>>> THANK YOU FOR JOINING THE
MEETING. TODAY IS NOVEMBER
30th, 2023, I AM TERESA
MOSQUEDA. PLEASE CALL THE ROLL.
>> COUNCILMEMBER LISA HERBOLD.
>> HERE.
>> PRESIDENT DEBORA JUAREZ .
>> HERE.
>> COUNCILMEMBER ANDREW LEWIS.
>> PRESIDENT. COUNCILMEMBER
NELSON.
>> COUNCILMEMBER ALEX PEDERSEN.
>> HERE.
>> COUNCILMEMBER KSHAMA SAWANT.
COUNCILMEMBER DAN STRAUSS.
>> PRESENT. SEVEN PRESENT .
OKAY .
>> TODAY IS THE LAST DAY OF THE
MEETING, I THINK WE HAVE DONE
OUR THANK YOU'S AND ALL THE
WORK WE HAVE ALREADY
ACCOMPLISHED THIS YEAR SO,
MADAM PRESIDENT I WILL SUSPEND
MY THANK YOU'S FOR THIS LAST
MEETING BUT EMPHASIZE MY
APPRECIATION FOR ALL OF YOU. WE
HAVE TAKEN ON A LOT THIS YEAR.
TODAY ON THE AGENDA WE WILL
DISCUSS AND POSSIBLY VOTE ON
RESOLUTION 32116 . CB 120716,
AND CB 120717, ALSO LISTED ON
THE AGENDA IS DISCUSSION ONLY
ON CB 120602 AND CB 120601 .
THESE ARE THE WATER TAX REPEAL
BILL AND CAPITAL GAINS TAX,
WHICH I WILL MAKE SOME COMMENTS
ON IN A SECOND . IF THERE ARE
NO OBJECTIONS TODAY'S AGENDA
WILL BE ADOPTED . THING NO
OBJECTION, THE AGENDA IS
ADOPTED . I DON'T SEE ANYONE
SIGNED UP REMOTE THE FOR PUBLIC
COMMENT . WE HAVE ONE PERSON IN
THE ROOM. OKAY, NO ONE IS SIGN
UP, THANK YOU. WITH THAT WE
WILL JUMP RIGHT INTO IT.
COLLEAGUES, WE HAVE A NUMBER OF
ITEMS WE WILL BE DISCUSSING ON
TRACK TWO FOR TODAY 'S AGENDA.
COULD YOU READ ITEM 1 INTO THE
RECORD.
>> RESOLUTION 32116. A
RESOLUTION RELATING TO THE
CITY'S ANNUAL BUDGET PROCESS,
UPDATING MODIFIED BIENNIAL
BUDGETING PROCESSES,
ESTABLISHING GUIDELINES FOR
MID-YEAR BUDGET CHANGES,
ESTABLISHING DATA SHARING AND
REPORTING REQUIREMENTS, AND
SUPERSEDING RESOLUTIONS 28885
AND 31954.
>> THANK YOU . DO YOU MIND
READING IN ITEM NUMBER TWO AND
AS WELL.
>> AND ORDERS RELATED TO THE
ESTABLISHMENT OF A FISCAL
PROGRAM REQUIRING PERIODIC AND
CONSISTENT REPORTING OF CITY
BUDGETARY FINANCIAL AND FISCAL
POLICY INFORMATION TO THE CITY
COUNCIL ADDING A NEW CHAPTER
AND AMENDING OF THE MEDIA
CIVIL CODE AND REPOSTING
CODIFIED CHAPTER 5.08 OF THE
MUNICIPAL CODE AND SUBCHAPTER
ARE ONE. FOR BRIEFING
DISCUSSION AND POSSIBLE VOTE .
>> THANK YOU. TODAY WITH US WE
HAVE STAFF TO PROVIDE
ADDITIONAL INFORMATION OR
BACKGROUND AS A REMINDER ON
THESE LEGISLATION. THESE ARE
TWO POLICIES WE HAD DONE
EARLIER THIS YEAR THANKS TO
CENTRAL STAFF ON THIS WORK TO
THIS LEGISLATION. THANK YOU TO
THE CITY BUDGET OFFICE FOR THE
COLLABORATION . THERE IS A
RESOLUTION IN FRONT OF US TO
REFLECT CURRENT PRACTICES FOR
THE BUDGET PRACTICE AND AN
OPPORTUNITY THROUGH LEGISLATION
TO CREATE FISCAL TRANSPARENCY
PROGRAM WITHIN THE MUNICIPAL
CODE TO CODIFY CERTAIN
TRANSPARENCY REPORTING
REQUIREMENTS . THE INTENT OF
THESE ITEMS IS A PACKAGE TO
MEMORIALIZE THE POLICY AND
PRACTICES THAT DISCUSSED THAT
THAT WORKGROUP THAT THE CITY
BUDGET OFFICE AND STAFF
PARTICIPATED IN AS A RESULT OF
A STATEMENT OF LEGISLATIVE
INTENT THAT I SPONSORED IN
2022. THE WORK WAS COMPLETED IN
2023 AND IN FRONT OF US WE HAVE
PART OF THOSE RECOMMENDATIONS.
I WILL TURN IT OVER TO CENTRAL
STAFF FOR ADDITIONAL
INFORMATION.
>> GOOD MORNING. BUDGET
COMMITTEE MEMBERS. I IN ESTHER
HANDY, THE BUDGET PROCESS
RESOLUTION RESOLUTION 32116 IS
THE FIRST BILL IN FRONT OF YOU.
IT DOES FOUR THINGS AND THERE
IS ONE AMENDMENT FOR
CONSIDERATION . I WILL DO A
BRIEF SUMMARY OF THOSE ITEMS
THEN MOVED TO THE AMENDMENT.
THE PROCESS RESOLUTION REPLACES
AND SUPERSEDES RESOLUTION, IT
WAS ADOPTED IN 1994 AND DEFINED
THE CITIES MODIFIED BY AN WILL
BUDGET PROCESS. THE RESOLUTION
CONTINUES THE PRACTICE OF
CONSIDERING TWO BUDGET YEARS
TOGETHER. SECOND THE
RESOLUTION TO FIND THE TYPES OF
ALLOWABLE MIDYEAR BUDGET
CHANGES THROUGH AN ANNUAL
CARRYFORWARD, MIDYEAR AND YEAR
END SUPPLEMENTAL BILLS AND RENT
APPROPRIATION BILLS AND TO FIND
THE CADENCE OF THOSE THROUGHOUT
THE YEAR. THIRD, A CHART A PATH
TO ITS NEW PASSAGES FOR THE
PLANNING RESERVES AND A CURRENT
YEAR FINANCIAL REPORTING
PROGRAM FOR THE CITY THAT WILL
BUILD ON THE CURRENT FINANCIAL
MONETARY PILOT THAT THE CITY
BUDGET OFFICE AND FINANCE HAVE
ROLLED OUT THIS YEAR WITH CITY
DEPARTMENTS AND EXPECTS TO BE
OPERATIONAL BY 2025 . THAT IS A
BRIEF SUMMARY OF THE RESOLUTION
THAT WE WALKED THROUGH IN MORE
DETAIL ON NOVEMBER 15th . I AM
HAPPY TO TAKE QUESTIONS TO
DESCRIBE THE AMENDMENT. DEPUTY
DIRECTOR THERE COULD YOU PUT
AMENDMENT ONE UP, I SEE A
QUESTION. THEN WE CAN DESCRIBE
THE RESOLUTION IN RETURN TO
MOVING IT. COUNCILMEMBER NELSON
.
>> I HAVE NOW ARRIVED FROM THE
URBAN LEAGUE RUCKUS . SORRY FOR
BEING LATE .
>> THANK YOU, HAPPY TO HAVE YOU
WITH US. I WILL DESCRIBE
AMENDMENT 1, THIS IS SPONSORED
BY COUNCILMEMBER ALEX PEDERSEN
AND WOULD ADD A NEW SECTION TO
THE RESOLUTION REQUESTING A
BRIEFING FROM EXECUTIVE
DEPARTMENTS ON CENTRAL RATES
AND COST CHANGES FOR THE NEXT
BIENNIUM. CENTRAL RATES COVER
INTERNAL SERVICES, LIKE I.T.,
HR AND FACILITIES. AND THE COST
FOR THOSE ARE CHARGED
INTERNALLY TO OTHER CITY
DEPARTMENTS THAT WOULD RECEIVE
SERVICES FROM THOSE OTHERS. THE
COUNCIL HAS A STRONG
UNDERSTANDING OF SOME OF THESE
COSTS, LIKE RETIREMENT AND
HEALTHCARE, OTHERS ARE MORE
COMPLEX AND THE OPPORTUNITY IS
TO IMPROVE THE COUNCIL AND
PUBLIC'S UNDERSTANDING OF THE
COST OF INTERNAL SERVICES, HOW
THOSE TRANSLATE INTO INTERNAL
RATES, WITH ULTIMATELY THE GOAL
OF IT BEING ABLE TO BETTER
ASSESS THE APPROPRIATE FUNDING
LEVELS TO SUPPORT THESE
SERVICES . THE AMENDMENT
REQUESTS A REPORT TO THE
FINANCE COMMITTEE BY APRIL
30th.
>> I WILL TURN IT BACK TO YOU,
CHAIR.
