HomeMy WebLinkAboutO-2917 - Continues the Central Marysville annexation sales and use tax (3.85)CITY OF MARYSVILLE
Marysville WA, Washington
ORDINANCE NO.J-'l11
AN ORDINANCE OF THE CITY OF MARYSVILLE, WASHINGTON,
AUTHORIZING THE CITY OF MARYSVILLE TO CONTINUE TO
IMPOSE A SALES AND USE TAX AS AUTHORIZED BY RCW
82.14.415 AS A CREDIT AGAINST STATE SALES AND USE TAX;
CERTIFYING THE COSTS TO PROVIDE MUNICIPAL SERVICES
TO THE CENTRAL MARYSVILLE ANNEXATION AREA; AND
SETTING A NEW THRESHOLD AMOUNT FOR FISCAL YEAR 2013
RELATING TO ANNEXATIONS.
WHEREAS, state law authorizes the reallocation of the sales tax already collected
by the state to be remitted to the City to assist with funding the costs of certain newly
annexed areas; and
WHEREAS, the City Council of the City ofMarysville, Washington, adopted its
Ordinance No. 2792, annexing the Central Marysville Annexation Area with a population
of at least 20,000 people, effective December 30, 2009 ("Central Marysville Annexation
Area"); and
WHEREAS, pursuant to RCW 82.14.415, the City is authorized, under the
circumstances of this annexation, to impose a sales and use tax as authorized with that tax
being a credit against the state tax; and
WHEREAS, with the passage of Ordinance No. 2799 in November 2009, the City
imposed such a sales and use tax under RCW 82.14.415 for the Central Marysville
Annexation Area; and
WHEREAS, the City Council finds and determines that the projected cost of at
least $8,439,325 to provide municipal services to the annexation area exceeds the projected
general revenue estimated to be $5,378,656 that the City would otherwise receive from the
Central Marysville Annexation Area on an annual basis and which results in an estimated
revenue shortfall of $3,060,668; and
WHEREAS, due to said revenue shortfall, the City Council finds that it is
appropriate to continue said sales and use tax for the Central Marysville Annexation Area
under the authority ofRCW 82.14.415.
2013 Annexation Sales & Use Tax Ordinance
NOW THEREFORE, the City Council of the City of Marysville, Washington,
does ordain as follows:
Section 1. Continuation of sales and use tax under authority of RCW 82.14.415
and Ordinance No. 2799. The continuation of the sales and use tax for the Central
Marysville Annexation Area as previously authorized and imposed pursuant to RCW
82.14.415 and Ordinance No. 2799 at a tax rate of 0.2% is hereby authorized and renewed
for2013.
Section 2. Certification of costs to provide municipal services to Central
Marysville Annexation Area. In accordance with RCW 82.14.415(9), it is hereby
certified that the costs to provide municipal services to the Central Marysville Annexation
Area fiscal year 2013 is $8,439,325.
Section 3. Threshold amount. The threshold amount for the Central Marysville
Annexation Area for fiscal year 2013 for imposing the sales and use tax credit under RCW
82.14.415 is $3,060,668.
Section 4. Effective Date. This Ordinance shall be effective (5) five days following
adoption and publication.
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PASSED by the City Council and APPROVED by the Mayor this '_'_ day of
February, 2013.
A~O&M.
AP lL O'BRIEN, Deputy City Clerk
APPROVED AS TO FORM:
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20J3 Annexation Sales & Use Tax Ordinance
2013 Threshold (Gap) Calculation for Annexation Sales Tax Credit
Ce ntral
Annexation Prior Annexation Post Annexation Change
Population 37,530 58,040 20,510
Percent Change 54,6%
Assessed Value 3,934,222,656 5,357,774,475 1,423,551,819
Percent Change 36,2%
Annex
2009 2010 2011 2013 Budget % of Population % of Assessed Contract Base Expense
Fire Contract 7,471,229 10,150,854 8,980,875 4,908,013 3,249,623 2,141,193 2,141,193
Police 12,115,383 12,913,745 13,754,180 7,516,606 4,976,787 4,976,787
Parks Maine 1,120,427 612,309 405,413 405,413
Legal 680,283 735,927 871,345 476,187 315,286 315,286
Courts 1,904,514 1,575,380 1,659,985 907,175 600,646 600,646
Total Annex Exp 26,386,812 14,420,291 9,547,755 8,439,325
Annexation Rev 5,378,656 5,378,656 5,378,656
Exp vs. Rev -Annexation Sales Tax Credit need (9,041,634) (4,169,099) (3,060,668)
S:\CityH aII\SHARED\Fina nce Mgrs\An nexation Sa les Tax\Tax Credit Calc\An nexation ST Credit Ca Ie 2013 xis 1/18/2013