Form revised September 19, 2008
FISCAL NOTE FOR CAPITAL PROJECTS ONLY
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Department: |
Contact Person/Phone: |
DOF Analyst/Phone: |
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Parks and Recreation |
Terry Dunning/684-4860 |
Jennifer Devore/615-1328 |
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AN ORDINANCE authorizing the purchase, for park, open space and recreation purposes, of real property commonly known as Webster Park, a portion of the former Webster Elementary School, located at 3017 NW 67th Street, from Seattle School District No. 1, and authorizing acceptance of the deed, making appropriations, amending the 2008-2013 Capital Improvement Program, and authorizing the loan of funds from the City’s Consolidated (Residual) Cash Pool, or its participating funds, to the Cumulative Reserve Subfund-Unrestricted Subaccount, all by a three-fourths vote of the City Council. |
Summary and background of the Legislation: The Seattle Department of Parks and Recreation (DPR) and the Ballard community developed Webster Park on land leased to the City from the Seattle School District in 1995 and it was opened to the public in 1997. The park is adjacent to the Nordic Heritage Museum, which occupies the balance of the former Webster Elementary School site and is an important community activity area with high use through much of the day.
In September 2007, the Seattle School District declared the former Webster Elementary School site “Non-essential (Surplus)” and advised DPR that the existing lease for Webster Park would be cancelled upon sale of the property. The School Board took action by adopting an amendment to its Facilities Master Plan that encourages district staff to attempt to sell Non-essential (Surplus) property for park and open space purposes.
The School District appraised the Webster Park parcel using the services of an independent fee appraiser and that appraisal has been provided to the City for its review. The City’s review appraisers have accepted the value, $1,600,000, as the fair market value of the property. This value has been used as the agreed, and recommended, price by staff of both agencies.
The City performed environmental due diligence during and as a part of the development and build out of Webster Park. DPR has determined that no further environmental analysis is necessary for this acquisition.
This proposed legislation includes “ratify and confirm” language due to the Seattle School District’s requirement that the City pay simple interest at 4% per annum on the purchase price of $1,600,000 in the event the acquisition does not close by January 15, 2009.
Project Name: |
Project I.D. |
Project Location: |
Start Date: |
End Date |
|
Webster Park Acquisition |
K732373 |
3017 NW 67th Street |
2nd Qtr 2008 |
2nd Qtr 2010 |
· Please check any of the following that apply:
_X___ This legislation creates, funds, or anticipates a new CIP Project. (The current CIP is being amended through this ordinance.)
____ 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:
|
Fund Name and Number |
Department |
Budget Control Level* |
Existing 2008 Appropriation |
New 2008 Appropriation (if any) |
2009 Anticipated Appropriation |
|
General Subfund (00100) |
Finance General |
Community Development (2QF00) |
$800,000 |
$0
|
$0 |
|
Cumulative Reserve Subfund-Unrestricted Subaccount (00164) |
Parks and Recreation |
Parks Infrastructure (K72441) |
$0 |
$800,000 |
$0 |
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TOTAL |
|
|
$800,000 |
$800,000 |
$0 |
Notes: The budget for the acquisition of the Webster property is $1,640,000. This legislation adds $800,000 in appropriation from the Cumulative Reserve Subfund-Unrestricted Subaccount, which is expected to be reimbursed by an $800,000 CFT grant for which DPR will apply in 2009. An additional amount will be appropriated in the General Subfund in 2010 to cover the cost of interest associated with borrowing $800,000 from the City’s Consolidated (Residual) Cash Pool until the Department receives the revenue from the CFT Grant.
The General Subfund will contribute $800,000 to the acquisition of this property. This Seattle School District property has an allocation of $1,000,000 from the General Subfund. Because the Webster School project, which is budgeted at $1.6 million in total, is expected to receive $800,000 in CFT funding, $200,000 of the Webster School project General Subfund budget is being used for the acquisition of a separate Seattle School District property, the Crown Hill project under separate legislation. Funds from the General Subfund for the Crown Hill and Webster School projects were appropriated in the 2008 Adopted Budget in Finance General.
The General Subfund will contribute $40,000 for interest on the loan.
