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HomeMy WebLinkAboutCity of Kennewick - Public Financial Report 2 Dear Citizens of Kennewick, On behalf of the Mayor and City Council, I thank you for taking a moment to pick up and read the City of Kennewick’s Popular Annual Financial Report (PAFR) for the year ended December 31, 2020. The PAFR is an unaudited, easy-to-read version of the City’s Comprehensive Annual Financial Report that is published annually by the City’s Finance Department. The Comprehensive Annual Financial Report document is a more detailed account of the City’s financial statements, notes, schedules and statistical information prepared in accordance with Generally Accepted Accounting Principles (GAAP) and is audited by the Washington State Auditor’s Office. A copy of the Comprehensive Annual Financial Report is also available for interested users on the City’s website at www.go2kennewick.com. As we entered 2020, it would have been nearly impossible for anyone to predict that the world would endure a pandemic, or to imagine the devastating effects it would have on our way of life. Not only has the Coronavirus (COVID-19) pandemic resulted in a tragic loss of life and ongoing challenges for the public health sector, but it has also generated unprecedented uncertainty and volatility in financial markets and economies across the globe. From a financial perspective, 2020 was challenging and consisted of three very distinct periods for the City of Kennewick. The City began the year with positive trends in most of its primary revenue sources due to a robust, growing regional economy with plentiful employment opportunities. Due to the inherent lag that exists between the City receiving many of its primary revenues and the date the underlying economic activity actually occurs, the City experienced positive financial trends through April, well after the pandemic had begun. Beginning in late-April and extending into the summer, statewide closures intended to reduce the spread of COVID-19 prohibited most non-essential activities and effectively closed several segments of the state and local economy. During this period, many of the City’s primary revenue sources experienced double-digit percentage declines on a year-over-year basis, generating concern about the City’s ability to sustain its operations and provide essential services to the community. In late May, Governor Inslee announced that the State of Washington would be passing through federal Coronavirus Relief Funds (CRF) it had received through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to local governments. Kennewick received just over $3.75 million from this source, which was utilized to reimburse public safety personnel expenses associated with the City’s response to the COVID-19 public health emergency and provided much needed fiscal relief and stability. As the year progressed further into the fall, the City experienced moderate improvement in its major revenues, which was unexpected in light of the fact that many COVID-19 safety restrictions remained in place in our region much longer than other areas of the State. However, pent up consumer demand, coupled with federal stimulus programs that seemed to spur greater economic activity, helped the City of Kennewick to end 2020 and its 2019/2020 biennium in a better financial position than initially forecasted after the pandemic began. Despite the ongoing challenges of the pandemic and its impact on City operations, I am pleased that the City of Kennewick was able to continue providing a high level of service to its citizens throughout 2020, with only minor interruptions in certain programs due to statewide COVID-19 safety restrictions. There were also a number of important capital projects underway in 2020, including planning for impending construction of a major intersection project at State Route 395 and Ridgeline and plans for major upgrades to the City’s wastewater plant and construction of a replacement for a key water reservoir. Several exciting economic development projects are also on the horizon including further development of the Southridge area, continued redevelopment of the City’s bridge to bridge and historic downtown areas, and infrastructure projects to implement the master plan for development of the City’s Vista Entertainment District in west Kennewick. These important projects will position the City well for a full economic recovery once the pandemic ends. Thank you for your interest in the City of Kennewick and how it functions. We welcome the opportunity to let you know how the City is doing financially and provide information about the many wonderful things that are occurring in Kennewick. Please feel free to contact Dan Legard, Deputy City Manager/Finance Director at dan.legard@ci.kennewick.wa.us, or me at marie.mosley@ci.kennewick.wa.us if you have any questions regarding this information. Sincerely, Marie E. Mosley City Manager Letter from the City Manager 3 Don Britain was elected to Council in 2010. He been Mayor since January 2, 2018, and was again elected in January 2020 for a two- year term through