HomeMy WebLinkAboutR-2006-138 Set Public Hearing Date - Private Utilty Tax Rate IncreaseRESOLUTION NO. R-2006-138
A RESOLUTION setting a public hearing regarding City of Yakima
Proposition No. 1, Increase in Private Utility Tax Rate to
Provide Additional Funds to Enhance Community Safety.
WHEREAS, pursuant to RCW 42.17.130 (1) action may be taken at an open
public meeting by members of an elected council to express a collective decision,
or to actually vote upon a resolution to support or oppose a ballot proposition so
long as (a) any required notice of the meeting includes the title and number of the
ballot proposition, and (b) members of the council or members of the public are
afforded an approximately equal opportunity for the expression of an opposing
view; and
WHEREAS, the Yakima City Council has adopted Resolution No. R-2006-_,
authorizing Proposition No. 1, City of Yakima, Increase In Private Utility Tax Rate
to Provide Additional Funds to Enhance Community Safety, be placed on ballot in
conjunction with the State General Election scheduled for November 7, 2006; and
WHEREAS, the Yakima City Council desires to conduct a public hearing
regarding said Proposition; and
WHEREAS, notice of a hearing on said Proposition is to be disseminated as
provided by law, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
Pursuant to RCW 42.17 130 (1):
The City Council will conduct a public hearing regarding City of Yakima
Proposition No. 1. The date and time for the public hearing is hereby set for 6
p.m., Tuesday, October 3, 2006, in the Yakima City Council Chambers. Notice of
the public hearing shall be provided in accordance with applicable laws.
ADOPTED BY THE CITY COUNCIL this 19th day of September 2006.
Edler, Mayor
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. /5
For Meeting Of 09-19-06
ITEM TITLE: Consideration of Legislation regarding Yakima's Safe Community Action Plan:
A. Resolution providing for the submittal to the electors of the City of
Yakima, Washington, in conjunction with the State General Election of
November 7, 2006, of a municipal proposition to increase the City of
Yakima's private utility tax rate on electric, telephone, gas and steam
utilities by one and one-half percent (1.5%), from six percent (6%) to
seven and one-half percent (7.5%) to help provide additional funds to
hire additional police, increase prosecution, court, jail and other related
services to enhance community safety.
B. Resolution setting a date of Public Hearing for October 3, 2006 to
consider "for" and "against" testimony regarding the ballot proposition.
SUBMITTED BY: Dick Zais, City Manager
Dave Zabel!, Assistant City Manager
Ray Paolella, City Attorney
Sam Granato, Police Chief
Rita DeBord, Finance Director
CONTACT PERSON/TELEPHONE: Randy Beehler, Community Relations Manager,
#575-6092
Sam Granato, Police Chief, #575-6178
Rita DeBord, Finance Director, #575-6053
SUMMARY EXPLANATION: Community Safety is the Yakima City Council's Number One
priority. The City Council recognizes the critical link between community safety, quality of life, and
economic prosperity. The Yakima City Council and executive staff are committed to the
revitalization and economic development of Yakima and recognize that decreasing crime and
improving the City's appearance are critical in order to attract new businesses, enhance existing
businesses, and to improve the quality of life for those who live, work, and play in our City.
Continued on next page...
Resolution X Ordinance Other (Specify)
Contract
Mail to (name and address):
Phone:
Funding Source
APPROVED FOR SUBMITTAL:
Atek, City Manager
STAFF RECOMMENDATION: This is a Council policy decision
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2006-137
Resolution adopted. RESOLUTION NO. R-2006-138
Recent statistics indicate that the City of Yakima has the highest crime rate, per capita, in
Washington State. Additionally, the National Insurance Crime Bureau included the City of Yakima
among the top ten cities for car thefts per capita in the United States in 2005. Property crimes, the
primary y cause of our community's high crime rates, are bred by drug addiction, gang activity, and
poverty, all serious problems in Yakima. Recent reductions in available resources have further
compounded our ability to fight crime. Yakima County and cities in the County have lost more than
$8,900,000 annually in funding for local police, court, jail, and related law enforcement services as a
result of the elimination of the motor vehicle excise tax in 2001
Population growth and high crime rates have resulted in greater demands on our police officers,
prosecuting attorneys, municipal courts, jails, and indigent defense services. Faced with rising
crime rates and increased pressures on our criminal justice system, the City Council has decided
to take action now to make Yakima a safer community. The City Council and staff spent several
months researching and evaluating the most effective methods to reduce crime rates and make
Yakima a safer community. The research clearly indicated that adding as many as 22 new
officers to the Yakima Police Department would be a key element of any crime reduction package.
