HomeMy WebLinkAbout2024-08-21 Economic Development Commission Packet
AGENDA
Edmonds Economic Development Commission
Wednesday, August 21, 2024
6PM – 8PM
HYBRID MEETING
The Economic Development Commission members will be meeting in person and/or remotely for this meeting. The
public may join at the physical location or join through zoom.
PHYSICAL LOCATION
Brackett Meeting Room, Edmonds City Hall – 3rd Floor
121 5th Ave N, Edmonds, WA 98020
REMOTE MEETING/ZOOM INFORMATION:
https://zoom.us/j/98696685791?pwd=Ryt0ZjVuK3ZCN0N4Q1RrMHZqSWpyQT09
Meeting ID: 986 9668 5791
Passcode: 901513
6:00 PM Call to Order
1. Roll Call and Recognition of Approved Absences
2. Approval of Agenda
3. Approval of July17, 2024 Meeting Notes
4. Audience Comments (3 minutes per person)
5. Tax Increment Financing – Presentation and Discussion
6. Business Booster 2.0
a. Review of current iteration
b. What’s next
7. EDC Retreat Scheduling – Finding a date
8. Liaison Updates
a. City Council – Councilmember Eck
b. Port of Edmonds – Selena Killin
c. Chamber of Commerce – Ryan Crowther
d. Planning Board – Lee Hankins
9. Roundtable Discussion
10. Adjourn 8:00 PM
Next Regular meeting: September 18, 2024, 6 PM
DRAFT Meeting Summary
Economic Development Commission
July 17, 2024
Page 1
CITY OF EDMONDS
ECONOMIC DEVELOPMENT COMMISSION MEETING
July 17, 2024
COMMISSIONERS PRESENT:
Allan Townsend, Vice-Chair
Nicole Hughes
Darrol Haug
Pete Spear – via Zoom
Natalie Seitz
Kate Nolan – Student Representative
COMMISSIONERS ABSENT:
Matt Cox - excused
Nicole Hughes - excused
LIAISONS PRESENT:
Lee Hankins – Planning Board, ex-officio – via
Zoom
Selena Killin, Port Commissioner, ex-officio
Ryan Crowther, Chamber, ex-officio – via Zoom
Chris Eck, Councilmember, ex-officio
GUESTS:
Roger Pence
Will Chen, Councilmember
Debi Humann – via Zoom
Ronald Bussiere – via Zoom
Jim – via Zoom
Darla – via Zoom
STAFF PRESENT:
Todd Tatum, Director CCED
Megan Luttrell, Program Coordinator CCED
Economic Development Commission meeting called to order by Allan Townsend at 6:00 p.m.
Call to Order
1.Roll Call and Recognition of Approved Absences: Matt and Nicole’s absences are excused.
2.Approval of Agenda: Nick moves to approve the agenda; Darrol seconds; motion passes.
3.Approval of May 22, 2024, Meeting Summary: Kevin H. moves to approve the meeting summary;
Darrol seconds; motion passed.
4.Audience Comments:
Roger Pence introduces himself. He points out that a few years ago the Community Renewal Plan
highlighted the Hwy 99 core for redevelopment. The Landmark Project overshadowed other
opportunities to redevelop. Once the Planning Department is fully staffed and with the Landmark
Project gone, he hopes a new project will develop.
5.Guest Speaker Presentation: Janie Sacco, Small Business Association:
Janie is here to share the structure of the programs that the Small Business Association provides. She
walks the Commission through a robust PPT presentation (Attachment A).
a.Question and Discussion. Kevin H. highlights the Business Booster website as a small
business resource center the Commission spearheaded in partnership with City staff and
Chamber of Commerce. You can find the website at: edmondsbizbooster.com. Janie
would be interested in providing training for small business owners.
DRAFT Meeting Summary
Economic Development Commission
July 17, 2024
Page 2
b.EDC Follow-up: Business Booster update – This item will be discussed at a future meeting.
6.City of Edmonds Budget Blue Ribbon Panel Update: Darrol has been asked by the leadership team to
give an update on the Blue Ribbon Panel’s (BRP) findings. The primary focus of the BRP was to review
the general fund. Darrol walks the group through the work that the BRP did. $20M is the primary
deficit. Major element is expense reductions. Darrol provides the group with several resources
outlining the budget issues, current taxes, tax model for potential new revenue and a tax table for
various priced homes (Attachment B).
