HomeMy WebLinkAboutR-2001-071 Taxation of Private Utilities; Calling for Special Election; Sports Complex; Kiwanis Park RESOLUTION R -2001-
A Resolution concerning taxation of private utilities, calling for a special election
to approve a 1% increase in the utility tax rate on electrical energy,
telephone, natural gas, and cellular /wireless telephone service •
businesses to pay for a publicly -owned Sports Complex at Kiwanis
Park.
WHEREAS, many leaders of the City of Yakima (the "City ") and the greater
Yakima community believe that development of a publicly owned Sports Complex
including without limitation baseball, softball, indoor hockey and indoor soccer
facilities such as those designed according to plans, and specifications available from
Big League Dreams USA, LLC, of Mira Loma, California, ( "Big League Dreams ") would
be a community asset. A Sports Complex at Kiwanis Park would provide the City and
the greater Yakima community with a unique tool to re- establish Yakima's historic
image as the sports capital of the Pacific Northwest and a significant vehicle for
enhancing economic development and tourism; and
WHEREAS, Big League Dreams is experienced in designing, managing, and
operating sports complexes (including baseball, softball, volley ball, inline hockey and
soccer facilities) in Cathedral City and Jurupa, Riverside County, California; and
WHEREAS, three major local service organizations, namely Kiwanis, Rotary,
and Lions, have already invested substantial time, energy, and money to acquire
necessary property adjacent to Kiwanis Park, and to introduce the possibility of a Sports
Complex such as those designed and operated by Big League Dreams to leaders of the
City of Yakima and the greater Yakima community; and
WHEREAS, City staff recommends that the most appropriate strategy to finance
a City -owned Sports Complex would be by the issuance of general obligation municipal
bonds to be repaid over approximately twenty five years by a voter - approved 1%
increase on utility taxes imposed pursuant to YMC 5.05.050; and
WHEREAS, the City currently imposes a tax on the gross income of the
following utility businesses at the following rates, as provided by the following sections
of the Yakima Municipal Code:
electrical energy 6% YMC 5.50.050(A)(1)
Telephone 6%
YMC 5.50.050(A)(2)
natural gas 4% YMC 5.50.050(A) (3)
cellular telephone I 6% YMC 5.50.050(A)(5)
and
WHEREAS, the natural gas business in Yakima is subject to a franchise
agreement with Cascade Natural Gas Corporation under which the City collects a 2 %'
franchise fee, which franchise fee is, pursuant to RCW 35.21.860, combined with utility
tax authorized by RCW 35.21.870, to establish the upper limit of utility tax which may,
be imposed under RCW 35.21.870 without approval of a majority of voters of the City;
and
WHEREAS, RCW 35.21.870 allows the City to impose a tax which exceeds 6.0%
on the utility businesses listed above if the rate in excess of 6.0% is first approved by a
majority of voters of the City voting on such a proposition; and
WHEREAS, it is in the best interests of the City and the greater Yakima
community that a special election be called in the City of Yakima to seek the voters`
approval of a 1% increase in the tax rates under YMC 5.50.050 on the utility businesses
of electrical energy, telephone service, natural gas energy, and cellular /wireless
telephone service; now therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
Section 1. It is in the best interests of the City to develop a publicly -owned
Sports Complex and to finance construction of such a Sports Complex by issuance of
general obligation municipal bonds to be repaid over approximately twenty five years
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with revenues derived from a 1% increase in the rates of taxes imposed pursuant to
YMC 5.05.050 on the utility businesses of electrical energy, telephone service, natural
gas energy, and cellular /wireless telephone service.
Section 2. Definitions.
"Business" means, collectively, electrical energy, telephone, natural gas, and
cellular telephone businesses. Business means any one of such Businesses.
"City" means the City of Yakima, Washington.
"Council" means the City Council of the City of Yakima.
"Tax" means, collectively, the taxes imposed by the City pursuant to RCW
35.21.870 under Yakima Municipal Code 5.50.050 on the privilege of conducting
an electrical energy, telephone, natural gas, or cellular /wireless telephone
business. -
Section 3. Tax Rate Increase. If a majority of voters of the City approves a 1%
increase in the utility tax on electricity, telephone, natural gas, and cellular telephone
business imposed. under YMC 5.05.050, the Council shall be authorized pursuant to
RCW 35.21.870 to increase by 1% the Tax on the privilege of conducting electrical
energy, telephone, natural gas, and cellular telephone business up to a total utility tax
7 %, including, in the case of natural gas pursuant to RCW 35.21.860, the 2% franchise
fee. The 1% increase in the rates of such Tax shall be enacted by the Council by
ordinance only if the 1% increase is approved by the voters.
