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HomeMy WebLinkAbout1693Resolution No. 1693 CON0=1 04 -Finance Passed -11/16/2004 ["Beginning August 1, 2004"] Sales Tax Streamlining-Comprehensive Plan Amendment RESOLUTION NO. I (p 13 A RESOLUTION of the City Council of the City of Kent, Washington, declaring an emergency to pursue to a revision of the Kent Comprehensive Plan to ensure continuing compliance with RCW 36.70A by removing the City's designation as a Regional Manufacturing/Industrial Center under the Growth Management Act in the event that the state Legislature enacts a proposed "Sales Tax Streamlining" amendment that would reallocate sales tax sourcing rules in the State of Washington in a manner that dramatically and adversely affects the City of Kent's ability to adequately fimd and support the capital infrastructure and services necessary for this Growth Management Act designation. RECITALS A. Under the state Growth Management Act, the City of Kent's land use, transportation, and capital facilities element establishes the City of Kent and the Green River Valley as one of the few designated Regional Manufacturing/Industrial Growth Centers in Western Washington. B. The City's Comprehensive Plan Policies state that this Regional Manufacturing/Industrial Center is a key component of the regional economy. Our policies, which are consistent with the policies and goals of the state Growth Management Act (GMA), define these centers as areas with a significant amount of manufacturing, industrial, or other related employment (at least 10,000 employees). Sales Tax Streamlining- Comprehensive Plan Amendment The City's North Valley IndU$trial Area is an extremely important part of both the City's and the region's economic and employment base, and 3.1 square miles of this industrial area has been designated as a Manufacturing/Industrial Center. C. The Puget Sound Regional Council (PSRC), in its 2020 Vision statement, which agam is consistent with GMA requirements, states that "Manufacturing/Industrial Centers are major, existing regional employment areas of intensive, concentrated manufacturing and industrial land uses which cannot be easily mixed at higher densities with other uses." PSRC's Vision statement requires that, "to preserve land at these centers for manufacturing, industry and related uses, large retail uses or non-related offices are discouraged." Plus, the PRSC requires that cities with these centers provide the necessary infrastructure to support them: "Provision of adequate public facilities and services, including good access to the region's transportation system, is very important to the success of manufacturing/industrial centers." D. King County, in its Countywide Planning Policies, states: "Manufacturing/Industrial Employment Centers are key components of the regional economy. These areas are characterized by a significant amount of manufacturing, industrial, and advanced technology employment." The county makes special notation that these centers "differ from other employment areas, such as business/office parks, in that a land base and the segregation of major non-manufacturing uses are essential elements of their operation." E. Kent must provide the complex infrastructure to support these centers. The county's Land Use Planning Policy LU-54 directs cities with these centers to "design access to the Regional Manufacturing/Industrial Centers to facilitate the mobility of employees by transit, and the mobility of goods by truck, rail or waterway 2 Sales Tax Streamlining- Comprehensive Plan Amendment as appropriate." Regional comprehensive plans shall include strategies to provide capital improvement projects which support access for movement of goods." F. Prior to the enactment of the GMA and in the nearly fifteen (15) year time period that the Act has been in effect, the City has developed transportation, utility, land use, and other capital facilities, at a cost in excess of one hundred million dollars. G. These capital infrastructure improvements have successfully supported the growth and success of these warehouse, manufacturing, and distribution businesses which serve the Ports of Seattle and Tacoma, the greater Seattle region, and the State of Washington in general. These businesses, which are particular to the City of Kent and which the City has encouraged at the expense of encouraging other types of retail and office businesses, generate sales tax revenue that the City has, in turn, applied to support the infrastructure necessary to keep this manufacturing, warehouse, and distribution economy vibrant and healthy. Moreover, Kent will have to spend millions more to improve, operate, and maintain this infrastructure. H. Currently, the City projects that its sales tax revenue will represent nearly one-fourth of the City's General Fund revenues for the 2005 fiscal year. The City relies upon a portion of this revenue, together with its other revenue sources, to maintain, repair, operate, and improve the entire infrastructure that supports this vital