Form revised: December 14, 2010

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Legislative	Mike Fong/5-1675	Stephen Barham/3-9084

Legislation Title: AN ORDINANCE relating to the Seattle Transportation Benefit District; authorizing execution of an Interlocal Agreement between the City of Seattle and the Seattle Transportation Benefit District regarding mutual roles and responsibilities related to the collection and expenditure of revenues for transportation purposes.

Summary of the Legislation:

This legislation authorizes the execution of an interlocal agreement between the City of Seattle and the Seattle Transportation Benefit District (STBD) to delineate the responsibilities of each governmental entity for the purposes of carrying out the stated and adopted transportation objectives of the STBD.  The agreement provides the framework for how the City will implement the transportation projects funded and identified through the STBD budget and approved by the STBD Governing Board.  Execution of the agreement would allow for clarity around roles and responsibilities prior to revenue collection on behalf of the STBD by the Washington State Department of Licensing (DOL) in May of 2011 of a $20 Vehicle License Fee (VLF) approved by the STBD in November of 2010.

Background:

The City Council and Mayor created the STBD via Ordinance 123397 in September of 2010.  Shortly after, the STBD Governing Board (members of the City Council acting in an ex-officio capacity) approved an action that imposed a $20 VLF on registered vehicles in the City of Seattle.  State DOL will begin collecting revenues for the STBD from the $20 VLF beginning in May of 2011.  It is estimated that $4.4 million in revenue will be collected in 2011 and $6.8 million in 2012.  The STBD and City of Seattle agree that an interlocal agreement that outlines the roles and responsibilities of each governmental jurisdiction is necessary to implement the transportation projects to be supported by the VLF and potential future revenues generated from the STBD. 

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.)

Note: Approval of the interlocal agreement in and of itself does not appropriate any funding for transportation purposes.  Appropriations authority for 2011 of anticipated revenues collected on behalf of the STBD by the Treasurer (City Finance Director) and spent by the Seattle Department of Transportation have been approved in the 2011-2012 Biennium Budget.  The interlocal agreement is the mechanism outlining the parameters for which those expenditures may be made and formalizes the relationship between the STBD and the City of Seattle.   

What is the financial cost of not implementing the legislation?

Without this legislation and an interlocal agreement in place, it is unclear how the City and the STBD would implement the transportation projects to be supported by STBD revenues.  It would effectively put at risk or delay the expenditure of $4.4 million in funding for transportation in 2011 and $6.8 million in 2012.

Does this legislation affect any departments besides the originating department?

SDOT, City Budget Office, City Attorney’s Office, Finance and Administrative Services and Legislative Department.

What are the possible alternatives to the legislation that could achieve the same or similar objectives?  None.

Is the legislation subject to public hearing requirements? No

Other Issues: None