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HomeMy WebLinkAboutCOW 2009-04-27 Item 4B - Discussion - Solid Waste Utility Tax1 CAS NUMBER: 09-054 AGENDA ITEM TITLE Solid Waste Utility Tax SPONSOR'S SUMMARY Fund Source: Comments: EXPENDPTURE REQUIRED MTG. DATE 04/27/09 MTG. DATE 04/27/09 09 -D5 Lf Mtg Date 04/27/09 Mtg Date COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by 1 Mayors review 04/27/09 FI ITEM INFORMATION Cortrtcil,� v, ORIGINAL AGENDA DA'Z'E: APRIL 27, 2009 AMOUNT BUDGETED RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 04/20/09 (revised after UC) 2008 AWC Utility Tax Survey Solid Waste Utility Tax Options Solid Waste Rates Minutes from the Utilities Committee Meeting of 04/14/09 ITEM NO. CATEGORY Discussion Motion Resolution Ordinance Bid Award 1 1 Public Hearing Other Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police PWI Under Washington State law, cities are authorized to levy a utility tax on solid waste services. Of the South King County cities that charge solid waste utility taxes, the average tax charged is approximately 6 The total utility tax revenue that the City would receive depends on (1) the utility tax selected; (2) the type of account that would be affected with the tax; (3) whether the tax would be applied to both the disposal and service fees. The implemention of a solid waste utility tax would require Council approval and an ordinance. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 4/14/09 RECOMMENDATIONS: SPONSOR /ADMIN. Public Works CoMMII ILE Unanimous Approval; Forward to C.O.W for discussion COST IMPACT FUND SOURCE AP PROPRIATION REQUIRED TO: Mayor Haggerton Utilities Committee FROM: Public Works Director DATE: April 20, 2009 SUBJECT: Solid Waste Utility Tax ISSUE Estimated revenues that would be generated from a utility tax on solid waste services. BACKGROUND During the March 10, 2009 Utilities Committee Meeting, the Committee requested a report providing revenue projections assuming a 4 6% and 8% utility tax on solid waste services. DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Under Washington State law, cities are authorized to levy a utility tax on solid waste services. Currently, there is no limitation placed on solid waste utility tax rates. In a 2008 survey conducted by the Association of Washington Cities (Attachment 1), over 140 cities reported imposing utility taxes on solid waste services. Some cities reported rates as high as 20 -40 Of the South King County cities that charge solid waste utility taxes, the average is approximately 6 The total utility tax revenue that the City would receive depends on the following key factors: Jim Haggerton, Mayor 1. Utility tax rate selected. Based on the Utilities Committee's guidance, a 4 6% and 8% utility tax rate on gross revenues is assumed. 