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Home My WebLink AboutRFA 2015-06-10 Item 3 - Powerpoint Presentation Shown at Meeting - Budgeting and OverviewMunIci R Fire Topics for Discussion ))) 1 al Budgeting udgeti e nef tc g harge Overview Property Tax Overview The City of Tukwila is a full service city: FIR 2 What guides our budget process: CITY OF TUKWILA STRATEGIC PLAN 2012 The city of opportunity, the community of choice. Goal 1: A community of inviting neighborhoods & vibrant business district Goal 2: A solid foundation for all Tukwila residents Goal 3: A diverse and regionally competitive economy Goal 4: A high-performing & effective organization Goal 5: A positive community identity & image >3 Priorities for the 2015 -2016 biennial budget ❖Tukwila International Boulevard community transformation ❖ Community livability ❖ Create community partnerships to implement City- wide plans and visions ❖ Develop /implement comprehensive economic development plan ❖ Continue to create a more effective organization ❖ Improved communications and community identity General Fund Costs: Total City Budget $133,515,682 2015 Budget Department (in millions) % of Budget Police $16.4 29.0% Fire 11.0 19.5% Public Works 6.7 11.9% Community Development 3.1 5.5% Parks & Recreation 4.1 7.3% Administrative Support 4.3 7.6% Governance 5.9 10.4% Debt Service 2.8 5.0% Capital Projects 2.2 3.9% Total General Fund Budget $56.5 100.0% » General Fund Revenue Sources' 2015 Budget % of Type (in millions) Budget Sales tax $17.0 30.0% Property tax 14.3 25.2% Utility tax 5.8 10.2% Business licenses /RGRL 2.6 4.6% Other taxes 3.2 5.6% Other govt agencies 4.7 8.3% Other 6.7 11.8% Property Sale 2.4 4.2% Total Revenue $56.7 100.0% )7 Long -Term Projections (if we change nothing): ('ik-y of Tukwila Strategic Plan - Fiscal Baseline Assessmerr[ . ppendi.x C•- Jurre 2012 S 'I Exhi3it 9 Net Fiscal feline (in year of expenditure dollars) o Total Oper onp Revenues Total Op erasing CosIN — — Anrrual Operating surplus{td.iciti S4C S2Cr,1 — $ �,1 — -20M — AND kg' 1 4 :P ,5. 410 c' ilk 1, 4J.IN e � el. » Services Provided by the Kent RFA: s Ktnlf, .. Iv', 14.a. ail at 9 What guides the RFA budget process: Goal 1: Better serve a changing population KENT FIRE DEPARTMENT REGIONAL FIRE AUTHORITY STRATEGIC PLAN 2015 Goal 2: Strengthen our use of data and technology Goal 3: Effectively manage our resources and plan for long -term sustainabilityand resiliency Goal 4: Cultivate an environment of excellence, respect, and fun » RFA Operating Budget (does not include capital reserve): 2015 Budget % of Department (in millions) Budget Administration $2.6 5.4% IT 1.4 2.9% Fleet Management 2.1 4.4% Logistics /Planning 2.2 4.6% Emergency Management 0.8 1.7% Operations 32.0 66.7% Prevention 3.4 7.1% Support Services 3.5 7.2% Total $48.0 100% )11 RFA Revenue Budget: 2015 Budget % of Type (in millions) Budget Property tax $15.4 31.4% EMS Levy (property tax) 1.3 2.6% Fire Benefit Charge 18.5 37.6% Interlocal agreements 12.7 25.8% Misc. contracts 1.3 2.6% Tota I Revenue $49.2 100% Questions for small group discussion: 1. Was there anything that surprised you about the Level of Service presentation? What is one thing you remember from the Level of Service presentation that you think the community should know? 2. With what you have heard so far, what are the pros and cons of annexing to the RFA? 3. What additional information would you like to have prior to making your recommendation to Council? 13 Fire Benefit Charge Basics of FBC Fee, not a tax ❖ Initial imposition of FBC requires 60% voter approval (different for annexations) ❖ Renewing existing FBC requires 60% for RFAs, renew every 6 years ❖ The FBC takes the place of the 3rd 50 cent property tax levy ❖ Cannot exceed 60% of the annual operating budget Basics of FBC, continued ❖ Imposed on improvements to real property ❖ Administered by the RFA, not the County ❖ FBC is added to property tax bills ❖ County charges a fee to collect the funds (currently 1%) 16 Formula ❖ Formula shall be reasonably proportioned to the measurable benefits to property ❖ Any other method that reasonably apportions the benefit charges is acceptable. Exceptions, limitations • Property owned by religious organizations •'• Property that is subject to a contract for services •'• Low income, seniors that qualify for limits on property taxes What is not exempt •'• School districts •'• Non - profits ❖ Government entities that do not have a fire department Existing FBC Formula, to be revised Square root of total square footage X18 X Category factor (type of property) X Fire flow factor (0.31245067777) X Response factor (# of firefighters) X Risk factor (if hazards present) X Applicable discount(s) (sprinklers, alarms) = FBC Property Taxes Taxing Entities Within the City + County + City + State school fund + Port + EMS (Medic One) + Library + Flood control + Metropolitan Park District + Local schools Location Determines Who You Pay Taxes to: #1 Tukwila School Di . trict #2 City of Tukwila #3 Renton School District 23 Property Tax Bill for Tukwila Taxpayer KEEP THIS PORTION ! SEE REVERSE SIDE PROPERTY TAX ACCOUNT- NUMBER 152304- 9092 -02 05111 12015 CORRECTED STATEMENT CO# 01456 BRING THIS STATEMENT WHEN PAYING IN PERSON TUKWILA CITY OF ON0962 6200 SOIJTHCENTER BLVD TUKWILA WA 981 LOT BLOCK CODE SEC TWP Rf.