Tacoma City Council Study Session: Budgets, Legislative Agenda, and Urban Wood Reuse - October 29, 2024

The Tacoma City Council held a study session on October 29, 2024, at 12:00 PM in Council Chambers. The meeting focused on the proposed 2025-2026 biennial operating budgets for Tacoma Venues and Events (TVE) and Internal Services, followed by the 2025 legislative agenda and a council consideration request for an urban wood reuse program. No formal votes were taken; the session served as discussion and direction for staff.

Discussion Items

• Proposed 2025-2026 Biennial Operating Budget – Tacoma Venues and Events (TVE): Director Adam Cook presented the TVE budget, highlighting key initiatives including a proposed excise tax on food and beverage sales at the Tacoma Dome and Greater Tacoma Convention Center to fund community events (estimated $450,000–$600,000 annually). The tax would be on the seller (Eurest) and not directly passed to consumers, though prices could adjust by $0.25–$1. TVE reported balanced budgets for the Dome and Convention Center for 2025-2026. Other proposals included $2 million in city funding for Cheney Stadium repairs (total $5 million with $3 million state grant), a master plan for the Dome and theaters (mid-2025), and a focus on larger convention events (e.g., 39,000 future room nights booked). The department also plans to reduce general fund support for community events by transferring $381,000 to other TVE-managed funds. Councilmembers expressed support for the excise tax and for ongoing support of resident arts organizations (RAOs), noting an 82% increase in community event grant requests since 2022 and a 62% decrease in average award sizes.

• Internal Services Budget: Deputy City Manager Hyun Kim presented the internal services budget, covering departments like IT, HR, Finance, and Safety. Key points included a $30 million third-party liability fund for insurance and claims, with insurance premiums rising from $4.5 million in 2019 to $12 million in 2023 (160% increase). Legal claims increased 35% and average cost per claim rose 147%. The city received a bond rating upgrade to AA+ from Fitch. IT Director Daniel Keys highlighted a major ERP system upgrade (SAP S/4HANA) costing $18 million, with go-live expected end of 2025. HR initiatives included creating a paid internship program and employee affinity groups. Safety programs aimed to reduce soft tissue injuries (65-70% of city injuries). Councilmembers inquired about risk reserves and the connection between national disaster trends and local claims. Staff clarified that the natural disaster graph (NOAA data showing 28 billion-dollar events in 2023) illustrates the broader risk environment, while city claims are driven by law enforcement and public works.

• 2025 Legislative Agenda: Chief Government Affairs Officer Sonja Hallum and Senior Advisor Alex MacBain presented the draft legislative priorities. Three top priorities were identified: (1) support for legislation allowing cities to raise property tax collections beyond the current 1% cap (up to 3%, but not mandatory); (2) $9 million for emergency homeless shelter operations; (3) funding for the Fishing Wars Memorial Bridge. Additional secondary priorities included a study on sidewalk utilities, addressing transfer of state highway obligations (e.g., SR 167 segments), and extending the property tax exemption for ADUs rented to low-income households to Pierce County (currently only in King County). Councilmembers debated prioritization; consensus emerged to keep the top three as tier-one priorities and the remaining as tier-two, with a caveat to revisit after the November 5 election. Councilmember Hines expressed less support for the property tax cap increase, preferring policies that promote homeownership. Staff noted that the final agenda will be adopted on November 19 after a November 8 special meeting.

• Urban Wood Reuse Program Assessment and Action Strategy: Deputy Mayor Hines presented a council consideration request for $20,000 (matched by $20,000 from Solid Waste/Environmental Services) to contract with Cambium Carbon, the only U.S. company providing urban wood reuse assessments. The program would evaluate options for repurposing removed city trees (e.g., into furniture, biochar) and align with the city’s climate action and green economic development strategies. Councilmembers Walker and Rumbaugh co-sponsored. Staff confirmed the assessment will be citywide and completed by early 2025.

Key Outcomes

• Council directed staff to proceed with the excise tax ordinance for TVE, to be presented later this year.
• Council expressed general support for the three top legislative priorities and agreed to refine the list after the November 5 election, with a final adoption on November 19.
• The urban wood reuse request was endorsed; staff will proceed with contracting Cambium Carbon.
• No formal votes were taken; study session items will be brought forward for action at subsequent regular meetings.