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Home My WebLink AboutCOW 2010-11-22 Item 4B.2 - Resolution - Finding of Substantial Need for 2011 Property Tax Levy COUNCIL G1 NDA SEVOPSIS J �1'IILq''�'Y Initials ITEM 1V0. ti V 1 [VleettnR Date Prepared by 1 May r zezv Council review I V 8 4 ,7 y 1 11/22/10 1 SH 1 1 0).4 I r 80 4 4 I 1 c.4.. 5 90. 1 1 I I, 6- :ITEM INFORMATION q CAS NUMBER: 10-133 I ORIGINAL AGENDA DATE: NOVEMBER 22, 2010 Ac I?ND 1 I'T'EM TI'I'1.J; An Ordinance establishing levy rate for 2010, ordinance establishing the dollar increase from 2010, and resolution determining a finding of substantial need. C \'I'1. ;GORY Discussion Motion Resolution Ordinance 1 1 Bid Award Public Hearing 1 1 Other Mfg Date Mtg Date Mtg Date 11/22/10 Mtg Date 11/22/10 Mtg Date Mtg Date 11/22/10 Mtg Date SPONSOR 1 1 Council Mayor Adm Svcs DCD Finance 1 Fire Legal n P&&R Police 1 1 PTV SPONSOR'S The City Council is being asked to approve an ordinance establishing the levy rate for 2011, SUMMARY and ordinance increasing the levy dollar amount from 2010, and a resolution determining a finding of substantial need in order to levy an additional 1% beyond 2010 collections. These items are scheduled for Council consideration at the 11/22/10 C.O.W. and 11/22/10 Special Council meeting. The tax levy increase requires a public hearing which is Item 3B on the agenda, RI• I1?W1M BY COW Mtg. CA &P Cmte F &S Cmte 1 Transportation Cmte Utilities Cmte 1 1 Arts Comm. Parks Comm. Planning Comm. DATE. 11/16/2010 RECOMMENDATIONS: SPONSOR /ADMIN. Finance COMMFI'EE Unanimous approval Forward to COW COST IMPACT FUN SOURCE EXPENDITURE REQUIRED QUIRBD AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments MTG. DATE I RECORD OF COUNCIL ACTION 11/22/10 MTG. DATE 'ATTACHMENT'S 11/22/10 Informational Memorandum dated 11/18/10 (revised after FS meeting) Draft Ordinances (2) Draft Resolution Minutes from the Finance and Safety Committee meeting of 11/16/10 49 50 I City of Tukwila Jim Haggerton, Mayor lr' 1 290 y INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: November 18, 2010 (Updated with new King County Assessors' information 11/16/10) SUBJECT: 2011 Property Tax Levy Ordinances and Resolution ISSUE Council must adopt the property tax levy ordinance by November 30 Council must adopt an ordinance setting the levy rate, and an ordinance setting the levy amount. If Council wishes to levy an addition 1% above the 2010 level, a resolution declaring a finding of substantial need must also be passed by Council. BACKGROUND The City was notified on October 26, 2010 that the assessed value for Tukwila for 2011 is projected to be $4,839,308,773. This represents a decrease of $143,143,578, or 2.9 from the 2010 assessed value. DISCUSSION The City's current levy rate for 2010 is $2.66 per $1,000 of assessed value. In order for the City to levy the maximum of 101% of 2010 revenue, a levy rate of $2.78 would be needed for 2011. The change in levy of $0.12 represents a 4.5% increase. Assuming a home of average value of $300,000, and no change in assessed value, the increase in levy rate would cost approximately $36 per year for a Tukwila resident. There is a possibility that the King County Assessor's Office could provide late adjustments to assessed value after Council adopts the accompanying ordinances and resolution. This did occur last year for the 2010 property tax levy. Should this happen again this year, a revised ordinance would be presented to Council on December 6 RECOMMENDATION The Finance and Safety Committee is being asked to approve the 2011 property tax levy ordinances and resolution finding of substantial need. This item is scheduled for the November 16 Finance and Safety Committee meeting, and the Committee of the Whole and Special Council Meetings on November 22 ATTACHMENTS Draft Ordinances Draft Resolution 51 52 /�J�vJILA, w-9S °l 190$ km) Q C i ty .Y. Y y Washington Resolution No. 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, 2011, 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 22, 2010, pursuant to RCW 84.55.120; and WHEREAS, the City Council finds that there is a substantial need, due to declining sales tax revenue and general maintenance and operation expenses, to increase the budget by 1% and to set the levy limit at 101 pursuant to RCW 84.55.010; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. An increase of 1% 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 2011 levy This increase is exclusive of additional revenue resulting from new construction, improvements to property, and 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 2010 ATTEST/ AUTHENTICATED• Dennis Robertson, Council President Melissa Hart, Acting City Clerk APPROVED AS TO FORM BY Filed with the City Clerk: Passed by the City Council. Office of the City Attorney Resolution Number W Word Processing \Resolutions \2011 Property Tax Levy Substantial Need.doc S1 -I:mrh 11/17/2010 Page 1 of 1 57 58 City of Tukwila .v Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes November 16, 2010 5:00 p.m.; Conference Room #3 PRESENT Councilmembers: De'Sean Quinn, Chair; Allan Ekberg and Dennis Robertson (filling in for Kathy Hougardy) Staff: Shawn Hunstock, Peggy McCarthy, Steve Lancaster and Kimberly Matej Guest: Chuck Parrish CALL TO ORDER: Chair Quinn called the meeting to order at 5:07 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. 