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HomeMy WebLinkAbout12/06/2011 11 "In Lieu" Utility Tax • • • . BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. ( • For Meeting of: December 6, 2011 IMIIIMMEMEESZINIIIMMe ITEM TITLE: 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. SUBMITTED BY: Jeff Cutter, City Attorney CONTACT PERSON/TELEPHONE: Jeff Cutter, City Attorney /(509) 575 -6030 SUMMARY EXPLANATION: 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: � 4 ®t City Manager STAFF RECOMMENDATION: BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: • Click to download 0 Tracked Changes - Ordinance -2012 Utility Tax Rate Adjustment Accepted Changes - Ordinance -2012 Utility Tax Rate Adjustment • • • • • ORDINANCE NO. 2011 - 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 - - - { Formatted: Justified follows: Chapter 7.64 WATER, WASTEWATER, STORMWATER AND REFUSE REVENUE TAX 4 Formatted: Font: 11 pt Sections: , 7.64.010 Purpose and findings. 7.64.020 Water and wastewater tax. • 7.64.030 Refuse tax. 7.64.040 Stormwater tax • • 7.64.0540 When payable. 7.64.0650 Source of taxes • • Section 2. Section 7.64.020 of the Yakima Municipal Code is amended to read as follows: Formatted: Font: (Default) Arial, 11 pt 7.64.020 Water and wastewater tax. Formatted: Justified A. For the provision •of water and wastewater services, there is levied a tax against the total _ _ - Formatted: Font: 11 pt 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 rates of the tax for calendar year 20121001 and the following years shall be as follows: Wholcsalc ccrvicc chargcc 10 %, All ether-service charges 2044% • ` l Formatted: Font: 11 pt B. 1. The water and wastewater tax shall not be applied against thatportion of the total gross'-, Formatted: Justified revenue of the wastewater operating fund which is collected as debt coverage for the Formatted: Font: 11 pt wastewater debt. Formatted: Justified, Indent: Left: 0 ", .Hanging: 0.38" 2. Commencing on the effective date of the ordinance codified in this chapter, the water ( Formatted: Justified, Indent: Hanging: 0.07" and wastewater tax shall not be applied against that portion of the total gross revenue of • • • • • t • • • 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' - - - { Formatted: Justified 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: . ' • Formatted: Font: (Default) Arial, 11 pt 7.64.030 Refuse tax. ( Formatted: Justified For the ,provision of refuse_ services, there is levied a fifteenn+fle(15)_ percent tax against the _ - - Formatted: Font: 11 pt 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. • . 0 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: , 4 Formatted: Font: (Default) Arial, 11 pt 7.64.0540 When payable. The taxes provided by this chapter shall be due and payable on or before the fifteenth day of - - - -{ Formatted: Font: 11 pt each month on the basis of gross revenues billed for the last preceding calendar month. _ - - (Formatted: Font: 11 pt Section 6. Section 7.64.050 of the Yakima Municipal Code is amended to read as follows: , 4 Formatted: Font: (Default) Arial, 11 pt 7.64.0650 Source of taxes. . The taxes provided by this chapter shall be paid by a transfer of funds from the wastewater _ - - { Formatted: F ont: 11 pt j � <".. operating fund, the water operating fund riw , torrafe . perating . "uni d and the refuse fund, - - For matted: Highlight respectively, to the current expense fund of the city of Yakima, and the city finance director i s ormatted: F ont: 11 pt authorized and directed to make such transfers each month as are necessary to accomplish . . payment and collection of the taxes levied by this chapter. • 2 III• . . . . . . . • • • • • 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 1st 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. • • • 1 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 Iicense'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, • 3 • • • • 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 0;:k -:,Comment Jeff.why isParagraph deleted ?? Makes it look like we re imposing both �the;10, ercent,t`ax and.tlie " si:Meer.percent tax` , {;,;,, +•'j P (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 • eitiervedloV the h Ilcense older Such tax be due and payable ;monthly I , . Formatted: Highlight ^� h '` " � ,.,, and �emlttan "ceYfherefor`'shall