GOVERNANCE,
ACCOUNTABILITY AND ECONOMIC
DEVELOPMENT COMMITTEE WILL COME
TO ORDER.
IT IS
2:02 P.M. I'M SARA NELSON, CHAIR
OF
THE COMMITTEE.
WILL THE CLERK PLEASE CALL THE
ROLL.
>> COUNCILMEMBER RIVERA.
COUNCILMEMBER SOLOMON.
>> HERE.
>> COUNCILMEMBER HOLLINGSWORTH.
>> HERE.
>> COUNCILMEMBER
KETTLE.
>>
HERE.
>> CHAIR
NELSON.
>> PRESENT.
>> FOUR
PRESENT.
>> THANK YOU VERY MUCH.
I'M SURE THAT
COUNCILMEMBER RIVERA WILL BE
JOINING US SOON.
ALL RIGHT, FOLKS, THIS IS THE
LAST GOVERNANCE, ACCOUNTABILITY
AND ECONOMIC
DEVELOPMENT COMMITTEE BEFORE
BUDGET, AND ON
TODAY'S AGENDA, ALL THREE ARE
ON
DECK. AND I'LL NOTE THAT
COINCIDENTALLY, TODAY'S
SEATTLE TIMES EDITORIAL SAYS,
"LAWMAKERS WILLING TO
ASK HARZ QUESTIONS AND TAKE ON
CONVENTIONAL WISDOM.
AUDITORS WHO ROLL UP
THEIR SLEEVES AND FOLLOW THE
MONEY.
THOSE ARE KEY ELEMENTS TO
EFFICIENT, CLEAN GOVERNMENT.
" AND THAT IS WHAT WE'LL BE
TALKING ABOUT TODAY.
SO, ITEM ONE LOOKS AT
ANNUAL CITYWIDE UNDERSPENDS.
IN OTHER WORDS, WHY IS
THE EXECUTIVE NOT SPENDING THE
MONEY THAT COUNCIL
ALLOCATES YEAR AFTER YEAR, UP TO
16.5%? AND WE'LL ALSO LEARN WHY
THE AUFLS OF HOUSING CURRENTLY
HAS $374 MILLION IN CASH
RESERVES
WHEN PEOPLE ACROSS THE CITY ARE
LIVING IN TENTS.
WHY NOT JUST GET THAT MONEY OUT
THE DOOR FASTER OR MAYBE
EVEN PAY PEOPLE'S RENT SO THEY
DON'T BECOME HOMELESS IN THE
FIRST PLACE?
THESE ARE SOME OF THE
QUESTIONS THAT I HEAR OUT THERE
WHEN I'M
TALKING TO CONSTITUENTS.
ITEM TWO IS LEGISLATION
TO STRENGTHEN THE CITY --
THE OFFICE OF THE CITY
AUDITOR, WHICH IS CRITICAL TO
COUNCIL'S
OVERSIGHT FUNCTION.
AND THEN, ITEMS 3, 4, AND 5
MAKE REQUESTED CHANGES TO
THREE NEIGHBORHOOD
BUSINESS IMPROVEMENT AREAS THAT
WILL
HELP OUR SMALL BUSINESSES
THRIVE.
AND REMEMBER, THAT'S -- THAT'S
WE DEPEND ON
FOR RUNNING THE CITY GOVERNMENT,
AND THOSE ARE JOBS AND ALSO
PLACES
IN
OUR COMMUNITIES THAT HOLD OUR
CITY TOGETHER.
SO, WITH THAT, IF
THERE'S NO OBJECTION, THE
AGENDA WILL BE
ADOPTED.
OKAY, HEARING NO OBJECTION, THE
AGENDA IS ADOPTED.
SO, LET'S JUST GO INTO
THE HYBRID PUBLIC COMMENT
PERIOD, BUT I WILL NOTE THAT
TODAY'S
DISCUSSIONS ARE
REALLY
IMPORTANT, AS I OPENED WITH,
BECAUSE IT'S OUR
LAST MEETING BEFORE BUDGET, AND
WE'RE
GETTING INTO LOTS OF REALLY
MEATY
MINUTIA, AND SO IF YOU --
AS WE'RE GOING THROUGH,
IF I DON'T SAY THIS WHEN WE GET
TO THIS
ITEM, IF YOU DO HAVE QUESTIONS,
PLEASE SIGNAL ME AND WE CAN
SLOW DOWN THE DISCUSSION BECAUSE
I REALLY WANT PEOPLE TO
BENEFIT AS MUCH AS POSSIBLE.
AND COUNCILMEMBER RIVERA HAS
JOINED US.
ALL RIGHT.
MOVING INTO THE PUBLIC
COMMENT PERIOD.
HOW MANY FOLKS ARE SIGNED UP
TO SPEAK TODAY?
>> WE HAVE ONE IN- PERSON AND
FIVE ONLINE.
>> ALL RIGHT.
OF COURSE,
LET'S GIVE TWO MINUTES
TO EACH PERSON, AND WE'LL START
WITH OUR
ONE IN- PERSON
SPEAKER.
>> OUR IN-
PERSON SPEAKER IS RYAN.
>> GOOD
AFTERNOON, COUNCILMEMBERS AND
COMMITTEE MEMBERS.
I'M FROM HABIT FOR HUMANITY
SEATTLE. JUST WANTED TO TAKE A
MOMENT
TO GIVE YOU AN IDEA OF HOW
WE WORK AND HOW THE FINANCING
HAPPENS FOR THE PROJECTS THAT WE
BUILD.
IT MAY SURPRISE SOME OF YOU,
AND I'M SURE SOME OF THE
PUBLIC AS WELL, BUT IT'S EASIER
FOR US AS
HABITAT TO BUILD
AFFORDABLE HOUSING HERE IN
SEATTLE
THAN MOST÷÷MOST JURISDICTIONS WE
PARTICIPATE IN, LARGELY
DUE TO THE FUND AVAILABILITY AND
THE
CITY'S COMMITMENT TO BE FIRST
ON THAT FUNDING.
LET ME ILLUSTRATE WITH A
REAL EXAMPLE THAT'S PERTINENT.
IN 2023, WE RECEIVED COMMITMENTS
FOR FIVE PROJECTS TOTALING
90 HOMES, INCLUDING OUR
K WAY JR. PROJECT, WHICH IS
ACTUALLY
ABOUT FOUR
PROJECTS. WE'RE PARTNERING WITH
AFRICAN COMMUNITY HOUSING
AND DEVELOPMENT AND ALSO HAVE
THE
YAROUGH BAY PROJECT.
THESE FUNDED PROJECTS WON'T
COMPLETE UNTIL 2026 THROUGH
2030, SO THEY'RE STILL
IN
PROCESS. THREE TO SEVEN-YEAR
DEVELOPMENT CYCLE.
THE OFFICE OF HOUSING'S
GRANT THAT WE RECEIVED FOR
THESE PROJECTS AND BECAME
OBLIGATED IN
2023 ARE DRAWN DOWN GRADUALLY AS
WE MOVE FORWARD WITH THE
PROJECTS THROUGH
DESIGN PERMITTING CONSTRUCTION.
EVERY DOLLAR IS COMMITTED AND
THEY'RE IMPORTANT TO US.
BY OBLIGATING FUNDS BUT
HOLDING THEM UNTIL EXPENDED, THE
OFFICE OF HOUSING AND THE CITY
OF SEATTLE SERVE AS GOOD
STEWARDS
OF THE PEOPLE'S
MONEY,
MAXIMIZING HOUSING PRODUCTION
OPPORTUNITIES WHILE ALSO HOLDING
US AND OTHERS ACCOUNTABLE.
THE CITY'S REPUTATION FOR
BEING FIRST IN, AND
HONORING COMMITMENTS MAKES IT
MUCH
EASIER FOR US TO FIND
ADDITIONAL
HOUSING FOR THESE PROJECTS AT A
REASONABLE PRICE POINT.
WE UNDERSTAND SEATTLE'S
BUDGET REALITIES BUT HAVE
SERIOUS
CONCERNS WITH
CONVERSATIONS ABOUT USING THESE
COMMITTED
FUNDS FOR OTHER PURPOSES. THANK
YOU VERY MUCH.
>> THAT WAS OUR ONLY IN-
PERSON SPEAKER.
WE WILL NOW MOVE ON TO THE
REMOTE PUBLIC COMMENT.
THE RULES ARE THE SAME. I'LL
CALL ON SPEAKERS IN
THE ORDER IN WHICH THEY'RE
SIGNED UP
TO SPEAK.
WHEN YOU HAVE THE CHIME,
YOU WILL
HAVE TEN SECONDS LEFT. IF YOU
EXCEED THAT TIME,
YOUR MICROPHONE WILL BE CUT OFF.
SPEAKERS WILL HAVE TWO MINUTES.
AND REMEMBER, PLEASE MAKE
SURE TO PRESS STAR 6 TO
UNMUTE YOURSELF.
OUR FIRST REMOTE COMMENTATOR IS
ALBERTO ALVAREZ.
ER IS ALBERTO ALVAREZ.
GO AHEAD, ALBERTO.
>> I FULLY SUPPORT THE OFFICE
OF HOUSING, THEIR MISSION OF
HELPING LOW-INCOME PEOPLE
KEEPS STABLE HOUSING AS
FOUNDATIONAL
WORK TO HELP DURING OUR
HOMELESS AND HOUSING CRISIS.
FROM HELPING WORKERS FIND
PROPER LIVING SPACES AND
PRESENTING
DISPLACEMENT OF LEGACY BLACK
AND BROWN RESIDENTS, THE OFFICE
OF
HOUSING HAS HELPED MANY PEOPLE
I
KNOW. FAMILIES, ELDERS, ELDERS
ON FIXED INCOME, AND YOUNG
WORKERS HAVE ALREADY BEEN MAKING
CRUCIAL
SACRIFICES JUST TO STAY AFLOAT.
AND WE ARE HEADED INTO A SEVERE
ECONOMIC DOWNTURN.
IF THE QUESTION IS, HOW MUCH
MONEY IS UNDERSPENT?
YOU, AS RESPONSIBLE
LEADERS, HAVE TO TAKE BOLD
ACTION AND GET
PROJECTS BUILT FROM EXPANDING
NEIGHBORHOOD CENTERS AND
PASSING MORE LEGISLATION LIKE
THE ROOTS
TO ROOF PROGRAM AS WELL AS
CURTAILING DESIGN REVIEWS
AND COUNTLESS ACTIONS THAT ARE
USED TO
DELAY THE PROCESS OR SOMETIMES
STOP THEM.
COUNCILMEMBERS MUST FAST- TRACK
BUILDING, NOT STEAL MONEY
AWAY FROM PROGRAMS THAT ARE A
SAFETY NET FOR STRUGGLING
FAMILIES,
ELDERS AND WORKING PEOPLE.
VOTE FOR DEION
FOSTER AND HAVE A GREAT DAY.
>> OUR NEXT
VIRTUAL SPEAKER IS LAUREN FEY.
>> GOOD AFTERNOON, COMMITTEE
CHAIR NELSON AND MEMBERS OF THE
COMMITTEE.
MY NAME IS LAUREN AND I'M
HERE TODAY REPRESENTING
THE ESC TO COMMENT ON AGENDA
ITEM 1
TO DISCUSS UNDERSPEND,
FISCAL MONITORING AND GRANTS.
WE BUILD, OPERATE AND
PROVIDE CRITICAL SERVICES TO
PEOPLE IN
HOUSING.
I GREW CONCERNED BY A MESSAGE
I SAW FROM COUNCILMEMBER NELSON
IMPLYING MILLIONS OF
DOLLARS MAY BE SITTING WASTING
AWAY.
THIS ISN'T THE CASE, AND I
WANT TO TAKE A MOMENT TO EXPLAIN
WHY.
I DO APPRECIATE THAT IT IS
THE RESPONSIBILITY OF THE CITY
AND THIS COUNCIL TO LOOK FOR ALL
UNUSED AND ABANDONED FUNDS TO
MAKE SURE THOSE ARE CIRCULATED
BACK INTO THE
COMMUNITY BEFORE
CUTTING ESSENTIAL PROGRAMS AND
TAXING FURTHER, BUT
ATTEMPTING TO BALANCE THE
CITY'S BUDGET
BY REDUCING COMMITMENTS
ALREADY MADE THAT HAVE NOT YET
BEEN FULFILLED
WILL CREATE A MUCH WORSE
DISASTER.
ALL BUT A
FEW MILLION OF THE HUNDREDS OF
MILLIONS OF
DOLLARS REFERENCED AS UNSPENT
HOUSING FUNDS ARE OBLIGATED FOR
PLANNED
HOUSING CONSTRUCTION OR
PRESERVATION.
THIS IS LARGELY RELATED
TO CAPITAL PROJECTS.
THE CITY PLAYS A VITAL
ROLE, OFTEN AS A FIRST PARTNER
WE
HAVE. FROM THERE, WE GO
SEEK OTHER PARTNERS FOR THE REST
OF
THE CAPITAL FUNDS REQUIRED.
WE NEED THE MONEY YOU PROVIDE TO
WAIT FOR US, BRIEFLY, WHILE
THIS AND OTHER
PREDEVELOPMENT ACTIVITIES
HAPPEN.
IF IT DIDN'T, WE
WOULDN'T HAVE THE PROOF OF
LEVERAGE
REQUIRED TO SECURE ANY OTHER
PARTNERS
IN THESE DEALS AND NO
AFFORDABLE HOUSING WOULD BE
BUILT.
GSC HAS A FEW PROJECTS RIGHT
NOW.
ONE OPENS IMMINENTLY IN
NOVEMBER. TWO OTHERS IN 2026.
THIS IS ALL IN VARYING STAGES
OF DEVELOPMENT, SO WE HAVE
NOT SOUGHT FULL REIMBURSEMENT
ON THESE CONTRACTS YET.
FOR OPERATING FUNDING, WE
HAVE -- THE YEAR
OR LONGER CONTRACT TERMS, AND
THESE
AREN'T ALWAYS ON THE SAME
CONTRACT CYCLES AS YOUR FISCAL
YEAR.
THESE ARE ALSO A
REIMBURSEMENT
MODEL. WE EXPECT AND TRULY NEED
THE MONEY TO BE THERE WHEN WE
SHOW PROOF OF WORK.
TRUST ME, WE WOULD FAR
PREFER TO BE PAID UP FRONT AND
ADVANCE AND WE'D BE HAPPY TO
DISCUSS THOSE
ARRANGEMENTS ANY
TIME. BUT PLEASE, I DO URGE YOU
NOT
TO COMPLETE THESE FUNDS AS
ACTUAL
UNDERSPENDS.
>> THANK YOU, LAUREN.
OUR NEXT SPEAKER IS SARA CLARK.
>> GO AHEAD. PLEASE REMEMBER TO
PRESS STAR 6.
>> CAN YOU HEAR ME?
>> YES.
>> HI.
HI, SARA NELSON AND MEMBERS
OF
THE COMMITTEE. MY NAME IS SARA
CLARK, AND
I'M THE DIRECTOR OF POLICY AT
THE SEATTLE METRO CHAMBER.
I'M HERE TODAY TO SPEAK TO
ITEM NUMBER 1, THE RESPONSE TO
THE
UNDERSPEND, FISCAL
MONITORING AND GRANTS SLI.
I WANT TO THANK
COUNCIL PRESIDENT NELSON FOR
YOUR
ENGAGEMENT AND LEADERSHIP
ON THIS ISSUE AS THE CITY'S
BUDGET GROWTH HAS OUTPACED
BOTH
POPULATION AND INFLATION GROWTH
OVER THE LAST DECADE, THIS
REPORT IS CRITICAL TO
ENHANCING TRANSPARENCY FOR THE
PUBLIC AND
COUNCILMEMBERS IN TERMS
OF SHOWING HOW DOLLARS ARE
BEING SPENT AND WHAT KINDS OF
RESULTS
THE CITY'S INVESTMENTS
ARE GETTING.
IN LIGHT OF THE CONCERNING
REPORT THAT CAME OUT LAST
WEEK, REGARDING THE GRANT OF IT
AT KING COUNTY THAT HIGHLIGHTED
A
NUMBER OF ISSUES WITH
COMPLIANCE JUST ACROSS THE
STREET, THIS
REPORT IS A KEY TOOL FOR
THE CITY TO HELP ENSURE THAT
PUBLIC DOLLARS ARE SPENT WELL
AND
GET THE OUTCOMES OUR CITY'S
RESIDENTS EXPECT AND DESERVE.
WE'RE LOOKING FAR TO
THE BRIEFING AND
TODAY'S DISCUSSION, AND THANK
YOU FOR YOUR TIME.
>> THANK YOU.
OUR NEXT COMMENTER IS ALLISON.
ALLISON, GO AHEAD.
>> GOOD AFTERNOON,
COUNCILMEMBERS.
THANK YOU VERY MUCH FOR
THE OPPORTUNITY TO COMMENT.
MY NAME IS ALLISON AND I'M THE
DIRECTOR OF THE SEATTLE
KING COUNTY COALITION ON
HOMELESSNESS.
WE DO NOT PROVIDE HOUSING
OR DIRECT SERVICES BUT
OUR 60 MEMBER ORGANIZATIONS
INCLUDE
NONPROFIT HOUSING DEVELOPERS,
AND I THINK IT'S FAIR TO
SAY THAT YOU PROBABLY WON'T FIND
ANY GROUP THAT IS MORE IMPATIENT
FOR HOUSING AND FOR HOUSING
DOLLARS
TO BE OUT
APPROPRIATELY IN THE COMMUNITY
THAN
THE COALITION ON HOMELESSNESS
AND OUR MEMBERS.
I AM ALSO HERE TODAY TO ECHO
MY CONCERN ABOUT THE DESCRIPTION
OF
THE FUNDS THAT
ARE IN THE OFFICE OF HOUSING AS
UNDERSPEND, WHEN,
INDEED, THEY ARE, AS YOU HAVE
JUST HEARD FROM PREVIOUS
COMMENTERS, CRUCIAL AND
COMMITTED DOLLARS.
WHEN I CAME TO THE WORK AT THE
COALITION, I HAD AN AWFUL LOT
TO LEARN, AND ONE OF THE THINGS
THAT I LEARNED IS THAT
SEATTLE HOUSING LEVY MAKES US
THE
ENVY OF MANY OTHER
JURISDICTIONS THAT ARE GRAPPLING
WITH THE
NATIONAL CRISES OF THE LACK OF
AFFORDABLE
HOMES. NOW, WE HAVE NOT ONLY
OUR HOUSING LEVY, BUT THE
PAYROLL
EXPENSE TAX AND SOCIAL HOUSING,
AND
INDEED, THE VOLUME OF DOLLARS
THAT OUR OFFICE
OF HOUSING IS CHARGED
WITH APPROPRIATELY MANAGING
AND DISTRIBUTING
RAPIDLY FOR THE PUBLIC INTEREST
HAS INCREASED.
I WANT TO DRAW YOUR ATTENTION
TO SOMETHING ELSE THAT I
LEARNED, WHICH IS THAT
ESSENTIALLY WHAT
THE OFFICE OF HOUSING MANAGES
ARE
CAPITAL DOLLARS. AS YOU KNOW AND
WE
KNOW, WHAT ARE ALSO NEEDED ARE
SERVICES AND
OPERATING DOLLARS.
AND UNDER OUR CURRENT FEDERAL
REGIME, THOSE SERVICES
AND
OPERATING DOLLARS ARE AT GRAVE
RISK.
I
WANT TO BE SURE THAT YOU ARE
AWARE THAT THIS MORNING,
THE NATIONAL ALLIANCE TO END
HOMELESSNESS ANNOUNCED A
LAWSUIT AGAINST H.U.D. BECAUSE
OF
THE IMMINENT THREAT TO, AMONG
OTHER
THINGS, $67 MILLION OF SERVICES.
>> THANK YOU, ALLISON.
OUR LAST VIRTUAL SPEAKER IS
DAVID HAYNES.
GO AHEAD, DAVID.
>> THANK YOU.
DAVID HAYNES.
I COMMEND THE COUNCIL
PRESIDENT FOR THE CITY AUDITORS
IMPROVING THEMSELVES AND I WANT
TO
HIGHLIGHT THAT WE STILL NEED
AN INVESTIGATION OF THE OFFICE
OF HOUSING AND THE HUMAN
SERVICES DEPARTMENT AND ALL OF
THE
RACIST, DEFUND POLICE AND SHIFT
THE PARADIGM AWAY FROM IMPROVING
THE WAR ON DRUGS, AND
PRIORITIZE REPEAT OFFENDING
CRIMINALS WHO ARE TREADING ON
INNOCENT
HOUSELESS PEOPLE THAT
THEY'VE STOLEN FROM THAT ARE
BEING
RACISTLY DISCRIMINATED AGAINST.
AND I WANT TO ASK, LIKE, WHY IS
IT THAT THE CLAIMS FOR NEW
APARTMENTS VERSUS
PRESERVED
APARTMENTS? THERE'S A DISTINCT
DIFFERENCE
IN BUILDING NEW APARTMENTS AND
JUST GOING BACK AND COSMETICALLY
PRETTIFYING SOME
DILAPIDATED, INFLATED PIECE OF
REAL ESTATE
AND CLAIMING THAT
YOU'RE PRESERVING MORE HOMES
FOR
PEOPLE THAT SOMEBODY'S
PARASITICALLY SKIMMING OFF OF.
YOU NEED TO STOP WASTING
MONEY ON SHARON LEE'S
RUNDOWN REAL ESTATE EMPIRE AND
ALL OF HER
OVERPRICED SERVICES THAT ARE
UNQUALIFIED AND FAILING
MISERABLY, BECAUSE WE DON'T
HAVE HONESTY WITHIN THE KING
COUNTY REGIONAL HOMELESS
AUTHORITY AND
ALL THESE EXPERTS WHO HAVE
BEEN AROUND FOR SO LONG THAT ALL
THEY'VE LEARNED IS
MORE ADVOCATING FOR
MORE FUNDS. MORE MONEY, POWER
TRIPPING, NEVER KEEPING IT
HONEST
ABOUT THE EFFORTS TO, LIKE, YOU
KNOW, MENTAL HEALTH
AND BEHAVIORAL CRISIS AND DRUG
ADDICTION.
WE SEE THE CONCERNS ABOUT
THE DRUG CLINIC THAT MIGHT OPEN
UP FOR $41 MILLION OVER IN
CHAPEL
HILL.
WHEN MOST PEOPLE GO THROUGH
THAT, AS SOON AS THEY LEAVE
OUT OF THERE, THEY'RE NOT
SUPPOSED TO ROAM AROUND FREELY.
THEY'RE SUPPOSED TO BE IN
A LOW- SECURITY, LOW-
BARRIER AUTHORIZED ENCAMPMENT
THAT
COULD BE STOOD UP WITHIN 72
HOURS WITH
THE SERVICE PROVIDERS
COMING THROUGH TO BREAK THEIR
ADDICTION AND THEN HAVE THE
COMMUNITY SUPERVISED TO GO DO
THEIR,
LIKE, TRASH PICKUP TO GET A
JOB INSTEAD
OF GOUGING MEDICAID, MAKING
THINGS WORSE.
>> THANK YOU, DAVID.
THAT IS
OUR LAST IN-PERSON OR REMOTE
COMMENTER.
>> THANK YOU VERY MUCH.
BEFORE WE GET INTO ITEM
NUMBER 1, I DO WANT TO EXERCISE
CHAIR'S
PRIVILEGE HERE AND RESPOND
TO SOME OF THE COMMENTS AND SAY,
EMPHATICALLY, THAT ALTHOUGH
THERE MIGHT BE CONCERN OUT
THERE, I DID TALK TO PATIENCE
OF HGC LAST WEEK, AND
INDIVIDUAL HOUSING PROVIDERS AND
PERSONALLY, FOR MY
PART, THERE IS NO INTENTION OF
SPENDING
HOUSING MONEY ON ANYTHING
BUT HOUSING.
I JUST
WANT TO SAY THAT, FULL STOP.
AND WE HAVE GOT A HOUSING
AFFORDABILITY CRISIS ON OUR
HANDS, AND THIS IS CRUCIAL THAT
WE LOOK AT TODAY AND ALL
THE
TIME. AND SO, WHAT MY CONCERN
IS,
NOT NECESSARILY CONCERN, IT IS
OUR
DUTY TO MAKE SURE THAT
OUR DOLLARS÷÷DOLLARS GETTING OUT
THE DOOR
IN THE -- AS QUICKLY AS POSSIBLE
TO HELP THE PEOPLE THAT THEY'RE
INTENDED TO HELP.
AND SO, WE CAN PERHAPS,
AS COUNCIL, DO SIMPLY THROUGH
OUR
OVERSIGHT OR MAYBE TAKING
ACTIONS LATER, WHICH I DON'T
HAVE ANY IN MY MIND RIGHT
NOW, BUT IF THERE'S ANYTHING
THAT WE CAN DO TO SUPPORT THE
OFFICE
OF HOUSING IN GETTING
THOSE DOLLARS OUT FASTER,
COMPLETELY
WILLING TO DO SO.
AND YOU KNOW, THIS HAS BEEN
A CONVERSATION
BETWEEN ME AND THE OFFICE OF
HOUSING FOR A YEAR
OR TWO NOW, AND IT'S STILL ON
THE TABLE BECAUSE I THINK WE'RE
ALL ON THE SAME PAGE WITH WHAT
HAS TO HAPPEN TO THAT MONEY.
GET IT WORKING FOR PEOPLE
AND FAMILIES IN OUR CITY RIGHT
NOW.
SO, PLEASE READ ITEM 1 INTO THE
AGENDA. I MEAN, INTO THE
RECORD.
>> AGENDA ITEM 1, RESPONSE
TO
STATEMENT TO HAVE LEGISLATIVE
INTENT SLI, CBO-003S-A-2.
>> THANK YOU VERY MUCH.
I'LL JUST SAY
THAT THIS IS ACCOUNTABILITY,
FULL STOP.
THIS IS ALL ABOUT OUR ROLE IN
MAKING SURE THAT THE THINGS
THAT WE ALLOCATE MONEY TO
ARE ACTUALLY BENEFITTING FROM
THOSE DECISIONS AND HOW WE CAN
PERHAPS WORK BETTER WITH THE
EXECUTIVE TO MAKE SURE THAT
THERE IS
A SMOOTH TRANSITION BETWEEN
OUR DECISIONS TO ALLOCATE
RESOURCES
AND THE EXECUTIVES GETTING THEM
OUT THE DOOR.
SO W SO, WITH THAT, WE DO HAVE
TWO DEPARTMENTS HERE TO PRESENT
THE INFORMATION.
YOU ALL RECEIVED, I
BELIEVE, AROUND JULY 21st, IF
YOU WANT
TO SEARCH IN YOUR RECORDS --
JULY 21 st?
ANYWAY, FROM ALL THESE
FILES THAT WILL BE REFERRING TO
HERE.
BUT THIS IS A REQUEST THAT
WAS MADE DURING LAST YEAR'S
BUDGET
DELIBERATIONS, AND THE
RESPONSE WAS DUE ON JULY 31st,
AND WE
GOT IT EARLY, AND SO NOW WE WILL
BE ABLE TO ASK MORE DETAILED
QUESTIONS AND HEAR FROM THE
HORSE'S MOUTH, SO TO SPEAK, OF
WHAT ALL THOSE REALLY INFO- RICH
SO, PLEASE GO AHEAD AND
INTRODUCE YOURSELVES, AND THEN
YOU CAN BEGIN WITH YOUR
PRESENTATION.
>> DAN EDER, CBO DIRECTOR.
>> GOOD AFTERNOON, COMMITTEE,
I'M ZACHARY KUENTZ.
>> HI, EVERYONE, MAIKO
WINKLER-CHIN.
>> GOOD AFTERNOON.
KELLY
LARSON, DIRECTOR OF POLICY,
SEATTLE OFFICE OF
HOUSING.
>> GOOD AFTERNOON, TOM
MIKESELL,
CENTRAL STAFF.
>> JENNIFER LE BRECHT, CENTRAL
STAFF.
>> HELLO AND WELCOME.
GO AHEAD,
PLEASE.
>> THANK YOU, COUNCIL PRESIDENT.
APPRECIATE YOU AND
THE CITY COUNCIL RAISING
IMPORTANT
QUESTIONS ABOUT UNDERSPEND,
CARRY FORWARD, AND OTHER
TOPICS IN THE STATEMENT OF
LEGISLATIVE
INTENT. WE APPRECIATED THE
OPPORTUNITY TO ADDRESS THOSE
QUESTIONS IN
WRITING, AND ARE
HAPPY TO BE HERE TO DISCUSS THEM
WITH YOU
TODAY. ZACK KUENZ IS GOING
TO PRESENT TODAY ON BEHALF OF
THE
CITY BUDGET OFFICE.
HIS PRESENTATION WILL FOCUS ON
A CITYWIDE PERSPECTIVE,
AND I'LL BE HERE TO PROVIDE AN
ASSIST
AS WE TALK THROUGH ISSUES AND
QUESTIONS.
THEN, THE OFFICE
OF HOUSING DIRECTOR WINKLER-
CHIN WILL PROVIDE ADDITIONAL
ANALYSIS
AND DETAIL ABOUT HOW THE
PARTICULARS
OF THESE ISSUES, UNDERSPEND AND
CARRY-FORWARD, IN
PARTICULAR, PRESENT IN THE
OFFICE OF
HOUSING. SO, THAT'S JUST AN
OVERVIEW
OF WHERE WE'RE GOING TO GO IN
OUR
TWO DECKS TODAY.
>> THANK YOU.
>> KICK IT OVER TO ZACK.
>> ALL RIGHT. GOOD AFTERNOON,
COMMITTEE.
AS DIRECTOR EDER INTRODUCED,
I'M ZACK KUENTZ OF THE CBO'S
FISCAL
MANAGEMENT TEAM.
SO, ON OUR AGENDA
TODAY, I FIRST WANTED TO PROVIDE
A
REFRESHER ON THE SCOPE OF THE
STATEMENT
OF LEGISLATIVE INTENT AND ITS
THREE PARTS, AND THEN WE'LL
SUMMARIZE
SOME OF THE KEY FINDINGS OF THE
ANALYSIS, AND THEN BEFORE WE GET
Q&A, I WILL THENTHEN TO
HAND IT OVER TO MY COLLEAGUES
FROM THE OFFICE OF HOUSING TO
COVER SOME ADDITIONAL
INFORMATION
THAT'S PERTINENT TO THE SLI
RESPONSE.
SO, I WOULD LIKE TO
BEGIN WITH A LITTLE BACKGROUND
ON THE
STATEMENT OF LEGISLATIVE
INTENT ITSELF.
