HomeMy WebLinkAboutR-1998-138 Joint ResolutionCITY OF YAKIMA RESOLUTION NO. R-98- 138
YAKIMA COUNTY RESOLUTION NO. 479-1998
Resolution expressing support for "Referendum Bill 49 - Shall
motor vehicle taxes be reduced and state revenues reallocated;
$L9 billion in bonds for state and local highways approved; and
spending limits modified?"
A JOINT RESOLUTION OF THE CITY OF YAKIMA AND YAKIMA
COUNTY expressing support for Referendum 49, a statewide ballot
measure that would provide a $30 dollar per vehicle motor vehicle
excise tax ("MVET") credit; fund significant state and local highway
improvements through motor vehicle excise taxes and general
obligation bonds; increase city and county criminal justice funding;
increase MVET distribution to municipal sales and use tax
equalization account; allow the City of Yakima to use general
sales/use tax revenues as a match for local transit agency MVET
revenues; transfer certain moneys from the state general fund to the
Community Economic Revitalization Board; and provide new funding
to distressed counties.
WHEREAS, the Washington State Legislature approved that certain
legislation ("Referendum 49") be submitted to the voters in the fall of
1998 for their approval or rejection; and
WHEREAS, Referendum 49 transfers MVET revenues from the state
general fund into the motor vehicle fund to fund transportation
improvements; and
WHEREAS, Referendum 49 provides a $30 dollar per vehicle MVET tax
credit; and
WHEREAS, Referendum 49 modifies the MVET depreciation schedule,
reducing the value of vehicles during the 2nd and 3rd year of
ownership; and
WHEREAS, Referendum 49 reduces the MVET portion dedicated to county
and city criminal justice accounts, but provides new criminal justice
funding from the state general fund that would increase annually
based on population growth and inflation; and
WHEREAS, Referendum 49 increases the MVET distribution to the
municipal sales and use tax equalization account; and
WHEREAS , Referendum 49 authorizes cities with populations over 60,000
that own and operate municipal public transportation systems as of
January 1, 1998 (Yakima and Everett) to use general sales/use tax
revenues as a match for local transit agency MVET revenues which
will result in an estimated $1.3 million in revenue for the City's
Transit system annually beginning in 2001; and
WHEREAS , Referendum 49 transfers moneys in excess of those needed to
fund county sales tax equalization from the state general fund to the
Community Economic Revitalization Board and half of this amount
would be dedicated to a distressed counties public facility account;
and
WHEREAS, Referendum 49 provides new funding to distressed counties
(counties in which the unemployment for the preceding three years
exceeds the statewide average by 20%) which would result in an
estimated $2 million annually coming to Yakima County beginning in
2000; and
WHEREAS, Referendum 49 authorizes $1.9 billion dollars in general
obligation bonds for the location, design, right-of-way, and
construction of state and local highway improvements;
WHEREAS, provides $2A billion dollars for expenditure over the next 25
years for state highway improvements, freight mobility projects,
local criminal justice funding, and sales tax equalization for smaller
cities;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF YAKIMA:
Referendum 49 is hereby endorsed and the citizens of the City of
Yakima and Yakima County are urged to vote in favor of Referendum
49 in the November general election on the basis that it would
provide a $30 dollar per vehicle motor vehicle excise tax (MVET)
credit; fund significant state and local highway improvements
through motor vehicle excise taxes and general obligation bonds;
increase city and county criminal justice funding; increase MVET
distribution to municipal sales anduse tax equalization account;
allow the City of Yakima to use general sales/use tax revenues as a
match for local transit agency MVET revenues; transfer certain
moneys from the state general fund to the Community Economic
Revitalization Board; and provide new funding to distressed counties..
ADOPTED BY THE CITY COUNCIL this 6th day of October, 1998.
ohn Puccinelli, Mayor
ATTEST:
Karen Roberts, City Clerk
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF YAKIMA
COUNTY COMMISSIONERS:
Referendum 49 is hereby endorsed and the citizens of the City of
Yakima and Yakima County are urged to vote in favor of Referendum
49 in the November general election on the basis that it would
provide a $30 dollar per vehicle motor vehicle excise tax (MVET)
credit; fund significant state and local highway improvements
through motor vehicle excise taxes and general obligation bonds;
increase city and county criminal justice funding; increase MVET
distribution to municipal sales and use tax equalization account;
allow the City of Yakima to use general sales/use tax revenues as a
match for local transit agency MVET revenues; transfer certain
moneys from the state general fund to the Community Economic
Revitalization Board; and provide new funding to distressed counties..
