Everett City Council

CITY COUNCIL RETREAT JANUARY 27,2024 9:00 Introductions and Ground Setting Council Member Why – Why do you serve? (2 minutes) 9:25 Retreat Purpose and Goals [5 minutes] 9:30 What is working? Council Accomplishments 9:45 Shared Momentum 9:50 Consensus with Others on City Issues What do you care about – Top 3 Council Member Priorities 10:20 Communication Process – Committees, Calendar 10:30 Break 10:45 Committee Work to Move Initiatives Forward 12:00 LUNCH BREAK 12:45 Principled Negotiation Practice – Tax Revenue Options 2:30 Closure and Next Steps  Category 2: Sensitive information EVERETT CITY COUNCIL 6.53 2024 January Retreat Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information AGENDA FOR SHARED TIME Introductions – Your Why Retreat Purpose and Goals What is working? Council Accomplishments Shared Momentum Consensus and Top 3 Council Member Priorities Communication Process – Committees and Calendar LUNCH BREAK Principled Negotiation Practice 90 Minutes –to 2 HOURS Revenue Options Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information INTRODUCTIONS/GROUND SETTING Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information WHO I AM KATHY SOLBERG • CommonUnity • Leadership Snohomish County • Community Weaver • Human Systems Design Certified • Nonpartisan roots • Collaborative Governance Fan • City of Everett Resident • Regenerative and Adaptive Leadership • Grateful Fan of Public Service Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information MY GUIDELINES FOR GATHERING 1. Give and receive welcome 2. Extend invitation and not demand 3. Speak your truth in a way that respects other people’s truth 4. No fixing, saving, advising or correcting each other 5. When the going gets rough, turn to wonder 6. Know that it is possible for the seeds planted here to keep 7. ESOBAST – Everyone Speaks Once Before Anyone Speaks Twice Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information WHO YOU ARE • 7 Committed leaders and conveners • Individuals that believe in the power of Community that want to make a difference • 4 Women and 3 Men • Individuals that agree often on the What and have varied ideas on the How • City of Everett Residents • Individuals that serve Everett and what you care about in many ways Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information YOUR WHY WHY DO YOU SERVE AS A CITY COUNCIL MEMBER FOR THE CITY OF EVERETT? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information RETREAT PURPOSE AND GOALS Category 2: For official use only / disclosure permissible by law.  YOUR DESIRED OUTCOMES FOR TODAY Category 2: Sensitive information 1. Equitable distribution of work and 9. Succession planning that is transparent shared priorities and understood by all. 2. Know what matters to other 10. Optimizing committees to bring council members council initiatives forward 3. Acknowledge accomplishments 11. General understanding or how to treat one another and trust building 4. Collaborative Agendas 12. Feeling good about who we are as a 5. Neighborhood group meeting council for our community representation 13. Assuring citizens feel heard – honing 6. Creating agreement around acknowledgement and communication revenue options and taxation. process 7. Committing to dedicated staff 14. A more cohesive and collaborative member for council and use of council. council budget. 15. Making access to committee meeting 8. Know the tradeoffs for all of our information streamlined and goals so we can best move accessible. forward with what we hold high. Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information MY GOAL FOR OUR SHARED TIME Gaining Momentum Communication Wins Aligning what we agree on so that some Finding ways to help council members to shared priorities can move forward in 2024 be more effective by sharing and for our constituents and that feeling of streamlining the communications for all the accomplishment. committee work. Looking to create efficiencies around communications. Finding Consensus How to move forward with the issues that Creating shared understanding are defined as having support and aligning with the Council and City priorities Knowing what other council members care about and hold as priorities is key to be able to collaborate and move initiatives forward. Revenue and Budget Clarity Reviewing the tax revenue options and assuring that all have a voice as a decision is made to move a recommendation forward. Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information WHAT’S WORKING? