Metropolitan Park District Study Session

NORMANDY PARK METROPOLITAN PARK DISTRICT STUDY SESSION MEETING AGENDA OCTOBER 22, 2024 AT CITY HALL - 801 SW 174TH ST CITY COUNCIL CHAMBERS I. CALL TO ORDER 6:30 p.m. II. ROLL CALL III. APPROVAL OF THE AGENDA IV. APPROVAL OF THE MINUTES V. NEW BUSINESS a. 2025 & 2026 MPD Biennial Budget Resolution b. 2025 MPD Property Tax Resolution VI. INFORMATIONAL ITEMS VII. ADJOURN Page 1 of 1  Normandy Park Metropolitan Park District Meeting Date: October 22, 2024 Agenda Category: New Business SUBJECT: Adoption of MPD 2025 and 2026 Operating Budget ATTACHMENT: 1. 2025 and 2026 MPD Operating Budget Detail 2. 2025 and 2026 MPD Operating Budget Resolution No. 24-02 PREPARED BY: Amy Arrington, Executive Director and Diane Marcotte, Financial Consultant RECOMMENDED AND REVIEWED BY: Amy Arrington, Executive Director STAFF EXPLANATION: Attached is the MPD Biennial Operating Budget for the years 2025 through 2026. While Chapter 35.61 RCW, Metropolitan Park Districts, does not require the adoption of budgets for MPD’s, the formal adoption of a budget is considered a fiscal management tool, provides for transparency, accountability, and is considered a best practice by the State Auditor’s Office (SAO) and the Government Finance Officers Association (GFOA). Changes for 2025 and 2026 include funding for the replacement of turf at 2 city parks as well as the installation of water fountains at the parks. Additionally, the City of Normandy Park has included direct costs for the replacement of equipment such as vehicles and mowers related to parks activity in their estimated expenditures to more closely reflect actual costs of service provide by the City. The Metropolitan Park District (MPD) is a taxing authority approved by voters on November 3, 2009. The district's purpose is to support the Normandy Park parks and recreation services. The City of Normandy Park owns and operates all parks and recreation programs within the City, so the MPD support comes from funding the parks and recreation expenditures through its property tax levy. Like most taxing authorities in Washington State, this levy has a 1% cap on revenues. While the MPD is fiscally healthy, recent trending does show expenditures growing at a higher rate than revenues. So, the gap between revenues and expenditures is closing. In the future, without any changes, MPD expenditures will exceed revenues. Because of this, the MPD will most likely need to make some adjustments(s) in the FY 2027-2028 budget. Possible adjustments include taking advantage of the MPD property tax bank capacity, requesting that the City be responsible for certain expenditures, or revising service levels. The proposed 2025-2026 budget is sound; no action is needed now. FISCAL IMPACT: The proposed 2025 and 2026 MPD Operating Budget expenditures appropriation of $999,300 for 2025 and $860,200 for 2026. COUNCIL OPTIONS: 1. Move to approve the 2025 and 2026 MPD Operating Budget as presented. 2. Move to approve the 2025 and 2026 MPD Operating Budget with specified changes. RECOMMENDED MOTION: 1. "I move to adopt Resolution No.24-02 adopting the 2025 and 2026 MPD Operating Budget as presented.”  RESOLUTION NO. MPD 24-02 A RESOLUTION OF THE NORMANDY PARK METROPOLITAN PARK DISTRICT, WASHINGTON, ADOPTING THE 2025 and 2026 OPERATING BUDGET. WHEREAS, the Board of the Normandy Park Metropolitan Park District (“Park District”) needs to adopt the MPD Biennial Operating Budget for the years 2025 through 2026; and WHEREAS, the 2025 and 2026 budget include capital expenditures of $252,000 for replacement of turf at City Hall and Marvista parks and $40,000 for new water fountains; and WHEREAS, the formal adoption of a budget is considered a fiscal management tool, provides for transparency, accountability, and is considered a best practice by the Government Finance Officers Association (GFOA) and the Washington State Auditors Office (SAO). NOW, THEREFORE, THE BOARD OF METROPOLITAN PARK DISTRICT OF NORMANDY PARK, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: SECTION 1. BUDGET ADOPTION BY YEAR AND FUND. The adopted operating budget for the years 2025 and 2026 is hereby authorized