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Revenue Sharing Agreement Between Grant County and the City of Moses Lake
September 20, 1999
Mediator Nan Henriksen has asked the County to prepare a draft comprehensive revenue
sharing agreement based on the discussions that took place in Moses Lake on Monday,
August 23rd. This document is based on the agreement reached at the meeting.
This agreement is between Grant County and the City of Moses Lake. The provisions of this agreement apply to the Moses Lake UGA, as adopted in the Grant County Comprehensive Plan. The purpose of this agreement is to provide for timely annexations by the City of Moses Lake while protecting the financial viability of the Grant County Road Fund. Both of these being essential to the successful implementation of the Growth Management Act. (GMA)
The specific provisions are as follows:
1. All Annexations
The county will continue to receive the full property tax levied for county road purposes for the calendar year of the annexation, plus all outstanding prior years' taxes.
The assessed value used to calculate reimbursement is the annual assessed value of a parcel (land and improvements) established by the Assessor for property tax purposes.
2. For Annexation of Properties throughout the UGA, Excluding Resource Based Industries
Up to $20,000,000 of annually accumulated assessed value, excluding Resource Based Industries will be exempt from the provisions of this agreement.
When property values exceed $20,000,000 the City will reimburse the County to mitigate the impact on the county road fund budget. The reimbursement will start in the year following annexation and be at a rate of $1.50 per $1000 of assessed valuation in the first year and decrease by $0.25 per $1,000 each year thereafter until it reaches zero. This six-year ramp-down period would correspond with the time frame of the county's capital improvement program and substantially assist the county in adjusting to reduced road fund revenues while maintaining planned levels of service.
3. For Annexation of Existing Resource Based Industries
For each annexed resource based industry, the city will reimburse the county on a ramp-down schedule. The reimbursement will start at the $2.23 (the current rate) and decrease $0.25 each year until $1.125 is reached. For the remaining duration of the agreement, the city will continue to reimburse at a rate of $1.125.
4. For New Resource Based Industry
New resource based industry developed after annexation will be reimbursed at the rate of $1.125 per $1,000 of assessed value for a period of ten years following development. For the purposes of this agreement, development will begin in the first year that the assessed valuation reflects any improvements, excluding platting and/or platting related improvements on a parcel.
5. Duration of the Agreement
The agreement will be for twenty years. The provisions of this agreement will be jointly reviewed by the city and the county after ten years. By mutual consent, the agreement may be revised, modified or terminated after completion of the ten-year review.
6. Elimination of the Boundary Review Board
The county will initiate the process of disbanding the BRB within one year of completion and adoption of the Grant County Comprehensive Plan and its implementing regulations. The time will start at the conclusion of any challenges to the comprehensive plan or implementing regulations.
In the interim, the county will support before the BRB any reasonable city annexation proposal within the UGA which is consistent with both the County and City's GMA Comprehensive Plans.
A proposal is reasonable it unless otherwise agreed to by the city and county, it:
A. Includes all adjacent roadways.
B. Is contiguous to the existing city limits.
C. Does not unduly confuse the jurisdiction of emergency service providers.
D. Conforms with current regulations.
E. Does not deliberately exclude less desirable properties.
If the county feels an annexation proposal is not reasonable because the above criteria has not been met, the county shall contact the city and discuss its concerns. The county shall not request the Boundary Review Board to take jurisdiction prior to attempting to resolve its concerns with the proposed annexation.
7. Maintenance of Wheeler Road
For the annexed portion of Wheeler Road, and "N" Road NE the city and county will share annual maintenance costs for a period of ten (10) years following annexation. The County's share, expressed as a percentage, will be determined by dividing the total county road property tax revenue the County receives from the Wheeler Corridor Area by the county road property tax revenue the County would have received if some or all of the properties in the Area were not annexed. Due to proximity, the county will perform the work and bill the city at the end of each year for the city's share. It is understood the performance of maintenance by either party does not convey any liability to the performing agency.
The Wheeler Corridor Area is specifically identified on the attached map entitled "Exhibit No. I " and incorporated in this agreement by this reference. Maintenance to be limited to snow and ice control, weed control, placement of pavement markings, application of sealcoat during normal frequency on "N" NE and minor patching.
8. Definition of "Resource Based" Industry
A resource based industry is one that is dependent on agriculture, forestry, fisheries or mining.
If the city and the county cannot reach agreement on how to classify a specific industry, the dispute will be subject to mediation. Any outside mediation costs will be divided equally between the city and the county.
9. Reimbursement for County Capital Investments within the UGA
The City will reimburse the county for the locally funded portion of any capital investments made within the unincorporated portion of the UGA at the time it is annexed by the city. The amount of reimbursement will be based upon a 20 year straight line amortization.
10. Process for calculation of reimbursement
For monies owed in Provisions 2, 3 and 4, the county shall calculate based on the taxable assessed value of each year the amounts owed to the county from the city. Annual payments owed to the county shall be deducted from the monthly distribution payments of May 10th and November 10th from the county for each portion of the total amounts owed in Provisions 2,3 and 4. The County shall send notice to the city by April 1st of each year of the amounts that will be deducted from the May 10th and November 10th distributions.
For Provision 7, the County shall calculate and send a bill for payment that will be due within 2 months of bill date.
For Provision 9, the County will determine the amount due and bill the city within 30 days of final annexation approval.
Dated this 20th day of September 1999
For the City of Moses Lake
Joseph K. Gavins, City Manager
Richard Pearce, City of Moses Lake Mayor
For Grant County
Tim Snead, Chairman
Grant County Commissioners
LeRoy C. Allison, Commissioner
Deborah K. Moore, Commissioner