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HomeMy WebLinkAboutCOW 2004-03-22 item 4I - Resolution - Utility Taxes and Surcharge Rebates (Utility Tax Relief Program)CAS Number: 04-044 Agenda Item Title: Original Sponsor: Timeline: Sponsor's Summary: Recommendations: Sponsor: Committee: Administration: Cost Impact (if known): Fund Source (if known): Meeting Date 1 3/22/04 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by 1 Mayor's review 1 Council review 1 3/22/04 ARD I )...&t I al /%K H 1 I I I %%XV f: 7J 4:i G%,B': Original Agenda Date: 3/22/04 Utility Taxes and Surcharge Rebates Council Admin. X Approve at April 5, 2004 Regular Meeting As required by Ordinance No. 1998 a Utility Tax Rebate process must be approved by City Council Approve as submitted Reviewed by Finance Safety on March 15, 2004. Approve as submitted Estimated $2,000 General Fund Revenue Reduction i. °e I'*' -fl *,r Or 44',V% >.Ili Action Meeting Date 3/22/04 Staff Report dated March 18, 2004 Proposed Resolution and Attachments Finance Safety Committee minutes from March 15, 2004 meeting. ITEMNO. '4 A. IIiAo Attachments To: Tukwila City Council From: Man R. Doerschel Q Date: March 18, 2004 Subject: Utility Tax and City Light Surcharge Rebate Ordinance No. 1998 adopted on November 18, 2002 provided for collecting a Utility Tax on electric and other utilities and Ordinance No. 2012 adopted January 21, 2003 added a surcharge to Seattle City Light bills as a franchise fee paid to City of Tukwila. They are both effective in 2003. Section 15 of Ordinance No. 1998 requires the Finance Director to develop a Utility Tax Relief Program for the City's senior and disabled low- income residents. Attached for your review is a proposed resolution. The Finance Safety Committee was briefed at their March 15 meeting. It is the intention to use the April addition of the Hazelnut to make the citizens aware of the rebate opportunity as well as the process for eligibility. CITY OF TUKWILA, WASHINGTON RESOLUTION NO. A RESOLUTION OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING A UTILITY TAX RELIEF PROGRAM FOR SENIOR AND DISABLED LOW INCOME RESIDENTS. WHEREAS, the Tukwila City Council adopted Ordinance No. 1998, establishing a utility tax to provide revenue for city services and capital requirements. WHEREAS, section 15 of such utility tax ordinance provides that a utility tax relief program will be developed for the City's senior and disabled low- income residents. WHEREAS, Puget Sound Energy has agreed to help implement the utility tax relief program for senior and disabled low- income Tukwila residents that are Puget Sound Energy electric and gas customers. WHEREAS, Seattle City Light has agreed to assist with providing similar relief from utility franchise increases implemented per Ordinance No. 2012. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Utility Tax Relief Prooram Established. A utility tax relief program is established for senior and disabled low- income Tukwila residents in accordance with the eligibility criteria and guidelines described in the following sections of this resolution. Section 2. Utility Tax Relief for Electricity and Gas Services. For electricity and gas services provided by Puget Sound Energy, eligible senior and /or disabled low- income Tukwila residents may apply annually before June 30 of the current year for the following year utility tax relief. Section 3. Seattle City Light Enerov Franchise Relief. For the residential electrical energy surcharge imposed by the franchise agreement, eligible senior and /or disabled low- income City of Tukwila residents may apply before June 30 of the current year for the previous year utility tax relief. Section 4. Criteria for Elioibilitv /Qualification. To qualify for utility tax relief from electric and gas services provided by Puget Sound Energy or Seattle City Light, an individual must: A. Be a senior (age 62) and /or disabled low- income resident residing within the City of Tukwila at all times during any period for which a reimbursement is requested, and have paid the City electric and /or natural gas utility tax charges from the income or resources of the household. B. Have a current residential account with Puget Sound Energy or Seattle City Light for electric and /or natural gas services. C. The income criteria for each year will be determined annually by the Finance Director and Will be based on one of the standard methodologies available. D. Each request for relief must be accompanied by a copy of the applicant's prior year tax return and the appropriate utility customer account number including customer name and service address. Also, completion of a signed application form as approved by the City requesting utility tax relief for senior and /or disabled low- income Tukwila residents is required. Section 5. Reimbursements. A. Reimbursements will be processed by the City to the eligible senior and /or disabled low Income Tukwila resident(s) as soon as practical subsequent to the City's application process and to customer account verification of utility taxes paid from Puget Sound Energy and /or Seattle City Light for the rebate year. B. The City's Finance Director shall adopt rules and procedures for the administration of the utility tax relief program within the general guidelines. Section 6. Severabilitv. Should any section, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be pre empted by state or federal law or regulation, such decision or pre emption shall not affect the validity of the remaining portions of this ordinance or its application to other residents or circumstances. Section 7. Effective Date. This ordinance shall be published in the official newspaper of the City, and shall take effect and be in full force five (5) days after the date of publication. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2004. ATTEST /AUTHENTICATED: Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney i 1 r', 1 (i ti p ilk L" Lr i, Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Utility Tax Relief Program Page 2 Resolution No. Jim Haggerton, Council President Customer Name: Address: City /State: Telephone Number: Date Application Received: City Residence Verified: Low Income Level Verified: Verified By: City of Tukwila, Washington 2003 Utility Relief Program Application For Senior (at least 62 years) and Disabled Low Income Residents (Application is due before June 30th) Have you ever applied for the City of Tukwila Tax Relief program before? Yes No Have you lived in the City of Tukwila since January of this year? Yes No If no, how many months have you lived in Tukwila? Verification of Income Level Income may be verified as according to the following methods: A. Federal Tax Return (a copy afyour most recent return must be attached to this application as proof for verification) Please indicate your total annual household income: B. If you do not prepare a federal tax return, complete the following and attach copies of statements as proof for verification 0 1100% Social Security which includes Part B Medicare is lPensions, Annuities, Railroad Retirement, State/Federal Civil Svc 1$ Interest Dividends Is Wages 1$ 1Business/Rental Income Before Depreciation 1$ All Other Income (including capital gains) 1$ Total Combined Incomel$ Utility Relief Requested For —i Electricity: Is your electricity provided by Seattle City Light? Year Electricity: Is your electricity provided by Puget Sound Energy (PSE)? 2003 Gas: Is your gas provided by Puget Sound Energy (PSE)? Relief Please list your customer Account Number: Tukwila Senior and/or Disabled Low Income Resident Certification 1, the undersigned, do hereby certify under penalty of perjury, that I have read and understood all of the program guidelines provided on this application, and that all of the information provided by me on this application is true to the best of my knowledge. I understand that any attempt to falsify my information will result in my disqualification from the program for this year. I further certify that my income status remains the same as presented on my documentation. Applicant Signature Date Yes No Yes No For Department Use Only Application Approved: Yes No Please mail this application to: Tukwila City Hall Dept. of Finance, Attn: Lily Jue 6200 Southcenter Blvd. Tukwila, WA 98188 206 433 -7190 Apt. No.: Zip Code: City Verification Yes Yes Yes No No No Iej 3/18/04 Committee Chair approval Finance and Safety Committee March 15, 2004 Present: Dave Fenton, Chair; Joan Hernandez, Dennis Robertson Alan Doerschel, Lucy Lauterbach 1. Council Travel Policy A new draft travel policy was in the packet, and the Committee members suggested several changes to improve it. The policy still sets up a system of allocating each Council member some portion of the travel budget, and it will be up to each member to allocate their money to specific trips. Joan asked about trips that come up after the first of the year after everyone has planned trips already. The policy says in that case the whole Council has to decide if the trip is important enough to increase the travel budget. Sister City travel is another issue that will need to be accounted for in budgeting. The policy now says it must come out of each member's share, but that could mean no one goes if they all have planned for other national travel that year. The three members all supported the new draft with its improved language. The 2003 travel budget will be close to being over spent this year. Reschedule. 2. Rainy Dav and Contingency Funds The City has "contingency" funds in two places in the budget. One is on Page 134 of the budget in the General Fund, and is named the Rainy Day fund. That amount is currently $1,100,000. On page 143 of the budget is a 105 Fund Contingency budget Neither of the two budgets is counted in the 6 year Financial Plan. The Contingency Fund grows very slowly, with its interest added to it each year. The rainy day fund is contained in the larger ending fund balance. Alan said Rainy D'ay had been established ten years ago, and its name is not very accurate. Because it is in the General Fund, it is much easier to get at than the Contingency Fund, which has some restrictions on its spending. Alan said the ending fund balance used to be much larger, but now we are using it to pay for the city's spending each year, and it is decreasing at such a rate as to be at zero by 2007. The City's ending fund balance now is getting low enough that we use more than half of it each year to fund the first few months of the year before any new revenues come in. Alan needs $4 -5 million each year for paying the first bills of the new year. When cities don't have enough funds to cover those expenses they do tax increment financing to tide them over. Some smaller cities like Normandy Park already have to do this; we'll need to do it in two or three years. Alan said increasing the Rainy Day fund by paying it interest each year would take money from the ending fund balance so the 6 year Financial Plan could run out of money earlier than 2007. The Committee was concemed about these figures. They agreed to study Attachment A of the 6 year Financial Plan at their next meeting. Reschedule. 3. Proiect Prioritization Dennis had talked to Terry Moore who has led groups through processes such as the Council will go through in prioritizing large projects for the next few years. Alan said it will be hard to get numbers for projects like the TVS, and the Committee knew some projects would have hard numbers and others very soft estimates. Still, they are looking fora rough guide that will enable them to judge all the projects together. Dennis was convinced spending some money to hire Terry Moors would benefit the Council and be money well spent in the long term. Schedule Moore at Committee. 4. Utility Tax Rebates Alan reported he will be drafting an ordinance to give low income people and seniors a rebate on their utility taxes. He will advertise it in the next Hazelnut, and figure out how much everyone as paid who needs a rebate. Information.