HomeMy WebLinkAbout1993-107 Cable television license fees 1'
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ORDINANCE NO. 93 - 107
AN ORDINANCE relating to license fees or taxes
upon persons in the business of furnishing
cable television service; adding a new
section 5.50.065 to the City of Yakima
Municipal Code; and providing for related
matters.
WHEREAS, the City of Yakima (° "City") is authorized to impose
a license fee or tax, in addition to franchise fees, upon persons
engaged in the business of furnishing cable television;
WHEREAS, the City deems it necessary and advisable to adopt
measures providing increased reventi from such a licence fee or
III
tax upon persons engaged in the business of furnishing cable
television service in order to provide for a portion of the cost
of funding a police station and legal center for the City, and to
provide for other needs of the City, with the expectation that
upon full payment of such police station and legal center costs,
including full retirement of any indebtedness incurred for such
purposes, the City will then take action to reduce the additional
revenue derived pursuant to this Ordinance; provided that such
license fee or tax is not unduly discriminatory against cable
operators or cable subscribers in light of the rates of license
fee or tax imposed upon persons engaged in the utility businesses
of water, sewer and refuse collection;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA:
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Section 1. The Municipal Code is hereby amended to add
a new Section 5.50.065 which shall read as follows:
"Commencing February 15, 1994, there is levied upon and
shall be collected from every person engaging in the
business of providing cable television service an annual
license fee or tax equal to five percent of the total gross
income derived from such business in the City of Yakima."
gection 2. This ordinance shall be effective thirty (30)
days after its passage, approval and publication as provided by
law and the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 23rd day
of November , 1993.
CITY OF YAKIMA, WASHINGTON
Mayor
ATTEST:
City Clerk
Publication Date 11 -26 -93
Effective Date 12 - 26 - 93
J. TI125730-63.0010N11J DOC
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT l�
Item No
For Meeting Of 11/23/93
ITEM TITLE Legislation Pertaining to Financing for the Police Station/
Legal Center Project
SUBMITTED BY Dick Zais, City Man.ger t\
John Hanson, Director o 'finance & Budget
Pleas Green, Police Chief d\
\ �►
CONTACT PERSON/TELEPHONE John I-1. - on / 575 -6070
SUMMARY EXPLANATION
At the November 16, 1993 City Council meeting, the City Council directed staff to return
with legislation to
1) Provide for a 5% tax on Cable Television, and
• 2) Authorize the issue of Limited Tax General Obligation Bonds
The attached ordinances provide the legislative action documents required.
The ordinance on Cable Television provides for a tax of 5% It further includes a
provision for the ordinance to become effective February 15, 1994, the date the Federal
(continued Qt )
Resolution X Ordinance _Contract Other (Specify)
Funding Source
APPROVED FOR SUBMITTAL \.�.-.
City Manager
STAFF RECOMMENDATION Pass Ordinances
BOARD /COMMISSION RECOMMENDATION
COUNCIL ACTION
TD -15 JH.7
1 11/22/93
Communications Commission (FCC) rate freeze on local cable company basic rates
terminates, thus allowing TCI the time to apply for the appropriate waiver on rates or rate
adjustment either locally or with the FCC to cover this increase in the cost of their
business. The ordinance also states the intent that the tax is for the purpose of providing
for the full retirement of the indebtedness after which time a future action would be taken
to reduce the tax.
The Bond Ordinance is written to allow for a debt issue of up to $6.8 million for 20 years.
Initially, as we discussed, $5.3 million was proposed for the Legal Center; $1.2 million is for
the local share of the Yakima Avenue /I -82 Interchange Project; and $100,000 to cover bond
issuance costs, or $6 6 million. However, the final project cost for the Police Station
remains uncertain (the final price for land and construction costs), and it is desirable to
maximize the total bond within all revenues. Therefore, if market interest rates remain at
current levels, some additional capital will be generated The estimated resources for
annual debt service are
ESTIMATED
DEBT SERVICE
POLICE STATION /LEGAL CENTER PROJECT. REVENUE
1 Utility Lid Increase -- $3,000 to $4,000 $ 77,000
2. In Lieu of Tax -- .5% 73,000
3 Cable TV Tax 260,000
4. Legal Department Lease 30,000
Total Police Station /Legal Center $440,000
I - 82 /YAKIMA AVENUE PROJECT
Street Operations -- Gas Tax $ 50,000
Arterial Street -- Gas Tax 70,000
Total I -82 /Yakima Avenue $120,000
Total Available $560,000
Included for your information is an example of the debt service schedule for an issue of
$6 6 million over 20 years The final schedule and principal and interest rates dates for
payment will be driven by the market and time of issue. As we have previously described
to you, it is more cost effective (a savings in bond issuances /legal costs of $20,000 to $25,000)
to issue the Police Station /Legal Center bonds and Yakima Avenue /I -82 at the same time
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