HomeMy WebLinkAboutITEM V-CCITY OF
AGENDA BILL APPROVAL FORM
~ WASHINGTON
Agenda Subject: Date:
Resolution No. 4561 February 1, 2010
Department: Attachments: Budget Impact: Finance Resolution No. 4561
Administrative Recommendation:.
City Council to approve Resolution No. 4561
Background Summary:
Resolution No. 4561 levies the .1 % sales tax credit against the state sales tax for annexation of the Lea
Hill Area. SB 6686 authorizing the tax credit was passed by the state legislature during the 2006 regular
session. The intent of the legislation was to provide financial assistance to Cities with Planned Annexation Area (PAA's) that did not produce revenues sufficient to cover the costs
of urban levels of
services. The tax credit will provide sufficient funding, along with the other revenues of the area, to
provide those services.
The City moved forward with the annexation of Lea Hill based upon the availability of this tax credit.
Cities wishing to take advantage of this tax credit incentive had to commence annexation prior to January
1, 2010. The tax credit is available to the city for up to 10 years and is limited to the maximum of .1% credit against the State tax or the difference between the City's cost to provide,
maintain, and operate
municipal services for the annexation areas and the general revenues that the City receives from the
annexation area during a given year. This is the third year that the City of Auburn has asked the State for
the sales tax credit.
Reviewed by Council & Committees: Reviewed by Departments & Divisions:
❑ Arts Commission COUNCIL COMMITTEES: ❑ Building ❑ M&0
❑ Airport ®Finance ❑ Cemetery ❑ Mayor ❑ Hearing Examiner ®Municipal Serv. ❑Finance ❑ Parks
❑ Human Services ❑ Planning & CD ❑ Fire ❑ Planning
❑ Park Board ❑Public Works ❑ Legal ❑ Police ❑ Planning Comm. ❑ Other ❑Public Works ❑ Human Resources
❑ Information Services
Action:
Committee Approval: ❑Yes ❑No Council Approval: ❑Yes ❑No Call for Public Hearing l I
Referred to Until I I
Tabled Until I I
Councilmember: Backus Staff: Coleman
Meeting Date: February 16, 2010 Item Number:
. ,,a r
Lea Hill Annexation Summary
2010 Budget 2010 Actual
Assessed Valuation 1,038,847,299
General Fund Operating Revenues:
Property Tax 1,911,100 0
Sales Tax (.1% State Sales Tax Credit) 1,677,059 0
Utility Tax /Franchise Fee 1,275,300 0
Other (State Shared) 420,800 0
Total estimated increase in Operating Revenue 5,284,259 0
General Fund Operating Expenditures: General Fund:
(1) Administrative: 356,000 0
(2) LegaUCourt/Clerk: 278,801 0
(3) Planning: 796,475 0
(2) Police: 2,006,549 0
(4) Parks: 1,088,071 0
(5) Engineering: 469,000 0
(6) Street: 516,400 0
(1) Non-Departmental 208,200 0 Total estimated Increase to Operating Expenditures 5,719,496 0
Ongoing Annual Operating Loss: -435,237 0
(1) Based on direct costs
(2) Based on CAD calls (3) Based on # of Permits, Code violations & planning projects
(4) Park Facilities allocated total costs by park acreage & remaining dept allocated based on population
(5) Based on Acreage
(6) Allocated total costs by center line miles
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RESOLUTION N0.4_
A RESOLUTION OFTHE CITYCOUNCIL OF THE CITYOF
AUBURN, WASHINGTON, AUTHORIZING THE CITY OF
AUBURN TO IMPOSE A SALES AND USE TAX AS
AUTHORIZED BY RCW 82.14.415 AS A CREDIT AGAINST
STATE SALES AND USE TAX, RELATING TO
ANNEXATIONS
WHEREAS, this is not a new tax but a reallocation of the sales tax
already collected by the state which will then be remitted to the City to assist
with funding the costs of the newly annexed area; and
WHEREAS, in accordance with Chapter 35A.14 RCW, on the 16t" day of
January, 2007 and on the 16t" day of April, 2007, the City Council of the City of
Auburn, Washington, passed its Resolution Numbers 4138 and 4176
respectively, calling for special elections to be held in connection with the
primary election on August 21, 2007, at which election the question of
annexation was presented to the voters of the Lea Hill Annexation Area; and
WHEREAS, the notice of intention to annex was filed with the King
County Boundary Review Board and subsequently approved; and
WHEREAS, in accordance with Chapter 35A.14 RCW the annexation
was put to a vote of the people in the annexation area on August 21, 2007; and
WHEREAS, the King County Records, Elections and Licensing Services
Division, on September 5, 2007, certified that the referendum had been
approved by the voters; and
WHEREAS, following a favorable vote on the annexation proposition, the
City Council of the City of Auburn, Washington, adopted its Ordinance No.
Resolution No. 4561
January 8, 2010 Page 1 of 3
6121, on September 17, 2007, annexing said Lea Hill Annexation Area, an
annexation area that has a population of at least ten thousand people; and
WHEREAS, the City Council of the City of Auburn, Washington, finds
and determines that the projected cost of at least $5,719,496 to provide
municipal services to the annexation area exceeds the projected general
revenue estimated to be $3,607,200 that the City would otherwise receive from
the annexation area on an annual basis; and
WHEREAS, pursuant to RCW 82.14.415, the City is authorized, under
the circumstances of this annexation, to impose a sales and use tax as
authorized with that tax being a credit against the state tax.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section Purpose. The Auburn City Council does hereby authorize
the City's Finance Director to set the threshold for imposing the sales and use
tax credit at Two Million Five Hundred dollars ($2,200,000) for the Lea Hill
annexation area.
Section 2. Implementation. The Mayor of the City of Auburn is
hereby authorized to implement such administrative procedures as may be
necessary to carry out the directions of this Resolution.
Section 3. Effective Date. This Resolution shall take effect and be in
full force upon passage and signatures hereon.
DATED and SIGNED THIS DAY OF , 2010.
Resolution No. 4561
January 8, 2010 Page 2 of 3
CITY OF AUBURN
ATTEST: PETER B. LEWIS,
MAYO R
Danielle E. Daskam,
City Clerk
APPROVED AS TO FORM:
Daniel B. Heid,
City Attorney
Resolution No. 4561
January 8, 2010 Page 3 of 3