PART ONE DEALT WITH A REPORT
ON HISTORICAL UNDERSPEND,
COVERING THE PERIODS OF 2018
THROUGH 2023, ORGANIZED BY FUND
AND
DEPARTMENT.
PART TWO REQUESTED A REPORT ON
YEAR-TO- DATE BUDGET VERSUS
ACTUAL PERFORMANCE THROUGH THE
SECOND QUARTER OR Q2 AS
MEMORIALIZED IN RESOLUTION
32116 AND THE FINAL PART,
PART 3, REQUESTED A SEARCHABLE
AND SORTABLE DATABASE OF
OUTSTANDING CITY CONTRACTS AND
GRANT
AWARDS, EXCLUSIVE OF THE EDI
PROGRAM, THAT WERE OUTSTANDING
AS OF
DECEMBER 31st, 2024.
ENCOMPASSING THE THREE
DEPARTMENTS WITH THE LARGEST
PORTFOLIOS OF GRANTS
TO NONPROFIT PROVIDERS, WHICH,
IN
WORKING WITH COUNCIL CENTRAL
STAFF AND THE DEPARTMENTS, WE
DETERMINED THOSE TO
BE THE OFFICE OF HOUSING, THE
HUMAN SERVICES DEPARTMENT, AND
THE DEPARTMENT OF EDUCATION
AND EARLY LEARNING OR DEEL.
SO, I'M SOMEWHAT
GOING TO TAKE OUR WALKTHROUGH A
LITTLE OUT
OF ORDER.
PART ONE IS WHERE WE WILL BE
SPENDING THE BULK OF OUR TIME
TODAY, BUT I DID WANT TO MAKE
SURE THAT I COVERED ALL
THREE PARTS OF THE SLI RESPONSE.
SO, I'M BEGINNING HERE ON
THE SCREEN WITH PART TWO OF THE
STATEMENT OF LEGISLATIVE INTENT
RESPONSE, WHICH MEMORIALIZED
RESOLUTION 32116, WHICH
WAS APPROVED AS PART OF THE 2024
BUDGET, AND AMONG ITS
PROVISIONS, IT REQUIRES THAT
REPORTING ON THE BUDGET VERSUS
ACTUAL PERFORMANCE, BOTH AT
MID-YEAR AND AS WELL AS AT
YEAR-END.
THE CITY FORMALIZED ITS FISCAL
MONITORING PROGRAM
BACK IN 2023, AND IT UTILIZES
QUARTERLY MEETINGS BETWEEN THE
DEPARTMENTS, CBO, AND THE
OFFICE OF CITY FINANCE TO
REVIEW FINANCIAL RESULTS IN FOUR
KEY
AREAS OF FINANCIAL PERFORMANCE.
NUMBER ONE IS
TRANSACTIONS, NAMELY THE ACTUAL
POSTINGS TO
OUR FINANCIAL SYSTEM.
CASH BALANCES TO ENSURE THAT WE
ARE CONSISTENT AND MEETING
OUR FINANCIAL POLICIES AROUND
CASH
BALANCES. GRANTS MANAGEMENT, TO
ENSURE
THAT WE ARE STAYING ON TOP
OF OUR GRANTS DURING THEIR
PERIODS OF PERFORMANCE AND
PROVIDING TIMELY BILLINGS TO OUR
GRANTORS
TO ENSURE THAT WE ARE RECEIVING
FUNDS IN A TIMELY MANNER
AND BOOKING THOSE ACCORDINGLY
TO THE RESPECTIVE GRANT FUNDING
SOURCE.
AND THEN, PART FOUR IS THE
BUDGET VERSUS ACTUAL ANALYSIS
THAT
WE DO ON A QUARTERLY BASIS. THIS
PROGRAM REALLY BEGAN AS A
VERY PRIMITIVE VERSION, USING
OUR EXISTING EXCEL- BASED
FINANCIAL PIVOT REPORT.
WITH EACH OF THE FOUR
AREAS HAVING ITS OWN TAB IN
THE
WORKBOOK. LAST YEAR, WE MIGRATED
THOSE REPORTS OVER TO A POWER BI
APPLICATION, WHICH IT'S
WEB-BASED AND PROVIDES A
MUCH MORE DYNAMIC VIEW.
IT'S MUCH MORE USER-
FRIENDLY WITH TOGGLES THAT
ENABLE
THE USERS TO SLICE THE DATA
BETWEEN DIFFERENT FUNDS,
ACCOUNT GROUPINGS AND THEN AS
WELL AS
TO TAKE A CITYWIDE LOOK AT
DEPARTMENT-SPECIFIC
VIEWS. IT WAS THE CITYWIDE
VIEW THAT WAS PROVIDED AS PART
OFOF
B IN OUR
SLI
RESPONSE. THE OVERARCHING GOAL
OF THE
PROGRAM IS REALLY TO IDENTIFY
THOSE FISCAL
CHALLENGES DURING THE COURSE OF
OUR YEAR WITH
THE GOAL OF AVOIDING
BUDGET EXCEPTIONS THAT WOULD
BE CONSIDERED BY THE COUNCIL
AS PART OF YEAR- END
LEGISLATION.
AS WELL AS ANY YEAR-END
ISSUES FOR OUR COLLEAGUES IN
FINANCE
AS THEY PREPARE THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT.
THUS FAR, THE PROGRAM HAS USED
A STRAIGHT LINE APPROACH,
WHICH ASSUMES A UNIFORM 1/12
APPROACH
WHERE THE BUDGET IS EVENLY
SPLIT INTO 12 PERIODS.
THE CHALLENGE WITH THAT IS
OBVIOUSLY WE HAVE A VERY BIG
OPERATION IN THE CITY OF SEATTLE
AND THE BUDGET
DOESN'T NECESSARILY FIT
INTO 12 EQUAL
PORTIONS. AND WE'RE VARIED
ENOUGH THAT
THIS IS GOING TO CREATE
VARIANCES IN OUR
QUARTERLY REVIEWS BASED ON
SEASONALITY AND
JUST TIMING OF WHEN EXPENSES ARE
INCURRED.
BEGINNING THIS YEAR, WE
DID PILOT A DEPARTMENT-
DRIVEN
EXPENDITURE PLAN TO TRY AND BE
MORE PRECISE AND ADDRESS THE
ISSUES WITH
SEASONALITY AND TIMING THAT COME
UP WITH A
STRAIGHT- LINE APPROACH.
WE USED FOUR
DEPARTMENTS, SEATTLE CENTER, THE
DEPARTMENT OF
NEIGHBORHOODS, SEATTLE MUNICIPAL
COURT, AND
SEATTLE PUBLIC UTILITIES, AND
ASKED
THEM TO REALLY PLAN OUT
THEIR EXPENSES BY QUARTER, AND
THEN
BY SUBCATEGORIES, INCLUDING
THEIR
LABOR BUDGET, THEIR OPERATING
BUDGET, AND NONLABOR
ACCOUNTS, AND THEIR CAPITAL
SPENDING BY
FUND.
WE COMPARED THESE
RESULTS AGAINST OUR REGULAR
STRAIGHT- LINE APPROACH, AND
NOTED THAT THE
EXPENDITURE-DRIVEN PLANS
DO RESULT IN SMALLER VARIANCES
AND BETTER REFLECT THE PACE OF
EXPENDITURES BY THE DEPARTMENTS.
WE ALSO PROVIDED THESE PILOT
REPORTS AS PART OF ATTACHMENT B
TO OUR SLI RESPONSE.
PART THREE OF THE STATEMENT
OF LEGISLATIVE INTENT REGARDED
THE SEARCHABLE CONTRACTS
DATABASE.
THIS INFORMATION REQUESTED
INFORMATION REGARDING OUR
OPEN CONTRACTS AND SUB- GRANT
AWARDS, INCLUDING THE NAME OF
THE AGENCY, THE DATE OF THE
CONTRACT ORIGINATED, THE AMOUNT
OF
THE CONTRACT ANY RELATED
CONTRACTED GRANT DELIVERABLES
AND ANY
PERFORMANCE MEASURES THAT WERE
LISTED IN THE CONTRACT. THE
CHALLENGE IN PROVIDING THE
INFORMATION FOR THIS PART OF THE
SLI RESPONSE IS THAT THIS
INFORMATION IS NOT
CENTRALLY LOCATED.
WE BEGAN OUR ANALYSIS AS PART
OF OUR 2024 YEAR- END BY
EXAMINING THE OPEN
ENCUMBRANCES AS REPORTED OUT OF
OUR
FINANCIAL SYSTEM BY THE OFFICE
OF
CITY FINANCE.
AND FROM THIS LIST, WE WERE
ABLE TO DERIVE A
LOT OF BASIC INFORMATION FROM
THIS LIST,
BUT IN ORDER TO PROVIDE THE
FULL ACCOUNTING AND FILL IN THE
GAPS
REQUIRED BY THE SLI, WE
WORKED WITH THE DEPARTMENTS AND
THEIR
DEPARTMENT- BASED SYSTEMS TO
MAKE SURE THAT
WE HAD A FULL ACCOUNTING OF THIS
INFORMATION.
AS I NOTED IN MY INTRO, THE
THREE DEPARTMENTS THAT
WE REVIEWED WERE DEEL, O. H. AND
HSD, AND THEY ALL
HAVE NUANCES TO THEIR OPERATIONS
AND THIS
PROVIDES IMPORTANT CONTEXT WHEN
LOOKING AT THE INFORMATION
THAT WE PROVIDED REGARDING THE
OPEN CONTRACTS AND GRANTS,
INCLUDING HERE THE VARIATIONS IN
THE PERIODS OF
PERFORMANCE, DEPENDING UPON THE
FUNDING SOURCE THAT WAS BACKING
THE
GRANT OR AWARD, THE CONTRACT
COULD BE LONGER THAN 12 MONTHS.
DEEL, IN PARTICULAR, HAS
SOME NUANCES TO THEIR OPERATIONS
IN THAT THEY FOLLOW A SCHOOL
YEAR,
RATHER THAN OUR FISCAL YEAR AT
THE CITY.
IT ALSO DEPENDS ON THE COLOR
OF MONEY THAT WAS FUNDING THE
AWARDS, WHETHER IT WAS
CITY FUNDS OR FUNDS FROM THE
FEDERAL
GOVERNMENT, WHICH TEND TO
CARRY MORE REPORTING
REQUIREMENTS
AND THUS CAN AFFECT THE PACE
AT WHICH THE OUTSIDE AGENCY
BILLS THE CITY AND THAT WE
CAN TURN AROUND AND FURNISH
PAYMENT
WHILE MEETING OUR GRANTOR
REQUIREMENTS
AS WELL.
SO, WITH THAT, I WILL CIRCLE
BACK TO THE PRIMARY FOCUS OF
THE STATEMENT OF LEGISLATIVE
INTENT
AND THAT BEING THE
UNDERSPEND REVIEW FOR PERIODS OF
2018
THROUGH 2023.
DURING THOSE SIX YEARS,
OBVIOUSLY, THE CITY ORGANIZATION
UNDERWENT CONSIDERABLE CHANGE.
WE EXPERIENCED
SIGNIFICANT POPULATION GROWTH IN
THE RUN UP
TO 2020.
BUT WE ALSO SAW
SIGNIFICANT IMPACTS IN 2020
WITH THE COVID- 19 PUBLIC HEALTH
EMERGENCY AND THE EFFECTS THAT
IT
HAD IN THE SUBSEQUENT YEARS.
SO, THROUGH 2023, WE SAW A
NUMBER OF CONTRIBUTORS THAT
AFFECTED UNDERSPEND IN SOME
OF OUR LARGER AREAS OF THE
BUDGET, AND I HAVE LISTED FOUR
OF
THEM HERE ON THE SLIDE.
LOOKING AT THE GENERAL
FUND, WE HAD FACTORS THAT
AFFECTED THE
UNDERSPEND OVER THIS TIME
HORIZON, INCLUDING
THE CORONAVIRUS LOCAL
RELIEF FUNDS OR CLFR THAT WERE
RECEIVED ON A NEW TRANCHES AND
THOSE MATRICULATED
THEMSELVES THROUGH THE BUDGET
OVER A PERIOD
OF SEVERAL YEARS.
THE EQUITABLE DEVELOPMENT
INITIATIVE, WHICH PRIOR TO
THE CREATION OF THE JUMP
START PAYROLL EXPENSE TAX, WAS
FUNDED
THROUGH THE GENERAL FUND,
AND THEN THE PARTICIPATORY
BUDGETING
PROGRAMS, WHICH WERE FUNDED AND
THEN CARRIED FORWARD OVER
MULTIPLE YEARS AS THE PROGRAM
WAS PUT IN PLACE IN TERMS OF
HOW THOSE FUNDS WOULD BE
ALLOCATED.
WITHIN THE PAYROLL EXPENSE TAX
FUND, WHICH WAS ENACTED BY
THE CITY COUNCIL BACK IN 2020,
AND
FIRST COLLECTED IN 2021, IN THAT
YEAR, 100% OF
THE PAYROLL EXPENSE TAX REVENUE
WAS
ALLOCATED TO THE GENERAL
FUND, SO MUCH OF OUR ANALYSIS ON
THE PAYROLL EXPENSE TAX FUND
WAS REGARDING YEARS 2022 AND
20232023 IT WAS A STAND-
ALONE
SPECIAL REVENUE FUND, AND THE
REVENUES WERE ALLOCATED
ACCORDING TO THE SPENDING
PLAN AND THE LEGISLATION
WITH APPROXIMATELY 71% GOING
TO PROGRAMS÷÷PROGRAMS O.H. AND
THE
EDI
PROGRAM ADMINISTERED BY THE
OFFICE OF PLANNING AND COMMUNITY
DEVELOPMENT.
AS OF THE END OF 2023, THE
CITY HAD APPROXIMATELY $1.8
BILLION IN CARRY- FORWARD FUNDS
IN
OUR FINANCIAL SYSTEM.
AND JUST OVER $1 BILLION
OF THAT AMOUNT WAS IN CAPITAL
FUNDS.
SO, OVER THIS TIME
HORIZON, WE WERE NOT IMMUNE TO
THE
RECORD-HIGH INFLATION LEVELS
THAT WE EXPERIENCED COMING
OUT OF COVID-19, AND
LOCALLY, WE ALSO HAD A CONCRETE
WORKERS
STRIKE, BOTH OF WHICH
SIGNIFICANTLY
AFFECTED CONSTRUCTION PRICES AS
WELL AS
THE PROJECT DELIVERY
TIMELINES IN OUR PROJECTS
INCLUDED IN OUR
CAPITAL BUDGET.
AND THEN, THE LAST AREA, I
JUST WANT TO NOTE THAT WE'VE
SEEN
SOME SIGNIFICANT EFFECTS IN
OUR
BUDGETING AND UNDERSPEND OVER
THE YEARS, IS IN THE GRANTS
AREA.
THIS PRIMARILY WAS AS A RESULT
OF WHEN WE INCLUDED
GRANTS IN
THE BUDGET, WHICH WE ULTIMATELY
DID NOT RECEIVE.
CBO HAS WORKED WITH
COUNCIL CENTRAL STAFF TO ENABLE
GRANTS TO BE ACCEPTED AND
APPROPRIATED OUTSIDE OF THE
BUDGET
PROCESS, INCLUDING A FIRST
QUARTER
ACCEPTANCE AND APPROPRIATIONS
ORDINANCE, WHICH HAS
ENABLED US TO HAVE BETTER TIMING
WITH
WHEN A GRANT
IS ACTUALLY RECEIVED INSTEAD OF
SOME
GUESSWORK, INCLUDING THE GRANT
IN THE
BUDGET, ULTIMATELY NOT
RECEIVING IT AND THEN HAVING TO
ABANDON IT
LATER WITH A PIECE OF
SUPPLEMENTAL LEGISLATION.
CBO HAS ALSO INSTITUTED REVISED
POLICIES FOR WHICH GRANTS WE
DO INCLUDE IN THE ANNUAL BUDGET.
REQUIRING THEM TO BE EITHER
FORMULAIC OR ENTITLEMENT-
TYPE GRANTS THAT HAVE A PROVEN
TRACK
RECORD, AND SUPPORT EXISTING
PROGRAMS.
THESE RULES ARE DESIGNED
TO ELIMINATE THE
VARIABILITY ASSOCIATED WITH
INCLUDING ANY
ONE- OFF OR COMPETITIVE
GRANTS,
WHICH MAY VARY YEAR TO YEAR IN
THE BUDGET.
SO, IN THE CONTEXT OF DISCUSSING
OUR BUDGETARY UNDERSPEND, WE
DID WANT TO DISCUSS HOW
UNDERSPEND CAN TAKE A COUPLE OF
DIFFERENT FORMS.
THE FIRST AND MOST BASIC IS WHAT
WE WOULD CALL INITIAL
UNDERSPEND, AND THIS IS
SIMPLY OUR REVISED BUDGET MINUS
THE
ACTUALS.
SO, THIS SIMPLY REFLECTS,
IN TERMS OF
WHAT WAS NOT EXPENDED WITHIN THE
FISCAL YEAR.
HOWEVER, WITHIN OUR INITIAL
UNDERSPEND ARE COMMITMENTS THAT
WE NEED TO HONOR MOVING
FORWARD, OR THEY MAY BE OTHER
INITIATIVES WHICH THE EXECUTIVE
OR
THE COUNCIL WOULD LIKE TO
CONTINUE TO SEE DEPLOYED INTO
THE
COMMUNITY, AND SO THAT'S
WHY WE HAVE OUR CARRY- FORWARD
PROCESS
TO SOLIDIFY THOSE
COMMITMENTS AND ENABLE THEM TO
ROLL
FORWARD INTO THE SUBSEQUENT
FISCAL
YEAR AND DEPLOY THOSE FUNDS INTO
THE COMMUNITY.
TAKING OUR INITIAL
UNDERSPEND, MINUS OUR
CARRY-FORWARDS, WE ARRIVE AT OUR
NET OR OUR TRUE
UNDERSPEND, WHICH IS THE BOTTOM
LINE, UNRESERVED FUND
BALANCE, IN A PARTICULAR FUND,
WHICH IS
THEN AVAILABLE TO BE USED FOR
FUTURE BUDGETS.
>> IF YOU DON'T MIND ME
JUST JUMPING IN BEFORE YOU GO TO
THE
NEXT SLIDE, I WANT TO -- THIS
MAY NOT BE INTUITIVE, WHAT A
REVISED BUDGET IS.
YOU ALL ADOPT A BUDGET
ANNUALLY, BUT THEN YOU ALSO PASS
APPROPRIATIONS BILLS DURING THE
YEAR, TYPICALLY AT LEAST A
MID- YEAR SUPPLEMENTAL BILL AND
A YEAR- END SUPPLEMENTAL BILL.
YOU MAY ALSO PASS
ONE-OFF BILLS THAT CHANGE
APPROPRIATIONS.
THE CUMULATIVE CHANGES THAT YOU
HAVE MADE ARE REFLECTED IN
THE REVISED BUDGET, BUT THEY
HAVEN'T
YET BEEN MADE IN THE ADOPTED
BUDGET, WHICH IS MADE AT THE
FRONT END OF THE YEAR.
SO, THAT'S THE INITIAL
UNDERSPEND IS THE REVISED BUDGET
LESS WHAT ACTUALLY GOT
SPENT, ACTUAL SPENDING AGAINST
THAT
BENCHMARK.
>> THE NEXT SLIDE I
WANTED TO DISCUSS JUST BRIEFLY,
THE
DIFFERENT TYPES OF CARRY-
FORWARD THAT AFFECT THE BUDGET.
THE BLUE BOXES ON THE LEFT- HAND
SIDE OF THE SLIDE ARE
THOSE ITEMS WHICH CARRY WHAT'S
CALLED AUTO CARRY FORWARD
AUTHORITY.
THAT MEANS THESE FUNDS ROLL OVER
WITHOUT FURTHER ACTION BY THE
CITY COUNCIL AT
YEAR-END, UNLESS THEY'RE
ABANDONED.
THE LARGEST PART OF THAT AUTO
CARRY- FORWARD, TYPES OF
CARRY-FORWARDS,
ARE ENCUMBRANCES.
THOSE ARE EXECUTED CONTRACTS AND
PURCHASE ORDERS WITH BALANCES
GREATER
THAN $5,000. AND SO, AS OF THE
CLOSE
OF FISCAL YEAR 2023, THAT
TOTALED
ABOUT $63 MILLION OF OPEN
ENCUMBRANCES, WHICH
CARRIED FORWARD TO THE NEXT
YEAR.
THE NEXT TYPE OF AUTO
CARRYFORWARDS ARE GRANTS.
SO, IF WE HAVE A GRANT THAT
HAS AN INAPPROPRIATED,
UNSPENT BALANCE AND WE ARE STILL
WITHIN THAT GRANT'S PERIOD OF
PERFORMANCE, THOSE OPEN
BALANCES
ROLL FORWARD INTO THE NEXT
FISCAL YEAR AS WELL.
ANY FUNDS WHICH ARE
APPROPRIATED TO A CAPITAL
PROJECT IN OUR
SIX-YEAR CAPITAL PLAN,
THOSE FUNDS ALSO AUTO
CARRYFORWARD
UNTIL THE PROJECT IS
COMPLETED AND CLOSED OUT.
AND THEN THE LAST PART OF AUTO
CARRYFORWARDS ARE WHAT'S KNOWN
AS THE OTHER ADMINISTRATIVE
CARRYFORWARDS. THIS IS GENERALLY
A VERY
SMALL LIST, THOSE PIECES OF
STAND-ALONE LEGISLATION
WHICH CARRIED A PROVISION
ENABLING AUTO CARRY- FORWARD FOR
THOSE
PARTICULAR PROGRAMS.
IN THE PAST, JUST TO GIVE
YOU SOME EXAMPLES, THIS
INCLUDED, AT ONE TIME, THE
PARTICIPATORY BUDGETING
PROGRAMS AND THE NEIGHBORHOOD
MATCHING
FUNDS, EQUITABLE COMMUNITIES
INITIATIVE AND CERTAIN FUNDS IN
OUR JUDGMENT AND CLAIMS FUND.
THESE ARE THE ITEMS THAT ARE
SCHMIDT -- SUBMITTED TO
THE COUNCIL FOR THEIR
CONSIDERATION
IN THE SPRINGTIME AND THOSE ARE
NONENCUMBERED FUNDS THAT PERTAIN
TO SPECIFIC
INITIATIVES THAT THE COUNCIL
CONSIDER
FOR CARRYFORWARD.
THEY GENERALLY NEED TO BE
FOR THOSE SPECIFIC
INITIATIVES THAT WERE INCLUDED
IN THE BUDGET,
THAT, FOR WHATEVER REASON,
WERE NOT ABLE TO GET DONE.
EITHER IT WAS A BRAND-
NEW PROGRAM THAT NEEDED TO HAVE
THE
PROCESS DETERMINED ABOUT
HOW THAT -- THOSE FUNDS WOULD BE
SPENT, IF AN RFP NEEDED TO BE
CONDUCTED, OR ANY OTHER
PARTS THAT NEEDED TO BE
NEGOTIATED WITH AN OUTSIDE
PROVIDER
AND WHATEVER THE CASE MAY BE, WE
JUST WERE NOT ABLE TO
DEPLOY THOSE FUNDS WITHIN THE
FISCAL YEAR.
THOSE TYPICALLY END UP IN
OUR PROPOSED LEGISLATION FOR
COUNCIL CONSIDERATION AS PART OF
OUR LEGISLATIVE CARRYFORWARDS.
BUT IN GENERAL, WE
DO NOT CARRY FORWARD CUMBERED
SAVINGS.
THIS WAS PART OF THOSE
ITEMS WHERE WE WERE PART OF A
PROGRAM
THAT NEEDS TO BE
CONTINUED INTO
THE COMMUNITY.
>> I'D LIKE TO JUMP IN AND
GIVE AN ILLUSTRATIVE EXAMPLE.
I KNOW A LOT OF THE FOCUS
IS GOING TO
BE ON THE OFFICE OF HOUSING.
PROJECTS THAT HAVE BEEN
AWARDED AND CONTRACTS HAVE BEEN
SIGNED
FOR THOSE PROJECTS WOULD
APPEARAPPEAR IN ENCUMBRANCES
BUCKET.
SO, WE WOULD HAVE
LEGALLY COMMITTED MONEY TO MOVE
FORWARD A PROJECT.
THAT WOULD BE IN THE EXECUTED
CONTRACTS WITH
BALANCES, ENCUMBRANCES÷÷ BUCKET.
PROJECTS THAT HAVE BEEN
ANNOUNCED AS AWARDEES
BUT HAVEN'T YET GOTTEN TO THE
STAGE
WHERE WE HAVE LOCKED IN A
LEGALLY BINDING CONTRACT,
ARE IN THE LEGISLATIVE BUCKET.
THEY ARE NOT
ENCUMBERED, FORMALLY AND
LEGALLY, SO THEY
ARE SUBJECT TO REAPPROPRIATION,
EFFECTIVELY, THROUGH
THE CARRYFORWARD ORDINANCE THAT
IS THE
LEGISLATIVE BUCKET.
IF I HAVE THAT WRONG, PLEASE
CORRECT ME.
IF THERE ARE NO
QUESTIONS,
WE'LL --
>> I DO HAVE A QUESTION ON
THIS PAGE IF YOU DON'T MIND.
THE LEGISLATIVE UNDERSPEND IN
THIS -- ON THAT SLIDE
SAYS IT'S -- IT WAS $53 MILLION
IN
2023. WE JUST PASSED A $169.2
MILLION LEGISLATIVE
CARRYFORWARD.
SO, THAT'S A BIG DIFFERENCE.
AND OF
THAT, I BELIEVE $60 MILLION WAS
FOR
HOUSING, $51 MILLION WAS FOR
EVI,
AND THERE WERE
PROJECTS THAT WENT BACK TO 2023.
SO, IS THAT UNUSUAL TO HAVE THAT
BIG OF A LEGISLATIVE
CARRYFORWARD?
>> WELL, WE'RE GOING
TO TALK ABOUT SOME OF
THE HISTORICAL PERSPECTIVE AND
THAT, I
THINK, MAY BE HELPFUL FOR
ANSWERING
YOUR QUESTION.
BUT I WILL SAY THAT THE E.D.I.
PROGRAM HAS INCREASED
SUBSTANCELY SINCE 2023, AS
HAS THE INVESTMENT IN AFFORDABLE
HOUSING, AND
THOSE PROJECTS TAKE MULTIPLE
YEARS, AS YOU'LL HEAR
LATER IN OUR
PRESENTATION, AND I THINK
THAT'S A BIG CONTRIBUTOR
TO WHY THE OVERALL AMOUNT
OF
LEGISLATIVE CARRYFORWARD HAS
INCREASED SINCE 2023.
IN THE 2025
TIME FRAME THAT YOU WERE
LOOKING AT.
>> SO, JUST
REFLECTS INCREASED
APPROPRIATIONS THEN?
OKAY. THANK YOU.
>> ON
OUR NEXT SLIDE --
>> HOLD ON.
I'M SORRY. COUNCILMEMBER
RIVERA?
>> THANK YOU, COUNCIL PRESIDENT.
THANK YOU ALL FOR BEING
HERE, DIRECTOR EDER.
ON
THE GRANT SIDE, $52 MILLION IS A
LOT.
THIS HAS BEEN APPROPRIATED, BUT
UNSPENT GRANT
BALANCES WITHIN THE GRANT'S
PERIOD OF
PERFORMANCE, CAN YOU GIVE
A LITTLE MORE INFORMATION ON
THE
GRANTS AND THE $52 MILLION IN
2023?
LIKE, YOU'RE HOLDING -- IT
LOOKS
LIKE YOU'RE HOLDING A LOT OF
UNSPENT GRANT MONEY.
>> YEAH, ZACK IS LOOKING UP SOME
INFORMATION.
MY UNDERSTANDING IS THAT THIS
WAXES AND WANES WITH THE CAPITAL
PROJECTS.
SOMETIMES, CAPITAL PROJECTS GO
DIRECTLY ON TIME, AND THE NEXT
YEAR, ONE PROJECT CAN
GET DELAYED A YEAR, AND IT JUST,
YOU
KNOW, BECAUSE OF A VARIETY
OF THINGS.
THE CONCRETE STRIKE, AS
ZACK MENTIONED EARLIER, SLOWED
DOWN
A NUMBER OF PROJECTS.
I DON'T KNOW WHAT WAS HAPPENING
IN 2023, EXACTLY, AND I
CAN'T, OFF THE TOP OF MY HEAD,
TELL
YOU HOW THAT'S CHANGED IN THE
2025
CARRYFORWARD ORDINANCE, BUT I
WILL SAY THAT IT VARIES
PRETTY SIGNIFICANTLY YEAR TO
YEAR,
DEPENDING ON HOW PROJECTS
HAVE PROCEEDED AND WHAT SIZE
THE PROJECT WAS IN THE FIRST
PLACE
THAT MAY HAVE GOTTEN A CHANGE IN
SCHEDULE.
>> I APPRECIATE YOUR
RESPONSE, DIRECTOR EDER.
I'D LIKE TO HAVE MORE
DEFINITIVE
INFORMATION ABOUT THIS, AND
ALSO, I'M JUST GOING TO SAY, IN
GENERAL, I FEEL LIKE WE'RE
LACKING IN THE HOW WE MONITOR
THESE FUNDS, AND EVERY
TIME WE ASK A QUESTION, IT'S
REALLY
HARD TO GET A RESPONSE.
AND THAT DOESN'T INSPIRE
CONFIDENCE IN THE, YOU KNOW,
FISCAL RESPONSIBILITY PART OF
THE CITY.
LIKE, OUR FISCAL
RESPONSIBILITY, OUR FIDUCIARY
DUTY,
BASICALLY, TO OUR CONSTITUENTS,
IF YOU WANT
TO CALL IT THAT.
SO, I'D LOVE TO HAVE SOME, YOU
KNOW, FISCAL SYSTEMS PUT
IN PLACE WHERE EVERY TIME WE ASK
A
QUESTION, WE SHOULD BE ABLE
TO READILY GET TO THE ANSWER,
AND IT MAKES FOR A LACK
OF CONFIDENCE WHEN THAT'S NOT
THE CASE.
SO, I'D LOVE TO HEAR --
AND MAYBE THIS IS PART OF
LATER IN THE PRESENTATION, BUT
WHAT
IS GOING TO GET PUT IN PLACE?
BECAUSE I THINK PART OF THE --
I'M GOING TO SAY ANGST, AND
MAYBE I'M THE ONLY ONE FEELING
ANGSTY, BUT IT'S JUST THE FACT
THAT, YOU KNOW, THERE'S --
MISSING INFORMATION, NOBODY
SEEMS TO KNOW.
