2021-07-12-minutes-public-works-study-session

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The definition of "capital project" for REET 2 is more restrictive than it is in the REET 1 statute. BEET 2 funds are more specifically directed to infrastructure and parks capital projects. (However, note that park lands "acquisition" is not an allowed use for REET 2.) REET 2 omits public facilities such as law enforcement, administration, and courts that were listed within the REET 1 statute. However REET 1 projects may be funded with REET 2 revenues as described below if certain limitations and additional reporting requirements are met. REET 2 revenues may also be used for limited maintenance expenses as well as affordable housing and homelessness purposes as described below. Note that REET 2 funds may not be used for developing or updating a capital facilities plan (CFP) or capital improvement plan (CIP), but they can be used for design, engineering, surveys, etc. associated with a specific qualifying project listed in a CFP or CiR Use of REET 2 for maintenance and REET 1 projects: Any county may use may use up to $100,000 or 25% of its available REET 2 funds — whichever is greater, but not to exceed $1 million per year — for the following purposes (RCW 82.46.037(1)): The maintenance of REET 2 capital projects, as defined in RCW 82.46.035(5). The statute defines "maintenance" as "the use of funds for labor and materials that will preserve, prevent the decline of, or extend the useful life of a capital project. 'Maintenance' does not include labor or material costs for routine operations of a capital project" [emphasis added]. • Planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, improvement, or maintenance of REET 1 capital projects (see REST f — The "First Quarter Percent's that are not also included within the REET 2 definition of capital projects. To use REET 2 funds for these limited purposes, the county must fulfill additional reporting requirements defined within RCW 82.46.037, including preparing and adopting a written report that includes: Information necessary to demonstrate that the county has, or will have, adequate funding from all sources to pay for all capital projects identified in its capital facilities plan for a two-year period. How revenues collected under REET 2 have been used during the prior two-year period. How revenues collected under REET 2 will be used for the succeeding two-year period. What percentage of funds for capital projects is attributed to REET 2 revenues compared to all other sources of capital project funding. The report must be adopted as part of the county's public budget process. Additionally, the county must declare that it has not enacted any requirement on the listing or sale of real property; or any requirement on landlords, at the time of executing a lease, to perform or provide physical improvements or modifications to real property or fixtures, except if necessary to address an immediate threat to health or safety; unless the requirement is specifically authorized by other state and federal laws. Use of REST 2 for affordable housing and homelessness: New legislation in 2019 expanded the use of revenues for homeless housing to also include affordable housing. Until January 1, 2026 any county may now use up to $100,000 or 25% of its available REET 2 funds — whichever is greater, but not to exceed $1 million — for affordable housing projects and the planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of facilities for those experiencing homelessness, as long as such projects are listed in the capital facilities plan. (These dollar limits do not apply to any county that used REET 2 revenue for homeless housing prior to June 30, 2019.) Revenue Guide for Washington Counties I NOVEMBER 2020 109