City of Snoqualmie Update
Mayor Matt Larson, Oct 1, 2008
The Road Ahead…
The Ugly
Outlook Uncertain: Global, National and
Regional
Construction Inflation: 1% per month
• REET Buying Power Diminished
• City Hall, Tokul, Downtown
Redevelopment
Think Globally, Act Locally vs.
Ignore Globally = Suffer Locally
The Bad
• New Housing Sales Down 70%
• Staff Reductions
• Police Overtime & Vacation
• City Utilities
– Historical Neglect & Past Fears
– Preventative Maintenance
– Rate/Inventory Studies
– ‘09 Rates: ~9% water, ~13% sewer
The Good
• Fiscal Policies: Preparing for “The Cliff”
– Ongoing Fiscal Modeling
– Benchmark wages & benefits
– Expenses < Revenues
– Preventative Maintenance
– Create Revolving Fund
– Ongoing L.O.S. Reviews
– One-time Revenue Policies (ER&R)
– Establish Reserves (now at 30% of General Fund)
The Good
• Significant 2008 Carryover/Surplus
• 2009 Revenue Source Projections
– Utility Tax – Increasing
– Sales & B&O - Stable
– Property Tax – Stable
– One-time – Significant Drop
• Staff Reductions & Delays
– Related To Growth (Inspections)
– Attrition or Restructuring
– No Affect On Core Services
– Police L.O.S. & Overtime
2009 Capital Project Update
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New City Hall
Downtown Redevelopment
Tokul Road Roundabout
NW Railway History Center
Silva Avenue Reconstruction
Treatment Ponds
Bio-Solids Treatment Facility
Property Taxes – Why the
uproar and who is
responsible!
An investigation into the
complex basics
The Assessor
• Required by State Law to revalue all real
and personal property every four years.
• Uses last three years of market data.
• Must value property at least at 90% of fair
market value.
• Not in the control of the taxing district
The Taxing District
• Limited to 1% increase over last
years tax levy.
• Not in control of assessed valuation
but only amount of property tax
levy. ($$$)
• Not in control of other taxing
jurisdictions
Voters, aka Taxpayers
Control increases by voting:
– School Levies
– Levy Lid Lifts
– Voter approved Bond
Issues
– Authorize tax increases
through constitutional or
legal changes (I-747)
Where Does the Tax Go?
State School Fund
County
Port
City Of Snoqualmie Reg Levy
City of Snoqualmie Bond Levy
Snoqualmie School District
KC Hospital Dist #4
KC Library System
Emergency Medical Svcs
KC Flood Control
WA St Ferry
0.208
0.118
0.022
0.224
0.002
0.280
0.058
0.044
0.029
0.010
0.005
The Mechanics of the Property Tax
How does it work?
• Tax Levy
• Assessed Valuation
• Levy Rate
Tax Levy/(AV/1000) = Levy Rate
The Impact on You!
Property Tax Model…
Community Center/YMCA
Mayor Matt Larson, Oct 1, 2008
An Historic Vision
“We want every organization in
the vicinity to meet here,”
-Mill Mgr. F.R. Titcomb, 1923
“The Snoqualmie Falls Community
Hall…is a character building
organization…a place for all…a
center of social activities for the
whole community.”
-SFLC Newsletter, 1944
Old Weyerhaeuser Hall / YMCA
A Renewed Vision - 1995
“City (officials)…had…first-hand…knowledge of
the effectiveness of the Snoqualmie Falls
Community Hall, or had heard the stories from
their parents or peers. On the Planning
Commission, folks such as John McKibben,
former mayor Charles Peterson, Lee Briggs
and Gordy Mayrand were strong proponents of
a community gathering place on the Ridge and
were joined by myself, Duane Johnson, Kathy
Reed and others so that by 1988 this dream
had been conveyed to Weyerhaeuser Real
Estate Co. as a given, and accepted as a goal
for the new community.”
-Dave Battey December, 2001
Today’s Situation
• Two Bonds Have Failed
• Still Seeking Elusive Supermajority Consensus of 60%
• Over 80% of Residents Desire Some form of CC
How Did We Get Here?
Timing is Everything:
• 2002: Dot-com bust, KC Pool Crisis, Cost, Too Soon
• 2006: School Bond, Cost, Regional Pool, City Finances
Split Personality:
• 2002 Bond: Downtown, 86% no, Ridge, 52% yes
• 2006 Bond: Downtown, 79% no, Ridge, 57% yes
• Pool Supporters: Indoor vs. Outdoor vs. Recreational
vs. Competitive vs. Local vs. Regional
• Sports & Fitness vs. Social Hall & Rooms
So Why Bring It Back Now?
“The Ugly”
• Construction Costs Increasing 1% Monthly
• Mitigation $ Losing Purchasing Power
• REET $ Losing Purchasing Power
Why Not Wait Until the School Bond Passes?:
• We have waited through three attempts:
Snoqualmie: 2/07=71%, 5/07=76%, 3/08=77%
• City/SVSD Partnership
• See “The Ugly” Above
Where to From Here?
Should we include a Pool?
What are the alternatives?
Survey Preparing for 2006 Attempt
Survey Preparing for 2006 Attempt
What Does Snoqualmie Need Most?
Survey Following 2006 Attempt
Survey Following 2006 Attempt
Town Hall Mtg. Following 2006 Attempt
Conclusion:
Key to 60% majority:
1. Aquatics Element must remain
2. Cost must be reduced by 40%
How?
1. Phasing:
– “The Ugly”
– M&O Risk
2. Partnership(s)