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Resolution 19-013 Intent to adopt legislation re 1406 CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON RESOLUTION 19-013 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON DECLARING THE INTENT OF THE CITY OF SPOKANE VALLEY TO ADOPT LEGISLATION TO AUTHORIZE A SALES AND USE TAX FOR AFFORDABLE AND SUPPORTIVE HOUSING PURSUANT TO SUBSTITUTE HOUSE BILL 1406 (CHAPTER 338,LAWS OF 2019); AND OTHER MATTERS RELATED THERETO. WHEREAS, in the 2019 Regular Session, the Washington State Legislature approved, and the Governor signed, Substitute House Bill 1406 (Chapter 338,Laws of 2019)("SHB 1406"); and WHEREAS, SUB 1406 authorizes the governing body of a city to impose a local sales and use tax for the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of affordable or supportive housing; and WHEREAS, the tax will be credited against State sales and use taxes collected by the State of Washington (State) within the City of Spokane Valley and,therefore, will not result in a higher sales and use tax rate within the City of Spokane Valley and will represent an additional source of funding to address housing needs in the City of Spokane Valley; and WHEREAS, revenues received from the sales and use tax must be used to assist persons whose income is at or below sixty percent of the City of Spokane Valley median income; and WHEREAS, the City of Spokane Valley has need of additional funds to assist in providing for transitional housing for low and very-low income citizens within the City,and has determined that imposing the sales and use tax to address this need will benefit its citizens; and WHEREAS, in order for a city to impose the tax, within six months of the effective date of SHB 1406, or January 28,2020,the governing body must adopt a resolution of intent to authorize the maximum capacity of the tax, and within twelve months of the effective date of SHB 1406, or July 28, 2020, must adopt legislation to authorize the maximum capacity of the tax; and WHEREAS, this Resolution constitutes the resolution of intent required by SHB 1406; and WHEREAS, the City Council now desires to declare its intent to impose a local sales and use tax as authorized by SHB 1406 which,if imposed by the City by separate Council action,the tax will be credited against the existing state sales and use tax levied by the State and will not result in any increase in the total amount of sales and use tax collected from consumers. NOW, THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington, as follows: Section 1. Resolution of Intent. The City Council declares its intent to adopt legislation to authorize the maximum capacity of the sales and use tax authorized by SI-IB 1406 within one year of the effective date of SHB 1406, or by July 28, 2020. Section 2. Further Authority - Ratification. All City officials, their agents, and representatives are hereby authorized and directed to undertake all action necessary or desirable from time- Resolution 19-013 -Intent to Utilize SUB 1406 Funds Page 1 of 2 to-time to carry out the terms of, and complete the actions contemplated by, this Resolution. All acts taken pursuant to the authority of this Resolution but prior to its effective date are hereby ratified. Section 3. Effective Date. This Resolution shall be effective upon adoption. Adopted this 3`d day of September, 2019. City *I Spokane Valley t `I • L.R. Higgins . 11110 ATM, ..J.) Christine Bainbridge, it3y Clerk Approved as to Form: S Office of t?e City Attorney Resolution 19-013 -Intent to Utilize SHB 1406 Funds Page 2 of 2