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CITY OF EVERETT FISCAL ANNEXATION ANALYSIS <br /> Exhibit 15 <br /> Scenario 3: Sales Tax Credit <br /> 12,000,000---- — <br /> CI Available Credit} <br /> ■Credit Used <br /> 10,000,000 <br /> 8,000,000 <br /> 6,000,000- <br /> 4,000,000 <br /> 2,000,000 <br /> 0 II I II <br /> 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 <br /> Scenario 4: Sales Tax Credit <br /> 12,000,000 <br /> 10 Available Credit <br /> ■Credit Used <br /> 10,000,000 L <br /> 8,000,000 — <br /> 6,000,000 ;, '-• <br /> 4,000,000 <br /> 2,000,000 <br /> o <br /> 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 <br /> Source:Berk&Associates analysis, 2008 <br /> Substitute Senate Bill 6686 does not specifically call out whether the sales tax credit can be used only <br /> to cover operating deficits or also to provide funding for capital expenditures: <br /> 'The revenues from the tax authorized in this section may not exceed that which the city deems <br /> necessary to generate revenue equal to the difference between the city's cost to provide, maintain, <br /> and operate municipal services for the annexation area and the general revenues that the cities would <br /> otherwise expect to receive from the annexation during a year." <br /> There has not been a definitive opinion by an Attorney General or any State agency as to whether the <br /> credit may be used to cover capital expenditures. However, a number of cities around the region are <br /> f Final Report:October 2008 Page 25 <br />