HomeMy WebLinkAboutCOW 2010-07-12 Item 4B - Budget - Public Meeting on Options for Decreasing Expenditures and Increasing RevenueCAS NUMBER: 10-080
Fund Source:
Comments:
EXPENDITURE REQUIRED
7/12/10
7/19/10 1
7/12/10
7/19/10
10 -080
COUNCIL AGENDA SYNOPSIS
Meeting Date Prepared by I Mg;"'r review (ounq. review
07/12/10 SH I �-�}U
07/19/10 1 SH
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1 ORIGINAL AGENDA DA I h. JULY 12, 2010
AGENDA ITEM TITLE Proposed Program Reductions and Revenue Increases Public Meeting
CATEGORY Discussion ['Motion Resolution Ordinance n Bad Award Public Hearing Other
Mtg Date 7/12/10 Mtg Date Mtg Date Mtg Date 7/19/10 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police Pik
SPONSOR'S The City Council has scheduled a Public Meeting to solicit citizen input on recommended
SUMMARY program reductions and revenue increases. Three draft revenue ordinances are provided
for consideration.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 06/28/2010
RECOMMENDATIONS:
SPONSOR /ADMIN. Mayor's Office: Forward revenue ordinances to July 19 regular meeting.
COMMIIThE N.A.
AMOUNT BUDGETED
ITEM No.
'-f g.
APPROPRIATION REQUIRED
ME
Informational Memorandum regarding Public Meeting dated 7/12/2010
Informational Memorandum regarding Revenue Enhancement Ords dated 7/7/2010
Revenue Enhancements spreadsheet
Ordinances RGRL, Utility Taxes and Business License Fee
CIP Attachment D, E F
1 3
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City of Tukwila
INFORMATIONAL MEMORANDUM
TO Mayor Haggerton
FROM: Steve Lancaster, City Administrator
DATE: July 12, 2010
SUBJECT: Public Meeting on Proposed Program and Service Reductions
and Proposed Revenue Increases
ISSUE
BACKGROUND
DISCUSSION
RECOMMENDATION
Jim Haggerton, Mayor
The City Council has considered various program and service reduction proposals and potential
revenue increases in recent months to address current and projected revenue shortfalls.
Council has scheduled a Public Meeting for July 12, 2010 to solicit public input on the proposed
service reductions and on proposed revenue increases.
In early 2010 the City Council reviewed the City's current and forecast financial situation and
determined that significant action is required in order to bring revenues and expenditures into
balance. A $9 million per year gap between anticipated revenues and forecast expenditures
was identified. In response to this situation, the City is pursuing a balanced strategy that
includes the following targets: reducing programs and services by $2.2 million per year;
reducing the total cost of compensating City employees by $3.4 million per year; and increasing
revenue by $3 4 million per year.
During the months of May and June 2010 staff has presented to the City Council proposed
service and program reductions that total approximately $2.3 million in annual expense savings
The attached table summarizes the service and program reductions currently under
consideration. These program changes would be implemented as part of the 2011 -2012
Biennial Budget; however, some of these cost savings may be partially implemented in 2010
In April of 2010, staff presented a series of revenue increase options for Council consideration.
Based upon Council discussion, staff has prepared ordinances that would create a Revenue
Generating Regulatory License fee, modify the current ordinance establishing a utility tax on
city -owned utilities, and modifying business license fees. Included with this agenda item is a
memorandum (dated July 7, 2010) and related materials regarding proposed these revenue
enhancement options.
Conduct a Public Meeting to obtain citizen input on proposed program reductions and revenue
increases Schedule the proposed revenue ordinances for consideration and possible adoption
at the July 19 regular meeting of the City Council.
