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HomeMy WebLinkAbout1863Resolution No. 1863 (Amending or Repealing Resolutions) CFN = 104 -Finance Passed-7/31/2012 Statement of Intent Resolution The date ["Begmnmg July 1, 1998"] has led to confus1on Th1s date Will be deleted from cover sheets of ord1nance/resolut1on rev1s1on pages Th1s cover sheet will be deleted on electronic pages only, no other deletions or changes have been made to the document-6/21/2012 RESOLUTION NO. ---'-1-"'8:......:&:;_3;;;;.___ A RESOLUTION of the City Council of the City of Kent, Washington, stating its mtention to develop a new revenue source for street overlays and related Improvements to take effect no later than January 1, 2013. RECITALS A. The city obtains most of its revenue from various taxes, including property tax, real estate excise tax, and ut11ity tax, and from fees. The city uses this revenue to provide public services, including public safety (police), parks and recreation facilities and programs, and c1ty streets. These products and services, however, do not produce revenue; other unrelated matters determine the revenue stream. When the revenue goes down, the need for these serv1ces remams, and often mcreases. The need for the c1t1zens to have continued publ1c safety protection and to enjoy the city's parks and parks programs often increases in a down economy. B. The legislative action which eliminated car tab fees that provided pass-through revenue for local road Improvements removed a significant source of the city's revenue for road and nght-of-way infrastructure mamtenance and operations. The city had to make up for 1 Statement of Intent Resolution that loss by diverting money from its general fund that was previously used for other purposes in order to attempt to make up the lost car tab revenue. C. The passing of Referendum 47, which limited, in actual dollars, the amount of property tax to 1% plus new construction, further placed the city in a revenue shortfall position. With annual inflation typically exceeding 1% per annum and w1th the cost of hiring outs1de contractors, construction matenals, 011 and gas, health care, and labor contracts all grow1ng at a rate in excess of 1% per annum, the City's gene.ral and cap1tal funds have faced a s1gmficant structural shortfall that the c1ty has had to try to cover from other revenue sources. D. The great recess1on of 2008, which contmues to dramatically impact the city today, had a devastating 1mpact on other city revenue sources. Real estate excise tax revenue, for example, plummeted by over 60%. Sales tax revenue fell dramatically, and even utility tax revenues slumped. E. The net result of these various impacts has been that the city's general fund and 1ts capital improvement fund have been significantly eroded. SpeCifically, the c1ty's ability to maintain, repair and operate its streets has become severely l1mited, and many of the city's streets are degraded and deteriorating. The c1ty no longer has sufficient funds to maintain its streets in a state of repair that the public expects and deserves. F. One of the most significant factors contributing to street damage is the presence of heavy trucks on city roads. For nearly half a century, Kent has supported the development of the Green River Valley mto a maJor transportation hub, becoming one of the largest 2 Statement of Intent Resolution warehouse/distnbution centers on the west coast of the United States. Matenals, products, and supplies worth billions of dollars process in and out of the Kent Valley annually. The city has developed a substantial road network to facilitate and support these businesses over that time. That network now 1s in need of repair because the heavy trucks that move these goods in and out of Kent accelerate the damage caused to c1ty streets on a daily basis. G. The city council believes that a new revenue model is needed to prov1de income for city street overlays and related improvements. Otherwise, city streets will continue to degrade and, significantly, the total cost to bring these streets back into good repair will only mcrease with time, since the ability and expense to bring streets back to good repair increases dramatically as pavement deterioration increases. H. Because the city's warehouse and distribution businesses contribute disproportionately to the damage to the city street network, the city council wants to develop a revenue package that places the greatest burden on those businesses that cause the greatest damage to our streets. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION SECTION 1. -The city council of the c1ty of Kent has determmed that the city and 1ts citizens need a new revenue source to maintain its streets in good repair. The city council has further determmed that those businesses in Kent that contnbute to the deterioration of its streets should pay a greater share of cost to maintain and overlay those streets. 3 Statement of Intent Resolution However, the city council wants to work w1th its business community to find a revenue structure that the busmess owners in Kent find most fairly apportions that cost. SECTION 2. -The city council will consider all available revenue structures, including, without limitation, a Business and Occupation Tax, a business license tax, a transportation benefit district, and any other tax or fee structure that will best serve the needs of the people to have well- maintamed streets wh1le imposing the least and fairest burden on the business community in Kent. SECTION 3. -To that end, the city council, by this Resolution, expresses 1ts firm intent to enact a tax, fee, license, or other structure, to be in effect no later than January 1, 2013, that produces between four to six million dollars per annum for the sole purpose of street overlays, maintenance, repair, and related Improvements. SECTION 4. -The city council affirms its intent to work cooperatively with the business community as it develops this new revenue stream, with the firm understanding and commitment, however, that new revenues are requ1red and must be m place by next year. SECTION 5. -Severab1l1ty. 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 val1d1ty of the remaining portions of this resolution. SECTION 6. -Ratification. Any act consistent with the authority and prior to the effective date of this resolution 1s hereby ratified and affirmed. 4 Statement of Intent Resolution SECTION 7. -Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code rev1ser are authonzed 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 resolut1on numbenng and section/subsection numbering. SECTION 8. -Effective Date. This resolution shall take effect and be in force immediately upon 1ts passage. PASSED at a regular open public meeting by the City Council of the City of Kent, Washington, this 6-1 day of ~ , 2012. CONCURRED in by the Mayor of the City of Kent this day of ~! J --~-T~~~~--_,2012. ATIEST: ~~E~R-,C--~~~~--- APPROVED AS TO FORM: Tc;t~A~~~ 5 --/ -~ -.:... -.. :' ··--· Statement of Intent Resolution I hereby certify that this is a true and correct copy of Resolution No. /'ff(p3 passed by the City Council of the City of Kent, Washington, the .3t day of -r~ 2012. 6 -. -. -.... .:.. ..:. --.. -- Statement of Intent Resolution