be.made`on'or. before tliirtV� d aft erthe erd.of the last'precediriq calendar month' <a: r + °r,'.Q 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: • 4 • • • • • 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 • I 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. • I 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 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. • 5 • • • • • • 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 - - - - Formatted: Justified, Indent: Left: 0.38 ", Hanging: 0.31" 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' - - { Formatted: Justified j 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. • • • • 6 • • • • 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,'" Formatted: Indent: First line: 0.5" Formatted: No underline approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 6 day of December, 2011. ATTEST: Micah Cawley, Mayor - City Clerk • • Publication Date: Effective Date: . . . . • • • • . . . . • • • • 7 • • ORDINANCE NO. 2011- • 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. 11111 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 1 • 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. • 2 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 1st 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 Tess 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, II/ 3 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 therefor 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. • 4 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 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. • 5 • 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. • 6 PASSED BY THE CITY COUNCIL, signed and approved this 6 th day of December, • 2011. ATTEST: Micah Cawley, Mayor City Clerk Publication Date: Effective Date: • /Z-4 / IMPORTANT TAX NOTICE December 2011 Nob Hill Water Association Edition 53 November 30, 2011 Dear Nob Hill Water Customer: In today's newspaper is an article regarding the Yakima City Coun- cil potentially increasing utility taxes up to 6 %. What you may NOT know is that this tax WILL be applied to your Nob Hill Water bill. A 6% increase will raise your tax on your water bill from the current 16% to 22 %! The increase will be applied to water, sewer, garbage and stormwater. Currently, Nob Hill Water customers pay a 14% utility tax and a 2% Franchise Tax to the City of Yakima. The Management and Board of Directors thought that Nob Hill Wa- ter residents should be informed of how this decision will impact their water bill. The Yakima City Council will be voting on this increase at next Tuesday's (12/6/11) regular meeting. If you have any concerns or questions, please contact your City Council Representative directly or the Mayor's Office at 575 -6050. Sincerely, Nob Hill Water Association December 5, 2011 calls for Council re utility tax increase 1. Diane Hood, 972 -0371 — I want the Council to vote against the utility tax increase. 2. Bev Morgan- Jensen, 930 -8613 — The proposed utility tax increase is an exorbitant amount and I don't think it should go through. This increase is very high compared to other parts of the country. 3. Betty Mock, 966 -4615 — I think the Council should vote against the utility tax increase. 4. Fred Booher, 426 -2643 — I think the Council should vote no on the utility tax increase. Increasing taxes from 14% to 22% is too much. 5. Sue McMikel, 972 -3368 — Where does the City Council think we are going to get the money to pay for a tax increase? Our income isn't raised every month. We have to live within our means and if that means we cut services or don't do something that's the way it should be. 6. John & Bonnie Lund, 972 -1674 — I understand the City Council will be voting to increase utility taxes 6 %. I oppose this increase. 7. Pauline Pallas, 966 -2701 — If this tax increase passes, 22% of my water bill will go to taxes. This is outrageous. I am a senior on fixed income. 8. Connie Newbarrs, 972 -5443 — I wish the Council wouldn't increase taxes for the seniors and disabled people on fixed incomes. 9. Lori Collins, 965 -4475 — This tax increase is ridiculous. I'm already charged for 8 units of water and I only use 4. 