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Home My WebLink About11/07/2023 10. Public Hearing regarding proposed Utility Tax increase 1 s' !1 a, _____) BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 10. For Meeting of: November 7, 2023 ITEM TITLE: Public Hearing regarding proposed Utility Tax increase SUBMITTED BY: Bob Harrison, City Manager *Rosylen Oglesby,Assistant City Manager SUMMARY EXPLANATION: Council was presented with the option of utilizing utility tax revenues at the July 11th budget meeting as well as at the October 10th budget study session. This is a review of that option. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Proceed with public hearing. ATTACHMENTS: Description Upload Date Type D Utility Tax Increase PPT 11/1/2023 Presentation City Council Business MeetingNovember 7, 2023Proposed Utility Taxes Increases OverviewThe purpose of the presentation is to briefly explainthe proposed increases to the Utility Taxes for 2024.Pg. 2 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023 Current Utility Tax Rates(Water, Sewer, Solid Waste, Stormwater)• Water, 20%• Sewer, 20%• Solid Waste, 20% • Stormwater,15%• No rate limit prescribed by State/Federal lawPg. 3 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023 Proposed Utility Tax IncreaseDepartmentCurrent Rate 2024 Utility Tax DepartmentPotential RatePotential 2024 Utility TaxIncrease In lIeu Taxes in DepartmentsWater 20% 2,502,200$ Water 24.5% 3,065,195$ 562,995$ Wastewater 20% 4,808,825$ Wastewater 24.5% 5,890,810$ 1,081,986$ Refuse‐General Fund 15% 1,437,221$ Refuse‐General Fund 20% 1,916,294$ 479,074$ Refuse‐Clean City 5% 479,074$ Refuse‐Clean City 5% 479,074$ ‐$ Stormwater 15% 609,662$ Stormwater 15% 609,662$ ‐$ 9,836,980$ Wastewater‐Aquatic Funding 0.5% 120,221$ 120,221$ Water‐Aquatic Funding 0.5% 62,555$ 62,555$ Stormwater‐Aquatic Funding 10% 406,441$ 406,441$ 12,550,251$ 2,713,271$ Potential Increase to:General Fund $ 2,124,054Capital & Operating Budget for the Aquatic Fund $ 589,217$ 2,713,271Pg. 4 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023Potential Impact to Median Home BimonthlyorAnnuallyWater: $ 2.97 $ 17.82 Wastewater: $ 3.54 $ 21.24 Refuse: $ 4.16 $ 24.96 Stormwater: $ 1.32 $ 7.92 $ 11.99 $ 71.94 Pg. 5 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023Sample Residential User IncreaseWater, Wastewater, & RefuseRate Difference: $12.05 bi-monthly and $72.30 annuallyCurrent Proposed Pg. 6 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023Sample Commercial User IncreaseWater and WastewaterRate Difference: $10.45 bi-monthly and $62.70 annuallyCurrent Proposed Pg. 7 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023Proposed Stormwater IncreaseResidential OnlyHome SizeAmount of Annual IncreaseLess than 1,800 square feet $ 3.96 1,800 to 5,400 square feet $ 7.92 Greater that 5,400 square feet $ 15.84 Pg. 8 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023Proposed Stormwater IncreaseNon-Residential Only• Non-residential parcel includes but are not limited to: • Commercial• Industrial• Parking lots• Hospitals• Schools• Hotels•Offices• Churches• multiple-family dwelling units• Governments, etc.• Calculation:• 1 ERU (equivalent residential unit) = 3,600 sq. ft. •Method: Total Square footage of impervious surface area/3,600 X base rate = bill amount. Pg. 8 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023Proposed Stormwater IncreaseNon-Residential Only•Property: 55,685 sq. ft.•55,685/3,600 = 15.5 ERU•15.5 ERU x $79.20 = $1,227.60•Property: 55,685 sq. ft.•55,685/3,600 = 15.5 ERU•15.5 ERU x $87.12 = $1,350.36CurrentProposedFee Difference: $122.76 annually Pg. 10 ●City Council Business Meeting ●Discussion of the Proposed Utility Taxes Increase ●November 7, 2023Total Number of ParcelsResidential & Non-Residential "�" -S—, 0STORMWATER Distributed at the 1~ '% \ Meeting iI-07-23'IV ( ! 1;I What is it? Rain and snow melt that runs off surfaces like rooftops, paved streets, highways, and parking lots. It carries oil, fertilizers, soil, trash, animal waste and other materials on solid surfaces into the storm drains and to the river. Stormwater does NOT go through the wastewater treatment plant. Why is it a problem? It can carry toxic metals, organic compounds, bacteria and viruses into the same waterways that City residents use for recreation and farmers use to irrigate crops. It can cause flooding into neighborhoods and businesses when storm drains are filled with debris. What can you do? • Never pour anything down storm drains. • Scoop up pet waste and dispose in the garbage. • Minimize the use of fertilizers and pesticides. • Direct gutters and downspouts to plants, grass or collection tanks. • Wash cars at a public car wash or on your lawn. Calculation: Square footage of impervious surface area X base rate=bill amount. • 1 ERU (equivalent residential unit) = 3,600 sq. ft. • Base rate= $79.20 for 2023. • Only nonresidential parcels get billed to the first decimal. o I.e. if a parcel had 10.8 ERU it would be billed as 10.8 X $79.20 = $855.36. 1. Small single-family residence: 1 - 1,800 sq. ft. of impervious surface area (ISA) = '/ ERU = $39.60. 2. Average single-family residence: 1,800 - 5,400 sq. ft. = 1 ERU = $79.20 base rate. 3. Large single-family residence: 5,400+ sq. ft. = 2 ERU X$79.20 =$158.40. 4. Duplex, triplex and fourplex; same as above. Based on square footage of impervious surface area. 5. Nonresidential parcel: includes, but is not limited to, commercial parcels, industrial parcels, parking lots, hospitals, schools, hotels, offices, churches, governmental parcels and multiple-family dwelling units. a. Total sq. ft. of ISA/3,600 (1 ERU) =# of ERUs X base rate $79.20 = $ amount for bill. b. Add up the total amount of impervious area and then divide that by 3,600 SF to get the number of ERUs. Then take the number of ERUs and multiply that by the Base Rate($79.20). a. Example: A property has a total of 55,685 SF of impervious area. Take this and divide it by 3,600 SF to get the#of ERUs (55,685/3,600=15.5 ERU). Now multiply the#ERUs times the base rate (15.5 X $79.20 = $1,227.60). 