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HomeMy WebLinkAboutCOW 2011-11-14 Item 5A.2 - Ordinance - Increase Property Tax Levy by 1% for 2012COUNCIL AGENDA SYNOPSIS Initials ITEM NO. Meelhtz Date Prepared by I Mayor's review Council review 11/14/11 1 PMc LAM (14' 1 4 11/21/11 PMc i 5.A. ITEM INFORMATION CAS NUI B]3 'R: STAFF SPONSOR: PEGGY MCCARTHY ORIG INA], AGENDA DATF: 11/14/11 AGI-_.NDA IT M Trrt,I An ordinance levying property taxes for 2012 and an ordinance increasing the regular property tax levy one percent from the previous year. C,� i'I�:GORY Discussion Motion Resolution Ordinance Bid2livard Public Hearing Other D4tg Date 11/14/11 1AZtg Date Nltg Date Alt g Date 11/21/11 Mtg Date rA2tg Date 11/14/11 11Itg Dale SPONSOR Council Mayor HR DCD Finance .Fire IT P &R ❑Police PlV' SPONSOR'S City Council is being asked to approve an ordinance levying property tax for 2012 and an SUMMARY ordinance increasing the regular property tax levy one percent from the previous year. Ri -I ;�xil :D I3Y CO \U Mtg. CA &P Cmte F &S Cmte Transportation Cmte utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 11/08/11 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONs( /ADMIN. Finance COmm""ITEr Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPI- :NDI'TUR1 R73OUlltED AMOUNT BUDGETED APPROPRIATION ,REQUIRED $0 Fund Source: Comments: MTG. DATE 11/14/11 I MTG. DATE 11/14/11 11/21/11 RECORD OF COUNCIL ACTION ATTACHMENTS Informational memorandum dated 11/3/11 Draft Ordinances (2) Preliminary Levy Limit Worksheet Minutes from the Finance Safety Committee Meeting of 11/8/11 1 x City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: FROM: DATE: SUBJECT ISSUE Mayor Haggerton Finance and Safety Committee Peggy McCarthy, Interim Finance Director November 9, 2011 2012 Property Tax Levy The Council must consider and pass a property tax levy for 2012 by November 30, 2011. BACKGROUND A Public Hearing for adoption of the 2012 property tax levy is required by RCW 84.55.120. The Hearing is scheduled for November 14, 2011. The City was notified on October 31, 2011 that the assessed value for Tukwila for 2012 is projected to be $4,662,144,321. This represents a decrease of $147,342,465, or 3.06 from the 2011 assessed value of $4,809,486,786. The allowable levy projected by King County and documented on the Preliminary Levy Limit Worksheet -2012 Tax Roll is $13,737,816, representing the maximum 101 increase allowed. DISCUSSION The assessed value and the allowable levy are subject to change until final levy rate determination. A levy amount of $13,800,000 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 5, 2011 for approval. RECOMMENDATION The Council is being asked to consider the ordinance adopting the General Tax Levy and the ordinance adopting the Regular Tax Levy at the November 14, 2011 Committee of the Whole meeting and the subsequent November 21, 2011 Regular Meeting. A public hearing has also been scheduled at the November 14, 2011 Committee of the Whole. ATTACHMENTS Draft Ordinances Preliminary Levy Limit Worksheet 2012 Tax Roll 9 0 m. 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, 2012, 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 2012 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 $4,662,144,321, current taxes for the ensuing year commencing January 2012, in the amount and at the rates specified below: Amount Regular Tax Levy $13,800,000 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, 2012. W: Word Processing \Ordinances \General Tax Levy 11 -2 -11 PM: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, 2012. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \General Tax Levy 11 -2 -11 PM:bjs Page 2 of 2 .•J IJKPM 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, 2012, 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 14, 2011, 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 2012, 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 2012 levy in the amount of $103,245, 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 11 -2 -11 PM:bjs Page 1 of 2 C 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, 2012. