAT PIECE. [
INAUDIBLE ] THERE IS ACTUALLY AN
ADDITIONAL CHANGE TO THE
BUSINESS LICENSE FEE WHICH IS
BASED ON TAXABLE REVENUE BECAUSE
THE EXEMPTION AND STANDARD
DEDUCTION IMPACT WOULD IMPACT
THE TAXABLE REVENUE , AND
ADJUSTMENT NEEDS TO BE MADE TO
NOT HAVE UNINTENDED CONSEQUENCES
FOR THE BUSINESS LICENSE FEE BY
WAY OF LOST REVENUE FOR THAT
CHANGE. THE FINAL PIECE AT THE
BOTTOM IS THE ACTUAL RATE
CHANGES IN THE ORDINANCE,
SHOWING THE TWO DIFFERENT LARGE
SECTORS , BUSINESS TYPE, CURRENT
RATES, PROPOSED RATE, AND THEN
THE CHANGE. THE ACTUAL CHANGE IN
THE RATE. AND THEN A COLUMN TO
SHOW HOW MUCH THAT RATE CHANGE
INCREASED FOR EACH MILLION
DOLLARS OF REVENUE EARNED. SO
FOR THE LOWER 2.22% RATE, EACH
ADDITIONAL $1 MILLION OF REVENUE
WOULD INCUR A $1200 ADDITIONAL
TAX. SIMILARLY, FOR SERVICES
UNDER OTHER, THE RATE CHANGE
WOULD INCUR ABOUT $2300 PER
TAXED REVENUE. [ INAUDIBLE ] IT
WOULD GENERATE $151 MILLION IN
REVENUE IN 2026 BASED ON
FORECAST ESTIMATES WITH STATED
CAVEATS AND RISKS THAT I WILL
COVER LATER. SO THIS SHOWS,
BECAUSE SEATTLE IS OPERATING IN
A REGIONAL CONTEXT, THIS SHOWS
THAT THE DIFFERENT RATES CHARGED
BY REGIONAL PEERS AND SEATTLE IN
TERMS OF OUR CURRENT TAX RATES,
AND THE PROPOSAL. AS YOU CAN
SEE, SEATTLE DOES CURRENTLY
CHARGE THE HIGHEST RATES IN THE
REGION ON THE TWO BUSINESS TYPES
THAT ARE ASSESSED RATES WITH THE
NEXT LARGEST BEING THE CITY OF
TACOMA. I WOULD POINT OUT THAT
BELLEVUE AND REDMOND -- I MEAN
REDMOND AND KIRKLAND DO NOT
IMPOSE A BUSINESS AND OCCUPATION
TAX. THEY IMPOSE A DIFFERENT
KIND OF TAX. A HEAD TAX. SO THEY
ARE NOT INCLUDED IN THIS CHART.
AND JUST TO CLOSE THE RIGHT
PORTION OF THE BAR SHOWS THE
INCREASE. THIS CHART SHOWS -- IT
BUILDS A BIT ON THE PRESENTATION
YOU WERE SHOWN IN DEPUTY MAYOR
WONG'S PRESENTATION. THERE ARE
DIFFERENT EXAMPLE BUSINESS
TYPES. THIS IS A POINT WHERE I
WILL PAUSE AND SAY A LOT OF THE
INFORMATION IS KIND OF IN
GENERIC TERMS AND THAT IS BY
DESIGN. BUSINESS TAXPAYER
INFORMATION RECEIVED AND
ADMINISTERED BY THE CITY OF
SEATTLE IS CONFIDENTIAL AND WE
DO NOT HAVE DIRECT ACCESS TO
THAT INFORMATION. WE ARE
SIMILARLY NOT ABLE TO PROVIDE
IT. IF WE CAN PROVIDE EXAMPLE
NUMBERS OF SIZE OF BUSINESS TO
GIVE A SENSE OF HOW THIS TEXT
IMPACTS DIFFERENT LEVELS OF
INCOME. SO, WITH THAT SAID, THIS
IS LOOKING AT THE IMPACTS OF THE
CHANGE TO THE RETAIL WHOLESALING
MANUFACTURING RATE, SHOWING THE
TAXES THAT WOULD BE DUE WITH THE
CURRENT STRUCTURE AND THEN WITH
-- WHAT THE TAXES WOULD BE WITH
THE RESEARCHER. AT THE $55.7
MILLION OF REVENUE LEVEL,
THAT'S WHERE YOU -- IF THE
INFLECTION POINT BETWEEN WHETHER
THERE IS A LOWER TAX BILL OR
HIGHER TAX BILL AS WE GO INTO
THIS PROPOSAL. SO, ESSENTIALLY,
IT WITH THE WORD TAX . OR NO
TAX. TAXPAYERS ABOVE THAT LEVEL
WOULD PAY A HIGHER TAX. AND
AGAIN, IF THERE ARE ANY
TAXPAYERS AT HALF $1 BILLION
REVENUE -- THE LOWEST ROW OF
THIS CHART -- THAT HAVE $1
BILLION IN ANNUAL TAXPAYER
REVENUE -- THE DIFFERENCE WOULD
BE JUST SHY OR JUST A LITTLE
OVER HALF $1 MILLION. [
INAUDIBLE ] SO THIS CHART SHOWS
SIMILAR COMPARISONS FOR THE
HIGHER RATE. THE .427%. AND
AGAIN, THE INFLECTION POINT IS
ABOUT $5.7 MILLION, WHETHER THE
TAX BILL IS LOWER OR HIGHER. AND
I'M LOOKING AT THE BOTTOM. THEY
SIMULATED HALF $1 BILLION
TAXPAYER. THE IMPACT WOULD BE
APPROXIMATELY $1.1 MILLION.
THANK YOU.
>> SAID THIS FAIRLY SIMPLE SLIDE
IS IMPORTANT BECAUSE IT RECAPS
HOW THESE PIECES OF THE
REBALANCE HANG TOGETHER. AS I
COVERED THE COST OF INCREASING
THE EXEMPTION FROM $100,000-$2
MILLION, IT'S ABOUT $21 MILLION
AS ESTIMATED BY THE FORECAST.
THE COST OF THE NEW $2 MILLION
DEDUCTION IS NOW $33 MILLION.
THOSE TWO CHANGES HAVE REDUCED
THE SIZE OF THE TAX BASE. THE
PROPOSAL AND ITS HIGHER TAX
RATES FOR THE TAXPAYERS
REMAINING WHICH GENERATES $151
MILLION. THE NET RESULT OF THOSE
CHANGES IS THE $90 MILLION
GENERAL FUND REVENUE. AND NOW
I'LL TURN IT OVER TO MY
COLLEAGUE. JEN.
>> YEAH. THANK YOU. RIGHT. I
WILL SPEND A FEW MOMENTS TALKING
ABOUT THE NET REVENUE AND THE
USE OF THAT NET REVENUE IN THIS
ORDINANCE. AGAIN, THE NET
REVENUE IS WHAT IS LEFT AFTER
ACCOUNTING FOR THE COST OF THE
HIGHER EXEMPTION THRESHOLD AND
THE $2 MILLION STANDARD
DEDUCTION. UNDER THE ORDINANCE,
THE NET REVENUE MUST FUND
INVESTMENTS IN THE FOLLOWING
PROGRAM AREAS. FOOD ACCESS,
GENDER-BASED VIOLENCE SUPPORTS,
HOMELESSNESS PREVENTION,
EMERGENCY SHELTER, AND SUPPORT
FOR WORKERS RIGHTS AND
PROTECTIONS AND SMALL-BUSINESS
SUPPORTS. JUST FOR SOME OVERALL
CONTEXT, THERE IS ROUGHLY ABOUT
145 MILLION IN THE GENERAL FUND
AND ABOUT 10 MILLION OF P.E.T.
SUPPORTING THOSE AREAS. [
INAUDIBLE ] NEXT SLIDE. SO, OUT
OF THAT 90 MILLION, THE
ORDINANCE SAYS, AS WELL, THAT UP
TO $30 MILLION IN PROCEEDS MAY
BE USED FOR TWO PURPOSES. AND I
THINK YOU CAN THINK OF THAT
FIRST SLIDE AS BEING 60 MILLION
AVAILABLE FOR BACKFILL, OR TO
SUPPORT EXISTING INVESTMENTS THE
CITY IS MAKING. THEN UP TO 30
MILLION OF THE 90 BEING
AVAILABLE TO SUPPORT ONE OF TWO
THINGS -- OR I SHOULD SAY TO
SUPPORT TWO THINGS. ONE IS THE
IMPLEMENTATION COSTS. RELATED TO
IMPLEMENTING THIS RESTRUCTURING
OF THE B & O TAX AND THE COST OF
THE ONGOING ADMISSION OF THE
TAX. CITY FINANCE STAFF
ESTIMATES THAT THE INITIAL COST
TO IMPLEMENT THIS PROGRAM IS
ABOUT 2.3 MILLION. THAT IS JUST
CHANGES TO THE I.T. SYSTEM. THE
I.T. SYSTEM THE CITY HAS TO
ADMINISTER THE TAX AND THEN
APPROXIMATELY 1.5 MILLION IN
ONGOING COSTS INCLUDING
PERSONNEL. ALSO NOTE THAT THERE
IS POTENTIAL THAT IMPLEMENTING
THIS CHANGE TO THE B & O TAX
SYSTEM COULD CAUSE THE CITY TO
HAVE TO MAKE ADDITIONAL CHANGES
OR IMPROVEMENTS TO THE I.T.
SYSTEM THAT ADMINISTERS THE
TAXES SO THAT COULD RESULT IN AN
ADDITIONAL $2.7 MILLION COST.