December of 2021. Mayor Britain’s City Council term expires on December 31, 2021—Ward 1. Kennewick City Council meetings are open to the public and are held on the first and third Tuesdays of each month. In addition, Council holds workshop meetings on the second and fourth Tuesdays to discuss items of importance to the City. The City has a Council-Manager form of government. The City Manager is appointed by the City Council as the Chief Executive Officer of the City and is accountable to the Council for administration of all City business. The Mayor is elected by Council to serve for two years. Though Chairman of the Council and the presiding member at Council meetings, the Mayor has an equal vote with other Council members. Council members are elected by the citizens of Kennewick to serve a four year term. City Council exercises the legislative power of the City and determines matters of policy. Council John Trumbo—Ward 3 John.Trumbo@ci.kennewick.wa.us Chuck.Torelli@ci.kennewick.wa.us City Council Members Bill McKay—At Large Bill.McKay@ci.kennewick.wa.us Steve Lee - Ward 2 Steve.Lee@ci.kennewick.wa.us Mayor Chuck Torelli—At Large Brad Beauchamp—At Large Brad.Beauchamp@ci.kennewick.wa.us Jim.Millbauer@ci.kennewick.wa.us Jim Millbauer—At Large City Council ………………Page 3 Economic Development……Page 12 About the City…………… Page 4 New Projects …………… Page 13 City Services …………… Page 5 Southridge LRF……………Page 14 Financial Review…………Pages 6 - 8 Current City Projects………Page 15 Enterprise Funds…………Pages 9 - 11 Table of Contents 4 Kennewick is located in southeast Washington at the confluence of the Columbia, Snake and Yakima Rivers. With its sister cities of Richland and Pasco, the area is commonly known as the Tri-Cities. Kennewick is 29.2 square miles in size and, with a population of 84,960 is the largest of the Tri-Cities. The Tri-Cities Metropolitan Statistical Area has an estimated population of over 300,000. Kennewick has a strong manufacturing, food processing, retail trade and service economy. Tri-City residents enjoy an excellent school system, virtually non-existent traffic congestion, low crime rate, annual precipitation of less than seven inches, diverse outdoor recreational opportunities, and limitless regional attractions. Families have many housing choices from established neighborhoods to new construction developments. Whether you have animals and love the country life, or want to live next to a golf course, on the river, or near shopping and business, there is a home waiting for you in our community. Fun in the sun is a way of life in the Tri-Cities where river action abounds on the Columbia, Snake, and Yakima rivers. Located in the Heart of Washington Wine Country, the Tri-Cities boasts more than 200 wineries within a one-hour drive, producing some of the finest wines in the world. The Tri-Cities has 10 local microbreweries and 2 distilleries, all hosting unique events, so come and see what’s brewing! Recreation and sports enthusiasts will love their time in the Tri-Cities. The Columbia River is world-famous for its fishing of salmon runs, but anglers are also lured by walleye, bass, sturgeon and shad. Other activities enjoyed in the Tri-Cities include paddle boarding, kayaking, jet skiing, wakeboarding, bicycling, hiking, and hunting. Due in part to an exceptional climate, golf is one of the Tri-Cities' most popular sports. Ten beautiful courses challenge the most experienced golfer, and offer an enjoyable experience for the beginner as well. The recreational opportunities are endless, including 27 beautifully maintained parks. Columbia Park is the Mid-Columbia’s premier outdoor gathering place hosting over 75 special events annually: including the Water Follies Columbia Cup Hydroplane race. Don’t miss the 105 year-old fully restored beautiful Gesa Carousel of Dreams or the 9/11 Memorial located at the City’s Southridge Sports and Event Complex. Kennewick is the region’s shopping hub, and features many unique shops, public art, restaurants and a casual, easy-living vibe. Kennewick is a great place to visit and an even better place to live, come and check it out! Principal Employers in Area Pacific NW National Laboratory Kadlec Medical Center Kennewick School District Lamb Weston Washington River Protection Solutions Mission Support Alliance Pasco School District Richland School District CH2M Hill Hanford Group, Inc. Bechtel National, Inc. About the City - 20,000 40,000 60,000 80,000 100,000 Population and School Enrollment Population School Enrollment Number of high schools 4 Number of middle schools (6th - 8th) 5 Number of elementary schools 16 School enrollment 2020 18,563 Population 2020 84,960 Median age 2020 37.88 Median household income 2019 $59,533 Median housing value 2019 $215,500 Per capita personal income 2019 $49,354 Average unemployment rate 2020 7.90% (Benton County) Facts about Kennewick 5 Mocha $27.92 Coca-Cola $3.98 Chanel No. 5 $5,082.35 City Tap Water $0.002 Tide $19.17 Cost per gallon... The City of Kennewick earned the Well City Award for the tenth consecutive year during 2020. Our commitment to employee health has earned us a 