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HomeMy WebLinkAbout2022.10.24 Council Workshop PacketAGENDA City Council Workshop Meeting 7:15 PM - Monday, October 24, 2022 City Council Chambers & GoToWebinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - The Pasco City Council Workshops are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. To listen to the meeting via phone, call (631) 992-3211 and use access code 613-585-088. 2. CALL TO ORDER 3. ROLL CALL 4. VERBAL REPORTS FROM COUNCILMEMBERS 5. ITEMS FOR DISCUSSION 3 - 47 (a) Visit Tri-Cities 2022 Mid-Year Report & Tri-City Regional Hotel/Motel Commission 2023 Marketing Plan & Budget Presentation by Kim Shugart, Senior Vice President, Visit Tri-Cities 48 - 67 (b) Presentation of 2023 Legislative Priorities Presentation by Briahna Murray, Vice President, Gordon Thomas Honeywell Governmental Affairs 68 (c) Presentation of 2023-2024 Biennial Budget Presentation of the City of Pasco 2023-2024 Biennial Budget 69 - 81 (d) Resolution - Argent Road Phase 1 Project Acceptance 6. MISCELLANEOUS COUNCIL DISCUSSION 7. EXECUTIVE SESSION Page 1 of 83 8. ADJOURNMENT 9. ADDITIONAL NOTES 82 - 83 (a) Adopted 2020-2021 Council Goals (Reference Only) b) REMINDERS Monday, October 24, 4:00 PM: Hanford Area Economic Investment Fund Advisory Committee Meeting – Ben Franklin Transit Main Conference Room COUNCILMEMBER PETE SERRANO, Rep.) Tuesday, October 25, 3:30 PM: Pasco Public Facilities District Board Special Meeting & Workshop – Pasco City Hall, Conference Room 5 (MAYOR PRO TEM CRAIG MALONEY, Rep.; COUNCILMEMBER DAVID MILNE, Alt.) Wednesday, October 26, 7:30 AM: Visit Tri-Cities Board Meeting – 7130 W. Grandridge Blvd., Kennewick COUNCILMEMBER ZAHRA ROACH, Rep.; COUNCILMEMBER DAVID MILNE, Alt.) Thursday, October 27, 5:30 PM: Benton Franklin Community Action Connections Board Meeting – 720 Court Street, Pasco (COUNCILMEMBER ZAHRA ROACH, Rep.; COUNCILMEMBER PETE SERRANO, Alt.) This meeting is broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive. Audio equipment available for the hearing impaired; contact the Clerk for assistance. Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días antes para garantizar la disponibilidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) Page 2 of 83 AGENDA REPORT FOR: City Council October 18, 2022 TO: Dave Zabell, City Manager City Council Workshop Meeting: 10/24/22 FROM: Adam Lincoln, Deputy City Manager Executive SUBJECT: Visit Tri-Cities 2022 Mid-Year Report & Tri-City Regional Hotel/Motel Commission 2023 Marketing Plan & Budget I. REFERENCE(S): Visit Tri-Cities 2022 Mid-Year Report 2023 Marketing Plan & Budget PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation by Kim Shugart, Senior Vice President, Visit Tri-Cities III. FISCAL IMPACT: Total TCRHMC 2023 budget of $2,050,000 with City of Pasco share of 430,500. IV. HISTORY AND FACTS BRIEF: Visit Tri-Cities provides services to the City of Pasco for promotion, attraction and encouraging tourist expansion, and has done so for as far back as 1972. Visit Tri-Cities administers the operation of what is known as the Tri-City Regional Tourism Promotion Area (TPA), which was formed by an interlocal agreement (ILA) among the Cities of Pasco, Kennewick, and Richland in June 2004. The TPA administers the proceeds of a "per room night assessment" on hotels/motels in the Tri-Cities, imposed by the hotels themselves and Visit Tri- Cities oversees its marketing plan and operating budget. The TPA "assessment" is remitted by the hotels to the State. Washington State, in turn, distributes those funds to the city in which it was collected. Pasco City Page 3 of 83 Council's approval of the funds to the TPA are in accordance with an approved budget, which is a requirement. V. DISCUSSION: Kim Shugart, Senior Vice President of Visit Tri-Cities will first present the Visit Tri-Cities 2023 Mid-Year Report and then provide a brief overview of the proposed 2023 TPA Marketing Plan and Operating Budget as recommended by the Tri-City Regional Hotel/Motel Commission (TCRHMC). The 2023 TPA Marketing Plan and Operating Budget is scheduled for the November 7, 2022, Council meeting for action by the Council. Page 4 of 83 Tri-Cities Regional Hotel-Motel Commission 2023 BUDGET AND MARKETING PLAN Page 5 of 83 VISION Inspire wanderlust for a bold yet casual, geeky but cool, magical experience in wide-open spaces. MISSION We make the Tri-Cities bigger, bolder, brighter, better and more cool through tourism. 2 Page 6 of 83 Please Note: The attached document reflects only those programs and costs associated with Tourism Promotion Area TPA) funding. Visit Tri-Cities manages many other aspects of tourism development, which are funded by hotel and lodging taxes and membership investment. Such programs include, Rivershore Enhancement, Media Outreach, Visitor Services and Member Development. Tourism Promotion Area Marketing Plan prepared by Visit Tri-Cities for: CITY OF KENNEWICK CITY OF PASCO CITY OF RICHLAND 3 Page 7 of 83 INTRODUCTION The Tri-City Hotel Motel Commission, established in 2004, was created through an interlocal agreement between the Cities of Kennewick, Pasco, and Richland. The agreement allows for the collection of a tourism promotion assessment, currently $3, for each night a guest stays in a hotel. The proceeds of the fees collected within the tourism promotion area are used to bolster efforts to increase tourism spending in the region. The assessment complements the two other sources of financial support for Visit Tri-Cities, hotel-motel lodging tax and membership dues. The interlocal agreement specifically outlines that the proceeds from the assessment are intended to supplement these funding sources, not replace, or become a substitute for them. The assessment was enacted by a vote of those businesses (hotels) that have the fees levied on their products and the model works well because the tourism marketing efforts are supported by a collaboration between the industry, the cities and individual member investors. In 2023 the proceeds from the tourism promotion assessment are projected to meet or exceed $2,050,000. The funds are used for advertising across multiple mediums: traditional print, television, digital, social and backyard marketing tactics. Staffing for marketing, convention and sports sales, media outreach and production are also covered by this source of revenue. Perhaps the most popular” use of the proceeds is the Tourism Promotion Opportunity Fund, whereby groups are incented to book their events in the Tri-Cities and receive financial support based on the number of hotel rooms they require. Perhaps the only drawback of a tourism promotion assessment is that funding is directly tied to each and every (with a few exceptions) hotel room sold in the region, and the fluctuations in travel, even seasonality can make predicting, and therefore budgeting, tenuous. Take 2020 for example, when travel came to a startling halt in March and remained almost non-existent through the end of the year. The interruption to revenues generated by the assessment was swift and severe. Thankfully, Visit Tri-Cities went into this period with a healthy TPA Reserve Account, which underlines the importance of the need for a well-funded reserve balance and the ability to remain nimble to change directions quickly if required. The following pages outline the detailed plan for 2023. We are excited about the year ahead and the continued importance of the tourism economy to the Tri-Cities community. 4 Page 8 of 83 ACKNOWLEDGMENTS We greatly appreciate the time and dedication of our city partners and hoteliers who meet monthly to provide Visit Tri-Cities with support and direction on how to invest the proceeds from the tourism promotion assessments collected in Kennewick, Pasco, and Richland. TRI-CITY REGIONAL HOTEL-MOTEL COMMISSION KENNEWICK Mark Blotz, Clover Island Inn Nickolas Woody, Inn at Columbia Center Marie Mosley, Ex Officio, City of Kennewick PASCO Monica Hammerberg, Hampton Inn & Suites Pasco / Tri-Cities Jerry Beach, A1-Hospitality Dave Zabell, Ex Officio, City of Pasco RICHLAND Linda Hendricks, Hampton Inn Richland Lacey Stephens, Home2 Suites Jon Amundson, Ex Officio, City of Richland The Tourism Promotion Area is Managed by Visit Tri-Cities 5 Page 9 of 83 6 TABLE OF CONTENTS Introduction 4 Acknowledgments 5 Tourism Outlook 7-8 Competitive Situation Analysis 9-10 2023 Group Sales Initiatives 11 Meetings and Conventions 12-13 Sports and Tournaments 14-15 Tourism Development 16-17 DMO Funding Comparative 18-20 Visit Tri-Cities TPA Budget 21 Page 10 of 83 RevPAR Compared to 2019 - 17%+6%+13% +18% NATIONAL OUTLOOK Occupancy ADR RevPAR 57.6% 125 72 63.4% 145 92 65.1% 150 98 66.4% 155 103 PROJECTED U.S. HOTEL KEY PERFORMANCE METRICS* 2021 Actual 2022 Forecast 2023 Forecast 2024 Forecast 66.1% 131 87 2019 Actual TOURISM 2023 7 The forecast for nationwide growth in the hospitality industry closely mirrors what the Tri-Cities has experienced in the last twelve months. Recently STR, widely recognized as the authority on tourism economics, upgraded the recovery timeline for U.S. hotel revenue per available room (RevPAR). The metric is now expected to surpass 2019 levels in 2022, according to the latest forecast presented in June at the 44th Annual NYU International Hospitality Industry Investment Conference. Both demand and occupancy have performed as expected in the previous forecast provided by STR, but “pricing continues to exceed expectations due to the influence of inflation as well as the economic fundamentals supporting increased guest spending,” said Amanda Hite, STR’s president. “This latest forecast acknowledges the risk of a light recession with no anticipation of mass layoffs and household finances in a strong position to mitigate recession impacts. The traveling public is less affected by recession, and right now, we are forecasting demand to reach historic levels in 2023 as business travel recovery has ramped up and joined the incredible demand from the leisure sector.” Of course, we must recognize that profitability has only started hitting 2019 levels recently due to concerns that persist around the cost of labor and services. The other important factor to consider is the popularity of home sharing and the use of products like Airbnb, HomeAway, Homestay and CouchSurfing. In 2014 revenues for this subset of the hospitality industry were 15 billion, in 2025 they are projected to reach $335 billion; and while these hospitality choices still allow for increased visitor spending in communities, the trends do indicate that there are changes to the visitor economy underway. In fact, 74% of millennials have used vacation rental housing for business travel, while only 20% of baby boomers have joined this trend. STR May 2022 Forecast Page 11 of 83 8 LOCAL OUTLOOK The local hospitality market is not without challenges. Labor shortages and increased costs on goods and services have created havoc, just as tourism related businesses are striving to recover from pandemic induced travel bans and restrictions of public gatherings. This is not uncommon across the country, but in the Tri-Cities where Darigold is scheduled to open a new plant in the fall of 2023 requiring 1,000 workers, just on the heels of Amazon’s previously delayed project, now set to open in the spring of 2023, providing an additional 1,500 new jobs; finding staff to cover housekeeping, front desk and food service is a concern. However, the reduction of hotel room supply coupled with a strong demand created by business, leisure and sports travelers have created an enviable position for hoteliers. Through the first six months of 2022 the Tri-Cities, particularly Richland, is leading the state in occupancy rates, and ranks third in the state in percentage of RevPar growth to prior year. The Sports market is expected to remain a strong contributor to group business in 2023. The recent investments in facilities being made by each of the cities will allow for expansion of new markets. In Richland the 30-acre West Village Community Park includes eight pickleball courts, three multi-use fields, a softball field and a basketball court. Groundbreaking is anticipated for late Fall 2022. In Pasco, The A Street Sports Complex, will include 10 multi-use fields mostly for soccer, lacrosse, rugby, or ultimate Frisbee use. The first phase should be complete in the spring of 2023 with full build-out in 2025. And in Kennewick, the city is investing $1.3 million to add 15 new pickleball courts to Lawrence Scott Park. Convention group business is and will be a little slower to return to pre-pandemic levels. Although people’s desire to meet face to face continues to be a basic human need, the logistics of conventions and corporate meetings have been forever changed. Technology allows for productive exchange of information and is cheaper and more efficient than traveling to a multi-day conference. Conferences and events will continue to take place, but the size will be reduced, and delegates may take fewer trips as hybrid solutions are offered. The competition to host conventions is fierce and many communities have invested in new or increased the offerings at public meeting facilities. 2022 PERFORMANCE JANUARY - JUNE* OCC ADR RevPar RevPar vs Prior Year SEATTLE SPOKANE TACOMA TRI-CITIES VANCOUVER YAKIMA 60.6% 60.3% 58.5% 65.7% 66.8% 54.5% 176 133 122 110 121 104 72.09 80.41 71.14 72.09 81.22 56.71 145% 56.5% 40% 52% 30.4% 31% STR June 2022 Destination Report Page 12 of 83 COMPETITIVE SITUATION ANALYSIS In order to promote the Tri-Cities as a preferred destination for group, business and leisure travelers, it is important to recognize both the strengths and challenges within our community and to set sales strategies accordingly. CONVENTION AND SPORTS Destination Strengths Variety of hotels and brands Positive relationship between Visit Tri-Cities, hotels and meeting venues Three Rivers Convention Center and HAPO Center Unique offsite event venues i.e., wineries, museums, etc.) Ample complimentary parking available Sports facility infrastructure Strong Sports Council Opportunity funds available Amenities and attractions that appeal to convention groups (i.e., wine experiences, outdoor recreation, etc.) Centrally located in the Pacific Northwest and favorable weather conditions Destination Challenges Lack of hotels capable of 150+ room block Lack of resort-style hotels with ample meeting space Meeting venues with larger meeting space in competing locations Limited number of meeting rooms and exhibit space available under one roof Number of hotel rooms within walking distance of Convention Center/large facilities The number of hotel rooms available to groups due to hotels converting to apartments Competing locations have expanded or have plans to expand their Convention Centers Lack of sports officials Lack of family friendly attractions pending the opening of the Pasco Aquatics Center Competing locations have newly developed indoor/outdoor multi-use sports facilities with state-of-the-art amenities Distance from I-5 corridor vs. competition LEISURE TRAVEL Destination Strengths Heart of Washington Wine Country Water2Wine Cruise Agritourism assets: farmers’ markets and festivals Development of wine assets such as Columbia Gardens Addition of new public market, Public Market at Columbia River Warehouse Popularity of outdoor recreation/wide open spaces Trail systems Weather Water recreation STEM tourism assets Travel writer outreach Easy three hour drive from I-5 corridor destinations Consumer sentiments about driving vs flying for travel Destination Challenges Weak reputation as a wine destination vs Walla Walla or Woodinville Seasonal demand Mountain & snow winter driving from key drive markets Perceived lack of family activities Heavy weekend traffic on I-90 Price of airfare/inconvenience of air travel No centralized downtown area Lingering travel safety concerns due to COVID 9 Page 13 of 83 COMPETITIVESITUATIONANALYSIS BUSINESS TRAVEL Destination Strengths Less price sensitive for airfare and hotels Mid-week demand complements weekend and convention groups Recently expanded Tri-Cities Airport • Direct flights from Denver, Salt Lake City, Seattle, Mesa/Phoenix, San Francisco, Minneapolis and Burbank Destination Challenges Destination choice not influenced by sales and marketing efforts Mostly mid-week travel Popularity of Zoom meetings, reducing in person meetings and travel Business travel reductions due to Covid-19 Very dependent on Hanford business