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City of Tukwila
Finance and Governance
Committee
Kate Kruller, Chair
Kathy Hougardy
De’Sean Quinn
Distribution:
K. Kruller
K. Hougardy
D. Quinn
C. Delostrinos Johnson
T. McLeod
M. Abdi
T. Sharp
Mayor Ekberg
D. Cline
R. Bianchi
C. O’Flaherty
A. Youn
L. Humphrey
AGENDA
MONDAY, APRIL 24, 2023 – 5:30 PM
THIS MEETING WILL BE CONDUCTED BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY.
ON-SITE PRESENCE WILL BE IN THE DUWAMISH CONFERENCE ROOM
(2ND FLOOR, 6300 SOUTHCENTER BOULEVARD)
THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS
MEETING IS: 1-253-292-9750, Access Code 313004383#
Click here to: Join Microsoft Teams Meeting
For Technical Support during the meeting call: 1 -206-433 -7 1 55.
Item Recommended Action
1. BUSINESS AGENDA
a. Monthly General Fund update (February 2023).
Tony Cullerton, Deputy Finance Director
a. Financial considerations regarding annexation into
the PSRFA (Puget Sound Regional Fire Authority).
David Cline, City Administrator
2. MISCELLANEOUS
a. Discussion only.
b. Forward to 5/8 C.O.W.
Meeting.
Pg.1
Pg.7
Next Scheduled Meeting: May 8, 2023
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
1
TO: Finance & Governance Committee
FROM: Tony Cullerton, Deputy Finance Director
CC: Mayor Ekberg
DATE: April 24, 2023
SUBJECT: February 2023 General Fund Departmental Budget-to-Actuals Report
Summary
The purpose of the February 2023 General Fund Financial Report is to summarize for the City
Council the general state of departmental expenditures and to highlight significant items. The
following provides a high-level summary of the departmental financial performance. The
February 2023 report is based on financial data available as of March 31, 2023, for the period
ending February 28, 2023.
Expenditures
Allocated Budget
As of the end of February, all departments, with the exception of Fire, reported activity that is
within their allocated budget. The increase in Fire is due to a $3,5 million invoice to the Puget
Sound Regional Fire Authority (PSRFA). This is a quarterly payment that was anticipated and
budgeted to be paid in March. However, the invoice was received in mid-February and paid in
February.
General Fund departmental expenditures totaled $12.4 million through February, which is $1,96
million above the allocated budget of $10.5 million. This increase has been identified above with
the early payment to the PSRFA. Department 20, which is transfers to other funds, reported no
allocated budget or expenditure activity for the months of January and February. This is
consistent with prior year spending patterns.
Budget to Actual (% Expended)
When comparing YTD spending to the percent of year completed (16.7%), two departments
finished the month higher than 16.7%. Finance reported % Expended of 22.2%. This is attributed
to an $834,921 annual payment for the WCIA Liability Insurance premium. Fire ended the month
at 26.9%, due to the early quarterly payment to the PSRFA contract.
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INFORMATIONAL MEMO
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2
Departmental Variances
Year to Date Department Expenditures Compared to Allocated Budget Through February 2023:
2023 Compared to 2022
Most departments reported increases over the same period compared to the prior year. This is
expected due to increases in salaries due to contractual obligations and a general increase in the
cost of ongoing expenditures. However, several departments reported increases greater than 5%
and $50,000 over the same period last year.
In addition to the standard salary increase, Mayor’s Office reported an increase of $122,285,
(44.5%) over the same period last year. The cause of the increase is primarily a timing difference.
Specifically, a timing difference in the payment of invoices in 2022 compared to 2023. This is
evident with Attorney Services, Public Defender costs, and Prosecution Services.
