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
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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
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1
Aquatic Center
Pasco Public Facilities District
October 25, 2021
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2
Agenda
•Aquatic Facility
Concept
•Financial Analysis
Discussion
•Upcoming Election
2
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3
Aquatic Facility
Concept
3
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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.
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5
Facility
Amenities
5
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6
Facility
Features (typical)
6
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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
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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
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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.
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10
Financial
Analysis
Methodology and
Findings
10
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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
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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
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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
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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
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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
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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
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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
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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
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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