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Home My WebLink AboutFS 2009-11-17 Item 2D - Ordinances/Resolution - 2010 Property Tax LevyTO: ISSUE BACKGROUND DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: November 12, 2009 SUBJECT: 2010 Property Tax Levy Jim Haggerton, Mayor The Council must consider and pass a property tax levy for 2010 by November 30, 2009. A Public Hearing for adoption of the 2010 property tax levy is required by RCW 84.55.120. The Hearing is scheduled for November 23, 2009. Adoption of the 2010 property tax levy is currently scheduled for the same evening at a Special Meeting of the City Council. The increase in levy rate for 2010 is limited by statute to the lesser of one percent or the change in the Implicit Price Deflator (IPD). Because the IPD for property tax purposes is 0.85 the lesser of these two factors is a negative number. City Council may, upon a finding of substantial need, levy the full one percent increase in accordance with RCW 84.55.0101. This will insure no decrease in the levy for 2010 due to the negative IPD. Assessed value overall declined from $5,175,709,975 for the 2009 levy to $4,964,257,830 for the 2010 levy. This decline of $211,452,145 represents a 4.26% decrease in the 2010 assessed value. The proposed levy rate for 2010 is $2.52 per $1,000 of assessed value. This is an increase of $0.14676 per $1,000 of assessed value, or 6.18 For an average home of $250,000 in value, the City portion of property taxes would be $630, an increase of $36.69 over 2009. The City's portion of the overall total levy rate in 2009 was 21.98 If Council were to not pass the resolution of finding of substantial need, the levy limit factor would be -0.85% of the 2009 levy rate. This would result in a levy rate of $2.47 per $1,000 of assessed value. The resulting decline in property tax revenue for the City for 2010 would be approximately $250,000. INFORMATIONAL MEMO Page 2 RECOMMENDATION Council is being asked to approve the ordinance adopting the General Tax Levy, the ordinance adopting the Regular Levy, and the resolution establishing a finding of substantial need. This item is scheduled to be discussed at the November 23, 2009 Committee of the Whole meeting. A Public Hearing will also be held that evening, as well as a Special Meeting for adoption of the 2010 levy. ATTACHMENT Regular Levy Ordinance in draft form General Tax Levy Ordinance in draft form Substantial Need Resolution in draft form Historical Levy Rates spreadsheet C:Itemp\XPgrpwisell nfoMemo2010PropertyTaxLevy.doc 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, 2010, 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 23, 2009, pursuant to RCW 84.55.120; and WHEREAS, after hearing and duly considering all relevant evidence and testimony presented, the City Council has determined 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 2010, 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 2010 levy in the amount of $111,251, 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. 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, 2010 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular 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\ Regular Tax Levy.doc SH:ksn 11/12/2009 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council. Published. Effective Date: Ordinance Number Page I of 1 Regular Tax Levy W.\ Word Processing \Ordinances \General Tax Levy.doc SH:ksn 11/12/2009 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; 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 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, current taxes for the ensuing year commencing January 2010, in the amount and at the rates specified below: Rate $2.52 Amount $12,500,000 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, 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. 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, 2010. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2009 ATTEST/ AUTHENTICATED Jim Haggerton, Mayor Christy O'Flaherty, CMC, 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. Page 1 of 1 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, 2010, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH RCW 8455.120. WHEREAS, the City of Tukwila has properly given notice of a public hearing held on November 23, 2009, pursuant to RCW 84.55 120; and WHEREAS, due to declining sales tax revenue and general maintenance and operation expenses, the City Council finds there is a substantial need to increase the budget by 1.0% and to set the levy limit at 101%, pursuant to RCW 84.55.0101; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. An increase of 1.0% 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 2010 levy 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. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular 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 Resolutions \Property Tax Levy Substantial Need.doc SH:ksn 11/12/2009 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council. Published. Effective Date: Ordinance Number Page 1 of 1 CITY OF TUKWIL/ City Emergency Levy General Medical Tukwila School Hospital Year Levy Change WA State King Counts Port of Seattle Service Dist 9406 Flood Control District 81 TOTAL 2000 3 10000 3.30278 1.68951 0.21585 0 27299 5.91717 0.05209 0 11830 14.66869 2001 3 11256 0.4052% 3.14502 2.10955 0.19029 0.24624 5 54167 0 04957 0.09873 14.49363 2002 2.94537 -5 3715% 2.98946 1.97530 0.18956 0.25000 5.11395 0.04665 0 09643 13 60672 2003 2 91064 -1 1791% 2.89680 1.34948 0.25895 0.24143 4 85812 0 04688 0.09254 12.65484 2004 3 10754 6 7648% 2.75678 1.96799 0.25402 0.23717 5.05267 0 04669 0.09200 13.51486 2005 3.11712 0 3083% 2.68951 1 91484 0.25321 0.23182 5 04535 0 04658 0.09039 13.38882 2006 3 03706 2.56846 2.49787 1 86293 0.23330 0.21982 5.01637 0.04482 0.59000 13 50217 2007 2.84033 -6 4776% 2.32535 1 75139 0.23158 0.20621 4.78874 0 04212 0.55652 12.74224 2008 2.56911 9.5489% 2.13233 0 98437 0.22359 0.30000 4.73164 0.10000 0.50854 11.54958 2009 2.37324 7.6240% 1 96268 1 30431 0 19700 0.27404 4.12360 0.09123 0 47141 10.79751 of Total 21 98% fa) Includes King County Library District tax. Source: King County Department of Assessments 18.18% CITY OF TUKWILA, WASHINGTON HISTORICAL LEVY RATES (PER $1,000 OF ASSESSED VALUATION) LAST TEN FISCAL YEARS 12 08% 1.82% 2.54% 38 19% 0 84% 4.37% 100 00%