IT'S ALL PIECEMEAL.
IT'S OUT THERE SOMEWHERE,
AND I THINK IT'S LIKE MAYBE
IT'S
JUST HOW WE'RE KEEPING TRACK OF
IT
IS NOT AT THE READY.
AND I THINK IF IT WAS, IT
WOULD MAKE IT EASIER FOR US TO
BE
ABLEABLE TO FEEL MORE CONFIDENT
ABOUT WHAT IS HAPPENING IN THIS
SPACE, AND I UNDERSTAND IT'S
GROWN EXPONENTIALLY IN A VERY
SHORT PERIOD OF TIME, BUT ALL
THE MORE
REASON WHY WE REALLY NEED
TO HAVE A SYSTEM IN PLACE.
>> COUNCILMEMBER, I JUST WANT
TO ASSURE YOU THAT WE DO HAVE A
SYSTEM IN PLACE, AND WE
CAN REPORT OUT, CHAPTER AND
VERSE, ON EVERY ONE OF THE
GRANTS
FROM 2023 IF THAT'S YOUR
INTEREST,
OR 2025, IF THAT'S YOUR -- MORE
UPDATED, YOU KNOW, FOCUS.
WE CAN TELL YOU HOW MANY
DOLLARS WERE ANTICIPATED TO BE
SPENT IN
2024, HOW MANY DOLLARS WERE
SPENT, AND HOW MANY
DOLLARS WEREN'T SPENT BUT WERE
AUTOMATICALLY CARRIED FORWARD BY
PROJECT AND BY GRANT.
>> I'D LOVE TO GET --
SORRY, COUNCILMEMBER.
I'D LIKE TO GET THAT, BUT I
ALSO
JUST, IN GENERAL, NOT JUST
ABOUT GRANTS, I JUST FEEL LIKE,
IN THIS SPACE, WE ARE
NOT GETTING -- IT IS REALLY HARD
TO GET INFORMATION ABOUT
VACANCIES, ABOUT JUST HOW MUCH
IS, YOU
KNOW, BEING CREATED AND HOW
IT'S BEING, YOU KNOW, HOW
VACANCIES ARE BEING FILLED.
I JUST FEEL LIKE EVERY
TIME WE HAVE THIS
CONVERSATION, THERE ISN'T A ONE-
STOP SHOP TO GET
ALL THIS INFORMATION.
I DON'T KNOW THAT THAT'S
THE BEST WAY TO PUT IT, BUT
IT'S
JUST VERY HARD TO GET
INFORMATION.
AND SO, I APPRECIATE WHAT YOU'RE
SAYING, AND WE CAN
KEEP TALKING ABOUT IT, BUT --
>> THE CONVERSATION IS ONGOING,
AND I KNOW THAT CENTRAL STAFF IS
ENGAGED IN ASKING A BUNCH
OF VERY SMART QUESTIONS, AND
WE'RE DOING OUR BEST TO PROVIDE
YOU
WITH THE INFORMATION NOT JUST
IN A RAW FORM BUT SORT OF
ORGANIZED IN A WAY THAT
IS USEFUL FOR
DECISION MAKERS AND POLICYMAKERS
SUCH AS THE COUNCILMEMBERS.
>> THANK YOU.
THANK YOU, COUNCIL PRESIDENT AND
CHAIR.
>> OKAY, WELL, OUR NEXT
SLIDE IS A SNAPSHOT ON
UNDERSPEND WITHIN
THE GENERAL FUND OVER THE
SIX-YEAR WINDOW BETWEEN 2018
AND 2023.
AND BETWEEN 2018 AND 2023,
THE NET
UNDERSPEND, SO THAT UNDERSPEND
AFTER TAKING INTO OUR
CARRYFORWARDS
FOR THE GENERAL FUND
AVERAGED APPROXIMATELY $36
MILLION, OR
ABOUT 2.1% ANNUALLY AND
THE TABLE ON THE SCREEN
SHOWS IN TERMS OF THE REVISED
BUDGET, OUR ACTUAL EXPENDITURES
AND THEN
ARRIVING AT THAT INITIAL
UNDERSPEND, SO JUST BUDGET
MINUS ACTUAL TO LOOK AT WHAT OUR
INITIAL UNDERSPEND HAS BEEN
OVER THE SIX YEARS, WHICH
AVERAGED AROUND 10%.
WE HAVE PUT IN HERE, JUST AS A
CONTEXT, HOW MUCH
OF THAT INITIAL UNDERSPEND WAS
DUE TO LABOR SINCE WE ARE A
SERVICE DELIVERY ORGANIZATION.
SO, IN GENERAL, THAT
HAS FACTORED AROUND 22% OF OUR
UNDERSPEND WAS DUE TO LABOR
SAVINGS.
SO, STILL AROUND 78% OF OUR
UNDERSPEND
IS DUE TO AREAS OTHER THAN
LABOR.
SO, LOOKING AT OUR
TOTAL CARRYFORWARDS OVER THIS
WINDOW HAS AVERAGED ABOUT $133
MILLION AND AS DIRECTOR EDER
NOTED IN
AN EARLIER COMMENT, THIS IS ALSO
A FUNCTION THAT THE BUDGET
HAS ALSO GROWN OVER THIS WINDOW
AS
WELL, AND JUST IN THE COURSE OF
OUR BUSINESS. CERTAIN ITEMS ARE
GOING TO NEED
TO BE CARRIED FORWARD,
EITHER FOR OPEN ENCUMBRANCES OR
AS
PROGRAMS CONTINUE TO EXPAND
IN OUR CITY INVENTORY.
AND THEN, ON THE RIGHT-
HAND SIDE, IN WHITE, ARE THE
NET UNDERSPEND AND AS A PERCENT
OF
THE REVISED BUDGET, SO
APPROXIMATELY 2.1% AVERAGE
UNDERSPEND OVER THE SIX-
YEAR
TIME HORIZON OF THE SLI
RESPONSE.
JUST SOME KEY SUMMARY
POINTS ON THE NEXT SLIDE, COMING
OUT OUT
OUR
ANALYSIS ON THE GENERAL
FUND. UNDERSPEND AND
CARRYFORWARDS PEAKED IN 2021,
AND THAT WAS
DUE TO A COUPLE DIFFERENT
FACTORS. THE CITY WAS THE
RECIPIENT OF
MULTIPLE TRANCHES OF CORONAVIRUS
LOCAL RECOVERY FUNDS WHICH WERE
DEPOSITED INTO THE GENERAL FUND.
WE ALSO HAD THE
PARTICIPATORY BUDGETING
FUNDING WHICH WAS APPROPRIATED
AND THEN
CARRIED FORWARD WHILE THE
PROGRAM
WAS
DETERMINED HOW IT WAS GOING TO
BE IMPLEMENTED.
AND THEN, AS DIRECTOR EDER
NOTED, THE EQUITABLE
DEVELOPMENT INITIATIVE TYPICALLY
HAS A LONG
LEAD TIME, AND SO AS THOSE
FUNDS WERE BUDGETED
ANNUALLY, THEY WERE CARRIED
FORWARD.
AND I BELIEVE AS OF 2023,
THE BALANCE IN THE
GENERAL FUND WAS APPROXIMATELY
$20 MILLION.
IN CARRYFORWARDS FOR EDI FROM
THE GENERAL FUND.
AND SO, TO THAT END,
SOMETHING THAT HAS BEEN DONE
SINCE
2022 INCLUDES AN
UNDERSPEND ASSUMPTION FOR THE
GENERAL
FUND IN OUR FINANCIAL PLAN
ANNUALLY, BETWEEN $10 MILLION
TO
$20 MILLION. TO CAPTURECAPTURE
PORTION OF THE
UNDERSPEND, WHICH
OCCURS DURING THE COURSE OF
NORMAL
OPERATIONS, AND THIS IS A
PRACTICE THAT WE
CONTINUE TO TODAY IN THE GENERAL
FUND BUDGET.
BRIEFLY, SOME HIGH
POINTS FROM
OUR LOOKING AT THE PAYROLL
EXPENSE TAX UNDERSPEND.
APPROXIMATELY 70% OF THE P.E.T.
FUNDS OVER THIS HORIZON
WERE ALLOCATED TO PROGRAMS WITH
LONG- TERM PROJECT
COMMITMENTS, NAMELY THOSE FOR
O.H. AND EDI.
AS A RESULT OF THIS, THE
INITIAL UNDERSPEND FOR 2022 AND
2023 IN THE PAYROLL TAX FUND WAS
45% AND
57% RESPECTIVELY. BUT ONCE YOU
FACTOR IN
THAT THOSE FUNDS WERE CARRIED
FORWARD TO SUPPORT THOSE
PROJECTS,
THE NET RESULTING UNDERSPEND FOR
THE PAYROLL EXPENSE TAX FUND WAS
0.8% AND 1.7% FOR 2022 AND 2023
RESPECTIVELY.
>> I JUST WANT TO JUMP IN TO SAY
THAT IS NOT SOMETHING THAT WE
NEED TO FEEL LIKE IS
A PROBLEM. IT'S A FEATURE, NOT A
BUG.
THAT'S EXACTLY THE WAY
THE ANTICIPATED FUNDING OF THESE
PROJECTS WAS EXPECTED TO GO.
AS YOU'LL HEAR WHEN THE
OFFICE OF HOUSING PRESENTS ON
THEIR BUDGET, THESE ARE
MULTIYEAR
PROJECTS THAT WE FUND AT THE
FRONT END OF THE PROJECT SO THAT
THE CITY PORTION CAN
ATTRACT OTHER DOLLARS, AND WE
STAY
TRUE TO OUR COMMITMENT SO
THAT WHEN THE MONEY IS ACTUALLY
NEEDED BETWEEN THREE, FOUR, FIVE
YEARS
LATER, THAT MONEY IS AVAILABLE
AND CAN BE LOCKED INTO A
CONTRACT AND SPENT TO
DEVELOP THE HOUSING OR THE EDI
PROJECT
THAT WE'VE COMMITTED TO MULTIPLE
YEARS EARLIER.
SO, I JUST WANTED TO POINT
OUT, IT LOOKS LIKE A BIG
PERCENTAGE FOR THE INITIAL
UNDERSPEND,
BUT THOSE ARE COMMITTED DOLLARS
THAT
WERE
ALWAYS INTENDED TO BE SPENT
SEVERAL YEARS LATER.
>> AND THEN TO FOLLOW UP ON
DIRECTOR EDER'S COMMENTS, WE DO
HERE NOTE ON THE SLIDE,
FACTORS AFFECTING THE P.E.T.
FUND
UNDERSPEND, THAT THE EDI
AND AFFORDABLE HOUSING
PROJECTS, THEY DO CAUSE THE
PAYROLL EXPENSE TAX FUND TO SHOW
A LARGE
UNDERSPEND AND CARRYFORWARD
BALANCES.
I BELIEVE IT WAS NOTED ONE
OF OUR PUBLIC COMMENTERS
EARLIER IN THE MEETING, THESE
REPRESENT
OUR FIRST DOLLAR IN WHERE THE
CITY
BUDGETS ALL THE FUNDING IN
THE YEAR COMMITTED TO SPECIFIC
FUTURE PROJECTS WITH OUR
PARTNER
ORGANIZATIONS. THE CITY DOES NOT
HAVE
DIRECT CONTROL OVER THE PROJECT
TIMELINE FOR THOSE PROJECTS,
AND WE CARRY FORWARD THOSE
FUNDS IN THE BUDGET UNTIL THE
PARTNER ORGANIZATION IS READY TO
PROCEED WITH THE PROJECT.
IN ORDER TO PRESERVE
THOSE RESOURCES FOR THESE
PROJECTS AND
REAFFIRM THE CITY'S
COMMITMENT TO ITS PARTNERS, WE
ROLL
THOSE FUNDS OVER WITHIN THE
BUDGET
EACH YEAR AS PART OF OUR
CARRYFORWARD PROCESS.YEAR
AND SO, I BELIEVE BEFORE WE GET
TO OTHER COUNCIL COMMITTEE
Q&A, I WILL HAND HAND OVER TO MY
COLLEAGUES.
>> IF YOU DON'T MIND, LET'S
JUST STAY ON THIS PRESENTATION
IN CASE PEOPLE HAVE -- FIRST OF
ALL, I DO WANT TO APOLOGIZE
FOR MY GESTURE TO SPEED IT
UP BECAUSE I DO WANT TO
RECOGNIZE THAT YOUR QUESTIONS
WERE EXTREMELY IMPORTANT.
IT'S HARD TO FIND INFORMATION.
AND ALSO, YOU DID RAISE
A QUESTION ABOUT VACANCIES,
WHICH I SHARE FRUSTRATION WITH
WHEN
WE'RE TALKING ABOUT
THE VACANCIES IN AFFORDABLE
HOUSING
FACILITIES. IT SEEMS -- IT'S
ALWAYS SEEMED
TO ME THAT WE SHOULD BE ABLE TO
GET THAT FASTER, AND I
UNDERSTAND THAT THERE HAVE BEEN
ATTEMPTS THERE, BUT I DON'T
THINK THAT THE NUMBERS THAT
WE'RE GETTING REPRESENT
ALL OF THE PROJECTS, AND IT'S
ALWAYS --
I HAVE ALWAYS WONDERED WHY IT'S
NOT EASIER TO GET THAT.
BUT I DO HAVE A
QUESTION ON THE -- COULD YOU
PLEASE GO
BACK TO THE CHART WHERE
YOU TALK ABOUT
THE HISTORICAL UNDERSPENDS?
OKAY, THAT'S PAGE 9.
SO, FOR EXAMPLE, JUST FOR THE
AUDIENCE, FOR -- GOING BACKWARDS
IN TIME, 2023
TO 2018, THE UNDERSPENDS ARE
11.5,
11.4, 13.1, 9.5, 7.8, 5.9 WITH A
SIX-YEAR AVERAGE OF 9.9%.
THAT'S ONE SET OF NUMBERS,
BUT THEN IN ATTACHMENT
A, WHICH I THINK REPRESENTS ALL
OF THE
FUNDS, AND WE KIND OF WENT ABOUT
IT IN A DIFFERENT WAY,
WE ADDED UP ALL THE FUNDS FUNDS
THEN
DID THE WHOLE FRACTION THING TO
FIND OUT WHAT
UNDERSPEND -- TO GET A
SENSE OF UNDERSPENDS AND WE HAD
-- WE CAME UP WITH 15.6,
14.4, 16, 16.5, 13.6, AND 11.
5 IN REVERSE ORDER FROM 2023
TO
2018. SO, OFFLINE, MAYBE I NEED
TO
UNDERSTAND -- I'D LIKE TO
UNDERSTAND THE DISCREPANCY
THERE.
>> HAPPY TO TALK OFFLINE.
I THINK MY INITIAL ANSWER TO
YOU IS, THIS SLIDE NUMBER NINE
IS
LOOKING ONLY AT THE GENERAL
FUND, AND I THINK THAT
WHAT YOU'RE LOOKING AT INCLUDES
THE
PAYROLL EXPENSE TAX FUND, FOR
INSTANCE, WHICH HAS, AS ZACK
MENTIONED, ABOUT 70% OF
ITS INVESTMENTS ARE IN
MULTIYEAR PROJECTS THAT ARE
EXPECTED TO
CARRY FORWARD FROM YEAR
TO YEAR UNTIL CONSTRUCTION
HAPPENS.
SO, I WOULD EXPECT TO SEE,
AS YOU LOOK AT A COMPOSITE OF
A LARGER NUMBER OF FUNDS,
BESIDES
JUST THE GENERAL FUND, YOU
WILL INCLUDE CAN PAYROLL EXPENSE
TAX
FUND, WHICH HAS THIS
NATURAL ELEMENT OF EXPECTED
CARRYFORWARD AND THE PERCENT
WILL BE
DIFFERENT
AND LARGER THAN WHAT YOU'RE
SEEING ON THIS SLIDE.
>> OKAY.
THANK YOU. COULD YOU PLEASE GO
TO SLIDE 4?
AND THAT CONCERNS THETHE
TO ACTUALS REPORT.
THE REPORT PROJECTS A 2025
UNDERSPEND PROJECTION OF $392
MILLION, WHICH IS
HIGHER THAN IN PRIOR YEARS.
AND CAN YOU TALK ABOUT THAT
A LITTLE BIT?
IS THAT BECAUSE OF THE HIRING
FREEZES AND THE --
WELL, THAT WAS 2024, SO THAT
WOULD NOT --
PERHAPS, ANYWAY, IS
THAT BECAUSE OF SOME OF THE
MEASURES THAT WERE TAKEN LOOKING
AT THE
PROJECTED DEFICIT?
CAN YOU EXPLAIN THAT
A LITTLE
BIT MORE?
>> YES.
YES, MA'AM, MADAM
COUNCIL
PRESIDENT. THE REPORT -- THE
COLUMN
THAT YOU'RE REFERENCING IN
ATTACHMENT A IS A STRAIGHT- LINE
PROJECTION.
ESSENTIALLY, IT TAKES A YEAR TO
DATE EXPENSES AND RUNS OUT THAT
TREND THROUGH THE END OF
THE FISCAL YEAR.
IT DOESN'T NECESSARILY
REPRESENT WHERE WE ANTICIPATE
OUR YEAR- END
BALANCE TO BE.
IT'S MORE OF A BAROMETER THAT
WE USE IN OUR QUARTERLY CHECK-
INS WITH THE DEPARTMENTS TO
SAY, IF NOTHING ELSE
CHANGES, HERE'S WHERE WE COULD
POTENTIALLY LAND.
A $392 MILLION UNDERSPEND
WOULD REPRESENT ABOUT A 20%
UNDERSPEND
FOR THE GENERAL FUND.
AND WE DON'T BELIEVE
THAT'S
REALISTIC. IT'S MORE -- WE MORE
USE IT AS A
GAUGE TO SEE WHERE
WE'RE SPENDING IN THE YEAR.
BUT IT'S, AS I NOTED IN MY
REMARKS, THIS IS
A
STRAIGHT-LINE. IT'S NOT
SEASONALLY
ADJUSTED, AND SO FOR DEPARTMENTS
LIKE PARKS AND REC, AS AN
EXAMPLE, IT'S PROJECTED TO HAVE
ABOUT
A $21 MILLION
UNDERSPEND, ACCORDING TO THIS
TABLE, BUT
WE ALSO NOTE THAT PARKS DOES
MOST OF ITS BUSINESS IN THE
SUMMER, AND SO THAT'S NOT A --
THAT
DOES NOT ANTICIPATE WHERE
WE NECESSARILY WILL LAND AT
YEAR-END.
BUT BASED UPON WHERE THEY
WERE AT JUNE 30th, AND
EXTRAPOLATING
OUT TO THE YEAR- END, THAT'S
WHAT
THAT NUMBER WOULD BE.
SO, IT DOES NOT
NECESSARILY REPRESENT A --
CBO'S FORECAST
FOR WHERE WE THINK THE GENERAL
FUND WILL END UP ON DECEMBER
31st.
>> OKAY, I WAS -- THANK YOU
FOR THAT EXPLANATION, BECAUSE I
WAS
THINKING IT MIGHT HAVE
HAD SOMETHING TO DO WITH
HSD, BECAUSE IT'S ONLY SPENT
$40 MILLION OF ITS $277 MILLION
GENERAL FUND APPROPRIATION
FOR THE YEAR.
SO, IN OTHER WORDS, 14% OF
THE TOTAL HAS BEEN SPENT, EVEN
THOUGH, AS YOU SAY IN THE
MEMO, ONE WOULD EXPECT TO SEE
CLOSER
TO 46% OR $127 MILLION
HALFWAY THROUGH THE YEAR.
SO, THAT'S WHAT I THOUGHT
WAS DRIVING IT, BUT I GUESS NOT.
BUT IN GENERAL, I THINK THAT
YOUR MEMO SAYS AT
SOME POINT THAT WE'LL RECEIVE
NARRATIVE EXPLANATIONS FOR SOME
OF
THESE VARIANCES WITH THE FALL
BUDGET
QUESTIONS, AND I WOULD JUST
NOTE THAT RECEIVING THESE
NUMBERS WITHOUT SOME ADDITIONAL
CONTEXT
FOR SOME OF THE
LARGEST VARIANCES DOESN'T PUT
US INTO A
REALLY GOOD POSITION GOING INTO
THE BUDGET.
IT'S ALL ABOUT WHAT
WE'RE LOOKING AT AND HOW
WE MAKE
DECISIONS. EVEN THOUGH THE
TIMING OF
THE SLIDE TRANSMITTAL WAS
JANUARY 31st, A MONTH AFTER THE
FISCAL
YEAR END, IT SEEMS
PLAUSIBLE THAT CBO ANALYSTS
COULD
PROVIDE A LITTLE BIT MORE
CONTENT OR
EXPLANATORY INFORMATION TO
COUNCILMEMBERS, NOT NECESSARILY
NOW, BUT HOPEFULLY WE CAN
GET THAT GOING INTO THE BUDGET
AND,
YOU KNOW, THESE
ARE ONGOING DISCUSSIONS.
DOES THAT MAKE SENSE?
OKAY.
BEFORE CONTINUING
ON TO THE HOUSING, I'M LOOKING
TO SEE
IF THERE ARE ANY OTHER --
TOM, DO YOU HAVE ANY OTHER
COMMENTS
OR ADDITIONS BEFORE WE
GO TO THE NEXT PRESENTATION?
>> THANK YOU, COUNCIL PRESIDENT.
I WOULD ADD THAT
PART OF THE CHALLENGE YOU'RE
SEEING
IS BECAUSE OF THE USE OF THE
STRAIGHT- LINE APPROACH.
IT'S A VERY CRUDE METRIC, IN A
SENSE, AND AS ZACK POINTS
OUT, THERE'S SEASONALITY IN IT,
AND I
THINK THEY'RE TRYING OUT AN
APPROACH WITH THE
DEPARTMENTS THAT APPLIES THAT
SEASONALITY
TO KIND OF MORE FINE- TUNE THEIR
MODEL TO WHAT REALITY LOOKS
LIKE.
THE CHALLENGE IS THAT
YOU'VE NOW RECEIVED KIND OF
THE STRAIGHT-LINE LOOK, AND IT
KIND
OF DOESN'T HAVE ANY TRUE
VALUE FOR THIS PARTICULAR
MEETING
IN THAT CONTEXT, WITHOUT SOME
ADDITIONAL NARRATIVE.
SO, THE KIND OF DEDICATION TO
PROVIDE THAT
ADDITIONAL CLARIFICATION AND
NARRATIVE
OF WHAT -- IS TRULY GOING TO BE
A VALUE ADD, BECAUSE RIGHT NOW,
I'M KIND OF -- AS
STAFF ANTICIPATING THE BUDGET,
WONDERING WHAT'S TO COME,
GIVEN WHAT WE'RE SEEING IN THE
KIND OF
YEAR-TO-DATE COMPARISONS THEY
PROVIDED.
SO, IT SOUNDS LIKE THIS
IS A FIRST START OF THE -- THAT
THIS
REPORT FOR THE FISCAL
TRANSPARENCY PROGRAM, AND I
THINK THEIR KIND OF MESSAGES
ARE GOOD THAT THERE'S WAYS TO
IMPROVE, AND I THINK THAT
THEY'RE RECEPTIVE TO THOSE.
THANKS.
>> THANK YOU.
COUNCILMEMBER KETTLE?
>> THANK YOU, COUNCIL PRESIDENT.
FIRST, I JUST WANT
TO THANK EVERYONE FOR BEING
HERE, DIRECTOR EDER, MR.
KUENTZ FROM THE CBO, AND
DIRECTOR
WINKLER-CHIN AND YOUR TEAM AND
OF COURSE THE CENTRAL STAFF TEAM
AS WELL.
MR. MIKESELL AND MS. LE BRECHT,
WHOSE INSIGHT IS REALLY
HELPFUL TO ME, USUALLY COMING
THROUGH
MY STAFF ON DIFFERENT THINGS
LIKE THE ENCUMBERED POINTS AND
SO FORTH.
I APPRECIATE THIS
PROCESS, AND I ACTUALLY
APPRECIATE
THE BACK-AND-FORTH TOO, EVEN IF
IT
CAN BE UNCOMFORTABLE AT
TIMES, BECAUSE I THINK IT'S
IMPORTANT TO KIND OF BRING UP TO
THE
LEVEL -- TO THE SURFACE, IF YOU
WILL, SOME OF THE PIECES OF IT.
BECAUSE A LOT OF TIMES, IT COULD
BE RIGHT, BUT IF IT GOES
SIDEWAYS, IT COULD BE
PROBLEMATIC. AND I JUST WANTED
TO TAKE THE
OPPORTUNITY, TOO, SINCE
COUNCIL PRESIDENT BROUGHT IT
UP, THAT YOU KNOW, IN ADDITION
TO "THE
SEATTLE TIMES" ED BOARD, I THINK
WE SHOULD ALSO BE THANKING AND
GIVING CREDIT TO COUNCILMEMBER
DUNN ON THE KING COUNTY
COUNCIL, FOR HIS WORK, BECAUSE
IT
SHOWS AS AN EXAMPLE FOR US
SOMETHING
THAT WE WANT TO AVOID.
IT MAKES IT
THAT MUCH IMPORTANT FOR US TO
LOOK AT IT,
LOOK TO CROSS OUR Ts, DOT OUR
Is,
MAKE SURE THAT THINGS ARE RIGHT.
SOME OF THE POINTS THAT
THE CENTRAL STAFF HIGHLIGHTS TO
US, AND SO, I COMMEND HIM FOR
THAT.
AND ALSO, PROVIDING US
THE OPPORTUNITY TO STEP BACK,
TAKE
A BREATH, AND SAY, OKAY, WHAT
ARE
WE DOING HERE?
AND SOMETIMES, IT'S -- IT CAN
BE JUST A SIMPLE
MISUNDERSTANDING OR LOOKING AT
SOMETHING TWO DIFFERENT WAYS, AS
DIRECTOR
EDER JUST POINTED OUT, BECAUSE
IT'S
SO COMPLEX.
BUT GOING THROUGH THIS
PROCESS IS ALSO HELPFUL FOR THE
PUBLIC
TOO, AND SO I JUST WANTED TO
MAKE THAT POINT, GENERALLY,
AND I'LL ADD TO THAT, IN TERMS
OF
MY SPECIFIC AREA OF INTEREST,
YOU
KNOW, AS YOU KNOW, I CHAIR
PUBLIC SAFETY, AND I TEND TO
LOOK AT THINGS A LOT OF
TIMES THROUGH A PUBLIC SAFETY
LENS.
AND I REALLY -- AND I HAVE BEEN
SAYING THIS IN MEETINGS WITH A
LOT OF VERY SENIOR INDIVIDUALS
IN THE ADMINISTRATION AND SO
FORTH THAT I HAVE A GREAT
INTEREST IN THE SEAM THAT
EXISTS BETWEEN PUBLIC SAFETY AND
PUBLIC
HEALTH. THE SEAM THAT EXISTS
BETWEEN PUBLIC SAFETY AND HUMAN
SERVICES.
AND PUTTING EYES ON THAT
AND LOOKING AT HOW CAN WE DO
THINGS
BETTER, HOW CAN WE GET
ALIGNMENT, MAYBE, AND ALL THOSE
THINGS.
SO, I JUST WANTED TO STATE
THAT FOR THE PUBLIC, FOR THE
RECORD, THAT AS CHAIR OF THE
PUBLIC
SAFETY, THAT'S AN AREA I'M
NOW LOOKING INTO, AND I THINK
THERE'S OPPORTUNITIES.
AND THIS
IS SOMETHING THAT I HAVE BEEN
SPEAKING TO THE
EXECUTIVE, USUALLY ON THE PUBLIC
SAFETY SIDE, BUT I JUST WANTED
TO PUT THAT OUT THERE.
FOR
THIS PRESENTATION, I JUST HAVE
ONE QUESTION.
WE'RE GOING THROUGH
THE DIFFERENT
PIECES, AND YOU'RE HIGHLIGHTING
DIFFERENT PIECES.
AND I MAY HAVE MISSED
IT, BUT WAS THERE ANY LESSONS
LEARNED?
LIKE, WHAT LESSONS LEARNS
HAVE YOU TAKEN IN GOING THROUGH
THIS SOMETIMES UNCOMFORTABLE
PROCESS?
IS THERE ANYTHING WE CAN TAKE
AWAY TO HELP THE PROCESS?
MAYBE IT'S JUST
COMMUNICATION BETWEEN THE
EXECUTIVE AND
LEGISLATIVE BRANCHES. I DON'T
KNOW.
I JUST WANTED TO ASK THAT
QUESTION. IS THERE LESSONS
LEARNED?
>> I THINK IT WAS A VERY USEFUL
EXERCISE AND I
SINCERELY APPRECIATE THE
OPPORTUNITY TO
SORT OF DIVE IN AND SHARE
THE WORK THAT WE HAVE DONE,
LOOKING BACK AT THE LAST FIVE OR
SO
YEARS. I THINK, YOU KNOW,
THERE'S
NO WAY, LEGALLY, THAT WE CAN
SPEND MORE THAN OUR
APPROPRIATIONS.
THE COUNCIL SETS THE UPPER
LIMIT, AND
REVISES IT, UP UNTIL THE YEAR-
END SUPPLEMENTAL.
WE ARE NEVER GOING TO FIND
OURSELVES SPENDING MORE THAN OUR
ADOPTED -- SORRY, REVISED
BUDGET.
SO, IT'S NECESSARILY GOING TO
BE EITHER NO UNDERSPEND
WHATSOEVER OR SOME AMOUNT OF
UNDERSPEND, AND I THINK BETWEEN
1 AND 3% IS
IN THE RIGHT BALLPARK.
IT SUGGESTS TO ME THAT WE DO NOT
HAVE A TREMENDOUS PROBLEM HERE.
OTHER PEOPLE CAN REACH
DIFFERENT
CONCLUSIONS, BUT THAT WAS MY
TAKEAWAY HERE.
WE AVERAGE ABOUT A 2% NET
UNDERSPEND AFTER THE
CARRYFORWARDS.
I DO THINK THAT THERE
ARE OPPORTUNITIES, AND THE
CITY HAS BEEN WORKING
DILIGENTLY UNDER THE MAYOR'S
LEADERSHIP, TO MAKE
HOUSING DEVELOPMENT GO FASTER SO
THAT WE CAN GET THE DOLLARS OUT
THE DOOR MORE QUICKLY.
SO THAT WE'RE NOT LOOKING AT A
FOUR, FIVE-YEAR TIME
HORIZON FROM WHEN
WE MAKE OUR INITIAL AWARDS.
