Loading...
HomeMy WebLinkAbout2021.10.19 PPFD Agenda PacketPasco Public Facilities District Board Building Regional Facilities through Community Partnerships  Documents will be provided with Agenda. AGENDA Tuesday, October 19, 2021 4:00 p.m. Pasco City Hall – Council Chambers https://global.gotomeeting.com/join/440094813 United States: +1 (646) 749-3112 One-touch: tel:+16467493112 , 440094813# Access Code: 440-094-813 I. Call to order and roll call II. Recognition of Visitors/Public Comments III. Approval of Minutes:  September 21, 2021 PPFD Meeting Minutes IV. Claims Approval:  Third (3rd) Quarter 2021 Expenses V. Financial Report:  Third (3rd) Quarter 2021 1. Balance Sheet 2. Statement of Revenues, Expenditures and Changes in Fund Balance • Loan Request to City of Pasco VI. Old Business:  Review of City Council Presentation (Mark Morrissette & Zach Ratkai) VII. New Business:  Discussion of Proposed Resolution Providing for the Submission of a Proposition to Qualified Voters of the Pasco Public Facilities District, Imposing a 2/10ths of 1% Sales and Use Tax for the Purpose of Funding an Aquatic Facility and Requesting that the Franklin County Auditor place the Proposition on the February 8, 2022 Ballot. (Eric Ferguson, PPFD Attorney) VIII. Adjournment: September 21, 2021 PPFD Minutes Page - 1 PASCO PUBLIC FACILITIES DISTRICT BOARD SEPTEMBER 21, 2021 SPECIAL MEETING MINUTES Call to Order: Pasco Public Facilities District (PPFD) President Morrissette called the meeting to order at 4:01 PM the in the Council Chambers at Pasco City Hall and via GoToMeeting. Roll Call: BOARD MEMBERS CAROLINE BOWDISH Board Member– Secretary / Treasurer Present LEONARD DIETRICH Board Member Present MARIE GILLESPIE Board Member – Vice President Present - Remote SPENCER JILEK Board Member Present MARK MORRISSETTE Board Member – President Present COUNCIL & STAFF CRAIG MALONEY Council Liaison Present - Remote DAVID MILNE Council Liaison Present at 4:05 PM DAVE ZABELL City Manager Present at 4:04 PM ERIC FERGUSON City Attorney Present ZACH RATKAI Administrative & Community Srvs. Director Present - Remote DEBBY BARHAM City Clerk Present Approval of Minutes: Mr. Dietrich moved, and Ms. Bowdish seconded a motion to approve the minutes of the August 17, 2021 regular meeting with two (2) minor amendments to the minutes. The motion carried unanimously. Executive Session: The Pasco Public Facilities District (PPFD) Board adjourned into Executive Session at 4:03 PM for 20 minutes to discuss potential litigation with Legal Counsel Per RCW 42.30.110 (i) with the City Attorney. President Morrissette called the meeting back to order at 4:31 PM. No action was taken after the Executive Session concluded. DRAFT September 21, 2021 PPFD Minutes Page - 2 New Business: PPFD Charter Amendments Mr. Ferguson reviewed the proposed amendments to the PPFD Charter stating that the changes will bring the Charter current. He noted the PPFD Charter amendments are scheduled to be approved by Council at their October 4, 2021 Meeting. Presentation to City Council Mr. Morrissette stated the proposed presentation is scheduled for City Council at their October 25, 2021 Workshop. While he ran through the presentation, he requested feedback from the PPFD Board members to ensure that the presentation is ready for the Council Workshop. RECESS: Mr. Morrissette called for a five-minute recess at 4:48 PM to set up a new PowerPoint presentation; however, the Council Chambers also experienced issue with the audio malfunction and there was no sound in the GoToMeeting connection. Therefore, the meeting resumed at 5:00 PM. Presentation to City Council Continued The PPFD Board and Mr. Ratkai continued the dry run of the presentation and the PPFD Board provided suggestions to make the presentation clearer. Mr. Ferguson stated that RCW 82.14.048 the sales tax will not sunset at the end of the payment of the Bond. Timeline for Ballot Submittal Mr. Ratkai summarized the timeline leading up to the submittal to the Franklin County Auditor for the February 