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HomeMy WebLinkAbout6170ORDINANCE NO. 6 1 7 0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AMENDING CHAPTER 3.40 OF THE AUBURN CITY CODE, AND AMENDING SECTIONS, 3.41.010, 3.84.040 AND 3.88.040 OF THE AUBURN CITY CODE AND CREATING A NEW CHAPTER 3.42 OF THE AUBURN CITY CODE RELATING TO THE LEVY AND COLLECTION OF UTILITY TAXES WHEREAS, the City would like to issue bonds for improvements to and maintenance of its arterial streets; and WHEREAS, the City has decided to fund the debt service for the bonds with a one percent increase to the City's utility tax rates; and WHEREAS, an Auburn citizen's advisory task force has recommended that the City take steps, to utilize its available taxing capacity in the utility tax to provide revenue to improve and repair the City's arterial streets; and WHEREAS, the City Council has reviewed its various utility tax funds and finds that it is appropriate that the provisions of the City Code be amended to increase the City utility tax rates to meet the City's arterial street bond needs, with the intention that the utility tax rates shall revert to the rates prior to the increases of this Ordinance if state funding of the City's arterial street fund is provided in amounts off-setting the utility tax rate increases of this Ordinance; and WHEREAS, it is also appropriate to establish in the City Code a Chapter providing for utility taxes on the service of cable television business operating within the corporate limits of the City; and ----------------- Ordinance No. 6170 April 7, 2008 Page 1 of 7 WHEREAS, particularly in light of the recent annexations, and the City's franchise agreement with Lakehaven Utility District whereby the City reserved the right to apply and impose utility taxes, it is also appropriate to amend the applicable sections of the City Code so as to apply utility taxes to that part of the Utility District's service area within the City. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Amendment to City Code. That Chapter 3.40 of the City of Auburn City Code is amended to read as follows: Chapter 3.40 WATER AND SEWER UTILITY TAX Sections: 3.40.010 Created. 3.40.020 Levy and collection. 3.40.010 Created. There is created a tax in the amount of seven percentx to be levied can and after janeaafy-July Jun 1, 20032008, against and upon the total annual revenues of the water, storm drainage and sewer utility funds and on all water, storm drainage and sewer utilities, business enterprises or other entities engaged in providing such utility services within the City. (Ord. 5699 § 1, 2002; Ord. 5280 § 1, 1999; Ord. 4178 § 2, 1986.) 3.40.020 Levy and collection. There is levied a tax of &ix-seven percent per year upon the total annual revenues of the water, storm drainage and sanitary sewer utility funds and on all water, storm drainage and sewer utilities business enterprises or other entities engaged in providing such utility services within the City, which tax shall be collected from and levied upon the total revenues received by the water, storm drainage and sanitary sewer utility funds and on the revenues derived from within the City of all water, storm drainage and sewer utilities, business enterprises or other entities engaged in providing such utility services, for the benefit of the current expense fund, or as otherwise directed by he City. The finance director is directed to collect the tax of six seven percent out of the total revenues received each ----------------- Ordinance No. 6170 April 7, 2008 Page 2 of 7 year in the water, storm drainage and sewer utility funds, commencing anua.-y Apf4julv 1, 20032008, and the finance director is directed to pay over the funds so collected into the current expense fund. The increase in tax revenue enerated b the additional one ercent tax levied Pursuant to Ordinance No, 6170 shall be rele ated for use b the Cit in su cart of its arterial street _ system, It is provided, however, that if the State of Washington increases its provides a long term sustainable funding source of to the City of Auburn Arterial Street Fund in an amount sufficient to off- set the amount of the increases in utility tax rates of this Ordinance and the long term funding source is sufficient to maintain the City of Auburn's arterial streets stem's Pavement Condition Index PCI at an average of 70 PCI out of a score of 100 PCI for the foreseeable future, the water, storm drainage and sanitary sewer utility tax rate shall automatically revert to six percent per year upon the total annual revenues of the water, storm drainage and sanitary sewer utility funds. (Ord. 5699 § 1, 2002; Ord. 5280 § 1, 1999; Ord. 4178 § 2, 1986.) Section 2. Amendment to City Code. That Section 3.41.010 of the City of Auburn City Code is amended to read as