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HomeMy WebLinkAboutCOW 2005-11-28 Item 4H.2 - Ordinance - Increase Property Tax Levy by 1% for 2006 LA COUNCIL AGENDA SYNOPSIS Initials ITEM No. 9 j ti 1, G) Meeting Date I Prepared by Mayors review Council review 1 11/28/05 RAB for KF A Lk- 7908 ITEM INFORMATION CAS NUMBER: 05-157 (ORIGINAL AGENDA DATE: 11-28-05 AGENDA ITEM TITLE 2006 Property Tax Ordinances: 1) Setting the Regular Levy 2) Increasing the Regular Levy by 1.0 percent CATEGORY Discussion Motion Resolution Ordinance Bzd Award Public Hearing Other Mtg Date 11-28-05 Mtg Date Mtg Date Mtg Date 11-28-05 Mtg Date Mtg Date Aftg Date SPONSOR Council Mayor Adrn Svcs DCD Finance Fire Legal P&R Police PTV SPONSOR'S Pursuant to State statute, both proposed ordinances are required in order to receive SUMMARY revenues in 2006. These must be adopted and submitted to King County no later than December 2, 2005. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11 -21 -05 F S Cmte.; 11 -28 -05 COW SPE Mtgs. RECOMMENDATIONS: SPONSOR /ADMIN. Review and adopt two proposed ordinances (COW SPE Mtgs.) 11/28 COM MITIEE Same as sponsor. COST IMPACT I -FUND SOURCE= EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments MTG.__DATE I RECORD OF_COUNCIL ACTION 11-28-05 MTG. DATE I ATTACHMENTS 11 -28 -05 Memo to Council from K. Fuhrer dated November 15, 2005 t Memo from Larry Phillips dated October 14, 2005 1 Preliminary Levy Limit Worksheet 2006 Tax Roll Ordinance Final Format establishing regular tax levy rate for 2006 Ordinance Final Format increasing tax levy rate commencing January 1, 2006 Draft minutes Finance Safety Committee meeting November 21, 2005 To: Council Finance & Safety Committee Kevin A. Fuhrer, Finance Director ~ From: Date: November 15,2005 Subject: 2006 Proposed Property Tax Levy In preparation for our discuss,ion at the November 21, 2005 committee meeting, I have attached a number of documents for your review related to establishing the 2006 property tax levy. Specifically, you will find correspondence from Larry Phillips, Chair of the Metropolitan King County Council; a 2006 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 2006 property tax levy. As noted in Councilmember Phillip's correspondence, the deadline for submitting our levy request to King County is December 2,2005. As has been the case in past years, the County will not have-final propeliy 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. We can discuss my rationalejn greater detail at the meeting. I look forward to seeing each of you at 5 p.m. on Monday, November 21. LARRY PHILLIPS Chair Metropolitan King County Council October 14, 2005 RE: Submission of District Property Tax Levies for- 2006 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 2006 PROPERTY TAX LEVIES IS DECEMBER 2, 2005 In order for your district to receive property taxes in an amount greater than that received in 2005, if permitted by law, we must receive your resolution by December 2, 2005. 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 2, 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 6, 2005 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: ,B, 516 Third Ave, Room 1200, Seattle, WA 98104-3272 206-296-1004 TTYITDD 206-296-1024 Fax 206-296-0370 r::>rrv nhillin<::/IT)mptrnk" nn\f Clerk's Office Metropolitan King County Council 516 Third Avenue Room W-103~ Seattle, WA 98104 Fax: 206-205-81 65 Telephone: 206-296-1020 Hazel Newton Accounting Division King County Department of Assessments 500 Fourth Ave. Room 709 Seattle, W A 98104 Fax: 206-296-0106 Telephone: 206-296-5145 The King County Council may pass an amendatory certification ordinance in January 2006 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. c: Scott Noble, Assessor FR. ..la--L~. ~.""'~.I:'}.I';~. ~. .~."? '", ;:m.1 ., 'V.,j 01\,,<' ,.... "" ~;f .,,,,,.= "'"' ' '~~ . 1,; "" .a;t..;;,;. '.\:i. .' LE\f1f Lmr~9T \f.,gORKSH5[ST - 2006 T~1.t R@~u TAXING DISTRICT: City of Tukwila Thefollowing determination of your regular levy limitfor 2006 property taxes is provided by tile King COllnty Assessor pursuant to RCW 84.55.100. Annexed to Library District Using Limit Factor For District 10,725,881 1.0100 10,833,140 28,648,923 o 28,648,923 311712 89,302 10,922,442 (Note 1) Estimated Library rate: 0 45891 Calculation of Limit Factor Levy Levy basis for calculation. (2005 Statutory) (Note 2) x Limit Factor = Levy l:ocal 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 10,725,881 1.0254 10,998,318 28,648,923 o 28,648,923 3 11712 89,302 11,087,620 o 10,922,442 3,627,170,637 301128 o o Annexation Levy Omitted assessment levy (Note 4) Total Limit Factor Levy + new lid lifts - omits + Regular levy assessed value less annexations = Annexation rate (cannot exceed statutory maximum rate) x Annexation assessed value = Annexation Levy o 11,087,620 3,627,170,637 3 05682 o o o 10,922,442 10,922,442 42,932 10,965,374 10,965,374 __ 3 02312--,_ - 10,725,881 - '----=-107259 " , 100% 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 8455 levy + refunds 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 o 11,087,620 11,087,620 42,932 11,130,552 11,130,5521 3 06866 10,725,881 272,437 2.54% Calculation of statutory levy Regular levy assessed value (Note 8) x Maximum statutory rate = Maximum statutory levy + Omitted assessments levy = Maximum statutory levy + omits Limit factor needed for statutory levy 3,627,170,637 3 14109 11,393,269 o 11,393,269 Not usable ALL YEARS SHOWN ON THIS FORlYf ARE THE YEARS IN WHICH THE TAX lS PAYABLE. Please read carefully the notes on the reverse side. lll02/05 8.34 AM LevyLimitWS.doc '- 2005 Actual Property Tax Levy $ 10,725,881 1 % Limitation (1-747) 1 01 Allowable Levy Prior to New Construction and Increase in Utility Values $ 10,833,140 New Construction & Estimated . Increase in Utility Value $ 43,648,923 2005 Regular Levy Rate $ 3.11712 New Construction & Utility Levy $ 136,059 Total Estimated Allowable Levy $ 10,969,199 Total Estimated Levy Rate $ 3.02417 Recommended Levy Amount $ 11,000,000 Corresponding Levy Rate $ 3.03267 City of Tukwila Washington Ordinance No. 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, 2006, 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 the public hearings held on November 21, 2005, to consider the City's current revenues and expenses budget for the 2006 calendar year, pursuant to RCW 84.55.120; and WHEREAS, the City, after hearing and du1y 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 resu1ting 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 2006, and the final assessed valuation calcu1ation has been determined, NOW, THEREFORE, THE CITY COUNCIL OF 'THE CITY OF TUKWlLA, 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 2006 levy in the amount of $107,259, which is a percentage increase of 1.0 percent 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, 2006. PASSED BY THE CITY COUNCIL OF TIIE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this day of , 2005 AITFST / AUTHENTICATED' Steven M. Mu1let, Mayor Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY. Filed with the City Clerk: Passed by the City Council. Published. Effective Date: Ordinance Number Office of the City Attorney C:\Documents and SettingslAll Users\DesktoplKelly\.'vISDA TAIOrdinancesIRegular Tax teyydoc KF:ksn 11/2212005 Page I of 1