Municipal Finance

AWC Priority
Lodging Tax Revenues (SSB 5647)

AWC has been working hard to bring SSB 5647 to a vote in the House of Representatives. Thank you to those city officials who made calls to their representatives and chambers of commerce asking them to support this bill. It paid off late Thursday night when the House amended and passed the bill with a 73–25 vote. Relatively minor amendments were adopted regarding the reporting requirements and sunset clause.

As approved by the House, the bill would allow cities to use hotel/motel tax revenues for the operations of special events and festivals as well as facility partnerships with nonprofit organizations. The bill would require cities to annually report how lodging tax expenditures have been allocated. This authority and associated reporting requirements sunset in 2013. While we would have preferred no sunset date, it was necessary to advance the bill.

We expect the Senate to concur with the House amendments and advance the bill to the Governor. Again, thank you to all of you who made calls. A number of representatives mentioned during their floor speeches that calls from home were their reason for voting "yes."

AWC Priority
Revising Voter-Approved Funding Sources (ESB 5498)

While ESB 5498 does not eliminate non-supplanting language in the voter-approved multi-year levy lid lift and three-tenths percent sales tax, it allows cities to supplant certain funds or loss of funds due to events impacting expenditures. See last week’s Bulletin for more information. AWC remains supportive of this bill.

As of Friday morning, April 13, the bill sits on the House calendar awaiting action. It must be approved by 5 pm or it is considered dead. We are cautiously optimistic the bill will be advanced by the deadline. Many of you have also made calls on this bill – thank you!

AWC Priority
Providing Consistency for Code and Non-code Cities (HB 2161)

HB 2161 will give code cities the same authority currently granted to non-code cities regarding the allocation of interest income from commingled investments. The bill has passed both houses and was delivered to the Governor on Wednesday, April 11. The Governor is expected to sign the bill on Tuesday, April 17.

AWC Priority
Multi-Family Property Tax Exemption (E2SHB 1910)

E2SHB 1910 passed out of the Senate with a 41-2 (6 excused) vote on Monday, April 9. For details about the provisions, please see the Municipal Finance section of last week’s Bulletin. We expect the House to concur in the Senate amendments. AWC supports this bill and the expansion of this property tax abatement tool to other cities. For questions on this issue, please contact Jim Justin, jimj@awcnet.org.

Budget Negotiations

As was discussed in last week’s Bulletin, each house has passed its respective budget and negotiations between the two houses and the Governor continue. We have heard the final budgets (operating, transportation and capital) will be released the middle of the week of April 16.

While we don’t expect any surprises, if an issue goes sideways on us, we will contact you immediately seeking your quick assistance.

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