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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 10/28/1982 Kent, Washington j October 28 , 1982 A special meeting of the Kent City Council was called to order by Mayor Hogan at 5: 00 o'clock p.m. Present: Mayor Hogan, Councilpersons Bailey, B. Johnson, J. Johnson, Kelleher, and Leahy, City Administrator Cushing , City Attorney DiJulio, and Finance Director McCarthy. Councilperson Biteman was absent. It was determined that proper legal notice had been given for the special meeting and that the purpose of the meeting was to consider an ordinance imposing an additional sales or use tax. Upon Bailey' s question, City Attorney DiJulio noted that he had prepared two ordinances; one to impose additional sales tax at the same rate and the same time as the County imposes it and one to impose an additional one half cent tax for Kent to become effective January 1, 1983. Leahy noted that although he had been enthusiastic about this subject earlier, he wished to offer an alternative suggestion now. He suggested that Kent' s action be tied to the County' s action with reference to the time element but that Kent state that we would impose the full half cent allowed. DiJulio con- firmed that Kent could amend any ordinance passed tonight, in case the County takes no action on the additional sales tax. It was determined that an ordinance passed tonight could be delivered so as to meet the November 1 deadline. Leahy clarified for Kelleher that he proposed to follow the County 's action as to time but to set Kent' s rate at one half cent. Kelleher suggested that we go with the County for both the time and the rate , pointing out that later we could increase the rate to the one half cent, if necessary. Leahy opined that the proposed rate for the County was . 3 and that the difference between Kent' s proposed . 5 was not significant and would make amending the ordinance later unnecessary. Bailey suggested that going along with the County would be more palatable to the business community for the time being. B. Johnson concurred with Bailey, noting that the rate could be changed after the bud- get process. DiJulio clarified that if the ordinance was amended in January to increase the additional amount of the sales tax it would not be effective until the second quarter of 1983 . Bailey noted that passing an ordinance now would protect us and assure that Kent would receive its share of the additional taxes. Kelleher stated that he was not in favor of imposing the full half cent at this time because a decision had to be made as to whether this tax would be used in the budget consideration to - 1 - t October 28 , 1982 avoid some cuts. Leahy commented that adopting an ordinance paralleling the County' s action would really state that if and when the County started collecting increased sales tax, Kent would do the same. Bailey concurred, noting that if we do nothing now and the County passes an increase in the sales tax, Kent will not receive any of the additional funds collected. He noted that additional funds should be earmarked for future use and not be immediately spent. Bailey noted that he did not consider that these proposed funds should be used as a means to restore the cuts which have been made to the proposed 1983 budget. Mayor Hogan stated that she was under the impression that the major portion of the proceeds from additional sales tax would be for major projects. It was determined that these additional funds had been mentioned as a way to restore some of the proposed cuts to the budget. Leahy stated that he would be willing to state that the funds would be used only for capital projects. Kelleher noted that some of the funds might be needed for other than that purpose. Cushing pointed out that if programs which had been cut from the budget were to be restored or operating funds were needed, the proceeds generated by an additional sales tax could be used. Upon Mayor Hogan' s question, Cushing noted that the total amount for the restoration budget and the supplemental budget was $920, 000 and that imposing the full one half cent additional sales tax would generate $1 , 150, 000 in 1983, enough to fund both the restoration and supplemental budgets. He noted that the remaining $200 , 000 to $250 , 000 could go toward capital im- provements. Cushing further noted that on an annual basis, after 1983 , the one half cent increase would generate about $2 million annually. Leahy noted that if the County does not take action by the January deadline, he would ask the Kent Council to impose the additional tax for Kent in spite of what the County does. Mayor Hogan noted that our needs were great and we should not wait for the County to impose the tax BAILEY MOVED to adopt Ordinance 2368 , adopting a tax at the same rate and at the same time as is imposed by King County. B. Johnson seconded. Motion carried unanimously. The special meeting was adjourned at 5: 30 p.m. Marie Jen6efi, CMC - 2 _ City Clerk