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4201
WASTEWATER UTlLlTY
Revenue Sharing - Parr Ford
Finance
LEG 12-1
07/05/2001
06/15/2013
Review date for tracking only
INTERDEPARTMENTAL AGREEMENT
FOR
REVENUE SHARING
ATTHE
PARR FORDPROPERTY
THIS AGREEMENT, made and entered into this ..~_~L ,,da~y_ of ~_ta.g~_~, 2001 by and
between the City of Bmmerton General Fund, hereinafter General ~:und' ~md the City of
Bremerton Wastewater Utility, hereinafter "Utility", is intended to set forth the terms and
conditions for the sharing of incremental tax revenues received by the General Fund as a result of
businesses m-locating to the new facilities being constructed on the property located immediately
North of the Utility's WWTP and bounded by Oyster Bay Avenue, SR # 3 and Wemer Road,
hereinafter "Property".
Background:
In 1995 the Utility undertook a project which involved the acquisition of houses and other
structures within the Property, the demolition of those structures, the aggregation of the
numerous land parcels within the Property and the sale of the Property through a Request for
Proposals (RFP) process. The City Council recognized at the outset that the Utility would likely
not recover all of the project costs from the property sale. The Council also recognized that the
General Fund would gain tax revenue from the conversion of the property from residential to
commercial use. In the process of approving the project, Council stated their intention that when
the project was completed, an agreement should be created that would share between the General
Fund and the Utility the incremental tax revenues in order for the Utility to recover any deficit
resulting from the project.
Scope:
The scope of this agreement is limited to the incremental sales tax and B & O tax revenue to the
General Fund resulting from increased activity of the businesses re-locating to the Property.
Term:
This agreement shall become effective when the General Fund first receives tax revenues
resulting from business activity at the Property and shall continue until a total of $1,100,000 of
incremental tax revenue has been received by the Utility under the revenue sharing formula set
forth herein.
Revenue Sharing Formula:
The reporting period for calculating incremental revenue to the General Fund will be monthly for
sales tax and quarterly for B & O tax. For each reporting period, the incremental tax revenue
will be calculated by subtracting from the actual tax revenue received by the General Fund from
Revenue Sharing - Pmx Ford P~opetty
Page I
businesses located on the Property the tax revenue ~eeived from those businesses in the same
period of the year prior to the commencement of this revenue sharing agreement. The
incremental revenue thus determined shall be shared equally between the General Fund and the
Utility. Payments from the General Fund to the Utility will be made monthly within 30 days of
the receipt of incremental tax revenues. In the event that the incremental tax revenue during any
period is negative, no payment shall be made.
Not an Inter-Fund Loan:
Nothing in this agreement is to be construed as indicative of the existence of an inter-fund loan
or liability. Rather it is an effort to equitably share the incremental tax revenues of the Property
between the General Fund and the Utility in order that the Utility may recover financial losses
sustained in converting the land use of the Property.
CITY TREASURER PUBLIC WORKS & UTILITIES
Revenue Sharing - Parr Ford Pmper~
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