HomeMy WebLinkAbout07/19/2011 16 Yakima Revenue Development Area Capital Fund Creation BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. Jf
For Meeting Of 7/19/11
ITEM TITLE: Consideration of an Ordinance creating the Yakima Revenue Development Area
Capital Fund.
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson, Deputy Director of Accounting and
Budgeting — 575 -6070
SUMMARY EXPLANATION:
The Yakima Revenue Development Area (YRDA) consisting of the former Boise
Cascade/Yakima Resources sawmill and plywood plant and surrounding areas was established
to utilize the Washington State Local Infrastructure financing tool (LIFT) program. The LIFT
program authorizes the City of Yakima to use state sales and excise tax revenue to finance
public infrastructure needed to accelerate redevelopment of the former sawmill site. This is not a
tax increase. The sales tax is credited against the state share. At their April 19, 2011 meeting,
the City Council selected the maximum tax rate of .0915% to be imposed beginning July 1,
2011, which would start to be received by the City in September. The program also has a
property tax component, tied to an increase in new construction assessment within the area
boundaries.
Since the City will soon have new revenues with specific legal restrictions and reporting
requirements, it is appropriate to establish a new capital fund to account for the financial activity
for the YRDA. The proposed new fund would be Fund 323 - Yakima Revenue Development Area
and would be authorized by the attached ordinance. When the new program revenue and
expenses are quantified, Finance will be proposing an appropriation ordinance to "populate" this
new fund. •
Resolution Ordinance 1 Other (Specify)
Contract Mail to (name and address):
Phone:
Funding Source Local Infrastructure Financing Tool (LIFT) Sales and Property Taxes
APPROVED FOR SUBMITTAL: City Manager
STAFF RECOMMENDATION: Pass Ordinance establishing the new fund.
BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
COUNCIL ACTION:
411
® ORDINANCE NO: 2011
AN ORDINANCE relating to funds and accounts; creating Yakima Revenue Development
Area (YRDA) Fund; designating the sources of revenue and permissible
expenditures from such fund; and enacting Chapter 3.121 "Yakima
Revenue Development Area (YRDA) Fund" as a new Chapter and
Sections 3.121.010, 3.121.020 and 3.121.030 as new sections of the City
of Yakima Municipal Code.
WHEREAS, the City of Yakima, by Ordinance 2011 -17, imposed the Local Sales and
Use tax to be credited against the State Sales and Use tax for purposes of utilizing Local
Infrastructure Financing in the Yakima Revenue Development Area pursuant to RCW 39.102;
and
WHEREAS, pursuant to RCW 39.102 the City of Yakima, by ordinance 2008 -28 adopted
on June 10, 2008, created the Yakima Revenue Development Area ( "RDA ") for the purpose of
financing public improvements located within the RDA; and
WHEREAS, THE City submitted its application for use of Local Infrastructure Financing
pursuant to RCW 39.102 on June 30, 2008, and the Community Economic Revitalization Board
( "CERB ") approved such application on September 23, 2008 granting a project award of up to $1
million in annual taxing authority for up to 25 years; and
NOW, THEREFORE, THE CITY OF YAKIMA DOES ORDAIN:
® SECTION 1. Chapter 3.121 "Yakima Revenue Development Area (YRDA) Capital
Fund" 3.121.010, 3.121.020 and 3.121.030 thereof are hereby enacted as a new chapter and
new sections of the City of Yakima Municipal Code to read as follows:
Chapter 3.121
Yakima Revenue Development Area (YRDA) Capital Fund
Sections:
3.121.010 Fund created - Purposes
3.121.020 Source of Funds
3.121.030 Expenditures
3.121.010 Fund created -.Purposes. There is created a capital fund to be known as the
"Yakima Revenue Development Area (YRDA) The money in this fund shall be expended to
pay for debt service and other costs for the development of the Yakima Revenue Development
Area. (Ord. 2008 -28 1 (part), 2008).
3.121.020 Sources of Funds. Money to be deposited in the Yakima Revenue Development
Area Fund shall be derived from sales and use tax per RCW 82.14.475, Sales and use tax for
the infrastructure financing tool; local property tax allocation per Chapter 39.102 RCW and
other sources of available funds as may be authorized by the City Council.
3.121.030 Expenditures: Expenditures from the Yakima Revenue Development Area fund .
shall be made only for the eligible public improvements in accordance with RCW 39.102 Local
Infra structure Financing Tool.
SECTION 2.This ordinance shall be in full force and effect thirty (30) days after its
passage, approval and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 19 day of July, 2011.
Micah Cawley, Mayor
ATTEST:
City Clerk
First Reading:
Publication Date:
Effective Date:
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