>> THANK YOU, SO MUCH. I DO SEE
ONE PERSON SIGNED UP FOR PUBLIC
COMMENT THAT WE MAY HAVE
MISSED. I JUST WANT TO CONFIRM
THEY AREN'T WAITING IN THE
WINGS . I WOULD BE HAPPY TO GO
BACK HERE THEIR PUBLIC COMMENT.
>> IT LOOKS LIKE THEY ARE
ONLINE. HANG ON.
>> I AM SORRY, WHAT WAS THAT?
>> IT WOULD APPEAR THEY ARE
ACTUALLY CALLING HIM . HOLD ON.
>> I WILL SUSPEND THAT PORTION
OF THE DISCUSSION TO HEAR FROM
THE ONE PERSON WHO HAS SIGNED
UP FOR PUBLIC COMMENT TODAY
GIVEN THAT WE MOVE THROUGH THAT
QUICKLY. AS SOON AS THEY ARE
AVAILABLE YOU ARE ABLE TO
ADMIT, YOU ARE WELCOME TO
PROVIDE PUBLIC COMMENT . WE
WILL DO TWO MINUTES, PETER.
>> GOOD MORNING. THANK YOU. I
AM VICE PRESIDENT OF THE
AMERICAN WATERWAYS OPERATORS.
WE HAVE BEEN AROUND FOR 80
YEARS. YES, WE ARE A LYNCH PIN
OF THE WATER FIRE SPEAKING OUT
IN OPPOSITION TO THE INCREASE
OF THE CAPITAL GAINS? THE TAXES
ARE UNNECESSARY, AS YOU KNOW
THE BUDGET HAS INCREASED $1
BILLION SINCE 2010, WHICH IS
TWICE THE RATE OF INFLATION AND
THE POPULATION HAS ONLY
INCREASED 10% . THIS WOULD BE
MORE MONEY TO SPEND ON
INEFFICIENT UNPOPULAR PROJECTS.
WE ASK YOU TO SHELVE THIS IDEA
AND FOCUS ON OTHER TAXES, AND
PREFER OTHER SOURCES TO SOLVE
THE CITY'S PROBLEMS . THANK
YOU.
>> OKAY, THANK YOU SO MUCH. WE
WILL COME BACK TO THAT . THANK
YOU SO MUCH. I DON'T SEE ANYONE
ELSE SIGN UP SO PEOPLE CLOSE
PUBLIC COMMENT AT THIS POINT .
THANK YOU SO MUCH . IF ANYONE
WOULD LIKE TO PROVIDE PUBLIC
COMMENT YOU CAN DO SO BY GOING
TO YOUR EMAIL AND SENDING AN
EMAIL TO'S COUNSEL SEATTLE
AT.GOV. WITH THAT, THE ITEM HAS
BEEN DESCRIBED BY CENTRAL STAFF
. WE DO HAVE AN AMENDMENT THAT
COUNCILMEMBER ALEX PEDERSEN
BROUGHT TO OUR INITIAL
DISCUSSION . I WILL BE VOTING
YES ON THIS. COUNCILMEMBER ALEX
PEDERSEN WOULD YOU LIKE TO MOVE
YOONAL DESCRIPTION?
>> THANK YOU, COLLEAGUES, I
MOVED THIS AMENDMENT TO
RESOLUTION RESOLUTION 32116 AS
SHOWN ON THE AGENDA.
>> SECOND .
>> THANK YOU.
>> WOULD YOU LIKE TO DESCRIBE
YOUR AMENDMENT IN MORE DETAIL?
>> THANK YOU, I APPRECIATE
WORKING WITH CENTRAL STAFF ON
THIS. I APPRECIATE THE WORK
THEY DID DURING THE BUDGET
PROCESS TO GET AS MUCH
INFORMATION AS POSSIBLE ON HOW
THESE CENTRAL SERVICES COSTS
ARE CALCULATED AND ALLOCATED,
WE KNOW IT IS A BASELINE OF
ABOUT $500 MILLION AND WE
INDOORS THE BUDGET 12 MONTHS
AGO AND THEN CAME THE $17
MILLION INCREASE OF LOVE THAT
500 MILLION DOLLARS BASELINE,
AS WE WERE TRYING TO GET MORE
MONEY OUT THE DOOR TO THE
COMMUNITY FOR DIFFERENT
PRIORITIES, WE WANTED TO SEE IF
THERE WAS ANY EFFICIENCY THAT
WE COULD DASH BACK FROM WHICH
WE COULD GET MORE MONEY. WHAT
WE LEARNED IS WE NEED MORE
INFORMATION. THERE NEEDS TO BE
MORE TRANSPARENCY ABOUT THIS
AND THIS AMENDMENT CRAFTED IN
COLLABORATION WITH CENTRAL
STAFF WILL HELP THEM TO GET
THAT INFORMATION. SO I HOPE YOU
ALL SUPPORT IT .
>> THANK YOU. I WILL ALSO BE
SUPPORTING THIS AMENDMENT
TODAY. I APPRECIATE THE WORK OF
CENTRAL STAFF TO CRAFT THIS.
FOR MY COLLEAGUES ENGAGEMENT ON
THIS LEGISLATION I THINK THIS
IS ONE ADDITIONAL WAY WE CAN
CONTINUE TO GET INFORMATION
FROM THE CITY BUDGETS OFFICE IN
REAL TIME . MANY THINGS I WAS
HOPING TO ACCOMPLISH IN OUR
BUDGET RELATED TO ANNUAL
BUDGETING, REAL-TIME DATA ON
WHETHER OR NOT THERE IS
VACANCIES WITHIN DEPARTMENTS
AND INFORMATION LIKE THIS THAT
THE COUNCILMEMBER IS BRINGING
FORWARD WILL HELP FUTURE
COUNCILS TO HAVE ACCURATE AND
UP TO DATE INFORMATION AS THE
FINAL BUDGETS ARE CONSTRUCTED .
I APPRECIATE YOUR WORK ON THIS
COUNCILMEMBER ALEX PEDERSEN.
ARE THERE ANY ADDITIONAL
COMMENTS? HEARING NONE .
MADDING CLERK, COULD YOU CALL
THE ROLL -- MADAM CLERK, COULD
YOU CALL THE ROLL .
>> I WANT TO MAKE SURE THAT YOU
HAVE MOVED THE UNDERLYING
RESOLUTION THAT YOU ARE
AMENDING IN FRONT OF YOU.
>> OKAY, LET ME DO THAT.
>> I SECOND IT .
>> I DIDN'T KNOW THE UNDERLYING
LEGISLATION .
>> IC .
>> I MOVE THE COMMITTEE
RECOMMENDED ADOPTION THE
RESOLUTION 32116 IS THERE A
SECOND?
>> SECOND .
>> THANK YOU. COUNCILMEMBER
ALEX PEDERSEN WOULD YOU LIKE TO
MOVE TO THE AMENDED THE
RESOLUTION.
>> I MOVE THE AMENDMENT TO
RESOLUTION 32116 AS SHOWN ON
THE AGENDA.
>> SECOND.
>> THANK YOU. ANY ADDITIONAL
COMMENTS? HEARING NO COMMENTS
MADAM CLERK COULD YOU CALL THE
ROLL.
>> COUNCILMEMBER LISA HERBOLD.
>> YES.
>> COUNCILMEMBER DEBORA JUAREZ.
>> YES.
>> ANDREW LEWIS .
>> YES.
>> COUNCILMEMBER TAMMY MORALES.
COUNCILMEMBER TAMMY MORALES?
COUNCILMEMBER NELSON?
>> YES.
>> COUNCILMEMBER ALEX PEDERSEN.
>> AYE.
>> COUNCILMEMBER KSHAMA SAWANT.
COUNCILMEMBER DAN STRAUSS.
>> YES .
>> TERESA MOSQUEDA?
>> AYE.
>> NONE OPPOSED.
>> MY APOLOGIES. I VOTE AYE .
>> EXCELLENT.
>> EIGHT IN FAVOR NONE OPPOSED.
I AM SORRY, COUNCILMEMBER TAMMY
MORALES IS FEELING UNDER THE
WEATHER. IF YOU NEED TO LEAVE
WE WILL UNDERSTAND . ALSO,
COUNCILMEMBERS KSHAMA SAWANT
OFFICE LET US KNOW SHE WOULD
NEED TO BE HERE TODAY. SO THE
MOTION WILL CARRY. MADAM CLERK
I DON'T SEE ANY ADDITIONAL
HANDS . COULD YOU CALL THE ROLL
ON THE ADOPTION OF THE
RESOLUTION.
>> COUNCILMEMBER LISA HERBOLD .
>> YES.
>> COUNCILMEMBER DEBORA JUAREZ.
>> YES.
>> COUNCILMEMBER ANDREW LEWIS .
>> YES.
>> TAMMY MORALES.
>> YES.
>> COUNCILMEMBER NELSON.
>> AYE.
>> COUNCILMEMBER ALEX PEDERSEN
.
>> YES.
>> COUNCILMEMBER TAMMY MORALES.
>> YES.
>> CHAIR, TERESA MOSQUEDA .
>> YES .
>> AND WE HAVE READ ITEM
NUMBER TWO INTO THE RECORD .
