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HomeMy WebLinkAboutCOW 2007-10-22 Item 4F - Ordinance - Increase Property Tax Levy by 1% for 2008 ru CO UNCIL A GENDA SYNOPSIS h %s y Inrtta/s ITEM NO. :of Z 6 cAi li 0 Meeting Date I Prepared by Mayor's review Council review 1 10/22/07 1 1 KAF 1v I 4,,,y-f 1 el 11/19/07 1 KAF 1 1 1 1 s, ITEM INFORMATION CAS NUMBER: 07-027 'ORIGINAL AGENDA DATE: OCTOBER 22, 2007 AGENDA ITEM TITLE 2008 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 Heanng Other- Mtg Date 10/22/07 Mtg Date Mtg Date Mtg Date 11/19/07 iiftg Date Mtg Date Mtg Date SPONSOR Council Mayor Adrn Svcs DCD Finance Fire Legal Pd:R Police PW SPONSOR'S Pursuant to State statute, both proposed ordinances are required in order to receive SUMMARY property tax revenues in 2008. The deadline for submitting 2008 property tax levies to King County is November 30, 2007. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 10/15/07 RECOMMENDATIONS: SPONSOR /ADMIN Adopt the two proposed property tax ordinances as presented COMMITTEE Unanimous approval; forward to Committee of the Whole COST IMPACT L FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: N/A Comments: N/A MTG. DATE RECORD= OF COUNCIL ACTION 10/22/07 MTG. DATE ATTACHMENTS 10/22/07 Informational Memorandum dated 10/16/07 Larry Gossett correspondence dated 10/12/07 Preliminary Levy Limit Worksheet 2008 Tax Roll Excel Spreadsheet Calculating the 2008 Proposed Property Tax Levy Proposed Ordinance Establishing the 2008 Regular Property Tax Levy Proposed Ordinance Increasing the 2008 Regular Property Tax Levy 1.0 Percent Minutes from the Finance Safety Committee Meeting of 10/15/07 Memorandum To: City Council From: Kevin A. Fuhrer, Finance Director 1& Date: October 16, 2007 Subject: 2008 Proposed Property Tax Levy In preparation for our discussion at the October 22, 2007 Committee of the Whole meeting, I have attached a number of documents for your review related to establishing the 2008 property tax levy. Specifically, you will find correspondence from Larry Gossett, Chair of the Metropolitan King County Council; a 2008 Preliminary Levy Limit Worksheet prepared by the King County Assessor's Office; an Excel spreadsheet that I prepared to develop a recommended levy value; and finally (2) draft ordinances establishing the 2008 property tax levy. As has been the case in past years, the County will not have final property valuations prior to the November 30, 2007 levy submission 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. In closing, a public hearing on this topic is required by statute and will be scheduled for the November 19, 2007 Council meeting. King County Larry Gossett Councilmember, District 2 Metropolitan King County Council October 12, 2007 RE: Submission of District Property Tax Levies for 2008 to the County Council To the Board of Commissioners: The County Council is required by RCW 84.52.070 to certify annually the amount of property taxes levied in King County. In order to make this certification, we must know the amount of taxes to be levied for each taxing district. THE DEADLINE FOR SUBMITTING 2008 PROPERTY TAX LEVIES IS NOVEMBER 30, 2007 In order for your district to receive property taxes in an amount greater than that received in 2007, if permitted by law, we must receive your resolution by November 30, 2007. This applies to basic levies provided for by State law as well as any excess levies approved by a vote of the people. Please remember that the Assessor is required to review levy requests to ensure that they do not exceed the allowable levy. If you cannot finalize your levy request by November 30, please submit an estimate. If your estimate is higher than the allowable levy, the Assessor will reduce the amount requested for your jurisdiction to an amount no greater than the allowable levy. However, if your estimate is less than the allowable levy, the amount requested can only be increased from the amount certified in your ordinance or resolution to the level of the allowable levy with formal written notification from your Board of Commissioners. This written notification must be filed with the Assessor and the Clerk of the Council by December 5, 2007 for inclusion in the certification ordinance. Forms are enclosed for you to use in submitting your levy request. Please