Form revised February 22, 2006

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Executive Administration	Teri Allen/4-5226	Carolyn Iblings/4-5211

Legislation Title:

AN ORDINANCE relating to the University District Parking and Business Improvement Area; increasing the assessment rates; and amending Ordinance 118412, as previously amended by Ordinance 120304, in accordance therewith.

· Summary of the Legislation:

The proposed legislation increases by approximately 10% the current assessment rates and the minimum and maximum assessments for the University District Parking and Business Improvement Area. 

· Background:

The University District Parking and Business Improvement Area (“PBIA”) was created in 1996 through Ordinance 118412.  The ordinance provided for special assessments on various types of businesses within the PBIA, for the purpose of enhancing conditions for the operation of those businesses.  Rates were assessed either by square foot of the commercial business or property, or per other relevant units.  Ordinance 118412 also provided for a minimum assessment of $100 and a maximum assessment of $10,000 per business or property.  Ordinance 118412 provided for increases in the assessment rates to prevent reduction in services due to inflation in the costs of providing PBIA services, consistent with changes in the Consumer Price Index (CPI) and with the provisions of RCW 35.87A.140.

In 2001, through Ordinance 120304, the City Council approved a rate increase of approximately 4% in each assessment category.  Ordinance 120304 did not revise the minimum and maximum assessments.  Through this proposed legislation, the University District Ratepayers Advisory Group recommends this second increase of approximately 10% in each assessment category, as well as 10% increases in the minimum and maximum assessments.  The proposed rate increases are well within the inflationary adjustment, measured as 27% between 1996 and 2006 by the CPI for the Seattle-Tacoma-Bremerton metropolitan area.

RCW 35.87A.140 requires that assessment rate increases for parking and business improvement areas must be adopted by ordinance.  The RCW also requires a resolution of intention to increase rates and set the required public hearing; this resolution of intention has been submitted separately to the City Council.

· Please check one of the following:

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

__X_ This legislation has financial implications. (Please complete all relevant sections that follow.)

Appropriations:  This table should reflect appropriations that are a direct result of this legislation.  In the event that the project/ programs associated with this ordinance have appropriations that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below.

Fund Name and Number	Department	Budget Control Level*	2006 Appropriation	2007 Anticipated Appropriation
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes:  There are no additional appropriations associated with this legislation.

Anticipated Revenue/Reimbursement: Resulting From This Legislation: This table should reflect revenues/reimbursements that are a direct result of this legislation.  In the event that the issues/projects associated with this ordinance/resolution have revenues or reimbursements that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below the table.

Fund Name and Number	Department	Revenue Source	2006 Revenue	2007 Revenue
19890 University District BIA Subfund	Executive Administration	Ratepayer Assessments	$0	$12,000
TOTAL			$0	$12,000

Notes:  Anticipated revenue increases in 2007 based upon projected 2006 total revenues of $121,000, and upon a rate increase effective date of January 1, 2007.  Total projected 2007 revenue with the proposed rate increase will be approximately $132,900.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:  This table should only reflect the actual number of positions created by this legislation  In the event that positions have been, or will be, created as a result of previous or future legislation or budget actions, please provide details in the Notes section below the table.

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2006 Positions	2006 FTE	2007 Positions**	2007 FTE**
	TOTAL

*   List each position separately

** 2007 positions and FTE are total 2007 position changes resulting from this legislation, not incremental changes.  Therefore, under 2007, please be sure to include any continuing positions from 2006

Notes:  There are no position changes associated with this ordinance. 

· Do positions sunset in the future?  (If yes, identify sunset date):  Not applicable.

Spending/Cash Flow: This table should be completed only in those cases where part or all of the funds authorized by this legislation will be spent in a different year than when they were appropriated (e.g., as in the case of certain grants and capital projects).  Details surrounding spending that will occur in future years should be provided in the Notes section below the table.

Fund Name and Number	Department	Budget Control Level*	2006 Expenditures	2007 Anticipated Expenditures
TOTAL

* See budget book to obtain the appropriate Budget Control Level for your department.

Notes:  There are no appropriations associated with this ordinance.

What is the financial cost of not implementing the legislation?

None to the City.  The City would continue to administer the University District PBIA, which would operate at current rate levels.

What are the possible alternatives to the legislation that could achieve the same or similar objectives?   None.  RCW 35.87A.140 requires the City to adopt an ordinance to change assessment rates for a parking and business improvement area.  Improvement area services are in addition to, and not a replacement of, basic City services, and are funded by assessments on the properties that benefit from the services.  If the legislation is not passed, University District PBIA services will be provided at a level feasible with revenues from current rates.  Over time, inflation will erode the level of service the University District PBIA is able to provide to ratepayers. 

· Is the legislation subject to public hearing requirements:  Yes.  A resolution of intention, establishing a hearing date, is before the City Council.

· Other Issues:  None.

Please list attachments to the fiscal note below:  None.