HomeMy WebLinkAboutCOW 2014-11-10 Item 5A - Ordinances - 2015 Tax LevyCOUNCIL AGENDA /SYNOPSIS
Initials
MeainsDate
Prepared by
Mgor's review
Council review
11/10/14
PMC
E Resolution
Mtg Dale
4 Ordinance
11/17/14
PMC
[1] Other
Allg Dale
Mtg Date 11/17/14
Mt g Date 11/10/14
SP ONSOR E Council Mayor HR
E IT R J Police 'IV
E DCD Finance E Fire
SPONSOR'S City Council is being asked to approve an ordinance levying property tax for 2015 and an
SUMMARY ordinance increasing the regular property tax levy one percent from the previous year.
RI N WWI M BY E COW Mtg. [1] CA&P Cmte
E Utilities Cmte E Arts Comm.
DATE: 11/04/14
4 F&S Cmte
E Transportation Cmte
Comm. E Planning Comm.
CHAIR: SEAL
ITEM INFORMATION
ITEM No.
4.A. &
5.A.
STAFF SpoNsoR: PEGGY MCCARTHY
ORIGINAL AGENDA DATE: 11/10/14
AG1ND1\ ITEM TI'llF; An ordinance levying property taxes for 2015 and an ordinance increasing the
regular property tax levy one percent from the previous year.
Civri,(;()1(1' Discussion
Mtg Date 11/10/14
E Motion
Mtg Dale
E Resolution
Mtg Dale
4 Ordinance
11 Bid Award
Mfg Dale
14 Public Hearing
[1] Other
Allg Dale
Mtg Date 11/17/14
Mt g Date 11/10/14
SP ONSOR E Council Mayor HR
E IT R J Police 'IV
E DCD Finance E Fire
SPONSOR'S City Council is being asked to approve an ordinance levying property tax for 2015 and an
SUMMARY ordinance increasing the regular property tax levy one percent from the previous year.
RI N WWI M BY E COW Mtg. [1] CA&P Cmte
E Utilities Cmte E Arts Comm.
DATE: 11/04/14
4 F&S Cmte
E Transportation Cmte
Comm. E Planning Comm.
CHAIR: SEAL
111 Parks
COMMITTEE
RECOMMENDATIONS:
SPONSOR/ADMIN.
CommumE
Finance Department
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11/10/14
MTG. DATE
ATTACHMENTS
11/10/14
Informational Memorandum dated 10/29/14
Draft Ordinances (2)
Preliminary Levy Limit Worksheet
Minutes from the Finance and Safety Committee Meeting of 11/04/14
11/17/14
2
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carlsen, Deputy Finance Director
DATE: October 29, 2014
SUBJECT: 2015 Property Tax Levy
ISSUE
Approval of ordinances increasing the regular levy from the previous year and adopting the
general property tax levy for 2015 by December 5, 2014.
BACKGROUND
A Public Hearing for adoption of the 2015 property tax levy is required by RCW 84.55.120. The
Hearing is scheduled for November 10, 2014.
The City was notified on October 7, 2014 that the assessed value for Tukwila for 2015 is projected
to be $5,017,106,101. The allowable levy projected by King County and documented on the
Preliminary Levy Limit Worksheet-2015 Tax Roll is $14,293,219 representing the maximum 1%
increase allowed by law.
DISCUSSION
Levy Amount
The assessed value and the allowable levy are subject to change until final levy rate
determination. A levy amount of $14,600,000 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 by 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 1, 2014 for approval.
Levy Limit
RCW 27.12.390 allows for a maximum statutory levy rate for cities at $3.60 less the actual regular
levy made by a library district. RCW 41.16.060 also allows for an increase in levy capacity of
$0.225 if a city has a firemen's pension fund. Prior to 2014, even though the City has had a
firemen's pension fund for many years, this additional levy limit has not been reflected in the City's
Levy Limit Worksheet.
The County is now aware that the City does have a firemen's pension fund and will adjust the
City's maximum statutory levy rate to $3.37758 (City levy rate $3.60 less library district levy
$0.44742 plus firemen's pension fund $0.225). The current levy rate gives the City additional
capacity for future growth or levy lid lifts. The Levy Limit Worksheet received from King County
estimates the City's preliminary levy rate for 2015 at $2.84890.
3
4
INFORMATIONAL MEMO
Page 2
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 10, 2014 Committee of the Whole
meeting and subsequent November 17, 2014 Regular Meeting.
