Form revised: December 14, 2010
FISCAL NOTE FOR NON-CAPITAL PROJECTS
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Department: |
Contact Person/Phone: |
CBO Analyst/Phone: |
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Department of Neighborhoods |
Donnie Grabowski / 206-233-2603 |
Kristi Beattie / 684-5266 |
Legislation Title:
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AN ORDINANCE relating to regular property taxes; requesting that a special election be held concurrent with the November 8, 2011 general election for submission to the qualified electors of the City of a proposition to lift the limit on regular property taxes under Chapter 84.55 RCW and authorize the City to levy additional taxes for up to seven years for the purpose of providing Seattle School District No. 1 public school students, Seattle children, and their families education-support services designed to improve academic achievement; authorizing creation of a new subfund; creating an oversight committee; and authorizing implementing agreements for this levy lid lift commonly known as the Families and Education Levy.
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Summary of the Legislation:
The proposed ordinance would submit a $231,562,000 seven-year Education-Support Services Levy (“Levy”) package to the voters of Seattle for their approval in the fall of 2011. The proposed Levy would be raised under the provisions of RCW 84.55.050, which allows a city to obtain voter approval to exceed the “lid” on regular property taxes for any purposes. Levy proceeds would be intended for the following programs for the period September 2012-August 2019:
1) School readiness and early learning: $61,050,064
High quality preschool for low-income 4-year-olds, access for low-income families to high quality childcare, professional development for early education providers, school readiness support for children in home day-cares, health screenings, and preschool to kindergarten transition services.
2) Academic achievement in elementary school: $54,007,694
Includes extended learning time, out-of-school time activities, summer learning programs, and school-and community-based family support services.
3) Academic achievement and college/career preparation in middle school: $44,593,762
Program elements include extended learning time, out-of-school time activities, social, emotional, and behavioral supports, guidance and related support for college readiness.
4) Academic achievement and college/career preparation in high school: $20,728,408
Programs include extended learning time, social, emotional, and behavioral supports; summer learning programs; and advising, guidance and related support for college readiness.
5) Student health: $44,365,128
Program elements include school-based student health clinics and physical, mental, and dental support and other health services at clinic sites in middle and high schools; school-based health services at high need elementary schools.
6) Community partnerships: $0*
Major program elements include funding for community and school-based partnerships to achieve Levy goals.
*This item is noted as a placeholder item in the event that programming dollars from other areas are used for these purposes.
7) Research and Evaluation: $1,400,000
Major program elements include evaluation of the individual programs and research in the foregoing components and the overall effects of Education-Support Services funded by Levy proceeds.
The proposed Levy also includes $9,364,377 (or approximately 4% of the total 7-year Levy amount) for administration. The Levy would have a 5% overall administration cap over its 7-year life, though administration percentages may be higher or lower than 5% in any given year.
Background: (Include a brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable.)
The current educational and developmental services Levy, approved by voters in 2004, expires in mid-2012. Despite the success of the 2004 and prior levies, Seattle still has an urgent need to continue the provision of services to address deficiencies in school readiness, academic achievement, drop-out prevention, and college readiness. The proposed Levy recommended by the Levy Planning Committee will enable the City to continue and more effectively address Seattle’s educational needs.
Previously, Seattle voters have approved:
· a $69.5 levy in 1990;
· a $69.5 million levy in 1997; and
Please check one of the following:
____ This legislation does not have any financial implications.
_XX_ This legislation has financial implications. (Please complete all relevant sections that follow.)
This legislation does not directly result in appropriation or position changes. If the proposed Levy is passed by Seattle citizens, the Education-Support Services Levy 2012 budget appropriation as adopted by the City Council will reflect the corresponding appropriation and revenue amounts in 2012 and subsequent years. Passage of the proposed Levy would likely result in staffing changes and additions, and these staffing changes would be included in a future ordinance authorizing the proposed Levy’s implementation plan. The Levy rate and average cost to a homeowner of the proposed Levy are highlighted in Attachment 1 to this fiscal note. Projected Expenditure and Revenues for the 2011 Education-Support Services Levy are included in Attachment 2.
What is the financial cost of not implementing the legislation?
The current 2004 Educational and Developmental Services Levy expires with the collection of 2011 property taxes. The City’s capacity to respond to Seattle children’s educational needs will be significantly reduced starting in mid-2012 if this legislation is not implemented.
Does this legislation affect any departments besides the originating department?
This legislation would impact the Human Services Department, Department of Neighborhoods, and Seattle Department of Parks and Recreation as there are staffing positions in each of these departments that are currently funded by the 2004 Educational and Developmental Services Levy. These positions are proposed to be maintained should the proposed Levy be passed by the voters. Staff members in these departments are aware that the current Levy expires in mid-2012 and that the positions may not be maintained if the proposed Levy is not passed. Staff are aware that the Levy Planning Committee has recommended this legislation to the Executive and City Council.
What are the possible alternatives to the legislation that could achieve the same or similar objectives?
There are no other funding sources available to the City that will accomplish these objectives. Our declining economy has decreased the amount of General Subfunds available for general government activities, making it an unfeasible funding source for supplemental educational levy programs.
Is the legislation subject to public hearing requirements?
