HomeMy WebLinkAbout6831 ORDINANCE NO. 6831
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING CHAPTER 2.98 OF
THE AUBURN CITY CODE TO MODIFY THE FUNDING
ALLOCATION OF THE BUSINESS IMPROVEMENT AREA
- AND TO RENAME THE BUSINESS IMPROVEMENT AREA
COMMITTEE
WHEREAS,the City passed Ordinance 6814 adopting a Business and Occupation
Tax (B&O Tax) on May 17, 2021; and
WHEREAS, the B&O Tax provides a funding resource for the Business
Improvement Area (BIA) and renders the separate BIA fee assessment and tax credit in
ACC 3.53.120(B) duplicative and unnecessary at this time; and
WHEREAS, there will be substantial costs and staff time to develop and implement
- measures to address software integration between the two separate systems that support
BIA payments and B&O tax payments; and
WHEREAS, the necessary costs and time commitments would not result in
additional revenues; and
WHEREAS, it is less expensive, simpler and more transparent to eliminate the BIA
rate than it would be to expend the resources to address software integration; and
WHEREAS, on August 19, 2021 the BIA Committee of Ratepayers adopted
Resolution 2021-01 (Exhibit B) which is a recommendation to the Auburn City Council to
replace the BIA rate with funding from the B&O Tax; and
WHEREAS, modifications to Chapter 2.98 of the ACC remove references to the
BIA fee assessment, reflects the funding through the B&O Tax, and renames the Auburn
Committee of the Rate Payers as the BIA Committee; and
Ordinance No. 6831
September 14,2021
Page 1 of 3
WHEREAS, the Auburn City Council continues to support the long standing
purpose, function and structure of the Committee and only seeks to change the method
in which these efforts are funded; and
WHEREAS, Chapter 2.98 of the ACC and the operation of the BIA Committee will
remain consistent with Chapter 35.87A RCW.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendments to Chapter 2.98 of the Auburn City Code. Sections
2.98.010, 2.98.020, and of the Auburn City Code are amended to read as shown in Exhibit A.
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3.- 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.
Ordinance No.6831
September 14,2021
Page 2 of 3
Section 4. 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.
SEP 2 0 2021'
INTRODUCED: SEP 2 .0 2021
PASSED: SEP 2 0 2021
APPROVED:
CITY OF AUBURN
ANCY B KUS, MAYAR
-ATTEST: APPROVED AS TO FORM:
fil\CLOOL., (ANIMA.
Shawn Campbell, Clerk Kendra Comeau, City Attorney
Published: 6/10( (, tij t ?'3• 24
Ordinance No. 6831
September 14,2021
Page 3 of 3
ORDINANCE 6831
EXHIBIT A
Chapter 2.98
AUBURN BUSINESS IMPROVEMENT AREA
Sections:
2.98.010 Business improvement area created.
2.98.020 _: - -- -• . .. -- .. : . Funding allocation.
2.98.030 Purpose of BIA and sp expenditures.
2.98.040 Committee of rate payer3BlA committee created.
2.98.050 Membership.
2.98.060 Appointment.
2.98.070 Officers—Meetings.
2.98.080 Compensation.
2.98.090 Role and responsibilities of the committee.
2.98.100 Annual reports of progress.
2.98.010 Business improvement area created.
A. There is created,pursuant to Chapter 35.87A RCW,a parking and business improvement area(BIA)with
a boundary as follows:
Beginning at the intersection of Auburn Way North and 5th Street NE;thence eastward along the alley lying between
and paralleling 6th Street NE and Park AV,for a distance of 200 feet from the centerline of Auburn Way North;
thence south,paralleling Auburn Way North and at a distance of 200 feet from the centerline of Auburn Way North,
to 1st Street NE;thence eastward along 1st Street NE to"E"Street NE;thence southward along"E"Street NE to East
Main Street;thence eastward along Main Street to"F"Street SE;thence south-ward along"F"Street SE to`2nd
Street SE;thence westward along 2nd Street SE to the mid-block point between"D"Street SE and Auburn Way
South;thence southward to the Burlington Northern Railroad tracks;thence westward along the Burlington Northern
Railroad tracks to"A"Street SE;thence northward along"A"Street SE to 3rd Street SE;thence westward along 3rd
Street SE and SW to the Burlington Northern Railroad tracks;thence northward along the Burlington Northern Rail
road tracks to 1st Street SW projected;thence westward along 1st Street SW to"D"Street SW;thence northward
along"D"Street SW and NW for a distance of 200 feet from the centerline of West Main Street;thence eastward,
paralleling Main Street and at a distance of 200 feet from the centerline of West Main Street,to the Burlington
Northern Railroad tracks;thence northward along the Burlington Northern Railroad tracks to 3rd Street NW;thence
eastward along 3rd Street NW and NE to"B"Street NE;thence northward along"B"Street NE for a distance of 200
feet from the centerline of 3rd Street NE;thence eastward,paralleling 3rd Street NE and at a distance of 200 feet from
Ordinance 6831
Exhibit A
PAGE 1 of 5
the centerline of 3rd Street NE,to the alley running in a north/south direction and lying east of`B"Street NE and
west of Auburn AV;thence northward along the alley to 5th Street NE;thence eastward along 5th Street NE to
Auburn Way North,which is the beginning point(when a street or alley is named,the area boundary is the centerline
of the right-of-way).
