Title
Approval of an Ordinance Creating a Fund for the Home Fund
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the ordinance creating a fund for the Home Fund on second reading.
Report
Issue:
Whether to approve an ordinance to create a Fund for the Home Fund.
Staff Contact:
Dean Walz, Fiscal Services Director, Administrative Service Department, 360.753.8465
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
Background and Analysis has not changed from first to second reading.
In February, Olympia voters approved a 1/10th of 1% increase in sales tax to be used to construct affordable and supportive housing and for housing-related purposes, including mental and behavioral health-related facilities, costs of operations, maintenance, delivery and evaluation of mental health programs and services, or housing-related services (RCW 82.14.530). To provide transparency and accountability, staff recommends creating a separate Fund to track revenue and expenses.
On an annual basis, the increase in sales and use tax is estimated to generate $2.3 million. In accordance with RCW 82.14.055, the sales and use tax takes effect 75 days after the State Department of Revenue receives notification and can only start on the first day of January, April or July. Therefore, the City’s new sales tax will take effect on July 1, 2018. The City will begin receiving the new tax distributions in September. The City estimates receiving approximately $517,000 in 2018.
Neighborhood/Community Interests (if known):
Voters of the City approved a sales tax to support the Home Fund.
Options:
1) Move to approve the ordinance creating a fund for the Home Fund on second reading.
2) Direct staff to make changes to the ordinance.
3) Do not approve the ordinance.
Financial Impact:
Estimated annual funds $2,300,000.
Estimated amount available for use in 2018 is $517,000.
Attachments:
Ordinance