The City Council has prepared a Special Committee on Educational Achievement for Seattle Schoolchildren schedule to review the proposed Levy from January-March 2011. A public hearing is tentatively scheduled for Thursday, February 17 from 5:30-7:30 p.m. Public comment will also be available during each meeting.
Other Issues: (Include long-term implications of the legislation.)
List attachments to the fiscal note below:
Attachment 1: Levy Rate and Annual Cost to Homeowner
Attachment 1: Levy Rate and Annual Cost to Homeowner
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Total Levy Amount: |
$231,562,000 |
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Tax Year |
Assessed Value Estimate |
% Growth |
Annual Levy Amount |
Rate per $1,000 of Assessed Value |
Annual Cost to Owner of Average Residential Assessed Value |
Average Residential Assessed Value |
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2011 |
119,466,161,527 |
-2.92% |
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$452,985 |
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2012 |
119,298,908,901 |
-0.14% |
$32,100,950 |
$0.269 |
$124.33 |
$462,045 |
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2013 |
123,199,983,222 |
3.27% |
$32,421,960 |
$0.263 |
$125.85 |
$478,216 |
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2014 |
128,596,142,487 |
4.38% |
$32,746,180 |
$0.255 |
$126.04 |
$494,954 |
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2015 |
134,382,968,899 |
4.50% |
$33,073,641 |
$0.246 |
$126.08 |
$512,277 |
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2016 |
140,430,202,499 |
4.50% |
$33,404,378 |
$0.238 |
$126.12 |
$530,207 |
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2017 |
146,749,561,612 |
4.50% |
$33,738,421 |
$0.230 |
$126.16 |
$548,764 |
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2018 |
153,353,291,884 |
4.50% |
$34,075,806 |
$0.222 |
$126.21 |
$567,971 |
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Attachment 2: Projected Expenditures and Revenues for 2011 Education-Support Services Levy
Attachment 2: Projected Expenditures and Revenues for 2011 Education-Support Services Levy
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2011 LEVY EXPENDITURES: |
CY 2012 |
CY 2013 |
CY 2014 |
CY 2015 |
CY 2016 |
CY 2017 |
CY 2018 |
CY 2019 |
Total |
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Early Learning |
$1,706,007 |
$5,765,435 |
$7,249,028 |
$8,178,208 |
$9,153,954 |
$10,173,376 |
$11,084,099 |
$7,739,956 |
$61,050,064 |
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Elementary |
$1,394,262 |
$4,610,427 |
$5,759,323 |
$6,965,430 |
$8,234,147 |
$9,484,236 |
$10,383,276 |
$7,176,592 |
$54,007,694 |
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Middle Schools |
$1,421,180 |
$4,695,173 |
$5,656,949 |
$6,213,582 |
$6,694,169 |
$7,184,799 |
$7,564,130 |
$5,163,780 |
$44,593,762 |
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High Schools |
$ 831,385 |
$2,546,532 |
$2,605,103 |
$2,719,222 |
$2,946,049 |
$3,182,518 |
$3,425,816 |
$2,471,783 |
$20,728,408 |
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Health |
$1,711,236 |
$5,509,470 |
$6,187,471 |
$6,335,971 |
$6,494,370 |
$6,656,729 |
$6,816,491 |
$4,653,391 |
$44,365,128 |
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Administration |
$ 409,396 |
$1,253,981 |
$1,282,823 |
$1,313,611 |
$1,346,451 |
$1,380,112 |
$1,413,235 |
$964,768 |
$9,364,377 |
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Research and Evaluation |
$66,667 |
$200,000 |
$200,000 |
$200,000 |
$200,000 |
$200,000 |
$200,000 |
$133,333 |
$1,400,000 |
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TOTAL EXPENDITURES: |
$7,540,134 |
$24,581,019 |
$28,940,696 |
$31,926,024 |
$35,069,140 |
$38,261,770 |
$40,887,046 |
$28,303,603 |
$235,509,433 |
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2011 LEVY ESTIMATED/ACTUAL REVENUES: |
CY 2012 |
CY 2013 |
CY 2014 |
CY 2015 |
CY 2016 |
CY 2017 |
CY 2018 |
CY 2019 |
Total |
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Levy Legal Allocation (per Ordinance) |
$32,100,950 |
$32,421,960 |
$32,746,180 |
$33,073,641 |
$33,404,378 |
$33,738,421 |
$34,075,806 |
$0 |
$231,561,336 |
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Estimated property taxes to be collected |
$31,659,216 |
$32,195,453 |
$32,565,347 |
$32,916,694 |
$33,257,454 |
$33,597,548 |
$33,934,150 |
$508,897 |
$230,634,758* |
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Investment Earnings (Est) |
$264,175 |
$573,199 |
$682,361 |
$908,013 |
$894,941 |
$811,131 |
$663,642 |
$77,213 |
$4,874,675** |
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TOTAL REVENUES: |
$31,923,391 |
$32,768,652 |
$33,247,708 |
$33,824,706 |
$34,152,395 |
$34,408,679 |
$34,597,792 |
$586,110 |
$235,509,433 |
*estimate assumes anticipated cash receipts for the period 2012-2024
**Annual investment earning assumption ranges from 1.72% to 2.5%