THIS GOES TOGETHER WITH THE
ITEM WE JUST ADOPTED . I WANT
TO THANK ESTHER HANDY WHO HAS
BEEN WORKING ON THIS IN
PARTNERSHIP WITH CENTRAL STAFF
IN ADDITION TO THE FOLKS FROM
THE CITY BUDGETS OFFICE, AS WE
HAVE ASKED FOR THE WORKGROUP TO
IDENTIFY WAYS TO ENHANCE OUR
FISCAL TRANSPARENCY AND BUDGET
PROCESS . CENTRAL STAFF HAS
BEEN WORKING DILIGENTLY TO MOVE
THOSE RECOMMENDATIONS INTO
LEGISLATIVE ACTION AND INCLUDE
THOSE IN THE TRACK TO APPROACH
FOR THE 2024 BUDGET PROCESS.
THIS WILL ALLOW US TO HAVE
ONGOING POLICIES THAT DON'T
ONLY AFFECT 2024 BUT OVERALL
BUDGETING AND TRANSPARENCY FOR
PERPETUITY. I WANT TO THANK YOU
ALL FOR YOUR WORK ON
RESOLUTIONS, WHAT WE HAVE IN
FRONT OF US WITH THE NEXT ITEM
IS AN OPPORTUNITY TO MOVE
FORWARD ON FINALIZING THE
RECOMMENDATIONS FROM THAT
RECOMMENDATION. IF YOU HAVEN'T
HAD A CHANCE TO READ IT, AGAIN,
THIS IS A REPORT THAT CAME TO
THE COMMITTEE MEETING THIS YEAR
AND MOVING FORWARD WITH THIS
PACKAGE WILL HELP US MOVE IN A
BIANNUAL BUDGET DIRECTION
INCLUDING THE NEW REVIEW AS THE
DIRECT ARE NOTED, IT SETS THE
CADENCE FOR MIDYEAR CHANGES,
AND END OF YEAR SUPPLEMENTAL
AND GRANT ACCEPTANCE PROCESS
AND THE FINDS PLANNING
RESERVES, INCLUDING EXPLORING
THE CREATION OF APPROPRIATE
RISK RESERVE THAT IS
OPERATIONALIZED IN THE
2025-2026 BUDGET . SO
CONTINUING THAT THEME OF FISCAL
TRANSPARENCY AND DISCUSSIONS WE
HAVE HAD WITH CENTRAL STAFF,
THIS IS THE FINAL APPROACH THAT
HELPS US AS DECISION-MAKERS
HAVE ACCESS TO INFORMATION IN A
QUICKER WAY AND IN A
TRANSPARENT WAY THAT WILL ALLOW
FOR US TO HAVE ACCESS TO
DETAILS EARLIER IN THE BUDGET
PROCESS, SO WE AREN'T FINDING
WHERE THERE MIGHT BE ADDITIONAL
POCKETS LATER IN THE PROCESS,
AS MANY HAVE EXPERIENCED. I AM
EXCITED FOR THIS OPPORTUNITY.
THIS IN PARTNERSHIP WITH THE
REVENUE STABILIZATION WORK
GROUP THAT WILL HAVE FUTURE
WORK TO COME ON HOW WE CAN FREE
UP ADDITIONAL REVENUE AND THE
REVENUE FORECAST COUNCIL THAT
WE CREATED, I THINK ALL OF
THESE COMPONENTS ARE IMPORTANT
AS WE THINK ABOUT THE CITY'S
FISCAL PLAN OVER THE NEXT SIX
YEARS AND HOW WE CREATE A MORE
TRANSPARENT BUDGETING PROCESS.
WITH THAT, ESTHER HANDY, DID
YOU HAVE ANYTHING TO ADD TO
THIS ITEM?
>> I WILL JUST ADD FOR ITEM
NUMBER TWO, SOME OF IT REPEATS
WHAT IS IN DIFFERENT PARTS OF
THE CODE BUT IT ESTABLISHES THE
PROGRAM INTO A SINGLE SECTION
OF THE CODE , CONSOLIDATING
EXISTING REPORTING INFORMATION
ON PAST AND CURRENT AND FUTURE
ACTIVITIES AND IS A SECTION OF
THE CODE THAT COULD BE GROWN
OVER TIME AS HE COUNCIL AND
EXECUTIVE CONTINUE DISCUSSIONS
ABOUT BUDGETING AND FINANCIAL
PRACTICES. IT ALSO UPDATES THE
DIRECTOR AUTHORITY TO TRANSFER
FUNDS.
>> EXCELLENT, THANK YOU. ARE
THERE ANY OTHER QUESTIONS,
COLLEAGUES? OKAY, I WILL MOVE
THIS LEGISLATION IN FRONT OF US
. I MOVE THE PASSAGE OF CB
120716, IS THERE A SECOND ?
>> SECOND.
>> ARE THERE ANY ADDITIONAL
COMMENTS ON THE LEGISLATION IN
FRONT OF US? HEARING NINE,
MADAM CLERK WILL YOU CALL THE
ROLL ON THE RECOMMENDATION TO
PASS CB 120716.
>> COUNCILMEMBER LISA HERBOLD.
>> YES.
>> COUNCIL PRESIDENT DEBORA
JUAREZ .
>> AYE.
>> ANDREW LEWIS .
>> YES.
>> COUNCILMEMBER TAMMY MORALES.
>> YES.
>> COUNCILMEMBER NELSON .
>> AYE.
>> COUNCILMEMBER ALEX PEDERSEN.
>> AYE.
>> COUNCILMEMBER DAN STRAUSS .
>> YES.
>> TERESA MOSQUEDA .
>> YES. THE BILL WILL BE SENT
TO THE CITY COUNCIL FOR A FINAL
VOTE . THAT IS A BIG DEAL .
THAT HAS BEEN FOUR YEARS IN THE
WORKS SO WE ARE REALLY EXCITED
ABOUT THIS. WE WANT TO SHARE
THIS INFORMATION WITH THE
PUBLIC. I KNOW WE ARE ALL
TIRED, WE WERE DONE WITH THIS
PROJECT, BUT THIS IS A REALLY
BIG DEAL. I JUST WANT TO SAY
THANK YOU TO EVERYBODY WHO PUT
THIS IN MOTION, IT HAS BEEN A
MULTIPLE YEAR PROCESS AND
HOPEFULLY WE CAN BUILD ON THIS.
SO, THANK YOU FOR HELPING TO
INCREASE TRANSPARENCY AND
ACCESSIBILITY TO THE MEMBERS OF
THE PUBLIC AND FUTURE COUNSEL
LEGISLATORS WHO WILL SIT IN
THESE SEATS. WE WANT TO
CONTINUE TO IMPROVE THIS
PROCESS. THERE HAS TO BE
GREATER ACCESSIBILITY TO THE
INFORMATION AND ADDITIONAL
DETAIL, WE WILL ONE YEAR HAVE A
BUDGET BILL THAT ALLOWS FOR YOU
TO SEE LINE ITEMS, STRIKING OUT
CHANGES AND YOU CAN SEE THE
DOLLAR AMOUNT INCREASING OR
DECREASING. BUT, I APPRECIATE
THE WORK WE HAVE BEEN ABLE TO
ACCOMPLISH AND LOOK FORWARD TO
HEARING HOW THESE EVOLVE IN THE
FUTURE. WITH THAT, MADAM CLERK
COULD YOU READ ITEM NUMBER
THREE INTO THE RECORD.
>> CB 120717. AN ORDINANCE
RELATING TO HUMAN SERVICES
CONTRACTS THAT INCLUDE
APPROPRIATED MONEY EXPRESSLY
RESERVED FOR THE PURPOSE OF
HUMAN SERVICES PROVIDER PAY,
REQUIRING THAT SUCH
APPROPRIATED MONEY BE USED ONLY
FOR WAGE INCREASES FOR HUMAN
SERVICES WORKERS THAT ARE IN
ADDITION TO INFLATIONARY
ADJUSTMENTS, ESTABLISHING
CONTRACTING AND REPORTING
REQURIEMENTS REGARDING USE OF
SUCH APPROPREATED MONEY, AND
ADDING A NEW CHAPTER 20.61 AND
SECTION 20.61.10 TO THE SEATTLE
MUNICIPAL CODE.
>> THANK YOU. COUNCILMEMBER
LISA HERBOLD , AS VICE CHAIR OF
THIS COMMITTEE, SPONSOR OF THIS
LEGISLATION, WHICH YOU LIKE TO
MOVE THE LEGISLATION IN FRONT
OF US?
>> ABSOLUTELY. I WOULD LIKE TO
MOVE CB 120717 .
>> I SECOND. THANK YOU,
COUNCILMEMBER LISA HERBOLD . I
WANT TO WELCOME JEN LABRECQUE
WHO IS HERE WITH US FROM
CENTRAL STAFF. WOULD YOU LIKE
TO ADD ANY CONTEXT THEN WE WILL
HAVE CENTRAL STAFF WALK US
THROUGH IT . COUNCILMEMBER,
LISA HERBOLD WOULD YOU LIKE TO
GO FIRST .