2022 Ballot. Mr. Ratkai updated the PPFD Board for the Washington State Department of Commerce’s independent financial study. Other Business: The next meeting was the regularly scheduled meeting is October 19, 2021 at 4:00 PM. September 21, 2021 PPFD Minutes Page - 3 Adjournment: There being no other further business, the meeting adjourned at 5:48 PM. APPROVED this ___ day of ______________________, 2021 ________________________________ __________________________________ Mark Morrissette, President Debra Barham, Pasco City Clerk JE / CHECK Date Status Source Payee Name Transaction Amount Revenue 931.13.590.31.1311 PFD Sales 2021-2273 7/30/2021 JE Wa State Treasurer 63,543.52 2021-2448 8/31/2021 JE Wa State Treasurer 69,271.54 2021-2782 9/30/2021 JE Wa State Treasurer 65,252.90 198,067.96 931.13.590.34.4527 2021-0909 7/1/2021 JE Pasco PFD 1,666.67 2021-0909 8/1/2021 JE Pasco PFD 1,666.67 2021-0909 9/1/2021 JE Pasco PFD 1,666.67 5,000.01 Total Revenue 203,067.97$ Expense 931.13.590.54.4530 Legal Services 2021-1805 7/6/2021 Accounts Payable Kerr Law Group 748.50 2021-2174 8/10/2021 Accounts Payable Kerr Law Group 2,902.50 2021-2558 9/14/2021 Accounts Payable Kerr Law Group 1,116.00 4,767.00 931.13.590.54.4540 Organization Services 2021-1805 7/1/2021 Accounts Payable Kennewick Public Facilities District-June 62,857.48 2021-2163 8/9/2021 Accounts Payable Kennewick Public Facilities District-July 63,543.52 2021-2400 9/1/2021 Accounts Payable Kennewick Public Facilities District-Aug. 69,271.54 195,672.54 931.13.590.54.4635 Insurance Premiums 2021-117 7/1/2020 JE Insurance Premiums 282.48 2021-117 8/1/2020 JE Insurance Premiums 282.48 2021-117 9/1/2020 JE Insurance Premiums 282.48 847.44 931.13.590.54.4900 I/F Admin Services 2021-2610 7/1/2020 JE City of Pasco 1,000.00 2021-2610 8/1/2020 JE City of Pasco 1,000.00 2021-2610 9/1/2020 JE City of Pasco 1,000.00 3,000.00 Total Expense 204,286.98$ CITY OF PASCO - PRODUCTION Payment Register From Payment Date: 7/01/2021 - To Payment Date: 9/30/2021 PFD Pasco Support ASSETS Cash 31,199$ Prepaid Insurance 847 TOTAL ASSETS 32,047 LIABILITIES Accounts Payable - TOTAL LIABILITIES - TOTAL NET ASSETS 32,047$ PASCO PUBLIC FACILITIES DISTRICT BALANCE SHEET As of September 30, 2021 Annual Current YTD Variance % Received/ 2021 Period 2021 Budget / YTD Used Account Description Budget Acitivity Actual Actual Actual REVENUES Sales Tax 500,000$ 198,068$ 426,216$ 73,784$ 85.24% City of Pasco Grant 20,000 5,000 15,000 5,000 75.00% Interest Income 200 - - 200 0.00% Total Revenues 520,200 203,068 441,216 78,984 84.82% EXPENDITURES Advertising/Publications 500 - 317 183 63.41% Legal Services 1,200 4,767 6,554 (5,354) 546.13% Kennewick PFD 500,000 195,673 360,963 139,037 72.19% Professional Services 5,000 - 113 4,887 2.26% Insurance 3,150 847 2,542 608 80.71% Administrative Services 12,000 3,000 9,000 3,000 75.00% Total Expenditures 521,850 204,287 379,489 142,361 72.72% Net Change in Fund Balances (1,650) (1,219) 61,727 (63,377) -3741.03% Beginning Fund Balance, January 1 (29,680)(29,680)(29,680) (29,680) 0.00% Ending Fund Balance (31,330)$ (30,899)$ 32,047$ (93,057)$ -197.02% As of September 30, 2021 PASCO PUBLIC FACILITIES DISTRICT STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE Click to edit Master title style 1 Aquatic Center Pasco Public Facilities District October 25, 2021 Click to edit Master title style 2 Agenda •Aquatic Facility Concept •Financial Analysis Discussion •Upcoming Election 2 Click to edit Master title style 3 Aquatic Facility Concept 3 Click to edit Master title style 4 Initial Facility Concept 4 Area Summary Description Phase I Phase II Total Facility Area 46,930sf 13,170sf 60,100sf Total Site Area (SF/Acres) 174,672sf 4 acres 26,688sf .61 Acres 201,360sf 4.61 Acres Timing Immediate Projections show that Cash balance can pay for Phase II after 12-15 years Features -Indoor leisure pool -Outdoor activity pool -Wet classroom/Party Room -Concessions (outdoor) -Locker Rooms and Support -Indoor 8 lane competition pool. Click to edit