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INFORMATIONAL MEMO
Page 2
ATTACHMENTS
1. Program or Service Reduction Proposals Summary
4 6 W \Steve\ BUDGET1 ProgServiceReductionsMemoJulyl2 .doc
PROGRAM OR SERVICE REDUCTION PROPOSALS
SUMMARY
PROGRAM 1 TARGET PROPOSAL 1 REDUCTION
May 10, 2010
Boards and $27,500 Reduce Arts Commission Budget $21,500
Commissions Reduce Equity and Diversity Commission Budget 3,100
Reduce Sister City Committee Budget 2,850
$27,450
City Council $5,000 Reduce "Other Services and Charges" and "Supplies" $5,000
Mayor's Office $125,000 Eliminate "Analyst" position $100,000
Modify method of contracting for legal services $50.000
$150,000
Community $300,000 Eliminate second electrical inspector position $94,500
Development Reduce level of graphics and mapping services 45,800
Dept. Cross -train Permit Technicians 46,500
Transition to lower -cost GIS 17,080
Fund existing staff through housing program revenue 80,000
Reduce capacity for unanticipated needs 16,120
$300,000
Municipal Court $6,000 Reduce Court, Probation and Parole expenditures $6,000
Human Services n/a Maintain current level of support for CSC $0
May 24, 2010
Information $112,500 Reduce Cell Phone expenses $10,000
Technology Dept. Miscellaneous budget reductions 14,500
Reduce MS Office licensing costs 27,000
Reduce PC specifications /extend rotation period 63.000
$114,500
Public Works $375,000 Eliminate Development Engineer position $101,050
Department Eliminate the CERTTraining Program 44,500
Reduce Street Maintenance level of service 71,500
Reduced service levels in Bridge and overlay programs 137,500
Eliminate Dump Pass and Neighborhood Clean -up 32.500
$387,050
Service ReductionsMatrix6142010.docx sji Page 1
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Parks and $448,000 Reduce Administrative capabilities $103,000
Recreation Dept. Eliminate Tukwila Days $25,000
Eliminate Employee Recognition Banquet 12,000
Reduce Programs for Seniors 102,000
Reduce Programs for Youth and Teens 51,000
Reduce General Recreation Programs 42,000
Reduce Services for Facility Rentals and Operations 11,000
Reduce Various Administrative Expenses 17,000
Transfer 0.5 FTE from Parks Maintenance to Golf 28,000
Reduce Overall Parks Maintenance services 77.000
$468, 000
Foster Golf $62,000 Reduce General Fund Subsidy $62,000
Course
June 14, 2010
Police $93,000 Eliminate the Crime Prevention Officer position $97,000
Department
Fire Department $204,000 Reduce Admin Support Tech position to time $21,300
Reduce Fire Prevention by one Captain position 104,447
Reduce minimum staffing to reduce overtime costs 100.000
$225,747
Service ReductionsMatrix6142010.docx sjl Page 2
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Shawn Hunstock, Finance Director
DATE: July 7, 2010
SUBJECT: Revenue Enhancement Ordinances
ISSUE
BACKGROUND
DISCUSSION
City of Tukwila
Jim Haggerton, Mayor
The City Council has considered various revenue enhancement options available to the
City to both address revenue shortfalls in certain areas and to fund needed
infrastructure maintenance and improvements. Ordinances adopting three revenue
enhancement options are presented for Council consideration and approval.
The City Council reviewed a number of revenue enhancement options in prior weeks at
several recent Committee of the Whole meetings. Administration is presenting
ordinances for the adoption of a revenue generating regulatory license (RGRL),
elimination of the sunset provision for a tax on City run utilities (water, sewer and
surface water), and an increase in the business license fees.
The revenue enhancement options presented will be utilized in conjunction with wage
and benefit concessions and program /service reductions, as part of a three pronged
approach to develop a combination of approximately $9 million annually in new revenue
and expenditure reductions.
Revenue Generating Regulatory License (RGRL)
A revenue generating regulatory license (RGRL) would allow for funding of essential
services required by businesses operating within Tukwila. These services include
provision of public safety (police and fire protection and response), maintenance of
infrastructure critical to the operation of businesses within the City, and other City
services used by employees and patrons of businesses such as recreation facilities,
trails and recreation programs.
Revenue collected through an RGRL would be used to offset the burden businesses
and their patrons place on City services. Based on the size, use and occupancy of
typical structures, the cost of police and fire response is typically higher per call for
businesses than for residential properties. Also, with a population of just over 18,000
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INFORMATIONAL MEMO
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and an estimated average daytime population of over 100,000, businesses and the
patrons of those businesses place a significant demand on infrastructure above and
beyond that required to serve a City of just over 18,000 residents. The RGRL will be
used to offset that burden to the City in funding the services required by businesses.