2. Type of account (commercial or residential) that would be affected with the tax. 3. A determination must be made on whether the tax would be applied to both the disposal and service fees. Attachment 2, Solid Waste Utility Tax Options, provides four options for the Committee's consideration. Based on the assumptions and factors discussed above, the City could potentially collect approximately $12,298.71 to $46,176.87 per month in solid waste utility taxes. Attachment 3, Solid Waste Rates, illustrates the effect of Option 1 on selected residential and commercial service levels. The implementation of a solid waste utility tax would require Council approval and an ordinance. No change to the current contract with Allied Waste is required. RECOMMENDATION Present to the Committee of the Whole for information and discussion. Attachments: 2008 AWC Utility Rate Survey Utility Tax Options Solid Waste Rates P\PROJECTS\SOLID WASTE\Infomation Memo -Solid Waste Utility Tax 2 -sb gl doc Utility Tax Rates (2008 AWC Tax and User Fee Survey) Attachment 1 Aberdeen Airway Heights Albion Algona Almira Anacortes Arlington Asotin Auburn Bainbridge Island Battle Ground Beaux Arts Village Bellevue Bellingham Benton City Bingen Black Diamond Blaine Bonney Lake Bothell Bremerton Brewster Bridgeport Brier Buckley Bucoda Burien Burlington Camas Carbonado Carnation Cashmere Castle Rock Cathlamet Centralia Chehalis Chelan Cheney Chewelah Clarkston Cle Elum Clyde Hill Colfax College Place Colton Colville Conconully Concrete Connell Natural Gas` 6% 6% 6% 6% 6% 6% 5% N/A 6% No 5% 6% 6% 6% 6% 6% 6% 6% N/A 6% 6% 6% 6% 6% No 6% 6% 3% 6% No 6% 6% No No 6% N/A 5% Electricity: 6% 6% 6% 6% 5% 6% 5% 6% 6% No 5% 6% 6% 6% 6% 6% 6% 6% 6% No No 6% 5% 5% N/A 3% 6% 6% 6% 6% N/A 6% 14.75% 14.75% 6% 6% 6% 6% 6% 6% Telephone 6% 6% 6% 6% 7% 6% 6% 6% 6% 5% No 6% 6% 6% No No No 6% 4.80% 6% 6% 6% 6% 6% 1% 6% 1% 6% 6.50% 6% 5% 6% 6% 6% No 6% No 6% 5% 6% No 6% 6% 3% (cell phone 6 No No 6% 6% 5% No 3% 3% 6% 3% 6% 6% 6% 1% 6% No 6% 6% 6% No 6% 6% 4% (cell phone Page 1 of 6 :Cable No No 6% Garbage 10 7 5% No No :6% ..l 6% 8.50% 6°!0 8% 5% I 5% 9.50% 8% '8.60% 1 5% No 9.00% 9% 6.00 j 6% `.6.00. 1 No 6:00 '.7 6.00% 6% 6 4% _4:00% 6% 6% 6% :._6.00% No 1 No No :No No No No No 6% 1 6% 6% 1.: 6.00 6% 6% 6% 5% 5% Yes 1 5:00% Water 2% 10% 6% 7% 5% 6% 6% 6% 16% No 5% No 6% No No 5% 6% 5% Sewer 2% 15% 6% 7% 5% 6% 6% 6% 16% No 5% No 6% 8.50% 8% 5% 8% 5% No 9% No No 6% 6% 5% 5% 3% 3% 1% 1% 6% 6% 9.20% 9.50% 11% 11% 6% 6% No 14% 6% 6% No 6% No No 5% 6% 5% Stormwater 2% No 6% 7% No N/A 6% 6% 16% No 5% No N/A 8.50% 8% No 8% 9% No No No No No No No No No No No 5% No 1% No N/A No No N/A N/A No 6% 1 No 1 No 1 No No N/A Utility Tax Rates (2008 