HomeMy WebLinkAbout07/22/2015 AGENDA i —' . .
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CITY COUNCIL 345 6� Street, Suite 600, Bremerton, WA 98337 ❑ Phone (360)473-5280
***AMENDED ***
JULY 22, 2015
CITY COUNCIL STUDY SESSION
5:00 PM in COUNCIL CONFERENCE ROOM 603
The Study Session is open to the public, but there will be no opportunities for input or participation;no
action is anticipated during the Study Session;and the content of these items is subject to change. If
approved by the Council, the items will be placed on fhe August 5, 2015 Council Meeting Agenda.
A. INFORMATION BRIEFINGS
1. Fiscal Impacts of West Bremerton UGA and Gorst UGA Annexations—Allison Satter, Senior
Planner; and BERK Consulting (Natasha Fedo and Aaron Raymond)
2. 2015 Update on the Kitsap Homeless Housing Plan — Kirsten Jewell, Housing & Homelessness
Program Coordinator, Kitsap County Department of Human Services
B. NO PRESENTATION PLANNED— The following items are budgeted items or subjects that have
been raised with the appropriate Council Committee Members:
3. Acceptance of the Lodging Tax Advisory Committee (LTAC) Recommendations for 2016
Allocations— Dino Davis, LTAC Committee Chair
4. Change Order No. 2 with Lakeside Industries for the Pavement Preservation Project—Tom
Knuckey, City Engineer
C. BRIEFINGS 8� FULL PRESENTATIONS
5. . .
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; , � Item bumped to August 12
D. GENERAL COUNCIL BUSINESS
o Announcement for Volunteers to serve on Committees to Write Statements "For" & "AgainsY'
Proposition No. 1 — Public Safety Bond
o Audit Committee Briefing (7/16/15 Meeting)—Chair Leslie Daugs
o Other General Council Business
E. ADJOURNMENT OF STUDY SESSION
� Americans with Disabilities Act accommodations provided upon request. Those requiring special accommodations
should contact the City Clerk's Office at(360) 473-5323 at least 24 hours prior to the Council meeting.
INFORMATION ONLY ITEM
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: To discuss the fiscal impacts of Study Session Date: July 22, 2015
West Bremerton Urban Growth Areas (UGA) Presenter: Allison Satter
and Gorst UGA annexation. Phone: 360-473-5845
SUMMARY: Consider the fiscal impact analysis for the potential annexations of the West Bremerton
and Gorst Urban Growth Areas (UGAs). These areas include Navy Yard City, Rocky Point, West
Hills and the Gorst UGAs. The analysis is intended to provide a reasonable estimate of potential
costs and revenues associated with annexation and to allow for the development and evaluation of
alternative scenarios to test the implications of development assumptions, policy choices, and
alternative service delivery options, to help the City determine how to proceed with the potential
annexation of these areas.
Information will be presented by BERK Consulting: Natasha Fedo and Aaron Raymond.
Please provide Staff direction on how to proceed with potential annexations areas for: Rocky Point,
West Hills, Navy Yard City, and Gorst.
HANDOUTS:
Attachment A: Fiscal Impacts of West Bremerton UGAs and Gorst UGA Annexation Report
STUDY SESSION AGENDA: ❑ No Presentation � Full Presentation
Form Created 5/4/15
CITY OF BREMERTON
DRAFT FISCAL IMPACTS OF WEST
�REMERTON UGA AND GORST UGA
ANNEXATION
FINAL DRAFT: JULY 10, 2015
:ill BERK
Tabie of Contents
1.0 INTRODUCTION ..............................................................................................1
1.1 Study Purpose ....................................................................................................... 1
1.2 Study Area Description.........................................................................................2
1.3 Document Organization ........................................................................................ 3
1.4 Approach and Methodology..................................................................................4
1.5 Data Sources.......................................................................................................... 5
2.0 ASSUMPTIONS................................................................................................7
2.1 General Assumptions............................................................................................ 7
2.2 Development Assumptions................................................................................... 7
3.0 SUMMARY OF KEY FINDINGS .......................................................................9
3.1 Baseline Budget Assumptions (No Annexation).................................................9
3.2 Annexation is Estimated to Provide a Net Fiscal Benefit to the City............... 10
4.0 SHORT-TERM IMPACTS...............................................................................11
4.1 Short-term Operating Revenue Impacts ............................................................ 11
4.2 Short-Term Operating Cost Impacts.................................................................. 15
4.3 Short-Term Capital Impacts................................................................................ 18
5.0 LONG-TERM ANNEXATION IMPACTS.........................................................22
5.1 Long-Term Operating Impacts............................................................................22
5.2 Long-Term Capital Impacts.................................................................................22
Appendix A: Gorst Preferred Alternative Land Use Map
I ' • 1 •
1.1 STUDY PURPOSE
The City of Bremerton is considering annexation of the Navy Yard City, Rocky Point,West Hills,and Gorst
Urban Growth Areas(UGAs), and this analysis was conducted to assist the City in assessing the fiscal
implications of such an annexation.While in 2014 a separate analysis was completed evaluating
potential annexation of the Gorst UGA,this assessment combines the impact of annexing all four areas
at the same time.The purpose of the analysis is to give the City an understanding of specific incremental
fiscal impacts—costs and revenues—of such an annexation during the first five years after annexation.
In addition,the City is interested in potential long-term fiscal impacts of annexation.This analysis
assesses high-level potential impacts over the next 20 years to identify long-term risks,opportunities,
and uncertainties the City of Bremerton should consider.
FINAL DRAFT � July 10,2015
CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON UGA ANNEXATION
1.2 STUDY ARE�► DESCRIPT9��
Exhibit 1:Potential Annexation Areas Map
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Source:Kitsap County,2014;BERK,2015.
In �014,the Navy Yard City, Rocky Point,West Hills, and Gorst UGAs had a population of approximately
4,900 residents and an estimated 630 jobs.
Navy Yard City UGA.The Navy Yard City is the largest of the four areas in terms of population and
employment,with approximately 2,600 residents and an estimated 370 jobs in 2014.
Rocky Point UGA. Rocky Point UGA is primarily residential,with a population of approximately 1,560
residents.
West Hills UGA. In 2014,West Hills UGA had a population of approximately 480 residents and an
estimated 15 jobs.
Gorst UGA. In 2010,the Gorst UGA had a population of 222 residents and an estimated 237 jobs. Under
the Preferred Alternative from the Gorst Subarea Plan developed in 2013,the UGA is planned to evolve
into a complete community with places to live, play, shop, and work in a waterfront setting. Mixed uses
would be allowed through much of the UGA.The waterfront area would allow lower intensity
commercial uses with smaller impervious footprints interspersed by trails, parks,and reclaimed
shoreline habitat. Under this alternative the UGA is assumed to add 1,060 people and 298 additional
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CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON UGA ANNEXATION
jobs by 2035. For a map that shows the future zoning of Gorst under the Preferred Alternative, please
refer to Appendix A.
1.3 DOCUMENT ORGANIZATION
This document includes the following sections:
• Assumptions
• Preliminary Drah Short-Term Impads
• Preliminary Draft Long-Term Impacts
2.0 Study Approach.This section introduces the approach and methodology of this study,and provides
some additional background information in the purpose of the analysis.
3.0 Summary of Key Findings.This section presents the high-level findings around net fiscal impact of
the annexation.
4.0 Short-Term Annexation Impact.This section presents the detailed findings for operating costs and
revenues and capital costs and revenues for the first five years after annexation.
5.0 Long-Term Annexation Impacts.This section presents a high-level consideration of how the
annexation may impact the City over the next 20 years.
Appendix A. Gorst UGA Preferred Alternative Future Land Use Map.
FINAL DRAFT �July 10,2015
CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON U6A ANNEXATION
1.4 APPROACH AND METHODOLOGY
This report presents planning-level operating cost and revenue estimates of annexing the Navy Yard
City, Rocky Point,West Hills,and Gorst UGAs into the City of Bremerton over the next five and twenty
years.The report also addresses capital impacts of annexation including capital facility needs and capital
revenue estimates.
High-Level Planning Document
It is important to note that this is a financial planning study and not a budget development exercise.
The analysis is intended to provide a reasonable estimate of potential costs and revenues associated
with annexation and to allow for the development and evaluation of alternative scenarios to test the
implications of development assumptions, policy choices, and alternative service delivery options,to
help the City determine how to proceed with the potential annexation of these areas.
If the City proceeds with annexation,this analysis provides a basis from which the City can begin the
process of planning for the higher service demands of a slightly larger city. However,the actual
implementation will be accomplished through the regular budget process wherein City management will
revisit the balance of costs and revenues in light of updated information and the overall needs of the
City at that time.
In addition,staffing projections used in this analysis are the best estimates given current information.
The City will need to determine exact staffing levels for each department if annexation becomes a
reality.There will likely be a transition phase as new staff are hired and trained,which can include
substantial lead time.The number of personnel needed and the timing of hiring by position will have to
be planned to a greater level of detail was necessary for this planning-level analysis.
While this analysis provides a comprehensive look at the potential incremental impacts on the City's
financial picture, it does not provide a full accounting of the City's projected sources and uses of funds.
2014 Base Year �udget
BERK started this study in mid-2014,and due to timing, used the 2014 City of Bremerton budget as a
basis for building the baseline fisca►model.The preliminary draft results were submitted to City staff in
late 2014.The City has since finalized the 2015 budget; however,after reviewing both 2014 and 2015
budgets, BERK determined that there were no considerable structural changes between these budgets.
For this reason, BERK would not expect significant differences in planning-level results of the study and
is comfortable with continuing to use 2014 as a basis for the analysis. BERK also consulted with the City's
finance staff,who confirmed the reasonableness of this assumption.
Analysis Considers City With and Without Annexation
To be an effective decision support tool,the analysis cannot consider fiscal impacts by looking just at the
annexation areas alone, but instead must consider the potential impacts of annexation by comparing
the fiscal outlook for the City of Bremerton under two alternative futures: (1)the future of the current
City with boundaries unchanged and (2)the future of a larger version of the City that includes
annexation of the Navy Yard City, Rocky Point,West Hills,and Gorst UGAs.Analysis of these two
alternative futures provides a truly comprehensive look at the potential implications of annexation on
long-term fiscal sustainability.
FINAL DRAFT � July 10,2015
CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON U6A ANNEXATION
Land-Based Fiscal Model
BERK developed an annexation fiscal model to estimate revenues and expenses for both the existing City
and a post-annexation City.Taking the analysis into the future shows how the fiscal balance in the City
might change over time and how annexation might affect the long-term fiscal outlook for the new,
larger City.
Ongoing Costs and Revenues
The fiscal model estimates changes in the cost of services based on relationships between direct
services, such as maintenance workers or planners,and underlying demographic and community
changes,such as increases in population, housing units, commercial activity, and land area.
Costs are separately estimated for labor and non-labor categories:
• Labor costs are based on current salaries and benefits and an assumed annual escalation rate.
• Non-labor costs in each department are driven by the current relationships between the number of
Full Time Equivalents (FTEs) in that department and the magnitude of non-labor costs in that
department.
• Non-labor costs that are unrelated to the positions in a department (such as facilities maintenance,
which is related to the size of a building, or street lighting costs, which are related to lane miles) are
separated from the department costs and estimated based on relevant cost drivers.
• The analysis of operating impacts focuses solely on the general and street funds, as these are the
primary operating funds forthe City.Enterprise funds,whose operations are generally self-supporting
through user fees,are not addressed as part of the operating impact analysis.
Capital Cost and Revenue
The capital impact analysis includes capital costs from all City departments, including the enterprise
funds,to capture all capital needs in the potential annexation areas.The capital revenue analysis
focuses on general capital revenues, primarily Real Estate Excise Tax.
1.5 DATA SOURCES
Data used in this report came from the following sources:
• City of Bremerton
o City of Bremerton Budget,2014
o Staffing detail including position titles, FTEs,salary and benefit costs,2014
o Bremerton Annexation of Gorst UGA Memo, 2014
o Gorst Creek Watershed Stormwater Capital Improvement Plan, 2013
o Gorst Planned Action Environmental Impact Statement,2013
o White Paper: Rocky Point Assumption Issues, 2014
o Bremerton Department of Public Works and Utilities, Capital Improvement Program Overview,
2014
o Bremerton Department of Public Works and Utilities,Water System Plan Update, 2012
o Bremerton Department of Public Works and Utilities, Wastewater Comprehensive Plan Update,
2014
o Bremerton Parks Department, Parks, Recreation &Open Space Plan,2014
FINAL DRAFT � July 10,2015
CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON U6A ANNEXATION
� Kitsap County
o Kitsap County Assessor, Parcel data,2014
o Kitsap County, Buildable lands data, 2014
o Kitsap County Assessor, Personal property tax revenue, 2012
o Kitsap County GIS, Parcel and street layer,2014
o Kitsap County, UGA Sizing&Composition Remand Final Capital Facilities Plan Update,2012
o Kitsap County Parks, Recreation&Open Space Plan,2012
o Kitsap County Public Works, Navy Yard City Sewer CFP 2015-2020,2014
o Kitsap County Public Works, Sewer Utility Six-Year Capital Facilities Plan 2014-2019
o Kitsap County Public Works,Solid Waste Division Six-Year Capital Facilities Plan 2014-2019
o Kitsap County Public Works, Surface and Stormwater Plan Six-Year Capital Facilities Plan 2014-
2019
o Kitsap County Public Works,Transportation Six-Year Improvement Program 2015-2020
� Puget Sound Regional Council
0 2014 employment
• Washington State Department of Revenue
0 2013 taxable retail sales
• Washington State OfFice of Financial Management
0 2014 population
0 2014 housing units
FINAL DRAFT � luly 10,2015
CITY OF BREMERTON
FISCAL IMPARS OF WEST BREMERTON UGA ANNEXATION
� � � �
2.1 GENERAL ASSUMPTIONS
General Assumptions
The analysis assumes that the City of Bremerton annexes the Navy Yard City, Rocky Point, West Hills,
and Gorst UGAs into the City in 2016.The analysis assumes annexation related costs and revenues
accrue on an annual basis beginning in 2016.
