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-OP <br /> RESOLUTION NO.4;97 <br /> A RESOLUTION supporting proposed service modifications based on the financial <br /> impacts caused by passage of Engrossed Second Substitute Senate Bill 5201 in 1995 <br /> and the recommendations contained within Everett Transit's Operational Analysis. <br /> Whereas, Engrossed Second Substitute Senate Bill (E2SSB) 5201 was passed by the <br /> Washington State Legislature and signed by the Governor in 1995; and <br /> Whereas, E2SSB 5201 exempted manufacturing equipment purchases and leases from <br /> sales tax; and <br /> Whereas, the effect of this exemption has been to reduce Everett Transit's sales tax <br /> revenue in excess of$1 million on an annual basis; and <br /> Whereas, Everett Transit derives approximately 82 percent of its revenue from the sales <br /> tax; and <br /> Whereas,the impact of the $1 million plus annual reduction has been to reduce Everett <br /> Transit's overall sales tax revenue by approximately 16 percent; and <br /> Whereas, two additional pieces of legislation implemented by the Washington State <br /> Legislature in 1996 - Substitute Senate Bill (SSB) 6656, granting sales tax exemptions for <br /> manufacturing "repair and replacement," and House Bill (HB) 2484, granting sales tax <br /> exemptions for manufacturing "research and development," - will result in additional but <br /> as yet unspecified impacts upon Everett Transit's sales tax revenues; and <br /> Whereas, without service reductions, Everett Transit's Working Capital will be <br /> dramatically reduced and place Everett Transit in an unacceptable financial position; and <br /> Whereas, implementation of service reductions will account for approximately 35 <br /> percent of the amount needed to offset the projected $1 million plus shortfall; and <br /> Whereas,the implementation of service reductions will inconvenience public transit <br /> customers and result in transportation hardships for Everett residents; and <br /> Whereas, Everett Transit undertook an Operational Analysis in 1995 designed to identify <br /> service modifications which would make the provision of public transit service more <br /> attractive and convenient to Everett residents and employers; and <br />