CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to the financing of 2018 activities evaluating effects of the Sweetened Beverage Tax, and authorizing an interfund loan from the Revenue Stabilization Fund (00166) to the General Fund (00100) in the amount of $500,000.
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WHEREAS, on June 6, 2017, the City Council passed Ordinance 125324, imposing a tax on engaging in the business of distributing sweetened beverages, the "Sweetened Beverage Tax (SBT)"; and
WHEREAS, Ordinance 125324 requires that the City Auditor contract with academic researchers to complete an annual evaluation of the effects of the tax; and
WHEREAS, Ordinance 125324 provides that a minimum of $500,000 per year for at least the first five years, beginning with the date of adoption of Ordinance 125324, shall be dedicated to this evaluation; and
WHEREAS, SBT revenues will not begin to accrue until after January 1, 2018; and
WHEREAS, baseline assessments for the evaluation required by Ordinance 125324 are occurring during 2017; and
WHEREAS, the 2017 budget was amended to advance $480,000 from the General Fund to finance 2017 SBT evaluation activities; and
WHEREAS, a portion of 2018 SBT revenues will be needed to cover 2017 evaluation costs, leaving only $20,000 allocated for evaluation activities in 2018; and
WHEREAS, Public Health - Seattle & King County has estimated the 2018 SBT evaluation costs to be $596,562; and
WHEREAS, the City Council has determined that this interfund loan is consistent with the Debt Management Policies adopted by Resolution 31553; and
WHEREAS, regarding use of the proceeds of an interfund loan for operating costs, the City Council has determined that there is no viable alternative to an interfund loan available for accomplishing the evaluation directive of Ordinance 125324 in 2018; and
WHEREAS, the Revenue Stabilization Fund (00166) has sufficient cash balance through the end of 2019 to accommodate this interf...
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