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City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Finance Committee <br />FROM: Vicky Carlsen, Finance Director <br />BY: Aaron Williams, Fiscal Coordinator <br />CC: Mayor Ekberg <br />DATE: October 23, 2019 <br />SUBJECT: 2020 Property Tax Levy <br />ISSUE <br />Approval of ordinances increasing the regular levy from the previous year and adopting the <br />general and excess property tax levies for 2020 by November 30, 2019. <br />BACKGROUND <br />A Public Hearing for adoption of the 2020 property tax levy is required by RCW 84.55.120. The <br />Hearing is scheduled for November 12, 2019. <br />The City was notified on October 21, 2019 that the assessed value for Tukwila for 2020 is <br />projected to be $7,329,542,191. <br />The ordinance to set the general tax levy also includes the excess levy related to the Public Safety <br />Plan that voters approved on the November 8, 2016 general election. The City sold $36.5 million <br />of bonds in 2016 and debt service repayment began in 2017. The remaining voter -approved <br />bonds were sold in October 2019. The excess levy for both bond issues will be assessed for as <br />long as the bonds are outstanding; the final payment for the 2016 issue is scheduled for December <br />2036 and the final payment for the 2019 issue is scheduled for December 2039 . The total excess <br />levy requirement for 2020 is $3,450,000 with an approximate levy rate of $0.47 per thousand. <br />DISCUSSION <br />Levy Amount <br />The assessed value and the allowable levy are subject to change until final levy rate <br />determination. A levy amount of $16,800,000 will be used for the ordinance. If the final allowable <br />levy is less than the ordinance amount, King County Department of Assessments will adjust the <br />ordinance amount to the final allowable levy amount and no further action by the Council will be <br />required. <br />Also included in the tax levy ordinance is an excess levy in the amount of $3,450,000 for debt <br />service related to the unlimited tax obligation bonds that were sold at the end of 2016 and in <br />2019. All voter -approved bonds have now been issued. <br />Levy Limit <br />RCW 27.12.390 allows for a maximum statutory levy rate for cities at $3.60 less the actual regular <br />levy made by a library district. RCW 41.16.060 also allows for an additional levy of $0.225 if a <br />city has a firemen's pension fund. The maximum allowable levy for 2020 is estimated to be <br />