HomeMy WebLinkAbout2011-059 "In Lieu" Utility TaxORDINANCE NO. 2011 -59
AN ORDINANCE regarding "in lieu" utility tax revenue; increasing the "in lieu" utility tax
rates for water, wastewater and refuse and adding an "in lieu" utility tax
assessment for stormwater assessments in the amount of six percent per
annum per utility; and amending Chapter 7.64 and Sections 4.16.180 and
5.50.060 of the Yakima Municipal Code.
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Chapter 7.64 of the Yakima Municipal Code is amended to read as
follows:
Chapter 7.64
WATER, WASTEWATER, STORMWATER AND REFUSE REVENUE TAX
Sections:
7.64.010
Purpose and findings.
7.64.020
Water and wastewater tax.
7.64.030
Refuse tax.
7.64.040
Stormwater tax
7.64.050
When payable.
7.64.060
Source of taxes
Section 2. Section 7.64.020 of the Yakima Municipal Code is 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 2012 and the following years shall be as follows:
All service charges 20%
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.
Section 3. Section 7.64.030 of the Yakima Municipal Code is amended to read as
follows:
7.64.030 Refuse tax.
For the provision of refuse services, there is levied a fifteen(15) percent tax against the total
gross revenue of the refuse fund derived from refuse collection and disposal service charges.
Section 4. Section 7.64.040 is added as a new Section to read as follows:
7.64.040 Stormwater Tax.
For the provision of stormwater compliance and stormwater collection services there is levied a
tax against the total assessments collected from annual stormwater assessment charges.
Commencing January 1, 2012, and effective annually thereafter, the rate of the tax shall be six
(6) percent.
Section 5. Section 7.64.040 of the Yakima Municipal Code is amended to read as
follows:
7.64.050 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.
Section 6. Section 7.64.050 of the Yakima Municipal Code is amended to read as
follows:
7.64.060 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, stormwater operating fund and the refuse fund,
respectively, to the current expense fund of the city of Yakima, and the city finance director is
authorized and directed to make such transfers each month as are necessary to accomplish
payment and collection of the taxes levied by this chapter.
Section 7. Section 4.16.180 of the Yakima Municipal Code is amended to read as
follows:
4.16.180 Collection of garbage in business class— License and tax — Regulations.
A. License Required. No person, association or corporation shall engage in the business of
collecting and hauling garbage, refuse or debris within the city or in gathering the same within
the city for disposal at some point or area outside of the city without obtaining a license therefor
and complying with the regulations of this section.
B. Application— Fee —Bond. Written application for the licenses or renewals thereof on forms
provided by the city clerk shall be accompanied by payment of a yearly basic license fee of ten
dollars, payable on or before January 1 st of each year. The term of the license shall commence
on January 1st of each year. In the event of an application for a license for a period of less than
one year, the basic fee shall nevertheless be paid in full. The basic fee of ten dollars shall be
credited against the license tax provided for by subsection C of this section. Upon notification to
the city clerk, licenses may be transferred to purchasers or assigns of the licensee's equipment
or business. No basic fee shall be refunded.
At the time of making application, the applicant shall furnish a bond in the amount of five
thousand dollars, issued by a surety company authorized to do business in the state of
Washington, the form of which bond shall be conditioned on the faithful compliance by the
applicant with the provisions of this chapter, and further conditioned that the collection,
transportation and disposal of garbage, refuse and debris shall be carried on by applicant
according to the laws of the state of Washington, the ordinances of the city of Yakima and the
rules and regulations of the Yakima County Health District.
C. License Tax Imposed— Amount.
(1) Commencing February 1, 1991, and effective until December 31, 1992, there is
levied upon every person, association or corporation holding a license for the collection
and hauling of garbage, refuse or debris within the city or in gathering the same within the
city for disposal at some point or area outside of the city, a tax for the privilege of doing so,
such tax to be equal to eight percent of the cash receipts from all customers within the city
served by the license holder. Such tax shall be due and payable in quarterly installments,
for quarters ending with the last days of March, June, September and December of each
year, and remittance therefor shall be made on or before thirty days after the end of the
quarterly period for which it is due.