The RGRL ordinance includes a regulatory fee of $55 per full -time equivalent employee
for businesses operating within the City. The most recent survey completed by the
Association of Washington Cities indicates eleven cities charge a similar fee per
employee, per hour or per full -time equivalent employee. Neighboring jurisdictions with
a similar fee include Renton, Redmond and Kirkland. The City of Renton assesses $55
per full -time equivalent employee and Renton dedicates a minimum of 80% of the
revenue collected to transportation improvements. The City of Redmond assesses a fee
of $90 per full -time equivalent employee with $55 of the fee dedicated to transportation
improvements. The City of Kirkland has a base business license fee of $100 per
business plus a RGRL of $100 per full -time equivalent employee. Kirkland has no
specific dedication of RGRL money, but does use "a portion" of the revenue to fund
economic development programs. This amount varies but is typically Tess than half of
the RGRL collected annually.
Utility Tax Change
The City Council passed Resolution No. 2258 on October 19, 2009 adopting a utility tax
on City operated water, sewer and surface water utilities. The Ordinance provided for a
rate of 15% of gross revenue from the utility funds until April 30, 2010, then 10%
effective May 1, 2010 through December 31, 2012.
Changes to the existing utility tax on City operated utilities is another area the City
Council has considered for addressing significant revenue declines in other types of
revenue. Continuing the existing 10% rate beyond 2012 would generate approximately
$1.3 million in revenue annually. Every 1.0% increase (or extension) of the utility tax
generates approximately $130,000 of additional tax each year at the current revenue
levels for all three utility funds.
The ordinance accompanying this Information Memorandum assumes an extension of
the sunset provision from December 31, 2012 to December 31, 2015. Council could
consider extending the sunset even further, or removing it altogether.
Business License Change
The City Council has previously considered various forms of changes to the existing
business license fee structure. The direction Council gave to administration is included
in the accompanying ordinance. Below is a table summarizing the changes:
Existing New of
Full -time Equivalent Employees Fee Fee Businesses
Home occupation $50 $50 7.10%
0 to 10 $100 $100 67.50%
11 to 20 $100 $150 10.86%
5 0 W InfoMemoslinfoMemo_ RevenueEnhancementOrdinances07122010 .doc
INFORMATIONAL MEMO
Page 3
21 to 50 $150 $300 9.17%
51 to 100 $200 $400 2.77%
101 $300 $600 2.60%
The above changes are estimated to result in an additional $79,000 of revenue for the
general fund each year. As illustrated in the table above, between home occupations
and businesses with 0 to 10 employees, approximately 74.6% of businesses would not
pay a higher business license fee according to the attached ordinance. Only those
businesses with 11 or more employees would pay a higher fee.
RECOMMENDATION
The Council is being asked to approve the ordinances 1) adopting a revenue generating
regulatory license, 2) extending the sunset provision on a utility tax for City operated
utilities, and 3) increasing business license fees.
This item is scheduled to be discussed at the July 12, 2010 Committee of the Whole
meeting, and the July 19, 2010 Regular meeting.
ATTACHMENTS
Ordinances RGRL, Utility Tax and Business License Fees
Revenue Enhancements spreadsheet
Proposed Utility Rate Increase spreadsheet
CIP Attachment D Water Enterprise Fund (includes projected rate increases)
CIP Attachment E Sewer Enterprise Fund (includes projected rate increases)
CIP Attachment F Surface Water Enterprise Fund (includes projected rate increases)
W InfoMemoslInfoMemo_ RevenueEnhancementOrdinances07122010 .doc
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DRAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE C11 'Y OF TUKWILA,
WASHINGTON, ESTABLISHING NEW REGULATIONS REGARDING
REVENUE GENERATING REGULATORY LICENSES TO BE CODIFIED
AT TUKWILA MUNICIPAL CODE CHAPTER 5.62, "REVENUE
GENERATING REGULATORY LICENSES PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EPPECTIVE DATE.