THE SECOND USE OF THIS UP TO 30
MILLION IS TO MITIGATE THE
IMPACT OF FEDERAL FUNDING
REDUCTIONS IN THE AREAS OF
HOUSING STABILITY FOR LOW INCOME
TENANTS, FOOD INSECURITY,
FINANCIAL STABILITY FOR
AFFORDABLE HOUSING PROVIDERS,
AND EMERGENCY SHELTER AND
HOMELESSNESS. THIS IS TO HELP
MITIGATE THE FEDERAL FUNDING
REDUCTIONS IN THESE AREAS. JUST
A COUPLE EXAMPLES. THESE ARE
REALLY MEANT TO BE ILLUSTRATIVE
EXAMPLES OF PLACES WHERE THIS
KIND OF FUNDING COULD BE USED.
YOU KNOW, THERE ARE INDICATIONS
-- I HAVEN'T HAD A CHANCE TO
LOOK AT THE BILL THE SENATE
APPROVED BUT LOOKING AT THE
CONTINUING RESOLUTION THAT THE
HOUSE PASSED A COUPLE OF MONTHS
AGO, YOU KNOW, THERE IS A RISK
THAT CONTINUUM OF CARE FUNDING
WHICH SUPPORTS PERMANENT HOUSING
AND TRANSITIONAL PRODUCTS IN
SEATTLE, THAT FUNDING DOES
CONTINUUM OF CARE FUNDING COULD
BE REDUCED OR ELIGIBILITY
CRITERIA COULD BE CHANGED SUCH
THAT THOSE 28 PROJECTS WOULD NO
LONGER BE ELIGIBLE TO RECEIVE
THAT COC FUNDING. THAT IS A
POTENTIAL FEDERAL IMPACT . THAT
IS ONE ON THE HORIZON THAT
HASN'T OCCURRED YET. ONE
EXAMPLE THAT DID OCCUR IT WAS
H.U.D. HAD APPROVED --. [
INAUDIBLE ] IT WAS A RENTAL
VOUCHER FOR THOSE HOUSEHOLDS.
H.U.D. COMMITTED TILL 2030.
EARLY THIS YEAR, THEY SAID THEY
WOULD BE ENDING FUNDING AT -- IN
2006. THERE ARE HOUSEHOLDS THAT
ARE AT RISK OF LOSING THAT
VOUCHER NEXT YEAR. NEXT SLIDE.
SO YOU SAID THESE PROCEEDS WILL
BE MORE OF AN ART THAN AN
SCIENCE. LEGISLATION SAYS THAT
FUNDS SHALL BE USED FOR THIS
PURPOSE. BUT HOW EXACTLY THAT
PLAYS OUT WILL DEPEND ON A
NUMBER OF FACTORS INCLUDING, YOU
KNOW, WHAT UPDATED REVENUE
FORECASTS LOOK LIKE THIS SUMMER,
AS WELL. PART OF THE ORDINANCE
REALLY REQUIRES THE EXECUTIVE TO
CONSULT WITH CITY COUNCIL AROUND
THEIR PROPOSED USE OF FUNDING.
AT LEAST THREE MONTHS PRIOR TO
THAT THEY ARE TRANSMITTING THE
BUDGET TO CITY COUNCIL, THE
EXECUTIVE IS REQUIRED TO CONSULT
WITH COUNCIL ON THE IMPACT OF
ACTUAL AND ANTICIPATED REVENUE
REDUCTIONS, AND FEDERAL FUNDING
CUTS INDY IDENTIFIED PROGRAM
AREAS, SO THE PROGRAM AREAS WE
DISCUSSED IN THOSE TWO PRIOR
SLIDES AND ALSO REQUIRES THE
EXECUTIVE TO INFORM COUNCIL HOW
THAT NEW REVENUE GENERATED BY
THIS ORDINANCE IS TO BE
UTILIZED. AND THEN WHEN THE
MAYOR DOES TRANSMIT HIS BUDGET,
AND A PROPOSED PLAN, IT IS
REQUIRED, OUTLINING HOW THE NEW
REVENUE GENERATED BY THIS
ORDINANCE IS TO BE UTILIZED IN
THE IDENTIFIED PROGRAM AREAS.
I'LL TURN IT BACK TO TOM.
>> THANK YOU, JEN. I'LL JUST
COVER A FEW POLICY
CONSIDERATIONS. [ INAUDIBLE ] TO
CONSIDER WITH THIS PROPOSAL. AS
I PREVIOUSLY MENTIONED, THIS
PROPOSAL WOULD REALLY DECREASE
THE SIZE OF THE TAXPAYING BASE
FOR THE B & O TAX. SO, WHAT THAT
DOES IS ADDS TO THE VOLATILITY.
YOU HAVE FEWER TAXPAYERS IN THE
MIX. THE DECISIONS OF ANY ONE OF
THOSE INDIVIDUALS BECOMES MORE
IMPORTANT IN TERMS OF THE TOTAL.
SIMILAR TO SOME OF THE RISK
CHARACTERISTICS WE HAVE SEEN
WITH THE EXPENSE TAX -- YOU KNOW
THAT IS FOCUSED ON AN EVEN
SMALLER BASE. WITH REGARDS TO
THE PAYROLL EXPENSE TAX, THIS IS
ONE OF THE RECENTLY ADOPTED AND
MODIFIED CITY TAXES, AS YOU CAN
SEE HERE. FROM THE SIMILAR OR
SAME TAX BASE. THERE WAS A
PAYROLL EXPENSE TAX ADOPTED IN
2020. IT WAS INCREASED WITH NEW
REVENUES TO GENERATE MONIES FOR
STUDENT MENTAL HEALTH IN 2022.
THEN THE BALLOT PROPOSITION
APPROVED IN 2024. IT ADDED A NEW
TAX WHICH WE HAVE NOT YET SEEN
THE FIRST FULL YEAR OF
COLLECTIONS FROM IN 2024. ALL
THAT TO SAY THE TAX BASE THAT IS
PAYING THE B & O TAX IS ALSO
PAYING THE PAYROLL EXPENSE TAX
AND THERE HAVE BEEN A SERIES OF
SUCCESSIVE CHANGES WHICH COULD
GENERATE AN ADVERSE BUSINESS
RESPONSE FOR BUSINESSES
OPERATING IN SEATTLE THAT ARE
PAYING BOTH TAXES. THAT IS MADE
ACUTE BY THE FINAL OBSERVATION
THAT ABOUT A THIRD OF THIS TAX
INCREASE WOULD BE IMPOSED ON THE
65 INDIVIDUAL TAXPAYERS THAT PAY
THE BULK OF OR 87% OF THE TOTAL
P.E.T. IN 2024. THERE IS A
FOCUSED IMPACT THAT WAS NOTED BY
THE FORECAST OFFICE IN THEIR
ASSESSMENT OF THIS PROPOSAL.
NEXT, ALSO COMING FROM THE
FORECAST OFFICE, THERE IS ALWAYS
PRESENT FORECAST RISK NOT JUST
WITH THIS ESTIMATE BUT WITH ANY
ESTIMATE OF REVENUES, AS WE
HARKEN BACK TO THE ASSESSMENTS
DURING THE FORECAST
PRESENTATION. THERE WAS A 40 TO
50% RISK OF A NATIONAL RECESSION
OVER THE NEXT 12 MONTHS. DUE TO
CHANGES AT THE FEDERAL LEVEL.
YOU KNOW, STILL RECOVERING FROM
THE PANDEMIC. SO, AGAIN, THAT
COULD IMPACT THIS ESTIMATE. THEY
COULD ALSO IMPACT OTHER CITY
REVENUES, AS WELL. IN THE MEMO
THAT IS ATTACHED TO THE SUMMARY
FISCAL NOTE, WHICH I SUGGEST THE
COMMITTEE MIGHT REVIEW, THE
IMPACTS FOR THE STATE LAW
CHANGES THAT I NOTED EARLIER
FROM SENATE BILL 5814 IS BASED
ON AND IN PERFECT SOURCE OF
INFORMATION. THE FORECAST OFFICE
IS MAKING AN ASSESSMENT ON HOW [
INAUDIBLE ] , WHICH FEEDS INTO
THE ESTIMATE THEY ARE PROVIDING.
IT IS A MATTER OF ALL REVENUE
FORECASTS ARE GUESSES. THIS
INFORMATION ISN'T PERFECT FOR
MAKING A GUESS. NOW, TURNING
FROM THE REVENUE SIDE, LOOKING
MORE AT THE IMPLEMENTATION SIDE,
THERE ARE TWO KEY IMPLEMENTATION
RISKS I WOULD HIGHLIGHT. ONE IS
SLIM. I DO NOT KNOW -- I SHOULD
KNOW WHAT S.L.I.M. STANDS FOR,
BUT I WILL TELL YOU IT IS THE
CITIES TAX ADMINISTRATION
SYSTEM. IT IS A LEGACY SYSTEM.
IT HAS A SERIES OF MODIFICATIONS
TO KEEP UP WITH TAX CHANGES.
OPPOSITE -- THE OFFICE OF CITY
FINANCE HAS INDICATED THAT TO
MEET THE JANUARY 1st TIMELINE
DOSE THEY WOULD HAVE HAVE THESE
CHANGES IN PLACE. THEY WOULD
NEED TO BEGIN THAT WORK NOW TO
MEET THAT TIMELINE AND INCUR
THOSE COSTS PRIOR TO HAVING A
VOTE ON THIS PROPOSAL FOR THE
VOTERS IN NOVEMBER. [ INAUDIBLE
] THAT IMPLEMENTATION WOULD NEED
TO START NOW IF COUNCIL SINCE
THIS PROPOSAL TO THE VOTERS.
THERE ARE RISKS WITH DOING THAT
IMPLEMENTATION. SOME OF THEM OR
MANY OF THEM ARE COMMONPLACE.
