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HomeMy WebLinkAboutORD 5354CITY OF RENTON,WASHINGTON ORDINANCE NO.5354 AN ORDINANCE OF THE CITY OF RENTON,WASHINGTON, SETTING THE THRESHOLD AND TAX RATES IN ACCORDANCE WITH RCW 82.14.415 WITH RESPECT TO THE BENSON HILL ANNEXATION. WHEREAS,effective March 1,2008,the City of Renton will annex the Benson Hill annexation area with an anticipated population of over 10,000 people but under 20,000 people; and WHEREAS,on December 10,2007,the City Council adopted Ordinance 5325 approving the City of Renton's 2008 Annual Budget;and WHEREAS,the adopted budget included General Government operational costs necessary to provide service to the area known as the Benson Hill annexation in the amount of $10,762,913;and WHEREAS,additional costs to provide city level of service to the annexed area will result in total costs of at least $11,610,453;and WHEREAS,revenue anticipated to be generated from activity within the annexation area is estimated to be $8,519,409;and WHEREAS,the City has an estimated 2009 budget for annexation related to expenses; and WHEREAS,the state operates on a different fiscal year than the City;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 of the annexed area;and 1 ORDINANCE NO.5354 WHEREAS,blending the 2008 and 2009 annexation related expenses,so as to coincide with the state budget,results in an estimated shortfall of $2,823,057;and WHEREAS,the maximum sate tax assistance for an annexation of between 10,000 and 20,000 people is .1 %of the sales tax and for over 20,000 people the assistance is .2%of the sales tax; WHEREAS,the 2008 estimated sales tax in the City,per the City budget is $21,568,023 and the estimated sales tax from the annexation is $921,131 for an estimated sales tax assistance total at .1 %for the City and the annexed area of $2,645,783;and NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON,DOES ORDAIN AS FOLLOWS: SECTION I.Pursuant to RCW 82.14.415 the City Council determines that the anticipated revenues from the Benson Hill annexed area are estimated to be $8,519,409 which result in a threshold difference in the initial blended year of annexation to serve the area in the amount of $2,823,057 and that a tax rate of .1 %should be imposed to assist the City in providing services to the area within the annexation. SECTION II. (5)days after publication. This ordinance shall be effective upon its passage,approval,and five PASSED BY THE CITY COUNCIL this 25th day of February Bonnie I.Walton,City Clerk 2 ,2008. ORDINANCE NO.5354 APPROVED BY THE MAYOR this 25th day of February ,2008. ~_--law__ Denis Law,Mayor d:ppr d as to form: ~-..&tI.'~G......_..c ~ Lawrence J.Warren,City Attorney Date of Publication:3/1/2008 (summary) ORD.1441 :2/5/08:scr 3