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Home My WebLink AboutCOW 2017-11-27 Item 4C - Public Safety Plan - Ordinance Relating to Use of REET (Real Estate Excise Tax) FundsCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by ,yors review CounciI review 11/27/17 RB ❑ Resolution Mtg Date D LAI_ 12/04/17 RB ❑, Other Mtg Date SPONSOR ❑Council ►Mayor M HR DCD ❑Finance ❑Fire ❑TS ❑P&R ❑Police ❑Piv ❑Court SPONSOR'S The Council is being asked to adopt the proposed ordinance amending the City's Code SUMMARY regarding allocaton of REET 1 funds. REVIE\ 11) BY C.O.W. Mtg. ® CDN Comm C Finance Comm. ❑ Public Safety Comm. Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/13/17 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONsoR/ADMIN. COMINIf171 Mayor's Office 1 Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPI'',NDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: ITEM INFORMATION ITEM No. 4.C. 65 STAFF SPONSOR: RACHEL BIANCHI ORIGINAL AGENDA D.vTr: 11/27/17 AGENDA frim TITLE An ordinance amending the Tukwila Municipal Code to allow the allocation of REET 1 funds for the Public Safety Plan. C:AT1?GORY ® Discussion Nltg Date 11/27/17 E Motion b1tg Date ❑ Resolution Mtg Date .1 Ordinance Mtg Date 12/04/17 ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑, Other Mtg Date SPONSOR ❑Council ►Mayor M HR DCD ❑Finance ❑Fire ❑TS ❑P&R ❑Police ❑Piv ❑Court SPONSOR'S The Council is being asked to adopt the proposed ordinance amending the City's Code SUMMARY regarding allocaton of REET 1 funds. REVIE\ 11) BY C.O.W. Mtg. ® CDN Comm C Finance Comm. ❑ Public Safety Comm. Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/13/17 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONsoR/ADMIN. COMINIf171 Mayor's Office 1 Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPI'',NDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/27/17 MTG. DATE ATTACHMENTS 11/27/17 Informational Memorandum dated 11/6/17 Ordinance Minutes from the CDN Committee of 11/13/17 12/4/17 65 66 41'�JILA'hq� City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Rachel Bianchi CC: Mayor Ekberg DATE: November 6, 2017 SUBJECT: Modifications to City's Real Estate Excise Tax 1 Allocation ISSUE The Tukwila Municipal Code currently restricts Real Estate Excise Tax (REET) 1 funds allocation to the Land Acquisition, Rec and Park Development Fund 301. Staff would like to amend the code to include Public Safety Plan land acquisition. BACKGROUND Washington State law allows cities and other jurisdictions collecting REET 1 to spend these funds on capital projects, defined in RCW 82.46.010 as: "those public works projects of a local government for planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, or improvement of streets; roads; highways; sidewalks; street and road lighting systems; traffic signals; bridges; domestic water systems; storm and sanitary sewer systems; parks; recreational facilities; law enforcement facilities; fire protection facilities; trails; libraries; administrative facilities, judicial facilities, river flood control projects..." In 2015, the state legislature amended the law to also allow jurisdictions to use REET 1 funds for maintenance of capital projects. Jurisdictions may use the greater of $100,000 or 25% of available funds, but not to exceed $1 million per year for such activities. In 1996, the City restricted the allocation of REET 1 funding solely land acquisition and park development. Since 2014, REET has come in more than double the amount budgeted. This year is continuing this trend, with REET 1 receiving $873,000 to date with $400,000 budgeted. Due to REET accumulation at an unexpected rate, the Land Acquisition, Rec and Park Development Fund 301 has in excess of $3.5 million available today. As the City works to implement the Public Safety Plan, and with the realities of cost escalation in this heated development market, the City could choose to use REET 1 funds to develop the City's Public Safety facilities. By doing so, the City has additional funding sources to achieve our Public Safety Plan goals. The attached ordinance amends the Tukwila Municipal Code to include the Public Safety Plan Fund (305), which includes the Justice Center and three fire stations and the City Facilities Fund, which covers the combined City Shops facility. RECOMMENDATION Staff recommends that the Council pass the attached ordinance amending the Tukwila Municipal Code to include the ability to allocate REET 1 funds to the Public Safety Plan. Staff does not recommend using REET 1 for any maintenance needs. ATTACHMENTS Draft ordinance 67 68 SWO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1674; AMENDING