BUT THAT'S TRUE NOT ONLY
FOR AFFORDABLE HOUSING.
THAT'S FOR ALL KINDS OF
DEVELOPMENT. AND WE ARE WORKING
WITH STCI
AND WITH SOME POLICY CHANGES
UNDER
YOUR LEADERSHIP AND PARTNERSHIP
TO MAKE HAPPEN.
>> OKAY, THANK YOU.
CHAIR?
>> THAT'S GOOD. I WAS GOING TO
END
WITH THAT. SO, IS THIS GOOD
ENOUGH?
THANK YOU VERY MUCH FOR
BRINGING UP THAT AUDIT FROM KING
COUNTY.
ATTACHMENT C, COLLEAGUES, IS
WHERE YOU WILL FIND THE --
A LIST OF THE CONTRACTS FOR JUST
THREE OF THE DEPARTMENT -- FOR
THREE DEPARTMENTS, THOSE
OF WHICH APPARENTLY HAVE THE
MOST CONTRACTS, BUT IT'S REALLY
A
LOT OF FINE PRINT, AND THIS IS
JUST THREE OF THEM.
AND I WOULD HAVE THOUGHT THAT
OPCD WAS IN HERE.
SO, REALLY, I'M
LOOKING FORWARD TO
A DATABASE SO WE CAN MAKE THIS
MORE VISIBLE.
WE MAKE AWARDS, WE MAKE
DECISIONS AND THEN
SERVICE PROVIDERS ARE OFF TO DO
THEIR
WORK.
WE ALSO NEED TO, AT
TIMES, LOOK BACK AND MAKE SURE
THAT OVER A
CERTAIN PERIOD OF TIME,
THE PROBLEM THAT WE
WERE INITIALLY
TRYING TO ADDRESS IS GETTING
SOLVED.
SO, GO AHEAD
AND YOU CAN PROCEED TO THE --
OH.
GO AHEAD.
I'M LOOKING AT THE SCREEN
BECAUSE -- YES.
GO AHEAD.
>> THANK YOU, COUNCIL PRESIDENT.
I JUST -- ON SLIDE 8, GOING
BACKBACK TO ENCUMBRANCES AND
I UNDERSTAND THESE PROJECTS TAKE
MULTIPLE YEARS, AND I
DO THINK THAT THE FACT THAT
WE'RE
FIRST DOLLAR IN HAS AN IMPACT AS
WELL.
OBVIOUSLY, THE STATE AND
FEDS ARE LAST DOLLAR OUT, SO
THAT MEANS IT TAKES LESS TIME
FROM WHEN THEY GIVE THE MONEY TO
THE
PROJECT COMPLETION.
BUT BECAUSE WE'VE MADE
A POLICY DECISION TO DO FIRST
DOLLAR IN,
AND I UNDERSTAND WHY, SO
WE DON'T NEED TO NECESSARILY GO
--
UNLESS SOMEONE ELSE WOULD LIKE
TO KNOW -- I'M WONDERING,
WHAT DO WE HAVE IN PLACE -- YOU
KNOW,
AT WHAT POINT DO WE SAY, TELL,
TELL ME HOW LONG IT TAKES
FOR THESE PROJECTS, AND ARE
ALL THESE PROJECTS AVERAGING
THE
SAME? AND DO ANY OF THESE
PROJECTS FAIL?
AND THEN, WHAT HAPPENS AT THAT
POINT TO THOSE FUNDS?
DO THEY GET PUT BACK INTO
THE
SYSTEM TO AWARD SOMEONE ELSE?
HOW DOES THAT ALL WORK?
>> CAN I ADD ONE FINAL POINT
TO THAT QUESTION?
THAT'S AN EXCELLENT QUESTION.
I ALSO -- WE TALK ABOUT, WELL,
THE UNENCUMBERED PROJECTS
AND SOMETHING BECOMES OFFICIALLY
ENCUMBERED WHEN THE
CONTRACT IS SIGNED.
WHY DOES IT TAKE SO LONG TO SIGN
THAT CONTRACT?
>> I'M WONDERING IF WE
SHOULD WAIT UNTIL OUR
PRESENTATION,
BECAUSE WE KIND OF WALK
THROUGH THIS, SO THAT MAY BE
HELPFUL FOR
US TO WALK THROUGH THE STEPS.
IF I MAY SO SUGGEST.
>> SEEING NO OTHER QUESTIONS, GO
AHEAD, PLEASE.
>> OKAY.
THANK YOU VERY MUCH, COMMITTEE.
WE ARE HERE TODAY TO TALK ABOUT
HOW
THE OFFICE OF HOUSING SPENDS ITS
DOLLARS, WHICH REQUIRES
DISCUSSION OF THE TYPICAL
HOUSING FINANCING AND REAL
ESTATE DEVELOPMENT
PROCESS, WHICH I THINK
COUNCILMEMBER RIVERA, GETS TO
YOUR POINT.
WE'LL ALSO SHARE HOW THE
CITY'S HOUSING FUNDS WORK WITH
OTHER
FUNDS TO INVEST AND
OPEN NEW HOMES THROUGHOUT THE
CITY.
I THINK THERE'S A SWAPPING OF
CHAIRS.
AND BY BRINGING
OTHER DOLLARS TOGETHER WITH CITY
DOLLARS, WE
STRETCH OUR LOCAL INVESTMENTS
FURTHER TO BUILD AS MANY HOMES
AS POSSIBLE.
WE WANT TO
ACKNOWLEDGE COUNCILMEMBER KETTLE
FOR
YOUR REQUEST FOR THE
HOUSING INVESTMENT PLAN.
OUR TEAM IS WORKING ON THIS
DELIVERABLE, AND WE
APOLOGIZE FOR THE DELAY.
WE DO APPRECIATE YOUR
ATTENTION TO THIS IMPORTANT
ISSUE OF HOW
HOUSING DOLLARS ARE
ALLOCATED AND DELIVERED INTO
HOMES
AND COMMUNITIES THROUGHOUT THE
CITY.
AND
HERE, WE'RE LOOKING AT ONE OF
THOSE HOMES.
THIS IS JULIA AND HER
SON, WHO LIVE AT EL CENTRO'S
PLAZA ON
BEACON HILL.
AND I THINK A LOT
OF PEOPLE ARE PROBABLY FAMILIAR
WITH THAT
DEVELOPMENT.
JULIA'S FAMILY EXEMPLIFIES THE
WORK OUR OFFICE AND OUR
INVESTEES, OUR
PARTNERS DO ACROSS THE CITY
EVERY DAY.
AND I LIKE TO HIGHLIGHT
THIS, BECAUSE WE
OFTENTIMES THINK OF THE OFFICE
OF
HOUSING INVESTING IN THE
HOUSING, WHICH IS UP
ABOVE, BUT ON THE GROUND
FLOOR OF THIS SITE, IF YOU'VE
BEEN
THERE, THERE IS CHILD CARE.
THERE IS A REALLY COOL COFFEE
SHOP. WE HAVE FINANCIAL
INSTITUTION LOCATED RIGHT
NEARBY.
WE HAVE REALLY GOOD TACOS.
YOU GOT THE LIGHT RAIL
STATION ACROSS THE STREET.
YOU GOT THE MAJOR BUS, 36,
COMING DOWNTOWN THAT'S LOCATED
RIGHT NEAR THERE.
YOU'VE GOT GROCERY
STORES, ALL THE GREAT THINGS AND
THE LOCATION OF THIS
HOUSING, THINKING ABOUT IT
WITH ALL THE THINGS THAT THIS
HOUSING
CAN PROVIDE IS REALLY IMPORTANT,
SO I WOULDN'T WANT TO FORGET
ABOUT
THAT. NEW HOUSING
DEVELOPMENT CONTINUES AT A TIME
WITH
BOTH GREAT OPPORTUNITY AND GREAT
CHALLENGES, AND YES, NEW
HOUSING OPPORTUNITY IS HAPPENING
RIGHT
NOW. WE ARE MOVING FORWARD WITH
DEVELOPMENTS.
I ACTUALLY PRINTED THIS OUT SO I
HAD SOME SENSE OF, HM, I WAS
KIND OF LOOKING BACK AT MY OLD
BUDGET FROM LAST YEAR, AND I
DON'T KNOW IF YOU CAN REALLY
SEE THIS.
THE OFFICE OF HOUSING'S
BUDGET WAS $70 MILLION IN 2019,
WENT UP
TO $130 MILLION IN 2021, AND
WE'VE BEEN AT ABOUT --
RIGHT
AROUND $340 MILLION FOR BOTH OF
THE LAST TWO YEARS.
THE MAYOR ANNOUNCED ANOTHER
HISTORIC HOUSING BUDGET
YESTERDAY OF ALMOST $350
MILLION PROPOSED FOR 2026.
WITH MORE
FUNDING AVAILABLE TO BUILD NEW
HOMES, THE OFFICE OF
HOUSING HAS MORE DOLLARS
DEPLOYED ON HOUSING PROJECTS
THAN WE HAVE EVER HAD BEFORE.
THIS IS ACTUALLY A SUCCESS
STORY, AND WE WILL BE SHARING
MORE ABOUT HOW THESE FUNDS ARE
MOVING INTO COMMUNITY PROJECTS.
WE'LL COME BACK TO DESCRIBE THE
FINANCING TIMELINE FOR THE
HOUSING FEATURED HERE,
PLAZA
ROBERTO MAESTAS, LATER ON IN THE
PRESENTATION.
THE MAJORITY OF O.H. 'S BUDGET
IS DEDICATED TO CREATING NEW
HOMES AND
PRESERVING EXISTING HOMES. YOU
SEE THE 76%, AND THERE'S TWO
OTHER SMALLER 4% SLOTS THAT ARE
ALSO TIED TO WEATHERIZATION AND
HOME OWNERSHIP.
SO, THOSE ALL
GO INTO THE BUILDING OF NEW
HOMES AND
PRESERVING HOMES. AGENCY
SUPPORTS HIGHLIGHTED IN
BLUE FUND OPERATING AND
SERVICES EXPENSES AND PERMANENT
SUPPORTIVE HOUSING
AND AFFORDABLE HOUSING TO
SUPPORT RESIDENT STABILITY
AND WELL-BEING.
O.H. IS DEPLOYING THESE
AFFORDABLE HOUSING RESOURCES
TO ADDRESS THE GROWTH
TARGETS THAT HAVE BEEN SET FOR
SEATTLE BY
THE STATE OF WASHINGTON, AND
SEATTLE
NEEDS WELL OVER 100,000 MORE
AFFORDABLE HOMES, AND SEATTLE'S
HOUSING NEED IS GREATEST FOR
THOSE WITH THE LOWEST INCOMES.
SO, OUR CURRENT HOUSING
INVESTMENT PRACTICES.
AS WE'VE SAID EARLIER,
SEATTLE IS TYPICALLY THE
FIRST INVESTOR IN A PROJECT.
THIS ALLOWS THE CITY TO HELP SET
PRIORITIES FOR THE FUTURE AND
SECURE STRONG PROJECTS.
ONCE THE CITY HAS INVESTED IN A
PROJECT, THE PROJECT
SPONSORS, THE DEVELOPERS, ARE
ASSURED THAT THEY CAN CONTINUE
THE WORK
OFOF DESIGN
PREDEVELOPMENT AND BEGIN TO
SPEND MORE OF THEIR
OWN MONEY AND TIME TO DEVELOP
THE
PROJECT SO IT CAN BE BUILT
AS QUICKLY AS POSSIBLE.
O.H. STAFF ARE MEETING
REGULARLY WITH POTENTIAL
APPLICANTS
TO DISCUSS
CHALLENGES AND OPPORTUNITIES AND
TO HELP
INFORM KEY PROJECT CHANGES SO
THAT THEY
ARE AS COMPETITIVE AS
POSSIBLE, AND SO THEY OPERATE
INTO THE
LONG-TERM.
INVESTORS IN OUR COMMUNITY WORK
COLLABORATIVELY TO
PRIORITIZE INVEST IN PROJECTS
WHICH
HELPS US ENSURE THE MOST
FEASIBLE
PROJECTS MOVE AS QUICKLY AS
POSSIBLE. AND SOME OF THOSE
INVESTORS, WE'LL TALK ABOUT
LATER BUT
THEY INCLUDE OTHER GOVERNMENTAL
ENTITIES,TAX
CREDIT INVESTORS, EQUITY
INVESTORS AND PRIVATE
BANKS.
SEATTLE COULD CHOOSE TO INVEST
ALONE IN HOUSING AND MOVE
FASTER. BUT THERE'S A SERIOUS
COST TO
THIS, WHICH I WILL DISCUSS
LATER. I FEEL LIKE I KEEP SAYING
HOLD
ON, I'LL GET TO
THAT IN A SECOND, BUT THAT IS
BASICALLY HOW THIS
PRESENTATION GOES. SEATTLE
CURRENTLY MATCHES
FUNDS AT AROUND ONE SEATTLE
DOLLAR ATTRACTING $3 FROM OTHER
SOURCES.
SO, THIS IS AN OLDIE BUT GOODY
SLIDE. WE'VE SHOWN THIS A LOT.
THIS IS KIND OF THE LIFE CYCLE
OF AFFORDABLE HOUSING, AND WE'RE
GOING TO TALK NOW ABOUT
THE HOUSING FUNDING PROCESS AND
HOW
THIS WORKS.
THE MAYOR ANNOUNCED $170 MILLION
AVAILABLE FOR RENTAL HOUSING
PRODUCTION, PRESERVATION
AND STABILIZATION
THIS FALL. THIS PROCESS, WHICH
WE CALL THE
NOFA, IS REPRESENTED IN THE
YELLOW BOX ON THE LEFT.
SO, O.H. CAPITAL AWARDS ARE
MADE IN RESPONSE TO A NOTICE OF
FUNDING AVAILABILITY OR
SITE-SPECIFIC REQUESTS FOR
PROPOSALS. WE ALSO DO THAT.
THE O.H. INVESTMENT
COMMITTEE REVIEWS APPLICATIONS
AND PROJECTS ARE THEN SELECTED
AND RECEIVE A COMMITMENT
LETTER FROM THE CITY TO SECURE
THE FUNDS AND THE PROJECT GOING
FORWARD.
AS WE MOVE INTO THE YELLOW TO
THE GREEN ON THIS, DEVELOPERS
ARE WORKING HARD TO ASSEMBLE
OTHER FUNDING FROM ALL
SOURCES, INCLUDING THOSE EQUITY
INVESTORS
THAT I MENTIONED, AS WELL AS
THE
STATE AND THE FEDERAL GOVERNMENT
AND PRIVATE INVESTMENT.
DURING THIS PERIOD, A FUND
BALANCE ACCRUES ON O.H. 'S
BOOKS AS WE WAIT FOR ALL THE
LOANS TO
BE FINALIZED AND CONSTRUCTION
COSTS TO BE BILLED OR FIGURED
OUT FOR THE PROJECT. THIS IS A
STRUCTURAL ISSUE,
AND IT'S AN EXPECTED ISSUE, AND
IT'S
PART OF THE REAL ESTATE
DEVELOPMENT PROCESS.
IT USUALLY
TAKES ABOUT THREE YEARS BETWEEN
THE INITIAL
CITY FUNDING COMMITMENT AND
THE FIRST EXPENDITURE FOR
CONSTRUCTION, WHICH IS NOTED IN
GREEN.
WE'VE MADE SOME
IMPROVEMENTS OVER TIME TO BECOME
MORE EFFICIENT AT
ASSEMBLING FINANCING FOR THE
PROJECTS, AND
SOME PROJECTS ALSO
HAVE CHARACTERISTICS THAT MAKE
THEM
MOVE FASTER THAN OTHERS.
AND THAT CAN BE RELATED TO,
LIKE, THE SIZE OF THE
PROJECT OR THE SPECIAL LAND
FEATURES IF
THEY HAVE TO DO A LOT
OF CONSTRUCTION WORK ON THE
SITE.
IN REAL ESTATE DEVELOPMENT,
WHEN WORKING WITH MAJOR
BANKS AND NUMEROUS
SUBCONTRACTORS,
A
PREDICTABLE PROCESS IS VALUED
AND REWARDED.
NOT COUNTING PROJECTS THAT ARE
CURRENTLY APPLYING FOR THE
NOFA, WE HAVE ABOUT 40 PROJECTS
IN
PROCESS THAT ARE KIND OF IN
THIS YELLOW TO GREEN PART UP ON
THIS
CHART.
WITH TOTAL INVESTMENTS EXCEEDING
$2 BILLION.
RIGHT NOW, UNDER WAY.
SO, WE HAVE SOME DOLLARS COMING
IN, AND THEY'RE HELPING FUND
ABOUT $2 BILLION
WORTH OF CONSTRUCTION RIGHT NOW.
THIS $2 BILLION
INCLUDES MANY OTHER
FUNDING SOURCES OUTSIDE OF CITY
SOURCES, PRIMARILY THE
LOW- INCOME HOUSING TAX
CREDITS, PRIVATE BANK DEBT AND
STATE OF
HOUSING -- STATE OF
WASHINGTON HOUSING TRUST FUND
DOLLARS.
THIS MEANS THAT APPROXIMATELY
$500 MILLION OF CITY
FUNDS ATTRACTS ABOUT $1.5
BILLION
OF OTHER FUNDS INTO OUR
CITY TO BUILD MORE HOMES.
IN THESE ADDITIONAL
DOLLARS BRINGS JOBS AND SUPPORT
OUR ECONOMY AND ENABLE
AFFORDABLE HOUSING PROJECTS TO
CONTINUE,
EVEN WHEN OTHER DEVELOPMENTS
SLOW DOWN OR STALL.
IF SEATTLE INVESTED IN
HOUSING ALONE, AND WE
DIDN'T COUNT ON THE OTHER
DOLLARS, WE COULD
PROBABLY MOVE MORE PROJECTS
FASTER, BUT THERE WOULD
BE CONSEQUENCES.
WE WOULD MISS OUT ON BILLIONS OF
FUNDS FROM OTHER SOURCES.
WE WOULD EXPERIENCE MORE RISK AS
FUNDER ON A PROJECT.
WE WOULD FAIL TO
MEET THE SEATTLE HOUSING LEVY
GOALS
APPROVED BY THE VOTERS, AND
WE WOULD BUILD FAR LESS HOUSING
OVERALL, PROBABLY ABOUT 65%
FEWER HOMES.
WE CONTINUE TO WORK WITH
OUR PARTNERS AND COMMUNITY AND
OUR INVESTMENT PARTNERS TO
STRETCH CITY RESOURCES AS FAR
AS POSSIBLE.
SERVING AS RESPONSIBLE STEWARDS
OF THE VOTER-APPROVED HOUSING
LEVY AND BRINGING AS MANY NEW
HOMES ONLINE AS WE CAN.
HERE WE PROVIDE A HIGH-
LEVEL VIEW OF THE OFFICE OF
HOUSING DEVELOPMENT CYCLE.
THIS CHART SHOWS HOW
DIFFERENT PHASES OF THE PROCESS
OVERLAP FROM YEAR TO YEAR.
AGAIN, YOU CAN SEE WE START WITH
THE NOFA.
WE MOVE TO AN AWARD AND
CONTRACT AS FINANCING IS
SECURED.
PROJECTS ARE THEN BUILT
OVER THE NEXT 12 TO 24 MONTHS.
PROJECTS OPEN AS THEY LEASE
UP, WELCOMING NEW RESIDENTS HOME
AND ACHIEVE FINAL STAGE AS
ALL FINANCING IS CLOSED OUT
AND CONVERTED TO A PERMANENT
MORTGAGE.
THIS IS OUR STANDARD PROCESS.
IT'S DESIGNED TO BE
PREDICTABLE AND TO SECURE THE
MOST BANG FOR
OUR BUCK OR WHAT WE OFTEN
CALL THIS LEVERAGE OF OTHER
FUNDS.
YOU CAN SEE HOW
THIS PROCESS STARTS EACH YEAR
AND
REQUIRES AROUND SIX YEARS TO
ACHIEVE
FULL CLOSEOUT.
EVERY YEAR, WE ISSUE NEW FUNDS
FOR COMPETITION AND BEGIN
THE CYCLE AGAIN.
AT ANY POINT IN TIME, WE
ARE COLLECTING NEW REVENUE, WE
ARE ADMINISTERING PRIOR FUNDS,
AND ALL
STAGES OF THE DEVELOPMENT
PROCESS ARE UNDER WAY AT
ONCE. YOU CAN SEE IN THIS 2025
COLUMN, CIRCLED IN RED, THAT OUR
O.H.
STAFF TEAM AND OUR
COMMUNITY PARTNERS ARE VERY BUSY
WORKING
ON EVERY STAGE OF THIS
HOUSING FUNDING AND DEVELOPMENT
PROCESS AT ONCE.
WE'RE OPERATING
PROJECTS THAT WERE FUNDED IN
PRIOR YEARS.
WE'RE BUILDING PROJECTS THAT
WERE FUNDED IN 2021 AND 2022.
WE ARE FINALIZING CONTRACTS FOR
'23 AND '$24 AND WE'RE IN
THE MIDDLE OF A NAFA
PROCESS FOR
2025 FUNDS. THERE'S A LOT
HAPPENING AT ONCE.
CONSIDER COMPARING THE OFFICE
OF HOUSING INVESTMENTS TO
OTHER CITY INVESTMENTS THAT ARE
PART OF THE CAPITAL IMPROVEMENT
PROGRAM, THE CIP, LIKE SDOT
AND CITY LIGHT.
THE C PIRKS, IS A SIX-
YEAR DOCUMENT WHICH BETTER
REFLECTS HOW MOST O.H. HOUSING
FUNDS
WORK. MOST OF O.H. 'S BUDGET
GOES TOWARD
CAPITAL PROJECTS. WE DO NOT
PROVIDE A LUMP SUM
PAYMENT UP FRONT.
CONSTRUCTION COSTS
ARE REIMBURSED OVER TIME AS
STAGES OF WORK ARE COMPLETED
AND DOCUMENTED EXPENSES
ARE SUBMITTED TO OUR TEAMS FOR
REVIEW.
AT THIS POINT IN TIME, THE O.H.
TEAM AND OUR COMMUNITY PARTNERS
HAVE A COMBINED 40 PROJECTS
IN PROCESS AT VARIOUS STAGES
OF DEVELOPMENT.
THEY'RE SEEKING ADDITIONAL
FINANCING, THEY'RE WORKING ON
PREDEVELOPMENT AND
DESIGN, THEY'RE CLOSING ON
LOANS, AND CHART LINES UP
WITH
INFORMATION THAT HAS BEEN
PROVIDED TO CITY COUNCIL AS
RECENTLY AS THIS YEAR.
A DETAILED UPDATE WILL BE
SHARED.
YOU SAY SPEND
UNDERSPEND IS NOT THE TERM
WE PREFER AS WE SEE THESE AS
FUNDS
IN ACTION.
OUR CASH
BALANCE HAS INCREASED, AS OUR
RESOURCES HAVE INCREASED
OVER TIME, THANKS TO THE VOTERS
OF SEATTLE.
WE PASSED THE
LARGEST EVER HOUSING LEVY.
WE RECEIVED NEARLY $140
MILLION IN PAYROLL EXPENSE TAX,
AND WE HAVE MANDATORY
HOUSING AFFORDABILITY FUNDS AND
OTHER FEDERAL FUNDS.
WITH RECORD INVESTMENTS IN
HOUSING, IT IS
EXPECTED THAT THE HOUSING CASH
BALANCE WILL GROW.
IN YELLOW AT THE TOP OF THIS
CHART, YOU CAN SEE THE P.E.T.
COMMITMENT FOR NOFAs AND RFPs
WITH OUR RENTAL HOUSING
NOFA CURRENTLY SEEKING
PROPOSALS.
THEY'RE GOING TO BE REVIEWED IN
THE MONTHS AHEAD.
AN EXAMPLE OF A PROJECT IN
THIS STAGE OF THE PROCESS IS THE
LAKE CITY COMMUNITY
CENTER, WHICH YOU'VE ALL TAKEN
ACTION ON VERY
RECENTLY, THANK YOU VERY
MUCH FOR YOUR SUPPORT.
THE CITY HAS AWARDED
OVER $30 MILLION TO SECURE THE
LAKE CITY PROJECT.
AND WE'RE WORKING WITH OUR
ONE SEATTLE PARTNERS TO
COMPLETE NUMEROUS PREDEVELOPMENT
TASKS
TO SET THIS PROJECT UP
WELL. IN THE GREEN, YOU CAN SEE
RENTAL HOUSING AWARDS AND
CONTRACTS
IN PROCESS TOTALING $106
MILLION.
THESE PROJECTS ARE WORKING
TO SECURE OTHER
FINANCING AND ALSO AT VARIOUS
STAGES
OF CONSTRUCTION.
EXAMPLES INCLUDE EL
CENTRO'S BEACON HILL PROJECT
AND THE
YMCA LEXINGTON AND CONCORD
PROJECT,
WHICH IS IN THE PREDEVELOPMENT
STAGE.
HOME OWNERSHIP PROJECTS ON
THE SEPARATE LINE HERE
FOLLOW A SIMILAR PROCESS,
ASSEMBLING FINANCING, MOVING
THROUGH
CONSTRUCTION.
HOMESTEAD CLTs HAS
RECENTLY TOPPED OUT BUT IT IS
STILL
WRAPPING UP ITS
FINAL CONSTRUCTION ACTIVITIES
INSIDE.
VERY EXCITED TO SEE THAT PROJECT
OPEN.
ON LINE FOUR, FOR
STABILIZATION, WE HAVE MADE
COMMITMENTS IN
THE LAST TWO YEARS
EXCEEDING $150 MILLION TO
SUPPORT PROJECTS
TO OPERATE MORE SOUNDLY
AND COMPLETE CONSTRUCTION, AND
WE
HAVE $28 MILLION
THIS YEAR TO
CONTINUE SUPPORTING
STABILIZATION OF PROJECTS UNDER
CONSTRUCTION.
EARLIER, COUNCILMEMBER RIVERA
ASKED DO PROJECTS FAIL?
ONCE THEY START
CONSTRUCTION WITH THE OFFICE OF
HOUSING
AND OUR PARTNER FUNDERS, THEY DO
NOT
FAIL. WE HAVE NOT SEEN A PROJECT
FAIL
ONCE WE HAVE INITIATED
CONSTRUCTION. WE HAVE OUR FUNDS
AVAILABLE AND
THE FUNDS OF OUR PARTNERS
THAT COME TO BEARBEAR
MAKE SURE THAT PROJECTS ARE
BUILT AND OPENED.
O.H. HAS NEARLY, IN THE
BLUE, THE FINAL LINE, WE HAVE
NEARLY $50 MILLION IN CONTRACTS
FOR OPERATING MAINTENANCE
AND SERVICES AND
WORKFORCE STABILIZATION FOR
PERMANENT SUPPORTIVE HOUSING.
THESE CONTRACTS ARE BILLED ON A
REIMBURSEMENT BASIS
THROUGHOUT THE YEAR AND IT'S
EXPECTED
TO SEE A BALANCE ON
THOSE CONTRACTS
AT THIS LEVEL, AS SPENDING
OCCURS REGULARLY THROUGHOUT THE
YEAR.
>> THAT CONCLUDES OUR
PRESENTATION.
AND WE'RE HAPPY TO TAKE YOUR
QUESTIONS NOW.
>> I WILL OPEN THIS UP TO OTHER
PEOPLE AND NOT GO FIRST THIS
TIME.
COUNCILMEMBER RIVERA.
>> THANK YOU, CHAIR.
AND I HAVE SPOKEN, SO IF A
COLLEAGUE WOULD LIKE TO ASK A
QUESTION, I'M HAPPY TO WAIT.
NO?
OKAY.
ALL
RIGHT. SO, FOR SOME REASON, THIS
IS --
I CAN'T GET THIS CLOSE ENOUGH
SO YOU CAN HEAR
ME.
OKAY. SO, THE PROJECTS -- SO, I
UNDERSTAND YOU'RE SAYING
IF THEY START COMPLETION, THEY
DON'T
FAIL. WHAT ABOUT STARTING
COMPLETION?
I
MEAN, STARTING CONSTRUCTION, NOT
COMPLETION.
ARE ANY OF THESE
PROJECTS YOU -- YOU YOU'RE DOING
FIRST DOLLAR IN, YOU AWARD IT
AND
THEN THEY HAVE TO SECURE
OTHER FUNDING TO EVEN START
THE CONSTRUCTION.
SO, DO ANY OF THE PROJECTS NOT
MAKE IT BECAUSE THEY'RE NOT
ABLE
TO SECURE THAT OTHER
FUNDING, AND IF SO, THEN WHAT
HAPPENS TO THE PROJECT, TO THE
FUNDING
THAT WE'VE
AWARDED? HOW MANY PROJECTS, IF
THIS
IS HAPPENING?
IF IT'S NOT,
THEN IT'S ZERO,
OBVIOUSLY, BUT HAS THIS
HAPPENED?
CAN YOU GIVE
US A PICTURE OF THIS?
AND BEFORE YOU ANSWER, CAN I
ADD, IT'S MY UNDERSTANDING THAT
O.H. HAS PERHAPS ABOUT 40
AWARDS THAT ARE KIND OF
OUTSTANDING OR
SO, AND SO WHAT IS THAT --
GETTING BACK TO THE WE
DON'T FUND PROJECTS --
OUR PROJECTS
DON'T FAIL. DO THEY JUST HANG
AROUND FOR
A LONG TIME BEFORE ACTUALLY
BEING HABITABLE÷÷HABITABLE THERE
ARE
SOME OTHER THINGS THAT THE
CITY COULD BE DOING TO IMPROVE
THE --
FINISHING THEM, LIKE PERMITTING
OR ANYTHING LIKE THAT?
>> SO, TWO VERY DIFFERENT
QUESTIONS.
I THINK FIRST, COUNCILMEMBER
RIVERA, YOU HAD
ASKED WHAT HAPPENS TO PROJECTS
BEFORE
WE
START CONSTRUCTION? ARE THERE
PROJECTS THAT HAVE
NOT MADE IT ALL THE WAY THROUGH?
THERE ARE A FEW THAT HAVE
NOT MADE IT ALL THE WAY THROUGH.
SOME ORGANIZATIONS -- I
CAN THINK OF TWO VERY
DIFFERENT PROJECTS.
ONE IN WHICH THE ORGANIZATION
CHOSE NOT TO ACCEPT OUR DOLLARS.
AND IT JUST WORKED BETTER
FOR THEM IF THEY CHOSE NOT
TO ACCEPT OUR DOLLARS.
