HomeMy WebLinkAbout4293 ORDINANCE NO. 4293
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending Section
3.18.020, entitled "Certain utilities subject to tax,"
to eliminate the sunset of the allocation of certain
internal utility taxes to the payment of debt in the
City's other capital projects fund, and to reallocate
the these internal utility taxes to the general fund
once the debt in the other capital projects fund is
retired.
RECITALS
A. KCC 3.18.020(A)(6)(b) allocates 15.38 percent of the City's
internal utility tax to the payment of debt in the City's other capital
projects fund. This portion of the internal utility tax is scheduled to sunset
on January 1, 2023, or on the first day of the year following the date the
debt in this fund is fully retired, whichever occurs first.
B. The current estimated date to fully retire the debt in this fund
is December 2020, which would sunset the tax on January 1, 2021.
1 Utility Tax Eliminate Sunset
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C. The city has a demonstrated need to increase funds available
for general operations in 2021. The City is facing a significant reduction in
revenue, commonly referred to as the City's "fiscal cliff," when, in October
of 2019, it will no longer receive approximately $5 million of streamlined
sales tax mitigation, and in June of 2020, it will no longer receive $4.7
million of annexation sales tax credit. Coupled with an ongoing structural
imbalance of $2 million, the expected impact is a loss of $11.7 million to
the City.
D. To partially offset this reduction in revenues, this ordinance
eliminates the sunset of this internal utility tax, and, when the other
capital projects fund debt is retired, reallocates those monies to the City's
general fund.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. - Amendment. Section 3.18.01-0 of the Kent City
Code, entitled "Certain utilities subject to tax," is hereby amended as
follows:
Sec. 3.18.020. Certain utilities subject to tax.
A. In addition to the other business and license fees required by the
ordinances of the city, the city levies upon all persons, firms, or
corporations (including the city) engaged in certain business activities a
utilities tax to be collected as follows:
1. Upon every person, firm, or corporation engaging in or carrying
on any telephone business within the city, an annual tax equal to six
percent of the total gross income, including revenues from intrastate toll,
2 Utility Tax Eliminate Sunset
Allocate to General Operations
i
derived from the operation of such business within the city. This six
percent tax will be allocated as follows: 4.7 percent to the general fund,
0.3 percent to youth/teen programs, and one percent to street
improvement programs.
2. Upon every person, firm, or corporation engaging in or carrying
on a business of selling, wheeling, furnishing, distributing, or producing
gas, whether manufactured or natural, for commercial or domestic use or
purposes, a fee or tax equal to six percent of the total gross income from
such business in the city during the tax year for which the license is
required. This six percent tax will be allocated as follows: 4.7 percent to
the general fund, 0.3 percent to youth/teen programs, and one percent to
street improvement programs.
3. Upon every person, firm, or corporation engaged in or carrying on
the business of selling, wheeling, furnishing, or distributing electricity for
light and power, a fee or tax equal to six percent of the total gross income
from such business in the city during the tax year for which a license is
required. This six percent tax will be allocated as follows: 4.7 percent to
the general fund, 0.3 percent to youth/teen programs, and one percent to
street improvement programs.
4. Upon every person, firm, or corporation engaged in or carrying on
the business of providing cable television services, a tax equal to six
percent of the total gross income from that business in the city during the
tax year for which the license is required. All revenue received from this
tax must be applied only to funding the city's information technology
department operations and capital projects budgets in the proportion
determined by the city council in its biennial budget, including all
amendments.
3 Utility Tax Eliminate Sunset
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5. Upon every person, firm, or corporation engaging in or carrying
on a business providing solid waste collection services, a tax equal to 18.4 '
percent of the total gross income from such business in the city during the
tax year for which the license is required. This 18.4 percent tax will be
allocated as follows: 6.5 percent to the general fund, 0.3 percent to
youth/teen programs, one percent to street improvement programs, and
10.6 percent to maintain and repair residential streets, including related
impacts to curbs, gutters, sidewalks, and other road amenities, including '
crosswalks along with necessary appurtenances, and improvements related '
to residential traffic calming, but this 10.6 percent portion of the solid '
waste utility tax shall not be used to expand, extend, or widen existing
residential streets or to build new residential streets. The amount used '.
from this fund for neighborhood traffic calming devices and crosswalks
shall not exceed $150,000 in any year.