WITH ANY TYPE OF SYSTEM CHANGE,
THE KEY PERSONNEL THAT HAVE
INSIGHTS INTO HOW THE SYSTEMS
WORK NEED TO BE AVAILABLE TO
MAKE THOSE CHANGES. AND THEIR
INTERACTIONS BETWEEN THE CITY
SYSTEMS AND BETWEEN THE LARGER
FILE LOCAL DATABASE WHICH IS
MAINTAINED AT A REGIONAL LEVEL
FOR CITIES THAT HAVE A SIMILAR B
& O TAX. ALL OF THAT INTEGRATION
AND IMPLEMENTATION WOULD NEED TO
BE CLOSELY COORDINATED WITHIN
CITY AND EXTERNAL PARTNERS.
HOWEVER, THE EXECUTIVE TENT --
INTENDS TO [ INAUDIBLE ] THOSE
RESOURCES TO MEET THOSE RISKS.
IF THERE IS A CHANGE IN SCOPE,
THAT WOULD REQUIRE A
REASSESSMENT OF RISKS. THE NEXT
RISK IS PERHAPS AN OBVIOUS ONE
BUT BECAUSE OF THE SEQUENCING OF
THIS, IF APPROVED BY COUNCIL TO
GO ON TO THE VOTE, THE EXECUTIVE
WITHIN BE ABLE TO SUBMIT A
BUDGET THAT DEPENDS ON 70. THAT
BOUNCES WITH IT. IF THE MEASURE
WERE TO FAIL IN NOVEMBER,
COUNCIL WOULD BE IN A POSITION
TO SWIFTLY FIGURE OUT HOW TO
RESOLVE THAT DIFFERENCE.
BASICALLY, IT'S AN ESTIMATED
$90 MILLION OF REVENUE. I WOULD
NO LONGER BE THERE. AND IF THE
OCTOBER REVENUE FORECAST IS IN
FACT -- COMES IN LOWER, DURING
THE COUNCIL'S DELIBERATIVE
PROCESS ON THE BUDGET, THAT
WOULD MAKE THAT PRESSURE EVEN
MORE FOCUSED AND ACUTE. AND THAT
IS THE END OF MY PRESENTATION. [
INAUDIBLE ]
>> THANK YOU, TOM. THANK YOU,
JENNIFER, FOR YOUR
PRESENTATIONS. WE'VE HAD 62
MINUTES OF PRESENTATIONS . IT IS
MY UNDERSTANDING THAT YOU NEED
TO LEAVE IN 10 MINUTES?
>> YES.
>> I'M GOING TO TURN IT OVER TO
COUNCILMEMBER SAKA FOR QUESTIONS
FIRST. THAT MEANS COUNCIL
PRESIDENT AND COUNCILMEMBER
KETTLE, IF EITHER OF YOU
BELIEVE, WE LOSE QUORUM. IF YOU
NEED TO USE THE RESTROOM, NOW IS
THE TIME TO GO. COUNCILMEMBER
SAKA.
>> THANK YOU, MR. CHAIR. THANK
YOU, EVERYONE, FOR THE
PRESENTATION TODAY. I'VE BEEN
CONSISTENT SINCE I'VE BEEN IN
OFFICE THAT WE ALWAYS NEED TO
RELY ON A BALANCED APPROACH TO
INSERT YOUR -- YOUR THORNY
SOCIETAL PROBLEM THAT WE NEED TO
ADDRESS HERE. THE BUDGET DEFICIT
CRISIS. SOME OF THE FEDERAL
UNCERTAINTY, AND SO, WITH
RESPECT TO THE BUDGET, A
BALANCED APPROACH, AS I'VE
ALWAYS MAINTAINED, INCLUDES AN
EXTRA STREAM RUNNING FUNCTIONS,
CONSOLIDATING CERTAIN PROGRAMS
AND SERVICES, ALIGNING
INVESTMENTS TO CURRENT CITY
PRIORITIES. NOT LEGACY
PRIORITIES OF YESTERYEAR.
REDUCTIONS IN SPENDING, AND YES,
NEW REVENUE OPTIONS. WE NEED A
MIXTURE -- A BALANCED APPROACH.
SO THAT'S WHY I WANT TO THANK
MAYOR HAROLD AND COUNCILMEMBER
RINCK FOR PUTTING THIS FRAMEWORK
TOGETHER. I THINK BEFORE IT GOES
TO VOTERS, WE NEED TO FINE-TUNE
SOME OF THE DETAILS. BECAUSE
DETAILS MATTER. BUT, IN MY VIEW,
IT IS A SOLID INITIAL FRAMEWORK,
AND I ULTIMATELY TRUST VOTERS TO
MAKE THE BEST DECISION. BUT
AGAIN, I THINK WE WILL NEED TO
FINE-TUNE A FEW THINGS. I AM A
LITTLE CONFUSED, OR -- YEAH.
$6.5 MILLION IN INITIAL
OPERATIONAL IMPLEMENTATION
COSTS. $2.3 MILLION IN COSTS TO
ADMINISTER THE TANKS. $1.5
MILLION OF ONGOING COSTS. $2.27
MILLION OF ADDITIONAL ONGOING
POTENTIAL COSTS TOTALING $6.5
MILLION. THAT IS ROUGHLY 14% OF
THIS TAX POTENTIALLY GOING TO
OVERHEAD ALONE. MIND YOU,
WHENEVER LAUNCHING A NEW
INVESTMENT PROGRAM SERVICE IN
THE PRIVATE SECTOR, OFFERING
WIDGET -- THERE'S ALWAYS GOING
TO BE SOME -- EIGHT -- A SHOT
NONTRIVIAL AMOUNT OF OVERHEAD .
THAT IS A LOT FOR THIS PROPOSAL.
I THINK A LOT OF THIS WAS PUT
TOGETHER THOUGHTFULLY BUT ALSO
UNDER A VERY TIGHT TIMELINE. I
WOULD LIKE TO SEE THE MAYORS
OFFICE WORK WITH F.A.S. TO GET
THAT NUMBER DOWN TO A MORE
PALPABLE NUMBER. I WILL JUST SAY
THAT. I THINK IT'S A GOOD
INITIAL FRAMEWORK THAT NEEDS
SOME ADDITIONAL FINE-TUNING.
BEFORE VOTERS DECIDE. NO
QUESTIONS. BUT IF ANYONE WANTS
TO RESPOND TO THAT, THAT'S
FINE.
>> THANK YOU, COUNCILMEMBER
SAKA. I SEE SOME HANDS ON THE
COMMITTEE TABLE. I'LL START
WITH JENNIFER LABRECQUE.
>> I JUST WANT TO BE CLEAR THAT
THE ONGOING COSTS ARE 1.5
MILLION RELATED TO PERSONNEL.
THERE WILL CERTAINLY BE 2.3
MILLION IN ONE-TIME COSTS
RELATED TO SYSTEM CHANGES AND
POTENTIALLY ANOTHER 2.7 MILLION
IN ONE-TIME COSTS TO ALLOW FOR
AN ACCELERATED SYSTEM
REPLACEMENT. OUT OF THAT TOTAL,
ABOUT 6.3 -- 5 MILLION IS
ONE-TIME COSTS. NOT ONGOING
COSTS.
>> WE ARE CERTAINLY HOPEFUL THAT
WE WILL NEED TO SPEND ALL OF THE
POTENTIAL ADMINISTERED OF COSTS
-- ESPECIALLY IF WE DON'T NEED
TO DO ANYTHING DRAMATIC BECAUSE
THE SYSTEM HOLDS UP. WE WON'T
HAVE TO INCUR THE LAST -- I
DON'T KNOW THE NUMBER IS --
HALF $1 MILLION OR SO -- OF
COSTS. THE BASE IS $90 MILLION
SO IF IT DOES COST 6 MILLION, I
CALCULATE THAT IS SUBSTANTIALLY
LESS THAN 14%. WE CAN COMPARE
NOTES AFTERWARDS. I AM SOMEHOW
DOING DIFFERENT DIVISION THAN
YOU ARE. I WOULD ALSO NOTE WE
ARE TALKING ABOUT BRINGING IN
ENOUGH REVENUE FOR NET $1
MILLION TO ADDRESS THAT SEVERAL
CATEGORIES OF SPENDING, BUT
THERE IS AN ADDITIONAL
APPROXIMATELY $60 MILLION OF
REVENUE THAT NEEDS TO COME IN IN
ORDER TO ADDRESS THE THRESHOLD
CHANGE AND THE DEDUCTION. THE
GROSS AMOUNT OF REVENUE WHICH
THE STAFF AND SYSTEMS HAVE TO
ACCOUNT FOR IS MORE LIKE $150
MILLION. 60 OF WHICH IS A SHIFT
AMONG THE REMAINING TAXPAYERS.
90 MILLION IS THE NET NEW
REVENUE AVAILABLE TO FUND THE
GENERAL FUND DEFICIT
ADMINISTRATIVE COSTS AND SOME
BACKFILL OF ANY FEDERAL PULLBACK
OF GRANT SUPPORTS.
>> THANK YOU.
>> COUNCILMEMBER SAKA, ANYTHING
FURTHER ON THIS? NO? THANK YOU.
COUNCILMEMBER KETTLE. I SEE YOU
HAVE A HAND. OH, YOU ARE STILL
ON MUTE.
>> YES. THANK YOU, CHAIR
STRAUSS. I APPRECIATE IT. I ALSO
WANTED TO THANK DEPUTY MAYOR
WONG AND INTERIM DIRECTOR NOW
EDER, WITH OUR CENTRAL STAFF
DIRECTOR NOBLE AND MS.
