2009-10 Adopted Budget - City of Hoquiam

an amount we have determined to be a normal operating year if all taxes were paid ontime.6. Utility TaxesAmount % Inc (Dec)2007 Actual $1,321,474 0.1%2008 Forecast $1,383,820 4.7%2009 Budget $1,497,901 8.2%2010 Budget $1,546,563 3.2%State law enables cities to impose a UtilityTax on natural gas, telephone andelectricity up to 6% unless a higher rate isapproved by the voters. A tax is alsopermitted on cable, solid waste, water,sanitary sewer and storm water. No ratelimitation exists on this second category ofutilities.The City imposes the following taxes:• Natural Gas - 6%• Telephone - 6%• Electricity - 6%• Cable TV - 8%• Water - 8%• Sanitary Sewer - 8%• Storm Water - 8%$1,600,000$1,500,000$1,400,000$1,300,000$1,200,000$1,100,000$1,000,000Utility Tax2007 2008 2009 2010Approximately 133 of the 288 cities in Washington impose some type of Utility Tax.Increases in gas and electrical rates do not typically bode well for consumers, but canhave a positive effect on utility tax revenues. Also, changing weather conditions canhave an effect, positive or negative, on utility tax revenues.Budget Assumptions: Due to the complex utility industry, legislative changes andchanging weather conditions, accurately predicting total revenues is extremely difficult.2009 budgeted revenue of $1,497,901 is 8.2% more than 2008 forecasted amountsprimarily due to the expansion of existing manufacturing businesses that use largeamounts of electricity. For 2010, we increased the utility tax by approximately $48,660based upon the addition of a new bulk storage business located at the Port of GraysHarbor.35