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
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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