(2) Commencing January 1, 1993, and effective until December 31, 1993, there is levied
upon every person, association or corporation holding a license for the collection and
hauling of garbage, refuse or debris within the city or in gathering the same within the city
for disposal at some point or area outside of the city, a tax for the privilege of doing so,
such tax to be equal to ten (10) percent of the cash receipts from all customers within the
city served by the license holder. Such tax shall be due and payable in quarterly
installments, for quarters ending with the last days of March, June, September and
December of each year, and remittance therefor shall be made on or before thirty days
after the end of the quarterly period for which it is due.
(3) Commencing January 1, 1994 and effective thereafter, there is levied upon every
person, association or corporation holding a license for the collection and hauling of
garbage, refuse or debris within the city or in gathering the same within the city for
disposal at some point or area outside of the city, a tax for the privilege of doing so, such
tax to be equal to ten (10) percent of the cash receipts from all customers within the city
served by the license holder. Such tax shall be due and payable in quarterly installments,
for quarters ending with the last days of March, June, September and December of each
year, and remittance therefor shall be made on or before thirty days after the end of the
quarterly period for which it is due.
(4) Commencing January 1, 2012 and effective thereafter, there is levied upon every
person, association or corporation holding a license for the collection and hauling of
garbage, refuse or debris within the city or in gathering the same within the city for
disposal at some point or area outside of the city, a tax for the privilege of doing so, such
tax to be equal to sixteen (16) percent of the cash receipts from all customers within the
city served by the license holder. Such tax shall be due and payable monthly and
remittance therefore shall be made on or before thirty days after the end of the last
preceding calendar month for which it is due.
D. Manner of Payment —Audit of Records of Licensee. Payment of the tax imposed by
subsection C of this section shall be made to the office of the treasurer of the city of Yakima
accompanied by a report of the licensee of the amount of gross cash receipts from customers
within the city for the period for which the tax is paid, which report shall contain such information
as may be deemed necessary or desirable by the treasurer to administer the collection of such
tax. License holders shall afford access at all reasonable times to their books and records for
inspection and audit by the city finance officer or other auditor appointed by the city manager or
engaged by the city for that purpose, for the purpose of verifying the accuracy of reports and the
amounts of tax payments made to the city treasurer pursuant to this section.
E. Rules and Regulations. There are established the following rules and regulations for the
collection and hauling of garbage, refuse and debris in the business classification, as defined by
Section 4.16.140:
1. The beds of all trucks used by licensee within the city shall be of metal construction
and completely watertight. Truck beds must be kept clean and free of any accumulation of
garbage or other refuse.
2. All licensed collectors, after loading trucks, must leave all alleys and streets in a clean
and sanitary condition. Such collectors shall not permit any material to be dropped or
spilled from trucks in or upon any of the public ways of the city.
3. The charge for collection in the business class shall be paid by the owner or person in
charge of the place from which such garbage or refuse shall be removed. Such charge
shall be agreed upon between such person and the collector. Each licensed collector shall
furnish to the city of Yakima semiannually a list of all accounts and frequency of collection
thereof.
4. The owner or person in control or charge of each building in the business class shall
maintain for refuse storage and disposal metal containers of good and watertight
construction with no dents of not more than thirty - gallon capacity with a handle on each
side thereof and tightfitting lids, the gross weight of which container when full shall not
exceed seventy -five pounds. In lieu of such containers, the premises may be served with
dropoff bins; provided, bins with a capacity of 1.5 cubic yards (40.5 cubic feet) or greater
shall not be stored within five feet of combustible walls, openings or combustible roofline
eaves.
Refuse containers shall be placed on the premises in such a manner and at such a location so
as to be readily accessible for collection and shall not be kept on the street, alley, sidewalk or
other public place; provided, that garbage cans or other approved containers may be placed on
a platform or rack in the alley in back of the premises in a location approved by the code
administration manager with the lids for the cans or containers chained and locked or otherwise
secured to the platform or rack. Lids shall not be removed except while refuse is being placed in
or removed from the receptacles.
