1981 08 18 SS3182
STUDY SESSION
August 18,1981
UTILITY OCCUPATIONAL TAX
Joseph K.Gavinski,City Manager,stated that he had given to Council at the last
meeting,information on Substitute House Bill #61 and its implementation in January
of 1982.This will alter the city's revenue from the utility occupational tax on
the telephone company.
Mr.Gavinski explained the impact SHB 61 would have on the city's revenues.
Mr.Gavinski also explained that Sammons Communications has not been paying the
city's utility occupational tax on the revenue it receives from the HBO service.
He explained that the city is in the process of discussing this with Sammons.Mr.
Gavinski explained that he had had a visit from Mr.Hill,who is based in Sammons'
home office in Dallas,before the HBO service was implemented,and was informed
that they would pay the utility tax on the HBO service.He stated that he did not
follow up.on this as he believed they were taking care of it.However,after he
had been informed of the problem Ephrata was having in this area he contacted Mr.
Garrett of the local office and was informed that Sammons was not paying the utility
tax on HBO service.
There was some discussion by the Council.It was the consensus of the Council to
use alternative 3 as presented by the City Manager for the telephone company.
ANNEXATION -CITY SERVICES OUTSIDE THE CITY LIMITS
Joseph K.Gavinski,City Manager,stated that the city has been asked to extend
water service outside the city limits to a subdivision consisting of approximately
100 lots.He stated that he has been unable to find any Council policy decision on
extending city services to areas outside the corporate limits of the city.
There was some discussion by Council.
Mr.Gavinski pointed out that the Comprehensive Plan states that if lands are
contiguous to the city,annexation should be required before city services are
extended.
Mr.Gavinski stated that if the Council sets a policy whereby areas must be annexed
before being served with city services,it brings the Coordinated Water Plan into
the picture.He stated that he has been informed by one of the County Commissioners
that if the city accepts the 10-year plan for the critical water area,the city
cannot require annexation before extension of city services.He stated that he
does not agree with that.He stated that the coordinated water plan is a planning
tool and is completely separate from the city's ability to annex.
James Whitaker,City Attorney,stated that the city has the power to make contracts
which would allow a property owner to receive city services outside the corporate
limits of the city but which would prevent him from opposing annexation when the
city finally decides to annex that property.
Mr.Whitaker explained some of the problems occuring because of the coordinated
water plan area.
After some discussion,it was the consensus of the Council that a policy be set
stating that contiguous land should be annexed before receiving city services and
develop some standards for non-contiguous land.This will be set out in a resolu
tion.A contract and power of attorney will also be developed.