ADOPTED BY THE BOARD OF YAKIMA COUNTY COMMISSIONERS this
6th day of October, 1998.
BETTIE INGHAM
Chair
rWILLIAM H. FLOWER _is��'°U^!rc�
Commissioner P•18("'
. y
ATTEST.
a H. Hinojosa, Clerk
the Board
ASSOCIATION OF WASHINGTON CITIES
transportation
Provisions of
Referendum 49
Referendum 49 is part of a transportation
financing plan passed by the 1998 Legislature that
would allow the expenditure of $2.4 billion on
transportation projects. The Referendum will be
on the November 1998 ballot.
Sumrnary of
Major Provisions
Vehicle Tax Cut
$30 per vehicle tax credit against the Motor Vehicle Excise Tax
(MVET) and revision of the depreciation schedule to reduce the
value of cars for tax purposes in the 2nd and 3`d years.
Revenue Transfer to Transportation
Transfer additional MVET revenues to the Motor Vehicle Fund
(MVF) for transportation purposes. This revenue would otherwise
flow to the State General Fund.
Support for Local Governments -
Increase total funding for city and county criminal justice accounts
and for municipal sales and use tax equalization account. Partially
switch the funding source for local criminal justice accounts from
MVET to the State General Fund. Allow certain cities that own and
operate public transportation systems to use general sales/use tax
revenues as a match for transit MVET revenues. Provide new
funding for distressed counties and increase funding to Community
Economic Revitalization Board.
Reduction to General Fund
The combined effect of the above measures would reduce State
General Fund Revenues and thus reduce the amount of money the
state can borrow to fund capital construction projects because the
state debt limit cannot exceed 7 percent of specified general fund
revenues.
Re-enact Initiative 601
Permits the MVET transfer for transportation and the State General
Fund distribution for local criminal justice without a downward
adjustment of the state's expenditure limit.
2 - Association of Washington Cities
Q. How does Referendum
49 relate to the $2.4 billion
transportation financing
package?
A. Referendum 49 is a large
component of the $2.4 billion
package. The Referendum will
produce a revenue stream for
transportation purposes of
approximately $1.81 billion
over the next 25 years. The
remaining $0.61 billion of the
$2.4 billion package comes
from three revenue sources
identified by the Legislature.
These are:
1) Transferring the costs of
certain state activities out of
the Motor Vehicle Fund,
2) Changes in fuel tax
collection which will result in
increased fuel tax revenues and
3) Cost savings from
efficiencies and policy changes
at the Department of
Transportation.
Q. How does the bonding
provision of Referendum 49
work?
A. Referendum 49 authorizes
the state to issue $1.9 billion
in bonds for transportation
'Net present value.
Q&A
purposes to be paid off over 25
years. The bonds will be paid
off with gas tax money, which
will be "backfilled" with
revenue from the Referendum
and the larger transportation
financing package.
Issuing bonds with the revenue
generated by the Referendum
allows the state to get the
transportation projects
underway as soon as possible.
However, this also means that
there will be no additional
revenue available from the
Referendum for transportation
projects until the bonds are
paid off in the year 2023.
Q. What will the new
transportation revenue be
spent on?
A. Referendum 49 is a
revenue proposal, not a
spending plan. If the
Referendum is passed in
November, the Legislature will
determine how to spend most
of the money in the 1999
session during the budget
process.
There were several projects,
totaling $44.2 million,
included in the 1998
supplemental transportation
budget that are contingent on
the passage of Referendum 49.
These projects will be funded
immediately if the Referendum
passes.
Q. Is there already a
"list" of projects that will
be funded if the Referen-
dum passes?
A. As mentioned above,
Referendum 49 does not
include any provisions for
spending the new transpor-
tation revenue. That said, two
slightly different proposals
(lists) for spending the $2.4
billion in new transportation
revenues were presented
during the 1998 legislative
session by the House and
Senate Transportation
Committees. These proposals
included lists of state highway
projects that the committees
wanted to fund. The
Legislature will have the ability
to modify the proposed
spending plans in 1999.