WHEREAS, the City Council recognizes the City of Tukwila is in need of additional
revenue sources in order to address a dramatic decline in recent sales tax collections,
and
WHEREAS, the City Council and Mayor are in the process of implementing
permanent reductions to the General Fund operating budget; and
WHEREAS, such expenditure reductions are not sufficient to fully account for the
recent decline in revenue, the City Council has determined it is in the best interest of
Tukwila citizens and businesses to provide long -term financial stability, rather than
continuing to use one -time cost savings measures, to address unplanned economic
challenges the City might be faced with in the future;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Regulations Established. Tukwila Municipal Code Chapter 5 62,
"Revenue Generating Regulatory Licenses," is hereby established to read as follows:
CHAPTER 5.62
REVENUE GENERATING REGULATORY LICENSES
Sections:
5.62.010 Regulatory Licenses
5.62.020 Revenue Generating Regulatory License Fee (RGRL)
5 62.030 Determination of number of employees for RGRL
5.62.040 Exemptions
5.62.050 Penalties
5.62.010 Regulatory licenses.
A business that holds a current valid City of Tukwila regulatory license under
another chapter of this code must also file the general business license application form,
pay the general business license fee and pay the revenue generating regulatory license
fee (RGRL) pursuant to this chapter The fee levied in this chapter shall be additional to
any license fee or tax imposed or levied under the law or any other ordinance of the
City except as expressly provided herein.
5.62.020 Revenue generating regulatory license fee (RGRL).
A. General. In addition to the business license fee, the highest applicable RGRL in
this section shall be paid for the annual license issued under this chapter
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1. A business with less than $12,000.00 of average annual gross receipts shall
be exempt from any RGRL.
2. For the purposes of this section and in determining the applicable RGRL,
the term "employee" means and includes each of the following persons who are not
required by the City to have his /her /its own separate City of Tukwila business license:
a. Any person who is on the business's payroll, and includes all full -time,
part -time, and temporary employees or workers, and
b Self- employed persons, sole proprietors, owners, officers, managers,
and partners; and
c. Any other person who performs work, services or labor at the
business, including an independent contractor who is not required to have a separate
City of Tukwila business license.
3 An entity that is entirely exempt from paying the business license fee shall
be exempt from any RGRL.
4. An entity with some activities or functions that are exempt from the
business license fee and some that are not exempt shall pay an RGRL based on the
number of its employees that are involved in the functions or activities that are not
exempt.
B Amount of RGRL.
1 Revenue Generating Regulatory License (RGRL) Fee Method. Except as
otherwise provided by this chapter, every person engaging in business within the City
shall pay an RGRL based upon the number of employee hours worked in Tukwila
during the previous year Annual employee hours are calculated based on the sum of
the 4 quarterly reports submitted to the Washington State Department of Labor and
Industries (L &I) for the previous year. It will be the responsibility of the employer to
determine the number of hours worked within the City from these reports. Businesses
that did not file quarterly reports with the Washington State Department of Labor and
Industries shall determine the number of hours worked within the City and
demonstrate, if required, to the satisfaction of the Finance Director or his /her designee,
that the number of employee hours worked is correct.
2. The annual RGRL fee shall be calculated by multiplying the minimum fee,
as defined in subsection (F) of this section, by the number of full- time equivalent
employees that worked in Tukwila. The approved tax rate per full -time employee is
$0.028646 (which represents a RGRL multiplier of $0.028646 per employee hour
worked), as may be adjusted herein. Employers without a full year history would need
to estimate the number of employee hours that will be worked in the current calendar
year
3 If a business has more than one location in Tukwila, the annual business
license fee calculation must include a minimum fee for each location and the RGRL for
annual employee hours at all locations.
C. Alternative FTE Method. A business may choose to calculate its annual RGRL
fee by multiplying the minimum fee by the number of its employees. The number of
employees shall be based on the sum of the employees in the 4 quarterly reports
submitted to the Washington State Department of Labor and Industries (L &I) for the
previous year divided by four. It will be the responsibility of the employer to
determine the number of employees working within the City from these reports.
Businesses that did not file quarterly reports with the Washington State Department of
Labor and Industries shall determine the number of employees working in the City and
demonstrate, if required, to the satisfaction of the Finance Director or his /her designee,
that the number of employees is correct. Employers without a full year history would
need to estimate the number of employees that will work in the City for the current
calendar year
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D Once the FTE methodology has been selected, it must be used for future
renewals.
1 Businesses with more than one location in the City of Tukwila must use the
same method of calculation for all locations.