LABRECQUE. I HAVE NOT SEEN THE
LEGISLATION YET. I HAVE HAD SOME
VERBAL BRIEFINGS BUT I HAVE NOT
SEEN THE ACTUAL LEGISLATION. I
JUST WANTED TO, YOU KNOW, MAKE
SOME OBSERVATIONS FROM MY
PERSPECTIVE ON THIS. RELATED TO
THE B & O TAX LEGISLATION, I
DON'T THINK WE CAN BE LOOKING
AT THIS LEGISLATION IN
ISOLATION. I THINK WE SHOULD BE,
YOU KNOW, MINDFUL OF WHAT THE
STATE HAS BEEN RECENTLY DOING
WITH THE B & O TAX AND ALSO WITH
THE OTHER TAX AND REVENUE
OPTIONS. REVENUE OPTIONS -- THE
ACTIONS THAT HAVE BEEN TAKEN BY
THE STATE. ALSO, WHAT HAS BEEN
HAPPENING HERE LOCALLY. THAT WAS
INCLUDED IN THE PRESENTATION, SO
THANK YOU FOR THAT. ALSO, I
BELIEVE ANY ACTION ON B & O TAX
SHOULD BE PART OF A BROADER TAX
STRATEGY. THEY CAN'T BE A ONE
OFF. WE TEND TO DO ONE OFFS.
WITH THE [ INAUDIBLE ] AND THEN
WE HAVE THE SOCIAL HOUSING
PEACE, AND YOU CAN COUNT OTHER
LEVEES, TOO. WE HAD THIS
INCREMENTALISM AND WE NEED TO IN
THAT IT IN AN OVERALL STRATEGY
-- AND STRUCTURAL TAX REFORM
STRATEGY, AS WELL. I WOULD ARGUE
THIS IS GOOD GOVERNANCE AND
ULTIMATELY -- I KNOW WE ARE 25
-- WE ARE TALKING '26, BUT IN A
LOT OF WAYS, WE NEED TO BE
TAUGHT -- SETTING OURSELVES UP
FOR SUCCESS IN 2027.
>> OH, HE WENT ON MUTE,
COUNCILMEMBER KETTLE, ON
ACCIDENT THERE. WE HEARD YOU SAY
WE NEED TO BE SETTING OURSELVES
UP FOR 2025 AND 2026.
>> WE ARE WORKING 2025 AND
WORKING TOWARDS 2026 BUT WE NEED
TO BE SETTING OURSELVES UP FOR
SUCCESS FOR THE '27 BIENNIAL --
BIENNIUM . WE HAVE TO UNDERSTAND
HOW THIS INTERACTION WITH THE
PAYROLL EXPENSE TAX, YOU KNOW,
AND ONE PIECE HERE, TOO, AND I
AM NOT A FAN OF THE ALLEGATIONS.
THESE BUCKETS THAT WE KEEP
HAVING. WE HAVE OUR
RESPONSIBILITIES. THE MAYOR HAS
HIS RESPONSIBILITIES TO THE
CITY. AS DIRECTOR EDER WAS
SAYING, THE BUCKETS DON'T
NECESSARILY CHANGE, OR THESE
ALLEGATIONS DON'T NECESSARILY
CHANGE AND WE FIND YOURSELVES IN
A SITUATION WHERE, YOU KNOW, WE
HAD TO GO BACK AND CHANGE THOSE
ALLOCATIONS. I, FOR ONE, AM NOT
A FAN OF THE ALLOCATIONS THAT WE
TEND TO BE PUTTING ON ALL THESE
PIECES OF LEGISLATION. I WANTED
TO ADD, TOO, AND I'M GOING TO
MAKE A PLUG RIGHT NOW THAT WE
NEED A SEATTLE HOUSING
INVESTMENT PLAN. I HAVE BEEN
TALKING ABOUT THIS. THIS IS
SOMETHING THAT HAS COME UP IN
LAST YEAR'S BUDGET. THE BOTTOM
LINE IS O.H., THE OFFICE OF
HOUSING NEEDS TO GO THROUGH THE
SAME PROCESS THAT S. WENT
THROUGH TO BUILD OUT THE
TRANSPORTATION PLAN. WHY IS THIS
EVIDENT? WE NEED TO HAVE A
REVENUE LAY DOWN. LATE THESE
PIECES OUT IN TERMS OF HOUSING
TO GAIN UNDERSTANDING ALONG
WITH, WHAT ARE WE DOING WITH THE
VARIOUS HOUSING OPTIONS? IT
COULD BE AFFORDABLE HOUSING.
SOCIAL HOUSING. HAVE A PLAN THAT
SHOWS THE STRATEGY OF HOW WE ARE
GOING TO BE DOING THESE HOUSING
PIECES. AND MAKE SURE THAT IT IS
DONE RIGHT. THE WAY THAT
S.D.O.T. DOES IT, IT IS ALL
THERE. WE NEED A SEATTLE HOUSING
PLAN. THAT IS THERE. I BRING
THIS UP BECAUSE THEN, AS PART OF
THE STRATEGY, WE CAN LOOK AT,
BECAUSE THERE ARE MULTIPLE
PIECES TO THE HOUSE AND REVENUE
BASE. WE CANNOT BE DOING THIS IN
ISOLATION, AGAIN, FROM B & O,
FROM PAYROLL EXPENSE TAX AND THE
LIKE. GOOD GOVERNANCE. WE CAN
TALK ABOUT AUDITS AND VIDEOS.
PUTTING IT THROUGH THE SAME
PROCESS THAT S.D.O.T. GOES
THROUGH, IT WOULD HELP IN TERMS
OF DEVELOPING THESE TAX
STRATEGIES THAT WE ARE LOOKING
AT. SO I THINK THAT IS AN
IMPORTANT PIECE THAT WE NEED TO
BE TALKING ABOUT. THIS IS NOT
JUST ABOUT B & O. NOW WE HAVE,
AS MENTIONED PREVIOUSLY, THE .1
PUBLIC SAFETY SALES TAX PIECE.
IT IS NOT BROKEN TO A LOT. THE
LEVEES PIECE. THIS GOES TO THE
SHIP, THE HOUSING PEACE WITH THE
HOUSING LEVY. THE SOCIAL HOUSING
LEVY. IT GOES TO OTHER AREAS, AS
WELL. AS ALLUDED TO IN THE
BRIEFING STEPS AND THANK YOU FOR
THE PRESENTATIONS TO
UNDERSTANDING THE SECOND AND
THIRD ORDER EFFECTS , YOU KNOW,
THAT WHAT WE ARE TRYING TO DO --
MAKING SURE IT IS IN SYNC WITH A
BROADER STRATEGY -- TAX STRATEGY
-- IS GOING TO DO US GOOD. THIS
IS GOOD GOVERNANCE AT THE BOTTOM
LINE. AND I ALSO SAY GOOD
GOVERNANCE IS ALSO, LIKE, WHAT
CAN WE DO TO ENHANCE AND BUILD
UP THE TRADITIONAL REVENUE
STREAMS. I THINK THIS IS WHERE
THE COUNCIL AND CITY HAS DONE
GOOD WORK. WE HAVE SALES TAX. B
& O. WE HAVE DONE COMMERCIAL
RESIDENTIAL. WE DID DESIGN
REVIEW HOLIDAYS. WE ARE TRYING
TO PROMOTE THESE TRADITIONAL
REVENUE PIECES. WE NEED TO BE
SUPPORTING THE IMPORT EXPORT
PIECE BECAUSE IT IS SO HUGE IN
TERMS OF OUR BUDGET REVENUE. HOW
CAN WE SUPPORT THEM? FINALLY AS
PART OF THE STRATEGY, TOO, AND
IT HAS BEEN ALLUDED TO HERE AND
THERE, WE NEED TO BE ENGAGING,
YOU KNOW, AND THIS IS ONE
QUESTION I HAD FOR MR. EDER --
WE ARE DEALING WITH PUBLIC
SAFETY CHALLENGES. WHEN AT
INTERSECTIONS WITH PUBLIC HEALTH
BUT AS A STATE GOT MENTAL HEALTH
SPENDING IS [ INAUDIBLE ] AND
EVEN WITH THE UPTICKS IN
SPENDING ON MENTAL HEALTH OVER
THE LAST BUT A PART OF A
THICKET, WE ARE NOT IN THE TOP
50% OF THE STATES IN OUR
COUNTRY. WE ARE LIKE 32nd OUT OF
50 STATES. YOU KNOW. WE SHOULD
BE TOP 10. TOP 20. IN THE TOP
HALF, BUT WE ARE NOT. THIS IS A
PIECE WHERE YOU TALK ABOUT THOSE
BUCKETS. THE RESPONSIBILITY
FALLS WITHIN THE COUNTY AND THE
STATE. WE SHOULD BE ENGAGING ON
THIS BASIS AND ENSURING THAT
THOSE PIECES ARE THERE, AND
HIGHLIGHTING THAT, AND DOING IT
IN A GOOD SEATTLE ONE WAY. MR.
CHAIR, I JUST WANTED TO NOTE
THESE PIECES. AGAIN, I HAVE NOT
SEEN THE LEGISLATION. I
RECOGNIZE THE POINT THAT WE DO
NEED TO TAKE ACTION. WE NEED TO
-- NEVERMIND WHAT IS HAPPENING
AT THE FEDERAL LEVEL. WE ARE
GOING TO HAVE THESE CHALLENGES
IN THE FIRST PLACE. UNLESS THE
FEDERAL WAS TO COME IN
POSITIVELY DOSE THAT'S NOT
GOING TO HAPPEN, OBVIOUSLY, YOU
KNOW, WITHOUT THE CURRENT
ADMINISTRATION SO WE NEED TO BE
DOING THIS. AND SO MY CALL IS,
OKAY. LET'S LOOK AT THE B & O
TAX LEGISLATION. LET'S MAKE
SURE THAT THE NEXT 70. THIS IS
PART OF THE OVERALL STRATEGY IN
TERMS OF TAX STRATEGY --
STRUCTURAL TAX REFORM STRATEGY
THAT SETS OURSELVES UP FOR
SUCCESS IN THE LONG RUN. I THINK
THAT WAS A BIT OF A LONG POINT
BUT I THINK IT'S IMPORTANT TO
MAKE AND I REALLY APPRECIATE ALL
THOSE INVOLVED IN THIS PROCESS
AS WE LOOK TO ADDRESS OUR
DEFICIT AND BASICALLY OUR
PHYSICAL CHALLENGES THAT WE
FACE. THANK YOU, CHAIR.
