HomeMy WebLinkAboutSpecial 2010-11-22 Item 4B.1 - Ordinance - 2011 General Taxes Levy COUNCIL G1 NDA SEVOPSIS
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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
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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
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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, 2011, 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 2011. 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 $4,839,308,773, current taxes
for the ensuing year commencing January 2011, in the amount and at the rates specified below
Rate Amount
Regular Tax Levy $2.78 $13,500,000
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, 2011.
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, 2011.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Special Meeting thereof this day of 2010.
ATTEST/ AUTHENTICATED•
Jim Haggerton, Mayor
Melissa Hart, Acting 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
W.\ Wont Processing Ordinances \General Tax Levy 2011.doc
SH:,nrl, 11/17/2010 Page 1 of 1
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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.
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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