Allocated Budget %
2023 2023 2021 2022 2023 vs Actual Expended $ Change % Change
DEPARTMENT Annual Allocated OVER/(UNDER)
City Council 384,889 56,982 52,748 54,853 55,773 (1,208) 14.5% 920 1.7%
Mayor's Office 2,502,666 454,930 237,228 275,003 397,288 (57,642) 15.9% 122,285 44.5%
Administrative Services 5,676,491 971,123 612,116 687,540 773,364 (197,759) 13.6% 85,824 12.5%
Finance Department 3,868,642 1,060,545 720,186 831,005 856,993 (203,552) 22.2% 25,987 3.1%
Rec Dept / Parks Maint 5,109,490 771,459 734,547 584,521 684,807 (86,651) 13.4% 100,287 17.2%
Community Dev 4,672,314 780,618 546,965 710,773 666,260 (114,358) 14.3% (44,513) -6.3%
Municipal Court 1,741,340 290,223 191,955 244,731 264,228 (25,995) 15.2% 19,497 8.0%
Police Department 22,746,448 4,144,623 2,958,632 3,058,958 3,531,574 (613,049) 15.5% 472,617 15.5%
Fire Department 14,790,120 295,670 2,313,101 2,346,086 3,972,978 3,677,308 26.9% 1,626,892 69.3%
PW Dept / Street Maint 7,574,988 1,628,247 1,863,177 1,061,423 1,209,983 (418,264) 16.0% 148,559 14.0%
Subtotal 69,067,388 10,454,419 10,230,655 9,854,893 12,413,248 1,958,829 18.0% 2,558,355 26.0%
Non Departmental 6,688,881 0 0 0 0 0 0.0% 0 0.0%
Total Expenditures 75,756,269 10,454,419 10,230,655 9,854,893 12,413,248 1,958,829 16.4% 2,558,355 26.0%
% of Year 16.7%
2020/2021 2022/2023
BUDGET ACTUAL
Desc 2022 2023 $ %
Salaries 109,904 119,382 9,478 8.6%
Attorney /Svs 33,000 66,000 33,000 100.0%
Pub Def 1,500 59,000 57,500 3833.3%
Prosecution Svs 12,500 25,000 12,500 100.0%
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INFORMATIONAL MEMO
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3
Administrative Services reported an increase of $85,824 (12.5%). In addition to Salaries, the
increase over the prior year is spread among the Admin Svs. Divisions in the categories of
Memberships and Online Services–Subscriptions. Memberships show a timing difference in
paying invoices between years. The increase in Online Services-Subscriptions is shared among
the different divisions within the department.
Recreation / Parks Maintenance reported an increase of $100,287 (17.2%) over the same period
last year. The largest portions of the increase are due to increased salaries related to the
restoration of services and an increase in Security/Safety Svs. expenditures over the prior year.
Police reported an increase over the prior period of $472,617 (15.5%). While this amount is
significant, the causes of the increase are due to the usual reasons that we have previously seen
in PD, including Salaries, OT, Benefits, Insurance Liability, Pension expenditures, and payroll taxes
(FICA). However, there are a few new players in the game. Contracted Services increased due to
costs related to Admin Team retreat ($3,200) and the need for DNA testing as part of a homicide
investigation ($7,500). Dispatch experienced a rate increase for 2023. This was an approved
budgeted item. Jail Services also had a rate increase for 2023. Additionally, the City received a
credit pertaining to Jail Services in January 2022 of $87,567, resulting in Jan 2022 reporting a
lower than normal expenditure amount.
Desc 2022 2023 $ %
Salaries 350,722 381,340 30,618 8.7%
Memberships 37,201 60,553 23,352 62.8%
Online Services-Subscriptions 42,057 101,836 59,779 142.1%
Div Desc 2022 2023 $ %
Rec Salaries 210,500 228,275 17,774 8.4%
Rec Extra Labor 421 11,556 11,135 2646.5%
Rec Insurance-Liability 510 15,722 15,212 2982.6%
Parks Maint Salaries 126,697 138,749 12,052 9.5%
Parks Maint Security/Safety Svcs 1,400 17,003 15,603 1114.5%
3
INFORMATIONAL MEMO
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4
Fire has previously been addressed. The increase is the $3,694,430 quarterly invoice paid to the
PSRFA.
Public Works / Street Maintenance reported an increase of $148,559 (14%). 60% of the increase
is attributed to a $92,059 increase in Insurance–Property premiums. The other significant
increase is the collective rise in utility costs over the same period last year, attributed to the new
Facilities Maintenance building that opened in June of 2022.
This concludes the recap of notable variances within departments between 2022 and 2023. While
overall General Fund departmental costs increased by 26% over the same period last year, the
increase in expenditures were identified ahead of time and were budgeted for. As a reminder, all
General Fund departments ended the month of February within their Allocated Budget, with the
exception of Fire. The overage in Fire is solely due to an early payment to the PSRFA that was
scheduled to be paid in March.
The graph below shows the Annual Budget, Actual Expenditures, and Allocated Budget amounts
for the General Fund departments.