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information WHAT I HEARD FROM COUNCIL MEMBERS Thorough Exploration of Staff Liaison Role Complex Issues Jennifer is giving legislative updates with a Looking at tradeoffs to have thoughtful consistent presence. A consistent point of consideration of votes. contact has been helpful Willingness to explore varied The committee structure is perspectives. working well. Other’s perspectives have been illuminating to Learning a lot! Bringing organization to our see things in different ways. Historical approach and to policy. Deeper discussions perspectives, human needs, equity/fairness, and not yet creating a lot of new legislation. A public concerns and budget issues have all place to be more specific. Some committees been brought to different lights. are taking a lead of successes Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information COUNCIL ACCOMPLISHMENTS Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information ACCOMPLISHMENTS FOR 2023 1. Transition from at-large to districts 2. Updated Council Procedures which included revision of hybrid meeting regulations 3. Restructured Council Committee meetings 4. Implemented paperless Council agenda packets Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information QUESTIONS OR THOUGHTS? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information MISSION As defined in Section 1 of Resolution 7752 establishing City Council Rules Procedure As a matter of open government and transparency, The Everett City Council strives to engage the public in a civil and democratic process. As the policy – setting and oversight body for the City, the design of the City’s democracy as outlined in the Charter is that the legislative branch sets the policy, the administrative branch carries it out. Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information MISSION From Mayor Franklin’s 2023 State of the City Our city is and will remain a great place for all to live, recreate, raise a family and start a business. Our residents will have affordable, quality housing options in neighborhoods that connect them to jobs, parks, vibrant retail spaces, entertainment and each other. Our city will be innovative, resilient and sustainable. Our city will be known across the region and country as a small city with big opportunities. Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information DUTIES AND RESPONSIBILITIES As defined on the City of Everett Website Provides citizen representation for the City of Everett Gives direction to the City in identifying and addressing priority needs for the City through legislative authority Establishes policy direction to the Administrative branch of City government Promotes the economic growth and vitality of the City through local, state and national involvement on boards, commissions, and committees Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information DO YOU FEEL A SHARED MOMENTUM TO ACHIEVE THE CITY’S MISSION AND PLAN FOR THE FUTURE AMONG COUNCIL MEMBERS? Many Shared Whats No one said NO • All want vibrant engaged community • Operate meeting to meeting • All want what is best • Many individual agendas • Many share priorities • All want best for the city and residents. Differences on the Hows Issue Dependent • Doing a lot of work without accomplishing • Shared for employment, business, parks a lot and the budget. • If we start with big issues we agree on, • Varied on behavioral health, drug use, then we can navigate the varied Hows public health • Forward movement on What can work with communication and facilitation on the How Moving past elections • Two seats were elected Unclear of Mission/Map/Direction • Need to move past to make • Council rarely initiatives any priorities decisions about budget • Want to more than move forward all • Many points causing divisiveness that Mayor brings as priority • How to be proactive rather than reactive Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information AREAS OF PERCEIVED CONSENSUS 1. Parks, Libraries and Arts IIII 10. Transportation/Traffic –I 2. Budget – IIII 11. Addiction – I 3. Public Safety –IIII 12. Planning & Land Use -I 4. Worker Issues/Labor – IIII 13. Renter and Tenant Rights -I 5. Stadium – III 14. Green Space - I 6. Affordable Housing – II 7. Annexation- II 8. Homelessness -I 9. Mental Health Issues - I Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information AREAS TO GROW CONSENSUS 1. Comprehensive Plan 2. Levy Lid Lift/Library and Fire 3. Annexation 4. Funding for CPTED 5. Pedestrian and Bike Safety 6. Finding money to address social problems Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information YOUR TOP THREE WHAT DO YOU CARE ABOUT MOST AS A CITY COUNCIL MEMBER FOR THE CITY OF EVERETT? WHAT ARE YOUR TOP 3 PRIORITIES? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information OTHER THOUGHTS TO CARRY OVER 1. Dedicated staff for Council Research/Analysis 2. How to work in the Strong Mayor System and be involved as Council Members 3. Develop work sessions or retreat days to work on the processes and infrastructure that support us working to a common practice 4. Transparence around succession of officers and understood process. 