HomeMy WebLinkAboutCOW 2006-11-13 Item 4D.1 - Ordinance - 2007 Property Tax Levy COUNCIL AGENDA SYNOPSIS
of
Initials ITEM NO.
Q I P1I% 1 I Meeting Date Prepared by 1 Mayor's review 1 uncil review
j z 11/13/06 1 KAF I
I 1 I
ITEM INFORMATION
CAS NUMBER: I ORIGINAL AGENDA DATE: NOVEMBER 13, 2006
AGENDA ITEM TITLE 2007 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 Mtg Date Mtg Date Mtg Date 11/13/06 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P &R Police PW
SPONSOR'S Pursuant to State statute, both proposed ordinances are required in order to receive
SUMMARY property tax revenues in 2007. The deadline for submitting 2007 property tax levies to
King County is December 1, 2006.
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DA'rE: 11/06/06
RECOMMENDATIONS:
SPONSOR /ADMIN. Adopt the two proposed property tax ordinances as presented
COMMII Unanimous approval; forward to COW Meeting on 11/13/06
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source: N/A
Comments: N/A
MTG. DATE RECORD OF COUNCIL ACTION
11/06/06 Finance Safety Committee review and discussion
MTG. DATE ATTACHMENTS
11/13/06 Memorandum to Council from K. Fuhrer dated November 7, 2006
Larry Phillips correspondence dated October 13, 2006
Preliminary Levy Limit Worksheet 2007 Tax Roll
Proposed Ordinance Establishing the 2007 Regular Property Tax Levy
Proposed Ordinance Increasing the 2007 Regular Property Tax Levy 1.0 Percent
Draft Minutes Finance Safety Committee Meeting November 6, 2006
To: Council of the Whole
From: Kevin A. Fuhrer, Finance Director 14
Date: November 7, 2006
Subject: 2007 Proposed Property Tax Levy
In preparation for our discussion at the November 13, 2006 COW meeting, I
have attached a number of documents for your review related to establishing
the 2007 property tax levy.
Specifically, you will find correspondence from Larry Phillips, Chair of the
Metropolitan King County Council; a 2007 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 2007 property tax levy.
As noted in Councilmember Phillips' correspondence, the deadline for
submitting our levy request to King County is December 1, 2006. 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.
I look forward to seeing each of you at 7 p.m. on Monday, November 13.
Attachment: Excel Spreadsheet 2007 Proposed Levy
2006 Actual Property Tax Levy 10,922,464
1% Limitation (1 -747) 1.01
Allowable Levy Prior to New
Construction and Increase in Utility
Values 11,031,689
New Construction Estimated
Increase in Utility Value 45,462,418
2006 Regular Levy Rate 3.03706
New Construction Utility Levy 138,072
Total Estimated Allowable Levy 11,169,761
Total Estimated Levy Rate 2.85684
Recommended Levy Amount 11,200,000
Corresponding Levy Rate 2.86458
LARRY PHILLIPS
Chair
Metropolitan King County Council
October 13, 2006
RE: Submission of District Property Tax Levies for 2007 to the County Council
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 2007 PROPERTY TAX LEVIES IS
DECEMBER 1, 2006
In order for your district to receive property taxes in an amount greater than that
received in 2006, if permitted by law, we must receive your resolution by December
1, 2006. 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 December 1, 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, 2006 for inclusion in the certification
ordinance.
516 Third Ave, Room 1200, Seattle, WA 98104 -3272
206 296 -1004 TTY/TDD 206 296 -1024 Fax 206 296 -0370
larry.phillips @metrokc.gov
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 Newton
Metropolitan King County Council Accounting Division
516 Third Avenue Room W -1039 King County Department of
Seattle, WA 98104 Assessments
Fax: 206 205 -8165 500 Fourth Ave. Room 709
Telephone: 206 -296 -1020 Seattle, WA 98104
Fax: 206 296 -0106
Telephone: 206 296 -5145
The King County Council may pass an amendatory certification ordinance in
January 2007 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.
Sin•-rej
i f
PhiIli.` hair
f etropolita King County Council
c: Scott Noble, Assessor
Kevin Fuhrer TUKWILA.doc 1
1
PRELIMINARY LEVY LIMIT WORKSHEET
2007 Tax Roll
TAXING DISTRICT: City of Tukwila
The following determination of your regular levy limit for 2007 property taxes is provided by the King County
Assessor pursuant to RCW 84.55.100.
I Annexed to Library District (Note 1) Estimated Library rate: 0.43108
Using Limit Factor Using Implicit
For District Calculation of Limit Factor Levy Price Deflator
10,922,464 Levy basis for calculation: (2006 Limit Factor) (Note 2) 10,922,464
1.0100 x Limit Factor 1.0342
11,031,689 Levy 11,296,012
25,462,418 Local new construction 25,462,418
0 Increase in utility value (Note 3) 0
25,462,418 Total new construction 25,462,418
3.03706 x Last year's regular levy rate 3.03706
77,331 New construction levy 77,331
11,109,020 Total Limit Factor Levy 11,373,343
i
Annexation Levy
1 0 Omitted assessment levy (Note 4) 0
11,109,020 Total Limit Factor Levy new lid lifts omits 11,373,343
3,909,827,327 Regular levy assessed value less annexations 3,909,827,327
2.84131 Annexation rate (cannot exceed statutory maximum rate) 2.90891
0 x Annexation assessed value 0
0 Annexation Levy 0
Lid lifts, Refunds and Total
0 First year lid lifts 0
11,109,020 Limit Factor Levy 11,373,343
11,109,020 Total RCW 84.55 levy 11,373,343
43,102 Relevy for prior year refunds (Note 5) 43,102
11,152,122 Total RCW 84.55 levy refunds 11,416,445
1 11,152,122 ALLOWABLE LEVY (Note 6) 11,416,445 1
Increase Information (Note 7)
2.85233 Levy rate based on allowable levy 2.91994
10,965,396 Last year's ACTUAL regular levy 10,965,396
66,293 Dollar increase over last year other than N/C Annex 330,616
0.60% Percent increase over last year other than N/C Annex 3.02%
Calculation of statutory levy
Regular levy assessed value (Note 8) 3,909,827,327
x Maximum statutory rate 3.16892
Maximum statutory levy 12,389,930
Omitted assessments levy 0
Maximum statutory levy omits 12,389,930
Limit factor needed for statutory levy Not usable
ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE.
10/18/06 11:19 AM
LevyLimitWS.doc
Kevin Fuhrer TUKWILA.doc 3
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 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 between the date of this worksheet and final levy rate determination.
10/18/06 11:19 AM
LevyLimitWS.doc
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, 2007, 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 2007 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 $3,909,827,327, current taxes
for the ensuing year commencing January 2007, in the amount and at the rates specified below:
Rate .Amount
Regular Tax Levy $2.86 $11,200,000
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, 2007.
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, 2007.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of 2006.
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 Attorney Ordinance Number:
C:\Documents and Settings\All Users Desktop \Kelly\MSDATA \Ordinances\DRAFf 2007 General Tax Levy.doc
KF:ksn 11/7/2006 Page 1 of 1