Local governments can use ARPA funds to:

1. Offset revenue losses attributed to COVID. We had a significant increase in sales tax due to online ordering during COVID and it has continued through the present day.

2. Provide assistance to individuals or businesses that incurred losses due to COVID. We had no request for funds from individuals. I contacted our 5 Brier business and did not receive any request for funds. The funds were turned back over for the State to distribute to our county where needed and any of our citizens were eligible to request funds through the County's programs.

3. Pay essential workers. We did not have an increase in our expenses for our essential workers. Since our city hall is set up with separate workspaces, we were able to keep all staff working in the office during the entire pandemic.

4. Invest in public utilities such as sewer treatment plants. We do not operate a sewer treatment plant.

5. Extend broad band. To my knowledge, broadband is already widely available to our residents. No requests or complaints from people not having access.

ARPA funds were designed for onetime cash infusions but not recommended for ongoing expenditures or programs due to sustainability.

Complying with numerous requirements governing the use and distribution of ARPA funds is complex and resource consuming for cities. Audits have demonstrated the need for significant internal controls to ensure compliance with all federal requirements. The requirements include: audited financial statements, understanding all permitted expenditures, reporting suspicious allocations, sub receipt monitoring, filing self-attestation forms, reviewing supporting documentation, attending frequent eligibility meetings, scheduling federal grant compliance audits and accountability meetings.

Cities were also tasked with checking that vendors and recipients were not on the federal suspension or debarment lists. This is required to be done ahead of time. In addition, there was the need to create revenue recognition reports. Cities also were required to have adequate internal controls to ensure accurate and appropriate reporting in advance and the elimination of interfund reimbursements on appropriate financial statements. We would have also been mandated to report on investigation of citizen hotline referrals.

In my opinion, this would have placed a significant burden on our small and already hardworking staff.

The city is asking voters to consider annexing to South County Fire. Annexation would maintain the level and quality of fire/EMS and allow the city to retain revenue for police and other services residents want.

The city contracts with South County Fire for fire and EMS. This contract is set to expire and South County Fire cannot renew it without a substantial cost increase. Brier also has its own police department, which residents want to continue funding.

Brier is not collecting enough revenue to fund fire/EMS, police and other city services residents want. The contract with South County Fire is set to expire and cannot be renewed without a substantial cost increase. The city has been using reserves, which will run out by the end of 2026.

Brier pays for its contract with South County Fire out of the city taxes it collects from property owners. In 2023, this equates to $0.58 per $1,000 of assessed property value - an EMS levy of $0.21/$1,000 and $0.37/$1,000 of the city's general property tax. This leaves just $0.14/$1,000 of the city's general property tax levy for the police department and all other city services.

Yes, Brier hired BERK Consulting to review the financial impacts of funding all police, fire and EMS and other city services. The report says that maintaining the status quo will deplete the city's general fund by the end of 2026. BERK found that annexing to South County Fire will allow the city to remain financially solvent.

The reports can be found on the city's website at www.ci.brier.wa.us.

Brier has one of the lowest property tax rates of any city in Snohomish County and has not increased its levy rate since 2009. The city's contract with South County is expiring. The contract was signed almost 20 years ago and Brier property owners have benefited with significantly lower rates for fire and EMS - and that's ending. South County Fire cannot renew the contract without a substantial cost increase.

The city fire contract is set to expire. Emergency calls and costs have increased significantly compared to 20 years ago when the contract was signed. By law, a contract for service cannot be less than the rate paid by property owners in the fire authority. (RCW 43.09.210)

The city currently isn't part of the fire authority. Brier residents are served by a fire and EMS contract the city has with South County Fire. That means Brier property owners pay the city, which, in turn, pays South County Fire for service. In effect, the city is the middleman between Brier residents and South County Fire.

The city is asking voters to consider annexing to South County Fire during the April 25, 2023 Special Election. This means property owners would pay South County Fire directly for fire and EMS starting in 2024. Annexing to the fire authority would maintain the quality and level of emergency services and retain funding for other city services, such as the police department.

In 2023, the combined rate for fire and EMS is $0.58 ($0.37 from the general property tax levy + $0.21 EMS levy) per $1,000. The annual cost for the owner of a $950,000 home (an average for Brier) is $551.

In 2023, a Brier property owner would have paid South County Fire:

A combined fire/EMS levies of $1.10/$1,000 and would no longer be paying city EMS levy of $0.21/$1,000 for a net levy increase of $0.89/$1,000.

A benefit charge based on structure square footage and use:

Home size 1,000 sq ft 2,000 sq ft 3,000 sq ft

Benefit charge $49.82 $70.46 $86.29

For the owner of a 2,000-square-foot house with an assessed property value of $950,000, considered average in Brier, the net increase would be $915.96 annually ($76.33 a month).

