Res 99-306
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RESOLUTION NO. 99-306
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, PROVIDING FOR THE
METHOD FOR EARLY REDEMPTION OF THE BONDS
FUNDED BY THE UTILITY TAX AND PROVIDING THAT
UTILITY TAX REVENUES WILL BE UTILIZED TO COVER
THE ACTUAL COST OF MAINTENANCE AND OPERATIONS
OF PREVIOUSL Y APPROVED CAPITAL PROJECTS.
(AMENDING RESOLUTION NO. 99-298)
WHEREAS, on December 19, 1995 the Federal City Council passed Ordinance No.
95-257 providing for a 1.37% tax upon the privilege of conducting an electrical energy, natural gas,
storm drainage, garbage, cable television, cellular and other telephone and wireless communications
services business for the purpose of construction and maintenance of certain streets and
transportation improvements; and
WHEREAS, on December 3, 1996 the Federal City Council passed Ordinance No.
96-276 providing for a 3.63% increase of the utility tax, which totaled a 5% utility tax; and
WHEREAS, the Ft:deral City Council directed City staff to apply a portion of the
revenues for the bonds authorized pursuant to Ordinance No. 97-292; and
WHEREAS, the City may redeem the bonds plus accrued interest before their
maturity on or after June 1,2007; and
WHEREAS, the revenues generated by the utility tax have exceeded the amounts
necessary for the payment on the bonds; and
WHEREAS, it is projected that an excess will be collected annually in future years;
and
Res. # 99- 3!I,6Page 1
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WHEREAS, by Resolution No. 99-298, the City Council deemed it advisable and in
the best interest of the public to provide a mechanism for retiring the bonds before their maturity date
with such excess utility tax revenue, and thereby, reducing the total amount of interest paid on the
debt; and
WHEREAS, ResolutionNo. 99-298 provides that any monies collected from utilities
taxes, which exceed the necessary amounts for the payment of the debt service on the bonds, the
design and construction and the maintenance and operation of certain capital projects, including
Celebration Park, shall remain in the Utility Tax Fund for the purpose of redeeming said bonds;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY
HEREBY RESOL YES AS FOLLOWS:
Section 1. Excess Utilitv Tax Revenues. Any monies collected from utilities taxes,
which exceed the necessary amounts for the payment of (I) all debt service on the bonds; and (2)
construction and completion of all capital projects described in Ordinances No. 97-292, 96-276 and
95-257, including the design, construction and acquisition of sports fields and other improvements
at Celebration Park; the Knutzen Family Theatre and related improvements at the Dumas Bay
Centre; a public safety facility; a Downtown Revitalization Program that includes street lights,
beautification and safety improvements and other projects in the City's downtown area; and street
and transportation projects and street overlay program ("Capital Projects"); and (3) all necessary
maintenance and operation for such Capital Projects, shall remain in the Utility Tax Fund for the
purpose of redeeming said bonds.
Section 2. Severability. If any section, sentence, clause or phrase of this resolution
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity
Res. #J9-30/i Page 2
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or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause or phrase of this resolution.
Section 3. Ratification. Any act consistent with the authority and prior to the
effective date of the resolution is hereby ratified and affirmed.
Section 4. Effective Date. This resolution shall be effective immediately upon
passage by the Federal Way City Council.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, this~dayof December
,19-.2.2..,.
CITY OF FEDERAL WAY
/~ fÔ ¡;:f
MAYOR, RON GINTZ
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CIT CLERK, N. CHRISTINE GREEN, CMC
APPROVED AS TO FORM:
~r~
ITY ATTORNEY, LONDI K. LINDELL
FILED WITH THE CITY CLERK: 11/30/99
PASSED BY THE CITY COUNCIL: 12/07/99
RESOLUTION NO. 99-106
k:lresolutilcprk.m&o
11/30/99
Res. #99-30,6Page 3
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MEETING DATE: December 7, 1999
ITEM# S�
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CITY OF FEDERAL WAY
City Council
AGENDA ITEM
SUBJECT: Early Redemption of the Bonds Funded with Utility Tax - M& O Allocation Resolution
CATEGORY:
X CONSENT X RESOLUTION
_ORDINANCE _STAFF REPORT
_BUSINESS _PROCLAMATION
_HEARING _STUDY SESSION
_FYI _OTHER
..............................................................................................................................
ATTACHMENTS: Resolution
...........................................................................................
BUDGETIMPACT:
Amount Budgeted: $
Expenditure Amt: $
Contingency Reqd: $
..............................................................................................................
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SUMMARYBACKGROUND: This resolution modifies resolution 99-298, which initially estimated
$50,000 for Celebration Park M& O and designated all other excess utility tax (after paying M&O, Street
Overlays and debt service on the 1995, 1996 & 1997 bonds issues), to be used for early retirement of debt
service. The amended resolution provides for payment of all M& O related to the bond projects, Street
Overlays and the Debt Service on the 1995, 1996 & 1997 bond issues. Any excess utility tax will continue
to be used for early retirement of debt service on those bond issues.
CITY COUNCIL COMMITTEE RECOMMENDATION: Provide an additional $91k for the M& O
at Celebration Park for a 2 year period beginning 1/1/00. After the 2 year period, review other funding
options to determine how to proceed in future years.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CITY MANAGER RECOMMENDATION: Approve Council Committee Recommendation
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APPROVED FOR INCLUSION IN COUNCIL
PACKET: �
(BELOW TO BE COMPLETED BY CITY CLERK'S OFFICE)
�A C NCIL ACTIO� � {-�\
PPROVED I � � � � ���
_DENIED
TABLED/DEFERRED/NO ACTION
COUNCIL BILL #
lst Reading �
Enactment Reading
ORDINANCE # .
RESOLUTION # .—
K:\FIN�BIENNIAL\ORDINANC\UTILITYTAXRESO. WPD