Form revised February 6, 2008

 

FISCAL NOTE FOR NON-CAPITAL PROJECTS

 

Department:

Contact Person/Phone:

DOF Analyst/Phone:

Legislative

Sara Belz, 4-5382

Traci Ratzliff, 4-8153

NA

 

Legislation Title:

AN ORDINANCE abolishing the Office of Economic Development; transferring some functions of the Office of Economic Development to the Office of Housing, the Office of Arts and Cultural Affairs, the Human Services Department, and the Department of Neighborhoods; renaming the Office of Housing as the Office of Housing and Economic Development; making provisions relating to appropriations previously made to the Office of Economic Development; amending sections 3.14.700, 3.14.710, 3.14.720, 3.14.730, 3.14.740, 3.14.750, 3.14.800, 3.116.030, 5.09.020, 6.295.190, and 15.35.010 of the Seattle Municipal Code; and repealing sections 3.14.600, 3.14.610, and 3.14.620 of the Seattle Municipal Code.

 

·        Summary of the Legislation:

 

This legislation abolishes the City’s Office of Economic Development (OED) and transfers its functions to the Office of Housing, the Office of Arts and Cultural Affairs, the Human Services Department, and the Department of Neighborhoods.  The legislation also renames the Office of Housing as the Office of Housing and Economic Development.  Financial and personnel details are not included in the legislation.  Rather, they are described in Green Sheet 59-1-A-1, which was developed as part of the 2009-2010 budget process.

 

·        Background:  (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

 

The City Council’s proposed changes to the 2009-2010 budget include the elimination of OED.  This legislation is a companion ordinance to Green Sheet 59-1-A-1, which describes how OED would be dissolved.  In addition to eliminating OED, Green Sheet 59-1-A-1 would abrogate 12 staff positions (11.1 FTE) and transfer 14 staff positions (13.5 FTE) to other departments.  These personnel changes would become effective on April 1, 2009.  Green Sheet 59-1-A-1 transfers appropriation authority for existing OED contracts to other departments on January 1, 2009.

 


·        Please check one of the following:

 

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

 

Note:  Budgetary changes associated with this legislation are detailed in Green Sheet 18-1-A-1, which was developed as part of the 2009-2010 budget process.    

 

_    _    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 had, or will have, appropriations in other legislation, please provide details in the Notes section below.

 

Fund Name and Number

Department

Budget Control Level*

2009 Anticipated Appropriation

2010 Anticipated Appropriation

NA

 

 

 

 

TOTAL

 

 

 

 

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

 

Notes:  Green Sheet 59-1-A-1, as noted above, details the budgetary changes and transactions that would accompany a reorganization of OED that complies with the content of this ordinance.  The following table summarizes how OED’s appropriation authority would be reassigned to other departments in 2009 and 2010.  Because position transfers and abrogations would not take effect until April 1, 2009, OED retains appropriation authority for staff salaries and benefits, and some overhead, through March 31, 2009.  Appropriation authority for OED’s existing contracts would be transferred to other departments on January 1, 2009.

 

 

2009

2010

OED (January 1 – March 31, 2009 expenses)

 

 

Salaries and Benefits

634,957

0

Contracts

0

0

Overhead

149,355

0

TOTAL

784,312

0

 

 

 

Office of Housing

 

 

Salaries and Benefits

784,879

1,084,180

Contracts

866,458

871,906

Overhead

165,950

226,546

TOTAL

1,817,287

2,182,632

 

 


 

Office of Arts and Cultural Affairs

 

 

Salaries and Benefits

159,455

220,260

Contracts

0

0

Overhead

41,487

56,637

TOTAL

200,942

276,897

 

 

 

Human Services Department

 

 

Salaries and Benefits

79,106

109,272

Contracts

2,444,054

2,529,382

Overhead

16,595

22,655

TOTAL

2,539,755

2,661,309

 

 

 

Department of Neighborhoods

 

 

Salaries and Benefits

0

0

Contracts

255,793

264,102

Overhead

0

0

TOTAL

255,793

264,102

 

 

 

TOTAL COSTS

$5,598,090

$5,384,940

 

 

 

2009-2010 Proposed Budget for OED

$6,703,554

$6,908,329

 

 

 

TOTAL SAVINGS

$1,105,464

$1,523,389

 

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

2008

Revenue

2009

Revenue

NA

 

 

 

 

TOTAL

 

 

 

 

 

Notes:  Not applicable.