B. Businesses within the BIA may be subject to special assessments that are authorized by RCW 35.87A.010.
(Ord.6658§ 1,2017.)
•
2.98.020 •- -• -- _ ' -•• 3 • :; . • _.. .Funding allocation.
A. To finance the activities authorized in ACC 2.98.031, - ' - -- • - .. .= - -- • •• ••
- -- . -.. - - - -- --- - ---• - -- . a minimum of$90,000 per year
shall be allocated to the BIA that is collected from Business and Occupation taxes established in Chapter 3.53
ACC. The fmalbudget allocation shall be determined through the formal city budget process.
of$0.15.
B. • . . '. . - •-- -- •-- - - - - - • •:The BIA committee may recommend to the
Auburn City Councilcollection of special assessments that are allowed under Chapter 35.87A RCW.
Revenue Code,26 U.S.C. 170,with five or fewer full time employees.
2. Governmental agencies and offices.
/I. Businesses that are owned by,or are a subsidiary or affiliate of,another business entity that is subject
5. Businesses authorized by Chapter 18.60 ACC.
7. Businesses not required to obtain a business license under ACC Title 5.
Ordinance 6831
Exhibit A
PAGE 2 of 5
:. , - - - - - . .(Ord.6658§ 1,2017.)
2.98.030 Purpose of BIA and special assessment expenditures.
A. The purpose of the BIA is to aid in general economic development and neighborhood revitalization within
the BIA boundary,and to facilitate the cooperation of merchants,businesses,and residential property owners
for the benefit of trade,economic vitality,and livability.
B. Assessment expenditures are limited to the following purposes:
1. The acquisition,construction or maintenance of parking facilities for the benefit of the neighborhood
within the BIA boundary;
2. Decoration of any place within the BIA boundary;
3. Sponsorship or promotion of public events which are to take place on,or in,public places within the
BIA boundary;
4. Furnishing of music in any public place within the BIA boundary;
5. Providing professional management,planning,and promotion for the neighborhood within the BIA
boundary;
6. Providing maintenance and security for common,public spaces within the BIA boundary;or
7. Providing transportation services for the benefit of the neighborhood within the BIA boundary. (Ord.
6658§ 1,2017.)
2.98.040 Committee of rate payeraBIA committee created.
There is created an advisory committee to be known as the BIA(the committee).The
purpose of the committee is to serve in an advisory capacity to the city council.(Ord.6658§ 1,2017.)
Ordinance 6831
Exhibit A
PAGE 3 of 5
2.98.050 Membership.
A. There shall be not more than seven members of the committee who shall be appointed by the mayor and
confirmed by the city council,and who shall serve at the pleasure of the city council;provided,that the mayor
may appoint up to four additional members to serve as alternates in the event of a committee member's
absence.
B. The members shall be owners or operators of businesses located within the BIA boundary and shall be
selected to represent the variety of business types and geographic locations included within the BIA boundary.
(Ord.6658§ 1,2017.)
2.98.060 Appointment.
A. Committee members shall be appointed to a three-year term.
B. Upon the resignation of a committee member,removal by the city council,or expiration of a committee
member's term,the committee shall make recommendations to the city council and the city council shall make
an appointment to fill the vacancy.
C. The committee,upon four unexcused absences,may recommend the removal of any committee member to
the city council.(Ord.6658§ 1,2017.)
2.98.070 Officers—Meetings.
A. At the first regular meeting of each year,the committee members shall elect a chairperson and vice-
chairperson from among the members of the committee.
B. It shall be the duty of the chairperson to preside over all meetings of the committee.The vice-chairperson
shall preside at all meetings where the chairperson is absent.
C. Minutes shall be kept and meeting agendas prepared in coordination between members of the committee
and staff members.A majority of the members of the committee shall constitute a quorum for the transaction
of business,and a majority vote of those present shall be necessary to make recommendations to the city
council.
