HomeMy WebLinkAboutCOW 2022-11-14 Item 5A - Ordinances - 2023 Regular Tax Levy / 2023 General Tax LevyCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
11/14/22
Vicky
11/21/22
Vicky
ITEM INFORMATION
ITEM NO.
4.A &
5.A
STAFF SPONSOR: VICKY CARLSEN
ORIGINAL AGENDA DATE: 11/14/ 22
AGENDA ITEM TITLE Ordinances adopting 2023 property tax levy
CATEGORY ® Discussion
Mtg Date 11/14/22
U Motion
Mtg Date
Resolution
Mtg Date
Ordinance
Mtn Date 11/21/22
Bid Award
Mtn Date
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Public Hearing
Mtn Date 11/14/22
❑ Other
Mtg Date
SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PW
SPONSOR'S
SUMMARY
City Council is being asked to approve two ordinances that will adopt both the regular levy
and excess levy for 2023
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev.
DAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 10/24/22 COMMITTEE CHAIR: QUINN
RECOMMENDATIONS:
SPONsoR/ADMIN. Finance
COMMITTEE Unanimous Approval; Forward to 11/14/22 C.O.W.
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
APPROPRIATION REQUIRED
Fund Source:
Comments:
11/14/22
11/21/22
MTG. DATE
11/14/22
11/21/22
RECORD OF COUNCIL ACTION
ATTACHMENTS
Informational Memorandum dated 10/18/22
Draft Ordinances
Preliminary Levy Limit Worksheet - 2023 Tax Roll
Minutes from the Finance & Governance Committee meeting 10/24/22
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City of Tukwila
INFORMATIONAL MEMORANDUM
Allan Ekberg, Mayor
TO: Finance & Governance Committee
FROM: Vicky Carlsen, Finance Director
BY: Aaron Williams, Fiscal Manager
CC: Mayor Ekberg
DATE: October 24, 2021
SUBJECT: 2023 Property Tax Levy
ISSUE
Approval of ordinances adjusting the regular levy from the previous year and adopting the general
and excess property tax levies for 2023 by November 30, 2022.
BACKGROUND
A Public Hearing for adoption of the 2023 property tax levy is required by RCW 84.55.120. The
Hearing is scheduled for November 14, 2022.
The City was notified on October 17, 2022 that the assessed value for Tukwila for 2023 is
projected to be $8,981,288,883.
The ordinance to set the general tax levy also includes the excess levy related to the Public Safety
Plan that voters approved on the November 8, 2016, general election. The City sold $36.5 million
of bonds in 2016 and debt service repayment began in 2017. The remaining voter -approved
bonds were sold in October 2019. The excess levy for both bond issues will be assessed for as
long as the bonds are outstanding; the final payment for the 2016 issue is scheduled for December
2036 and the final payment for the 2019 issue is scheduled for December 2039. The total excess
levy requirement for 2023 debt service is $4,535,975.
DISCUSSION
Levy Amount
The assessed value and the allowable levy are subject to change until final levy rate
determination. A levy amount of $17,600,000 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.
Also included in the tax levy ordinance is an excess levy in the amount of $4,535,975 for debt
service related to the unlimited tax obligation bonds that were sold at the end of 2016 and in
2019. All voter -approved bonds have now been issued.
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INFORMATIONAL MEMO
Page 2
Levy Limit
RCW 27.12.390 allows for a maximum statutory levy rate for cities at $3.60 per $1,000 of
assessed value, less the actual regular levy made by a library district. RCW 41.16.060 also allows
for an additional levy of $0.225 if a city has a firemen's pension fund. The maximum allowable
levy for 2023 is estimated to be $3.59032. However, due to the 1% limitation, the Levy Limit
Worksheet received from King County estimates the City's preliminary levy rate for 2023 at
$1.94813 per $1,000 of assessed value.
RECOMMENDATION
The City Council is being asked to approve the ordinance adopting the General Tax Levy and the
ordinance showing the dollar and percent change from the previous year at the November 14,
2022 Committee of the Whole meeting and subsequent November 21, 2022 Regular Meeting. A
public hearing has also been scheduled at the November 14, 2022 Committee of the Whole.
ATTACHMENTS
Draft Ordinances (2)
Preliminary Levy Limit Worksheet -2023 Tax Roll
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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, 2023, 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, 2022, pursuant to RCW 84.55.120; and
WHEREAS, after such hearing and after 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 2023, 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 2023 levy in
the amount of $158,660, which is a percentage increase of 0.92% 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.
