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Home My WebLink About*Other - BOCC (002)Grant County,, Washington Limited Tax General Obligation Bonds, 2022 Presentat6ion to S&P Global Rat'ingl Rating WebEx Meeting: July 25 2022f 2:00 PM(PDT) Event address for https:/Igrantcowa.webex.com/arantcowa/onstage/q.r)hp?MTID=e1 b71 1 Odel 82 attendees: 18a327ba322aaed7ae011 Event number: 2487 096 7729 Event password: BOCC-JUL25 Video Address: 24870967729@grantcowa.webex.com You can also dial 173.243.2.68 and enter your meeting number. Audio conference: To receive a call back, provide your phone number when you join the event, or call the number below and enter the access code. United States Toll +1-408-418-9388 Show all global call-in numbers Access code: 2487 096 7729 D�A�DAVIDSON FIXED INCOME CAPITAL MARKETS Jim NELSON SENIOR VICE PRESIDENT D.A. DAVIDSON & CO. COLUMBIA CENTER, 701 FIFTH AVE., SUITE 4050 SEATTLE, WA 98104 PHONE: (206) 389-4062 CELL: (206) 713-9354 EMAIL: JNELSON@DADCO.COM WebEx Meeting with S&P Global Ratings Date: July 25, 2022, 2:00 PM Pacific Time Participants Mr. Danny Stone Commissioner Grant County,, Washington Ms. Cindy Carter Commissioner Grant County, Washington Mr. Rob Jones Commissioner Grant County Washington Ms. Barbara Vasquez Clerk of Board/Admin. Assistant Grant County Ms. Katie Smith Chief Financial Officer, County Auditor's Office Grant County Mr. Jim Nelson Underwriter/Senior Vice President D.A. Davidson & Co. Mr. Brian Phuvan Lead Rating Analyst S&P Global Ratings Ms. Caroline Baird Secondary Rating Analyst S&P Global Ratings Mr. Darryl Pheasant Treasurer Grant County,, Washington Mr. Tom Gaines Central Services Director Grant County,, Washington Ms. Melissa McKnight Assessor Grant County, Washington Mr. Brant Mayo Executive Director Grant County Economic Development Council Pale 1. Introduction..........................................................................................1 2. The Bonds.............................................................................................2 3. The County............................................................................................5 4. County Debt and Taxes.......................................................................11 5. County Financial Operations...............................................................18 6. The Economy.......................................................................................21 7. Conclusion...........................................................................................40 1, Introduction {Tom Gaines} Grant County's Limited Tax General Obligation Bonds, 2022 present the opportunity to review the County's credit developments since the last full rating review in 2016. Noteworthy are the following credit strengths: 1. Continued economic expansion, with $1.2 billion of new construction since 2018; 2. Diverse local economy, with focus in agriculture, food processing, energy -intensive technology and manufacturing; 3. Strong available current expense fund reserve position of $17.3 million (31.8% of current expense fund expenditures) and road fund reserve position of $9.2 million (58.5% of road fund expenditures); 4. Stable revenue sources, with property taxes constituting 39% of 2021 tax revenues, sales taxes 51%, and other taxes 10%; 5. Strong pledge of the County Current Expense Fund for the LTGO Bonds plus its share of the new voter -approved 0.3% Law and Justice sales tax; 6. From a budgeting standpoint, ample projected coverage of the 2022 LTGO Bond debt service by the County's Law & Justice sales tax revenue starting at 1.63 times in 2022, dropping to 1.06 times in 2023 and growing steadily thereafter; 7. REC has agreed to pay Grant County $13,500,000 to settle an ongoing tax appeal. REC is paying the settlement in installments over a 7 -year period, with the last payment on 12/15/2026. 8. Experienced management with a history of conservative financial practices; 9. Formal Reserve Policy of 20% of Current Expense Fund Expenditures; and 10. Low amount of debt representing only 0.65% of AV. AC-0 0 2, The Bonds {Jim Nelson} The County plans to sell $79,655,000* of Limited Tax General Obligation Bonds, 2022. BOND SALE PLAN 1. Rating desired by August 3,d 2. Bond sale scheduled August 17th 3. Bond Closing scheduled September 1st. BOND PURPOSE Proceeds of the Bonds will be used: 1. to pay costs of acquisition, construction and equipping of the new jail facility of the County and other capital improvements (the "Project"); and 2. to pay costs of issuance, sale and delivery of the Bonds. SECURITY FOR THE BONDS The Bonds are limited tax general obligation bonds of the County. The County., as authorized by law and the Bond Resolution, has covenanted and agreed irrevocably that it will include in its budget and levy an ad valorem tax upon all the property within the County subject to taxation without a vote of the people in an amount that will be sufficient,, together with all other revenues and money of the County legally available for such purposes, to pay the principal of and interest on the Bonds as the same become due. The County has irrevocably pledged that such tax will be within and as a part of the tax levy permitted to the County without a vote of the people. The full faith, credit and resources of the County have been pledged irrevocably for the annual levy and collection of such taxes and for the prompt payment of such principal and interest. 2 Law and Justice Sales Tax Distributions. The Law and Justice Tax is an additional local sales and use tax of 0.3% for providing funds for costs associated ' with criminal justice and law enforcement. The County voters approved the tax in November 2019. There is noexpirationon the law & justice sales tax. The tax is levied only by the County and is imposed County -wide, but the receipts are shared with the cities. Of the revenue collected, 60% is retained by the County and the remaining 40 percent is distributed to cities in the County on a per capita basis. The County anticipates budgeting the revenue collected from the tax for debt service payments on the Bonds. As of June 30,, 2022, the law & justice sales tax fund is holding about $8.73 million. About $1.13 million has been spent to date on the project. The new jail, which will be located in Ephrata at the site of a former raceway, will replace the existing County Jail, expanding capacity and adding features to keep inmates and staff safe. 3 4 Current Market, Level Debt Payments 35 YEARS, Fund $88,046,000, target annual payment of $4,985,000 Growth Rate Compare Taxable Retail Sales column 5.00% to Annual Payment column Surplus Less 5% Less Net Remaining DS Estimated remaining for Program Equipment for Annual coverage Period Taxable Retail. Annual Operating Maintenance Replacement Operating by tax Ending Sales Principal (1) Interest (1) Payment (1) Costs Fund Fund Costs revenue 113.95% 12/1/2022 4,900,000 1,970,000 1,026,675 2,996,675 1,903,325 95,166 0 1808159 ---------- - - - -- 105.00% 12/1/2023 5,145,000 850,000 4,008,200 4,858,200 286,800 14,340 0 2721460 146 105.00% 12/1/2024 5,4021250 890,000 3,965,700 4,855,700 546,550 27,328 0 519,223 1.11' 105.00% 12/1/2025 5,672,363 935,000 3,921,200 4,856,200 816,163 40,808 0 775,3541-17 105.00% 12/1/2026 5,955,981 985,000 3,874,450 4,859,450 1,096,531 54,827 100,000 941,704 1.23 105.00% 12/1/2027 6,253,780 1,035,000 3,825,200 4,860,200 1,393,580 69,679 100,000 11223,901 1,29` 105.00% 12/1/2028 6,566,469 1,085,000 3,773,450 4,858,450 1,708,019 85,401 100,000 1,522,618 1:35. 105.00% 12/1/2029 6,894;792 1,140,000 3,719,200 4,859,200 2,035,592 101,780 100,000 11833,812 1.42 105.00% 12/1/2030 7,239,532 1,195,000 3,662,200 4,857,200 2,382,332 119,117 100,000 2,1631215 1.49 105.00% 12/1/2031 7,601,508 1,255,000 3,602,450 4,857,450 2,744,058 1371203 100,000 2,506,855 1.56 105.00% 12/1/2032 7,981,584 1,320,000 3,539,700 4,859,700 3,121,884 156,094 100,000 2,865,789 1.64 105.00% 12/1/2033 81380,663 1,385,000 3,473,700 4,858,700 3,521,963 176,098 100,000 3,245,865 1.72 105.00% 12/1/2034 8,799,696. 