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Home My WebLink AboutReg 2014-11-17 Item 4E - Resolution - Urge Governor Inslee and State Legislature to Preserve Streamlined Sales Tax Mitigation Distribution in 2015-2017 State BudgetCOUNCIL AGF,NDA SYNOPSIS Meeting Date Prepared 1?y Mayor:( review COUllci review 11/17/14 LH A,14C [1] Motion Mtg Dale Ordinance Mt, Dale Rid Award AN Date Public Hearing Ali,g Date E Other Mtg Date Resolution Mtg Date 11/17/14 Mayor 11 HR DCD Finance — lire _ IT E P&R LI Police E Pir SPONSOR II Council spoNs( In 2007 the State of Washington entered into the Streamlined Sales Tax (SST) compact SUMMARY that changed the credit for local sales taxes from point of origin to point of destination. This resulted in enormous sales tax revenue losses to the City of Tukwila which is home to numerous manufacturing, distribution and warehousing centers. The State made a commitment to jurisdictions like ours through implementation of a mitigation payment program, and it is crucial that this program be fully funded in the 2015-2017 Budget. Rim] Wkl) BY �)\V Mtg. CA&P Cmte Z F&S Cmtc E Transportation Cmte E Utilities Cmte J i Arts Comm. Parks Comm. E Planning Comm. DATE: 11/4/14 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPoNsoR/ADmiN. Commulikll ITEM INFORMATION ITEM No. 4.E. 55 STAFF SPoNsoR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 11/17/14 AGENDA PHA Tritk A resolution urging Streamlined Sales Governor Inslee Tax mitigation and the State Legislature to preserve payments in the 2015-2017 Budget. cvm0oRy F Driceusfion Mtg Date [1] Motion Mtg Dale Ordinance Mt, Dale Rid Award AN Date Public Hearing Ali,g Date E Other Mtg Date Resolution Mtg Date 11/17/14 Mayor 11 HR DCD Finance — lire _ IT E P&R LI Police E Pir SPONSOR II Council spoNs( In 2007 the State of Washington entered into the Streamlined Sales Tax (SST) compact SUMMARY that changed the credit for local sales taxes from point of origin to point of destination. This resulted in enormous sales tax revenue losses to the City of Tukwila which is home to numerous manufacturing, distribution and warehousing centers. The State made a commitment to jurisdictions like ours through implementation of a mitigation payment program, and it is crucial that this program be fully funded in the 2015-2017 Budget. Rim] Wkl) BY �)\V Mtg. CA&P Cmte Z F&S Cmtc E Transportation Cmte E Utilities Cmte J i Arts Comm. Parks Comm. E Planning Comm. DATE: 11/4/14 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPoNsoR/ADmiN. Commulikll Consideration of attached resolution Unanimous approval; forward to Consent Agenda COST IMPACT / FUND SOURCE EXPI.;NDITURE RkQUHWD AMOUNT BUDGETED APPROPRIATION REQUIRED $N/A $N/A $N/A Fund Source: C'otrinients: MTG. DATE RECORD OF COUNCIL ACTION 11/17/14 MTG. DATE ATTACHMENTS 11/17/14 Informational Memorandum dated 10/29/14 Draft resolution Minutes from the Finance and Safety Committee meeting of 11/4/14 55 56 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Laurel Humphrey, Council Analyst DATE: October 29, 2014 SUBJECT: Resolution regarding Streamlined Sales Tax mitigation payments ISSUE The City of Tukwila is part of a coalition of cities, counties and transit agencies that have issued a letter to Governor Inslee and the Legislature urging the preservation of full Streamlined Sales Tax (SST) mitigation payments in the 2015-2017 Operating Budget. Adoption of this proposed resolution will affirm the City Council's commitment to this issue. BACKGROUND In 2007 the State of Washington entered into the Streamlined Sales Tax (SST) compact that changed the credit for local sales taxes from point of origin to point of destination. This resulted in enormous sales tax revenue losses to the City of Tukwila which is home to numerous manufacturing, distribution and warehousing centers. The State made a commitment to jurisdictions like ours through implementation of a mitigation payment program, and it is crucial that this program be fully funded in the 2015-2017 Budget. DISCUSSION The proposed resolution urges the Governor and the Legislature to preserve the full SST mitigation distribution in the 2015-2017 Budget. RECOMMENDATION The Committee is asked to approve the draft resolution and forward it to the November 17, 2014 Regular Consent Agenda. ATTACHMENTS Draft resolution 57 58 City of Tukwila Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, URGING GOVERNOR INSLEE AND THE LEGISLATURE OF THE STATE OF WASHINGTON TO PRESERVE THE STREAMLINED SALES TAX MITIGATION DISTRIBUTION IN THE 2015-2017 BUDGET. WHEREAS, in 2007 the State of Washington entered into the Streamlined Sales Tax (SST) Compact that changed the credit for local sales taxes from point of origin to