6. Upon every person (including the city) engaging in or carrying on '.
the business of selling, furnishing, or distributing water services, a tax
equal to 13 percent of the total gross income from that business in the city
during the tax year; upon every person (including the city) engaging in or
carrying on the business of selling, furnishing, or distributing sewer
services, a tax equal to 9.5 percent of the total gross income from that
business in the city during the tax year; and upon every person (including
the city) engaging in or carrying on the business of selling, furnishing, or
distributing drainage services, a tax equal to 19.5 percent of the total
gross income from such business in the city during the tax year. Unless
otherwise directed by the city council in its budget process, the total of
these tax revenues will be allocated as follows: 43.85 percent to the
general fund for the use as allocated in the city's budget; 30.77 percent to
the capital resources fund, subject to the limitations provided in subsection
(A)(6)(a) of this section; 15.38 percent dedicated solely to the repayment
and elimination of debt in the city's 'other capital projects" fund subject to
4 Utility Tax Eliminate Sunset
Allocate to General Operations
the limitations provided in subsection (A)(6)(b) of this section; 7.69
percent to street improvement programs; and 2.31 percent to youth/teen
i
programs.
a. Unless otherwise allocated by council, these funds must be
applied equally to (i) information technology capital programs directed at
funding long- and short-term hardware and software replacement, and (ii)
street capital programs, but further restricted to funding street '
maintenance, repair, and signage only.
b. The 15.38 percent internal tax allocation will be dedicated
to the city's capital resources fund for the sole purpose of retiring all debt
in the city's other capital projects fund; however, in any-event "is pew`oen
tax shall be eh Ml provided. starting January 1, 2023, or ear
the first day of the year following the date the debt in #4s-the other capital
projects fund is fully retired, whichever occurs first this internal tax
allocation will be dedicated to the general fund for use as provided for in
the city's budget.
B. In computing the tax provided in subsection (A) of this section,
the taxpayer may deduct from total gross income the following items:
1. The actual amount of credit losses and uncollectible
receivables sustained by the taxpayer.
2. Amounts derived from transactions in interstate and
foreign commerce which the city is prohibited from taxing under the laws
and Constitution of the United States.
SECTION 2. - Severabilitv. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this
ordinance and the same shall remain in full force and effect.
5 Utility Tax Eliminate Sunset
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SECTION 3. - Corrections by City Clerk or Code Reviser. Upon
approval of the city attorney, the city clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state, or federal laws, codes, rules, or
regulations.
SECTION 4. - Effective Date. This ordinance shall take effect and
be in force 30 days from the time of passage, as provided by law.
� W. November 20, 2018
DANA RALPH, MAYOK Date Approved
ATTEST:
November 20. 2018
KIMBERLEY „ KOMOTO, CITY CLERK Date Adopted
November 23, 2018
Date Published
APPROVED AS TO FORM;
ARfHUR 11PAT' " IT PATRICK,ICJYY ATTORNEY
6 Utility Tax Eliminate Sunset
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STATE OF WASHINGTON, COUNTY OF KING }
AFFIDAVIT OF PUBLICATION
PUBLIC NOTICE
Polly Shepherd, being first duly sworn on oath that she is the
Publisher of the
Kent Reporter
a weekly newspaper, which newspaper is a legal newspaper of general
circulation and is now and has been for more than six months prior to the date
of publication hereinafter referred to, published in the English language
continuously as a weekly newspaper in King County, Washington.The
Kent Reporter has been approved as a Legal Newspaper by order of
the Superior Court of the State of Washington for King County.