1,455,000 3,404,450 4,859,450 3,940,246 197,012 100,000 3,643,234 105.00% 12/1/2035 9,239,681 1,525,000 3,331,700 4,856,700 4,382,981 2191149 100,000 41063,832 1.90: 105.00% 12/1/2036 9,701,665 1,605,000 3,255,450 4,860,450 4,841,215 2421061 100,000 4,499,154 2.00: 105.00% 12/1/2037 10,186,748 1,685,000 3,175,200 4,860,200 5,326,548 266,327 100,000 41960,221 110 105.00% 12/1/2038 10,696,085 1,765,000 3,090,950 4,855,950 5,840,135 292,007 100,000 5,448,129 -2.20; 105.00% 12/1/2039 11,230,890 1,855,000 .3,002,700 4,857,700 6,373,190 318,659 100,000 51954,530 231 105.00% 12/1/2040 11,792;434 1,950,000 2,909,950 4,859,950 6,932,484 346,624 100,000 6,485,860 2.43 105.00% 12/1/2041 _ 12,382,056 2,045,000 2,812,450 4,857,450 7,524,606 376,230 100,000 7,0481376 105.00% 12/1/2042 13,001,159 2,145,000 2,710,200 4,855,200 8,145,959 407,298 100,000 71638,661 = 2.68[ 105.00% 12/1/2043 13,6513217. 2,255,000 2,602,950 4,857,950 8,793,267 439,663 100,000 8,253,603 2.81; 105.00% 12/1/2044 14,333,778 2,375,000 2,484,563 4,859,563 9,474,215 473,711 100,000 81900,504 2:95': 105.00% 12/1/2045 15,050,466 2,500,000 2,359,875 4,859,875 10,190,591 509,530 100,000 9,581,062 105.00% 12/1/2046 15,802,990 2,630,000 2,228,625 4,858,625 10,944,365 5471218 100,000 10,297,146 3:25 105.00% 12/1/2047 16,593,139 2,765,000 2,090,550 4,855,550 11,737,589 586,879 100,000 11,050,710 3.42 105.00% 12/1/2048 17,422,796 2,910,000 1,945,388 4,855,388 12,567,409 628,370 100,000 11,839,038 105.00% 12/1/2049 18,293,936 3,065,000 1,792,613 4,857,613 13,436,323 671,816 100,000 12,664,507 3077: 105.00% 12/1/2050 19,208,633 3,225,000 1,631,700 4,856,700 14,351,933 717,597 100,000 13,534,336 3.96: 105.00% 12/1/2051 20,169,064 3,395,000 1,462,388 4,857,388 15,311,677 765,584 100,000 14,446,093 105.00% 12/1/2052 21,177,518 3,575,000 1,284,150 4,859,150 16,318,368 815,918 100,000 151402,449 -4.36. 105.00% 12/1/2053 22,236,394 3,760,000 1,096,463 4,856,463 17,379,931 868,997 100,000 16,410,934 105.00% 12/1/2054 23,348,213 3,960,000 899,063 4,859,063 18,489,151 9241458 100,000 17,464,693 4.81 105.00% 12/1/2055 24,515,624 4,165,000 691,163 4,856,163 19,659,461 982,973 100,000 181576,488 5.05 105.00% 12/1/2056 25,741,405 4,385,000 472,500 4,857,500 20,883,905 1,044,195 100,000 19,739,710 5.30. 105.00% 12/1/2057 27,028,475 4,615,000 242,288 4,857,288 22,171,188 1,1081559 100,000 20,962,628 5.56 Total 469,597,981 79,655,000 93,369,450 173,024,450 296,573,531 14,828,677 3,200,000 278,544,855 Est. Avg. Payment 2023-2057: 4,857,936 Est. All -in True Interest Cost %: 4.39% (1) Preliminary and subject to change. 4 3. The CountylTom Gaines} LOCATION The County is located in the central portion of the State east of the Cascade Mountain Range and north of the Saddle Mountains. The County encompasses 2,681 square miles of land and is the 4t" largest county in the State based on land area. In 2021, the County had an estimated population of 100,800. The City of Ephrata serves as the County seat. 5 q6Y. R�GOVERNMENT ORGANIZATION AND SERVICES {G�} The County is a general purpose government and provides the following services: sheriff/law enforcement, fire prevention, road improvement, judicial administration, health and social services, recreation, general administrative services, sanitary landfill, and transfer stations. The County government also provides services including property assessment, tax services, issuance of permits, licenses, and elections. The County's executive, legislative, and policy-making body is the Board, composed of three commissioners who are elected at large by the voters of the County to serve overlapping four- year terms. The County Commissioners meet every Monday, Tuesday and Wednesday in the Commissioner's Chambers located at the County Courthouse in the City of Ephrata. Following are the Commissioners and certain officials currently serving the County and the expiration dates of their current terms. Danny Stone Commissioner (Chair) 2024 Rob Jones Commissioner (Vice Chair) 2024 Cindy Carter Commissioner 2022 Melissa McKnight Assessor 2022 Michele Jaderlund Auditor 2022 Kimberly Allen Clerk 2022 Kevin McCrae Prosecuting Attorney 2022 Tom Jones Sheriff 2022 Darryl Pheasant Treasurer 2022 D COUNTY ADMINISTRATION County Auditor. Ms. Michele Jaderlund was elected as the County Auditor in November 2014. County Treasurer. Mr. Darryl Pheasant began as the County Treasurer in January 1986, and has remained in this position for the last 35 years. County Assessor. Ms. Melissa McKnight was elected as the County Assessor in November 2014. County Commissioner Danny Stone, currently serves as Chair of the Board of Commissioners, and is in his first term. Mr. Stone represents District No. 1 and was elected to his first term in November 2020. Mr. Stone was born in Odessa, Washington. He grew up on a dryland wheat farm southeast of the town of Almira until age 14 when the family moved to a farm north of Hartline. Mr. Stone attended Wenatchee Valley College to study agriculture and play college baseball. He received his AA degree there and then graduated with his BA from Northwest University in 1980. He married his wife, Sandy, in June of 1979, and after college they moved to Chewelah, WA to pastor at New Life Christian Center in the nearby community of Addy. They spent the next 29 years in that area as Mr. Stone pastored at the church. From 1981 to 2001, Mr. Stone also coached athletics for the local high school in Chewelah. In 2009, Mr. Stone moved back to the Almira area and began to manage the family farming operation. Mr. Stone's wife passed away in May of 2022. The couple had five children, two sons & three daughters. The youngest, a daughter, is the only child not living in the Eastern Washington/North Idaho region. She makes her home in Switzerland. They also have 7 grandchildren. Rob .!ones, currently serves as Vice Chair of the Board of County Commissioners, and is in his first term. Rob Jones was elected in November of 2020. He represents the Moses Lake and Warden areas as Grant County Commissioner of District #2. Rob grew up in Central Washington, his academic focus was in economics. His current boards are; MACC 911/Finance Committee, Grant County Covid Leadership Committee, Lodging Tax Advisory Committee, Solid Waste Advisory Committee, Homeless Taskforce, WSAC Legislative Steering Committee, Spring Festival, Freedom Festival, Fair Advisory Committee, Economic Development Council, 7 Washington State Winter Recreation Advisory, Safety and Security, Washington State Snowmobile Advisory Committee and Moses Lake Chamber Response Team. Rob is an entrepreneur, and small business owner operating from Main Street to the county fair. He is here to make a positive difference in his community and represent the people of Grant County with his elected voice. Cindy Carter, currently serves as a member of the Board of Commissioners, and is in her fourth term. Ms. Carter represents District No. 3 and was elected to her first term in November 2006. Ms. Carter is a current or past member of the following boards/councils/committees: Big Bend Resource and Conservation & Development; Grant Transit Authority; Grant Health District; Royal City Festivals; Workforce Development; Washington Affordable Housing; Regional Homeland Security; Information Services; Homeless Task Force; Safety Security; Solid Waste Advisory; and is involved in many community clubs and activities. Ms. Carter is an owner operator of an agricultural business located near Royal City along with her husband for the past 35 years. Ms. Carter attended Brigham Young University and Central Washington University and has experience in accounting, financial and business management. COUNTY FACILITIES fTom Gaines} The Grant County facilities are comprised of numerous facilities that are located primarily in the City of Ephrata (the "City"), the County seat. The Courthouse was originally constructed in 1917 and is included on the National Register of Historic Places. It is a three-story building that houses the District Court, Law library, County Auditor, Elections Office, Human Resources Department and Central Services. There is an annex building adjacent to the original Courthouse, that houses the County Assessor, County Treasurer, County Commissioners, Technical Services, Accounting, Prosecuting Attorney's District Court Division, and Public Defense. In 1986, a Criminal Justice facility was constructed near the annex that houses a maximum security jail, Superior Court, County Clerk's offices, Prosecuting Attorney, and Sheriff's offices. A Sheriff's Substation is located in the Moses Lake Port District and a work release jail facility is located in the Ephrata Port District. A Youth Services facility is also located several blocks from the Courthouse complex. The Public Works facilities are located a mile from the Courthouse complex and are located in the Ephrata Port District. The