10. Lowell Daily, 469 -0809 — I'm a West Valley resident and I'm on a fixed income. A 22% tax on utilities is too much. 11. Steven Fanciullo, 972 -0460 — Increasing utility tax rates by 38% is unacceptable. The City should learn to live with a smaller percentage like everyone else has to. 12. Sandy Yeargen, 966 -9119 — How does the City Council justify a utility tax increase of 22% on water? When times are the way they are, the City needs to live within its means just like the rest of us. They need to cut spending so much. I can't raise taxes to pay for things I want. The City needs to cut back and eliminate services. 13. Ruby Young, 965 -9848 — I received a letter from Nob Hill Water that my utility rates are going to increase 6 %. I object to this. I'm a senior on a fixed income and I object to this. 14. Roy Campbell, 966 -4222 — I want the Council to know that I am opposed to the utility tax increase. I'm a senior living on a fixed income and I can't afford any more. 15. Richard West, 972 -2207 — I'm against the utility tax increase. I strongly vote NO. I'm a senior on a limited income. Nob Hill Water charges a 14% utility tax and a 2% franchise tax. The city's 6% would mean that almost one quarter of my bill would be going to taxes. 16. Robert Spear, 972 -3368 — I vote no on the utility tax increase. How many seniors would this increase effect? How many seniors received a pay increase in the last two years? I think a housewife needs to come down and show the Council how to establish a budget. If a man tells his wife he's taking a 10% cut in pay then she adjusts the budget 10% across the board. That's what the City needs to do. 17. Bernice Kitterman, 961 -1845 — The seniors can't afford a 6% increase on all utilities. 18. Martha Coleman, 965 -2652 — I read the letter from Nob Hill Water....wow. I say NO on the tax increase. 19. Irene Pearcy, 972 -3454 — I get my water from Nob Hill Water and already pay them 16% tax. I vote no. Is the City going to give me extra money when I need it? I'm tired of all the increases. The City needs to live within its budget. Suck it up and do without some things. 20. Audrey Vetter, 965 -0516 — I am against the Nob Hill Water tax increase. 21. Mary Faucher, 952 -1098 — I am not happy about a 6% increase on my utility bills. 22. Omar Arambul, 972 -4484 — The City shouldn't to this. My water bill will go from 16% tax to 22 %. The Council should reconsider this with so many people already living on a fixed income. 23. Roger Hanna, 965 -2486 — I'm not in favor of a utility tax increase. The city needs to adjust its budget and make cuts so it doesn't keep taxing the retired folks on fixed incomes. 24. Al Mauch, 966 -4615 — I'm against the 6% tax increase. 25. Alice Nelson, 966 -1515 — I vote no on the utility tax increase. Are we going to pay both Nob Hill Water and the City of Yakima 6% or how is that going to work? December 6, 2011 1. Don Fullerton, 966 -1877 — I'm ok with the tax increase but I'm not ok with the car tab fee increase. We already voted that down. 2. Katherine Shin, 945 -2356 — Vote no on the tax increase. 3. Randall Ward, 952 -7700 — Don't raise the utility tax. Times are tough enough for everybody. 4. Todd Curtis, 961 -6381 — I think the utility tax increase is a terrible idea. Every two years you try to do this and it's ridiculous. I know you feel you are fighting for safer and smoother streets, and you are all well intentioned. Heavier taxes on honest hard working people may solve your budget problem in the short term, but it will not make us safer. There are not enough police in the world when we don't punish criminals anymore. DON'T RAISE OUR TAXES!! 5. Gary Pritchard, 1301 S. 43` Avenue — How far do you think the dollar goes? A 6% increase is ridiculous. I have a strong opinion against this especially in this economy. 6. Edwin Elhood, 972 -0371 — I have to live within my means the City should do the same. I'm sick and tired of you raising my taxes. 7. Sharon Kettleson, 6201 Crestfield Road — I'm opposed to the utility tax increase due to being a senior citizen and being on a fixed income. 8. Gary Brownell, 8512 Tieton Drive — The City does nothing to provide water except through Nob Hill Water. The government wants to charge more and deliver less....in this case the city isn't delivering anything. This utility tax increase would mean that almost 'A of my bill would go to taxes. I know there are some things in the budget that the city can do without. 