Pausing for CM questions on the overall budget process and the implementation of an equity lens. Staff say the equity lens in this cycle is meant to provide a baseline that will be refined and tested against in future cycles.
Conversation
CM Barksdale: suggests not just looking at data, but also directly syncing with groups from underserved populations. Wants to make sure that equity is explicitly mentioned in the budget principles.
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Noting the stated principle that Bellevue would rather cut services rather than provide more low-quality ones, asks what those services would be. Staff can only think of one time where that's happened - during the Great Recession, BPD bike patrol was cut, but later brought back.
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CM Barksdale wants to make sure that city doesn't cut human services programs.
CM Lee: appreciates the data-oriented approach. Asks if equity approaches used in Tacoma and Port of Seattle (programs city is using for inspiration) were best practices, or why they were chosen.
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Call notes that Tacoma & Port did a good job of mapping data rather than limiting themselves to policy language. Port of Seattle specifically also developed a good baseline for how they were doing in equity, which was helpful for Bellevue.
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CM Stokes: hopes that equity will be looked at not just in the individual pieces, but also how those pieces fit together as a whole.
DM Nieuwenhuis: wants the outreach process to use the MyBellevue app. Wants to know what measures of success will be used for equity lens.
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Staff note that it's still general, but that success will be: "Did we use the data to help make informed decisions? Was it a part of our toolbox?" Tracking the community's engagement with the content will also be helpful.
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CM Zahn, who works at the Port, mentions that the approach is about mapping the data to establish a baseline, then using it to craft goals. "At the end of the day, it's about equity & action." Mentions that the equity lens itself is just one piece of a wider paradigm on equity.
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CM Robertson: supports investing more money in neighborhoods that might need more support. Also notes that if HB 1769 gets signed by Inslee, city will have more money & staff available from no longer having the community councils.
Definitely agree with her on these comments.
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Would appreciate having a list of priorities combined with what the budget is able to fund - having "a black line" with projects above getting funded and projects below missing out would show the Council & community the tradeoffs.
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Inflation in the Seattle metro area, as of July 2021 was 6.3%. Staff are estimating new stats anywhere between 4-7%, but believe 5% is "today's most likely number", but note that it can still change.
1% increase in inflation = $1.2 million more in personnel costs.
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DSA Eastside meetings are the first Monday every month, so until that changes I'll always have to take a little break at around 7. But now I'm back, and continuing with budget talks.
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Staff note it's not just property tax limitations driving an expenditure/revenues imbalance - it's also costs of the increasingly urbanized services the city provides as it grows.
Sales and B&O taxes (most economically sensitive taxes) are 46% of revenue.
They were 40% in 2018.
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A lot of sales tax - about 30% - is from the new construction that's coming in Downtown & BelRed. However, this is just one-time sales tax money. Retail sales tax, which is has grown 4% year-over-year, has been limited by inflation.
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Call: "We've got all the right tools in our toolbox. In our current environment, we're really struggling at having them perform at the level where we're seeing our expenditures growth at."
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A summary of the actions Council took during the last budget cycle to respond to COVID-19 shortfalls.
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The widening gap between revenues & expenditures I showed before has been like this for a while, but 2023 is the first year that the city is starting from a place of expenditures being greater than revenue. Currently a $3M gap, which'll increase to $8M if city wants 4% more FTEs.
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Another break for CM comments.
CM Barksdale: wants to know how nightlife & getting back out after COVID will affect these projections, or if there are other cities that Bellevue can compare itself to. Staff will have to get back on that.
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CM Lee: This is the time for innovation, wants to look at tools are other cities using. Says Amazon and other companies are benefiting from the City's growth, so they need to be a part of the solution, wants to get revenue "more creatively".
... Conrad Lee says tax Amazon? /s
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CM Stokes: says keeping up with development is a challenge. "We're not really set up to be a successful government with how taxes are structured." Is against cutting back on high quality services. "We have a great opportunity & a great future. How are we going to pay for it?"