economic engine in south Puget Sound. I. Current proposals that may be placed before the state Legislature in 2005 may radically alter sales tax sourcing rules in the State of Washington. Should the state Legislature enact destination based sales tax sourcing, commonly referred to as "Streamlined Sales Tax," impacts to the City's revenue stream, and its concurrent ability to support the manufacturing, warehousing, and distribution businesses in the City, would be dramatically reduced. Current sales tax reallocation proposals under 3 Sales Tax Streamlining- Comprehensive Plan Amendment discussion, according to state Department of Revenue forecasts, would reduce the City's sales tax revenue by $3.3 million per year. Without this revenue, the City will no longer be able to adequately fund its infrastructure needs or to appropriately provide the land use and transportation services needed to continue to support this business sector, which the City has endeavored to support for nearly three decades. As an example, the City has constructed a number of much needed cross-valley road corridors: • 277th Street Phase I Corridor Project at an approximate cost of $32 million. • Partnered with City of Auburn to construct 277th Phase II Corridor Project at an approximate cost of $32 million. • 196th Street Corridor Project at an approximate cost of $52 million. • 228th Street Corridor Project at an approximate cost of $30 million. Each of these projects, together with many other City infrastructure improvements, directly support and serve the City's Manufacturing/Industrial Center. J. If the state Legislature enacts sales tax sourcing legislation that has the dramatic and detrimental effect projected by the Department of Revenue to the City of Kent, the City Council will need to reconsider whether it can afford to continue to support this business sector. Land use changes may be required, and the City may be forced to eliminate its designation as a Regional Manufacturing/Industrial Center under theGMA. K. As a result, it is both necessary and appropriate that this Council, as the steward of taxpayer funds for the City of Kent, declare that, pursuant to Kent City Code section 12.02.010, an emergency of community-wide significance exists. Accordingly, and in order to continue to promote the public health, safety, and general welfare of the citizens of Kent, this Council directs staff to prepare and consider a Comprehensive Plan amendment, pursuant to the GMA, to remove the City's 4 Sales Tax Streamlining- Comprehensive Plan Amendment designation as a Regional Manufacturing/Industrial Growth Center under the GMA and to begin necessary review to redesignate land uses in the Green River Valley consistent with an adjusted land use vision that appropriately responds to the revenues generated from the amended sales tax sourcing legislation, should the state Legislature enact legislation similar to the proposed "Streamlined Sales Tax" measure. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION SECTION 1. -Recitals Incorporated The foregoing recitals are incorporated into this resolution. SECTION 2. -Comprehensive Plan Amendment. Because of the dramatic and imminent threat to the City's sales tax revenue and its concurrent impact on the City's ability to support its Regional Manufacturing/Industrial Growth Center's economy, the City Council finds that an emergency exists. Further, in order to preserve and promote the public health, safety, and welfare, the City Council directs staff to begin the process to amend the City's Comprehensive Plan to provide that, if the Legislature redistributes sales tax sourcing in a manner that negatively impacts the City's sales tax revenue stream, the City may in that event withdraw its designation as a Regional Manufacturing/Industrial Center under the GMA and, concurrent with that withdrawal, commence a process to revisit and redesignate land uses and the long term land use and capital needs plan in the Green River Valley in the City of Kent. · 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. 5 Sales Tax Streamlining- Comprehensive Plan Amendment -----~-----. ' .-"':, SECTION 4. -Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. SECTION 5.-Efftctive Date. This resolution shall take effect and be in force immediately upon its passage. PASSED at a regular open public meeting by the City Council of the City of Kent, Washington, this lb day ofNovember, 2004. CONCURRED in by the Mayor of the City of Kent this II.. day of November, 2004. AITEST: BRENDA JACOBER, c CLERK ..WPROVED AS TO FORM: T~Jl:t~~y 6 -~ ................. _.. ..... / --' .-... _ - .... --~--:..:' • ----..:::... : .J--- Sales Tax Streamlining- Comprehensive Plan Amendment I hereby certify that this is a true and correct copy of Resolution No. I IP13 passed by the City Council of the City of Kent, Washington, the rt. day of November, 2004. ~~ BRENDAJACOBE~ TYCLERK ' .. -.... ... -----: ....... -·. v, ./ .• ~ .. ... " -... .. .. -----.. 7 Sales Tax Streamlining- Comprehensive Plan Amendment