E. For businesses with employees who work less than 1,920 hours per year (the
work hour figure used by the Washington Department of Labor and Industries) the
total number of hours worked by all such employees during the 4 quarters of the
previous year shall be added together and divided by 1,920 to determine the FTE
equivalency.
F It will be the responsibility of the business to determine the total number of
FTEs (or equivalency) and demonstrate, if required, to the satisfaction of the Finance
Director or his /her designee that the calculation is accurate.
G. The RGRL fee for a business required to be licensed under this chapter and not
located within the City's corporate limits shall be calculated by multiplying the
minimum fee by the number of employee hours worked within the City, but in no event
shall the license fee be less than the minimum fee set forth in this chapter If the
number of employee hours worked is not known at the time of renewal, the business
shall estimate the maximum number of employee hours they anticipate using in
Tukwila during the year.
H. Businesses doing business in the City that have no employees physically
working within the City shall pay the minimum fee required under this chapter
I. The minimum fee under this chapter shall be $55 00, and may be amended
from time to time.
J Payment made by draft or check shall not be deemed a payment of the RGRL
fee unless and until the same has been honored in the usual course of business, nor shall
acceptance of any such check or draft operate as a quittance or discharge of the fee
unless and until the check or draft is honored. Any person who submits a RGRL fee
payment by check to the City pursuant to the provisions of this chapter shall be
assessed an NSF fee set by the Finance Director if the check is returned unpaid by a
bank or other financial institution for insufficient funds in the account or for any other
reason.
5.62.030 Determination of number of employees for RGRL.
For the purposes of this section, "employee" shall be defined as in Section 5.62.020
A. Standard Rule. In determining the amount of RGRL fee to be paid for the
upcoming license year, the number of employees shall be the current number of
employees or the number of employees on the last regular working day of each of the
last twelve months divided by twelve, whichever is higher. Each person who comes
under the definition of "employee" shall be counted as one employee, even if the
person works part -time.
B Alternative Method "FTE A business may choose to calculate the number
of employees for the purpose of the RGRL fee according to the following alternative
method based on the number of employee hours worked for the business during the
previous year
1. The business must notify the City of its choice to use the FTE method. It
will be the responsibility of the business to determine the number of hours worked for
the business, taking into account the information submitted to L &I in the last 4
quarterly reports. The business must demonstrate, to the satisfaction of the Finance
Director, that the alternative calculation is accurate. The director may require the
business to submit copies of its L &I reports.
2. Each employee who worked more than 1,920 hours during the previous
year (including paid time off) shall be counted as one employee. If a person such as an
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owner or partner devotes more than 1,920 hours per year to the business, that person
must be counted as one employee for RGRL purposes.
3. Where there are employees who work less than 1,920 hours per year, the
total number of hours worked by all such employees during the previous year shall be
added together and divided by 1,920. A fraction of one -half or over shall be rounded
up Hours worked by persons who are defined as employees for RGRL purposes must
be included in the calculation even if the business is not required to report to L &I
concerning such persons.
4. The results from subsection B.2 of this section plus subsection B.3 of this
section shall be the total number of employees used to determine the amount of the
RGRL.
C. New Businesses. The RGRL fee for a business that did not submit reports for
each of the last 4 quarters to L &I shall be based on the estimated number of employees
of that business. The business shall provide its estimate of the average number of
employees for the upcoming year The City will determine the number of employees
that will be used in calculating the amount of the RGRL. If, during the license year, the
City determines the actual number of employees is significantly different than
estimated, the amount of the RGRL fee will be recalculated for the new business. If the
revised RGRL fee is higher, the business must pay the difference within thirty days after
notification.
D. Over Reporting Number of Employees. A business may request that the City
refund RGRL overpaid on the basis that the business miscounted the number of
employees by an error factor of more than 15% The request must be in writing and the
City must receive the request and all supporting documentation no later than 60 days
after the end of the licensee's fiscal year in which the error was made. If the City is
satisfied the licensee paid an excess RGRL, the City will refund the excess RGRL paid
by the licensee.