7.Landmark 99 – What’s Next:
a.Community Renewal Areas:
b.Tax Increment Financing:
Todd explains that staff took a resolution to Council to discontinue the work on the Landmark Project,
the timing is not right for the City to move forward with this project. The resolution not only outlines
the work stopping but it also recommends the city bringing back the Community Renewal Area, study
the feasibility of Tax Increment Financing and add a Hwy 99 renewal project renewal to the CIP when
feasible to identify possible infrastructure investments. There will be a future presentation on Tax
Increment Financing (TIF). This would give the City the opportunity to create a TIF area; within the
boundary you identify projects that would spur on infrastructure improvements and development.
There will be a lot of upfront conversations with the community as these ideas move forward.
Councilmember Chen, speaking as a resident, he feels that the new approach is the right way to
move forward. However, due to the City’s financial situation, is there any thoughts on where the
funding would come from, how much investment will be done and what is the timing. Todd explains
the language of “when feasible” was intentional. Laying this out in the CIP keeps the radar on this
for the future, when it is feasible.
Natalie feels this series of conversations is difficult. She proposed an idea of an “Opportunity Fund”
during the ProsPlan but it wasn’t picked up. Why not adopt the Community Renewal Plan now?
Could this Commission support the adoption of the Community Renewal Plan now, would that be
helpful? Todd’s not sure this is the right time but perhaps in a few months. Kevin H. suggests having
a conversation about what the EDC can focus on? Natalie would like to see the City’s work on anti-
displacement. Councilmember Eck shares this was a difficult decision. She feels the commitment
from this group on the work they’re doing. Councilmember Chen emphasizes the need for Hwy 99
improvements.
Natalie makes a motion to extend the meeting for 15 minutes, Nick seconds, motion passes.
8.Liaison Updates:
a.City Council – Councilmember Eck: Expresses her appreciation to all who have been
working on be done to improve the Hwy 99 area. She feels that work that has been done
on the Landmark Project can be used going forward. Two red light cameras have been
approved: Hwy 99 & 220th and SR104 & 100th. Council passed updates to the ADU’s code.
b.Port of Edmonds – Selena Killin: Hoping to bring more food offerings to the
Port/boardwalk area. They did not get the big grant funding they applied for (it’s not
typical to get this funding the first time you apply).
DRAFT Meeting Summary
Economic Development Commission
July 17, 2024
Page 3
c.Chamber of Commerce – Ryan Crowther: It’s event season. 4th of July was great! Taste is
coming back to Civic. Launched a new website and launched a new membership platform.
Membership is growing with 56 new members this year.
Selena adds that Habor Square has office space available.
d.Planning Board – Lee Hankins: Had to leave prior to update.
9.Roundtable Discussion:
Carrie will be in Mexico next month. Nick appreciates the location change and feels there’s some
big things to work on going forward. Kate really liked the discussion and may miss next meeting
as it’s her first day of senior year. Darrol has shifted his volunteer efforts to a group that will look
at how to reduce taxes for low-income families. Kevin H. shares the Mayor has asked him to join
a group with Allan on how to make Commissions and Boards more effective. They’re not
representing the EDC but they’ve been asked because they’re on the EDC. If anyone has
suggestions or recommendations send them to Kevin H. Natalie was happy to hear about Theresa
Hollis new group. She’s excited to see the light rail doing test runs and last mile transportation
could be a good focus for this group. Pete via Zoom excited to be a part of the group. Allan shares
he and Matt are working on scheduling a retreat.
10.Adjourn: 8:17 p.m.
Next meeting: August 21, 2024, 6 PM location Hybrid – Brackett Room & Zoom
U.S. Small Business
Administration
ATTACHMENT A
The SBA works to ignite change and spark action
so small businesses can confidently
2
START • GROW • EXPAND • RECOVER
Local Areas of Focus
Equitable
access to capital
Increase contracting
opportunities
Supported by technical assistance
You are
not alone.
You are
not alone.
