HomeMy WebLinkAbout4217AN ORDINANCE of the City Council of the
City of Kent, Washington, amending Section
3.18.020 of the Kent City Code entitled "Certain
utilities subject to tax," to include crosswalks and
the residential traffic calming program as eligible
expenses under the solid waste utility tax.
RECITALS
A. The City Council adopted a residential traffic calming program
via resolution to address speeding in residential areas; and
B. No funding mechanism currently exists to fund residential
traffic calming projects; and
C. The solid waste utility tax currently includes improvements to
residential streets.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. -Amendment -KCC 3.18.020. Section 3.18.020 of the
Kent City Code, entitled Certain utilities subject to tax," is amended as
follows:
1 Amend KCC 3.18.020
Re; Certain Uti/ities 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 (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) 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
I
mprovement 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 -
2 Amend KCC 3.18.020 -
Re: Certain Utilities Subject to Tax
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
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 eighteen and four -tenths (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 eighteen and four -tenths (18.4) percent tax will be allocated
as follows: six and one-half (6.5) percent to the general fund, three -tenths
(0.3) percent to youth/teen programs, one (1) percent to street
V
mprovement programs, and ten and six -tenths (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 ten and six -tenths (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, sewer, or
3 Amend KCC 3.18.020 -
Re: Certain Utilities Subject to Tax
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: five and seven -tenths
percent to the general fund for the use as allocated in the city's budgets
four (4) percent to the general fund only for the installation, operation,
maintenance, and repair of street lighting, 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 street improvement programs; and three -
tenths (0.3) percent to youth/teen programs.
a. The four (4) percent allocation for street lighting 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). After
payment of all capital debt, unless otherwise allocated by council, the
remaining 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. If the
cost to install, operate, maintain, and repair street lighting 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.
4 Amend KCC 3.1
8.020 -
Re: Certain Utilities Subject to Tax
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. -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
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 4. -Effective Date. This ordinance shall take effect and
be in force 30 days from and after its passage, as provided by law.
5 Amend /CCC 3..Y 8.020
Re; Certain Uti/hies Subject to Tax
APPROVED AS TO FORM:
T BRUBAKER, CITY ATTORNE�Ya
PASSED: f day of (�
APPROVED: day of ri
2016.
2016.
PUBLISHED: day of , 2016.
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.
6 Amend KCC 3.18.020
Re: Certain Util/ties Subject to Tax