follows: 3.41.010 Tax created. There is created a utility tax in the amount of seven percent, to be levied on and ' ar July 1, 2008 of the gross receipts against and upon the total annual revenues of the garbage fund, and on all solid waste utilities and upon every business enterprise or other entity engaged in handling solid waste. For the purposes hereof, "solid waste" means garbage, recyclables and yard debris. The increase in t K r- gnue generated by the additional one ercent tax levied ursuant to Orc Dance No. 6170 shall be role ated for use the Cit in su ort cif its arterial streets stem. It is provided, however, that if the State of Washin ton increases its provides a long term sustainable funding source of to the City of Auburn Arterial Street Fund in an amount sufficient to off-set the amount of the increases in utility tax rates of this Ordinance and the long term funding source is sufficient to maintain the City of Auburn's arterial streets stem's Pavement Condition Index PCI at an average of 70 PCI out of a score of 100 PCI for the foreseeable future, the garbage and solid waste utility tax rate shall automatically revert to six percent of the gross receipts against and upon the total annual revenues of the garbage fund, and on all solid waste utilities and upon every business enterprise or other entity engaged in handling solid waste. (Ord. 5700 § 1, 2002; Ord. 5671 § 1, 2002; Ord. 4393, 1989; Ord. 4179 § 2, 1986.) ----------------- Ordinance No. 6170 April 7, 2008 Page 3 of 7 Section 3. Amendment to City Code. That Section 3.84.040 of the City of Auburn City Code is amended to read as follows: 3.84.040 Tax - Imposed. On and after ApFil-41 Re ulyr 1, 28842008, there is levied upon and there shall be collected from every person, firm or corporation engaged in carrying on the following business for hire or for sale of a commodity or a service within or partly within the corporate limits of the city, a tax for the privilege of so doing business as defined in ACC 3.84.010. Upon any telephone business there shall be levied a tax equal to We-six percent of the total gross operating revenues, including revenues from intrastate tolls derived from the operation of such business within the city. Gross operating revenues for this purpose shall not include charges which are passed on to the subscribers by a telephone company pursuant to tariffs required by regulatory order to compensate for the cost to the company of the tax imposed by this chapter. The increase in tax revenue generated by the additional one ercent tax levied pursuant to Ordinance No. 6170 shall be relegated for use b the City in support of its arterial streets steer. It is provided, however, that if the State of Washington increases its provides a long term sustainable funding source of to the City of Auburn Arterial Street Fund in an amount sufficient to off-set the amount of the increases in utility tax rates of this Ordinance and the long term funding source is sufficient to maintain the City of Auburn's arterial streets stem's Pavement Condition Index (PCI) at an average of 70 PCI out of a score of 100 PCI for the foreseeable future, the telephone utility tax rate shall automatically revert to five percent of the total gross operating revenues on telephone businesses, including revenues from intrastate tolls derived from the operation of such business within the city. (Ord. 5797 § 1, 2003; Ord. 5673 § 2, 2002; Ord. 4185 § 2, 1986. Formerly 5.82.040.) Section 4. Amendment to City Code. That Section 3.88.040 of the City of Auburn City Code is amended to read as follows: 3.88.040 Tax - Levy. From On and after April- July 1, 20042008, there is levied upon and there shall be collected from every person, firm or corporation engaged in carrying on an electric power business, natural gas business and/or artificial gas business for hire within or partly within the city limits an annual tax for the privilege of so doing, such tax to be equal to five-six percent of the total gross revenues received from the operation of such businesses within the city limits. The increase in tax revenue enerated b the additional one ercer,' t I vied ursuant to Ordinance No. 6170 shall be ----------------- Ordinance No. 6170 April 7, 2008 Page 4 of 7 rele aced for use b the City in support of its arterial street system. It is provided, however, that if the State of Washington increases its provides a long term sustainable funding source of to the City of Auburn Arterial Street Fund in an amount sufficient to off-set the amount of the increases in utility tax rates of this Ordinance and the long term funding source is sufficient to maintain the City of Auburn's arterial street system's Pavement Condition Index PCI at an averse of 70 PCI out of a score of 100 PCI for the foreseeable future. the electric power, natural gas business and artificial gas business utility tax rate shall automatically revert to five percent of the total gross revenues received from the operation of such businesses within the city limits. (Ord. 5797 § 2, 2003; Ord. 5673 § 3, 2002; Ord. 4180 § 1, 1986; Ord. 3827 § 1, 1982; Ord. 3679 § 1, 1981; 1957 code § 5.42.030. Formerly 5.88.040.) Section 5. Creation of New Chapter to City Code. That a new Chapter 3.42 of the City of Auburn City Code is created to read as follows: Chapter 3.42 CABLE TELEVISION UTILITY TAX Sections: 3.42. 