trends CONVENTION BOOKINGS CONVENTIONS CANCELLED DUE TO COVID SPORTS BOOKINGS GUESTROOM PRODUCTIVITY SPORTS CANCELLATIONS TOTAL 18,953 25,978 10,057 2020 ACTUAL 23,765 20,733 8,997 7,251 15,483 2021 ACTUAL 475 16,754 18,000 805 20,000 2022 FORECAST 0 37,195* 20,000 0 25,000 2023 BUDGET 0 45,000* RFP PRODUCTIVITY QTR 1 QTR 2 QTR 3 QTR 4 TOTAL 23 22 36 2021 39 120 40 44 40* 2022 56* 180* 45* 52* 62* 2023 71* 230* LEADS ISSUED Estimated Production 20,955 25,085 2019 ACTUAL 46,040 60 18 18 2020 15 111 40 64 74 2019 87 265 10 Page 14 of 83 QUARTER4QUARTER3QUARTER2 2023 GROUP SALES INITIATIVES JANUARY - MARCH Host Sports Planner Customer Event in Portland Launch ad campaign on PlayEasy Customer Event in Olympia Olympia Sales Blitz Establish quarterly meeting planner e-newsletter, similar to Your Weekend Starts Here MPI Cascadia Conference Launch digital ads targeting MPI attendees Launch meeting planner incentive package APRIL - JUNE Customer Event at ETA Event Symposium E-Sports Conference Washington Society of Association Executives Convention Society of Government Meeting Planners event Ad campaign targeting WSAE Members Launch first time sports event incentive JULY - SEPTEMBER Sports Relationship Conference Publish Sports Facilities Map Host Customer Event for Tri-Cities Sports Council Convention and corporate sales mission to Seattle/Greater Puget Sound Region Host Super FAM event for meeting planners OCTOBER - DECEMBER TEAMS Conference US Sports Conference Launch digital ads targeted at TEAMS and US Sports Congress attendees Direct mail Remember Tri-Cities” gift Olympia Sales Blitz QUARTER 1 11 Page 15 of 83 MEETINGS & CONVENTIONS 2023 ACTIONS SALES BLITZES Develop two separate multi-day sales blitzes in Spring (Olympia) and Fall (location to be determined). CUSTOMER EVENTS Organize meeting planner customer luncheon in the spring to promote the Tri-Cities as a destination. Event to be held in conjunction with Spring Sales Blitz. MEETING PLANNER FAM TOURS Host qualified meeting planners for individual and group, customized FAM tours. RELATIONSHIPS Continue staff attendance at Washington Society of Association Executives (WSAE) and Meeting Professionals International MPI) Washington Chapterand Professional Convention Management Association (PCMA) monthly/quarterly meetings to strengthen relationships with key meeting planners. Staff will continue to serve on the WSAE Convention Planning committee. Staff will continue to serve on industry boards and committees such asWSAE, WTA and SGMP. Renew Diamond Level enhanced listing with Cvent. ADVERTISING Digital campaigns of industry tradeshows and site campaigns of meeting professionals by geographic location. MEETING INCENTIVES Utilize the opportunity fund specifically to offset costs for new group business and groups that block more than 300 rooms per night city-wide. Create meeting planner incentives and develop a “deals” page outlining any hotel sponsored incentives. REGIONAL/STATE/NATIONAL CONFERENCES AND TRADESHOWS Attend Washington Society of Association Executives (WSAE) and Meeting Professionals International (MPI) Cascadia Annual Conferences. Participate in additional sponsorship opportunities at each of these events for increased exposure. SKYNAV AND KUULA Convention sales department will leverage the SkyNAV and Kuula platforms to promote Tri-Cities and meeting venues to convention professionals. The interactive tour highlights points of interest with image galleries, videos and information to assist meeting planners in selecting the Tri-Cities for their events. The tour link will be included with all electronic proposal packets, digital Meeting Planner Guide as well as communications to meeting groups. 20,000 GUEST ROOMS BOOKED 5,250,000 ESTIMATED ECONOMIC IMPACT 2,600,000 ESTIMATED DIRECT HOTEL SPENDING 12 Page 16 of 83 CONVENTION SALES PROGRAM TOTAL: 73,569 ADVERTISING MPI site retargeting campaign: $8,450 (Jan) Cvent Diamond Listing: $9,700 (Sept) Digital targeting campaigns of industry tradeshows: 6,000 ($500 per month) Cvent retargeting campaigns: $12,000 (April) Total: $36,150 TRAVEL Mileage for site inspections when VTC mobile is not available: $480 ($40 per month) Washington Society of Association Executives, attend one association meeting: $500 (Oct) Meeting Planners International Annual Convention: 600 (March) (hotels and meals) Olympia Spring Sales Blitz: $2,500 (March) 500 per staff x 5) Fall Sales Blitz: $2,000 (Oct) 500 per staff x 4) WSAE Convention: $800 (June) hotels, meals, travel at $400 per staff x 2) Continuing education courses: $8,000 March and July) (hotels, meals, flight at $2,000 per session per staff member x 4) Society of Government Meeting Professionals Winter Workshop: $300 (Feb) (hotel, meals, travel) Total: $15,180 TRADE SHOWS Meeting Planners International (MPI) registration for hosted buyer program: $1,100 (Jan) MPI Conference Sponsorship: $1,000 (Feb) Washington Society of Association Executives Conference Registration: $450 (May) WSAE Conference Sponsorship: $1,775 (May) National trade show targeted at meeting planners, travel media and travel advisors: $1,000 (March) Total: $5,325 STAFF DEVELOPMENT CE training courses: $4,000 Feb, March, July) ($1,000 registration per staff x 4) Total: $4,000 PROMO ITEMS Amenities: $800 (Feb, Aug) Logo’d items: $700 (Feb, Aug) Total: $1,500 DUES AND SUBSCRIPTIONS WSAE Sapphire Level Sponsorship: $2,550 (Jan) WSAE dues: $690 (June) ($345 per staff x 2) Meeting Planners International: $495 (Dec) Society of Government Meeting Professionals: 400 (April) Professional Conference Management Association: 485 (Nov) National Tour Association: $700 (Feb) Religious Conference Management Association Dues : 195 (July) Military Reunion Network: $699 (May) DI MINT subscription: $5,200 (Jan) Total: $11,414 ADVERTISING 49% TRAVEL 21% TRADE SHOWS 7% STAFF DEVELOPMENT 5% PROMO ITEMS 2% DUES AND SUBSCRIPTIONS 16% 13 Page 17 of 83 3 SPORTS AND TOURNAMENTS 25,000 GUEST ROOMS BOOKED 7,187,500 ESTIMATED ECONOMIC IMPACT 3,125,000 ESTIMATED DIRECT HOTEL SPENDING 2023 ACTIONS SPORTS COUNCIL Organize and administer activities for theTri-Cities Sports Council. ADVERTISING Place print and digital advertising as appropriate in publications such as: Sports Events, Sports Destination Management and Sports Planning Guide. SALES BLITZ Conduct sales calls in the Portland or Seattle metropolitan areas in February. PROMOTE RESOURCES Update the sports facilities guide, provide e-version and QR code links for consumer access. VIRTUAL TOURS SkyNav and Kuula tour links will be promoted in our communications to sports groups. SkyNav and Kuula allows tournament directors to experience the Tri-Cities virtually and the ability to see first-hand the venues, amenities, attractions and accommodations thatwould be available to their teams. The interactive tours highlight points of interest with image galleries, videos and information to aid tournament directors in understanding the advantages of selecting the Tri-Cities. OPPORTUNITY FUND Utilize the opportunity fund specifically to offset tournament costs for groups that block more than 300 rooms per night city-wide. TRADESHOWS Promote the Tri-Cities as apremier sports destination at National Tradeshow Events such as TEAMS, S.P.O.R.T.S. Relationship, US Sports Congress and SportsETA. CUSTOMER EVENTS Sponsor event at annual national sports tradeshows, such as TEAMS and Sports ETA Symposium. In addition, host customer event luncheon in conjunction with the Sales Blitz in February. BIDDING FEES Bid on new regional/national level tournaments that demand bidding fees to host events. NEW BUSINESS With the addition of new pickleball courts in the Tri-Cities, staff will continue to research and focus on pursuing major pickleball tournaments. 14 Page 18 of 83 SPORTS PROGRAM TOTAL: 96,670 ADVERTISING Miscellaneous ads to support tournaments: $925 Jan: $100, March: $150, May: $325, Nov: $200, Dec: $150) Sports Events Magazine featured listing: $1,000 (Dec) Sports Planning Guide site inspection feature: $2,000 (July) Playeasy platform destination spotlight: $3,250 Printed Sports Facilities Map: $600 (Jun) Total: $7,775 BIDDING FEES USTA Tennis Championships: $5,000 (Aug) National Association of Intercollegiate Athletics, Softball Opening Rounds: $5,000 (May) B.A.S.S. Nation: $15,000 (July) Total: $25,000 TRAVEL Sports ETA Symposium: $2,840 (May) 1,420 per staff x 2; hotel: $180 x 4 = $720, airfare: 575, meals: $125) TEAMS Conference: $3,490 (Oct) 1,745 per staff x 2; hotel: $180 x 4 = $720, airfare: 875, meals: $150) S.P.O.R.T.S - Relationship Conference: $1,745 (Sept) hotel: $180 x 4 = $720, airfare: $875, meals: $150) US Sports Congress: $1,800 (Dec) hotel: $950, airfare: $700, meals: $150) EsportsTravel Summit: $1,490 (June) hotel: $180 x 3 = $540, airfare: $800, meals: $150) Sports Sales Blitz/Customer Event: $1,120 560 per staff x 2; hotel $180 x 2 = $360, meals: $125, fuel: $75) Staff development, continuing education travel: $4,000 May, July) ($2,000 per staff x 2) Mileage for site inspections when VTC mobile is not available: $300 Total: $16,785 TRADE SHOWS TEAMS Conference: $12,750 (Feb) two staff members: $2,750, TEAMS Conference sponsorship: $10,000) EsportsTravel Summit registration: $3,000 (Feb) S.P.O.R.T.S Relationship Conference: $6,025 (March) registration: $1,500, sponsorship: $4,525) Sports ETA Symposium: $12,790 (Dec) (registration for two staff members: $2,790, sponsorship: $10,000) US Sports Congress registration: $3,150 (April) Total: $37,715 STAFF DEVELOPMENT Continuing Education Training Courses: $2,000 May and July) ($1,000 registration per staff x 2) Total: $2,000 PROMO ITEMS Sports Amenities: $1,200 (April: $600 and Sept: $600) Total: $1,200 DUES AND SUBSCRIPTIONS Sports ETA Membership: $1,195 (Dec.) Total: $1,195 PLATFORM FEES Playeasy Digital Platform: $5,000 (March) Total: $5,000 BIDDING FEES 26% TRAVEL 17% TRADE SHOWS 39% STAFF DEVELOPMENT 2% PROMO ITEMS 1% DUES AND SUBSCRIPTIONS 7% ADVERTISING 8% PLATFORM FEES 5% 15 Page 19 of 83 TOURISM DEVELOPMENT 2023 ACTIONS WEBSITE The Visit Tri-Cities website, VisitTri-Cities.com, is the foundation of the organization’s marketing efforts as all campaigns “call to action” direct users to the website. The website has been redesigned and augmented with new technology, such as an itinerary builder and Crowdriff user generated content platform) and SkyNav (virtual 360 tour) to enhance the visitor experience. Website content is continually optimized to ensure a first-rate visitor experience when trip planning. PROMOTE THE DESTINATION Promote increased leisure travel through development of a cohesive year-long campaign targeting wine aficionados, foodies, golfers, outdoor adventurers, multi-generational families and STEM enthusiasts. The campaigns will be geographically focused on metropolitan areas that are within a 300-mile radius of the Tri-Cities, primarily the Puget Sound and Greater Spokane. TRAVELTRADE SHOWS Target wine enthusiasts atconsumer-focused wine andfood events such asTaste Washington to increase destination awareness as a world-class wine region. MATERIALS Develop compelling marketing materials including, but not limited to, Official Tri-Cities Visitor Guide and wine map. Publications will beavailable online as many visitors access information digitally, andconsumers are increasingly aware of environmental impacts and concerns of public health. Additionally, digital publications may be updated at-will, which benefits the visitor as well as tourism-based businesses and attractions. ADVERTISE Digital and social media advertising are theprimary marketing tactics, with complementing print and broadcast advertising campaigns. The advertising budget calls for a flexibility in target not only seasonal needs but to reach a targeted audience that is most likely tovisit theTri-Cities. SOCIAL MEDIA Social media are ever evolving marketing tools that can be used to connect and engage potential visitors. Visit Tri-Cities will promote the destination through Tri-Cities, WA (30,968 followers) on Facebook, as well as through Instagram and Twitter. In 2023 we will increase social content with compelling photos and video, and engage with popular platforms (e.g. TikTok) to boost engagement. 16 TECHNOLOGY We will continue to lead the industry in technology and improve visitor experience by investing in programs and platforms: TrueOmni Digital Kiosks (touchscreen information centers with itinerary builders) Bandwango (visitor passes and packages) SkyNav (virtual 360 tours of community attractions) Kuula (virtual site inspections for meeting and sports facilities) TRI-CITIES WINE TOURISM COUNCIL Visit Tri-Cities staff provides management and leadership for the Tri-CitiesWine Tourism Council, which works on marketing projects designed to increase wine tourism. PACKAGES Work with member hotels to showcase their existing packages to travel media and on theVisit Tri-Cities website. SEGMENTED CONSUMER NEWSLETTERS User generated content on the website and social media channels will be supplemented seasonal consumer newsletters targeted to interest groups (outdoor recreation, wine, science) tocompel readers to planleisure travel to the region. TRI-IDEAS Visit Tri-Cities will continue to highlight, share and celebrate the diversity of the Tri-Cities that can be experienced through travel and tourism activities. Page 20 of 83 TOURISM DEVELOPMENT TOTAL: 501,810 ADVERTISING WTA State Official Visitor Guide: $7,500 (Nov) Cohesive multi-channel campaign to include a mix of broadcast television, digital and social ads targeting leisure travelers in the geographic markets of the Puget Sound Region and Greater Spokane throughout 2023: $400,000 47,000 Jan/Feb/March, $165,000 Apr/May/June, 145,000 July/Aug/Sept, $43,000 Oct/Nov/Dec) Total: $407,500 TRAVEL Tri-Cities Wine Tourism Council: $1,200 (Mar, Sept) 600 each show for 1 staff member) Continuing education courses: $10,000 (Mar, May, and Sept) (hotel, meals and travel at $2,000 per session per staff member x 5) Spokane Golf & Travel Show: $1,400 (Feb) ($700 per staff member for hotel, meals and travel x 2) Total: $12,600 TRADE SHOWS Spokane Golf & Travel Show exhibit fees: $1,300 (Oct) Taste Washington is expected to return in 2023 Total: $1,300 WEBSITE/INTERNET MARKETING Invest in Search Engine Optimization for new website: SEO Package: $36,000 (Jan, April, July, Oct) 9,000 a quarter) Total: $36,000 COMPUTER LICENSING FEE: Website Hosting Fee: $25,000 (March, June, Sept, Dec)($6,250 a quarter) iDSS: $9,000 (March, June, Sept, Dec) 2,250 per quarter) Blue Buzzard: $1,560 ($130 monthly) Total: $35,560 STAFF DEVELOPMENT Continuing Education Training Courses: $5,000 March, May, July, Sept) ($1,000 registration per staff member x 5) Total: $5,000 PROMO ITEMS Registration Bags: $1,450 (Feb) Logo’d Swag: $2,400 (April, Aug) Total: $3,850 17 ADVERTISING 81% TRAVEL 3% TRADE SHOWS 0.3% 7% COMPUTER LICENSING 7% STAFF DEVELOPMENT 1% PROMO ITEMS 0.8% WEBSITE/INTERNET MARKETING Page 21 of 83 OVERALL BUDGET YAKIMA VALLEY DESTINATION MARKETING ORGANIZATION (DMO) FUNDING COMPARATIVE The following chart provides historical look at a total budget comparative (including Hotel Motel Tax, Membership Investments and Tourism Promotion Assessment) in key competitive markets. 18,000,000 12,000,000 6,000,000 0 HOTEL-MOTEL TAX INVESTMENTS The following chart provides historical look at hotel-motel tax investments in key competitive markets. 3,000,000 2,250,000 1,500,000 750,000 0 17,515,652 6,538,482 3,591,000 1,800,000 $1,200,000 SEATTLE SPOKANE SEATTLE SOUTHSIDE TRI-CITIES 3,470,000 YAKIMA VALLEY VANCOUVER WALLA WALLA 0 SEATTLE SPOKANE SEATTLE SOUTHSIDE TRI-CITIES TACOMA VANCOUVER WALLA WALLA 2,326,474 0 1,800,000 724,000 $700,000 800,000 18 3,600,000 TACOMA 3,041,133 685,233 Page 22 of 83 YAKIMA VALLEY DESTINATIONMARKETING ORGANIZATION (DMO) FUNDINGCOMPARATIVE TPA BUDGET The following chart provides historical look at a tourism promotion assessments in key competitive markets. 