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07/12/2022 - Regular - Additional Docs-TBDORCHARD Counc Transportation Benefit Distric Sales Tax Discussio 07. 12. 2022 Note: This is intended to illustrate the project estimates and potential funding sou Discussion Overview Bethel Road and Sedgwick Study Brief Review Additional Information can be found on the City Web Site by searching BETHEL ROAD AND SEDGWICK ROAD CORRIDOR PLAN Phase 1: Bethel Road -Salmon berry Rd to Blueberry Rd Additional Information can be found on the City Web Site by searching BETHEL ROAD AND SEDGWICK ROAD CORRIDOR PLAN Proposal for Transportation Benefit District Sales Tax Discussion Projection of Transportation Benefit District Sales Tax Revenue Scenario Analysis Bethel Road and Sedgwick Study: Summary of Council and Community Engagement September 7, 2017 - City Council Work Session The project team shared the project scope, schedule, and outreach approach. Councilmembers were led through a mapping exercise to gather their initial thoughts on existing conditions, community needs, and their ideas related to the two study corridors. October 23, 2017- Community Open House A public open house was held on October 23rd,2017 to introduce community members to the study and give them an opportunity to share their ideas, concerns, and suggestions for both corridors. Notification of the open house was shared on social media, the project webpage, and through a direct mailer to property owners in the study area. Over 50 people attended the event and we received over 60 comments, both in person and via email. The open house consisted of staffed exhibit boards, a constraints and opportunities mapping exercise, and a `build your own street section' station January 16, 2018 - City Council Work Session The project team presented some of the initial operational analysis findings and sought direction on the corridor sections. At this meeting, the Council supported the widening of Sedgwick Road to accommodate two lanes in each direction as it is a critical commute corridor and State Route providing access between SR 16 and the Southworth Ferry Terminal. However, the Council expressed a clear interest in keeping Bethel Road a narrower street with one lane in each direction to calm traffic and make it a safer, more inviting place for pedestrians and bicyclists. February -March 2018 - Community Survey An online community survey was conducted which gathered input to help shape the plan recommendations. The survey link was shared on social media, the project webpage, and e-mailed directly to participants of the public open house. Over 600 residents responded with nearly 500 responses received per corridor. August 14, 2018 - City Council Meeting The project team made a presentation of the alternative evaluation methods and resulting preferred conceptual corridor design. Councilmembers and the Mayor asked questions of the project team but overall, the draft plan was well received. The draft was made available to the public via the project webpage for review and comment until the public hearing scheduled for September 25th, 2018. The project team sent notification of the public review and comment period via email to the project distribution list and posted to the City's Facebook page. September 25, 2018 - City Council Meeting The City Council held a public hearing at their meeting to hear from members of the public regarding the public review draft of the Bethel and Sedgwick Corridor Plan. Two members of the public spoke about the proposed access control and location of roundabouts. The Council and project team responded to the comments and provided clarifications. Additional Information can be found on the City Web Site by searching BETHEL ROAD AND SEDGWICK ROAD CORRIDOR PLAN Phasing Strategy Phase 1: Bethel Road-Salmonberry Rd to Blueberry Rd • Construct two roundabouts on Bethel Road at both Salmonberry Road and Blueberry Road. While right of -way should be acquired to accommodate the full build -out roundabout design for the 2040 horizon year volumes, the design and number of circulating lanes required to support opening day volumes will be determined during the design phase. At Salmonberry Road, our analysis identified a single -lane roundabout as an interim design. However, a two-lane roundabout with two-lane approaches southbound and northbound on Bethel Road is expected to be required to meet LOS standards in 2040. At Blueberry Road, our analysis did not identify an interim design and a single -lane roundabout is expected to meet LOS standards in 2040. • Construct the Bethel Road segment between Salmonberry Road and Blueberry to the Bethel Road - Typical Section A specifications including sidewalk, bioretention swale, curb and gutter, bike lane, one travel lane in each direction, and a raised center median. • In order to adequately accommodate detour traffic during construction, Ramsey Road between Sedgwick Road and Salmonberry Road will need to be improved to meet City standards prior to implementation of Phase 1, including resolving some existing right-of- way issues. A preliminary cost for this improvement has been included