in the following amounts: Beginning Fund Ending Fund Year Balance Revenues Expenditure Balance 2025 $552,233 $688,450 $999,300 $219,383 2026 $219,383 $694,166 $860,200 $53,349 PASSED BY THE NORMANDY PARK METROPOLITAN PARK DISTRICT BOARD THIS 12th DAY OF NOVEMBER 2024. _____________________________ Susan West, President Attest: ______________________________ Shawn McEvoy, Clerk of the Board APPROVED AS TO FORM: ____________________________________________ Heidi Greenwood, City Attorney Ogden Murphy Wallace, P.L.L.C. Vote Bishoff Healey Lamanna McEvoy Zimmerman Hohimer West Ayes: Nays: Abstentions: Absent: Normandy Park Metropolitan Park District Meeting Meeting Date: November 12, 2024 Agenda Category: New Business SUBJECT: 2025 Property Tax Levy Resolution No 24-01 ATTACHMENT: Resolution 24-01 PRESENTED BY: Amy Arrington, Executive Director Diane Marcotte, Financial Consultant RECOMMENDED BY: Amy Arrington, Executive Director REVIEWED BY: Executive Director, Legal STAFF EXPLANATION: Proposed Resolution No. 24-01 establishes the 2025 property tax levy in the amount of $661,590. The levy amount represents an increase of $6,551 which is a percentage increase of 1% from the prior year and excludes estimated re-levies for prior year refunds in the amount of $2,500 along with additional revenues resulting from new construction, property improvements, and increases in state-assessed property. The MPD’s preliminary levy assessment value is $2,752,757,19 which equates to an estimated levy rate amount of 0.2403337 per $1,000 of assessed value. Currently there is $382,711 in bank capacity from prior years. The deadline for submitting the 2024 property tax levy request to the King County Assessor’s Office is Wednesday, November 30, 2024. FISCAL IMPACT: The estimated amount to be collected in 2025 is $661,590, which excludes additional revenue resulting from new construction and improvements to property, increases in the value of state-assessed property, and re-levy refunds made for prior years currently estimated at $2,500. BOARD OPTIONS: 1. Move to adopt the proposed Property Tax Levy Resolution No. 24-01, as presented. 2. Refer to staff for further review. 3. Take no action. RECOMMENDED MOTION: “I move to adopt the Property Tax Levy Resolution No. 24-01 as presented."  NORMANDY PARK METROPOLITAN PARK DISTRICT RESOLUTION NO. 24-01 A RESOLUTION OF THE NORMANDY PARK METROPOLITAN PARK DISTRICT ESTABLISHING THE AMOUNT OF PROPERTY TAXES TO BE LEVIED FOR THE YEAR 2025. WHEREAS, the Commissioners of the Normandy Park Metropolitan Park District held a public hearing on November 12, 2024 and heard comments on the 2024 property tax levy; and WHEREAS, the population of the Normandy Park Metropolitan Park District is less than 10,000. WHEREAS, the Commissioners have met and considered its budget for the calendar year 2025; and WHEREAS, the Commissioners have determined that it is in the City’s best interest and necessary to increase the 2025 property tax revenue to meet its expenditures and obligations; and NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE BOARD OF METROPOLITAN PARK DISTRICT COMMISSIONERS OF NORMANDY PARK, WASHINGTON, AS FOLLOWS: Section 1. An increase in the regular property tax levy to be collected in the 2024 tax year is hereby authorized in the amount of $6,551, which is a percentage increase of 1% over the prior year, excluding refunds currently estimated at $2,500. Estimated levy rate is .2403337. This increase is exclusive of additional revenue resulting from the addition of new construction and improvements to property, as well as any increase in the value of state- assessed property, any additional amounts resulting from any annexations that have occurred, and refunds made. Including the increase set forth above. ADOPTED by the Normandy Park Metropolitan Park District Board this 12th day of November, 2024. Susan West, President ATTEST: Shawn McEvoy Clerk of the Board Page 1 of 2 APPROVED AS TO FORM: ____________________________________________ Heidi Greenwood, District Attorney Ogden Murphy Wallace, P.L.L.C. Vote Bishoff Healey Lamanna McEvoy Zimmerman Hohimer West Ayes: Nays: Abstentions: Absent: Page 2 of 2