2020/02/26 Council Agenda Packet

Everett Transit 0.3% Sale Tax Increase or Merger with Community Transit A sales tax increase or merger between Everett Transit and Community Transit would require simple majority voter approval. Impact on the Structural Deficit- Everett Transit is a non-general government operation; therefore, raising its dedicated sales tax rate will not impact the General Government's structural deficit. A merger with Community Transit, however, will reduce the General Government's cost allocation revenue for services it provides to Everett Transit. The total amount of costs allocated to Everett Transit varies year-over-year based on demand for support services. The five-year average annual cost allocation charged to Transit is approximately$573,000. Indirect Cost Impact- Indirect costs are associated with services provided by Facilities, Finance, HR, IT, and Legal. Eliminating responsibility for Everett Transit through a merger with CT would not reduce the workload sufficiently to consider a reduction in staffing. However, HR may be able to reorganize and exchange an HR Manager position for a lower-level HR Assistant position, which could result in approximately$92,000 in annual savings for the General Government, which would only partially offset the loss of cost allocation revenue. Recommendation—In 2019,City Council,Administration,and Transit staff invested significant time and effort studying options for the future of mass transit in Everett. Therefore, it is recommended that the process to determine the best path for Everett Transit continue in accordance with the direction set at the December 18,2019,Council meeting. However, it will be important to consider and coordinate the possibility of competing City of Everett ballot measures with associated deficit reduction options. mom L Alternative Service Delivery/Funding Models Wage