Description 2022 2023 $ %
Salaries 109,904 119,382 9,478 8.6%
OT 105,113 171,031 65,918 62.7%
FICA 119,820 143,734 23,914 20.0%
LEOFF 65,943 81,850 15,907 24.1%
Medical, Dental, Life, Optical 19,591 34,805 15,214 77.7%
Contracted Services 1,200 10,749 9,549 795.7%
Dispatch 196,468 230,808 34,339 17.5%
Jail Svs 72,287 167,290 95,003 131.4%
Insurance-Liability 278,737 324,931 46,194 16.6%
Software Maintenance Contract 71,386 89,480 18,094 25.3%
Division Desc
2022 2023 $ %
Pub Wks OT 109,904 119,382 9,478 8.6%
Pub Wks Insurance-Property 346,858 438,917 92,059 26.5%
Pub Wks Electric Utility 79 55,857 55,778 70802.3%
Pub Wks Natural Gas Utility 0 12,167 12,167 0.0%
Streets Electric Utility 7,199 24,523 17,324 240.6%
4
INFORMATIONAL MEMO
Page 5
5
Per ordinance, the City adopts a biennial budget by fund. This is the required level of reporting
for external authoritative sources of oversight such as of the Washington State Auditor’s office.
This level of reporting is also utilized for the purposes of debt issuance and by other stakeholders.
For managerial reporting and internal use, the city reports activity at the department level. This
provides more details and additional information used by decision makers within the city and
those charged with governess. In an effort to provide an enhanced level of reporting, additional
information is being provided for activity at the transaction level that reflect an increase of more
than 5% over the prior year AND $50,000, that are part of a Category that is reporting total
activity above the % of Year calculation.
The end of February represents completion of 16.7% of the year. Total Services is the only
Category that reported total activity higher than 16.7%.
Within Total Services the event that tipped Professional Services was the Fire contract payment.
Professional Development – The two largest contribution factors to the increase in Professional
Development is Memberships, with a $25,193 (26.7%) jump over 2022, and Registrations, with a
$9,101 (845%) increase over the prior year. Utilities costs are higher due to the new Fleet
Facilities building. Staff moved into the new building in June of 2022. January – June of 2023, is
expected to show an increase in costs when compared to the same period in 2022.
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INFORMATIONAL MEMO
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6
General Fund
City of Tukwila
General Fund Expenditures
Allocated Budget %
2023 2023 2021 2022 2023 vs Allocated Expended
Annual Allocated OVER/(UNDER) $
2022/2023
%
2022/2023
Salaries 25,787,016 4,297,835 4,627,283 4,878,147 3,842,367 (455,469) 14.9% (1,035,780) (21.2%)
Extra Labor 769,106 82,358 859 41,959 54,499 (27,859) 7.1% 12,540 29.9%
Overtime 755,184 102,371 285,145 432,520 291,849 189,478 38.6% (140,671) (32.5%)
Holiday Pay 250,000 3,635 2,560 2,885 1,935 (1,700) 0.8% (950) (32.9%)
FICA 2,110,086 351,681 285,570 310,328 315,667 (36,014) 15.0% 5,339 1.7%
Pension-LEOFF 635,410 93,568 139,099 146,850 85,931 (7,637) 13.5% (60,919) (41.5%)
Pension-PERS/PSERS 1,744,919 290,820 269,506 239,320 253,845 (36,975) 14.5% 14,525 6.1%
Industrial Insurance 586,183 97,697 171,478 99,101 63,390 (34,307) 10.8% (35,711) (36.0%)
Medical & Dental 5,748,432 958,072 1,035,803 1,224,582 894,256 (63,816) 15.6% (330,326) (27.0%)
Unemployment 0 0 0 168 0 0 - (168) -
Uniform/Clothing 33,290 11,382 667 0 242 (11,140) 0.7% 242 -
38,419,627 6,289,420 6,817,968 7,375,860 5,803,982 (485,438) 15.1% (1,571,879) (21.3%)
Supplies 678,334 109,862 74,869 5,172 42,017 (67,845) 6.2%$36,845 712.4%
Repairs & Maint Supplies 450,010 74,135 20,710 13,448 34,599 (39,536) 7.7% $21,151 157.3%
Resale Supplies 2,500 400 0 0 0 (400) - $0 Null
Small Tools 213,203 35,234 4,049 3,306 5,936 (29,298) 2.8% $2,630 79.6%
Technology Supplies 110,798 18,466 5,978 3,659 2,741 (15,725) 2.5% ($918) (25.1%)
Fleet Supplies 7,000 1,167 264 0 740 (427) 10.6% $740 -
1,461,845 239,263 105,870 25,584 86,033 (153,230) 5.9% $60,448 236.3%
