HomeMy WebLinkAbout_04-28-25 Council WorkshopSPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the
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CALL TO ORDER
Mayor Don Vanney
PLEDGE OF ALLEGIANCE
ROLL CALL
Mayor Don Vanney – Wendy
APPROVAL OF THE AGENDA
Mayor Pro Tem Michele Blythe
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS
WORKSHOP ITEMS – NO FINAL ACTION WILL BE TAKEN
1. Interim Ordinance Approving Island Crossing Moratorium Extension ATTACHMENT A
Staff Presentation: Marc Hayes / Amy Rusko
Council Liaison: Mayor Pro Tem Michele Blythe
2. March Financial Report ATTACHMENT B
Staff Presentation: Kristin Garcia
ADMINISTRATOR & STAFF REPORTS
MAYOR’S REPORT
COMMENTS FROM COUNCILMEMBERS/COUNCILMEMBER REPORTS
PUBLIC COMMENT
For members of the public who wish to speak to the Council. Please limit your remarks to three minutes.
REVIEW OF CONSENT AGENDA ITEMS FOR NEXT MEETING
EXECUTIVE SESSION
RECONVENE
ADJOURNMENT
Mayor Pro Tem Michele Blythe / Mayor Don Vanney
Arlington City Council Workshop
Monday, April 28, 2025 at 6:00 pm
City Council Chambers – 110 E 3rd Street
City of Arlington Council Agenda Bill WS #1 Attachment
April 28, 2025 Interim Ordinance Approving Island Crossing Moratorium Extension
Interim Ordinance
Community and Economic Development; Marc Hayes, Director / Amy Rusko, Deputy Director EXPENDITURES REQUESTED: BUDGET CATEGORY: BUDGETED AMOUNT: LEGAL REVIEW: DESCRIPTION: for a Planned Action Ordinance/Environmental Impact Statement to be developed by city staff and their consultants to support the Island Crossing Sub-Area Plan adoption.
Staff and their consultants have completed the Subarea Plan for Island Crossing and are now in the process of developing a Planned Action Ordinance/Environmental Impact Statement to support the Subarea Plan and its adoption. Staff is requesting an extension of the existing moratorium to complete the PAO/EIS and the adoption of the Island Crossing Sub-Area Plan. The existing moratorium is due to expire on May 23, 2025. This extension request would allow for an additional six months to set a new expiration date of November 23, 2025, to complete the above-described work product. ALTERNATIVES: Remand to staff for additional information.
Workshop; discussion only. At the May 5, 2025 Council meeting, after the public hearing, the recommended motion will be, “I move to approve the ordinance extending a moratorium on the issuance of development permits within the Island Crossing subarea and authorize the Mayor to sign it.”
Ordinance No. 2025-xxx 1
ORDINANCE NO. 2025-XXX
AN INTERIM ORDINANCE OF THE CITY OF ARLINGTON, WASHINGTON,
EXTENDING A MORATORIUM ON THE ISSUANCE OF DEVELOPMENT PERMITS
WITHIN THE ISLAND CROSSING SUBAREA
WHEREAS, in conformity with the responsibilities of the City of Arlington to provide for
public health, safety and welfare requirements and zoning and land use regulations pursuant to
state law, and City’s authority to regulate land use activity within its corporate limits, the City
has adopted land use regulations; and
WHEREAS, the City Council has become aware of heightened interest of development
within the Island Crossing subarea; and
WHEREAS, particularly with parcels taking access from Highway 530, public safety issues
are raising additional concerns for future development; and
WHEREAS, the City is concerned about the proliferation of development and its impact
on traffic and safety, potential flooding, and additional issues associated with development in
this area; and
WHEREAS, a moratorium will provide the City with additional time to review and amend
its public health, safety and welfare requirements and zoning and land use regulations in the
Island Crossing subarea to preserve and protect land uses in the City and to assure orderly
development within the area; and
WHEREAS, Washington State law, including Sections 35A.63.220 and 36.70A.390 of the
Revised Code of Washington, (RCW) authorizes Washington cities to adopt moratoria and
provides for a process for a public hearing which must be held within sixty days of the dates of
the adoption of the moratorium; and
WHEREAS, the City previously adopted ordinance 2023-008 on June 12, 2023, which
scheduled a public hearing required by RCW 36.70A.390 on July 3, 2023, after which the public
hearing continued in effect; and
WHEREAS, the City Council finds that the moratorium should be continued until the City
staff and consultants can complete their work; and
WHEREAS, the City wishes to encourage the installation of electric vehicle charging
stations to support electric vehicle infrastructure development, and believes an exception for
the same will not adversely impact the future development in the Island Crossing Subarea; and
WHEREAS, the City Council adopts the foregoing as its findings of fact justifying the
adoption of this ordinance;
Ordinance No. 2025-xxx 2
NOW, THEREFORE, the City Council of the City of Arlington, Washington, do
ordain as follows:
Section 1. Findings. The recitals set forth above are hereby adopted as the Arlington City
Council's findings in support of the moratorium imposed by this ordinance.