>> THANK YOU, COUNCILMEMBER
KETTLE. I WILL SECOND YOUR
COMMENTS REGARDING GETTING OUR
SEATTLE HOUSING PLAN IN
SHIPSHAPE. I THINK IT'S
IMPORTANT THAT WE DO THAT TO
MAKE SURE THAT WE ARE INVESTING
IN HOUSING IN STRATEGIC AND
CORRECT WAYS. I SEE
COUNCILMEMBER HELEN
HOLLINGSWORTH HAS HER HAND UP.
COUNCILMEMBER HOLLINGSWORTH,
BEFORE YOU JOINED, I NOTED THAT
THE DRAFT ORDINANCE IS ATTACHED
TO THE REGISTRAR CLERK FILE
TODAY. I WILL SHARE MY SCREEN TO
SHOW WHERE THAT IS AT THIS TIME.
AND SO, COLLEAGUES, YOU CAN SEE,
WE MOVE FROM ALL OF THE MEETINGS
AT THIS WEEK WITHIN THE FINANCE,
NATIVE COMMUNITY AND TRIPLE
GOVERNMENT -- WE HAVE THE
INFORMATION ITEM BEFORE US AND
THE DRAFT ORDINANCE ATTACHED
HERE.
>> CHAIR STRAUSS, MAY I ADD
SOMETHING QUICKLY? SPECS ARE
PRETTY SPEC WE SEND OUT AN
UPDATED VERSION OF THE ORDINANCE
YESTERDAY AFTERNOON AND WE WILL
REPLACE OR ADD THE UPDATED
VERSION OF THE ORDINANCE TO THE
LEDGER START AFTER TODAY'S
MEETING. I SAW COUNCIL
PRESIDENT'S HAND BUT GREAT.
COUNCILMEMBER HOLLINGSWORTH.
>> THANK YOU. THANK YOU, CHAIR.
I KNOW I DON'T SIT ON THE
COMMITTEE BUT I APPRECIATE YOU
ALWAYS INVITING OTHER
COUNCILMEMBERS TO JOIN. I ALSO
APOLOGIZE THAT MY CAMERA HAS
BEEN WONKY. I'M JUST GOING TO
USE THE AUDIO TODAY. I JUST
WANTED TO THANK YOU, MAYOR
HARRELL AND COUNCILMEMBER RINCK,
FOR BRINGING THIS LEGISLATION
FORWARD. I THINK IT'S A GREAT
START, AND, YOU KNOW, THE
FRAMEWORK IS THERE. ONE OF THE
THINGS I WANTED TO ELEVATE --
AND IT IS NOT NECESSARILY A
QUESTION. I HAVE TALKED TO THE
EXECUTIVE ABOUT THIS AND OTHER
COUNCILMEMBERS, AND BROUGHT THIS
-- GROCERY STORES -- ESPECIALLY
THOSE IN DENSE URBAN CENTERS
LIKE SEATTLE -- ARE STRUGGLING
MORE THAN WHAT I THINK PEOPLE
REALIZE AND THEY OPERATE ON
RAZOR THIN MARGINS BETWEEN ONE
AND 3% AND THEY ARE FACING
GROWING PRESSURES TO SHRINKAGE,
THEFT, SUPPLY-CHAIN ISSUES, AND
RAISING COST AND SECURITY. I
KNOW THEY MIGHT APPEAR
PROFITABLE FROM THE OUTSIDE DUE
TO THEIR GROSS REVENUE, BUT THE
NET INCOME TELLS A COMPLETELY
DIFFERENT STORY. AND I JUST WANT
TO ELEVATE , NOT ALL BIG
BUSINESSES ARE THE SAME. I THINK
GROCERY STORES ARE VERY
DIFFERENT THAN YOUR TRADITIONAL
OTHER BUSINESSES THAT COULD
POTENTIALLY BE IN THE CITY THAT
ARE BIGGER. SOME OF THE PEOPLE
THAT WE REALLY RELIED ON FOR A
LOT OF THE TAX REVENUE FOR TAXES
AND OTHER SOURCES. [ INAUDIBLE ]
WE HAVE SEEN A LOT OF PHARMACIES
SHUTDOWN, FROM RITE AID TO
MARTEL'S. THE LIST GOES ON.
GROCERY STORES, PARTICULARLY
SAFEWAY, THEY HAVE THOSE FIRMS
THESE IN THEIR STORE TO SERVICE
PEOPLE. WE TALK ABOUT FOOD
ACCESS DESERTS BUT WE ALSO HAVE
PHARMACY DESERTS ALL ACROSS OUR
CITY RIGHT NOW AND WHEN THE
MERGER WAS GOING TO HAPPEN
BETWEEN KROGER -- THEY LISTED 60
SORES THAT WERE GOING TO SHUT
DOWN -- AND A LOT OF THEM WERE
IN THE SEATTLE AREA -- OR WERE
GOING TO BE SOLD AND NOW KROGER
HAS COME OUT AND SAID, HEY, WE
WANT TO SELL SOME STORES OR
CLOSE SOME STORES -- AND I AM
VERY NERVOUS ABOUT THE TWO QFCS
THAT ARE ON BROADWAY. SO,
BASICALLY -- AND I KNOW THERE
ARE LEGAL CHALLENGES WHEN YOU
TALK ABOUT A CARVEOUT. THERE ARE
ALL OF THESE THINGS. WHEN WE ARE
THINKING ABOUT TAXES, THAT WE
ARE TREATING GROCERY STORES VERY
DIFFERENTLY THAN OTHER DIFFERENT
TYPES OF BUSINESSES BECAUSE THEY
ARE LIFELINES TO OUR COMMUNITY
FOR FOOD ACCESS PARTICULARLY. I
KNOW WE HAVE BUCKETS FOR FOOD
ACCESS. THAT IS THROUGH OUR
PROGRAMS, WHETHER IT IS FRESH
BUCKS OR FOOD BANKS. THERE'S A
SLEW OF FOOD PROGRAMS WE HAVE
FOR THE CITY, BUT GROCERY STORES
ARE PLACES WHERE PEOPLE HAVE
SNAP. THEY DO SNAP BENEFITS.
THEY DO DIFFERENT TYPES OF [
INAUDIBLE ] OR THEY HAVE
DIFFERENT TYPES OF PROGRAMS THAT
GROCERY STORES DO. FOOD BANKS
ALSO GET A TON OF RESOURCES FROM
THOSE GROCERY STORES. A LOT OF
THE FOOD THAT IS NOT SOLD GETS
REPLENISHED BACK INTO OUR FOOD
BANK SYSTEM AND MAIL PROGRAM
SYSTEM. THOSE DONATIONS ARE
DONE. I JUST WANT TO ELEVATE
GROCERY STORES RIGHT NOW WHEN WE
ARE THINKING ABOUT TAXES BECAUSE
THOSE BUSINESSES ARE VERY
DIFFERENT THAN YOUR TRADITIONAL
BIG BUSINESSES THAT WE ARE
TALKING ABOUT IN SEATTLE. THANK
YOU, CHAIR.
>> THANK YOU, COUNCILMEMBER
HOLLINGSWORTH. ALWAYS FOCUSED ON
FOOD BECAUSE THAT IS HOW WE KEEP
OUR KIDS OUT OF TROUBLE. THAT IS
HOW WE KEEP OUR KIDS SAFE. IF
OUR KIDS ARE OUT OF TROUBLE AND
SAID, THEN EVERYONE IS SAFE.
WITH THAT, COUNCILMEMBER RINCK,
DID YOU HAVE SOMETHING YOU
WANTED TO RESPOND TO RIGHT
THERE?
>> YEAH. I DID IF I WANT --
THANK YOU, CHAIR. I WANT TO
EXPRESS MY APPRECIATION FOR
COUNCILMEMBER HOLLINGSWORTH FOR
MAKING THESE POINTS. WE WANT TO
MAINTAIN OUR FOOD ACCESS AND
UNDERSTANDING AS WE ARE ENGAGING
ON THIS PROPOSAL TO UNDERSTAND
ALL THE PARAMETERS HERE,
UNDERSTANDING THAT GROCERY
STORES ONE OF THE POINTS THAT
HAS BEEN RAISED IN THIS
DISCUSSION DOSE WE HAVE FOUND IN
OUR ENGAGEMENT THAT WE ARE
SEEING A NUMBER OF OUR FOOD
BANKS AND FOOD RECOVERY FROM
GROCERY STORES GOING DOWN, WHICH
HAS BEEN A CONCERNING TREND THAT
WE'VE HEARD FROM FOOD ACCESS
FOLKS THAT WANT TO TRY TO FIND
BALANCE AGAIN IN THIS PROPOSAL
TO KEEP STEADY STREAMS OF
RESOURCES GOING IN BUT WE'VE
ALSO COME TO UNDERSTAND THAT
PARTICULARLY WITH KROGER AND
ALBERTSONS, THEIR NET REVENUES
SEEM HIGH IN TERMS OF
PROFITABILITY BUT RATHER, THEY
CONTINUE TO BE PROFITABLE, BUT,
HAVE FOUND THAT THEY ARE CROSS
SUBSIDIZING WITH OTHER STREAMS
OF BUSINESS, SO I KNOW THERE IS
A LARGER PICTURE GOING ON HERE
WITH THAT PARTICULAR INDUSTRY
AND THAT IS SPECIFIC FOR SOME OF
OUR LARGER GROCERS BUT AS WE ARE
GOING THROUGH THIS DISCUSSION
WITH GROCERY STORES IN
PARTICULAR, IT IS IMPRINTED
ELEVATE THE INFORMATION WE ARE
FINDING OUT ABOUT THE SECTOR AND
WILL CONTINUE TO ENGAGE WHEN IT
COMES TO SMALLER GROCERS, AS
WELL. I THINK WHAT WE PUT
FORWARD HERE OFFERS A GOOD
OPPORTUNITY IN TERMS OF THE
FEDERAL BACKFILL COMPONENT TO
FIND WAYS TO SCALE UP OUR [
INAUDIBLE ] PROGRAM. WE SEE TIME
AND TIME AGAIN THAT THAT PROGRAM
IS A GREAT LOCAL REINVESTMENT
TOOL, GETTING DOLLARS BACK TO
OUR LOCAL GROCERS. I WANTED TO
OFFER THAT AND HAVE A DISCUSSION
ABOUT GROCERY STORES IN THIS
PROPOSAL. THANK YOU, CHAIR.