The notice in the exact form annexed was published in regular issues of
the Kent Reporter(and not in supplement form) which was regularly
distributed to its subscribers during the below stated period. The annexed
notice, a:
Public Notice
was published on November 23, 2018 .
The full amount of the fee charged for said foregoing publication is the
sum of$297.12.
Polly Shepherd
Publisher, Kent Reporter
Subscribed and sworn to me this 23' day of November, 2018 .
Ott 'fer Tri bet, otary Public for the State of Washington, Residing in
flrting„ Washington
V-R
CITY OF KENT
NOTICE OF ORDINANCES
PASSED BY THE KENT CITY COUNCIL
The following are summaries of ordinances passed by the Kent City Council on
November 20, 2018:
ORDINANCE NO. 4288 - AN ORDINANCE of the City Council of the City of Kent,
Washington, repealing and readopting Chapter 7.02 of the Kent City Code entitled
"Water," to reorganize the chapter and update the Cross-Connection Control
sections to develop and implement procedures to ensure the elimination or control
of cross-connections between a water consumer's system and the City's public water
system and to create additional enforcement provisions allowing for more flexibility.
This ordinance shall'' take effect and be in force 30 days from and after its passage,
as provided by law.
ORDINANCE NO. 4289 - AN ORDINANCE of the City Council of the City of Kent,
Washington, amending the Kent Comprehensive Plan and its Capital Facilities
Element to include the Capital Facilities Plans of the Kent, Federal Way, Auburn and
Highline School Districts (CPA-2018.5).
This ordinance will take effect and be in force 30 days from and after its passage, as
provided by law.
ORDINANCE NO. 4290 - AN ORDINANCE of the City Council of the City of Kent,
Washington, amending Sections 12.13.160 and 12.13.170 of the Kent City Code to
adjust school impact fee schedules and the maximum allowable school impact fees.
This ordinance shall take effect and be in force 30 days from and after its passage,
as provided by law.
ORDINANCE NO. 4291 - AN ORDINANCE of the City Council of the City of Kent,
Washington, amending the Kent Comprehensive Plan and its Capital Facilities
Element to include the Capital Facilities Plan of the Puget Sound Regional Fire
Authority (CPA-2018-6).
This ordinance shall take effect and be in force 30 days from and after its passage,
as provided by law.
ORDINANCE NO. 4292 - AN ORDINANCE of the City Council of the City of Kent,
Washington, amending the Kent Comprehensive Plan and its Capital Facilities
Element to reflect a six-year plan for capital improvement projects (2019-2024)
(CPA-2017-7).
This ordinance shall take effect and be in force 30 days from and after its passage,
as provided by law.
ORDINANCE NO. 4293 - AN ORDINANCE of the City Council of the City of Kent,
Washington, amending Section 3.18.020, entitled "Certain utilities subject to tax," to
eliminate the sunset of the allocation of certain internal utility taxes to the payment
of debt in the City's other capital projects fund, and to reallocate the internal utility
taxes to the general fund once the debt in the other capital projects fund is retired.
This ordinance shall take effect and be in force 30 days from the time of passage, as
provided by law.
ORDINANCE NO. 4294 - AN ORDINANCE of the City Council of the City of Kent,
Washington, levying 2018 property taxes for the 2019 biennial budget for the City of
Kent.
This ordinance shall take effect and be in force January 1, 2019, which is more than
five days after its publication, as provided by law.
ORDINANCE NO. 4295 - AN ORDINANCE of the City Council of the City of Kent,
Washington, amending Section 3.28.050 of the Kent City Code, entitled "Imposition
of the tax - Tax or fee levied," to increase gross receipts rates and square footage
tax and establish a gross receipts cap on retailing, and Section 3.28.130 of the Kent
City Code, entitled "Limitation of revenue received," to clarify the allocation of
revenues derived by Chapter 3.28 of the Kent City Code.
This ordinance shall take effect and be in force 30 days from and after its passage,
as provided by law.
ORDINANCE NO. 4296 - AN ORDINANCE of the City Council of the City of Kent,
Washington, relating to budgets and finance and adopting the final 2019-2020
biennial budget.
