The URL can be used to link to this page

Home My WebLink AboutFS 2010-11-16 Item 2B - Ordinances/Resolution - 2011 Property Tax Levy J 1ILA G Vf.ci 4 s C ity of Tukwila .;i.1, r e 9 Jim H gg rto Mayor a e n, 90 INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: November 10, 2010 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 $4,737,264,412. This represents a decrease of $245,187,939, or 4.9 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 $2.82 would be needed for 2011. The change in levy of $0.16 represents a 6.02% increase. Assuming a home of average value of $300,000, and no change in assessed value, the increase in levy rate would cost approximately $48 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 9 10 D NA, 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 $4,737,264,412, current taxes for the ensuing year commencing January 2011, in the amount and at the rates specified below. Rate Amount Regular Tax Levy $2.82 $13,375,000 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 maruner 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 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 W \Word Processing Ordinances \General Tax Levy 2011.doc SH:nvh 11/09/2010 Page 1 of 1 11 12 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUICWILA, 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 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 W" Word Processing \Resolutions \201 1 Property Tax Levy Substantial Need.doc SH:mrh 11/9/2010 Page 1 of 1 13 14 Dp APT 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, 2011, 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 22, 2010, 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 2011, 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 2011 levy in the amount of $107,296, 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, 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 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 W' \Word Processing Ordinances \Regular Tax Levy Increase 2011.doc SH:m.rh 11/09/2010 Page 1 of 1 15