HomeMy WebLinkAbout04/14/2026 09.D. Proposed 3% Utility Tax - O F`Yg`°!
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.D.
For Meeting of: April 14, 2026
ITEM TITLE: Proposed 3% Utility Tax
SUBMITTED BY: Gary Bellew
SUMMARY EXPLANATION:
At their March 17, 2026 meeting Council passed a motion directing staff to: ...prepare an ordinance
amending the City of Yakima utility tax rate by 3%, to include Nob Hill Water, with additional revenue
dedicated to funding the continued operation of Fire Station 92, and place ordinance on the next City
agenda for action...
The attached presentation will be made prior to four separate agenda items. Each item a proposed
ordinance to increase the utility tax rate to a total of 24%.
ITEM BUDGETED: No
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: No action
ATTACHMENTS:
Propsed 3% Utility Increase.pptx
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Presented by: `� _ - - '
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Craig Warner, Director of Finance & Budget I Ea A .
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Gary Ballew, Acting 4 ' ..... ...,.„ ! .4-,. ;,, r . :"
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Overview
At their March 17, 2026 meeting Council passed a motion directing staff to:
. . .prepare an ordinance amending the City of Yakima utility tax rate by 3%, to
include Nob Hill Water, with additional revenue dedicated to funding the continued
operation of Fire Station 92, and place ordinance on the next City agenda for
action. . .
Tonight's Meeting
Presentation on 3% Utility Tax
Utility Taxes
Current Utility Tax Rates
Proposed Utility Tax Rates
Revenue Based on Historical Collections
Ordinance amending the water business tax (Nob Hill Water)
Ordinance amending the water and wastewater tax
Ordinance amending the refuse tax
Ordinance amending the stormwater tax
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Utility Taxes
Impacted Utilities:
Water/Private Water — Base Fee plus Consumption
Wastewater — Base Fee plus Consumption
Refuse - Consumption
Stormwater — Lot Size/Imperviable Surface
Generates approximately $600,000 per 1 % imposed
Water/Wastewater/Refuse:
Average Water/Wastewater/Refuse bill is approximately $200 every two months
$200 at 3% is $6.00 billed 6 times per year is $36.00 per year
Stormwater:
Billed annually and dependent on Lot Size/Imperviable Surface
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Per Ordinance
General Clean Capital
Fund Cities Pools Theatre Total
Water ---21 % 21 % Current Utility°
Wastewater 21 /° - - - 21 %
Refuse 16% 5% - - 21 % Tax Rates
Stormwater 16% - 5% - 21 %
Private Water 20% - - - 20%
Private Garbage 16% 9% - - 25%
Electric 6% - - - 6% This chart shows the Current
Gas 6% - - - 6% Utility Rates and Allocation of
those taxes
Cable TV 5% - - 1 % 6%
Cellular 6% - - - 6%
Telephone 6% - - - 6%
Brokered Natural
Gas 6% - - - 6%
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Proposed Ordinances
General Clean Capital Proposed Utility
Fund Cities Pools Theatre Total
Water 24% - - - 24% Tax Rates
Wastewater 24% - - - 24%
Refuse 19% 5% - - 24% This chart shows the
Stormwater 19% - 5% - 24% Proposed Utility Rates and
Allocation of those taxes for
Private Water 24% - - - 24% only utilities that would
change
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$ 2023 $ 1% $ 2024 $ 1% $ 2025 $ 1% Historical 1_itility
Water 2,304,239 115 212 2 368 774 118 439 2,580,738 129 037
$ , $ , $ , $
Wastewater 4,855,904Tax Collections
242,795 4,838,313 241,916 5,160,118 258,006
$ $ $ $ $ $
Refuse 1,470,316 98,021 1,530,647 102,043 1,548,787 103,252
$ $ $ $ $ $
Stormwater 613,330 40,889 633,218 42,215 633,218 42,215
Private $ $ $ $ $ $
Water 1,090,645 54,532 1,240,099 62,005 1,242,955 62,148 This chart shows the total
$ $ $ collects for the Utility Taxes
551,449 566,617 594,658
proposed for change from
2023 to 2025 and the
amount 1 % would generate
in each year.
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Questions &
Discussion
January 6,2026,City Council
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