10,000,000 7,500,000 5,000,000 2,500,000 0 8,753,619 2,194,438 3,578,4000 2,050,000 $ 1,500,000 $1,650,000 1,100,000 400,000 SEATTLE SPOKANE SEATTLE SOUTHSIDE TRI-CITIES TACOMA VANCOUVER WALLA WALLA 19 Page 23 of 83 DESTINATION MARKETING ORGANIZATION (DMO) FUNDING COMPARATIVE APPENDIX Visit Seattle $17,515,652 14,565 $1,203 Visit Spokane & Sports Commission $6,538,482 7,169 $912 Seattle Southside Tourism Authority $3,591,000 9,394 $382 Visit Tri-Cities $3,041,133 3,670 $829 Travel Tacoma $3,600,000 7,000 $514 Yakima Valley Tourism $3,470,000 3,063 $1,133 Visit Vancouver USA $1,800,000 3,332 $540 Walla Walla Tourism $1,200,000 987 $1,216 COMPETING CITY DMO BUDGET NUMBER OF HOTEL ROOMS SPENT PER ROOM The following chart provides historical look at a total budget comparative (including Hotel-Motel Tax, Membership Investments and Tourism Promotion Assessment) in key competitive markets. The following chart provides historical look at hotel-motel tax investments in key competitive markets. Visit Seattle $0 14,565 $0 Visit Spokane & Sports Commission $2,326,474 7,169 $325 Seattle Southside Travel Authority $0 9,394 $0 Visit Tri-Cities $685,233 3,670 $187 Travel Tacoma $1,800,000 7,000 $257 Yakima Valley Tourism $724,000 3,063 $236 Visit Vancouver USA $700,000 3,332 $210 Walla Walla Tourism $800,000 752 $1,064 COMPETING CITY HOTEL-MOTEL TAX NUMBER OF HOTEL ROOMS SPENT PER ROOM The following chart provides historical look at a tourism promotion assessments in key competitive markets. Visit Seattle $8,753,619 14,545 $601 Visit Spokane & Sports Commission $2,194,438 7,169 $306 Seattle Southside Tourism Authority $3,578,400 9,394 $381 Visit Tri-Cities $2,050,000 3,670 $559 Travel Tacoma $1,500,000 7,000 $214 Yakima Valley Tourism $1,650,000 1,858 $888 Visit Vancouver USA $1,100,000 3,332 $330 Walla Walla Tourism $400,000 752 $532 COMPETING CITY TPA NUMBER OF HOTEL ROOMS SPENT PER ROOM VISIT TRI-CITIES 2022 TPA BUDGET 20 Page 24 of 83 5010 Salaries $696,526.00 $682,444 $774,811 78,285 $92,367 5012 401k $33,527.00 $24,826 $38,741 5,214 $13,915 5015 Health Insurance $101,558.00 $102,481 $137,688 36,130 $35,207 5030 Payroll Taxes $58,508.00 $62,441 $75,157 16,649 $12,716 5035 Accounting Services $24,747.00 $24,744 $24,747 0 $3 5050 Telephone & Toll free $7,500.00 $6,844 $7,000 -500 $156 5060 Office Expense $9,000.00 $9,141 $9,000 0 $(141) 5070 Office Insurance $6,000.00 $5,198 $6,000 0 $802 5080 Postage $4,000.00 $2,861 $3,000 -1,000 $139 5090 Equipment Upkeep $22,000.00 $19,399 $20,000 -2,000 $601 5092 Visit Mobile $3,660.00 $3,048 $3,600 -60 $552 5095 Capital Expenditures $15,000.00 $15,628 $15,000 0 $(628) 5100 Office Rent $63,000.00 $41,390 $45,500 -17,500 $4,110 5105 Legal/Professional $2,500.00 $1,500 $2,500 0 $1,000 5110 Dues & Subscriptions $7,200.00 $7,090 $7,200 0 $110 5112 Platform Fees $58,500.00 $58,028 $61,000 2,500 $2,972 5115 Computer Licensing Fee $36,000.00 $35,187 $37,000 1,000 $1,813 5225 Website Maintenance $38,000.00 $37,672 $38,000 0 $328 5230 Training $10,000.00 $9,234 $11,000 1,000 $1,766 5290 Advertising/Marketing $440,988.00 $440,031 $512,056 71,068 $72,025 5300 Promo Items * $5,000.00 $4,542 $6,000 1,000 $1,458 5310 Bid Fees $25,000.00 $25,000 $25,000 0 $- 5315 Travel $37,200.00 $24,290 $25,000 -12,200 $710 5317 Trade Shows $46,500.00 $37,610 $45,000 -1,500 $7,390 5500 Opportunity Fund $120,000.00 $111,775 $120,000 0 $8,225 Total Expenses 1,871,914 $1,792,404 $2,050,000 DESTINATIONMARKETING ORGANIZATION (DMO) FUNDINGCOMPARATIVE VISIT TRI-CITIES 2022 TPA BUDGET City of Kennewick $804,923 $906,045 $881,500 76,577 $(24,545) City of Richland $692,608 $723,471 $738,000 45,392 $14,529 City of Pasco $374,383 $421,599 $430,500 56,117 $8,901 1000 Total Revenues: $1,871,914 $2,051,115 $2,050,000 178,086 $(1,115) REVENUE 2022 BUDGET 2022 FORECAST 2023 PROJECTED BUDGET VARIANCE TO 2022 BUDGET VARIANCE TO 2022 F/C EXPENSES 2021 BUDGET 2021 FORECAST 2022 PROJECTED BUDGET VARIANCE TO 2022 BUDGET VARIANCE TO 2022 F/C APPENDIX21Page25of83 7130 W. Grandridge Blvd., Ste. B Kennewick, WA 99336 509) 735-8486 | (800) 254-5824 VisitTri-Cities.com Page 26 of 83 Visit TRI-CITIES7130W. Grandridge Blvd., Suite BKennewick, WA 99336509-735-84861-800-254-5824Fax509-783-9005www.VisitTRI-CITIES.cominfo@VisitTRI-CITIES.com August 12, 2022 Mr. Dave Zabell City of Pasco 525 N. 3rd Avenue Pasco, WA 99301 Dear Dave: On behalf the staff and Board of Directors, I am pleased to present the Visit Tri-Cities Mid-Year Report outlining the organization’s deliverables completed for the first half of the 2022. The services and programs managed by Visit Tri-Cities are more important than ever as the tourism industry endeavors to recover from the long-term effects of previous travel bans and limits on the size of gatherings. The strategies that we previously put in place have been successfully executed and we are gaining momentum as we head into the second half of 2022. That is great news for visitor spending in the region and the Tri-Cities area tourism related businesses that are supported by the visitor economy. The details are outlined in the enclosed report, I think you will find that our accomplishments are something to celebrate. Thank you for your support of Visit Tri-Cities and the tourism industry. We would not be successful without our partners and the community alliances we enjoy. Best Regards, Kim Shugart Senior Vice President Enclosure Page 27 of 83 VISIT TRI-CITIES Visit Tri-Cities is supported by the cities of Kennewick, Pasco, Richland, and West Richland; the Tri-City Regional Hotel-Motel Commission; Corporate Partners; as well as individual and business members. The Mid-YearReport summarizes destination marketing and management activities undertaken during the first six months of 2022. We make theTri-Cities bigger, bolder, brighter, better and more cool through tourism. OUR MISSION OUR VISION Inspire wanderlust for a bold yet casual, geeky but cool, magical experience in wide-open spaces. VISITOR SPENDING The Tri-Cities region is enjoying a successful year for out-of-town visitors and visitor spending. The June STR Report reflects an increase of 5.7% in the number of hotel rooms sold compared to 2021, down only 1.5% to pre-pandemic record levels of 2019. And the news gets better. Due to area hotels’ ability to leverage the changes in hotel inventory, revenues are exceeding pre-pandemic levels by 15.6%. This is fantastic news for tourism-related businesses and attractions as demand for services in the Tri-Cities remains strong. PASCO 95,757 RICHLAND 172,898 KENNEWICK 159,733 Room nights sold January - June 2021 Total: 428,388 RICHLAND 171,563 PASCO 104,353 KENNEWICK 176,886 Room nights sold January - June 2022 Total: 452,802 CONVENTION & SPORTS MARKETING Convention and Sports Groups are key to the success of increasing visitor spending in the Tri-Cities. Groups compliment business and leisure travel and fill weekends and shoulder seasons. CONVENTION & SPORTS SALES Number of conventions, sports and groupevents85 Number of delegatesattracted59,940 Visitor spending$14,212,985 SALES ACTIVITIES Representing total roomnights22,540 Leadsissued84 Salescalls954Convention & Sports servicerequests43 OLYMPIA SALES BLITZ Number ofattendees: 28 Meeting Planners representing 25 organizations and 58 potential events FUTURE BUSINESS BOOKED JANUARY - JUNE 2022 Number offuture conventions, meetings and sports events booked: 76 Future visitor spending: 8,554,411 TBEX NORTH The Tri-Cities welcomed 270 travel bloggers and social media influencers for the TBEX 2022 North America Spring Conference held April 18-22. The travel content creators experienced everything the Tri-Cities has to offer including scenic flight of Tri-Cities with a visit to the Pasco Aviation Museum, Water2Wine lunch cruise, Coyote Canyon Mammoth Site with Ice Age Floods tour, LIGO Tour, hiking, biking, kayaking, wine tours and tasting, and more! As of June, the conference has resulted in 16 stories about the Tri-Cities (32 Washington State) and more than 300 social media posts on Facebook, Instagram and Twitter. COMMITTEES MANAGED BY VISIT TRI-CITIES Hotel Directors of Sales Committee | Tri-City Regional Hotel-Motel Commission Tri-Cities Wine Tourism Council | Tri-Cities National Park Committee | Tri-Cities Sports Council Tri-Cities Rivershore Enhancement Council | Benton Franklin River Heritage Foundation 2022 Mid-Year Report VISIT TRI-CITIES 7130 W. Grandridge Blvd., Suite B | Kennewick, WA 99336 | (509) 735-8486 CONVENTION & SPORTS MARKETING TBEX NORTH AMERICA 2022 Corporate Sponsor: Three Rivers Convention Center and Toyota Center Page 28 of 83 Corporate Sponsor: Washington River Protection Solutions TRI-CITIES RIVERSHORE ENHANCEMENT COUNCIL The Tri-Cities Rivershore Enhancement Council (TREC) is a multi-jurisdictional program coordinated by Visit Tri-Cities which is helping the community rediscover its river shores and is working to emphasize restoration, development and enhancement activities. Members of TREC held a Strategic Planning Retreat in January to identify priorities and issues for TREC. The top key issues and priorities identified include re-conveyance, environmental issues (including algae), persons experiencing homelessness along the shorelines, Snake River Dams, continued implementation of wayfinding, in addition to connectivity and enhancement projects. TREC will be coordinating efforts to upgrade the Cable Bridge Lighting from high pressure to LED lights. A subcommittee has been formed and includes representation from the cities, port districts and counties with support from Benton and Franklin PUDs; Washington State Department of Transportation; community members and Visit Tri-Cities. Visitors and residents alike may have noticed the installation of wayfinding signs around the community. To date, each of the cities has added signage and the project is now in the second to third phase of completion depending on location. The phases include Phase 1: regional gateways, city gateways, Phase 2: vehicular directional signage, Phase 3: trails and parks and recreation signage, Phase 4: Visitor Center. 24 In an effort to reach as many visitors as possible, Visit Tri-Cities maximizes destination exposure through digital, social advertising, broadcast media and print. This approach reaches a broad and diverse audience. MARKETING & COMMUNICATIONS Print advertisements Total digitalimpressions6,996,987 WEBSITE STATS Uniqueusers106,790 Pageviews240,955 SOCIAL MEDIA 6,448 followers 29,662 followers 11,298 followers 1,902 followers TOURISM DEVELOPMENT Visit Tri-Cities manages tourism-related programs within the community in order to position the Tri-Cities as a desirable and compelling visitor destination. Visit Tri-Cities partnered with Bandwango to develop and launch the Heart of Washington Wine Country Pass, a paid tasting pass. The pass features nine local wineries that offer tastings, flights and discounts. One-day, three-day and 90-day passes are available. Visit Tri-Cities installed a new digital information kiosk with touch screen technology in the Visitor Center. The branded tower offers the ability for visitors to build a custom travel itinerary featuring local tourism-related businesses, events, hotels, restaurants, transportation and more. The itinerary can be delivered to the visitor via email. The kiosk also has a photo booth style camera for visitors to commemorate their Tri-Cities visit and post to social media. Additional kiosks have been placed in the Three Rivers Convention Center in Kennewick and the Tri-Cities Airport in Pasco to provide visitors with the latest in tourism information. Visit Tri-Cities launched a member extranet portal to better serve members. The portal allows member businesses to update website listings and photos, contact information, add happenings to the calendar of events and more. MEMBERSHIP New Tourism Members January – June202230 Total Tourism Members as of June 30, 2022347 Visit Tri-Cities collaborates with local businesses, the public sector and other partners to provide a great visitor experience, celebrate the community and improve quality of life for residents. VISITOR CENTER Visitor inquiries January – June20221,381 TRI-IDEAS Visit Tri-Cities launched Tri-IDEAs, a program exploring and celebrating Inclusivity, Diversity, Equity and Accessibility. Visit Tri-Cities connects with business owners, community leaders, event organizers, residents and more to highlight, share and celebrate the diversity of the Tri-Cities that can be experienced through travel and tourism activities. Community features January – June202221 Corporate Sponsor: Bechtel Broadcast advertisements in-market233 Corporate Sponsor: Central Plateau Cleanup Company (CPCCo) MEDIA OUTREACH Visit Tri-Cities takes a proactive approach to hosting travel writers and other media professionals, positioning the Tri-Cities as apremier destination for travelers. Positivestories51 Impressions3,796,985,060 Coverageviews3,158,285 Writers and Content Creatorshosted314 Corporate Sponsor: Hanford Mission Integration Solutions (HMIS) The Eco-Tourism & Heritage program focuses on restoring and preserving the natural environment to enhance outdoor recreation opportunities while educating the community and visitors on cultural and historical offerings in the Tri-Cities. TRI-CITIES RIVERSHORE ENHANCEMENT COUNCIL ECO-TOURISM & HERITAGE Corporate Sponsor: Battelle Partnerreferrals6,682 VISITING FRIENDS & RELATIVES Page 29 of 83 ITEMS FOR DISCUSSION Visit Tri-Cities Mid-Year Report Tourism Promotion Area Programs TPA Budget TOURISM PROMOTION ASSESSMENTS SUPPORT:Convention, Sports and Group Marketing Digital Advertising Social Media Advertising Broadcast Advertising Wine Country, STEM, and Outdoor Recreation Website Regional and National Trade Shows Opportunity Fund Grants Regional Collaborative Projects TRI-CITY REGIONAL HOTEL-MOTEL COMMISSIONCITYOFKENNEWICK Mark Blotz, Clover Island Inn Nickolas Woody, Inn at Columbia Center Marie Mosley, Ex Officio, City of Kennewick CITY OF PASCO Monica Hammerberg, Hampton Inn & Suites Pasco / Tri-Cities Jerry Beach, A-1 Hospitality Dave Zabell, Ex Officio, City of Pasco CITY OF RICHLAND Lacey Stephens, Home2 Suites by Hilton Linda Hendricks, Hampton Inn Richland Jon Amundson, Ex Officio, City ofRichlandPage AGENDA REPORT FOR: City Council October 18, 2022 TO: Dave Zabell, City Manager City Council Workshop Meeting: 10/24/22 FROM: Adam Lincoln, Deputy City Manager Executive SUBJECT: Presentation of 2023 Legislative Priorities I. REFERENCE(S): Draft Resolution Draft 2023 Legislative Priorities PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation by Briahna Murray, Vice President, Gordon Thomas Honeywell Governmental Affairs III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: The 2023 Washington State Legislative session will convene on Monday, January 9th. The 2023 session is the first year of the two -year legislative biennium, commonly referred to as the "long" session, the odd year session is scheduled for 105 days. The long session focuses on the adoption of the biennial operating, capital, and transportation budgets. Gordon Thomas Honeywell Governmental Affairs (GTHGA) has been contracted to assist in promoting the Council's legislative priorities to the legislature. In doing so GTHGA assists in the development a comprehensive legislative agenda and in furthering that agenda in Olympia by providing on -the-ground (or virtual) presence in Olympia during session, monitoring the legislature throughout the year, and advancing the City's legislative agenda. Page 48 of 83 The City has benefited by maintaining a proactive posture with the legislature regarding the interests of Pasco. One means by which Council has made its concerns and interests known to the legislature, and specifically its legislative delegation, is through the adoption of its City Legislative Priorities Statement. V. DISCUSSION: Attached is the draft 2023 Legislative Priorities list, which reflects modifications to the previous agenda as recommended by staff and the legislative consultant, Briahna Murray, Vice President, GTHGA. The proposed amendments to the legislative priorities considered changed circumstances over the past year; additionally, the draft priorities reflect current circumstances, overall Council policy direction and the likelihood of success. The GTHGA team will present Council with an overview of the upcoming session and review the draft priorities and strategies for advocacy. Staff requests Council discussion and direction with regard to the draft priorities in order finalize them for adoption by resolution at a later date. Page 49 of 83 Resolution – 2023 Legislative Priorities - 1 RESOLUTION NO. _____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, DECLARING THE CITY’S LEGISLATIVE PRIORITIES FOR THE 2023 SESSION OF THE WASHINGTON STATE LEGISLATURE. WHEREAS, the 2023 Legislative Session of the Washington State Legislature commences on January 9, 2023; and WHEREAS, the City of Pasco, as a municipal corporation and political subdivision of the State of Washington can be substantially affected by the actions of the Washington State Legislature; and WHEREAS, the City Council has evaluated conditions impacting the City of Pasco and opportunities to improve the services the City provides to its citizenry; and WHEREAS, the City Council desires to identify the legislative priorities for the 2023 Legislative Session so they can be provided to state legislators prior to the commencement of the next legislative session. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. That the legislative objectives stated herein constitute the priorities of the City of Pasco for the 2023 Legislative Session. DOWNTOWN PASCO NORTH PLAZA: The City requests $750,000 to renovate the nearly 50-year-old outdated Downtown Pasco North Plaza. When combined with other downtown investments, the North Plaza will serve as a catalyst for Pasco’s vibrant downtown and attract visitors to support small businesses and economic growth. PROCESS WATER REUSE FACILITY (PWRF): The City requests $5 million as part of a public-private partnership to upgrade its Process Water Reuse Facility to make it more efficient and environmentally friendly. The facility treats and disposes of food production wastewater through irrigation of nearby farmland. The total investment to upgrade the facility is $80 million. GESA STADIUM IMPROVEMENTS: The City joins communities throughout the state to request $24 million to improve publicly owned baseball stadiums. The City of Pasco owns Gesa Stadium, a public gathering place, and is the home of the Dust Devils. The Dust Devils attract 108,836 visitors to the Tri-Cities annually and are a fixture in the community. Of the $24 million, $3 million would be allocated to improve Gesa Stadium. Page 50 of 83 Resolution – 2023 Legislative Priorities - 2 HOUSING: The City amended its zoning code to allow middle housing types in 80% of the city. The City now requests that the state remove other barriers to the construction of housing, such as relaxing condominium liability regulations, reducing construction costs, and providing tax incentives. The City supports state funding, such as the Housing Trust Fund, to ensure housing is constructed to serve all income levels. PUBLIC SAFETY & BEHAVIORAL HEALTH SERVICES: The Pasco community has experienced a significant increase in crime. In response, the City requests the following: o Allocate $925,000 annually to fund two Basic Law Enforcement Academy classes in the Tri-Cities to expedite the training of police officers once hired. o Increase funding for alternative response teams, treatment facilities for adults and juveniles, and funding for social workers, treatment providers, and system navigators to help direct people to treatment. o Allow officers to take a custodial action for the possession of controlled substances, and fund adequate treatment options. o Clarify that officers can engage in vehicular pursuits when appropriate. TRANSPORTATION FUNDING: The City requests that the state invest in transportation projects throughout Pasco: o Funding to preserve and maintain the local transportation system o $3 million for the Road 76 Overcrossing Project o $8 million for the Broadmoor Bike/Ped Crossing over I-182 o $1.5 million for State Route 12 Safety Improvements o $2 million for a feasibility study to allow eastbound access on to I-182 o Fully fund grant programs, such as the WSDOT Bike/Ped Program, that will allow the City to receive grant funds. Section 2. The City Manager is hereby directed to inform state legislators and other appropriate parties of the City’s 2023 Legislative Priorities. PASSED by the City Council of the City of Pasco, Washington on this ___ day of 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 51 of 83 City of Pasco 2023 State Legislative Priorities DOWNTOWN PASCO NORTH PLAZA: The City requests $750,000 to renovate the nearly 50-year-old outdated Downtown Pasco North Plaza. When combined with other downtown investments, the North Plaza will serve as a catalyst for Pasco’s vibrant downtown and attract visitors to support small businesses and economic growth. PROCESS WATER REUSE FACILITY (PWRF): The City requests $5 million as part of a public-private partnership to upgrade its Process Water Reuse Facility to make it more efficient and environmentally friendly. The facility treats and disposes of food production wastewater through irrigation of nearby farmland. The total investment to upgrade the facility is $80 million. GESA STADIUM: The City joins communities throughout the state to request $24 million to improve publicly owned baseball stadiums. The City of Pasco owns Gesa Stadium , a public gathering place, and is the home of the Dust Devils. The Dust Devils attract 108,836 visitors to the Tri-Cities annually and are a fixture in the community. Of the $24 million, $3 million would be allocated to improve Gesa Stadium. HOUSING: The City amended its zoning code to allow middle housing types in 80% of the city. The City now requests that the state remove other barriers to the construction of housing, such as relaxing condominium liability regulations, reducing construction costs, and providing tax incentives. The City supports state funding, such as the Housing Trust Fund, to ensure housing is constructed to serve all income levels. PUBLIC SAFETY & BEHAVIORAL HEALTH: The Pasco community has experienced a significant increase in crime. In response, the City requests the following: Allocate $925,000 annually to fund two Basic Law Enforcement Academy classes in the Tri-Cities to expedite the training of police officers once hired. Increase funding for alternative response teams, treatment facilities for adults and juveniles, and funding for social workers, treatment providers, and system navigators to help direct people to treatment. Allow officers to take a custodial action for the possession of controlled substances, and fund adequate treatment options. Clarify that officers can engage in vehicular pursuits when appropriate. TRANSPORTATION: The City requests that the state invest in transportation projects throughout Pasco: Funding to preserve and maintain the local transportation system 3 million for the Road 76 Overcrossing Project 8 million for the Broadmoor Bike/Ped Crossing over I-182 1.5 million for State Route 12 Safety Improvements 2 million for a feasibility study to allow eastbound access on to I-182 Fully fund grant programs, such as the WSDOT Bike/Ped Program, that will allow the City to receive grant funds. Contact: City Manager 509) 545-3404 citymanager@ pasco-wa.gov www.pasco- wa.gov Page 52 of 83 FINANCE/GENERAL GOVERNMENT State-Shared Revenues Pasco supports preserving and enhancing state-shared revenue streams. Local Control Pasco opposes any proposals that restrict, mandate, or otherwise interfere with the city’s ability to make local decisions. Election of Judges Pasco opposes legislation mandating that part-time municipal court judges be elected rather than appointed. Labor Reform Pasco opposes legislation that increases labor costs. Pet Adoption PRA Exemption Pasco supports legislation that would create an exemption from the Public Records Act the disclosure of pet adoption information. INFRASTRUCTURE & ECONOMIC DEVELOPMENT Complete Streets Funding Pasco supports increased funding for complete streets grants. Tri-Cities Mobility Pasco supports efforts to explore a third crossing over the Columbia River to improve regional mobility throughout the Tri-Cities. Lower Snake River Dams Pasco opposes the removal of dams along both the Columbia and Snake Rivers. Economic Development Tools Pasco supports economic development tools to spur development downtown and in key commercial corridors. Public Work Assistance Account Pasco supports increased funding to the Public Works Assistance Account to fund basic infrastructure like drinking and wastewater. LAND USE Growth Management Act Paco opposes any proposals that create new planning obligations within the Growth Management Act that are not coupled with adequate funding. Pasco DNR Property Pasco will continue working collaboratively with DNR to develop the commercially-zoned properties west of Road 68. Pasco is opposed to DNR buying land within the City’s UGA and asks that DNR divest itself of the undeveloped land it currently owns within the UGA. Annexation Pasco supports incentives that encourage annexation, including utilizing utility extensions, and mechanisms that facilitate the annexation of unincorporated islands. Water Rights Pasco supports legislation that increases the ability for cities to secure municipal water rights. The City of Pasco Supports/Opposes Page 53 of 83 City of Pasco Preparing for the 2023 LegislativeSessionPage Overview 2023 Session Expectations Draft 2023 Agenda NextStepsPage 2023 Session Expectations First year of the two-year biennium, 105-day session Tasks before the 2023 Legislature: Develop 2023-25 operating, capital, and transportation budgets Consider and adopt policy bills Political context November elections formative, 25+ new legislators Committee assignments in Nov/Dec2022Page Legislative Agenda Structure Top Priorities Support/OpposePage 2023 Draft Legislative Agenda Top Priorities Downtown Pasco North Plaza Process Water Reuse Facility Gesa Stadium Housing Public Safety & Behavioral HealthTransportationPage Downtown Pasco North Plaza Capital budget request: $750,000 Builds on previous investments Focus messaging on economicdevelopmentPage Process Water Reuse Facility 5 million capital funding request Public-Private-Partnership Focus on environmentally sustainable components of project Gesa Stadium Eleven communities across the state are asking for a total of $24 million to upgrade publicly owned minor league baseball stadiums to support economic development. If awarded, Gesa Stadium would be allocated $3 million of the $24millionPage Housing Pasco has amended its zoning code to increase density Barriers remain to the construction of housing: Revise liability for developers of condominiums Evaluate increasing construction costs Consider incentives to reducebarriersPage Public Safety & Behavioral Health Operating funds for Tri -Cities regional Basic Law Enforcement Academy Increased treatment and crisis response Possession of controlled substances and substance use treatment Revision to policing policies, such as vehicularpursuitsPage Transportation Funding to preserve and maintain the local transportation system 3 million for the Road 76 Overcrossing Project 8 million for the Broadmoor Bike/Ped Crossing over I-182 1.5 million for State Route 12 Safety Improvements 2 million for a feasibility study to allow eastbound access on to I-182 Fully fund grant programs, such as the WSDOT Bike/Ped Program, that will allow the City to receive grantfundsPage Support/Oppose State-Shared Revenues Lower Snake River Dams Public Works Assistance Account Growth Management Act WaterRIghtsPage Legislative Agenda Structure Approve agenda November meeting with legislators Session begins January9thPage Questions? Briahna Murray State Lobbyist, Partner bmurray@gth-gov.com 253) 310-5477Page AGENDA REPORT FOR: City Council October 21, 2022 TO: Dave Zabell, City Manager City Council Workshop Meeting: 10/24/22 FROM: Dave Zabell, City Manager Executive SUBJECT: Presentation of 2023-2024 Biennial Budget I. REFERENCE(S): II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Presentation of the City of Pasco 2023-2024 Biennial Budget III. FISCAL IMPACT: 2023-2024 Biennial Budgets - Operating and Capital Projects for the City of Pasco IV. HISTORY AND FACTS BRIEF: Prior to 2019, the City of Pasco operated on annual Operating and Capital Projects Budgets and effective in 2018 with the development of the 2019-2020 budget cycle the City transitioned to a biennial budgeting process. V. DISCUSSION: Tonight, staff will introduce the 2023-2024 Biennial Budget, as well as provide a General Fund Briefing, Department Presentations, Capital Projects overview and policy considerations for Council to consider as they review the budget document over the next few weeks. A formal preliminary budget document will be distributed later in the week. Page 68 of 83 AGENDA REPORT FOR: City Council October 6, 2022 TO: Dave Zabell, City Manager City Council Workshop Meeting: 10/24/22 FROM: Steve Worley, Director Public Works SUBJECT: Resolution - Argent Road Phase 1 Project Acceptance I. REFERENCE(S): Resolution Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: See below. IV. HISTORY AND FACTS BRIEF: Argent Road from North 20th Avenue to Saraceno Way The City of Pasco along with partners Columbia Basin Community College CBC) and the Port of Pasco (Port) worked together to envision necessary improvements to the Argent Road corridor from Road 36 to 20th Avenue. This project is the first phase of three phases. Phase 1 extends along Argent Road corridor between 20th avenue and Saraceno Way/Varney Lane. Phase 2 involves traffic signal installation and other improvements at the intersection of Road 36, which is currently in construction, Phase 3, roadway widening and ped/bike improvements extending between Varney Ln and Road 36 is anticipated to be advertised for bids in the winter of 22/23, once right -of-way acquisition processes are completed. This contract involves traffic signal upgrades and modifications, ADA curb ramp upgrades, installation of countdown pedestrian signal heads, installation of access management median curbing, installation of two pedestrian hybrid beacons, widening of a section of a roadway, and other work. Page 69 of 83 The project bid was awarded on June 28, 2021, by Council to Culbert Construction, Inc. of Pasco, WA, in the amount of $1,995,935.77. The project is now complete and was constructed per project specifications. Final construction costs were $2,049,407.16. Formal acceptance of public works projects are required by State law and start the 45-day period within which an outside vendor, supplier or laborer would have an opportunity to file a claim against this project pursuant to RCW 60.28.011 (2). Upon completion of the 45-day lien filing period, retainage being held by the City may be released upon receipts of the following: An affidavit of no liens A release from the Department of Revenue that all taxes have been paid A release from any claims from the Department of Labor and Industries, pursuant to RCW 60.28.051 V. DISCUSSION: Staff recommends City Council's acceptance of the project as constructed by the above-listed contractor. Page 70 of 83 Resolution – Argent Road Widening – Phase 1 Project Closeout - 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY CULBERT CONSTRUCTION, INC. UNDER CONTRACT FOR THE ARGENT ROAD WIDENING – PHASE 1 (20TH AVE TO SARACENO WAY) PROJECT. WHEREAS, the work performed by Culbert Construction, Inc., under contract for the Argent Road Widening – Phase 1 (20th Ave to Saraceno Way) project, has been examined by City of Pasco staff and has been found to be in apparent compliance with the applicable project specifications and drawings; and WHEREAS, it is the City Staff’s recommendation that the City of Pasco formally accepts the contractor's work and the project as complete. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council concurs with the Staff’s recommendation and thereby accepts the work performed by Culbert Construction, Inc., under contract for the Argent Road Widening – Phase 1 (20th Ave to Saraceno Way) project, as being completed in apparent compliance with the project specifications and drawings; and Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance; and Be It Further Resolved, that the final payment of retainage being withheld pursuant to applicable laws, regulations and administrative determination shall be released upon satisfaction of same and verification thereof by the Public Works Director and Finance Director. PASSED by the City Council of the City of Pasco, Washington, this ___ day of November, 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 71 of 83 Pasco City Council Workshop Meeting October 24, 2022Page Argent Road Widening, Phase 1 Project #12-001 Construction Contract Awarded to: Culbert Construction, Inc. 1,995,935.77 Final Construction Cost: 2,049,407.16 Change Order(s): 1 –Utility Conflicts, Pavement Marking Removal and Associated Additional Work $24,008.33Page Argent Road Widening, Phase 1 Before Argent Road Widening, Phase 1 In Progress Argent Rd Widening, Phase 1 In Progress Argent Rd Widening, Phase 1 In Progress Argent Rd Widening, Phase 1 In Progress Argent Road Widening, Phase 1 Complete Argent Road Widening, Phase 1 Completed Questions? QUALITY OF LIFE Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure including, but not limited to: Completion of Transportation System Master Plan and design standard updates to promote greater neighborhood cohesion in new and re-developed neighborhoods through design elements, e.g.; connectivity, walkability, aesthetics, sustainability, and community gathering spaces. Completion of the Parks, Recreation and Open Space Plan and development of an implementation strategy to enhance such services equitably across the community. • Completion of the Housing Action and Implementation Plan with a focus on a variety of housing to address the needs of the growing population. FINANCIAL SUSTAINABILITY Enhance the long-term viability, value, and service levels of services and programs, including, but not limited to: Adopting policies and strategic investment standards to assure consistency of long-range planning to include update of impact fees, area fees to specific infrastructure, and SEPA mitigation measures related to new development, e.g.; schools, traffic, parks, and fire. COMMUNITY TRANSPORTATION NETWORK Promote a highly functional multi-modal transportation system including, but not limited to: Application of the adopted Transportation System Master Plan including development of policies, regulations, programs, and projects that provide for greater connectivity, strategic investment, mobility, multi -modal systems, accessibility, efficiency, and safety. COMMUNITY SAFETY Promote proactive approaches for the strategic investment of infrastructure, staffing, and equipment including, but not limited to: Adoption and develop implementation strategies for Comprehensive Fire Master Plan aimed at maintaining the current Washington State Rating Bureau Class 3 community rating. Collaboration with regional partners to influence strategies to reduce incidences of homeless by leveraging existing resources such as the newly implemented 0.1% mental health sales tax, use of resource navigator programs, and other efforts. • Development of an implementation strategy for the Comprehensive Police Master Plan to support future service levels of the department to assure sustainability, public safety, officer safety, crime control, and compliance with legislative mandates. ECONOMIC VITALITY Promote and encourage economic vitality including, but not limited to: Implementation of the Comprehensive Land Use Plan through related actions including zoning code changes, phased sign code update, and development regulations and standards. Completion of Area Master Plans and environmental analysis complementing the Comprehensive Land Use Plan such as Downtown and Broadmoor Master Plans. Development of an Economic Development Plan, including revitalization efforts. COMMUNITY IDENTITY Identify opportunities to enhance community identity, cohesion, and image including, but not limited to: Development of a Community Engagement Plan to evaluate strategies, technologies, and other opportunities to further inclusivity, community engagement, and inter-agency and constituent coordination efforts. Support of the Arts and Culture Commission in promoting unity and the celebration of diversity through art and culture programs, recognition of significant events or occurrences, and participation/sponsorship of events within the community. Page 82 of 83 CALIDAD DE VIDA Promover una calidad de vida alta a través de programas de calidad, servicios, inversiones y reinversiones apropiadas en la infraestructura de la comunidad incluyendo, pero no limitado a: Terminar el Plan de Transportación para promover más cohesión entre nuestras vecindades actuales y re-desarrolladas a través de elementos de diseño, p.ej. conectividad, transitabilidad, sostenibilidad estética, y espacios para reuniones comunitarias. Terminar el Plan de los Parques, la Recreación, y los Espacios Vacíos y el desarrollo de una estrategia de implementación para mejorar tales servicios justamente a lo largo de la comunidad. Terminar el Plan de Acción e Implementación de Viviendas con un enfoque en una variedad de viviendas para tratar las necesidades del aumento en la población. SOSTENIBIILIDAD FINANCIERA Mejorar la viabilidad a largo plazo, el valor, y los niveles de los servicios y los programas, incluyendo, pero no limitado a: Adoptar las políticas y los estándares de inversión estratégica para asegurar consistencia en la planificación a largo plazo para incluir la actualización de las tarifas de impacto, las tarifas en áreas de infraestructura específica, y las medidas de mitigación SEPA relacionadas con el nuevo desarrollo, p.ej. escuelas, tráfico, parques, e incendios. RED DE TRANSPORTACION COMUNITARIA Promover un sistema de transportación multimodal en alta operación incluyendo, pero no limitado a: Aplicar el Plan de Transportación que fue adoptado, incluyendo el desarrollo de las políticas, las reglas, los programas, y los proyectos que proporcionan más conectividad, inversión estratégica, movilidad, sistemas multimodales, accesibilidad, eficiencia, y seguridad. SEGURIDAD COMUNITARIA Promover métodos proactivos para la inversión estratégica en la infraestructura, el personal, y el equipo incluyendo, pero no limitado a: Adoptar y desarrollar estrategias de implementación para el Plan Comprehensivo para Incendios. Con el propósito de mantener la clasificación comunitaria actual en la tercera Clase del Departamento de Clasificación del Estado de Washington. Colaborar con socios regionales para influenciar estrategias que reduzcan los incidentes de personas sin hogar al hacer uso de los recursos actuales como el impuesto de ventas de 0.1% implementado recientemente para la salud mental, el uso de programas para navegar los recursos, y otros esfuerzos. Desarrollar una estrategia de implementación para el Plan Comprehensivo de la Policía para apoyar los niveles futuros de servicio del departamento para asegurar la sostenibilidad, la seguridad pública, la seguridad de los policías, el control de crímenes, y el cumplimiento con los mandatos legislativos. VITALIDAD ECONOMICA Promover y fomentar vitalidad económica incluyendo, pero no limitado a: Implementar el Plan Comprehensivo del Uso de Terreno a través de acciones relacionadas, incluyendo cambios de los códigos de zonificación, actualización en las etapas de los códigos de las señales, y el desarrollo de las reglas y los estándares. Terminar los Planes de las Áreas y un análisis ambiental el cual complementa al plan integral de uso de la tierra como a los Planes del Centro y de Broadmoor. Desarrollar un Plan de Desarrollo Económico, el cual incluya esfuerzos de revitalización. IDENTIDAD COMUNITARIA Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen incluyendo, pero no limitado a: Desarrollar un Plan de Participación de la Comunidad para evaluar las estrategias, las tecnologías, y otras oportunidades para promover la inclusividad, la participación de la comunidad, y los esfuerzos interdepartamentales y de coordinación de los constituyentes. Apoyar a la Comisión de las Artes y Cultura al promover la unidad y la celebración de la diversidad a través de programas de arte y cultura, reconocer eventos o acontecimientos significantes, y participar/patrocinar eventos dentro de la comunidad. Page 83 of 83 2023-2024 Proposed Budget October 24, 2022 July/August Aug/Sep/Oct Nov/Dec Budget Kickoff Department Request Budget Hearing Analysis & Meetings Budget Adoption Biennial Budget NovemberSeptember Capital Improvement Plan Assessed Valuation from Franklin County Ad Valorem Levy Hearing General Fund Revenues October Council sets goals May WHY WOULD THEY WANT US BACK? Public Safety Quality of Life Economic Vitality Direct and safeguard public investment through: 1) Capital Improvements 2) Strategic Planning 3) Economic Development Community –Value and equity of services Community Meetings Council Goals Listening Sessions WHAT GUIDES THIS PROPOSED BUDGET? Citizen Survey Social Media Comp Plan Master Plans KEY THEMES 01 02 03 04 05 Projected increase of 51,000 over next two decades POPULATION GROWTH Public Safety, Broadmoor, Mobility, Parks & Facility, Economic Development LONG RANGE PLANNING Lewis Street Overpass, Wastewater, Butterfield, West Pasco and PWRF Treatment Plant, Pedestrian/Bicycle/Driver Safety MAJOR CAPITAL PROJECTS Community Asset Enhancement, Local Business Expansion & Support, New Business Recruitment Establishment, Downtown Master Plan ECONOMIC DEVELOPMENT Mobility, Parks, Local Cultural Events, Public Art, Arts & Culture, IDEC QUALITY OF LIFE New Initiatives Public Facilities District, Animal Shelter Operations, Basic Law Enforcement Academy 06 New Policies and Budget Impacts Management of Animal Shelter Management Pasco Public Facilities District Tax Incremental Financing Implementation of Downtown Master Plan Basic Law Enforcement Academy New Management Responsibilities Animal Shelter Hire 20 staff members Manage all bookkeeping operations Process billings to partner cities for their portion Contract management requirements Approximate net increase in General Fund expenses of $133,000, annually. Public Facilities District Interim financing Issue bond to finance project Project management Procurement and implementation of receipting software (replace RecPro) Manage all bookkeeping operations Annual financial reporting Annual audit Basic Law Enforcement Academy Transition to Regional training academy model 2.5 FTE fully reimbursed by State program Remodel of PD Training facility underway Key implementations Total estimated increase in operational costs is 165,000, annually. This includes: Hiring additional staff Increase operational costs such as utilities, maintenance and receipting software Increase demand on parks and facilities staff Total estimated increase in revenue is 100,000, annually. This estimate is based on potential contracts with private swim teams and local high school team. As well as ability to offer open swim and other aquatic programs year-round. Hire analyst to lead or coordinate the implementation of the Downtown Master Plan Capital improvement projects such as Wayfinding and Peanuts Park North Downtown Outdoor Dining Furniture funded by ARPA New Staff –General Fund 1 -Partial FTE are reflected in other funds. 2 -Expense includes full cost of new employee in the 1st year such as computer, training, furniture, etc., as applicable. Amount also includes a 5% increase in wages during the 2nd year for 4% COLA and 1% deferred compensation. Department 1 No. of Staff 2 Expense Funding Funding Source Net Impact Information Systems 3.4 805,984$ -$ 805,984$ Executive 3 716,151$ -$ 716,151$ Finance 2 384,021$ 103,696$ PFD Management Reimbursement 280,325$ ACS 10 2,655,429$ 237,816$ Blvd Maint. 2,417,613$ CED 4 772,963$ 382,690$ Permit Fees 390,273$ Municipal Court 2 250,002$ 116,645$ Grant 133,357$ Police 14 4,102,090$ 1,263,279$ Grant & Criminal Justice Tax 2,838,811$ Fire 9 2,043,638$ 1,397,999$ Grant 645,639$ Human Resources 0.5 113,518$ -$ 113,518$ Engineering 3 992,199$ -$ 992,199$ Total 50.9 12,835,995$ 3,502,125$ 9,333,870$ General Fund New Staff –Other Funds 1 -Partial FTE are reflected in other funds. 2 -Expense includes full cost of new employee in the 1st year such as computer, training, furniture, etc., as applicable. Amount also includes a 5% increase in wages during the 2nd year for 4% COLA and 1% deferred compensation. Fund 1 No. of Staff 2 Expense Funding Funding Source Net Impact Ambulance 12.6 2,869,445$ 2,096,996$ Grant 772,449$ Fleet 3 707,441$ 707,441$ Rates Animal Shelter 20 2,786,167$ 1,857,445$ 2/3 funded from cities 928,722$ Equipment Replacement 0.5 103,696$ 103,696$ Interfund charges -$ Water 8 1,780,969$ 1,780,969$ Rates -$ Sewer 4 871,301$ 871,301$ Rates -$ PWRF 2.5 300,095$ 300,095$ Rates -$ Medical Insurance 0.5 113,517$ 113,517$ Rates Total 51.1 9,532,631$ 7,831,460$ 1,701,171$ COMPLETED PROJECTS Argent Road Widening (Phase 1) 20th Ave to Sacaceno Dr Industrial Way Stormwater Retrofit and Overlay Sandifur Pwky Widening (Rd 52 to Rd 60) Burns Road Pathways (Phases 1, 3 and 3) and Road 93/Powerline Pathway Argent Phase 2 Columbia East Force Main NW Sewer LID #151 Road 36 Lift Station Maple Drive Waterline extension Palomino Park Peanuts Park Neighborhood Road Preservation CARRY-OVER 2020 budget introduced the accounting practice of carryovers to the City budgeting process A recommended practice for capital projects All funds expended during EACH biennium needs authorization All carryover funding will need to be approved by Council A separate process so there is clarity, rather than comingling with new budget year What to expect Council will have to approve carryover capital budget during the 1st quarter of 2023 Project still in progress but have full funding from prior year will not be included in proposed budget DEPARTMENT REPORTS GENERAL FUND if not specified GENERAL FUND Public Works Engineering 2021 –2022 Departmental Accomplishments Public Works Engineering Department Began construction of Lewis Street Overpass. Completed Local Area District (LID) 151, Northwest Sewer. Completed Sewer Comprehensive Plan, initiated resulting projects. Robust effort to apply for low interest funding opportunities, resulting in award of $66.4M in grants and low interest loans for infrastructure improvements. Continued effort to improve capacity including critical projects at the West Pasco Water Treatment Plant and the Zone 3 Transmission Main and Reservoir Tank projects. 2021 –2022 Departmental Accomplishments Public Works Operations –Utilities & Streets Overlay projects completed throughout Pasco. Development of policy and procedure for equipment maintenance and replacement. City vehicle maintenance support increased 10%. Rebuilt the air system compressor at Butterfield Treatment Plant. Performed extensive in-house repair and rehab at Waste Water Treatment Plant. Rehabilitation of Desert Sunset Irrigation Well. Installation of variable frequency drive on Village Well to optimize performance. Rehabilitation work at farm sites, including wells #3 and #4, pivot replacement and rebuild to Foster Wells Lift Station pumps. Addition of new processor at Process Water Reuse Facility. Receive and responded to 2,226 customer service requests. 2023 –2024 Departmental Goals Public Works Engineering Launch improvements at Butterfield Water Treatment Plant Complete key transportation projects and improvements Complete Process Water Reuse Facility expansion improvements Establish a high efficiency grant/loan reimbursement system for capital projects Complete east urban growth area Sewer LID 152 2023 –2024 Departmental Goals Public Works Operations Create Comprehensive Asset Management Operating Manual Start design and construction of new Operation’s Facility Update vehicle and equipment purchasing policies and administrative orders Continue investigating City’s water infrastructure to verify materials used to meet EPA’s drinking water safety standards UTILITY FUND STREET FUND Human Resources 2021 –2022 Departmental Accomplishments Human Resources Department Implemented recruiting module in new software, NeoGov. Implemented department liaison focused style of service delivery Facilitated collective bargaining with International Association of Fire Fighters. Analyzed methodology for document storage to support appropriate records management 2023 –2024 Departmental Goals Human Resources Department Review and Update City PMC and Administrative Orders Identify a new 3rd party administrator for health insurance plan Evaluate the Safety and Training programs for improvements Implement additional modules for NEOGOV software Enhance employee engagement and conduct an employee survey Finance 2021 –2022 Departmental Accomplishments Finance and Utility Billing Supported American Rescue Plan Act utility and business grant programs. Supported revenue requirement studies for ambulance, water and sewer utilities. Addition of payment kiosks that allow for non-business hour payments through out Pasco in partnership with Franklin PUD and Basin Disposal. Introduced use of new technology to support data visualization for communication of financial activity and Capital Improvement Plan (CIP) data. Effort to transition billing software for utilities’ services to a new product that integrates with financial software is underway. 