Public Works facilities consist of a main office building and central County shop. Additionally, there are two shop facilities located in Moses Lake and Quincy, and other small storage buildings/garages in Hartline, Grant Orchard, Mattawa and Soap Lake. The Fair Ground facilities, which had upgrades completed in 2008 and 2009, consist of seven enclosed buildings, multiple barns, including 3 newly constructed barns, two large pavilion buildings and a rodeo facility. Other facilities of the County include the Mental Health facility that is located in Moses Lake and a smaller facility in Quincy. The County has a building in Moses Lake that is utilized by emergency management and has a courtroom for the District Court. Awing in aformer medical center in Moses Lake contains the Coroner's offices and the Health District. The County also owns land south of Moses Lake that is utilized as an off-road vehicle park. 011 COUNTY EMPLOYMENT AND EMPLOYEE RELATIONS {Cindy Carter} The County had approximately 573 full-time and 22 part-time employees as of June 1, 2022. State law requires municipalities to bargain collectively with formally recognized collective bargaining units. Currently, three bargaining organizations represent approximately 58.4% of the County's employees. Expiration dates of negotiated agreements with the unions and the respective employees they represent are shown in the following table. (1) The County is currently in negotiations will these bargaining units. The County's goal is to settle two-year contracts. Source: The County. The County considers labor relations to be satisfactory with all bargaining units. 10 Courthouse (GCPEA) 60 12/31/2022 District Court (GCPEA) 12 12/31/2022 Youth Services (GCPEA) 12 12/31/20201 Public Works (GCPEA) 79 12/31/20201 Solid Waste (GCPEA) 14 12/31/2022 Admin Services (GCPEA) 6 12/31/20211 Sheriff's Deputies (GCDSA) 49 12/31/20211 Corrections (Teamsters #760) 37 12/31/20211 Sheriff's Support (Teamsters #760) 30 12/31/20211 Case Management 22 12/31/20211 Intake &Crisis 11 12/31/20211 Therapy Services 16 12/31/20211 SLID Counselors 6 12/31/20211 Total 354 (1) The County is currently in negotiations will these bargaining units. The County's goal is to settle two-year contracts. Source: The County. The County considers labor relations to be satisfactory with all bargaining units. 10 4. County Debt/Taxes {Darryl Pheasant} DEBT RATIOS The County's direct debt is moderate and overall debt ratios are low. Assessed Valuation Per Capita ................................................................. Direct Debt Per Capital ............................................................................ Direct and Overlapping Debt Per Capital ................................................ Direct Debt to Assessed Valuation' ......................................................... Direct and Overlapping Debt to Assessed Valuation' .............................. I Preliminary; subject to change. FUTURE DEBT FINANCING The County does not have any near-term plans to issue additional debt. NON -VOTED DEBT CAPACITY $1531465 $1,003 $3,673 0.65% 2.39% With $102,062,000 of non -voted debt (preliminary; subject to change) outstanding following issuance of the Bonds, the County will have over $132 million of remaining non -voted debt capacity. 2022 Ass e sse d Va I u e: CALULA`TION OF LEGAL DEBT LIMIT Limited Tax (Non -voted,) General Obligation Debt Capacity (LSO/o of AV) Less: Outstanding Bonds (2014.,2015 Ref i of 2007.,2016, 2017 Ref i of 2010) Less: Future LTGC1 Bond for Criminal Justice Remaining Non -voted Ll rn ite d Tax General ObIilgation Debt Capacity Unlimited Ta x (Voter A r) r)rova 1) General ObIIgatIon Debt Ca oa c1tv (2.594o of AV) Less'. Outstanding UTGO Bond Less'. Outstanding Limited Tax General Obligation Debt (from above) Less.* Future Voted Bonds secured by voted bond levy Remaini ng General Obligation Debt Capacity (with Voter Approval) (1) .Paid from the County's Cuffent Expense Fund (2) Paidfrom o VoterApproved Excess Levyfor the life of the Bond. Current Future Bond ----------- $15,622,6931091 $15,622,693,091 $2341340,396 $234,340,396 ($2,407�000) ($2211-4071 000) (1) $0 ($79,655s000) (1) $21.,933,306 $132,278,396 $390,567,327 $3901567,327 $0 $0 (2) ($22,407,00D) ($102,062,000) (1) $0 $0 (2) $368,160,1327 $288,5051327 Note: A portion of the County's outstanding bonds (Le, 2014LTGO., 2015LTGO Refunding; 2016 LTGO,. and 2017LTGO Refunding Bonds) mature in 2027, which drops the annual payments by $810.,000 peryear. Another portion matures in 2035, which drops the annual payments by an additional $470,.000 peryear. 11 N Co DEBT SERVICE REQUIREMENTS The following table provides the annual debt service schedule for the County's outstanding non - voted general obligation debt and the Bonds. Debt Service Requirements - Non -Voted General obligation Debt 1 Preliminary, subject to change; interest rates are estimated. Total Debt Service (1) 5, 336,142 7,187,135 7,185, 060 7,188, 098 7,199, 506 7,190,994 6.3321252 6, 336,102 6,3361138 6.3861450 6, 387.300 6, 388,100 61 388, 650 6, 383, 700 5,923, 250 5, 920, 200 51 916, 750 4, 857, 700 4, 859, 950 41 857, 450 4, 855, 200 4, 857, 950 4, 859, 563 41859,875 4, 858, 625 4, 855, 550 41855,388 4, 857, 613 4, 856, 700 4, 857, 388 4, 859,150 4, 856, 463 41859,063 4, 856,163 41857,500 4, 857, 288 202, 280, 402 12 2014, 2015, 2016 & 2017 Bonds 2022 Bonds Date Principal Interest Annual Principal (1) Interest Annual 1 2022 11 548, 000 7911467 2,3391467 11970,000 11026,675 2, 996, 675 2023 11586,000 742,935 21328,935 850,000 41008,200 4,8581200 2024 11639,000 690,360 21329,360 890,000 3,9651700 4, 855, 700 2025 11696,000 635,898 2,3311898 935,000 31921,200 41856,200 2026 117611000 579, 056 21340,056 985,000 31874,450 41 859, 450 2027 1, 811, 000 519, 794 2.3301794 1, 035, 000 31825,200 41860,200 2028 11015,000 458,802 1, 473, 802 1, 085, 000 3, 773, 450 4, 858, 450 2029 11047,000 429,902 11476,902 1,140, 000 31719,200 41859,200 2030 11 079, 000 399,938 11478,938 1,195, 000 31662,f 200 41 857, 200 2031 1,160, 000 369,000 1, 529, 000 11 255, 000 31602,450 41857,450 2032 11205,000 322, 600 11 527, 600 11 320, 000 3, 539, 700 41859,700 2033 11255,000 274,400 11529,400 1.3851000 31473,700 41858,700 2034 11305,000 224,200 11529,200 1, 455, 000 3, 404, 450 41859,450 2035 11355,000 172,000 11527,000 1, 525, 000 3, 331, 700 41856,700 2036 945,000 117,800 1, 062, 800 11 605, 000 31255,450 41 860, 450 2037 980,000 80,000 11060,000 11685,000 31175, 200 41860,200 2038 11020,000 40, 800 1, 060, 800 11 765, 000 3, 090, 950 41855,950 2039 0 0 0 11855,000 3, 002, 700 4, 857, 700 2040 0 0 0 11950,000 21 909, 950 41 859, 950 2041 0 0 0 21045,000 2, 812, 450 4, 857, 450 2042 0 0 0 2,145, 000 2,7101200 41855,200 2043 0 0 0 21 255, 000 2, 602, 950 4,8571950 2044 0 0 0 2;375,000 21484,563 41859,563 2045 0 0 0 21 500, 000 2, 359, 875 41859,875 2046 0 0 0 21630,000 21 228, 625 41 858, 625 2047 0 0 0 2,3651000 2, 090, 550 41855,550 2048 0 0 0 2, 910, 000 11945,388 41855,388 2049 0 0 0 3,0651000 1,3921613 41857,613 2050 0 0 0 3, 225, 000 11631,700 4, 856, 700 2051 0 0 0 31 395, 000 1,4621388 41857,388 2052 0 0 0 3, 575, 000 1, 284,150 41859,150 2053 0 0 0 3.3601000 11 096, 463 41856,463 2054 0 0 0 3, 960, 000 899,063 41859,063 2055 0 0 0 4,165, 000 691,163 41856,163 2056 0 0 0 41385,000 472, 500 41 857, 500 2057 0 0 0 41 615, 000 2421288 41 857, 288 Total 22, 407, 000 6,8481952 29, 255, 952 79, 655, 000 93, 369, 450 173, 024, 450 1 Preliminary, subject to change; interest rates are estimated. Total Debt Service (1) 5, 336,142 7,187,135 7,185, 060 7,188, 098 7,199, 506 7,190,994 6.3321252 6, 336,102 6,3361138 6.3861450 6, 387.300 6, 388,100 61 388, 650 6, 383, 700 5,923, 250 5, 920, 200 51 916, 750 4, 857, 700 4, 859, 950 41 857, 450 4, 855, 200 4, 857, 950 4, 859, 563 41859,875 4, 858, 625 4, 855, 550 41855,388 4, 857, 613 4, 856, 700 4, 857, 388 4, 859,150 4, 856, 463 41859,063 4, 856,163 41857,500 4, 857, 288 202, 280, 402 12 MAJOR PROPERTY TAXPAYERS {Darryl Pheasant} The following table lists the largest ten taxpayers within the County for tax collection year 2022. Microsoft Data Center $2,684,536,,070 17.20% Oath Holdings Inc. (fka Yahoo Inc.) Data Center 404,189,470 2.59 Vantage Data Centers LLC Data Center 1471581,345 0.95 Intergate Quincy LLC Data Center 1441595,310 0.93 Boeing Co. Aviation 124,555,820 0.80 GI Tare Quincy LLC Data Center 123,484,460 0.79 Intergate Quincy 11, LLC Data Center 111;083,,295 0.71 Alaska Air Group Inc. Aviation 971215,450 0.62 BNSF Railway Company Transportation 96,1685,635 0.62 SGL Composite LLC Manufacturing 841825,105 0.54 Total: 99.99 $4,,0181751,960 25.75 Source: Grant County Assessors Office. PROPERTY TAX COLLECTION RECORD {Darryl Pheasant} The following table shows the County's regular and excess property tax collection record for 2017 through the first half of 2022. Current Expense Fund Tax Collections 2022 $1.323 $20,102,581 $11,124,946(l) 55.34%(') N/A 55.15% 2021 1.503 19,716,704 19,409,997 98.44 $19,570,052 99.26 2020 1.532 19,1415,137 19,053,506 98.14 19,3051543 99.44 2019 1.600 18,6641589 18,471,181 98.96 18,554,141 99.41 2018 1.664 18,3301292 17,896,878 97.64 18,301,594 99-84 2017 1.720 171679,363 17,185,428 97.21 17,1677,903 99.99 I Partial year information, second half of tax is due October 31. Source: County Treasurer's Office. 