2009-10 Adopted Budget - City of Hoquiam

Gambling Excise TaxesThe City has the following gambling taxes:• Bingo and raffles - 7.5% of gross less prizes awarded• Punch boards and pull tabs (commercial) - 3% of gross• Punch boards and pull tabs (charitable) - 7.5% of gross less prizes awarded• Card games - 20%Casinos and tribal gaming operations have negatively impacted this revenue source inrecent years. Total 2009 and 2010 budgeted revenues are $37,546 and $38,774respectively.Garbage Service FranchiseThe local garbage service provider must remit 5% of total revenues monthly to the Cityas payment for a franchise agreement. Total 2009 and 2010 budgeted revenues are$73,122 and $77,549 respectively. The City has one garbage provider (HometownSanitation).In Lieu of TaxesThe Revised Code of Washington allows cities to impose excises for regulation inregard to all kinds of businesses. As such, the City imposes a 10% charge on theoperating revenues of each of the City owned utilities. The In Lieu of Taxes acts like abusiness license and attempts to replace the property taxes the utilities would normallypay if they were not exempt. The Solid Waste Utility was removed from this calculationin 2004 and the Storm Water Utility was added to this calculation in 2006. Total 2009and 2010 budgeted revenues are $287,500 and $296,500 respectively.Interest EarningsThe City earns interest income form purchasing U.S. Treasuries and collateralizedCertificates of Deposits. Additionally, the City earns interest on money held in the Stateof Washington Local Government Investment Pool (LGIP). Short term interest rateshave risen and fallen dramatically over the past two years allowing the City to earn moreon deposits than we are estimating in future years. Total 2009 and 2010 budgetedrevenues are $120,000 each year respectively.Leasehold Excise TaxThe State collects a 12.84% tax on government owned property that is leased to privateindustries. The state then redistributes the money of which the City receives 1% of thetax. The Leasehold Excise Tax essentially acts like a property tax. The Port of GraysHarbor is the primary leaser of public land. Total 2009 and 2010 budgeted revenuesare $35,108 and $36,257 respectively.Liquor Receipts - Profits and TaxesCities are responsible for policing of liquor establishments located within their limits, butare precluded from taxing them because of the state liquor monopoly. Therefore, statelaw provides that a share of the state-collected profits and taxes be returned to cities to38