HomeMy WebLinkAboutSpecial 2009-11-23 Item 3A.2 - Resolution - Finding of Substantial Need for 2010 Property Tax LevyCAS NUMBER:
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TO.DA
11/23/09
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Mtg Date 11/23/09 Mtg Date
EXPENDITURE REQUIRED
Meeting Date
11/23/09
COUNCIL AGENDA SYNOPSIS
Prepared by Mayor's review 1 Counczl
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RECORD OF COUNCIL ACTION
MTG. DATE= ATTACHMENTS
11/23/09 Informational Memorandum dated 11/12/09
Ordinance Levying General Taxes for 2010
Resolution Finding of Substantial Need
Ordinance Increasing the Tax Levy by 1%
Historical Levy Rates spreadsheet
Minutes of the 11/17/09 Finance and Safety Committee Meeting
ITEM INFORMATION
1 ORIGINAL AGENDA DA 1E..: NOVEMBER 23, 2009
ITEM No.
Coves
3.4 9-- 4.
AGENDA ITEM TITLE An ordinance setting the 2010 property tax levy amount, an ordinance setting the
2010 levy rate, and a resolution of finding of substantial need.
2,ATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 11/23/09 Mtg Date 11/23/09 Mtg Date Mtg Date 11/23/09 Mtg Date
;PONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P &R Police PW/
;PONSOR'S This agenda item includes an ordinance setting the amount of the 2010 property tax levy
iUMMARY change, an ordinance setting the 2010 property tax levy rate, and a resolution of finding of
substantial need as it relates to an increase in property taxes of 1 over the 2009
property tax levy.
The Council is being asked to approve the ordinances related to the 2010 property tax
levy. and adopt the resolution of findina of substantial need.
ZEVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: 11/17/09
1ECOMMENDATIONS:
SPONSOR /ADMIN. Finance Department
COMMITTEE Unanimous approval; Forward to Committee of the Whole
COST IMPACT/ FUND_ SOURCE
AMOUNT BUDGETED
APPROPRIATION REQUIRED
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TO:
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Rhonda Berry
Finance and Safety Committee
FROM: Shawn Hunstock, Finance Director
DATE: November 12, 2009
SUBJECT: 2010 Property Tax Levy
ISSUE
Jim Haggerton, Mayor
The Council must consider and pass a property tax levy for 2010 by November 30,
2009.
BACKGROUND
A Public Hearing for adoption of the 2010 property tax levy is required by RCW
84.55.120. The Hearing is scheduled for November 23, 2009. Adoption of the 2010
property tax levy is currently scheduled for the same evening at a Special Meeting of
the City Council.
DISCUSSION
The increase in levy rate for 2010 is limited by statute to the lesser of one percent or the
change in the Implicit Price Deflator (IPD). Because the IPD for property tax purposes is
0.85 the lesser of these two factors is a negative number. City Council may, upon a
finding of substantial need, levy the full one percent increase in accordance with RCW
84.55.0101. This will insure no decrease in the levy for 2010 due to the negative IPD.
Assessed value overall declined from $5,175,709,975 for the 2009 levy to
$4,964,257,830 for the 2010 levy. This decline of $211,452,145 represents a 4.26%
decrease in the 2010 assessed value.
The proposed levy rate for 2010 is $2.52 per $1,000 of assessed value. This is an
increase of $0.14676 per $1,000 of assessed value, or 6.18 For an average home of
$250,000 in value, the City portion of property taxes would be $630, an increase of
$36.69 over 2009. The City's portion of the overall total levy rate in 2009 was 21.98
If Council were to not pass the resolution of finding of substantial need, the levy limit
factor would be -0.85% of the 2009 levy rate. This would result in a levy rate of $2.47
per $1,000 of assessed value. The resulting decline in property tax revenue for the City
for 2010 would be approximately $250,000.
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INFORMATIONAL MEMO
Page 2
RECOMMENDATION
Council is being asked to approve the ordinance adopting the General Tax Levy, the
ordinance adopting the Regular Levy, and the resolution establishing a finding of
substantial need.
This item is scheduled to be discussed at the November 23, 2009 Committee of the
Whole meeting. A Public Hearing will also be held that evening, as well as a Special
Meeting for adoption of the 2010 levy.
ATTACHMENT
Regular Levy Ordinance in draft form
General Tax Levy Ordinance in draft form
Substantial Need Resolution in draft form
Historical Levy Rates spreadsheet
C:Itemp\XPg rpwiselI nfoMemo2010PropertyTaxLevy. doc
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DECLARING A FINDING OF SUBSTANTIAL NEED
RELATING TO THE CITY OF TUKWILA PROPERTY TAX LEVY,
COMMENCING JANUARY 1, 2010, ON ALL PROPERTY, BOTH REAL AND
PERSONAL, IN COMPLIANCE WITH RCW 84.55.120.
WHEREAS, the City of Tukwila has properly given notice of a public hearing held on
November 23, 2009, pursuant to RCW 84.55.120; and
WHEREAS, due to declining sales tax revenue and general maintenance and operation
expenses, the City Council finds there is a substantial need to increase the budget by 1.0% and
to set the levy limit at 101%, pursuant to RCW 84.55.0101;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. An increase of 1.0% 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 2010 levy. 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.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Special Meeting thereof this day of 2009.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY.
Office of the City Attorney
City of Tukwila
Washington
Resolution No.
W \Word Processing \Resolutions \Property Tax Levy Substantial Need.doc
SH:ksn 11/18/2009
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number
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