Form revised June 11, 2010

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Legislative	Dan Eder / 684-8147	n/a

Legislation Title:

AN ORDINANCE relating to taxation; increasing the commercial parking tax and amending Sections 5.35.030 and 5.35.070 of the Seattle Municipal Code.

· Summary of the Legislation:

This ordinance will increase the existing commercial parking tax rate from 10 percent to 12.5 percent.

· Background:

The Washington State Legislature passed legislation that was adopted as Section 208 of Chapter 42, Laws of Washington, codified at RCW 82.80.030, which authorized cities to fix and impose a tax for the act of or privilege of parking a motor vehicle in a facility operated by a commercial parking business within its incorporated boundaries.

In 2006, the City passed Council Bill 115668 imposing a commercial parking tax for the act or privilege of parking a motor vehicle in a commercial parking lot within the City that is operated by a commercial parking business.  The commercial parking tax rate currently in effect is 10 percent.

_ __ This legislation does not have any financial implications.  (Stop here and delete the remainder of this document prior to saving and printing.)

_x__ This legislation has financial implications.  (Please complete all relevant sections that follow.)

Anticipated Revenue/Reimbursement: Resulting From This Legislation:

Fund Name and Number	Department	Revenue Source	2010 Revenue	2011 Revenue
Transportation Operating Fund	SDOT	Commercial Parking Tax	$   5,460,000	$   5,460,000
TOTAL			$   5,460,000	$   5,460,000

Notes:

· What is the financial cost of not implementing the legislation?

None identified at this time.

· Does this legislation affect any departments besides the originating department? 

The legislation provides funding to complete high priority transportation projects within the Seattle Department of Transportation.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives?

None identified at this time.

· Is the legislation subject to public hearing requirements: 

There are no public hearing requirements.

· Other Issues

The City has committed to move forward with approximately $841 million of transportation and utility projects in conjunction with the State’s Alaskan Way Viaduct Replacement Program.  Assuming the City’s remaining utility relocation costs are funded by rate-payers, the City faces a $425 million funding gap to pay for the Alaskan Way Seawall replacement, waterfront open space, Mercer West, and Parking Program / Project Services. 

Assuming current project schedules, the funding gap for these projects is $26 million in 2011 and $35 million in 2012 (total 2011-2012 funding gap is $61 million)

An increase in the commercial parking tax to 12.5 percent will raise approximately $5.4 million per year in new revenues.  This estimate is based on 2010 adopted budget projections for commercial parking tax revenues of $21.8 million and the 2010 commercial parking tax rate of 10 percent. 

Recent analysis by the City Budget Office concluded that a $5.4 million annual cash flow is sufficient to support approximately $68 million in bonds.

By state law, all commercial parking tax revenues must be used for transportation purposes. 

· List attachments to the fiscal note below:

No attachments.