>> I WOULD LIKE TO NOTE THAT
IT IS PROBABLY A FUNCTION OF
YOU BEING BUDGET CHAIR, BUT I
AM NOT IN THE LEGISLATOR LISTED
AS A SPONSOR, AS LEAST AS FAR
AS I CAN SEE . I JUST WANT TO
LET YOU KNOW . IF I AM
MISREADING MY APOLOGIES . BUT,
THE BACKGROUND ON THIS
LEGISLATION RELATES TO THE
UNIVERSITY OF WASHINGTON WAGE
EQUITY STUDY THAT THE COUNCIL
FUNDED A COUPLE OF YEARS AGO.
THE STUDY ITSELF BECAME
AVAILABLE IN FEBRUARY OF THIS
YEAR. THAT WAGE EQUITY STUDY
FOUND THAT EVEN WHEN YOU HOLD
CONSTANT WERE CHARACTERISTICS
SUCH AS EDUCATIONAL LEVEL, OR
AGE, THAT THE MEDIAN ANNUAL PAY
FOR HUMAN SERVICE WORKERS IN
THE NONPROFIT SECTOR THERE IS
27% LOWER THAN IN NON-CARE
INDUSTRIES. AND, ALSO, THE
STUDY FOUND THAT WORKERS WHO
LEAVE THE HUMAN SERVICES
INDUSTRY FOR A JOB IN A
DIFFERENT INDUSTRY, THOSE
WORKERS SEE A NET PAY INCREASE
OF 7%, ONLY ONE YEAR LATER,
RELATIVE TO THE WORKERS WHO
STAY IN HUMAN SERVICES. THAT IS
SOMETHING WE CALL A PAY
PENALTY. A PAY PENALTY FOR
WORKING IN THE CARE INDUSTRY
THAT SHOULD DEFINITELY NOT
EXIST . THE WAGE EQUITY STUDY
RECOMMENDED THAT BY 2025
NONPROFIT HUMAN SERVICE
ORGANIZATIONS AND
NONGOVERNMENTAL FUNDERS SHOULD
INCREASE WORKER WAGES BY AT
LEAST 7% TO CLOSE THAT GAP. THE
COUNCIL PASSED A RESOLUTION
EARLIER THIS YEAR STATING
COUNSEL'S INTENT TO CONSIDER
INCREASING HUMAN SERVICE
DEPARTMENT ADMINISTERED
CONTRACTS BY 7% . THE MAYOR'S
OFFICE, IN HIS POST-AGENDA,
INCLUDED A TUMOR PERCENT
INCREASE FOR HUMAN SERVICES
PROVIDER PAY TO ALL CONTRACTS
RECEIVING THAT'S WHAT THIS IS
IN ADDITION TO THE REQUIRED, BY
STATUTE, INFLATIONARY BUDGET.
SO THE PURPOSE OF THIS
LEGISLATION IS TO SIMPLY
REQUIRE THAT HUMAN SERVICES
CONTRACTS THAT INCLUDE MONEY
PROVIDED FOR THE PURPOSES OF
WAGE EQUITY, AND THAT THOSE
FUNDS BE USED FOR THAT PURPOSE
AND THAT BE, AGAIN, IN ADDITION
TO THE INFLATIONARY ADJUSTMENTS
. THE LEGISLATION ESTABLISHES
SOME RECORDING REQUIREMENTS IN
ORDER TO MAKE SURE THAT THE
INTENT OF THE COUNCIL, AS IT
RELATES TO WAGE EQUITY
INCREASES, IS ADHERED TO.
>> THANK YOU SO MUCH. I WILL
MAKE SURE TO NOTE AS WELL THAT
IT IS GREAT TO HAVE
COUNCILMEMBER LISA HERBOLD
LISTED AS A SPONSOR. THANK YOU.
COUNCILMEMBER ANDREW LEWIS,
IS THERE ANYTHING YOU WOULD
LIKE TO ADD OR COMMENT ON?
>> THANK YOU, SO MUCH TEAR
TERESA MOSQUEDA. I THINK THAT
THE PREVIOUS SPEAKERS HAVE SAID
EVERYTHING I WOULD SAY SO, THIS
IS REALLY CRITICAL FOR FUTURE
PLANNING AS A COUNSEL AND I
SUPPORT THE OPPORTUNITY TO HAVE
WORKED ON THIS AND ENCOURAGE
COLLEAGUES TO PASS THIS THIS
MORNING .
>> THANK YOU. JEN LABRECQUE
WOULD YOU LIKE TO PROVIDE A
QUICK SUMMARY.
>> GOOD MORNING, YES, I WILL
REVIEW THE LEGISLATION. THIS
LEGISLATION DOES FOUR MAIN
THINGS, JUST AS COUNCILMEMBER
LISA HERBOLD MENTIONED, IT
REQUIRES ANY HUMAN SERVICES
CONTRACT THAT INCLUDES A
PROBATIVE MONEY RESERVE FOR THE
PURPOSE OF HUMAN SERVICE
PROVIDER PAY, MUST BE USED ONLY
FOR WAGE INCREASES OR HUMAN
SERVICE WORKERS, IT REQUIRES
THAT SUCH WAGE INCREASES BE IN
ADDITION TO ANY INFLATIONARY
ADJUSTMENTS. IT ESTABLISHES
CONTRACTING REQUIREMENTS
REGARDING THE FUNDING,
INCLUDING REPORTING ON WHICH
ORGANIZATIONS USE THE FUNDING,
WHICH POSITIONS RECEIVED PAY
INCREASES BECAUSE OF IT, AND
WHAT OTHER FUNDERS CONTRIBUTED.
FINALLY, IT ADDS A NEW CHAPTER
TO TITLE 20 OF THE SEATTLE
MUNICIPAL CODE . AS A REMINDER,
THE BUDGET APPROVED BY COUNCIL
THIS MONTH PROVIDES A TOTAL OF
$5.1 MILLION FOR PROVIDER PAY
FUNDING WITH $5.1 MILLION
PROVIDED FOR THAT PURPOSE IN
THE BUDGET. THIS LEGISLATION
WILL ALWAYS NEED TO BE
ACTIVATED, THE PROVISO IS A
NECESSARY STEP TO EXPRESSLY
RESERVE THE BUDGET FUNDS FOR
THE PURPOSES OF PROVIDER PAY,
WHICH TRIGGERS THE REQUIREMENTS
FOUND IN THIS LEGISLATION.
THANK YOU.
>> BANK YOU VERY MUCH.
COUNCILMEMBER NELSON? ANY
COMMENTS OR QUESTIONS.
>> YES, THANK YOU VERY MUCH.
SO, I STILL HAVE SOME CONCERNS
ABOUT THIS LEGISLATION, NOT
BECAUSE I DON'T VALUE HUMAN
SERVICES, OR THE WORK THEY DO,
BUT BECAUSE, I BELIEVE, THE
LEGISLATION IS BASED ON A
FLAWED STUDY THAT WE RECEIVED
LAST YEAR. BUT I WILL VOTE FOR
THIS BECAUSE AS WE SAW FROM THE
REPORT THE STATE AUDITOR'S
OFFICE ISSUED, JURISDICTIONS
NEED TO DO A BETTER JOB OF
DIRECTING AND MONITORING HOW
OUR INVESTMENTS ARE BEING USED.
SO, I APPRECIATE COUNCILMEMBER
LISA HERBOLD BRINGING FORWARD
THIS RESOLUTION TO MAKE SURE
THE INVESTMENTS ARE GOING TO
THE SACRIFICE SLEEP FOR THE
INTENT, WHICH IS TO INCREASE
PAY. THANK YOU.
>> THANK YOU, COUNCILMEMBER
NELSON. ANY ADDITIONAL
COMMENTS? OKAY, I WILL ADD SOME
COMMENTS. I WANT TO THANK
CENTRAL STAFF OR THE WORK ON
THIS, JEN LABRECQUE, THANK YOU
FOR HELPING TO ENSURE THAT ALL
THE LAYERS WERE PEELED BACK SO
WE WEREN'T MISSING ANY WORKERS
. IT WAS OUR INTENT TO MAKE
SURE THAT ALL THE CONTRACTS THE
CITY HELD HAD AN INFLATIONARY
ADJUSTMENT AND AS COUNCILMEMBER
LISA HERBOLD NOTED, ALL OF US
WANT TO WORK TOWARDS THAT 7%
PAY DISPARITY THAT WE SHOULD BE
CLOSING AND VERY MUCH
APPRECIATE THE FACT THAT THE
MAYOR DID EVERYTHING HE COULD
IN THE BUDGET THAT HE SENT
DOWN, INCREASING BASE PAY BY 2
PERCENT, IT IS SOMETHING WE
MAINTAINED IN THE BUDGET. I
THINK IF WE HAD BETTER OUTLOOK
FOR FUTURE FISCAL STABILITY OF
THE COUNCIL WE WENT TO TRY TO
GET BACK TO THE 3.5% THAT WAS
THE GOAL FOR THIS YEAR, BUT TO
APPRECIATE THIS IS AN IMPORTANT
DOWN PAYMENT ON THE COMMITMENT
TO CLOSE THE WAGE GAP . EVEN
THEN, WHEN WE WERE ALL IN
UNISON ON THE BASE WAGE
INCREASE NECESSARY AND THE
ADJUSTMENT NECESSARY TO
MAINTAIN OUR COMMITMENT TO
HUMAN SERVICE PROVIDERS, WE
STILL HAD TO PUT THE PIECES
TOGETHER TO MAKE SURE NO
WORKERS WERE LEFT OUT. SO, JEN
LABRECQUE DID A TREMENDOUS
AMOUNT OF RESEARCH TO HELP
UNDERSTAND WHO WOULD HAVE BEEN
LEFT OUT IF WE DID NOT CLOSE
SOME OF THE GAPS THAT WERE LEFT
. AGAIN, UNINTENTIONALLY
BECAUSE THE LEGISLATION THE
COUNCIL PASSED A FEW YEARS AGO
WAS CLEAR THAT WE WANTED TO
CLOSE THAT GAP, HERE WE ARE
SAYING MUCH MORE WORK NEEDS TO
BE DONE SO WE CAN FULLY CLOSE
THAT GAP. WE WANT TO MAKE SURE
YEAR OVER YEAR THESE WORKERS,
WHO WERE ALREADY ON THE EDGE OF
POTENTIALLY LOSING YOUR HOME OR
LIVING IN THEIR CAR, PROVIDING
CARE TO THE MOST FALLIBLE, THAT
THEY THEMSELVES DO NOT HAVE TO
DO THAT WORK IN ADDITION TO
ADVOCACY NECESSARY FOR PAY GAP
AND INFLATIONARY ADJUSTMENTS .
