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HomeMy WebLinkAboutCOW 2009-12-14 Item 5A - Ordinance - 2010 General Taxes Levy COUNCIL A GENDA SYNOPSIS J`�W iLA k'q Initials ITEM No, D 0 I Meetsnn Date Prepared by Mayor' review Council revues 0 L 1 12/14/09 I SH I I Chi% I x9oa I I I I Spg G I I I I I a. ITEM INFORMATION CAS NUMBER: 09-178 'ORIGINAL AGENDA DATE: DECEMBER 14, 2009 AG' NDA ITEM TITLE An ordinance repealing Ordinance No. 2262 and revising the property tax levy rate and amount for 2010. CATEGORY Discussion Motion Resolution Ordinance BtdAward Public Hearing Other Mtg Date 12/14/09 Mtg Date Mtg Date Mtg Date 12/14/09 Mtg Date Mtg Date 12/14/09 Mtg Date SPONSOR Council Mayor Adm Svcs DCD Fire P &R Police PW SPONSOR'S The ordinance repeals Ordinance No. 2262, passed by the City Council on November 23, SUMMARY 2009, and changes the levy rate and amount to be collected for 2010. New information received from the King County Assessor's Office on December 4, 2009 significantly increased the value of new construction for levy calculation purposes for 2010. The Council is being asked to pass the Ordinance at this meeting, as it is required by the County by December 15. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DA "l E: RF,coMMENT)ATIONS: SPONSOR /ADMIN. Finance Department CoMMrrrEE Committee Chair consent to take this item directly to Council Meeting COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 12/14/09 MTG. DATE ATTACHMENTS 12/14/09 Informational Memorandum dated 12/09/09 Ordinance 2010 Levy Worksheet Original 2010 Levy Worksheet Revised I Email from Hazel Gantz, King County Assessor's Office Levy Administration I I q 4 City of Tukwila INFORMATIONAL MEMORANDUM TO: Mayor Haggerton City Council FROM: Shawn Hunstock, Finance Director DATE: December 9, 2009 SUBJECT: 2010 Property Tax Levy ISSUE BACKGROUND DISCUSSION Jim Haggerton, Mayor The City was notified just last Friday afternoon that the value of new construction to be included in our levy calculation for 2010 recently increased by approximately $317 million. This increase allows the City to increase the 2010 levy rate, but the original levy ordinance, Ordinance No. 2262, must be repealed and replaced before December 15 Ordinance No. 2262 was passed by the City Council on November 23, 2009. At that time, the value of new construction included in our levy calculation, per the King County Assessor's Office, was $24,856,302. This resulted in a levy rate of $2.52 and total collections of approximately $12,500,000 for 2010. Last Friday I was notified by the Assessor's Office that the final levy calculation for Tukwila now includes new construction of $341,888,573. This represents an increase of $317,032,271 over the original amount. The increased value for new construction means the City can levy up to $13,236,301 for 2010. This represents an increase of $736,301 from the amount originally passed under Ordinance No. 2262. The resulting levy rate would be $2.67, which is an increase of $0.15 from the $2.52 passed by City Council on November 23 City Council has the option of not increasing the levy rate beyond what was already passed on November 23 The City could take advantage of the difference of $736,301 in subsequent years if assessed values do not go down overall. The new levy rate of $2.67 would be an increase of $0.29676, or 12.5 from the 2009 levy rate of $2.37324. For an average home of $250,000 in value, the City portion of property taxes would be $667.50, an increase of $74.19 over 2009. 5 INFORMATIONAL MEMO Page 2 RECOMMENDATION The Council is being asked to approve the Ordinance repealing Ordinance No. 2262, and implementing a revised levy rate and amount for 2010. This item is scheduled to be discussed at the December 14, 2009 Committee of the Whole meeting and the Special Meeting that same evening. ATTACHMENT Ordinance 2010 Levy Worksheet Original 2010 Levy Worksheet Revised Email from Hazel Gantz, King County Assessor's Office, Levy Administration 6 1 \tukstore\ Shawn -H$\I nfoMemo_2010LevyRepeal.docx A• City of Tukwila Washington Ordinance No. 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, 2010, 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; REPEALING ORDINANCE NO. 2262: PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on November 23. 2009, the City Council of the City of Tukwila Passed Ordinance No. 2262. levying the general taxes for the City for the fiscal year commencing Tanuary 1, 2010; and WHEREAS, on December 4.2009, the City was contacted by King County and provided with new data relative to assessed valuation; and WHEREAS, the City Council of the City of Tukwila has considered the City's anticipated financial requirements for 2010 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, HEREBY ORDAINS 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 $4,965,087,948, $4,973,984,133, current taxes for the ensuing year commencing January 2010, in the amount and at the rates specified below: Regular Tax Levy Rate Amount $22 00 $2.67 $13,236.301 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, 2010. 