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rural sales tax revenue encompasses Upper County — one million is likely the available <br />result. The tax is part of the initial election formalizing the district. <br />The recently imposed REET 2 tax generates an estimated $1,000,000 annually. REET 2 <br />is currently being dedicated to the Road fund offsetting inflationary costs ahead of an <br />anticipated levy election in 2024. Long term REET 2 money is anticipated to be directed <br />towards implementing the county's Capital Facility Plan. <br />Currently, the county's lodging tax is generating an estimated $1.5 million in revenue <br />annually. The fund is utilized by the BoCC in a grant program supporting recreation and <br />tourism. Providing the BoCC is willing to obligate a portion of its annual lodging tax <br />towards UKCRC O&M costs, the discussion moves to how the BoCC prefers investing <br />its lodging tax in support of the UKCRC. <br />The BoCC could obligate a portion of lodging tax to an operator (potential public <br />development agency) or the BoCC could elect to form a recreation department serving <br />the BoCC. As PW moves closer to answering questions raised by the BoCC on Public <br />Facility District viability, work should now shift to defining the revenue model <br />supporting long term O&M cost retirement associated with the UKCRC. Additional <br />work is required should the BoCC elect to evaluate a recreation department. In any <br />event, it now appears that lodging tax is a more viable O&M funding component than <br />sales and use tax allocation. Preliminary discussion with City of Cle Elum leadership <br />have identified a desire for city dedicated funding towards the recreation center. <br />Presuming a lodging tax allocation, the revenue could be dedicated to revenue bonds <br />offsetting the initial general bond sale. <br />It seems appropriate to have the project sponsor provide a detailed funding plan offsetting <br />operational costs (sale tax presumed at $1 million, entry fees, parking fees and the like). <br />Staff will return to the BoCC once the operational funding plan is provided for BoCC <br />consideration. <br />FISCAL IMPACTS: <br />Long term operations and maintenance funding is still evolving. <br />ATTACHMENTS: <br />EXHIBIT 1: DEPARTMENT OF COMMERCE SALES AND USE TAX DATA <br />Page 2 of 3 <br />Public Works "Work Session Staff Report", 2023 <br />