E. Under Reporting of Employees. If the City determines the number of
employees was under reported at the time of application or renewal by an error factor
of more than 15 the business shall pay the balance of the applicable RGRL fee
together with a penalty of 20% of such balance due. The business shall also reimburse
the City for any accounting, legal, or administrative expenses incurred by the City in
determining the under- reporting or in collecting the additional amounts. The Finance
Director shall mail written notice of the amount to be paid and the business shall pay
said amount to the City within 30 days. If the City does not receive timely payment, an
additional penalty shall be added, applying the schedule for late payments in this
chapter.
5.62.040 Exemptions.
A. Exemptions. The following entities may claim an exemption from the license
fee, but if exempt under this subsection such entities shall still register under this
chapter:
1. Certain Organizations Exempt from Federal Income Tax. An organization
that files with the city a copy of its current IRS 501(c)(3) exemption certificate issued by
the Internal Revenue Service.
2. A governmental entity that engages solely in the exercise of governmental
functions. Activities which are not exclusively governmental such as some of the
activities of a hospital or medical clinic, are not exempt under this chapter
3 A nonprofit business operated exclusively for a religious purpose, upon
furnishing proof to the finance director of its nonprofit status. For the purposes of this
chapter, the activities that are not part of the core religious functions are not exempt.
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4. Civic groups, service clubs, and social organizations that are not engaged in
any profession, trade, or occupation, but are organized to provide civic, service, or
social activities in the City
a. Examples of such organizations include but are not limited to:
Soroptomists; Kiwanis; Lions' Rotary; American Legion, children's and adults athletic
leagues and similar types of groups, clubs or organizations.
5.62.050 Penalties
A. Monetary Penalty. Failure to pay the RGRL fee within 20 days after the day on
which it is due and payable pursuant to TMC Section 5.62.020 shall render the business
subject to a penalty of 5% of the amount of RGRL fee for the first month of the
delinquency and an additional penalty of 5% for each succeeding month of
delinquency, but not exceeding a total penalty of 25% of the amount of such RGRL fee,
plus any accounting, legal or administrative expenses incurred by the City No
business license for the current period shall be granted until the delinquent fees,
together with penalties, have been paid in full. The Finance Director or his /her
designee is authorized, but not obligated, to waive all or any portion of the penalties
and interest provided herein in the event the Director or his /her designee determines
that the late payment was the result of excusable neglect or extreme hardship
B Collection. Any RGRL fee due and unpaid under this chapter, and all
penalties thereon, shall constitute a debt to the City and may be collected in court
proceedings in the same manner as any other debt in like amount, which remedy shall
be in addition to any and all other existing remedies.
C. Revocation of License. The Finance Director may revoke any business license
issued pursuant to this chapter to any business or other person who is in default in any
payment of any RGRL fee hereunder, or who shall fail to comply with any of the
provisions of this chapter Notice of such revocation shall be mailed to the license
holder by the Finance Director, and on and after the date thereof any such business who
continues to engage in business shall be deemed to be operating without a license and
shall be subject to any and all penalties herein provided.
D. There shall be a penalty of not less than $50.00 to reinstate any business license
revoked through nonpayment of the RGRL fee.
Section 2. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 3. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force and effect
five days after passage and publication as provided by law
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 2010.
ATTEST/ AUTHENTICATED.
Christy O'Flaherty, CMC
APPROVED AS TO FORM BY
Office of the City Attorney
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Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council.
Published.
Effective Date:
Ordinance Number
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AMENDING ORDINANCE NO. 2258 §1. (PART), AS CODIFIED
AT TUKWILA MUNICIPAL CODE CHAPTER 3.54, EXTENDING THE CITY
UTILITY TAX SUNSET PROVISION; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, at the time Ordinance No. 2258 was passed, the City Council wished to
provide a sunset provision for the collection of City utility taxes; and
WHEREAS, the City Council and Mayor have reviewed the current General Fund status
and operating budget and determined that it is in the best interest of the citizens of Tukwila to
extend the current sunset provision to 2015;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC 3.54.030 Amended. Ordinance No 2258 §1 (part), as codified at TMC
Section 3.54.030, is hereby amended as follows:
A. There is levied upon water, sewer and surface water utilities, taxes in the amount
to be determined by the application of rates given against gross earnings as follows:
1. Upon the City water, sewer and surface water funds, a tax equal to 15% of the
total gross revenue from such business from all customers in the City during the period for
which the tax is due. Such tax shall be effective from December 31, 2008 through April 30,
2010.