AWC Tax and User Fee Survey) Attachment 1 City Cosmopolis Coulee City Coulee Dam Coupeville Covington Creston Cusick Darrington Davenport Dayton Deer Park Des Moines DuPont Duvall East Wenatchee Eatonville Edgewood Edmonds Electric City Ellensburg Elma Elmer City Endicott Entiat Enumclaw Ephrata Everett Everson Fairfield Farmington Federal Way Ferndale Fife Fircrest Forks Friday Harbor Garfield George Gig Harbor Gold Bar Goldendale Grand Coulee Grandview Granger Granite Falls Hamilton Harrah Harrington Hartline Hatton Hoquiam Hunts Point Ilwaco Natural Gas No N/A N/A 5.50% No N/A No N/A 6% N/A 6% 6% No No No 6% 6% No No N/A 4% N/A 4.50% No N/A 7.75% 6% 4.50% 6% No N/A 6% 5% 6% 6% N/A 6% N/A No N/A No N/A 6% N/A Electricity_ Telephone Cable 'Garbage Water Sewer Stormwater No No No 6% 6% No 6% No No No No No No 6% No No No N/A 6% 6% 6% 6.00% 6% 6% N/A 5.50% 5.50% 5.50% 5.50% No No No No No No No:_ 10% 10% 5% 6% 6% 8:00% 8% N/A N/A No No No 18:00% 18% 18% No 4% 7% 4% No No No 6% 6% 5% 12.00% 12% 12% No 6% 6% 6% 6.00% N/A N/A No 6% 6% No 6.00°/0.- 6% 6% 6% 6% 6% 6% 6:00°!0: 6% 6% No No No No No.' No No No 5% No No .5.00 5% 5% 5% No No No :.No No No No 6% 6% 1% 6.00% 6% 6% 6% 6% 6% 5% 77:60%. 10% 10% No No No No 1 :2•No.: No No No No No No No No No No 6% 6% 6% 6% 6% N/A 6% 6% No 8.00 8% 8% N/A 6% 6% 8% 8,00 15% 15% N/A 4.50% 4.50% No 6% 6% 6% No No No 6% 6% No 6% No No No No No 7.75% 7.75% 7.75% 7.75% 7.75% 7.75% 7.75% 1 6% 6% No 6% 6% 6% 1 3% 4.50% 4.50% 4.50 4.50% 4.50% 4.50% 6% 6% 6% 8:50 6% 6% 6% Page 2 of 6 No No No No No No No 4% 4% No 6:00% 6% 6% No 6% 6% 6% ..6.00 i:' 6% 6% N/A 5% 5% No 5% 5% 5% 6% 6% 6% .=6:00% 6% N/A N/A 6% 6% No 6.00% 6% 1 6% No 6% 6% 6% 6:00% 6% 6% N/A 6% 6% 6% 40:00 24.20% 6% No N/A N/A N/A N/A N/A N/A 6% 6% 6% No N/A N/A 6% 6% N/A 12% 12% N/A No No No 1, ...No No No No 6% 6% N/A 6% N/A N/A 6% 6% 8% 8.00% 8% 8% 8% 1 6% 6% 6% 1 6.00% No No No Utility Tax Rates (2008 AWC Tax and User Fee Survey) Attachment 1 City Natural Gas Electricity- Telephone Cable 1 Garbage Water Sewer 1 Stormwater N/A No No N/A 1 No 1 N/A 1 No Index lone Issaquah Kahlotus Kalama Kelso Kenmore Kennewick Kent Kettle Falls 'Kirkland Kittitas Krupp La Center La Conner Lacey LaCrosse Lake Forest Park Lake Stevens Lakewood Lamont Langley 1 Latah Leavenworth Liberty Lake Lind Long Beach 1 Longview Lyman Lynden Lynnwood Mabton Malden Mansfield Maple Valley 1 Marcus Marysville Mattawa McCleary Medical Lake Medina Mercer Island Mesa Metaline Metaline Falls Mill Creek Millwood Milton Monroe Montesano Morton Moses Lake Mossyrock 6% 6% 6% 6% 8.50% 6% 6% 6% No 6% 6% 6% 6% 5% 5% No N/A N/A No N/A 6% N/A 6% No No 2.25% N/A 5% 6% 6% 6% No No No No 2% 6% 6% 6% N/A 6% 6% 6% 4% 8.50% 6% 6% 6% No 6% 6% 6% No 5% 5% No 6% 6% 6% 6% 6% 6% 6% No 6% 2.25% 6% 5% 6% 6% 6% No No No No 6% 6% 6% 6% 6% 6% 6% 6% 4% 8.50% 6% 6% 6% No 6% 6% 6% 6% 6% 6% No 6% 6% 6% 6% 6% 6% 6% 3% 6% 2.25% 6% 5% 6% 6% 6% No No No No No 6% 6% 6% 6% 1% No 1% No 7% No 6% No No 6% No N/A 6% N/A 6% No 6% No 6% 6% 6% No 6% No N/A No N/A No 6% No 6% No No No No No No 6% 3% 6% Page 3 of 6 6.00% 8.00 7.00 7.80 %I• 7:50% 6:00 No" 6 :00% •6.00 !0 No..."