|
In addition to establishing a Vehicle Licensing Fee, we recommend the County pursue a County Road
<br />property tax levy lid lift, up from the current rate of $0.98 per $1,000 of assessed value to $1.75 per
<br />$1,000 of Assessed Value (which is still below the statutory maximum of $2.25 per $1,000 Assessed
<br />Value). The levy lid lift requires a public vote. We project that this can bring in an estimated additional
<br />$62 million over 20 years.
<br />The Vehicle Licensing Fee, combined with a County Road property levy lid lift, can generate $94 million
<br />in additional revenue, sufficient to cover the deficit of $91 million while allowing the County to build a
<br />slight surplus for unknown and/or emergency events.
<br />Alternatively, the County can pursue a TBD Sales and Use Tax, in combination with a higher County Road
<br />property tax levy lid lift. The County could also choose to pursue debt financing, though there are
<br />additional costs associated with taking on debt. The recommended revenue options are summarized in
<br />Exhibit 3 below, and the benefits and challenges associated with each option are outlined further in this
<br />report.
<br />Exhibit 3. Operating and Capital Funding Gap and Potential Additional Revenue (2018$)
<br />Sources: Kittitas County Public Works 2018; Kittitas County Assessor's Office 2018; Washington Department of Licensing
<br />2018; Washington Department of Revenue 2018; BERK Consulting 2018.
<br />Note: These figures are rounded to the nearest 10,000.
<br />Exhibit 4 shows 20 -year projected revenues when the County implements a phased Vehicle Licensing Fee
<br />and a County Road property tax levy lid lift to $1.75 per $1000 Assessed Value (AV), along with
<br />projected operating and capital expenditures and the application of the operating surplus with the two
<br />recommended revenue tools. The exhibit shows a one-time levy lid lift to $1.75 per $1000 AV; strategies
<br />on how the County might reach this $1.75 per $1,000 AV levy limit could vary.
<br />May 22, 2018 Kittitas County Public Works 120 -Year TIP Fiscal Sustainability Strategy: Final Reporf 4
<br />2018-2023
<br />2024-2027 _10 -Year Total,
<br />2018 - 2027
<br />2028 - 2037 '� 20 -Year Total,
<br />7018 - 2037
<br />(Years 1- 6)
<br />(Years 7 - 10) : (Years 1-10)
<br />(Years 11- 20) :
<br />(Years 1- 20)
<br />Operating Surplus or Deficit
<br />$ (11,206,000)
<br />$ (8,077,800) $ (19,283,800)
<br />$ (21,368,600) $
<br />(40,652,400)
<br />Capital Expenditures Surplus or Deficit
<br />$
<br />(50,459,600)
<br />Total Operating and Capital Expenditures Surplus or Deficit
<br />$
<br />(91,112,000)
<br />Estimated Potential Additional Revenue
<br />Transportation Benefit District -
<br />Vehicle Licensing Fee
<br />$ 6,540,000
<br />$ 6,510,000 $ 13,050,000
<br />$ 18,570,000. $
<br />31,610,000
<br />Property Tax Levy Lid Lift -
<br />County Road Fund ($1.75 per
<br />$1000 AV)
<br />$ 22,170,000
<br />$ 13,150,000 $ 35,320,000
<br />$ 26,990,000 $
<br />62,320,000
<br />Total Estimated Additional
<br />Revenue
<br />$ 28,710,000
<br />$ 19,660,000 $ 48,370,000
<br />$ 45,560,000"$
<br />93,930,000
<br />Sources: Kittitas County Public Works 2018; Kittitas County Assessor's Office 2018; Washington Department of Licensing
<br />2018; Washington Department of Revenue 2018; BERK Consulting 2018.
<br />Note: These figures are rounded to the nearest 10,000.
<br />Exhibit 4 shows 20 -year projected revenues when the County implements a phased Vehicle Licensing Fee
<br />and a County Road property tax levy lid lift to $1.75 per $1000 Assessed Value (AV), along with
<br />projected operating and capital expenditures and the application of the operating surplus with the two
<br />recommended revenue tools. The exhibit shows a one-time levy lid lift to $1.75 per $1000 AV; strategies
<br />on how the County might reach this $1.75 per $1,000 AV levy limit could vary.
<br />May 22, 2018 Kittitas County Public Works 120 -Year TIP Fiscal Sustainability Strategy: Final Reporf 4
<br />
|