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2025-04-10 Council Special Packet1. 2 of BbMG ti Agenda Edmonds City Council 1,00 SPECIAL MEETING/TOWN HALL BRACKETT ROOM 121 5TH AVE N, CITY HALL- 3RD FLOOR, EDMONDS, WA 98020 APRIL 10, 2025, 6:30 PM PERSONS WISHING TO JOIN THIS MEETING VIRTUALLY IN LIEU OF IN -PERSON ATTENDANCE MAY CLICK ON OR PASTE THE FOLLOWING ZOOM MEETING LINK INTO A WEB BROWSER USING A COMPUTER OR SMART PHONE: HTTPS://ZOOM. US/J/95798484261 BY PHONE: US: +1 253 215 8782 WEBINAR ID: 957 9848 4261 YOU ARE HEREBY NOTIFIED THAT A QUORUM OF CITY COUNCILMEMBERS MAY BE IN ATTENDANCE AT THIS TOWN HALL, THE DETAILS OF WHICH ARE OUTLINED IN THE AGENDA BELOW. NO COUNCIL ACTION WILL TAKE PLACE AT THIS TIME. FACTUAL PRESENTATION ON THE RFA ANNEXATION VOTE 1. Annexation Answers: What the RFA Vote Means to You (120 min) QUESTIONS FROM THE PUBLIC ATTENDING TOWN HALL IN BRACKETT ROOM WITH POTENTIAL ANSWERS FROM THE COUNCILMEMBERS PRESENT ADJOURNMENT 8:30 PM Edmonds City Council Agenda April 10, 2025 Page 1 1.1 City Council Agenda Item Meeting Date: 04/10/2025 Annexation Answers: What the RFA Vote Means to You Staff Lead: City Council Department: City Council Preparer: Beckie Peterson Background/History Town Hall meetings "Annexation Answers: What the RFA Vote Means for You" have previously been held on February 27, March 5, March 27, and April 5. Recommendation A quorum of councilmembers intend to attend this final town hall meeting; no council action. Narrative 1. Factual Presentation of the RFA Annexation Vote 2. Questions from the public attending Town Hall in Brackett Room with potential answers from the councilmembers present. Presentation slide deck and handouts attached. Attachments: RFA_presentation_final_030525 RFA_FAQ_FI NAL_022625 TownHall Chart Handout 032725 Packet Pg. 2 OV EDP � O Annexation Answers: What the RFA Vote Means to You i 1.1.a OMM[olosto __ �1II�I1141101101ni11 Amk • r-IL 0' DrIC Ln N 0 O M O I m C I _m r_ L Q al u_ a� V Q Packet Pg. 4 1 •e �.Ilk'' • 4W y'. Edmonds is a Full -Service City Police Fire/EMS (through a contract with South County Fire) Parks Streets Economic Development Public Utilities What'i*s South Cou 15 neighborhood fire stations staffed around the clock to provide prompt emergency response across more than 57 square miles in southwest Snohomish County. More than 355 uniformed firefighters are employed by South County Fire. A minimum of 70 firefighters are on duty during the day and 64 overnight. 84% of 911 calls are EMS. All firefighters are certified as either emergency medical technicians or paramedics. Responded to 38,676 emergency calls in 2024. Fir OF ED/[,o Residents' Top Priorities: Fi'0 re/EMS Services In the 2024 Community Survey,. Edmonds residents ranked ensuring fast fire and emergency medical response times as their top priority. 1.1.a TopCit Services b Im ortance Ratin Y Y p g research Next you will read a list of city services and functions provided by the City of Edmonds. After each one, please rate how important that city service is to you. ■ 7 - Extremely important ■ 5-6 ce Ensuring fast fire and emergency medical response times 094% --� Reducing petty crime and burg ary 33% 861yo Cracking down on illegal drug use and sales 24% 76�6 Maintaining parks, trails, and open spaces • • ' • 46% 90% Maintaining streets and fixing potholes 92% Stewarding the environment Planning for population growth Investing in and expanding parks, trails, and open spaces Preparing for natural disasters such as earthquakes, flooding, and major storms C112430. 