HomeMy WebLinkAboutFS 2011-10-18 Item 2A.3 - Discussion - Non-Profit Businesses and Revenue Generating Regulatory License (RGRL)City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator
DATE: October 12, 2011
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 September 20, 2011 Finance and Safety Committee meeting, Staff presented the
revenue impacts if the City decided to remove the non profit exemption from businesses
with certain employee count thresholds. This item was discussed at the September 26,
2011 Committee of the Whole meeting and it was requested that further information and
analysis be brought back to the Committee for consideration on the following items:
Revenues collected from non profit organizations with more than 100 employees
Obtain substantiated data showing the impact of non profit organizations on City
services with more than 100 employees
Determine legal implications of removing the business license and Revenue
Generating Regulatory (RGRL) fee exemption on non profit organizations with
more than 100 employees
DISCUSSION
Revenue Collection
The City is currently receiving water, sewer and surface water fees, and utility taxes
from Group Health and Museum of Flight. Tukwila receives property taxes from Group
Health; however, Museum of Flight is exempt per King County. A small amount of sales
tax revenue is generated from a caf6 in Group Health and the gift shop and caf6 at the
Museum of Flight. Year -to -date sales tax revenue from these two establishments total
$34,000. Traffic impact fees are assessed with redevelopment and an increase in PM
peak hour traffic. This year, the City has collected $30,000 of traffic impact fees from
Group Health and $21,000 from Museum of Flight. Permitting fees received from these
organizations total $44,119 so far in 2011.
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INFORMATIONAL MEMO
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Impact on Citv services
Staff gathered information from other City departments to find substantiated data
showing increase use of City services by non profit organizations in Tukwila.
Discussion with Public Works, Police and Fire Staff indicate that public safety services
and roadways were accessed by non profit businesses, but there is insufficient data to
show extensive use for service calls and or traffic control counts.
Legal Implications
The City attorney has determined that there is not enough substantiated documentation
at this time to support lifting the exemption of non profits with more than 100 employees
from having to pay the business license and RGRL fee.
Staff will continue with additional research surrounding the non profit issue as directed
by the Committee.
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 Revenue Summary
WA2011 Info Memos- CoundI\NonProfitRGRL.doc
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Revenue from Non Profits
Property Tax
Group Health
Museum of Flight- Exempt
Citv Utilities (Water, Sewer. Surface Water)
Group Health
Museum of Flight
Utility Taxes
Telecommunication -Cell, pager, telephone
Puget Sound Energy /Electricity, Natural Gas
Comcast Cable TV
Seattle City Light
Solid Waste /Recycling Companies
Sales Tax
Group Health Cafe
Museum of Flight Cafe Gift Shop
Traffic Impact Fees
Group Health- Building Improvement
Museum of Flight -Space Shuttle Gallery
Permit Fees
Group Health
12400 East Marginal Way South
12401 East Marginal Way South
12501 East Marginal Way South
Museum of Flight
Total Revenue
2011 YTD 2010 2009
129,379 142,864 145,877
2011 YTD
2010
2009
19,740
14,765
18,786
79,977
88,647
89,457
2011 YTD
2010
2009
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
6%
2011 YTD
2010
2009
23,851
2,785
4,716
10,152
15,674
15,500
2011 YTD
2010
2009
30,000
21,000
2011 YTD
2010
2009
38,112 3,322 1,026
2,740 2,049 3,984
540 130
3,266 823 1,337
358,217 271,470 280,814
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