in the estimate for Phase 1. Figure 10: Phasing Strategy diagram 4, Transportation Benefit District Proposal Discussion Summary • Approve a Councilmanic TBD 1 /101" sales tax beginning in FY 2023 • Use the funding to complete Design and Et ROW acquisition for Phase1- Bethel Et Salmon Berry • Once Design is complete, explore a public TBD 2/ 10th sales tax beginning in FY 2026 • Utilize the additional tax to issue debt to complete the project and potentially others Transportation Benefit District 1/10th Sales Tax Growth Scenarios 0% growth in taxable sales provides a ranges of $830,000/year 5% growth in taxable sales provides a ranges from $870,000-$1.353 million over the 10 years Transportation Benefit District 1/10th Sales Tax TBD 1/10th Sales Tax Councilmanic Revenue Projection $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 53,000,000 $2,000,000 $1,000,000 .$830,753 $ ■ 2023 2024 2025 $4,984,579 $ 4,153, 816 $3,323,053 J J 2026 2027 2028 ■Per Year ■Cumulative $6,646,106 55,815,343 $8,307,632 $7,476,869 2029 2030 2031 2032 Growth Scenarios • 0% growth in taxable sales provides a ranges of $830,000/year • 0% growth in taxable sales provides a cumulative revenues of $8.307 million over the 10 years Phase 1: Bethel Road -Salmon berry Rd to Blueberry Rd Revenue and Expenses Kin (-rnlnith Fnrim ract-n 10/ ('niinrilmanir rnIac Tav Revenue 2022 2023 2024 2025 TBD .1% Sales Tax $830,763 $830,763 $830,763 TIF Bethel Phase 1 $353,394 $1,186,700 $493,489 Blueberry (TIP 1.8) Fee in Lieu $234,000 REET (TIP 1.8) $116,000 1 $0 $250,000 $2501000 Total Revenue $350,000 $1,184,157 $2,267,4631 $1,574,252 Expenditures 2022 2023 2024 2025 Bethel Phase 1-Design $344,813 $281,405 $225,000 $350,000 Bethel ROW Bethel -Construction $359,090 $1,742,848 $1,742,848 Total Expenditure j $344,8131 $640,495j $1,967,848j $2,092,848 Net $5,187 $543, 662 $299, 616 -$518, 595 Net (with carry forward) $548,849 $848,465 $329,870 ASSUMPTIONS • With the 1 /10th TBD Councilmanic Sales Tax (0% growth) • Transportation Impact Fee Revenue • Developer funding • Real Estate Excise Tax SUMMARY • Able to Fund Design and ROW acquisitions through 2025 Phase 1: Bethel Road -Salmon berry Rd to Blueberry Rd Revenue and Expenses • TBD 1 /10 Sales Tax( No Growth) • Funding Shortfall will occur in 2026 on a cash flow basis • Revenues are short of Expenses by - $3.6 million Revenue 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total Per Revenue Source TBD.1%Sales Tax $830,763 $830,763 $830,763 $830,763 $830,763 $830,763 $830,763 $830,763 $830,763 $830,763 $8,307,632 TIF Bethel Phase 1 $353,394 $1,186,700 $493,489 $2,033,583 Blueberry (TIP 1.8) Fee in Lieu $234,000 $234,000 REET(TIP 1.8) 1 $116,0001 $0 $250,0001 $250,000 $0 $0 $0 $0 $0 $0 $0 $616,000 Total Revenue r $350,000r $1,184,157r $2,267,463r $1,574,252r $830,763r $830,763r $830,763r $830,763r $830,763r $830,763r $830,7631 $11,191,215 Expenditures 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Bethel Phase 1-Design $344,813 $281,405 $225,000 $350,000 $1,201,218 Bethel ROW $359,090 $1,742,848 $1,742,848 $3,844,785 Bethel -Construction $2,972,810 $6,804,891 $9,777,701 Total Expenditure $344,813 $640,495 $1,967,848 $2,092,848 $2,972,810 $6,804,891 $0 $0 $0 $0 $0 $14,823,704 Net $5,187 $543,662 $299,616 Net (with carry forward) $548,849 $848,465 $518,595-$2,142,047-$5,974,128 $329,870-$1,812,177-$7,786,305 $830,763 $830,763 $830,763 $830,763 $830,763 -$6,955,542-$6,124,778-$5,294,015-$4,463,252-$3,632,489 1 $3.6 Million Short Phase 1: Bethel Road -Salmon berry Rd to Blueberry Rd Revenue and Expenses • Voter Approved TBD 2/10th sales tax beginning in FY 2026 • City will have the ability to issue debt repaid by the tax • Tax will remain in place until the debt service is retired, extending the tax beyond 10 years • There will be cashflow considerations, however, overall revenue will exceed expenses Revenue 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total Per Revenue Source TBD .1%Sales Tax $830,763 $830,763 $83 763 $2,492,290 TBD .2%Sales Tax (Voter Approved) $1,661,526 $1,661,526 $1,661,526 $1,661,526 $1,661,526 $1,661,526 $1,661,526 $11,630,685 TIF Bethel Phase 1 $353,394 $1,186,700 $493,489 $2,033,583 Blueberry (TIP 1.8) Fee in Lieu $234,000 $234,000 REET(TIP 1.8) 1 $116,0001 1 $250,000 $250,000 $616,000 Total Revenue r $350,000r $1,184.157r $2,267.463r $1,574.252r $1,661,526r $1,661,526r $1,661,526r $1,661,526r $1.661,526r $1.661,526r $1.661,5261 $17,006.558 Expenditures 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Bethel Phase 1-Design $344,813 $281,405 $225,000 $350,000 $1,201,218 Bethel ROW Bethel -Construction $359,090 $1,742,848 $1,742,848 $3,844,785 $2,972,810 $6,804,891 $9,777,701 Total Expenditure $344,813 $640,495 $1,967,848 $2,092,848 $2,972,810 $6,804,891 $0 $0 $0 $0 $0 $14,823,704 Net $5,187 $543,662 $299,616-$518,595-$1,311,284-$5,143,365 $1,661,526 $1,661,526 $1,661,526 $1,661,526 $1,661,526 Net (with carry forward) $548,849 $848,465 $329,870-$981,414-$6,124,778-$4,463,252-$2,801,726-$1,140,199 $521,327 $2,182,854 � COUNCIL GUIDANCE: QUESTIONS • Does the Council want staff to pursue the TBD 1 /10 sales tax initiative? • Next Steps