Master title style 5 Facility Amenities 5 Click to edit Master title style 6 Facility Features (typical) 6 Click to edit Master title style 7 History •Robust Local Support •Pasco has supported project for over 10 years •Pasco Voters supported the regional effort in 2013 •57% Yes Votes from Pasco Electorate •Pasco is fastest growing city in region with the youngest population •Election and Vote History •2013 Regional PFD Election: Vote failed due to negative voting from Richland and Kennewick •No New Taxes •No Sunset Clause on Tax •Voters Felt no Need •Competition with Private Industry •2019: Legislation Passed allowing Pasco PFD to move forward on its own 7 Click to edit Master title style 8 History •2019-2021: Research and Analysis •Revisions to Original Study •Outlined size of facility, features within, and predictive costs •New Timeline for Vote and, if successful, planning and construction •Public vs Private Markets •No Indoor Public Pool •Three Fitness Clubs in Tri Cities •Difficult to fund entire facility privately (raising of liquid capital) •Private sector serves different markets (see Fitness Clubs) •Profit-driven operations could limit universal program access •Buildings tend to be built with shorter usable life span •Membership-based usage limits general community use. 8 Click to edit Master title style 9 History and Research 9 •Financial Analysis 2021 (post-Covid) •Independent 3rd Party hired by PFD •Analysis of 15 years Sales Tax History to form Projections •Included 2008 financial recession •Analysis of Predictive Operation costs and Revenue •All data based on Ballard-King Master Plan Study •Timing of Bond, Debt Service, and Timeline •$40 million Bond –5% interest •$2.8 million yearly due for debt service •25 year bond repayment period. Click to edit Master title style 10 Financial Analysis Methodology and Findings 10 Click to edit Master title style 11 25-Years Total Cost for Project 11 25 Year Bond Period Total 0.2% Sales Tax Collections $235,458,098 Phase I Costs* (Development and Operations) ($125,550,995) Phase II Costs* (Competition Pool**) ($24,785,387) Operations/Facility Subsidy from City $0 Total Remaining Cash Balance $85,121,716 * -Costs = Development, Operations, Replacement ** -Phase II to be built with cash reserve 15-years after opening Phase I What Does .2% Look Like? Multiplier 2/10 = .20 .20 x 1% = .002 Tax Cost (.2%) Purchase $10 $100 $1,00 0 PFD Tax Rate x .002 x .002 x .002 PFD Tax Total $.02 $.20 $2.00 Click to edit Master title style 12 Financial Analysis •Analyzed •Sales Tax Data (Historical 2005-2020) •Ballard King Feasibility Study •Permitting and Construction Data (2005-2019) •Pasco Aquatic Center Operations Plan (Staffing, revenues, and expenditures) •Assumptions (Phase I) •$40million -25 year bond with revenue from a .2% sales tax approval •4.9% annualized growth sales tax (“middle of the road” prediction) •$2.8 Million annual debt service •Operations in the Future (conservative projections) •Ops at 5% increase (primarily labor) •Revenue at 4% increase 12 Click to edit Master title style 13 Financing 13 •Findings: •PFD has the capacity for a $40million Bond •Upon Election, PFD starts collecting .2% (.002) Sales Tax •Revenue from sales tax can accumulate prior to Bond Issuance •Base revenue can be used for bond initiation, land purchase, other start up •Bond issuance •Pays for A&E •Site Development •Facility Development •Initially Phase I facility •Also initiates debt service ($2.8 million/year, for 25 years). •Bond has a sunset –key factor in previous election •Sales Tax Revenue •.2% (.002) Revenue exceeds Expenses for Facility •All 3 scenarios shows a positive fund balance at end of each year (steady accumulation) •Also shows positive growth Click to edit Master title style 14 Financing: Initial Bond and Development Cost 14 Bond Start-Up Costs Bond Counsel (Attorney) $100,000 Financial Advisor $45,000 Dept of Commerce Feasibility Review $30,000 Underwriting Fee $250,000 City Attorney Fees $50,000 TOTAL $475,000 Total Development/Bond