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$,.r$.' 1:'4{^r": i;il#!3r9i8tif':'^fite.?.,i}g#'i},is..:r' ;:i Summary of Assessment Based upon Johnson Consulting's independent review of the financial feasibility of the formation of the proposed PFD, it is our impartial opinion that revenue from a 0.2 percent sales tax, if approved, would be sufficient to cover estimated operating costs for the PFD, with surplus to cover higher operating costs as well as operating shortfalls at the proposed projects following pFD formation. At the time of this study, based on information provided by Kittitas County, the proposed pFD has been identified as a potential financing partner to support operations of the identified large recreation projects - 1). Upper Kittitas County Community Recreation Center; 2). Ellensburg Community Fieldhouse; and 3). Kittitas Valley Aquatic Center - amounting to $3.1M annually. Even under a scenario where the entirety of this funding support is required in 2028, reflecting preliminary project schedules, and assuming that the pFD is formed and funded in Q1 -2027, the debt service schedule indicates that accrued pFD revenues will be sufficient to cover this level of operating support, while also maintaining its own oPerations. Estimated taxable retail sales throughout Kittitas County grew at a compounded annual rate of 7.46 percent between 2O1g and 2024, demonstrating long-term robustness' Under a Conservative scenario, it is estimated that PFD revenues would amount to an average of $4.1M annually (between ZO27 and 2043) and under a Moderate scenario, it is estimated that pFD revenues would amount to an average of $5.36M annually (between 2027 and 2043), exceeding the estimated pFD operating costs and proposed funding support to the identified projects ($3.17M) Formation of the PFD with sufficient time to accrue revenues, and/ or staggered project timing, will be critical to minimizing the likelihood and magnitude of any funding gaps in early years. l-onger-term projections indicate sufficient capacity to support administrative costs and project-related funding needs as cumulative revenue surpluses are achieved. lf the proposed pFD is formed, the PFD board of directors will need to refine estimates of revenue available from a potential sales tax and develop a budget for PFD administration, any annual operating shortfalls and reserves. This will inform how much revenue is projected to be available to support operating shortfalls for the proposed projects and any debt service on bonds. Continued refinement of these assumptions will further support implementation and long-term success. ' ".r liiliil:i1lil : : : .,rr .r.r i. 27