HomeMy WebLinkAboutCOW 2011-09-26 Item 4D - Discussion - Non-Profit Fee Analysis for Revenue Generating Regulatory LicenseCOUNCIL AGENDA SYNOPSIS
Initial r----------- ITEMNO.
Meeting Date Prepared by Mayors renew CoAocikevien
09/26/11 JFS 4.D.
ITEM INFORMATION
I CAS NUMBI ;R: 11-095 STAFF SPONSOR: JENNIFER F SANTA INES ORIGINAL AGENDA DA'Z'E: 09/26/11
AGrNDA I'Trm TrTI_,I_, Revenue Generating Regulatory License Non Profit Fee Analysis
C\ rr( ;O R) Di.rcu.ision Motion Resolution Ordinance BidAward .Public'Hearino Other
ll>g Da1c 09/26/11 l�lg Date tl�tg Date tl�tg Date tl7tg Date 111t,g Date Mtg Dale
SI'>O Council Mayor HR DCD Finance Fire IT .P &R Police PW
SPONSOR Finance Safety Committee members requested additional information from Staff
SUMMARY regarding revenue impacts if the City removed the exemption status for non profit
agencies with certain employee count thresholds.
R� ?I'll ?WI?D I3Y COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 09/20/11 COMMITTEE CHAIR: HOUGARDY
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance Department
COMMITTI -"I" Forward to Committee of the Whole for discussion
COST IMPACT FUND SOURCE
]3X1'I;N�DI'TURISIRJ?OUIR:I�D AMOUNTBUDGETED APPROPRIATION REQUIRED
$0
Fund Source:
Comments: Addti revenue source for the City; amount dependent on Council recommendation
MTG. DATE
09/26/11
MTG.DATEI ATTACHMENTS
09/26/11 1 informational Memorandum dated 9- 21 -11, revised after FS meeting
Non Profit Analysis Spreadsheet
Minutes from Finance and Safety Committee meeting of 9/20/11 were not available
RECORD OF COUNCIL ACTION
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52
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator
DATE: September 22, 2011 (Attached spreadsheet revised after FS meeting)
SUBJECT: Revenue Generating Regulatory License (RGRL) Information on Non
Profit businesses
ISSUE
The Finance Department is responding to information requested by members of the
Finance and Safety Committee regarding the non profit exemption status in the City and
the impact on revenues should that exemption be lifted.
BACKGROUND
At the June 7, 2011 Finance and Safety Committee meeting, committee members
requested additional information from staff regarding the revenue impacts if the City
decided to remove the non profit exemption from businesses with certain employee
count thresholds as follows:
Impact on revenue upon removing
the
non profit
exemption
from businesses
with more than 20 employees
Impact on revenue upon removing
the
non profit
exemption
from businesses
with more than 50 employees
Impact on revenue upon removing
the
non profit
exemption
from businesses
with more than 75 employees
Impact on revenue upon removing
the
non profit
exemption
from businesses
with more than 100 employees
DISCUSSION
Tukwila Municipal Code Section 5.62.040.A.1 provides an exemption from the RGRL
fee of $55 per full -time equivalent employee for IRS 501(c)(3) tax exempt organizations,
governmental entities, non profits operating for religious purposes, as well as civic
groups, service clubs and social organizations. The second largest employer in the City
is a tax exempt 501(c)(3) organization. There are currently 76 businesses in Tukwila
operating under a non profit exemption employing over 4,000 employees.
Not including governmental agencies, if all of the businesses who qualified for a non-
profit exemption had paid the RGRL fee, the City would have received over $146,000.
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INFORMATIONAL MEMO
Page 2
There are 52 businesses with counts of less than 20 full -time equivalent employees. If
these businesses were to be assessed the RGRL fees, it would generate approximately
$14,000 in revenues to the City.
Of the nine non profit employers in Tukwila with more than 20 but less than 50 full -time
equivalent employees, it could produce over $15,000 in revenue from additional RGRL
fees.
One organization having over 50 but less than 75 full -time equivalent employees would
create $3,800 in additional revenue from RGRL assessed fees.
There are two governmental entities having over 75 full -time equivalent employees,
however, they are excluded from this analysis.
There are two Tukwila businesses with over 100 full -time equivalent employees which
could generate approximately $114,000 in additional City revenue from RGRL fees.
RECOMMENDATION
This item is for information only. No recommendation on changes to the RGRL
ordinance is made at this time. Any proposed changes by committee members will be
incorporated into a future agenda item for the Finance and Safety Committee.
ATTACHMENT
Non-Profit Analysis Spreadsheet
(Updated to exclude governmental agencies at the request of the FS Committee)
WA2011 Info Memos\NonProfitRGRL.doc
54
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