SBA Financing Programs
7(a) Guaranteed Loan Program
117 participating lenders in FY 2023
•7(a) Loan Guarantee
•504 Loan Program
•Community Advantage Small Business Loan Companies
•Microlenders
•SBICs
•SBIR/STTR
•Investing in America
•Surety Bond Guaranty Program
7(a) Loan Guarantee Program
7
Seattle District Office
Lender Links
The Link: Lender List.xlsx (live.com)
Lender Match connects you to lenders: MySBA Loan Portal
8
7(a) Loan Guarantee Program
With Up to 90% Financing
CapLine Guarantee Program for Lines of Credit to fund
•Operating expenses
•Seasonal needs
•Specific contracts
•Builders with NAICS of236220, 236115, 236116, or 236118
Term Loans to fund:
•Working Capital Needs
•Inventory
•Account and Trade Payables
•Equipment Purchases and installationcosts
•Business debt refinance
•Changes of ownership (100% or Partial)
•Tenant improvements
•Acquisition of owner-occupied realestate
•Acquisition of owner-occupied land andground up construction
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Program Maximum
Loan Amount
Percent of
Guaranty
Eligible Use of
Proceeds Maturity Maximum
Interest Rates
Guaranty Fees
(Based on Gtd. Portion)Who Qualifies Benefits to
Borrowers
7(a) Loans $5 million 85%
guaranty for
loans of
$150,000 or
less; 75%
guaranty for
loans
greater
than
$150,000
(up to
$3.75M
maximum
guaranty
Term Loan.
Expansion/renovation;
new construction,
purchase land or
buildings; purchase
equipment, fixtures,
leasehold
improvements; working
capital; refinance debt
for compelling reasons;
for inventory or starting
or purchasing a
business.
Only owner-occupied
commercial real estate
is eligible.
Depends on ability to
repay. Generally,
working capital not to
exceed 10 years;
Equipment, fixtures, or
furniture not to exceed
10 years. Except term
may be up to 15 years if
IRS asset class useful life
supports longer term.
Lender must document
in credit memo
justification of any term
that exceeds 10 years;
real estate up to 25
years. No balloons or
demand features
permitted.
Effective Aug. 1, 2022
$50,000 or less Prime + 6.5%
$50,001 -$250,000 P + 6%
$250,001—$350,000 P + 4.5%
$350,001 and greater P + 3%
Fixed Rate:
https://catran.sba.gov/
ftadistapps/ftawiki/ index.cfm.
See Downloads and Resources
section.
Charged on guaranteed
portion Guaranty Fee:
$500,000 or less= 0%
$500,001 to $700,000=
0.55% $700,001 to $1
million= 1.05%;
$1,000,001 to
$5,000,000= 3.5% up to
$1 million, plus 3.75% of
gtd. portion over $1
million. Loans 12 months
or less of $500,000 or
less = 0%; over $500K =
0.25% Ongoing lender
fee: $500,000 and less =
0.00%. $500,001-
$5,000,000 = 0.55%
For FY2024—there is
no fee for loans of $1
million or less
Must be a for-profit
business & meet SBA
size standards; show
good character,
credit, management,
and ability to repay.
Must be an eligible
type of business.
Prepayment penalty
for loans with
maturities of 15 years
or more if prepaid
during first 3 years.
(5% year 1, 3% year 2
and 1% year 3)
Long-term
financing;
Improved cash
flow;
Fixed maturity;
No balloons;
No prepayment
penalty (under 15
years)
7(a)Small Loans
Is any 7(a) loan
$500,000 and
under, except the
Community
Advantage and
Express loans
$500,000 Same as
7(a) Loans
Same as 7(a) Loans Same as 7(a) Loans Same as 7(a) Loans Same as 7(a) Loans Same as 7(a) Plus, all
loan applications will
be credit scored by
SBA. If not an
acceptable score, the
loan can be submitted
via full standard 7(a)
or Express.
Same as 7(a)
Loans
SBAExpress $500,000 50%
regardless
of loan
amount.
May be used for
revolving lines of credit
(must have term-out
period not less than
draw period) or for a
term loan.
LOC: Max period
Revolver = 60 mo.; Max
term out period = 60
mo. For total of 10 yrs.
Term loan: same as 7(a)
Same as 7(a) Loans Same as 7(a) Loans Same as 7(a) Loans Fast turnaround;
Streamlined
process; Easy-to-
use line of credit
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Program Maximum
Loan Amount
Percent of
Guaranty
Eligible Use of
Proceeds Maturity Maximum
Interest Rates
Guaranty Fees
(Based on Gtd.
Portion)
Who Qualifies Benefits to
Borrowers
SBA Loans to
Veterans
Processed
under SBA
Express so
same as
above limit of
$500,000
Same as
SBAExpress
Same as SBAExpress Same as
SBAExpress
Same as 7(a) Loans For all SBA Express
loans made to
veteran-owned small
businesses, upfront
guaranty fee will be
zero.
Lenders must
document in loan file
with veteran eligibility
using the
documentation to
Notice 5000-818641.
Same as 7(a) plus, small
business must be owned and
controlled (51%+) by one or
more of the following groups:
veteran, active-duty military in
TAP, reservist or National
Guard member or a spouse of
any of these groups, or a
widowed spouse of a service
member or veteran who died
during service, or a service-
connected disability.