2% premium discount on our Asuris Health medical premiums. The City qualified by meeting nine best practice standards for employee health, which will save the City approximately $130,000 on its 2021premiums. City Services 6 Where the Money Comes From... The following is an overview of the City’s financial operations for the fiscal year ended December 31, 2020. The data included in this review is not presented in accordance with generally accepted accounting principles (GAAP) as only selected information is presented. All data is, however, compiled from the City’s Comprehensive Annual Financial Report for the fiscal year ended December 31, 2020, which is audited by the Washington State Auditor’s office and is located on the City’s website https://www.go2kennewick.com. General governmental information includes the general fund (the City’s major operating fund) and other governmental funds (generally used to account for tax supported activities) and are reported using the current financial resources measurement focus and modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City’s current bond rating from Standard and Poor’s is AA, which is considered high quality and saves the City significant interest costs when issuing debt. Major sources of revenues include sales, property and utility taxes. Total general governmental revenues for fiscal year 2020 were $80,405,686. Taxes are the City’s most important source of funding and make up 80% of general governmental revenues. They include Sales & Use taxes (45%), Property and Road taxes (24%), Utility taxes (23%), Real Estate Excise taxes (5.6%), Lodging taxes (1.3%) and Gambling/Admissions taxes (.5%) and Other taxes (.5%). Most retail sales within the City of Kennewick are subject to an 8.6% sales tax, of which the City of Kennewick directly receives .85%. Retail trade activity is the biggest industry sector of the City’s sales tax activity however, due to the onset of the Coronvirus pandemic sales tax increased over the year by less that one percent. Over the first four months sales tax collections were very strong with a 9% increase, following the onset of the pandemic sales tax decreased an average of 18% on a year over year basis in May and June, and remained volatile the remainder of the year, ranging from year over year reductions of as much as 7% to increases as high as 11%. Sales tax did increase by an average of 5% over the final four months due to pent up demand and the impact of various federal stimulas-funding programs on consumer confidence and spending. Property taxes are local taxes assessed on property owned, such as real estate, and are measured by the market or assessed value of the property. The final property tax levy for 2020 increased by nearly 6% when compared to 2019. The increase was primarily attributable to growth that oc- curred in the City during 2019 and increased the tax rolls for the 2020 levy, including $159 million in new construction value added to the City’s assessed valuation. The remain- der of the growth in the levy was attributable to a 1% in- crease to the base levy as allowed under state law. Despite the increase to the levy amount in 2020, taxpayer delin- quencies increased significantly during the year due to the pandemic, resulting in a more moderate increase of 1% in the actual revenue received for the year. Utility tax receipts totaled $13.2 million for 2020, which rep- resented a 0.7% increase when compared to 2020. The City receives utility taxes from natural gas, garbage collec- tion, cable television, telephone, electric, ambulance, storm- water and water/sewer services. In 2020, the City experi- enced an increase in utility tax revenue from water and sewer, natural gas sales, garbage services, and cable ser- vices. However, these increases were almost entirely offset by reductions experienced in utility tax revenue from electric and telephone services. Electricity and telephone decreas- es are likely due to a reduction in consumption from com- mercial accounts that were required to close beginning in March under statewide safety restriction to reduce the spread of the Coronavirus. Financial Review 7 Licenses and Permits decreased 7% overall in 2020. Business licenses issued for the City decreased 7%. Construction per- mits declined by 10% compared to 2019. Both declines are attributable to statewide closures and restrictions resulting from the pan- demic. Intergovernmental revenues increased 177% in 2020, which is almost entirely attributable to federal CARES Act Coronavirus Relief Funds (CRF) funding passed through to the City from the State and Benton County. The City received over $4 million in grant funding to reimburse public safety personnel expenses associated with responding to the public health emergency. Charges for Ser- vices declined by 7% in 2020. This reduction is due to the closure of the City’s pool and inability to host tournaments and op- erate recreation programs due to the pandemic. Similarly schools were closed early and the City agreed to suspend its school re- source officer program until schools were reopened. Fines and Forfeitures