SO, THANK YOU, JEN LABRECQUE
FOR ALL THE WORK YOU DID .
THANK YOU COUNCILMEMBER LISA
HERBOLD FOR BEING A CHAMPION
ON THIS ISSUE OVER THE LAST FEW
YEARS. I ALSO WANT TO THANK THE
ORGANIZATIONS WHO HAVE BEEN
WORKING WITH COUNSEL TO
INCREASE PROVIDER PAY AND MAKE
SURE WE AREN'T LEAVING WORKERS
BEHIND IN THIS OR ANY FUTURE
BUDGET PROCESS AND ENTITIES
SUCH AS DOWNTOWN EMERGENCY
SERVICES, HEALTHCARE,
ORGANIZATIONS LIKE YOUTH CARE,
VARIOUS AFFORDABLE HOUSING
PROVIDERS, WHO PROVIDE SERVICES
WITH WINDOWS BUILDINGS AND HAVE
REMINDED US THE BUILDINGS THAT
THE SAME ON THE OUTSIDE, BUT
THE NEEDS OF THE PEOPLE INSIDE
HAVE INCREASED AND CHANGE.
THANK YOU TO THE KING COUNTY
HOMELESSNESS COALITION. THEY
HAVE BEEN INCREDIBLY HELPFUL
THROUGHOUT THE YEAR AND TO THE
HUMAN SERVICES COALITION AS
WELL AND ALL FRONT-LINE WORKERS
WHO HAVE COME TO COUNSEL TO
SHARE THEIR STORIES ABOUT THE
DESIRE TO CONTINUE TO PROVIDE
CARE TO THE MOST FALLIBLE
COMMUNITY MEMBERS AND ARE
COMING TO HELP US UNDERSTAND
HOW THESE WAGE GAPS AND PAY
PENALTY HAVE AFFECTED THEIR
ABILITY TO STAY IN THIS
INDUSTRY AND WHEN THEY DON'T
HAVE PAY STABILITY AND ARE
FORCED TO MAKE DECISIONS ABOUT
WHETHER OR NOT THEY THEMSELVES
CAN PUT FOOD ON THE TABLE OR
KEEP A ROOF OVER THEIR HEAD,
THEY END UP LEAVING THIS SECT
OR, WHEN WE NEED PEOPLE IN THIS
COMMUNITY PROVIDING HUMAN
SERVICES WORK. SO, THANK YOU
TO THEM, THE HUMAN SERVICE WORK
WAS WHO PROVIDED TESTIMONY
AFTER TESTIMONY, SHARING THE
EXPERIENCE ABOUT SUSTAINABILITY
FOR WAGES IN THE HUMAN SERVICES
SECT OR COULD IMPROVE CARE AND
IMPROVE THE COORDINATION OF
SERVICES FOR THE COMMUNITY. I
APPRECIATE IT COUNCILMEMBER
LISA HERBOLD . DO YOU HAVE ANY
CLOSING COMMENTS?
>> THANK YOU MADAM CHAIR, I
THINK YOU COVERED A LOT OF THE
THANKS THAT I WOULD OFFER AND
COVERED A LOT OF THE ISSUES WHY
THIS LEGISLATION IS IMPORTANT.
I DID WANT TO, AGAIN,
REINFORCED THE FACT THAT THIS
IS A MULTI-YEAR CAMPAIGN TO
CLOSE TO THAT PAY PENALTY GAP
AND FOR ANY OF THE REMAINING
COUNCILMEMBERS WHO WILL BE HERE
NEXT YEAR, IF ANY OF YOU HAVE
QUESTIONS ABOUT THE METHODOLOGY
I WOULD BE HAPPY TO FACILITATE
AN INTRODUCTION TO THE
RESEARCHERS TO GET THOSE
QUESTIONS ANSWERED. THIS IS AN
ISSUE THAT THE COALITION WILL
BRING UP AGAIN NEXT YEAR SO, I
REALLY HOPE THAT WE ADDRESS ANY
QUESTIONS THAT WE HAVE ABOUT
THE STUDY BETWEEN NOW AND NEXT
BUDGET CYCLE, AS WELL AS I
APPRECIATE THAT CENTRAL STAFF
WILL STILL BE AROUND TO MAKE
SURE THAT THE TRIGGERING
PROVISO IS INCLUDED MOVING
FORWARD AND I HOPE THAT WE
COLLECTIVELY CAN HAVE THE
INSTITUTIONAL KNOWLEDGE TO
CONTINUE TO SUPPORT THIS
CAMPAIGN MOVING FORWARD IN
YEARS WHEN THE SPONSORS OF
THIS LEGISLATION AND THESE
INVESTMENTS WON'T BE HERE ANY
LONGER. THANK YOU.
>> THANK YOU, COUNCILMEMBER
LISA HERBOLD . LET'S DO THIS
FINAL ON HUMAN SERVICE PROVIDER
WAGES WITH THE CALL OF THE
ROLL, MADAME KIRK, COULD YOU
PLEASE CALL THE ROLL ON THE
ADOPTION OF CB 120717 .
>> COUNCILMEMBER LISA HERBOLD .
>> YES .
>> COUNCIL PRESIDENT DEBORA
JUAREZ.
>> AYE.
>> COUNCILMEMBER ANDREW LEWIS.
>> YES.
>> COUNCILMEMBER TAMMY MORALES.
>> YES.
>> COUNCILMEMBER NELSON.
>> AYE.
>> COUNCILMEMBER ALEX PEDERSEN.
>> AYE .
>> COUNCILMEMBER DAN STRAUSS.
>> YES .
>> CHAIR, TERESA MOSQUEDA .
>> AYE . THE MOTION WILL
CARRY. CB 120717 WILL BE SENT
TO CITY COUNCIL FOR A FINAL
VOTE . CONGRATULATIONS TO ALL .
MADAME CLERK, COULD YOU READ
ITEMS NUMBER FOUR AND FIVE INTO
THE RECORD TOGETHER.
>> CB 120602 AN ORDINANCE
REPEALING THE TAX ON GROSS
INCOME DERIVED FROM THE
BUSINESS OF SELLING OR
FURNISHING WATER FOR HIRE TO
CUSTOMERS, AMENDING SECTION
5.48.050 AND 5.48. 060 OF THE
SEATTLE MUNICIPAL CODE. CB
120601. AN ORDINANCE IMPOSING
AN EXCISE TAX ON THE SALE OR
EXCHANGE OF CERTAIN CAPITAL
ASSETS IN SEATTLE, ADDING A NEW
CHAPTER 5.66 TOTHE SEATTLE
MUNICIPAL CODE, AND ADDING A
NEW SECTION 5.45.050 TO THE
SEATTLE MUNICIPAL CODE.
>> THANK YOU. THANK YOU
COLLEAGUES FOR YOUR WORK
THROUGHOUT THE YEAR AND ALL OF
THE CONVERSATIONS WE HAVE HAD
ON THESE ITEMS. THE CONCEPT IN
FRONT OF US HAS BEEN INTRODUCED
EARLIER THIS YEAR PRIOR TO THE
BUDGET, I WANT TO THANK
COUNCILMEMBER ALEX PEDERSEN FOR
HIS WORK ON THESE TWO ITEMS. I
NOTED THAT THE LAST TWO ITEMS
WE WILL NOT BE VOTING ON THESE
ITEMS TODAY BUT I WANT TO
PROVIDE CONTEXT ON THE
LEGISLATION IN FRONT OF US. WE
ALSO HAVE CENTRAL STAFF WITH
US. THE LEGISLATION AND THE
CAPITAL GAINS LEGISLATION
COSPONSORED BY COUNCILMEMBER
ALEX PEDERSEN, I WANT TO THANK
HIM FOR THE WORK HE HAS DONE TO
BRING THIS LEGISLATION TODAY
AND TO INITIATE THE
CONVERSATION ABOUT HOW TO LOOK
AT MORE REVENUE STREAMS AND HOW
WE ADVANCE A KNOWN PROGRESSIVE
REVENUE SOURCE BEING CAPITAL
GAINS . . HAS BEEN CONVERSATION
ABOUT HOW OUR CITY CAN ADVANCE
PROGRESSIVE REVENUE STRATEGIES
AND HELP TO CREATE GREATER
SUSTAINABILITY AND I SEE THAT
CAPITAL GAINS LEGISLATION AS
PART OF THE TRIO OF LEGISLATION
THAT WE KNEW WAS POSSIBLE
OPTIONS FOR THE COUNCIL TO
CONSIDER AS A RESULT OF
RECEIVING THE REVENUE
STABILIZATION WORK GROUP REPORT
. WHILE WE APPRECIATE THAT THE
REPORT IDENTIFIED CAPITAL GAINS
AS A POSSIBLE ITEM FOR
ADVANCEMENT, COUNCILMEMBER ALEX
PEDERSEN, HAD THE FORESIGHT IT
WAS A POSSIBLE ITEM AND HAD THE
INTENTION OF REPLACING THE
WATER TAX SORTS WITH CAPITAL
GAINS. I THINK IT IS IMPORTANT
THAT YOU, COUNCILMEMBER ALEX
PEDERSEN, BROUGHT THAT UP FOR
DISCUSSION AND APPRECIATE THAT
TAX WAS ONE OF THE THREE TIMES
THIS COUNSEL COULD CONSIDER .