Most Snohomish County property owners pay close to $2 per $1,000 for this quality and level of fire and EMS response. South County Fire charges the equivalent of $1.22 per $1,000. If voters approve annexation, Brier property owners would still pay less than the median charge for fire and EMS.

According to the BERK report, revenue must be retained to fund existing city services, such as the police department. The city has been using reserves to maintain daily operations, which is not sustainable.

If the city gave back the $0.37 per $1,000, it would reduce the general property tax levy to $0.18 per $1,000. The total collection at that rate would be $432,488. Total General Fund expenses for the city of Brier in 2023 were $3,048,080, which does not include fire and EMS. This means the city would be financially insolvent in 2025.

The retained revenue is not a surplus for new projects; it would fund the existing budget passed by the City Council last fall. Residents are always encouraged to communicate their priorities with councilmembers as part of the city's annual budget process.

The city collects approximately $500,000 in sales tax revenue for online, home occupied and storefront businesses per year. This amount has been included in projections that show revenue collections are not enough to sustain city operations.

No. If voters agree to annex, there would only be one EMS levy paid to South County Fire and the city would no longer collect an EMS levy.

By state law, the city is required to pass a balanced budget. If annexation is not approved, the city will need to pay higher contract costs, and the City Council will consider non-voted revenue options, such as special taxes, fees and special assessments. Other voter-approved revenue options include increasing the EMS levy to the full $0.50 per $1,000, a special levy for police and an increase to the general property tax levy. If voters do not support these requests and the status quo is maintained, the city's general fund would be depleted by the end of 2026. (Citation: BERK Consulting report at www.ci.brier.wa.us.)

Sales tax is not a significant revenue source for the city. Brier is a residential bedroom community with almost no commercial development. For example, there are only five businesses in the city from which sales tax is collected. There is not sufficient commercial space to attract new development.

South County Fire is a separate taxing district authorized to provide fire and EMS services. It serves unincorporated southwest Snohomish County and the cities of Mill Creek and Lynnwood. It also provides fire and EMS to the cities of Brier, Edmonds, and Mountlake Terrace under three separate service contracts. (Brier and Mountlake Terrace are asking voters to consider annexation in 2023 due to budget constraints.)

A regional fire authority is a special purpose district established by voters in a service area that provides funding for fire and emergency medical services. A RFA can be made up of cities, fire districts or a combination of the two. Creation of a RFA is authorized by state law (Chapter 52.26, Revised Code of Washington).

South County Fire funds emergency services with a fire levy capped at $1 per $1,000, an EMS levy capped at $0.50 per $1,000 and a fire benefit charge. In 2023, the equivalent rate for all three is $1.22 per $1,000 of assessed property value.

A fire benefit charge funds emergency services based on the size and use of a building. It takes into consideration that those who benefit more from fire protection services (such as high fire-risk structures, such as a large commercial building) should pay more for service than smaller ones (such as single-family homes). This charge would appear on your property tax statement and be paid along with your county property taxes.

A fire benefit charge is voter-approved. Traditional funding models for emergency services are based only on a property's assessed value. That means two houses of the same size could be charged differently. However, the cost to defend them in a fire is likely the same. A fire benefit charge is based on a structure's size and risk of fire, which many people feel is a fairer way to charge for emergency services.

The city considered starting its own fire department, which was the most expensive option. It reached out to other providers to determine if they could provide fire/EMS services under contract and learned that a significant cost increase would be necessary to maintain the quality and level of emergency services for residents. All other agencies the city contacted could not provide Brier property owners with faster response times or lower costs than South County Fire.

Annexation means that property owners would pay South County Fire directly for fire and EMS. It eliminates the city as the intermediary.

South County Fire is the most cost-effective provider for our residents. The city has a long history of being served by South County Fire. City emergency service needs are part of South County Fire's response plan. There is an established relationship with firefighters who live in and respond to the city. The city wants to continue this relationship to ensure that response times are the fastest possible, service levels are uninterrupted, maintained and improved.

ARPA funds were a priority for cities dependent on sales tax to help local businesses. Brier has just five businesses. ARPA funds also were a one-time payment that would not provide a sustainable source of funding for emergency services.

Brier residents require a 24-hour fire and EMS response. Volunteer firefighters have jobs, families and other commitments that limit their response capabilities. A full-time fire department would be twice the cost of what South County Fire offers. This cost includes the issue that South County Fire owns the station and emergency apparatus that serves our city. There is not enough city revenue to purchase the station, fire engines or other equipment that is needed for a standalone department.

Assessed value increases of your property do not correlate to revenue increases for the city. By law the city is limited to a 1% revenue increase per year. This 1% limit provided $12,000 in additional revenue for the city in 2023. The average homeowner ($950,000) pays the city $484.50 per year for all services, such as fire, police, parks, planning and community events. This is not sustainable. The levy for EMS is an additional $199.50 per year.

There will be no change to service levels if voters approve annexing to South County Fire. Firefighters and Paramedics would continue responding from the Brier Fire Station 24-hours a day.