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Home My WebLink About_03-28-25_Council Retreat_Packet SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the ADA coordinator at (360) 403-3441 or 711 (TDD only) prior to the meeting date if special accommodation is required. Friday, March 28, 2025 at 8:30 a.m. City Council Chambers – 110 E 3rd Street 8:30 Coffee 9:00 Welcome, Ground Rules 9:15 Strategic Priorities 10:00 Ten-Year Financial Plan 12:00 Lunch 12:30 Utility Projects 1:15 Community Development Projects 1:30 Island Crossing Plan Update 1:45 Airport Projects Update HR Update Emergency Management IT Update 2:30 Misc. Discussion 3:00 Adjournment Spring Retreat 2025 MARCH 28, 2025 1 Strategic Priorities 2 Public Safety • • • • Implement Transportation Capital • • • Strategic Priorities 3 Fiscal Sustainability Action Items Financial Parks Facility Maintenance & Improvements Community & Economic Development Strategic Priorities 4 Strategic Priorities 5 Economic Development Action Items Airport Transportation Improvements 6 General Fund Overview 7 General Fund Revenue 2025 8 76% of general fund revenue comes from taxes •45% of tax revenue comes from sales tax •29% comes from property tax •16% comes from utility taxes 9 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Sales Tax Revenue Average growth of about 8% during this period of time. 2021 saw 32% growth and 2022 saw 18% growth with the Amazon project. After the project concluded, 2023 declined 17% and 2024 declined by 14%. 10 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Sales Tax Revenue W/Out Amazon Project Average annual growth during this period was about $368,000 or 7% 11 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2018 2019 2020 2021 2022 2023 2024 Retail Industry - Sales Tax Average annual growth during this period was $130,000 or 5% 12 - 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 2024 2025 YTD 2024 Compared to 2025 2% increase General Fund Expenses 2025 13 Legislative 1%Administration 8% Finance Dept 7% Legal Services 1% Personnel 1% Operating Transfers 12% Information Technology 4% Police 46% Misc/Non-Expenses 4% Comm & Econ Develop. 11% Debt 14 10-Year Financial Plan 15 10-Year Financial Plan – 2021 Sales Tax Growth – 6% per year 16 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 GENERAL FUND ENDING FUND BALANCE 10 YEAR OUTLOOK 10-Year Financial Plan – 2023 Banked Capacity and Sales Tax Growth – 6% per year 17 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Projected Fund Balance vs Two Month Reserve Ending Fund Bal.Two Month Reserve 10-Year Financial Plan – 2024 Sales Tax Growth – 6% per year 18 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Projected Fund Balance vs Two Month Reserve Ending Fund Balance Two Month Reserve 10-Year Financial Plan – 2025 Sales Tax Growth – 6% per year 19 No staffing changes from original 2025/2026 budget or other cost reductions 10-Year Financial Plan – 2025 Sales Tax Growth – 3% per year 20 No staffing changes from original 2025/2026 budget or other cost reductions 10-Year Financial Plan – 2025 Sales Tax Growth – 3% per year 21 Leaving vacant 2 finance positions, police does not fill admin assistant position or 2026 officer and 2026 M&O position is not filled 22 Revenue Discussion 23 B&O Tax 24 Source: MRSC Revenue Guide for Washington Cities and Towns. November 2024 •B&O taxes generally imposed by the legislative body •Implementing for first time should use referendum procedure •Consideration of staff time and expertise to administer the tax •Imposed on businesses, cost may be passed along to consumers •Taxes help fund general government services that benefit local businesses Per AWC’s Utility Tax and User Fee Survey, cities with similar populations to Arlington that currently levy this tax; Public Safety Sales Tax •Different than the Criminal Justice Sales Tax (non-voted .1% sales tax and only imposed by the County) •City may impose .1% public safety sales tax •May impose only if County maximum of .3% has not been reached •Voter approval required •Ballot measure may only be submitted at a primary or general election •Ballot measure must state the purposes for which the tax is to be used •Must be approved by a simple majority of the voters •Revenues must be shared with the City and County •City receives 85% and the County receives 15% •At least one-third of revenue must be used solely for criminal justice purposes •Remaining two-thirds are unrestricted but must be spent in accordance with ballot measure 25 Source: MRSC Revenue Guide for Washington Cities and Towns. November 2024 Levy Lid Lift •Levy lid lift raises the total levy amount collected by more than 1% •City’s maximum