Ord 95-240
ORDINANCE NO.
95-240
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF FEDERAL WAY, WASHINGTON, PROVIDING FOR THE
SUBMISSION TO THE ELECTORS OF THE CITY AT A
SPECIAL ELECTION TO BE HELD ON NOVEMBER 7,
1995 OF PROPOSITIONS AUTHORIZING THE CITY TO
LEVY A UTILITY TAX FOR THE PURPOSE OF
PROVIDING FUNDS FOR TRAFFIC, STREET AND PARK
IMPROVEMENTS.
WHEREAS, the Federal Way city Council finds that it is in
the best interest of the residents of the city of Federal Way (the
"city") to construct various traffic and street improvements and
to develop Celebration Park; and
WHEREAS, State law permits cities to levy a tax on the
privilege of conducting an electrical energy, natural gas, storm
drainage, garbage, cable television, cellular phone, digital pager
or telephone business; and
WHEREAS, although it is not legally required, the City
council desires to submit to the qualified electors the questions
of whether or not the city should levy a utility tax for the
purpose of
financing,
maintaining and operating such traffic,
street and park improvements; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
section 1.
Traffic. Street and Park Imcrovements.
The
City Council hereby finds that it is in the best interests of the
residents
of
the
City
to
construct
the
traffic
and
street
improvements listed on Exhibit A to this ordinance and develop
Celebration Park as illustrated on Exhibit B to this ordinance.
ORD #
95-240
, PAGE 1
CO,py
The estimated cost of the traffic and street improvements
is $7,500,000 and the park improvements is $7,500,000.
The City
Council
shall
determine
the
exact
specifications
for
such
improvements.
If
the
City
Council
determines
that
it
is
impractical or not in the public interest or that sufficient funds
are not available to construct any portion of the improvements, the
City shall not be required to construct such portions.
If all of
the improvements so described have been constructed or found to be
impractical or not in the public interest, and proceeds from the
bonds described in section 3 remain available, the City Council
shall appoint a citizen Oversight Committee.
The Committee will
make
a
recommendation
to
apply
such
bond
proceeds
for
the
construction or acquisition of other projects to the City Council.
The City Council may then either apply the bond proceeds to repay
the bonds described in section 3 or to pay for other projects
recommended by the citizen Oversight Committee, as the city Council
shall determine.
section 2.
LeVY of utilitv Tax.
In order to finance the
construction of the improvements described in section 1 and the
costs of maintaining and operating such improvements,
the city
shall levy a tax on electric, natural gas, storm drainage, garbage,
cable television,
cellular phone,
digital pager and telephone
businesses conducted within the city at a rate to be determined by
the city Council, but not to exceed 6%.
It is the City Council's
intention that the utility tax to be
levied in
1996 will be
approximately 3.08% and will average approximately 2.9% during 1996
ORD #
Q'i-7L,n
, PAGE 2
through 2005.
It is the City Council's intention that the utility
tax will be reduced upon the full repayment of the limited tax
general obligation bonds described in section 3.
Thereafter, the
amount of the utility tax should be that amount necessary to cover
maintenance and operation of any projects constructed as described
in
section
1.
Ongoing
maintenance
and
operation
of
the
improvements is expected to require an annual tax of approximately
0.4% after 2005.
section 3.
Issuance of Bonds.
If the voters approve the
levy of the utility tax, the City council intends to issue limited
tax
general
obligation
bonds
in
the
approximate
amount
of
$15,000,000
("Bonds")
to
finance
the
construction
of
the
improvements described in section 1.
It is the City Council's
intention to use interest earnings on the Bonds to repay the Bonds,
to pay for the improvements described in Section 1, or to pay for
any other improvements, as the City Council shall determine.
The
Bonds should be repaid from the utility tax, and, if necessary, out
of regular taxes and other available revenues collected by the
city.
section
4.
Election.
An
advisory
proposition
authorizing the City to levy a utility tax to finance traffic and
street improvements and a second advisory proposition to finance
park improvements described in section 1 shall be submitted to the
qualified electors of the city at a special election to be held on
November 7,
1995.