>> THANK YOU. COUNCIL PRESIDENT.
>> FIRST GOT WHO PROPOSE THIS?
WAS IT COUNCILMEMBER RINCK? WAS
THIS YOUR PROPOSAL OR THE MAYORS
, TO HELP ME FIGURE OUT TO HIM I
SHOULD DIRECT THIS QUESTION?
>> AS I STATED AT THE BEGINNING
OF THAT MEETING, WE ARE TREATING
THE MAYORS TEAM AND
COUNCILMEMBER RINCK AS
COSPONSORS. I WILL DELEGATE TO
EITHER OR BOTH.
>> WHAT SMALL BUSINESS OUTREACH
HAS BEEN CONDUCTED SO FAR AND
WITH HIM?
>> SO I CAN TAKE THAT FIRST. OUR
OFFICE OF ECONOMIC DEVELOP HAS
BEEN SENDING OUT INFORMATION
ABOUT THE IMPACTS OF THIS TO
THEIR SMALL BUSINESS NETWORKS.
THEY ARE THE MOST IN TOUCH WITH
THIS COMMUNITY OF SMALL
BUSINESSES. WE HAVE REACHED OUT
TO INDIVIDUAL SMALL BUSINESSES,
AS WELL. I KNOW THE
COUNCILMEMBER HAD SOME, AS WELL.
WE HAD A NUMBER OF THEM AT THE
PRESS CONFERENCE ANNOUNCING
THIS. WE WERE ABLE TO SPEAK
ABOUT THE IMPACT OF THIS ON THE
COMMUNITY AND WE LOOK FORWARD TO
REALLY EDUCATING FOLKS MORE, AS
WELL. AS I MENTIONED, WE THINK
THIS IS REALLY BENEFICIAL TO THE
VAST MAJORITY OF SMALL
BUSINESSES, IF NOT ALL OF THEM.
WE WELCOME THOSE CONVERSATIONS.
>> COUNCILMEMBER, I DON'T KNOW
IF YOU WANTED TO ADD ANYTHING
THERE.
>> CERTAINLY. AS THIS IS A JOINT
PROPOSAL, THE MAYORS OFFICE AS
WELL AS OUR OFFICE HAS BEEN
ENGAGING WITH SMALL BUSINESS
STAKEHOLDERS, WHETHER THEY ARE
INDIVIDUALS, BUSINESSES,
RESTAURANTS, COFFEE SHOPS,
VIDEOGAME ARCADES, BUT ALSO SOME
OF OUR SMALL BUSINESS CHAMBERS,
SO LOOKING AT, LIKE, WEST
SEATTLE CHAMBER. I KNOW WE HAVE
HAD SOME CONVERSATIONS WITH
GSSBA, [ INAUDIBLE ] AS WELL AS
TOUCHING BASE WITH PARTNERSHIPS.
EACH OF THOSE CHAMBERS HAS A
RANGE OF MEMBERS FROM LARGE AND
SMALL. BUT ONE OF THE WAYS WE
HAVE HAD TOUCH POINTS WITH SOME
OF THE BUSINESS ALLIANCES AS
WELL AS INDIVIDUAL BUSINESSES.
>> COUNCIL PRESIDENT. BUT
BECAUSE IT IS BEING CALLED THE
SMALL-BUSINESS RELIEF FUND. I
DON'T KNOW HOW YOU PRESENTED
IT, BUT NOW, I FEEL LIKE I'M IN
THE POSITION OF NEEDING TO DO
OUTREACH, AS WELL, TO FIND OUT
WHAT PEOPLE THINK. THAT IS OUR
JOB, TO DR. OUR CONSTITUENTS. I
WOULD LOVE TO HAVE A LIST OF THE
FOLKS THAT YOU HAVE ALREADY
SPOKEN WITH SO I DON'T HAVE TO
REPEAT THAT. I KNOW THAT GS BE A
-- WHICH IS USUALLY JUST
REFERRED TO AS G SBA -- IT USED
TO BE KNOWN AS THE GREATER
SEATTLE BUSINESS ASSOCIATION --
ANYWAY, THEY REPRESENT LGBTQ
PLUS BUSINESSES. THEY ARE NOT
SUPPORTIVE. IT SAYS GSBA GIVES
TAX BREAKS TO SEATTLE'S
SMALLEST BUSINESSES AND IT SAYS
WE SHOULD DO THIS ALREADY. IT
SAYS, HOWEVER, THE TAX INCREASE
ON MEDIUM-SIZE BUSINESSES WILL
FURTHER CONTRIBUTE TO OUR
CITY'S STAGNATING ECONOMY. 2
MILLION IN GROSS REVENUE MIGHT
SOUND LIKE A LOT OF MONEY BUT
FACTORING IN THE EXTREMELY HIGH
COST OF DOING BUSINESS IN
SEATTLE, MANY OF THESE
BUSINESSES STRUGGLE TO STAY
AFLOAT. SO I -- IS THERE ANY
COMMENT ON THAT?
>> DEPUTY MAYOR WONG, AND THEN [
INAUDIBLE ]
>> MY UNDERSTANDING IS THAT IT
WAS OUTREACH TO GSBA . THEY MAY
HAVE A MORE NUANCED VIEW ON
THAT. I BELIEVE THERE IS A QUOTE
IN THE PAPER, BUT WE'VE HAD
ONGOING CONVERSATIONS WITH THEM
AND WE WELCOME THOSE
CONVERSATIONS. YOU KNOW. THE
PROPOSAL WILL LOWER TAXES ON 90%
OF BUSINESSES THAT PAY THEM NOW
AND THAT FEELS LIKE A GOOD
BUSINESS PROPOSAL. GOOD BUSINESS
ENVIRONMENT, AND AGAIN, WE
ALWAYS WELCOME THE CONVERSATIONS
SO PEOPLE UNDERSTAND WHAT IT IS,
AND ANY MATERIALS YOU NEED AS
YOU GO FORTH AND DO YOUR
CONSTITUENT ENGAGEMENT, PLEASE
LET US KNOW AND WE ARE HAPPY TO
PROVIDE THOSE MATERIALS TO YOU
SO THAT YOU CAN ALSO HAVE THOSE
CONVERSATIONS.
>> SMALL BUSINESSES ARE DIVERSE.
[ INAUDIBLE ] IN TERMS OF WHAT
THEY DO, AND THEIR PERSPECTIVES
ON THINGS, BUT WHEN WE GET 90%
OF BUSINESSES BENEFITING FROM
THIS, ON BALANCE, WE THINK THAT
IS A HEALTHY PROPOSAL.
>> THANK YOU. COUNCILMEMBER
RINCK, THEN WE WILL COME BACK TO
YOU, COUNCIL PRESIDENT.
>> BUILDING ON THAT POINT --
THANK YOU, DEPUTY MAYOR WONG --
THIS PROPOSAL WAS ITERATED UPON
AS WE STARTED THE EARLY
ENGAGEMENT ON THE PART OF MY
OFFICE AND THE ADDITION OF THE
STANDARD DEDUCTION OF 2 MILLION
WAS AN ATTEMPT TO TRY TO ADDRESS
SOME OF THE MEDIUM-SIZED
BUSINESS CONCERNS. I WANT TO BE
CLEAR ABOUT THAT POINT AND I
KNOW THE LAST CONVERSATION WE
HAD WITH GSBA BEFORE GOING
PUBLIC, THEY EXPRESSED
APPRECIATION FOR BEING
RESPONSIVE TO SOME OF THOSE
POINTS THEY RAISED, PARTICULARLY
ABOUT BUSINESSES THAT HAD $2
MILLION IN GROSS REVENUE. I WANT
TO NAME THAT POINT THAT WE'VE
TRIED TO TAKE FEEDBACK INTO
ACCOUNT WHEN DEVELOPING THE
PROPOSAL THAT WE LANDED ON BUT
WE ARE GOING TO CONTINUE OUR
ENGAGEMENT TO MAKE SURE WE GET
THERE AND WELCOME THOSE
CONVERSATIONS.
>> THANK YOU. COUNCIL PRESIDENT.
>> YEAH. WHAT I WAS GOING TO SAY
TO THE EXECUTIVE AND TO
COUNCILMEMBER RINCK IS THAT ONE
WOULD THINK THAT ELIMINATING OR
EXEMPTING A BUSINESS WOULD
NATURALLY BE GREETED WITH
ENTHUSIASM AND THEREFORE RESULT
IN SUPPORT OF THE PROPOSAL,
HOWEVER, A LOT OF SMALL
BUSINESSES RELY ON MEDIUM AND
LARGE BUSINESSES FOR THEIR
BUSINESS, ET CETERA. THAT IS WHY
IT IS IMPORTANT FOR ME TO NOTE
WHAT KIND OF FEEDBACK YOU'VE
GOTTEN BECAUSE THERE'S A LOT OF
DIFFERENT KIND OF SMALL
BUSINESSES AND DEPENDING ON THE
SECTOR AND CLASSIFICATION AND
THE PROFIT MARGINS ARE ALL
WILDLY DIFFERENT AND THAT IS
WHAT ENDS UP REALLY, YOU KNOW,
MAKING THE DIFFERENCE ABOUT THE
SUCCESS OF A BUSINESS BEING ABLE
TO SURVIVE IN THIS ECONOMY RIGHT
NOW. IS THERE ANY PROVISION TO
PERHAPS EXEMPT THE OTHER CITY
TAXES THAT WILL BE CHARGED? SO
FOR EXAMPLE, P.E.T.. WAS THAT
EVER CONSIDERED? OR COULD THERE
BE --
>> SORRY. IS THIS A QUESTION FOR
CENTRAL STAFF OR SPONSORS?