Cost Initial Bond Proceeds $40,000,000 Bond Start-up Costs (See Breakdown) ($475,000) Land Purchase ($2,000,000) Closing Costs (8%)($106,000) Site Development ($300,000) Const. Contingency (10%)($4,000,000) Facility Cost $33,065,000 Click to edit Master title style 15 Financing 15 •Findings: •First Four Years •Includes Capital Replacement Reserve (within Facility Operating Costs) •Shows that Phase II could conceivably be constructed within 12-15 years with no additional bond •Excess Revenue intended to subsidize operations and fund future Phase II Expansion Facility Operating Costs $0 ($1,109,473)($2,329,894)($2,446,389) Facility Administrative Costs ($26,250)($55,125)($57,881)($60,775) Total Operating Costs ($26,250)($1,164,598)($2,387,775)($2,507,164) Facility Revenues $0 $0 $1,845,723 $1,919,552 Operating Deficit ($26,250)($1,164,598)($542,052)($587,612) Bond Sale and Management ($475,000) Land Purchase ($2,000,000) Bond Payment (Debt Service) $0 ($2,838,098)($2,838,098)($2,838,098) TOTAL EXPENSE ($2,501,250)($4,002,696)($3,380,150)($3,425,710) .2% (.002) Sales Tax Revenue to PFD $3,646,391 $3,825,064 $4,012,492 $4,209,105 Excess Revenue (Expense) $1,145,141 ($177,632)$632,342 $783,395 Beginning Cash Balance $0 $1,145,141 $967,509 $1,599,851 Ending Cash Balance $1,145,141 $967,509 $1,599,851 $2,383,246 Click to edit Master title style 16 Operations and Jobs 16 •First year of operation: 2024 •Not predicted impacts to Fitness Clubs •Operated by the City of Pasco (through an Inter-local Agreement) •Final site not yet determined •Operations Estimations; Revenue vs. Expenditures, based on basic concept plan for facility only •Partnerships for operations to be considered in the future ass appropriate. •Concession operations are for outdoor portion only and considered to be seasonal. Staff Phase I Phase II Full Time 6 1 Part Time 10 3 Total 16 4 Click to edit Master title style 17 Operations and Jobs 17 •Approximately 20 jobs •Opportunities for youth Staff Phase I Phase II Full Time 6 1 Part Time 10 3 Total 16 4 Click to edit Master title style 18 2013 Election Review •Regional Public Facility District Vote from 2013 •Unofficial Findings •Region was Tax Averse •Except Pasco voters positively favored project •Concerns of Perpetual Tax •2021 Proposal is a 25-year bond •Sales Tax will Remain •Opportunity for additional facilities, capital replacement •Conflict with Private Enterprise •Amenities change to reduce impact to fitness clubs •Pre-Payment of Bond •Healthy Revenue Projections •Go to Support the Operations •No City Subsidy •Can be saved for Phase II Click to edit Master title style 19 Questions or Discussion Resolution _____ - 1 RESOLUTION NO. ______ A RESOLUTION OF THE PASCO PUBLIC FACILITIES DISTRICT PROVIDING FOR THE SUBMISSION OF A PROPOSITION TO THE QUALIFIED VOTERS OF THE PASCO PUBLIC FACILITIES DISTRICT IMPOSING A 2/10 OF 1% SALES AND USE TAX FOR THE PURPOSE OF FUNDING AN AQUATIC CENTER; AND REQUESTING THAT THE FRANKLIN COUNTY AUDITOR PLACE THE PROPOSITION ON THE FEBRUARY 8, 2022 BALLOT. WHEREAS, the Pasco Public Facilities District was duly formed pursuant to Chapter 35.57 of the Revised Code of Washington on July 15, 2002, by the adoption of City of Pasco Ordinance No. 3558, and granted all powers provided by law pursuant to RCW 35.57.010; and WHEREAS, the Pasco Public Facilities District is authorized pursuant to RCW 35.57.020 and RCW 82.14.048 to submit to the voters of the District a proposition for the increase of the sales and use tax for the purpose of providing funds for the costs associated with the financing, refinancing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, and reequipping of its public facilities; and WHEREAS, the Pasco Public Facilities District is authorized pursuant to RCW 35.57.020 (1)(c)(i) to acquire, construct, own, remodel, maintain, equip, reequip, repair, finance, and operate one or more recreational facilities other than a ski area; and WHEREAS, the Pasco Public Facilities District Board of Directors has, after due consideration