The King County Department of Elections is
hereby requested to assume jurisdiction of and to call and conduct
ORD #
95-240
, PAGE 3
such special election and to submit to the qualified electors of
the City the propositions set forth in Exhibits C and D.
The City
Clerk is hereby directed, not less than 45 days prior to November
7, 1995, to certify the propositions set forth in Exhibits C and D
to the King county Department of Elections.
section
5.
Severabilitv.
The
provisions
of
this
ordinance are declared separate and severable.
The invalidity of
any clause, sentence, paragraph, subdivision, section, or portion
of this ordinance or the invalidity of the application thereof to
any person or circumstance, shall not affect the validity of the
remainder of the ordinance, or the validity of its application to
other persons or circumstances.
section 6.
Ratification.
Any act consistent with the
authority and prior to the effective date of this ordinance is
hereby ratified and affirmed.
section 7.
Effective Date. This ordinance shall take
effect and be in force five (5) days from and after its passage,
approval, and publication, as provided by law.
PASSED by the City Council of the City of Federal Way
this
15th
day of
August
, 1995.
CITY OF FEDERAL WAY
~~¿~
MAY, Y E. GATES
:r (]¿)~ ~
CIT CLERK, N. CHRISTINE GR EN, CMC
ORD #
95-240
, PAGE 4
APPROVED AS TO FORM:
~~. --,
CIT , K. INDELL
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO. 95-240
K:\ORDIN\UTILTAX.ELC
07-25-95
08-15-95
08-19-95
08-24-95
95-240
ORD #
95-240
, PAGE 5
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EXHIBIT A
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PUBLIC OORKS DEP~
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BCND ISSUE PROJECTS
Project Descriplio..
II SW Campu, Dr@ 61h Ave SW !nIcnccti... improvemcÐl; ligml/lca 111m
n SW 3361h Street, 211t to 261h Ave SW Wide. Crom 3 to 5...... wiIh provillool Cor bierel.. and t,ad...plng.
13 Mllituy ReI; So 2861h to So 2881h S, \nI<CICCÛo<1 improvemcnl8, road widcAiog, &ad
IncI So 3041h St signlliuti....
14 So 3 12th S~ SR99 to 231'<1 Ave So Wid.. to 5 Iancr, ,del bike ...... &ad Imdscsping; two new tra1!ie signals
IS SW 34O1h St @ 35th Ave SW SõgOl!Ô%ltio. ,ad school orouinc ülumioatio.. ,
16 S 336th St Rigbt Turn La.e @ SR 99 lSD' right IUrn lane
If7 211t Avo SW @ SW 325th St Install new trlllio signIl, lea 111m 1anc, .ad iIIumioatlo..
18 SW Dull Point Rd @ 211t Ave SW Install right turn Ia.., traffic signIl, ülumioal< ¡otç[IÇÇtlou
#9 SW Dull Poiot Rd @ 4th Avo So, 0' Install loft ..m I... .ad tram. signIl
8th Avo SW
110 S 356th St Right Turn La.. @ SR 99 ISO' right IUrn 1anc
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EXHIBIT "B"
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EXHmIT C
City of Federal Way
Traffic and Street Proposition
Utility Tax
To provide funds for acquiring, constructing and maintaining street improvements for the
purpose of reducing congestion and improving safety, including intersection improvements at the
Aquatic Center, widening several arterials, city-wide signalization and turn lane improvements,
and to make other street improvements, shall Federal Way levy a tax on utility businesses ~ the
City resulting in an average utility tax rate of approximately 1.36% during the first IO years,
as provided in Ordinance # ~ ~ .,( ji ~
EXHffiIT D
City of Federal Way
Celebration Park PropoliÍtÍon
Utility Tax
To provide funds for acquiring, constructing and maintaining improvements to
Celebration Park, an 83 acre facility, including lighted soccer and ball fields, trails and picnic
areas with Mt. Rainier views, design of a performing arts center, and other recreati~onal
improvements, shall Federal Way levy a tax on utility businesses in the City, resulting in an
average utility tax rate of approximately 1.55% during the first 10 years, as provided in
Ordinance # '1ó-d{/f"