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Home My WebLink AboutOrd 2609 - 2019-2020 Solid Waste Utility Tax (Commercial Only)City of Tukwila Washington Ordinance No. G 0 `� AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2250 §1 (PART), TO INCREASE THE SOLID WASTE UTILITY TAX; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council shall periodically reconsider the need for a Solid Waste Utility Tax given current economic conditions; and WHEREAS, the heavy vehicles used for solid waste collection impact City streets with significant wear and tear, thereby shortening the life span of roads and accelerating the need for costly maintenance and repair; and WHEREAS, the City has availed itself of all appropriate revenue sources currently authorized; and WHEREAS, the City's basic road maintenance service levels may suffer a reduction without a new source of revenue; and WHEREAS, an increase in the solid waste utility tax measured by gross income from non-residential customers is expected to generate additional revenue to help offset the on- going impact of heavy vehicle operations and maintain current road condition levels; and WHEREAS, the City Council has determined the public interest is best served by an increase to the existing 6% solid waste utility tax, with the increased percentage amount to be designated for road maintenance and road related projects; and WHEREAS, incrementally increasing the solid waste utility tax to 11 % on November 1, 2019, and then to 16% on July 1, 2020, will allow customers time to adjust to the increases; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: W: Legislative Development\Solid Waste Utility Tax increase 7-9-19 CK:bjs Review and analysis by Barbara Saxton Page 1 of 3 Section 1. TMC Section 3.51.020 Amended. Ordinance No. 2250 §1 (part), as codified at Tukwila Municipal Code (TMC) Chapter 3.51.020, "Use and Accountability of Tax Proceeds," is hereby amended to read as follows: 3.51.020 Use and Accountability of Tax Proceeds 1. All revenues collected pursuant to this chapter shall be deposited into the General Fund, and shall be used for the funding of City services or capital requirements as the City Council shall direct through its biennial budget process. a. The revenues shall be used as follows: (1) 6% shall remain in the General Fund and may be used for any City purpose. (2) The remaining revenues will be dedicated to road maintenance and road related projects. 2. In addition to the automatic annual review of the Financial Planning Model, the City Council will review the need for rate or other changes as part of the biennial budget process. 3. The City Council shall periodically reconsider the need for a Solid Waste Utility Tax given current economic conditions. Section 2. TMC Section 3.51.040 Amended. Ordinance No. 2250 §1 (part), as codified at TMC Chapter 3.51.040, "Occupations Subject to Tax — Amount," is hereby amended to read as follows: 3.51.040 Occupations Subject to Tax — Amount A. There is levied upon, and shall be collected from a person because of certain business activities engaged in or carried on in the City of Tukwila, taxes in the amount to be determined by the application of rates given against gross income as follows: B. Upon a person engaged in or carrying on the business of providing solid waste collection service, a tax equal to 6% of the total gross income from such business from all customers in the City, except residential customers, during the period for which the tax is due. On November 1, 2019, said tax rate shall increase to 11 %, and shall then increase to 16% effective July 1, 2020. Section 3. TMC Section 3.51.050 Amended. Ordinance No. 2250 §1 (part), "Tax Year," as codified at TMC Chapter 3.51.050, is hereby amended to read as follows: 3.51.050 Tax Year The tax year for purposes of this solid waste utility tax shall commence on January 1 and end on December 31 each year, except for the following tax periods which constitute separate tax periods: November 1, 2019 to June 30, 2020, and July 1, 2020 to December 31, 2020. W: Legislative Development\Solid Waste Utility Tax increase 7-9-19 CK:bjs Review and analysis by Barbara Saxton Page 2 of 3 Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 5. 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 of constitutionality of the remaining portion of this ordinance or its application to any other person or situation. Section 6. 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 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 16 k day of =S � , 2019. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Tl kI achel B. Turpin, City Attorney Allan Ekberg, Mayor Filed with the City Clerk: '7 -t 0 Passed by the City Council: i -1 S $ c1 Published: -7 - l y 1 `ti Effective Date: .7 3 -1`1 Ordinance Number: o 411 W: Legislative Development\Solid Waste Utility Tax increase 7-9-19 CK:bjs Review and analysis by Barbara Saxton Page 3 of 3 City of Tukwila Public Notice of Ordinance Adoption for Ordinances 2609-2611. On July 15, 2019 the City Council of the City of Tukwila, Washington, adopted the following ordinances, the main points of which are summarized by title as follows: Ordinance 2609: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2250 §1 (PART), TO INCREASE THE SOLID WASTE UTILITY TAX; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. Ordinance 2610: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE ISSUANCE OF UNLIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $40,885,000, TO FINANCE COSTS RELATED TO ITS PUBLIC SAFETY PLAN AND PAYING COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF THE SALE OF THE BONDS; DELEGATING AUTHORITY TO APPROVE THE METHOD OF SALE AND THE FINAL TERMS OF THE BONDS; PROVIDING FOR OTHER MATTERS RELATING THERETO; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. Ordinance 2611: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $25,000,000 TO FINANCE COSTS RELATED TO THE CITY'S PUBLIC SAFETY PLAN AND PUBLIC WORKS FACILITIES AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF THE SALE OF THE BONDS; DELEGATING AUTHORITY TO APPROVE THE METHOD OF SALE AND THE FINAL TERMS OF THE BONDS; PROVIDING FOR OTHER MATTERS RELATING THERETO; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. The full text of this ordinance will be provided upon request. Christy O'Flaherty, MMC, City Clerk Published Seattle Times: July 18, 2019