AT THAT POINT, WE TOOK --
WE RESCINDED OUR OFFER AND
CYCLED THEM BACK INTO
OUR NOFA. THAT'S ONE OF THE
NICE
THINGS ABOUT THE TIMING OF OUR
NOFA BEING AT THE END OF THE
YEAR,
NOT TO BE DOING THE SCRAPING
OF DOLLARS TOGETHER, BUT WE KIND
OF LOOK AND SEE WHERE PROJECTS
ARE, AND THEN WE CAN JUST
WRAP THEM INTO OUR NEXT FUNDING
CYCLE.
THE OTHER PROJECT
WAS ONE WHERE THE PROJECT WAS
NOT MOVING,
AND WE DID NOT FEEL -- THERE
WERE SOME CHANGES THAT
HAPPENED AT THE ORGANIZATION,
AND THAT IT WAS NOT PROGRESSING
ALONG,
AND SO WE RESCINDED
THE OFFER AND SAID, IF YOU'D
LIKE TO COME
BACK IN ONCE YOU'VE FIGURED
OUT,
REALLY, WHAT'S BEST IN THIS
AREA WITH YOUR ORGANIZATION AND
YOUR ORGANIZATIONAL FOCUS,
PLEASE
COME BACK.
BUT THERE'S NO OUTSTANDING --
THERE'S NO DOLLARS FOR THEM TO
COME -- THEY HAVE TO REAPPLY.
WITH A WHOLE NEW PLAN.
>> SO, THESE TWO EXAMPLES
OCCUR
IN THE YELLOW AND THE ORANGE
SECTION ON THIS CHART?
ONCE WE REALLY ENTER INTO
GREEN, THAT'S WHEN YOU
HAVE 20, 30 LAWYERS ON A CALL.
IT'S VERY SERIOUS PROCESS,
VERY COMPLICATED TO
ACHIEVE FINAL CLOSING FOR THESE
PROJECTS.
WE'VE NOT SEEN THEM FAIL ONCE
WE
ENTER THIS PART OF THE CHART.
>> SO, IT'S -- OH.
>> IF I MAY ADD TO THAT.
WHEN I FIRST STARTED
WORKING IN
THE BUDGET OFFICE, I HAD THE
SAME QUESTION.
I ASKED IT FROM A
SLIGHTLY DIFFERENT PERSPECTIVE.
I SAID, ARE THERE
HOUSING PROJECTS THAT WE HAVE
AWARDED MONEY TO THAT, FOR
WHATEVER
REASON, HAVE HUNG ON AND HUNG
ON FOR MORE THAN FIVE YEARS?
I SAID, I ASSUME THERE ARE SOME,
AND I'D LIKE TO KNOW WHICH
ONES THERE ARE, HOW MUCH MONEY
WE
HAVE INVESTED IN THEM AND
WHY THEY'RE EITHER NOT
MOVING
FORWARD OR WE'RE NOT CUTTING
BAIT.
THE ANSWER WAS, THERE ARE NONE
OF THOSE PROJECTS.
SO, WE DON'T -- AT
LEAST AT THE TIME THAT I ASKED
THE
QUESTION, THERE WERE NO
QUESTIONS THAT
WERE SIX YEARS OR LONGER
WHERE WE HAD MADE AN AWARD
THAT THEY HAD NOT PROCEEDED
APACE
AND TURNED INTO PROJECTS OR WE
DID CUT BAIT BECAUSE, IN THOSE
RARE EXAMPLES THAT YOU JUST
HEARD
ABOUT, THE PROJECTS
DIDN'T ULTIMATELY MOVE FORWARD.
BUT THERE AREN'T -- THERE
AREN'T THESE ZOMBIE PROJECTS
HANGING
AROUND THAT WE JUST
HAVEN'T DECIDED ABOUT OR WE
HAVE
HOPES AND DREAMS ABOUT SOME
FUTURE MONEY THAT HASN'T QUITE
COME.
PROJECTS GET BUILT.
THEY GET
BUILT, TYPICALLY, WITHIN FIVE
YEARS OR FEWER.
>> IT IS ONE OF THE LEVY
PRIORITIES, ESPECIALLY STATED
NOW, IN OUR MOST RECENT
NOFA, THAT YOUR PROJECT IS
EXPECTED TO BE UNDER WAY, I
THINK, 16
MONTHS, 18 MONTHS, BY MARCH OF
2027, ANTICIPATING AN
ANNOUNCEMENT AT LATEST JANUARY
2026.
WE ALIGN ALL THE PUBLIC
FUNDERS, SO WHEN SOMEBODY
APPLIES TO
US, THEY APPLY TO THE OTHER
PUBLIC FUNDERS AND THE ENTITY
THAT ALLOCATES THE BONDS AND THE
TAX
CREDITS ALSO PARTICIPATE, AND
SO, WE ARE ALL ALIGNING
TOGETHER IN ORDER TO MOVE
THE PUBLIC FUNDING SIDE OF IT AS
QUICKLY AS
POSSIBLE.
BUT ONE OF THE THINGS THAT IS
CONSIDERED IS WHAT IS
THE VIABILITY OF THE
ORGANIZATION IN
ORDER TO GET THE
EQUITY INVESTMENTS REQUIRED, AS
WELL
AS THE BANK LOANS REQUIRED TO
MOVE
THE PROJECT FORWARD?
>> THANK YOU.
SO, ONLY TWO PROJECTS IN THE
HISTORY OF THE O.H. --
>> THAT I KNOW
OF. I HAVEN'T BEEN THERE THAT
LONG.
>> OKAY.
SO, I MEAN -- AND I APPRECIATE
YOU, THAT YOU ASKED THE
SAME QUESTION A NUMBER OF YEARS
AGO.
I ALSO KNOW THAT THE MONEY --
THE MONEY FOR HOUSING PROJECTS
HAS REALLY SKYROCKETED IN THE
LAST FEW YEARS, SO THERE
ARE MORE PROJECTS
THAN MAYBE WHEN YOU FIRST ASKED
THE QUESTION.
SO, I THINK EVERY SO OFTEN,
IT'S GOOD TO ASK THE QUESTION
AND IN THE CONTEXT OF, THESE
40 PROJECTS THAT ARE MOVING
FORWARD, ARE THESE THE PROJECTS
THAT MAKE UP THE ENTIRETY OF
THE UNDERSPEND, WHETHER IT
BE GENERAL FUND, P.E.T. OR
WHATEVER
ELSE?
>> WE CAN FOLLOW UP
WITH MORE INFORMATION ON THAT.
AND I JUST TRACED THE HISTORY.
I'VE ONLY BEEN WITH CBO FOR A
YEAR. IT HASN'T
BEEN THAT LONG.
>> SO, IN THE LAST YEAR,
YOU'VE ASKED THIS
QUESTION.
>> YES.
>> AND I'D LOVE TO KNOW THOSE
40
PROJECTS, IS THAT WHAT'S MAKING
UP THE UNDERSPEND?
THE ENTIRETY OF THE UNDERSPEND?
OR IS THERE SOMETHING
ELSE THAT'S ALSO CONTRIBUTING
TO THE
UNDERSPEND, NOT JUST THESE 40
PROJECTS?
THAT I UNDERSTAND CAN TAKE FOUR
TO SIX YEARS TO COMPLETION.
>> THIS SLIDE 8 IS A FAIRLY
FAIRLY
PROXY FOR THE REST OF OUR BUDGET
TO SHOWSHOW WHERE DIFFERENT
FUNDS ARE IN PROCESS AT THIS
TIME.
SO, THIS IS WHAT WAS
SUBMITTED AS OF MAY 31st, AN
UPDATE WILL BE COMING TO YOU
SOON.
BUT IT IS CAPTURING
THE DIFFERENT PARTS OF THE
PROCESS THAT ARE ACCOUNTING FOR
THESE DIFFERENT LEVELS.
GENERALLY, THE BULK OF IT IS
WHAT YOU SAY.
IT IS COVERING THE 40 PROJECTS
THAT ARE IN PROCESS FROM
AWARD TO CONTRACT TO BUILDING
AND BILLING US FOR
CONSTRUCTION ACTIVITIES.
THAT'S THE MAJORITY OF THIS
MONEY THAT YOU'RE TALKING ABOUT.
>> COULD I PLEASE
REQUEST THAT YOU ADD ANOTHER
COLUMN TO
THIS AND THEN PUT NUMBER OF
PROJECTS
AT EACH OF
THESE STAGES?
>> YOU BET.
>> THANK YOU.
AND THEN, COUNCILMEMBER --
I MEAN, SORRY, CHAIR, I HAD
ONE MORE QUESTION IF THAT'S
OKAY.
>> YEAH.
>> SO, ARE THERE OTHER
CITIES
THAT DO FIRST DOLLAR IN LIKE WE
DO?
>> FIRST DOLLAR IN?
I THINK IT'S FAIRLY COMMON.
COUNCILMEMBER RIVERA, I'M GOING
TO HAVE TO GET BACK TO YOU.
I FEEL THAT IT'S PRETTY
COMMON
IN TALKING WITH THE OTHER MAJOR
CITIES IN THE COUNTRY.
BUT LET ME CONFIRM AND
GET BACK WITH
YOU.
>> THAT'D BE GREAT.
THANK YOU, DIRECTOR.
I'D LOVE TO KNOW IF THERE
ARE
ANY. IF SO, WHAT THEIR
COMPLETION OF
PROJECT TIMES ARE, HOW MANY
PROJECTS THEY CARRY, WHAT THEIR
UNDERSPEND, IF YOU WILL, AND
IT'S IMPORTANT TO KNOW.
>>÷÷ I COULD TELL YOU,
BECAUSE OF THE POSITION OF SOME
OF
THE OTHER PUBLIC FUNDERS IN THE
TAX
CREDIT, THE TAX CREDIT AND
THE BOND PROCESS, IF WE WERE NOT
THE FIRST DOLLAR IN, THE
STATE TYPICALLY WILL NOT GO IN
--
NOT TO DISPARAGE MY FRIENDS AT
KING
COUNTY, BUT THEY DON'T HAVE AS
MANY RESOURCES AS WE DO.
THE BANK WILL NOT BE ABLE
TOTO BECAUSE THERE WOULD
BE SUCH A LARGE FUNDING GAP
BECAUSE WE'RE NOT WILLING TO GO
IN, WHICH MEANS THEY'D NEVER
HAVE A
COMPLETE APPLICATION IN
WHICH TO
SUBMIT TO THE TAX CREDIT
INVESTOR.
SO, IF WE WERE NOT THE
FIRST DOLLAR IN, YOU'D KIND OF
GET
STUCK.
>> OKAY.
BUT YOU'LL GET BACK
TO ME ON WHAT OTHER CITIES ARE
DOING AND
WHAT THEIR TIME FRAME IS FOR
THOSE PROJECTS AND HOW MANY
PROJECTS THEY'RE CARRYING?
>>
YES.
>> GREAT. THANK YOU SO MUCH ON
THAT.
CHAIR, I CEDE -- NOT CEDE, BUT
I'M GOOD FOR NOW.
>> COUNCILMEMBER
KETTLE.
>> THANK YOU, COUNCIL PRESIDENT,
AND
AGAIN, THANK YOU, EVERYONE, FOR
JOINING US.
DIRECTOR, I JUST WANTED TO --
YOU MENTIONED
IT, AND BY THE WAY, THERE'S BEEN
A BUNCH OF
SLIs COMING IN.
I HAVE A PACK OF LANDLORD-
TENANT
RENTAL RELATED ONES
AND OF COURSE THIS ONE HERE FROM
YOU, WHICH YOU ACTUALLY --
MS. LARSON, FROM YOUR TEAM,
I GUESS, WROTE IT.
IT SAYS, WE HAVE SPOKEN TO MY
STAFF AND
UNDERSTAND THERE'S INTEREST IN
A BROADER SCOPE OF
THE PROJECTED HOUSING OUTCOMES
ACROSS ALL O.H. FUND SOURCES
AND INCENTIVE PROGRAMS.
THIS IS THE S.H.I.P., THE
SEATTLE HOUSING INVESTMENT PLAN
QUESTION.
THERE MAY BE SOME OTHER
THOUGHTS ABOUT THIS IDEA, BUT
MY CONVERSATIONS WITH FORMER
COUNCILMEMBER MOORE, MY APPROACH
TO THIS WAS, HAVING O.H. ,
BASICALLY, PUT YOURSELVES IN
SDOT'S SHOES AND WITH THE
SEATTLE TRANSPORTATION PLAN, YOU
KNOW, A MAJOR LOOK AT THE
ENTERPRISE.
FIRST, THE FUNDING.
AND I SAY THIS BECAUSE, LIKE, WE
HAVE MFT COMING UP, MFTE, AND
WE SEE -- WE
TEND TO LOOK AT THESE THINGS
INDIVIDUALLY AND NOT
ACROSS, YOU KNOW, BECAUSE WE --
THERE'S P.E.T.
THERE'S MHA.
YOU MENTIONED HOUSING LEVY,
BUT NOW WE HAVE THE SOCIAL
HOUSING
LEVY.
WE HAVE ALL THESE
DIFFERENT
FUNDS. AND SO, A PLAN THAT LOOKS
AT REVENUE ACROSS THE BOARD AND
SAYS, OKAY, THIS IS WHAT WE
HAVE, AND THEY MAY HAVE
IMPACTS ON EACH OTHER.
OR THERE MAY BE -- THEY
MAY SUPPORT EACH OTHER IN THE
SENSE
OF, LIKE, A DOWNTURN, LIKE,
MHA, MAYBE, AND OBVIOUSLY, THE
TWO BIG ONES ARE THE TWO HOUSING
LEVIES, THE REGULAR AND
THE SOCIAL HOUSING LEVY, AND I
THINK
THAT WOULD BE VERY
BENEFICIAL BECAUSE WHEN THESE
THINGS
COME UP
AS INDIVIDUALS, IT'S -- WHAT'S
THE CONTEXT?
DESPITE THE GREAT EFFORTS
OF CENTRAL STAFF TO GIVE US
CONTEXT ON A REGULAR BASIS, THAT
WOULD BE VERY IMPORTANT IN
TERMS OF A SEATTLE HOUSING
INVESTMENT PLAN.
>> COUNCILMEMBER, I WILL SAY
ABOUT THE SOCIAL HOUSING PDA,
THEY ARE A
DIFFERENT GOVERNMENTAL ENTITY,
AND ALTHOUGH THEY'RE FRIENDLY,
I
CAN'T TELL YOU WHAT THEIR PLAN
IS.
>> AND I RECOGNIZE THAT, SO
I'LL GO TO PART B OF THIS.
HOUSING.
WE NEED A SEATTLE HOUSING PLAN.
I'LL TAKE THE INVESTMENT OUT.
SEATTLE HOUSING PLAN.
SO, AS
YOU KNOW, THERE'S PERMANENT
SUPPORTIVE
HOUSING, THERE'S AFFORDABLE
HOUSING,
AND ITS DIFFERENT BANDS AND
SO
FORTH. THERE'S SOCIAL HOUSING
AND
THE
LIKE. WE NEED TO HAVE A
COMPREHENSIVE
LOOK, AND AS YOU KNOW, WE'RE
THE
MAIN DRIVER OF KCRHA, YOU KNOW,
THE PERMANENT SUPPORTIVE
HOUSING. THAT HAS TO BE PART OF
IT.
YOU'RE RIGHT, BUT WE HAVE TO
UNDERSTAND THE SOCIAL
HOUSING PIECE AND HOW IT IMPACTS
AFFORDABLE HOUSING OR
PERMANENT SUPPORTIVE HOUSING,
AND
WE NEED THAT COMPREHENSIVE LOOK.
I'M FRUSTRATED IN TERMS OF,
LIKE, THE -- I SUPPORT SOCIAL
HOUSING, BUT TO YOUR POINT,
IT'S A LITTLE BIT FRUSTRATING
BECAUSE WE NEED TO HAVE THAT
COMPREHENSIVE APPROACH
TO HOUSING SO WE UNDERSTAND AND
WE
UNDERSTAND, LIKE, A
BIG THING FOR ME IS, LIKE, OUR
ABILITY
TO DIGEST THOSE FUNDS.
ARE WE DOING IT RIGHT?
YOU'VE ANSWERED A LOT OF THOSE
PIECES AS IT RELATES TO
AFFORDABLE HOUSING, BUT WE
REALLY NEED A PLAN FOR SEATTLE
HOUSING THAT INCLUDES
PERMANENT SUPPORTIVE HOUSING,
AFFORDABLE HOUSING IN
ITS VARIOUS TYPES, AND SOCIAL
HOUSING.
AND THAT'S
WHAT I'M LOOKING FOR BECAUSE
THAT'S GOING TO
ALLOW US -- LIKE I SAID,
SDOT, THEY HAD THEIR PEDESTRIAN
PLAN.
THEY HAD A STREET PLAN.
THEY HAD A BRIDGE PLAN,
FREIGHT PROGRAM PLAN, AND THEN
THEY HAD
TO BRING IT TOGETHER BECAUSE
THERE'S TRADEOFFS AND THERE HAS
TO BE A STRATEGY, AN
OVERALLOVERALL
STRATEGY. AND I RECOGNIZE THAT
PDA,
THEY MAY GO OFF HERE, BUT
THAT'S GOOD
TO KNOW.
IF THEY'RE NOT IN SYNC WITH
WHAT WE'RE DOING, OR WHAT KHRA
IS DOING ON PERMANENT SUPPORTIVE
HOUSING, THAT'S A
PROBLEM AND THE PUBLIC SHOULD
KNOW IT. AND SO, THIS IS THE
REASON
WHY, YOU KNOW -- AND GOING BACK
TO
SDOT, THEY HAVE TO SHOW THOSE
TRADEOFFS BECAUSE THEY
COULD SPEND $1.3 BILLION JUST ON
SIDEWALKS. THEY COULD SPEND IT
ON BRIDGES.
BUT THEY CAN'T.
THEY HAVE TO SHOW THE TRADEOFFS
AND, LIKE, THIS IS THE
REASON WHY WE'RE PUTTING THIS
MUCH INTO THE BRIDGE
PROGRAM OR THIS MUCH INTO THE
FREIGHT PROGRAM.
AND I BELIEVE -- AND I
RECOGNIZE THE POINT REGARDING
PERMANENT SUPPORTIVE AND
SOCIAL, BUT I BELIEVE THE CITY,
WE WOULD
BE BETTER OFF IF WE CAN
SPEAK TO IT IN TERMS OF STRATEGY
AND
THAT'S WHAT I'M DRIVING FOR IN
THIS.
AND I RECOGNIZE THIS IS A LOT OF
WORK. I RECOGNIZE THIS COULD BE
A BIT
OF A CHALLENGE.
BUT THEN AGAIN, YOU KNOW,
WE'RE THE
ONES WHO ARE THE DRIVERS IN
TERMS OF KCRHA'S BUDGET AND THE
SOCIAL HOUSING IS COMING FROM
AND SO AS
THE SEATTLE CITY
GOVERNMENT, WHICH IS PART OF THE
DISCUSSION AHEAD
OF THE, YOU KNOW, THE
REFERENDUM, THE VOTE, WE
ALSO HAVE THAT NEED AND
RESPONSIBILITY TO UNDERSTAND.
SO, THAT'S -- I'M SAYING
THIS PARTLY -- I'VE BEEN
SAYING THIS TO DIFFERENT
AUDIENCES, BUT
I'M SAYING THIS OUT LOUD FOR
THE
MORE GENERAL PUBLIC AS OUR
OUTSTANDING AWARD-
WINNING SEATTLE CHANNEL IS GOING
TO BE
BROADCASTING, JUST SO THAT WE
HAVE THAT. AND JUST SO I WOULD
BE CLEAR
IN TERMS OF WHAT I'VE BEEN
LOOKING FOR RELATED TO THE
S.H.I.P. OR
JUST GO TO SEATTLE HOUSING
PLAN IF THAT MAKES
IT BETTER. WITH THAT FINISHED, I
WOULD LOVE
TO HEAR ANY RESPONSE TO THAT.
THANK YOU.
>> JUST TO REFER TO THE
EARLIER MESSAGE THIS MORNING, WE
DO HAVE
THE FOUNDATIONAL SEATTLE
HOUSING LEVY INVESTMENT PLAN,
WHICH DOES
PREDICT AND
MODEL PRODUCTION GOALS THROUGH
THE PERIOD OF
TIME, 2030, THAT
YOU'RE INTERESTED IN.
AT THE TIME OF THE
PASSAGE OF THE SEATTLE HOUSING
LEVY,
WE ALSO LOOKED AT ALL OF OUR
OTHER FUND SOURCES AND
PROJECTED PRODUCTION GOALS.
WE WILL BE UPDATING THOSE
FOR YOU WITH THIS UPDATED PLAN,
AND
LOOKING AT A BROADER SCOPE AFTER
SPEAKING WITH YOUR STAFF
AND WORKING WITH COUNCIL CENTRAL
STAFF, HEARING FROM YOU ON THE
DAIS, AND WE WILL TRY OUR
BEST TO BRING FORWARD A PLAN
THAT SHOWS HOW OUR HOUSING GOALS
WILL
BE ACCOMPLISHED OVER THE NEXT
SEVERAL YEARS.
>> WELL, THANK
YOU. AND I APPRECIATE THAT.
AND I WOULD THINK THAT THE OTHER
TWO ENTITIES SHOULD BE
PARTNERING.
I MEAN, THEY SHOULDN'T BE
STAND-ALONES.
BY THE WAY, CAN I ASK ONE
LAST QUESTION, COUNCIL
PRESIDENT?
>> YES.
>> SINCE I ASKED THE PREVIOUS
ONE, YOU KNOW, AND
AGAIN, THIS IS A BIT OF AN
UNCOMFORTABLE PROCESS AND SO
FORTH, ASKING
SOME QUESTIONS AND THE LIKE.
WHAT LESSONS LEARNED DO YOU
HAVE GOING THROUGH THIS,
REVIEWING
WHAT WE'VE BEEN REVIEWING AS
PART OF THIS PROCESS, THE
BUDGET PIECES, THE HOUSING PLAN
PIECES AND SO FORTH?
IS THERE ANYTHING THAT'S
COME OUT OF THIS IN TERMS OF
LESSONS
LEARNED, HEY, WE CAN MAYBE
DO THIS BETTER?
PARTICULARLY WITH THE
COUNCILMEMBER REAGAN DUNN AND
THE -- WHAT'S HAPPENED AT
THE COUNTY LEVEL, MAKING SURE
THAT
Ts ARE CROSSED AND Is ARE
DOTTED.
ANY
ANY LESSONS LEARNED?
>> I'M CURIOUS TO HEAR
WHAT KELLY HAS TO SAY, BUT I
THINK
FOR ME, THE NEED
FOR TECHNOLOGICAL TOOLS FOR US
IS REALLY, REALLY IMPORTANT TO
BE
ABLE TO BOTH KEEP TRACK --
BECAUSE COUNCILMEMBER
KETTLE, I DON'T KNOW IF YOU'VE
HEARD
ME CRY EVER
ABOUT THE MICROSOFT ACCESS
DATABASE THAT WE HAVE.
THAT WE ARE CONVERTING OVER
TO AN ACTUAL DATABASEDATABASE A
SYSTEM THAT PEOPLE IN THE YEAR
2025
ACTUALLY KNOW ABOUT AND
IS SUPPORTED.
SO, THAT'S GREAT.
I THINK THE DOLLARS GOING
OUT ARE REALLY, REALLY
IMPORTANT, AND I HAVE TO SAY
PART OF IT, I
THINK, IS JUST THE STORY THAT WE
TELL ABOUT HOW
OUR INVESTMENTS ARE GOING OUT.
AND SO IT'S BETTER UNDERSTOOD.
I THINK HAVING SOME LEVEL OF
SCRUTINY IS REALLY GREAT.
WORKING WITH OTHER CITY
DEPARTMENTS IN TRYING TO
TIGHTEN UP THE TIME IT TAKES FOR
THE HOUSING DELIVERY PROCESS,
FOR
IT TO BE DELIVERED, AS WELL AS
WHEN IT'S OPERATIONALIZED IS
REALLY, REALLY IMPORTANT AS
WELL.
WE JUST RECENTLY DID A STUDY
ON THE PSH PILOT DURING
THE PANDEMIC.
WE DID A -- THERE WERE A COUPLE
OF THINGS THAT THE OFFICE OF
HOUSING TRIED OUT BECAUSE
YOU TAKE ADVANTAGE OF THE
CRISIS,
AND THERE WERE SOME INTERESTING
FINDINGS OUT OF
THAT AND HOW COULD WE IMPROVE?
I THINK THE BASIC MODEL OF
CONSTRUCTION -- OF HOUSING
CONSTRUCTION REALLY HASN'T
CHANGED THAT MUCH, BUT WHAT
IS IT THAT WE CAN DO TO MAKE IT
BETTER? WE SHOULD BE AN
ITERATIVE
ORGANIZATION.
SO, EVEN THOUGH SOME OF THE
SLIDES, SAME SLIDES, SAME
GENERAL PROCESS, WHAT IS IT THAT
WE NEED TO DO TO TWEAK IT
TO MAKE THE OUTCOMES BETTER?
AND WE HAVE TO BE CLEAR OF
THE
OUTCOMES. WE PRODUCE AN OUTPUT.
BUT WHAT IS THE OUTCOME THAT
WE'RE STRIVING FOR?
>> I WAS GOING TO SAY
THE WHOLE HOUSING PLAN, FOR MY
COLLEAGUE
HERE, BECAUSE WHAT YOU'RE
HEARING HERE, OVER AND OVER
AGAIN WITH THIS NEW COUNCIL,
IS A CONCERN THAT IT APPEARS
THAT WE'RE STOCKPILING HOUSING
FUNDS DURING A HOUSING CRISIS.
AND STOCKPILING IS NOT TOO
ASCRIBE ANY PURPOSEFUL NOT
SPENDING OF MONEY BUT CLEARLY IF
WE HAVE THESE
QUESTIONS AND THEY'RE NOT GOING
AWAY, IT IS
A CALL FOR PERHAPS A DATABASE
THAT TRACKS EVERY SINGLE
AWARD, WHAT IS HAPPENING WITH
THAT,
WITH THAT AWARD, AND WHEN IT'S
FINISHED, HOW ARE WE MONITORING
THE PERFORMANCE OF THAT AWARD?
ARE PEOPLE -- WHAT ARE THE
VACANCY RATES?
WHAT ARE THE IMPACTS TO
NEIGHBORHOODS, ET CETERA.
SO, WE'RE TALKING ABOUT REALLY
A BIG- PICTURE UNDERSTANDING OF
WHAT'S GOING ON WITH OUROUR
DOLLARS, BECAUSE I'LL NOTE THAT
ON -- AND I AM CLOSING ON
ATTACHMENT A OF THE SLIDE,
WHICH DETAILS, YOU KNOW, PER
FUND
CARRYFORWARDS, THE LOW- INCOME
HOUSING FUND HAS ABOUT,
WELL, HUNDREDS OF MILLIONS
OF DOLLARS EACH YEAR THAT'S
BUDGETED
BUT
NOT SPENT. AND SO, THESE
THINGS ARE THE KINDS OF THINGS
THAT WE
ARE CONSTANTLY -- THAT CAUSE ME
TO HAVE QUESTIONS.
I SEE THAT WE HAVE ABOUT,
IN COMMITMENTS FOR
STABILIZATION, $28 MILLION ON
PAGE 8 OF HERE.
THAT I BELIEVE IS IN THREE
BUCKETS, PRODUCTION,
PRESERVATION, AND THEN
ACCOUNTING FOR ARREARS, RENTAL
ARREARS, THAT OUR
PARTNERS AREN'T ABLE TO COLLECT
FROM EXISTING TENANTS, SO WHAT
IS THAT -- HOW IS THAT --
I WOULD LIKE TO KNOW MORE
PRECISELY, IN THE LINE ITEM
COMMITMENTS FOR
STABILIZATION, $28
MILLION, HOW IS THAT ALLOCATED
FOR
THOSE THREE DIFFERENT BUCKETS?
AND I HEARD THAT FROM
HSD DIRECTOR THAT'S KIND OF
WHAT
THOSE -- THAT BIG BUCKET IS FOR.
SO, I BELIEVE WHAT WE'RE TRYING
TO SAY IS THAT WE, AS A COUNCIL,
NEED TO HAVE A
BETTER UNDERSTANDING AND
CONFIDENCE THAT THE MONEY THAT
IS
ALLOCATED IS BEING SPENT AND WE
CAN GET
TO THE 40 PROJECTS THAT I HAVE
BEEN
TOLD HAVE BEEN AWARDED FOR
YEARS, BUT YET AREN'T UP AND
RUNNING, AND WHAT ARE
THE PROBLEMS WITH THAT?
IS THERE A RELATIONSHIP WITH
PERMITTING, ET CETERA?
THIS IS AN EXTREMELY
DIFFICULT TIME TO
GET FINANCING. WE'RE COMING OFF
A VERY
HIGH INFLATIONARY PERIOD.
AND OUR PARTNERS, THEY'RE
FINDING IT HARDER AND HARDER
TO GET FINANCING BECAUSE
IT'S HARDER AND HARDER FOR THEM
TO
COLLECT ON THE UNITS THAT THEY
HAVE RIGHT NOW.
AND THEN WE READ THE
STORIES ABOUT VACANCIES IN OUR
EXISTING
BUILDINGS. I WOULD LIKE TO KNOW,
FOR
EXAMPLE, WHEN THE LATEST
REPORT CAME OUT THAT THERE WERE
-- THAT
SEVERAL -- WELL, SOME OF
OUR HOUSING PARTNERS ARE
SELLING ASSETS RIGHT NOW.
HAS IT EVER BEEN CONSIDERED
THAT THE OFFICE OF HOUSING WOULD
PERHAPS ASSUME THOSE ASSETS
INSTEAD OF LETTING THEM GO
ON TO THE PRIVATE MARKET?
THESE ARE QUESTIONS
THAT I THINK ARE INTERESTING TO
CONSIDER.
BUT IN GENERAL, I JUST HAVE
SOME CLOSING QUESTIONS THAT I
DO WANT TO GET ON THE RECORD SO
THAT MAYBE WE
CAN HAVE THE CONVERSATIONS
OFFLINE.
IT'S SIMPLY, ARE THERE ANY --
AND THIS IS IN THE CONTEXT
OF THE KING COUNTY'S RECENTLY
RELEASED AUDIT OF DCHS GRANTS.
WHAT STEPS CAN THE CITY TAKE TO
ENSURE COMPLIANCE WITH
GRANT CONDITIONS AND HAVE WE
IMPLEMENTED A SIMILAR AUDIT TO
ENSURE THAT WE'RE
GETTING RESULTS WE POLICYMAKERS
EXPECT? SINCE 2021, WHAT HAS
BEEN
THETHE TIME FROM FUNDING
AWARDED TO FUNDING RELEASED?
