On July 22, 2019 staff provided City Council with an overview of HB 1406 which allows cities to capture a portion of sales tax that is already being levied and collected provided that it is used to support affordable housing objectives.  If adopted, the City of Auburn will capture approximately $155,000 annually that can be directed towards a variety of affordable housing initiatives.  City Council expressed support for staff to prepare the requisite resolution and ordinance for future consideration of adoption.

Pursuant to the legislation, a local municipality must adopt (1) a Resolution of intent to authorize the maximum capacity of the tax (Resolution 5454), and (2) legislation (e.g. an Ordinance) to authorize the maximum capacity of the tax (Ordinance 6732).  HB 1406 does not preclude a local municipality from taking both actions on the same date which is why staff has provided both items.  It is important to note that Council would have to take action on the Resolution first and Ordinance second.

If the Ordinance is adopted, Chapter 3.60 of the Auburn City Code will be amended to include language that authorizes the capture of state sales tax revenues for a twenty year period of time.  It also clarifies that these funds must be used for affordable housing objectives that are consistent with HB 1406.

Also, if Ordinance 6732 is adopted, City staff will follow the procedures outlined in HB 1406 for proper notification to the Washington State Department of Revenue.

Resolution 5454 and Ordinance 6732 were presented to City Council during the September 9, 2019 Study Session.  City Council requested that both matters move forward to the September 16, 2019 City Council meeting for consideration of adoption.