5. Assure information communicated to inform is new and relevant. Avoid duplicate presentations. 6. Is structure where Mayor and all district seats run at the same time a sound structure? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information PRIORITIES Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information MAYOR 2023 PRIORITIES Public Safety Behavioral Health Parks and Recreation Housing For All Major Infrastructure Projects Sustainability and Climate Action Revenue Generation Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information MAYOR 2024 PRIORITIES Addressing Gun Violence Addressing the Drug Crisis Revenue Sustainability and Solutions Economic Development Park Safety Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information WHERE CAN YOU ALIGN TO HAVE COMMON PRIORITIES? City Council Housing MAYOR Homelessness Addressing Gun Violence Public Safety Addressing Drug Crisis Parks, Art, Libraries Revenue and Sustainability Budget Solutions Worker Issues/Labor Economic Development Stadium Park Safety GET CONSENSUS Levy lift/Library/Fire Comprehensive Plan Annexation Money for Social Problems Funding for CPTED Bike and Pedestrian Safety Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information THOUGHTS AND DISCUSSION Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information BREAK Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information COMMUNICATION PROCESS COMMITTEES AND CALENDARS Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information COMMITTEE COMMUNICATION Sharing Committee Information Assuring all are on Budget Committee Committee Efficiency Communication Channels Calendar for all Meetings Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information LUNCH 6.53 BREAK Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information PRINCIPLED NEGOTIATON PROCESS 1 4 Separate People Focus on Interests Generate Multiple Use Objective from the Problem Not Positions Options Criteria Make decisions based on Focus on the issues Identify the underlying Brainstorm creative facts, data, ethical themselves rather than Motivations, needs and alternatives and solutions standards and shared positions or personalities priorities of each party aimed at satisfying all principles rather than sides’ interests pressure, power or opinion Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information PROCESS TO DISCUSS OPTIONS What is assessment criteria? Evaluate all three options Compare Assessments Pros Define objective decision What did you hear? Cons criteria What makes sense? Tradeoffs What are recommendations and next steps? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information ASSESSMENT CRITERIA POSSIBILITIES 1. Implementation feasibility 2. Timing – how quickly revenue would be generated 3. Public support 4. Sustainability 5. Equity 6. Unintended consequences/tradeoffs 7. Political feasibility 8. Limitations 9. Impact Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information General Government Six-Year Forecast 2025 2026 2027 2028 2029 2030 Forecast Forecast Forecast Forecast Forecast Forecast Annual Deficit $ (19,896,916) $ (24,208,493) $ (28,932,021) $ (33,173,085) $ (37,853,978) $ (42,840,285) Prior Year Budget Variance 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 Revised Deficit $ (12,896,916) $ (17,208,493) $ (21,932,021) $ (26,173,085) $ (30,853,978) $ (35,840,285) $- $(5,000,000) $(10,000,000) $(15,000,000) $(12,896,916) $(20,000,000) $(17,208,493) $(25,000,000) $(21,932,021) $(30,000,000) $(26,173,085) $(35,000,000) $(30,853,978) $(40,000,000) $(35,840,285) Forecast Forecast Forecast Forecast Forecast Forecast 2025 2026 2027 2028 2029 2030 Category 2: For official use only / disclosure permissible by law.  Key Deficit Reduction Measures 2014-2023 • New High Deductible health plan (VERA Clinic) • Health benefit premium share for City staff General Government Deficit Forecast • Public private partnerships $- • Service reductions $(5,000,000) $(10,000,000) • Voluntary separation programs $(15,000,000) $(12,896,916) • Staffing reductions through attrition $(20,000,000) $(17,208,493) $(25,000,000) • Recreation programs elimination $(21,932,021) $(30,000,000) $(26,173,085) • Swim Center closure $(35,000,000) $(30,853,978) • Two fundraising positions $(40,000,000) Forecast Forecast Forecast Forecast Forecast $(35,840,285) Forecast • $20 car tab fees 2025 2026 2027 2028 2029 2030 • Solicitation of ideas from staff and community • General M&O increase elimination  Category 2: Sensitive information OPTION EVALUATION 1 2 3 Option overview Each Council members Option Generation/Brainstorming expresses viewpoint on their Slide review from January 10th preferences for consideration. Based on what you have just heard Council Presentation from your peers, what ideas would 4 minutes without interruption you like to put forward for consideration? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Library Services – Sno-Isle Sno-Isle Libraries serves more than 800,000 residents in Snohomish and Island county through 23 community libraries, online services, and Library on Wheels Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Sno-Isle Annexation The numbers: Based on 2023 levy and 2025 City budget estimate Sno-Isle Property Tax Revenue Estimate $8.3 million 2025 Everett Library Funding Estimate 6.4 million Difference $1.9 million Sno-Isle 2023 Levy Rate: $0.31/$1,000 of Assessed Value Everett 2023 Assessed Value: $26.8 billion Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Sno-Isle Annexation Impact to average value residence: [2023 Sno-Isle levy rate; average Everett home value; 2025 Library budget estimate] Avg Value Property Owner Impact: City Deficit Reduction: Everett Residence 2023: $171/Year $6,400,000 $551,000* Sno-Isle 2023 Levy Rate: $0.31/$1,000* *Source: Snohomish County Assessor Annual Report 2023 10 of Assessed Value Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Merger with a County Regional Fire Authority (RFA) Funding Fire Service example: Property Tax Levy: South Max Rate County RFA $1.00 Fire Benefit Charge: Up to 60% of Operating Costs Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Merger with a Regional Fire Authority (RFA) Fire Benefit Charge (FBC): Definition Exemptions or Reduced Fees Maximum Rate An FBC is a fee imposed Low-income & nonprofit Up to 60% of the on properties based on emergency housing, religious cost of fire the type and size of entities, low-income seniors and services structures on the people with disabilities property. Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information South County RFA Merger Example Impact on average value residence & potential deficit reduction: $35,000,000 $32,000,000 $30,000,000 $26,635,159 $484 $25,000,000 400 $21,270,319 Avg Value $374 $20,000,000 $15,905,478 Residence 300 $13,223,058 $264 $15,000,000 2023: 200 $8,394,701 $10,000,000 $154 $551,000* 100 $99 $5,000,000 0 0 $- -0.88 -0.7 -0.6 -0.4 -0.2 0 Levy Rate Reduction South County RFA 2023 Levy Rate: City Deficit Reduction Property Owner Impact $0.75/$1,000 of Assessed Value + *Source: Snohomish County Assessor Annual Report 2023 13 Fire Benefit Charge** **Sources: Snohomish County Assessor Annual Report 2023 and South County RFA Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information General Levy Lid Lift Options Simple Majority Voter Approval Required Temporary 1x Levy Permanent 1x Levy Lid Lift Lid Lift Temporary Multiple- Permanent Multiple- Year Levy Lid Lift Year Levy Lid Lift Category 2: For official use only / disclosure permissible by law. Levy Lid Lift: One-time Temporary vs 1x Permanent One-time Temporary One-time Permanent Resumes 1% Levy "cliff", levy One-time Resumes 1% annual increase thereafter Initial annual increase reverts to what it "bump" exceeds "bump" for the lift period would have been 1% limit exceeds 1% without the lid lift limit Base Levy Amount Lid Lift Amount Base Levy Amount Lid Lift Amount Scale exaggerated for illustration purposes Scale exaggerated for illustration purposes  Category 2: Sensitive information General Levy Lid Lift Options Simple Majority Voter Approval Required Permanent 1x Levy Lid Lift Permanent Multiple- Year Levy Lid Lift Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information COUNCIL MEMBER SHARING Each Council member expresses their viewpoint, perspectives and preferences for consideration. 4 minutes per council member without interruption Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information OPTION GENERATION/BRAINSTORMING Based on what you have just heard from your peers, what ideas would you like to put forward for consideration? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information PROCESS TO DISCUSS OPTIONS Analysis of Tax Revenue Recommendations Next Steps Potential Recommendations Summary of potential What to put forward Pros recommendations How parameters and Cons infrastructure are put in place Areas of agreement What Next? Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Next Steps - Council Decisions 1. Determine which revenue option(s) the City will pursue 2. Determine structure and timeline Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information WHAT’S NEXT AND ADJOURN Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information CLOSURE Follow up My what’s next THANK YOU! Category 2: For official use only / disclosure permissible by law.