Transcript Budget Workshop - Councilman Jon Snyder

City of Spokane
Revenue Hearing
2015 Proposed Budget
0
Revenue Hearing
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Hearings and other key dates
Revenue overview
Property Tax
Sales Tax
Utility Tax
REET
1
2015 Proposed Budget – Key Dates
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Budget Hearings
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Oct 20th – Revenue Hearing
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Must be closed prior to taking action on Property Tax Levy)
Oct 27th – Budget Hearing - Utilities
Nov 3rd – Budget Hearing – BDS/Streets
Nov 10th – Final Budget Hearing – Police & Fire
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Hearings on the budget may be continued up until the 25th day prior to
the beginning of next fiscal year.
Other Key Dates
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November 3rd – Property Tax Ordinance
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Council Briefing – October 27th
Finance Committee – October 28th
2
General Fund
Major Sources of Revenue
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Property, Sales, & Utility Taxes > 81% of GF revenue
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Property tax
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1%
New Construction
Levy Lid Lift - Library
Sales tax – 8.7%
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Majority goes to the State
General Fund ~ 1%
Private Utility tax rates capped at 6%; voter approval
required to exceed 6%
Utility Tax on City Utilities – rates set by City Council
3
General Fund
Major Sources of Revenue
2014 Budget
General Fund Revenue
Property
Tax
24.3%
Other
19.8%
Tax on
Municipal
Utilities
19.8%
2015 Proposed Budget
General Fund Revenue
Private
Utility Tax
15.8%
Sales &
Use Tax
20.3%
Property
Tax
24.2%
Other
18.9%
Tax on
Municipal
Utilities
19.5%
Sales &
Use Tax
21.6%
Private
Utility Tax
15.8%
4
2015 Proposed Budget
Revenue Projections
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Property Tax revenue
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1% increase dedicated to public safety capital
New construction revenue equivalent to > 1% increase
Library Levy Lid Lift (02/12/13 special election) $0.07 / $1,000 AV
Sales Tax – 3.0% increase
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2014 ~ 6% higher than budgeted
2015 estimate based on 2014 actual revenue
Private Utility tax revenue ~ 3% increase
City Utility tax revenue ~ 2.9% increase
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Utility rate increases based on long term CPI
5
Property Taxes
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Where do my property taxes go?
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Total levy
City levy breakdown
Mill rate annual comparison
Levy % change – Regular Levy
Levy amounts – Regular Levy
New Construction Impacts
6
Where Do My Property Taxes Go?
Spokane County
9.5%
City of Spokane
31.3%
State of
Washington
16.7%
Spokane Public
Schools
42.5%
For every $1,000 paid in property taxes, the City gets ~ $313
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$1,000 in Property Taxes
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Spokane Public Schools
State of WA
Spokane County
$ 425
$ 167
$ 95
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City of Spokane
$ 313
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8
Where Does the $313 Go?
2014 Property Tax Distribution
City Portion Only
Voter Approved
Bonds
20.5%
Voter Approved
EMS Levy
11.3%
General Fund /
Tax Increment
Financing
61.4%
Fire Pension
Fund
6.8%
For every $1,000 paid, ~ $192 goes to the City’s General Fund for
things like Public Safety, Libraries, Parks and Streets.
Nearly 32% is voter approved for specific purposes
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$313 City portion of each $1,000
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Fire Pension
EMS (Voter approved)
Bond Levy (Voter Approved)
$
$
$
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General Fund
$ 192
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22
35
64
10
City of Spokane Levy Rate ’07-’15
City of Spokane Levy Rate Comparison
6.00
Rate per $1,000 AV
5.00
4.00
3.00
2.00
1.00
0.00
2007
2008
Total City Levy
2009
2010
Regular Levy
2011
2012
2013
Voted GO Bond
2014
2015 est.
Voted EMS
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City of Spokane
Levy Mill Rate Comparison
2011
2012 2013 2014
2015
Est.
