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Home My WebLink About1993-110 public services and utilities ORDINANCE NO. 93- 11 o AN ORDINANCE relating to public services and utilities; increasing consumption charges, and amending Subsection 7.60.020A of the City of Yakima Municipal Code. WHEREAS, the 1993 Washington State Legislative session passed revenue enhancement actions designed to relieve the state of projected revenue shortfalls, one of which revenue enhancers was removal of the exemption of state excise tax on utility revenue; and WHEREAS, the Legislature mandated that this cost be passed through to utility customers, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1 Subsection 7.60 020A of the City of Yakima Municipal Code is hereby amended to read as follows: "7.60.020 Sewer Service Charge. A. Rates -- Minimum Charge. (1) Commencing January 1, 1990, there shall be charged to and • collected from all premises within- the city served by the city sewer system a sewer service charge composed of a ready -to -serve charge and a volume charge based on domestic water consumption; provided, in no event shall the total sewer service charged be less than five dollars and seventy -three cents ($5 73) per month for premises inside the city limit boundary nor less than eight dollars and sixty cents ($8.60) per month for premises outside the city limit boundary. (a) Sewer Service Charge -- Schedules The sewer service charge shall be calculated and charged according to the following schedules: (i) Ready -to -serve charge. For all customers other than multiple -unit residential customers: Monthly Bimonthly Water Meter Charge (effective Charge (effective Size (Inches) January 1, 1990) January 1, 1990) 3/4 $ 5.73 $ 11.46 1 9.92 19.84 1 -1/2 16.88 33.76 2 25.22 50.44 3 44.71 89.42 4 72.52 145.04 6 142.11 284.22 • 8 253.45 506.90 10 406.53 3 813.06 Page 1 (Word/sewer rates ac For multiple -unit residential customers, the monthly ready -to- serve charge shall be two dollars and ninety -six cents ($2 96) per account plus two dollars and seventy -eight cents ($2.78) per dwelling unit effective January 1, 1990. (b) Volume Charge: For all customers, the volume charge shall be one dollar and one cent ($1.01) per one hundred cubic feet of water consumption effective January 1, 1990. (2) Rates -- Minimum Charge. Commencing January 22, 1992, there shall be charged to and collected from all premises within the city served by the city sewer system a sewer service charge composed of a ready -to -serve charge and a volume charge based on domestic water consumption, provided in no event shall the total sewer service charged be less than six dollars and twenty -four cents ($6.24) per month for premises inside the city limit boundary; nor less than nine dollars and thirty -six cents ($9 36) per month for premises outside the city limit boundary until August 26, 1992 when such minimum charge for premises outside city limit boundary shall be ten dollars and ninety - eight cents ($10.98) (a) Sewer Service Charge -- Schedules. The sewer service charge shall be calculated and charged according to the following schedules: (i) Ready -to -serve charge. For all customers other than multiple -unit residential customers: Monthly Bimonthly Water Meter Charge (effective Charge (effective Size (Inches) January 22, 1992) January 22, 1992) 3/4 $ 6.24 $ 12.47 1 10.79 21.58 1 -1/2 18.36 36.72 2 27 43 54 87 3 48.63 97.26 4 78.88 157.76 6 154.58 309.12 8 275.68 551.35 10 442.19 884.39 For multiple -unit residential customers, the monthly ready -to- serve charge shall be three dollars and twenty -two cents ($3.22) per account plus three dollars and three cents ($3 03) per dwelling unit effective January 1992. (b) Volume charge: For all customers, the volume charge shall be one dollar and ten cents ($1.10) per one hundred cubic feet of water consumption effective January 22, 1992. Commencing December 31 1993. this volume charge is changed and shall thereafter be one dollar pnd eleven and one -half cents (51.1151 per one hundred cubic feet of water consumption." Page 2 (1s)ord /sewer rates ac 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 day of November 1993. A TTEST: Mayor f l-v•- > Crw� City Clerk Publication Date: 1 2 - 3 - 93 Effective Date: 1- 2 4 460 Page 3 (1a)ord /sever rates se INFORMATION. ITEM (For the April 20, 1993 City Council Session) TO Honorable Mayor, Members of City Council, and City Manager FROM. Chris Waarvick, Wastewater Superintendent Clara Sander, Finance Analyst SUBJECT. Impact of State Senate Budget Proposal on Excise Tax Exemption