HomeMy WebLinkAboutRES 2761 L .
CITY OF RENTON, WASHINGTON
RESOLUTION NO. 2761
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON,
RELATING TO THE INVESTMENT OF CITY PROPERTY TAX
RECEIPTS IN CUSTODY OF THE COUNTY FINANCE MANAGER.
WHEREAS, as required by state law, the King County Finance
Manager collects property taxes for and on behalf of the City of
Renton; and
WHEREAS, RCW 36.29 . 020 provides that the Renton City Council
may authorize and direct the King County Finance manager to invest
property tax receipts which are collected prior to the disbursement
of such receipts to the city; and
WHEREAS, the King County Finance Manager has proposed the
automatic investment of city tax receipts in a manner set forth in a
letter dated April 21, 1989, a copy of which is attached as Exhibit
A, and to make a lump sum payment retroactive to October 24, 1988;
and
WHEREAS, it is in the best interest of the citizens of the City
of Renton that city tax receipts in the custody of the King County
Finance Manager be invested in the manner he has proposed,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON,
WASHINGTON, DO RESOLVE AS FOLLOWS:
SECTION I. The above recitals are hereby found to be true and
correct.
SECTION I1. The King County Finance Manager is authorized and
directed to invest tax receipts in the manner proposed in the letter
dated April 21, 1989, a copy of which is attached as Exhibit A.
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T RESOLUTION NO. 2761
SECTION III. The City of Renton shall accept a lump sum
payment calculated according to the system proposed by the King
County Finance Manger, retroactive to October 24, 1988, in complete
satisfaction for all past claims for earnings on city tax receipts.
SECTION IV. The City of Renton agrees to hold King County,
its Finance Manager, and other officers and employees harmless from
any claims for damages or loss of funds resulting from investments
made in accordance with the system proposed by the King County
Finance Manager.
PASSED BY THE CITY COUNCIL this 19th day of June , 1989 •
Maxine E. Motor, City Clerk
APPROVED BY THE MAYOR this 19th da of June , 1989 .
Earl Clymer, May
Appro as to orm:
Lawrence J. Wa ren, City Attorney
Res.56:5-24-89 :as.
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RESOLUTION N0. 2761
EXHIBIT "A" Af=t, 2.1
Cr i
King County
Finance Division FINAN,,: cT•
Off ice of
Financial Management
6W King County Administration Building
soo Fourth Avenue
Seattle,Washington 98104
April 21, 1989
FINANCE MANAGER
City of Renton
200 Mill Ave. S.
Renton, WA 98055
Dear City Finance Officer:
As you may know, the State Court of Appeals issued a decision last fall
regarding interest earnings on property tax receipts. That case,
Seattle, et al vs. King County, et al , has now become final . The general effect
of this decision is that cities now have the right to earn interest on taxes
collected for them by the County up to the date the taxes are disbursed. The
purpose of this letter is to explain the way in which we intend to implement
this decision.
1. Automatic Investment Earnings - In order to realize the greatest overall
return and to minimize administrative burdens for all of us, we will combine
all city tax receipts for investment with other residual County cash. We
will then provide an automatic prorata distribution of the earnings to each
fund at month end. In addition to increasing our mutual investment power,
this will eliminate the need for you to give, and for us to receive,
individualized investment directions.
The formula by which earnings will be prorated is complex, but fair. It
duplicates the formula agreed to between Seattle and the County for purposes
of the litigation (see enclosure) . You should contact Garry Holmes of this
office at 296-7333 if you would like a detailed explanation of the formula.
2. Investment Service Fee - The County will charge and deduct an investment
service fee or a 1 investments made pursuant to this letter as provided in •
RCW 36.29.020. This fee is 5 percent of the earnings up to a maximum fee of
$50 per year for each transaction for each city. For purposes of computing
the fee, all collections, deposits and investments for each city on a given
day will be considered a single transaction.
3. Retroactive Earnin s - Subject to and upon receipt of appropriation
authority from the Tounty Council , we will make a lump sum retroactive
payment to all cities which have elected to participate in this system. The
payment will represent the earnings which would have accrued under the
formula between October 24, 1988 (the date of the court decision), and the
date the new automatic system is fully implemented. Retroactive payments
will be made only to those cities from which a resolution as described below
has been received.
City Finance Officer
April 21, 1989
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4. Resolutions - Each city wishing to participate in the system described above
must adopt a resolution which:
1. References and adopts the terms of this letter,
2. Directs investment according to the terms of the letter,
3. Accepts the lump sum payment in satisfaction of all claims for earnings
on tax receipts.
4. Expressly holds the County harmless ro pursuant to tdamagetor loss of funds
resulting from investments made
I have enclosed a draft resolution for reviouslyconsideration
resolutionscontains
whichthe do
elements required. Cities which have p
not contain the above elements must submit either a new or an amended resolution
containing the required elements.
The effective date for beginning the interest earnings calculation will be
October 24, 1988 for those cities from thrcJune 30,we e1989eived a will beresolution by
effective on
June 30, 1989. Resolutions received of e
the date received. although I
I believe the system described above will work smoothly and f aiIy
If you have any
anticipate there will be some.period of adjustment
sScott Matheson, Cash
questions on how the system wll operate, p
Management Supervisor, at 296-7326.
, at 296-7310 or me
Sincerely,
D. Lee Dedrick
Finance Manager
DLD:j a
Enclosures
RESOLUTION NO. 2761
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