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Home My WebLink AboutFS 2012-11-06 Item 2B - Ordinances - 2013 Property Tax LevyCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: 11/01/12 SUBJECT: 2013 Property Tax Levy ISSUE Approval of ordinances adopting general property tax levy and regular tax levy for 2013 by November 30, 2012. BACKGROUND A Public Hearing for adoption of the 2013 property tax levy is required by RCW 84.55.120. The Hearing is scheduled for November 13, 2012. The City was notified on October 23, 2012 that the assessed value for Tukwila for 2013 is projected to be $4,603,990,258. The allowable levy projected by King County and documented on the Preliminary Levy Limit Worksheet -2013 Tax Roll is $13,839,489, representing the maximum 1% increase allowed by law. DISCUSSION The assessed value and the allowable levy are subject to change until final levy rate determination. A levy amount of $13,900,000 will be used for the ordinance. If the final allowable levy is less than the ordinance amount, King County Department of Assessments will adjust the ordinance amount to the final allowable levy amount and no further action the Council will be required. If the final allowable levy is more than the ordinance amount, a revised ordinance will be presented to Council at the Regular Meeting on December 3, 2012 for approval. RECOMMENDATION The Council is being asked to approve the ordinance adopting the General Tax Levy and the ordinance adopting the Regular Tax Levy at the November 13, 2012 Committee of the Whole meeting and subsequent November 19, 2012 Regular Meeting. A public hearing has also been scheduled at the November 13, 2012 Committee of the Whole. ATTACHMENTS Draft Ordinances Preliminary Levy Limit Worksheet -2013 Tax Roll 11 12 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, 2013, 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 2013 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 $4,603,990,258, current taxes for the ensuing year commencing January 2013, in the amount and at the rates specified below: Amount Regular Tax Levy $13,900,000 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, 2013. W: Word Processing \Ordinances \General Tax Levy 10 -26 -12 VC: bjs Page 1 of 2 13 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. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. 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, 2013. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney W: Word Processing \Ordinances \General Tax Levy 10 -26 -12 VC:bjs Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 W 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, 2013, 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 a public hearing held on November 13, 2012, pursuant to RCW 84.55.120; and WHEREAS, after hearing and duly considering all relevant evidence and testimony presented, the City Council has determined that in order to discharge its expected expenses and obligations the City requires an increase in property tax revenue from the previous year, in addition to the increase resulting from the addition of new construction and improvements to property and any increase in the value of State assessed property; and WHEREAS, the City Council has determined it is in the City's best interest and necessary to meet its expenses and obligations for the property tax revenue to be increased for 2013, and 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. 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 2013 levy in the amount of $16,271, which is a percentage increase of 1.0% from the previous year. 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. W: Word Processing \Ordinances \Regular Tax Levy Increase 10 -26 -12 vc:bjs Page 1 of 2 15 Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. 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, 2013. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTH ENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Regular Tax Levy Increase 10 -26 -12 VC: bjs Page 2 of 2 IL LEVY LIMIT WORKSHEET 2013 Tax Roll TAXING DISTRICT: City of Tukwila The following determination of your regular levy limit for 2013 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District (Note 1) Estimated Library rate: 0.50000 Using Limit Factor Using Implicit For District Calculation of Limit Factor Levy Price Deflator 13,647,706 Levy basis for calculation: (2012 Limit Factor) (Note 2) 13,647,706 1.0100 x Limit Factor 1.0295 13,784,183 Levy 14,050,313 10,077,387 Local new construction 10,077,387 0 Increase in utility value (Note 3) 0 10,077,387 Total new construction 10,077,387 2.95408 x Last year's regular levy rate 2.95408 29,769 New construction levy 29,769 13,813,952 Total Limit Factor Levy 14,080,082 Annexation Levy 0 Omitted assessment levy (Note 4) 0 13,813,952 Total Limit Factor Levy new lid lifts 14,080,082 4,603,990,258 Regular levy assessed value less annexations 4,603,990,258 3.00043 Annexation rate (cannot exceed statutory maximum rate) 3.05823 0 x Annexation assessed value 0 0 Annexation Levy 0 Calculation of statutory levy Lid lifts, Refunds and Total Regular levy assessed value (Note 8) 0 First year lid lifts 0 13,813,952 Limit Factor Levy 14,080,082 13,813,952 Total RCW 84.55 levy 14,080,082 25,537 Relevy for prior year refunds (Note 5) 25,537 13,839,489 Total RCW 84.55 levy refunds 14,105,619 Levy Correction: Year of Error +or- 13,839,489 ALLOWABLE LEVY Note 6 14,105,619 Increase Information (Note 7) 3.00598 Levy rate based on allowable levy 3.06378 13,767,912 Last year's ACTUAL regular levy 13,767,912 16,271 Dollar increase over last year other than N/C Annex 282,401 0.12% Percent increase over last year other than N/C Annex 2.05% Calculation of statutory levy Regular levy assessed value (Note 8) 4,603,990,258 x Maximum statutory rate 3.10000 Maximum statutory levy 14,272,370 +Omitted assessments levy 0 Maximum statutory levy 14,272,370 Limit factor needed for statutory levy NOT USABLE ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE. Please read carefully the notes on the reverse side. 10/23/12 4:33 PM LevyLimitW S.doc 17