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HomeMy WebLinkAbout1958RESOLUTION NO. _____ \ _9_5_~-- A RESOLUTION of the City Council of the City of Kent, Washington, determining a new threshold amount for the sales and use tax authorized by RCW 82.14.415 and codified in Chapter 3.27 of the Kent City Code, relating to the cost of providing municipal services to the Panther Lake Annexation Area for the 2018 fiscal year, and authorizing the Finance Director to certify the threshold amount to the Washington State Department of Revenue. RECITALS A. RCW 82.14.415 authorizes the City to impose a sales and use tax as a credit against state retail sales and use taxes collected under Chapters 82.08 and 82.12 RCW to assist the City in providing municipal services to newly annexed areas. B. After providing all appropriate notice and following appropriate procedure, and following a favorable vote on the annexation proposition, the Kent City Council adopted Ordinance No. 3936 on December 8, 2009, approving the Panther Lake Annexation Area effective July 1, 2010. The population within the annexation area determined at the time of annexation was 25,458 people. 1 Tax Credit Threshold Panther Lake Annexation C. On February 16, 2010, the City Council passed Ordinance No. 3947, creating Chapter 3.27 of the Kent City Code and imposing the sales and use tax at the rate of 0.2 percent. D. On February 15, 2011, the City Council adopted Resolution No. 1839 confirming the tax rate at 0.2 percent and authorizing the finance director to certify the threshold amount for the 2011 fiscal year. E. On February 7, 2012, through Resolution No. 1853, the City Council adopted a new threshold amount for the 2012 fiscal year and authorized the finance director to certify the same. F. On February 19, 2013, through Resolution No. 1871, the City Council adopted a new threshold amount for the 2013 fiscal year and authorized the finance director to certify the same. G. On February 4, 2014, through Resolution No. 1881, the City Council adopted a new threshold amount for the 2014 fiscal year and authorized the finance director to certify the same. H. On February 17, 2015, through Resolution No. 1904, the City Council adopted a new threshold amount for the 2015 fiscal year and authorized the finance director to certify the same. I. On February 16, 2016, through Resolution No. 1920, the City Council adopted a new threshold amount for the 2016 fiscal year and authorized the finance director to certify the same. J. On February 21, 2017, through Resolution No. 1940, the City Council adopted a new threshold amount for the 2017 fiscal year and authorized the finance director to certify the same. 2 Tax Credit Threshold Panther Lake Annexation K. With this Resolution, the City authorizes the imposition of similar annexation sales and use taxes for the 2018 fiscal year. L. The City Council of the city of Kent, Washington, finds and determines that the projected cost to provide municipal services to the Panther Lake Annexation Area for the 2018 fiscal year will be at least $14,243,180, and that this cost exceeds the projected general revenue that the City would otherwise receive from the annexation during the 2018 fiscal year, which is estimated to be $9,265,410. M. Pursuant to RCW 82.14.415, the city of Kent is authorized, under the circumstances of this annexation, to impose a sales and use tax for the 2018 fiscal year, which shall be collected by the State department of revenue from those persons who are taxable by the state under Chapters 82.08 and 82.12 RCW, upon the occurrence of any taxable event within the City. N. The rate of tax imposed shall be 0.2 percent, and shall be in addition to other taxes authorized by law, and the threshold amount for the 2018 fiscal year is $4,977,770. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION SECTION 1. -Ra t e and Threshold Amount. The Kent City Council determines that the threshold amount for the City's projected net cost in providing municipal services to the Panther Lake Annexation Area for the 2018 fiscal year is $4,977,770. The City Council previously imposed a sales 3 Tax Credit Threshold Panther Lake Annexation and use tax at the rate of 0.2 percent, with the passage of Ordinance No. 3947 on February 16, 2010. SECTION 2. -Implementation and certification. The Mayor of the city of Kent is authorized to implement administrative procedures as may be necessary to carry out the provisions of this resolution. The City's Finance Director is authorized to certify the amount for the 2018 fiscal year to the appropriate agencies within the State of Washington. SECTION 3. -Severability. If any section, subsection, paragraph, sentence, clause or phrase of this resolution is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this resolution. SECTION 4. -Savings. Resolution No. 1940 shall remain in full force and effect until the effective date of this resolution. SECTION 5. -Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. SECTION 6. -Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this resolution, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or resolution numbering and section/subsection numbering. SECTION 7. -Effective Date. This resolution shall take effect and be in force immediately upon its passage, however the imposition of the 4 Tax Credit Threshold Panther Lake Annexation sales and use taxes for the 2018 state fiscal year authorized by this resolution shall not take effect until the commencement of that fiscal year. PASSED at a regular open public meeting by the City Council of the city of Kent, Washington, this J Oy,,.._day of ~ , 2018. CONCURRED in by the Mayor of the city of Kent this rJ._01'--day of ~.r=,2018. DANA RALPH, MAYOR ATTEST: P: \Civil\Resolution\Annexation Sales Tax Threshold 2018 -Resolutlon .docx 5 Tax Credit Threshold Panther Lake Annexation CITY OF KENT PANTHER LAKE ANNEXATION CERTIFICATE JULY 1, 2018 THROUGH JUNE 30, 2019 Description Property Taxes Sales and Use Tax Sales and Use Tax -Criminal Justice Utility Taxes Cable Franchise Fee Liquor -Excise Tax & Board Profits Fuel Tax Other State Shared Revenues Maximum Sales Tax Credit Department City Council Mayor's Office & City Clerk Municipal Court Employee Services Law Finance Information Technology Police Fire Services Economic & Community Development Public Works Parks, Recreation & Community Services Revenues Over/ (Under) Expenditures Estimated Revenues 4,244,290 197,160 730,780 2,741,000 326,160 376,860 611,880 37,280 9,265,410 4,977,770 14,243,180 Estimated Expenditures 86,980 570,680 683,290 230,710 589,780 633,500 376,750 6,398,230 280,220 854,920 1,334,960 2,203,160 14,243,180