decreased by 31%. These revenues derive from traffic infractions, restitution and other fines by the City through Benton County. From late March through the end of the year, District Court remained closed to the public under statewide safety restrictions which led to the overall loss in revenue in this category. Mis- cellaneous Revenue decreased by 59%. This revenue category includes interest earnings, revenue generated from the rental of City facilities, donations and contributions, and other miscellaneous sources. The primary factor in the overall decrease in revenue was a reduction in rental fees for parks facilities, which was directly associated with statewide restrictions to reduce the spread of the Coronavirus. City Taxes & Fees The City of Kennewick only receives a small portion of the taxes paid by the average household. Assuming an average 4-person family with a $200,000 home and household Adjusted Gross Income between $70,000—$80,000 per year AVERAGE FAMILY HOUSEHOLD How much does the City of Kennewick receive from the average household? Financial Review 8 Where the Money Goes... Actual activity for the City’s operating funds (General and Street) during 2020 resulted in an unassigned ending fund balance1 of $5.8 million. Additionally, the City maintains a $3 million cash reserve for revenue stabilization and contingen- cies. These ending fund balances exceed the City’s budgetary policy to maintain an ending fund balance of at least 5% of annual operating expenditures. Expenditures within the public safety function remained the same as in 2019. The Public Safety staff worked tirelessly during the Coronavirus pandemic, putting themselves and their families in harms-way to protect the City. The City is proud of and grateful for these special men and women. Expenditures within the general government function increased by 9% when compared to 2019. Transfers to the Medical Service Fund from the General Fund increased by $1.1 million in 2020, which was attributable to a timing is- sue and cash flow needs of the ambulance program in 2019 and 2020. How- ever, the entire amount budgeted for transfers to the Medical Services Fund occurred over this two year period. Culture and Recreation decreases were the result of a decrease in labor expenses for part-time and seasonal employees. The City was unable to offer many of its normal recreation programs and did not open its pool to the public in 2020. Additionally, the City de- layed hiring seasonal parks maintenance employees for several weeks at the onset of the pandemic. Street Maintenance increases in 2019 were attributed to increased costs for snow and ice removal due to a series of extreme winter storms. Luckily the winter weather returned to expected levels in 2020. The expenditure reduction in Planning and Economic Development reduction was due to several vacant full-time positions that were not filled during the pandemic. This resulted in an over $350,000 dollar savings from the Planning and Economic Development de- partments. Capital Outlays in 2020 were for transportation projects, which can fluctuate from year to year depending on different phases of the projects. A variety of construction projects across the City were in progress at the close of the year, including the construction of a new fire station #3 and construction of a new intersection at Ridgeline and State Route 395. A variety of other projects were in pro- gress during 2020 for street reconstruction, street widening, street overlays, storm drainage, park improvements, city wide technology improvements and other information system purchases. 1The unassigned classification of fund balance is the residual classification for the government’s General Fund and includes all spendable amounts not contained in the other classifica- tions. In other funds, the unassigned classification will be used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. Financial Review 9 The City maintains six different enterprise funds. These funds are intended to be financially self-sufficient as, over time, their rate structure is designed to generate enough revenue to cover the cost of operating expenses and other financial obligations. The City of Kennewick uses enterprise funds to account for its Water and Sewer Utility, Medical Services Fund (ambulance service), Building Safety Fund (building inspection), Stormwater Utility Fund, Columbia Park Golf Links Course and the City’s Coliseum facility. The Water and Sewer Fund is by far the City’s largest enterprise fund. The utility had 25,038 active water accounts and 20,370 ac- tive sewer accounts as of December 31, 2020. The utility had an adjusted budget of $85.3 million for the 2019/2020 biennium, in- cluding $41.3 million for capital projects. City Council approved a 3.15% increase to water rates and a 5.4% increase to sewer rates in both 2019 and 2020 based on an update in 2018 to a comprehensive rate study that was completed in 2016. The City completed investigating a newly proposed treatment train to handle biosolids at the wastewater treatment plant. Rather than using anaerobic digestion, this option would use