The graph on the following
page shows the components of
the House Transportation
proposal.
... continued
September 1998 - 3
Proposed House Transportation Spending Plan
(S n Millions)
Highway Safety and
Bridge ($14u)
State Freight
Mobility (5216)
Econoaaic
Development ($99)"
Flood Mitigation/
Fish Passage (S32)
Ferries Capital
Program (S200)
Highway
Congestion Relief
(51,265)
Local Governments
(5370)
Passenger/Freight
Rail Capital (597)
$55 - CRAB
$35-T1B
$200 - Freight
Mohairy
540 - County
Preservation
540 - Cities
Q. What will cities get for
transportation if the
Referendum passes?
A. The only projects that are
guaranteed funding if the
Referendum passes are those
included in the $44.2 million
'that was part of the 1998
supplemental transportation
budget. The remainder of the
money will be allocated based
on a spending plan that must
be adopted by the 1999
Legislature through the
transportation budget process.
IF the spending plan mirrors
the 1998 House Transportation
Policy and Budget Committee
proposal represented above,
over the next 25 years, cities
over 5,000 would receive $28
million in direct distributions
and small cities would receive
$12 million through the
Transportation Improvement
Board (TIB) small cities
program.
Cities would also be able to
compete for $35 million from
the TIB and $200 million in
local freight mobility funds.
The freight mobility funds
could be used for road/rail
grade separation projects and
other transportation projects
that help improve freight
mobility along strategic
corridors.
Need more info?
For additional information
regarding Referendum 49,
contact Diane Carlson or Faith
Trimble of AWC at (360) 753-
4137, or e-mail: diane.carlsonL
awc.gen.wa.us or faith.trimble
@awc.gen.wa.us.
Association of Washington Cities
1076 Franklin Sheet SE
Olympia, WA 98501
I I 11 I1!I I „i 11
BULK MAIL
US. POSTAGE
PAID
PERMIT NO. 201
OLYMPIA, WA
At—
June 1998
Motor Vehicle Excise Tax
Summary: Referendum 49
Referendum 49 is part of a transportation financing plan passed by the 1998 Legislature that would allow the expenditure of
$2.4 billion over the next 25 years on transportation projects. The referendum will be on the November 1998 ballot. The major
provisions of the referendum would:
• Provide a $30 per vehicle MVET tax credit;
• Modify the MVET depreciation schedule, reducing
the value of cars the 2nd and 3rd year of ownership;
• Transfer MVET revenues from the state general fund
into the motor vehicle fund to fund transportation
improvements.
• Reduce the MVET portion dedicated to the county
and city criminal justice accounts, but provide new
criminal justice funding from the state general fund.
The general fund contribution would increase
annually based on population growth and inflation.
The inflationary cap on the remaining MVET local
criminal justice portion would be removed.
The credit and schedule modification would cut MVET
revenues to the state by $257 million in the1999-01
biennium.
441 5156 million would be transferred from the state general
fund to the motor vehicle fund in the 1999-01 biennium.
44.1 This change would result in a net increase to city and
county criminal justice funding. Expected to add about $4
million to the city criminal justice account in FY 2000.
This change would have fully funded equalization cities in
• Increase MVET distribution to the municipal sales *11998. Expected to add about $4 million to the city
and use tax equalization account. equalization account in FY 2000.
• Authorize cities over 60,000 that own and operate
municipal public transportation systems as of
January 1, 1998 to use general sales/use tax revenues
as a match for local transit agency MVET revenues.
This would be phased -in over a four-year period.
• Transfer moneys in excess of those needed to fund
county sales tax equalization from the state general
fund to the Community Economic Revitalization
Board (CERB). Half of this amount would be
dedicated to a distressed counties public facility
account to provide financial assistance for
extraordinary costs due to the location or expansion of
major new business facilities.
Everett and Yakima would qualify. This provision would
make them co -equal with other municipal transportation
systems in the ability to provide a local match.
44-1 CERB makes competitive grants and loans to political
subdivisions for public facilities, which includes cities.
• Provide new funding to distressed counties. About $10 million would be dedicated to distressed
Distressed counties are those in which average counties in FY 2000. Cities would not receive funds from
unemployment for the preceding three years exceeds this distribution.
the statewide average by 20%.