Professional Services 21,798,537 2,537,937 1,504,819 1,579,849 5,890,653 3,352,717 27.0% $4,310,805 272.9%
Communications 440,528 71,333 64,901 37,111 29,816 (41,516) 6.8% ($7,294) (19.7%)
Professional Dev 570,359 127,680 135,082 99,662 144,328 16,648 25.3% $44,666 44.8%
Advertising 66,300 15,533 589 0 50 (15,483) 0.1% $50 -
Rentals 1,298,059 51,293 66,900 27,462 10,852 (40,440) 0.8% ($16,610) (60.5%)
Technology Services 1,031,264 399,614 115,634 240,306 257,068 (142,545) 24.9% $16,763 7.0%
Utilities 2,244,354 329,571 1,160,913 31,341 116,467 (213,104) 5.2% $85,126 271.6%
Repairs & Maint Svs. 1,286,418 214,570 309,275 323,102 14,593 (199,977) 1.1% ($308,509) (95.5%)
Miscellaneous 1,012,899 163,206 (51,296) 65,117 19,981 (143,225) 2.0% ($45,136) (69.3%)
29,748,719 3,910,736 3,306,816 2,403,950 6,483,811 2,573,075 21.8% 4,079,861 169.7%
Capital Outlay-Land 0 0 0 0 0 0 - 0 -
Other Improvements 0 0 0 0 0 0 - 0 -
Machinery & Equipment 420,000 15,000 0 49,499 0 (15,000) - (49,499) (100.0%)
Construction Projects 0 0 0 0 39,423
420,000 15,000 0 49,499 39,423 (15,000) 9.4% (10,076) (20.4%)
Transfers Out 5,706,078 0 0 0 0 (5,706,078) - 0 -
5,706,078 0 0 0 0 (5,706,078) - 0 -
75,756,269 10,454,419 10,230,655 9,854,893 12,413,248 (3,786,672) 16.4% 2,558,355 26.0%
Year-to Date as of Feb 28, 2023
BUDGET ACTUAL COMPARISON OF RESULTS
Change
6
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Committee of the Whole
FROM: David Cline, City Administrator
Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: March 28, 2023 Updated April 18, 2023
SUBJECT: Financial Considerations Regarding Annexation to the Puget Sound Fire
Authority
ISSUE
The Council has asked staff to provide additional information on financial considerations
regarding annexation to the Puget Sound Fire Authority.
BACKGROUND
In 2022 the City made the decision to contract with the Puget Sound Fire Authority (PSRFA) for
the delivery of fire and EMS services in Tukwila. This decision was made based on a
community-driven process that included formal recommendations from the City’s Future of Fire
and EMS Services Community Advisory Committee. That group recommended annexation to
the PSRFA because of the high level of service the PSRFA is able to provide – above and
beyond what Tukwila was able to provide with an in-house Fire Department – and because of
the long-term financial sustainability of the provision of fire, EMS and other municipal services in
Tukwila. The City Council adopted the Advisory Committee’s recommendations, which the
Mayor also supported, and the City began contracting with the PSRFA on January 1, 2023 with
the goal of a formal annexation within two years. To access the report, visit
http://records.tukwilawa.gov/WebLink/ElectronicFile.aspx?docid=355066&dbid=1 .
OVERVIEW
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
7
INFORMATIONAL MEMO
Page 2
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 the six-year
plan:
The decision regarding the City’s 2025 property tax levy rate rests with the next Council.
Similarly, the PSRFA cannot predict its 2025 rate as it is dependent on a number of
factors, including the overall assessed value of every property in the RFA.
Because of these realities the City can only rely on 2023 numbers and the assumptions
referenced above to provide examples on the impacts to property owners.
While staff have provided an example below on impacts to one single-family property
below, it is important to remember that this is in 2023 dollars and that the Fire Benefit
Charge (FBC) is calculated on square footage and therefore is specific to the example
property below; a single-family home with less square footage than the example below
will pay less FBC.
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 ft1 (in 2023 dollars):
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:
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 $309 for this specific single-family house.