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. Repealer. Ordinance No. 2262 is hereby repealed. Section 4. 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 5. 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, 2010. W \Word Processing\ Ordinances General Tax Levy 2009_STRIKETHRU.doc SH:ksn 12/08/2009 Page 1 of 2 7 8 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 W \Word Processing\ Ordinances General Tax Levy 2009.doc SH:ksn 12/08/2009 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 PRELIMINARY LEVY LIMIT WORKSHEET 2010 Tax Roll TAXING DISTRICT: City of Tukwila The following determination of your regular levy limit for 2010 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District Using Limit Factor For District 12,271,731 1.0100 12,394,448 j 24,856,302 0 24, 856,302 2.37324 58,990 12,453,438 0 12,453,438 4,964,257,830 2 50862 0 0 0 12,453,438 12,453,438 24,819 12,478,257 12,478,257 2.51362 12,283,197 111,251 0.91% 12/09/09 9:32 AM LevyLimitWS.doc (Note 1) Estimated Library rate: 0.41972 Calculation of Limit Factor Levy Levy basis for calculation: (2009 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 IN WHICH THE TAX IS PAYABLE. Please read carefully the notes on the reverse side. O c Using Implicit Price Deflator 12,271,731 0.9915 12,167,421 24,856,302 0 24,856,302 2.37324 58,990 12,226,411 0 12,226,411 4,964,257,830 2 46289 0 0 0 12,226,411 12,226,411 24,819 12,251,230 12,251,230 I 2.46789 12,283,197 115,776 -0.94% 4,964,257,830 3.18028 15,787,730 0 15,787,730 Not usable 9 1 0 LEVY LIMIT WORKSHEET 2010 Tax Roll TAXING DISTRICT: City of Tukwila The following determination of your regular levy limit for 2010 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District Using Limit Factor For District 12,271,731 1.0100 12,394,448 341,888,573 2,380,741 344,269,314 2.37324 817,034 13,211,482 0 13,211,482 4,973,984,133 2 65612 12/09/09 9:33 AM LevyLimitWS.doc 0 0 0 13,211,482 13,211,482 24,819 13,236,301 13,236,301 2.66111 12,283,197 111,251 0.91% (Note 1) Estimated Library rate: 0.42185 Calculation of Limit Factor Levy Levy basis for calculation: (2009 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 IN WHICH THE TAX IS PAYABLE. Please read carefully the notes on the reverse side. Using Implicit Price Deflator 12,271,731 0.9915 12,167,421 341, 888, 573 2,380,741 344, 269, 314 2.37324 817,034 12,984,455 0 12,984,455 4,973,984,133 2.61047 0 0 0 12,984,455 12,984,455 24,819 13, 009, 274 13,009,274 2.61546 12,283,197 115,776 -0.94% 4,973,984,133 3.17815 15,808,068 0 15,808,068 Not usable Shawn Hunstock RE: Final Levy Limit Worksheets From: To: Date: Subject: Attachments: This is it! What a difference in new construction! Hazel J. Gantz Business and Finance Officer II Lery A dministration (206) 296-5145 From: Shawn Hunstock [ma ilto:shunstock@ci.t ukwila.wa.us] Sent: Friday, December 04, 2009 5:53 AM To: Gantz, Hazel Subject: Re: Final Levy Limit Worksheets Hi Hazel Did this come out yesterday and I just missed it? Shawn Shawn Hunstock, CPA Interim City Administrator, and Finance Director City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 -2544 Phone: 206-433-1838 Cell: 206 571 -5110 Fax: 206-433-1833 shunstockaci.tukwila.wa.us Gantz, Hazel" "Shawn Hunstock" 12/04/2009 1:16 PM RE: Final Levy Limit Worksheets Gantz, Hazel" <Hazel.Gantz @kingcounty.gov> 12/02/2009 5:37 P M Page 1 of 2 file: /C: \Documents and Settings \Shawn- H.TUKWILA \Local Settings \Temp \XPgrpwise 12/09/2009 11 Page 2 of 2 We have received the state utility value, however, there was a glitch in our mainframe reports that are used to calculate the levy limit worksheets This glitch has prevented me from producing the worksheets and I will not have a clean report until Friday morning, so I will be in on Friday to complete the worksheets and send them to you. I have no control over the deadline for property tax requests, therefore please send in your preliminary estimate by Friday if you have not already clone so. Please be assured that I will contact districts with any and all questions regarding your preliminary requests versus the allowable levy that will be displayed on the final worksheets. I am terribly sorry for this inconvenience. Thanks for your patience and understanding. Hazel J. Gantt Business and Finance Ojflcer 11 Levy Administration (206) 296 -5145 file: /C: \Documents and Settings \Shawn- H.TUKWILA \Local Settings \Temp \XPgrpwise 12/09/2009