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, CITY OF
AGENDA BILL APPROVAL FORM WAS H I N *GTON
Agenda Subjecf: ,
Resolution Date: _ No. 4671 Janua 3, 2011
Department: Attachments: Budget Impact: Finance Resolution No: 4671
Administrative Recommendation:. . - , City Council adopt Resolution No. 4671.
Background Summary: . i
Resolution No. 4671 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 taxcredit will provide suffcient funding, along virith 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 virishing to take advantage of this tax credit incentiye had to commence annexation prior to January
,1, 2010. The tax credifis available to the city fo,r up to 10 years and is limited to the maximum of.1 %
credit against#he State tax or the difference betwe_en the City's cost, to provide, maintain, and operate '
' municipal services for the annexation areas and the general revenues that the Ciry receives from the
annexation. area during a giyen year. This is the fourth year that the City of Aubum has asked the State
for the sales tax cred'it. '
Reviewed by Council & Committees: Reviewed by Departments 8 Divisions:
❑ ARs Commission COUNCtL COMMITTEES: ❑ Building ' O M&0
❑ Airport 0 Financ'e ❑ Cemetery p Mayor
❑ Hearing Examiner 0 Municipal Serv. Fnance, p Parks
❑ Human Services 0_Planning,&,CD 0 Fire; , ❑ Planning
❑ Park Board ❑Public Works [I Legal ❑ Police
❑ Planning Comm. ❑ Other ' ❑ Public Works ❑ Human Resources
- p Infomia'tion SerVices
Action:
Committee Approval: ❑Yes ❑No.
Council Approval: E]Yes []No Call for Public Hearing
Referred to Until
Tabled , _ Until
Councilmember: Norman Staff: Coleman
Meetin Date: Janua 24; 2011 Item Numtier:',
AUBURN?k 1vtORE THAN YQU IMAGINED
RESOLUTtON NO. 4 6 71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF .
AU.BURN; . 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
. AN N EXATIONS
? WHEREAS, this is not a new tax but a reallocation of the sales tax already.collected by the state which will then be rernitted-to the City to assist
with funding the cosfs of the newly annexed area; and '
WHEREAS, in accordance with Chapter 35A.14 RCW, on the 16"' day of
January, 2007 and on the 10day of,April, 2007, the City Council of the City of Aubum, 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 annexafion was put to a vote of the people in the annexation area on August21, 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 annexafion prop,osition, the '
City Council of the City of Auburn, Washington; adopted its Qrdinance No.
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Resolution No. 4671
January 24, 2011 .
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 $5,485,500 to provide
municipal services to ttie annexation area exceeds the projected general
revenue estimated to be $3,448,700 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 1. Purpose. The Aubum City Council does hereby autfiorize
the City's Finance Director to set the threshold, for imposing the sales and use
tax credit at Two Million Thirty Six Thousand Eight Hundred dollars
($2,036,800) for the Lea Hill annexation area.
Section 2. Implementation. The Mayor of the City of Aubum 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.
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Resolution No. 4671 January 24, 2011
Page 2 of 3
,
CITY OF AUBURN
ATTEST: PETER B. LEWIS,
MAYOR
Danielle E. Daskam,
Cify Clerk
APPROVED AS TO FORM:. ~
Daniel B. Heid, _
City Attomey ,
Resolution No. 4671
January 24, 2011
Page 3 of 3