point of destination; and WHEREAS, this change to sales tax sourcing had significant negative fiscal impact on numerous local jurisdictions in Washington, including the City of Tukwila, whose taxing structures are highly dependent on sales tax receipts; and WHEREAS, in 2007 the State of Washington committed to easing this impact to jurisdictions through implementation of the SST mitigation program; and WHEREAS, the City of Tukwila is home to regionally vital warehousing, manufacturing, and retail complexes and expends significant resources toward the infrastructure and services necessitated by these enterprises; and WHEREAS, the City of Tukwila's sales tax revenues have been significantly impacted by SST implementation and the City relies upon the ongoing commitment of SST mitigation payments toward the provision of essential services and infrastructure; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The City Council urges Governor Ins lee to retain streamlined sales tax mitigation payments to local jurisdictions at current levels in his proposed 2015-2017 Budget, and further urges the Legislature of the State of Washington to adopt said SST mitigation payments. W:\Word Processing\Resolutions\Streamlined sales tax mitigation distribution 11-12-14 LH:bjs Page 1 of 2 59 60 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, a a Regular Meeting thereof this day of , 2014. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk De'Sean Quinn, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel Turpin, City Attorney W:\Word Processing\Resolutions\Streamlined sales tax mitigation distribution 11-12-14 LH:bjs Page 2 of 2 Finance & Safety Committee Minutes November 4, 2014 - Page 2 C. Resolution: Streamlined Sales Tax Mitigation Staff is seeking Council approval of a resolution urging Governor Inslee and the Washington State Legislature to preserve full streamlined sales tax mitigation in the 2015 -2017 budget. Councilmember Hougardy mentioned that she would be speaking on this topic before legislators at a forthcoming joint legislative meeting of Soundside Alliance and Highline Forum. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 17, 2014 REGULAR CONSENT AGENDA. D. Ordinances: Property Tax Levy Staff is seeking Council approval of two ordinances: one that would increase the City's Regular Property Tax Levy from 2014, and one that would levy General Taxes. These ordinances are presented to the Council on an annual basis. According to the King County Assessor, the projected assessed value for Tukwila is $5,017,106,101.00. The allowable levy projected by King County is $14,293,219.00, representing the maximum 1% increase allowed by law. This is subject to change until the final rate is determined by the County. A levy amount of $14,600,000.00 is proposed in the draft ordinance and may be adjusted based on that determination. A public hearing is scheduled for November 10, 2014. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 10, 2014 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION. E. Budget Legislation 1) Staff is seeking Council approval of an ordinance to amend the 2013 -2014 Biennial Budget. Staff provided an overview of the proposed changes, including new proposals for software and technology, annual funding for the LEOFFI Retiree Healthcare Plan, unreimbursed firefighter Oso deployment, previous Council approvals, retail sales tax revenue, revenue backed expenditures, and budget transfers across departments. A public hearing is scheduled for November 10, 2014. 2) Staff is seeking Council approval of a resolution to adopt the 2015 -2020 Financial Planning Model and Capital Improvement Program (CIP). 3) Staff is seeking Council approval of a resolution to adopt the 2015 -2016 Biennial Budget. Council review of the Capital Improvement Program and proposed Biennial Budget occurred during the October 13, 2014 Committee of the Whole and three subsequent work sessions. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 10, 2014 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION. F. Interlocal Agreement: Animal Services Staff is seeking Council approval for the Mayor to sign a non - binding Indication of Interest to extend the current Regional Animal Services interlocal agreement for two years, ending December 31, 2017. This agreement covers animal services for unincorporated King County and 25 contract cities, and the current term ends December 31, 2015. All contract cities must support the extension for it to take effect, or a new contract must be negotiated. If the extension is approved, a new contract will be negotiated following December 31, 2017. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 10, 2014 COMMITTEE OF THE WHOLE. 61