75% 73% 73% 249336 Edmonds Community Survey 1 15 Packet Pg. 8 carnonas noes nui own fire der)artme nce 2010.. the city ontracted with Sc ountv Fire. Ol211KOtoKW AM 1 � i m O O Cu 0 a `�. • ' r LL . �` r 10, Cu � � J �� • x C LO P. N LO M 0 Packet Pg. 9 Under South County Fire, Edmonds residents have paid well below cost for fire and EMS s ervice, South County Fire is unabl continue the contract wit substantial cost increase. e to hout 174 Packet Pg. 10 We Have Explored Several Options Continuing a contract with SCF Starting our own fire department Using other fire/EMS providers Annexing to the Regional Fire Auth Packet Pg. 11 Annexing to South County Fiires the lowest -cost option to maintain the level and quality of our '0 emergency services. Packet Pg. 12 The Numbers Edmonds the city: property owners currently pay $0.72 per $1,000 assessed property value fire Of that $.72, $0.48 goes toward the contrac Property owners also pay $0.28 per $1,000 for an EMS levy A 2500sqft hour average assess ,e valued at $895,700, the ed value in Edmonds,, pays approximately $680.73 for fire/EMS in 2025, t The Numbers If annexation had been in effect in 2025: The rate for fire/EMS through South County Fire is $1.16 per $1,000 plus a benefit charge. The owner of a 2,500 sq ft home valued at $895,700 would have paid another $436.98 ($36.42/mo), bringing their fire/EMS cost to $1,*117,971 0 Seniors, low-income households, and people with disabilities will maintain any current exemptions they have through the county if annexation is approved (RCW: WAC 458-16A- 1401 Source: Snohomish County Assessor's Office Levy Comptroller A, J>�5.bl,i $S.00 $2.SO How Edmonds Compares to Other Cities in Snohomish CI 202S City +Fire/EMS Tax Rates' Edmonds if Annexed $1.88 y _ CU d d - = �> — LL W M LO d 3 Q c 0 a x m _ _ Q NLao _ CU CU LL maim _ - z Q Sources: Snohomish County Assessor's 2025 Annual Report and City/Fire District Data �_ 0 NUNN- - — _ Packet Pg. 15 * number does not include the benefit charge Budget Challenges Facing our Community We have been transparent about the deficit. Our situation: Years of increasing costs for services + Unfunded state mandates + Property tax revenue cap at 1 % per year = Significant fiscal emergency Packet Pg. 16 --- Rising Costs in Context Cost increases just in 2024: Insurance: +$558,000 (397c Utilities: +$34,000 (4.7%) Fuel: +$28,000 (14.2%) The city can only raise property tax revenue by 1 o per year. Totaled $106,852 in 2024 Packet Pg. 17 Addressina the Proib em v Measures to confront the defID ID icit: $6.5 million in cuts > Extensive community input > Eliminated city staff and services Borrowing money and using reserves > Funds police and services residents > Not sustainable want • .. Y �,,a /� 11, i tip.. 1 1! 1 P i _ L ■ is exarivn is app city EMS levy �inated n U • ]VA =0 0 0 04 LO C) CU — - new — - - -�- - _ - s "in+— L E — cc NMI! ` Roft. Packet F- 19 awn -sm_ - Pali,_ E gar A :3ns f iPxatinn n LJ 91919199 �U.48 mat previo, tract would enab c.%r other basic ser I=k IML 0122to] 2tok"'mio 0 -1 7=779 `� 1.1.a ME Packet Pg. 20 4-0 O.I What e 4v' Ballot Measure to Annex to South County Fire Special Election is April 22, 2025 Mill Creek, Brier, and Mountlake Terrace have taken this step If Annexation Fails The City would not have a known stable funding source to contract for fire/EMS in 2026 and beyond The City would need to raise taxes and/or implement drastic reductions in City operations to pay for the fire/EMS contract The City's ability to maintain current level of service is jeopardized Please Take Part! Attend upcoming town ha bring your neighbors and Thursday, April I Oth at 6:30pm at City Ha 4 , OV Please Take Part,', Stay Informed � OF EDP O 1� lr�� 18�0 Find an overview, FAQs, and link to the FITCH report at www.edmondswa.gov/RFA_info The city is assess you creating an online calculator to r potential costs for fire/EMS service. Follow us on Facebook @cityofedmonds 1.1.a I A10- Snohomish County Fire Districts and Regional Fire Authorities SOUTH COUNTY I FIRE 2025 Property Taxes Rates + Benefit Charge Equivalent (per $1,000) $2.50 $2.22 $2.03 $1.98 0 $2.00 $1.86 a $1.76 $1.78 $1.79 $1.84 $1.72 $1.74 w $1.51 $1.50 3 $1.29 = Q _ 0 $1.21 M $0.13 x a� $1.17 benefit charge c A equivalent Q LO N $1.0 0 $1.16 c $0.91 property taxes M C $0.76 $0.81 $0.68 • 0 d � N $0.50 L • • • Qi _ • ' E v $0.00 LOWEST HIGHEST Equivalent rate per $1,000 based on the City of Edmonds 2025 contract for fire/EMS service with South County Fire. Packet Pg. 24 5cIrmP�r. NEW mIa EDP O �O v � "-,)C. 1sc)0 Thank You! Conner` - h us'. �- www.edmondswa.gov/RFA_info RFAinf o@ed mondswa.gov :a. - dim•. - 01, F1 SeetN CIINTr FIRE What is on my April 22"d ballot? The City of Edmonds is asking voters to consider annexing to the South County Fire Regiona Fire Authority (South County Fire) for fire and emergency medical service. Why is my city proposing this? Currently, the city contracts with South County Fire for fire/EMS service. Property owners pay for the contract through a general property tax levy paid to the city. Costs continue to increase and the city cannot afford to renew the contract when it ends in 2025. Why can't the city afford higher contract costs? Edmonds faces a fiscal emergency. Years of historic inflation have outpaced revenues and contributed to a growing budget deficit. City leaders have made significant cuts, borrowe< funds, and used reserves. However, these measures are not sustainable. Annexation is a possible first step to sustainability. It will free up money from the fire contract for other basic city services such as police, roads, and parks. Is annexing to South County Fire the lowest cost option to maintain the level and quality of emergency services for Edmonds residents? Yes. The city researched starting its own fire department and reached out to other fire/EMS providers. Annexing to South County Fire was the lowest cost option to maintain the level and quality of emergency services our community receives. South County Fire also provide'. a reliable response on land or overwater to complex rescue emergencies and releases of hazardous or toxic chemicals. What does a property owner currently pay for fire service? Currently, Edmonds collects a general levy of $0.72 per $1,000 of assessed property value. The fire service contract costs $0.48/$1,000. There is also a city EMS levy of $0.28/$1,000. A house with an assessed value of $895,700, considered the average in Edmonds, pays approximately $680.73 for fire/EMS in 2025. What would a property owner pay under annexation for fire/EMS services? Under annexation, property owners would pay South County Fire directly for service and thi city EMS levy would be eliminated. In 2025, the rate for fire/EMS through South County Fire is approximately $1.16 per $1,000 plus a "benefit charge". If annexation were in effect today, the owner of a 2,500-square-foot house valued at $895,700 would have paid a net increasE of $436.98 ($36.42 per month). The annual total for the same property would be $1,1 17.71. What happens to the $0.48/$1,000 property owners are currently paying for the contract. - The city will retain this amount to use toward services such as its police department, roads, and parks. What is a benefit charge? A fire benefit charge moves away from the traditional assessed value/property tax funding model. It funds emergency services based on a property's size and risk of fire instead. Single-family homes are charged less than commercial and high -fire risk structures because it costs less to serve them in a fire. Learn more about the benefit charge at https://www. southsnofire.org/about-us/funding/benefit-charge. If approved, when will annexation take effect? Property owners would begin paying South County Fire directly in 2026. What happens to the city's EMS levy? The city EMS levy would be eliminated. Instead, property owners would pay an EMS levy to South County Fire. Packet Pg. 27 LO N to N N O I J Q z al Q U_ QI as E CU r w Q