2023 –2024 Departmental Goals Finance and Utility Billing Create a comprehensive Finance Operation Manual Issue debt to support 2023 Capital Projects Study and support funding source creation for various impact fees Study and support General Fund long term financial plan modeling Participate in implementation of new Planning & Permitting software Community Economic Development 2021 –2022 Departmental Accomplishments Community & Economic Development Completed Comprehensive Land Use Plan. Supported various plans including the Broadmoor Master and Tax Incremental Financing (TIF) Area Plans. Completed integration of the One-Stop Permit Center to support ease of customer interaction. Supported facilitation of updated State Building and Energy Code . 2023 –2024 Departmental Goals Community & Economic Development Implement Downtown Master Plan Complete Housing Capacity Plan Complete and adopt the Broadmoor Master Plan Complete mandated updates to the Shoreline Master Plan Complete the Economic Development Strategy Plan Administrative Community Services 2021 –2022 Departmental Accomplishments Administrative & Community Services Implemented technology advancements with Citywide benefit, including Ring Central Phone System. Facilitated completion of a Parks Master Plan. Completed Information Systems Strategic Master Plan Added new parks and parks programs. Notable additions are Peanuts Park, Palomino Park and the SEEK grant program. Through the SEEK grant children were able to participate in sports camps and adventure trips. Emergency Operation of Animal Control Shelter following removal of contractor, including continued transition to long term shelter success 2023 –2024 Departmental Goals Administrative & Community Services Construction of new Tri-Cities Animal Shelter Continue to add new Parks and Facilities (Schlagel, A Street, MLK, Pool Bubble) Review Park Impact Fees and New Parks Design Standards Implement new Permitting and Code Enforcement software Commence with new technology improvements to improve efficiency and safety Police 2021 –2022 Departmental Accomplishments Police Department Developed Comprehensive Police Strategic Plan. Used Homeless Liaison Officers to partner with social services to reduce persons experiencing homelessness. Continued participating in community engagement opportunities. Some examples include, National Night Out gatherings Citywide, Juneteenth celebration, Coffee with a Cop events, and a first Family Field Day. Implemented Spidr-Tech platform to evaluate customer service levels and support community engagement. Completed Unmanned Aircraft System (UAS) training and implementation. 2023 –2024 Departmental Goals Police Department Develop implementation strategies for the Comprehensive Police Master Plan Collaborate with Resource Navigator Programs to reduce incidences of homelessness Increase community engagement events with focus on professional imagery, branding and marketing Deployment of District Policing model Commence Criminal Justice Training Commission Basic Law Enforcement Academy Pasco Campus City Manager 2021 –2022 Departmental Accomplishments City Manager Successful adoption of Pasco’s first ever Tax Incremental Financing (TIF) Area –Broadmoor Successful completion of Pasco’s first-ever Downtown Master Plan Coordinated City Council ARPA program investments Successful transition of Tri-City Animal Shelter to City staff Successful expansion of City Economic Development Program 2023 –2024 Departmental Goals City Manager Onboarding of new City Manager Implementation of Downtown Master Plan items Development of Community Engagement Plan Provide support of Arts & Culture Commission City Council Municipal Court 2021 –2022 Departmental Accomplishments Municipal Court Restarted work crew program as an alternative to incarceration. Resume collection process after pandemic created pause, including evaluation of requests to amend legal financial obligations. Graffiti Abatement Program (GAP) is busy. Using AskPasco tool to abate instances quickly. Upgrade to Webex technology to allow for remote hearings. Allows for facilitation of hearings with defendants and council outside our area. Recipient of grant for $116,000 from Administrative Office of the Courts (AOC). Grant supports new program in probation efforts by way of a Community Resource Coordinator who assists indigent and low-income persons locate and connect with local, state and federal programs. 2023 –2024 Departmental Goals Municipal Court Re -evaluate collection referral and implement a plan based on findings Expand the Work Crew program Explore more cost-efficient payment methods reviewing internal/external options Review and establish a new case management system Continue to pursue grant funding for the CRC Program assist low income and indigent persons Fire Ambulance 2021 –2022 Departmental Accomplishments Fire and Ambulance Began operation of the relocated Fire Station 83, Fire Station 84 and Fire Department Headquarters to better serve the community Fire Ground Command Training Lab implemented with Homeland Security Grant funds Completed update to Fire Department Master Plan Equipped/trained a marine spill response program through Department of Ecology in partnership with local tank farms, barging companies and railroad. Placed 57 new self-contained breathing apparatus into service and replaced portable and mobile radios with newer technology 2023 –2024 Departmental Goals Fire and Ambulance Maintain the Protection Class 3 rating with Washington Survey and Rating Bureau Develop/implement inspection of High Hazard Occupancies Update and approve the Community Risk Assessment (CRA) based on the growth of the city and implement station-based Community Risk Reduction programs Continue to improve the Pasco Resource Navigator program and actively participate in the Benton Franklin Behavioral Health Advisory Committee. Implement a system supporting better communications for fire and police personnel in large facilities Participate in determining options for sustainable delivery of both fire and EMS service with Richland and Kennewick and update performance standards for Pasco Fire GOLF COURSE FUND COMMUNITY DEVELOPMENT GRANT (CDBG) FUND ARPA FUND ANIMAL SHELTER OPERATIONS FUND 1 –Fund needs to be established through Ordinance 2 –Interim management activity is reflected in General Fund in 2022, 2023 will be first year for this fund/activity. Planning Efforts Update -Completed Title of Plan Next Steps Council Goal Biennial Budget Downtown Master Plan Adoption Economic Vitality Proposed FTE to support implementation Parks Master Plan Implement design standards Quality of Life Review Impact Fees Comprehensive Land Use Implementation measures Quality of Life Waterfront Zoning District Implementation measures Economic Vitality Transportation System Master Plan Implementation measures Community Transportation Network Police Strategic Implement design standards Quality of Life Fire Master Plan Implementation measures Community Safety Butterfield Water Treatment Facility Initiate Improvements Community Safety Projects Included Stormwater comprehensive Plan Adoption Quality of Life Projects included Items for Future Considerations and Budget Impacts Growing in step with community growth. New staff to meet City service needs. Capital project timeline and funding Support of debt service for capital improvements Aligning revenue sources with related expense Equity of Impact –Growth pays for Growth Type of Fee Eligible Projects Existing Traffic Impact Fee Roadway Improvements Only in limited areas near I-182 Corridor. Fee analysis underway. Fire Impact Fee Fire Station Construction Does not exist. Fee analysis planned. Capital Expansion Fee Capital Utility Construction Fee analysis underway to update existing for water and sewer utilities. Capital Investment for Community –TIF Area Project Name Needed Debt Funding Annual Debt Service Plan Initiated Council Goal Tax Incremental Financing Projects $39,000,000 $2,600,000 Tax Incremental Financing Analysis Economic Includes transportation infrastructure and utilities to provide foundational improvements that otherwise may not occur. It is certain that use of Tax Incremental Financing (TIF) will promote a unified approach to planning in the Broadmoor Area. Tax Incremental Financing provides a mechanism to fund improvements without new taxation. Planning Effort in 2023 -2024 Biennium Title of Plan Status Estimated Completion Notes/Next Steps Council Goal Economic Development Initiated By year end, 2023 Budgeted in biennium Economic Vitality Housing Capacity Initiated By year end, 2023 State to reimburse portion of cost Quality of Life Broadmoor Master Plan Nearing completion By mid year, 2023 EIS Concurrent Economic Vitality General Fund Forecasting Model Needed in 2023 By year end, 2023 Engage Consultant Financial Sustainability Irrigation Rate Study Needed in 2023 By year end, 2023 Engage Consultant Financial Sustainability Stormwater Rate Study Needed in 2023 By year end, 2023 Engage Consultant Financial Sustainability Water System Comprehensive Plan Needed in 2023 By year end, 2023 Engage Consultant Financial Sustainability Action Items for 2023 –2024 Biennial Budget Completed Approval of Ad Valorem (property taxes) Acceptance of SAFER grant Approval to manage Animal Shelter Needed Approval of Ambulance Rate Study and implement rate increase Adopt 2023 –2024 Biennial Budget Approve creation of Animal Shelter Fund UPCOMING Tax Incremental Financing Hearing and proposed approval –10/31 Budget Document provided to Council –11/2 First Reading of the Budget/Public Hearing – 11/7 Second Reading of the Budget/Public Hearing and Budget adoption –11/21 Questions BUDGET MESSAGE Honorable Mayor and City Council, Pasco residents, business owners/operators, and interested parties: I am pleased to present the City of Pasco’s proposed budget for the 2023-2024 biennium. As required by State law, revenues and expenses that compose the budget are balanced in all funds. Guiding staff in this budget planning effort were a myriad of inputs including completed comprehensive and master plans, the capital and operational plans embedded in rate studies, an approved Capital Improvement Plan for the years 2023-2028, City Council goals for the years of 2022-2023 and staff knowledge gained through operational and administrative experience. The 2023-2024 budget serves as a financial roadmap. This map assigns City resources toward a variety of services, programs, activities and projects. Ultimately, the result is a body of services, programs, activities and projects that form the collective effort of City staff. The aim of which is to meet Council Goals and the needs of our citizenry, including safety in the community, an enhanced quality of resident life and business community operations, and financial stewardship of resources. All these outcomes not only benefit our current community but also future generations of the City of Pasco. The intention of this message is to provide an overview of the elements included in the proposed 2023 – 2024 biennial budget. 2021-2022 OVERVIEW Pasco is a city coming into its own and positioned for future commercial, industrial and residential growth on a large scale. A once small Central Washington town along the Columbia River, Pasco has experienced rapid growth over a prolonged period of time that has transformed the City into a dynamic and vibrant community of over 80,000 people. Today Pasco is a regional hub of commerce with a diverse population, quickly rising education levels and household incomes. As part of this transformation, Pasco has experienced a changing demographic, infrastructure challenges, increased demands for services in all sectors: social, education, emergency response, utilities, transportation, etc. The elected leadership of the City have been responsive and strategic throughout these enormous changes, which has led to an impressive level of stability. Today those long-term strategies, as reflected in the City’s strategic investments in critical infrastructure, technology, people, quality of life and the community in general, are bearing fruit. The first half of the biennium remained heavily impacted by the various challenges from the COVID pandemic whereas 2022 began to return to pre-pandemic activity. There were notable highlights and successes of the biennium, despite challenges encountered during 2021. City Manager (509) 545-3404 Fax (509) 545-3403 P.O. Box 293 525 N. Third Ave. Pasco, WA 99301 City-wide accomplishments: o Implementation of the ARPA program through the receipt of Coronavirus State and Local Fiscal Recovery Funds U.S. Department of the Treasury. Most of these efforts took place during 2021. The following actions were implemented to assist the community impacted by COVID. Utility payment assistance for residents for utilities such as electricity, water/sewer and waste collection. This assistance to residents was made possible through partnerships with area utility service providers. Business assistance grants for businesses within the city financially impacted by the COVID pandemic. Beginning phases of multiple facility upgrades for the City-owned building occupied by the Boys & Girls Club. Expansion of regional mental health services through the implementation of the Pasco Resource Navigator program. o The Pasco Public Facilities District successfully passed a ballot proposal in 2022 authorizing a new sales and use tax an additional 2/10th of one percent of as of January 2023. Tax proceeds will support debt service on a $40 million project for an aquatic center. This will allow Pasco to attract new visitors further cementing its growing reputation as an attractive recreational destination. It also set the stage for a new role on the part of the Pasco Facilities District Board. o Significant progress on the conversion of the City’s Utility Billing system. This conversion will offer the needed capacity for the anticipated growth while adding process efficiencies. o The position of Economic Development Manager was filled mid-2021. This position is instrumental in promoting Pasco as a place for tourism, commercial and industrial development. The position also serves to work collaboratively with community partners towards a comprehensive economic development plan. o Implementation of the “AskPasco” application to facilitate community engagement by allowing residents to complete a variety of actions such as submit requests or concerns, pay utility bills and obtain Parks and Recreation information. o Completion of the Comprehensive Police Strategic Master Plan o Completion of the Transportation System Master Plan o Completion of the Parks and Recreation Master Plan o Completion of the Fire Department Master Plan o Completion of the Butterfield Water Treatment Plant Facility Plan Capital Projects Completed or Significant Progress Made: o Completion of the Northwest Area Sewer Local Improvement District (LID 151) which completed sewer infrastructure improvements to position the area for large-scale mixed use residential and commercial development. The development of this area is expected to positively impact revenue sources such as property taxes and sales tax in the future. This area is expected to further establish the city as an attractive destination. o Peanuts Park and Farmer’s Market project was completed which made significant improvements to the downtown area. o There has been significant private investment in the industrial area of the City by multiple companies such as Love’s Truck Stop, Reser’s Fine Foods, Darigold and Amazon. o Completion of the Road 68 Widening (south of I-182) o Completion of Wrigley Drive Extension o Completion of A Street Soccer Complex – Phase 1 During 2021, the City conducted its Community Survey, and later multiple Community Forums. Along with other ongoing Citizen input, the above mentioned opportunities guided the City Council in establishing the following overarching 2023-2024 goals which set the priorities and guide this biennial budget: Quality of Life Financial Sustainability Community Safety Community Transportation Network Economic Vitality Community Identity Promote a high- quality of life through quality programs, services and appropriate investment and reinvestment in community infrastructure. Enhance the long-term financial viability, value, and service levels of services and programs. Promote proactive approaches for the strategic investment of infrastructure, staffing and equipment. Promote a highly-functional multi-modal transportation network. Promote and encourage economic vitality. Identify opportunities to enhance community identity, cohesion, and image. 