HomeMy WebLinkAboutITEM VIII-B-1M
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WASHINGTON
Agenda Subject:
Date:
Resolution No. 4446
Februa 2, 2009
Department:
Attachments:
Budget Impact:
Finance
Resolution No. 4446
Administrative Recommendation:.
City Council adopt Resolution No. 4446.
Background Summary:
Resolution No. 4446 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 second year that the City of Auburn has asked the State
for the sales tax credit.
N0217-1
Reviewed by Council & Committees:
Reviewed by Departments & Divisions:
❑ Arts Commission COUNCIL COMMITTEES:
❑ Building ❑ M&O
❑ Airport ED Finance
❑ Cemetery ❑ Mayor
❑ Hearing Examiner Z Municipal Serv.
p Finance ❑ Parks
❑ Human Senrices ❑ 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
Referred to Until
Tabled Until
Councilmember: Backus
Staff: Coleman
Meetin Date: Februa 17, 2009
Item Number: VI11.13.1
AUBURN * MCJRE THAN YOU IMAGINED
RESOLUTION NO. 4 4 4 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
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 16th 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
Resolution No. 4446
February 10, 2009
Page 1 of 3
WHEREAS, following a favorable vote on the annexation proposition, the
City Council of the City of Auburn, Washington, adopted its Ordinance No.
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 $4,624,020 to provide
municipal services to the annexation area exceeds the projected general
revenue estimated to be $2,714,230 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 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 Dollars ($2,000,000) 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.
Resolution No. 4446
February 10, 2009
Page 2 of 3
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 , 2009.
CITY OF AUBURN
PETER B. LEWIS,
MAYOR
ATTEST:
Danielle E. Daskam,
City Clerk
TO FnRM-
Resolution No. 4446
February 10, 2009
Page 3 of 3
City Attorney