ATTACHMENTS
Draft Ordinances
Preliminary Levy Limit Worksheet-2015 Tax Roll
CAUsers\melissa-h\4pDatalocal\Microsoft\Windows\Temporary Internet Files\Content.Outlook\117SNOS9\2015 Info Memo Property Taxes.docx
RIFF
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, 2015, 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 2015 and the amounts necessary and available to be
raised by ad valorem taxes on real, personal and utility property; and
WHEREAS, the final assessment 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 $5,017,106,101,
current taxes for the ensuing year commencing January 2015, in the amount (including
$47,874 in refunds) and at the rates specified below:
Amount
Regular Tax Levy $14,600,000
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, 2015.
W Word Processing \Ordinances \General Tax Levy 10 -23 -14 doc
VC:bjs Page 1 of 2
5
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, 2015.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2014.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel Turpin, City Attorney
W- Word Processing \Ordinances \General Tax Levy 10- 23- 14.doc
VC:bjs
6
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Page 2 of 2
RAFT
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, 2015, 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 10, 2014, 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 2015, 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 2015 levy in
the amount of $101,311, 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 -23 -14
VC:bjs
Page 1 of 2
7
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, 2015.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2014.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel Turpin, City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
W Word Processing \Ordinances \Regular Tax Levy Increase 10 -23 -14
VC:bjs
8
Page 2 of 2
PRELIMINARY
LEVY LIMIT WORKSHEET 2015 Tax Roll
TAXING DISTRICT: City of Tukwila
The following determination qf your regular levy limit for 2015 property taxes is provided by the King County
Assessor pursuant to RCW 84.55.100.
Annexed to Library District
Using Limit Factor
For District
14,060,574
1.0100
14,201,180
14,830,323
0
14,830,323
2.97799
44,165
14,245,345
(Note 1) Estimated Library rate: 0.44742
Calculation of Limit Factor Levy
Levy basis for calculation: (2014 Limit Factor) (Note 2)
x Limit Factor
= Levy
Local new construction
+ Increase in utility value (Note 3)
= Total new construction
x Last year's regular levy rate
= New construction levy
Total Limit Factor Levy
Using Implicit
Price Deflator
14,060,574
1.0159
14,284,278
14,830,323
0
14,830,323
2 97799
44,165
14,328,443
n
14,245,345
5.017.106.101
2.83935
O
O
Annexation Levy
Omitted assessment levy (Note 4)
Total Limit Factor Levy + new lid lifts
� Regular levy assessed value less annexations
= Annexation rate (cannot exceed statutory maximum rate)
x Annexation assessed value
= Annexation Levy
O
14,328,443
5.017.100.101
2 85592
U
0
14,245,345
14,245,345
47,874
14,293,219
Lid lifts, Refunds and Total
+ First year lid lifts
+ Limit Factor Levy
= Total RCW 84.55 levy
+ Relevy for prior year refunds (Note 5)
= Total RCW 84.55 levy + refunds
Levy Correction: Year of Error ( o -)
0
14,328,443
14,328,443
47,874
14,376,317
14,293,219
2 84890
14,099,869
101,311
ALLOWABLE LEVY (Note 6)
Increase Information (Note 7)
Levy rate based on allowable levy
Last year's ACTUAL regular levy
Dollar increase over last year other than N/C — Annex
Percent increase over last year other than N/C — Annex
14,376,317
2 86546
14,099,869
184,409
1 31%
Calculation of statutory levy
Regular levy assessed value (Note 8)
x Maximum statutory rate
= Maximum statutory levy
+Omitted assessments levy
=Maximum statutory levy
Limit factor needed for statutory levy
5.017.106.101
3 15258
15,816,828
�
15,816,828
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.
10/29/14 12:07 PM
Notes:
l) Rates for fire districts and the library district are estimated at the time this worksheet is
produced. Fire district and library district rates affect the maximum allowable rate for cities
annexed to them. These rates will change, mainly in response to the actual levy requests
from the fire and library districts. Hence, affected cities may have mhiehcr0rlop/cc
allowable levy rate than is shown here when final levy rates are calculated.
2) This figure shows the maximum allowable levy, which may differ from any actual prior levy
if a district has levied less than its maximum in prior years. The maximum allowable levy
excludes any allowable refund levy if the maximum was based on a limit factor. The
maximum allowable levy excludes omitted assessments if the maximum was determined by
your district's statutory rate limit. If your district passed a limit factor ordinance in the year
indicated, that limit factor would help determine the highest allowable levy. However, if the
statutory rate limit was more restrictive than your stated limit factor, the statutory rate limit is
controlling.
