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HomeMy WebLinkAbout3102 Creating a Separate Real Estate Excise Tax Fund and to Close out the 2008 and 2010 Bond Funds Ordinance 3102 Page 1 of 3 Ordinance No. 3102 AN ORDINANCE OF THE CITY OF PORT TOWNSEND AMENDING THE PORT TOWNSEND MUNICIPAL CODE CHAPTER 3.04 TO CREATE A SEPARATE REAL ESTATE EXCISE TAX FUND,AND TO CLOSE OUT THE 2008 AND 2010 BOND FUNDS WHEREAS, as recommended by the City Manager,the City Council determines it appropriate to: A. Establish a separate Real Estate Excise Tax Fund to better track revenues and expenditures related to real estate excise taxes and amend existing code to remove the requirement to deposit monies into the Capital Improvement Fund, and set forth the state laws which form the basis of the tax. B. Close out the 2008 and 2010 bond funds and transfer remaining funds to the Capital Improvement Fund, provided any monies so transferred may only be expended for purposes consistent with the 2008 Bond and 2010 Bond respectively. NOW, THEREFORE, the City Council of the City of Port Townsend ordains as follows: SECTION 1. NEW SECTION. New Section 3.04.320—Real Estate Excise Tax Fund. A new section of Chapter 3.04, Funds, Section 3.04.320 - Real Estate Excise Tax Fund, of the Port Townsend Municipal Code, is hereby adopted and shall read as follows: 3.28.320 Real Estate Excise Tax Fund There is established a special fund to be known as the Real Estate Excise Tax Fund, for the purpose of receiving revenues and tracking expenditures related to Real Estate Excise Tax collection and expenditures. The Fund shall maintain separate accounts for the tax collected as prescribed in RCW 82.46.010 ("REET 1") and as prescribed in RCW 82.46.060 ("REET 2"). SECTION 2. AMENDMENT. Section 3.28.090 Distribution and use of tax proceeds of the Port Townsend Municipal Code relating to real estate excise funds is hereby amended to read as follows (strike is deleted, underline is new): 3.28.010 Imposed-- Rate. There is imposed a tax of one-half of one percent of the selling price on each sale of real property within the corporate limits of the city. The tax of one-half of one percent represents 0.25% of the selling price to be collected by the County as prescribed in this Chapter and in RCW 82.46.010 ("REET 1") and 0.25% of the selling price to be collected by the County as prescribed in this Chapter and RCW 82.46.060 ("REET 2"). (Ord. 2335 § 1, 1993; Ord. 1978 § 1, 1983). 3.28.090 Distribution and use of tax proceeds. A. The Jefferson County treasurer shall place one percent of the proceeds of the taxes imposed herein in the Jefferson County current expense fund to defray costs of collection. B. The remaining proceeds from city taxes imposed herein shall be distributed to the city monthly and those taxes imposed under PTMC 3.28.010 shall be placed by the City Finance Directo[r,* s;er;k-treasurp in a fund to be known as the Real Estate Excise Tax Fund " Fund."These capital improvement funds shall be used by the city solely for financing capital projects as defined by RCW 82.46.010{60-)that are specified in the city's capital facilities plan, and including those authorized by state law. and 59.18:450- C. This section shall not limit the existing authority of this city to impose special assessments on property benefited thereby in the manner prescribed by law. (Ord. 2333 § 1, 1992; Ord. 1978 §4, 1983). SECTION 3. AUTHORIZATION. The City Manager is authorized to transfer any funds in the Capital Improvement Fund related to real estate excise taxes to the Real Estate Excise Tax Fund. SECTION 4. FUND CLOSE OUTS. A. The 2008 Bond Construction Fund is hereby closed out. The City Manager is authorized to transfer any funds in this account to the Capital Improvement Fund, provided any monies so transferred may only be expended for purposes consistent with the 2008 Bond. B. The 2010 Bond Construction Fund is hereby closed out. The City Manager is authorized to transfer any funds in this account to the Capital Improvement Fund, provided any monies so transferred may only be expended for purposes consistent with the 2010 Bond. SECTION 5. SEVERABILITY. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance, or the application of the provision to other persons or circumstances is not affected. This ordinance shall take effect and be in force five days after the date of its publication in the manner provided by law. ADOPTED by the City Council of the City of Port Townsend, Washington, at a special meeting thereof, held this day of December 2013. , t v, David King, Mayor ' Attest: Approved as to Form: Pamela Kolacy, MMC, City Clerk John . Watts, City Attorney