- 6:00% .6.00%t-.. :7:00% 17:00% No No I No 1 No 6% 8% No 7% 6% 7.50% No No No 6% N/A No No No No 6% 6% 6% 6% 7% 6% 6% No No No 10% 6% No No No No No No 10% 6% 8% No 7% 6% 7.50% No No No 6% N/A No No No No 6% N/A 6% 6% 7% N/A 6% No N/A No N/A 6% 6% 6% 17% 17% No No No No No No No No No No 8:00% 8% 8% 6.00% No No N/A No No No 6% 7.50% N/A No No 6% N/A No 0 No No 6% N/A N/A 6% 7% N/A 6% No N/A No N/A 6% 6% No No No No No No No No N/A No 1 Utility Tax Rates (2008 AWC Tax and User Fee Survey) Attachment 1 City Mount Vernon Mountlake Terrace Moxee Mukilteo Naches Napavine Nespelem Newcastle Newport Nooksack Normandy Park North Bend North Bonneville Northport Oak Harbor Oakesdale Oakville Ocean Shores Odessa Okanogan Olympia Omak Oroville Orting Othello Pacific Palouse Pasco Pateros Pe Ell Pomeroy Port Angeles Port Orchard Port Townsend Poulsbo Prescott Prosser Pullman Puyallup Quincy Rainier Raymond Reardan Redmond Renton Republic Richland Ridgefield Ritzville Riverside Rock Island Rockford Rosalia Naturai Electricity 6% 6% 6% 6% 6% 6% 6% 6% N/A 6% N/A 5% No No No No N/A 6% 6% 6% 6% 6% 6% 6% 5% 5% N/A 6% 6% 6% N/A 6% No 6% N/A 6% 6% 6% N/A 6% 9% 9% N/A 6% 6% 6% 6% 6% No No 6% 6% 8.50% 8.50% N/A 6% No No No 6% N/A 6% 2% 6% N/A 6% 6% 6% No No 6% 6% 8% 8% 6% 6% 4% 4% 6% 6% 6% 6% No No 6% 6% 6% 6% N/A 6% 8.50% 8.50% 6% 6% 6% 6% No No No No 4% 4% Telephone Cable 6% 1 7% 6% 1 5% 6% 6% 6% 6% 6% 6% 5% 5% No No No No 6% No 6% 6% 6% 6% 6% No 5% No 6% No 6% No 6% 6% 4.15% 6% 6% No No 6% 6% 9% No 6% 6% 6% 6% 8.50% 6% No 6% 6% 6% 6% 6% No 6% 8% 6% 6% 6% 6% No 6% 6% 6% 8.50% 6% 6% No No No 7% 8.50% 6% No 6% No 4% No No N/A 6% No 3.80% No 6% 6% No No 6% No 7.50% No No No No No Page 4 of 6 2.50% No 5% 6% Garbage 7.00 10.00% .6.00% "6:00% No 6 6 :00% 6.00 24.00% 1000% 6 :0.0.% ;;No 10:00°% 20:00 6.00% .6:00% 1 Water N/A 10% 6% No 6% 5% No No 6% No No 6% No 10% 6% 6% No 6% 24% 10% 7% 10% No No 6% No 8.50% 6% No 6% 8% 5% 20% 6% 5% 10% 8% 8% 4% 6% 6% No No 6% 6% 10.50% 6% 10% No No No Sewer 7% 10% 6% No 6% 5% No No 6% No No 6% No N/A 6% 6% No 6% No 10% 7% 10% No No 6% No 8.50% 6% No 6% 8% 5% 20% 6% N/A 10% 8% 8% 4% N/A No 6.60% No 6% 6% 10.50% 6% 10% No No No Stormwater No 10% N/A 6% N/A N/A No No No No No No No N/A 6% N/A No 6% No N/A 7% N/A No No Yes No 8.50% No No N/A 8% N/A 20% 6% N/A No N/A 8% N/A N/A No No No No N/A 8.50% No No No No No Utility Tax Rates (2008 AWC Tax and User Fee