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Home My WebLink About2025.08.11 Council Special Workshop Packet AGENDA City Council Special Workshop 5:30 PM - Monday, August 11, 2025 Pasco City Hall, Washington Conference Room Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - To listen to the meeting via phone, call 1-323-676-6197 and use access code 680 067 484#. 2. CALL TO ORDER 3. ROLL CALL 4. ITEMS FOR DISCUSSION 2 - 34 (a) Budget and Policy Direction 5. ADJOURNMENT 6. ADDITIONAL NOTES 35 - 36 (a) Adopted Council Goals (Reference Only) Page 1 of 36 August 11, 2025 Pasco City Council Retreat Pa g e 2 o f 3 6 Review 2 Pa g e 3 o f 3 6 General Fund Projections 3 Pa g e 4 o f 3 6 2025-2026 BUDGET 4 •27 General fund positions left vacant •Reduction in vehicle and equipment replacement investment •Reduction in travel and training •Lean process reviews across all departments Pa g e 5 o f 3 6 5 •Includes 27 positions vacant for future (8 in Public Safety) •Library cost is removed for the next biennium •1.5% Increase in Utility Tax for City managed utilities •3-3.5% Increase in annual increase in salaries and benefits •Does not include payment from partners for Tax Increment Financing that will need to be paid back (cash flow between years issue) ASSUMPTIONS OF GENERAL FUND PROJECTION Pa g e 6 o f 3 6 6 •Anticipates higher insurance premium increases •Anticipates higher costs related to new Animal Shelter ILA •Anticipates higher Jail ILA •Anticipates higher than budgeted overtime increases •Resumes full investment in Vehicle and Equipment after this biennium ASSUMPTIONS OF GENERAL FUND PROJECTION Pa g e 7 o f 3 6 BROADMOOR 7 •Property Tax – Approximately $3-4M by 2035 (Includes County & Port portion) •Property tax rate impacts the amount City collects in new construction and 1% increase thereafter •Ongoing Sales Tax – Approximately $2.0M by 2035 •Construction Sales Tax – One time sales tax of approximately $20M Pa g e 8 o f 3 6 BROADMOOR 8 •REET revenue is estimated to be $10M by 2035 •Utilize these funds for public safety capital needs like radios, towers, etc. •Development Incentives to considerPa g e 9 o f 3 6 HIGH LEVEL PROJECTION OF BROADMOOR REVENUE 9 0 5 10 15 20 25 30 35 40 45 2027 2028 2029 2030 2031 2032 2033 2034 2035 Mi l l i o n s With Broadmoor Without Broadmoor Broadmoor Onetime Construction Sales Tax Pa g e 1 0 o f 3 6 10 Pa g e 1 1 o f 3 6 11 Pa g e 1 2 o f 3 6 12 LABOR IMPACTS 6.0% each year for Public Safety 4.5% for remainder 3.0%-3.5% each year for all salaries Pa g e 1 3 o f 3 6 POLICY DISCUSSION - STAFFING 13 •27 General Fund Positions left vacant •8 Public Safety •Continue to leave them vacant? •Average of 3.0%-3.5% increase in salary annually Pa g e 1 4 o f 3 6 Upcoming Actions 14 Pa g e 1 5 o f 3 6 LIBRARY - ACTION 15 •Potential timeline •August 2025 – Presentation from MCL •September 2025 – Notification of termination (starts 18-month clock) •Earliest Ballot opportunity – February 2026 •Additional opportunities to put this on ballot: •November 2026 •February 2027 Pa g e 1 6 o f 3 6 UTILITY TAX 16 Utility Tax Increase 1.0%1.5%3.0% Water $ 172,895 $ 259,342 $ 518,684 Irrigation $ 27,374 $ 41,060 $ 82,121 Sewer $ 136,821 $ 205,232 $ 410,464 PWRF $ 240,000 $ 360,000 $ 720,000 Storm $ 24,899 $ 37,348 $ 74,697 Total $ 601,988 $ 902,983 $ 1,805,965 Pa g e 1 7 o f 3 6 BENCHMARKS 17 Service Electric Water/Irrigation Refuse Gas Sewer Stormwater Cable Television Telephone Pasco 8.5%8.5%8.5%8.5%8.5%8.5%8.5%8.5% Kennewick 8.5%8.5%8.5%8.5%8.5%8.5%8.5%8.5% Richland 8.5%12.3%10.5%8.5%10.5%8.5%7.5%8.5% West Richland 6.0%13.5%8.5%6.0%13.5%6.0%6.0%6.0% Vancouver 6.0%20.0%20.0%6.0%20.0%20.0%5.0%6.0% Pa g e 1 8 o f 3 6 UTILITY TAX - ACTION 18 •Impact to utility rate – 1.5% utility tax increase results in 0.25% increase in current rates in water and sewer •Potential timeline •August 2025 – Rate Study Sessions •September 2025 – Workshop Meeting •October 2025 – Community Outreach (rate discussion) •November 2025 – Council Action •Effective January 1st, 2026 Pa g e 1 9 o f 3 6 TRANSPORTATION BENEFIT DISTRICT (TBD) 19 •Special Purpose District that funds transportation improvements within specific area. •City Council serves as the governing board of the district, holding separate meeting as the TBD. •124 cities in Washington state have adopted TBD. •Up to $50 can be implemented without a public vote, but must be phased