FEDRAC PKT 10-08-2018 - Special CITY OF
t. Federal Way
SPECIAL
FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE
[FEDRAC]
Monday—October 8,2018 FEDERAL WAY CITY HALL
5:00 P.M. AGENDA HYLEBos ROOM
1. CALL TO ORDER
2. COMMITTEE BUSINESS:
A. REVENUE SUSTAINABILITY DISCUSSION
B. FUTURE SPECIAL FEDRAC MEETING DATES
NEXT SPECIAL MEETING: November?,2018 @ 5:00 City Staff.
Dini Duclos, Chair Ade Ariwoola, Finance Director
Hoang Tran Robyn Buck,Administrative Assistant
Lydia Assefa-Dawson 253-835-2527
CITY OF
... Federal Way
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REVENUE SUSTAINABILITY DISCUSSION FROM JULY 9, 2018
• Air B&B
• Increase sales tax rate
• Marijuana tax
• Nuisance tax on vacant buildings or vacant land, undeveloped land
• Storage facility fees - Mr. Ariwoola will be meeting with storage group next
week and will report back to the committee.
• LID Lift
• Increase in City fees — CD, PW, and PAEC to review the 2019 fees.
• Increase fees for renting Chambers — We do not rent Chambers for profit. The
fee is to recoup costs associated with the rental.
• Increase business registration fees
• Mr. Call reiterated that there are things we can do to change behavior by
increasing fees, but must not discuss them in the context of making money.
• Parking garage fees
• Bringing in a lounge/bar/night life
• Taxing mortgage companies/real estate companies for vacant properties
• Charge for building inspectors to go out to rentals (mostly single family) and
make sure landlords are taking care of properties (suggestion will be going to
LUTC for review by Brian Davis). This is not necessarily a revenue generator. The
cost would cover the expense of the building inspector. Our community is built
out and we are now in re-development because of that we do not have the ability
to cover costs of deployment of re-development projects. This would require
legislation. Mr. Tim Johnson explained two types of taxing. o Pigovian Taxes —
Taxing to curb/control behavior. Sugar tax falls under this.
o Freemium Taxes — Ways in which the product or service may be restricted. Le.
Citizen's multiple requests for help with permitting. We do not charge for each
visit a person makes to the CD counter.
• Regarding the empty Sears building, bring in some sort of entertainment facility
(like Round One) — this is up to the property owners
• Deputy Mayor Honda asked why we have not increased the fees accordingly in
the past. Mr. Ariwoola replied that timing is important when raising fees.
• Regarding bringing in more retail - about 5% vacancy on retail, below 10% on
office space
• Bringing in more Med-tech industry
• Revolving rentals for small business or vendors
• Sports performance industry
• Transportation Benefit District
• Councilmember Tran suggested a comprehensive review of every fee to make
sure we are comparable with other cities.
• Jail costs (not revenue)
• Sponsorships and grant programming
• Sell advertising on City property
• B&0 tax
• Fines; parking/traffic tickets, code compliance
Monday,July 9, 2018
• Councilmember Johnson inquired as to how well Dumas Bay is being marketed.
Deputy Mayor suggested more marketing toward weddings. Perhaps renting large
tents for weddings would increase the use and revenue.
• Rent Knutzen Theatre to churches