ORDINANCE NO. 1400 §4, AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.56.040, TO UPDATE REGULATIONS REGARDING DISTRIBUTION OF REAL ESTATE EXCISE TAX; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila imposes an excise tax on each sale of real property within the City limits at a rate of one-quarter (1/4) of one percent of the selling price pursuant to Chapters 82.45 and 82.46 RCW and WAC Chapter 458-61A; and WHEREAS, per RCW 82.46.010, cities may use REET1 on capital projects specified in the Capital Facilities Plan Element of their Comprehensive Plan; and WHEREAS, the City has identified additional funding requirements relating to the Public Safety Plan projects; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 3.56.040 Amended. Ordinance No. 1400 §4, as codified at Tukwila Municipal Code Section 3.56.040, "Distribution of Tax Proceeds and Limiting the Use Thereof," is hereby amended to read as follows: 3.56.040 Distribution of Tax Proceeds and Limiting the Use Thereof A. The County treasurer shall place 1`)/0 of the proceeds of the taxes imposed in this chapter in the County current expense fund to defray costs of collection. B. The remaining proceeds from City taxes imposed herein shall be distributed to the City on a monthly basis, and shall be placed by the Finance Director in the Land Acquisition, Recreation and Park Development Fund (301); the Public Safety Plan Fund (305); or the City Facilities Fund (306), for use in conjunction with any project within this these funds. W: Word Processing\REET-Distribution of funds 11-7-17 LH:bjs Page 1 of 2 69 C. This section shall not limit the existing authority of this City to impose special assessments on property benefited thereby in the manner prescribed by law. D. The City Council shall review the distribution of the tax proceeds three years from the date of the passage of this chapter. Section 2. Repealer. Ordinance No. 1674 is hereby repealed. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2017. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney W: Word Processing\REET-Distribution of funds 11-7-17 LH:bjs 70 Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 City of Tukwila City Council Community Development & Neighborhoods Committee COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE Meeting Minutes November 13, 2017 - 5:30 p. m. - Hazelnut Conference Room, City Hall Councilmembers: Staff: Guest: Kathy Hougardy, Chair, Verna Seal, Kate Kruller David Cline, Nora Gierloff, Rick Still, Stacy Hansen, Rachel Bianchi, Jay Wittwer, Laurel Humphrey Carrie Holmes, Sheils Obletz Johnsen CALL TO ORDER: Chair Hougardy called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Resolution: 2017 Legislative Agenda Staff is seeking Council approval of a resolution that would adopt a legislative agenda for use during the 2018 Washington State Legislative Session. The agenda includes items in the categories of Transportation & Infrastructure, Housing & Human Services, Shared Revenue, Revenue Reform, Streamlined Sales Tax Mitigation, Education, Law Enforcement, and Lodging Tax Flexibility. The City's state lobbyist, Jennifer Ziegler, will attend the November 20 Council meeting to present a legislative session preview. The draft agenda was also reviewed by the Public Safety Committee. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2017 COMMITTEE OF THE WHOLE. B. Ordinance: Real Estate Excise Funds Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code 3.56.050 to include the Public Safety Plan and City Facilities Funds as possibilities for distribution of Real Estate Excise Tax (REET1) collections. State law allows cities to spend REET 1 funds on capital projects, and staff recommends incorporating this flexibility into the code to provide an additional funding source to achieve the goals of the Public Safety Plan considering the realities of market cost escalation. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 27, 2017 COMMITTEE OF THE WHOLE. C. Update on Fire Station 51 Design Staff presented the Committee with the initial drawings of the design of Fire Station 51 as a preview before the public Open House on December 2, 10:00 a.m. -12 noon at Valley View Sewer District building. The architects are currently finishing up schematic design of the building and will next work with an estimator to price out the design. The design is in alignment with the program direction received from the Council earlier this year, including covered parking/storage areas that could meet the needs of future expansion. Committee members expressed concern about the limited public parking. Because this design does not fully 71