IF YOU REMEMBER THE REVENUE
WORK GROUP HAD THREE ITEMS OUT
OF NINE THAT WERE POTENTIALLY
ACTIONABLE . MEANING, WE HAD
SOLID ADVICE THAT WE C█OULD
POTENTIALLY AMEND EXISTING
STAFF TO TO DO SOMETHING LIKE
INCREASE THE PROGRESS OF
PAYROLL TAX, WELL, WE DID THAT
IN THE BUDGET. WE INCREASE THE
PAYROLL TAX TO GO SPECIFICALLY
TO MENTAL HEALTH RESOURCES.
THAT LEGISLATION WAS THEN NOT
ADVANCE TO TRACK TWO BECAUSE IT
WAS USED TO FUND THE MENTAL
HEALTH SERVICES FOR USE AROUND
SEATTLE AND A VERY IMPORTANT
INVESTMENT SO I WANT TO THANK
COLLEAGUES FOR ADVANCING THAT
AND COUNCILMEMBER KSHAMA SAWANT
WHO HAD BROUGHT THAT
LEGISLATION FORWARD, BUT IT WAS
NOT PART OF THE TRACK TWO
ACTION HERE. THE OTHER ITEM FOR
CONSIDERATION WAS THE PAY RATIO
LEGISLATION. WE SPENT TIME IN
THE PREVIOUS MEETING TALKING
ABOUT HOW I HAD HIGH HOPES THAT
THE PAY RATIO WAS GOING TO BE A
VEHICLE TO HELP CLOSE THE
REVENUE GAP GIVEN THE TIMING OF
WHEN WE RECEIVED THE REVENUE
STABILIZATION WORK GROUP REPORT
AND THE THEN BUDGET THAT WE HAD
TO TAKE ON THE FASTEST WAY WE
THOUGHT IT MIGHT BE POSSIBLE TO
ADVANCE THE PAY RATIO POLICY
SIMILAR TO WHAT SAN FRANCISCO
HAS IN PLACE, SIMILAR TO
PORTLAND, WE THOUGHT IT WOULD
BE A SIMPLE VEHICLE TO AMEND
THE JUMPSTART PROGRESSIVE
PAYROLL TAX AND BASICALLY
CONSIDER IT EXCISE TAX ON TOP
OF THAT FOR EXISTING PAYERS AND
LOOK AT THE RATIO BETWEEN THE
CEOS AND COMPANIES THAT ARE
ALREADY PAYING IN TO JUMP START
AND ADD AN ADDITIONAL
ASSESSMENT BASED ON WHO HAD THE
WIDEST GAP BETWEEN THE PAY .
MEANING, AT LEAST 100-1 RATIO
THAT THE CEO MADE 100 TIMES
MORE THAN THE MEDIAN WORKER
WITHIN THOSE COUNTRIES. --
COMPANIES. HOWEVER, IT WAS ONLY
BRINGING IN SINGLE-DIGIT
DOLLARS, $7.5 MILLION, THAT DID
NOT SEEM LIKE THE BEST AVENUE
TO ADVANCE THAT IMPORTANT
ACTIONABLE POLICY IN THE NEAR
FUTURE. SO, AS I MENTIONED,
THIS SIGNALS ADDITIONAL WORK IS
NECESSARY TO WORK ON A CEO PAY
RATIO TAX NOT USING JUMPSTART
AS THE BASE VEHICLE BUT GOING
BACK AND EVALUATING HOW TO
CRAFT FROM SCRATCH A CEO PAY
RATIO. SO THAT IS NOT IN FRONT
OF US EITHER, BECAUSE OF THE
NEED TO DO ADDITIONAL WORK ON
THAT SO THERE ARE MORE
RESOURCES THAT COULD BE BROUGHT
TO THE CITY, AND, VERY TIMELY
GIVEN THE WAGE DISPARITY SET WE
SEE IN THE CITY. THE INCOME
INEQUALITY WE HAVE SEEN GROW IN
SEATTLE AND IT IS IMPORTANT
FOR US TO HAVE THE COUNCIL TAKE
ON EVALUATING HOW TO ADVANCE
CEO PAY RATIO IN THE FUTURE .
THAT LEAVES US WITH THE LAST
ITEM, CAPITAL GAINS . I WANT TO
THANK COUNCILMEMBER ALEX
PEDERSEN AGAIN . REALLY I THINK
THE MEMBERS AS WELL, WHO FOR A
DECADE, HAD BEEN TRYING TO
ADVANCE CAPITAL GAINS IN THE
STATE LEGISLATURE AND WERE
ULTIMATELY SUCCESSFUL, HAVE WON
IN THE COURTS AND CONTINUE TO
WIN IN THE COURT OF PUBLIC
OPINION, ABOUT HOW A CAPITAL
GAINS TAX IS A WAY TO HELP
LITTLE THE PLAYING FIELD AND
IDENTIFY ADDITIONAL RESOURCES.
SO, THANK YOU TO THE STATE
LEGISLATIVE PARTNERS FOR
ADVANCING THE REVENUE OPTION AT
THE STATE LEVEL. THAT HAD BEEN
ACCESSIBLE, EXTREMELY
SUCCESSFUL, BRINGING IN OVER
THREE TIMES AS MUCH AS HE
ANTICIPATED REVENUE ORIGINALLY
PROJECTED, SO, INCREDIBLY
IMPORTANT REVENUE SOURCE FOR
THE STATE . AS WE LOOK TO
CREATE GREATER STABILITY FOR
REVENUE SOURCES IN SEATTLE I AM
VERY OPTIMISTIC THAT WE COULD
COME IN SEATTLE, AT SOME POINT
IN THE FUTURE, ADVANCE A
CAPITAL GAINS TAX . I WANT TO
DEFER TO COUNCILMEMBER ALEX
PEDERSEN, FIRST, AS WE LOOK AT
THE CURRENT LANDSCAPE THAT IS
OCCURRING IN OUR STATE RELATIVE
TO STATE CAPITAL GAINS, I WANT
TO MAKE SURE THAT WE IN SEATTLE
CONTINUE TO OFFER FIRM SUPPORT
FOR THE STATE TO MAINTAIN AND
PROTECT THE CAPITAL GAINS
REVENUE SOURCE, GIVEN THE
CIRCUMSTANCES SURROUNDING
CAPITAL GAINS, THE EFFORTS THAT
ARE UNDERWAY TO OVERTURN THAT
PROGRESSIVE REVENUE SOURCE AND
THE THREATS THAT WOULD IMPOSE,
NOT JUST ON RESIDENTS IN
SEATTLE, BUT ACROSS THE STATE .
MY HOPE IS THAT IF WE GIVE THE
STATE LEGISLATORS ADDITIONAL
TIME TO MAKE SURE THE REVENUE
SOURCE IS PROTECTED AND NOT
FOLDED INTO ANY ADDITIONAL
ATTEMPT TO OVERTURN THAT
SOURCE, WE, AS A STAY,
INCLUDING RESIDENTS OF SEATTLE,
WILL BE BETTER POSITIONED TO
ACT UPON THIS PROGRESSIVE
REVENUE SOURCE WHEN IT IS THE
RIGHT TIME. I WOULD LIKE THIS
IN THE BUDGET COMMITTEE FOR
FUTURE CONSIDERATION, PERHAPS
NEXT YEAR OR THE YEAR AFTER
THAT . THE COUNCIL COULD THEN
TAKE ON A DISCUSSION ABOUT
THESE TWO PIECES OF REVENUE AT
THE RIGHT TIME, WHEN WE SEE HOW
THE CURRENT EFFORTS TO OVERTURN
THIS CRITICAL REVENUE SOURCE
THAT IS CAPITAL GAINS, ULTIMATE
THE WILL PLAY OUT. I REMAIN
COMMITTED TO SUPPORTING MEMBERS
WHO HAVE ADVANCED THE CAPITAL
GAINS TAX AND IN DOING SO WOULD
OFFER TO THIS THE BODY, TO KEEP
THIS LEGISLATION IN THE BUDGET
COMMITTEE FOR FUTURE ACTION,
BUT NOT PRIOR TO THE OUTCOME OF
THE ATTEMPT TO CHANGE CAPITAL
GAINS AT THE STATE LEVEL AND
SHOW SUPPORT FOR STATE
LEGISLATIVE PARTNERS. IN DOING
SO THAT IS WHY I HAVE LISTED
THE WATER TAX REPEAL AND
CAPITAL GAINS TODAY AS BRIEFING
IN DISCUSSION AND NOT ACTION
FOR THIS COUNSEL TO TAKE ON.