WHAT ABOUT PRE-
PANDEMIC FUNDING IN COMPARISON?
WHEN THE CITY COMMITS FUNDING TO
COMMUNITY PARTNERS, IS
THERE AN AGREEMENT OR
INDICATION REGARDING THE TIME
FRAME
FOR WHICH THE FUNDS WILL LEAVE
THE CITY ACCOUNTS?
WOULD REQUIRING HELP --
WOULD REQUIRING THAT HELP REDUCE
UNDERSPEND AND GET FUNDS OUT THE
DOOR MORE QUICKLY?
AGAIN, WHAT CAN WE DO TO
HELP OUR PARTNERS BRING UP THESE
UNITS -- BRING THESE
UNITS ONLINE FASTER?
AND THEN, YOU KNOW, WHAT
ARE SOME OF THE
FUNDS -- WHAT ARE SOME EXAMPLES
OF NDS THAT
HAVE AUTO CARRYFORWARD AUTHORITY
OVER
THE -- WELL, THAT'S A
SEPARATE
QUESTION. NEVER MIND.
THAT GETS INTO ADMINISTRATIVE.
AND THEN FINALLY, WHAT WOULD IT
LOOK LIKE IF THE -- IF O.H.
AND OTHER DEPARTMENTS CARRYING
LARGE FUND BALANCES CREATED
ANNUAL SIX- YEAR CAPITAL
SPENDING PLAN TO CLARIFY THE USE
OF THOSE
FUNDS?
AND I THINK THAT'S SOMETHING
THAT YOU HAVE BROUGHT UP BEFORE.
SO, TO BE CONTINUED, I WOULD
SAY. BUT THANK YOU VERY MUCH
FOR SPENDING THE TIME AND BEING
PATIENT WITH US, AND
I UNDERSTAND THAT YOU HAVE
ANOTHER QUESTION, AND
COUNCILMEMBER
RIVERA, I DON'T KNOW
IF I CAPTURED THE POINT YOU
WANTED
TO MAKE SO I WILL LEAVE THE
LAST COMMENTS TO COUNCILMEMBER
KETTLE
AND
THEN COUNCILMEMBER RIVERA.
>> THANK YOU.
AND COUNCIL PRESIDENT REMINDED
ME, AS PART OF THIS KIND
OF SEATTLE HOUSING PLAN, THE
POINT
ABOUT BUILDING NEW
VERSUS MAINTAINING -- AND I
KNOW IT WAS IN THE SLIDE, THE
MAINTENANCE BUDGET -- THAT HAS
TO BE PART
OF
IT. AGAIN, LOOKING AT THINGS
FROM
A PUBLIC SAFETY PERSPECTIVE,
NOT REPORTED AT ALL, BUT 15 TO
40% OF THE FOLKS THAT MAY BE
AT THIRD PIKE AND PINE
HAVE HOUSING.
AT OTHER LOCATIONS, I'VE SEEN
THIS, THERE'S DAY TENTS.
THAT'S NEVER REPORTED ON.
BUT THERE'S THAT PIECE TOO.
SO, THESE COUNTS -- AND PART OF
IT IS THEY DO HAVE HOUSING
BUT THERE'S A MISMATCH FOR
DIFFERENT REASONS, WHICH I
WON'T GO INTO
NOW, BUT
IT'S REAL. AND -- BUT PART OF
THAT IS,
AND I'VE BEEN TO AN AREA WHERE
THERE'S A PUBLIC SAFETY
CHALLENGE, AND THERE'S A
HOUSING LOCATION, YOU KNOW,
PUBLIC
HOUSING LOCATION, AND THERE'S AN
ACTIVE RAT'S NEST AROUND IT.
AND SO, SOME ON THE
PUBLIC SAFETY SIDE, IF YOU HAVE
A
PROBLEMATIC HOUSING SITUATION
BECAUSE THERE'S A RATS' NEST
OR
OTHER MAINTENANCE ISSUES,
THAT'S PART OF THE DYNAMIC THAT
WE
SEE ON THE PUBLIC
SAFETY SIDE IN TERMS OF WHAT'S
HAPPENING ON OUR
STREETS.
AND SO, THAT MAIN QUESTION
BETWEEN BUILDING NEW
AND MAINTAINING OLD HAS GOT TO
BE
ANOTHER MAJOR PIECE OF
WHATEVER SEATTLE HOUSING PLAN.
I'M DROPPING THE INVESTMENT
NOW, BECAUSE I WANT TO MAKE SURE
THAT WE
CAPTURE EVERYTHING. AND SO, I
MEANT TO ADD THAT
BEFORE, AND COUNCIL PRESIDENT
REMINDED ME OF THAT.
SO, THANK YOU.
THANK YOU, COUNCIL PRESIDENT.
>> THANK YOU, COUNCIL PRESIDENT.
I AGREE WITH YOU,
COUNCILMEMBER KETTLE.
WE NEED TO HAVE AN OVERALL
PICTURE, BECAUSE EVEN THOUGH
WE MAY NOT BE OVERSIGHT OF THE
SOCIAL HOUSING PDA, THOSE ARE
TAX DOLLARS THAT ARE GOING
INTO FUNDING HOUSING, AND ALSO,
JUST AS A CITY, WE NEED -- WE
SHOULD BE KNOWING OR WE SHOULD
KNOW
WHAT OTHER -- THE
OTHER ORGANIZATIONS LIKE THE
PDA AND THE KING COUNTY
HOUSING AUTHORITY ARE DOING AS
PART OF
THIS OVERALL PLAN.
WE SHOULD JUST BE
COORDINATED IN OUR APPROACH TO
DOING THIS.
AND THE THING I WAS GOING TO SAY
EARLIER, YOU JUST
MENTIONED, COUNCILMEMBER KETTLE,
WHICH
IS THE PRESERVATION ON THE
MAINTENANCE SIDE IS REALLY
IMPORTANT.
AND I WOULD LIKE TO KNOW,
PRIOR TO THESE 40 PROJECTS THAT
ARE ON THE DOCKET NOW, THE
PROJECTS THAT WE HAVE ALREADY
COMPLETED, I'D
LOVE TO KNOW WHAT THOSE ARE, HOW
MANY UNITS, WHAT KIND OF
UNITS, AND THEN HOW YOU GO ABOUT
KEEPING TRACK OF THOSE
PROJECTS TO MAKE SURE THAT THEY
DON'T
HAVE SOME ISSUES THAT WE
COULD BE PERHAPS HELPING WITH
AND THEN
AVOIDING THOSE GOING, YOU KNOW,
HAVING TO CLOSE, IF YOU
WILL, AND I KNOW WHEN WE HAD
THIS CONVERSATION LAST YEAR, I
UNDERSTOOD THAT, YOU KNOW, O.H.
IS FOCUSING ON
THE FUNDING TO BUILD THE
PROJECTS.
AND YOU DON'T NECESSARILY HAVE
OVERSIGHT OF THE PROJECTS.
BUT I DO THINK THAT WE NEED TO
CREATE AN EXPECTATION WITH THE
PROJECTS AND THE NONPROFITS
WE DO FUND THAT WE ARE GOING
TO STAY CONNECTED BECAUSE WE
NEED TO GUARD
OUR INVESTMENT -- GUARD IS MAYBE
NOT THE BEST WORD.
BUT THE POINT IS THAT WE NEED
TO MAKE SURE THAT WE KNOW
WHAT'S
HAPPENING SO THEN ON THE
BACK END, A FEW YEARS FROM NOW,
WE DON'T LOSE
THOSE UNITS. AND SO, WE NEED TO
BE ABLE TO
REQUIRE IN OUR CONTRACTS WITH
OUR NONPROFIT
PARTNERS INFORMATION ABOUT HOW
THINGS
ARE GOING LONG-TERM SO WE DON'T
GET
TO A POSITION WHERE THEN
IT'S TOO LATE -- THEY
NEEDED SOMETHING AND NOW IT'S
TOO LATE. AND THAT INITIAL
FUNDING THAT
WE GAVE IS NOW NOT GOING TO, YOU
KNOW, WE'RE GOING TO LOSE THOSE
UNITS, WHICH WERE
REALLY
CRITICAL, OBVIOUSLY, RIGHT NOW
IN THIS HOUSING MARKET.
SO, IT'S NOT -- OR
HOUSING CRISIS, EXCUSE ME, SO
IT'S NOT
JUST BUILDING.
IT'S HOW
ARE WE PRESERVING WHAT WE HAVE
BUILT?
UNDERSTANDING THAT WE ARE
NOT THAT NONPROFIT WHO BUILT IT,
BUT WE ARE IN RELATIONSHIP
WITH THEM.
IT DOESN'T STOP WHEN WE, YOU
KNOW, THE FINANCIAL PIECE IS
OVER.
BECAUSE AS PART OF THIS
BROADER LANDSCAPE AT THE CITY.
>> YES, THAT IS CORRECT,
ABSOLUTELY.
WE HAVE A TEAM OF FOLKS WHO
EXIST TO MONITOR OUR ASSETS,
AND OVERSEE THOSE CONTRACTS
LONG-TERM. AND MAKE SURE THAT
THE
LOAN TERMS ARE BEING
FOLLOWED FOR 55 YEARS AND MORE.
WHENEVER POSSIBLE, AT THE END OF
THE TERM, WE TRY TO EXTEND OR
REINVEST IN PROJECTS TO
KEEP THEM GOING.
MANY OF THE PROJECTS THAT
WERE MENTIONED IN THE SEATTLE
TIMES ARTICLE WERE NOT CITY-
FUNDED
PROJECTS.
THEY ARE PART OF OUR PARTNERS'
PORTFOLIOS, BUT THEY ARE NOT
CITY-FUNDED PROJECTS.
THIS IS PART OF
THE COMPLICATION.
FUNDING IS ADMINISTERED BY
ALL DIFFERENT TYPES OF BODIES
AND DIFFERENT HOUSING HAS
DIFFERENT FUNDING SOURCES.
WE REALLY TRY EVERYTHING WE
CAN TO PRESERVE THE HOUSING THAT
WE HAVE.
WE'RE
WORKING REALLY HARD ON THAT, AND
EVEN MORE SO
NOW FOCUSING ON HOW WE BUILD UP
THE
SECTOR THAT WE HAVE AND SUPPORT
THE UNITS THAT WE HAVE, WHICH
IS APPROXIMATELY 300
PROJECTS,
23,000 APARTMENTS THAT ARE
OPERATING TODAY.
>> WELL, THANK YOU, KELLY,
I'M GLAD YOU BROUGHT THAT
UP, BECAUSE I THINK THIS IS PART
OF
THE POINT OF MY COLLEAGUE,
THE WHOLE HOUSING PLAN OR AT
LEAST
KNOWING WHAT IS ALSO HAPPENING
IN THE HOUSING SPACE SO
WHEN THINGS ARE BEING REPORTED,
WE KNOW WHAT'S WHAT.
AND I KNOW THAT THAT MEANS THAT
IT PUTS AN ONUS ON THE CITY TO
TRACK SOME THINGS THAT
MAYBE AREN'T OUR INVESTMENT,
BUT I THINK IT IS PRUDENT TO DO
SO IN
TERMS OF WHAT WE'RE PUTTING INTO
THE MARKET AND WHAT OTHERS
ARE AS THAT WHOLE PICTURE
BECAUSE THE FOLKS THAT ARE IN
THOSE UNITS ARE ALL CITY
RESIDENTS, AND IT'S JUST GOOD
TO STAY,
LIKE, RIGHT HAND, LEFT HAND
FOCUSED AS A CITY,
NOT NECESSARILY -- WHAT I'M
TRYING TO SAY IS WE SHOULDN'T
JUST FOCUS ON THE UNITS THAT
WE'RE FUNDING AND THEN NOT LOOK
AT
THE BIG PICTURE, BECAUSE WHAT
WE'RE
DOING WILL HAVE AN IMPACT ON
THE BIG PICTURE AND VICE
VERSA.
>> THAT'S RIGHT.
>> AND THEN WHEN THOSE TYPES
OF ARTICLES COME OUT, AND YOU
JUST SAID THOSE
WEREN'T OUR PROJECTS, NO ONE
KNOWS THAT.
AND WE DIDN'T -- I DIDN'T KNOW
THAT.
SO, IT'S IMPORTANT
TO REALLY HAVE -- AND THEN TO
YOUR POINT,
DIRECTOR, ABOUT THE TECHNOLOGY,
WE DO NEED TO MAKE BETTER USE
OF TECHNOLOGY TO HELP US TRACK
ALL THIS -- ALL OF THESE ITEMS
BETTER. SO, THANK YOU, CHAIR.
>> LOOKS LIKE YOU --
DIRECTOR WANTED TO SAY --
OKAY. SO, IN CLOSING, I MEAN, WE
DO HAVE TO MOVE ON.
WHAT YOU'RE HEARING HERE IS
INTENSE INTEREST, AND WE
ARE ON THE FRONTFRONT OF, WELL,
WE
DO THE WORK OF THE PEOPLE AND
THEN
WE HEAR DISSATISFACTION
AND QUESTIONS FROM OUR
CONSTITUENTS, AND SO THAT IS WHY
WE'RE PAYING
SUCH CLOSE ATTENTION TO THIS,
AND IT PROBABLY WILL
CONTINUE THAT WAY.
SO, WHATEVER WE CAN DO TO
GET INFORMATION IN A FORM
THAT'S EASILY DIGESTIBLE AND
THAT
CANCAN US CONFIDENCE THAT OUR
RESOURCES ARE BEING SPENT IN
THE -- WITH THE INTENT THAT THEY
WERE ALLOCATED, THAT WOULD BE
GREAT.
I'M HEARING,
IN GENERAL, THAT THE OFFICE OF
HOUSING AND
CBO
THINK÷÷ THAT THINGS ARE GOING
PRETTY WELL, SO WE'RE JUST --
ME, PERSONALLY, I'M
JUST GOING TO HAVE TO TAKE YOUR
WORD FOR
THAT.
WHEN I SEE THAT THE
UNDERSPEND, WHEN IT COMES TO THE
2018 ON
THE MEMO SAYS 2018 TO '23, THE
NET
UNDERSPEND FOR THE GENERAL
FUND AVERAGED 2.1% PER YEAR
BUT THEN LOWER ON THE MEMO, IT
SAYS,
ACTUALLY, THE REVISED
BUDGET VERSUS ACTUALS, WHICH IS
THE INITIAL UNDERSPEND EXCLUDING
THE IMPACT OF
CARRYFORWARDS, AVERAGED 9.9%.
THAT GIVES -- THAT IS -- THAT
GIVES ME PAUSE, AND IT
ALSO COULD BE WHEN OTHER PEOPLE
ARE
LOOKING OVER THESE
DOCUMENTS, GIVES PEOPLE -- MAKES
PEOPLE QUESTION WHAT ARE THE
METRICS
AND WHAT ARE THE STANDARDS
THAT
WE'RE TRYING TO ACHIEVE IN OUR
BUDGETING PRACTICES OVERALL?
SO, IN ANY CASE, MAYBE
WE'LL TALK ABOUT THIS MORE
DURING
BUDGET SEASON.
BUT I REALLY FEEL THAT THIS
WAS AN IMPORTANT CONVERSATION
TO HAVE GOING INTO THIS SO THAT
WE
CAN BE MORE
STREAMLINED IN OUR QUESTIONS
GOING FORWARD.
>> WOULD YOU LIKE TO HAVE A
CLOSING -- OKAY.
FOR THE LISTENING PUBLIC, ALL
THE DOCUMENTS WE REFERENCED WERE
LINKED TO THE
AGENDA.
WOULD YOU PLEASE READ ITEM 2
INTO THE RECORD?
I ORDINANCE RELATED TO
UPDATING THE STRUCTURE AND THE
PROCESS OF THE
OFFICE OF THE CITY AUDITOR
AMENDING SECTIONS.
>> THANK YOU VERY MUCH.
WELCOME, EVERYBODY.
THANK YOU.
WE'LL GET THE SLIDES UP IN ONE
MOMENT.
>> I WILL JUST BASICALLY
SAY THAT THIS IS A VERY
IMPORTANT DISCUSSION TO HAVE
RIGHT NOW BECAUSE AS I'VE NOTED
IN
THE PAST, THE OFFICE OF
THE CITY AUDITOR IS OUR
ACCOUNTABILITY ARM AND WE WANT
TO MAKE
SURE WE ARE SETTING YOU UP FOR
SUCCESS AND IF THERE'S ANYTHING
THAT WE CAN DO, LEGISLATIVELY,
TO
HELP, WE ARE -- WE STAND READY
AND
THAT'S WHAT THIS LEGISLATION IS
ABOUT.
>> I AM ARUSHI THAKARLAL.
>> RITA
MOORE.
>> KARINA BULL, COUNCIL CENTRAL
STAFF.
>> WE ARE HERE TO DISCUSS
COUNCIL BILL 121072.
WE HAVE A FEW PREPARED REMARKS.
>> WE'LL PROBABLYPROBABLY HAVE
TO
WITHIN 15 MINUTES BECAUSE WE
DO HAVE A HARD STOP FOR ONE OF
THE ITEMS LATER AT 5:00.
GO AHEAD.
>> WE HAVE A SLIDE SHOW. I
DON'T KNOW IF I HAVE TO --
>> JUST AS A MATTER OF
BACKGROUND FOR MEMBERS OF THE
PUBLIC AND
A REFRESHER TO THE COMMITTEE
THAT THE OFFICE OF
CITY AUDITOR WAS
CREATED IN 1991 BY A VOTER-
APPROVED AMENDMENT TO
THE SEATTLE CITY CHARTER.
IT WAS CODIFIED INTO THE
SEATTLE MUNICIPAL CODE AS 3. 40
IN
1992
AND WE HAVE BEEN OPERATIONAL
SINCE 1993.
SINCE OUR
ESTABLISHMENT OVER 33 YEARS AGO,
MUCH OF
THE CODE HAS REMAINED UNCHANGED
OR
NOT REVIEWED IN ITS
ENTIRETY. DESPITE THE GROWTH
AND EXPERTISE, SCOPE, AND
OPERATIONS
IN THE OFFICE.
CURRENTLY, THE CODE
LACKS CLARITY OR DIRECTION
ON GOVERNMENT AUDITING
STANDARDS,
QUALIFICATIONS FOR THE
POSITION OF CITY AUDITOR,
EXTERNAL PEER
REVIEW REQUIREMENTS AND
SUBPOENA POWER.
UPDATING OUR CODE WILL
ADDRESS SOME OF THE CHALLENGES
OCA
HAS FACED OVER THE LAST 30 YEARS
AND ENSURE THAT WE ARE ALIGNED
WITH
NATIONAL BEST PRACTICES IN
GOVERNMENT PERFORMANCE AUDITING.
OUR OFFICE OF CITY AUDITOR, OR
OCA, IS MORE THAN JUST
A
DIVISION.
IT'S PART OF A LARGER AND
RECOGNIZED PROFESSION OF
GOVERNMENT PERFORMANCE AUDITING
AND THAT MEANS THAT WE
FOLLOW CERTAIN STANDARDS, CALLED
THE GENERALLY ACCEPTED
GOVERNMENT
AUDITING STANDARDS, OR YELLOW
BOOK,
ISSUED BY THE GOVERNMENT
ACCOUNTABILITY OFFICE.
THESE GUIDELINES
ENSURE THAT OUR WORK IS
INDEPENDENT,
EVIDENCE-BASED, AND HIGH
QUALITY.
WE'RE ALSO ACTIVE MEMBERS OF
THE
ASSOCIATION OF LOCAL
GOVERNMENT AUDITORS, WHICH
CONNECTS US
TO OVER 300 AUDIT SHOPS IN
CITIES,
COUNTIES, AND TRIBAL GOVERNMENTS
ACROSS NORTH AMERICA.
ALGA MEMBERSHIP SUPPORTS
PROFESSIONAL GROWTH, EXTERNAL
ACCOUNTABILITY THROUGH PEER
REVIEW AND ADHERENCE TO EVOLVING
STANDARDS. OUR COUNCIL BILL
121072 HAS
A FEW GOALS, TO EMBED
AUDITING STANDARDS IN OUR
CODE, ENSURING CONSISTENCY
BEYOND INDIVIDUAL
LEADERSHIP.
TO STRENGTHEN OCA'S
INDEPENDENCE SO OUR WORK REMAINS
OBJECTIVE AND
NONPARTISAN. AND TO SUSTAIN A
CULTURE
OF HIGH STANDARDS AND
ACCOUNTABILITY
WITHIN THE OFFICE OF CITY
AUDITOR AND THE CITY AT LARGE.
AND LAST, IT'S PARTIALLY TO
HONOR THE CONTRIBUTIONS OF CITY
AUDITOR DAVID JONES.
AS YOU KNOW, CITY AUDITOR
DAVID JONES IS RETIRING AT THE
END OF
DECEMBER AFTER 29 YEARS WITH THE
OFFICE OF CITY AUDITOR.
16 OF THOSE SERVING AS THE
APPOINTED CITY AUDITOR.
UNDER HIS LEADERSHIP, OUR
OFFICE HAS PASSED EVERY
EXTERNAL PEER REVIEW SINCE HE
MADE THEM A
ROUTINE IN 2011.
HE'S CHAMPIONED PROFESSIONAL
DEVELOPMENT, INDEPENDENCE IN
AUDITING, AND A NATIONAL
COLLABORATION, AMONGST OTHER
AUDITORS.
IN 2024, DAVID JONES RECEIVED
ALGA'S LIFETIME ACHIEVEMENT
AWARD, A REFLECTION ON HIS
IMPACT ON BOTH THE CITY AND THE
FIELD OF PERFORMANCE AUDITING.
AND SO, AUDITOR DAVID JONES
ISN'T HERE TODAY, WHICH
ALLOWS ME TO BRAG ON HIS BEHALF,
AND
IF HE WERE HERE, I KNOW
HE WOULD WANT ME TO CREDIT OCA
STAFF AND THE STANDARDS THEY
UPHOLD, WHICH
HAVE EARNED OUR OFFICE NINE ALGA
AWARDS OF EXCELLENCE UNDER HIS
LEADERSHIP.
THIS LEGISLATION BOTH
HONORS
DAVID'S CONTRIBUTIONS TO GROWING
THE OFFICE OF CITY AUDITOR AND
BUILDS ON THE BEST PRACTICES IN
OUR FIELD.
IN DEVELOPING OUR LEGISLATION,
WE TOOK A COMPREHENSIVE
APPROACH TO ENSURE THAT IT
REFLECTS THE
BEST PRACTICES IN
PERFORMANCE AUDITING.
SO, WE CONSULTED WITH
THE ASSOCIATION OF LOCAL
GOVERNMENT
AUDITORS, THEIR
MODEL LEGISLATION GUIDELINES.
WE REVIEWED THE KING
COUNTY AUDITORS OFFICE CODE AS
THEY'RE
SIMILAR IN
ORGANIZATIONAL STRUCTURE.
AND WE REVIEWED THE CITY OF
SEATTLE, OTHER
DEPARTMENTS' CODES, TO MAINTAIN
CONSISTENCY
IN SCOPE AND AUTHORITY.
AND LASTLY, THE OFFICE OF
CITY AUDITOR STAFF REVIEWED
THE LEGISLATION TO CONFIRM
ALIGNMENT
WITH YELLOW BOOK STANDARDS AND
OUR CURRENT PRACTICES.
AND SO, WITH THIS BACKGROUND
CONTEXT, I WILL NOW TURN IT
OVER TO DEPUTY CITY AUDITOR
ARUSHI
THAKORLAL.
>> BEFORE WE GOT TOO IN
THE WEEDS WITH THAT DETAILED
CHANGE, WE WANTED TO PROVIDE
THAT BACKGROUND SO YOU WOULD
HAVE
AN UNDERSTANDING OF WHY WE'RE
EVEN
HERE TODAY MAKING THESE
PROPOSALS.
WE WANTED TO PRESENTED
THIS CROSSWALK THAT COMPARES
THE CONTENT OF THE CURRENT CODE
WITH
WHAT WE ARE PROPOSING.
THIS IS VERY DENSE.
THERE'S LOTS OF TEXT AND
YOU DON'T NEED TO READ THIS IN
GREAT DETAIL.
I'LL BE WALKING THROUGH SOME OF
THESE CHANGES OVER THE NEXT FEW
SLIDES, BUT JUST WANTED TO GIVE
REFERENCE THAT ALL
THE INFORMATION CURRENTLY IN THE
CODE HAS A PLACE IN OUR
PROPOSALS. A COPY OF THIS
CROSSWALK
IS ON THE LAST PAGE OF THE MEMO
WE
SHARED WITH YOU ALL LAST WEEK.
WE GO INTO LOTS OF DETAIL IN
THE MEMO BECAUSE I DIDN'T
WANT ANYTHING TO BE A SURPRISE
TO
YOU AS YOU CONSIDER THE
LEGISLATION, BUT FOR THE
PURPOSES
OF PRESENTATION, I'M GOING TO
WALK
THROUGH OUR CHANGES
IN CATEGORIES AS RITA
DESCRIBED EARLIER.
OUR FIRST CATEGORY OF CHANGES
RELATES TO STRENGTHENING THE
INDEPENDENCE OF OUR OFFICE
AND CODIFYING THE PROFESSIONAL
STANDARDS THAT WE FOLLOW TO
MAKE SURE THAT WE ARE HELD TO
THESE STANDARDS NO MATTER WHO
SERVES
IN THE POSITION OF CITY AUDITOR.
IN SECTION 010, WE ESTABLISH
OCA AS INDEPENDENT, NONPARTISAN,
AND
OBJECTIVE.
THIS
MIGHT SEEM PRETTY
STRAIGHTFORWARD, BUT WE
THINK IT'S KEY TO MAKING SURE
THE PUBLIC CAN CONTINUE TO
TRUST WHAT WE'RE SAYING IN OUR
REPORTS, THAT
WE WON'T BRING ANY POLITICAL
ANGLE OR BRING OUR OWN
PERSONAL OPINIONS.
IT'S GOING TO BE JUST
FACTUAL
INFORMATION. IN SECTION 030, WE
PROPOSE TO
CODIFY THE QUALIFICATIONS AND
THE APPOINTMENT PROCESS FOR
THE CITY AUDITOR.
CURRENTLY, THERE'S
NO INFORMATION IN THE CHAPTER
ABOUT THE QUALIFICATIONS THAT
CANDIDATES
SHOULD HAVE. WE PROPOSE JUSTJUST
STATEMENT THAT STATES A
QUALIFIED CANDIDATE SHOULD HAVE
AT
LEAST FIVE YEARS OF
RELEVANT EXPERIENCE IN
GOVERNMENT
AUDITING, PROGRAM EVALUATION,
OR POLICY ANALYSIS.
AND THIS LANGUAGE WAS
MODELED AFTER OTHER DIRECTOR-
LEVEL
POSITIONS THAT HAVE MINIMUM
QUALIFICATIONS DESCRIBED IN THE
SMC. WE WANTED TO BE CONSISTENT
WITH
OTHER DEPARTMENTS.
IN SECTION 040, WE ARE
PROPOSING TO CODIFY THE AUDITING
STANDARDS
THAT WE ARE FOLLOWING.
AS RITA MENTIONED, THE
GENERALLY ACCEPTED GOVERNMENT
AUDITING
STANDARDS DEVELOPED BY
THE FEDERAL GOVERNMENT, THEY
ARE WELL RESPECTED, WELL
RECOGNIZED
ACROSS THE COUNTRY AND MOST
OFFICES, MOST
GOVERNMENT AUDITING -- AUDIT
PROFESSIONALS
ARE ALREADY FOLLOWING THEM.
THIS WOULD JUST MAKE
EXPLICIT THAT THE SEATTLE --
CITY
OF SEATTLE CONTINUES TO
FOLLOW THEM, NO MATTER WHO
IS SERVING AS CITY AUDITOR.
AND IN SECTION 080, WE ARE
PROPOSING TO CODIFY THE
OFFICE TO RECEIVE SUFFICIENT
RESOURCES TO ENABLE US TO
PERFORM ALL
OF OUR RESPONSIBILITIESRESPONSIB
ILITIES
MEET
OUR MISSION OF INCREASED
TRANSPARENCY TO THE PUBLIC.
AGAIN, WE MODELED THIS
LANGUAGE AFTER OTHER CLAUSES
WITHIN
THE SEATTLE MUNICIPAL CODE
THAT
EXIST FOR OTHER SIMILAR
ACCOUNTABILITY OFFICES.
THE NEXT CATEGORY OF AMENDMENTS
WE ARE PROPOSING PERTAIN TO
THE OFFICE'S POWER AND
PROCESSES.
THERE'S A LOT OF WORK THAT WE
HAVE BEEN DOING OVER THE LAST
30- PLUS YEARS THAT
THE CITY COUNCIL AND THE
MAYOR'S
OFFICE HAVE COME TO EXPECT FROM
US, BUT
SOME OF THESE POWERS
AND PROCESSES ARE NOT CODIFIED,
AND HERE ARE SOME EXAMPLES.
IN SECTION 040, WE ARE
PROPOSING A CLAUSE ABOUT THE
OFFICE'S AUTHORITY TO BE ABLE
TO
ACCESS ALL RECORDS AND TO BE
ABLE TO
MEET OR SPEAK WITH
PERSONNEL FROM ALL CITY- FUNDED
ENTITIES AS IT RELATES TO OUR
AUDIT WORK.
NOW, IN PRACTICE, WE HAVE
GENERALLY BEEN GRANTED ACCESS
TO DOCUMENTS AND PERSONNEL WHEN
REQUESTED.
I THINK THAT IS DUE IN LARGE
PART TO AUDITOR
JONES' COLLABORATION AND HIS
WORK
WITH OTHER DEPARTMENTS TO BE
ABLE TO GET ACCESS, AND WE ARE
GRATEFUL
FOR THEIR COLLABORATION
IN HELPING US MEET OUR MISSION.
BUT THERE HAVE BEEN INSTANCES IN
OUR PAST WHERE THAT AUTHORITY
OF ACCESS HAS BEEN BROUGHT
INTO
QUESTION. SO, THAT'S WHY WE ARE
PROPOSING TO MAKE THAT EXPLICIT
IN THESE
CHANGES.
ADDITIONALLY, THE ONE NEW
AUTHORITY THAT WE ARE
PROPOSING FOR OUR OFFICE IS FOR
US TO
BE ABLE TO
ISSUE SUBPOENAS TO BE ABLE TO
COMPEL ACCESS.
WITH CITY COUNCIL APPROVAL.
