County completes purchase of Tacoma office building
Pierce County has announced the completion of acquiring a downtown Tacoma office building located at 1501 Market St. The building purchase is the next step in the County’s Justice Center and Space Planning Study – an initiative to convert the County-City Building (CCB) into a Justice Center campus to improve service delivery and public access.
County Council approved the $27,271,000 purchase of the 149,330-square-foot office building and adjacent parking lot sold by Regence BlueShield. The purchase was funded through a $50 million bond sale. The County received a AAA bond rating, the highest rating a municipal government can be awarded, resulting in a 4.357% interest rate.
“The County received favorable treatment in the bond market because of our high rating,” said Bruce Dammeier, County Executive. “Thanks to our continued fiscal discipline and transparency practices, we are able to yield tangible results for Pierce County taxpayers as we fund this purchase and future building renovations at the new and current sites.”
With the new building purchase, the County intends to make the CCB located at 930 Tacoma Ave. S. a dedicated Justice Center to serve the growing needs of judicial and law enforcement operations for both the County and City of Tacoma. The first phase of the Justice Center project is to relocate administrative offices not related to justice programs to the new building, which includes Council, Executive, Communications and Sheriff’s administration departments. Renovations at the CCB begin in late 2023 and will continue until 2026.
The purchase also allows for consolidation of County-leased spaces and maximization of County-owned spaces, a cost savings for taxpayers. Other departments and functions currently expected to move into the new building include Economic Development, Facilities, Human Resources, Human Services, IT and Risk Management. Renovations at the new building begin November 2023. Full move in and operations based out of the new building are planned for 2025.
Lee & Associates helped evaluate options, find the ideal property and close the sale for the County.
At the direction of the County Executive, Pierce County’s Facilities Management Department completed a Justice Center and Space Planning Study in 2022 which analyzed the expected 20-year needs for justice-related services. The study recommended the County convert the CCB into a comprehensive Justice Center; a single building for law and justice programs allows for more space and efficiencies for courtroom functions, improves customer service, and realizes a significant cost savings for the County as compared with new construction.
The 64-year-old CCB has exhausted all available space through renovations and expansions to accommodate increased court-related operations over the years.
For more details, visit piercecountywa.gov/justicecenter.
Budget Development Update
On Thursday, Sept. 28, the Pierce County Council received an overview of the Executive’s Proposed 2024-25 Budget from Finance Director Gary Robinson. The budget includes 82 different funds, with the General Fund being the largest, accounting for 31% of total County spending. Much of the presentation focused on revenues and expenditures, including a discussion about why the County maintains a reserve to cover 50 days of county operations. Of note, the Executive’s Proposed 2024-25 Budget increases spending by $38.5 million from the 2022-23 Budget. You can view the entire presentation here.
There were four primary economic assumptions that guided the development of the Executive’s Proposed 2024-25 Budget. They are:
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Rising interest rates will result in a period of slower economic growth in 2024, particularly in the building and construction sectors.
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Reduced construction activity, a major driver of sales tax revenue in Pierce County, will result in lower levels of sales tax collections, recording fees, and other revenues sensitive to the real estate market.
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Higher short-term interest rates on County investments will result in increased interest earnings revenue.
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Moderate economic growth is expected to return in late 2024 and 2025, but at lower levels than the significant growth seen during 2020 through 2022.
Robinson’s presentation also included an overview of the various budget ordinances and resolutions necessary to implement the budget. In addition, Assistant Finance Director Julie Demuth presented information on the formulation and distribution strategy of a budget survey, along with the responses that were received. You can view that survey presentation and conversation here.
The Council will hold six more meetings of the Committee of the Whole through Wednesday, Oct. 25, where they will hear from County Departments and separately Elected Officials on the Executive’s Proposed 2024-25 Budget. The meetings will provide time for Departments and Elected Officials to explain their proposed budgets, how they align with community and Council priorities, and respond to Councilmember questions. The Council’s budget deliberations will largely take place during budget retreats, with the first scheduled for Thursday, Oct. 26, at 9:30 a.m. The Council will continue to use the budget priorities established in Resolution No. R2023-106 to guide its decision-making process.
For the full budget development schedule, please visit the Council’s 2024-2025 Budget Development website.
Majority of Council Supports Creation of Permanent Commission on Equity
After significant public engagement, the Pierce County Council voted 4-3 to establish a permanent Commission on Equity to serve as an advisory board to Pierce County government’s legislative and executive branches, at the Tuesday, Sept. 26, Council meeting. The purpose of the Commission is to promote equity in Pierce County by hearing, engaging, and collaborating with communities. In addition, Commission members will serve as a conduit to promote two-way communication between the community and its decision-makers.
The Commission is tasked with developing recommendations and promoting policies and actions that ensure all people have access to the resources and opportunities necessary to achieve their full potential – regardless of race, ethnicity, gender, sexual orientation, income, neighborhood, or other factors.
The Commission will consist of 11 members – one member from each Council District, one tribal government-appointed representative, one enrolled tribal member, one member between the ages of fifteen and seventeen at the time of appointment, and one member between the ages of eighteen and twenty-one at the time of appointment. All members shall be residents of Pierce County.
The Ordinance – Ordinance No. 2023-36 – still requires the Executive’s signature before it is considered final. You can watch the debate and public hearing here.
We Have a Podcast!
Jaire Winesberry, whose voice you may recognize from our Council and Committee meetings, sat down with Council Chair Ryan Mello (District 4) for a conversation on the County Budget for our latest episode of County Talk! We’re beginning development of the 2024-2025 Biennial Budget, but what is in the County budget, and more importantly, how do you prioritize the allocation of $3 Billion? Learn about this and more here and stay tuned as budget season shifts into full gear.
There’s other stuff you may be interested in here: cvcpl.us/wx4Q4Hi
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