a combination of belt pressing, greenhouse solar drying and belt dryer pasteuriza- tion to result in Class A biosolids. The City completed pilot tests to determine feasibility in Kennewick’s climate. This proposal has the potential for significant cost savings over the more conventional anaerobic digestion originally contemplated for the plant. As- sessment of capital and operational costs were completed in the fall, which identified this new method “Florida Green” as the pre- ferred alternative. A Progressive Design-Build process has been selected and further evaluation is underway . The City issued $12.5 million of Revenue Bonds in December of 2019 for design and replacement of a 10 million gallon reservoir at 18th & Kellogg which has become structurally deficient and shows continued signs of structural degradation. Major excavation is complete and the reservoir floor has been poured and wall and column are being erected. Replacement of the 30” inlet/outlet pipe is currently underway. Construction is on schedule. The City received a $6 million Public Works Trust Fund Loan to finance the implementation of an Advanced Metering Infrastructure (AMI) system throughout the City, the first phase will begin in 2021. The Stormwater Utility Fund was created for maintenance and operation of the City’s stormwater runoff on City streets. A storm- water rate study was completed during 2017 to assess the overall financial condition of the utility. Kennewick City Council approved modifications to the stormwater utility’s rate structure based on the results and recommendations from this rate study, including a $1.30 increase to the base monthly stormwater charge in both 2018 and 2019. These modifications brought the utility’s rate structure to a level that is more in line with other local jurisdictions and allows the utility to meet its ongoing financial obligations. Enterprise Funds 10 The Building Safety Fund is utilized to isolate the costs of providing the building inspection function including equipment replacement charges and administrative costs. The Building Safety Division issued 1,992 permits in 2020, with a valuation of approximately $212 million. This represented a 10% decrease in the number of permits issued, and a 19% decrease in overall permit valuation when com- pared to the prior year. It is difficult to quantify the impact that the COVID-19 pandemic had on building activity in our region in 2020, but undoubtedly, the restrictions that were in effect in March and April to limit non-essential activities and slow the spread of the virus affected all development in our community. The Medical Services Fund is utilized to account for the third-party ambulance billing program as an enterprise operation. The primary revenue source for the Medical Services Fund is the net revenue received from ambulance transports. After experiencing a 6% in- crease in the number of billable transports in 2019, the number of billable ambulance transports declined by 2% in 2020, likely due to the reluctance of some patients to be transported to the emergency room during the first few months of the pandemic. In addition, the City now participates in the Ground Emergency Medical Transport (GEMT) program, which is a program for publicly owned ambulance service providers that serve Medicaid patients in Washington State. The program was established under legislation in 2015 and pro- vides supplemental payments to cover roughly half of the significant funding gap between a provider’s actual costs per eligible transport and the allowable amount received through Washington Apple Health (Medicaid). For the 2019/2020 biennium, the City rec- ognized revenue of $5.2 million from this program, which includes retroactive payments for approximately 1,600 eligible Medicaid transports that were completed from July of 2016 through June of 2018. Additionally, the Medical Services Fund received approximately $4.9M in revenue through the utility’s monthly household ambulance availability charge in 2020, which is assessed to all residential, multi-family, and commercial units within the City. In 2019 the City received a $2.4M federal Staffing for Adequate Fire Emer- gency Response (SAFER) grant to pay for a portion of 12 new fire fighter positions that will ultimately be needed when the City builds fire station #6 in the Southridge area in the future. Under the parameters of the SAFER grant, the City was reimbursed for 75% of the personnel costs for the new positions for the first 2 years, and is now receiving 35% for the last year. After year 3, the City will be fully responsible for all of the costs associated with these new positions. In 2019 the City implemented a change in methodology for allocating per- sonnel costs between governmental activities for fire suppression and business type activities for ambulance services. The change was based on actual response data for the department that indicates approximately 85% of personnel time is spent on responding to emergency medical calls and providing ambulance transports which equates to approximately $3.9M. The methodology change was budget neutral