HomeMy WebLinkAbout07/15/2014 04A Utility Tax ReductionBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 4.A.
For Meeting of: July 15, 2014
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ITEM TITLE: Council Member Ensey's request for consideration of
reducing the utility tax
SUBMITTED BY: Council Member Rick Ensey
SUMMARY EXPLANATION:
A few years ago, council increased the utility tax from 3% to 6%. The funds provided for 12
additional police officers and other public safety needs. If my memory serves me, we were in
the midst of a severe recession at the time. City coffers were hit by the recession. A majority of
the council wanted more police officers and believed raising the utility tax was the best option.
The economy is now improving. Staff projected a 3% increase in tax revenue for 2014.
Revenue has increased slightly more than this. I am bullish for 2015. I believe the economy
will continue to improve. If the weather holds, the Yakima Valley will have a great harvest. The
drought in California means the Valley's harvest will sell at a premium.
I ask the council to consider lowering the utility tax by 2%, from 6% to 4%, for the 2015 budget.
This represents an $804,816 impact to the General Fund. I am not asking council to reduce
funding to YPD. I ask staff to use the additional tax revenues to partially offset this impact. I
also ask staff to work with the council to prioritize the budget to offset this impact.
Government increases taxes for various needs. Government never lowers taxes during
recoveries and good economic times. I ask the city council to be an exception. The utility tax
is a regressive tax. It hits the poor the hardest. The city's financial position is improving. Let's
pass the money to the people who need it most.
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