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KITTITAS COUNTY <br />DEPARTMENT OF PUBLIC WORKS <br />PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS <br />2023 STUDY SESSION STAFF REPORT <br />STUDY SESSION DATE: June 26, 2023 <br />TOPIC: Public Facility District Update <br />ACTION REQUESTED: Direct Staff <br />LEAD STAFF: <br />Mark R. Cook <br />RECOMMENDATION: <br />Continue working with the Upper Kittitas County Recreation Center Alliance <br />(UKCRCA) identifying revenue streams meeting projected maintenance and operations <br />funding requirements. <br />BRIEFING SUMMARY: <br />• Public Works (PW) has evaluated two possible revenue streams addressing <br />anticipated operations and maintenance (O&M) needs for the Upper Kittitas <br />County Recreation Center. <br />• Imposing a 2/10ths of one percent sales and use tax does appear to generate <br />significant revenue addressing O&M needs. <br />• Utilizing existing county lodging tax appears to easily offset anticipated O&M <br />costs. <br />• Additional work is required with UKCRCA vetting additional revenue sources <br />allowed by the public facility statue at RCW 36.100. <br />BACKGROUND: <br />For the past several months, PW has been conducting an initial feasibility study for the <br />Board of County Commissioners (BoCC) seeking to vet the viability of creating a Public <br />Facility District in the county. Staff has confirmed sufficient general obligation bonding <br />authority exists in an area encompassing the Cle Elum, Roslyn, and Easton School <br />District boundaries — for the initial bond funding of the UKCRC. <br />DISCUSSION: <br />Efforts now shift to verifying sufficient revenue streams offsetting anticipated ongoing <br />recreation center O&M costs (estimated a $1 million per year). Department of <br />Commerce sales tax data confirms approximately $10 million in annual rural county <br />revenue. Using one percent (conservative) as the County's allocated sales tax revenue <br />from the state, the resulting gross amount of 2022 sales tax revenue is estimated at <br />$1,000,000,000. The 2/10ths would come directly to the county resulting in <br />approximately $2,000,000 in additional sales tax revenue. Presuming one half of the <br />Page 1 of 3 <br />Public Works "Work Session Staff Report", 2023 <br />