2023-2024 BIG PICTURE Over the past many years, population within the City of Pasco has steadily grown. At the time of the 2010 census, City population was 59,781. In July of 2021, the population estimate per the US Census was 78,871. Planning and preparation has been the intentional choice of staff to help steer decision making toward meeting Council Goals with the addition of new community members while enhancing the quality of life for longtime residents. The 2023 – 2024 biennial budget proposal focuses on the implementation of several long-range plans and projects. The completion of many of the City’s long-term planning efforts such as the Comprehensive Land Use Plan Update, Broadmoor Area Master Plan, Information Service Strategic Plan, Transportation System Master Plan, Downtown Master Plan, Police and Fire Strategic Plans and a Parks and Facilities Comprehensive Plan have informed budget planning. Other planning efforts will continue to advance during the biennium: Waterfront-Zoning District, Phased Sign Code Updates, Housing Action Plan, Economic Development Plan. With the goal of addressing necessary and beneficial actions to build a cohesive and connected community as well as provide consistent, reliable service, unique planning efforts have occurred. Each of the plans noted above serve to bring quality service and opportunity to community members while addressing the needs and impacts of growth. To be successful over the long-term, identification and implementation of alternative funding sources for major capital projects or service initiatives is imperative. Included in the consideration of funding for capital and quality service provision is the need to match cost creation with appropriate revenue sources. While capital infrastructure accompanies the addition of newly created areas of the City, concurrently necessary is the replacement of aging infrastructure. Accompanying the addition of new population is the ever-present desire to maintain service levels for existing community members. However, the additions of new opportunities in the form of private and public investment that accompany growth, allow long term residents new opportunities in the form of job creation, new recreation elements and a more diverse and dynamic community. Also, important is an expanding City tax base allowing for increased revenue. Careful analysis of cost cause and effect, while assessing resulting benefit will be necessary as the City moves into the next many years. Operationally, to position the organization toward sustainability, a continued focus on enhancing efficiencies through process design and technology application will be required. What follows is a high-level overview of each City Council goal and what is proposed in the preliminary budget to advance them. Quality of Life A consistent goal of Council has been the aim of influencing Citizen quality of life by the provision of quality programs, services and investment in infrastructure that makes Pasco a good place to live and visit, measured by ease of transportation, neighborhood cohesion, quality public spaces that are available to be enjoyed by all and variety in housing that appeals to many needs. This high-priority goal places significant resources toward the advancement of projects, initiatives, inter-agency collaboration, and strategic planning processes including: Completion of the Animal Control Shelter through partnership with the City of Kennewick and City of Richland. Transition to a city-led animal control services, with Pasco taking the lead and costs shared by ACA member cities. Initiate a robust public engagement process to identify and advance Community Center needs. Based on Parks and Facilities Comprehensive Plan, identify areas for revitalization and opportunities for community gathering spaces, and provision of recreational services, including improvements that provide benefits for all to play. Provide administrative and organizational support for the implementation of the Pasco Public Facilities District’s approved ballot measure for a regional aquatics center. Identify and implement additional organizational cultural competency training of City staff and officials. Completion of the Equity Plan. Support of the newly formed Arts and Culture Commission and their involvement in public art and arts and culture related initiatives. Development of a Housing Action Plan. Complete Northwest Community Park land purchase. Complete Martin Luther King Center Refurbishment and Construction Project. Financial Sustainability A thorough understanding of City-owned assets, programs, and services is central to the City’s financial sustainability. Considerable effort has been expended over the past few years to analyze these items and make that information available to the City Council and public in a transparent, understandable format. Through diligent planning, City staff will work to provide policy options for Council designed to enhance the long-term financial viability, value and service levels that currently exist over this biennium. Additionally, City staff will continue to instill and promote an organizational culture of customer service through all business lines. Support of funding for long term assets including maintenance of Local Improvement Districts and Debt Issuance, as well as actively seeking low-cost funding in the form of low interest loans and grants. Support and integrate permitting software replacement. Complete Utility Billing System replacement. Complete long-term financial plan for General Fund. Consideration of new, and updated, impact fees to assure the impacts of growth are appropriately mitigated. Community Safety To ensure police and fire services continue to meet the needs of the growing community, the following have been included in the 2023-2024 proposed budget: Implementation of Comprehensive Police Strategic Master Plan, including the District Policing Model. Expansion of homelessness and behavioral health services through; enhanced contract for Resource Navigator program, identify sustainable funding opportunities to continue Mobile Outreach Professionals program, and first- responder training. Participation on the recently approved 1 percent sales tax steering committee and programming for behavioral health services. Long-term planning and efforts to maintain Class 3 Community Fire rating, including the completion of Fire Station 85 and addition of associated staff. Continued improvement in utility and roadway infrastructure to provide quality service and eliminate infrastructure needs and inequities. Community Transportation Network This biennium the City will see the completion of several long-standing transportation projects and supporting the City Council’s desire to improve connectivity, mobility, multi-modal systems, accessibility, and safety through the following: Completion of the Lewis Street Overpass. Creation of a new transportation system in the Broadmoor Area of Pasco. Completion of Court and Road 68 intersection improvements. Completion of Sylvester Street Safety Improvements. Economic Vitality The proposed biennial budget provides for significant investment to increase Pasco’s economic and community development in key areas of the City, in particular, revitalizing Downtown and the development of the Broadmoor Area. With the completion of the Downtown Master Plan, begin initiation of plan initiatives. Completion of Broadmoor Master Plan and accompanying code revisions. Complete Housing Capacity Plan. Complete code revisions associated with Residential Design Standards Complete the Economic Development Strategy Plan Community Identity Additionally, City staff will continue to capitalize on inter-agency partnerships and: Develop Public Art Policy in coordination with newly established Arts and Culture Commission. Enhanced support of community events highlighting the diversity of Pasco. Develop a Community Engagement Plan that encourages and provides opportunities for citizens to gather. Staffing Creation of the proposed 2023 -2024 biennial budget presented opportunity and exposed need in the area of staffing. An increasing workload and growing community for many years have communicated the need for the addition of staff. Supporting this day-to-day recognition of many demands on staff time and talent has been the results of various studies including the Information Systems Plan, the Fire and Police strategic plans. Awareness of new demands on City staff, including the addition of needed accounting support for the Pasco Public Facilities Aquatic Center, assuming an operational role in the Animal Control Shelter, and the City-wide impact of anticipated growth in the Broadmoor and Industrial areas has resulted in a notable increase in staff requests. Further, the successful implementation of an aggressive capital improvement plan will require areas additional staffing. To meet the needs of the future, investment in human capital is necessary in the near term. Accordingly, the proposed budget recommends the following additional FTEs: Department 1 No. of Staff 2 Expense Funding Funding Source Net Impact Information Systems 3.4 805,984$ -$ 805,984$ Executive 3 716,151$ -$ 716,151$ Finance 2 384,021$ 103,696$ PFD Management Reimbursement 280,325$ ACS 10 2,655,429$ 237,816$ Blvd Maint. 2,417,613$ CED 4 772,963$ 382,690$ Permit Fees 390,273$ Municipal Court 2 250,002$ 116,645$ Grant 133,357$ Police 14 4,102,090$ 1,263,279$ Grant & Criminal Justice Tax 2,838,811$ Fire 9 2,043,638$ 1,397,999$ Grant 645,639$ Human Resources 0.5 113,518$ -$ 113,518$ Engineering 3 992,199$ -$ 992,199$ Total 50.9 12,835,995$ 3,502,125$ 9,333,870$ General Fund Overview of Carry-Overs The 2023-2024 proposed biennium budget is prepared with the accounting practice of carry overs in place. This practice was implemented in the 2021-2022 budget. The technical accounting definition of a carryover is an amount that moved from an earlier accounting period to a later one. Project schedules shift for multiple reasons, permitting, funding, property acquisition, etc., and the implementation of a carry-over system will provide a continuation of funding to a project as schedules vary. In terms of Council oversight, all funds expended during the current biennium would still require Council authorization. The carry-over process simply provides a process by which Council can authorize carry-over funding of a project(s) into the new biennium. This practice adds a layer of sophistication to the budget process and provides clarity with respect to the true capital budget for the given biennium, and avoids the confusion created by including projects that have been approved in prior budgets (like a Lewis Street Overpass project) into the new biennium, which overstates the City’s capital budget. Balancing General Fund The past few years have been dynamic at the City of Pasco. With the uncertainty of pandemic effects, budgeting was cautious during the previous biennium. However, in spite of the nationwide uncertainties, Pasco recognized healthy revenues and ended 2020 and 2021 with available, termed unassigned, ending fund balances of $25.8M and $21.7M, respectively. The anticipate ending fund balance as of the end of 2022 is $28.5M. Fund 1 No. of Staff 2 Expense Funding Funding Source Net Impact Ambulance 12.6 2,869,445$ 2,096,996$ Grant 772,449$ Fleet 3 707,441$ 707,441$ Rates Animal Shelter 20 2,786,167$ 1,857,445$ 2/3 funded from cities 928,722$ Equipment Replacement 0.5 103,696$ 103,696$ Interfund charges -$ Water 8 1,780,969$ 1,780,969$ Rates -$ Sewer 4 871,301$ 871,301$ Rates -$ PWRF 2.5 300,095$ 300,095$ Rates -$ Medical Insurance 0.5 113,517$ 113,517$ Rates Total 51.1 9,532,631$ 7,831,460$ 1,701,171$ Other Funds Planning for coming 2023 -2024 biennium revenue remains challenging. While there is recognition of our past years’ robust sales tax revenues, a large percentage of the sales tax revenue, 51%, is tied to construction activity in the years of 2019 – 2022. Based on the potential for growth in the City’s economic base in the Broadmoor Area, the long-term prognosis is a more diverse and strengthened tax base. However, the timing of construction and resulting community is largely dependent on private investment. The City of Pasco has completed an analysis and anticipates the adoption of a Tax Incremental Financing (TIF) Broadmoor Area. Adoption, and subsequent related debt issuance, will allow for substantial infrastructure improvements in the Broadmoor Area that are to be made to augment private development. Based on the “101 limitation” for property tax revenue growth new construction, and the accompanying growth in sales and utility tax base, is an important facet of the City’s financial wherewithal to fund improvement in City services and community amenities. The City has grown substantially in population over the past decade both in population and complexity. This trend is anticipated to continue. For example, the proposed budget includes new staff to support animal shelter operations, an additional fire station, innovative police staffing in the form of district policing, administrative support for the construction of the Pasco Public Facilities District’s aquatic center, and a plethora of sizable capital improvement projects that demand much in both staff time and financial equity. Considering the impact of coming biennial demands, the General Fund is expected to reduce in fund balance by approximately $10M by the end of the 2023 - 2024 biennium. Accounting for a significant portion of this reduction are the addition of annual debt service in the amount of $5.2M for the TIF area. As development occurs and property tax assessments grow, and utility and sales tax accrue, the resulting revenue will supplant this payment. The remaining difference between annual revenues and expenses are the result of one-time spending on capital projects in the amount of $3M, most of which are small in dollar value. Most notable in the list are one-time improvements to City Hall to provide space for staffing needs, regional wayfinding project improvements, and improvements to the antiquated police training facility. Other one-time expenses included in the proposed 2023 – 2024 biennial budget are information technology ($2.6) and equipment or service purchases ($600K), totaling $3.2M. Infrastructure Funding As the City’s infrastructure ages and the City grows, systems are faced with two different kinds of financial pressures. While in concept new growth is expected to mitigate its impacts, this process does not happen prior to or even during development. The City a imposes a variety of impact, mitigation, latecomer’s fees and other development-related charges and costs. However, the current fee schedules do not always meet the growing cost. Therefore, the coming biennial budget includes plans to review and reevaluate fire impact fees, traffic impact fees, the rates charged when new customers join the utilities and park development fees. These exactions are, as a function of State law, often recouped over many years following the time a commercial or residential development starts its operation. Additionally, the City has the obligation to develop capital facilities necessary to support basic services. Council approved the 2022 - 2028 Capital Improvement Plan CIP) totaling $833M in October of this year. Of that value, projects valued at $470M are planned to be completed by the end of the 2023-2024 biennium. City staff remains committed and in active pursuit of low-interest loans and grants to help fund capital projects. GENERAL FUND Revenue The chart below portrays budgeted General Fund revenues, by source, projected for the 2023-2024 biennium. Total general revenues, excluding sources that are one-time in nature, of $143.7 M are projected for the biennium. This is an increase of 9.3% from the 2019-2020 adopted budget due primarily to several factors: Strong sales tax receipts fueled by new, and large project, construction. Growth related increase in assessed valuation and associated property tax revenues. Accounting change in receipting of utility taxes – receipted into General Fund then transferred out. Increased utility tax receipts due to large part to additional customers and less so to rate changes. A continued focus on efficiency has resulted in greater revenues through: o Business Licensing Program o Engineering overhead recovery, development and a more robust list of budgeted capital projects. 