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HomeMy WebLinkAbout12/04/2018 06O Utility Tax Update for Stormwater Drainage and Surface Water Management Utility; YMC Amendment 7.64.040BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT 1 Item No. 6.0. For Meeting of: December 4, 2018 ITEM TITLE: Ordinance amending Chapter 7.64.040 of the Yakima Municipal Code regarding Stormwater Utility rates SUBMITTED BY: Scott Schafer, Director of Public Works Mike Price, Wastewater/Stormwater Division Manager, 249-6815 SUMMARY EXPLANATION: The City's Stormwater Division is an Enterprise Fund; self -supported utility funded by rates for services provided. Enterprise Funds contribute to the General Fund in the form of "Utility Tax" also known as "In -Lieu Tax" based on a percentage rate of the utility's gross revenue. The City's Stormwater Utility Tax is currently set at 6%. As part of the 2019 Budget Session discussions, the City Council directed staff to increase the Stormwater Utility Tax from six percent to fifteen percent; increasing the funding into the General Fund by approximately $250,000 per year. Attached for review is the revised Yakima Municipal Code Chapter 7.64.040 as directed by the City Council at the October 18, 2018 Budget Session. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL: Yes NA City Manager STAFF RECOMMENDATION: Pass Ordinance BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type 2 0 ordinance 11129,/2018 Coker Memo 0 ordinance clean 1129/2018 Co\,er Memo ORDINANCE NO. 2018- 3 AN ORDINANCE relating to utility taxes, amending Chapter 7.64.040 YMC to update the utility tax for the Storm Drainage and Surface Water Management Utility. WHEREAS, the City of Yakima (City) is authorized by Title 35 RCW to acquire, construct, own operate, and provide financing for storm drainage and surface water management, and to establish rates, fees, and charges therefore; and WHEREAS, it is necessary to revise the utility tax in order to cover actual costs for storm drainage and surface water management services provided by the City of Yakima; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the residents and the City to raise the Stormwater utility tax from six percent to fifteen percent and amend the Yakima Municipal Code to reflect the increase effective January 11, 2019; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.64.040 of the City of Yakima Municipal Code is hereby amended 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 4-11, 20122019, and effective annually thereafter, the rate of the tax shall be cix fifteen percent. (Ord. 2011-59 § 4, 2011). Section 2. Effective Date. 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. 2018. PASSED BY THE CITY COUNCIL, signed and approved this 4th day of December, ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: 4 ORDINANCE NO. 2018 - AN ORDINANCE relating to utility taxes, amending Chapter 7.64.040 YMC to update the utility tax for the Storm Drainage and Surface Water Management Utility. WHEREAS, the City of Yakima (City) is authorized by Title 35 RCW to acquire, construct, own operate, and provide financing for storm drainage and surface water management, and to establish rates, fees, and charges therefore; and WHEREAS, it is necessary to revise the utility tax in order to cover actual costs for the storm drainage and surface water management services provided by the City of Yakima; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the residents and the City to raise the Stormwater utility tax from six percent to fifteen percent and amend the Yakima Municipal Code to reflect the increase effective January 11, 2019; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.64.040 of the City of Yakima Municipal Code is hereby amended 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 11, 2019, and effective annually thereafter, the rate of the tax shall be fifteen percent. (Ord. 2011-59 § 4, 2011). Section 2. Effective Date. 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. 2018. PASSED BY THE CITY COUNCIL, signed and approved this 4th day of December, ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: