Form revised February 12, 2004

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Executive Administration	Teri Allen/4.5226	Tyler Running Deer/4.8075

Legislation Title:

A RESOLUTION to initiate a Downtown Parking and Business Improvement Area.

· Summary of the Legislation:

This resolution is the first of two similar pieces of legislation that must be prepared, per RCW 35.87A, to form a Downtown Parking and Business Improvement Area (DBIA). The current DBIA will expire in August 2004, and the City must pass this resolution to declare its intent to establish a new DBIA. A similar resolution may then follow this one to set a public hearing date and location.

· Background:

The Downtown Parking and Business Improvement Area (DBIA) was established in 1999, by Ordinance 119541 as a private-sector initiative to improve the safety, cleanliness, and vitality of Downtown Seattle, including Pioneer Square. The current DBIA expires in August 2004. Depending upon the outcome of the public hearing, the Executive may submit a bill to re-establish the DBIA for a ten-year duration, which will have the same boundaries as the current improvement area. The DBIA is expected to continue to be funded by a special assessment levied on more than 700 downtown properties, which will have inflationary increases to allow for consistent levels of service. The re-established DBIA will likely continue to be overseen by a 30-member Ratepayer Advisory Board, which would be broadly representative of the ratepayers and neighborhoods that are covered by the improvement district.

· 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.)

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	2004 Revenue	2005 Revenue
19855 Metropolitan Improvement District	Executive Administration	Ratepayer Assessments	$1,919,000	$3,895,570
TOTAL			$1,919,000	$3,895,570

Notes: The fiscal year of the proposed DBIA runs from July 1 to June 30. 2004 revenue is based upon one-half of projected revenue ($3,838,000) for the first fiscal year (2004-2005). The 2005 revenue estimates assume a 3% inflationary adjustment in the second half of the year, as provided under the proposed legislation.

Over the ten-year life of this legislation, the special assessment will provide approximately $38 million in revenue for project, operations and maintenance costs of the DBIA. The Department of Executive Administration (DEA) would collect the assessments from the ratepayers, but the funds would then be kept by DEA only for reimbursement to the Downtown Seattle Association (DSA), which is the agency that would actually administer the staffing, projects and other costs associated with the DBIA.

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

2004 Positions

2004 FTE

2005 Positions**

2005 FTE**

TOTAL

0

0

0

0

* List each position separately

** 2005 positions and FTE are total 2005 position changes resulting from this legislation, not incremental changes. Therefore, under 2005, please be sure to include any continuing positions from 2004

Notes:

· 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*	2004 Expenditures	2005 Anticipated Expenditures
19855 Metropolitan Improvement District	Executive Administration	Not applicable.	$1,919,000	$3,895,570
TOTAL			$1,919,000	$3,895,570

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

Notes: Over the ten-year life of this legislation, the special assessment will provide approximately $38 million in revenue for project, operations and maintenance costs of the DBIA. Again, DEA would collect the assessments from the ratepayers, but the funds would then be kept by DEA only for reimbursement to the DSA, which would actually administer the staffing, projects and other costs associated with the DBIA.

· 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 costs if the legislation is not implemented.)

None. The DBIA is established as a revenue-neutral program.

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.)

None. 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, the services under the improvement area will not be provided.

· 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).)

Yes. The resolution establishes a hearing date of April 21, 2004.

· Other Issues (including long-term implications of the legislation): None.

Please list attachments to the fiscal note below:

Exhibit A: Map of proposed DBIA.