FINANCE COMMITTEE DATE 10/09/07 AGENDA ITEM 2

CITY OF OLYMPIA Olympia, Washington FINANCE COMMITTEE October 9, 2007

SUBJECT: ORIGINATED BY: STAFF CONTACT:

Finance Committee 2008 Recommendations to Council Finance Committee Jane Ragland Kirkemo, Administrative Services Director, 753-8499 jkirkemo@ci.olympia.wa.us

REQUESTED COMMITTEE ACTION: STAFF RECOMMENDATION: DOCUMENTS ATTACHED: BUDGET IMPACT & SOURCE OF FUNDS: PRESENTERS AND OTHERS NOTIFIED:

Recommendation to full Council for future funding issues

1. Summary of Previous public outreach efforts 2. Summary of September 12, 2007 focus group

Dependant on option(s) chosen Jane Ragland Kirkemo, Administrative Services Director Larry Dibble, Fire Chief Linda Oestreich, Parks, Arts, and Recreation Director The Finance Committee work plan for 2007 included discussing a financial strategy to address funding needs each month. The committee has scheduled to discuss their options and recommendations with the full council in November as a part of the 2008 Budget process. The September 12th focus group was just one more public outreach prior to recommendations to the full council. Previous outreach efforts have included: January 2007 – Town Hall Meeting December 2006 – TV production on Olympia Budget issues November 2005 – Two focus groups Summer 2005 – Expanded Finance Committee Public Review of Budget Summer 2005 – Constrained Prioritization Process November 2004 – Public online budge calculator 1

BACKGROUND:

May 2004 – Four public meetings using an opinionaire Summer/Fall 1999 – Five to six public meetings developing the City’s Long Term Financial Strategy (LTFS) Through all of these public processes the message of what citizens want has been consistent. How much they are willing to pay for the services varies significantly. ANALYSIS AND OPTIONS: There are various considerations to review before making a recommendation to the Council. There are several options for a levy lid lift some require going to voters in the Primary or General election. On a state wide basis more voters approve a Fire issue than anything else. Jails and streets issues are the least successful. More issues pass in the month of March than any other month (May is the least successful). Typically you don’t want to go to the voters any more frequently than every 2 years, In all of our citizen surveys, Parks and Public Safety ranked very high. In the recent focus group 90% said they would support a tax increase to renovate Percival Landing and 68% to build a 4th fire station. One outcome from the September focus group was our Voters are not willing to support a tax increase for transportation projects. An excess levy requires 60% voter approval and a levy lid lift requires only 50%. What effect do rate increases for utilities, TBD, and impact fees have on citizens’ willingness to support other issues? In addition to excess levy and levy lid lifts, the City has available an increase to the Business & Occupation tax and Transportation Benefit Districts (TBD). Should be committee recommend these funding options? What is the effect of placing two items on one ballot? Would voters be more likely to vote “No” on both issues? Is staff ready to place any item on a 2008 ballot? During the meeting the Committee will discuss options for future ballot/revenue issues.

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