13 DIVERSITY OF TAX REVENUES {Darryl Pheasant} In addition to regular property taxes, the County also collects various other taxes, including various sales & use taxes and a real estate excise tax, among others. The table below shows the amounts collected from the various taxes. Tax Revenues by Source Local Sales &Use Tax: Special Purpose Sales & Use Tax: Emergency Communications Sales & Use Tax: Rural County Sales & Use Tax: Affordable & Supportive Housing Sales &Use Tax: Hotel/Motel Sales & Use Tax: Enhanced 911 Switched Access Lines Sales &Use Tax: Enhanced 911 Radio Access Lines Sales & Use Tax: Enhanced 911 Interconnected Voice over Internet Protocol Sales &Use Tax: Criminal Justice Sales & Use Tax: Law and Justice Tax: Leasehold Tax (A): Admissions Tax: REET 1: REET 2: Tota °Wa $ 6,569,619 $ 7,044,893 $ 7,534,762 $ 81582,390 $ 9,341,926 $10,449,002 0 25,677 26,422 27,209 2,6411481 4,757,713 1,949,520 1,763,283 2,030,132 1,843,466 2,131, 680 1,932,106 0 0 0 5941135 6061275 665,818 136,935 118,050 105,527 21392,608 2,534,959 21963,290 21169,852 2,353,365 2,701,820 0 215,391 269,688 7671F474 441,696 889,170 93,125 98,672 94,185 613,439 633,381 665,269 687,170 722,986 762,307 24,598 28,088 35,517 39,350 51,900 66,690 11973,445 21030,472 21131,684 2,392,611 21534,976 2,963,296 - - - - - - - - 2,599,859 4,757,713 388,712 474,551 464,374 484,656 479,280 511,558 1,187,702 1,243,301 1,389,963 1,533,957 252 1,483,320 197,045 644,565 969,446 923,872 1,149,206 1,422,318 1,317,839 644,420 968,754 925,322 1,148,885 1,421,787 $16,716,272 $17,367,271 $19,021,322 $21,019,596 $23,714,975 $35,513,857 Source: The County. (A) Approved by the voters in November 2019. 14 Local Sales and Use Tax Distributions. The County imposes a general 1.0% sales and use tax as a percent of the selling price for value on any retail sale or use of tangible personal property within the County upon which the State also imposes a sales and use tax. (A portion of the total sales and use tax collected is a local tax and is returned to the city or county or certain other local jurisdictions where the sales transaction took place.) The County's sales and use tax is collected by the State Department of Revenue (the "Department") under a contract with the County that provides fora deduction by the Department of 1% (not exceeding 2% of the tax collected) for the Department's administration costs. The Department distributes the County's portion of the retail sales and use tax on a monthly basis. Law and Justice Sales Tax Distributions. The Law and Justice Tax is an additional local sales and use tax of 0.3% for providing funds for costs associated with criminal justice and law enforcement. The County voters approved the tax in November 2019. The tax is levied only by the County and is imposed County -wide, but the receipts are shared with the cities. Of the revenue collected, 60% is retained by the County and the remaining 40 percent is distributed to cities in the County on a per capita basis. The County anticipates budgeting the revenue collected from the tax for debt service payments on the Bonds. There is no expiration date on the law and justice sales tax. Criminal Justice Sales Tax Distributions. The Criminal Justice Tax is an additional local sales and use tax of 0.1% for funding criminal justice programs. The criminal justice sales tax distribution is based on population. This tax is levied only by the County and is imposed County -wide, but the receipts are shared with the cities. The adoption of this tax does not require a vote of the people. Of the revenue collected for criminal justice, 1.5% is retained for administration. Of the amount remaining, 10% is distributed to the County and 90% to cities and counties on a per capita basis based on their official April 1 populations. Real Estate Excise Tax Distributions. Another source of tax revenue for the County is a real estate excise tax, which is levied on each sale of unincorporated real property within the County at the 15 rate of 0.50% of the selling price, unless a specific exemption is claimed. The County Treasurer collects this tax and retains a percentage of the gross proceeds. Rural County Tax Distribution. The additional local option sales and use tax authorized by RCW 82.14.370, is another source of tax revenue for the County. Currently, the tax may be imposed by counties that have a population density of less than 100 persons per square mile, as determined annually by the State's office of financial management. The County's population density is approximately 33.3 persons per square mile. The County began receiving distribution of this tax in September 1998. The tax is scheduled to expire in September 2023. The local option sales and use tax cannot exceed nine one -hundredths of one percent (0.09%). The County imposes the full amount of the 0.09%. Lodging Taxes. A county may impose two types of lodging taxes. The basic tax is a 2.0% tax on the furnishing of lodging under RCW 67.28.180. This tax is taken as a credit against the 6.5% state sales tax, so that the total tax that a patron pays in retail sales tax plus the lodging tax combined is equal to the retail sales tax in the jurisdiction. Cities can levy this tax within their corporate limits and counties can levy the tax in unincorporated areas and within cities that do not levy the tax. A county may also levy an additional lodging tax at a rate of up to 4.0% (unless a higher rate was previously authorized under prior state statute). RCW 67.28.181, 67.40.130 and 36.100.040. Up to one-half, or a maximum of 2.0% of this amount can be credited against the state sales tax. The remaining taxes are paid in addition to all other state and local sales taxes. 16 Historical Taxable Retail Sales fDarry l Pheasant} The following provides historical taxable retail sales and use collections within Ephrata, Moses Lake and the County. Historical Taxable Retail Sales Taxes Grant County 2021 $258,943,272 $1,075,528,587 $2,677,460,596 2020 208,723,793 844,982,354 2,4081821,194 2019 187,947,574 807,519,558 218221633,532 2018 172,931,645 7621840,707 21489,444,199 2017 166,898,633 737,663,004 11877,1931497 Source: State Department of Revenue. The average annual growth rate in taxable retail sales within the County from 2010 through 2021 was approximately 7.4%. 17 Revenues Taxes $26,947,454 $28,168,997 $291485,349 LT $31,908,297 $351242,620 $33,417,763 Licenses and Permits S 134,621 157,751 1441992 108,125 ^TEr 5. CountyOperationsFinancial fKatie Smithl Intergovernmental 592949934 516079139 69083,951 Audited Audited Audited General Fund 001 Audited Audited Unaudited Budget 2016 2017 2018 2019 2020 2021 2022 Reserved Beginning Cash & Investments $0 $0 $0 $0 $0 $0 $0 Unreserved Beginning Cash & Investments 9,844,711 9,975,482 8,017,460 101978,389 14,396,016 18,240,138 17,339,223 Prior Period Adjustments 49,239 298,455 249,282 5,343 (104,031) 10808 0 Revenues Taxes $26,947,454 $28,168,997 $291485,349 $31,485,975 $31,908,297 $351242,620 $33,417,763 Licenses and Permits 197,466 134,621 157,751 1441992 108,125 1,3689088 1,201,107 Intergovernmental 592949934 516079139 69083,951 6,515,385 6,00809 59846,758 69056,497 Charges for Services 3,098,308 392679205 3,798,169 4,05502 3,165,180 4,073,227 4,369,522 Fines and Penalties 1,848,037 1,676,580 1,861,131 199379512 1,612029 19408,848 1,7109536 Miscellaneous 29933,934 2,898,093 3428,941 3,401,611 4,0279909 3,6179873 3,408,825 Capital Contributions 0 0 0 0 0 0 $604,265 Other Financing Sources 0 0 0 0 0 0 4,825,059 Total Revenues $40,320,133 $419752,635 $449815,292 $47,541,077 $469830,609 $511557,414 $54,989,308 Expenditures General