HomeMy WebLinkAboutO-2799 - Sets threshold and tax rates for Central Marysville Annexation (3.85)CITY OF MARYSVILLE
Marysville,Washington
ORDINANCE NO.;?,Clq
AN ORDINANCE OF THE CITY OF MARYSVILLE,
WASHINGTON, SETTING THE THRESHOLD AND TAX RATES IN
ACCORDANCE WITH RCW 82.14.415 WITH RESPECT TO THE
CENTRAL MARYSVILLE ANNEXATION.
WHEREAS,effective December 30, 2009 at 12.01 a.m., the City of Marysville
will annex the Central Marysville annexation area with an anticipated population ofover
10,000 people;and
WHEREAS,pursuant to RCW 82.14.415,the City is authorized,under the
circumstances ofthis annexation,to impose a sales and use tax as authorized with that tax
being a credit against the state tax; and
WHEREAS,RCW 82.14.415 requires that the City Council determine a threshold
amount representing costs to serve the area less revenues to be generated by the area, as
well as a state sales tax rate to meet the financial needs ofthe annexed area; and
WHEREAS,blending the 2010 and 2011 annexation related expenses,so as to
coincide with the state budget, results in an estimated shortfall of$3,017,793;and
WHEREAS,the City Council finds and determines that the projected cost to
provide municipal services to the area known as the Central Marysville annexation is at
least $11,006,191 which exceeds the projected general revenue of$7,988,398 to be
generated from the annexation and which results in an estimated shortfall of $3,017,793
and
WHEREAS,the maximum sales tax assistance under RCW 82.14.415 for an
annexation ofbetween 10,000 and 20,000 people is.1%ofthe sales tax and for over
20,000 people the assistance is .2%ofthe sales tax; and
WHEREAS,it is appropriate to condition the determination ofthe sales tax
assistance rate upon the City's verification by the State of Washington Office ofFinancial
Management that the annexation area or any part or parts thereof meet the population and
all other requirements for the Incentive Tax Dollars.
WHEREAS,the 2010/2011 estimated sales tax in the City is at least $10,021,418
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and the estimated sales tax from the annexation is $200,000,for an estimated sales tax
assistance total,at .1% for the City and the annexed area,$1,202,520;and at .2% for the
City and the annexed area,of$2,405,040;and
NOW THEREFORE,the City Council ofthe City ofMarysville,Washington,
does ordain as follows:
Section 1.Pursuant to RCW 82.14.415,the City Council determines that the anticipated
revenues from the Central Marysville annexed area are estimated to be $7,988,398,which
results in a threshold difference in the initial blended year of annexation to serve the area in
the amount of$3,017,793 and to assist the City in providing services to the area within the
annexation there shall be imposed a tax rate, per RCW 82.14.415,equal to 0.1%ifthe
annexation area population is between 10,000 and 20,000 people or 0.2%ifthe annexation
population is over 20,000 people.Pursuant to RCW 82.14.415,this tax is in addition to
other taxes authorized by law and shall be collected from those persons who are taxable by
the State under chapters 82.08 and 82.12 RCW upon the occurrence ofany taxable event
within the City ofMarysville.All revenue collected under this ordinance shall be used
solely to provide,maintain and operate municipal services for the annexation area. The
effective date ofthis tax rate will be July 1,2010.
Section 2. This ordinance shall be effective (5) five days following adoption and
publication.
PASSED by the City Council and APPROVED by the Mayor this k day of
-J,.)Q\tfJv\bR/,2009.
ATTEST:
By II ()vft/nJt%f\F~=-le-crk--
Approved as to form:~
By~".....if(C..J •
G NT K.WEED:City Attorney
Date ofPublication:,J2S /tJ1
Effective Date (5 days affer publIcatIOn):_-'-''-+-'''''''"+-''----'-_
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