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I:VFRFIT CITY COi1NCII,AGENDA ITEM COVFR SIIFFT 7 <br /> PROJECT TITLE: <br /> Resolution authorizing the submission of a Consent COUNCIL BILL# <br /> ballot proposition for an additional sales and X Action Originating Department Transportation <br /> use tax of three-tenths of one percent(0.3%) Services <br /> for the purpose of providing funds to meet First Reading Contact Person Paul KaftanSki <br /> current and future public transit service levels Second Reading Phone Number 257-8822 <br /> and other matters properly related thereto. Third Reading FOR AGENDA OF July 28,2004 <br /> Public Hearing <br /> Initialed by: <br /> Department Head <br /> CAA <br /> Council President <br /> Location Preceding Action Attachments Department(s)Approval <br /> None Resolution Administration <br /> N/A <br /> Council approval of this agenda item authorizes a budget revision in the additional amount requested. <br /> Expenditure Required $-0- Account Number(s): <br /> Amount Budgeted $-0- <br /> Additional Required $-0- <br /> DETAILED SUMMARY STATEMENT: <br /> The attached resolution provides for the submission to the qualified electorsof the city of Everett,,a proposition authorizing,if <br /> approved,an increasein the portion of the sales and use tax dedicated to the provision of transit service by Everett Transit from <br /> 0.3%to 0.6%. This would have the effect of increasing the sales tax rate applied to retail purchases in the city from 8.3%to 8.6%. <br /> Based on a taxable sale of$10.00,the sales tax collected would increase from 83 cents to 86 cents,or an additional 3 cents. The <br /> resolution authorizes a vote to be held on September 14,2004. <br /> Based upon an on-going financial and operating assessment of transit services and operations,today's level of transit operations is <br /> not affordable based upon the current rate of sales tax collection. Projections indicate that by mid 2005,Everett Transit reserve <br /> funds will be exhausted. As recently as August 2003,fixed route transit services were reduced by 14%,which included a 50%. <br /> reduction of Sunday service and 25%reduction in Saturday service. With no change in the sales tax rate,an additional reduction of <br /> 9%in fixed route and paratransit service(for people with disabilities)will need to be implemented. <br /> Additional demand for paratransit service is forecasted. In 2004,demand has increased 20%over 2003 (which itself experienced a <br /> 52%increase in ridership compared to 2002). Everett's population is forecasted to increase 24%and employment is forecasted to <br /> increase 68%through 2025. Local fixed route transit service however has declined and will continue to decline without additional <br /> funding. And local transit service will not be positioned to help support the city of Everett in achieving its economic development, <br /> urban design,educational,cultural,recreationaland social goals and objectives. <br /> Voter approval of the sales tax proposition would allow Everett Transit to 1)restore services;2)expand services(frequency,time <br /> of day,service area,type of service);3)develop and maintain capital facilities and assets as needed(e.g.transit centers);4) <br /> purchase additional rolling stock; and 5)improve service coordination with Sound Transit,Community Transit and the Washington <br /> State Ferry System. <br /> RECOMMENDATION(Exact action requested of Council):Adopt a resolution authorizing the submission of a ballot <br /> proposition for an additional sales and use tax of three-tenths of one percent(0.3%)to preserve and expand transit services for <br /> other matters properly related thereto. -"� <br />