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DM Nieuwenhuis: asks if there are actions the city's taken in the past to combat high inflation, and if the projections are not aggressive enough. Cites rapid growth in places like South Lake Union and how that type of rapid growth fueled rapid revenue increases in Seattle.
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Staff note that high inflation in the past was accompanied either by low inflation the next year (in the case of the Great Recession) or also high interest rates (in the 80s). Note the city's in uncharted territory in that regard. Feel assumptions for sales & b&o are good.
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CM Zahn: wants to know what can be done with grants & low cost loans. Wants opportunities where the city's impact could be amplified by money from additional partners. With the equity lens, wants to make sure city's mindful of where extra revenues will be coming from.
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CM Robertson: seconds desire for Seattle benchmark info that might inform new forecasts. Doesn't want one-time funds to be used for FTEs, but to spur things that will create ongoing economic activity for the city, such as the new Bellevue aquatic center.
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Wants to leverage "new growth to fund services rather than just going to new revenue," which on its face sounds good, curious what that looks like in practice.
She'll want a lot more specific forecasting before more detailed discussions.
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Mayor Robinson supports bonding city's HB 1590 money to pay for city's emerging needs as they come along. Appreciates previous actions that haven't touched city's reserve funds and would support not touching them.
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Now digging into CIP process. Again this is on a 7-year timeline, as opposed to the GF, which is for 2 years. Current 2021-2027 CIP adds up to over $660 million dollars in expenditures across the seven years.
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Staff uses 3 step process to see funds available for new CIP items. After debt's been service, maintenance has been funded, and existing projects are extended, that currently leaves $45M for new projects in 2028 & 2029. This doesn't include new funding that could come from grants
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Staff has used these principles to prioritize CIP funding in the past, the check-in with Council tonight is to see if there are changes needed to this framework, whether additions or deletions.
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Another time for CM questions.
CM Robertson: asking for regular updates as staff work out the projections, since some funds can only be used for specific things. Would want to make sure REET funds are used for quality of life services.
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CM Zahn: says bipartisan infrastructure law will present opportunities to leverage federal grant funding. Wants to make sure that sustainability & equity are also brought into the framework of prioritizing CIP projects. Wants to find ways to accelerate Vision Zero improvements.
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DM Nieuwenhuis: no additional comments, supports the framework.
CM Stokes: wants to keep project effectiveness in mind, including how projects will add to quality of life and add to economic development.
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CM Lee: supports partnerships, wants to leverage technology, seems to want to make sure that leveraging collaborations is added into the timing aspect.
CM Barksdale: asks if there's a way staff could score the priorities to aid Council discussion.
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Staff: it's hard to score individual priorities b/c there are some restrictions around "the color of money" and what particular funds can be used for. Barksdale clarifies that he wants a scoring used as an additional criteria. Mayor notes that retreat feedback will also help.
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Final budget aspect of the evening is the Parks Funding Strategy, which was advanced as a Council priority for 2021-23. This syncs with work that's been done recently around the update to Bellevue's Parks and Open Spaces plan.
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Since Bellevue's incorporation, over 10 levies or bond votes have passed to support Bellevue's parks. The most recent one, passed in 2008, will expire in a few years. Its funding has helped projects like completing the circle of the Downtown Park & creating Surrey Downs Park.
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Public feedback seemed pretty split, both wanting the city to acquire land for new parks and maintain the parks the city already has. People also had particular ideas for important goals for the city's park system, listed below.
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Staff note (as always) the needs outstrip the available funds, but list potential projects like acquisition of land around Coal Creek (something the Urbanist covered a bit ago), trail connections, and more neighborhood parks.
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Current projected funds from REET and other sources leave a nearly $600 million gap between foreseen needs and revenue. Staff list new potential funding sources, but Parks Director Shiosaki advises against a voter-approved ballot measure b/c it would slow down land acquisition.
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Mayor Robinson wants to make sure that capital projects for new sports fields are available for use by all groups, even kids that aren't a part of leagues w/ high fees. Remaining park levy funds are being used for Airfield Park and acquisition of land on Lake Sammamish.
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