HomeMy WebLinkAbout11/14/2007
DIGITAL RECORDING
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NOV f 8 ZOO1d
CITY COUNCIL MEETING MINUTES
Wednesday, November 14, 2007
The weekly meeting of the City Council of the City of Bremerton was called to order in the City
Council Chambers, of the NORM DICKS GOVERNMENT CENTER 345 6th Street, Bremerton,
Washington, Wednesday, November 14, 2007, at 5:30 PM, with Council President Will Maupin
presiding. Council members present were Nick Wofford, Carol Arends, Dianne Robinson, Mike
Shepherd, Wendy Priest, Adam Brockus, Cecil McConnell, and Brad Gehring. Also present
were City Attorney Roger Lubovich; City Clerk Carol Etgen; and Legislative Assistant Lori
Smith.
The Pledge of Allegiance was led by Council Member Brad Gehrin~ followed by the
invocation provided by Council Member Dianne Robinson.
President Maupin announced that a Pre-Council Session to discuss General Council Business
was held prior to the meeting, which included a 15-minute Executive Session to discuss
"Litigation" per RCW 42.30.110(1 )(i).
PUBLIC RECOGNITION & ANNOUNCEMENTS
Adam Brockus announced that several activities would be taking place both downtown and in
Manette as part of the Winterfest event on December 7,2007, and that Kitsap Transit would be
running a free shuttle between both locations.
CONSENT AGENDA )
A. Check Numbers 320784 through 320844; and EFT-71Lt.70 through EFT-7482 in the amount
of $1,319,979.07; and Regular Payroll in the amount of $3,811.77 for the pay period ending
October 31,2007 (#AB07-259)
05:34:05 M/S/C/U (Priest/Arends) Move to approve the CONSENT AGENDA as presented.
PUBLIC HEARINGS
5A - PUBLIC HEARING ON REVENUE SOURCES FOR THE 2008 BUDGET AND
ORDINANCE NO. 5027 LEVYING PROPERTY TAXES FOR COLLECTION IN 2008 (#AB07-
260): Laura Lvon, Financial Services Director, explained that the City's property taxes are
levied on an annual basis through passage of an ordinance. The proposed ordinance will
implement a general property tax levy and a voted EMS levy at the statutory rate limit as well as
bond redemption levy at a rate adequate to provide funds necessary to meet debt service
obligations. A POWER POINT @ presentation was provided to show further details and to
highlight noteworthy items. Citizens were encouraged to view the full budget on the City's
website at www.ci.bremerton.wa.us.
There were no comments from the public.
06:17:20 M/S/C/U (Priest/Wofford) Move to approve Ordinance No. 5027 levying property taxes
for collection in 2008.
GENERAL BUSINESS
6A - ORDINANCE NO. 5028 AMENDING CHAPTERS 3.48 AND 3.86 OF THE BREMERTON
MUNICIPAL CODE (BMC) RELATING TO BUSINESS AND OCCUPATION TAX
EXEMPTIONS, AND THE ALLOCATION AND APPORTIONMENT OF GROSS INCOME
FROM TAXABLE SERVICE ACTIVITIES (#AB07-261): Laura Lvon, Financial Services
Director, summarized that the as part of the 2007 budget adoption and revenue actions, the
City Council adopted a plan and made changes to the City's B & 0 Tax as deemed appropriate
to encourage existing business to expand and grow and/or attract new business to Bremerton.
City Council Reg. Mtg. Minutes
Wednesday, November 14, 2007
Page 2 of 2
The plan included an increase to $60,000 (up from $40,000) of the revenue exemption upon
achieving a full year of sales tax revenue growth of 6% or greater. The 2006 sales tax revenue
for the City was 7.8% higher than 2005 triggering the next step of the exemption increase. In
addition, the State Legislature, through EHB2030, has mandated that all B & 0 tax cities adopt
a new allocation/apportionment method for taxing service-based businesses effective January
1, 2008. In the case of sales of tangible personal property, the taxable activity is taxed in the
location where the delivery to the buyer occurs. Gross income from taxable service activities is
apportioned to a location on the basis of a two-factor formula consisting of a payroll and service
income factor. A POWER POINT @ presentation was made to provide a summary of the five
major changes and to highlight other noteworthy items.
There were no comments from the public.
Council Members requested clarifications, and expressed their comments. . .
Mr. GehrinQ felt the language was confusing, and feared that businesses would end up
needing to hire bookkeepers to follow the program accurately; and Mr. McConnell disagreed
with another unfunded mandate from the State and favored eliminating the B&O tax altogether.
06:51 :40 M/S/C (Priest/Shepherd) Move to approve Ordinance No. 5028 amending Chapters
3.48 and 3.86 of the Bremerton Municipal Code relating to allocation and apportionment of
taxable income and related administrative provisions in compliance with RCW 35.102.130, to
increase the exemption of revenue subject to taxation and other related amendments.
Voted in favor of Motion: Brockus, Priest, Shepherd, Robinson, Arends, Wofford, Maupin
Voted opposed to Motion: Gehring, McConnell
Motion carried: 7-Yes; 2-No
With no further business, President Maupin explained that no Council Meeting would be held
next week, and wished everyone a Happy Thanksgiving. He then adjourned the Council
Meeting at 6:53 PM. The Council reconvened in the Council Conference Room for a STUDY
SESSION to hear presentations on upcoming agenda items.
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LORI SMITH
Legislative Assistant
Attest:
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CAROL GEN, Cit lerk
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