>> WHOEVER THOUGHT OF THE
PROPOSAL.
>> I WILL PASS IT TO DEPUTY
MAYOR AND THEN COUNCILMEMBER
RINCK, AND TOM, IF YOU HAVE
ADDITIONAL INFORMATION FROM
THERE, GO FOR IT.
>> THERE ARE TWO PIECES TO
RESPOND TO ON THAT. FIRST IS
WHEN WE WERE DEVELOPING THIS, WE
WERE LOOKING AT DIFFERENT
PROPOSALS AND I OVER THE YEARS,
THERE HAS BEEN DISCUSSION OF ARE
THERE CHANGES IN P.E.T. THAT
SHOULD HAVE BEEN? [ INAUDIBLE ]
AND WE TOOK THIS AS THE MOST
REASONABLE APPROACH FOR WHAT THE
OUTCOMES WERE THAT WE WANTED.
THERE WAS NOT A TRADE-OFF ON
WHAT THAT P.E.T. WOULD LOOK
LIKE. I THINK THAT GETS TO
COUNCILMEMBER KETTLE'S DESIRE
TO HAVE THIS LARGER CONVERSATION
ABOUT HOW DOES OUR TAX
STRUCTURES -- HOW DO THEY PLAY
TOGETHER WITH THIS COMMEMORATIVE
IMPACT. ONE OTHER THING THAT IS
NOT IN THIS LEGISLATION THAT THE
MAYOR COMMITTED TO HIS
COMMISSIONING INDEPENDENT
BUSINESS ENVIRONMENT STUDY
WHICH, AS WE TALKED ABOUT
BEFORE, THERE'S A LOT OF
FACTORS THAT GO INTO WHAT MAKES
A BUSINESS THRIVE OR NOT THRIVE.
TAXES ARE ONE SMALL PART OF THAT
CONVERSATION BUT THEY ARE PART
OF IT. AND WE WANT TO KNOW. IS
SEATTLE A GOOD PLACE TO DO
BUSINESS RIGHT NOW? WHAT ARE THE
CHALLENGES? ONCE WE CAN GET THAT
INDEPENDENT DATA, THEN IT CAN
HELP INFORM THE POLICY DECISIONS
THAT YOU WILL BE ABLE TO ACT ON.
WE WILL BE DOING THAT. ALSO,
THINK ABOUT HOW WE APPROACH
BUSINESS IN A LARGER SENSE THAN
JUST TAXES. I THINK IT HAS BEEN
CLEAR THAT THE MAYOR HAS BEEN
SUPPORTIVE OF OUR BUSINESS
COMMUNITY. AND HELPED OUR
DOWNTOWN BUSINESSES THRIVE, BUT
THE CITY. AND WHAT WE HEAR FROM
BUSINESSES THE MOST -- AND THIS
GETS TO THE QUESTION ON GROCERY
STORES. I SHARE THE CONCERN --
THE NUMBER ONE THING WE ARE
ASKING IS ACTUALLY NOT AROUND
TAXES. IT'S AROUND PUBLIC
SAFETY, WHEN WE SEEK SHRINKAGE
IN STORES FROM LOSSES. WHEN WE
SEE, YOU KNOW, PEOPLE WHO MAY BE
ACTING OUT HER CRIMINAL AND
THEY'RE NOT BEING ENOUGH
ENFORCEMENT MECHANISMS. THAT IS
WHERE WE ENGAGED WITH THEM. I
KNOW YOU HAVE SEEN SOME OF THE
-- WE HAVE DONE ON PUBLIC SAFETY
IN TERMS OF POLICE RECRUITMENT.
THANK YOU FOR YOUR CONFIRMATION
THE OTHER DAY. HE WILL BE A
SIGNIFICANT CHANGE FACTOR. WE
RECEIVED OVER 4000 APPLICATIONS
TO SBDU LAST YEAR. WHEN WE CAME
INTO OFFICE, THAT WAS NUMBER WAS
AT 2100. BY INCREASING PUBLIC
SAFETY AND INVESTMENTS IN
ECONOMIC DEVELOPMENT, STOREFRONT
REPAIR -- ALL OF THESE THINGS WE
DO -- WE LOOK AT HOW WE SUPPORT
SMALL BUSINESSES HOLISTICALLY
AND WE ARE COMMITTED TO
CONTINUING TO DO THOSE THINGS
WHILE WORKING THROUGH ALSO THIS
TOUGH REVENUE AND TAXATION
QUESTION.
>> COUNCILMEMBER RINCK.
>> I JUST SPEAK FROM THE
PERSPECTIVE OF MY OFFICE ON THIS
MATTER. I DON'T THINK IT SHOULD
BE ANY SURPRISE AFTER MY FIRST
COUNCIL MEETING WHEN WE WERE
DISCUSSING OUR STATE LEGISLATIVE
AGENDA, I PREFER THAT AN
AMENDMENT TO ADD URGE THE STATE
LEGISLATURE TO LOOK AT [
INAUDIBLE ] FIRST WHEN
CONSIDERING TAX POLICY. I WANT
TO GO TO A POINT RAISED BY
COUNCILMEMBER SAKA --
COUNCILMEMBER KETTLE FOR OUR
STATE. AS WE HEARD FROM THE
REPORT FROM DIRECTOR NOBLE, WE
HAVE LIMITED OPTIONS AT THE
LOCAL LEVEL IN TERMS OF BEING
ABLE TO RAISE NEW REVENUE AND
OUR TAX TOOLS HAVE LIMITATIONS,
SO CONSIDER THIS AN INVITATION
TO BE WORKING TOGETHER AS WE
THINK ABOUT WHAT WE APPROACH ALL
YET WITH IN THIS COMING YEAR.
IT'S CLEAR A NUMBER OF LOCAL
GOVERNMENTS ARE FACING
STRUCTURAL DEFICITS AND
CHALLENGES SO I JUST WANTED TO
VOICE, AGAIN, WHEN WE ARE
CONSIDERING TAX PROPOSALS
BEFORE, WE WERE LOOKING AT BEING
ABLE TO BRING IN NEW REVENUE AND
TO BE ABLE TO ADDRESS THESE
BUDGET CHALLENGES AND MAKE SURE
THAT WE ARE SAFEGUARDING THESE
SERVICES AND WE LANDED ON B & O
AS ONE OF THE OPTIONS TO MEET
THIS MOMENT.
>> COUNCIL PRESIDENT.
>> THOSE ARE MY QUESTIONS FOR
NOW. I APPRECIATE YOU
RESPONDING. I WILL FOLLOW UP TO
FIND OUT JUST SO I CAN NARROW
DOWN MY INQUIRY. YOU MENTIONED
PUBLIC SAFETY. IT'S FUNNY. ONE
OF THE DIRECTORS AT ONE OF OUR
BUSINESS ASSOCIATIONS SAYS,
WELL, ARE WE GOING TO GET MORE
PUBLIC SAFETY AS A RESULT OF
PAYING HIGHER TAX? THAT WAS AT [
INAUDIBLE ] . I -- THE WORK IS
CUT OUT FOR I THINK ME AND MY
COLLEAGUES TO TRY TO NOW GET
FEEDBACK FROM THE PEOPLE THAT
WILL BE IMPACTED. I WOULD LIKE
TO THINK THAT IT REALLY IS SEEN
AS POSITIVE FOR THE MAJORITY OF
SMALL BUSINESSES BECAUSE OF
COURSE, THEY NEED THE MOST HELP.
I HOPE TO COME TO THAT
CONCLUSION MYSELF INDEPENDENTLY,
AS WELL, AFTER TALKING TO FOLKS.
>> THANK YOU, COUNCIL PRESIDENT.
I WOULD JUST SAY THAT I THINK
THIS PROPOSAL PROVIDES A LOT OF
BENEFIT FROM MY PERSPECTIVE FOR
MANY BUSINESSES IN THE CITY OF
SEATTLE AND DOES A GOOD JOB
SHOWING UP THE POTENTIAL REVENUE
LOSS WE WILL BE SEEN FOR A
NUMBER OF AGENCIES, ADDRESSING
OUR BUDGET SHORTFALLS HERE. ONE
THING THAT I WANT TO NOTE IS
THAT FOR A LOT OF THE
PROGRAMMING THAT I SEE ON THE
SPENDING PLAN, THEY ARE ALREADY
HAVING FEDERAL FUNDS CUT AND TO
BE FRANK, THEY COULD BE ON THE
CHOPPING BLOCK FOR THE CITY OF
SEATTLE, AS WELL. SO IT IS NOT
JUST A SINGLE CUT BUT A DOUBLE
CUT AT A TIME WHEN SOME OF OUR
MOST VULNERABLE COMMUNITIES
REALLY NEED OUR SUPPORT. [
INAUDIBLE ] AND ULTIMATELY, IT
IS NOT OUR DECISION. IT WILL BE
THE DECISION OF THE SEATTLE
VOTERS. I THINK THAT IS A
CRITICAL ELEMENT TO THIS
PROPOSAL. WITH THAT, I WILL
PROVIDE DEPUTY MAYOR WONG AND
THEN COUNCILMEMBER RINCK WITH
THE LAST WORDS. SORRY. NOT
CHECKING ZOOMED THERE FOR YOU.