+ 15 -23-04 9092 2413 15 23 PORTION OF SE QTR SW QTR STR 15-23 -04 DAF: COMMENCING AT SE CORNER OF SAID SW QTR TH N87-35-31W 586.32 FT ALONG PROPERTY ADDRESS 14242 PACIFIC HW 5 04 ETC KOI COUNTY 2015 KING COUNTY„ WA, REAL ESTATE TAX RM 600 - 500 FOURTI-I AVE SEATTLE WA 98104 -234 CURRENT BILLING INFORMATION 1172,000 CURRENT TA .s I 1 State........ Local School Support County UmncorporaledFFbed Pon....,.., Library_ ... ...... Emergency Med Svc Ferry Fkwd Corrtrci 2,678.19 6,447.89 1,576.59 3,330.68 22134 589.23 175.35 354.14 162.44 *OTHER CHARGES: NOX WEED 3.35 KING CD Fist had must be paid Of postmarked by April 30, or FULL AMOUNT BECOMES DELINQUENT and accrues Interest and penalty es preeCnbed by law. If first halt paid by April 30 second hell must be paid by October 31 or it becomes delinquent end accrues interest and penally FULL AMOUNT MAY BE. PAID APRIL 30th RP10 Land Value, Improvements ... . Lis; Exempt Value TAXABLE VALUE ..... Levy Rate .:.... ..... General Tax..,..,- ., `Other Charges • - - TOTAL CURRENT BILLING Omitted Taxes TOTAL CURRENT BILLING INCLUDING OMITS.. 1,172,000 13.25584 15,535.85 11.05 15,546.90 VOTER APPROVED LESS PAID 7.70 11.05 DELINQUENT TOTAL 15,535.8'. Regular Levies + Taxing districts have regular levy authority + Usually non -voted (lid lifts are exceptions) + Subject to constitutional and statutory levy limits + Exemptions may apply + School districts have no regular levy authority Levy Rate Limits RCWs specify maximum regular levy rates types: Port $0.45 State schools $3.60 Road (County) $2.25 Library $0.50 MPD $0.75 EMS $0.25 - $0.50 County $1.80 Cities $3.10 - $3.825 Flood control $0.50 Fire $0.50 - $1.50 How the Levy Rate for the City is Calculated: + Expressed in $1 per $1,000 of assessed value + City property tax levy rate = 1,000 X City property tax revenue /assessed value Levy Rate for City - 2015 City rate annexed to fire or library district Firemen's pension fund Less Library actual levy rate Maximum levy rate $3.60000 + 0.22500 = 3.82500 - 0.44747 $3.37753 2015 City of Tukwila levy rate $2.84188 THE 101% LIMIT Chapter 84.55 RCW (Limitations on regular property taxes) limits regular levies to 101% of their highest allowable regular levy since 1985, plus new construction. An entity is allowed the lesser of the amounts determined by its statutory rate limit and the 101% limit. Voted regular levies are not governed by this limit in their first year after the vote. 29 EXAMPLE: Tukwila's 2015 Levy Limits 101% Limit: Highest levy since 1985: $14,060,574 x 101% = $14,201,180 New construction assessed value $24,578,735 x Prior year regular rate then divided by 1,000 $2.97799 = $73,195 + Relevy of prior year refunds $48,500 = Allowable levy using the 101% limit $14,322,875 (Assessed Value / 1,000) / Allowable levy = levy rate or (5,039,932,964 / 1,000) / 14,322,875 = $2.84188 EXAMPLE: Tukwila's 2015 Levy Limits Maximum ($3.37753) limit Regular levy AV: $5,039,932,964 x $3.37753 / 1,000= $17,022,525 Allowable 101% levy $14,322,875 The City's regular levy may not exceed the lesser of the two italicized and bolded amounts. In 2015, the City was limited by the 101% limit rather than the $3.33753 maximum statutory limit. Levy Rate for City after Annexation City rate annexed to fire or library district Firemen's pension fund Less Library actual levy rate Less F(FA actual levy rate Maximum levy rate $3.60000 + 0.22500 = 3.82500 - 0.44747 - U.9497y $2.42774 32 EXAMPLE: Tukwila's 2015 Levy Limits Maximum ($2.42774) limit Regular levy AV: $5,039,932,964 x $2.42774/ 1,000 = $12,235,647 Allowable 101% levy $14,322,875 The City's regular levy may not exceed the lesser of the two italicized and bolded amounts. If annexed to the RFA, the maximum levy rate would be $2.42774 rather than the 101% limit. Levy Rate for RFA after Annexation RFA maximum levy rate $1.00000 Assessed value would increase because their borders would be expanded. 2015 RFA assessed value = $16,539,495,569 2015 City assessed value = $5,039,932,964