Same as SBAExpress
and no upfront
guaranty fee.
CapLines:
1.Working Capital;
2.Contract;
3.Seasonal; and
4.Builders
$5 million Same as 7(a)
Loans
Finance seasonal
and/or short-term
working capital
needs; cost to
perform contract;
construction costs;
advances against
existing inventory
and receivables;
consolidation of
short-term debts.
May be revolving.
Up to 10 years,
except Builder’s
CAPLine, which is 5
years
Same as 7(a) Loans Same as 7(a) Loans Same as 7(a) Loans. Plus, all
lenders must execute Form
750
1.Working Capital -
(LOC) Revolving Line
of Credit
2.Contract - can
finance all costs
(excluding profit).
3.Seasonal - Seasonal
working capital
needs.
4.Builder - Finances
direct costs in
building a
commercial or
residential structure
Community
Advantage
Mission-focused
lenders only.
Expires 9/30/2024
$350,000 Same as 7(a)
Loans
Same as 7(a) Loans.
Approved CA
Lenders by SBA may
make revolving lines
of credit.
Same as 7(a) Loans 0-$50,000 Prime +
6.5% $50,001 -
$250,000 P + 6%
$250,001—
$350,000 P + 4.5%
Same as 7(a) Loans
$350,000 or less= 0%
Same as 7(a) Small Loans Same as 7(a) Plus
lenders must be CDFIs,
CDCs, micro-lender or
SBA Intermediary
Lenders targeting
underserved market.
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Program Maximum
Loan Amount
Percent of
Guaranty
Eligible Use of
Proceeds Maturity Maximum
Interest Rates
Guaranty Fees
(Based on Gtd.
Portion)
Who Qualifies Benefits to
Borrowers
International
Trade
$5 million 90% guaranty
(up to $4.5M
Max. guaranty)
(Up to $4M max.
guaranty for working
capital )
Term loan for
permanent working
capital, equipment,
facilities, land and
buildings and debt
refinance related to
international trade.
Up to 25 years.Same as 7(a)
Loans
Same as 7(a) Loans Same as 7(a) Loans. Plus,
engaged or preparing to
engage in international trade
or adversely affected by
competition from imports.
Long term financing to
allow small business to
compete more
effectively in the
international
marketplace
Export Working
Capital Program
$5 million 90% guaranty
(up to $4.5M
maximum guaranty)
Short-term, working-
capital loans for
exporters. May be
transaction based or
asset-based.Can also
support standby letters
of credit
Up to 3 years No SBA
maximum
interest rate cap,
but SBA monitors
for
reasonableness
Based on Maturity : 12
months or less: 0.25%;
Between 13 months
and 24 months:
0.525%; Between 25
months and 36 months:
0.80%. All based on
guaranteed portion.
Same as 7(a) Loans.
Plus, need short-term working
capital for direct or indirect
exporting.
Additional working
capital to increase
export sales without
disrupting domestic
financing and business
plan
Export Express $500,000. This
amount is NOT
reduced by any
SBA Express
Loan amounts.
90% guaranty for loans
of $350,000 or less;
75% guaranty for loans
greater than $350,000
Same as SBAExpress
plus standby letters of
credit. No requirement
for term out period
LOC: Max = 84 mo.;
Term loan: same as
7(a)
Same as 7(a)
Loans
Same as 7(a) Loans Applicant must demonstrate
that loan will enable them to
enter a new, or expand in an
existing export market.
Business must have been in
operation for at least 12
months s (though not
necessarily in exporting).
Fast turnaround;
Streamlined process;
Easy-to-use line of credit
Loan can be for direct or
indirect exporting.
504 Loans
Provided through
Certified
Development
Companies (CDCs)
which are licensed by
SBA
504 CDC
maximum
amount ranges
from $5 million
to
$5.5 million,
depending on
type of
business or
project.
Project costs
financed as
follows: CDC: up to
40% Lender: 50%
(Non-guaranteed)
Equity: 10% plus
additional 5% if new
business and/or 5% if
special use property
Long-term, fixed-asset
loans; Lender (non-
guaranteed) financing
secured by first lien on
project assets. CDC
loan provided from SBA
100% guaranteed
debenture sold to
investors at fixed rate
secured by 2nd lien.
CDC Loan: 10, 20 or
25-year term fixed
interest rate.
Lender Loan:
Unguaranteed
financing may have a
shorter term. May be
fixed or adjustable
interest rate
Fixed rate on 504
Loan established
when the
debenture
backed loan is
sold.