Government $18,416,458 $17,649,200 $19,9413387 $201894,513 $21,565,072 $23,109,975 $27,300,996 Public Safety 16,385,394 17,101,288 181120,213 19,201,526 19,173,342 20,4859328 229692,714 Physical Environment 0 0 0 0 0 0 0 Utilities 22,531 0 0 -15 0 0 0 Transportation 6,105 7,116 7,151 6,601 7,161 7,160 7,200 Natural & Economic Environment 831,853 1,035,777 882,686 804,876 9219137 9141587 1,118,217 Physical & Mental Health 0 0 0 0 0 0 $604,265 Social Services 651,514 668,424 710,246 737,518 766,829 848,045 920065 Culture & Recreation 1,923,722 2,189557 202,488 1,878,538 1,432,904 1,980,100 2571,441 Debt Service 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Other Expenditures 0 0 0 0 0 0 0 Other Financing Uses 0 0 0 0 0 0 0 Total Expenditures $38,237,577 $3856515362 $4158249171 $439523,557 $43,866,445 $47,345,195 $54,611,533 Excess (Deficiency) Revenues over Expenditures $202,556 $39101,273 $2,9919121 $49017,520 $2,964,164 $492129219 $377,776 Other Increases in Fund Resources $284,123 $332458 $289,038 $567,143 $183,922 $346,040 $867,100 Debt Proceeds $0 $0 $0 $0 $0 $0 $0 Transfers In 65,506 72,257 71,438 72,833 1,155,336 189,455 5739865 Special or Extraordinary Items 0 0 0 0 0 0 0 Custodial Activities 50,710 72 82 1,429 969517 0 0 Other Resources 29996 391 196339825 279845 0 1489009 305400 Total Other Increases in Fund Resources $119,212 $72,720 $11705,345 $102,107 $1,2511853 $337,464 $604,265 Other Decreases in Fund Resources Capital Expenditures $284,123 $332458 $289,038 $567,143 $183,922 $346,040 $867,100 Debt Service 0 0 6,113 0 0 0 0 Transfers 0 u t 1,805,406 5,066,090 169,040 84069 67,460 502408 62,940 Special or Extraordinary Items 0 0 0 0 0 0 0 Custodial Activities 30,709 31,922 20,628 559243 0 0 0 Other Uses 0 0 1500,000 0 16,487 309803 52,000 Total Other Decreases in Fund Resources 29120,238 51430,470 1084,819 707,355 267,869 59559,251 982,040 Increase (Decrease) in Cash and Investments $81,530 ($2,2561477) $2,7119647 $3,412,272 $3,948,148 ($1,0095568) $0 Ending Cash and Investments Reserved 0 0 0 0 0 0 0 Unreserved 9,975,480 8,017,460 1078,389 145396,004 185240,133 175339,228 17,339,223 Total Unreserved Ending Cash and Investments $9,975,480 $8,017,460 $10,978,389 $14,396,004 $18,240,133 $17,339,228 $17,339,223 Cash as percent of Expenditures: 26.09% 20.74% 26.25% 33.08% 41.58% 36.62% 31.75% Road Fund Audited Audited Audited Audited Audited Unaudited Budget 2016 2017 2018 2019 2020 2021 2022 Reserved Beginning Cash & Investments $6,767,818 $8,185,451 $5,6089105 $4,7735257 $5,3469401 $6,2879072 $9,263,733 Unreserved Beginning Cash & Investments 0 0 0 0 0 0 0 Prior Period Adjustments 105,784 (1,278,369) (489862) 517 502 (29917) 0 Revenues $0 $2569269 $317,317 $5949650 $29195,628 $83,722 $100,000 Taxes $9,1879120 $9,4539455 $9,566,060 $9,962,291 $1091699198 $1094289951 $99602,700 Licenses and Permits 0 0 0 0 0 0 0 Intergovernmental 9,1989634 139686,825 1094069257 159403,035 77884,678 11,0559333 14,436,908 Charges for Services 4489898 305,685 393,769 255543 98,425 127,463 118,133 Fines and Penalties 0 0 0 0 0 0 0 Miscellaneous 51541 163,791 773,621 229,575 4,263 31290 51,000 Capital Contributions 0 0 0 0 0 0 0 Other Financing Sources 0 0 0 0 0 0 0 Total Revenues $1898869193 $23,609,756 $21,139,707 $25,850,444 $18,156,564 $2196159037 $24,2089741 Expenditures General Government $0 $2569269 $317,317 $5949650 $29195,628 $83,722 $100,000 Public Safety 2559407 203,567 213,877 272,942 278,464 158,614 150,000 Physical Environment 0 0 0 0 0 0 0 Utilities 0 0 0 0 0 0 0 Transportation 13,308,928 15,6465224 15,517,224 159949,644 14,971,347 145954,515 15,5935402 Natural & Economic Environment 0 0 0 0 0 0 0 Physical & Mental Health 0 0 0 0 0 0 0 Social Services 0 0 0 0 0 0 0 Culture & Recreation 0 0 0 0 0 0 0 Debt Service 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Other Expenditures 0 0 0 0 0 0 0 Other Financing Uses 0 0 0 0 0 0 0 Total Expenditures $13,5641335 $16,106,060 $16,048,418 $16,817,236 $175445,439 $15,1965851 $15,843,402 Excess (Deficiency) Revenues over Expenditures $5,321,858 $7,503,696 $5,091,289 $9,033,208 $711,125 $63418,186 $8,3655339 Other Increases in Fund Resources Debt Proceeds $0 $0 $0 $0 $0 $0 $0 Transfers In 0 0 0 0 85,390 0 615,961 Special or Extraordinary Items 0 0 0 0 0 0 0 Custodial Activities 250 0 0 104,906 0 0 0 Other Resources 14,923 1779780 2029902 0 1,803,506 779018 10,000 Total Other Increases in Fund Resources $159173 $1779780 $202,902 $104,906 $19888,896 $77,018 $625061 Other Decreases in Fund Resources Capital Expenditures $59016,876 $8,3229082 $5,413,467 $7,6979539 $195619791 $395159626 $8,141,300 Debt Service 501 0 0 0 0 0 0 Transfers Out 0 0 0 0 0 0 0 Special or Extraordinary Items 0 0 0 0 0 0 0 Custodial Activities 58704 658,370 6669711 8679951 0 0 0 Other Uses 0 0 0 0 989063 0 8505000 Total Other Decreases in Fund Resources 596059181 899809452 69080,178 8,5659490 1,659,854 3,515,626 8091,300 Increase (Decrease) in Cash and Investments ($2689150) ($19298,976) ($785,987) $572,624 $940,167 $29979,578 $0 Ending Cash and Investments Reserved Unreserved Total Ending Cash and Investments Cash as percent of Eipenditures: 805,452 5,608,106 4,773,256 5,346,398 6,287,070 9,263,733 9,2631733 0 0 0 0 0 0 0 $81185,452 $5,608,106 $4,773,256 $5,346,398 $6,287,070 $992639733 $99263,733 60.35% 34.82% 29.74% 31.79% 36.04% 60.96% 58.47% 19 RESPONSE TO COVID-19 PANDEMIC {Tom Gained The COVID-19 pandemic currently is affecting many parts of the world, including the State and the County. On January 31, 2020, the Secretary of the United States Health and Human Services Department declared a public health emergency for the United States and on March 13, 2020, the President of the United States declared the outbreak of COVID-19 a national emergency. On February 29, 2020, Washington's Governor declared a state of emergency due to the number of confirmed cases of COVID-19 in the State, directing State agencies to use all resources necessary to prepare for and respond to the outbreak. In late 2021, the Governor began reopening counties in the State. COVID-19 rates of infection remain variable and subject to unanticipated increases. The County has and continues to coordinate its response to the pandemic with local public health departments, as well as the Washington State Department of Health. The County is currently reviewing potential revenue impacts on its Current Expense Fund and on operations. As of December 1, 2021, actual County -wide revenue receipts have not been materially negatively impacted, and revenues are being received as expected. CYBERSECURITY The County employs a complex technology environment to conduct its operations and support the community it serves. Although unlikely due to the County's ongoing security measures, a cybersecurity breach could damage County systems and cause material disruption to operations and services. The cost to remedy such damage or protect against future attacks could be substantial. Security breaches could expose the County to litigation and other legal risks, which could cause the County to incur costs related to legal or regulatory claims. The County has implemented measures intended to protect its systems from security breaches and has maintained cyber liability insurance since 2015; however in the event of a security breach there can be no assurance that insurance proceeds, if available, will be sufficient to cover the County's losses or that the County will be able to promptly remedy impairments to its operations. 