 

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

 


Abrogated Positions (effective April 1, 2009)

Position Title and Department

Position # for Existing Positions

Fund Name & #

PT/FT

2008

Positions

2008

FTE

2009 Positions*

2009 FTE*

Executive 3, OED

00024285

General Subfund (00100)

FT

1

1.0

0

0.0

Manager 2, Human Services, OED

00024576

General Subfund (00100)

FT

1

1.0

0

0.0

Strategic Advisor 3, Exempt, OED

00026822

 

General Subfund (00100)

FT

1

1.0

0

0.0

Strategic Advisor 2, Exempt, OED

00025830

General Subfund (00100)

FT

1

1.0

0

0.0

Strategic Advisor 2, General Government, OED

00024289

10002037

General Subfund (00100)

FT

2

2.0

0

0.0

Community Development Specialist, Sr, OED

10003228

General Subfund (00100)

PT

1

0.6

0

0.0

Planning and Development Specialist II, OED

00024523

General Subfund (00100)

FT

1

1.0

0

0.0

Accounting Technician II, OED

00024524

General Subfund (00100)

FT

1

1.0

0

0.0

Administrative Staff Assistant, OED

00024286

General Subfund (00100)

FT

1

1.0

0

0.0

Personnel Specialist, OED

10002038

General Subfund (00100)

PT

1

0.5

0

0.0

Administrative Specialist 1, OED

10003535

General Subfund (00100)

FT

1

1.0

0

0.0

TOTAL

 

 

 

12

11.1

0

0.0

 

Positions Transferred to the Office of Housing (effective April 1, 2009)

Position Title and Department

Position # for Existing Positions

Fund Name & #

PT/FT

2008

Positions

2008

FTE

2009 Positions*

2009 FTE*

Executive 2, OED

00024525

General Subfund (00100)

FT

1

1

1

1

Manager 3, General Government, OED

00026009

General Subfund (00100)

FT

1

1

1

1

Strategic Advisor 2, Human Services, OED

00025818

General Subfund (00100)

FT

1

1

1

1

Strategic Advisor 1, General Government, OED

10003536

General Subfund (00100)

FT

1

1

1

1

Community Development Specialist, Sr, OED

00024288

00025014

00025825

10002373

General Subfund (00100)

FT

4

4

4

4

Accountant, Sr, OED

00025815

General Subfund (00100)

FT

1

1

1

1

Administrative Specialist II, OED

00025562

General Subfund (00100)

FT

1

1

1

1

TOTAL

 

 

 

10

10

10

10

 

Positions Transferred to the Office of Arts and Cultural Affairs (effective April 1, 2009)

Position Title and Department

Position # for Existing Positions

Fund Name & #

PT/FT

2008

Positions

2008

FTE

2009 Positions*

2009 FTE*

Strategic Advisor 3, Exempt, OED

00025066

General Subfund (00100)

FT

1

1.0

1

1.0

Administrative Specialist II, OED

10004092

General Subfund (00100)

FT

1

1.0

1

1.0

Administrative Specialist II, OED

00026008

General Subfund (00100)

PT

1

0.5

1

0.5

TOTAL

 

 

 

3

2.5

3

2.5

 

Positions Transferred to the Human Services Department (effective April 1, 2009)

Position Title and Department

Position # for Existing Positions

Fund Name & #

PT/FT

2008

Positions

2008

FTE

2009 Positions*

2009 FTE*

Strategic Advisor 1, General Government, OED

00025817

General Subfund (00100)

FT

1

1.0

1

1.0

TOTAL

 

 

 

1

1.0

1

1.0

 

* 2009 positions and FTE are total 2009 position changes resulting from this legislation, not incremental changes.  Therefore, under 2009, please be sure to include any continuing positions from 2008.

 


Notes:  The personnel changes listed above are described in Green Sheet 59-1-A-1 and would become effective on April 1, 2009.  The legislation does not include details about specific positions that would be abrogated or transferred to other departments following the elimination of OED.     

 

·        Do positions sunset in the future(If yes, identify sunset date):  No.

 

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 & #

Department

Budget Control Level*

2008

Expenditures

2009 Anticipated Expenditures

NA

 

 

 

 

TOTAL

 

 

 

 

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

 

Notes:  None.

 

·        What is the financial cost of not implementing the legislation?  (Estimate the costs to the City of not implementing the legislation, including estimated costs to maintain or expand an existing facility or the cost avoidance due to replacement of an existing facility, potential conflicts with regulatory requirements, or other potential costs if the legislation is not implemented.)

 

The cost of not implementing this legislation is estimated at $1.1 million in 2009 and $1.5 million in 2010.  After 2010, the cost of not implementing this legislation is expected to grow annually, depending on the amount of General Subfund support that is allocated to OED as part of the annual budget process in future years. 

 

·        What are the possible alternatives to the legislation that could achieve the same or similar objectives?  (Include any potential alternatives to the proposed legislation, such as reducing fee-supported activities, identifying outside funding sources for fee-supported activities, etc.)

 

There are no alternatives to this legislation that could achieve similar objectives.  If this legislation is not adopted, OED will not be eliminated and its functions will not be reassigned to other City departments.

 

·        Is the legislation subject to public hearing requirements(If yes, what public hearings have been held to date, and/or what plans are in place to hold a public hearing(s) in the future.)

 

No.

 

·        Other Issues (including long-term implications of the legislation):

 

Eliminating OED will provide the City with significant savings over the long term.  This is due to the abrogation of existing staff positions and the reassignment of OED’s functions to other City departments.

 

Please list attachments to the fiscal note belowNone.