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Property TaxesSales TaxesUtility TaxesOther TaxesLicense & PermitsIntergovernmentalFees & ChargesFines & ForfeitsOther Sources2023- The three major revenue sources to the General Fund are the City’s share of sales tax, utility tax, and property tax. A brief synopsis of each major revenue source is as follows: Sales Tax – Sales tax is the General Fund’s largest revenue stream and includes regular Retail Sales Tax, as well as Criminal Justice and Public Safety Sales Tax. The latter two taxes are mandated to provide public safety services to the citizens of Pasco, while the regular retail tax funds all general services. Since 2014, sales tax revenues have trended upward, averaging more than 5% growth annually. This growth has been fueled by new construction and supported by a modestly expanding commercial inventory, auto, and large equipment sales. Even during the COVID pandemic, the City has received strong sales revenue due to increased activity in construction and vehicles sales. Utility Tax – An 8.5% tax on gross revenues of all public utilities is paid to the City on a monthly basis by system users. The City’s Water, Sewer, Irrigation, Stormwater, and Reuse utilities are subject to utility tax, as well as companies who provide natural gas, electricity, phone, cable, and garbage services in the City limits. The General Fund receives 88.23% of utility tax revenue, while the Street Fund receives 2.35% and the Overlay Fund receives 9.42%. While new home construction creates more accounts and revenue, extreme cold and hot weather are big factors in overall revenue from this source. This impact is especially true where electric utility tax is concerned. The City has seen a steady decline in telephone utility tax since 2014. This is likely due to the competition of many service providers and the diminishing use of landlines. Although utility tax revenue reflects very measured growth, it is a stable source of recurrent revenue to the City. Property Tax – A major challenge faced by the City is to manage the real world increases in the costs of providing essential services and increasing demands with the limitations of Initiative 747 (I-747). I-747 limits yearly property tax increases to the lessor of 1% excluding new construction) or the Implicit Price Deflator (IPD). This means that even though the City’s assessed valuation has been increasing significantly, the increase in property tax revenue across the City cannot follow the same trajectory. Property tax revenue for the City has been increasing higher than 1% due to new construction; however, a recession can significantly affect such revenue source. For 2023, Council has decided to forego collection of the statutorily allowed 1% annual increase and banked the capacity for possible future use. Other Tax – About 2% of the total tax revenue is comprised of Gambling, Leasehold and Admission Tax. Taxes make up 74% of the 2023-2024 General Fund revenue, excluding debt proceeds. Grants – The City often receives grants for one-time purchases or temporary funding of positions. During the 2023 -2024 biennium, the addition of 15 new staff members in the Fire (6) and Ambulance Funds (9) by a Staffing for Adequate Fire and Emergency Response SAFER) grant that was awarded to the City in the last quarter of 2022. The grant period extends for a period of three years. The grant does not cover related equipment, supplies or overtime. Ultimately, a contingent of staff similarly sized will operate at the currently under construction Fire Station 85. During the coming biennium, staff will assess potential revenue sources to absorb the cost of the SAFER funded employees. Expense Before addition of new requests, composed of items like capital, staffing and one time information technology purchases, the General Fund expenses for the 2023 -2024 biennium are proposed to be $132M, an increase of 9%. As compared to the expense change between the 2019 – 2020 and 2021-2022 budget totals this increase is following the trend. When reporting the 2021 – 2022 proposed biennial budget the increase was also 9%. With the addition of proposed new on-going type requests, the expense budget increases another 10%. Additional staff needs are a combination of actual and planned growth. For example, Fire Station 85 construction and service area need. The new staffing also reflects community needs outlined in plans and studies. A few relative positions include an policy analyst to help foster implementation of the Downtown Master Plan and added Police Department staffing to implement District Policing. Also driving staff additions are new community amenities and improvements like the Aquatic Center and improvements by way of Local Improvement Districts and at the PWRF. In order to well service the administrative needs the come with new areas of accounting and record keeping, existing staff is unable to keep pace and new staff is needed. Also impactful is the City’s experience based on state legislation regarding Paid Family Medical Leave which was available for use beginning in 2020. Since 2020, the City has experienced an increase in overtime and unpredictable extended leave trends at the city-wide level. To avoid underserving citizens or staff burnout, the City staff levels cannot remain as lean as past practices have allowed. Supplies from last biennium to proposed 2023 – 2024 have increased approximately 7%. As always with the growth in population both our supplies and services budgets increase. However, not unexpectedly, with recent inflation impacts, the 2023 – 2024 budget also reflect inflationary implications greater than typical. During our mid-biennium review, it will be necessary to see if the budgeted items may have benefitted from a cooling in inflation. UTILITY SERVICES The greatest challenge for the Utility Fund is to ensure financial self-sufficiency; that the infrastructure is kept in good service and that new capital needs or large maintenance or improvement requirements are anticipated, planned and communicated in a timely manner to Council. Council has approved the City’s 2023-2028 CIP which accounts for the majority of the key issues this fund is facing. Needed upgrades or replacement of aging infrastructure that has reached or is nearing the end of its useful life, as well as the Growth Management Act (GMA), which requires the City to have capital facilities in place and readily available when new development occurs or a service area population grows, drives the capital project aspects of this fund. The City expects to expend close to 148.5M in capital projects in this biennium cycle. Staff will pursue grants, low interest loans, and finally, revenue bonds, as funding options for these projects. This significant investment to the backbone of the City will require modest rate increases in Water and Sewer services in the future. As utilities require significant infrastructure investment, anticipating necessary improvements in a proactive fashion is critical to provide safe, reliable, and efficient vital services to our residents. To reflect the significant capital project load, (3) additional FTEs, a traffic engineer, CIP inspector and a grant/loan & bond administrator, are proposed. As the result of system growth, the City has added the following (12) FTE’s in utilities, (3) FTE maintenance workers (7) plant operators and (1) pump mechanic in 2023 & (1) additional in 2024. 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 TransfersWagesBenefitsSuppliesServicesNew Ongoing Requests2023-2024 Budgeted General Fund Operating Expenses 2023 Budget AMBULANCE SERVICES Access to sustainable, reliable, and efficient ambulance service for its residents, businesses and visitors has been a top priority for the Council and the community. To that end, the Council has put considerable effort and investment into fiscally stabilizing the fund. Council has supported the concept of growth by approving the construction of two replacement stations (Fire Stations 83 and 84) along with the relocation of Station 83 north of Interstate 182 to address increased call volumes in the area. The next phase of the increased capability is the addition of Station 85 which will be possible due to a Federal Emergency Management Agency (FEMA) Staffing For Adequate Fire and Emergency Response (SAFER) grant. The SAFER grant will cover the personnel costs to fully staff Station 85 for three years. The additional station will increase the capability and decrease the response times in the Broadmoor/Road 100 area of the city as well as addressing initial growth in the next few years. The additional capability will reduce response times not only for the western portion of the city but will also allow other units to remain in service within their designated station boundaries. Capabilities, coverage, quality and timeliness continue to be areas of improvement as part of the planning the department has done to address anticipated increase in demand for services. The City has completed a rate study for the household ambulance rate which has been presented to Council and with their approval will introduce a phased approach in rate increase implementation. This phased in approach will result in a rate that will provide monthly ambulance rates equal to 83% of cost in year 2026 with the cessation of the SAFER grant and full construction and operation through Stations 81 through 85. However, not anticipated to be included in the rate increase are the effect of any additional stations outlined in the City’s Capital Improvement Plan. Based on timing and location of additions to residential and commercial population, careful consideration will be necessary. While the rate study projected the rate needed to support the ambulance portion of the added station costs, the General Fund burden is not rate financed, but instead dependent upon tax revenues. General Fund revenues support many departments. Financial planning and careful consideration of City-wide needs are a necessary consideration in these decisions. Additionally, the implementation of the Pasco Resource Navigator (PRN) program to provide assistance to high utilizers of the ambulance system have addressed the proper and appropriate use of the ambulance services. The use of contracted Navigators assisting those in need of resources to the appropriate agencies has allowed ambulances to remain in service for immediate emergencies, as designed. The investment made to the Ambulance Service, coupled with enhancements to the Fire Department, have made a significant and positive impact to the safety of the community. The needs of this fund are unique; as in, this is a highly regulated area with high equipment standards, daily demands that regularly tax the capacity of the system, constantly increasing and sometimes widely fluctuating costs for medical supplies, and a specialized workforce requiring significant ongoing training and advanced certifications. On the financial side, the fund experiences a high population of Medicare, Medicaid and uninsured patients as compared to ambulance utilities in other local jurisdictions. In the case of Medicare and particularly Medicaid, this demographic composition results in lower reimbursement revenue from the federal government as compared to private insurance reimbursement. These lower reimbursements, coupled with the high number of uninsured patients, had an adverse impact on revenues to the fund, which in turn has necessitated increases in monthly rates. The Council has faced this economic challenge for the past several years. Washington State and ambulance service providers have made considerable progress in implementing the Ground Emergency Medical Transport GEMT) program, which in part provides reimbursement to local ambulance providers for service to Medicaid patients, including transports. When GEMT billing program began the City budgeted cautiously based on the uncertainty surrounding and new program. As experience has been gained, the revenue stream is known. Therefore, reliability of expectation has allowed for the related budgeted revenues to increase. ARPA Fund With the approval of the Coronavirus State and Local Fiscal Recovery Funds from the U.S. Department of the Treasury in 2021, the City received approximately $17.5 million. These funds are intended to address impacts of the COVID-19 pandemic and can be used for one of the following purposes: responding to the public health emergency caused by COVID or its economic hard, premium pay for eligible essential workers, revenue replacement or investment in water, sewer or broadband infrastructure. Further, these funds must be expended by December 31, 2026. In order to effectively track the use of these funds to ensure compliance with federal guidelines, the City established a separate fund named the ARPA fund. During the 21-22 biennium, the City expended approximately $3.5 million on services such as utility payment assistance, business assistance and staffing the Community Resources Specialist position. In the coming biennium, the City plans to utilize this funding to make significant facility upgrades to a city-owned building occupied by the Boys & Girls Club, partially fund the Martin Luther King Community Center, implement the Downtown Outdoor Dining Program, expand regional mental health services through the implementation of the Pasco Resource Navigator program and two water infrastructure projects. These aforementioned planned activities for 2023-2024 total $13.5 million. SUMMARY The proposed 2023 -2024 budget seeks to satisfy or make significant progress toward the City Council’s adopted goals for 2022-2023 by providing for the implementation of important policy decisions made by the City Council through the process of prioritization, recognition and implementation of efficiencies. Developing a balanced budget is always a challenge. A helpful decision-making filter used in budget considerations and the very purpose of this organization is as follows: If the City and its services went away tomorrow, why would the people want us back? As with the prior biennium, this proposed budget attempts to maximize value through the efficient provision of services while minimizing the level of taxes, rates and fees paid by the citizens of Pasco. This biennial budget also serves to move the City in new directions that maximize potential and grow in the direction of prior long-range planning efforts, recently adopted plan updates and studies, all to the benefit of future generations. Looking toward the future many exciting developments are anticipated. During the next few years, it will be vitality important to consider the impact of growth within the City and how best to fund and implement changes in the City’s financial planning. An important element of future planning and stability are fund balance and reserve balance decisions. Historically, the City has considered fund balance. However, best financial practices include reserves planning as well. Fund balance policies preserve the ability to cover short term operational funding, whereas reserves policies and practices plan for unforeseen financial events and are more long term in nature. I want to acknowledge the public for their willingness in presenting their concerns and priorities throughout the year in different venues: community meetings, listening sessions, National Community Survey, correspondence, social media, and City Council meetings. And, also, the members of the City Council for their efforts to distill all that comes before them into clear policy direction; particularly in the development of the 2022-2023 City Council Goals, which have served as a roadmap to preparing the 2023-2024 preliminary budget. Finally, I want to acknowledge the dedication and service of the City’s employees. The proposed budget is the product of an intensive effort by all departments to ensure that this is not just a document, but a plan, to best serve those who live and invest in the community. Finally, as this is the last budget I will submit for Council’s consideration, I want to thank the Pasco City Council, past and present, for their support and guidance over the past eight years. My service to Pasco has been of the most challenging, satisfying, and productive of my 42-year career in local government, in large part because the City Council has had the vision and courage to move the City forward, and an incredible team of professionals, city staff, have put their backs, hearts, and minds into the betterment of our community. Sincerely, Dave Zabell City Manager