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RFA Annexation and Impacts
<br />Key Messages & Information
<br />• Annexation into the RFA was the consensus of the 2021/2022 Future of Fire and EMS Services Advisory
<br />Committee in order to ensure the long-term sustainability of funding Fire and EMS services and to enhance Fire
<br />and EMS services in the City of Tukwila
<br />• The Committee also understood that annexation would also provide the City a tool to address structural funding
<br />gaps; annexation would allow the City to return to pre -pandemic service levels
<br />• Annexation allows for a more equitable allocation of responsibility for funding fire services as larger, more
<br />complex buildings pay a higher proportion of fire services
<br />• As a part of the adopted 2023/2024 biennial budget, the City anticipated lowering the City's property tax levy
<br />rate upon annexation in 2025
<br />• The 2024 Council will ultimately make the decision on what rate to levy as a part of the 2025/2026 budget, but
<br />the current adopted six-year plan includes the following assumptions:
<br />o Reduce property taxes levied by the City
<br />o Return service levels to pre -pandemic levels
<br />o In Q3 of 2023, initiate the long-term fiscal sustainability planning effort, which includes the formation
<br />of an advisory committee of residents and other stakeholders to be completed in Q2 of 2024 to provide
<br />long-term fiscal solutions to the City Council in time to inform the 2025/2026 budget
<br />The 2023/2024 adopted budget includes the following property tax rates in
<br />City's Property Tax Rate for General Fund Purposes
<br />Year
<br />Actual
<br />Actual
<br />Actual
<br />Budget
<br />2020
<br />2021
<br />2022
<br />2023
<br />2024
<br />2025
<br />2026
<br />2027
<br />2028
<br />7,883,057,562
<br />8,010,892,032
<br />8,970,452,548
<br />9,374,122,913
<br />9,795,958,444
<br />10,236,776,574
<br />10,697,431,520
<br />11,178,815,938
<br />11,681,862,655
<br />PropTax
<br />$ 16,251,567
<br />$ 17,124,167
<br />$ 17,100,000
<br />17,682,000
<br />$ 18,124,000
<br />$ 11,457,720
<br />$ 11,801,452
<br />$ 12,155,495
<br />$ 12,520,160
<br />LevyRate
<br />he six-year plan
<br />2,06
<br />4
<br />91
<br />1.89
<br />1.85
<br />1.12
<br />1.10
<br />1.09
<br />1.07
<br />Difference
<br />872,60
<br />(24,167)
<br />582,000
<br />442,000
<br />(6,666,280)
<br />343,732
<br />354,043
<br />364,665
<br />• The adopted six-year plan anticipates the following changes in property taxes with annexation for a single-family
<br />homeowner with a current assessed value of $604,000 and square footage of 2,980 sq ft' (in 2023 dollars):
<br />1 Fire Benefit Charge (FBC) is based on square footage to ensure larger buildings that require more resources to combat fires pay a
<br />larger share than smaller ones requiring less resources. Larger buildings pay more FBC than smaller ones; actual FBC cost are
<br />calculated directly a property's square footage.
<br />2 Includes voter -approved Public Safety bond, approximately $309 for this specific single-family house.
<br />City
<br />Property
<br />Tax2
<br />RFA Property
<br />Tax
<br />RFA Fire Benefit
<br />Charge
<br />RFA Total Taxpayer
<br />Experience
<br />Total
<br />Pre -Annexation
<br />$1,481
<br />$1,481
<br />Post Annexation
<br />$1,010
<br />$519
<br />$337
<br />$856
<br />$1,866
<br />Annual Difference in 2023 dollars
<br />$ 385
<br />1 Fire Benefit Charge (FBC) is based on square footage to ensure larger buildings that require more resources to combat fires pay a
<br />larger share than smaller ones requiring less resources. Larger buildings pay more FBC than smaller ones; actual FBC cost are
<br />calculated directly a property's square footage.
<br />2 Includes voter -approved Public Safety bond, approximately $309 for this specific single-family house.
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