The revenue derived from such voter - approved 1% increase in the rate of Tax
allowed under RCW 35.21.870(1) shall be applied to pay when due principal and
interest on general obligation municipal bonds issued to finance construction of a
Sports Complex. Revenue in excess of that required to pay principal and interest and
principal when due may be applied to early repayment of the principal balance
outstanding on such bonds, or to maintain and operate the Sports Complex in the event
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such expenses are necessary to secure and preserve the City's investment in the
facilities.
The 1% increase of utility tax rates imposed under YMC 5.50.050, if approved by
the voters and enacted by the City Council, shall expire when all general obligation
municipal bonds issued to finance construction of a Sports Complex are completely
redeemed and all the City's obligations under such bonds are satisfied.
Section 4. Special Election. The City Council hereby formally requests the
Yakima County Auditor to deem, as specified by RCW 29.13.020(2), an emergency to
exist, and to call a special election in the City of Yakima on the day of the next primary
election as specified by RCW 29.13.070, to submit to the qualified voters of the City of
Yakima the proposition of whether or not the City shall increase by 1% utility taxes on
electrical energy, telephone, natural gas, and cellular /wireless telephone businesses to
establish a publicly -owned Sports Complex at Kiwanis Park in the following form:
Proposition No. XXX
Yakima Sports Complex Utility Tax
Shall the City of Yakima increase by 1% the current tax rates on electrical energy,
telephone, natural gas, and cellular /wireless telephone businesses to establish a
publicly -owned Sports Complex at Kiwanis Park, all as more fully provided in
Resolution R- 2001 -72 of the Yakima City Council?
For the Proposition , Yes / /
Against the Proposition No / /
The City Manager and the City Clerk are authorized and directed to deliver a certified
copy of this resolution to the Yakima County Auditor and to take all other necessary
and proper steps to present to the Yakima County Auditor any and all documents the
Auditory may determine are necessary or convenient to set the special election and
accomplish the purposes of this resolution.
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ADOPTED BY THE CITY COUNCIL this 1 day of May, 2001.
ary Place, Mayor
ATTEST:
Karen S. Roberts, City Clerk
C: \word \sports complex \res - utility tax increase 4 -26 clean.doc Last printed 05/08/01 2:54 PM
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT 1
Item No.
For Meeting Of May 1, 2001
ITEM TITLE: Consideration of Legislation relating to Sports Complex Proposal
SUBMITTED BY: Dick Zais, City Manager •
CONTACT PERSON /TELEPHONE: Dick Zais / 575 -6040
SUMMARY EXPLANATION:
Pursuant to Council direction on April 24, 2001 re: the Sports Complex at Kiwanis Park, the
following legislation is submitted for Council consideration:
A. A Resolution calling for a September Primary Ballot proposition to
increase private utility taxes by 1% to help finance a Sports Complex at
Kiwanis Park
B. A Resolution authorizing an Interim Consulting Services Agreement with
Big League Dreams for the planning and design of a Sports Complex.
The fee for this agreement is $100,000 and will be shared equally by the
City and the Yakima Rotary Trust, et.a.
The City staff and Legal Department have jointly prepared this agreement with Big League
Dreams.
The resolution calling for a special election requests the County Auditor to "deem an
emergency to exist". This language is included to satisfy the statute that governs the
Auditor's action upon. the City's request for a special election (as opposed to a general
election ) : "The county auditor, ... upon request in the form of a resolution of the governing
body of a city ... , may, if the county auditor deems an emergency to exist, call a special ■
election in such city . . and for the purpose of such special election he or she may
combine, unite, or divide precincts.... RCW 29.13.020(2). The use of "emergency" in this
context should not be compared to or confused with the very unusual occasions when the
City Council may declare an emergency in order to make an ordinance effective
immediately.
Resolution two Ordinance Other (Specify) Interim Consulting Services Agreement
Contract Mail to (name and address): •
Phone:
Funding Source Parks Capital Fu . and Yakima Rotary Trust,- et.al.,
APPROVED FOR SUBMITTAL: - • ci tti Manaaer
STAFF RECOMMENDATION: Adopt Resolutions to call for a special election and to enter
into an agreement with Big League Dreams
BOARD /COMMISSION RECOMMENDATION: i•
COUNCIL ACTION: A. Resolution adopted. RESOLUTION NO. R- 2001 -72
B. Resolution adopted. RESOLUTION NO. R- 2001 -73