Additional officers will allow the City to expand the successful "Emphasis Patrol" program piloted
in 2005, which focused on high -crime "hot spots"; creating a `proactive" police force that will be
better to, prevent crimes, not Ji,MV+ ro.a..V+ to +hcVm• target repeat offenders; and, "eon Imora
nriminolc in ioil
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r he City Council and Starr revrewed numerous options regarding now, and to what laver, o
increase the City's police force, how to provide them the tools and support services they would
require to become highly effective, and how to address the additional pressures that would be
placed on the City's municipal court, jail, and related services as a result of the efforts of
additional police officers. In July 2006, the City Council approved the Safe Community -Action
Plan, which, when fully implemented, will provide additional police officers, an additional
prosecuting attomey, three new court clerks, additional jail expenses, and other related support
staff, tools, and equipment throughout the City's criminal justice system.
The Safe Community Action Plan is estimated to cost approximately $3.35 million dollars annually
(in today's dollars), when fully implemented. The City Council proposes to fund the Safe
Community Action Plan using a combination of existing, new, and anticipated future City
resources, as noted below:
1. $1.6 million - The proposed increase of one and one-half percent (1.5%) in the Ciy's
utility tax rate on private utilities, if approved by voters. The private utilities
covered under this tax include electric, gas, telephone, and steam. (Note:
currently there are no steam utilities operating within the City of Yakima,
however, steam is included in this resolution as steam is specifically
included in the private utility tax authorization in both the City's municipal
code and the Washington State code (RCW).)
2. $560,000 - A decrease in the existing tax exemption for Targe utility consumers;
3. $650,000 - Use of new library annexation revenues; (last spring, voters approved the
annexation of the Library, this resulted in a reduction in property tax
revenues to the City and a reduction in the City's expenditures — as the City
will no longer provide funding to the library. Since the reduction in
expenditures is expected to be greater than the revenue reduction, the net
savings will be utilized to help fund the enhancements to the criminal justice
system.)
4. $ 280,000 - New fines and forfeitures anticipated to be generated by the work of the
additional police officers to be hired under the plan; and
5. $ 260,000 - Anticipated future annexation revenues;
• Utility Tax Rate increase requires voter approval: RCW 3521870, authorizes the City
Council to impose a tax rate on private utilities of up to 6%; to impose a higher rate
requires a simple majority approval vote of the people. Therefore, Council's proposal
to increase the utility tax rate on private utilities must be affirmed by a vote of the
citizens of Yakima.
It is estimated that this rate increase will cost the typical household approximately
$3.60 per month (a typical household is defined as one that spends approximately $80
p/month on gas and electric utilities and approximately $60 per month on telephone).
• Tax exemption for large consumers: the City's current utility tax rate is 6% on the first
$4,000 billed (per account, per month) and 2% on all amounts over $4,000. To help
fund the crime reduction package, it is proposed that this exemption be reduced.
The proposal is for a 7.5% utility tax rate on the first $4,000 p/month, p/account (as
noted above); and dropping to 6% on all charges above $4,000. The exemption is at
the discretion of the City Council and does not require a vote of the citizens.
Summary:
After many months of analysis, review, and discussion, the Yakima City Council adopted the Safe
Community Action Plan and proposed the funding sources as approximated above. The enclosed
Resolution, if adopted by Council, will place the proposed increase in the private utility tax rate
(from 6% to 7.5%) on the November 7, 2006 general election ballot, and, if approved by voters,
would become effective January 1, 2007.
If approved by voters, the additional revenues generated from the increased rate will fund
approximately $1.6 million dollars of the total estimated annual $3.35 million cost of the Safe
Community Action Plan. Of the five sources identified to fund this crime reduction package, the
proposed utility tax rate increase is the only one requiring voter approval.
The goals of the Safe Community Action Plan include lowering Yakima's overall crime rate by
20%, providing "community -oriented policing" to help neighborhoods prevent crime, and restoring
community pride and respect for our police officers, municipal court, and the entire criminal justice
system. The ultimate goal of the Yakima City Council, through the Safe Community Action Plan,
is to make Yakima a safer place to live, work, and play.