HomeMy WebLinkAbout04/14/2026 09.F. Ordinance amend_YMC 7.64.020 Water and Wastewater tax S
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.F.
For Meeting of: April 14, 2026
ITEM TITLE: Ordinance amending the Yakima Municipal Code Section 7.64.020
Water and Wastewater tax adding a 3% utility tax
SUBMITTED BY: *Craig Warner, Budget & Finance Director
SUMMARY EXPLANATION:
This ordinance implements a March 17th council-directed increase to water and wastewater tax rates to
establish a funding source to maintain operation of Fire Station 92 until such time as other funding may
be identified. The City of Yakima's adopted 2026 budget required closure of Fire Station 92. In January
2026, City Council authorized one-time funding from reserves to continue Station operations through
August 2026. The proposed utility tax of 24% on water, sewer, refuse, and stormwater is estimated to
provide $1,800,000 of additional revenue, sufficient to operate Fire Station 92.
ITEM BUDGETED: No
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Pass Ordinance.
ATTACHMENTS:
Ordinance re amend YMC 7.64.020.24 water-wastewater.docx
Ordinance re amend YMC 7.64.020.pdf
107
ORDINANCE NO. 2026-
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: 24%
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
agreement dated February 23, 1976, or the settlement agreement dated September
9, 1997.
108
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 7th day of April, 2026.
ATTEST: Matt Brown, Mayor
Rosalinda Ibarra, City Clerk
Publication Date:
Effective Date:
109
ORDINANCE NO. 2026-
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
agreement dated February 23, 1976, or the settlement agreement dated September
9, 1997.
110
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 7th day of April, 2026.
ATTEST: Matt Brown, Mayor
Rosalinda Ibarra, City Clerk
Publication Date:
Effective Date:
111