20 Cod 6. The EconomylBrant Mayo, Danny Stone, Cindy Carter, Rob Jones, Melissa McKnight} OVERVIEW OF THE LOCAL ECONOMY Grant County (the "County") spans over 100 miles and encompasses 2,791 square miles, stretching from the Grand Coulee Dam in the north to Priest Rapids Dam in the southwest. The County has 10 port districts that use tax revenue to make infrastructure improvements to help grow the economy of the area. The County's economy is based primarily on widely diverse agricultural production and related planting, harvesting and storage of locally grown agricultural products such as wheat, barley, corn and potatoes. Due to competitive electricity rates, technology storage and industrial manufacturing firms are of growing importance to the County's economy. The cities of Moses Lake ("Moses Lake") (population 25,760) and Ephrata ("Ephrata"') (population 8,575), which is the County Seat, offer employment and trade opportunities. Wanapum Dam Priest Rapids Dam Grand Coulee Dam The County lies in the northern portion of one of the world's largest irrigation projects, the U.S. Bureau of Reclamation's Columbia Basin Irrigation Project (the "Irrigation Project"). The Grand Coulee Dam (the "Dam"), one of the largest concrete dams in the world, is the source of both water and relatively inexpensive hydroelectric power for the Irrigation Project. The Dam is the largest producer of hydropower in the U.S. and on of the top ten largest in the world. A portion of revenue from electricity generated by the dam is sold to help repay part of the cost of the Irrigation Project. In the total Irrigation Project area, which includes portions of Adams, Franklin and Grant counties, approximately 671,000 acres of land are being irrigated. With additional 21 canals and pumping facilities, the Irrigation Project has been expanding and irrigating over one million acres of Columbia Basin farmland. Agricultural Production The Irrigation Project has made possible a highly diversified agricultural base in the area. Sixty- seven commercial crops are raised within the Irrigation Project, including small grains, hay crops, vegetables, tree fruits, seeds, and miscellaneous field crops, including beans and mint. The Irrigation Project includes about 36,000 acres of land -bearing fruit, primarily apples and cherry trees. Some of the other local fruits harvested include: apricots, berries, grapes, peaches, pears, plums and prunes. Manufacturing and Industry Food processing is the one of the largest manufacturing sectors in the County although many other manufacturing facilities have located or upgraded facilities in the area. J.R. Simplot employs approximately 280 people and produces frozen French fries and dehydrated potato products. Basic American Foods employs approximately 210 people at its dehydrated potato processing plant. Plant National Frozen Foods employs approximately 420 people at it vegetable processing facility. Royal Ridge Fruit employs approximately 180 people at its fruit processing plant. Genie Industries, a manufacturer of lift equipment employing approximately 650 people, has been located in the area since 1999 and leases a facility in the area. D&L Foundry employs approximately 180 people in manufacturing of iron construction casting and manhole cover manufacturing. Moses Lake Industries, Inc. manufactures industrial chemicals and employs approximately 375 people at the facility, which includes the corporate headquarters. Transportation The Grant County Airport, owned by the Port of Moses Lake, is a certified air carrier airport and is used by The Boeing Company. The airport has a 13,500 -foot runway, one of the largest in the nation. Boeing uses the airport for flight -testing and uses its building space primarily for storage. The airport was designated a foreign trade zone in 1994. Smaller municipal airports and private landing strips throughout the County are used for private aircraft and aerial crop dusting. 22 Commercial bus lines and several motor freight trucking firms serve the County and rail service is provided by Burlington Northern Santa Fe and passenger rail service is provided by Amtrak. Recreation and Tourism Due to the large number of lakes and streams in the County, several types of fish are abundant, making fishing a popular activity as well as bird hunting and other water sports. The Grand County Off Road Vehicle area (one of the largest in the region) is located four miles outside Moses Lake in the sand dunes. The sand dunes area is located on the southern tip of Moses Lake with rolling sand dunes. The Wanapum and Priest Rapids Hydroelectric Projects, owned by the Grant County Public Utility District, are tourist attractions with viewing areas and information centers. Water recreation opportunities draw visitors to Banks Lake, the equalizing reservoir created by Grand Coulee Dam. The lake is 27 miles long, with about 27,000 water surface acres. Education Big Bend Community College is a fully accredited State community college located in Moses Lake. The college offers transfer and two-year technical course and serves Grant, Adams and southwestern Lincoln counties. POPULATION TRENDS Historical population statistics for Ephrata, Moses Lake, the County and the State are shown below. 2021 81575 25,760 100,800 71766,975 2020 8,477 25,146 99,123 7,707,047 2019 8,420 24,694 97,734 7,582,481 2018 8,348 24,075 96,214 7,464,069 2017 81176 22,832 94,289 7,344,589 Source: Washington State Office of Financial Management for inter -census estimates as of April 1. 23 MAJOR EmPLOYERS{Brant Mayol The major employers in the County are as follows: Moses Lake School District Samaritan Healthcare Grant County Government Grand County PUD Genie Industries, Inc. Quincy School District Plant National Frozen Foods Moses Lake Industries Ephrata School District Moses Lake Community Health Confluence Health J.R. Simplot Co. Lamb Weston, Warden Plant Basic American Foods Big Bend Community College Columbia Basin Hospital D&LFoundry, Inc. Royal Ridge Fruit Lineage Logistics SGL Group JoysonSafpt« Microsoft International Paper Amway/Nutrilite Education Healthcare Government Electric Utility Aerial Work Platforms Education Corn & Pea Processing Industrial Chemicals Education Healthcare Healthcare Frozen French Fries /& Dehydrated Potato Products Frozen French Fries Dehydrated Potato Processing Education Healthcare Manhole Cover Manufacturing Fruit Processing Cold Storage Carbon Fiber Automotive Air Bags Data Center Corrugated Box Manufacturing Botanical Extraction Source Grant County Economic DevelopmentCouncil. l.S2O 720 695 672 650 540 420 375 340 321 310 280 230 210 192 1@O 180 180 160 257 149 135 124 lOO 24 COUNTY ASSESSED VALUE {Melissa McKnight) The County's assessed value has been largely stable over the past decade, with healthy compound annual growth of 8.4% for the last 5 years, and AV did not decline more than 6.3% during the Great Recession. $18j,00010001000 $16,000,000,000 $x.4,000,000,000 $12,000,000,000 $x.0,000,000,000 $8,000,1000,000 $6,000,000,000 $41000,000,1000 $2,000,000,000 $o Grant County Assessed Value 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 25 New as • • • Value • a • • Construction • ' of A 2022 $151622,693,091 16.2% $276,,805,,474 2.1% 2021 13,440,750,820 4.2% 143,621,369 1.1 % 2020 12,902,683,138 8.1% 212,076,082 1.8% 2019 11,938,988,211 6.6% 26517851705 2.4% 2018 11,197,837,685 7.2% 265,785,705 2.5% 2017 10,444,138,245 4.3% 2261F995,461 2.3% 2016 10,016,181,141 8.1% 287,045,913 3.1% 2015 9,267,414,006 7.2% 2141529,745 2.5% 2014 8,643,795,844 5.1% 79,418,678 1.0% 2013 81223,879,677 -6.3% 275,176,763 3.1% 2012 81775,292,684 -3.1% 877,038,415 9.7% Source: Grant County Assessor's office. $18j,00010001000 $16,000,000,000 $x.4,000,000,000 $12,000,000,000 $x.0,000,000,000 $8,000,1000,000 $6,000,000,000 $41000,000,1000 $2,000,000,000 $o Grant County Assessed Value 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 25 Examples of housing currently available in the County {melissa McKnight} $298,250 Quincy $399,000 Quincy $363,000 Ephrata $474,,950 Moses Lake $536,660 Quincy $625,000 Moses Lake $730,000 Moses Lake $1.3 million Moses Lake 26 According to Zillow, the typical home value in Grant County is $347,384. This value is seasonally adjusted and only includes the middle price tier of homes. Grant County home values have gone up 21% over the past year. Grant County Market Overview Data th-mugh Jun 30, 2022 $34.7,384 mij 0 No data 1-yrforetast Zillow, ndex All homes I -yr 5 -yr Max Jun 2022 — Grant County, $347/K 2013 2014 .2.015 2016 2017 2018 2019 2020 2021 2022 $368K $28,3K $198K $113K 27 ECONOMIC DEVELOPMENTS {Brant Mayo} MOSES LAKE DEVELOPMENTS Battery Technology Manufacturing In May 2022, California-based technology company Sila Nanotechnologies Inc. announced the purchase of a 600,000 square -foot facility in Moses Lake. Meanwhile, its Woodinville, WA -based competitor, Group 14 Technologies, is building a manufacturing facility in Moses Lake, slated to open in the second half of 2023. The site has not yet been announced, but is expected to be co - located with REC Silicon, a major Moses Lake manufacturer of silane — silicon gas- an essential component in the component of rechargeable batteries made by Group 14. Sila will also be manufacturing lithium -ion anode battery Sila Nanotechnologies manufacturing facility materials at automotive volumes and quality at its Moses Lake facility. The components can also be used in cell phones. In a May 4, 2022 