COUNCILMEMBER, ALEX PEDERSEN,
WOULD YOU LIKE TO COMMENT ON
THESE ITEMS? AGAIN, THANK YOU
FOR YOUR WORK ON THIS.
>> THANK YOU, CHAIR TERESA
MOSQUEDA . I AGREE WITH
EVERYTHING YOU HAVE SAID AND
SUPPORT HOW WE ARE HANDLING
THIS TODAY. COLLEAGUES, THESE
TWO BILLS, CB 120602 AND CB
120601, WERE ANNOUNCED ON JUNE
7th BUT THE GOAL OF MAKING MORE
PROGRESS ON TAX REFORM IN
SEATTLE . I DO WANT TO THANK
CENTRAL STAFF , AS WELL AS MY
TEAM, THE COUNCIL TEAM AND THE
CITY ATTORNEY OFFICE FOR THESE
WORK ON THIS LEGISLATION TO
ATTEMPT TO ADDRESS WHAT OF THE
MOST UNFAIR TAX SYSTEMS IN THE
NATION. I AGREE, IT IS NOT
PUTIN TO VOTE TODAY DUE TO
FEEDBACK WE RECEIVED RECENTLY
FROM PROGRESSIVE STATE LEADERS
WHO WANT TO MAKE SURE THAT OUR
EAGERNESS FOR ADDITIONAL TAX
REFORM AT THE LOCAL LEVEL DOES
NOT JEOPARDIZE THE ORIGINAL
PROGRESS MADE ON THE NEWLY
AFFIRMED STATEWIDE CAPITAL
GAINS TAX. SO, WHILE WE AREN'T
VOTING ON THESE TWO BILLS THIS
YEAR, THE BILLS ARE READY FOR
ACTION BY THE NEXT YEAR FOR
CITY COUNCIL TO CONSIDER, SO
THEY CAN MAKE THE TAX SYSTEM
MORE PROGRESSIVE. ONCE OUR
STATE RIDE LEADERS ENSURE THEIR
PROGRESS HAS BEEN SOLIDIFIED, I
WANT TO THANK COUNCILMEMBER
LISA HERBOLD FOR HER SUPPORT,
I WANTED THINK THE BUDGET
CHAIRWOMAN, I AGREE THAT THE
NEXT CITY COUNCIL SHOULD
CONSIDER THIS DUE TO OUR MUTUAL
DESIRE TO MAKE SURE WE PRESERVE
WHAT HAS BEEN GAINED ALREADY.
THE GOOD NEWS IS THE TAX REFORM
LEGISLATION PACKAGE WAS
ENDORSED BY SEVERAL NONPROFIT
LEADERS IN OUR CITY, THE
UTILITY TAX PLACES A BURDEN ON
THE INCOME COMMUNITIES,
REPEALING THIS TAX WILL ALLOW
MORE MEMBERS INCOME TO BE
FOCUSED ON RECOVERY AS THEY
MOVE FORWARD ON A JOURNEY TO
BEING HEALTHY IN A SUPPORTIVE
ENVIRONMENT. WE MUST BREAK
DOWN ALL BARRIERS THAT CREATE
HOUSING INSTABILITY WITHOUT
LIMITING RESOURCES TO ADDRESS
THESE CRISES IN OUR COMMUNITIES
. OTHER PROVIDERS WERE
SUPPORTIVE BECAUSE IT WOULD
SAVE THE MONEY TO REPEAL THE
WATER TAX . JOHN BURBANK, SAID
INTRODUCING A PROGRESSIVE TAX
ON EVERYONE IS A WELCOME AND
ELEGANT STEP FORWARD IN
ADDRESSING ECONOMIC
INEQUALITIES IN SEATTLE, LOWER
INCOME HOUSEHOLDS PAY A GREATER
PORTION OF THEIR INCOME FOR
UTILITY BILLS, INCLUDING MANY
SENIORS, WILL BENEFIT FROM
ELIMINATING THE WATER TAX WAS
SO, THAT PROPOSAL IS ENDORSED
BY THE CUSTOMER REVIEW PANEL AT
PUBLIC UTILITIES. THE INSTITUTE
FOR TAXATION AND ECONOMIC
POLICY, AS WE KNOW, RANKS
WASHINGTON STATE AS HE MOST
UNFAIR TAXATION SYSTEM IN THE
COUNTRY. WHERE LOW INCOME
RESIDENTS PAY A HIGHER
PERCENTAGE OF THEIR HOUSEHOLD
EARNINGS FOR TAXES THE INTO
WEALTHIER RESIDENTS,. SO, I
REALIZE THAT ALSO LOCALLY WE
DON'T WANT TO CREATE A $38
MILLION AND YOU WILL REVENUE
GAP IN THE GENERAL FUND SO THIS
WAS COMBINED WITH THE PROPOSAL
TO CREATE A 2 PERCENT ADD ON TO
THE STATES CAPITAL GAINS TAX
JUST TO CLARIFY THAT TAX POLICY
WHICH WE PUT HAVE MIRRORED
HERE, EXEMPTS REAL ESTATE
TRANSACTIONS AND EXEMPTS
RETIREMENT ACCOUNTS. I BELIEVE
THIS IS AN APPROACH THAT ASSIST
GLOBALLY RESPONSIBLE TO MAKE IT
MORE FEAR AND PROGRESSIVE. I AM
SPEAKING TO THE FUTURE CITY
COUNCIL AS WELL. WHILE WE CAN'T
DO THIS TODAY I HOPE YOU
CONSIDER IT NEXT YEAR AND
CONSIDER THESE TWO PIECES
TOGETHER. THANK YOU.
>> EXCELLENT, THANK YOU SO
MUCH. FOR THE PURPOSES OF THE
RECORD MAYBE WE COULD HAVE
CENTRAL STAFF BRIEFLY DESCRIBE
ANYTHING ELSE THAT WE HAVE NOT
DESCRIBED. I THINK RECOGNIZING
THAT WE ARE GOING TO BE SEEING
FUTURE ACTION ON THIS THAT IT
COULD BE VERY BRIEF. WELCOME,
AGAIN.
>> THANK YOU. GOOD MORNING. I
DO HAVE OTHERS ON THE LINE WHO
STAFFED THE LEGISLATION WHO ARE
HAPPY TO ANSWER QUESTIONS OR
PROVIDE DETAILS . BETWEEN CHAIR
TERESA MOSQUEDA AND
COUNCILMEMBER ALEX PEDERSEN,
YOU HAVE SUMMARIZED THE BILLS
AND WE HAVE NOTHING NEW TO ADD
. SO WE ARE HAPPY TO ANSWER ANY
QUESTIONS. I WILL NOTE THAT
THERE WERE AMENDMENTS PROPOSED
AND THEY WILL BE AVAILABLE FOR
CONSIDERATION AND WE WILL BE
AVAILABLE TO ANSWER ANY RUSSIAN
ON THESE BILLS.
>> THANK YOU AGAIN
COUNCILMEMBER ALEX PEDERSEN
PICK I AM NOT SEEING ANY
ADDITIONAL QUESTIONS.
COUNCILMEMBER NELSON, GO AHEAD.
>> THANK YOU. I APPRECIATE THIS
BECAUSE IT MIGHT COME BACK TO
THE FUTURE COUNCIL. I
APPRECIATE THAT WE AREN'T
VOTING ON THIS TODAY. THERE
HAS NOT BEEN A LOT OF CLARITY,
TO ME AT LEAST, IF THIS WAS
INTENDED AS THE WATER TAX
REPEAL AS A STAND ALONE TAX OR
IF IT WAS INTENDED AS A PACKAGE
DEAL TO GENERATE ULTIMATELY
NEW REVENUE. HOWEVER, RIGHT
NOW, IT'S SORT THE BALANCES OUT
SO THAT WOULD REQUIRE
INCREASING THE CAPITAL GAINS
TAX LOCALLY . IN ANY CASE I
HOPE IF IT DOES COME FORWARD WE
MAKE SURE WE ARE CLEAR IN
COMMUNICATING WHAT THE END GOAL
IS. BUT, I WILL SPEAK TO THE
TAX IT SELF, AS THE HEALING AS
GETTING RID OF THE TAX MAYBE IT
IS NOT A GOOD ENOUGH REASON TO
BLOW A $37 MILLION HOLE IN THE
GENERAL FUND CONSIDERING WE
HAVE A TWO $24 MILLION DEFICIT
. IF THE GOAL IS TO HELP LOW
INCOME PEOPLE, INSTEAD OF
ELIMINATING THIS STABLE,
REVENUE SOURCE, WE SHOULD WORK
HARDER TO ENROLL THEM IN THE
UTILITY DISCOUNT PROGRAM WHICH
PROVIDES A 50% DISCOUNT ON
COMBINED WATER BILLS AND
UTILITIES, INCLUDING WASTEWATER
. SO, THAT IS MUCH MORE THAN
GETTING RID OF WHAT IS 15% OF
ONLY THE WATER PORTION OF THIS
BILL. BASICALLY, WHEN I MET
THIS IDEA I THOUGHT TWICE
BECAUSE PEOPLE AREN'T FILLING
UP MY INBOX COMPLAINING TO ME
ABOUT THE WATER TAX. THEY ARE
COMPLAINING ABOUT CRIME, AND
HOMELESSNESS AND OTHER ISSUES
THAT SEATTLE IS FACING AND
WONDERING WHY WE AREN'T DOING
MORE ABOUT THESE ISSUES. SO IT
DOES NOT SEEM THAT IT IS WELL
ADVISED TO ELIMINATE A FOOD
SOURCE OF STABLE REVENUE TO
TRADE IT OUT FOR ANOTHER
REVENUE SOURCE THAT IS LESS
STABLE AND WE ARE WAITING TO
SEE WHAT THE COURTS DO ON IT IN
THE FUTURE. SO, THAT IS WHY I
WAS PREPARED TO VOTE AGAINST
THIS TODAY AND I WANTED TO MAKE
SURE I GOT THIS ON THE RECORD
IF IT DOES COME BACK AS A
STANDALONE OR PART OF A
PACKAGE. SO, THANK YOU FOR
HEARING ME. I APPRECIATE IT .
