HomeMy WebLinkAbout4128AN ORDINANCE of the city council of the
city of Kent, Washington, amending Section
3.18.020 of the Kent City Code to increase the
solid waste utility tax to 18.4% and allocating the
increase beyond the existing tax rate to be applied
to the maintenance of residential roads.
RECITALS
A. The city operates its own solid waste utility, and contracts
with Republic Services to collect, haul, recycle, and dispose of residential
and commercial waste throughout the city.
B. The city's solid waste contractor, like all solid waste haulers
throughout the region, uses large, heavy trucks to collect solid waste, yard
waste, and recyclable materials throughout the approximately 320 miles of
city streets.
C. Although tractor -trailer combinations are generally heavier on
average than the contractor's trucks, the solid waste, yard waste, and
recycling trucks are five or more times heavier than a typical car or SUV
and have a disproportionate impact that causes increased maintenance,
repair, and overlay of city streets. Unlike most tractor -trailer
combinations, the solid waste hauler's trucks by necessity regularly drive
upon the city's residential streets in order to serve the utility's residential
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customers. The City estimates that the impact of one of the hauler's fully -
loaded vehicles on a residential street is equal to the impact of 1,500 cars.
D. The utility's constant truck traffic across residential streets
dramatically decreases the life of residential streets in particular, because
otherwiseI heavy truck traffic use of residential streets occurs on a minimal
basisV
E. Because of this disproportionate impact to city streets, and in
particularI the city's residential streets, the city council has determined
that the solid waste utility should contribute additional funds to maintain
and repair the city's streets by raising the solid waste utility tax from the
current rate of 7.8% to a new rate of 18.4%. The city estimates that this
increase will generate approximately three million dollars in new revenue
that will be limited to residential street repair and maintenance only.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
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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Ordinance
six (6) percent of the total gross income, including revenues from
K
ntrastate 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) 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) 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
follows: four and seven -tenths (4.7) percent to the general fund, three -
tenths (0.3) percent to youth/teen programs, and one (1) percent to street
improvement programs.
4. Upon every person, firm, or corporation engaged in or
carrying on the business providing cable television services, a tax equal to
six (6) 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
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proportion determined by the city council in its biennial budget, including
all amendments.
5. 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 tenthsa[ghteen and four tenths - percent 18.4%
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)
eighteen and four tenths percent 18.4% tax will be allocated as follows:
six and one-half (6.5) percent 6.5% to the general fund, three -tenths
fG-.-3}three tenths percent 0.3% to youth/teen programs, ai=i-d one fl
percent.il?/ol to street improvement programs, and ten and six tenths
percent (10.6%) to maintain and repair residential streets, including
related impacts to curb, gutters, sidewalks and other road amenities, but
this ten and six tenths percent (10.6%) 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.
6. 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 thirteen (13) percent of the total gross
income from such business in the city during the tax year. This thirteen
(13) percent tax will be allocated as follows: four and seven -tenths (4.7)
percent to the general fund for the use as allocated in the city's budget;
four (4) percent to the general fund only for the installation, operation,
maintenance, and repair of street lighting, fire hydrants, and fire
suppression systems subject to the limitations provided in subsection
(A)(6)(a) of this section; two (2) percent dedicated solely to the
repayment and elimination of debt in the city's "other capital projects"
fund subject to the limitations provided in subsection (A)(6)(b) of this
section; one (1) percent to be applied only to establishing the city's fund
4 So/id Waste Utility
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balance consistent with council policy and subject to the limitations
provided in subsection (A)(6)(c) of this sections one (1) percent to street
improvement programs; and three -tenths (0.3) percent to youth/teen
programs.
a. 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 (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. If the cost to install, operate, maintain, and
repair street lighting, fire hydrants, and fire suppression systems is less
than the four (4) percent allocation for these purposes, the full four (4)
percent amount must still be allocated from the general fund to capital
programs for the above -stated purposes.
b. The two (2) percent internal tax allocation will be
dedicated to the city's capital improvements fund for the sole purpose of
retiring all debt in the city's other capital projects fund. This two (2)
percent portion of the tax shall be eliminated 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.
c. The one (1) percent internal tax allocation will be
dedicated to the city's general fund balance solely for the purpose of
increasing the fund balance until that balance equals ten (10) percent of
the city's prior year operating expenses. This one (1) percent portion of
the tax shall be eliminated on the first day of the year following the date
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the city's general fund balance equals ten (10) percent of the prior year's
operating expenses.
B. In computing the tax provided OU (A) of this section, the
taxpayer may deduct from total gross income the following items:
iR 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, that
decision shall not affect the validity of the remaining portion of this
ordinance and the same shall maintain its full force and effect.
SECTION 3. -Corrections by City Clerk or Code Reviser. Upon
approvaI
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 . -Effective Date. This ordinance shall take effect and be
in force five (5) days from and after its passage and publication as
provided by law, however, the utility tax increase implemented in this
ordinance will not take effect and the city will not impose this increase until
January 1, 2015.
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ATTEST:
ONALD F.
do rd, a.'
PASSED: day of �/���' , 2014.
APPROVED: �- day of �G-/ , 2014.
PUBLISHED: day of , 2014.
I hereby certify that this is a true copy of Ordinance No. ��'
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
NALD F
G
CITY CLERK
solid Waste Utility Tax
Ordinance