Ord 02-431ORDINANCE NO. 02-431
AN ORDINANCE OF THE CITY cOuNcIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, EXTENDING AND
INCREASING THE UTILITY TAX RATE TO 6% FROM 5% FOR
A COMMUNITY/SENIOR CENTER AND SWIMMING POOL AS
IDENTIFIED BY COUNCIL. (Amends Ordinance No. 95-257, 96-
262, and 96-276.)
WHEREAS, the City has made over $100 million dollars in capital investments in
the community in the past 10 years, and the current six-year Capital Interment Plan (Plan)
identified over $177 million in potential investment in transportation, parks, municipal and
community facilities, and in surface water management facilities; and
WHEREAS, the City Council has identified $135 million of the current Plan as
top priority projects which could partially be funded with grants, contributions, and other funding
sources but will require $29 million matching fund from the City; and
WHEREAS, at the November 7, 1995 election, the voters of the City of Federal
Way (the "City") authorized the City to levy a 1.37% utility tax upon the privilege of conducting
an electrical energy, natural gas, storm drainage, garbage, cable television, cellular and other
telephone and wireless communication services business for the purpose of financing various
traffic and street improvements and associated maintenance thereof; and
WHEREAS, on December 3, 1996 the Federal Way City Council passed
Ordinance No. 95-276 increasing the utility tax to 5% tax for the purpose of providing
infrastructure improvements, development of Celebration Park, construction of Knutsen Family
Theater, fund the Public Safety building, and provide ongoing maintenance funding for said
facilities as well as dedicating funds for the street overlay program; and
ORE) # 02-431 , PAGE 1
WHEREAS, the City conducted a Community Investment Survey in 2002. The
responses suggested significant support in the City to continue or increase the level of
community investments; and
WHEREAS the City deems it is necessary to continue the existing utility tax to
continue the level of past investments and to provide the required City matching fund for the 6-
year Capital Investment Plan; and
WHEREAS, the demographics in Federal Way has shown significant growing in
senior population over the past 10 years since the city's incorporation and provision of the
Klahanee Community and Senior Center; and
WHEREAS, the city has increasing needs in both passive and active activity space
for community gatherings, events, programs that are not fulfilled by the existing faCilities and a
Community/Senior Center is the most supported community Facility in the Community
Investment Survey; and
WHEREAS, King County is proposing to close pools and parks facilities located
in incorporated areas, including the Kenneth C. Jones Pool (Pool) in Federal Way, if cities would
not assume the financial responsibility in operating them by January 2003; and
WHEREAS the Pool is over 30 years old and has limited functionality and would
require significant capital and operating commitment from the City; and
WHEREAS, the Pool is located on School District property and the City may not
realize any equity in such investment is needed at the Pool; and
WHEREAS, the 2002 Community Investment Survey responses indicated strong
support in the City's continued operation of the Pool with additional tax assessments; and
ORD # 02-431
, PAGE 2
WHEREAS, considering the community support of a Community/Senior Center and the
status of the Pool; the City has determined that the best long-term investment would be a
combined facility that can meet multiple needs which could be provided by an additional 1%
utility tax;
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF FEDERAL
WAY, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Utility Tax. Chapter 14, Article V, Section 14-173 of The Federal
Way City Code is hereby amended to read as follows:
Section 14.173 Occupations subject to tax - Amount.
There are levied upon, and shall be collected from everyone, including the city, on
account of certain business activities engaged in or carded on in the city, occupation taxes in the
amounts to be determined by the application of rates given against gross income as follows:
(1) Upon everyone engaged in and carrying on a telegraph business, a tax
equal to 5.-0-6.0 percent of the total gross income from such business in the city during the period
for which the tax is due;
(2) Upon everyone engaged in or carrying on a competitive
telecommunication service or network telecommunication service, a tax equal to 5.4~6.0 percent
of the total gross income from such business in the city during the period for which the tax is
due. In determining gross income from such business, including intrastate toll service, the
taxpayer shall include 100 percent of the gross income received from such business in the city;
(3) Upon everyone engaged in or carrying on the business of cellular
telephone service, a tax equal to 5.4-6.0 percent of the total gross income from such business in
the city during the period for which the tax is due;
ORD # 02-431 , PAGE 3
(4) Upon everyone engaged in or carrying on the business of selling, brokering
or furnishing natural gas for domestic, business or industrial consumption, a tax equal to &0-6.0
percent of the total gross income from such business in the city during the period for which the
tax is due;
(5) Upon the city in respect to the conduct, maintenance, and operation of its
municipal storm drainage system as a public utility a tax equal to 6.37 6.0 percent eff~.t.i-ve
~i.mmaL-v_l_~_t_¢97, ,.~..~ .~ ,~ ........ · ~rr~;~,~._r~.~,,r the total gross income from such
business in the city during the period for which the tax is due;
(6) Upon everyone engaged in or carrying on the business of selling or
furnishing electric energy, a tax equal to -5~-6.0 percent of the total gross income from such
business in the city during the period for which the tax is due;
(7) Upon everyone engaged in the business of collecting solid waste, a tax
equal to .-%¢6.0 percent of the total gross income from the city during the period for which the
tax is due, less income derived from collection and sales of materials not defined herein as solid
waste; and
(8) Upon everyone engaged in or carrying on the business of cable
communications, a fee or tax equal to ~0-6.0 percent of the total gross income from gross
subscriber revenues in the city during the period for which the fee or tax is due. For purposes of
this chapter, "gross subscriber revenues" means and includes those revenues derived from the
supplying of subscription services, that is, installation fees, disconnect and reconnect fees, fees
for regular cable benefits including the transmission of broadcast signals and access and
origination channels and per-program or per-channel charges; it does not include leased channel
revenue, advertising revenue, or any other income derived from the system. (Ord. No. 95-257, {}
ORD # 02-431 , PAGE 4
1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96; Ord. No. 96-276, § 1, 12-3-96)
Section 2. Initiative and Referendum.
This Ordinance shall be subject to initiative and referendum powers as set forth in
Chapter 2, Article III of the Federal Way City Code.
Section 3. Severability.
The provisions of this Ordinance are declared separate and severable. The
invalidity of any clause, sentence, paragraph, sUbdivision, section, or portion of this Ordinance or
the invalidity of the application thereof to any person or circumstance, shall not affect the validity
Ordinance, or the validity of its application to other persons or
of the remainder of this
circumstances.
Section 4.
Ratification.
Any act consistent with the authority and prior to the effective date of this
Ordinance is hereby ratified and affirmed.
Section 5. Effective Date.
This Ordinance shall take effect and be in force 30 days from and after its passage,
approval and publication, as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY this
CITY OF FEDERAL WAY, WASHINGTON
__~AYOR, JEANNE BURC~GE
CITY CLERK, N. Christine Green, CMC
ORD # 02-431 , PAGE 5
APPROVED AS TO FORM:
CITY ATTORNEY, Patricia A. Richardson
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTWE DATE:
ORDINANCE NO.
10/30/02
11/19/02
11/23/02
12/23/02
02-431
K:\Ordin\Utility. Ord2002
ORD # 02-431 , PAGE 6