All analysis presented in this document is based on annual estimates.Actual impacts from annexation in
any specific year will depend on the effective date of the annexation. Impacts in this document should
be considered planning-level estimates for the City to understand the direction and magnitude of likely
impacts.
Escalation Assumptions.The analysis assumes a general inflation rate of 3.0%annually. Staff salaries are
escalated at 2.0%annually. Benefits are assumed to grow at 6.5%per year in most years,with the
following exception: benefits are assumed to jump by 15%in 2018 due to Affordable Care Act
implementation rules regarding health plans.
2.2 DEVELOPMENT ASSUMPTIONS
The analysis is built on the premise that key factors in the land base(such as population,employment,
and commercial activity)drive both demand for services and changes in the City's tax base. Demand for
services drives costs in the model, and depends on a jurisdiction's scope of services and choices
regarding level of service.The tax base drives revenues and will vary based on a jurisdiction's choices
regarding fiscal and taxing policy(limited by tax laws).
The BERK fiscal analysis framework is flexible and allows for varying assumptions about anticipated
development in the City and annexation areas over time,and how these changes affect the underlying
local tax base. In particular,the following elements are explicitly specified: (1)development assumptions
including type,scale,and timing of new development; (2)type and mix of tenants,associated
employment, and business income levels; (3) housing mix(single-family and multi-family)and density;
and (4) productivity of new retail activity.
Development assumptions within the City of Bremerton's current boundaries assume a level of
development activity similar to that seen historically. Development assumptions for the potential
annexation areas are described below.
Exhibit 2 summarizes the population and employment projections that underlie the cost and revenue
estimates in this study.The first column shows the current estimated housing units, population,and
employment within the Navy Yard City, Rocky Point,West Hills,and Gorst UGAs.The subsequent
columns show the estimated housing units, population,and employment in the UGA boundaries over
time.
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CITY OF BREMERTON
fISCAL IMPACTS OF WEST BREMERTON UGA ANNEXATION
Exhibit 2.Development Metrics for Potential Annexation Areas(2014•2031)
2014 2016 2021 2026 2031 ' AAGR 2014-2031
�Navy Yard City--------------- � _..----------�
'--- ----�----------�.._....---�-------------—•----.._..------- -----�--._....---
HousingUnits 1,332 1,365 1,447 1,529 1,611 € 1%
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Population 2,613 2,727 2,916 3,105 3,294 � 1%
Est.Employment 374 435 597 776 974 ! 6%
--—--- — --------- ----------
--:—•-----------,
+Rocky Point ' �
------ -------�------��--------__..-�---._.._.__........--� - -._..._..._..-----------'• —......------..._....---.._._.�
HousingUnits 734 764 839 915 990 ; 2%
Population 1,557 1,664 1,843 2,022 2,201 � 2%
Est.Employment 2 2 2 2 2 � -
..—..-------�--- --------- ------ -----..—..-----�------:----------��---
IWest Hills Island € �
�----�-----------------...------� �--- ---------- ---------...._....--��---�----...------------- :--...---...---- ----- ----�..__.....
Housing Units 209 230 282 334 387 : 4%
Population 480 554 679 803 927 i 4%
Est.Employment 15 15 15 15 15 i -
- - • - -
------------ ----------------� --...------------�----------�-- ---------•� ---- -----------�---.....
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;Gorst �
•---------....._.........._....._._...-------- ------ -- :
.._._..__......_._.._..._._........------__--._._.._...._..._ a
----... _._....- ---._._....-:-----------------------
Housing Units 106 107 141 268 520 ; 10%
Population 222 234 311 573 1,040 � 10%
Est.Employment 237 237 275 342 428 � 4%
_ _. - - —--------�-----�---------�----�---...._..------�- �--------•-,
�Total All Potentia)Annexation Areas ;
__.__.__-- -�-� ................_..__ ._...........-----........_.._..._.__._...- ---......__._..._....._.._..___..._._.....------------- ----..__......----:-----------------�--....
Housing Units 2,381 2,466 2,710 3,046 3,508 � 2%
Population 4,872 5,179 5,748 6,503 7,462 3%
Est.Employment 628 689 889 1,135 1,419 � 5%
Source:Kitsap County,2014;BERK,2015.
Gorst.These development assumptions are based on the adopted Preferred Alternative in the 2013
Gorst Subarea Plan,which designated long-term growth targets for 2035. Interim years are interpolated
based on conversations with planners and City staff,and give a conceptual representation of the pace at
which the UGA may develop to reach its long-term targets.
• Immediately upon annexation in 2016,the City of Bremerton will add to its boundaries the 107
housing units, 234 residents, and approximately 237 jobs in the Gorst UGA.
• By 2021, it's estimated that the Gorst area will have grown to include approximately 141 housing
units, 311 residents,and approximately 275 jobs.All of this activity would be located within the new
boundaries of the City of Bremerton.
• Based on the Gorst Subarea Plan,this fiscal analysis assumes that Gorst will grow to approximately
520 housing units, 1,040 residents, and approximately 428 jobs by 2031.
Navy Yard City,Rocky Point,and West Hills. Since a detailed subarea plan has not been developed for
these subareas,development assumptions for this model were based on assuming similar build-out
rates for these PAAs as for the Gorst subarea.Therefore,of the available capacity in each subarea,the
same percentage of available residential and commercial capacity was assumed to be built out by 2035
in all four subareas.The driving assumption was the implicit build-out percentage from the Gorst
Subarea Plan Preferred Alternative.
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CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON UGA ANNEXATION
� � � � �
This section provides a brief overview of the key findings of our analysis of how annexation of the Navy
Yard City, Rocky Point,West Hills,and Gorst UGAs will impact the City of Bremerton, based on the
conceptual development assumptions identified above.This section quantifies the impacts for both
operating costs and revenues as the City transitions through the annexation.
• Short-term impacts, defined as 2016-2020,are explained in more detail in Section 4.0.
• longer-term impacts of annexation (after 2020)are described in Section 5.0.
3.1 BASELINE BUDGET ASSUMPTIONS (NO ANNEXATION)
While all cities across the state are different in terms of tax bases, mixes of commercial and residential
land uses, and fiscal policies, almost all cities face structural challenges in local government funding that
have led to the cost of municipal services growing at faster rates than tax and fee revenues.This creates
an ongoing budget challenge for cities to maintain adequate levels of service without changing tax and
fee policies.The most significant contributors to this underlying structural challenge have been the
result of two voter approved initiatives:
1. Initiative 695,which was passed by voters in 1999, reduced Motor Vehicle Excise Tax rates to a flat
$30 fee.A portion of these revenues were used to support sales tax equalization payments that
were a significant funding source for many cities with lower than average sales tax collections.
2. Initiative 747(and subsequent legislative action to restore the provisions of the Initiative after it was
declared unconstitutional by the Supreme Court in November 2007) limits growth in property taxes
to 1%per year,without voter approval.The effect of this change was to reduce the rate of growth in
property tax revenues,which is one of the three most important sources of local government
funding,to a rate that, in most cases, is lower than general inflation.The 1%limit does not apply to
the value of new construction.
As a result, a projection of revenues and costs that assumes no change in current policies (tax or level-
of-service)suggests the City of Bremerton can expect to face budget deficits in the coming years.This
finding is consistent with the common fiscal challenge in most other cities in Washington State and is
principally related to the impact of rising costs of doing business and additional staffing related to in-city
growth needed to maintain existing levels of service.
Since a city cannot operate with a budget deficit,the Bremerton City Council will make choices each
budget cycle to bring cost and revenue growth into alignment and maintain a balanced budget every
year.When analyzing annexation,it is important to consider that the way in which the City chooses to
address any baseline operating deficits may change the potential impacts of annexation. For example, if
the City were to consider raising business or residential taxes to close the gap,the different tax rates
would change revenues expected from the annexation areas based on the individual land base in those
areas. If the approach were to reduce costs by modifying levels of service,then these revised levels of
service would reduce costs associated with annexation in different proportions, again based on the land
base and the corresponding demand for services.
It is not possible to know what the City of Bremerton's future Councils may choose to do to balance
future budgets,and the City does not need to make those decisions at this time.Since the goal of this
annexation study is to evaluate the incremental fiscal impacts of a potential annexation, it analyzes a
scenario which assumes continuing current policies.This results in a long-term outlook that shows
FINAL DRAFT �July 10,2015
CITY OF BREMERTON �
FISCAL IMPARS OF WEST BREMERTON UGA ANNEXATION
increasing budget deficits.These long-term deficits represent the structural imbalance between
municipal cost and revenue growth rates. In reality,the City will balance its budget in any given year.
3.2 ANNEXATION IS ESTIMATED TO PROVIDE A NET FISCAL BENEFIT
TO THE CITY
Exhibit 3 provides a high-level picture of the key findings of this analysis:the annexation of the Navy
Yard City,Rocky Point,West Hills,and Gorst UGAs is estimated to have a slight negative impact in
short term to the City of Bremerton,and moderate annual benefit in the medium-to long-term.
Exhibit 3
Estimated Long Term Net Fiscal Impact of Annexation
2017 2020 2032
Core Expenditures 2,408,000 3,179,000 6,080,000
Core Revenues 2,215,000 3,715,000 6,336,000
FTEs from Annexafion 13.5 15.0 18.9
Net Resources(000's) (193,000) 536,000 256,000
Deficit/Surplus as 4�0 of Expenditures -8� 17% 4%
Source:BERK,2015.
Note: This Exhibit shows the City's future fiscal outlook if no changes were made to policies that impact costs and revenues.
In reality,the City Councd will balance its budget each year.This table represents the impad that the Navy Yard City,
Rocky Point,West Hills,and Gorst UGAs would have under the City's current cost and revenue structures.
The Exhibit shows that in the near term there may be a slight negative impact, as the City may need to
hire some staff before the full revenue impacts of the UGA are realized. In addition,the near term
figures include impact of potential property tax and sales tax revenue sharing with Kitsap County
(approximately$785,000 in 2017;see Section 4.1 for more information).
The short-term and long-term impacts on revenues and costs are described in more detail in the
following sections.Specific decisions around long-term service decisions for police and fire services may
change the long-term impact.
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CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON UGA ANNEXATION
� � � ' ' ' �
4.1 SHORT-TERM OPERATING REVENUE IMPACTS
Exhibit 4 shows short-term estimated revenues that would accrue to the City of Bremerton from
annexation of the Potential Annexation Areas(PAAs),assuming annexation in 2016.All analysis
presented in this document is based on annual estimates. Actual impacts from annexation in any specific
year will depend on the effective date of the annexation.This analysis of operating impacts only
includes revenues for the General Fund and Street Fund.
Exhibit 4
Annual Annexation Revenue Impacts,2016-2020(Assuming 2016 Annexation Year)
..� � . � � : � • � �
Revenues not assuming any revenue sharing �
---------- ----�--- ---------------------------------�----------...._..-----.�..�
Sales Tax 629,000 665,000 698,000 735,000 777,000
Criminal JusticeTax 60,000 63,000 66,000 68,000 72,000
PropertyTax/Road Levy 0 1,088,000 1,128,000 1,168,000 1,209,000
Leasehold ExciseTax 0 0 0 0 0
UtilityTaxes 296,000 312,000 330,000 347,000 368,000
Commercial ParkingTax 0 0 0 0 0
GamblingTax 0 0 0 0 0
Solid Waste Franchise Fee 19,000 20,000 21,000 22,000 23,000
Building Permits and Fees 57,000 59,000 61,000 63,000 65,000
Business Licenses and Permits 11,000 12,000 13,000 14,000 15,000
EMS Levy 0 191,000 192,000 192,000 193,000
Liquor Board Profits and ExciseTax 52,000 54,000 56,000 59,000 61,000
Gas Tax 104,000 106,000 108,000 110,000 113,000
Plamm�g and Plan Check Fees 23,000 24,000 24,000 25,000 26,000
Municipal CourtCosts 61,000 63,000 65,000 67,000 69,000
Fines and forfeits 134,000 140,000 147,000 153,000 161,000
Recreation Charges (13,000) (13,000) (11,000) (10,000) (9,000)
Grants and Other Intergovernmental 108,000 113,000 119,000 124,000 129,000
Other Charges 29,000 31,000 32,000 33,000 35,000
" B&0 Tax 0 0 0 329,000 329,000
Police5ervicesandAmbulanceTransportFees 68,Ooo 71,000 74,000 76,000 79,000
Internal Charges for Service 0 0 0 0 0
Total 1,638,000 2,999,000 3,123,000 3,575,000 3,715,000
�
�Potentiol Impacts of Revenue Sharing___ ___;
Loss in Sales Tax Revenue (472,000) (333,000) (174,000) ' 0 D
Loss in PropertyTax Revenue 0 (451,000) (312,000) (161,000) 0
Total After Revenue Sharing 1,166,000 2,215,000 2,637,000 3,414,000 3,715,000
Source:City of Bremerton,2014;and BERK,2015.