Will this impact service when I call 911? No. The quality and level of emergency services our community receives will continue uninterrupted. What happens to our fire stations and apparatus? South County Fire already owns all the emergency apparatus. Stations 16 (Maplewood) and 20 (Esperance) will eventually be part of South County Fire's capital assets. Station 20 needs to be replaced at an estimated cost of $20 million. Station 17 (downtown Edmonds) would remain the city's property and would be used by South County Fire at no charge as long as it remains a fire station. Will firefighters lose their jobs? No. All emergency personnel will continue to work for South County Fire, just like they do now. This is important to maintain service levels for our community. Why did the city choose South County Fire? • Least expensive option to maintain the level and quality of emergency services residents currently receive. • Gives residents a vote and direct representation on South County Fire's Board of Fire Commissioners. • South County Fire knows Edmonds and has served the city successfully for 15 years • The ability to plan long-term for emergency services as our city grows. • More cost-effective for taxpayers with economies of scale and buying power for emergency apparatus, equipment and supply orders. Why can't we just renew the fire services contract? Edmonds signed a contract many years ago when costs for emergency services were much lower. The contract could not be renewed unless Edmonds property owners pay the same rate as property owners in other communities served by South County Fire. The city cannot afford this increase and still provide other city services residents require due to its budget constraints. Where is South County Fire located? South County Fire is headquartered south of Everett and serves nearly 300,000 residents in Brier, Edmonds, Lynnwood, Mill Creek, Mountlake Terrace, and unincorporated southwest Snohomish County. Have other cities annexed into South County Fire? Yes. South County Fire was created by a merger of former Snohomish County Fire District 1 and the city of Lynnwood. Since then, voters in the cities of Mill Creek, Mountlake Terrace and Brier have annexed to South County Fire. Can South County Fire increase taxes on annexed cities whenever they want to? No. South County Fire has revenue limits by law or those that must be approved by voters. Will I still receive my property tax discounts if annexation into South County Fire is approved? Yes, seniors, low-income households, and people with disabilities will maintain any current exemptions they have through the county if annexation is approved (RCW: WAC 458-16A-140). This also applies to the benefit charge. Source: Snohomish County Assessor's Office Levy Comptroller Will residents be able to influence decisions related to our fire/EMS service? Residents will have the opportunity to vote for representatives to serve on South County Fire's Board of Fire Commissioners. Residents can also run to serve as a fire commissioner. Have further questions? Email RFAinfo@ed Packet Pg. 28 LO N to N N 0 I J Q z LL al Q LL I Q m E a $3.50 $3.00 $2.50 1 $2.00 $1.50 $1.00 1 How Edmonds Compares to Other Cities in Snohomish County 202S City + Fire/EMS Tax Rates* Edmonds if Annexed $1.88 Edmonds now $1.00 Sources: Snohomish County Assessor's 2025 Annual Report and City/Fire District Data *numbers do not include the benefit charge which is $78.70 on a 2500 sq ft home I� Snohomish County Fire Districts and Regional Fire Authorities 2025 Property Taxes Rates + Benefit Charge Equivalent (per $1,000) $2.50 $2.03 $ 2.00 S19e S� S� ■. $1 76 Sl 7z 11 7a a. r C • • N 7 c Ua N 00 _ L� C«`~ �tY WU 2 O N i u0 N r• N M O LOWEST HIGHEST *equivalent rate per $1000 based on the City of Edmonds 2025 contract for fire/EMS service with South Co Packet Pg. 29