Declining
prepayment
penalty for 1/2 of
term.
Upfront guaranty fee =
0% (0 basis points).
Annual service fee =
0.4405% (44.05 basis
points) of outstanding
balance of loan.
Alternative Size Standard:
For-profit businesses that do
not exceed $15M in tangible
net worth, and do not have an
average two full fiscal year net
income over $5M.
Owner Occupied 51% for
existing building or 60% for
new construction of a
building.
Low down payment –
equity (10,15 or 20%)
(The equity may be
borrowed as long as it is
not from an SBA loan)
Fees can be financed;
SBA /CDC Portion:
Long-term fixed rate
Full amortization
No balloons
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Program Maximum
Loan Amount
Percent of
Guaranty
Eligible Use of
Proceeds Maturity Maximum
Interest Rates
Guaranty Fees
(Based on Gtd.
Portion)
Who Qualifies Benefits to
Borrowers
504 Loan
Refinancing
Program
(Permanent)
Provided through
Certified
Development
Companies (CDCs)
which are licensed
by
SBA
See Notice 5000-
808830 for
details.
Same as 504 Loan to Value
(LTV) with
Qualified
Debt(s) 90%.
For projects
that include
“Eligible
Business
Expenses
(EBE)” the LTV
is 85%. EBE
may not
exceed 20% of
the fixed asset
appraisal
value
Refinancing of
Qualified Debt (85%
of the proceeds
must have been
originally used to
acquire an Eligible
Fixed Asset), and
“Other Secured
Debt” secured by
the Eligible Fix
Asset. May include
the financing of
eligible Business
Operating Expenses
as part of the
refinancing.
Same as 504 Same as 504 Same as 504 above
except annual service
fee = 0.4405% plus
0.0145%, for a total of
0.4405% (44.05 basis
points plus 1.54 basis
points for a total of
45.59 basis points) of
outstanding balance of
loan.
Was incurred not less than 6
months prior to date of
application. Has been secured
by Eligible Fixed Asset(s) for at
least six months; May include
debt subject to a federal
guarantee under certain
conditions. Cannot be a 504
Third Party Loan which is part
of an existing SBA 504 project.
Business can access
equity in their
commercial real
estate for business
operating expenses
or refinance property
on reasonable terms.
Fees can be financed;
SBA /CDC Portion:
Long-term fixed rate
Full amortization
No balloons
Non-7(a) Loans
Microloans
Loans through
nonprofit lending
organizations;
technical
assistance
provided.
$50,000 Not applicable Working capital,
supplies, machinery
& equipment,
fixtures; etc.
Intermediary may
chose to refinance
debt. Cannot be
used for real estate.
Shortest term
possible, not to
exceed 7 years
Negotiable with
intermediary. Up
to 7.75% for loans
over $10,000 or
8.5% for loans
under $10,000
above
intermediary cost
of funds.
No guaranty fee Same as 7(a) Loans Direct loans from
nonprofit
intermediary lenders;
Fixed-rate financing;
Very small loan
amounts;
Technical assistance
available
504 Loan Program
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504 Loan Program
With Up to 90% Financing on Owner-Occupied
Commercial Real Estate
•A lender finances at least 50% of the total project
•The SBA through the CDC processing agent finances 30% to 40% of the total project
(Ameritrust CDC www.ameritrustcdc.com; Capital Matrix www.capitalmatrix.org; Evergreen Business Capital www.evergreen504.com; Northwest Business Development Association www.nwbusiness.org; Northwest Business Development Association www.nwbusiness.org; Panhandle Area Council www.pacidaho.org)
•The borrower’s capital injection is 10% to 20% of the total project
•10% for a business in operation 2+ years with a general-purpose building
•Additional 5% for a business in operation less than 2 years
•Additional 5% for a special use building (only on the first project)
•Green Projects have a maximum funding limit per transaction of $5.5 Million, but no aggregatelimit 15
How the Financing is Structured
Community Advantage
Small Business Loan Companies
and
the SBA Microlenders
16
Community Advantage Small Business Loan Companies (CASBLCs)
Loans up to $350,000
and
Microlender Loans up to $50,000
CASBLCs
Business Impact NW www.businessnw.org
Craft 3 www.craft3.org
Evergreen Business Capital www.evergreen504.com
NW Native Development Fund www.thenndf.org
Microlenders
Business Impact Northwest www.businessimpactnw.org
Ventures www.venturesnonprofit.org
SNAP (Spokane Neighborhood Action Partners) www.snapwa.org
New Roots www.newrootsfund.org
17
Office of Investment and Innovation
18
Small Business Investment Companies
19
Small Business Investment Companies
Investment capital | U.S. Small Business Administration (sba.gov)
•Debt--A typical SBIC loan ranges from $250,000 to $10 million,
with an interest rate between 9% and 16%.