Exhibit 4 provides two different pictures of the level of revenue the City may receive from annexation.
The top portion of the table shows the full level of revenue that would be generated by the PAAs.The
bottom portion of the table provides a picture of how revenues may accrue to the City if the City were
to sign a revenue sharing agreement with Kitsap County to mitigate the impacts of annexation on the
County's finances.Such an agreement would only be put in place if the interlocal method of annexation
were used.
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Currently,the City is not subject to a revenue sharing agreement with Kitsap County. However,for the
purpose of providing a conservative fiscal analysis,the revenue estimates assume that the City may
choose to participate in revenue sharing.
The 2020 revenue impacts shown in Exhibit 4 reflect a stable picture of the PAAs going forward,given
that this analysis assumes the City would be past any potential revenue sharing agreements with Kitsap
County by 2020. In 2020, it's estimated that the City would receive approximately$3.7 million in
revenue from the annexation of these areas.This amount would grow going forward based on inflation
as well as increased development in the UGA over time as services are built out.
Operating Revenue Detail
This section describes the methodology used to estimate the primary revenue items described above.
Primary Revenue Sources
As with many cities in Washington State,the three largest revenue sources for the City of Bremerton are
Sales Tax, Property Tax,and Utility Taxes (including Payments In Lieu of Taxes(PILOT)�,which make up
approximately 60%of the City's 2014 general and street fund operating revenues.Additionally,the City
levies a Business&Occupation (B&0)tax that is a significant revenue contributor, although the City is
working to reduce this source of revenue over time.
Sales Tax.Taxable retail sales are assumed to increase by 0.5%per year higher than the general inflation
rate of 3.0%used in this analysis. If the City entered a revenue sharing agreement with Kitsap County to
offset the impact to the County of losing the UGA,this analysis assumes the City would receive 25%of
sales tax revenues generated in the UGA in 2016,SO%in 2017, 75%in 2018, and 100%of revenues
thereafter. Any actual revenue sharing agreement would be negotiated with the County and may vary
from these assumptions.
Property Tax.The property tax revenue (the amount that the City can collect) is limited to 1% or IPD
(Implicit Price Deflator),whichever is lower,above the previous year collections plus a levy on the value
of new construction. In future years,the base assessed value in the City and annexation areas is
expected to increase at a rate of 2% (0.5%below inflation).Additional assessed value wi�l be added to
the area through residential and commercial development.
If the City entered a revenue sharing agreement with Kitsap County to mitigate the impacts of
annexation on the County's budget,this analysis assumes that property tax revenues would be shared
with the County using the same ratios as described above for sales tax. The timing of annexation will
impact when the City begins to collect the property tax levy from the PAAs. Collections would only begin
in 2017 if the City annexes the UGA early in 2016.
Utility Tax and PILOT. Utility taxes for telephone,gas,cable,electricity,and garbage are assumed to
grow based on the combination of population and employment in the PAAs. Current rates of these
utility revenues to population and employment in the City of Bremerton were applied to assumed
population and employment totals in the UGA to estimate utility revenues that would be generated
within the UGA.
The City utility systems transfer Payments In Lieu of Taxes(PILOT)to the General Fund. PILOT payments
include water,wastewater,and stormwater systems and are charged to the utility as a percentage of
the total revenue from all customers.These revenues are similar to utility taxes and are projected in a
similar fashion.
The City already provides water service within Gorst, Navy Yard City,and West Hills,and charges a 50%
surcharge for these customers since they are outside city limits. Rocky Point currently has its own water
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district,although the water is purchased from the City of Bremerton;this study assumes that the Rocky
Point Water District would be absorbed into the City upon annexation.Therefore,annexation of these
UGAs would result in a decrease in revenues from these customers to the utilities.This will subsequently
result in a decrease in PILOT revenues to general and street funds(approximately$95,000 in 2016).
Business&Occupation Tax.City of Bremerton is slowly reducing its dependency on B&0 taxes as a
major revenue source by increasing the total Gross Business Income(GBI) exemption by$20,000 per
year until the tax is no longer collected (Bremerton Municipal Code 3.48.050(2)(b)). In 2015,this
exemption is at$120,000. Due to this provision, B&0 tax receipts have generally stayed flat over the last
several years.To account for this going forward, B&0 revenues for both the City and the annexation
areas are projected to stay at current levels throughout the timeframe of this analysis, effectively
reducing the real value over time.
In addition, business in the PAAs would be exempt from the City's B&O tax for the first three years after
annexation.Therefore, B&O tax revenues are assumed to begin accruing to the City in 2019. For existing
Gross Business Income(GBI) in the Gorst UGA,the model assumes that the City's retail tax rate will
apply,since the majority of business activity in Gorst comes from the retail sector.This tax rate is
0.125%.
For the increase in GBI from development within the UGA,this analysis uses an effective tax rate of
0.1625%to account for exemptions and varying rates based on types of businesses.This effective rate
reflects the City's current ratio of B&0 tax revenues compared to total Gross Business Income (GBI) in
the City.
Other Revenue Sources
The City also receives revenue from many other sources, as described below.
Criminal lustice Tax. Kitsap County levies a dedicated sales tax to support criminal justice expenditures.
This 0.1%sales tax is collected by the state Department of Revenue,and is distributed to counties and
cities on a per capita basis. In 2014, Bremerton estimates per capita criminal justice sales tax revenue at
approximately$11.04 per capita. Future revenues are calculated on a per capita basis,with the annual
per capita revenue assumed to increase at the rate of inflation.
Solid Waste Franchise Fee.The Solid Waste provider in the City pays a franchise fee for providing this
service within the City limits.These revenues are projected on a per capita basis and are estimated to be .
$3.51 per resident in 2014.These fees are assumed to extend into the PAAs upon annexation.
Building Permits and Fees&Planning and Plan Check Fees.These fees help cover the cost of staff that
review building plans and permit applications for residents. Since the City does not set its fees on a strict
cost recovery basis,these revenues are estimated on a per-capita and per-job basis,and are assumed to
increase both with inflation as well as increases in population and employment.
Business Licenses and Permits.The City of eremerton charges a fee to obtain a business license within
the city limits.These revenues are projected based on the ratio of total employment in the City and the
annexation areas.Annual employment estimates are generated from land use and development
assumptions within the model.
EMS Levy.The City of Bremerton is currently authorized by voters to levy an Emergency Medical
Services tax.The maximum allowable levy is$0.50. In 2014,the current levy rate is$0.50 since this levy
was renewed at the maximum rate in August 2014.
Because the EMS Levy is a form of property tax, is it subject to the same 1.0%annual increase plus new
construction in years without voter-approved increases. It is therefore assumed that the levy revenue
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will begin to stabilize going forward as assessed values begin to grow at a pace more in line with
historical growth as the region recovers from the economic recession.
The timing of annexation will impact when the City begins to collect the EMS levy from the PAAs.
Collections would only begin in 2017 if the City annexes the UGA early in 2016.
Liquor Board Profits and Excise Tax. According to Washington State law,a share of the state profits
from liquor sales and state collected excise tax on liquor is distributed directly to cities on a per capita
basis. Currently,the City's budget estimates the per capita distribution for liquor profits and excise taxes
to be$9.89 in 2014.This per capita estimate is assumed to increase with inflation.
Gas Tax.A portion of the state-collected gas tax is shared directly with municipalities,which bear a
substantial portion of the overall costs of road maintenance and construction.The gasoline and diesel
tax is a flat amount levied per gallon (rather than a percentage of the price at the pump).
Cities are allowed to use this funding for maintenance or capital, and Bremerton uses the full funding
amount for street maintenance.The gas tax revenue estimates from the City's budget project a per
capita gas tax allocation of$20.03 in 2014. Since the tax is a per-gallon tax and not impacted by changes
in prices,this per capita number is assumed to remain constant into the future.
Municipal Court Costs.These revenues are collected through fees that help cover the cost of Municipal
Court services.These revenues are estimated to grow with increases in population and employment
going forward,with the per-capita and per-employment amount growing with inflation into the future.
Fines and Forfeits. Currently,the City's budget projects the per capita revenues for fines and forfeits to
be approximately$24.53 in 2014.This per capita estimate is assumed to increase with inflation going
forward.
Recreation Charges.This analysis assumes that current UGA residents are already using the City's parks
and recreation services,and therefore new revenue will only come from population growth from
development within the UGA. Users who live in the PAAs and currently pay for parks and recreation
services are charged a 25%surcharge for being non-residents.Therefore,there would be some loss in
revenue from these uses being transitioned into the City at first.Over time,the revenue from new users
will offset revenue loss from the 25%non-resident surcharge.
Grants and Other Intergovernmental Revenue.The grants and transfers from other government
agencies considered in this analysis are for operational expenditures only, not those for capital projects.
Future revenues from these sources are estimated on a per capita basis and applied to the annexation
area population.The current per capita revenues,according to the City's 2014 budget,are$20.08 and
are assumed to increase at the rate of inflation. It is important to note that it is difficult to estimate this
source of revenue,as grants tend to fluctuate widely from year to year,and that very little additional
revenue will likely be seen from annexation.
Police Services and Ambulance Transport Fees.The City estimates it will receive approximately
$323,100 in 2014 from law enforcement services,such as fees for police service,fingerprint fees,and
police records searches. Currently,the City's budget projects the per capita revenues for police services
to be approximately$20.57 in 2014.This per capita estimate is assumed to increase with inflation going
forward.
This analysis assumes that the City would take over provision of fire and EMS services for Rocky Point,
West Hills,and Navy Yard City. Bremerton Fire Department estimates approximately 5 ambulance
transports per month from Navy Yard City, resulting in approximately$21,000 in additional revenue per
year.
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Other Charges.This analysis models approximately$250,000 in other miscellaneous revenues.These
charges include revenue streams such as investment interest,donations, miscellaneous permits and fees
not related to buildings or businesses, and other minor charges for City services. Currently the revenue
estimated in the City's budget projects the per capita revenues for these miscellaneous charges to be
approximately$6.79 in 2014.This per capita estimate is assumed to increase with inflation going
forward.
Leasehold Excise Tax,Commercial Parking Tax,Gambling Tax,and Internal Charges for Service.These
revenues are not expected to be impacted by the annexation of these PAAs,as the taxes are structured
in such a way that they will not see an increase from adding the UGA to the City's boundaries.
4.2 SHORT-TERM OPERATING COST IMPACTS
Exhibit below summarizes the estimated cost impacts of a 2016 annexation in 2020—five years later.
The chart shows 2020 because it presents a snapshot of the short-term impact of annexation once
development in the PAAs has begun and the departments have hired up to their full short-term need.
Years 2016-2019 are not shown in the table, because the exact impact in any one year will depend
greatly on how the City chooses to ramp up its hiring.The City will need to weigh the impacts being seen
on the ground as wel�as the actual revenue increases from the PAAs to determine when hiring decisions
need to be made.The methodology behind these hiring numbers is described after the chart.
Exhibit 5
Snapshot of Annexation Staffing and Cost Impacts,2020
. •. . . . Zozo
•. • �••. FTEs Annual Cost*
City Council - -
Mayor/Auditor - -
Finance/Human Resources 1.50 191,000
Engineering - -
Law Enforcement 6.50 1,055,000
Fi re 3.00 970,000
Municipal Court - 37,000
Community Development 1.50 207,000
Parks 0.50 84,000
Streets/Public Works 2.00 518,000
Legal - -
Non-departmental - 117,000
TOTAL 15.00 3,179,000
*The annual cost includes staffing costs as well as
non-laborcosts such as contracts and equipment.
Source:BERK,2015.
The annual costs listed next to the FTE amounts reflect the total annual cost increase in each of these
departments due to annexation. In some cases,these increases include equipment,supplies, utility
costs,and contract charges.
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Operating Cost Detail
Operating cost and staffing impacts were estimated based on our land base fiscal model and refined
after conversations with City staff.The following departments are estimated to receive cost impacts
from the annexation:
• Finance. The finance department will likely need to add one additional Accounting Assistant II
beginning in 2017 to handle the increase in licensing activity, and about 0.5 FTE additional payroll
specialists to handle increased staffing levels in other departments.
• Police. The Police Department currently serves the City in five patrol areas with a total of 71 FTEs
including commissioned and non-commissioned staff. According to the Bremerton Police
Department,annexing all four PAAs at the same time would trigger the need for a new patrol area to
serve the residents and businesses in these areas with the same response times that other City
residents receive. While Rocky Point, West Hills, and Gorst do not currently generate a large call
volume, Navy Yard City is known for a high volume of service calls related to felony crimes.
If a new patrol area were added, it would require 6.0 FTEs to provide full-day patrol service.There
would also be a need for 0.5 FTE Community Resource Specialists.
There is a timing gap of approximately one year that exists for Police Officers between testing,
academy,training,and readiness for patrol activities.To bridge this gap and also to phase-in the
annexation impact in the short-term,the Police Department could add 2 FTEs to the graveyard shift
(8pm until 6:40am)to cover the time with the highest number of calls.Another option is adding 2
FTEs to the graveyard shift and 2 FTEs to the day shift(6:20am until 5pm)to have better service
coverage. However, both of these scenarios would still likely result in slower response times to the
PAAs and potentially the City unti�the new patrol area is added.
