Tacoma City Business Preview - Week of November 20, 2012

We’ve got a long-ish City Council agenda for this short holiday week: 3 days, but 8 first readings of ordinances, and a few other items as well…

Budget
The main items on this week’s City Council study session are once again budget-related. The Council will have an opportunity to discuss the proposed 2013-2014 Biennial Budget at the Council Budget Work Session, including a budget wrap-up and other budget items of interest. The first reading of the ordinance to pass the 2013-2014 biennial budget for the City of Tacoma is scheduled for next Tuesday, November 27, and the final reading is on the calendar for December 4.

Transportation Benefit District
Ordinance 28099 to establish a Transportation Benefit District for the City of Tacoma is up for a final reading this week. If this passes, we can probably expect a car tab fee proposal in our future.

Property Tax
Of the ordinances getting a first reading of this week, six are tax-related. Four of those six relate to setting the property tax rates collected by the City. Ordinance 28100 would authorize a 0% increase in the 2013 general property tax revenue collection for the general property tax levy. Ordinance 28101 would fix the amount of the 2013 Ad Valorem property tax levies. Ordinance 28102 would authorize a decrease in the 2013 general property tax revenue collection for the Emergency Medical Services property tax. And, finally, Ordinance 28103 would fix the amount of the 2013 EMS tax levies.

B&O Tax
Another pair of tax-related ordinances relates to Tacoma’s business and occupation tax. Ordinance 28106 would make a few changes: a revision of the definition of “engaging in business” to clarify the nexus of board meetings; changes to amend apportionment for digital goods; and an update to the deduction to refer to state-required tax treatment. These changes come out of a workgroup of Washington State cities with B&O taxes, working in consultation with the business community to revise the state model ordinance, and to reflect other changes made to state law since the last update went into effect in 2008. All cities with local B&O taxes have to adopt the mandatory portions of the changes, by the end of the year.

Ordinance 28107 would make the much talked about change of repealing the B&O tax exemption for nonprofit healthcare organizations. The changes would add a new deduction for gross income received from public entities for health and social welfare services, and would eliminate the partial exemption and deduction provided to nonprofit healthcare providers whose annual gross income exceeds $30 million for gross income received from healthcare services. In justification, along with the general budget shortfall, the background information on the ordinance mentions that “the City recognizes that certain medical buildings previously subject to property tax have recently been determined to be exempt, further reducing the City’s General Fund revenues.”

Curfew
Changes are being proposed to make Tacoma’s juvenile curfew more permanent. Ordinance 28105 would amend the TMC to renew the Curfew Ordinance as non-expiring, with a biennial review by the Public Safety, Human Services, and Education Committee. The midnight to six a.m. curfew for minors was enacted in 1994, with a requirement for regular evaluation. The current curfew ordinance is set to expire on December 31, 2012.

Minor Changes
Ordinance 28104 would amend the portion of the TMC that relates to the joint City-County Law Enforcement Support Agency, to update the wording from Law Enforcement Support Agency to South Sound 9-1-1 Agency. This change reflects the establishment of South Sound 911; on on January 1, 2013, LESA will be absorbed into SS911, and remaining employees will be transitioned into employment with the new entity.

Purchase Resolution
This week’s purchase resolution has an assortment of items on the list:

1. $520,000 plus sales tax, budgeted from the Communications System Fund, for an initial two-year term with the option to renew for three additional one-year terms, for a projected contract total of $1,300,000; and $36,000 plus sales tax, budgeted from the Communications System Fund, for an initial two-year term with the option to renew for three additional one-year terms, for a projected contract total of $90,000, for telecommunications carrier services.
2. $240,050, plus a 30 percent contingency, for a cumulative total of $312,065, budgeted from the REET Fund and the Streets Special Revenue Fund, for Sidewalk Reconstruction Abatement Program SCF-11, located at 81 sites within the city limits.
3. $719,633, plus sales tax, budgeted from the Solid Waste Fund, for one 2013 Caterpillar 966K Wheel Loader and one 2013 Caterpillar 950K Wheel Loader.
4. $150,000, plus sales tax, budgeted from various departmental funds, for a cumulative total of $350,000, to increase the contract for crane rental services.

Phone services for City buildings, asphalt patching for 81 unfit or unsafe sidewalks, new vehicles for solid waste, and as-needed crane rental for TPU. Construction on those sidewalk repairs would begin next month, and wrap up by June 2013. Check out the official list of projects (pdf) to find out if a patch will be coming to a sidewalk near you.

Holiday Tree Lighting and Other Festivities
Despite the ever-earlier holiday ads, sales, and decorations popping up arount town and on our TVs and radios, the traditional start of the holiday season comes Thanksgiving week. And, to kick that off, a couple events are going on around town – on Friday the Polar Plaza ice rink in Tollefson Plaza will open, and on Saturday the City will hold its Holiday Tree Lighting ceremony.

Holiday Tree Lighting
When: Saturday, November 24, 5:30 p.m. to 6:30 p.m.
Where: Broadway between South 9th and South 11th

Franciscan Polar Plaza
When: Friday, November 23, 2012 through January 6, 2013, 10:00 a.m. to 10:00 p.m.
Where: Tollefson Plaza