013-14 - Resolution - Budget Additional Excise Tax for Sidewalk and Street MaintenanceRESOLUTION NO. 013-14
Introduced by: City Attorney
Requested by: City Council
Drafted by: City Attorney
Introduced: May 27, 2014
Adopted: May 27, 2014
A RESOLUTION OF THE CITY OF PORT ORCHARD,
WASHINGTON, STATING THE CITY COUNCIL'S INTENT TO
BUDGET ADDITIONAL EXCISE TAX REVENUE COLLECfED
FROM THE FRANCHISE AGREEMENT WITH CASCADE
NATURAL GAS FOR SIDEWALK AND STREET MAINTENANCE
AND REP AIR EXPENSES
WHEREAS, the City is proposing to enter into a new franchise agreement with
Cascade Natural Gas (CNG) allowing CNG to provide natural gas and natural gas
services to citizens of the City of Port Orchard using City rights-of-way; and
WHEREAS, as compensation and in consideration for the use of the City's
rights-of-way, the new agreement provides that the excise tax payments the City
receives from CNG's gross earnings from the sale of natural gas in the City will increase
from 2% to 4% beginning January 1, 2015 and from 4% to 6% beginning January 1,
2017; and
WHEREAS, the City Council is mindful of the economic impact that excise tax
increases have on the citizens of Port Orchard and is therefore reluctant to increase the
natural gas excise tax unless the additional revenue is directed to a specific identified
need of the City; and
WHEREAS, the City Council places a high value on maintaining and repairing
the City's sidewalks and streets but budgetary restraints do not always allow the City
Council to adequately fund these activities; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
THAT: As to the excise tax revenue in excess of 2% <;>f Cascade Natural
Gas's gross earnings on natural gas sold in the City, which tax is paid to
the City pursuant to a franchise agreement with CNG, the City Council
hereby states its intent to budget said additional revenue for the purpose
of supplementing the annual sidewalk and street maintenance and
repair.
Resolution No. 013-14
Page 2 of2
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and
attested by the City Clerk in authentication of such passage this 2~ day of May 2014.
~~~L :i-,
Timothy C. tthes, Mayor