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KITTITAS COUNTY <br /> DEPARTMENT OF PUBLIC WORKS <br /> PUBLIC WORKS—BOARD OF COUNTY COMMISSIONERS <br /> 2024 STUDY SESSION STAFF REPORT <br /> STUDY SESSION DATE: April 8,2024 <br /> TOPIC: Road Fund Levy Update <br /> ACTION REQUESTED: None <br /> LEAD STAFF: <br /> Mark R. Cook <br /> RECOMMENDATION: <br /> Continue supporting CONSOR's outreach effort. <br /> BRIEFING SUMMARY: <br /> • Levy rate impacts from three years of inflation are currently being evaluated. <br /> • A strategy for managing inflation and historic road fund diversion impacts is <br /> being formulated. <br /> BACKGROUND: <br /> For the past several months, Public Works' (PW) outreach consultant CONSOR has been <br /> implementing their 2024 contract outreach plan. Initial outreach efforts are complete <br /> (results are attached as EXHIBIT 1). Efforts now shift to two (2) in-person focus group <br /> meetings(one in upper county and one in lower county) scheduled for April 13t', 2024. <br /> DISCUSSION: <br /> Inflationary impacts resulting from 2021 —2023 total 16.8 percent(Western States CPI). <br /> The Ten-Year Transportation Plan(TAMP)utilizes an annual inflation rate of two (2) <br /> percent. Using 2024 assessed values and the certified Road Levy, capturing the <br /> inflationary impact results in an estimated 2025 levy rate of$1.82 per$1,000 of assessed <br /> value. This represents an increase of($1.82---$0.77 = $1.05)beyond 2024 levels. It <br /> seems unlikely that county rate payers will approve this increase. This rate scenario will <br /> be vetted at focus group meetings scheduled for later this month. The net result on a <br /> $400,000 home in 2025 is $420 more (2025) in road tax than 2024. <br /> An alternative approach is to try and capture one-half(1/2) of what is needed now and <br /> reassess the Road Fund in five years. The impact to the levy rate in 2025 is estimated at <br /> being $1.29 per$1,000 of assessed value. This represents an increase of$0.52 per <br /> $1,000 of assessed value beyond 2024 levels. This rate scenario will also be tested at <br /> focus group meetings later this month. A financial forecast is attached as EXHIBIT 2. <br /> The net result on a$400,000 home is $208 more (2025) in road tax than 2024. <br /> Page 1 of 4 <br /> Public Works"Work Session Staff Report",2023 <br />