These additional staff members will necessitate a one-time capital investment for new vehicles(3
patrol cars at$42,000 each, using ratio of two officers per car) and equipment($5,000 per officer,
$30,000 total).
• Fire.The four PAAs differ in their estimated impacts to fire services:
o Gorst. Given the geographic constraints of the UGA,the City plans to contract with South Kitsap
Fire and Rescue (SKFR)to continue providing service to Gorst.The City would pay for this service
based on SKFR's current levy rate of$2.00 per$1,000 AV.This equates to approximately
$100,000 annually beginning in 2014,and would increase over time with development in Gorst.
o Rocky Point.Similar to Gorst,this area is also currently served by SKFR.The City already
responds to calls in this area based on mutual aid agreements, and the Fire Department
estimates that they can provide service to this area with no additional staffing.
o West Hills.This area is currently served by Central Kitsap Fire and Rescue(CKFR).Considering
the small geography and low call volume,the Fire Department estimates that they can provide
service to this area with no additional staffing.
o Navy Yard City.This area is also currently served by SKFR; unlike other PAAs, it generates high
volumes of calls for service.The Fire Department estimates that annexing this area will
necessitate changes to the current response zones including the need for 2 additional
firefighters.
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In addition,the City would likely need to add 1 FTE for additional fire inspection services.This
position would work with the fire marshal's office to conduct inspections of existing developments
within the annexation areas to ensure they are compliant with the City's fire code as they come into
the City's jurisdiction.This staff person would also support the need for additional inspections as
development ramps up in Gorst.
• Municipal Court.The City currently contracts for public defender services, budgeted at$285,000 per
year in the City's 2014 budget. Since the increase in demand for these services is driven by caseload,
this analysis assumes that this contract will increase proportionally with population growth over time.
To estimate the impacts of annexation,the current per capita cost of this contract within the City was
applied to the increase in population from annexation.This approach results in an estimated cost of
approximately $17,000 in 2014, growing with both inflation and population growth going forward.
This contract cost also grows overtime due to population increase within the current city boundaries.
Considering caseload increases in the current city and annexation areas,the total contract is projected
to increase to approximately$380,000 in 2020.
In addition,the City will likely need to increase the Municipal Court's capacityto hear a higher number
of cases. This can be accomplished by increasing the contracted number of hours with the Court
Commissioner,estimated to cost approximately$15,000 per year. This cost will continue to increase
with inflation annually until 2021 when additional part-time judge (or bigger contract for the
Commissioner) is estimated to be needed.
The total cost impact of annexation is estimated at$37,000 in 2020.
• Community Development.The community development department will likely need to add 1.5 FTE
additional Building Development Specialist II (building inspector and plan reviewer) beginning to
handle the increase in permit activity citywide.These additional staff members will necessitate a
one-time capital investment for a vehicle when they are hired.The analysis assumes a one-time cost
of$36,000 for vehicle and other equipment.
• Parks Maintenance and Recreation.The City's parks LOS requires a neighborhood park to be within
%: mite pedestrian distance of all residences. Based.on the land area included in the PAAs and the
locations of existing neighborhood and community parks, the model estimates there would need to
be 7 new neighborhood parks created to meet established LOS requirements for the newly annexed
areas. Using a minimum of 1.5 acres per new neighborhood park this translates into a minimum of
10.5 acres of new park area in the annexed areas. Assuming a maintenance cost to the City of
approximately$4,000 per developed acre,this woutd generate about$42,000 in costs per year once
the parks are developed (reflected in the model as 0.25 FTE laborer,with associated non-labor costs).
While the exact development timeline of these parks is unknown,this analysis assumes maintenance
beginning in 2019 to provide the City with a conservative estimate of cost impacts.
Additionally, based on population growth,the City may need to hire approximately 0.25 FTEs in
recreation program staff to support additional recreational users once residential development in
the UGA comes online.
• Street Maintenance.The new lane miles that will be added to the City through annexation,from both
the existing roads in the PAAs as well as new roads that will be built as the UGA develops, will drive
the need for additional maintenance staff. Based on the constraints of hiring for partial positions,the
City would have to add a full 2.0 FTE based on the additional demand.
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Additionally,there will be marginal costs related to the additional lane mileage beyond just staff
time, including supplies, materials,and utility costs to support the maintenance work.This results in
annual costs of significantly more than just salaries and benefits for the 2.0 FTE.These additional
non-labor costs are based on the average non-labor costs per FTE that the City currently budgets in
the Street Fund. '
• Non-Departmental Impacts.In addition to department-specific impacts,the growth in population and
development will result in marginal cost increases to election services, population-based contracts
with other jurisdictions, and programs like animal control. These costs are based on the share of
population between the baseline City and the City after annexation.This analysis of non-departmental
impacts includes the following major costs:
o Election services
o Care and custody of prisoners
o Animal Control
o Kitsap County emergency management contract
o Public health district contract and alcoholism programs
Additionally,the City may incur additional costs from assuming responsibility for the proportionate
share of South Kitsap Fire and Rescue's(SKFR)debt service that is paid by residents of the PAAs.
In total, non-departmental impacts are estimated at about$100,000 per year immediately after
annexation,and the majority of these costs will grow with inflation and population over time.
The analysis assumes that the other departments not mentioned explicitly above—such as City Council,
Legal,the Mayor's and Auditor's Offices, and Engineering—will not be impacted.
4.3 SHORT-TERM CAPITAL IMPACTS
The following provides an overview of short-term capital facility projects between 2015 and 2020 with
an assumption of annexation in 2016. Overall,there are 9 separate short-term capital facility projects
identified,totaling approximately$18.6 million. Responsibility for these projects is divided between the
City of Bremerton, Kitsap County, public grants and local utility LIDs. Exhibit 6 provides a list of the
individual projects by capital facility type, PAA,and funding source.
Exhibit 6 Planned Short-term Sewer Capital Projects
Capkal ,
UGA Projeds Costs Year Funding Source
Facility Type
Sewer Navy Vard City Navy Yard City I&I Collection System Improvements(l14107001) 52,650,000 2015-2016 Kitsap County
Sewer Rocky Point Phinney Bay Extension(Sub Basin RP-3)(pN5-2A) $1,960,000 2016-2017 UFA/G
Sewer Navy Vard City,Rocky Point,West Hills,et al East&West Brem UGA Sewerage-ULID Development(pN5-1-NS-8) $4,050,000 2016-2018 UFA/G
Sewer Rocky Point Jackson to Corbet Drrve(Sub Basin RP-3)(kN5-2F� 5830,000 2017-2018 UFA/G
Sewer West Hills Ostrich Bay Ex[ension(pN5-4A) $3,720,000 2018-2020 UFA/G
Sewer Rotky Point Sewer Collection-Sub Basin RP-5(71N5-2H) $1,910,000 2018-2020 UFA/G
Sewer Navy Vard City Westside WWTP Outfall(pC-11) $2,650,000 2019-2020 UFA
Sewer NavyYard City,Gorst Grout Annular Space of SW Bremerton Force Main(kC-18� 5200,000 2020 UFA
Stormwa[er Gorst Gorst Creek Watershed Flood Cause Study $600,000 <2020 UFA/G
Total 538,570,000
�UFA=UserFeeAssessment G=Grants&LID
SOURCE: City of Bremerton Wastewater Comprehensive Plan Update,2014;Gorst Creek Watershed Stormwater Capital
Improvement Plan,2013.
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City of Bremerton Responsibilities
For purposes of this analysis,capital facility projects financed by user fee assessments(UFA)were
classified as City of Bremerton projects. A conservative approach was taken whereby projects that
either have full or partial City funding ownership including UFAs were categorized as City funded
projects. As a result, it is estimated that approximately$15.9 million in short-term capital facility
projects would be funded by the City.
The following provides a brief overview of short-term capital facility projects by capital type for those
projects identified as having City-based funding sources.
Fire.(Cost: None).There were no short-term capital impacts related to Fire services for annexation.
Police. (Cost: None).There were no short-term capital impacts related to Police services for annexation.
Parks. (Cost: None).There were no short-term capital impacts related to Parks services for annexation.
Sewer. One to seven projects(Cost: up to$15.3 million).A total of seven short-term sewer capital facility
projects have been identified that are located across the four annexation areas. The four PAAs differ in
their respective estimated respective impact to short-term sewer capital facilities as listed below. Note:
Some projects listed overlap or cross annexation geographies and may be listed more than once.
� Gorst. (Cost: Up to$200,000). One short-term sewer related capital improvement project was
identified for Gorst,the Grout Annular Space of SW Bremerton Force Main.This project is funded by
the City via user assessment fees.
• Navy Yard City. (Cost: Up to$6.9 million).Three short-term sewer capital facility projects have been
identified for Navy Yard City including:
o Westside WWTP Outfall
o East and West Bremerton UGA Sewerage—ULID Development
o Grout Annular Space of SW Bremerton Force Main
All of these projects would be financed by a combination of user fess assessments,grants,and/or
utility LIDs.
Navy Yard City—Additional Confext:Prior to the current annexation study,the County expressed
interest that the City take ownership of the Navy Yard City sewer infrastructure. However,as the
infrastructure for this area dates to WWII there are significant related operating, maintenance,and
capital facility costs.Approximately five years ago the County initially offered the City$1,000,000 in
capital funding to support transition to City ownership. At the time, it was decided that City
ownership did not make sense from a financial perspective and transition of ownership to the City
ultimately did not take place.
Currently,there is one short-term sewer capital facility project listed within the Kitsap County Public
Works Sewer Utility Six-Year Capital Facilities Plan—the Navy Yard City I &I Collection System
Improvements project with an estimated cost of$2.7 million. Based upon conversations with the
City,this project would need to be completed by the County as a prerequisite for annexation.
• Rocky Point. (Cost: up to$8.8 million).A total of four short-term capital improvement projects have
been identified including:
o Jackson to Corbet Drive Sub Basin RP-3
o Phinney Bay Extension Sub Basin RP-3
o Sewer Collection Sub Basin RP-5
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o East and West Bremerton UGA Sewerage—ULID Development
All of these projects would be financed by a combination of user fess assessments,grants,and/or
utility LIDs.
• West Hills. (Cost: up to$1.5 million).Two short-term capital facility projects have been identified
including:
o Ostrich Bay Extension
o East and West Bremerton UGA Sewerage—ULID Development
All of these projects wou�d be financed by a combination of user fess assessments,grants, and/or
utility LIDs.
Stormwater.One project(Cost: up to$600,000).The Gorst Creek Watershed Capical Improvemenc Plan
lists the need for a Flood Cause Study to evaluate flooding within the UGA.The plan estimated the cost
of the study at$600,000 and designated the City of Bremerton as responsible for funding. Listed
revenue sources for this Flood Cause Study include the stormwater fund and grants.There were no
other short-term stormwater capital facility projects identified in the remaining PAAs.
Transportation: (Cost:TBD).There were no short-term capital impacts related to transportation for
annexation.
Water. (Cost: None).There were no short-term capital impacts related to water capital facilities for
annexation.
Short-term Capital Revenues
The City of Bremerton's capital projects are primarily funded by the Capital Improvement Funds,except
for capital projects undertaken by the City's enterprise funds.Those capital projects are generally
funded by the enterprise funds themselves.
The City manages four capital improvement funds—general capital improvements, park facilities
construction,Washington Avenue connector,and Lower Wheaton Way.The largest funding sources for
Washington Avenue connector and Lower Wheaton Way are grants,which are not expected to be
impacted by annexation.The remaining capital funds are primarily supported by the Real Estate Excise
Tax(REET).This section describes how the annexation would generate additional REET revenues.
Real Estate Excise Tax. REET is levied on all sales of real estate, both commercial and residential,that
occur within City boundaries.The City collects REET at a 0.5%tax rate based on the transaction price of
the sale.
To estimate REET revenues,this analysis makes assumptions about the turnover rate of properties
within the PAAs.The current rate of real estate sales is still slightly lower than historical averages due to
the recovery from the recession.To be conservative,this analysis assumes a turnover rate of 4.0%for
residential properties and 2.5%for commercial properties through 2015,and then a return to a more
typical rate of 5.0%for residentia�properties and 3.5%for commercial properties for 2016 and beyond.
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These assumptions result in the following REET revenue impacts from the PAAs:
• In the near term, 2016-2020, the City is estimated to receive a total of approximately $675,000 in
REET revenues from the PAAs,or an average of about$135,000 per year.This is based on turnover of
existing property as well as sales of new development.
• This compares to approximately $400,000 in City's REET revenue per year, which are expected to
increase as the economy recovers and development returns to a more typical pace.
The City has additional revenue sources, besides REET,that can be used for capital funding.These
include the Motor Vehicle Fuel Tax and the Commercial Parking Tax. However,given current pressures
on operations through the general and street funds, it may be difficult for the City to reallocate
significant portions of these funds to capital expenditures in the short-term.
FINAL DRAFf� July 10,2015
� � � . . � � , � �
5.1 LONG-TERM OPERATING IMPACTS
Over the long run, it is estimated that revenues generated by activity in the PAAs will be higher than
costs and staffing needs generated by the areas.These general long-term fiscal impacts of annexation
mirror the short-term findings,as shown in Exhibit 3.This will result in a positive annual impact to the
City of Bremerton's operations budget resulting from annexation.