010 Tax created. 3.42.020 Levy and collection of tax. 3.42.010 Tax created. There is created a utility tax in the amount of one percent to be levied on and after July 1, 2008, as set forth below, of the gross receipts against and upon the total annual revenues of cable television businesses operating within the City. 3.42.020 Levy and collection of tax. There is levied a tax of one percent on the gross income of, and upon the total annual revenues of cable television businesses operating within the City, which tax shall be collected from and levied upon the total receipts of such cable television business(es). For the purposes hereof, the following terms and definitions shall apply: A. "Gross income" means the value proceeding or accruing from the sale of any tangible property or service, and receipts (including all sums earned or charged, whether received or not), by reason of the investment of capital in the business engaged in, including rentals, royalties, fees, or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like) and without any deduction on account ----------------- Ordinance No. 6170 April 7, 2008 Page 5 of 7 of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses, including the amount of credit losses actually sustained by the taxpayer whose regular books or accounts are kept upon an accrual basis. B. "Cable television business" means: 1. a system providing service pursuant to a franchise issued by the City under the Cable Communications Policy Act of 1984 Public Law No. 98-549, 47 U.S.C. § 521, as it may be amended or superseded; or 2. any system that competes directly with such franchised system by employing antennae, microwave, wires, wave guides, coaxial cables, or other conductors, equipment or facilities designed, construed or used for the purpose of: (a) collecting and amplifying local and distant broadcast television signals and distributing and transmitting them; (b) transmitting original cable-cast programming not received through television broadcast signals; or (c) transmitting television pictures, film and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers; provided, however, that "cable television service" shall not include entities that are subject to charges as "Commercial TV Stations" under 47 U.S.C. § 158, as it may be amended or superseded. C. The tax revenue generated by the one percent levied pursuant to Ordinance No. 6170 shall be relegated for use by the City in support of its arterial street system. It is provided, however, that if the State of Washington provides a long term sustainable funding source to the City of Auburn Arterial Street Fund in an amount sufficient to off-set the amount of the cable television utility tax rates of this Ordinance, and the long term funding source is sufficient to maintain the City of Auburn's arterial street system's Pavement Condition Index (PCI) at an average of 70 PCI out of a score of 100 PCI for the foreseeable futureā€ž the utility tax on cable television businesses shall automatically terminate and the status of the tax shall be consistent with its status prior to the adoption of this Ordinance. Section 6. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. ----------------- Ordinance No. 6170 April 7, 2008 Page 6 of 7 Section 7. Severability. If any section, subsection, clause, phrase, or sentence, of this Ordinance, is for any reason held to be invalid or unconstitutional, such invalidity or unconstitutionality of the remaining portions of this ordinance, as it is being hereby expressly declared that this ordinance and each section, subsections, clause, phrase, or sentence, hereof would have been prepared, proposed, adopted, and approved and ratified irrespective of the fact that any one or more section, subsection, clause, phase, or sentence, be declared invalid or unconstitutional. Section 8. Effective Date. This Ordinance shall take effect and be in force five (5) days from and after its passage, approval and publication as provided by law, and on July 1, 2008. INTRODUCED: APR - 7 2008 PASSED: APR - 7 2008 g-ppROVaa--- -A1!R - 7 2008 PETER B. LEWIS, MAYOR ATTEST Da Ile E. Daskam, City Clerk APPROVED AS TO FORM: PUBLISHED: 4?? li , 2c^? ----------------- Ordinance No. 6170 April 7, 2008 Page 7 of 7