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WHEREAS, the Rotary Club of Arlington, WA ("Rotary Club") is an established fixture
in the Arlington community, and has long played a role in civic life; and
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WHEREAS, the Rotary Club helps to "pitch in" with projects which the City mig
undertake if the City had additional funding; and I
WHEREAS, in 2013, the Rotary Club conducted a very successful "Duck Dash"
campaign, raising funds for a project that ordinarily would have been a city capital project, t
construction of new park facilities at Haller Park, which project has an estimated cost of
$115,000; and
WHEREAS, the City has never collected a raffle tax from any nonprofit organization,
including but not limited to the Rotary Club; and
WHEREAS, the City is amending its ordinance to adjust the ordinance to make clear that
nonprofit organizations are exempt from raffle tax; and
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NOW, THEREFORE, THE CITY COUNCIL OF ARLINGTON, WASHINGTON,
HEREBY RESOLVES AS FOLLOWS:
a. The 2013 Duck Dash raised over $75,000 in gross sales of raffle tickets, with
expenses and net prizes of approximately $44,000.
b. The city's ordinance, which has never previously been enforced against any
nonprofit entity, would ordinarily have assessed a tax of approximately $1,550.00,
representing 5% of the net proceeds.
c. RCW 9.46.113 requires that the City must "use the revenue from such tax
primarily for the purpose of public safety".
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d. As interpreted by the courts, this phrase has been interpreted to mean that
gambling taxes must be used in the first instance for public safety and then for
additional public purposes.
e. The City Council finds that the Rotary Club's proposed Haller Park donation
serves the public safety:
I . By making the park more user-friendly, thereby reducing the transient
population and thereby reducing minor crime; and
making the park equipment itself more user-friendly and safer by
modernizing the equipment and ensuring a safer installation, thereby
reducing potential injury,
f. The City Council also finds that the Rotary Club's intended donation of $115,000
of playground equipment is being used primarily for public safety and is superior
to the receipt of any gambling tax funds from the proceeds of the raffle,
Section 2. The City Council hereby waives the right to receive any gambling or raffle taxes
owing from the Arlington Rotary Club, in exchange for the Arlington Rotary Club's Haller Park
Project donation to the City.
APPROVED by the Mayor and City Council of the City of Arlington this 16 1h day of
June, 2014.
Kristh anfiteld, 'ity Clerk
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St AvenJ. e Wlle,it�y� Attorney
RESOLUTION NO. 2014-014 1