Spending Plan and Future Appropriations for Capital Projects: (in $000’s)
|
Spending Plan and Budget |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
Total |
|
Spending Plan |
$1,600 |
$0 |
$40 |
$0 |
$0 |
$0 |
$1,640 |
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Current Year Appropriation |
$1,600 |
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|
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$1,600 |
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Future Appropriations |
|
$0 |
$40 |
$0 |
$0 |
$0 |
$40 |
Notes: The Webster Acquisition is expected to be completed in December 2008. Repayment of the loan from the City’s Consolidated (Residual) Cash Pool (see notes to Funding Source Table below) is expected to occur in 2010.
Funding source: (in $000s)
Funding Source (Fund Name and Number, if applicable) |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
Total |
General Subfund (00100) |
$800 |
$0 |
$40 |
$0 |
$0 |
$0 |
$840 |
Cumulative Reserve Subfund-Unrestricted Subaccount (00164)- Loan from Cash Pool |
$800 |
$0 |
($800) |
$0 |
$0 |
$0 |
$0 |
Cumulative Reserve Subfund-Unrestricted Subaccount (00164) - CFT Grant |
$0 |
$0 |
$800 |
$0 |
$0 |
$0 |
$800 |
TOTAL |
$1,600 |
$0 |
$40 |
$0 |
$0 |
$0 |
$1,640 |
Notes: The funding of $1,640,000 in acquisition costs comes from the following sources: the General Subfund and a loan from the City’s Consolidated (Residual) Cash Pool, which is expected to be reimbursed from a King County Conservation Futures Tax fund (CFT) grant.
In 2008, DPR will borrow approximately $800,000 in funds from the City’s Consolidated (Residual) Cash Pool. This loan, and an estimated $40,000 in interest at the rate of return of the City’s Consolidated (Residual) Cash Pool, is expected to be repaid in the first quarter of 2010. The loan principal will be repaid with revenue from a CFT grant for which DPR will apply in 2009; interest on the loan will be repaid with the General Subfund.
Bond Financing Required: N/A
Type |
Amount |
Assumed Interest Rate |
Term |
Timing |
Expected Annual Debt Service/Payment |
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TOTAL |
N/A |
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Uses and Sources for Operation and Maintenance (O&M) Costs for the Project:
O&M |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
Total |
Uses |
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Start Up |
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|
|
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|
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On-going |
$5,245 |
$5,350 |
$5,457 |
$5,566 |
$5,676 |
$5,790 |
$33,084 |
Sources (itemize) |
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|
|
|
|
|
|
Park & Recreation Fund (10200) |
$5,245 |
$5,350 |
$5,457 |
$5,566 |
$5,676 |
$5,790 |
$33,084 |
Notes:
O&M estimates are for additional tax costs related to the acquisition, calculated at 2% inflation rate for each year. This park has been maintained by DPR since 1997, and current O&M costs are part of the current budget. If there is need for further development in the future, Parks would need to calculate additional O&M costs at that time.
Periodic Major Maintenance costs for the project: N/A
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Major Maintenance Item |
Frequency |
Cost |
Likely Funding Source |
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TOTAL |
N/A |
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Funding sources for replacement of project: As real property, this acquisition will not be subject to replacement.
Total Regular Positions Created, Modified, Or Abrogated Through This Legislation, Including FTE Impact: N/A
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Position Title and Department* |
Position # for Existing Positions |
Fund Name & # |
PT/FT |
2008 Positions |
2008 FTE |
2009 Positions** |
2009 FTE |
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TOTAL |
N/A |
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· Do positions sunset in the future? Not applicable.
· What is the financial cost of not implementing the legislation: If the City does not purchase this property, the Seattle School District intends to sell it to a private party who is likely to eliminate the existing park and replace it with housing. By purchasing a property with an existing public park (already developed with public monies and community donations), the City will avoid the cost of purchasing and developing a replacement facility.
· What are the possible alternatives to the legislation that could achieve the same or similar objectives: DPR could try to find another park acquisition opportunity like this in the same area, but this would require spending additional resources and would cost the community the use of a valuable park resource until a replacement was acquired and improved.
· Is the legislation subject to public hearing requirements: No
· Other Issues: Time is of the essence, as the Seattle School District requires the City to pay simple interest at 4% per annum on the purchase price of the property if the acquisition is not closed by January 15, 2009.
Please list attachments to the fiscal note below:
Attachment 1: Webster Park Acquisition (map)
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