HomeMy WebLinkAbout02/18/2025 09.E. Ordinance amending City of Yakima Municipal Code Section 7.92.040 Incentive program for water and or wastewater connection chargesItem No. 9.E.
For Meeting of: February 18, 2025
ITEM TITLE:Ordinance amending the City of Yakima Municipal Code Section
7.92.040, Incentive program for water and/or wastewater connection
charges
SUBMITTED BY:Sara Watkins, City Attorney
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
SUMMARY EXPLANATION:
Council directed staff to return to council with ordinance language that would allow the Council to utilize
the 1406 money from the affordable housing sales and use tax, for all of the uses outlined in state statute
(RCW 82.14.540). The current Affordable Housing Incentive Program, found in YMC 7.92, has the 1406
money being used for the incentive program. The proposed amendment to YMC 7.92.040 would make
using the 1406 money optional, rather than required, for the Affordable Housing Incentive Program.
Notably, this Program was created to comply with grant requirements for the CHIP grants that you have
approved for a number of large affordable housing projects. Leaving the Program in place allows the
City to fund it with grant money as received, or with other money as the Council deems appropriate. It
provides the flexibility to use the 1406 money in other ways.
YMC 3.78.065 and YMC 3.78.067 are included with these documents. Those ordinances already give
the City Council the authority it has under the state statute to use the sales and use tax it is retaining for
the purposes outlined in the statute. As such, another ordinance is not necessary—the authority has
already been granted to the City.
ITEM BUDGETED: No
STRATEGIC PRIORITY 24-25: A Thriving Yakima
RECOMMENDATION: Pass Ordinance.
ATTACHMENTS:
Ord-7.92.040_redline.pdf
Ord-7.92.040_Final.doc
YMC 3.78.065 & 3.78.067.docx
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ORDINANCE NO. 2025-_____
AN ORDINANCE amending the City of Yakima Municipal Code Section 7.92.040, Incentive
program for water and/or wastewater connection charges.
WHEREAS, the City Council previously passed an ordinance imposing a sales and use
tax for affordable and supportive housing under YMC 3.78.065; and
WHEREAS, the funds retained from that sales and use tax, at the rate of 0.0073
percent, were part of the Affordable Housing Incentive Program adopted in YMC 7.92, where
additional funds were deposited from state and federal programs providing funding to connect
affordable housing units to City utilities; and
WHEREAS, the City Council would like more flexibility in using the funds gained through
the sales and use tax for affordable housing, as allowed by RCW 82.14.540; and
WHEREAS, to gain that flexibility, the City Council wishes to amend YMC 7.92.040 to
provide that the Council may, but is not required to, provide funding to the Affordable Housing
Incentive Program through the sales and use tax adopted in YMC 3.78.065; and
WHEREAS, the City Council of the City of Yakima finds it is in the best interest of the
City and its residents to have flexibility to use the sales and use tax money for any allowable
use under RCW 82.14.540; now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Section 7.92.040 of the Yakima Municipal Code shall be amended to
read as follows:
7.92.040 Incentive program for water and/or wastewater connection charges.
(a) There is created an incentive program for applicants meeting the affordable housing
requirement in YMC 7.92.030 wherein applicants may apply for a grant from the incentive
program fund to pay for some or all of the connection fees for water and/or wastewater utilities.
(b) Applicants may apply for a grant for the entire water and/or wastewater connection fees if
the development is one hundred percent affordable housing, as defined herein.
(c) If the development is less than one hundred percent affordable, the applicant may apply
for a grant for a percentage of the water and/or wastewater connection fees which is the same
or less than the percentage of units in the development that are affordable, as defined herein.
For example, if fifty percent of the units are affordable, then the applicant may apply for a grant
to pay for up to fifty percent of the water and/or wastewater connection fees.
(d) The incentive program is may be funded in part by sales and use tax retained pursuant to
YMC 3.78.065. The city council may place additional funds into the incentive program when it
deems appropriate. There is no guarantee that there will be funds available in any given year
for the incentive program and applicants are not entitled to participate in the incentive program.
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(e) The incentive program is available on a first-come, first-serve basis. There will be no
opportunity to put a project on a “wait list” or otherwise try to save funds for certain projects.
(Ord. 2022-003 § 1, 2022).
Section 2. This ordinance shall be in full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 18th day of February,
2025.
ATTEST: Patricia Byers, Mayor
Rosalinda Ibarra, City Clerk
Publication Date:
Effective Date:
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1
ORDINANCE NO. 2025-_____
AN ORDINANCE amending the City of Yakima Municipal Code Section 7.92.040, Incentive
program for water and/or wastewater connection charges.
