HomeMy WebLinkAboutFIN 2023-03-27 Item 1A - PSRFA - Handout Distributed at Meeting - Regional Fire Authority Annexation and Impacts: Key Messages and InformationRFA Annexation and Impacts
Key Messages & Information
• Annexation into the RFA was the consensus of the 2021/2022 Future of Fire and EMS Services Advisory
Committee in order to ensure the long-term sustainability of funding Fire and EMS services and to enhance Fire
and EMS services in the City of Tukwila
• The Committee also understood that annexation would also provide the City a tool to address structural funding
gaps; annexation would allow the City to return to pre -pandemic service levels
• Annexation allows for a more equitable allocation of responsibility for funding fire services as larger, more
complex buildings pay a higher proportion of fire services
• As a part of the adopted 2023/2024 biennial budget, the City anticipated lowering the City's property tax levy
rate upon annexation in 2025
• The 2024 Council will ultimately make the decision on what rate to levy as a part of the 2025/2026 budget, but
the current adopted six-year plan includes the following assumptions:
o Reduce property taxes levied by the City
o Return service levels to pre -pandemic levels
o In Q3 of 2023, initiate the long-term fiscal sustainability planning effort, which includes the formation
of an advisory committee of residents and other stakeholders to be completed in Q2 of 2024 to provide
long-term fiscal solutions to the City Council in time to inform the 2025/2026 budget
The 2023/2024 adopted budget includes the following property tax rates in
City's Property Tax Rate for General Fund Purposes
Year
Actual
Actual
Actual
Budget
2020
2021
2022
2023
2024
2025
2026
2027
2028
7,883,057,562
8,010,892,032
8,970,452,548
9,374,122,913
9,795,958,444
10,236,776,574
10,697,431,520
11,178,815,938
11,681,862,655
PropTax
$ 16,251,567
$ 17,124,167
$ 17,100,000
17,682,000
$ 18,124,000
$ 11,457,720
$ 11,801,452
$ 12,155,495
$ 12,520,160
LevyRate
he six-year plan
2,06
4
91
1.89
1.85
1.12
1.10
1.09
1.07
Difference
872,60
(24,167)
582,000
442,000
(6,666,280)
343,732
354,043
364,665
• The adopted six-year plan anticipates the following changes in property taxes with annexation for a single-family
homeowner with a current assessed value of $604,000 and square footage of 2,980 sq ft' (in 2023 dollars):
1 Fire Benefit Charge (FBC) is based on square footage to ensure larger buildings that require more resources to combat fires pay a
larger share than smaller ones requiring less resources. Larger buildings pay more FBC than smaller ones; actual FBC cost are
calculated directly a property's square footage.
2 Includes voter -approved Public Safety bond, approximately $309 for this specific single-family house.
City
Property
Tax2
RFA Property
Tax
RFA Fire Benefit
Charge
RFA Total Taxpayer
Experience
Total
Pre -Annexation
$1,481
$1,481
Post Annexation
$1,010
$519
$337
$856
$1,866
Annual Difference in 2023 dollars
$ 385
1 Fire Benefit Charge (FBC) is based on square footage to ensure larger buildings that require more resources to combat fires pay a
larger share than smaller ones requiring less resources. Larger buildings pay more FBC than smaller ones; actual FBC cost are
calculated directly a property's square footage.
2 Includes voter -approved Public Safety bond, approximately $309 for this specific single-family house.
• A single-family homeowner with a home with an assessed value of $604,000 and square footage of 2,890 sq ft
would pay an additional $385 annually, approximately $32 more a month to ensure Tukwila has:
o Sustainably funded Fire and EMS services, increasing such services in our community including the
CARES program that dispatches social workers and nurses to non -emergency calls to stabilize the most
vulnerable residents and higher levels of public education and community engagement
o Returned City services to pre -pandemic levels, allowing more resources for Public Works, Technology,
Permitting and Parks and Recreation
Sources:
2023/2024 Adopted Budget, Six-year plan on pages 53-54
Future of Fire and EMS Services Advisory Committee Report