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HomeMy WebLinkAbout12/02/2025 09.C. Ordinance imposing a Council-directed increase in Water and Wastewater tax rates to fund Council specific programs and amending YMC 7.64.020 � F s BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.C. For Meeting of: December 2, 2025 ITEM TITLE: Ordinance imposing a Council-directed increase in Water and Wastewater tax rates to fund Council specific programs and amending YMC 7.64.020 SUBMITTED BY: Craig Warner, Director of Finance and Budget SUMMARY EXPLANATION: This ordinance proposes a council-directed increase to the City's water and wastewater rates to provide dedicated funding for council specific programs. The City of Yakima's proposed 2026 budget cannot fully support several valued community programs that residents wish to see continue. Implementing this rate increase will create a stable funding source to maintain and preserve these important services for the community. ITEM BUDGETED: No STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Pass Ordinance. ATTACHMENTS: Ordinance re amend YMC 7.64.020 Red lined.pdf Ordinance re amend YMC 7.64.020 clean.docx 39 ORDINANCE NO. 2025- AN ORDINANCE amending the City of Yakima Municipal Code Section 7.64.020 Water and Wastewater tax. WHEREAS, the City of Yakima is authorized by Title 35 RCW to acquire, construct, own, operate, and provide financing for water services construction, operation, management and delivery, and wastewater services construction, operation, management and delivery, and to establish rates, fees, and charges therefore; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the water and wastewater tax rate section of the Yakima Municipal Code, Section 7.64.020, is in the public interest and best interest of the City and its residents; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.64.020 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.64.020 Water and Wastewater tax. A. For the provision of water and wastewater services, there is levied a tax against the total gross revenue of the water operating fund and the wastewater operating fund derived from domestic water, wastewater, pretreatment, food processing wastewater, septage and exceptional wastewater disposal, diverted flow, and connection charges. The rate of the tax for calendar year 202 and the following years shall be as follows: All service charges B. 1. The water and wastewater tax shall not be applied against that portion of the total gross revenue of the wastewater operating fund which is collected as debt coverage for the wastewater debt. 2. Commencing on the effective date of the ordinance codified in this chapter, the water and wastewater tax shall not be applied against that portion of the total gross revenue of the water operating fund which is collected as debt coverage for water debt issued after the effective date of said ordinance. For use in this chapter, "debt coverage" shall mean that revenue collected specifically to meet the requirements of bonded debt coverage and state revolving loan coverage. C. The water and wastewater tax shall not be applied against that portion of the total gross revenue of the wastewater operating fund which constitutes payment by the Terrace Heights sewer district or the city of Union Gap of charges imposed under the 3-Party Agreement dated November 12, 2014. agrccmcnt dated February 23, 1976, or the settlement agreement dated September 9, 1997. 40 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 2nd day of December, 2025. ATTEST: Patricia Byers, Mayor Rosalinda Ibarra, City Clerk Publication Date: Effective Date: 41 ORDINANCE NO. 2025- AN ORDINANCE amending the City of Yakima Municipal Code Section 7.64.020 Water and Wastewater tax. WHEREAS, the City of Yakima is authorized by Title 35 RCW to acquire, construct, own, operate, and provide financing for water services construction, operation, management and delivery, and wastewater services construction, operation, management and delivery, and to establish rates, fees, and charges therefore; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the water and wastewater tax rate section of the Yakima Municipal Code, Section 7.64.020, is in the public interest and best interest of the City and its residents; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.64.020 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.64.020 Water and Wastewater tax. A. For the provision of water and wastewater services, there is levied a tax against the total gross revenue of the water operating fund and the wastewater operating fund derived from domestic water, wastewater, pretreatment, food processing wastewater, septage and exceptional wastewater disposal, diverted flow, and connection charges. The rate of the tax for calendar year 2026 and the following years shall be as follows: All service charges: B. 1. The water and wastewater tax shall not be applied against that portion of the total gross revenue of the wastewater operating fund which is collected as debt coverage for the wastewater debt. 2. Commencing on the effective date of the ordinance codified in this chapter, the water and wastewater tax shall not be applied against that portion of the total gross revenue of the water operating fund which is collected as debt coverage for water debt issued after the effective date of said ordinance. For use in this chapter, "debt coverage" shall mean that revenue collected specifically to meet the requirements of bonded debt coverage and state revolving loan coverage. C. The water and wastewater tax shall not be applied against that portion of the total gross revenue of the wastewater operating fund which constitutes payment by the Terrace Heights sewer district or the city of Union Gap of charges imposed under the 3-Party Agreement dated November 12, 2014. 42 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 2nd day of December, 2025. ATTEST: Patricia Byers, Mayor Rosalinda Ibarra, City Clerk Publication Date: Effective Date: 43