as the increased costs are offset by a transfer from the General Fund. Enterprise Funds 2020 2019 Single Family Permits 299 345 Commercial Permits 157 219 Other Permits 1536 1643 Total Permits 1992 2207 Permit Valuation $211,584,742 $261,465,505 Building Permit Fees $1,706,629 $2,249,856 Planning Fees $91,489 $115,235 New Construction Activity Comparative Totals 11 The Columbia Park Golf Course Fund was established on January 1, 2011 and accounts for the operating and maintenance, capital and debt service costs related to the operation and management of the Columbia Park Golf Course. The City contracts with CourseCo, Inc. to manage and operate the golf course on behalf of the City. Operational contributions have been provided through transfers from the general fund since the inception of the contract. The Columbia River Landing facility is located at the Columbia Park Golf Course and serves as a clubhouse for the golf course and also provides a full service kitchen and beverage service with a river view patio. The Coliseum Fund accounts for the operating activity of the City’s Coliseum facility, known as the Toyota Center & Arena, as a sepa- rate enterprise including debt service associated with the acquisition of the facility. The City assumed full ownership of the facility and a second sheet of ice in August of 2000. The City has an agreement in place with the Kennewick Public Facilities District (KPFD) Board to oversee management of the facility in conjunction with its own Three Rivers Convention Center facility. The KPFD is a com- ponent unit of the City and is not included in the financial information in the PAFR, but is included in the City’s Comprehensive Annual Financial Report. The facilities ended 2020 with a net operating loss of $563,471. The results for 2020 reflect the devastating impact the pandemic had on the operations of the buildings since March when it began. Events held at these facilities were determined to be non-essential activities under Governor Inslee’s statewide restrictions to reduce the spread of the coronavirus throughout the year, leaving sponsor- ships as the only source of revenue for the remainder of the year. The KPFD contracts out the management of the Toyota Center and Arena to VenuWorks, who was successful in obtaining a $317,638 federal CARES Act Paycheck Protection Program (PPP) loan in April for their personnel and utility expenses for the build- ings during April, May and June. The purpose of the PPP is to provide an incentive for businesses to keep workers on the payroll during the pandemic. Under the program, if the employee retention criterion is met, and the funds are used for eligible expenses, the loan will be forgiven. THREE RIVERS CONVENTION CENTER TOYOTA CENTER & ARENA Enterprise Funds 12 Kennewick continues to be at the forefront for statewide growth in almost every way. The retail hub for Southeastern Washington, the City benefits from a talented labor pool, steady job market and low cost of living. Kennewick’s population growth is mainly due to the relocation of families and individuals that are attracted to the region’s high quality of life and the tendency of employees from the Han- ford Nuclear Reservation and Pacific Northwest National Laboratory (PNNL) to stay in the region after retirement. This population growth has brought increased economic vitality to the region. The increased business and development activity has translated into growing tax revenues for local government entities, with a strong retail base being the most prominent component of Kennewick’s economic power. Kennewick offers a good strategic location, which also makes it an attractive location for business. The region is easily accessible by two major interstates, three ports, an extensive railway system, is within a three-hour drive of Seattle and Portland, and Spokane is just 2 hours away. The Tri-Cities is served by four major airlines connecting non-stop flights to major destination cities including: Se- attle, Denver, San Francisco, Las Vegas, Salt Lake City, Minneapolis, Chicago, and Phoenix. Our Economic Development Team is working with the com- munity to help make local events a success! Helping local business promote the 1st Thursday in Historic Downtown Kennewick that showcases music, art, & shopping events; creating an interactive art map highlighting over 40 public art pieces around the city; and completing the first Downtown StrEatery program. Our federally funded Community Develop- ment Block Grant put those resources to work this year in many ways. Upgrades were made to Underwood Park’s bas- ketball court and Monop- oly Park’s play structure and picnic areas, provid- ing $157,000 in new infra- structure. A new Micro-Homes project is underway, and the infrastructure was completed in 2020, utilizing $161,000 in block grant funds. Our federally funded Community Development Block Grant pro- gram put those resources to work this year in many ways. Up- grades were made to Underwood Park’s basketball court and Monopoly Park’s play structure and picnic areas, providing $157,000 in new infrastructure. Youth and ARC recreation