F. Revocation of License. A license issued pursuant to this section is subject to revocation by
the city manager on a hearing conducted by him, after notice of such hearing given to the
licensee no less than five days prior to the date of such hearing, on the finding by the city
4
manager that a licensee has failed to comply with any provision of this section or with any city
ordinance applicable to the conduct of the business of the licensee. In the event of the
revocation of a license by the city manager as provided herein, the licensee shall have the right
to a hearing on the matter by the city council on the filing with the city clerk of a written notice of
appeal within ten days after the city manager's revocation of the license. The decision of the city
council on such appeal shall be final and conclusive.
G. Purpose of Section. This section is enacted to provide regulation of the business of
garbage collection within the city and to provide revenue for the operation of necessary city
functions.
Section 8. Section 5.50.060 of the Yakima Municipal Code is amended to read as
follows:
5.50.060 Water businesses.
There is levied and shall be collected as an annual license fee or tax against persons on
account of business activities, in the amount to be determined by application of the rates herein
prescribed, as follows:
1. Commencing January 1, 1990, and effective until December 31, 1990, upon every
person engaging in or carrying on the business of selling or furnishing potable water, a fee
or tax equal to six percent of the total gross revenue derived from such business in the city
of Yakima.
2. Commencing January 1, 1991, and effective until December 31, 1992, upon every
person engaged in or carrying on the business of selling or furnishing potable water, a fee
or tax equal to twelve percent of the total gross revenue derived from such business in the
city of Yakima.
3. (a) Commencing January 1, 1993, and effective until December 31, 1993, upon every
person engaged in or carrying on the business of selling or furnishing potable water, a
fee or tax equal to fourteen percent of the total gross revenue derived from such
business in the city of Yakima.
(b) Commencing January 1, 1994, and effective thereafter, upon every person
engaged in or carrying on the business of selling or furnishing potable water, a fee or
tax equal to fourteen percent of the total gross revenue derived from such business in
the city of Yakima.
4. Commencing January 1, 2012, and effective thereafter, upon every person engaged
in or carrying on the business of selling or furnishing potable water, a fee or tax equal to
twenty (20) percent of the total gross revenue derived from such business in the city of
Yakima.
The city of Yakima shall not be subject to the license fee or tax imposed by this section.
Section 9. If any section, subsection, paragraph, sentence, clause or phrase of this
ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect
the validity of the remaining portions of this ordinance.
Section 10. 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 6th day of December,
2011.
ATTEST:
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City Crk,-
* SEAS- i
Publication Date: December 9, 1 q
Effective Date:. January 8, 2012 ��Htt�,�
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Micah Cawle , Mayor
•
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
ITEM TITLE:
SUBMITTED BY:
CONTACT PERSONITELEPHONE:
SUMMARY EXPLANATION:
Item No.
For Meeting of: December 6, 2011
Ordinance to increase "in lieu" utility tax rates for water, wastewater, and
refuse utilities by six percent per year, and to establish an annual six percent
"in lieu" utility tax on stormwater assessments.
Jeff Cutter, City Attorney
Jeff Cutter, City Attorney /(509) 575 -6030
During the City Council public hearing held November 29, 2011 for Council consideration and public input regarding the
imposition of a 6% increase in the "in lieu" utility tax, the City Council directed the legal department to prepare an
ordinance that would increase "in lieu" utility tax rates by 6% for the water, wastewater and refuse utilities and establish
a 6% "in lieu" utility tax for stormwater utilities. The attached ordinance provides these increases and will also increase
the utility taxes applicable to the refuse services provided to the City by Yakima Waste Systems and to the water utilities
provided by Nob Hill Water Association. The utility tax increases identified in the attached ordinance would commence
on January 1, 2012 and continue thereafter. If this ordinance is approved the Council will be asked to approve changes
to the water, wastewater, refuse and stormwater utility rates reflecting this 6% "in lieu" utility tax increase during the
December 13, 2011 City Council meeting.
Resolution Ordinance X Other (specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding Source: Phone:
APPROVED FOR SUBMITTAL:�j City Manager
STAFF RECOMMENDATION:
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
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0 Tracked Changes - Ordinance -2012 Utility Tax Rate Adiustment
O Accepted Changes - Ordinance -2012 Utility Tax Rate Adjustment