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Home My WebLink AboutFS 2014-11-04 Item 2D - Ordinances - 2015 Property Tax LevyT{]: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL U��U��U� nn�u��u�um�n nv�*n�� xmx��mmov��n��n��n�u Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: October 29, 2014 SUBJECT: 2015 Property Tax Levy ISSUE Approval of ordinances increasing the regular levy from the previous year and adopting the general property tax levy for 2015 by December 5, 2014. BACKGROUND A Public Hearing for adoption of the 2015 property tax levy is required by RCW 84.55.120. The Hearing is scheduled for November 10, 2014. The Ci notified on October 7, 2014 that the assessed value for Tukwila for 2015 is p j8Ched to be $5,017.108.101. The allowable levy projected by King County and documented on the Preliminary Levy Limit Worksheet-2015 Tax Roll is $14,293,219 representing the maximum 1% increase allowed by law. DISCUSSION Levy Amount The assessed value and the allowable levy are subject to change until final levy rate determination. A levy amount of $14,600,000 will be used for the ordinance. If the final allowable levy is less than the ordinance amount, King County Department of Assessments will adjust the ordinance amount to the final allowable levy amount and no further action by the Council will be required. If the final allowable levy is more than the ordinance amount, a revised ordinance will be presented to Council at the Regular Meeting on December 1, 2014 for approval. Levy Limit RCW 27.12.390 allows for a maximum statutory levy rate for cities at $3.60 less the actual regular levy made by a library district. RCW 41.10.060 also allows for an increase in levy capacity of $0.225 if a city has a firemen's pension fund. Prior to 2014, even though the City has had a firemen's pension fund for many years, this additional levy limit has not been reflected in the City's Levy Limit Worksheet. The County is now aware that the City does have a firemen's pension fund and will adjust the City's maximum statutory levy rate to 03.37758 (City levy rate $3.80 less library district levy $0.44742 plus firemen's pension fund $0.225). The current levy rate gives the City additional capacity for future growth or levy lid lifts. The Levy Limit Worksheet received from King County estimates the City's preliminary levy rate for 2015 at $2.84890. 20 INFORMATIONAL MEMO Page 2 RECOMMENDATION The Council is being asked to approve the ordinance adopting the General Tax Levy and the ordinance adopting the Regular Tax Levy at the November 10, 2014 Committee of the Whole meeting and subsequent November 17, 2014 Regular Meeting. ATTACHMENTS Draft Ordinances Preliminary Levy Limit Worksheet-2015 Tax Roll CAUsers\melissa-MAppDatalocal\Microsoft\Windows\Temporary Internet Files\Content.Outlook\117SNOS9\2015 Info Memo Property Taxes.docx RFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, LEVYING THE GENERAL TAXES FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2015, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY, WHICH IS SUBJECT TO TAXATION FOR THE PURPOSE OF PAYING SUFFICIENT REVENUE TO CARRY ON THE SERVICES OF THE SEVERAL DEPARTMENTS OF SAID CITY FOR THE ENSUING YEAR, AS REQUIRED BY LAW; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Tukwila has considered the City's anticipated financial requirements for 2015 and the amounts necessary and available to be raised by ad valorem taxes on real, personal and utility property; and WHEREAS, the final assessment valuation calculation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regular Tax Levy. A. There shall be and hereby is levied on all real, personal and utility property in the City of Tukwila, in King County, whose estimated assessed valuation is $5,017,106,101, current taxes for the ensuing year commencing January 2015, in the amount (including $47,874 in refunds) and at the rates specified below: Amount Regular Tax Levy $14,600,000 B. The said taxes herein provided for are levied for the purpose of payment upon the general bonded indebtedness of the City of Tukwila, the General Fund, and for the maintenance of the departments of the municipal government of the City of Tukwila for the fiscal year beginning January 1, 2015. W. Word Processing \Ordinances \General Tax Levy 10 -23 -14 doc VC:bjs Page 1 of 2 21 Section 2. Collection. This ordinance shall be certified to the proper County officials, as provided by law, and taxes here levied shall be collected to pay to the Finance Director of the City of Tukwila at the time and in the manner provided by the laws of the State of Washington for the collection of taxes for non - chartered code cities. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect January 1, 2015. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2014. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel Turpin, City Attorney W. Word Processing \Ordinances \General Tax Levy 10 -23 -14 doc VC.bjs 22 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 R FT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, INCREASING THE CITY OF TUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR, COMMENCING JANUARY 1, 2015, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH RCW 84.55.120; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has properly given notice of a public hearing held on November 10, 2014, pursuant to RCW 84.55.120; and WHEREAS, after hearing and duly considering all relevant evidence and testimony presented, the City Council has determined that in order to discharge its expected expenses and obligations the City requires an increase in property tax revenue from the previous year, in addition to the increase resulting from the addition of new construction and improvements to property and any increase in the value of State - assessed property; and WHEREAS, the City Council has determined it is in the City's best interest and necessary to meet its expenses and obligations for the property tax revenue to be increased for 2015, and the final assessed valuation calculation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. An increase in the regular property tax levy, in addition to any amount resulting from the addition of new construction and improvements to property and any increase in the value of State - assessed property, is hereby authorized for the 2015 levy in the amount of $101,311, which is a percentage increase of 1.0% from the previous year. This increase is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State - assessed property, any annexations that have occurred and refunds made. W. Word Processing \Ordinances \Regular Tax Levy Increase 10 -23 -14 VC:bjs Page 1 of 2 23 Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect January 1, 2015. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2014. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel Turpin, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W- Word Processing \Ordinances \Regular Tax Levy Increase 10 -23 -14 VC:bjs 24 Page 2 of 2 ��N N��N�� m m"��~a�mm�omm"�m^�� m LEVY LIMIT WORKSHEET — 2015 Tax Roll TAXING DISTRICT: City of Tukwila The following determination of your regular levy limit fin- 2015 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District Using Limit Factor For District 14,060,574 1.0100 14,201,180 14,830,323 0 14,830,323 2 97799 44,165 14,245,345 (Note |) Estimated Library rate: 0.44742 Calculation of Limit Factor Levy Levy basis for calculation: (2014 Limit Factor) (Note 2) x Limit Factor = Levy Local new construction + Increase in utility value (Note 3) = Total new construction x Last year's regular levy rate New construction levy Total Limit Factor Levy Using Implicit Price Deflator 14,060,574 1.0159 14,284,278 14,830,323 0 14,830,323 2 97799 44,165 14,328,443 O 14,245,345 5.017.100.101 2.83935 0 � Annexation Levy Omitted assessment levy (Note 4) Total Limit Factor Levy + new lid lifts � Regular levy assessed value less annexations = Annexation rate (cannot exceed statutory maximum rate) x Annexation assessed value = Annexation Levy 8 14,328,443 5.017.106.101 2 85592 0 U 0 14,245,345 14,245,345 47,874 14,293,219 Lid lifts, Refunds and Total + First year lid lifts + Limit Factor Levy = Total ROW 84.55 levy + Relevy for prior year refunds (Note 5) = Total ROW 84.55 levy + refunds Levy Oorrection: Year of Error (+or-) 0 14,328,443 14,328,443 47,874 14,376,317 14,293,219 2 84890 14,099,869 101,311 0 72% ALLOWABLE LEVY (Note 6) Increase Information (Note 7) Levy rate based on allowable levy Last year's ACTUAL regular levy Dollar increase over last year other than N/C – Annex Percent increase over last year other than N/C – Annex 14,376,317 2.86546 14,099,869 184,409 1.31% Calculation of statutory levy Regular levy assessed value (Note 8) x Maximum statutory rate = Maximum statutory levy +Omitted assessments levy =Maximum statutory levy Limit factor needed for statutory levy 5.017.100.101 3 15258 15,816,828 0 15,816,828 Not usable ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE. I'/ease read carefulLy the notes on the reverse side. 10/29/14 l2:07 PM LevyLimitWS.doc Notes: 1) Rates for fire districts and the library district are estimated at the time this worksheet is produced. Fire district and library district rates affect the maximum allowable rate for cities annexed to them. These rates will change, mainly in response to the actual levy requests fr/rnthclirc and library districts. Hence, affected cities may have a higher or lower allowable levy rate than is shown here when final levy rates are calculated. 2) This figure shows the maximum allowable levy, which may differ from any actual prior ]cYy if a district has levied less than its maximum in prior years. The maximum allowable levy excludes any allowable refund levy if the maximum was based on a limit factor. The maximum allowable levy excludes omitted assessments if the maximum was determined by your district's statutory rate liruiL If your district passed a limit factor ordinance in the year indicated, that limit factor would help determine the highest allowable levy. However, if the statutory rate limit was more restrictive than your stated limit fa iOr, the statutory rate limit is controlling. 3) Any increase in value in state-assessed property is considered to be new construction vo}uc for purposes of calculating the respective limits. State-assessed property is property belonging to inter-county utility and transportation companies (telephone, railroad, airline companies and the like). 4) An omitted assessment is property value that should have been included on a prior year's roll but will be included on the tax roll for which this worksheet has been prepared. Omits arc assessed and taxed at the rate in effect for the year omitted (RCW 04.40.080-085). Omitted assessments tax is deducted from the levy maximum before calculating the levy rate for current assessments and added back in as a current year's receivable. 5) Administrative refunds under RCW 84.69.020 were removed from the levy lid by the 1481 legislature. 6) A district is entitled to the lesser of the maximum levies determined by application of the limit under RCW 84.55 and the statutory rate limit. Levies may be subject to further proration if aggregate rate limits set in Article VII of the state constitution and in RCW 84.52.043 are exceeded. 7) This section is provided for your information, and to assist in preparing any Increase Ordinance that may be required by RCW 84.55.120. The increase information compares the allowable levy for the next tax year with your ACTUAL levy being collected this year. The actual levy excludes any refund levy and expired temporary lid lifts, if applicable. New construction, annexation and refund levies, as well as temporary lid lifts in their initial year, are subtracted from this year's allowable levy before the comparison is made. 8) Assessed valuations shown are subject to change from error corrections and appeal board decisions recorded be/n'een1he date of this worksheet and final levy rate determination. 1029Y14 12:07 PM LcvyLimitVVS.doc 26