scholarships were also awarded, totaling $57,000 in block funds. The Meals on Wheels program received $23,000. The HOME Investment Partnership, which is also a part of the federal Block Grant program, provided down payment assis- tance to 5 first-time home buyers. Tri-Tech Skills Center is now complete, adding 16,000 square feet, a new location for the Culinary Arts program, and a new space for the Pre-Physical Therapy program. Economic Development 13 Historic Waterfront District—Columbia Gardens Wine & Artisan Village A transformation of Kennewick’s Historic Waterfront District - Columbia Gardens Urban Wine & Artisan Village—is being de- veloped in phases in partnership with the Port of Kennewick. Columbia Gardens has added four winery buildings and a food truck plaza, with additional public art and streetscape improve- ments along Columbia Drive. It includes bicycle and pedestrian pathways along a scenic waterfront with multiple wineries al- ready in place as well as many food trucks onsite daily. The planned vision includes craft breweries, restaurants, and bou- tique shops to enjoy with outdoor concerts and wildlife along a scenic nature trail. Vista Fiel Nw Vista Field—The New Urbanism Approach This project’s vision creates a new urban core for the Tri- Cities; focused on mixed-uses, vibrant public spaces, multi- modal access, pedestrian-scale streets, and a density of devel- opment not typically found in this region. At full completion, it will be creating as many as 3,380 jobs, 1,000 residential units, and $51 million in new infrastructure. The additional $408 mil- lion in new taxable buildings will generate revenues to police, fire, schools, and more. Ground-breaking occurred in 2018 and work has continued on building the infrastructure and prepping the first parcels that are expected to be ready in 2021. New Projects 14 Southridge LRF—A Great Investment! Return on Investment of 491% Since the Southridge LRF project was implemented beginning in 2010, the State of Washington has received approximately $26.6 million in new sales and property tax increments, as compared to state contributions towards the project of only $4.5 mil- lion during this same timeframe. State LRF Contribution $4.5M The Southridge Local Revitalization Financing (LRF) project was established in 2009. As of December 31, 2020, 72 new businesses had located within the Southridge Area, resulting in approximately 1,019 new full-time jobs that generate an estimated $82.6M in wag- es and benefits each year. Approximately $30.4M in new sales and use tax has been generated for the state and local governments within the Southridge Local Revitalization Area from 2010—2020. In 2020 alone, $2.6M in new sales and use tax was generated through activity within the LRF Area. Of this amount $1.9M went to the state and $258,000 went to the City. The Dugout Sales and Property Tax Received by State $26.2M Southridge LRF JUB Engineers The Dugout patio 15 18th & Kellogg 10.0 MG Reservoir Replacement The project entails the reconstruction of a 10 million gallon reservoir which was built in 1959 and has become structurally deficient and shows continued signs of structural degradation. Initial planning level efforts began in April 2018 and helped determine the nec- essary funding and the construction timeline. Design and bidding were complete in late 2019 and construction began in early 2020 with anticipated construction time of 18-24 months. With construction underway, staff and the City’s contractor have coordinated with adjacent homeowners as well as the Creekstone HOA to ensure they are aware of construction activities. Major excavation is com- plete and the reservoir floor has been poured and wall and column are being erected. Replacement of the 30” inlet/outlet pipe is cur- rently underway. Construction is on schedule. Current City Projects US 395/Ridgeline Intersection This project will construct a new interchange at US 395 to provide full access to Ridgeline Drive, and is funded by a variety of sources including a $648,950 Federal Surface Transportation Program grant, a $6,000,000 PWTF loan, a $1,944,259 Federal National Highway Freight Program grant, and a Connecting Washington grant of $15,000,000. The construction contract has been awarded to Scarsella Bros., Inc. The contractor has completed the bypass route and has moved traffic onto it. The contractor will now begin work on the over- crossing, Ridgeline Drive, and complete utility work.   Fire Station No. 63 This project includes a new 12,570 sq. ft. fire and emergency medical service response building, to replace the current station that was built in 1978. The project included demolition of the existing station and relocation of the new station to Grandridge Blvd. This modern fire station will be suited for the diverse workforce the Kennewick Fire Department employs, and will incorporates current decontamination best practices. The facility has been designed to not only meet current needs, but also to anticipate future needs as well. 16 210 West 6th Avenue Kennewick, WA 99336 www.go2kennewick.com Phone: (509) 585-4200 / Fax: (509) 585-4383