>> THANK YOU SO MUCH .
COUNCILMEMBER LISA HERBOLD.
>> JUST FOR CLARITY SAKE'S
BECAUSE IT SEEMS LIKE THERE IS
UNCERTAINTY ABOUT THE INTENT OF
THE PRIME SPONSORS BILL. AS IT
RELATES TO CAPITAL GAINS I
WANTED TO TAKE THIS OPPORTUNITY
TO MENTION THAT THE BILL WAS
INTENDED TO USE CAPITAL GAINS
TO OFFSET THE COST ASSOCIATED
-- THE REVENUE ASSOCIATED WITH
THE WATER TAX. I HAD AN
AMENDMENT TO THE CAPITAL GAINS
TAX THAT WOULD INCREASE THE
REVENUE AVAILABLE TO ADDRESS
THE GENERAL FUND GAP THAT WE
ARE SEEING MOVING FORWARD. IT
IS PRETTY CLEAR THAT WHAT THE
INTENT IS OF COUNCILMEMBER ALEX
PEDERSEN 'S PROPOSAL, WHERE AS
WHAT MAY HAVE BEEN CONFUSING
IS THAT I HAD A SEPARATE
AMENDMENT THAT WOULD GENERATE
ADDITIONAL MONEY WITH AN
ADDITIONAL 1% CAPITAL GAINS TAX
FOR PURPOSES OF THE SECOND
PURPOSE THAT WAS SUGGESTED THAT
THIS LEGISLATION MIGHT SERVE,
WHICH IS TO GENERATE ADDITIONAL
REVENUE. THANK YOU.
>> THANK YOU. COUNCILMEMBER
ALEX PEDERSEN THE TO HAVE
ANYTHING ELSE -- EXCUSE ME,
COUNCILMEMBER NELSON, TO YOU
HAVE A FOLLOW-UP?
>> JUST FOR A RECORD THIS
SPONSOR HAS PROPOSED IT AS TAKE
IT AS IT IS, HE HAS BEEN VERY
CLEAR TO ME AN INITIATIVE THAT
MAY OR MAY NOT BE TIED DIRECTLY
TO THE FOLLOWING ONE, SO I AM
NOT TRYING TO CAST ASPERSIONS
ON HOW HE HAS COMMUNICATED HIS
INTENT. THANK YOU.
>> OKAY. AGAIN, THANK YOU
COUNCILMEMBER ALEX PEDERSEN .
DID YOU HAVE SOMETHING ELSE TO
ADD? GO AHEAD.
>> THANK YOU. I APPRECIATE THE
DISCUSSION AND YOU KNOW, FOR
ME, FIRST AND FOREMOST I THINK
THE WATER TAX IS AN UNFAIR TAX
THAT SHOULD BE REPEALED AND
BECAME FAMILIAR WITH IT AS HE
CHAIR OF THE COMMITTEE
OVERSEEING PUBLIC UTILITIES.
AND, BUT I ALSO UNDERSTOOD TO
BE BALANCED AND TRY TO GET
SUFFICIENT SUPPORT ON THIS BODY
I WAS ALSO VERY OPEN TO THE
CAPITAL GAINS TAX AS WELL, AND
I REALLY DO HOPE, AS A CENTRIST
WHO CARES ABOUT BUSINESS IN
THIS CITY AND WORKED REALLY
HARD ON PUBLIC SAFETY ISSUES IN
THE CITY, I SUPPORT A CAPITAL
GAINS TAX, I THINK IT IS FAIR
AND WE SHOULD DO IT. YOU KNOW,
WE HAVE THE MOST PROGRESSIVE
SYSTEM IN THE NATION, WE NEED
TO DO SOMETHING. SO I AM
WILLING TO SAY WE SHOULD DO
THIS AND I THINK WE COULD ALSO
REPEAL THE WATER TAX . WE COULD
DO BOTH. SO I JUST WANTED TO BE
CLEAR THAT YES, I WANT TO
REPEAL THE WATER TAX, AND TO
BE REALISTIC, TO BE BALANCED,
CAPITAL GAINS TAX MAKES A LOT
OF SENSE AS WELL. THANK YOU.
>> THANK YOU. I THINK THOSE ARE
GOOD CLOSING COMMENTS FOR
FUTURE COUNCILS HELP. AGAIN, I
WANT TO UNDERSCORE OUR SUPPORT
FOR THE STATE LEGISLATORS WHO
HELPED TO ADVANCE CAPITAL GAINS
TO BEGIN WITH. AS WE CAN SEE
THIS IS NOT ONLY A SUSTAINABLE
REVENUE SOURCE BUT IS YIELDING
MORE THAN ANTICIPATED,
SIGNALING THAT PROGRESSIVE
REVENUE OPTIONS ARE SO
DESPERATELY NEEDED TO ENSURE
THAT THERE IS FUNDING GO INTO
THE GROWING POPULATION NEEDS.
NOTABLY, CAPITAL GAINS
CURRENTLY PROVIDES SUPPORT
SERVICES TO EDUCATIONAL
SERVICES, WHICH HAVE BEEN
UNDERFUNDED FOR MANY YEARS. IT
OFTEN TAKES A LOT OF TIME TO
MOVE SOMETHING LIKE THIS
THROUGH THE STATE LEGISLATURE,
AT THIS JUNCTION, TODAY, AS YOU
HEARD FROM THE PRIME SPONSOR
AND MYSELF, WE WANT TO MAKE
SURE THE STABILITY OF CAPITAL
GAINS REMAINED INTACT AS THE
STATE LEGISLATOR TAKES ON THE
NEXT HURDLES. WE LOOK FORWARD
TO FUTURE CONVERSATIONS AROUND
HOW TO MAKE SURE MORE
PROGRESSIVE SOURCES IN THE CITY
ALIGNED WITH VALUES OF HELPING
THOSE WHO HAVE LOW INCOMES OR
THE SMALLEST NONPROFITS.
ANYTHING ELSE ON THIS? OKAY,
COLLEAGUES, I WANT TO THANK YOU
FOR THE DISCUSSION. THAT DOES
CONCLUDE THE DISCUSSION ON
THESE LAST TWO ITEMS . WE ARE
AT THE END OF THE AGENDA. THE
CLERK HERE TODAY IS RETIRING AT
THE END OF THE YEAR, SO SINCE
IT IS MY LAST TIME, IF YOU
COULD JOIN ME IN THANKING
LENDER FOR HER YEARS HERE.
THANK YOU. WE APPRECIATE YOUR
HELP IN GETTING US TO THIS LAST
MEETING HIM IN ADDITION, ALL OF
THE CLERKS AND COMMUNITY --
CITY EMPLOYEES THAT HELP MAKE
THESE MEETINGS POSSIBLE, AGAIN,
THANK YOU TO EVERYBODY FROM
I.T., SEATTLE CHANNEL,
SECURITY, THE FOLKS AT THE
CLERK'S OFFICE, AND EVERYBODY
IN CENTRAL STAFF WHO HELPS TO
MAKE SURE THAT WE ARE ABLE TO
GET THE INFORMATION ALL
AVAILABLE . WE APPRECIATE YOU.
CONGRATULATIONS ON YOUR
RETIREMENT, LINDA. THANK YOU
FOR HELPING GET US THROUGH THE
2023 BALL BUDGET PROCESS . WE
HAVE NOW COMPLETED TRACK ONE
AND TRACK TWO OF THE BUDGET .
IF THERE IS NO OBJECTION THE
COMMITTEE WILL BE ADJOURNED.
HEARING NO OBJECTIONS, THE
COMMITTEE IS ADJOURNED. THAT
CONCLUDES THE SELECT BUDGET
COMMITTEE OF 2023. WE WILL SEE
YOU AT FULL COUNCIL EVERYBODY.
THANK YOU.