in over time: •$20 can be imposed immediately. •$40 can be imposed after $20 has been in effect for 24 months. •$50 can be imposed after $40 has been in effect for 24 months (subject to referendum). Pa g e 2 0 o f 3 6 BENCHMARKS 20 Service Vehicle License Fee Sales Tax Pasco None None Kennewick 0.1% Richland $20 West Richland None None Prosser $25 Walla Walla 0.20% Pa g e 2 1 o f 3 6 TBD - ACTION 21 •Decision Points •Sales tax vs. Vehicle License Fee - Recommended: Vehicle License Fee •Geographic boundary of the district: Recommended: all city limits •Scope – Recommended: pavement maintenance & reconstruction, street and traffic maintenance and operations, and other transportation related capital projects. Pa g e 2 2 o f 3 6 TBD - ACTION 22 •Revenue •Sales Tax 0.1% - $2.3M •Vehicle License Fee ($20) - $1.3M •Potential timeline •August 2025 - Workshop Session •September 2025 – Outreach •November 2025 – Council Action •Effective January 1st, 2026 Pa g e 2 3 o f 3 6 23 Pa g e 2 4 o f 3 6 24 Pa g e 2 5 o f 3 6 25 HB 2015 - ACTION Pa g e 2 6 o f 3 6 HB 2015 - ACTION 26 •Revenue •Sales Tax 0.1% - $2.3M •Grant – 75% FTE, up to $125K per position •Potential timeline •August 2025 - Workshop Session •September 2025 – Outreach •Before October 18th 2025 – Council Action •Effective January 1st, 2026 Pa g e 2 7 o f 3 6 Potential Issues 27 Pa g e 2 8 o f 3 6 AMBULANCE FUND 28 •The GEMT program provides supplemental payments to qualified GEMT providers. Payments cover the funding gap between a provider’s actual costs per GEMT transport and the allowable amount received from Washington Medicaid. •City’s Ambulance fund receives $2.9M annually to make up for low Medicaid reimbursement rates. •General fund subsidizes Ambulance Utility heavily. Reduction in GEMT and subsidy will increase Ambulance Utility fee. •Staff is working on what loss of GEMT and subsidy would look like for Ambulance fee. Pa g e 2 9 o f 3 6 ANIMAL SHELTER 29 •New ILA effective after move to new facility. •This ILA requires cost to be broken out to base and usage pay. •Usage pay is based on number of animals intake from each City. •Currently Pasco makes up 51% of animals received in the facility. •Fiscal impact above budgeted levels is for 2025- 2026 Biennium budget - $911K. Pa g e 3 0 o f 3 6 MEDICAL FUND 30 •Low premiums, not increased in a long time. •Increased staffing, with that increased family participation. •COVID -19 – different medical need patterns. •2023, 2024 – increased use of medical services. •February, 2024 – National hack of healthcare claims processing system. •August, 2024 – City’s healthcare administrator filed for bankruptcy. •2025 – Catching up in claims from 2023 and 2024. Pa g e 3 1 o f 3 6 MEDICAL FUND - ACTION 31 •Loan to medical fund. •Exploration of new premium structures and benefits. Pa g e 3 2 o f 3 6 OTHER ISSUES 32 •Indigent Defense – Increase cost of new regulations. •CDBG – Impacts of removal of this program as previously discussed with Council. Pa g e 3 3 o f 3 6 QuestionsPa g e 3 4 o f 3 6 Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure. City Council Goals QUALITY OF LIFE 2024-2025 Enhance the long-term viability, value, and service levels of services and programs. FINANCIAL SUSTAINABILITY Promote a highly functional multi-modal transportation system. COMMUNITY TRANSPORTATION NETWORK Implement targeted strategies to reduce crime through strategic investments in infrastructure, staffing, and equipment. COMMUNITY SAFETY Promote and encourage economic vitality. ECONOMIC VITALITY Identify opportunities to enhance City of Pasco identity, cohesion, and image. CITY IDENTITY Page 35 of 36 METAS DEL CONCEJO MUNICIPAL 2024-2025 Promover una alta calidad de vida a través de programas, servicios y inversion apropiada y reinversión en la comunidad infraestructura comunitaria. CALIDAD DE VIDA Promover viabilidad financiera a largo plazo, valor, y niveles de calidad de los servicios y programas. SOSTENIBIILIDAD FINANCIERA Promover un sistema de transporte multimodal altamente funcional. RED DE TRANSPORTE DE LA COMUNIDAD Implementar estrategias específicas para reducir la delincuencia por medios de inversiones estratégicas en infraestructura, personal y equipo. SEGURIDAD DE NUESTRA COMUNIDAD Promover y fomentar vitalidad económica. VITALIDAD ECONOMICA Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen. IDENTIDAD COMUNITARIA Page 36 of 36