WHEREAS,the City Council previously passed an ordinance imposing a sales and use
tax for affordable and supportive housing under YMC 3.78.065; and
WHEREAS,the funds retained from that sales and use tax, at the rate of 0.0073
percent, were part of the Affordable Housing Incentive Program adopted in YMC 7.92, where
additional funds were deposited from state and federal programs providing funding to connect
affordable housing units to City utilities; and
WHEREAS,the City Council would like more flexibility in using the funds gained through
the sales and use tax for affordable housing, as allowed by RCW 82.14.540; and
WHEREAS,to gain that flexibility, the City Council wishes to amend YMC 7.92.040 to
provide that the Council may, but is not required to, provide funding to the Affordable Housing
Incentive Program through the sales and use tax adopted in YMC 3.78.065; and
WHEREAS,the City Council of the City of Yakima finds it is in the best interest of the
City and its residents to have flexibility to use the sales and use tax money for any allowable
use under RCW 82.14.540; now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1.Section 7.92.040 of the Yakima Municipal Code shall be amended to
read as follows:
7.92.040 Incentive program for water and/or wastewater connection charges.
(a) There is created an incentive program for applicants meeting the affordable housing
requirement in YMC 7.92.030 wherein applicants may apply for a grant from the incentive
program fund to pay for some or all of the connection fees for water and/or wastewater utilities.
(b) Applicants may apply for a grant for the entire water and/or wastewater connection fees if
the development is one hundred percent affordable housing, as defined herein.
(c) If the development is less than one hundred percent affordable, the applicant may apply
for a grant for a percentage of the water and/or wastewater connection fees which is the same
or less than the percentage of units in the development that are affordable, as defined herein.
For example, if fifty percent of the units are affordable, then the applicant may apply for a grant
to pay for up to fifty percent of the water and/or wastewater connection fees.
(d) The incentive program may be funded in part by sales and use tax retained pursuant to
YMC 3.78.065. The city council may place funds into the incentive program when it deems
appropriate. There is no guarantee that there will be funds available in any given year for the
incentive program and applicants are not entitled to participate in the incentive program.
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2
(e) The incentive program is available on a first-come, first-serve basis. There will be no
opportunity to put a project on a “wait list” or otherwise try to save funds for certain projects.
(Ord. 2022-003 § 1, 2022).
Section 2.This ordinance shall be in full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL,signed and approved this 18th day of February,
2025.
ATTEST:Patricia Byers, Mayor
Rosalinda Ibarra, City Clerk
Publication Date:
Effective Date:
257
3.78.065 Imposition of sales and use tax for affordable and
supportive housing.
A. There is imposed a sales and use tax, as the case may be, as authorized by RCW 82.14.540,
upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the city of Yakima.
The tax shall be imposed upon and collected from those persons from whom the state sales tax or
use tax is collected pursuant to Chapters 82.08 and 82.12 RCW.
B. The rate of the tax imposed by this section shall be the maximum rate authorized under
RCW 82.14.540, which shall be 0.0073 percent, except that in the event the city of Yakima levies a
“qualifying local tax” as defined by and before the deadline imposed by RCW 82.14.540, the rate
shall be 0.0146 percent.
C. The tax imposed under this section shall be deducted from the amount of tax otherwise required
to be collected or paid to the Department of Revenue under Chapter 82.08 or 82.12 RCW. Under
RCW 82.14.540(3), the Department of Revenue will perform the collection of such taxes on behalf of
the city of Yakima at no cost to the city.
D. Under RCW 82.14.540(4) and (5), the Department of Revenue will calculate the maximum
amount of tax distributions for the city of Yakima based on the taxable retail sales in the city in state
fiscal year 2019, and the tax imposed under this section will cease to be distributed to the city of
Yakima for the remainder of any state fiscal year in which the amount of tax exceeds the maximum
amount of tax distributions for the city as properly calculated by the Department of Revenue.
Distributions to the city of Yakima that have ceased during a state fiscal year shall resume at the
beginning of the next state fiscal year. (Ord. 2019-020 § 1, 2019).
3.78.067 Purposes of tax.
A. The city may use the funds collected by the tax imposed under YMC 3.78.065 or bonds issued
under RCW 82.14.540(9), only for the following purposes and in accordance with RCW 82.14.540:
1. Acquiring, rehabilitating, or constructing affordable housing, which may include new units
of affordable housing within an existing structure or facilities providing supportive housing
services under RCW 71.24.385; or
2. Funding the operations and maintenance costs of new units of affordable or supportive
housing; or
3. Providing rental assistance to tenants, unless and until the population of the city of Yakima
should exceed one hundred thousand, upon which event the funds collected shall only be
used in accordance with subsection (A)(1) and (2) of this section.
B. The housing and services provided under this section may only be provided to persons whose
income is at or below sixty percent of the median income of the city.
C. In determining the use of funds under this section, the city must consider the income of the
individuals and families to be served, the leveraging of the resources made available under
YMC 3.78.065, and the housing needs within the city.
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D. The city of Yakima must report annually to the Washington State Department of Commerce, in
accordance with the Department’s rules, on the collection and use of the revenue from the tax
imposed under YMC 3.78.065.
E. Under RCW 82.14.540(12), the tax imposed by the city under YMC 3.78.065 will expire twenty
years after the date on which the tax is first imposed. The finance director shall provide notice to the
city council and the city manager of the expiration date of the tax each year beginning three years
before the expiration date, and shall also promptly notify the city council and city manager of any
changes to the expiration date. (Ord. 2019-020 § 2, 2019).
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