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, 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 11 -2 -11 PM:bjs Page 2 of 2 9 s� LEVY LIMIT WORKSHEET 2012 Tax Roll TAXING DISTRICT: City of Tukwila The determination of your regular levy limit for 2012 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 13,463,176 Levy basis for calculation: (2011 Limit Factor) (Note 2) 13,463,176 1.0100 x Limit Factor 1.0276 13,597,808 Levy 13,834,086 7,007,838 Local new construction 7,007,838 0 Increase in utility value (Note 3) 0 7,007,838 Total new construction 7,007,838 2.82566 x Last year's regular levy rate 2.82566 19,802 New construction levy 19,802 13,617,610 Total Limit Factor Levy 13,853,888 Annexation Levy 0 Omitted assessment levy (Note 4) 0 13,617,610 Total Limit Factor Levy new lid lifts 13,853,888 4,662,144,321 Regular levy assessed value less annexations 4,662,144,321 2.92089 Annexation rate (cannot exceed statutory maximum rate) 2.97157 0 x Annexation assessed value 0 0 Annexation Levy 0 Lid lifts, Refunds and Total 0 First year lid lifts 0 13,617,610 Limit Factor Levy 13,853,888 13,617,610 Total RCW 84.55 levy 13,853,888 120,206 Relevy for prior year refunds (Note 5) 120,206 13,737,816 Total RCW 84.55 levy refunds 13,974,094 Levy Correction: Year of Error +or 13,737,816 ALLOWABLE LEVY (Note 6) 13,974,094 Increase Information (Note 7) 2.94667 Levy rate based on allowable levy 2.99735 13,494,563 Last year's ACTUAL regular levy 13,494,563 103,245 Dollar increase over last year other than N/C Annex 339,523 0.77% Percent increase over last year other than N/C Annex 2.52% Calculation of statutory levy Regular levy assessed value (Note 8) 4,662,144,321 x Maximum statutory rate 3.10000 Maximum statutory levy 14,452,647 +Omitted assessments levy 0 Maximum statutory levy 14,452,647 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. 11/02/11 11:59 AM LevyLimitWS.doc 9 Notes: 1) 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 a higher or lower 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 84.40.080 -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. 11/02/11 11:59 AM Levy Lini WS.doc 0 FINANCE AND SAFETY COMMITTEE DRAFT Meeting Minutes November 8, 2011— 4: 00 p.m.; Conference Room 93 City of Tukwila Finance and Safety Committee *N0TE::4pecia1.Ytar1 .Thee PRESENT COLmcllmembers: Kathy Hougardy, Chair; Joan Hernandez and Dennis Robprtson Staff: Peggy McCarthy, Craig Zellerhoff, Mike Villa, David (641and Joyce Trantina, Bob Giberson, Gail Labanara, Derek Speck, Katherine Kertzman, Rjck'Still Others: Chuck Parrish, Ellen Gengler CALL TO ORDER: Chair Hougardy called the meeting to order 'at 4:00 p.ma nom. I. PRESENTATIONS HV No presentations. II. BUSINESS AGENDA A. Rock `N' Roll Marathon Sponsorship Staff is seeking Council approval to ent alto a sponsors ffpJgagreement with Competitors Group for the 2012 Rock `N' Roll Seattle Marathon and,/2` in the' ount of $50,000. This is largely due to a change in the route for the Marathon, gtuing the group /sponsors a1 opportunity to grow the size of the event. The City received good visibility from th _event, as wel as good practice for emergency management activities Tls�J -be a joint rriarket�ng:po�oct/sponsors� with Seattle Southside Visitors Services between the cares of Tttkw�ala, SeaTaE Kent a7 d Des~ ones and the Tukwila portion of the cost is $16,500 which will be funded from the lodgiiiA' nd. Pv UNANIMOUS,APPROV L. FORWARD TO NOVEMBER 14 COW FOR DISCUSSION. B. Resolution: ProcuremenUCard Process Staff is peeking COUflC'I 4broval of a resolution thatradopts the City's Procurement Card Program. The purpose of the PCardWgram wOto increase efficiencies by streamlining the purchasing process, reduce purchase orders and the use of petty cash. The City also gets a rebate from the bank (about $48K /yeas �Eas'ed on a recent audit, it was discovered that City Council needs to approve the new process, per the drafted Resolution. UNANIMOUS APPROVAL FORWARD TO NOVEMBER 14 COW FOR DISCUSSION. C. Ordinances: 2012 Tax Levvw Staff is seeking Council approval of an ordinance increasing the City's Regular Property Tax Levy from the previous year and an ordinance levying the General Taxes. After discussion regarding the tax levy, it was suggested that staff consider combining these two resolutions into one combined resolution in future years. Dennis asked that staff investigate how far the property tax would have to go before the City actually sees a decline in revenues, since the property assessments have not shifted in a positive direction yet. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 14 COW FOR PUBLIC HEARING AND DISCUSSION. 11 12