•Equity--SBICs will invest in your business in exchange for a
share of ownership in your company. Typical investments range
from $100,000 to $5 million.
•Debt with equity--Financing includes loans and ownership
shares. Loan interest rates are typically between 10% and 14%.
Investments range from $250,000 to $10 million.
20
Grant Access Programs
21
About | SBIR.gov
SBIR Established in 1982, the mission of the SBIR program is to
stimulate technological innovation in the U.S. economy through
the investment of federal research and development (R&D) funds
into innovative high-tech US small businesses. The SBIR statute
requires federal agencies with extramural R&D budgets over
$100 million to set aside a percentage of their annual extramural
R&D budget for small businesses.
STTR Established ten years after the SBIR program, STTR is similar to
SBIR, except that STTR awards are made to small businesses
that pursue technological innovation through cooperative
research and development with non-profit scientific and
educational research institutions. STTR requires federal
agencies with extramural budgets exceeding $1 billion to set
aside a percentage of their annual extramural R&D budget for
SBCs that work in cooperation with universities, federally funded
research and development centers, and other non-profit scientific
and educational institutions.
22
For Small Manufacturers
23
Investing in America--Manufacturing
IAC implementation grants for small manufacturers | U.S. Small Business Administration (sba.gov)
•No cost assessments to save on energy costs at your manufacturingfacility
•The program enables small and midsized manufacturers to get ano-cost energy assessment.
•Following the assessment, manufacturers can apply to theImplementation Grants Program.
•The Implementation Grants program provides funding of up to$300,000 per project
24
New grant funding that may help lower energy costs and improve operational
productivity for small- to mid-sized manufacturing facilities
Surety Bond Guaranty Program
25
Benefits of SBA guaranteed bonds
Working capital requirement
is about half what is normally
required for contract surety
bonds.
We count the unused portion
of bank lines of credit (BLOC)
as working capital.
26
Technical Assistance Resource Partners
27
Additional Resources
28
6 SCORE chapters across Washington
www.score.org
SCORE Business Mentors
If you are an aspiring entrepreneur
or small business owner looking for:
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volunteer real-world business
executives—in-person or virtually
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webinars
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reviews
Additional Resources
29
Small Business
Development Centers
If you’re small business owner looking
for:
•Free business consulting to grow
your business
•Low-cost training on crucial topics
34 offices across Washington
https://wsbdc.org/
(833) 492-7232
6 offices across Idaho
Homepage - SBDC Idaho (idahosbdc.org)
(208) 426-3875
Additional Resources
30
If you are an aspiring or current
woman small business owner
looking for:
•Comprehensive training and
counseling on a variety of
topics in several languages
•Business advice to level the
playing field against unique
challenges or obstacles
Spokane
https://snapfinancialaccess.org
/womens-business-center/
Lacey
https://wcwb.org/
Seattle
https://businessimpactnw.org/
wwbc
Women’s Business
Centers
Additional Resources
If you are a veteran of the US
military or a military spouse in
need of:
•Counseling or transition
assistance
•Training and advice to start or
grow your business, or purchase
a new business
•Resource referrals
31
Seattle
(206)324-4330
https://businessimpactnw.org/vboc
vboc@businessimpactnw.org
Veteran’s Business Outreach Centers
Community Navigators
The Community Navigator
Program is an American Rescue
Plan initiative designed to reduce
the barriers that all small
businesses, including people
owned by disadvantaged groups
such as those owned by veterans,
women, and those in rural
communities and communities of
color, often face in accessing
critical support.
•Nimiipuu Fund
www.nimiipuufund.org
•Taala Fund
www.taalafund.org
•Urban League of Metropolitan
Seattle
www.urbanleague.org
32
Your Local SBA District Office Can Help
33
https://www.SBA.gov/WA
@SBASeattle
Spokane Branch Office
801 W. Riverside Ave., Suite 444
Spokane, WA 99201
(509)353-2800
Seattle District Office
2401 4th Ave., Suite 450
Seattle, WA 98121
(206)553-7310
infosdo@sba.gov
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Janie Sacco
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janie.sacco@sba.gov
(206)300-3863
34
From Darrol Haug: Hello EDC Commissioners
To use our time wisely this will give you a short update on the Blue-Ribbon Panel’s work. The
attachments will be handed out at the meeting, but one is an interactive model. Here is a
description of each of the attachments.