Section 2. Moratorium Extended. A moratorium is extended for a period of six (6)
months on the issuance of any development regulations within the Island Crossing subarea, as
more particularly defined in section 4 of Ordinance 2023-008. No new building permits,
occupancy permits, business licenses, development permits or approval or any other city-issued
license or permit shall be issued for any of the properties within the Island Crossing Subarea;
provided, however, that this shall not prohibit the issuance of permits in the event of an
emergency, to enable an existing property owner or business to maintain their buildings and
appurtenances or stay in compliance with business licensing regulations, or to permit the
correction of code violations.
Section 3. Term of Moratorium. The moratorium imposed by this ordinance shall
become effective on the date hereof and shall continue in effect for six months, unless
repealed, extended or modified by the City Council after subsequent public hearing(s) and entry
of appropriate findings of fact, pursuant to RCW 36.70A.390, provided that the moratorium
shall automatically expire upon the effective date of the adoption by the City Council of
additional public health, safety and welfare requirements and zoning and land use regulations
to address regulation of the Island Crossing subarea in the City of Arlington.
Section 4. Severability. If any section, sentence, clause or phrase of this ordinance
should be held to be unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section,
sentence, clause or phrase of this ordinance.
Section 5. Declaration of Emergency. The City Council hereby declares that an
emergency exists necessitating that this ordinance take effect immediately upon passage by a
majority vote plus one of the whole membership of the Council, and that the same is not
subject to a referendum (RCW 35A.12.130). Without an immediate moratorium on the City’s
acceptance of development applications for the Island Crossing Subarea, said subarea could
locate and develop in a manner incompatible with the codes eventually adopted by the City.
Therefore, the moratorium must be imposed as an emergency measure to protect the public
health, safety, and welfare.
Section 6. Publication. This ordinance shall be published by an approved summary
consisting of the title.
Ordinance No. 2025-xxx 3
Section 7. Effective Date. This ordinance shall take effect and be in full force and effect
five days following its publication as provided by law; provided, however, that unless extended
by act of the City Council, this ordinance shall automatically expire six (6) months following its
adoption.
Approved at a regular meeting of the City Council held on May 5, 2025.
CITY OF ARLINGTON
______________________________________
Don E. Vanney, Mayor
ATTEST:
______________________________________
Wendy Van Der Meersche, City Clerk
APPROVED AS TO FORM:
______________________________________
Oskar Rey, City Attorney
EXHIBIT B
Parcels within Island Crossing Subarea (by Snohomish County Tax Parcel Number):
1.31050800200200
2.31050800200600
3.31050800200700
4.31050800200800
5.31050800200900
6.31050800201000
7.31050800201100
8.31050800201200
9.31050800201600
10.31050800300100
11.31050800300200
12.31050800300202
13.31050800300500
14.31050800300600
15.31050800300900
16.31050800301200
17.31050800301300
18.31050800301400
19.31050800301500
20.31050800301600
21.31050800301700
22.31050800301800
23.31050800301900
24.31050800302000
25.31050800302100
26.31050800302200
27.31050800302300
28.31050800302400
29.31050800302600
30.31050800302700
5
City of Arlington Council Agenda Bill WS #2 Attachment
April 28, 2025 March 2025 Financial Report
Narrative General Fund Operating Statement Revenue Charts Other Fund Operating Statements
Finance; Kristin Garcia, Director 360-403-3431 EXPENDITURES REQUESTED: 0 BUDGET CATEGORY: N/A BUDGETED AMOUNT: N/A LEGAL REVIEW: DESCRIPTION:
ALTERNATIVES:
2025 March Financial Report – Kristin Garcia, Finance Director
Overall Revenues and Expenses:
Revenues overall are about $569,000 higher than this time last year. Most of the increase comes
from an increase in utility taxes (primarily garbage and natural gas), a “Paper to Digital” grant from
the Department of Commerce and a small uptick in sales tax.
Expenses overall are about $949,000 higher than this time last year. A bulk of the increase comes
from budgeted increases in police staffing, public defense and technology, the “Paper to Digital”
grant, and an increase to the Streets Fund transfer.
Sales Tax Revenue:
First quarter sales tax is $52,451 or 3% higher than first quarter 2024. A solid start to the year. Retail
is still trending downward but construction, services and wholesale are all up from last year. All other
industry sectors are stable.
YTD 2023 YTD 2024 YTD 2025
Retail 884,665 879,740 851,192
Construction 580,762 241,046 257,737
Services 344,565 350,771 395,940
Wholesale 141,539 143,771 168,890
Information 35,605 41,407 42,897
Manufacturing 41,257 39,208 34,197
Transport/Utilities 28,782 35,215 32,267
Agriculture/Other 25,424 28,957 29,445
2,082,599 1,760,115 1,812,566
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Total Revenue Total Expenses
General Fund 1st Quarter Revenues and Expenses
2024 2025
GENERAL FUND
Total Utility Tax Revenue:
First quarter utility tax revenues are $188,000 higher than first quarter 2024. Natural gas is up $72,000
and garbage is up $57,000. Please note that the March garbage tax payment in 2024 was received in
April so the trend will likely even out as we continue through the year and not be as dramatic an
increase as is currently reflected.