King5 article about the announcement, the company said it was drawn by the region's abundant hydropower. Sila is making an initial investment to deliver silicon -based anode production sufficient to power batteries in 100,000 to 500,000 electric vehicles and 500 million mobile phones annually. Production lines at the facility will begin in the second half of 2024 and reach full production in the first half of 2025. The Moses Lake site has the potential for exponential growth that could power 2 million to 10 million electric vehicles per year, the article said. The facility will employ hundreds. According to a May 2022 article in Chemical & Engineering News, the US Department Of Energy has announced over $3 billion in funding to support domestic manufacturing of battery materials in an effort to build a US -based supply chain for lithium -ion batteries used in electric cars. W z CO "'3��a'ruayst� REC Solar Grade Silicon LLC ("'REC"), a manufacturer of polysilicon for use in solar panel manufacturing, completed, in 2009, a $970 million expansion of its plant in Moses Lake, creating 700 jobs and an estimated 1,132 indirect jobs. The facility is 20 floors tall and houses several fluid bed reactors that can produce 6,500 metric tons of polysilicon. REC is among the world's largest producers of polysilicon and wafers for solar applications, and a manufacturer of solar cells and modules. Founded in Norway, REC is an international solar company, employing more than 3,000 people worldwide. Since 2014, REC has been affected by trade disputes with China. In the early part of the decade, when China was vying to be the dominant global low-cost solar panel producer, REC had invested $1.7 billion in its Moses Lake manufacturing process and expanded its workforce. U.S. solar panel manufacturers complained to U.S. trade authorities abo=ut Chinese government subsidies to their competitors, prompting tariffs. In retaliation, China imposed a 57 percent tariff on U.S.-made polysilicon. REC partially shut down the Moses Lake plant in 2019, when tariffs made it uneconomical to sell into China's large solar market. China represented approximately 80% of REC's market before the trade dispute. During the past few years, REC has been operating at only 25 percent capacity, but things are turning around in 2022. According to a June 16, 2022 article in Chemical & Engineering News, REC plans to restart its Moses Lake polysilicon plant in 2023 to create a US -based supply chain for solar panels, stretching from raw materials to finished solar cells. REC is negotiating with a long-standing supplier, Ferroglobe, to secure a US -based source of silicon metal, the raw material used to make polysilicon. REC plans to sell its polysilicon to the solar panel manufacturer QCells, which has a factory in Georgia. The company decided to reopen its facility after an investment of over $200 million from Q Cells' parent company, South Korea's Hanwha Solutions. Polysilicon also has applications for lightweight batteries, especially in electric vehicles, and two new Moses Lake car battery manufacturers will provide an alternate market for REC. ce The expansion of Everett -based Aviation Technical '0 N - Services, the largest 3rd -party, single -site transport�;,, TECHNIC A SERVICES, aircraft maintenance provider in North America, to Moses Lake signals the emerging growth of another industry for Grant County: aerospace. State and regional leaders celebrated the growth of the aerospace industry in Grant County during an ATS ribbon -cutting at the Grant County International Airport in April, 2013. The aircraft maintenance and repair company now occupies a 102,000 sf hangar at the airport. According to a recent Port of Moses Lake newsletter, ATS has committed to leasing the hangar for five years, with options to renew. The expansion of ATS to Moses Lake created about 50 new jobs. The company plans to add an additional 100 jobs over the next few years, depending on customer projects. ATS has partnered with Big Bend Community Colleges Aviation programs for internships allowing the local workforce a direct path to employment. In April 2017, the Federal Aviation Administration certified AeroTEC to repair aircraft accessories, making TE" -ro the company the 5th certified repair station in Moses T, F 51 T I N C, � F, A'I r?,' A N Lake, along with Sonico, Aviation Technical Services, Mark Airmotive and Big Bend Community College. AeroTEC anticipates receiving airframe and power plant certification from the FAA in 2019. AeroTEC specializes in aircraft testing and making prototype equipment, and the company hosts Mitsubishi as the company tests and seeks to certify its MRJ regional jet. Sonico, another authorized repair station, broke ground on a new facility in Moses Lake in 2016 and completed the building in 2018. The company employs 44 people and has an annual payroll of $2.6 million. 30 AstaReal Plant AstaReal Technologies opened- its $34 million, 59,000 sf manufacturing plant on 10 acres in Moses La ke i n 2014 to make an anti- inflammatory agent for health supplements. The companv chose Moses Lake for its expansion due to its affordable power and workforce. The plant employs 45 people, and produces natural astaxanthin, a powerful antioxidant and anti-inflammatory agent, for Japanese parent company Fuji Chemical Industry, a global pharmaceutical company that sells its products in more than 20 countries. 31 Quincy Economic Developments Data Center Boom Data center activity began in Quincy with interest from Microsoft and Yahoo! in 2005. Quincy is uniquely attractive due to fast fiber optic internet speeds, low-cost power, large parcels of land available at a low cost per acre, and a State data center tax incentive bill, which was expanded and extended by House Bill 1846 in 2022 (signed into law by the governor in March 2022). Sabey, Vantage Data Centers, H5 Data Centers (all wholesalers), Yahoo! (now operating under Verizon's Oath brand), Microsoft, Titan Data Center (Ask.com) and NTT Data all have a data center presence in Quincy. Dallas -based CyrusOne purchased 45 acres of land for a data center in the area in 2016, and is offering designs for build -to -suit projects for hyper scale clients. Combined data center space of these facilities will total over 2.3 million sf when built out. The primary attraction for the data centers to Quincy is the abundant renewable power (around 2,000 MW worth) from Wanapum and Priest Rapids dams operated by the Grant County PUD. Commercial power costs are around $0.025 per KW/h. Sabey lists their cost per KW/h at $0.225 and it is reported that Microsoft is getting their power for $0.019 per KW/h. (In contrast, Rocky Mountain Power charges $0.0626 per KW/h.) 32 x", Co Quincy is also ideal for free cooling, in which companies use cool air from outside the building to cool the servers, rather than air conditioners. Connectivity to Quincy, WA is provided by wholesale dark fiber providers NoaNet and Grant County PUD. Zayo, Level3, Verizon and Frontier have purchased capacity from the wholesale providers in order to offer their services to the data center facilities. Multiple fiber lines, which allow data centers to switch lines if one goes down, are uncommon for cities of a similar size to Quincy. Q 0 10'sy, WA Level(3 A GEORGE Microsoft Expansion OF MUENCL. WON COUP FIBM BAKMONE WnMA Microsoft has further expanded its massive data center in Quincy. According to a May 24, 2022 article in Data Center Dynamics, the company filed permits to build a 20,500 square foot recycling center, a project named MWH90 CC. The center will recycle used computers, servers, and other parts. The company purchased 200 acres from the Port of Quincy for $11 million for a major 2015 expansion project. That added to the 75 acres Microsoft already owned. Microsoft's existing Quincy data center is the largest, with an 800,000 sf facility to provide the infrastructure for their cloud services. Split into two phases, phase one was a 500,000 sf facility, and phase two was a 300,000 sf modular design that allowed Microsoft to substantially lower cost per megawatt to 33 build and run its datacenters while significantly reducing time to market. This facility is powered 100% by renewable hydroelectric power. Microsoft Data Center Sabey Data Center Expansion In February 2022, Sabey Data Centers broke ground on a 70 megawatt expansion of its SDC campus in Quincy. According to a February 111 2022 article in Data Center Dynamics,, the company said it secured a "major service provider" anchor tenant. The initial phase of construction should take place in the second half of2022. 