for Revenues for Capital Purposes The 4/5/93 AWC Action Call newsletter contained a listing of Senate Budget Proposal major revenue "hits" for utilities. These included loss of yearly infusion of state real estate excise tax to the Public Works Trust Fund, $2 per year charge per water system hook -ups, reduction in Centennial Clean Water Funding, substantial increase in water quality monitoring fees, and repeal of exemption for state taxes on utility revenue designated for capital purposes. The attached worksheet demostrates the impact on the sewer utility of loss of — such exemption based on 1992 actual figures. The repeal of the exemption would have cost the City $39,500 in additional revenue transfer to the state This translates into an approximate 1% increase to sewer rates to "pass through" to the public. Financial analysis of the other major "hits" would demostrate similar or greater cost impacts to the City. • 1992 SEWER EXCISE TAX COMPARISONS 1992 EXCISE TAX WtTNOItT DEDUCTIONS PLU RATE INCREASE FOR SEWER SERVICE in Sews► Sewer Total Sewer Sewer Total ".r; Ser' ce Collection Tax Pell Service Collections Tax Paid fair: 9 Rare .03852 :t Rare .03852 _ lnererer. „, ONUARY 3,841 12 2,381 73 6,222.85 8,284.49 3,661.25 11,945.74 , ...4,;.5022:80. POIRUARY 2,707.52 1,641.02 4148.54 6174.77 2,920.54 9,59611 ,, AWN 3,938.06 2,405.33 6,343.39 8,422.14 3,684.85 12,106.99 6383.84 APRIL 4,702.94 1,700.80 6,403.74 9,508.28 2,980.33 12,488.61 .6, 4 8 ? MW 3,392.85 2,088.64 6,481.39 7,647.92 3,368.06 11,015.98 <, ' 6164,50 X: , .8 5,238.87 3,314.55 8,553.42 10,413.90 4,594.06 15,007.96 > ' L4 9E :54 JULY 4,881.56 2,947.41 7128.97 9,761.88 4,22612 1318810 ; > :r . 55:8.3 . i � ._ AUGUST 3,063.50 1,986.77 5,030.27 7,180.25 3,246.28 10,426.53 "'ti9826 p SIMMER 5121 14 3100.71 8121.85 10186.07 4,58021 1418628 ” :8;344 ;:43 COMER 5,281 17 3,275.93 8,557 10 1012912 4155.44 14184.76 `. 1t30 it NOVENEER 3159.27 2217.02 5176.29 8,188.55 3,56911 11,758.46 :541 s> .. Y [E8MER 4,52013 2,809.22 713015 9286.18 4,105.25 13191.43 .f., e;061 Alt TOTALS 50148.83 30049.03 80,597.86 10618335 45,493.10 151,576.85 -70 ?13 10/01/93 CS 0 lio ail .. i ' a a BUSINESS OF THE CITY COUNCIL iii YAKIMA, WASHINGTON AGENDA STATEMENT Item No._ I For Meeting Of 11 /30/93 ITEM TITLE. Consideration of Legislation to Adjust Sewer Rates as Mandated by Washington State Legislature SUBMITTED BY: Chris Waarvick, Wastewater Superintendent CONTACT PERSON /TELEPHONE: Chris Waarvick /575 -6078 SUMMARY EXPLANATION The 1993 Washington State Legislative session considered and passed a number of revenue enhancement actions designed to relieve the State of projected revenue shortfalls. One of those actions was to remove the exemption of state excise tax on utility revenue designated for capital purposes. A "heads -up" memorandum was transmitted to City Council on April 20, 1993 (see attached) discussing this issue. In addition, and not known at the time, the State increased the base rate on sewer service from 0.015% to 0 0213 %, a 42% increase. Using 1992 as a base year, this adjustment is costing the City's wastewater utility an additional $71,000 per year The attached worksheet prepared by the Finance Department illustrates the financial analysis. The legislature mandated this cost to be passed on to municipalities and utility customers. . Accordingly, an increase in the sewer volume rate of 1.5 cents per unit of consumption is submitted for your action to meet this State mandate. This is approximately a 1.36% increase in volume charge from $1 10 to $1.115 per unit of consumption. This generates ( Continued ) Resolution _Ordinance X Contract _ Other (Specify) Tax Analysis Funding Source Sewer Rates APPROVED FOR SUBMITTAL City Manager STAFF RECOMMENDATION Enact rate ordinance. BOARD /COMMISSION RECOMMENDATION. COUNCIL ACTION 0 excise tax loss of exemption November 19, 1993 cw approximately $65,000 with the remaining $6,000 coming from direct wholesale charges from wholesale customers. Only the volume element (consumption charge as opposed t the ready to serve element) of the sewer rate is recommended to be adjusted for the purposes outlined above.A more detailed sewer rate and charge analysis is being prepared for review in 1994 This more formal and complete analysis is required by EPA grant and Local agreement provisions. The basic format of the 1991 Cost of Service Study is being used. The intention of the 1991 study was not only to provide recommendations for that time but to use the base data and report structure in future analyses. • otdse tax loss of exemption Urnrmnhnr 19 . 1993 cur