General Fund Ending Fund Balance:
This chart represents the general fund’s ending fund balance at the end of first quarter 2022 -2025.
In 2022, about $4.7 million of construction sales tax was transferred into the capital facility fund, that
is why 2023’s fund balance is so much lower than in 2022. The transfer was made in accordance with
city policy - construction sales tax is considered one time revenue and should be used for capital
projects or other one time investments.
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Total Utility Tax Revenue -1st Quarter
2020 2021 2022 2023 2024 2025
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2022 2023 2024 2025
1st Quarter Ending Fund Balance vs Two Month Reserve
Ending Fund Balance 2 Month Reserve
Streets Fund:
First quarter revenue is down $7,600 or about 10%. End of first quarter fund balance was $61,386. A fund to
keep an eye on, the general fund significantly increased the budgeted transfer in 2025, if more funds are
needed for cash flow, the general fund could be negatively impacted.
Airport Fund:
Revenue is up about $30,290 or 2% from first quarter 2024. Revenue continues to be stable. The
jump between 2022 and 2023 is from new tenants; examples include McIlrath and Smart Cap.
$-
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
2020 2021 2022 2023 2024 2025
Fuel Tax -1st Quarter
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Airport Rental Income -1st Quarter
2020 2021 2022 2023 2024 2025
OTHER FUNDS
Water/Sewer/Storm Funds:
Utility revenues continue to show growth. Water is up 3%, sewer is up 4% and storm is up 2%.
$-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
2020 2021 2022 2023 2024 2025
Water Sales -1st Qtr
$-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
$1,600,000.00
$1,800,000.00
$2,000,000.00
2020 2021 2022 2023 2024 2025
Sewer Sales -1st Qtr
$-
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
2020 2021 2022 2023 2024 2025
Storm Sales -1st Qtr
Cash and Investment Balances:
This chart shows total city cash and investment balances as of first quarter for each respective year.
The drop between March 2024 and March 2025 is a reduction of capital reserve funds which was
planned for and expected. During this period $2.8 million was spent on remaining ARPA funds, about
$2 million on improvements to city hall, police, fiber, M&O facility and station 47, about $3.2 million
in transportation projects and about $2 million in water infrastructure improvements.
The first chart below is a summary of when investments will mature. City policy requires investments
of no more than 5 years. Short term interest rates have been as good or better than longer term
rates, that is why investments haven’t been made at the 5 year mark in order to maximize interest
income. Stagging investment maturities is also important to maintain available cash, it’ll be prudent
to start looking at investments in the 4 – 5 year range.
The second chart shows which investments are callable vs non-callable. Callable investments tend to
offer a bit higher interest rate but can be at risk of getting called before their maturity date (the risk
is the re-investment of those funds could be a lower rate). Non-callable investments typically have a
lower rate but lock in interest rates until maturity, guaranteeing the rate of return throughout the life
of the investment. With the instability of the market and the expectation that interest rates will go
down, the strategy has been to lock in rates.
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
Cash and Investment Balances
1st Quarter Ending
Mar-23 Mar-24 Mar-25
POLICY UPDATES/OTHER INFORMATION
Utility Shut Off’s:
An update regarding the customer outreach that our department started back in November 2024 is
continuing to have positive results. A reminder that the property lien process for storm only accounts
has begun. About 30 accounts have been identified that are subject to the lien process. A final letter
will be mailed to the account holder giving them an opportunity to pay their account . Property liens
will be filed in April for any accounts that do not pay.
Number of Accounts on the Shut Off List:
Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25
62 40 61 50 No shut off 56 24 20
• Interviews to fill the accounts payable vacancy are being conducted April 22 and April 23.
• The State Auditor’s Office will begin the city’s single audit (audit of federal programs) early
May. This timeframe is earlier than usual and will begin before the city submits its final 2024
financial statements.
None
0-1 years 1-2 years 2-3 years 3-4 years 4-5 years
Investment Maturity Periods
-
5
10
15
20
25
Callable Non-Callable Not Specified
Callable Investment
Diversification
EDUCATIONAL
DEPARTMENT UPDATES
The 2026 lodging tax application period will open May 1. The lodging tax advisory committee is
scheduled to meet in June and a funding recommendation is scheduled to come before council in
July.
Council
Approval Date
Item Amount Notes
N/A S-88
Street Sweeper
$500,000 (estimated) Existing street sweeper caught fire. Working
with insurance to replace. Anticipating
insurance will cover full cost of replacement.
7/1/2024 Phase II Smokey Point
Community Park
$2.392 million Council approved Phase II of Smokey Point
Community Park for $2.392 million. Phase I of
the project was already underway in 2024, it
was unknown what portion of Phase II would
take place in 2024 or 2025.
UPCOMING/APPROVED BUDGET AMENDMENTS
UPCOMING COUNCIL AGENDA ITEMS