D. All committee meetings shall be staffed by city of Auburn personnel to support and assist the committee.
Ordinance 6831
Exhibit A
PAGE 4 of 5
E. All committee meetings shall be conducted in accordance with the committee's adopted rules for the
transaction of business,and Robert's Rules of Order or any other meeting procedures or guidelines authorized
by the city of Auburn shall be used for any subject not addressed within the committee's adopted rules of
procedure.(Ord.6658§ 1,2017.)
2.98.080 Compensation.
The members of the committee shall serve without compensation except for reasonable travel expenses
associated with the performance of the committee member's duties. (Ord.6658§ 1,2017.)
2.98.090 Role and responsibilities of the committee.
A. The committee shall,by resolution,fix the time and place within the city for regular meetings,and hold
additional meetings as the chairperson or a majority of the committee deems necessary.
B. The committee shall adopt rules for the transaction of business and keep a record of its resolutions,
transactions,fmdings,and determinations.These records shall be public and open to inspection.
C. The committee shall consider proposals for economic development and neighborhood revitalization
projects and programs consistent with the purposes listed in ACC 2.98.030,provide for public input and
submit comments in a timely manner to the mayor and city council,including an analysis of the extent to
which the committee's recommendations will improve economic development or downtown revitalization.
(Ord.6658§ 1,2017.)
2.98.100 Annual reports of progress.
The committee chairperson and/or vice-chairperson shall annually provide to the city council a report on
progress made in carrying out the committee's responsibilities.Additional reports may be submitted when
deemed appropriate by the committee or when requested by the city council.(Ord.6658§ 1,2017.)
Ordinance 6831
Exhibit A
PAGE 5 of 5
Exhibit B to Ordinance 6831
RESOLUTION NO. 2021-01
A RESOLUTION OF THE BUSINESS IMPROVEMENT
AREA (BIA) BOARD RECOMMENDING THAT THE
AUBURN CITY COUNCIL MODIFY CHAPTER 2.98 OF
AUBURN CITY CODE TO ELIMINATE THE BIA RATE AND
`REPLACE FUNDING OF BIA ACTIVITIES COLLECTED
BUSINESS AND OCCUPATION TAXES
WHEREAS, the Auburn City Council adopted Ordinance No. 4293 in 1988 which
established the Business Improvement Area (BIA) and levied special assessments on
certain businesses within the geographic boundary of the BIA; and,
WHEREAS, businesses within the BIA have been paying BIA rates for the last 33
years which have contributed to a number of investments in events and improvements
that benefit downtown Auburn; and,
WHEREAS, the BIA Board wishes to see this work continue,wishes to see the BIA
Board continue to its functions and roles, and wishes to see continued funding of BIA
investments; and
WHEREAS, the Auburn City Council adopted Ordinance 6814 in 2021 which
established a Business and Occupation (B&O) Tax. The B&O Tax includes a provision
that allows a business owner to receive a tax credit for payment of BIA fees; and
WHEREAS, there are complications associated with applying the BIA tax credit
that include (1) costly and complicated software integration between B&O tax software
and business license software, (2) the perception that business owners are paying two
taxes because they are making two separate payments, (3) a complication that BIA fees
are paid at the end of the calendar year and B&O taxes are paid at the beginning of a
different calendar year, (4) the complexity of dividing a one time lump sum BIA payment
Resolution No. 2021-01
August 19, 2021
Page 1 of 2 Rev.2021
•
;>.
•
into a quarterly B&O tax payment, and (5)for businesses that pay both a B&O tax and a
{
BIA fee the total amount paid by a business is the same whether a tax credit is applied or
the fee is removed which means that the preceding complications do not yield a different
revenue outcome; and
WHEREAS, the time and cost associated with overcoming the complexities of
applying the BIA tax credit meets or exceeds the revenue impact associated with
eliminating the BIA rate/fee. •
NOW, THEREFORE, THE BIA BOARD RECOMMENDS the following:
Section 1. The Auburn City Council amend Chapter 2.98 of the Auburn City
Code to eliminate the BIA rate and fee.
Section 2. The Auburn City Council maintain the functions and roles of the BIA
and the BIA Board.
Section 3. The Auburn City Council maintain the annual funding commitment to
the functions and roles of the BIA.
Section 4. This Resolution will take effect and be in full force on passage and
signature.
, 2021.
g , y Oe 9l't7,�'i
Dated and Signed this Q' 'da of
BUSINESS IMPROVEMENT AREA BOARD
•
J e N ROTTLE, CHAIR •
•
Resolution No.2021-01
August 19,2021
Page 2 of 2 Rev.2021