This ordinance shall take effect and be in force January 1, 2019, which is more than
five days after its publication, as provided by law.
A copy of the complete text of any ordinance will be mailed upon request of the City
Clerk.
Kimberley A. Komoto, City Clerk
Kent Reporter Friday,November 23,2018 19
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togldu104 to tined of Kent, Wash nglon, ip:o0 om pn•I'hursdayyl ppvpfmPmant Hlce, l0 OUI Of PdifIP Field died In Everett,Will MNRVI318 vamonulaad
iha edught,tian or conlml amending Seddon Fghnrory 2B, 2Thu This tad at 400 oW Gawe -Pi -NialEdwrumne
of °ease-a°nnaatirmsbe- 3.2e.o50of the Kentcdy pohm mgo,mg wPI be `street m downtown excellent driving record,be able to lift50bsand -n„p
tween a water „C'°de, eniXletl bald in the Eaangmlp Kent, For more infirm." umn
consumer's pynam end Tsixp05gfee vied,"bin firrift of the has - nod Communtry Dmmt. titan, please contact Jo. odd�Un odd flUdL ssmeu nnpcea
the CIry' ppubna water °r - opener CgnlNan.q so G.ranam, Planner,
system and to create ad- cease gross receipts Room el Opp We,,
ddtiq $eMoreement pro. -fee flntl square loot- Game Street Kent, WA mell50i a56-Sd39°,vie This PgSlflon IS on the night Shift (Startle. �d[m
Vlalgrna allowVa for mere ago tax and establish A 98032. Pleas° be ad- arm...
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This ordinance shall take tallnpp end Seddon is subject to change, This ad for publlnnl'kn _neml
effect and be In Inom 30 3.28.1.30 of the Kent CIry Please cell to verlN time °n November 23,2018. hgBrS per WQPk,ThQ$dlQdpiQVdneS end 7PgWfPS -game
days from and after Its Cade, entitled"Limltetian nd date at least a week it 633608 ."harei"'hea Ao�
p¢aaago, as provided by °I rev°^°° manylvad' to before the scheduled NOTICEO PPUBLIC flexlh it.Must have knowledge of the Puget -rna,Ar�
Ina clarity the allocation f meeting.If you have any HEARING .woman,-n
ORDINANCE NO. 4269 .Vargas denied by questions, Please on, CITY OF KENT '.Soundalea.Must proycle current copy of all nrwucl.,
-AN ORDINANCE of the Choplor 3.28 of the Kent Jason Gerair Kant OFFICE OFTHE .o,mduorrgmvv
CIry Courroll cal'Ihq CIry Tnis ordinance shall take Y5o 05fi 54 Services. at EARING99 OEXAMINER
MUSE Iabstl'dckattime of interview. ,oeman�oAiaimonm,aa,
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ngt WmhM®Ln' affect and be In hoe 30
ammerdRn M. Kant jgD COP® For parc PERMIT PPdSP Prudl application to a4irn
ComprehanaM➢ PMn days from and after Ita AD COPY-For pdbd4ga- LOWER RUSSELL rma`°
end its Ca IMI F'aafltlbe assage, es provided by Joe F1Ma, November LEVEEBETBACK- 'No If .1.
p P y Tareers�^sggndl7u6141uWIg.Trrtn and be sure to nPPi
Element tin dud° the awe 23,2010 VAN DOB EN'$LAND- � �
CepXfll F CIIHI Plans ORDINANCE NO. 4296 #834Bo4 gING ELOCAAR
TION PUBL19H1NKiINC Indude AITNAAIVER InthesllbtPQ InQ. he CIX
of the Kant, Federal AN ORDINANCE of the __._ c,wraawrv,mmmev
Way g CI Council of N yit, p g e4w.aso A,•^n»s;.
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of Kent, WeshlnptpD,City Find it it hold tto consitler Hine re- For a flat Aided most usual apenings4nd to learn more about so Ant gurwebsbe:www.mundpubllshing.rpm