CC: Legislative Development\Regular Tax Levy Increase 9-30-22
VC:AY Review and analysis by Andy Youn
Page 1 of 2
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Section 2. Corrections by City Clerk or Code Reviser Authorized. 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, 2023.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2022.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Mayor
APPROVED AS TO FORM BY: Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Office of the City Attorney
CC: Legislative Development\Regular Tax Levy Increase 9-30-22
VC:AY Review and analysis by Andy Youn
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Ordinance Number:
Page 2 of 2
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, 2023, ON ALL
PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY, THAT
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, WITH AN EXCESS PROPERTY TAX LEVY FOR THE
PURPOSE OF PAYING DEBT SERVICE ON THE CITY'S
UNLIMITED TAX GENERAL OBLIGATION BONDS ISSUED IN
2016 AND 2019, 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 2023 and the amounts necessary and available to be raised by
ad valorem taxes on real, personal and utility property; and
WHEREAS, the following sentence is provided for information only: The maximum
Statutory Levy Rate for the City of Tukwila, as allowed by RCW 84.52.043, is $3.825, which
includes $0.225 for the Firemen's Pension Fund as allowed by RCW 41.16.060; and
WHEREAS, the City, pursuant to Ordinance No. 2514, passed on November 21, 2016,
authorized the issuance and sale of $36,500,000 principal amount of the City's Unlimited
Tax General Obligation Bonds, 2016 and pursuant to Ordinance No. 2610, passed on July
15, 2019, authorized the issuance and sale of $40,885,000 principal amount of the City's
Unlimited General Obligation Bonds, 2019 (together the "Bonds"); and has determined that
to provide the money necessary to pay the debt service requirements on the Bonds in the
year 2023, an excess property tax levy in the amount of $4,535,975 for the Bonds must be
levied in year 2022, and collected in year 2023; and
WHEREAS, the final assessed valuation calculation has been determined;
CC: Legislative Development\General Tax Levy + Excess Levy 9-30-22
VC:AY Review and analysis by Andy Youn Page 1 of 3
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Regular and Excess 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 $8,981,288,883,
current taxes for the ensuing year commencing January 1, 2023, in the amounts specified
below:
Regular Tax Levy
Excess Tax Levy
Rate Amount
$1.95 $ 17,600,000
$0.50 $ 4,535,975
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, 2023. The regular tax levy includes new construction and
improvements to property, estimated to be $74,619, a re -levy of prior year refunds in the
estimated amount of $20,825, and any increase in the value of state -assessed property.
C. The excess levy is levied for the purpose of debt service payments on the
unlimited tax obligation bonds sold to finance costs related to the City's Public Safety
Plan, as submitted to the qualified electors of the City at a special election held on
November 8, 2016.
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 Authorized. 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, 2023.
CC: Legislative Development\General Tax Levy + Excess Levy 9-30-22
VC:AY Review and analysis by Andy Youn Page 2 of 3
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PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2022.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor
APPROVED AS TO FORM BY: Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Office of the City Attorney
CC: Legislative Development\General Tax Levy + Excess Levy 9-30-22
VC:AY Review and analysis by Andy Youn Page 3 of 3
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PRELIMINARY
LEVY LIMIT WORKSHEET - 2023 Tax Roll
TAXING DISTRICT: City of Tukwila
The following determination of your regular levy limit for 2023 property taxes is provided by the King County
Assessor pursuant to RCW 84.55.100.
Annexed to Library District
Using Limit Factor
For District
17,228,992
1.0100
17,401,282
34,561,877
0
34,561,877
2.15900
74,619
17,475,901
(Note 1) Estimated Library rate: 0.23468
Calculation of Limit Factor Levy
Levy basis for calculation: (2022 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
17,228,992
1.0646
18,341,468
34,561,877
0
34,561,877
2.15900
74,619
18,416,087
0
17,475,901
8,981,288,883
1.94581
0
0
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
0
18,416,087
8,981,288,883
2.05049
0
0
0
17,475,901
17,475,901
20,825
17,496,726
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 (+or-)
0
18,416,087
18,416,087
20,825
18,436,912
17,496,726
ALLOWABLE LEVY (Note 6)
18,436,912 1
1.94813
17,242,622
158,660
0.92%
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
2.05281
17,242,622
1,098,846
6.37%
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
8,981,288,883
3.59032
32,245,701
0
32,245,701
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.
10/18/22 2:48 PM
LevyLimitWS.doc
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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.
10/18/22 2:48 PM
LevyLimitWS.doc
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City of Tukwila
City Council Finance & Governance Committee
Meeting Minutes
October24, 2022 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams
Councilmembers Present:
Staff Present:
De'Sean Quinn, Chair; Kate Kruller, Cynthia Delostrinos Johnson
Vicky Carlsen, Rachel Bianchi, Tony Cullerton, Laurel Humphrey,
Griffin Lerner, Brittany Robinson, David Cline, David Rosen
I. BUSINESS AGENDA
A. Tax Levy Legislation
Staff is seeking approval of:
*1. Ordinance levying the general taxes for 2023.
2. Ordinance increasing the regular tax levy for 2023.
Committee Recommendation
Unanimous approval. Forward to November 14, 2022 Committee of the Whole for Public
Hearing.
B. Resolution Authorizing an Interfund Loan for a Fire Engine
Staff is seeking approval of a resolution authorizing a loan of up to $1,100,000 from the Sewer
Fund to the General Fund, establishing interest rate and repayment schedule, to purchase a
new fire engine.
Committee Recommendation
Unanimous approval. Forward to November 14, 2022 Committee of the Whole.
C. Budget Legislation
Staff is seeking Council approval of:
1. Ordinance adopting the 2023-2024 Biennial Budget
2. Resolution Adopting the 2023-2028 Financial Planning Model and Capital Improvement
Program
3. Ordinance amending the 2021-2022 Biennial Budget
Item(s) for follow-up:
Provide information on how REET can be leveraged in the budget.
Committee Recommendation
Forward to November 14, 2022 Committee of the Whole for Public Hearings.
D. Proposed Business & Occupation Tax
Staff presented an overview of a proposed Business & Occupation Tax included in the Mayor's
budget as a new revenue source to address maintenance of city services in the next biennium.
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