2. Upon the City water, sewer and surface water funds, a tax equal to 10% of the
total gross revenue from such business from all customers in the City during the period for
which the tax is due. Such tax shall be effective from May 1, 2010 through December 31,
2014 2015.
Section 2. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 3. Effective Date. This ordinance or a summary thereof shall be published in
the official newspaper of the City, and shall take effect and be in full force and effect five
days after passage and publication as provided by law
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 2010
ATTEST/ AUTHENTICATED
Christy O'Flaherty, CMC
APPROVED AS TO FORM BY
Office of the City Attorney
DRAFT
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Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council.
Published.
Effective Date:
Ordinance Number
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DRAFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AMENDING ORDINANCE NO. 2179 §2 (PART), AS
CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 5.04, REVISING
THE CITY'S BUSINESS LICENSE FEE SCHEDULE; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council recognizes the City of Tukwila is in need of additional
revenue sources in order to address a dramatic decline in recent sales tax collections;
and
WHEREAS, the City of Tukwila's business license regulations have been
established to ensure the legal conduct of businesses; to assist in the effective
administration of health, fire, building, zoning and other codes of the City; and to
provide a means for obtaining public information and compiling statistical information
on existing and new businesses within the corporate limits of the City of Tukwila, and
WHEREAS, the City Council and Mayor are in the process of implementing
permanent reductions to the General Fund operating budget; and
WHEREAS, such expenditure reductions are not sufficient to fully account for the
recent decline in revenue, the City Council has determined it is in the best interest of
Tukwila citizens and businesses to provide long -term financial stability, rather than
continuing to use one -time cost savings measures, to address unplanned economic
challenges the City might be faced with in the future,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC 5.04.020 Amended. Ordinance No. 2179 §2 (part), as codified at
TMC Section 5 04.020, "Application and fees required" is hereby amended as follows:
A. Any person desiring to establish or conduct any business enterprise or
undertaking within the corporate limits of the City shall first apply to the City Clerk for
a license to conduct such business. The application shall be upon a form furnished by
the Clerk on which the applicant shall state the company name and address; the nature
of the business activity or activities in which he desires to engage; the place where the
business will be conducted; the number of employees, whether full or part -time, on the
payroll as of January 1, or, if a new business, the number to be employed on the
opening date; and other information pertaining to the business as required by the City
B The application must be accompanied by a check, cash or money order for the
amount of the license fee. All fees will be based on the number of employees, whether
full or part -time, as follows:
0 to 2010 $100.00
2111 to 50 20 $150.00
5121 to 108 50 S200.00 $300.00
51 to 100 $400.00 (NEW)
101 and up $380.D0 $600.00
Home Occupation
(pursuant to TMC 5 04.010) $50.00
W Word Processing Busyness License Fee Increase
SH:rnh 07/07/2010
Page 1 of 2
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Section 2. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 3. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force
January 1, 2011.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 2010.
ATTEST/ AUTHENTICATED
Christy O'Flaherty, CMC
APPROVED AS TO FORM BY:
Office of the City Attorney
W Word Processing Business License Fee Increase
SHanh 06/28/2010
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council.
