HomeMy WebLinkAboutCOW 2008-11-10 Item 5C.1 - Ordinance - 2009 General Taxes LevyCAS NUMBER 08-138
ORIGINAL AGENDA DATE: NOVEMBER 10, 2008
AGENDA ITEM TITLE 2009 Property Tax Ordinances
1) Setting the Regular Levy 2) Increasing the Regular Levy by 1.0 percent.
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 11/10/08 Mtg Date Mtg Date Mtg Date 12/1/08 Mtg Date Mtg Date 11/17/08 Mtg Date
1 SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&R Police (l PIV
SPONSOR'S Pursuant to State statute both proposed ordinances are required in order to receive
SUNMARY property tax revenues in 2009. The deadline for submitting 2009 property tax levies to
King County is November 30, 2008
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte n Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm
10/28/08
RECOMMENDATIONS:
SPONSOR /ADMIN. Adopt the two proposed property tax ordinances as presented
COMI41YIEE Unanimous Approval; Forward to Committee of the Whole
Fund Source:
Comments:
MTG. DATE
1 11/10/08
I MTG. DAT
11/10/08
EXPENDITURE REQUIRED
$N /A
Initials
Meeting Date Prepared by Mayor's review I _council review
11/10/08 SH
11/17/08 SH JsJ
ATTACHMENTS
Informational Memorandum dated 10/28/08
Preliminary Levy Limit Worksheet 2009 Tax Roll, and staff notes
Excel Spreadsheet Calculating the 2009 Proposed Property Tax Levy
Proposed ordinances in draft form
Minutes from the Finance Safety Committee meeting of 11/04/08
COUNCIL AGENDA SYNOPSIS
COST'
F_ UND.=SOURCE
AMOUNT BUDGETED
$N /A
TMRE CORD=QF COUNCIL ACTION
ITEM No.
5, c .(0
c_69)
APPROPRIATION REQUIRED
$N /A
Gity of Tukwila
6200 Southcenter Boulevard Tukwila, Washington 98188 Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
To: Mayor Haggerton
Finance Safety Committee
From: Shawn Hunstock, Finance Director
Date: October 28, 2008
Subject: 2009 Proposed Property Tax Levy
In preparation for our discussion at the November 4, 2008 Finance Safety
Committee meeting, I have attached a number of documents for your review
related to establishing the 2009 property tax levy.
Specifically, you will find a 2009 Preliminary Levy Limit Worksheet
prepared by the King County Assessor's Office; an Excel spreadsheet that I
prepared to develop an estimated levy value, and finally (2) draft ordinances
establishing the 2009 property tax levy. Cities are required to submit their
levy requests to the Metropolitan King County Council by November 28,
2008.
As has been the case in past years, the County will not have final property
valuations prior to the cutoff date. Given the preliminary nature of the
valuations and consideration of the 1 levy base growth constraint, I have
set the recommended levy amount slightly higher than the value I calculated
for the estimated allowable levy. In the final analysis the County is required
to adjust downward to the maximum allowable amount, while conversely it
may not make an upward adjustment.
I look forward to seeing each of you on November 4`
Phone: 206- 433 -1800 a City Hall Fax: 206- 433 -1833 www.ci.tukwila.wa.us
PRELIMINARY
LEVY LIMIT WORKSHEET 2009 Tax Roll
TAXING DISTRICT: City of Tukwila
The following determination of your regular levy limit for 2009 property taxes is provided by the King County
Assessor pursuant to RCW84.55.100.
Annexed to Library District
Using Limit Factor
For District
11,395,893
1.0100
11,509,852
267,710,920
0
267,710,920
2.56911
687,779
12,197,631
0
12,197,631
5,123,164,972
2.38088
0
0
0
12,197,631
1 2,197,631
11,466
12,209,097
12,209,097
2.38312
11,400,000
109,852
0.96%
10/28/08 4:39 PM
LevyLimitWS.doc
(Note 1) Estimated Library rate. 0.36029
Calculation of Limit Factor Levy
Levy basis for calculation: (2008 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
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
Lid lifts, Refunds and Total
First year lid lifts
Limit Factor Levy
Total RCW 84.55 levy
Relevy for prior year refunds (Note 5)
Total RCW 84.55 levy refunds
Levy Correction: Year of Error +or
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
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
ALL YEARS SHOWN ON THIS FORM ARE THE YEARS Itii T WHICH THE TAX IS PAYABLE.
Please read carefully the notes on the reverse side.
Using Implicit
Price Deflator
11,395,893
1.0453
1 1,911,785
267,710,920
0
267,710,920
2.56911
687,779
12,599,564
0
12,599,564
5,123,164,972
2 45933
0
0
0
12,599,564
12,599,564
11,466
12,611,030
12,611,030 I
2.46157
11,400,000
51 1,785
4.49%
5,123,164,972
3.23971
16,597,569
0
16,597,569
Not usable
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
from the fire 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 levy
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 limit. 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 factor, the statutory rate limit is
controlling.
3) Any increase in value in state- assessed property is considered to be new construction value
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 are
assessed and taxed at the rate in effect for the year omitted (RCW 84.40.080 -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 1981
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 infoiixiation 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 companson is made.
8) Assessed valuations shown are subject to change from error corrections and appeal board
decisions recorded between the date of this worksheet and final levy rate determination.
10/28/08 4.39 PM
LevyLimitWS.doc
City of Tukwila
Levy Calculation 2008 Tax Year
2008 Actual Property Tax Levy 11,400,000
1% Limitation (1 -747) 1.01
Allowable Levy Prior to New
Construction and Increase in Utility
Values
11,514,000
New Construction Estimated
Increase in Utility Value 288,998,190
2008 Regular Levy Rate 2.38088
New Construction Utility Levy 688,070
Total Estimated Allowable Levy 12,202,070
Total Estimated Levy Rate 2.38174
Recommended Levy Amount
Corresponding Levy Rate
12,250,000
2.39110
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY.
Office of the City Attorney
DRAFT
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, 2009, 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 2009 and the amounts necessary and available to be raised by ad
valorem taxes on real, personal and utility property; and
WHEREAS, the final assessed valuation calculation has been determined;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DO ORDAIN 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 $5,123,164,972,
current taxes for the ensuing year commencing January 2009, in the amount and at the rates
specified below:
Rate Amount
Regular Tax Levy $2.39 $12,250,000
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, 2009.
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. 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, 2009.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of 2008.
ATTEST /AUTHENTICATED:
Jim Haggerton, Mayor
Filed with the City Clerk
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
C:\Docoments and Settings\All Users Deskt op \Kelly\MSDATA\O:dinances \Gensal Tax Levy 2009.da_
SH:ksn 100012008
Page 1 of 1