34 expansion. Brian Huck, Yahoo's Quincy data center manager,, said the company replaces its servers every three to four years. While expensive, that plan ensures the servers operate more reliably, he said. "The new servers use less power, they have bigger drives and you're maximizing your energy," Huck said. 35 Norco, Inc. built a gas -separation plant in Ephrata. Norco is a supplier of gas including medical -grade oxygen and industrial t grade oxygen, liquid CO2 and bulk nitrogen for food and beverage retailers. or, ving You Oetter Gorge Amphitheatre {Cindy Carter) The Gorge Amphitheatre is a 25,000 -seat outdoor amphitheater above the Columbia River Gorge, located six miles outside the town of George. The Gorge has hosted a huge number of big live acts, including Aerosmith, Pearl Jam, Tom Petty & the Heartbreakers, Neil Young, The Police, Rush, the Dave Matthews Band (who have performed at the Gorge nearly every year since the mid-90s), and many more. tee` The venue was opened by winemakers Vince and Carol Bryan in 1985 as a vineyard. In 1990, construction began on what would become the main stage, and the venue was re -christened The Gorge Amphitheatre. The Gorge typically hosts concerts starting in late spring, and ending in late fall. The Gorge was ranked No. 39 in gross ticket sales in Pollstar's Top 100 amphitheater venues for 2019, with ticket sales of $7.7 million. To accommodate weekend concertgoers, the Gorge offers multi -tiered camping facilities ranging from "glamping" (glamorous camping) to standard campsites. There are 7,800 permitted campsites. W Viticulture: An increasing number of growers are finding that the region's moderate temperatures, low rainfall and sandy soils are ideal for wine grapes. Columbia Valley AVA Key Facts: • Northerly latitude provides two hours more sunlight each day during the growing season compared to California vineyard areas, helping develop greater fruit intensity. • Cool evenings provide more extreme day/night temperature spread, providing crisp acids and ideal balance. • Vines are planted on their own root stock. Grafting is unnecessary as in other wine regions of the world. The Royal Slope of the Frenchman Hills has its own unique features that serve to produce excellent wines. The slope where the grapes are planted provides great exposure as well as drainage. The very fine sand almost silty soil produces incredibly rich wines with powerfully focused aromatics as well as great texture. The site's fractured rock and extreme southern exposure are ideal for reds, especially Cabernet Sauvignon, Merlot and Syrah. White grapes are planted on a mixture of fractured rock and areas of fine sandy loam. Planted in 2000 on a steep, south -facing slope with one of the most diverse clone selections in Washington State, Stillwater Creek Vineyard quickly has earned a reputation as one of the Columbia Valley's top vineyards. Stoneridge Vineyard is located between Othello and Royal City on Highway 26. 37 r x^,v.k*9'Lta. Royal's premier local winery, Gard Vintners, has garnered a high score from Wine Spectator, the leading publication for wine aficionados. Wine Spectator gave Gard's 2010 Riesling Ice Wine an exceptional 95 -point score, its 2011 Grand Kalsse Reserve Syrah a notable 93 point score, its 2012 Vaucluse and 2012 Don Isidro and 2009 Cabernet Sauvignon a commendable 92 -point score. Competition. The winery has tasting rooms in Walla Walla, Woodinville, and Ellensburg, and produces over 6,000 cases of wine annually for its wine club members, three tasting rooms, and select distribution. M Wahluke Slope AVA The Wahluke Slope AVA is a 5,200 -acre American Viticultural Area located within Grant County that was established in 2006. It is part of the larger Columbia Valley AVA. The area is primarily known for Merlot and Cabernet Sauvignon. Shown at right is a rendering of the Wahluke Slope AVA by Millbrandt Vineyards, family farmers who operate 12 of the 20 vineyards in the AVA and were the first to plant grapevines here. The area features nearly 15% of the grape acreage in the State and at least 3 wine production facilities. Quincy's Ancient Lakes AVA Since 2012, wine hailing from the Quincy area has had a special distinction after the Ancient Lakes of Columbia Valley Region was officially recognized as Washington's 13th American Viticultural Area. The new AVA covers more than 162,000 acres in Grant, Douglas and Kittitas counties. According to the Federal Register, 1,399 acres within the new AVA are dedicated to six commercially - producing vineyards. 39 7. Conclusion {Danny Stone} The County continues to demonstrate good financial and debt management practices. Among its credit strengths are the following: 1. Growing economy; 2. Diverse tax base, with significant new construction; 3. Strong available current expense fund reserve position of 32% and Road Fund reserve fund position of 58%; 4. Stable revenue sources, with sales taxes constituting 51% of 2020 tax revenues, property taxes 39%, and other taxes 10%; 5. Experienced management with a history of conservative financial practices; 6. New revenue source from the voter -approved Law and Justice Sales Tax, which is projected to cover debt service and operations of the project; 7. Formal Reserve Policy of 20% of Current Expense Fund Expenditures; and 8. Low amount of debt representing only 0.65% of AV. The County appreciates your consideration. 40 Open Record Public Hearing Golf Carts July 26, 2022 3:30 p.m. In Attendance: Danny E. Stone, Chair Rob Jones, Vice -Chair Cindy Carter, Member Barbara J. Vasquez, Clerk of the Board Sam Castro Sam Dart Public: See sign in sheet 3:32 p.m. The Commissioners held an Open Record Public Hearing to consider an Ordinance amending Ch. 11.34 of the Grant County Code titled "Operation of Golf Carts"; specifically to add Moore Road and Blue Lake Roads and will include the County maintained roads contained within the Moores Blue Lake Tracts Long Plat, Blue Lake Summer Homes, Brittains Blue Lake and all of Moore Road. Sam Dart, Assistant Public Works Director gave a brief synopsis of the request. Below are the following roads to be added: ROADNAME 31.3 NE A ST *BLUE LAKE* A ST *BLUE LAKE* A.3 NE A.3 NE B ST *BLUE LAKE* BUCKLEY SQUARE BUCKLEY SQUARE BUCKLEY SQUARE LAKE SHORE DR NE LAKE SHORE DR NE LAKEVI EW RD LAKEVI EW RD MOORE RD MOORE RD MOORE RD MOORE RD MUNDY LANE PALISADES RD DAi icenrc Qn ROADLOG BMP EMP LENGTH 50711 0 0.15 0.15 50740 0 0.03 0.03 50740 0.03 0.07 0.04 50711 0.15 0.17 0.02 50711 0.17 0.29 0.12 50720 0 0.1 0.1 50760 0 0.04 0.04 50760 0.04 0.09 0.05 50760 0.09 0.15 0.06 50710 2.04 2.22 0.18 50710 2.22 2.34 0.12 50730 0 0.17 0.17 50730 0.17 0.39 0.22 50710 0 0.75 0.75 50710 0.75 1.67 0.92 50710 1.67 1.84 0.17 50710 1.84 2.04 0.2 50770 0 0.08 0.08 50770 0.08 0.2 0.12 50770 0.2 0.25 0.05 A motion was made by Commissioner Jones, seconded by Commissioner Carter, to close the public comment portion of the hearing. The motion passed unanimously. A motion was made by Commissioner Jones, seconded by Commissioner Carter to approve the ordinance as presented. The motion passed unanimously. Open Record Public Hearing Disband/Dissolve Intercounty Weed District 51 July 26, 2022 3:15 p.m. In Attendance: Danny E. Stone, Chair Rob Jones, Vice -Chair Cindy Carter, Member Barbara J. Vasquez, Clerk of the Board Public: See sign in sheet 3:15 p.m. The Commissioners held an Open Record Public Hearing to consider dissolving the special purpose district known as Intercounty Weed District 51 (pursuant to RCW 36.96). Michele Jaderlund, County Auditor stated she submitted a letter to the Commissioners on January 7, 2022 notifying the commissioners that the Weed District has been in -active for over 5 years, pursuant to RCW 36.96. Commissioner Carter asked about the building/rent. Allen Evenson discussed rent due and that he had received reimbursement for his mailings. Discussion ensued about any property that may be left in the building that was being rented. The Noxious Weed Control Board is anticipated to absorb the district duties. A motion was made by Commissioner Carter, seconded by Commissioner Jones, to close the public comment portion of the hearing. The motion passed unanimously. A motion was made by Commissioner Jones, seconded by Commissioner Carter to adopt the ordinance as presented. The motion passed unanimously.