Regular Levy
2.72
2.85
2.92
3.03
3.00
EMS Levy
0.50
0.50
0.50
0.50
0.50
Voted Debt
0.83
0.89
0.92
0.91
0.75
Total City rate
4.05
4.24
4.34
4.44
4.25
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2015 based upon AV estimates from County
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Property Tax Revenue % Change
City of Spokane
Regular Property Tax Levy
20.00%
Voter Approved
Levy Lid Lift
1%, Banked
Capacity,
Voter Approved
Library Funding
15.00%
10.00%
West Plains
Annexation
5.00%
0.00%
2006
2007
2008
2009
2010
2011
2012
2013
2014
-5.00%
-10.00%
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2014 and 2015 are estimated amounts
13
2015
Regular Property Tax Levy
City of Spokane Regular Property Tax Levy
50,000,000
Voter Approved Levy
Lid Lift
(Public Safety &
Library)
45,000,000
West Plains
Annexation
1%, Banked
Capacity, Voter
Approved
Library Lid Lift
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
2006
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2007
2008
2009
2010
2011
2012
2013
2014
2014 and 2015 are estimated amounts
14
2015
New Construction Impact
Regular Levy Revenue from New Construction
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
15
Sales Tax
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Sales Tax Components
Sales tax collection – Local Option 1%
4-year month over month comparison
Annual percent change
Actual sales tax growth v. “baseline”
growth
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Sales Tax Components
Sales Tax Components
State of Washington
6.50%
City of Spokane **
1.00%
Spokane Transit Authority (STA)