3) Any increase in value in state-assessed property is considered to be new construction value
for purposes of calculating the respective limits. State-assessed property is property
belonging to inter-county utility and transportation companies (telephone, railroad, airline
companies and the like).
4) An omitted assessment is property value that should have been included on a prior year's roll
but will be included on the tax roll for which this worksheet has been prepared. Omits are
assessed and taxed at the rate in effect for the year omitted (RCW 8440.080-085). Omitted
assessments tax is deducted from the levy maximum before calculating the levy rate for
current assessments and added back in as a current year's receivable.
5) Administrative refunds under RCW 84.69.020 were removed from the levy lid by the 1981
legislature.
6) A district is entitled to the lesser of the maximum levies determined by application of the
limit under RCW 84.55 and the statutory rate limit. Levies may be subject to further
proration if aggregate rate limits set in Article VII of the state constitution and in RCW
84.52.043 are exceeded.
7) This section is provided for your information, and to assist in preparing any Increase
Ordinance that may be required by RCW 84.55.120. The increase information compares the
allowable levy for the next tax year with your ACTUAL levy being collected this year. The
actual levy excludes any refund levy and expired temporary lid lifts, if applicable. New
construction, annexation and refund levies, as well as temporary lid lifts in their initial year,
are subtracted from this year's allowable levy before the comparison is made.
8) Assessed valuations shown are subject to change from error corrections and appeal board
decisions recorded between the date of this worksheet and final levy rate determination.
10/29/14 12:07 PM
LevyLimitWS.doc
10
Finance & Safety Committee Minutes November 4, 2014 - Page 2
C. Resolution: Streamlined Sales Tax Mitigation
Staff is seeking Council approval of a resolution urging Governor Ins lee and the Washington
State Legislature to preserve full streamlined sales tax mitigation in the 2015-2017 budget.
Councilmember Hougardy mentioned that she would be speaking on this topic before legislators
at a forthcoming joint legislative meeting of Soundside Alliance and High line Forum.
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 17, 2014 REGULAR CONSENT
AGENDA.
D. Ordinances: Property Tax Levy
Staff is seeking Council approval of two ordinances: one that would increase the City's Regular
Property Tax Levy from 2014, and one that would levy General Taxes. These ordinances are
presented to the Council on an annual basis. According to the King County Assessor, the
projected assessed value for Tukwila is $5,017,106,101.00. The allowable levy projected by
King County is $14,293,219.00, representing the maximum 1% increase allowed by law. This is
subject to change until the final rate is determined by the County. A levy amount of
$14,600,000.00 is proposed in the draft ordinance and may be adjusted based on that
determination. A public hearing is scheduled for November 10, 2014. UNANIMOUS
APPROVAL. FORWARD TO NOVEMBER 10, 2014 COMMITTEE OF THE WHOLE FOR
PUBLIC HEARING AND DISCUSSION.
E. Budget Legislation
1) Staff is seeking Council approval of an ordinance to amend the 2013-2014 Biennial Budget.
Staff provided an overview of the proposed changes, including new proposals for software and
technology, annual funding for the LEOFF1 Retiree Healthcare Plan, unreimbursed firefighter
Oso deployment, previous Council approvals, retail sales tax revenue, revenue backed
expenditures, and budget transfers across departments. A public hearing is scheduled for
November 10, 2014.
2) Staff is seeking Council approval of a resolution to adopt the 2015-2020 Financial Planning
Model and Capital Improvement Program (CIP).
3) Staff is seeking Council approval of a resolution to adopt the 2015-2016 Biennial Budget.
Council review of the Capital Improvement Program and proposed Biennial Budget occurred
during the October 13, 2014 Committee of the Whole and three subsequent work sessions.
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 10, 2014 COMMITTEE OF THE
WHOLE FOR PUBLIC HEARING AND DISCUSSION.
F. Interlocal Agreement: Animal Services
Staff is seeking Council approval for the Mayor to sign a non-binding Indication of Interest to
extend the current Regional Animal Services interlocal agreement for two years, ending
December 31, 2017. This agreement covers animal services for unincorporated King County
and 25 contract cities, and the current term ends December 31, 2015. All contract cities must
support the extension for it to take effect, or a new contract must be negotiated. If the extension
is approved, a new contract will be negotiated following December 31, 2017. UNANIMOUS
APPROVAL. FORWARD TO NOVEMBER 10, 2014 COMMITTEE OF THE WHOLE.
11