it can levy is up to $1.60 •Voter approval required •All lid lifts require a simple majority vote (50% plus one) •Single year lid lift •Multi year lid lift •Temporary and permanent •Varying ballot measure requirements •Can be on a general, special or primary election 26 Other Resources 27 Opioid Settlement Funds 28 Annual Expected Distribution Rec'd to Date 391,121.00 2025 63,244.52 2026 63,399.14 2027 58,414.10 2028 72,276.54 2029 72,513.89 2030 67,176.85 2031 61,226.96 2032 61,226.96 2033 48,694.27 2034 48,694.27 2035 48,694.27 2036 41,581.28 2037 41,581.28 2038 31,318.89 780,043.22 Unknown distribution amounts from Walmart, J&J, Janssen and McKinsey APPROVED STRATEGIES •Treatment of opioid use disorder •Support people in treatment or recovery •Connections to care •Address needs of criminal justice involved persons •First responders •Leadership, planning and coordination •Expanding syringe service programs •Prevention programs, training and research REET Funds REET 1 Estimated Available Funding = $1.6 million •Streets, roads, highways, sidewalks •Domestic water systems, storm and sanitary sewer systems •Parks, recreational facilities and trails •Public safety and administrative facilities REET 2 Estimated Available Funding = $2.6 million •Streets, roads, highways, sidewalks and parks •Domestic water systems, storm and sanitary sewer systems •Facilities for homelessness and affordable housing projects 29 30 Utility Projects 31 640 Zone Reservoir 32 Haller North Wellfield 33 Water Treatment Plant Expansion 34 Revenue Bonds Possible funding source for water treatment plant expansion; •Issue revenue bonds •$10 million amortized over 20 years •Approximate annual debt service $750,000 •Rate study •Evaluate utility rates and utility taxes 35 Utility Rate Comparison 36 Utility Tax Comparison 37 Source: MRSC Revenue Guide for Washington Cities and Towns. November 2024 Arlington 5.0%5.0%5.0% Source: AWC Utility Tax and User Fee Survey 38 Economic Development 39 Island Crossing – Subarea Plan Intent of the Plan- Identify existing conditions, evaluate traffic operations, evaluate flood impacts/compensatory storage, evaluate commercial potential, identify long-term vision and design for the subarea. What the plan provides – Emphasis on gateway concept, designated land uses, design standards, conceptual multi-modal transportation design, leveraging adjacent agricultural land for agritourism and recreational uses, strategies for economic development. 40 Island Crossing – Planned Action Ordinance/Environmental Impact Statement Purpose and Benefit - Provides predictability by addressing potential environmental impacts upfront, thus streamlining permitting process Timing – Code changes require the subarea plan to be adopted in conjunction with a PAO/EIS (Planned Action Ordinance/Environmental Impact Statement) Impact – Having to create the PAO/EIS will necessitate extending the Island Crossing moratorium again 41 Upcoming Projects •Allen Townhomes •Amber Grove •Arlington Garden Apartments •Ashford Place •Brown Bear Carwash •Haller Tri-Plex •Harmony at Arlington •Jaspen’s Inc. •Jensen Townhomes •Lindsay Subarea •Lot 1 at The District 42 •Northsound Logistics •Rivertown Homes •Smartcap Arlington Air North Building 3 •Smokey Point Industrial •Smokey Point Ridge •Snohomish County Operations Center •Snohomish County PUD BESS •Snohomish County PUD Transmission Line •Stillaguamish Townhomes •Verdant Commons 43 44 Human Resources 45 •AFSCME negotiation starting July •Citizen Salary Commission starting April •Employee Handbook Update •Accident Prevention Plan (APP) Safety Manual •Emergency Management - working with Snohomish County Dept. of Emergency Management Comprehensive Emergency Management Plan (CEMP) Continuity of Operation Plan/Continuity of Governance (COOP/COG) Partnering with Communications – Emergency Preparedness Information Campaign 46 Information Technology 47 Fiber Update •Connection to Public Works is complete •Conduit / fiber installed on west side to Fire Station 48 •Conduit / fiber installed to many 59th S Gate, Beacon and 51st Gate Information Technology 48 Information Technology 49 Information Technology 50 IT Cyber Security Tabletop Exercise •3-hour exercise •Middle management/directors were invited. •IT explained recovery efforts during a major cyber event. •Staff were engaged and provided valuable input. •Lots of lessons learned and plan to follow up in the fall. •Paid for by Cyber Security Grant through DHS. 51 52 Airport Master Plan •Planning Advisory Committee •Data collection Alpha Mill and Overlay •Breaking ground in April Fiber Project •Phase III starting in Spring Preventative Maintenance •City hangars •Airport owned buildings