However,as with any long-term financial analysis,there are risks inherent in some of the revenue and
cost analysis that could arise.A few issues that could substantially change the long-term outlook
include:
Development Assumptions.The development assumptions included in the model drive nearly all of the
cost and revenue findings presented above.Very few impacts are generated simply by the geography of
the annexation, rather they are generated by the people and businesses that choose to live and operate
there.Therefore,there would be risk if the PAAs did not develop as quickly as planned.
The risk is primarily that the PAAs would not have as large of a fiscal benefit to the City. Given the
moderate current population and the low level of service need,a lower development rate would result
in both lower costs and revenues, resulting in a minor and possible negligible fiscal benefit if
development did not occur.
Fire Service Needs.The short term impacts of annexing Gorst UGA are to be addressed through a
contract with South Kitsap Fire&Rescue. However in the long term,the City would need to look at
providing these services directly. In that case,the City would need a fire station (of which there is one
currently in Gorst), an engine/paramedic unit,and 6-12 FTE's to provide fire service.
5.2 LONG-TERM CAPITAL IMPACTS
Over the remainder of the study period,there are additional capital facility needs particularly for parks,
sewer,stormwater,and transportation facilities. Responsibility for these projects is divided between the
City of Bremerton, Kitsap County,Washington Department of Transportation (WSDOT),and private
property owners via local utility LIDs.
All Capital Facility Needs
The scope of this analysis does not include a new examination of all PAAs' capital facility needs. Instead
this section focuses on compiling and describing the capital needs identified in recent capital facility
needs analyses including:
• City of Bremerton, Bremerton Annexation of Gorst UGA Memo, 2014
• City of Bremerton, Gorst Creek Watershed Stormwater Capital Improvement Plan,2013
• City of Bremerton,Gorst Planned Action Environmental Impact Statement,2013
• City of Bremerton,White Paper: Rock Point Assumption Issues, 2014
• Bremerton Department of Public Works and Utilities,Capital Improvement Program Overview, 2014
• Bremerton Department of Public Works and Utilities,Water System Plan Update, 2012
FINAL DRAFT� July 10,2015
CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON UGA ANNEXATION
• Bremerton Department of Public Works and Utilities,Wastewater Comprehensive Plan Update,
2014
• Bremerton Parks Department, Parks, Recreation&Open Space Plan,2014
• Kitsap County, UGA Sizing&Composition Remand Final Capital Facilities Plan Update,2012
• Kitsap County Parks, Recreation&Open Space Plan, 2012
• Kitsap County Public Works, Navy Yard City Sewer CFP 2015-2020
• Kitsap County Public Works,Sewer Utility Six-Year Capital Facilities Plan 2014-2019
• Kitsap County Public Works,Solid Waste Division Six-Year Capital Facilities Plan 2014-2019
• Kitsap County Public Works,Surface and Stormwater Plan Six-Year Capital Facilities Plan 2014-2019
• Kitsap County Public Works,Transportation Six-Year Improvement Program 2015-2020
City of Bremerton Responsibilities
Funding sources for the identified long-term capital facility projects varies by project type and include
the City of Bremerton, Kitsap County,WSDOT,grants,and local utility LIDs. For purposes of this analysis,
capital facility projects financed by user fee assessments(UFA)were classified as City of Bremerton
projects.
Overall,after the year 2020 there are 32 projected separate capital facility projects located across the
PAAs totaling$51.3 million. Exhibit 7 provides a high level summary of tong-term capital facility costs by
jurisdictional funding source with an estimated$33.8 million worth of capital facility projects to be
funded by the City of Bremerton.
As shown in detail in Exhibit 8,there are multiple long-term capital facility projects whose funding
sources are either undetermined or potentially shared.As a result,a conservative approach was taken
whereby projects that either have full, potential, or undetermined City funding ownership were listed as
City of Bremerton projects. A brief discussion of long-term capital facility projects by facility type is
provided below.
Exhibit 7 Long•term Capital Facility Projects by Jurisdiction
City County County/State State Total
Fire TBD - - - $ -
Parks TBD - - - $ -
Police - - - - $ -
Sewer $ 31,890,000 - - - $ 31,890,000
Stormwater $ 1,858,000 - $ 456,000 $ 3,224,000 $ 5,538,000
Transportation TBD $ 12,804,000 - - $ 12,804,000
Water - - $ 1,100,000 - $ 1,100,000
Total $ 33,748,000 $ 12,804,000 $ 1,556,000 $ 3,224,000 $ 51,332,000
Source: Kitsap County/City of Bremerton Gorst Creek Watershed Stormwater Capital Improvement Plan,2013;
City of Bremerton Wastewater Comprehensive Plan Update,2014;City of Bremerton Parks,Recreation&Open Space
Plan,2014;Kitsap County Public Works Transportation Six-Year Improvement Program 2015-2020;City of Bremerton
Wastewater Comprehensive Plan Update,2014.
FINAL ORAFT� July 10,2015
CITY OF BREMERTON
FISCAL IMPACTS Of WEST BREMERTON UGA ANNEXATION
Fire. New fire station and equipment(Cost:TBD). Upon annexation,the South Kitsap Fire& Rescue
district would provide support services including equipment to the Gorst UGA.Over the long-term the
City would assume fire service to this area requiring a fire station and the purchase of related
equipment(e.g.fire engine, paramedic unit).The estimate for these costs are undetermined but would
be needed as part of long-term capital facilities planning for the City.
Police. (Cost: None).There were no long-term capital impacts related to Police services for annexation
identified.
Parks.Seven additional neighborhood parks totaling 10.5 acres in size (Cost:TBD).To meet Level of
Service standards established by the City a neighborhood class level park is required to be within %:mile
pedestrian distance of all residences. Based on the land area included in the PAAs and the locations of
existing neighborhood and community parks,the analysis estimates there would need to be seven new
neighborhood parks created to meet established LOS requirements within the newly annexed areas. The
LOS park analysis excludes both Pendergast Park Regional Park in Navy Yard City and Harborside
Fountain Park in Bremerton. Using a minimum of 1.5 acres per new neighborhood park,an additional
seven new parks would translate into a minimum of 10.5 acres of new park lands that would need to be
purchased in the annexed areas.The estimated cost of purchasing new park lands is outside the scope
of this analysis and remains undetermined.
� FINAL DRAFT � July 10,2015
CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON UGA ANNEXATION
Exhibit 8.Long-term Capital Facility Projects by Capital Facility Type
Capital Facility Funding
UGA Projeds Costs Year
Type Source3
Fire All Fire station;engine/paramedic unit TBD >2020 TBD
Parksl All 7 Additional neighborhood parks(10.5 acres) TBD >2020 TBD
Police All None $0 >2020 -
Sewer Navy Yard City Replace Crosstown Pipeline(1kC-3) $8,600,000 >2020 UFA
Sewer Navy Yard City SR 304 Sewer Collection(#NS-3) $4,280,000 >2020 UFA/G
Sewer Rocky Point Pump Station MD-2(#NS-2B) $4,730,000 >2020 UFA/G
Sewer Rocky Point Pump Station MD-3(#NS-2C) $2,830,000 >2020 UFA/G
Sewer Rocky Point Sewer Collection-Sub Basin MD-1(ttNS-lA) $2,550,000 >2020 UFA/G
Sewer Rocky Point Sewer Collection-Sub Basin MD-2(#NS-1B) $1,320,000 >2020 UFA/G
Sewer Rocky Point Sewer Collection-Sub Basin RP-1(#NS-2D) $1,220,000 >2020 UFA/G
Sewer Rocky Point Sewer Collection-Sub Basin RP-2(t#NS-2E) $2,180,000 >2020 UFA/G
Sewer Rocky Point Sewer Collection-Sub Basin RP-4(#NS-2G) $820,000 >2020 UFA/G
Sewer Rocky Point Sewer Collection-Sub Basin RP-5(#NS-2H) $1,910,000 >2020 UFA/G
Sewer West Hills North Extension(#NS-4B) $1,450,000 >2020 UFA/G
Stormwater All NPDES Upgrades TBD >2020 TBD
Stormwater Gorst Gorst Creek floodplain flooding $15,000 >2020 TBD
Stormwater Gorst Highway flooding from two creeks $3,224,000 >2020 WSDOT
Stormwater Gorst Hiliside seepage&stream overbank flooding $99,000 >2020 TBD
Stormwater Gorst Private storm sewer piping creating sink hole&fish
passage barrier $456,000 >2020 County/State
Stormwater Gorst Roadway undermining and culvert clogging $13,000 >2020 UFA/G
Stormwater Gorst Storm drain piping&smk hole $216,000 >2020 TBD
Stormwater Gorst Stream overtopping $1,049,000 >2020 TBD
Stormwater Gorst Upstream Culvert 12 inlet flooding and fish
passage,Map ID#111010 $Z92�000 >2020 TBD
Stormwater Gorst Water quality concerns with yard flooding $0 >2020 -
Stormwater Gorst Water quality with private pond $0 >2020 -
Stormwater Gorst WSDOT Hwy 3 flooding $174,000 >2020 TBD
Transportationz All Possible bike improvements TBD >2020 TBD
Transportation All Possible pedestrian Improvements TBD >2020 TBD
Transportation Gorst Belfair Widening to 4 lanes-Bremerton City Limits
to Sam Christopherson Ave. $Z�8zz�000 >2020 County
Transportation Gorst Belfair Widening to 4 lanes-Mason County Line to
Bremerton City Limits $9�98Z�000 >2020 County
Transportation Gorst Poss�ble Intersection improvements-Sherman TBD >2020 TBD
Heights Road
Water All None $1,100,000 >2020 County/State
Total $51,332,000
1 This table does not include costs of upgreding the UGAs'current transportation infrastructure to an urban standard
2 These parks were identified as part of the long-term annexation analysis,and are not identified in any exist�ng City or County capital
documents
3 UFA=User Fee Assessment;G=Grants&LID
Source: Kitsap County/City of Bremerton Gorst Creek Watershed Stormwater Capital Improvement Plan,2013;
City of Bremerton Wastewater Comprehensive Plan Update,2014;City of Bremerton Parks,Recreation&Open Space
Plan,2014;Kitsap County Public Works Transportation Six-Year Improvement Program 2015-2020;City of Bremerton
Wastewater Comprehensive Plan Update,2014.
FINAL DRAFT �July 10,2015
CITY OF BREMERTON
FISCAL IMPACTS OF WEST BREMERTON UGA ANNEXATION
Sewer. One to eleven projects (Cost: up to $31.9 million). A total of 11 long-term sewer capital facility
projects have been identified that would be fully or partially located within the PAA areas. All of the 11
long-term sewer projects identified are listed in the 2014 City of Bremerron Wostewater Comprehensive
Plan Update.The four PAAs differ in their estimated impacts to sewer capital facilities:
• Gorst. (Cost: None). No long-term sewer capital improvements have been identified for Gorst.
• Navy Yard City. (Cost: Up to$12.9 million).Two long-term sewer capital improvement projects have
been identified.The first is the Replace Crosstown Pipeline project to be financed by user fee
assessments.The second is the SR 304 Sewer Collection project and it would be financed by a
combination of user fess assessments,grants, and/or utility LIDs.
• Rotky Point. (Cost: up to$17.6 million).A total of eight long-term capital improvement projects
have been identified.These include two pump station projects(Pump Station MD-2 and MD-3)and
six sub-basin sewer collection projects(Sub Basin MD-1, MD-2, RP-1, RP-2, RP-4,and RP-5).All
projects would be financed by combination of user fess assessments,grants,and/or utility LIDs.
• West Hills. (Cost: up to$1.5 million).One project has been identified—the North Extension project.
This project would be financed by combination of user fess assessments,grants,and/or utility LIDs.
Stormwater. (Cost: up to$1.86 million).The majority of long-term stormwater projects identified are
within the Gorst annexation area.Additional NPDES related stormwater projects are anticipated across
all PAAs(see Exhibit 9).
• All PAAs. It is anticipated that the NPDES regulatory framework adopted by the City of Bremerton
would facilitate the planning and building of new stormwater structures within any one or all of the
PAAs.To date, no NPDES related capital improvement projects have been identified nor funding
sources identified. However, upon annexation, NPDES related projects may add costs and/or
impacts to stormwater capital facility planning over the long-term.
• Gorst. Between one to seven projects (Cost: up to $1.86 million). The Gorst Creek Watershed Plan
identifies 35 different sites within the watershed that need stormwater improvements. Of these
identified projects, 11 are within the Gorst UGA.These projects are shown in Exhibit 9 below.
Exhibit 9
Long-term Stormwater Capital Facility Needs for the Gorst UGA(2018-2035)
Projects Costs Designated Responsibility
WSDOT Hwy 3 flooding $174,000 City
Hillside seepage&stream overbank flooding $99,000 City
Storm drain piping&sink hole $216,000 City
Highway flooding from two creeks $3,224,000 WSDOT
Stream overtopping $1,049,000 City
Gorst Creek floodplain flooding $15,000 City
Roadway undermining and culvert clogging $13,000 City
Private storm sewer pipmg creating sink hole&fish passage barrier $456,000 Non-city,County,State
Upstream Culvert 12 inlet flooding and fish passage,Map ID q111010 $292,000 City
Water quality concerns with yard flooding $0 -
Water quality with private pond $0 -
Total $5,538,000
Source:Kitsap County/City of Bremerton Gorst Creek Watershed Stormwater Capital Improvement Plan,2013.