THIS IS NOT SOMETHING WE HOPE TO
USE OFTEN OR PLAN TO USE OFTEN.
WE HAVE
MET WITH OTHER JURISDICTION
AUDIT OFFICES
THAT HAVE SUBPOENA POWER,
INCLUDING RIGHT ACROSS THE
STREET, KING
COUNTY AUDITORS OFFICE, AND
ALSO THE CITY OF PORTLAND,
THE CITY OF DENVER, THE
CITY AND COUNTY OF HONOLULU AND
SPEAKING
WITH THESE OFFICES, WE HAVE
LEARNED
THEY USE THIS POWER RARELY, IF
EVER, AND SO THAT IS OUR PLAN
AS
WELL. BUT WE DO THINK IT'S
CRUCIAL THAT AS WE CONTINUE TO
DEVELOP
FINDINGS AND
MAKE RECOMMENDATIONS TO IMPROVE
THE
CITY, THAT WE'RE DOING SO BASED
ON AS COMPLETE INFORMATION
AS
POSSIBLE AND THIS AUTHORITY
WOULD GUARANTEE THAT.
IN SECTION 050, WE CLARIFY
OUR ROLE IN THE SELECTION AND
OVERSIGHT OF
CONSULTANT
AUDITORS. THIS ALREADY EXISTS IN
THE CODE. WE'RE JUST ADDING
CLARIFYING LANGUAGE.
AND IN SECTION 060, WE
PROPOSE MAKING CLEAR OUR AUDIT
FOLLOW-
UP PROCESSES, WHICH YOU ALL MAY
BE FAMILIAR WITH.
THEY INCLUDE
SENDING OUR DRAFT TO THE
EXECUTIVE TO GET
COMMENT, AS WELL AS HAVING AN
ANNUAL
PROCESS WHERE WE FOLLOW UP ON
OUR AUDIT RECOMMENDATIONS
AS WE'VE PRESENTED TO THE
COUNCIL
A FEW TIMES THIS YEAR.
WE'RE NOT PROPOSING
ANYTHING DIFFERENT THAN WHAT WE
ALREADY
DO.
WE JUST WANT TO MAKE
SURE IT'S
WRITTEN DOWN SINCE WE THINK IT
PROVIDES VALUE TO THE CITY.
AND OUR LAST BIG
CATEGORY OF CHANGES RELATE TO
BRINGING THE CODE IN ALIGNMENT
WITH THE
OFFICE'S CURRENT POLICIES AND
PRACTICES.
IN SECTION 020, IT'S
PRETTY
STRAIGHTFORWARD. WE PROPOSE
ADDING SOME
DEFINITIONS.
YOU MAY BE WONDERING, I
KNOW WHAT AN AUDIT
IS, WHY DO WE HAVE TO DEFINE IT?
WE WANTED TO BE REALLY
CLEAR ABOUT HOW THOSE TERMS ARE
BEING USED IN THE CONTEXT OF OUR
WORK AND OUR OFFICE AND THIS
CHAPTER.
IN SECTION 040, WE PROPOSE
ADDING ANOTHER CLAUSE
TO DESCRIBE THE NONAUDIT
SERVICES THAT OUR OFFICE HAS
OCCASIONALLY PROVIDED.
SPECIFICALLY,
WE'RE TALKING ABOUT OUR ABILITY
TO DEVIATE FROM THOSE
AUDITING STANDARDS THAT WE
MENTIONED EARLIER TO
PROVIDE, LET'S SAY, TECHNICAL
ASSISTANCE OROR
OR SUPERVISORY REVIEWS THAT MAY
BE
MORE APPROPRIATE IN A
GIVEN SITUATION.
SO, FOR SOME
EXAMPLES, IN 2021, WE COMPLETED
AN
EVALUATION OF THE CITY'S SECURE
SCHEDULING
ORDINANCE.
THAT WAS NOT CONSIDERED A FULL
AUDIT. WE WERE
STILL ABLE TO RESPOND TO COUNCIL
NEEDS IN THAT WAY.
FINALLY, IN SECTION 070, WE ARE
PROPOSING TO INCLUDE A
REQUIREMENT FOR OUR OFFICE TO
UNDERGO AN EXTERNAL PEER
REVIEW BY OTHER AUDITORS FROM
AROUND
THE COUNTRY TO MAKE SURE WE ARE
ADHERING TO THOSE STANDARDS.
AS RITA MENTIONED, WE
HAVE ALREADY BEEN UNDERGOING
THOSE
REVIEWS UNDER AUDITOR JONES'
LEADERSHIP. IT IS A
RECOGNIZED PRACTICE ACROSS THE
STATE AND AT
THE FEDERAL GOVERNMENT AUDIT
OFFICES, AND WE HAVE
BEEN PASSING
THESE REVIEWS TO COVER THE LAST
17 YEARS OF OUR WORK.
WE WANTED TO
MAKE SURE THAT THIS IS EXPLICIT
IN OUR CHAPTER TO
ENSURE THAT THE PUBLIC
CAN CONTINUE TO TRUST THAT
WE'RE ADHERING TO OUR STANDARDS
NO MATTER WHO IS SERVING IN
SERVING
POSITION OF CITY AUDITOR.
THESE ARE THE PRIMARY
CATEGORIES OF CHANGES.
AGAIN, THE MEMO
INCLUDED FAR MORE DETAIL THAT WE
ARE HAPPY TO
ANSWER QUESTIONS ABOUT.
BUT THAT CONCLUDES OUR PREPARED
REMARKS. THANK YOU.
>> THANK YOU VERY MUCH.
AND CENTRAL STAFF ANALYST
KARINA, DO YOU HAVE ANY COMMENTS
OR QUESTIONS?
>> ONLY TO REITERATE THAT THE
CHANGES THAT ARE REFLECTED
IN THIS PROPOSAL DO
HAVE COROLLARIES FOR
OTHER DEPARTMENTS IN THE
SEATTLE MUNICIPAL CODE.
AND ALSO IN OTHER PUBLIC
AUDITING AGENCIES.
THE ONE EXEMPTION, WHICH IS FOR
A MINOR ISSUE, IS THE
REAPPOINTMENT OF THE
CITY AUDITOR WHERE THE
PROPOSAL REQUIRES A CITY AUDITOR
TO GIVE
NOTICE TO CITY COUNCIL OF THE
INTEREST IN BEING
REAPPOINTED AND THEN THE
COUNCIL, IN
AN ASPIRATIONAL WAY,
SHOULD GO AHEAD AND CONFIRM OR
PICK
SOMEONE ELSE WITHIN 45 DAYS.
THAT IS MEANT TO STREAMLINE THE
APPOINTMENT PROCESS, TO HAVE
A CONFIRMED HEAD OF THE
OFFICE, BUT THAT'S A MORE MINOR
ISSUE, AND IT
IS ASPIRATIONAL AS FAR AS HOW
COUNCIL IS GOING TO RESPOND.
AND COUNCIL WOULD STILL,
OBVIOUSLY, HAVE THE ABILITY TO
CONFIRM THAT SAME PERSON
OR TO
INITIATE A DIFFERENT PROCESS,
THE NATIONAL SEARCH PROCESS.
>> THANK YOU FOR THAT.
ARE
THERE ANY QUESTIONS OR CONCERNS
FROM COLLEAGUES?
OKAY, THIS IS -- SEEMS KIND OF
ANTI- ANTI- CLIMACTIC,
BUT THANK YOU VERY MUCH FOR A
VERY ADROITLY
EXPLAINING ALL THE COMPONENTS
OF THIS LEGISLATION.
SO, IF THERE IS -- IF WE'RE
READY, WILL THE CLERK PLEASE
CALL THE ROLL ON THE PASSAGE OF
THE BILL.
>> COUNCILMEMBER
RIVERA.
>>
AYE.
>> COUNCILMEMBER SOLOMON.
>>
AYE.
>> COUNCILMEMBER
HOLLINGSWORTH.
>> YES.
>> COUNCILMEMBER
KETTLE.
>> AYE.
>> CHAIR NELSON.
>> AYE.
>> FIVE IN FAVOR,
NONE OPPOSED.
>> THANK YOU VERY MUCH.
THE BILL PASSES AND THE CHAIR
WILL SIGN IT,
AND WILL YOU PLEASE AFFIX MY
SIGNATURE TO
THE LEGISLATION?
>> THIS IS
COMMITTEE.
>> THANK
YOU.
>>
THIS IS COMMITTEE.
>> OH, SORRY.
YEAH. ALL RIGHT.
IT HAS
BEEN -- WE HAVE MOVED -- WAIT A
MINUTE.
I DID
NOT MOVE --
>> TO SUSPEND THE BILL.
>> NO.
I DID NOT
MOVE THE LEGISLATION BEFORE WE
ENDED UP VOTING.
I MOVE COUNCIL BILL 121072.
COULD YOU PLEASE CALL THE
ROLL
AGAIN.
>> COUNCILMEMBER RIVERA.
>> AYE.
>> COUNCILMEMBER
SOLOMON.
>>
AYE.
>> COUNCILMEMBER
HOLLINGSWORTH.
>>
YES.
>> COUNCILMEMBER
KETTLE.
>> AYE.
>> CHAIR NELSON.
>>
AYE.
>> FIVE IN FAVOR, NONE
OPPOSED.
>> THANK YOU VERY MUCH.
WE
WILL TAKE THIS UP -- GREAT
CATCH.
WOULD YOU PLEASE -- THANK YOU
VERY MUCH.
>> THANK YOU.
>> WOULD YOU
PLEASE READ ITEM 3
INTO THE RECORD.
>> AN ORDINANCE RELATED TO WEST
SEATTLE JUNCTION PARKING AND
BUSINESS IMPROVEMENT
AREA, MODIFYING THE EXEMPTIONS
TO
THE LEVY OF SPECIAL ASSESSMENT
AND AMENDING ORDINANCE
113326 AS PREVIOUSLY AMENDED IN
ORDINANCES
115997, 119539, 120570, 121758,
125152
AND 127103 FOR BRIEFING,
DISCUSSION, AND POSSIBLE VOTE.
>> THANK YOU.
>> WHILE YOU'RE GETTING SEATED,
HELLO. WE'LL HAVE A PUBLIC
HEARING
FOLLOWED BY AN OPPORTUNITY
TO ASK FURTHER QUESTIONS,
THEN WE'LL SUSPEND THE RULES TO
VOTE ON THE ORDINANCE ON THE
SAME
DAY AS THE PUBLIC HEARING.
I'M OPENING THE PUBLIC
HEARING ON COUNCIL BILL 121060,
RELATED TO AMENDING THE CITY'S
SUBDIVISION REGULATIONS.
HOW MANY SPEAKERS DO WE
HAVE SIGNED UP TO SPEAK?
>> WE HAVE TWO REMOTE BUT
ONLY ONE IS CURRENTLY PRESENT,
AND NO
IN-PERSON.
>> OKAY.
PLEASE
GIVE OUR SPEAKER TWO MINUTES TO
SPEAK, PLEASE.
>> OUR FIRST SPEAKER IS
RACHEL
PORTER. RACHEL, YOU'LL HAVE TWO
MINUTES TO SPEAK.
WHEN YOU HEAR THE CHIME, THAT
MEANS TEN SECONDS ARE REMAINING.
AFTER THAT, IT'S TIME TO WRAP
UP YOUR COMMENTS.
SPEAKERS' MICS WILL BE
MUTED AT THE END OF THE ALLOTTED
TIME.
PUBLIC COMMENT IS REQUIRED TO
BE RELATING TO COUNCIL BILL
121060121060
AND IS ACCEPTED
AT THIS PUBLIC HEARING.
SPEAKERS ARE ASKED TO BEGIN
THEIR COMMENTS BY STATING
THEIR
NAME.
RACHEL, WHEN YOU HEAR THE TONE,
GO AHEAD AND UNMUTE YOURSELF.
>> HELLO, MEMBERS OF THE
COUNCIL.
HELLO, MEMBERS OF THE COUNCIL,
MY NAME IS RACHEL PORTER, AND
I AM THE EXECUTIVE DIRECTOR OF
THE
WEST SEATTLE CHAMBER
OF COMMERCE.
THE WEST SEATTLE CHAMBER
IS COMMITTED TO ADVANCING
ECONOMIC
DEVELOPMENT THROUGH BUSINESS
GROWTH, INVESTMENT,
AND COMMUNITY ACTIVATION.
THE JUNCTION BIA IS A CRITICAL
PARTNER IN THAT WORK ON
MAINTAINING÷÷ A CLEAN, SAFE AND
STRONG BUSINESS DISTRICT.
OUR SHARED MISSION TO
SUPPORT WEST SEATTLE IS SHOWN BY
THE
JUNCTION
BIA'S PROGRAM OF WORK, WHICH IS
ROBUST.
THEIR YEAR- ROUND TREE
LIGHTS, FLOWER BASKETS, BANNERS,
HOLIDAY
WREATHS AND FLAGS CREATE A
SENSE OF PLACE WITHIN ITS
BOUNDARIES.
ITS CLEAN AND SAFE
PROGRAM PROVIDES WEEKLY CLEANING
CREWSCREWS AND PATROLS THAT
MAKE THE
DISTRICT MORE OPEN, INVITING AND
SAFE.
SEASONAL EVENTS LIKE SUMMER
FEST, WHICH BRING IN
OVER 50,000 PEOPLE INTO WEST
SEATTLE,
THEIR QUARTERLY WINE WALKS,
WHICH INTRODUCE SMALL LOCAL
WINERIES TO NEW AUDIENCES, WHILE
ALSO SUPPORTING THE
AGRICULTURAL INDUSTRY OF OUR
STATE,
THE HOMETOWN HOLIDAYS, WHICH
LIGHT
UP THE SKY DURING THE
DARKEST TIME OF OUR WINTER
SEASON, AND THE WILDLY
SUCCESSFUL GLASS
FLOAT HUNT ALL DRAW VISITORS
INTO WEST SEATTLE BUSINESSES
AND PARKS, WHICH INCREASES
CUSTOMERS FOR THE
SMALL BUSINESSES THAT
SHAPE THE CHARACTER OF OUR
NEIGHBORHOOD.
THESE CREATIVE
ACTIVATIONS SPARK REGIONAL
ATTENTION, DRIVE
TOURISM AND DIRECTLY SUPPORT OUR
LOCAL BUSINESSES.
AS THE CHAMBER, WE PARTNER WITH
THE JUNCTION AT EVERY
OPPORTUNITY.
OUR SHARED EFFORTS SHOW HOW
THE CHAMBER AND THE JUNCTION
ARE NATURAL PARTNERS.
TOGETHER, WE AMPLIFY
VISIBILITY,VISIBILITY,
BUSINESS
CONDITIONS, DELIVER MEMORABLE
EXPERIENCES
TO RESIDENTS AND VISITORS, AND
ENSURE THAT THE JUNCTION
REMAINS ESSENTIAL TO THE HEART
OF WEST SEATTLE'S ECONOMY AND
COMMUNITY.
THIS AMENDMENT UPDATE IS
AN INVESTMENT IN THE LONG- TERM
VITALITY OF
WEST SEATTLE'S
ECONOMY.
>> THANK YOU, RACHEL.
THAT IS OUR ONLY COMMENTER.
>> THANK YOU VERY MUCH. THAT
CLOSES OUR PUBLIC HEARING.
I DO WANT TO FINISH
HER SENTENCE IF I COULD, BUT
BASICALLY NOTE
THAT WE DID RECEIVE -- WE
HAVE RECEIVED EMAILS IN SUPPORT
OF WHAT WE'RE DOING
TODAY. THERE'S A LOT OF LOVE
OUT
THERE FOR THE WEST SEATTLE
JUNCTION BIA.
I JUST WANT
TO PUT THAT ON THE
RECORD. THANK YOU SO MUCH FOR
THE WORK
THAT YOU HAVE BEEN DOING, AND I
KNOW THAT YOU HAVE ALSO RECEIVED
SEPARATE LETTERS IN SUPPORT OF
OUR ACTION TODAY.
OKAY, WITH THAT, PLEASE GO
AHEAD AND, AGAIN, I DID NOT DO A
VERY GOOD JOB OF MANAGING THE
TIME AT THE BEGINNING OF THIS
MEETING, AND UNFORTUNATELY, THAT
MEANS THAT WE WILL PROBABLY HAVE
TO
GO THROUGH IT FAIRLY QUICKLY.
>> YEAH, NO WORRIES.
WE ARE NOW DISCUSSING THE U
DISTRICT PROPOSED AMENDMENT?
>> THE JUNCTION.
>> YES.
>> OKAY.
>> OKAY. RIGHT.
YES, GO AHEAD.
>> OKAY.
GREAT.
HERE, LE LET ME JUST BRING DAWN
UP HERE.
>> SO, WE DISCUSSED --
>> WE'RE
DOING WEST SEATTLE.
>> WE DISCUSSED AT THE
AUGUST COMMITTEE
MEETING, SO I THINK THAT, IS
THERE A VOTE?
>> YES.
THIS IS THE --
>> FOR THE WEST SEATTLE?
>> CORRECT.
>> AMENDMENT? OKAY.
I DON'T HAVE
A PRESENTATION ON THE WEST
SEATTLE FOR TODAY.
>> OKAY.
>> THERE WAS ONE.
>> WE DID THE LAST MONTH.
>> OKAY.
WE DID HAVE A BRIEFING ON THIS
AT OUR LAST MEETING.
SO, OKAY.
IS THERE -- DO YOU HAVE ANY
COMMENTS YOU WOULD LIKE TO
MAKE, JASMINE?
>> OH, NO, I WAS JUST
CLARIFYING THAT WE ARE -- I
BELIEVE WE ARE
INDEED VOTING ON THE
WEST SEATTLE JUNCTION
AND UNLESS THERE ARE ANY
QUESTIONS, I DON'T
HAVE ANY FURTHER COMMENTS.
>> OKAY.
SO, THIS IS WHERE WE HAVE
TO SUSPEND THE RULES.
THIS ITEM IS SCHEDULED FOR
A VOTE ON THE SAME DAY AS A
PUBLIC
HEARING, AND THE RULES MUST
BE SUSPENDED TO ALLOW US TO MOVE
FORWARD WITH A VOTE.
IF THERE IS NO OBJECTION,
THE RULES WILL BE SUSPENDED TO
ALLOW
THE COMMITTEE TO
VOTE ON THE
SAME DAY A PUBLIC HEARING WAS
HELD.
LOOKING AT MY COLLEAGUES, THERE
IS NO OBJECTION.
SO, THEREFORE, HEARING NO
OBJECTION, THE RULES
ARE SUSPENDED AND
THE COMMITTEE WILL PROCEED WITH
A VOTE.
I MOVE THAT THE COMMITTEE
RECOMMEND PASSAGE OF
COUNCIL BILL
121060.
>> SECOND.
>> IT'S BEEN MOVED AND
SECONDED.
ARE THERE ANY FINAL COMMENTS?
GO AHEAD, COUNCILMEMBER.
>> CHAIR, I JUST WANT TO
CLARIFY FOR THE RECORD THAT WE
HAD A
BRIEFING ON THIS ON AUGUST
14th, AND WE DO HAVE A SLIDE
DECK
FROM
THEN. SO, I WANT TO GIVE
MEMBERS OF THE PUBLIC THAT MIGHT
BE WATCHING THE CONFIDENCE
THAT WE'VE ALREADY REVIEWED
THIS AND
THAT'S WHY WE'RE PROCEEDING TO
THE VOTE.
THANK YOU.
>> THANK YOU VERY MUCH FOR THAT,
AND THERE ARE THREE BIA --
WE'RE TALKING ABOUT THREE
DIFFERENT
BIAs HERE.
>> IT'S A LOT TODAY.
>> EVERYBODY'S
WONDERING, WHAT'S
UP? ALL RIGHT.
WILL THE CLERK PLEASE CALL
THE ROLL ON THE RECOMMENDATION
TO PASS THE
BILL.
>> COUNCILMEMBER
RIVERA.
>> AYE.
>> COUNCILMEMBER
SOLOMON.
>>
AYE.
>> COUNCILMEMBER
HOLLINGSWORTH.
>>
YES.
>> COUNCILMEMBER KETTLE.
>> AYE.
>> CHAIR NELSON.
>> AYE.
>> FIVE IN FAVOR, NONE
OPPOSED.
>> THE MOTION CARRIES AND
THE COMMITTEE RECOMMENDATION TO
PASS
THE BILL WILL BE SENT TO THE
CITY COUNCIL MEETING.
AND THEN, WE'LL --
THANK YOU
VERY MUCH FOR THAT. YOU'RE DONE.
AND WILL THE CLERK PLEASE
READ ITEM 4 INTO THE
RECORD.
>> AGENDA ITEM NUMBER 4,
AN ORDINANCE RELATING TO THETHE
DISTRICT PARKING
AND BUSINESS IMPROVEMENT
AREA, MODIFYING THE PROCESS
FOR SELECTING A PROGRAM
MANAGER, MODIFYING THE
REQUIREMENTS
FOR GOVERNING THE COMPOSITION OF
THE BIA ADVISORY BOARD AND
AMENDING AFFORD
NANCE 126093. FOR BRIEFING,
DISCUSSION, AND
POSSIBLE VOTE.
>> ALL RIGHT.
HERE WE HAVE DAWN
BLAKENEY, DIRECTOR OF THE
UNIVERSITY DISTRICT PARTNERSHIP.
WELL, NO.
EXCUSE ME.
UNIVERSITY DISTRICT BUSINESS
IMPROVEMENT AREA AND I
WOULD LIKE TO SAY THAT YOU
HAVE APPEARED BEFORE THIS
COMMITTEE AND THIS COUNCIL
SEVERAL
TIMES IN THE PAST.
YOU HAVE BEEN A VALUED PARTNER
IN REPRESENTING SMALL
BUSINESS IN THE UNIVERSITY
DISTRICT
AREA AND ADVISING ON POLICY FOR
HOW TO HELP SMALL
BUSINESSES ACROSS THE CITY.
I JUST WANTED TO NOTE MY
APPRECIATION FOR YOUR WORK.
>> THANKS, COUNCILMEMBER NELSON.
>> AND GO AHEAD, PLEASE.
>> ALL RIGHT, JUST ONE SECOND
WHILE WE GET THE PRESENTATION
UP.
>> THANK YOU. THANK YOU, COUNCIL
PRESIDENT
AND COUNCIL MEMBERS.
THANK YOU FOR ACCOMMODATING
US TODAY.
SO, MY NAME IS CASEY ROGERS,
THE BIA POLICY ADVISOR AT THE
OFFICE OF ECONOMIC DEVELOPMENT
SO I'M THE
MAIN POINT OF CONTACT TO WORK
WITH OUR CITY'S 11 BIAs.
I'LL GIVE A QUICK PRESENTATION
JUST TO KIND OF TEE UP
WHAT WE'RE TALKING ABOUT TODAY,
AND
THEN WE'LL PASS IT ON TO DAWN
TO PROVIDE MORE DETAILS.
FIRST, I WANT TO GIVE A QUICK
UPDATE OR OVERVIEW OF OUR BIA
PROGRAM. WE HAVE 11 BIAs ACROSS
THE
CITY
THAT GENERATE -- IT WOULD BE
HELPFUL IF I HAD THE SLIDE
GOING.
THERE WE ARE.
THAT GENERATE MORE
THAN $45 MILLION FOR
ENHANCED NEIGHBORHOOD SERVICES
AND
PROGRAMS.
BIAs PROVIDE
SUSTAINABLE FUNDING THAT IS
ALLOCATED
DIRECTLY TO THE LOCAL DISTRICTS
AND
STAY WITHIN THE NEIGHBORHOODS
THEMSELVES. AND LASTLY, THE BIA
PROGRAM
IS ADMINISTERED BY THE OFFICE
OF
ECONOMIC DEVELOPMENT AND OFFICE
OF TREASURY SERVICES.
ALL RIGHT, SO,
AS I SAID, I'LL DO A QUICK
OVERVIEW OF THE
PROPOSED AMENDMENT AND HAND
IT OVER
TO DAWN. IT'S PROPOSING TWO
CHANGES
TO THE DISTRICT'S EXISTING
ORDINANCE. THE FIRST IS REMOVING
THE RFP
REQUIREMENT.
THE U DISTRICT'S
CURRENT ORDINANCE REQUIRES THAT
OED CONDUCT AN RFP PROCESS
EVERY FIVE
YEARS TO IDENTIFY A PROGRAM
MANAGER TO RUN THE U DISTRICT
BIA. WE RAN THIS LAST JANUARY,
THE
FIRST TIME WE HAD DONE IT,
AND IT WAS A SIGNIFICANT AMOUNT
OF
WORK, BOTH INTERNAL
STAFF RESOURCES AND EXTERNAL
VOLUNTEER HOURS, QUICK SHOUTOUT
TO
ERIN WHO VOLUNTEERED HER TIME TO
REVIEW THE RFP PROPOSALS.
ADDITIONALLY, WE DETERMINED
THERE WAS REALLY NO PUBLIC
BENEFIT TO THIS RFP PROCESS.
THE PROPOSALS THAT
WERE SUBMITTED WERE REALLY
UNQUALIFIED APPLICANTS WHO WERE
UNFAMILIAR WITH THE NEIGHBORHOOD
AND REALLY DIDN'T WARRANT MUCH.
AND THE SELECTED WINNER
OF THE RFP WAS THE U
DISTRICT PARTNERSHIP.
ELIMINATING THIS
RFP REQUIREMENT WILL ALIGN THE U
DISTRICT BIA
WITH THE PRACTICES OF OTHER
BIAs AND LET THEM FOCUS ON
SERVICE
DELIVERY AND PROGRAM IMPACT.
THE SECOND PART OF THE
PROPOSED AMENDMENT IS TO
ADJUST THE BOARD SEAT
REQUIREMENTS TO MAKE
IT EASIER FOR THEM TO COMPLY BY
STILL MAINTAIN THE ORIGINAL
INTENT AND I'LL LET DAWN
PROVIDE
MORE DETAILS ON THAT.
SORRY, I THINK I -- THERE WE
ARE.
AND LASTLY, I JUST WANT TO NOTE
THAT WE DETERMINED THAT
THESE PROPOSED CHANGES ARE
ALLOWED
THROUGH THE AMENDMENT PROCESS
PER THE STATE RCW AND THAT NO
PETITION PROCESS IS REQUIRED AS
PART OF THE AMENDMENT PROCESS.
WITH THAT, QUESTIONS WE CAN DO
AT THE END. I WILL PASS IT OVER
TO DAWN.
>> I HAVE THAT RIGHT
THERE.
>> DO YOU WANT TO --
>> YEAH,
I CAN.
>> I'LL JUST HOP ON HERE.
THANK YOU.
>> I WANT TO GIVE A BIG THANK
YOU TO THE OFFICE OF
DEVELOPMENT. I'M DON AKENEY,
THE
EXECUTIVE DIRECTOR OF THE U
DISTRICT PARTNERSHIP.
THE U DISTRICT
PARTNERSHIP IS THE PROGRAM
MANAGER FOR THE U
DISTRICT BIA, AND I WANT
TO THANK THE COUNCIL FOR
HEARING THIS TODAY AND FOR
TAKING UP
THIS MATTER.
I'LL TELL YOU A LITTLE BIT
ABOUT U DISTRICT PARTNERSHIP
SO YOU KNOW WHAT
WE'RE ABOUT. HOW DO I ADVANCE
SLIDES?
COOL,
THANK YOU. SO, THIS IS US.
WE ARE A PLACE MANAGEMENT
ORGANIZATION.
THERE'S ABOUT 3,300 OF
THESE ACROSS NORTH AMERICA, TEN
IN
SEATTLE. WE WERE ESTABLISHED IN
2015.
WE USED TO BE THE
GREATER CHAMBER OF COMMERCE FOR
THE UNIVERSITY DISTRICT, WHICH
WAS FOUNDED IN 1914 AND
RAN FOR 100 YEARS BEFORE IT
BECAME A
PARTNERSHIP FUNDED BY A BIA.
WE ARE A 501(C)(3) NONPROFIT
AND WE ARE THE PROGRAM
MANAGER FOR THE
BIA. WE -- IN OUR -- A LITTLE
BIT
ABOUT US.
THE U DISTRICT PARTNERSHIP IS
A VOICE FOR SEATTLE'S
UNIVERSITY
DISTRICT NEIGHBORHOOD, IMPROVING
AND PROMOTING ITS
VIBRANCY THROUGH ADVOCACY,
CLEANING, ECONOMIC DEVELOPMENT,
PLACE
MAKING, EVENTS, MARKETING AND
HOMELESS OUTREACH.
WE ARE THE -- WE SEE THE U
DISTRICT AS A UNIQUE AND
DIVERSE NEIGHBORHOOD AS WELL AS
THE PROUD HOME OF THE UNIVERSITY
OF
WASHINGTON. WE WELCOME PEOPLE
FROM ALL
OVER THE GLOBE TO EXPERIENCE
OUR VIBRANT SMALL
BUSINESSES, PARTICIPATE IN OUR
TIME-
HONORED TRADITIONS
AND TO PURSUE BIG IDEAS THAT CAN
CHANGE THE WORLD.
WE APPROACH OUR WORK WITH
LEADERSHIP,
I KNOW WE DON'T A GEOGRAPHY
LESSON BUT THIS IS WHAT WE THINK
>> WHEN IT COMES TO PUBLIC
SAFETY, I KNOW YOU MAKE YOUR
VOICE KNOWN AND THAT IS AN
EXAMPLE OF THE OUTREACH THAT WE
DO ON A REGULAR BASIS, TALKING
TO INDIVIDUALS WHO HAVE THAT
PULSE OF THE NEIGHBORHOOD, THE
ISSUES THEY ARE FACING, IN THIS
CASE BUSINESSES AND THAT IS VERY
IMPORTANT AND IT GOES TO THE
POINT THAT WE AS COUNCILMEMBERS
ARE ENGAGED IN A WAY, OBVIOUSLY
COUNCILMEMBER RIVERA IS ENGAGED
IN SUCH A STRONG WAY WHEN IT
COMES TO PUBLIC SAFETY MEETINGS,
EVEN THOUGH SHE IS NOT ON THE
COMMITTEE. THERE IS A
REPRESENTATION OF HER COMMITMENT
TO PUBLIC SAFETY BUT ALSO AS A
VEHICLE TO SEE YOUR WORK IN THIS
AREA, TOO. AGAIN, ECHOING THE
POINTS MADE TUESDAY NIGHT, THANK
YOU FOR YOUR SERVICE TO THE
COMMUNITY.
>> THANK YOU COUNCILMEMBER.