9. Lois and Charles Gervais, 1823 Magnolia Court — we are against the utility tax increase 10. Todd Titus, 3801 Old Naches Hwy — I'm against the tax increase 11. Peggy Phillips, 972 -8704 — 6% is a big increase. People that work don't even receive a 6% annual increase. I'm on a fixed income and this increase would make things even tougher for me. 12. Dave and Nadine Ferring, 965 -3752 — I'm against the utility tax increase. I'm on a fixed income and I think utilities are the wrong place to increase taxes. I'm against the car tab fee increase but not as much as the utility tax increase. 13. Hertha Lehman — against tax increase on utilities; on a fixed income 14. Betty Wickenhagen, 966 -4995 — I think a 6% tax increase is ridiculous. My street light bill already went from $9 to $14. I wouldn't argue a 2 or 3 percent increase but 6% is too much. Do you want us all to end up on welfare? 15. Joan Weber, 965 -4181 — Until city employees quit getting pay increases like state employees and you can show me that all cuts have been made, I will not support a utility tax increase. 16. Edwin Hood, 972 -0371 — against the utility tax increase 17. Loren Kitts, 120 Alpine Way — against the utility tax increase 18. William Weddle, 945 -2230 — against the utility tax increase 19. Emma Fischbeck, 719 S. 73` Avenue — a 6% increase is obscene. Think twice before you act. Everyone pays for water and some cannot afford an increase of this size. I personally would rather have a one shot tax, such as the car tax, and get it over with. 20. Bob Gilmore, 406 S. 56` Avenue — we already pay too much in utility tax and yes we are in a budget down turn, we need to cut services. If you raise taxes that's just that much less we can send elsewhere and reducing sales tax just that much more. The City needs to cut services...shorten hours...use shared employment ideas...move money from streets to law. Thanks for your time and I trust you will do right by us. 21. Rick Cunningham, 966 -9629 — I think the utility and car tab tax increases are too much. I'm already living on a fixed income. The managers need to sit down and look at their budgets and make all cuts possible in order to come up with ways to reduce them. This is not the time for rate increases. 22. Roberta Byrne, 966 -7463 — Increasing the utility tax 6% is outrageous. I can't believe you would consider this during these tough economic times. 23. Pat McClimas, 965 -5608 — I oppose a 6% utility tax increase. We already pay more than larger cities in the state. 24. Ilene Neil, 965 -2734 — People need water, sewer and garbage to survive. I can't believe you would consider taxing these services. Put the tax on something else. 25. Barbara Boutaine, 225 -0647 — A utility tax increase is wrong. This isn't fair to the people that have to use Nob Hill Water. It is expensive enough without a 6% increase. I think there are other ways to make cuts; not raise taxes. 26. Carolyn Riley, 452 -6428 — I do not want the utility tax increase. 27. Murrell Young, 5415 Englewood Avenue — I'm opposed to any utility rate hike. 28. Teresa Ryan, 453 -7687 — I object to the water tax increase. 29. Dina Worley, 949 -1104 — Don't raise taxes 30. Ida Evans, 949 -2085 — I want to complain about the tax increase. I've lived in this community since the 60's and haven't seen any new jobs created. I think someone needs to get with someone else in the community and create jobs in order to increase the tax base. 31. Kim Fetzer, 930 -9970 — I'm against the tax increase 32. Tara Wilkey, 895 -4577 — I'm against the tax increase 33. Kim Radford, 307 -0803 — I want the Council to vote no on the tax increase. 34. Deb Peterson, 965 -3163 — I think the Council should vote no on the tax increase. 35. Joe Phillips, 930 -4638 — Don't increase taxes. This isn't the time to do it. 36. Nancy Bechard, 966 -9757 — I'm totally against the utility tax increase. 37. Bob Bradford, 201 S. 66 Avenue — I'm against the utility tax increase. 38. Parent Leola, 965 -5228 — I oppose the utility tax increase. This is going to hurt EVERYONE and it's something we all need. 39. Mike Hunnel, 452 -6428 — I would like the Council to vote no on the license fee increase and the utility tax increase. 40. Elba Cooper, 452 -8309 — I say vote no to all increases. I do not agree with them. 41. Sherri Jones, 965 -3719 — This is outrageous. Please reconsider. 42. Janice Purnell, 1805 S. 70 Avenue — I'm in favor of the license fee increase but not the utility tax.