FINAL DRAFT � July 10,2015
CITY OF BREMERTON
FISCAL IMPARS OF WEST BREMERTON UGA ANNEXATION
The plan provides initial cost estimates for these projects and lists the entity designated responsible
for each project.Of the 11 projects in the Gorst UGA,7 are designated the responsibility of the City
of Bremerton.These seven projects total$1.86 million. Responsibility for stormwater projects is
based on the Gorst Creek Watershed Stormwater Capital Improvement Plan Technical Memorandum
completed in September, 2013.
Discussions with the City of Bremerton Public Works Department indicate that they believe the City
is only responsible for projects in the public right-of-way,which is just one project totaling$13,000.
There are also three sites where the responsibility is uncertain.These uncertain projects' costs total
$771,000.As a result, potential long-term stormwater capital costs vary widely based on how
responsibility is ultimately assigned.
To be conservative,the City may want to assume the maximum of$1.86 million when considering
the full impacts of annexation. Once Gorst residents begin paying into the City's stormwater fund,
the City may be expected to partner on drainage issues on both public and private party.
Transportation. (Cost:TBD). Future transportation infrastructure capital investments will be necessary
to achieve a modern urban standard.The City should consider long-term planning around upgrading the
UGAs'current transportation infrastructure to an urban standard which may include adding sidewalks,
curbs,gutters, bike paths,and storm drain systems.These improvements could be phased over time as
the City identifies specific needs and revenue sources.
Water. (Cost: Up to$1.1 million). Currently,the City's Water Utility provides drinking water to the Gorst,
Navy Yard City,and West Hills annexation areas as part of the Bremerton Service Area.The City also
ultimately supplies drinking water to the Rocky Point annexation area but its relationship to Rocky Point
remains unique. .
In particular,although Rocky Point conveyed its water system infrastructure to the City in 1952,the area
has maintained its own special purpose water district with elected three-person board of
commissioners,with responsibilities for administration, planning, and capital improvements.This
structure currently results in redundant costs for Rocky Point residents. Upon annexation the City would
likely enter into negotiations with the Rocky Point Water District for potential inclusion within the City of
Bremerton water utility. Prior to assumption by the City,should that occur,a fair amount of
improvements may need to be completed within the Rocky Point Water District financed by non-City
funding sources.These improvements have an estimated cost of approximately$1.1 million.
FINAL DRAFT � July 10,2015
� � � , � , � � � � � ' � � � 1 1
Exhibit A- 1 shows the future land use map for the Gorst UGA under the Preferred Alternative.
Exhibit A-1
Gorst UGA Preferred Alternative Future Land Use Map
PREFERRED ALTERNATIVE: FUTURE LAND USE MAP
,�
3
Cti0
i
��UGA Bounda:y
❑Crt,lmuis
Preferced Alternative Land Use
t !
■Carn�Arnal Candor
� ��US(I1�I
16 Gerst M�Ked Use
'". fvd�hborhoal Mi..td U:s
r U
�C'N�II:^_�lal(y�V��RP.Lj�ffP.
�OW Ini2n5![Y W&2fff01i
� Gorst Creeh Residential
�Open SpncdRecre�ion
' P�ait F.7��ierai resewu,:r.r,tmr.tien may ca�tmu^In n.,r term. � 0 •^,I 0.2 �
�� nur nn.mer:G:� •.Nnte�'f tns zaie is simila�to Low In�rnsily Wnteriratt,euczSN Ih.'M ieciAe�dinl cicvelp�meni�s ntlov.td. � I� � � �
� S.us. :.�:v�C,�:-r�.FI:PR F,4ii.w
Source:City of Bremerton,2014.
FINAL DRAFT� July 10,2015
Fiscal Analysis of West Bremerton
and Gorst UGA Annexation
City of Bremerton
City Council Study Session � July 22, 2015
Bremerton City Council � July
22, 2015 Fiscal Analysis of Annexation 1
• � �
Study Purpose a_n � g
,
ac roun
• A roach �verview � � �
pp .
• Summar �af Ke Findings .
Y Y
, ,
� Key Short-ter. m Operat�ng Impacts � ,
• Long-term ,O;perating Considerations ,
� Key Short-term Capital Imp�acts � .
� � * Long-term Capital Considerations
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 2
Stud Pur ose
y p
• Follow on to 2014 Gorst Study -
* This analysis assesses the fiscal implications of the
City of Bremerton annexing Navy Yard City, Rocky
Point� West Hills, and Gorst Urban Growth Areas
�UGAs�.
� Planning-level estimates of specific incremental fiscal
impacts — costs and revenues — of annexation �
• In the first five years
• Next 20 yea rs
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 3
i
Stud Pur ose & Back round
y p g
2014 2031 � Urban Growth Areas for Analysis �`'�"� �N
;Na _ Yard Cit August 2014 -
-- W Y.--�---— -- � `r__�...� /
Housing Units 1,332 1,611 `-f ��!�y � �
;° .
Population 2,613 3,294 `!�:'��"�' � � � � Rocky
Est. Employment___ 374 974 '� -��� , i Polnt �� �
,^.--.---..--- _...��__.__._.____._..___.._.�_..__.._----...___..__..___. -- , , �
,�,.., � � J
�Rocky Point ' 1
�..------------------------- � - —------- \ ;�I j�;
Housing Units 734 990 '��J �� -•� � ►---..
Population 1,557 2,201 t� �
_Es t_ E m p l o y men t-----...-------------------�--- -----�..—_ (��-\,.�
r-----� -
lWest Hills Island ��-�
-------.__....--�-------..—_.._-�------..---._.__..---�--------------.------
Housing Units 209 387 � west ;.{
Population 480 927
��_ Hills , �
Navy
Est. Empl oyment_` __ 15_______ 15 _ L'� ; Yard � r�
,----�---------- - ��� b ��
�Gorst_..___------------._..--------- ----
Housing Units 106 520 .f"
Population 222 1,040 ,
.
Est. Empl oyment __ 237 428 `(�
�---,
— ------ .._..--------------_.____.—-- �- � -
�--------- ------ ��
�Total All Potential Annexation Areas � ,•,-
----------------�----------------- ---�-- --- �� ..,�1 .
Housing Units 2,381 3,508 r � r����f
Population 4,872 7,462 � �i�:--- D�,�o,B,�merto� :
Gorst
Est. Empl oyment 628 1,419 � a�n L�; � ^�. ��T'�., �Urban GrowthArea .
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 4
• High-Level Planning Analysis. A financial planning study
intended to provide a reasonable estimate of potential costs
and revenues associated with annexation.
• Incremental Impacts of Annexation. Estimates potential
impacts by comparing the City's fiscal outlook as:
o ( 1 ) The current City with boundaries unchanged.
c� (2� A larger version of the City that includes annexation of Gorst.
• Operating and Capital Impacts. Estimates operating impacts
and capital impacts separately.
Q Estimated operating impacts are based on modeled changes in the
underlying land base �such as changes in population or assessed value),
supplemented with City staff interviews.
� Estimated capital impacts are based on adopted capital plans and
interviews with City and County staff.
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 5
The analysis was conducted using a flexible, assumption-
driven fiscal model.
� In the annexation model, factors in the land base (such as
population, employment, and commercial activity) drive both
demand for services and the tax base to support services.
• Model findings were supplemented with interviews with all
City department heads.
While this was not a fund-based study, the analysis
focuses on the City's General and Street Funds. It is
based on 2014 budget.
Bremerton City Council � luly 22, 2015 Fiscal Analysis of Annexation 6
Estimated 20-year Net Fiscal Impact of Annexation
2017 2020 2032
Core Expenditures 2,408,000 3,179,000 6,080,000
Core Revenues 2,215,000 3,715,000 6,336,000
FTEs from Annexation 13.5 15.0 18.9
Net Resources (000's) 193,000 536,000 256,000
Deficit/Surplus as %of Expenditures -8% 17% 4%
� Annexation is estimated to have a slight negative short-term
operating impact on the City
� Assumes property tax and sales tax revenue sharing with Kitsap County
�� The City may need to hire some staff before full revenue impacts are
rea I ized
� In the long-term, annexation is likely to bring moderate positive
annual operating benefit
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 7
If the City were to sign a revenue sharing agreement with Kitsap
County to mitigate the impacts of annexation on the County's finances:
• Sales Tax. City would receive 25% of sales tax revenues generated in UGAs in 2016, 50% in 2017,
75% in 2018, and 100% of revenues thereafter.
• Property Tax. City would receive 25% of sales tax revenues generated in UGAs in 2014, 50% in
2016, 75°lo in 2017, and 100% of revenues thereafter.
Estimated 5-Year Operating Revenues from Annexation
• .- � � � � � �
Revenues not assuming any revenue sharing
Sales Tax . 629,000 665,000 698,000 735,000 777,000
Property Tax/Road Levy 0 1,088,000 1,128,000 1,168,000 1,209,000
UtilityTaxes/PILOT 296,000 312,000 330,000 347,000 368,000
EMS Levy 0 191,000 192,000 192,000 193,000
B&O Tax 0 0 0 329,000 329,000
All Other Revenue 713,000 743,000 775,000 804,000 839,000
Total 1,638,000 2,999,000 3,123,000 3,575,000 3,715,000
Potential Impacts of Revenue Sharing �
Loss in Sales Tax Revenue (472,000) (333,000) (174,000) 0 0
Loss in PropertyTax Revenue 0 (451,000) (312,000) (161,000) 0
Total After Revenue Sharing 1,166,000 2,215,000 2,637,000 3,414,000 3,715,000
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 8
Sales Tax
� Taxable retail sales are assumed to increase by 0.5% per year higher than the general
inflation rate of 3.0% used in this analysis.
Property Tax
• The base assessed value in the City and annexation areas is expected to increase at a rate of
2% (0.5% below inflation).
Utility Taxes and PfLOT
� Utility taxes for telephone, gas, cable, electricity, and garbage are assumed to grow based on
the combination of population and employment.
� Decrease in water utility revenues from customers in the UGAs, who currently pay a 50%
surcharge, but increase in stormwater PILOT revenues.
Business & Occupation Tax
• Exemption for business in the UGAs for first three years after annexation.
• City of Bremerton is slowly reducing its dependency on B&O taxes: B&O revenues for both the
City and the annexation areas are projected to stay at current levels throughout the timeframe
of this analysis, effectively reducing the real value over time.
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 9
Annexation Staffing and Cost Impacts, 2020
. - . . . . ioio
•. • �- •. FTEs Annual Cost*
City Council - -
Mayor/Auditor - -
• 2020 presents a snapshot of the
Finance/Human Resources 1.50 191,000 short-term impact of annexation,
Engi neeri ng - - .
LawEnforcement 6.50 1,055,000 once the departments have hired
Fire 3.00 9�0,00o up to their full short-term need.
Municipal Court - 37,000
Community Development 1.50 207,000 * Prior to 2020, the exact impact
Parks o.so sa,000 in any one year will depend
Streets/Public Works 2.00 518,000
�ega, - - greatly on how the City chooses
Non-departmental - 117,000 to ramp up its hiring.
TOTAL 15.00 3,179,000
*The annual cost includes staffing costs as well as
non-labor costs such as contracts and equipment
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 10
Police
• Annexing all four PAAs would trigger the need for a new patrol area to serve with the same
response times
• 6.0 FTEs to provide full-day patrol service + 0.5 FTE Community Resource Specialist
Fire
• Gorsf. Contract with South Kitsap Fire and Rescue (SKFR); service based on SKFR's levy rate.
• Rocky Point. Served by SKFR. City already re5ponds, no additional impact.
� West Hills. Served by Central Kitsap Fire and Rescue. Small area, no additional impact.
• Navy Yard City. Currently served by SKFR; generates high volumes of calls for service. 2
additional FTEs.
• 1 FTE for fire inspection services.
Streets Maintenance
� 2.0 FTE to support street maintenance (Costs will include labor costs for FTE and non-labor
maintenance costs)
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 1 1
Parks Maintenance and Recreation
• Parks L�S requires a neighborhood park to be within '/a mile pedestrian di5tance of all
residences: minimum of 10.5 acres of new park area in the annexed areas
• 0.25 FTE laborer, with associated non-labor costs
� 0.25 FTE of recreational staff to support new residentiai u5ers
Community Development
• 1 .5 FTE Building Development Specialist 11 (building inspector and plan reviewer)
Finance
• 1 .0 FTE Accounting Assistant II beginning in 2017
• 0.5 FTE additional payroll specialists
Municipal Court
* Increase in contract cost for public defender services
• Increase in the contracted number of hours with the Court Commissioner
� Total cost impact of annexation �$37,000 in 2020
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 1 2
Lon -term Considerations for
g
O eratin Im acts
_ __ _ p C� � _ _ ______
Development Assumptions
� Fiscal benefit is dependent on estimated development rate.
� A lower development rate would result in both lower costs and revenues, resulting in a minor
and possibly negligible fiscal benefit.
Fire Service Needs
�� As Gorst continues to develop, there may be a future need for direct fire services.
° City would need a fire station (there is one currently in Gorst), an engine/paramedic unit, and
6-12 FTEs to provide fire service.
Bremerton City Council � luly 22, 2015 Fiscal Analysis of Annexation 1 3
Approach �
• For both short-term and tong-term capital impacts, existing City and County capital plans
were reviewed and augmented with additional information obtained from interviews with
City staff and departments.
• Planned capital facility projects either partially or fully funded by UFA (User Fee
Assessments) were categorized as City of Bremerton projects.
Shart-term Capital Projects
• In the short-term (2016-2020), an estimated total of up to $15.9 million in short-term
capital facility projects have been identified and would be funded by the City.
• Up to $15.3 million for Sewer capital projects have been identified.
• Up to $600,000 for a Stormwater project in Gorst has been identified.
• In the short-term, no capital impacts were identified for Fire, Police, Parks, Transportation,
or Water.
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 14
S h o rt-te r m C a i ta I I m a cts
i� p
List of Planned Short-terrn Capital Projects (2016 - 2020)
..
. - . . .
.-
Sewer Navy Yard City Navy Yard City I& I Collection System Improvements(#4107001) $2,650,000 2015-2016 Kitsap County
Sewer Rocky Point Phinney Bay Extension (Sub Basin RP-3)(#NS-2A) $1,960,000 2016-2017 UFA/G
Sewer Navy Yard City, Rocky Point,West Hills,et al East&West Brem UGA Sewerage-ULID Development(#NS-1-NS-8) $4,050,000 2016-2018 UFA/G
Sewer Rocky Point Jackson to Corbet Drive(Sub Basin RP-3)(#NS-2F) $830,000 2017-2018 UFA/G
Sewer West Hills Ostrich Bay Extension(#NS-4A) , $3,720,000 2018-2020 UFA/G
Sewer Rocky Point Sewer Collection-Sub Basin RP-5 (#NS-2H) $1,910,000 2018-2020 UFA/G
Sewer Navy Yard City Westside WWTP Outfall (#C-11) $2,650,000 2019-2020 UFA
Sewer Navy Yard City,Gorst Grout Annular Space of SW Bremerton Force Main(tkC-18) $200,000 2020 UFA
Stormwater Gorst Gorst Creek Watershed Flood Cause Study $600,000 <2020 UFA/G
Total $18,570,000
1 UFA=User Fee Assessment:G=Grants&LID
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 15
Capital Revenues ,
• The City manages four capital improvement funds �
� General Government Capital Improvements
• Park Facilities Construction
� Washington Avenue Construction
• Lower Wheaton Way
• The largest funding sources for Washington Avenue Construction and Lower Wheaton
Way are grants, which are not expected to be impacted by annexation.
• The remaining capital funds are primarily supported by the Real Estate Excise Tax
(REET).
* In the short-term, 2016-2020, the City is estimated to receive approximately $675,000 in
REET revenues from the UGAs, or an average of about $135,000 per year. �
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 16
Approach
• For both short-term and long-term capital impacts, existing City and County capital plans
were reviewed and augmented with additional information obtained from interviews with
City staff and departments.
• Planned capital facility projects either partially or fully funded by UFA (User Fee
Assessments) were categorized as City of Bremerton projects.
• Projects with undetermined funding sources were also categorized as potential of City of
Bremerton projects so as to better mitigate underestimating of potential impacts.
Summary
• tn the long-term (post 2024}, there are 32 projected separate capital facility projects
located across the PAAs totaling up $51 .3 million. Of this amount, an estimated $33.7
million could potentially be funded by the City.
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 17
Lon -term Ca ita I Im acts
g p p
Long-term Capital Facility Projeets by Potential Funding Jurisdiction
. . .
Fire TBD - - - $ -
Parks TBD - - - $ -
Police - - - - $ -
Sewer $ 31,890,000 - - - $ 31,890,000
Stormwater $ 1,858,000 - $ 456,000 $ 3,224,000 $ 5,538,000
Transportation TBD $ 12,804,000 - - $ 12,804,000
Water - - $ 1,100,000 - $ 1,100,000
Total $ 33,748,000 $ 12,804,000 $ 1,556,000 $ 3,224,000 $ 51,332,000
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 18
Fire: (Cost TBD)
• Over the long-term, the City would assume fire service and support for the Gorst UGA.
The cost of a new fire station and equipment to support expected growth in this area is
TBD.
Potice: (Cost N/A)
• There were no long-term capital impacts related to annexation for Police services.
Parks; (Cost TBD)
• To meet existing park Level of Service standards an estimated seven new neighborhood
parks totaling 10.5 acres in size would need to be created.
• The estimated cost of purchasing new park lands is to be determined based upon need
and timing of acquisition.
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 19
Transportation: (Cost TBD)
• Upgrading the PAAs' current transportation infrastructure to an urban standard should be
considered as part of overall capital facility planning.
• Upgrades may include adding sidewalks, curbs, gu#ters, bike paths, and storm drain
systems and could be phased over time as the City identifies specific needs and revenue
sources.
1Na#er: (Cost - Up to $ 1 .1 miilion)
• The City's Water Utility currently provides drinking water to the Gorst, Navy Yard City,
and West Hills annexation areas. The City also ultimately supplies drinking water to the
Rocky Point annexation area via the Rocky Point Water District.
• If the Rocky Point Water District were to be assumed by the City after annexation, a
number of improvements would need to be completed and financed via either County or
State funds. The estimated cost of improvements are approximately $1 .1 million.
Bremerton City Council � luly 22, 2015 Fiscal Analysis of Annexation 20
Si�o�mwrater: (Cost — Up to $1 .8b million) -
• The majority of long-term stormwater projects identified are within the Gorst PAA.
• Additional NPDES related stormwater projects are anticipated across all PAAs.
• If funding source undetermined, then treated as potential responsibility of City of
B remerton.
Long-term Stormwater Capital Facility Projects
. .
All NPDES Upgrades TBD >2020 TBD
Gorst Gorst Creek floodplam flooding $15,000 >2020 TBO
Gorst Highway flooding from two creeks $3,224,000 >2020 WSDOT
Gorst Hillside seepage&stream overbank flooding $99,000 >2020 TBD
Gorst Private storm sewer piping creating sink hole&fish
passage barner $456,000 >2020 County/State
Gorst Roadway undermining and culvert clogging $13,000 >2020 UFA/G
Gorst Storm drain piping&sink hole $216,000 >2020 TBD
Gorst Stream overtopping $1,049,000 >2020 TBD
Gorst Upstream Culvert 12 inlet flooding and fish
passage,Map ID#111010 $Z9Z�000 >2020 TBD
Gorst Water quality concerns with yard flooding $0 >2020 -
Gorst Water quality with pnvate pond $0 >2020 -
Gorst WSDOT Hwy 3 flooding $174,000 >2020 TBD
Total $5,538,000
1)UFA=User Fee Assessment;G=Grants&LID
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 21
5ewer: (Cost — Up to $31 .9 million)
• A total of 1 1 long-term sewer capital facility projects have been identified that are
partially or fully (ocated within the PAA areas.
• Atl long-term sewer projects are currently listed in the 2014 City of Bremerton Wastewater
Comprehensive Plan Update.
Long-term Sewer Capital Facility Projects
. - .
. .
.
Navy Yard City Replace Crosstown Pipeline(#C-3) $8,600,000 >2020 UFA
Navy Yard City SR 304 Sewer Collection (#NS-3) $4,280,000 >2020 UFA/G
Rocky Point Pump Station MD-2 (#NS-2B) $4,730,000 >2020 UFA/G
Rocky Point Pump Station MD-3 (#NS-2C) $2,830,000 >2020 UFA/G
Rocky Point Sewer Collection-Sub Basin MD-1 (#NS-1A) $2,550,000 >2020 UFA/G
Rocky Point Sewer Collection-Sub Basin MD-2 (#NS-iB) $1,320,000 >2020 UFA/G
Rocky Point Sewer Collection-Sub Basin RP-1 (#NS-2D) $1,220,000 >2020 UFA/G
Rocky Point Sewer Collection-Sub Basin RP-2 (#NS-2E) $2,180,000 >2020 UFA/G
Rocky Point Sewer Collection-Sub Basin RP-4 (#NS-2G) $820,000 >2020 UFA/G
Rocky Point Sewer Collection-Sub Basin RP-5 (#NS-2H) $1,910,000 >2020 UFA/G
West Hills North Extension(#NS-46) $1,450,000 >2020 UFA/G
Total $31,890,000
1)UFA=User Fee Assessment;G=Grents&LID
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 22
' Qperat�ng imp�t�cts:
� Annexation is estimated to have a slight negative short-term operating impact
on the City (assumes property tax and safes tax _revenue sharing with Kitsap
County�.
• In the iong-term, annexation is likely to bring moderate positive annual
operating benefit.
• As Gorst continues to develop, there may be a future need for direct fire
services. City would need a fire station (there is one currently in Gorst�, an
engine/paramedic unit, and 6-12 FTEs to provide fire service.
� �a pita � �mpacfis: _
• In the short-term (201 b-2020), an estimated total of up to $15.9 million (up to
$ 15.3 million for Sewer, up to $600,000 for Stormwater).
* In the long-term (post 202�), there are 32 projected separate capital facility
projects located across the PAAs totaling up $51 .3 million. Of this amount, an
estimated $33.7 million could potentially be funded by the City.
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 23
Estimated 2oi7 2020 2032
Z�-yetfr Net Core Expenditures 2,408,000 3,179,000 6,080,000
Fistal Core Revenues 2,215,000 3,715,000 6,336,000
Imppct of FTEs from Annexation 13.5 I5.0 18.9
Annexati0n Net Resources(000's) 193,000 536,000 256,000
Deficit/Surplus as°rb of Ex enditures -8i6 17°i6 4%
List of Planned Sewer RakyPofnt PhinneyBayExtension(SubBasinRP-3)(md5-2A) 51,960,000 2016-2017
Sewer Navy Yard City,Rocky Point,West Hllls,et al East&West Brem UGA Sewerage-UUD Development(t7N5-1-NS-8) 54,050,000 2016-2018
Short-term Sewer RxkyPdnt Jadcson[oCorbetDrive(SubBasinRP-3)�fftd5-2F) 5830A� 2017-2018
sewer west H�ns Ostrich Bey Extension(pN5-0A) 53,�zo,000 zois-zozo Potential City
Capital Projectss�y� RakyDant SewerCollecGon-SubBaSinRP-5(ANS-2H) si,91o,aoo Zois-zoio Responsibility:
(2016 — 2020) s�� NaW YardCi[y Westside WWTP Outfall(iGC-11) s2.eso,oao zoi9-zozo $15,900,000
Seur� Navy Yard City,Gorst Grout Annular Space of SW Bremerton Force Matn(RC-18) 5200,000 2020
Stormwat�Gors[ Gorst Creek Wat�shed Flood Cause Study $600A� <2020
Tatal 538�70,000
Navy Yard Gry Replace Gosstown Pipeline(NC-3) $8,600,000 all NVDES upgrades TBD
L�fl te r m Navy Yard Gty SR 304 Sewer Collection(pN5-3) $4,280,000 Gorst Gorst Geek 1loodplaln tlooding 515,000
9 Lon term Gorst Highwayfloodingfromtwoaeeks $3,224,000
Rocky Point Pump Station MD-2�IiNS-2B) $4,730A00 � Gorst Hillside seepage&stream overbank(looding 599,000
Sewer Rocky Point Pump 5[ation MD-3�ItNS-2C) $2,830,000 $tor mwater Gorst Private storm sewer piping creatir�sink hote&fish �56,�
CQ1 fQ I Rocky Point Sewer Collection-Sub Basin MD-1(NNS-lA) $2,550,000 � passage barrier
p Rotky Point Sewer ColleRion-Sub Basin MD-2(NNS-1B) $1,320,000 �;Q�f�td I Gorst Roadway underrnimng aid a�lvert clogging 573,000
Rocky Point Sewer Collection-Sub Basin RP-1(qN5-2D) 51,220,000 � Gorst Storm drain pipe�g&s�nk hole 5216,000
F���'��Y RockyPoint SewerCollectan-SubBasinRP-2(qN5-2E) 52.180,000 FdCl�1ty Gorst 5treamovertopping S1,oa9,00D
Gorst Upstream CulveA 12 inlet flooding and lish
Rocky Point Sewer Collection-Sub Basin RP-0(NNS-2G) $820,000 $292,OOo
Proieets Pro ects passage,MapIDH11]OSO
Rocky Point Sewer Collection-Sub Basin RP-5(HNS-2H) $1,910,000 � Gorst Water quality wnarns with yard Nooding 50
West Hills North Extension(MNS-48) $1,450,000 Gorst water qualirywith privatepond $o
Total $31,890,000 Gorst WSDO7 Hwy 3 fboding $174,000
Tot� $SS38,000
Potential City Responsibility: $31,890,000 Potential City Responsibility: $1,860,000
Bremerton City Council � July 22, 2015 Fiscal Analysis of Annexation 24
- INFORMATION ONLY ITEM
CITY OF BREMERTON
CITY COUNCIL
SUBJECT: Kitsap Homeless Housing Plan Study Session Date: 7/22/15
2015 Update Presenter: Kirsten Jewell, Housing
& Homelessness
Program Coordinator,
Kitsap County,
Department of Human
Services
Phone: 360-337-7286
SUMMARY: Kirsten Jewell will be presenting information on the Housing and Homelessness
Program in Kitsap County and the Kitsap Homeless Housing Plan, which is being updated during
2015. Input on priorities and local issues pertaining to homelessness is requested from Council
Members.
HANDOUTS: 1) Program Summary
2) Program Portfolio of Community Investments
STUDY SESSION AGENDA: ❑ No Presentation ❑x Full Presentation
Form Created 5/4/15
Housing and Homelessness Program
Kitsap County, Department of Human Services
July IS,2015
The Housing and Homelessness Program is a program under the Kitsap County Department of Human
Services. It works to:
1) make homelessness a rare, brief, and one-time occurrence in Kitsap County, and
2) ensure that affordable housing is accessible to all who need it.