>> WELL, I WILL NOT BELABOR THE
POINT, SUFFICE TO SAY, SINCE YOU
HAVE BEEN DIRECTOR, TWO LIGHT
RAIL STATIONS HAVE OPENED UP,
THERE IS NOW A FESTIVAL, A
CHERRY TREE FESTIVAL, IT SEEMS
LIKE THERE IS SOMETHING GOING ON
ALL THE TIME IN ADDITION TO,
WHAT IS THE ONE IN MAY? AND YOU
ARE CONSTANTLY EDUCATING
POLICYMAKERS ABOUT WHAT IS GOING
ON, SO THANK YOU VERY MUCH FOR
YOUR WORK, I'M NOT SEEING ANY
ADDITIONAL QUESTIONS.
COUNCILMEMBER SULLIVAN? OKAY,
THIS IS VERY IMPORTANT TO GET
AHEAD OF BECAUSE OF THE CHANGES
HAVING TO DO WITH THE LIGHT
RAIL. SO THIS LEGISLATION IS
TECHNICALLY COUNSEL GENERATED,
AND WE ALSO HAVE DIRECTOR AARON
GOODMAN WHO KNOWS EVERYTHING
THAT IS GOING ON DOWN THERE AND
THEY WILL ALSO PRESENT. WILL YOU
PLEASE INTRODUCE YOURSELVES,
THEN YOU CAN BEGIN.
>> GOOD AFTERNOON, THANK YOU.
>> JUST PAUSE ONE MOMENT PLEASE,
WILL THE CLERK PLEASE READ THE
ITEM INTO THE RECORD?
>> ITEM FIVE, CHANGING THE
ASSESSMENT RATE AND ASSUMPTIONS
ORDINANCE 125678 AS PREVIOUSLY
AMENDED ORDINANCE 126191 FOR
DISCUSSION.
>> THANK YOU VERY MUCH, PLEASE
PROCEED.
>> THIS IS JASMINE ON YOUR
COUNSEL CENTRAL STAFF.
>> CASEY ROGERS, THE POLICY
ADVISER.
>> I CAN GO AHEAD AND KICK US
OFF. GOOD AFTERNOON MEMBERS OF
THE COMMITTEE, I'M JUST GOING
TO SHARE SOME INTRODUCTORY
REMARKS AND TURN IT OVER TO
AARON. SO, COUNSEL BILL 121073
WAS DEVELOPED BASED ON THEIR
EXPERIENCE OVER THE LAST FEW
YEARS ADMINISTERING THE BIA AND
IS INTENDED TO STRENGTHEN
OPERATIONS AND MAINTAIN
CONSISTENT SERVICES. I WILL LET
THEM GO INTO MORE DETAIL ABOUT
THE REASONS FOR THESE CHANGES IN
A MINUTE WHICH IS TO ESTABLISH
THE CONTEXT AND WHAT WE ARE
DOING, SO RIGHT NOW THE CURRENT
RATES ARE BASED ON A PROPERTY'S
TOTAL TAXABLE VALUE SO NONPROFIT
PROPERTIES AND GOVERNMENT OWNED
PROPERTIES THAT ARE LEASED TO
COMMERCIAL TENANTS ARE ASSESSED
DIFFERENTLY, USING A RATE BASED
ON THEIR LOT SQUARE FOOTAGE
WHICH HAS STAYED AT A FIXED RATE
AS OTHER PROPERTIES HAVE
INCREASED IN THEIR APPRAISED
VALUE. THE BILL WOULD CHANGE THE
BASIS OF ASSESSMENTS TO A TOTAL
OF APPRAISED VALUE WITH AN
EXEMPTION FOR GOVERNMENT OWNED
PROPERTIES UNLESS THEY ARE
LEASED OR AVAILABLE TO BE LEASED
BY A NONGOVERNMENTAL TENANT AND
THEREFORE ASSUMED TO NOT BE IN
GOVERNMENTAL USE. USING THIS
APPROACH, ON NONPROFIT
PROPERTIES AND MORE GOVERNMENT
OWNED PROPERTIES CONCURRENTLY
WOULD BE SUBJECT TO ADDITIONAL
ASSESSMENT AND THAT WOULD
ESCALATE IF THE PROPERTY'S
APPRAISED VALUE WERE TO INCREASE
AS WELL. THE BILL ALSO INCLUDES
A SECTION DIRECTING TO CONVENE
STAKEHOLDERS TO DEVELOP FURTHER
RECOMMENDATIONS FOR CHANGES IN
ASSESSMENT RATES TO ADDITIONAL
GOVERNMENT PROPERTIES, THAT IS
BEFORE YOU TODAY. OED WOULD
REPORT BACK TO COUNCIL BY JULY
1st WITH ANY RECOMMENDED
PROPOSED CHANGES. AND FINALLY,
THE BILL WOULD ESTABLISH A
CUTOUT FIXED RATE EACH YEAR,
THIS CHANGES ARE ALSO REQUESTED
DUE TO INSTANCES WHERE
SIGNIFICANT DELAYS HAD CAUSED
QUITE A BIT OF BURDEN FOR THE
BIA AND ADMINISTRATION,
SIGNIFICANT DELAY IN THE
ASSESSORS DATA RELEASE. THIS
PROCESS IS HAPPENING REST
ASSURED IN ACCORDANCE WITH STATE
LAW. THERE WILL BE A PUBLIC
HEARING FOR THIS COUNCIL BILL IN
DECEMBER AND THE RESOLUTION THAT
SETS THE PUBLIC DATE, THE PUBLIC
HEARING DATE IS GOING TO BE
VOTED ON AT FULL COUNSEL ON
SEPTEMBER 16th. AND AT THAT NEXT
COMMITTEE ON DECEMBER 11th,
THERE WILL BE THE PUBLIC HEARING
ON THE COUNSEL BILL, WE WILL
CONSIDER ANY PROPOSED AMENDMENTS
AND THE COMMITTEE WILL POSSIBLY
VOTE ON THE BILL. I BELIEVE THAT
IS ALL I HAVE UNLESS THERE ARE
QUESTIONS, WE CAN TURN IT OVER
TO ERIN.
>> THANK YOU AND GOOD AFTERNOON.
AS I SAID, I'M ERIN GOODMAN,
THE EXECUTIVE DIRECTOR OF THE
SODO BUSINESS AREA, A ROLE I
HAVE HELD SINCE 2014, THE SODO
BIA IS A COLLABORATIVE MECHANISM
THAT ALLOWS PROPERTY OWNERS TO
INVEST IN PROJECTS AND SERVICES
THAT ENHANCE THE SODO DISTRICT
AND CREATE A BETTER ENVIRONMENT
FOR EMPLOYEES, TENANTS,
CUSTOMERS AND VISITORS, THE WORK
FOCUSES ON IMPROVING
TRANSPORTATION AND PUBLIC
SAFETY, MAINTAINING A CLEAN AND
WELCOMING ENVIRONMENT, ENHANCING
ECONOMIC VITALITY AND FOSTERING
A COHESIVE AND INCLUSIVE WORKING
DISTRICT. THESE SERVICES GO
BEYOND THE CITY OF SEATTLE'S
SPACE LINE AND BENEFIT THE
PRIVATE BUSINESSES, THE
GOVERNMENT ENTITIES, PROPERTY
OWNERS, TENANTS AND EMPLOYEES IN
THE DISTRICT AS WELL AS THE
HUNDREDS OF THOUSANDS OF
VISITORS TO ITS COMMERCIAL,
INDUSTRIAL, SPORTS AND
ENTERTAINMENT VENUES. HOWEVER,
SEVERAL FACTORS ARE PUTTING THE
ABILITY TO SUSTAIN THESE
SERVICES AT RISK. THE SODO BIA
IS SEEKING THIS AMENDMENT TO
STREAMLINE OPERATIONS TO RESOLVE
ONGOING CHALLENGES, ALIGN OUR
ASSESSMENT PRACTICES WITH OTHER
BIA'S AND PROMOTE GREATER
EQUITY AMONG ALL PAYERS. THE
AMENDMENT BEFORE YOU AS JASMINE
MENTIONED IS IN TWO PARTS, THE
FIRST WOULD TRANSITION THE
ASSESSMENT FORMULA FROM ONE
BASED ON TOTAL TAXABLE VALUE TO
TOTAL APPRAISED VALUE, THIS
WOULD ADDRESS THE LACK OF
ESCALATION CLAUSE FOR THOSE
PROPERTIES THAT ARE GOVERNMENT
OWNED BUT COMMERCIALLY TENANTED.
THE LOT SQUARE FOOT RATE WAS SET
TO BE COMPARABLE TO A SIMILAR
COMMERCIALLY OWNED PROPERTY,
HOWEVER OVER TIME, THE LACK OF
AN ESCALATION FORMULA HAS
CREATED A WIDENING DISPARITY
BETWEEN COMPARABLE PROPERTIES.
THIS AMENDMENT WOULD ENSURE THAT
PROPERTIES ARE ASSESSED
CONSISTENTLY AND EQUITABLY. WHEN
THE SODO BIA WAS RENEWED IN 2018
THERE WERE NO TAX-EXEMPT
NONPROFIT PROPERTIES, SINCE
THEN, TWO NONPROFIT
ORGANIZATIONS HAVE EITHER OPENED
IN SODO OR ACQUIRED PROPERTIES
THAT THEY HAVE PREVIOUSLY LEASED
IN 2025, BOTH PROPERTIES WERE
RETROACTIVELY DESIGNATED AS
TAX-EXEMPT BY THE KING COUNTY
ASSESSOR'S OFFICE. REQUIRING
REFUNDS FOR ASSESSMENTS
PREVIOUSLY COLLECTED UNDER THEIR
TAXABLE STATUS. BOTH NONPROFIT
ORGANIZATIONS ARE ACTIVELY
ENGAGED WITH THE SODO BIA AND WE
ACTIVELY PARTNER WITH THEM TO
SUPPORT THEIR OPERATIONS. ONE OF
THESE ORGANIZATIONS HAS HAD A
SEAT ON OUR BOARD FOR THE PAST
SEVEN YEARS. ADOPTING A TOTAL
APPRAISED VALUE ASSESSMENT
FORMULA WOULD PROVIDE A FAIR AND
CONSISTENT METHOD FOR INCLUDING
NONPROFIT PROPERTIES IN THE
ASSESSMENT FRAMEWORK. IT WOULD
ALLOW THE BIA TO RECOGNIZE THE
VALUE OF THESE ORGANIZATIONS,
WHILE ENSURING ALL RATEPAYERS
CONTRIBUTE EQUITABLY TO THE
HEALTH AND VITALITY OF THE
DISTRICT. OUR CURRENT
AUTHORIZING ORDINANCE REQUIRES
THE BIA TO UPDATE ITS ASSESSMENT
LIST EVERY TWO YEARS, USING THE
DATA FROM KING COUNTY HOWEVER,
IN BOTH 2022 AND 2024,
SIGNIFICANT DELAYS IN THE
ASSESSES DATA RELEASE FORCED THE
BIA TO BILL BASED ON INCOMPLETE
INFORMATION RESULTING IN THE
NEED TO BACK BILL OR ISSUE
REFUNDS TO CORRECT UNDER
ASSESSMENTS OR OVERPAYMENTS. THE
BIA IS ALSO OBSERVING
FLUCTUATIONS IN COMMERCIAL
PROPERTY VALUES AND WITHIN THE
GOVERNMENT TAX YEAR AFTER
ASSESSMENT INVOICING WHICH HAS
ALSO RESULTED IN THE NEED TO
BACK BILL OR ISSUE REFUNDS. TO
ADDRESS THESE CHALLENGES, THE
BIA PROPOSES ADDING ORDINANCE
LANGUAGE TO ESTABLISH A FIXED
CAPTURE DATE, EACH UPDATE YEAR
FOR THE POLLING OF THE
ASSESSMENT DATA. THE VALUES
RECORDED ON THAT DATE WOULD
SERVE AS THE BASIS FOR THE
FOLLOWING BILLING YEAR,
REGARDLESS OF ANY SUBSEQUENT
CHANGES FROM THE COUNTY.
ESTABLISHING A FIXED CAPTURE
DATE WOULD REDUCE ADMINISTRATIVE
COMPLEXITY, PREVENT UNEXPECTED
CHARGES TO PROPERTY OWNERS AND
CREATE GREATER PREDICTABILITY
AND FAIRNESS IN THE ASSESSMENT
PROCESS FOR THE SODO BIA AND ITS
RATE FORCE. AND I SHOULD NOTE,
WE DON'T SEND OUT THE BILLS,
THE CITY'S OFFICE OF FINANCIAL
AND AM INITIATIVE SERVICES DOES
SO I SHOULD SAY THIS WILL ALSO
CREATE GREATER PREDICTABILITY IN
THE ASSESSMENT PROCESS FOR THE
CITY. WHILE THESE CHANGES ARE
NECESSARY FOR THE FIRST STEP,
THERE'S MORE THAT STILL NEEDS
TO BE DONE TO ENSURE THAT THE
SODO BIA WILL CONTINUE TO SERVE
THE COMMUNITY FOR YEARS TO COME.
THE SECOND PART OF THE AMENDMENT
DIRECTS THE CITIES OFFICE OF
DEVELOPMENT TO CONDUCT A STUDY
OF THE REMAINING ISSUES AND
DETERMINE THE APPROPRIATE NEXT
STEPS. THOSE ISSUES ARE AS
FOLLOWS, EXCEPT FOR THE FEW THAT
ARE COMMERCIALLY TENANTED, WHEN
A PROPERTY IS SOLD TO A
GOVERNMENT ENTITY, WHETHER IT IS
INTENDED FOR ACTUAL GOVERNMENT
SERVICES OR NOT, IT IS NO LONGER
ASSESSABLE. SINCE 2019,
GOVERNMENT PURCHASES OF
PREVIOUSLY COMMERCIALLY OWNED
PROPERTIES HAVE REMOVED ROUGHLY
$15,000 FROM THE BUDGET
ANNUALLY. THE PACE OF THESE
TYPES OF PURCHASES HAS INCREASED
AND IN JUST THE PAST COUPLE OF
MONTHS, TWO FORMERLY RATE PAINT
PROPERTIES WERE PURCHASED BY
GOVERNMENT ENTITIES RESULTING IN
AN ADDITIONAL LOSS OF $9000 TO
OUR ANNUAL ASSESSMENT. WHILE
THIS IS NOT A MASSIVE SUM IN THE
GOVERNMENT BUDGET WORLD, IT IS
SIGNIFICANT TO OUR BUDGET. AND
FURTHER PLANNED MEGAPROJECTS IN
SODO OVER THE NEXT 10 YEARS WILL
EXPONENTIALLY INCREASE THE RATE
OF GOVERNMENT PURCHASES IN SODO.
ADDITIONALLY, WHILE GOVERNMENT
OWNED AND GOVERNMENT TENANTED
PROPERTIES WILL REMAIN EXEMPT
UNDER THE AMENDMENT BEFORE YOU,
MANY OF THESE PROPERTIES STILL
RECEIVE THE BENEFIT OF BIA
SERVICES, WHICH UNDERMINES BOTH
FAIRNESS TO THEIR NEIGHBORS IN
THE SODO COMMUNITY AND TO OUR
LONG-TERM SUSTAINABILITY. THE
STUDY WILL LOOK AT THESE
PROPERTIES AND THE BENEFITS THEY
RECEIVE TO DETERMINE SOLUTIONS
TO ADDRESS THIS INEQUITY.
CREATING A MORE CONSISTENT
FRAMEWORK TO ENSURE THAT ALL
PROPERTIES THAT BENEFIT FROM BIA
SERVICES CONTRIBUTE FAIRLY
REGARDLESS OF OWNERSHIP STATUS.
I LOOK FORWARD TO WORKING WITH
THEM AND RETURNING TO THIS
CHAMBER IN JULY WITH ADDITIONAL
REFINEMENTS THAT FURTHER PROMOTE
EQUITY AMONG ALL SODO
PROPERTIES, MAINTAIN SERVICES
AND SUPPORT THE SUSTAINABILITY
OF THE SODO BIA. THANK YOU AND
I'M HAPPY TO ANSWER QUESTIONS.
I FULLY ACKNOWLEDGE THIS IS A
LOT OF TECHNICAL STUFF BUT I
TRIED TO SQUEEZE IT IN BECAUSE I
KNOW WE ARE UNDER TIME.
>> ARE THERE ANY QUESTIONS FROM
MY COLLEAGUES?
>> THANK YOU VERY MUCH, COUNCIL
PRESIDENT, YOU KNEW I WASN'T
GOING TO LET YOU GET AWAY
WITHOUT ME SAYING SOMETHING. I
WANT TO BE CLEAR ON THE TIMELINE
IN TERMS OF DECISION-MAKING, DID
YOU SAY THE CHANGES ARE NOT
GOING TO BE VOTED ON UNTIL
DECEMBER?
>> THAT IS CORRECT.
>> AND THE REASON FOR THAT
TIMELINE IS WHAT? OTHER THAN
WE'VE GOT BUDGET COMING UP.
>> YOU'VE GOT BUDGET COMING UP
IS EXACTLY WHY AND DUE TO A LOT
OF THE TECHNICAL ISSUES, IT TOOK
US A LITTLE LONGER TO WORK OUT
HOW WE WANTED TO DO THIS, AS YOU
ARE WELL AWARE, I ORIGINALLY HAD
PROPOSED SOME ADDITIONAL CHANGES
THAT THE CITY WOULD LIKE OED TO
STUDY FURTHER AND THAT IS HOW WE
CAME UPON THIS TWO PART
SOLUTION. SO NOW WE ARE HERE AND
WE'VE GOT THIS, SO WE WILL COME
IN DECEMBER WITH THE FIRST PART
OF THE AMENDMENT AND WE WILL
SPEND THE FIRST PART OF 2026
LOOKING AT, AND I HAVE A LOT OF
INFORMATION THAT IS GOING INTO
THAT STUDY TO SUPPORT MY
PROPOSALS , SO I'M VERY
CONFIDENT THAT WHEN I COME BACK
IN JULY THAT WE WILL BE LOOKING
AT ADDITIONAL REFINEMENTS. BUT
AT THIS POINT, YES, WE WILL BE
COMING BACK IN DECEMBER AND THE
AMENDMENT WOULD GO INTO EFFECT
IN JANUARY OF 26 WHICH IS WHEN
BIA'S BILL, SEMIANNUALLY, THIS
WILL CAUSE A LITTLE BIT OF A
CRUNCH FOR FAS IN JANUARY BUT IF
WE ARE WELL PREPARED, WE SHOULD
BE ABLE TO MAKE IT AS SMOOTH AS
POSSIBLE.
>> THANK YOU AND ONE OTHER
QUESTION AND I THINK THIS IS
PROBABLY MORE FOR THE PUBLIC
THAT MIGHT BE WATCHING. YOU
MENTIONED THAT THERE ARE A LOT
OF PROPERTIES, FORMER COMMERCIAL
PROPERTIES THAT HAVE BEEN
ABSORBED BY GOVERNMENT AND MORE
IS COMING. IN MY BRAIN
IMMEDIATELY GOES TO LIGHT RAIL
EXPANSION. IS THAT WHAT WE ARE
TALKING ABOUT, ONE OF THE THINGS
WE ARE TALKING ABOUT IN TERMS OF
SOME OF THOSE CURRENTLY
COMMERCIAL PROPERTIES COMING
UNDER A DIFFERENT TAX UMBRELLA?
>> THAT IS ONLY ONE OF TWO MAJOR
INFRASTRUCTURE PROJECTS SLATED
TO BEGIN IN SODO THAT ARE
ALREADY IN THE PROPERTY
ACQUISITION PROCESS. WE ALSO
KNOW OF AT LEAST TWO OTHERS THAT
ARE STILL IN THE PLANNING
PROCESS. AND I THINK IT IS
IMPORTANT TO UNDERSTAND THAT
WHEN A MAJOR INFRASTRUCTURE
PROJECT HAPPENS, THERE'S THE
PROPERTIES THAT THEY BUY TO
BUILD THE LINE. THERE'S THE
PROPERTY THAT THEY BUY TO DO
STORAGE, THERE'S THE PROPERTIES
THAT THEY BUY TO DO ACCESS, AND
THEN THERE'S THE FACT THAT A
LOT OF TIMES WHEN THESE
PROPERTIES ARE PURCHASED, THEY
SIT THEY GET AND THE IMPACT OF A
VACANT PROPERTY CANNOT BE
UNDERESTIMATED. IT CAUSES SUCH
SIGNIFICANT IMPACT WITH
ADDITIONAL GRAFFITI BREAK-INS.
SO WHEN A PROPERTY BECOMES
VACANT, IT ACTUALLY CREATES A
LOT MORE WORK FOR MY STAFF, FOR
DIFFERENT ELEMENTS. SO IT IS
ACTUALLY A MUCH BIGGER PROBLEM
OR IMPACT THAN WHEN IT IS FULLY
TENANTED. SO WHAT WE ARE LOOKING
AT IS NOT FOR PROPERTIES THAT
ARE GOING TO BECOME A LIGHT RAIL
LINE OR THAT ARE GOING TO
PROVIDE SERVICES BUT TWO OF THE
PROPERTIES THAT I MENTIONED
EARLIER ARE NOT WHERE GOVERNMENT
SERVICES ARE BEING PERFORMED,
THEY ARE BEING USED AS
WAREHOUSES FOR STUFF. SO, WHAT I
THINK, AS WE LOOK AT THIS, THAT
WE LOOK AT THE USE AND WHETHER
THOSE ARE FUNDAMENTAL USES OR
USES THAT COULD BE A DIFFERENT
WAY. ONE OF THE DIFFERENT THINGS
HAPPENING IN THE BIA, I ALSO
SERVE ON THE INTERNATIONAL
DOWNTOWN ASSOCIATION BOARD WHICH
IS THE BODY THAT IS REPRESENTING
MY TYPE OF ORGANIZATION ACROSS
THE GLOBE AND THERE IS A BIG
MOVEMENT AWAY FROM THIS TERM
BUSINESS IMPROVEMENT AREA OR
BUSINESS IMPROVEMENT DISTRICT,
TOWARDS SOMETHING CALLED URBAN
PLACE MANAGEMENT ORGANIZATION OR
URBAN PLACE MANAGEMENT DISTRICT
BECAUSE I THINK THE WORD
BUSINESS REALLY CONFUSES PEOPLE.
I'M NOT A CHAMBER OF COMMERCE,
I DON'T HELP PEOPLE PROMOTE
THEIR BUSINESSES IN THE WAY THAT
A CHAMBER MIGHT. WE CREATE, WE
WORK ON THE DISTRICT. WE MAKE
SURE THAT IT IS SAFER FOR
EMPLOYEES TO WALK, WE PRESSURE
WASH, WE CLEAN, WE DO SAFETY AND
WE WORK WITH AGENCIES ON
TRANSPORTATION SOLUTIONS. THESE
TYPES OF ACTIVITIES BENEFIT ALL
OF THE EMPLOYEES IN SODO,
WHETHER THEY ARE GOING TO A
GOVERNMENT JOB OR TO A PRIVATE
JOB AND WE SPECIFICALLY WORK
WITH GOVERNMENT AGENCIES AS
RATEPAYERS IN OUR DISTRICT THAT
DON'T PAY INTO THE SYSTEM BUT
THEY USE US. THEY CALL US WHEN
THEY HAVE ISSUES AND WE HELP
THEM. SO I'M NOT COMING AT THIS
WITH AN ARBITRARY, OH, I THINK
YOU SHOULD PAY. AND THERE IS A
LOT OF DOCUMENTATION ACROSS THE
STATE AND ACROSS THE COUNTRY, OF
THE OTHER CITIES THAT PAY INTO
THE BIAS. THIS IS NOT THE DAY TO
HAVE THAT CONVERSATION BUT I'M
REALLY LOOKING FORWARD TO HAVING
IT IN JULY.
>> AND I ALSO WANTED TO NOTE YOU
MENTIONED THE BUILDINGS OR THE
PROPERTIES, THERE IS STORAGE,
THEY HAVE BEEN ACQUIRED BUT THEY
ARE SITTING EMPTY RIGHT NOW AND
THE CONCERN ABOUT VACANT
BUILDINGS, NOT ONLY DO THEY
BECOME MAGNETS FOR GRAFFITI AND
VANDALISM, BUT THEY ALSO BECOME
ARSON MAGNETS. SO THAT IS
SOMETHING FROM A PUBLIC SAFETY
STANDPOINT THAT WE ALSO NEED TO
BE VERY MUCH AWARE OF. THANK
YOU.
>> AND COUNCILMEMBER KETTLE AND
THEN I WILL CLOSE THIS OUT.
>> I QUICKLY WANTED TO SAY THANK
YOU FOR YOUR LEADERSHIP IN THE
DISTRICT AND THE COMMUNITY, IT
IS WELL KNOWN AND APPRECIATED,
MUCH LIKE I WAS SAYING, YOU ARE
A PART OF THIS OUTREACH, YOU ARE
THE EARS AND EYES ON THE GROUND
AND UNDERSTAND WHAT IS HAPPENING
AND YOU KNOW EVERYTHING THAT IS
HAPPENING IN SODO SO I REALLY
APPRECIATE THAT, PARTICULARLY ON
THE PUBLIC SAFETY SIDE OF
THINGS, YOU HAVE BEEN
INFLUENTIAL IN THAT AREA AND A
VERY IMPORTANT VOICE SO I WANTED
TO SAY THANK YOU. I RECOGNIZE
THE POINTS YOU ARE MAKING AND I
ALSO RECOGNIZE THAT SODO IS
CHANGING AND THIS CHANGE DEMANDS
THAT WE LOOK -- AND THIS GOES TO
WORKING WITH THE COUNTY AS WELL
AND UNDERSTANDING THESE PIECES
LIKE THE VACANT BUILDINGS. THESE
ARE THE THINGS, THE CHRONIC
NUISANCE PROPERTY, THESE ARE
THINGS THAT ALL THESE BILLS WE
HAVE BEEN PASSING ON PUBLIC
SAFETY, THESE ARE THE THINGS WE
BRING TOGETHER AND WE NEED TO
BRING TOGETHER FOR SODO AND I
REALIZE THE TRANSIT PIECE IS
REALLY IMPORTANT BUT IT IS
FUNNY, THE FIRST THING THAT CAME
TO MY MIND WASN'T LIGHT RAIL,
IT WAS THE WET WEATHER TREATMENT
FACILITY WHICH IN MY MIND IS
GOING TO TAKE UP SEVEN ACRES,
THAT IS MY GUESS. WE WILL SEE IF
IT IS TRUE. AND THIS IS GOING TO
HAVE AN IMPACT, IT IS HUGE FOR
WHAT IT IS MEANT TO DO BUT THE
IMPACT ON THE BIA IS GOING TO BE
SUBSTANTIAL I THINK. THESE ARE
THE THINGS THAT WE NEED TO THINK
THROUGH AND GETTING AHEAD OF IT,
COUNCIL PRESIDENT, WITH YOUR
ADVOCACY , I THINK THAT IS
REALLY IMPORTANT, SO THANK YOU.
>> YOU ARE ABSOLUTELY CORRECT,
THAT IS THE OTHER MEGAPROJECT,
AND I WANT TO BE CLEAR, WE ARE
ACTIVELY ENGAGED WITH TRANSIT
AND KING COUNTY, WE ARE HELPING
WITH COMMUNITY OUTREACH. THIS IS
NOT AN ATTEMPT TO SAY THERE'S
ANYTHING WRONG WITH THESE
PROJECTS, IT'S JUST TO
ACKNOWLEDGE THAT THEY HAVE AN
IMPACT ON THE DISTRICT AND HOW
WE MAKE SURE THAT WE MITIGATE
THAT IMPACT SO WE CAN CONTINUE
NOT ONLY TO SERVE THE BUSINESSES
IN THE DISTRICT TO DO THE WORK
WE HAVE BEEN DOING FOR SOUND
TRANSIT AND KING COUNTY WITH THE
COMMUNITY IN OUR DISTRICT.
>> I WILL SECOND THE MOTIONS OF
YOUR TREMENDOUS VALUE TO THE
COMMITTEE, YOU ARE THE GO TO
PERSON THAT SO MANY PEOPLE CALL
SO THANK YOU SO MUCH FOR ALL OF
YOUR WORK AND IT EXTENDS FAR
BEYOND SODO. JUST FOR THE PUBLIC
BECAUSE IT IS GOING TO BE A
WHILE BEFORE WE COME BACK TO
THIS, I JUST WANT TO SAY, WHY WE
ARE DOING THIS. IT IS THE FIRST
STEP IN SOLVING AN EXTREMELY
IMPORTANT AND UNIQUE PROBLEM TO
SODO BETWEEN KING COUNTY, THE
PORT OF SEATTLE, SEATTLE PUBLIC
SCHOOLS AND THE CITY OF SEATTLE
AND ESPECIALLY TRANSIT WITH THE
WEST SEATTLE LINK EXTENSION
COMING, THERE ARE GOVERNMENT
OWNED PROPERTIES IN THE BUSINESS
DISTRICT, ERIN IS DOING A GREAT
JOB TO PROVIDE SERVICES THEY
NEED , BUT BY PASSING THIS
LEGISLATION, WE REALLY KICK OFF
THAT MUCH NEEDED CONVERSATION
AND SOLUTION SO THANK YOU SO
MUCH FOR THE WORK THAT YOU DO
AND YOUR TEAM IN SODO FOR TAKING
THE INITIATIVE ON THIS ITEM. IF
THERE ARE NO FURTHER COMMENTS, I
WILL JUST LIBERATE EVERYBODY,
THANK YOU SO MUCH FOR STAYING
UNTIL THE END, LIKE I SAID, THIS
IS THE TIME OF YEAR WE TRY TO
COMPLETE ALL THE LEGISLATION IN
THE LEGISLATIVE PIPELINE SO IT
CAN GO INTO EFFECT WHEN IT
MATTERS. THANK YOU VERY MUCH FOR
COMING, JASMINE, THANK YOU SO
MUCH FOR YOUR WORK ON THIS. THIS
CONCLUDES THE AGENDA OF THE
SEPTEMBER 11th MEETING OF THE
GOVERNANCE ACCOUNTABILITY AND
ECONOMIC DEVELOPMENT COMMITTEE,
I WOULD LIKE TO NOTE THAT TODAY
IS SEPTEMBER 11th, I'M SURE WE
HAVE ALL BEEN THINKING ABOUT THE
EVENTS SO MANY YEARS AGO AND OUR
HEARTS GO OUT TO THEM AND
BEYOND, SO I JUST WANTED TO SAY,
I NOTICED THE IMPORTANCE OF
TODAY. THE NEXT COMMITTEE
MEETING IS SCHEDULED FOR
THURSDAY, DECEMBER 11th, NO
FURTHER BUSINESS. IT