1. 55,685 / 3,600 = 15.5 ERU. 15.5 X $79.20 = $1,227.60 For further questions, please call City of Yakima Wastewater: (509) 575-6077. Yakima Municipal Code: 7.80.080 Stormwater user's fees established. Except with respect to those parcels that are waived from paying fees as described in YMC 7.80.120,the city shall charge and collect from the owner of each and every developed property in the city a stormwater user's fee,which shall be set in the manner and amount prescribed by this chapter. The purpose of this fee is to fund the storm drainage and surface water utility. 7.80.100 Property classification for stormwater user's fee. As authorized by RCW Chapters 35.67 and 35.92,the city council finds that variations in the amount of impervious surface area contained on single-family residential parcels result in differences in the cost to serve such parcels and the burdens imposed on the system by such parcels. Therefore,residential customers of the stormwater system shall be divided into three classifications based upon the amount of impervious surfaces of their parcels: average single-family residences; large single-family residences; and small single-family residences. 7.80.090 Equivalent residential unit. (1)The ERU is the approximate average square footage of impervious surface area on a single-family residential parcel, (3,600 sq ft). (2)This value was determined through the measurements of impervious surface on single-family home residential parcels. 7.80.140 Billing procedures and penalties for late payment. The charges as herein provided for shall be billed annually. Annual stormwater charges totaling less than fifty dollars shall be due and payable on or before the thirtieth day of April of the billing year. For annual stormwater charges totaling fifty dollars or greater,the first half of the total charge shall be due and payable on or before the thirtieth day of April of the billing year and the second half of the total charge shall be due and payable on the thirty-first day of October of the billing year. 7.80.100 Property classification for stormwater user's fee. (1) Customer Classification. For purposes of determining the stormwater user fees,owners of all developed parcels in the city are classified into one of the following classes: see Calculation section above. 7.80.120 Adjustments to stormwater user's fees. (A) Credits for Qualified Stormwater Facilities. The city council recognizes that some parcel owners have constructed or will construct private on-site stormwater quality and quantity mitigation facilities, which when properly operated and maintained will aid the city in controlling the overall effects of stormwater pollution. Parcels or portions of parcels with facilities that meet one of the criteria listed below, to the engineer's satisfaction,shall receive a reduction of twenty percent from the annual fee charged for that portion of the site draining to such facilities: (1) Any commercial/industrial/institutional parcel with a properly constructed and maintained stormwater facility that meets or exceeds the design requirements of the 2004 Department of Ecology Stormwater Management Manual for Eastern Washington or an equivalent design manual adopted by the city. Owners of subsurface stormwater infiltration systems shall provide evidence of compliance with the Washington State Underground Injection Control Program in order to receive the credit. (2) Any parcel that has an active and valid NPDES Industrial Stormwater Permit. A copy of the permit and the stormwater pollution prevention plan(SWPPP)shall be provided to the engineer. The property owner is responsible for providing all documentation necessary to demonstrate compliance with the above requirements. Documentation shall be by a licensed civil engineer with the state of Washington. In the event facilities or control measures address only a portion of the total parcel, the credit will be applied to only that affected portion. The customer must maintain any water quantity and/or quality control facility in accordance with Department of Ecology maintenance guidelines and appropriate practices to ensure proper function and effectiveness of the facility. Commercial/industrial/institutional parcel owners receiving credits shall agree to allow the city to periodically inspect the subject stormwater facilities. The city may request documentation from facility owners to verify that proper maintenance has been performed.The city may notify owners in writing of maintenance needs or deficiencies. Failure to maintain the facilities within thirty days after written notice may be cause for termination of the adjustment authorized by this section. (B) Credit for Rainwater Harvesting Systems. Upon review and approval by the engineer,owners of new or newly constructed commercial/industrial class buildings that utilize a properly constructed and maintained permissive rainwater harvesting system shall be eligible for a ten percent credit applied toward that portion of their stormwater charge arising from the building upon which the system is used. Customers desiring this credit shall apply to the engineer and shall submit engineering design and operational information as deemed necessary by the engineer to make their evaluation and decision. Rainwater harvesting and beneficial reuse of the runoff is found by the city council to both reduce the burden imposed upon the system by the building by reducing runoff and to also have other beneficial water quality effects such as reduced consumption of potable water. For further questions, please call City of Yakima Wastewater: (509) 575,6077.