Loading...
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 Ther'1:L. r1.__..._I .,J staff ...___.___.J .�__��-�..� �._1:��� �._J'.�� L.._. ��J 1. ...L _l /�..�1 l� 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.