HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 10/16/2012 K* Kent City Council Workshop
NT October 16, 2012
Council members Present: Albertson, Boyce, Higgins, Perry, Ralph, Ranniger and
Thomas
The meeting was called to order at 5:00 p.m. by Council President Higgins, who then
announced an Executive Session of thirty minutes to discuss property negotiations.
The meeting reconvened at 5:35 p.m.
Business & Occupation Tax. Higgins noted that six decisions need to be made
regarding a Business & Occupation ordinance,
1. Research and Development, City Attorney Brubaker distributed copies of
an amendment to the Research and Development section of the ordinance
which contains an expanded definition of research and development
activities. There were no objections to the amendment.
2. Level of Exemption. Higgins proposed including a $250,000 level of
exemption, noting that that is what the Chamber requested, it is the
consensus of the communications received from the public, and that it
favors small business and in fact shifts the burden to businesses with a
greater capacity to handle it. There were no objections.
3. Target Revenue Amount. Higgins proposed that the revenue received
from the tax be limited to streets only in the amount of $5,000,000 minus
$300,000 for auditing staff. Brubaker provided copies of three options for
Section 2.38.130 and explained each. Perry proposed an amendment
saying that any remaining revenues received shall be applied to the
Capital Improvement Fund and allocated according to the direction of the
Council. After discussion, all agreed on the third option with Perry's
amendment.
4. Imposition of the Tax. Brubaker distributed copies of Section 3.28.050
and quoted the rate for manufacturing, retail, printing, and any other
business activity as .00046, and for extracting, wholesale and services as
.00152. There were no objections.
5. Sunset Clause. Higgins proposed not including a sunset clause in the
ordinance since having one would not increase the city's bond rating.
Discussion was held regarding the bond rating, the fact that maintenance
will always be required, and the fact that the Council can sunset some-
thing at any time. Consensus was to not include a sunset clause in the
ordinance.
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