Published:
Effective Date:
Ordinance Number
Page 2 of 2
REVENUE ENHANCEMENTS
BUDGET TARGET $9M IN NEW REVENUE / EXPENDITURE REDUCTIONS
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PROPOSED UTILITY RATE INCREASES
MONTHLY FEES FOR RESIDENTIAL CUSTOMERS
PROPOSED WITH 10% UTILITY TAX
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REVENUES
Monthly Water Charges (1)
Cascade Water Alliance (CWA)
Regular City Water
Other Miscellaneous Revenue (2)
Regional Grant
Water Connection Fees (3)
Total Revenues
ATTACHMENT D
City of Tukwila
WATER ENTERPRISE FUND
2011 2016 Analysis in 000's
2011 2012 2013 2014 2015 2016 Totals
10 +10% +10% +10% +10%
1,980 2,039 2,100 2,163 2,228 2,300 12,810
2,756 2,893 3,038 3,190 3,350 3,517 18,744
215 235 250 255 260 275 1,490
0 0 0 0 0 0 0
25 25 50 75 75 80 330
4,976 5,192 5,438 5,683 5,913 6,172 33,374
EXPENDITURES
CWA Purchased Water (4) 1,980 2,039 2,100 2,163 2,228 2,300 12,810
Water Operations Maintenance 1,397 1,442 1,488 1,547 1,609 1,658 9,141
Debt Service (6) 554 555 553 555 550 162 2,929
Interfund Utility Tax (7) 10% 495 517 539 561 584 609 3,304
Working Capital Reserve Fund 292 292 292 292 25 25 1,218
Engineering Labor (8) 75 77 79 82 84 87 484
Subtotal 4,793 4,922 5,051 5,200 5,080 4,841 29,886
Water Capital CIP Program (9) 1,670 1,050 691 1,174 1,180 1,295 7,060
Total Expenditures 6,463 5,972 5,742 6,374 6,260 6,136 36,946
Cash Flow Year by Year (1,487) (780) (304) (691) (347) 36 (3,572)
Carryover from 2010 6,276 0 0 0 0 0 6,276
Accumulated Totals 4,789 4,009 3,705 3,015 2,668 2,704
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ATTACHMENT E
City of Tukwila
SEWER ENTERPRISE FUND
2011 2016 Analysis in 000's
REVENUES 2011 2012 2013 2014 2015 2016 Totals i
Monthly Sewer Charges 20% 20% 20% 20% 15% 15%
King County Metro Sewer (1) 3,572 3,580 3,915 4,032 4,233 4,317 23,649
Regular City Sewer (2) 1,488 1,741 2,037 2,384 2,693 3,044 13,387
Other Misc. Revenue (3) 102 107 150 175 200 200 934
Sewer Connection Fees (4) 120 120 150 150 200 200 940
Total Revenues 5,282 5,548 6,252 6,741 7,326 7,761 38,910
EXPENDITURES I
Sewer Operations Maintenance
King County Metro Sewer (5) 3,572 3,580 3,915 4,032 4,233 4,317 23,649
Regular City Sewer (6) 643 662 681 709 730 759 4,184
Debt Service (7) 357 356 355 354 352 351 2,125
Interfund Utility Tax (8) 10 516 543 610 659 713 756 3,797
Working Capital Reserve Fun 380 380 380 380 25 29 1,574
Engineering Labor (9) 75 77 79 82 84 87 484
Subtotal 5,543 5,598 6,020 6,216 6,137 6,299 35,813
Sewer Capital CIP Program 523 725 625 800 700 1,030 4,403
Total Expenditures 6,066 6,323 6,645 7,016 6,837 7,329 40,216
Cash Flow Year by Year (784) (775) (393) (275) 490 432 (1,306)
Carryover from 2010 1,385 0 0 0 0 0 1,385
Accumulated Totals 601 (174) (567) (842) (352) 79 I
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ATTACHMENT F
City of Tukwila
SURFACE WATER ENTERPRISE FUND
2011 2016 Analysis in 000's
REVENUES 2011 2012 2013 2014 2015 2016 Total 1
+10% +5% +10% +5% +10% +5%
Annual Billings (Current) (1) 3,346 3,513 3,864 4,058 4,463 4,687 23,931
Other Revenues (2) 75 75 100 110 115 120 595
Grants /Bond Proceeds (3) 94 44 44 44 44 44 314
Total Revenues 3,515 3,632 4,008 4,212 4,622 4,851 24,840
EXPENDITURES
Operations Maintenance (4) 1,205 1,283 1,334 1,401 1,471 1,544 8,238
Debt Service (5) 370 318 316 315 313 312 1,944
Interfund Utility Tax (6) 10% 342 359 396 417 458 481 2,453
Working Capital Reserve Fund 228 228 228 228 25 25 962
Engineering Labor (7 325 335 345 356 366 377 2,104
Subtotal 2,470 2,523 2,619 2,717 2,633 2,739 15,701
SSWM Capital CIP Program (8) 1,668 1,085 849 1,300 1,384 1,123 7,409
Total Expenditures 4,138 3,608 3,468 4,017 4,017 3,862 23,110
Cash Flow Year by Year (623) 24 540 195 605 989 1,730
Carryover from 2010 1,176 0 0 0 0 0 1,176
Accumulated Totals 553 577 1,117 1,312 1,917 2,906
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