submit copies of the form and any resolution or ordinance that may be required by RCW 84.55.120 to both the King County Council and the King County Assessor's Office at the following addresses: Clerk's Office Hazel Gantz Metropolitan King County Council Accounting Division 516 Third Avenue Room W -1039 King County Department of Assessments Seattle, WA 98104 500 Fourth Ave. Room 709 Fax: 206 205 -8165 Seattle, WA 98104 Telephone: 206- 296 -1020 Fax: 206 -296 -0106 Telephone: 206 296 -5145 King County Courthouse, 516 Third Avenue Room 1200, Seattle, WA 98104 206 -296 -1002 Fax 206 -296 -0198 larry.gossett @kingcounty.gov www.kingcounty.gov /gossett The King County Council may pass an amendatory certification ordinance in January 2008 in order to allow for technical adjustments in the final levy amounts. However, discretionary increases in your levy may not be made in this amendatory certification ordinance. If you have any questions, please call the Assessor's Office at 296 -5145 or 296 -5146. Thank you for your cooperation. Sincerely, Larry ossett, Chair Metropolitan King County Council cc: Scott Noble, Assessor PRELIMINARY LEVY LIMIT WORKSHEET 2008 Tax Roll TAXING DISTRICT: City of Tukwila The following detertnination of your regular levy limit for 2008 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District (Note 1) Estimated Library rate: 0.39217 Using Limit Factor Using Implicit For District Calculation of Limit Factor Levy Price Deflator 11,122,660 Levy basis for calculation' (2207 Limit Factor) (Note 2) 11,122,660 1.0100 x Limit Factor 1.0208 11,233,887 Levy 11,354,456 32,693,514 Local new construction 32,693,514 0 Increase in utility value (Note 3) 0 32,693,514 Total new construction 32,693,514 2.84033 x Last year's regular levy rate 2.84033 92,860 New construction levy 92,860 11,326,747 Total Limit Factor Levy 11,447,316 Annexation Levy 0 Omitted assessment levy (Note 4) 0 11,326,747 Total Limit Factor Levy new lid lifts 11,447,316 4,385,613,904 Regular levy assessed value less annexations 4,385,613,904 2.58270 Annexation rate (cannot exceed statutory maximum rate) 2.61020 0 x Annexation assessed value 0 0 Annexation Levy 0 Lid lifts, Refunds and Total 0 First year lid lifts 0 11,326,747 Limit Factor Levy 11,447,316 11,326,747 Total RCW 84 55 levy 11,447,316 25,045 Relevy for prior year refunds (Note 5) 25,045 11,351,792 Total RCW 84.55 levy refunds 1 1,472,361 Levy Correction: Year of Error +or 11,351,792 ALLOWABLE LEVY (Note 6) 11,472,361 I Increase Information (Note 7) 2.58842 Levy rate based on allowable levy 2.61591 11,165,762 Last year's ACTUAL regular levy 11,165,762 68,125 Dollar increase over last year other than N/C Annex 188,694 0.61% Percent increase over last year other than N/C Annex 1.69% Calculation of statutory levy Regular levy assessed value (Note 8) 4,385,613,904 x Maximum statutory rate 3 20783 Maximum statutory levy 14,068,304 +Omitted assessments levy 0 Maximum statutory levy 14,068,304 Limit factor needed for statutory levy Not usable ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE. Please read carefully the notes on the reverse side. 10/08/07 3:35 PM LevyLimitWS.doc 2007 Actual Property Tax Levy 11,165,762 1% Limitation (1 -747) 1.01 Allowable Levy Prior to New Construction and Increase in Utility Values 11,277,420 New Construction Estimated Increase in Utility Value 42,693,514 2007 Regular Levy Rate 2.84033 New Construction Utility Levy 121,264 Total Estimated Allowable Levy 11,398,683 Total Estimated Levy Rate 2.59911 Recommended Levy Amount 11,400,000 Corresponding Levy Rate 2.59941 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, 2008, 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 htFrlCTIVE DATE. WHEREAS, the City Council of the City of Tukwila has considered the City's anticipated financial requirements for 2008 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 $4,385,613,904, current taxes for the ensuing year commencing January 2008, in the amount and at the rates specified below: Rate Amount Regular Tax Levy $2.60 $11,400,000 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, 2008. 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 faxes 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, 2008. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2007 ATTEST /AUTHENTICA I Ell: Steven M. Mullet, Mayor Jane E. Cantu, CMC, City Clerk Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: Effective Date: Office of the City Attorney Ordinance Number: Macintosh HD: Users: stacia :DesktopislaliPn:Gs1eral Tax Levy 2003.dx KF:ksn 10'17207 Page 1 of 1 DRAFT 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, 2008, 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 19, 2007, pursuant to RCW 84.55.120; and WHEREAS, the City, after hearing and duly considering all relevant evidence and testimony presented, has determined that 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, in order to discharge the expected expenses and obligations of the City; and WHEREAS, the City has determined that it is in its best interest and necessary to meet its expenses and obligations for the property tax revenue to be increased for 2008, and 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. 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 2008 levy in the amount of $111,658, which is a percentage increase of 1.0% from the previous year. Section 2. 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 3. 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, 2008. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2007. ATTEST /AUTHENTICATED: Steven M. Mullet, Mayor Jane E. Cantu, CMC, City Clerk Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: Effective Date: Office of the City Attomey Ordinance Number: Macintosh HD:Users:stacia:Desktop:legislation:Regular Tax Levy 2008.doc KF:ksn 10/17/2007 Page 1 of 1 ,Ail.A i o f 1 o: Ctv of Tukw la Wes ,.I Finance Safety Committee 1soa FINANCE AND SAFETY COMMITTEE Meeting Minutes October 15, 2007- 5:00 p.m. PRESENT Councilmembers: Jim Haggerton, Chair; Joan Hernandez and Dennis Robertson Staff: Kevin Fuhrer, Christy O'Flaherty, Rhonda Berry, Derek Speck, Trish Kinlow, Viki Jessop, Mary Miotke, Shelley Kerslake and Melissa Hart Guests: Chuck Parrish, Jim Fiegal and Danijel Katicin CALL TO ORDER: Committee Chair Haggerton called the meeting to order at 5:09 p.m. L PRESENTATIONS No presentations. II. BUSINESS AGENDA A. South King County Seattle Municipal Courts Language Assistance Plan Staff reported of the $2 million dollar grant the state has set -aside for this program and that Tukwila has spearheaded the grant application. Councilmember Hernandez complimented Trish Kinlow on the efforts of this grant application and the very enlightening information that was provided in the agenda packet. There was also discussion about the new electronic forms and how that would impact our costs, as well as a possible need for special equipment. Ms. Kinlow stated she is working with the City of Kent Municipal Court Administrator on a simple form that would be on a laptop located in the court for patrons to use. The Committee complimented Ms. Kinlow on the very informative nature of the presentation and wished her luck in the grant process. INFORMATION ONLY. B. Interlocal Agreement for Jail Study Rhonda Berry provided a brief background on this subject to the guests, and the new information that the City of Auburn is considering joining the Interlocal agreement with Des Moines, Federal Way, Renton and Tukwila. The Committee asked if that would lower Tukwila's funding amount for the study, Ms. Berry stated she needed more time to discuss the study with the City of Auburn, and they did not want to hold up the signing of the agreement. Once a decision has been made, an amendment should be provided to the agreement adding the City of Auburn to Section 3 and Tukwila's share of the total cost of the feasibility study should be less. Due to the length of the October 22 Council meeting it was requested this item be added to an agenda in the near future to accommodate the November 26 deadline. UNA NT MOUS APPROVAL. FORWARD TO FUTURE COW. C. 2008 Property Tax Lew Ordinance Kevin Fuhrer provided background information and the calculations used to determine the 2008 property tax levy. The proposed levy amount is $11,400,000 and results in an anticipated levy rate of $2.60 per $1,000 of valuation. Furthermore he reported that King County requires that the City submit its levy request no later than November 30, 2007. A public hearing will be scheduled for November 19, 2007. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 22 COW.