Budget Issue and BR Recommend: The top half is taken directly from the Mayors State of the City
presentation. Mayor Rosen pointed out to balance the 2024 budget the city used some “one time”
money and also had depleted $8m of reserves. The total budget gap was shown to be $20.50m. The
BR response outlined 4 ways to deal with the gap and is shown on the bottom half.
1.New non property tax revenues.
2.Expense Reductions, primarily headcount and outside consultants.
3.New taxes beyond the 1% increase the council can approve without a vote of the taxpayers.
4.Because of the time lag of the above, BRP recommended a “bridge loan” using existing city
surplus funds.
Current Taxes for Edmonds: This shows the tax rates for the various taxing districts supported by
Edmonds taxpayers. It also shows the amount of that tax for a $1m home and an estimate for all of
Edmonds. In addition to what is shown on the county tax bill the Edmonds taxes are displayed in 3
buckets.
1. EMS
2.GF $ to support Fire Services
3.Other GF amounts.
Tax Model for New Revenue: This interactive model allows inputs to be tested to show the tax rate
needed and the taxes associated with the item tested for a $1m home. It has 3 parts.
1.The top portion shows data alternatives for repaying a bridge loan and rebuilding reserves.
The model allows for testing various loan and reserve levels and allows setting the years to
pay back those amounts. Note these amounts are necessary to simply balance the budget
for 2025 and repay loans and build reserves. Also note that the bridge loan only deals with
the principle and not the interest rate payment. The model calculates the tax rates needed
and the amounts for a $1m home.
2.The middle portion shows data alternatives for various annual functions. Many of these
functions have been reduced or not fully funded in past budgets. This model shows the rate
and tax impact for a $1m home and shows a total for all items.
3.The bottom portion shows data alternatives for using bonds to support major projects. The
model is set up to create a bond ladder, much like what schools do for building new
schools. A review of the Capital Program shows cost and timing elements for our major
projects and in many cases no funding has been identified. A bonding ladder is but one way
to fund major projects. The rates and taxes associated with each item does include and
estimate for interest.
Tax Table : This shows for various priced homes the total current taxes for all districts and the
current total Edmonds Tax. The table shows the added tax needed to generate the tax amounts
displayed. Basic formula for taxes rates in Edmonds based on our total Assess Values of $15B is
$.07/1000 generates $1m. A $1m home would pay $70 for the city to raise $1m.
These docs are starting points for the work ahead to prepare a balanced budget for the years ahead.
ATTACHMENT B
Mayor Rosen’s State of the City Address. March 2024.
Identified Budget Issues
Blue Ribbon Panel Report. July 2024. Specific Suggestion on closing
the Budget Gap
Current Taxes for Edmonds
Prepared by Darrol Haug updated 5.30.2024
Current Taxes by Districts for Edmonds Shows Current Tax Bill for a $1m Home by Category
District Rate/1000 Tax $1m Home Total AV $15b
SCHOOL DISTRICT 2.73 2,730 40,950,000 The taxing Districts are listed in rank order, high to low.
STATE 2.25 2,250 33,750,000 Some line items can be increased with out a vote.
SNOH COUNTY 0.50 500 7,500,000 Some Districts have a top level maximum allowed.
SNO-ISLE LIBRARY 0.32 320 4,800,000 EMS for example has a $.50/1000 max
CEN PS REG TRANS 0.16 160 2,400,000
CITY OF EDMONDS Tot 1.02 1,020 15,300,000 GF is over $50m only $15m is from property tax
Breakdown
EMS 0.30 297 4,578,000 EMS tax can be raised to $.50/1000 or plus $3m
GF for Fire 0.38 379 5,853,228
Total For Fire 0.68 676 10,431,228 Note: SCF Rate is currently $1.26/1000
Other GF 0.34 340 4,868,772
PORT OF EDMONDS 0.07 70 1,050,000 Port of Everett taxes at 3 times the rate and does more
PUB HOSP #2 0.05 50 750,000 in the way of jobs and economic development.
TOTAL 7.11 7,110 106,650,000
Tax Calculator for New Revenue Required.