The Program implements state legislation and local policies through systemic planning,facilitating
strategic investments of public funds, measuring and reporting on progress, and ensuring an effective
community response to these issues.
Back�round
For the last 10 years Washington State legislation has provided a dedicated grant funding source for
homeless programs and affordable housing through surcharge fees on real estate transactions recorded
at the Kitsap County Auditor's Office. The amount of funding available fluctuates with the housing
market and has been shrinking over the last few years due to the recession. (See Chart 1. Grant Funds
Available by Cycle at the end of this document.) This funding is split between:
• the state-administered Consolidated Homeless Grant, comprising about$300,000 annually for
Kitsap, distributed through contracts between the state and local social service providers; and
• the locally-administered Homeless Housing Grant Program (about$1.1M in 2015 and the
Affordable Housing Grant Program (about$225,000 in 2015), distributed through an annual
competitive grant program.
State legislation also requires:
• Strategic Planning: Staff works with stakeholders to develop and periodically update the Kitsap
Homeless Housing Plan,which outlines specific strategies and action steps to address
homelessness. It will be updated during 2015. All projects and programs that are funded
through the local grant programs must be consistent with the Homeless Housing Plan.
• Data Collection: All recipients of grant funds are required to collect data about the clients they
serve and enter in into a state-wide database, called the Homeless Management Information
System (HMIS). Staff analyses this data and reports on community performance measures for
addressing homelessness. Each county is also required to conduct an annual Point in Time Count
of people experiencing homelessness during a specific 24-hour period in January and report this
information to the state and federal government.
• Coordination: the Housing and Homelessness Program staff works closely with the Kitsap
Continuum of Care Coalition, a network of homeless housing and service providers,to ensure
that strategies to address homelessness are coordinated and reflect local, state, and federal
policies and practices. Staff also works with stakeholders on coordination of county-wide
projects.
Administration
Since its inception the Program has been administered by the Kitsap Regional Coordinating Council
through inter-local agreements with the cities and county (for the Affordable Housing Grant Program)
and by Kitsap County resolution (for the Homeless Housing Grant Program). In early 2015,the Regional
Council voted to move the program administration and decision-making to Kitsap County Human
Services and the Board of County Commissioners.
Allocation of Local Grant Funds
For the last four years the local Homeless Housing Grant Program and Affordable Housing Grant
Program have been part of the Kitsap Coordinated Grant Application Process (which also includes the
federal CDBG and HOME grant programs, described in a companion document). The process for
allocating these grant funds is as follows:
1. Periodically the Kitsap Homeless Housing Plan is updated, describing the scope of homelessness,
identifying specific needs in the community, and outlining strategies and activities to meet these
needs which are eligible for grant funding. It is developed through a stakeholder process and is
published for public comment. Following a public hearing, it is approved by the Kitsap County Board
of Commissioners.
2. Each Spring annual funding priorities for the following year grant cycle are developed through a
community stakeholder process. These annual funding priorities are included in the Policy Plans for
each grant program (see below).
3. Each Spring the Program staff updates and publishes a Policy Plan for each of the grant programs,
outlining policies that govern the use of the funds. The Policy Plans also contains a Citizen
Participation Plan, which indicates how citizens may give input into the grant-making process at
various points. Following a public comment period and a public hearing, it is approved through a
Kitsap County Board of Commissioners action.
4. Annually the Coordinated Grant Application Process is used to determine which projects will be
funded with Homeless Housing and Affordable Housing grant funds(as well as federal CDBG and
HOME funds). The Coordinated Grant Application Process uses citizen review boards and interviews
of all applicants to develop funding recommendations.The projects recommended for funding must
be linked to the goals and objectives described in the Homeless Housing Plan. The "Coordinated
Grant Application" uses one application, review, and recommendation process for all funding
sources. By coordinating the application process, duplication of funding was eliminated and funding
is able to be more targeted to funding source priorities. In addition,there are administrative
efficiencies and the number of contracts is reduced, saving time and money.
5. Each Autumn the recommendations for funding awards for the next calendar year are published for
. public comment and, after a public comment hearing and a public hearing, final approval is by the
Kitsap County Board of Commissioners.
6. Throughout the grant period, recipients report on progress towards performance measures and
enter data into the Homeless Management Information System.
Input and Collaboration
Throughout the year Housing and Homelessness Program staff gathers input from the cities through
meetings with Mayors and City Councils, and invitations to participate in public comment opportunities.
Program information will be provided electronically on an on-going basis on the Kitsap County website,
via Kitsap County electronic notifications, and through emails.
Additional Information
For additional information, please refer to the Kitsap County Human Services webpages for the Housing
and Homelessness Program:
http://www.kitsap�ov.com/hs/housin�/housin� �rant.htm
Or contact the Program staff:
Kirsten Jewell
Housing and Homelessness Program Coordinator ,
Kitsap County Department of Human Services
345 6th Street, Suite 400
Bremerton, WA 98337
360-337-7286
kiewell@co.kitsap.wa.us
Chart 1. Homeless Housing Grant Program and
Affordable Housing Grant Program:
$1,600,00o Grant Funds Available b C cle
$1,400,000
$1,200,000 — �HHGP
$1,000,000 — —
$800,000 — AH G P
$600,000 `*�,,,, —
$400,000
$200,000
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2015 Kitsap County Housing and Homelessness Program:
. Portfolio of Grant Investments in Affordable Housing & Homeless Services
Homeless Permanent permanent
Programs Prevention Emergency Shelter Transitional Housing Supportive Housing
Coordination Housing
Coordinated Entry Prevention Emergency Shelter Homeless Housing Long-Term Rental Long-Term Rental
Program & Case Management Limited to 24 Months Subsidy Subsidy
NK Fishline
Kitsap Community Eviction Prevention Catholic Community Agape Unlimited Bremerton Catholic Housing
Resources Program Services Sisyphus II & Koinonia Housing Services
Housing Solutions $37,960 Benedict House $68,902 Authority/Kitsap Max Hale Center
Centerl $78,3531 Catholic Community Mental Health $53,470
$313,300 TOTAL $37,960 Kitsap Community Services Services Housing Kitsap
Resources Benedict House Rental Subsidy for Housing
Continuum of Care Housing for Families $52,2361 Mentally III Stabilization
Kitsap Community Homeless Youth $38,249z Kitsap Community $66,430 Program
Resources Resources West Sound $113,880
Continuum of Care � � � � �� � � TOTAL $116,602 Transitional Housing Treatment Center Housing Resources
Activities Youth Outreach & $25,4992 Forward Bound Board
$37,960 �ase Management Unsheltered West Sound $29,235 Rental Assistance
TOTAL $351,260 Homeless Treatment Center $42,138
Hope in Christ _.�.:.......... .. . .. - - O'hana House & TOTAL $95,665
Coffee Oasis Lighthouse Recovery TOTAL $209,488
Other Programs Homeless Support Housing
............. .....:...... ._-- ..__..----_ $80,665 Services $61,121
Youth for Christ ��q Capital Projects
Vocational Services Independent Livin Salvation Army
g ALIVETransitional ... . ....p ... ... ..... _... . __. ............ ........_........,.... . . ...
$37,960
West Sound Specialist Housing Kitsa Rescue Mission
Treatment Center $56,940 TOTAL $37,960 $25,000 Overnight Shelter
Compass TOTAL $137,605 $50,000
Vocational Services TOTAL $233,944 gremerton Housing Authority
$47,450 2015 Total Investments: $1,257,994 Cottages at Forest Park
TOTAL $47,450 $45,000
1Program is a 60/40 split between Emergency Shelter&Transitional Housing TOTAL $95,000
ZProgram is approx. a 60/40 split between Emergency Shelter&Transitional Housing
2015 Kitsap County Housing and Homelesseness Program
Grant Investments in Homeless Programs: Housing and Services
Vocational Services Prevention
0 0
4/0 3/0
Permanent Supportive �
Housing Coordinated Entry&
g� Coordination of
Emergency Shelter Programs
9°� 29%
Homeless Youth
11%
ransitional Housing
19%
Permanent Housing
17% �
2015 Kitsap County Housing and Homelessness Program
Grant Investments in Homeless Programs: Programs vs. Capital
Capital
7%
Housing&Services
93%
... . ..
i
;
�
■
1 Sa Ol'Yle eSS
.
OUS111 c�l� :
ae
�remerton City Councii
Jul y 22, 2015
Ki�sten Jewell ' .
Housing and Homelessness Program Coordinator �
, Kitsap County, Department of Human Services �
�
kiewell�co.kitsap.wa.us
�; B a c r n
g ou
• Req u i red by WA Legislation : Red uce homelessness by
50% between 2005 and 2015 � Strategic Planning
• Kitsap's Plan to address homelessness, including
specific objectives, strategies, and action steps
• Provides framework for activities and determines
what is eligible for homeless grant funding
• Important community conversation & discussion
;
• Original Plan : 2005, updated 2006, 2008, and 2012
i
�
�--- _.. . _ _ _ _ -- ------ _ _
r""...'__....__... ... _. _ . .. . .._..._. ..._.. .__.__'_'_.._'_'
I
� Homelessness Stakeholders
Kitsap Citizens
Cities and County
Government leaders
Homeless and At-Risk
Households
Homeless Housing &
Service Providers
Federal, State, and
�
Private Funders
�
;
�__..__ --- ---- .
Kitsa Continuum of Care 40+ KCoCC
p
Members
Co al iti o n St. Vincent de Paul
Kitsap Mentai Health Services
Dept. of Veterans Affairs
• Members = Homeless Service DSHS — Bremerton C50
P rov i d e rs Bremerton Housing Authority
Catholic Community Services
Peninsula Community Health
� Advisory to Kitsap County Agape Unlimited
Kitsap Community Resources
• Develops Kitsap Homeless Housing Resources Board
Housing Plan Standup for Kids
Max Hale Center
Kitsap City Behavioral Health
• Coordinates Annual Point-In- The Salvation Army
Time Homeless Count Bremerton Foodline
Kitsap County Consolidated Hsg. Auth.
• Develops recommendations One Church One Family
Helpline House — Bainbridge Isl.
for annual funding priorities Habitatfor Humanity of Kitsap
United Way of Kitsap
North Kitsap Fishline
i
YWCA ALIVE Shelter
�
L_.__ _..__ ..
�-- --- _....--- ---
I
�
�
U ate r'OCess
p
• KCoCC convened Plan Update Committee
• Inputs for plan :
• Homeless Data & Demographics
� Point In Time Count • Homeless Management Information System
• Coordinated Entry Program • Homeless Client Survey
• Kitsap Stakeholders
� Meetings with Mayors/Commissioners • Meetings with City
Councils • Stakeholders Workshops • Providers Survey
• Evidence-based Practices
� WA Commerce • Technical Assistance Guidance • National
Research • Other Counties' Plans
�
;
�---- --
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i
� . 1 H �n Plan
2015 K�tsa Horne ess ous
p g
Pur oses of Plan
° Focus Community Effort
° Blueprint for Implementation
� Tool for Advocacy
G Reference for Funders
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: Z015 Kltsa omeless Housin Plan
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Q�a��oa�o ac��o�aaOQD �����Q
Pla n Format o o o
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I . Introduction/Executive Summary �� o �g
II . 2005 — 2015 Progress Report paoQ��
III . Current State of Homelessness
�� Key Demographics
�� Response System � Resources
� Gaps in Current Homeless Response System
VI . Strategic Plan : Objectives, Strategies & Action Steps
VII . Performance Indicators
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: VIII . Appendices !
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2015 K�tsa Homeless Housin Plan
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Goal
Work together as a community to make
homelessness a rare, brief, and one-time
occurrence in Kitsap County and ensure that ou
homeless response system is as efficient and
effective as possible .
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� 2015 K�tsa omeless Housin Plan
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Format : Strate ic Plan Ob'ectives
1) Make homelessness rare.
( Prevention strategies)
2) Make homelessness brief.
(Crisis response strategies)
3) Make homelessness one-time.
(Long-term housing stability strategies)
4) Continuously improve Homeless Response System
Im rovin ca acit coordination and efficienc strate ies�
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� 5) Expand community engagement.
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2015 Kitsa Ho �neless Housin Plan
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O ortunities for In ut
✓ Individual Meetings with Mayors and Commissioners (April &
M ay)
✓ Provider Survey & Client Focus Groups (June)
M eeti ngs with City Cou nci Is (J u ly & August)
Stakeholders Events (August 4 & 5)
Kitsap Continuum of Care Coalition (September 16)
Release for Public Comment ( est. September 23 — October 21)
Board of Commissioners Study Session (October 28)
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Public Hearing & Adoption (November 9) �
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� a or s rlorltles ssues
• Ensuring success off the Homeless Coordinated Entry
Program (Housing Solutions Center)
• Ending veteran homelessness
• Supporting creation of an overnight shelter
• Preserving existing affordable housing & keeping people
in their existing housing
• Convertin abandoned houses to affordable housing through
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Habitat for Humanity and Community Frameworks programs
• Increasing affordable housing units through
incentives/requirements in new multi-family
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at a re ou r issues
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r � o r � t � es o r t e
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ome ess ous � n a n .
Kirsten Jewell
Housing and Homelessness Program Coordinator
Kitsap County, Department of Human Services
kiewell C«�co.kitsap.wa.us
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