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HomeMy WebLinkAbout6822 ORDINANCE NO. 6822 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING SECTIONS 3.40.010 AND 3.41.010 TO RESTORE AN INADVERTENTLY OMITTED ALLOCATION OF TAX REVENUE TO AN ESTABLISHED CITY FUND WHEREAS, Auburn City Code (ACC) sections 3.40.010 and 3.41.010 establish a tax to be collected from water; storm drainage, sewer and garbage/solid waste funds and utilities in the City, and call for a portion of the collected tax to be allocated to the City's arterial street fund; WHEREAS, on November 16, 2020, the City passed Ordinance No. 6801 that increased the tax rates in ACC 3.40.010 and 3.41.010 from 7% to 10%, and otherwise technically revised those code sections; WHEREAS, the revisions in Ordinance No. 6801 inadvertently removed the tax revenue allocation to the arterial street fund in those code sections. This ordinance is necessary to restore that tax allocation and to further clarify the provisions of ACC 3.40.010 and 3.41.010; and WHEREAS, Ordinance No. 6801 contained a referendum provision pursuant to RCW 35.21.706. This ordinance revising 6801 is not subject to RCW 35.21.706 because it does not impose or increase a business and occupation tax. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: • Section 1. Amendment to City Code. Section 3.40.010 of the Auburn City Code is amended to read as follows: Ordinance No. 6822 June 1, 2021 Page 1 of 4 Rev.2019 A. There is created a 10 percent tax to be levied on and after January 1, 2021, against and upon the total annual revenues derived from: 1. The city's water, storm drainage and sewer utility funds; and 2. All water, storm drainage and sewer utilities, business enterprises or other entities engaged in providing such utility services within the city. B. The finance director is directed to collect this imposed tax and to pay the collected,revenue'into the city's current pcnse general fund, subject to subsection C. C. On and after November 16, 2020, the finance director shall allocate On and after Res, g-January 1, 2021, the finance director shall allocate 1% of the tax revenue received,under this section to the City's arterial street preservation fund. The ordinance codified in this section is subject to RCW 35.21.706 within seven clerk. D. The tax rate in subsection A shall automatically revert to 6%9% if the State of Washington provides the City's arterial street preservation fund with a long term sustainable funding source that is sufficient to maintain the City's arterial streets stem's PavementConditionIndex (PCI) at an average of 70 PCI out of a score of 100 PCI for the foreseeable future. Section 2. Amendment to City Code. Section 3.41.010 of the Auburn City Code is amended to read as follows: A. There is created a 10 percent tax to be levied on and after January 1, 2021, against and upon the gross receipts and total annual revenues of: 1. The city's garbage fund; and 2. All solid waste utilities and every business enterprise or other entity engaged in handling solid waste. B. For the purposes of this section "solid waste" means garbage, recyclables and yard debris. C. The finance director is directed to collect this tax and to pay the collected funds into the city's general expense fund, subiect to subsection D. Pursuant to Ordinance No. 6822 June 1, 2021 Page 2 of 4 Rev.2019 D. e • - •_ - • - e --_- -- . --'•e On and after January 1, -2021, the finance director shall allocate 1% of the tax revenue received under this section to the City's arterial street preservation fund. •- _ -- -- •-- • section is subject to RCW 35.21.706 within seven days of passage of the E. The tax rate in subsection A shall automatically revert to 69% if the State of Washington provides the City's arterial street preservation fund with a long term sustainable fundinei source that is sufficient to maintain the City's arterial streets stem's Pavement Condition Index (PCI) at an average of 70 PCI out of a score of 100 PCI for the foreseeable future. F. Pursuant to RCW,35.58.560, nothing in this section shall be intended or - --- construed to impose a tax.on any county owned or operated solid waste facility. Section 3. Implementation. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Section 4. Severability: The provisions of this ordinance are declared to be separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application of it to any person or circumstance,will not affect the validity of the remainder of this ordinance, or the validity of its application to other persons or circumstances. Section 5. Effective date. This Ordinance will take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: JUN 0 7. 2021 PASSED: JUN 0 7 2021 APPROVED: JUN 0 7 2021 Ordinance No. 6822 June 1, 2021 Page 3 of 4 Rev.2019 • .k NANC I k CKUS, MA OR ATTEST: APPROVED AS TO FORM: Shawn Campbel , MMC,'City Clerk Kendra Comeau, City Attorney Published4\Pt\L O '2'O3 ti 1 Ordinance No. 6822 June 1, 2021 Page 4 of 4 Rev.2019