HomeMy WebLinkAbout6785 ORDINANCE NO. 6785
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF AUBURN, WASHINGTON, AMENDING
SECTIONS 3.40.020, 3.41 .010, 3.42.020, 3.84.040
AND 3.88.040 OF THE AUBURN CITY CODE
RELATING TO THE USE OF TAXES IMPOSED
ON UTILITIES
WHEREAS, the Auburn City Code (ACC), including Sections 3.40.020, 3.41.010,
3.42.020, 3.84.040 and 3.88.040 of the City Code (water, sewer, storm, garbage, cable,
telephone and utility services, respectively), provides for taxes to be imposed on gross
operating revenues of said identified utilities derived from operations of such utilities within
the City; and
WHEREAS, City of Auburn Ordinance No. 6170, enacted in 2008, relegated the
use of one percent (1%) of such taxes for support of the City's arterial street system; and
WHEREAS, in light of the current economic impacts of the COVID-19 pandemic, it
is appropriate that the 1% of such tax for fiscal year 2020 that would have otherwise been
earmarked for support of the City's arterial street system be, instead, transferred to the
General Fund to support General Fund services for the City's fiscal year 2020.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendment to City Code. Section 3.40.020 ACC (Water, Sewer,
Storm) is amended to read as follows:
3.40.020 Levy and collection.
There is levied a tax of 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
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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 the city. The finance
director is directed to collect the tax of seven percent out of the total revenues received
each year in the water, storm drainage and sewer utility funds, commencing July 1, 2008,
and the finance director is directed to pay over the funds so collected into the current
expense fund. The increase in tax revenue generated by the additional one percent tax
levied pursuant to Ordinance No. 6170 shall be relegated for use by the city in support of
its arterial street system, other than as follows: The1% tax levied January 1, 2020 —
December 31,2020, will be transferred to the General Fund to support General Fund
services for the City's fiscal year 2020.. 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 increases in utility tax rates
of this section 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 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.
6170 § 1, 2008; Ord. 5699 § 1, 2002; Ord. 5280 § 1 , 1999; Ord. 4178 § 2, 1986.)
Section 2. Amendment to City Code. Section 3.41.010 ACC (Garbage) 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
after 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 tax revenue generated by the
additional one percent tax levied pursuant to Ordinance No. 6170 shall be relegated for
use by the city in support of its arterial street system, other than as follows: The1% tax
levied January 1 , 2020 — December 31,2020, will be transferred to the General Fund to
support General Fund services for the City's fiscal year 2020.. 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 increases
in utility tax rates of this chapter 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 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.
6170 § 2, 2008; Ord. 5700 § 1, 2002; Ord. 5671 § 1, 2002; Ord. 4393, 1989; Ord. 4179 §
2, 1986.)
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Section 3. Amendment to City Code. Section 3.42.020 ACC (Cable) is amended
to read as follows:
3.42.020 Levy and collection of tax.
There is levied a tax of six 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 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. Section 521 ,
as it may be amended or superseded; or
2. Any system that competes directly with such franchised system by employing
antennas, microwaves, 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. Section 158, as it may be amended or superseded.
C. The tax revenue generated by one percent levied pursuant to Ordinance No.
6170 shall be relegated for use by the city in support of its arterial street system, other
than as follows: The1% tax levied January 1, 2020 — December 31 ,2020, will be
transferred to the General Fund to support General Fund services for the City's fiscal year
2020.. The tax revenue generated by the remaining five percent levied pursuant to
Ordinance No. 6620 shall be relegated for use by the city in support of its police, public
safety and criminal justice system. (Ord. 6620 § 2, 2016; Ord. 6170 § 5, 2008.)
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August 17, 2020
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Section 4. Amendment to City Code. Section 3.84.040 ACC (Telephone) is
amended to read as follows:
3.84.040 Tax — Imposed.
On and after July 1 , 2008, 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 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
percent tax levied pursuant to Ordinance No. 6170 shall be relegated for use by the city
in support of its arterial street system, other than as follows: The1% tax levied January 1,
2020 — December 31 ,2020, will be transferred to the General Fund to support General
Fund services for the City's fiscal year 2020. 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 increases in utility tax rates
of this chapter 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 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. 6170 § 3, 2008; Ord. 5797 § 1, 2003; Ord. 5673 § 2, 2002;
Ord. 4185 § 2, 1986. Formerly 5.82.040.)
Section 5. Amendment to City Code. Section 3.88.040 ACC (Utility Services) is
amended to read as follows:
3.88.040 Tax — Levy.
On and after July 1, 2008, 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 six percent of the
total gross revenues received from the operation of such businesses within the city limits.
The increase in tax revenue generated by the additional one percent tax levied pursuant
to Ordinance No. 6170 shall be relegated for use by the city in support of its arterial street
system; other than as follows: The1% tax levied January 1, 2020 — December 31,2020.
will be transferred to the General Fund to support General Fund services for the City's
fiscal year 2020. It is provided, however, that if the state of Washington 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 chapter and the
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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 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. 6170
§ 4, 2008; 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 6. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 7. Severability. The provisions of this Ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this Ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this Ordinance, or the
validity of its application to other persons or circumstances.
Section 8. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: SEP 0 8 2020
PASSED: .cr' U 8 2020
APPROVED: SEP 0 8 2020
ANCY US, A R
ATTEST: APPROVED AS TO FORM:
Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney
Published:
Ordinance No. 6785
August 17, 2020
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