and significant research, determined that it is in the best interest of the District to design, construct, and operate an indoor/outdoor aquatic center including a competition pool; and WHEREAS, the Pasco Public Facilities District Board has determined that the imposition of an additional 2/10ths of 1% sales and use tax would provide sufficient funding for the design, construction, and operation of an indoor/outdoor aquatic center including a competition pool; and WHEREAS, the Pasco Public Facilities District Board of Directors has determined that it is in the best interests of the District to place before the voters of the District, the issue of whether there should be an additional 2/10ths of 1% sales and use tax imposed; and WHEREAS, in the event of majority voter approval, the Pasco Public Facilities District shall impose up to an additional 2/10ths of 1% sales and use tax to be used to provide funds for the costs of designing, constructing, and operating of an indoor/outdoor aquatic center including a competition pool. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE PASCO PUBLIC FACILITIES DISTRICT as follows: Section 1. A special election is hereby requested of the Franklin County Auditor to be conducted within the Pasco Public Facilities District on February 8, 2022, for the purpose of Resolution _____ - 2 submitting to the qualified voters of the District for their approval or rejection, a proposition to impose an additional 2/10ths of 1% sales and use tax for the purpose of providing funds for the costs associated with the design, construction, and operation of an indoor/outdoor aquatic center including a competition pool. Section 2. The revenues from a sales and use tax would be to provide funds for the costs associated with design, construction, and operation of an indoor/outdoor aquatic center including a competition pool. Section 3. The proposition to be submitted to the voters of the Pasco Public Facilities District shall read substantially as follows: THE PASCO PUBLIC FACILITY DISTRICT PROPOSITION _____ FOR AN AQUATICS FACILITY AND COMPETITION POOL WITHIN THE PASCO PUBLIC FACILITIES DISTRICT. The Pasco Public Facilities District Board of Directors adopted Resolution [Resolution # here] concerning the design, construction and operation of an Aquatics Facility and Competition Pool within the Pasco Public Facilities District. This proposition would authorize a sales and use tax increase of 2/10ths of 1% for the purpose of paying the cost of the improvements identified in Section 2 of the Resolution. SHOULD THIS PROPOSITION BE APPROVED? Yes ________ No ________ Section 4. The Pasco Public Facilities Board of Directors hereby directs its Clerk to provide a certified copy of this Resolution to the Franklin County Auditor for the calling of a special local election to be held on February 8, 2022. The Pasco Public Facilities District Attorney is authorized and directed to make such revisions in the statement of the Proposition as required by the Franklin County Auditor and the Franklin County Prosecuting Attorney. Section 5. The Franklin County Auditor is hereby requested, consistent with the statutory requirements, to cause the proposition identified above to be on the February 8, 2022 ballot; conduct the election; canvass the votes; and certify the results. Section 6. In the event of majority voter approval, the Pasco Public Facilities District shall take measures to impose the addition of a 2/10ths of 1% sales and use tax and to provide that those funds be used for the purpose of providing funds for the costs associated with the design, construction and maintenance of an aquatics facility and competition pool. PASSED this ______ day of ________________, 2021. Resolution _____ - 3 PASCO PUBLIC FACILITIES DISTRICT __________________________________ Mark Morrissette, Board President Attest: Approved as to Form: __________________________________ _______________________________ Debby Barham Kerr Ferguson Law, PLLC Clerk Attorney for Pasco Public Facilities District