0.60%
Public Facilities District
0.10%
Criminal Justice
0.10%
Juvenile Detention
0.10%
Public Safety & Health
0.10%
Mental Health
0.10%
Emergency Communications
0.10%
Total
8.70%
Spokane County gets 15% of City’s tax
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$100 Taxable Sale
Sales Tax Distribution
The City Local Sales Tax Generates $0.84 From a $100 Taxable Sale
Public Facilities
District, $0.10
Spokane County,
$0.15
Mental Health
Treatment, $0.10
Spokane Transit,
$0.59
Detention and Jails,
$0.10
Emergency Comms.,
$0.10
Public Safety,
$0.10
Criminal Justice ,
$0.10
State Admin Fees,
$0.02
City of Spokane,
$0.84
WA State, $6.50
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Sales Tax Revenue
Monthly Sales Tax
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
2010
2011
2012
2013
2014 Est.
Local Option Sales Tax
Sep
Oct
Nov
19
Dec
Sales Tax Revenue
Cumulative Sales Tax
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
Jan
Feb
Mar
Apr
2010
May
2011
Local Option Sales Tax
Jun
2012
Jul
2013
Aug
Sep
Oct
Nov
2014 Est.
20
Dec
Sales Tax Annual % Change
City of Spokane
Local Option Sales Tax
Year over Year % Change
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-2.00%
-4.00%
-6.00%
-8.00%
2014 and 2015 are estimates
21
Actual increases v. 2.0% “baseline”
City of Spokane
Local Option Sales Tax
42.00
40.00
38.00
36.00
34.00
32.00
30.00
28.00
26.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
est prelim
Actual Change
2014 and 2015 are estimates
2.0% growth
22
Actual increases v. 2.5% “baseline”
City of Spokane
Local Option Sales Tax
42.00
40.00
38.00
36.00
34.00
32.00
30.00
28.00
26.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
est prelim
Actual Change
2014 and 2015 are estimates
2.5% growth
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Actual increases v. 2.85% “baseline”
City of Spokane
Local Option Sales Tax
Year over Year % Change
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
1991
1993
1995
1997
1999
2001
Actual Change
2014 and 2015 are estimates
2003
2005
2007
2009
2011
2.85% growth
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2013
2015
prelim
Utility Taxes
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Utility Taxes – Private Utilities
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Electric
Natural Gas
Telephone
Cable
Utility Taxes – City Utilities
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•
•
Water
Sewer/Stormwater
Solid Waste
25
Private Utility Tax Revenue
Private Utility Tax
30.00
26.80
25.00
24.22
27.50
25.37
26.59
25.61
25.08
2012
2013
24.59
26.07
26.86
Millions of $
20.00
15.00
10.00
5.00
0.00
2006
2007
2008
2009
2010
2011
2014 & 2015 are estimated amounts
2014
26
2015
Private Utility Tax Revenue
Utility Tax Revenue - Private Utilities Year over Year % Change
20.0%
15.0%
10.0%
5.0%
0.0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
-5.0%
-10.0%
-15.0%
2014 & 2015 are estimated amounts
27
2015
Utility Tax Revenue – City Utilities
Utility Tax Revenue
City Utilities
35.00
2008 ------>>>
Total Gross Receipts
30.00
2011:
Sewer rates
incr. 15%
2012:
Sewer rates
incr. 13.5%
In Millions of $
25.00
20.00
15.00
10.00
5.00
0.00
2006
2007
2008
2009
2010
2014 & 2015 are estimated amounts
2011
2012
2013
2014
28
2015
Utility Tax Revenue – City Utilities
30.0%
Tax rate
increased
from 17%
to 20%
25.0%
Utility Tax Revenue - City Utilities – Year over Year % Change
Began taxing
total gross
revenue
20.0%
15.0%
2011:
Sewer rates
incr. 15%
10.0%
2012:
Sewer rates
incr. 13.5%
5.0%
0.0%
2006
2007
2008
2009
2010
2011
2014 & 2015 are estimated amounts
2012
2013
2014
29
2015
Proposed 2015 GF Revenue
In Millions
2013 Actual
2014 Adopted
2015 Proposed

Taxes
Licenses/Permits
IG Revenue
Charges for Services
Fines/Forfeits
Misc. Revenue
Other Revenues
$ 130.26
6.43
3.27
13.73
2.70
1.81
0.54
$133.46
5.90
5.19
12.85
2.97
3.52
0.20
$139.57
6.10
4.71
12.53
2.87
3.99
0.47
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Total GF Revenue
$158.74
$164.09
$170.24
3.37%
3.75%
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30
2015 General Fund
Major Revenue Sources
$ in Millions
% of ’15 Budget
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Property Tax
Sales and Use Tax
City Utility Assessments
Private Utility Tax
Charges for Services (pimarily Interfund)
Licenses & Permits
Intergovernmental Revenue
Interest
Fines & Forfeits (Traffic/Parking Infr.)
Other
$ 41.21
36.74
33.19
26.86
12.53
6.10
4.71
3.51
2.87
2.52
24.2%
21.6%
19.5%
15.8%
7.4%
3.6%
2.8%
2.1%
1.7%
1.3%
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Total GF Revenue
$170.24
100.0%
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31
Real Estate Excise Tax
City of Spokane Real Estate Excise Tax Revenue
Annual Revenue
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
est
est
32
Real Estate Excise Tax
Annual Percent Changes
50.0%
38.7%
40.0%
26.3%
30.0%
23.3%
22.0%
20.0%
10.0%
8.9% 5.9%
7.8%
0.0%
2003
-10.0%
2004
2005
2006
2007
-2.6%
-6.7%
2008
2009
2010
2011
2012
2013
2014
-9.8%
-20.0%
-18.3%
-30.0%
-27.9% -30.2%
-40.0%
33
2015
Questions?
34
Total General Fund Revenue
GF Revenue - Year over Year % Change
Levy Lid Lift
16.0%
14.0%
12.0%
10.0%
8.0%
WP Annexation
6.0%
4.0%
2.0%
0.0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
-2.0%
-4.0%
2013 & 2014 amounts are estimated
35
2014