2011 -12 Leaal Services Contract: Kenyon Disend. PLLC Staff is seeking Council approval to enter into contract with Kenyon Dispend, LLC for legal services to be provided during the 2011 -12 biennium. With the exception of the changes listed below, the essential components of the legal services contract remain the same as in past years. Contract has been reduced by $50,000 per year for basic services No longer guarantees the use of pagers for communication Hourly rate schedule increase per employee of 4 -6% (does not affect overall contract amount) 9 New category added in Exhibit B: Compensation and Method of Payment, Section 2, Item D significant projects which require specialized knowledge A project example of the Last bulleted item above is the legal work that was completed on the Shoreline Master Program (SMP). Work related to the SMP was billed as a separate matter; however, Kenyon Disend requested clarification for such projects in the new contract. In regards to Exhibit A: Scope of Services, Item 4, Special Services, Acting Committee Member Robertson requested a copy of all special matters and issues that were attended to by Kenyon Disend as outlined in their invoices submitted to the City during 2009 and 2010. Committee Chair Quinn requested that this same information come forward to Finance Safety so that Committee Members could identify and anticipate future liability. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. B. Legislation: 2011 Pronertv Tax Levy Staff is seeking Council approval of an ordinance increasing the City's Regular Property Tax Levy from the previous year; an ordinance Ievying the General Taxes and a resolution declaring a finding of substantial need relating to the Property Tax Levy. Shawn Hunstock reported that today the King County Assessor released an update for Tukwila's assessed values which reports an increase in both assessed valuation (now $4,839,390,773) and annexation value from values originally published. This means that the levy rate needed for 2011 has decreased slightly from what is reported in the memo to Committee. The new rate is $2.78 which reflects a 4.51% increase from last year. 59 Finance Safety Committee Minutes November 16. 2010 Paae 2 Today's assessed value represents a decrease of 2.9% compared to last year, and staff is recommending levying a full 1% increase to property taxes due to a negative Implicit Price Deflator. In order to levy the full 1 Council will need to pass a resolution declaring a finding of substantial need relating to the property tax levy. A public hearing is scheduled for November 22, 2010. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR PUBLIC HEARING AND DISCUSSION. C. Leeislation Reeardine Budget CIP Staff is seeking Council approval of an ordinance amending the 2010 Budget; an ordinance adopting the 2011 -12 Biennial Budget; and a resolution adopting the 2011 -16 Capital Improvement. Each item is discussed in more detail below. Ordinance Amending the 2010 Budget As required by the Revised Code of Washington, staff is seeking Council approval of an ordinance amending the 2010 Budget. The amendment includes many items that have been discussed and addressed throughout the year. Both the property taxes and business license revenue line items are over budget by slightly more than $400,000 total. This coverage will help fund additional expenses outlined in the budget amendment. The items, explained in detail in the Informational Memo included in the November 22 Finance Safety Committee agenda packet, include: Project deficits in Finance, Legal, Community Development, Court, Fire, and Parks Maintenance Bond Revenue for Southcenter Parkway and Emergency Response Equipment Debt Service on tax exempt bonds issued UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. Ordinance Adopting the 2011 -12 Biennial Budget Staff is seeking Council approval of an ordinance adopting the 2011 -12 Biennial Budget. Shawn Hunstock reported that the City will be adopting two single year budgets rather than one 24 -month budget. This makes the process of adjustments, amendments and forecast much more efficient. As the City Council has been conducting ongoing review of the 2011 -12 Biennial Budget 2011 -16 CIP, there was minimal discussion on the draft ordinance which adopts the budget. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. A Resolution Adopting the 2011 -2016 CIP Staff is seeking full Council approval of a resolution adopting the 2011 -2016 CIP. As the City Council has been conducting ongoing review of the 2011 -12 Biennial Budget 2011 -2016 CIP, there was minimal discussion on the draft resolution which adopts the 2011 -2016 CIP. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. D. City Investments As per City policy, staff provided the quarterly update to the Committee regarding City investment reports. Report details begin on page 37 of the Committee agenda packet and demonstrate what the City currently has in its portfolio. Peggy McCarthy also briefed the Committee on an investment policy for the City which was Last seen by the Committee on June 22, 2010. At that meeting, staff reported that the City's revised investment policy was submitted to the Washington Municipal Treasurers Association (WMTA) for certification and they were awaiting return of the policy prior to coming forward to Committee for approval. Staff has not yet heard from WMTA and is requesting Committee approve the policy in the meantime in order to begin policy implementation. The draft policy remains the same as it was in June with the exception of Section 11.1: Maturities, which 60 will now call for a minimum of 30% of the of the City's portfolio to be comprised of investments