• Re-enact Initiative 601 to permit the MVET transfer
for transportation and the general fund distribution for
local criminal justice without a downward adjustment
on the state's expenditure limit; and permit
reimbursement to local governments for state
mandates through a transfer of state revenue, in
addition to a specific appropriation.
• Authorize up to $1 9 billion in general obligation
bonds for the location, design, right of way, and
construction of state and local highway
improvements.
Note: MVET distributions for city public safety (per capita distribution for
police and fire) and county public health purposes remain relatively neutral.
Ref 49 & General Fund Distribution
FY 2000 - 5759.3 million
in millions
Ferries
S95.3 (13%)
Canoes-
MVETand cF
596.8 (t3%)
Administration " Cities -
S88.2( iri.)
ities-
S88.2(irSS) MvEr and GF
S107.1 (14%)
Transportation &
Transit
5371.9 (48%)
(over)
17
City Distributions under Current Law and Referendum 49*
FY 2000 to FY 2002**
S's in millions
Public Safety
Sales Tax Equalization
Criminal Justice"'
Total
FY 2000
July 1999 - June 2000
Current Ref 49 Difference
545.6 $45.7 50.1
536.9 540.9 S4.0
517.0 520.5 S3.5
599.5 5107.1 57.6
FY 2001
July 2000 - June 2001
Current Ref 49 Difference
548.3 548.6 50.3
539.0 543.5 54.5
517.4 $21.6 54.2
5104.7 S113.7 59.0
FY 2002
July 2001 - June 2002
Current Ref 49 Difference.
550.9 551.4 50.5
S41.2 S46.0 54.8
517.8 522.8 55.0
5109.9 5120.2 S10.3
Effective July 1, 1999 (Due to 3 month lag between collection and distribution. the first .Y, VET dist-ibution under Ref 49 would be October 1999).
••Based on Dept of Licensing 3/98 forecast. Includes MVET and MVET in -lieu (state rental car tax) revenues. MRSC distibution has not
been deducted from puh'ie safety and equalization estimates.
•"Includes MVET and rate general fund dist.-ibutions.
Produced by the Association of Washington Cities, 1076 Franklin Street SE, Olympia, WA 98501 (360) 753-4137
18
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6-
-For Meeting Of 10/6/98
ITEM TITLE: Resolution expressing support for "Referendum Bill 49 - Shall
motor vehicle taxes be reduced and state revenues reallocated; $1.9 billion in
bonds for state and local highways approved; and spending limits modified?"
SUBMITTED BY: Dick Zais, City Manager
CONTACT PERSON/TELEPHONE: Dick Zais (575-6040)
SUMMARY EXPLANATION: The Washington State Legislature passed legislation
in 1998 that authorized submission of Referendum 49 to the voters in the
November general election. Major provisions of Referendum 49 provide for the
following: transfers MVET revenues from the state general fund into the motor
vehicle fund to finance transportation improvements; provides a $30 dollar per
vehicle tax credit; beginning in the year 2000, increases MVET distribution to the
municipal sales and use tax equalization account; authorizes the City of Yakima to
use general sales/use tax revenues as a match for local transit agency MVET
revenues, which will result in an estimated $1.3 million in revenue for the City's
Transit system annually beginning in 20011; provides new funding to distressed
counties, resulting in an estimated $2 million annually coming to Yakima County
beginning in 20002; and authorizes $1.9 billion dollars in general obligation bonds
for state and local highway improvements. All of these changes are positive for the
City of Yakima and Yakima County, and the attached resolution expresses support
for Referendum 49. The provisions in the Referendum, if passed, will take effect
beginning July 1, 1999.
Resolution X Ordinance _ Contract Other (Specify)
Funding Source City Information Systems Budget (Geneq Fund)
APPROVED FOR SUBMITTAL: \�\
City Manager
STAFF RECOMMENDATION: Pass the attached resolution of endorsement.
COUNCIL ACTION:
1 The City will receive some money beginning in 1999, but the full $1.3 million
allocation does not begin until 2001.
2 It is estimated that the County will receive between $800,000 and $1 million in 1999,
based on the 6 months of the year the law will be in place. Beginning in 2000, the
County is estimated to receive $2 million annually.