HomeMy WebLinkAboutCOW 2022-01-10 Item 5B - Ordinance - Extend Utility Tax Sunset ProvisionCOUNCIL AGENDA SYNOPSIS
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Meeting Date
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Council review
01/10/22
AY
ITEM INFORMATION
ITEM No.
5.B. &
Spec 2.B.
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STAFF SPONSOR: VICKY CARLSEN
ORIGINAL AGENDA DATE: 1/10/22
AGENDA ITEM TITLE Ordinance extending the existing utility tax on City operated utilities
CATEGORY 11 Discussion
1/10/22
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
11 Ordinance
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
Mtg Date
Mtg Date 1/10/22
SPONSOR Council ❑Mayor ❑HR ❑DCD 11 Finance Fire ❑TS ❑P&R Police ❑PIF Court
SPONSOR'S Council is being asked to approve an ordinance for a six-year extension to the existing
SUMMARY interfund utility tax.
REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Finance Comm. ❑ Public Safety Comm.
❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
Finance
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
MTG. DATE
ATTACHMENTS
1/10/22
Informational Memorandum dated 1/4/2022
Ordinance
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of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: January 4, 2022
SUBJECT: Interfund Utility Tax Extension
ISSUE
Approve a six-year extension to the existing utility tax on City operated utilities.
BACKGROUND
The City has assessed a 10% tax rate on the revenues generated by city -owned utilities:
water, sewer, and surface water.
The City Council passed Ordinance No. 2463 on December 15, 2014, which extended
the interfund utility tax through December 31, 2021.
The tax generates over $2 million in revenue for the general fund.
DISCUSSION
The current biennial budget 2021-2022 includes the continuation of the interfund utility
tax and it is also included in the City's six-year plan. An ordinance is required to extend
the interfund utility tax through the end of 2027.
In addition to extending the expiration date, two other housekeeping items are included
in the ordinance. Ordinances 2298 and 2463 are being repealed. These ordinances
adjusted the expiration dates. Additionally, Section 3.54.030 A 1 is being removed. The
paragraph levied a 15% tax that was in effect from December 31, 2008, through April 30,
2010.
A new section under 3.54.030 is being added to clarify how and when the tax is calculated
and how it can be terminated or extended.
RECOMMENDATION
Council is being asked to consider and approve this ordinance at the January 10, 2022,
Committee of the Whole and Special Meeting.
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON; AMENDING ORDINANCE NO.
2258 §3, AS CODIFIED AT TUKWILA MUNICIPAL CODE
SECTION 3.54.030, EXTENDING THE CITY UTILITY TAX
SUNSET PROVISION; REPEALING ORDINANCE NOS.
2463 AND 2298; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, at the time Ordinance No. 2463 was passed, the City Council intended
to extend the sunset provision for the collection of City utility taxes to December 31, 2021;
and
WHEREAS, the City Council adopted the 2021-2022 Biennial Budget with the intent
of extending the City utility tax through the 2021-2022 biennium; and
WHEREAS, the City Council and Mayor have reviewed the current General Fund
status and operating budget and determined it is in the best interest of the residents of
Tukwila to further extend the current sunset provision to 2027;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. TMC Section 3.54.030 Amended. Ordinance No 2258 §3, as codified
at Tukwila Municipal Code Section 3.54.030, is hereby amended to read as follows:
3.54.030 Tax Rate lend Collection
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:
for which the tax is due. Such tax shall be effective from December 31, 2008 through
April 30, 2010.
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21. Upon the City water, sewer and surface water utility 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, 2012 2027.
2. Collection of City Utility Tax. The City utility tax is calculated monthly, after
the close of the month, and will be collected for each of the twelve months in years 2022
through 2027, unless such utility tax collection is earlier terminated or further extended by
ordinance.
Section 2. Repealer. Ordinance Nos. 2463 and 2298 are hereby repealed.
Section 3. Corrections by City Clerk or Code Reviser Authorized. 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 4. 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 5. 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 Special Meeting thereof this day of , 2022.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor
APPROVED AS TO FORM BY: Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Office of the City Attorney
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VC:bjs
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Ordinance Number:
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