Prepared by Darrol Haug updated 7.16.2024
2025 Budget will require borrowing to balance and Reserves need to be rebuilt
Select amount and payback period and rate/1000 and tax is calculated
BUDGET ITEMS:Rate/1000 Tax $1m Home Yearly Rev Select Loan Amount and Payback period
Bridge Loan 0.13 133 2,000,000 12,000,000 Loan Amount
6 Pay Back in years
Reserves Rebuild 0.13 133 2,000,000 8,000,000 Loan Amount
4 Pay Back in years
Filling Gap Total 0.27 267
Ongoing Needs
Estimated yearly data Rate/1000 Tax $1m Home Total Rev Required Needs are examples of ongoing items not currently funded.
Bldg Maint 0.27 267 4,000,000 Enter estimate of Rev Required and rate and tax caluclated
Capital Prog 0.33 333 5,000,000
Roads 0.13 133 2,000,000
Added Fire tax 0.60 600 9,000,000 Added tax needed to pay added cost of Fire Svc.
Other 0.07 67 1,000,000
Tot for yearly items 1.40 1,400 21,000,000 Total for all items entered
To support major capital items a bond ladder like what schools do may work. Bond ladder is set to issue a new bond every 4 years.
Line Yr 1-4 runs for 20 yrs. During first 4 yr window that is the only funding for projects. In yr 5 a new bond adds the new project amounts
When each new bond is issued it adds the funding and the rate/1000 and the tax to those already in place.
In yr 21 the first bond is retired and would be replaced with a new bond.
Items listed in "Bonding Needs" are examples listed in no particular order.
Enter Bond estimaes
Potental Bonding Needs Yearly Bond Pmt Bond pd in 20 years Cum Rate/1000 Cum Tax Rate/1000 and tax calculated
(Yr 1-4) Police to Hwy 99 0.12 120 20,000,000 0.12 120 for a 20yr retirement.
(Yr 5-8) Marsh 0.06 60 10,000,000 0.18 180
(Yr 9-12) Day Lite Creek 0.18 180 30,000,000 0.36 360
(Yr 13-16) Sewer Plant 0.15 150 25,000,000 0.51 510
(Yr 17-20) Storm Water 0.09 90 15,000,000 0.60 600
Total for all Bonds 0.60 600 100,000,000
Tax Table
Prepared by Darrol Haug 7.16.2024 Mayor State of City said we need :
$6.5m to replace the ARPA funds Ongoing Need, not one time
Edmonds AV $15B $3.2m to fund the positions that were frozen
Rate/1000 to raise $1m $0.07 $3.05m to pay for Police labor contract and some other things
Subtotal $12.5m
We used $8m reserves over the last few years but this can be repaid over time. 4yr would be $2m
Edmonds tax rate/1000 $1.02 Loan to balance 2025 budget ??. Amont will have to be repaid with interest
All other taxes rate/1000 $6.09
Total tax rate/1000 $7.11 New tax revenues (millions)
Added Ed Tax 1 2 3 4 5 6 7 8 9 10
Home Values Tot Tax Current Ed Tax New Tax for Home
300,000 $2,133 $306 21 42 63 84 105 126 147 168 189 210
400,000 $2,844 $408 28 56 84 112 140 168 196 224 252 280
500,000 $3,555 $510 35 70 105 140 175 210 245 280 315 350
600,000 $4,266 $612 42 84 126 168 210 252 294 336 378 420
700,000 $4,977 $714 49 98 147 196 245 294 343 392 441 490
800,000 $5,688 $816 56 112 168 224 280 336 392 448 504 560
900,000 $6,399 $918 63 126 189 252 315 378 441 504 567 630
1,000,000 $7,110 $1,020 70 140 210 280 350 420 490 560 630 700
1,100,000 $7,821 $1,122 77 154 231 308 385 462 539 616 693 770
1,200,000 $8,532 $1,224 84 168 252 336 420 504 588 672 756 840
1,300,000 $9,243 $1,326 91 182 273 364 455 546 637 728 819 910
1,400,000 $9,954 $1,428 98 196 294 392 490 588 686 784 882 980
1,500,000 $10,665 $1,530 105 210 315 420 525 630 735 840 945 1050
1,600,000 $11,376 $1,632 112 224 336 448 560 672 784 896 1008 1120
1,700,000 $12,087 $1,734 119 238 357 476 595 714 833 952 1071 1190
1,800,000 $12,798 $1,836 126 252 378 504 630 756 882 1008 1134 1260
1,900,000 $13,509 $1,938 133 266 399 532 665 798 931 1064 1197 1330
2,000,000 $14,220 $2,040 140 280 420 560 700 840 980 1120 1260 1400
2,500,000 $17,775 $2,550 175 350 525 700 875 1050 1225 1400 1575 1750