COUNCILMEMBER KETTLE. SORRY. I
DIDN'T MEAN TO MAKE MY REMARKS
BEFORE I CALLED ON YOU. THERE
YOU ARE. THANK YOU FOR MAKING
YOURSELF KNOWN.
>> THANK YOU, CHAIR STRAUSS. I
DIDN'T WANT TO HAVE YOU MAKE
LAST REMARKS TWICE SO THANK YOU
FOR LETTING ME JUMP IN REALLY
QUICK. I JUST WANTED TO THANK
DEPUTY MAYOR WONG. THE POINT YOU
RAISE IN TERMS OF THE BROADER
STRATEGY PIECE IS REALLY
IMPORTANT, SO THE WAY YOU
PHRASED IT IS, GOING TO THE
POINTS THAT I MADE IN MY
COMMENTS -- SO I APPRECIATE
THAT. AND THIS IS AN
OPPORTUNITY, YOU KNOW, TO HAVE A
REFRESHED LOOK AT THESE OTHER
PIECES. NOT JUST B & O AND SEE
HOW THEY INTERACT AND HOW CAN WE
ENSURE THAT EVERYTHING IS GOOD
TO GO? YOU KNOW, MAYBE THERE IS
A TWEAK OR SOMETHING. I DON'T
KNOW, BUT I APPRECIATE THE
POINTS YOU MADE AND IN ADDITION,
THE OUTREACH IS THE ENVIRONMENT
POINT YOU MADE -- THAT IS
LONGER-TERM -- BUT THAT GOES TO
THE SAME KIND OF THINKING -- AND
I THINK THAT'S REALLY
IMPORTANT, SO, THANK YOU. AND
ALSO THANK YOU FOR BRINGING UP
PUBLIC SAFETY. AS I WAS GETTING
TOWARDS THE END, I SKIPPED OVER
A BULLET THAT I MADE TO MYSELF.
I WAS KEY TO THIS AND GOOD
GOVERNANCE IN THE BROADER PEACE
INSTEAD OF FINANCE AND BUDGET
AND THAT. THE PUBLIC SAFETY
PEACE AND THE POINT THAT WE HAVE
TO CREATE A SAFE AND INVITING
ENVIRONMENT FOR OUR BUSINESSES
SO THEN THEY CAN PAY, YOU KNOW,
SALES TAX AND ALL OF THE ABOVE.
AND WE HAVE MADE PROGRESS ON
THAT FRONT , BUT THERE IS STILL
SO MUCH WORK TO BE DONE BECAUSE
AS EVERYONE KNOWS BECAUSE
EVERYONE GETS THE SAME OUTREACH
THAT WE DO IN TERMS OF THE
CHALLENGES THAT WE STILL FACE,
THAT, YOU KNOW, THERE IS STILL
MORE WORK TO BE DONE, BUT AT THE
SAME TIME, WE ARE DEFINITELY
MOVING FORWARD IN TERMS OF
CREATING A MORE SAFE AND
INVITING INFIRMED. NOW, THE
CHALLENGE IS MAKING SURE THAT IT
IS FAR AND WIDE AND ACROSS ALL
ELEMENTS OF OUR CITY, SO I JUST
WANTED TO JUMP BACK ON THAT TO
FOLLOW UP WITH WHAT DEPUTY MAYOR
WONG SAID, AND THE COUNCILMEMBER
RINCK, YES. WE NEED TO WORK WITH
THE COUNTY AND STATE ON ALL
THOSE PIECES, SO, I THINK WE
HAVE OPPORTUNITIES THERE. ALL
RIGHT. SORRY, CHAIR. NOW, OVER
TO YOU FOR YOUR LAST COMMENT.
>> THANKS, COUNCILMEMBER KETTLE.
YOU GAVE ME AN OPPORTUNITY TO
CHECK THE LAST BULLET ON MY C --
SPEAKING POINTS THAT I PASSED
OVER. BUT I WILL BE DOING IN THE
NEXT FEW DAYS IS REVIEWING THIS
LEGISLATION IN DETAIL TO
UNDERSTAND WHAT CHANGES MAY OR
MAY NOT NEED TO BE MADE BECAUSE
IT IS IMPORTANT THAT WE GET THE
DETAILS RIGHT SO WE CAN MINIMIZE
UNINTENDED CONSEQUENCES AND
UNINTENDED EXTERNALITIES. WITH
THAT, I WILL BE PASSING THE MIC
BACK TO DEPUTY MAYOR WONG, AND
THEN COUNCILMEMBER RINCK FOR THE
FINAL WORD.
>> THANK YOU, CHAIR, AND COUNCIL
MEMBERS. I APPRECIATE ALL YOUR
QUESTIONS AND POINTS. THEY'RE
WELL TAKEN. THESE ARE DIFFICULT
PROBLEMS WE ARE TRYING TO SOLVE
AND I THINK WE DO SO BETTER WHEN
WE HAVE THESE DISCUSSIONS AND DO
TOGETHER, AND SO, I APPRECIATE
THAT. I LOOK FORWARD TO
FOLLOWING UP WITH YOU AS
NECESSARY AND WORKING WITH YOU
AND ULTIMATELY HELP FOR YOUR
SUPPORT IN SENDING THIS TO THE
PEOPLE TO DECIDE THIS DECEMBER.
-- NOVEMBER. THANK YOU.
>> THANK YOU, DEPUTY MAYOR.
COUNCILMEMBER RINCK.
>> I WANT TO THANK YOU FOR YOUR
TIME AND ENGAGEMENT. I WELCOME
OPPORTUNITIES TO WORK TOGETHER
ON THIS AND HEAVILY HAVE AN
OPPORTUNITY TO SEND THIS TO
VOTERS. I WANT TO TOUCH ON THREE
QUICK POINTS BEFORE WE CLOSE AT
TODAY.
>> COUNCIL PRESIDENT, IF YOU
LEAVE RIGHT NOW, WE LOSE QUORUM.
THANK YOU. JUST A FEW MORE
MINUTES, IF YOU WOULD. HOPEFULLY
BEFORE THEN, BUT YES.
>> I PROMISE NOT TO SPEAK FOR
MORE THAN FIVE MINUTES, COUNCIL
PRESIDENT. I WANT TO MAKE SURE
WE ELEVATE AND EMPHASIZE THAT
THE TIMING OF THIS, SHOULD IT GO
THROUGH, IS INTENDED TO BE
STRATEGIC. THIS WOULD KICK IN
BEFORE THE STATE B & O INCREASES
TAKEN. THE TIMING IS IMPORTANT
TO TAKE INTO ACCOUNT. SECONDLY,
I WANTED TO TOUCH -- IN MY OTHER
CAPACITY, I SERVE AS THE CHAIR
FOR POLICY CHANGE. TO WALK
THROUGH SOME OF THE MOST
CONCERNING CUTS COMING OUR WAY
THAT WE ARE AWARE OF, THAT COULD
BE COMING OUR WAY RELATED TO
CONTINUUM OF CARE FUNDING. THAT
COULD GO AWAY. BETWEEN THE CITY
AND COUNTY -- THIS HOUSE IS 4500
HOUSEHOLDS USING THIS FUNDING.
MANY OF THOSE INCLUDE PSH. THAT
PAIRED WITH I KNOW IN THE
COMMITTEE WE HAVE HONORED SO
MUCH OF OUR CORE SERVICE
PROVIDERS SUCH AS DESC. IT POSES
A CHALLENGE FOR OUR MEDICARE
SYSTEMS. THOSE ARE PROVIDERS
THAT CARE FOR THE MOST
VULNERABLE. I DON'T THINK ANY
OF US ARE INTERESTED OR WANT TO
SEE [ INAUDIBLE ] A BUILDING
SHUT ITS DOORS. [ INAUDIBLE ] .
THAT WAS ABOUT 500 HOUSEHOLDS.
THOSE FACTORS BEING ADMINISTERED
THROUGH SEATTLE HOUSING
AUTHORITY PRESENTS ANOTHER
CHALLENGE, AS WELL. THOSE ARE
JUST A COUPLE THAT I WANT TO
ELEVATE TO CONTEXTUALIZE AND
ALSO REALLY CENTER THE HUMANITY
OF THE KIND OF CUTS WE ARE
TALKING ABOUT AND THE IMPACTS
THAT WOULD LEAD TO OUR CITY.
I'LL CLOSE BY SAYING SMALL
BUSINESS ENGAGEMENT WILL
CONTINUE. I WANT TO THINK OF THE
MAYOR'S OFFICE FOR PREPARING
HELPFUL MATERIALS EXPLAINING
WHAT THIS B & O TEXT CHANGE
WOULD LOOK LIKE. REALLY WALKING
THROUGH AND HAVING SOME HELPFUL
TABLES ABOUT WHAT YOU CURRENTLY
PAY, WHAT IT WOULD LOOK LIKE
UNDER THIS PROPOSAL BASED ON THE
KIND OF BUSINESS YOU ARE, AND
HAPPY TO SHARE THOSE MATERIALS
AS FOLKS ARE GOING THROUGH THEIR
ENGAGEMENT WITH SMALL
BUSINESSES, THEIR DISTRICTS AND
AROUND THE CITY. WITH THAT, I
WANT TO THANK YOU AGAIN FOR YOUR
TIME ON THIS TODAY AND INVITE
YOUR ENGAGEMENT IN THE NEXT
COUPLE OF WEEKS AS WE HOPEFULLY
GET THIS THROUGH. THANK YOU.
>> THANK YOU, COUNCILMEMBER
RINCK. WITH THAT, IF THERE ARE
NO FURTHER QUESTIONS, OR
COMMENTS, THIS ITEM WILL COME
BACK BEFORE THE COMMITTEE
WHETHER IT IS THIS COMMITTEE OR
THE SELECT BUDGET COMMITTEE, AND
SEEING AS WE HAVE NO FURTHER
QUESTIONS, THANK YOU FOR
STICKING WITH ME UNTIL 1:00