2017/09/06 Council Agenda Packet

6 TDP 2017—SECTION X FOOTNOTES (1)Sales tax revenue is right on track for the 2017 budget. Projected growth from 2018 to 2022 ranges from 3.3% in 2018,to 1.7%in 2019,to 1.5%for 2020-2022. (2) Farebox actual revenues have continued to decrease over the past few years;therefore,2018 projections are decreased and remain flat through 2022. (3) EHB 2163,Washington State 2017-2019 budget,eliminated streamlined sales tax for transit agencies as of July 1,2017. It also established internet sales tax,effective January 1,2018. Projections for internet sales tax 2018- 2022 are provided by Washington State OFM. (4)The application of FTA formula grant funds is included in FTA preventive maintenance for the years 2020-2022 since no particular capital purchases have been identified as of this report. (5)There is a significant growth in State operating grants for 2016—2018 due to Everett In Motion. Projections for 2019-2022 return to pre-program levels. (A) Costs are expected to grow at an average rate of 2%per year through 2022. (B)Everett Transit and Community Transit entered into an interlocal agreement from December 2007 through December 2022 to share sales and use tax at 0.005%of sales=and use activity in the City of Everett. This tax share therefore fluctuates according to sales and use activity as projected in sales tax(1). (C)Administrative expenses include Everett In Motion in 2016-2019. Growth is expected to be at an average annual rate of 2%from 2020-2022. (D)Transfers are made from operating reserves to capital reserves as required for local match of anticipated federal grant funds. * ET has adopted Resolution 5513 that requires a fund balance of 20%of operating revenues.This resolution applies specifically to general government but governs ET budget projections.Current projections maintain that balance within the 20%target through 2018. Beyond 2018,sales tax revenues are conservative and adjustments will be made according to the actual sales tax revenue received to ensure that requirement is met. * ET projects expenditures in both operations and capital/projects within the constraints of reasonably identifiable funding sources.Without an-identified source for capital experiditures,projects-in Section VIII are not included in Section X. - *In year 2017, Everett Transit is in the process of purchasing property in the amount of$4 million to add additional park&ride and to expand the Operations Base. It is expected to utilize grant funding to assist in building/remodeling an operations base-and operations site for electric buses. Everett Transit 2017 TDP 12 49