HomeMy WebLinkAbout4020ORDINANCE NO. J../ 0 J...0
AN ORDINANCE of the City Council of the
City of Kent, Washington, amending section
3.18.020 reallocating utility taxes for the
maintenance and operation of street lights and fire
hydrants.
RECITALS
A. The Washington Supreme Court recently determined that
providing fire hydrants and fire suppression systems as well as street lights
are general government services payable out of the city's general fund.
B. Because some of these costs were previously carried by the
city's water utility, it is appropriate to raise and reallocate the city utility
tax to provide additional general fund revenue to cover these costs.
C. The city council has determined to raise its utility taxes by
four percent (4%). This tax will not raise rates. Rather it will shift some
existing revenue from the utility tax account into the general fund, where
that new revenue will help pay for these street lighting and fire system
costs, some of which were previously paid by the utility.
D. In order to assure that this additional revenue is applied
conservatively, restrictions will be put in place to assure that these
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revenues are only allocated to paying the cost to install, operate, maintain
and repair street lighting, fire hydrants, and fire suppression systems in
the city.
E. Further, any general fund revenues freed up by the infusion of
this additional utility revenue will be allocated to the city's capital
improvement fund(s). All transferred monies that become available in the
reallocated capital improvement fund accounts must be applied equally to
(1) information technology capital programs directed at funding long and
short-term hardware and software replacement and (2) street capital
programs, but further restricted to funding street maintenance, repair, and
signage only.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. -Amendment. Section 3.18.020 of the Kent City Code
is 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
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six (6) percent of the total gross income, including revenues from
intrastate toll, derived from the operation of such business within the city.
This six (6) percent tax will be allocated as follows: four and seven-tenths
(4.7) percent to the general fund, three-tenths (0.3) percent to youth/teen
programs, and one (1.0) 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 (6) percent of the total
gross income from such business in the city during the tax year for which
the license is required. This six (6) percent tax will be allocated as follows:
four and seven-tenths (4. 7) percent to the general fund, three-tenths (0.3)
percent to youth/teen programs, and one (1.0) 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 (6) percent of the
total gross income from such business in the city during the tax year for
which a license is required. This six (6) percent tax will be allocated as
! I follows: four and seven-tenths ( 4. 7) percent to the general fund, three-
tenths (0.3) percent to youth/teen programs, and one (1.0) percent to
street improvement programs.
4. Upon every person, firm, or corporation engaging in or
carrying on a business providing solid waste collection services, a tax equal
to seven and eight-tenths (7.8) percent of the total gross income from
such business in the city during the tax year for which the license is
required. This seven and eight-tenths (7.8) percent tax will be allocated
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as follows: six and one-half (6 1/2) percent to the general fund, three-
tenths (0,3) percent to youth/teen programs, and one (1.0) percent to
street improvement programs.
5. Upon every person (including the city) engaging in or carrying
on the business of selling, furnishing, or distributing water, sewer, or
drainage services, a tax equal to six (6) ten (10) percent of the total gross
income from such business in the city during the tax year. _This six (6) ten
ilQl_percent tax will be allocated as follows: four and seven-tenths ( 4. 7)
percent to the general fund, four ( 4) percent to the general fund, only for
the installation, operation, maintenance and repair of street lighting. fire
hydrants, and fire suppression systems, three-tenths (0.3) percent to
youth/teen programs, and one (1.0) percent to street improvement
programs. The four (4) percent allocation for street lighting and fire
hydrants and suppression is further contingent on the requirement that the
city allocate the funds freed up by this revenue to the city's capital
improvement fund(s). All transferred monies that become available in
these reallocated capital improvement fund accounts must be applied
equally to (1) information technology capital programs directed at funding
long and short-term hardware and software replacement and (2) street
overlay capital programs, but further restricted to funding street
maintenance, repair, and signage only, If the cost to install, operate,
maintain, and repair street lighting, fire hydrants. and fire suppression
1 systems is less than the four percent (4%) allocation for these purposes,
I · the full four percent (4%) amount must still be allocated from the general
fund to capital programs for the above-stated purposes.
B. In computing the tax provided in subsection (A), the taxpayer may
deduct from total gross income the following items;
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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. -Severability. 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.
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; references to other local, state or federal laws,
codes, rules, or regulations; or ordinance numbering and
section/subsection numbering.
SECTION 4. -Effective Date. This ordinance shall take effect and
be in force beginning January 1, 2012, which is more than (5) days after
its passage and publication.
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ATTEST:
APPROVED AS TO FORM:
PASSED: 13 day of ~LJ.~ I 2011.
APPROVED: 1'1 day of £~u~Vvl I 2011.
PUBLISHED: I & day of ~-J 2011.
I hereby certify that this is a true copy of Ordinance No. tf D).£>
passed by the City Council of the City of Kent, Washington, and approved
, by the Mayor of the City of Kent as hereon indicated.
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