Survey) Natural_ Gas Electricity .I Telephone Cable N/A 5.24% 1 5% City Roslyn Roy Royal City Ruston Sammamish SeaTac Seattle Sedro Woolley Selah Sequim Shelton Shoreline Skykomish Snohomish Snoqualmie Soap Lake South Bend South Cle Elum South Prairie Spangle Spokane Spokane Valley Sprague Springdale St John Stanwood Starbuck Steilacoom Stevenson Sultan Sumas Sumner Sunnyside Tacoma Tekoa Tenino Tieton Toledo Tonasket Toppenish Tukwila Tumwater Twisp Union Gap Uniontown University Place Vader Vancouver Waitsburg Walla Walla Wapato Warden Washougal N/A No No No 6% 6% 6% 3% 6% 6% 6% 6% N/A N/A No 6% 6% No No N/A No 6% 6% 5.25% 6% 6% N/A No 5% N/A 8.50% 6% 6% N/A 6% 6% 6% N/A 6% N/A 6% 6% No No No 6% 6% 6% 3% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% No No 6% No 6% 6% 5.25% 6% 6% 6% No 5% 6% 8.50% 6% 6% 6% 6% 6% 6% 6% 6% 5% 6% 1 6% No No No 6% 6% 6% 3% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% No No 6% No 6% 6% 5.25% 6% 6% 6% No 5% 6% 8.50% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% Page5of6 N/A No No No 10% 6% 6% N/A 6% 6% N/A 6% 6% N/A 6% No No 6% No No 6% No 3% 5% No 6% 8% 6% No 5% No 6% 6% No 9% No No 6% N/A No No 7% Garbage l 6.00 =No. No- .:.No 1:1 :50% "2.00 6.00% z ..5:33 3.60% 10:00% 20:00% 6.00% 6.00% 6:00 00% 32:00% :6.50% ;'10.00.% Water 6% No No No No 15.54% No 6% 3% 5% No 5.33% 6% 10% 9% 6% 3% 20% No 5% 6% No 6% 6% 6% 6% 8% 4% 6% 5% 1% 32% No 6% 9% No No No 6.50% 16% No 10% Sewer 6% No No No No 12% 2% 6% 3% 5% No No 5.33% 6% 10% 9% 6% 8% 20% No 3.85% 6% No 6% 6% 6% 6% 8% N/A 6% 5% 1% 32% No 6% 9% No No No 6.50% 16% No 10% Attachment 1 Stormwater No N/A No No No 11.50% 2% No NIA 5% 6% No 5.33% 6% N/A 9% N/A No 20% No No N/A No 6% 6% No N/A 8% N/A N/A 5% N/A No No 6% N/A No No No No 16% No 10% .::City Washtucna Waterville Waverly Wenatchee West Richland Westport White Salmon Wilbur Wilkeson Wilson Creek Winlock Winthrop Woodinville Woodland Woodway Yacolt Yakima Yarrow Point Yelm Zillah Utility Tax Rates (2008 AWC Tax and User Fee Survey) I Natural Gas.. Electricity 1 Telephone Cable No No 1 No No N/A 6% 1 6% 3% No No No No 6% 6% 6% 5% 8.50% 8.50% 8.50% No N/A 6% 6% 3% No No No No N/A No 6% No 6% 6% 6% N/A 2% No 5% 5% 6% N/A 6% 6% 2% 2% 4% 5% 5% 5% 6% 6% 6% N/A 5.30% 5.30% 6% 6% 6% 5% 5% 4% 4% 6% 6% 5% 4% 6% Page6of6 5% 6% No No 6% 4% 6% No 4% 6% Garbage '7.00% 3:60% 15.00% Water 7% 6% No 15% 12.50% 7% No Other 6% 7.90% 5% 15% No No No N/A 14% No 4% 30% Sewer 7% 5% No 15% 12.50% 7% No Other 6% No 5% 15% No No No N/A 14% No 4% 30% Attachment 1 Stormwater No No 15% 1 No No No No 6% No 5% No No No No Yes I No I No 4% No City of Tukwila Attachment 2 Solid Waste Utility Tax Options Option #1: Increase Disposal Service fees on all accounts Account Type: 4.0% I 6.0% Residential $1,883.76 $2,825.65 Commercial 1 21,204.67 31,807.00 'Total Monthly Revenue: I $23,088.43 1 $34,632.65 8.0% $3,767.53 42,409.34 1 $46,176.87 Option #2: Increase only Service fees on all accounts (Account Type: 1 4.0% 6.0% 1 8.0% Residential 1 $1,092.58 $1,638.87 $2,185.17 'Commercial I 12,298.71 18,448.06 24,597.42 1 (Total Monthly Revenue: I $13,391.29 1 $20,086.93 1 $26,782.59 1 Option #3: Increase Disposal Service fees on Commercial account Account Type: 1 4.0% 6.0% 8.0% I Commercial 1 21,204.67 31,807.00 42,409.34 1 Total Monthly Revenue: 1 $21,204.67 I $31,807.00 I $42,409.34 Option #4: Increase only Service fees on Commercial account Account Type: Commercial Total Monthly Revenue: P:IPROJECTSISOLID WASTE1Utility Tax Options -4 -8-09 4.0% 6.0% 1 8.0% 12,298.71 18,844.06 1 24,597.42 1 $12,298.71 1 $18,844.06 1 $24,597.42 1 SOLID WASTE RATES Attachment 3 Solid Waster Utility Tax Option #1 (Monthly Disposal Service Charges) Residential: Description 10 -Gal Mini Can 20 -Gal Mini Can 32 -Gal Can /Toter 4 -Gal Gal Toter 90 -Gal Toter Commercial: Description 1 -Yard Container 2 -Yard Container 4 -Yard Container 6 -Yard Container 10 -Yard Container P:\PROJECTS \SOLID WASTE \Solid Waste Rates with Utiity Tax Applied- Optionl .doc Current Rates 4% 6% 8% 7.55 7.85 8.00 8.15 8.87 9.22 9.40 9.58 11.97 12.45 12.69 12.93 17.14 17.83 18.17 18.51 24.74 25.73 26.22 27.72 Current Rates 4% 6% 8% 12.36 12.85 13.10 13.35 21.68 22.55 22.98 23.41 41.11 42.75 43.58 44.40 57.37 59.66 60.81 61.96 106.07 110.31 112.43 114.56 UTILITIES COMMITTEE Meeting Minutes April 14, 2009 5:00 p.m. Conference Room #1 PRESENT Councilmembers: Kathy Hougardy, Chair; Pam Linder, and Dennis Robertson Staff: Jim Morrow and Frank Iriarte CALL TO ORDER: Committee Chair Hougardy called the meeting to order at 5:OOp.m. I. PRESENTATIONS No Presentations. II. BUSINESS AGENDA Committee Chair Approval Minut by Fl. Rev iewed by KAM City of Tukwila Utilities Committee A. Solid Waste Utility Tax In response to the Utilities Committee's request, staff presented an information briefing to the Committee on revenue projections for a 4 6% and 8% utility tax on solid waste services. Staff provided a copy of a recent AWC survey that shows utility tax rates for over 140 Washington State cities including neighboring South King County cities. The Committee reviewed and discussed the utility tax options, potential revenues, and the rate impacts to customers. The discussion resulted in agreement from each Committee Member that this item needs to be presented to the full Council for discussion and information (no action). INFORMATION ONLY. SEND TO APRIL 27 COW FOR DISCUSSION. III. MISCELLANEOUS Meeting adjourned at 5:35 p.m. Next meeting: Tuesday, April 28, 2009 5:00 p.m. Conference Room No. 1.