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HomeMy WebLinkAbout1997-061 Tax on wastewater • ORDINANCE NO. 97-4 1 An Ordinance of the City of Yakima providing for a tax upon the provision of wastewater and domestic water, and refuse collection and disposal services; amending Chapter 7.64; and providing for • related matters. WHEREAS, the City of Yakima, Washington ( "City") now owns and operates a wastewater system and a domestic water system and a refuse utility pursuant to Title 35 RCW; and WHEREAS, the City is authorized to impose a tax upon the right to do business, based upon utility revenues, pursuant to RCW 35.22.280(32); and WHEREAS, the City Council finds that the classifications established by this ordinance are reasonable and the tax rates are fair; and WHEREAS, the City Council finds that the revenues that are expected to be generated by this ordinance are necessary for the support of general government; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1, Chapter 7.64 of the Municipal Code is amended as follows: CHAPTER 7.64 WATER, WASTEWATERS -EWER AND REFUSEGARBAGE REVENUE TAX Sections: 7.64.010 Purpose and Findings 7.6 4 .0200-1-0 Water and wastewater sower tax. 7.6 4 .0 3 00-2-0 Refuse tax. 7.6 4.0 4 00-3 -0 When payable. 7.6 4.0 5 00-4 -0 Source of taxes. - 7.64.010 Purpose and Findings A. Purpose. It is the purpose of this chapter to impose a fair, just, and reasonable tax upon the provision of wastewater, domestic water, and refuse collection and disposal services, as measured by revenues billed to customers of the utilities that provide those services. B. Findings. It is equitable that all rates, fees, and charges for connection to, use of, or other services provided by the city's water and wastewater systems and refuse collection and disposal service be subject to city taxes. t - 1 - October 2, 1997 7.6 4.0 2 00-4 -0 Water and wastewater-- s- ew-e -r tax. • A. Purpose. 11 is the purpose of this section to impose a tax on scwcr service B. Findings. 1. It is equitable that all rates and chargcs for use of thc city's .sewerage system be 2. It is necessary to incrc\ase tax revenues due to an incr scd demand for oity cervices. 3. Ards receiving wholesale sewer service generally receive some benefit from the ccrvicc. C. Water Scwcr Tax. A.4-. - - - • . ... - - - - - - - - - - - For the provision of water and wastewater services, there is levied a tax against the total gross revenue of the water sewer fundwater operating fund and the wastewater operating fund derived from receipts fef- domestic water, wastewater, 4.: - - - - - , - - - . '. pretreatment, food processing wastewater, ,Gcwcr, industrial s septage and exceptional wastewater disposal_ diverted flow, and connection charges. The rates of the tax for the calendar years 1991 and 1992 shall be -as_ follows: Wholesale service charges 1 0% All other service charges 1 2% The rates of the tax for thc calendar year 1393 shall be as follows: Wholesale service charges 1 0 All other service charges 1 4% The rates of the tax for calendar year 1994 and the following years shall be as follows: Wholesale service charges 1 0% All other service charges 1 4% B.2-. 1. The water and wastewater - sewer tax shall not be applied against that portion of the total gross revenue of the water sewer f un d wastewater operating fund which is collected as debt coverage for wastewater sewer -debt. - 2 - October 2, 1997 ? i ® 2. Commencing on the effective date of this ordinance, the water and wastewater tax shall not be applied against that porton o portion the total _gross revenue of the water operating fund which is collected as debt coverage for water debt issued after the effective date of this ordinance. For use in this chapter, debt coverage" shall mean that revenue collected specifically to meet the requirements of-primacy-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. 7.6 4.0 3 00-2 -0 Refuse Tax. ( 1) Commencing January 1, 1 988, end effective until December--3-1-r-1-9921--there—is s ccrvicc charges- ( 2 ) Commencing January 1, 1993, and effective until December 31, 1093, there is III charges. -- - . - . - •. . ' . - - - For the provision of refuse services, there is levied a tax againstat the rate of ten percent of the total gross revenue of the - municipal- refuse fund derived from receipts for refuse collection and disposal service charges. Commencing January 1, 1994, and effective thereafter, the rate of the tax shall be 10 %. . 7.6 4.0 4 00-3 -0 When payable. The taxes provided by this chapterprepe-sed-tier-eby shall be due and payable on or before the fifteenth day of each month on the basis of gross revenues billed for the last preceding calendar month. 7.6 4.0 5 00 -4-0 Source of taxes. The taxes provided by this chapter shall be paid by a transfer of funds from the wastewater operating fund, the water operating fund,watcr sewer fund and the refuse ge fund, respectively, to the current expense fund of the city of Yakima, and the city treasurer finance director is hereby authorized and directed to make such transfers each month as are necessary to accomplish payment and collection of the taxes levied by this chapter. • -3 _ October 2, 1997 Section 2. This ordinance shall be effective thirty (30) days after its adoption and • publication as provided by law. PASSED BY THE CITY COUNCIL, signed and approved this ! day of oc - [ 3 R , 1997. CITY OF YAKIMA, WASHINGTON r B n ce4ne - Mayor Proem ATTEST: City Clerk Publication Date: J( - (0--97 Effective Date: ___J. — c 1 - 97 - 4 - October 2, 1997 • CERTIFICATE I, the undersigned, clerk of the City of Yakima, Washington (the "City ") and keeper of the records of the City Council (the "Council ") DO HEREBY CERTIFY: 1. That the attached ordinance is a true and correct copy of Ordinance No. 9 el of the Council (hereinafter called the "Ordinance "), duly passed at a regular meeting thereof held on the Tot day of Oc7 , 1997. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been duly fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City this 7 ' day of 6 , 1997. City Clerk - 5 - October 2, 1997 • • CHAPTER 7.64 [As it would appear as amended.] WATER, WASTEWATER AND REFUSE REVENUE TAX Sections: 7.64.010 Purpose and Findings 7.6 4.0 2 0 Water and wastewater tax. 7.6 4.0 3 0 Refuse tax. 7.6 4 .0 4 0 When payable. 7.6 4.0 5 0 Source of taxes. 7.64.010 Purpose and Findings A. Purpose. It is the purpose of this chapter to impose a fair, just, and reasonable tax upon the provision of wastewater, domestic water, and refuse collection and disposal services, as measured by revenues billed to customers of the utilities that provide those services. • n cha rges for connection to, use of B. Findings. It is equitable that all rates, fees, and of, or other services provided by the city's water and wastewater systems and refuse collection and disposal service be subject to city taxes. • 7.6 4.0 2 0 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 rates of the tax for calendar year 1994 and the following years shall be as follows: - Wholesale service charges 1 0% All other service charges 1 4% 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. - 1 - October 2, 1997 2. Commencing on the effective date of this ordinance, 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 this 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. 7.64.030 Refuse Tax. For the provision of refuse services, there is levied a tax against the total gross revenue of the refuse fund derived from refuse collection and disposal service charges. Commencing January 1, 1994, and effective thereafter, the rate of the tax shall be 10 %. 7.64.040 When payable. The taxes provided by this chapter shall be due and payable on or before the fifteenth day of each month on the basis of gross revenues billed for the last preceding calendar month. 7.64.050 Source of taxes. The taxes provided by this chapter shall be paid by a transfer of funds from the wastewater operating fund, the water operating fund, and the refuse fund, respectively, to the current expense fund of the city of Yakima, and the city finance director is hereby authorized and directed to make such transfers each month as are necessary to accomplish payment and collection of the taxes levied by this chapter. • - 2 - October 2, 1997 a ADMINISTRATION • 410 CITY MANAGER'S OFFICE -- Proposed Dept. /Div. Policy Issue Funding Request/Justification Source Personnel Non - Personnel Council Decision -- City Manager Vehicle General Annualized Allowance Adjustment Fund $1,680 • PURCHASING -- Proposed - Dept./Div. Policy Issue Funding Request/Justification Source Personnel Non - Personnel Council Decision -- Increase Part -Time DA II General $11,900 Position from 50% to 100% Fund • WATER/IRRIGATION — Proposed • Dept. /Div. Policy issue Funding Request/Justification Source Personnel Non - Personnel Council Decision -- Add 1 DA II Position Irrigation $29,000 Operating Fund , -- Water Cost of Service adjust- Water $440,000 Defer to January/ ment — provides for Comp Plan Operating/ (10 months) February 1997 improvements and staff to Capital provide for viable Water System -- Staffing to Meet Increased Water $56,500 Defer to January/ Service Demands -- Operating (10 month — February 1997 Add 2 Waterworks Specialist I Fund 1997 only) Positions (tied to Cost -of- Service Annualized Revenue) $67,200 ^ $48,500 ( -- Council Added Policy Proposal; existing b Debt �� �� y[ Request to extend limit on Water Water In Lieu Tax on Debt Service Operating Service Coverage previously adopted for (reduce Water r1(j 7 ` l C7 , t L-/_) • Wastewater Debt Service Operating J J Expense and General Fund • Revenue) TB PI /97 Budget Wrap -Up 10 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT �� Item No. For Meeting Of 10/ '1/97 ITEM TITLE: An Ordinance amending Chapter 7.64 YMC relating to Water, Wastewater and Refuse • SUBMI'TT'ED BY: Dick Zais, City Manager John Hanson, Finance Director Chris Waarvick, Wastewater Superi dent Dueane Calvin, Water Superinten' nt Nancy Gaudette, Refuse Manage CONTACT PERSON/TELEPHONE: John Hanson/5 +5 -61:, SUMMARY EXPLANATION: The purpose of this ordinance is threefold: 1) To complete changes in the water tax ordinance relating to water debt • coverage charges (new YMC ref. 7.64.030) in accordance with a 1997 policy issue pertaining to same. 2) Modify this chapter of the Code to conform to the changes necessitated by the negotiated wastewater Settlement Agreement between the City of Yakima, Terrace Heights Sewer District and the City of Union Gap. continued next page Resolution _ Ordinance X Contract _ X Other (Specify) Budget wrnn —up excerpt Funding Source APPROVED FOR SUBMITTAL: C " - kC City Manager STAFF RECOMMENDATION: Staff recommends passage of ordinance. BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: • • • continued: 3) Other minor changes to this YMC Chapter to reflect current City operations. For example, the Code previously referred to the City's Water /Sewer Fund, a situation which now functions as the Water/Wastewater Fund. These are all administrative changes. 4) Enclosed please find a copy of the Ordinance as it would appear after enactment. Also enclosed, is a copy showing all deletions and additions.