City's Property Tax Rate for General Fund Purposes
Year AV PropTax LevyRate Difference
Actual 2020 7,883,057,562 16,251,567$ 2.06
Actual 2021 8,010,892,032 17,124,167$ 2.14 872,600$
Actual 2022 8,970,452,548 17,100,000$ 1.91 (24,167)$
Budget 2023 9,374,122,913 17,682,000$ 1.89 582,000$
2024 9,795,958,444 18,124,000$ 1.85 442,000$
2025 10,236,776,574 11,457,720$ 1.12 (6,666,280)$
2026 10,697,431,520 11,801,452$ 1.10 343,732$
2027 11,178,815,938 12,155,495$ 1.09 354,043$
2028 11,681,862,655 12,520,160$ 1.07 364,665$
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
8
INFORMATIONAL MEMO
Page 3
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
UPDATE, APRIL 24, 2023 FINANCE & GOVERNANCE
The Council has asked for more information regarding the potential financial impacts of
annexation into the RFA.
Impacts to property owners:
Attached is a spreadsheet of various properties in Tukwila that shows, in 2023 dollars, what the
Fire Benefit Charge and RFA tax levy would be for the specific parcels. It also shows the City’s
current full levy rate, which includes the voter-approved bonds, the reduction should the 2024
City Council choose to levy the rate currently in the six-year financial plan and the difference
between today’s levy rate and the combined RFA levy, FBC and reduced City levy. This
information is for illustrative purposes only and is based on 2023 data, which is what is
available.
Property Tax Exemptions for Seniors, Persons with Disabilities and Disabled Veterans
From the brochure “State law provides a tax benefit program for senior citizens, disabled
persons, and veterans: property tax exemptions and property tax deferrals.
Under the exemption program, the value of your Washington State residence is frozen for
property tax purposes, and you become exempt from all excess and special levies and possibly
regular levies – resulting in a reduction in your property taxes. The exemption is available for
your primary residence and up to one acre of land. A mobile home may qualify, even if the land
where the mobile home is located is leased or rented.
Basic Qualifications
1. Annual household income under $58,423 (excluding VA disability compensation).
2. Own and occupy property as your principal residence for at least nine months per year, including nine months during 2019. 3. Are over the age of 61, disabled, or a veteran with at least an 80% total disability rating.
The Washington State Legislature recently passed a bill that will increase the household income
threshold in King County to $72,000, so more homeowners will be eligible for the exemption.
This will go into effect for the 2024 tax cycle based on 2023 income. Currently 211
homeowners in Tukwila are enrolled in the program.
Considerations for the 2024 Council:
As has been discussed, the 2023/2024 biennial City budget is balanced. The 2025/2026 budget
process, which will take place in 2024, will determine the service levels for the next biennium,
which are directly tied to City revenues. Considerations the next Council will need to work
through include: 9
INFORMATIONAL MEMO
Page 4
Recommendations from the long-term fiscal sustainability effort, which will be informed by
a professional firm selected through an RFQ process and a stakeholder advisory group
made up of residents, businesses and other interested parties
Community input and engagement on what service levels the Tukwila community desires
Outcome of the August 1, 2023 election
Weighing service levels with revenues; should the 2024 Council choose to reduce
revenues it will result in reduced service levels, which would likely include reduction of
staffing in many departments, including contracted services, and elimination of current
services to the community.
RECOMMENDATION
Information Only
ATTACHMENTS
Representative property information
Guide to Property Tax Exemptions Brochure (King County Assessor)
10
Parcel Type / Name 2023 Assessed Value FBC Square
Footage FBC Discounts RFA2023 Levy
(.86447/1000)RFA2023 FBC Retail Tax
2023
2023 Tukwila
FUllLevy Rate
(2.45234/1000)
Tukwila 1.12 + voter
approved
RFA +
$1.12+voter
approved
Difference
between current
full rate, RFA and
$1.12
0.86447 Rate Multiplier =0.00086447 2.45234 1.62506 2.48953
Commercial Parcels
Hotel 1 30,196,600.00$ 294,432 Sq Ft Sprinkler & Alarm Discount 26,104.05$ 22,339.57$ 48,443.62$ 74,052.33$ 49,071.29$ 97,514.91$ 23,462.58$
Fast Food Restaurant 10,563,000.00$ 2084 Sq Ft Sprinkler & Alarm Discount 9,131.40$ 311.09$ 9,442.49$ 25,904.07$ 17,165.51$ 26,608.00$ 703.93$
Large Box Retail 1 173,923,000.00$ 189,743 Sq Ft Sprinkler & Alarm Discount 150,351.22$ 21,942.13$ 172,293.35$ 426,518.33$ 282,635.31$ 454,928.66$ 28,410.33$
Large Box Retail 2 159,848,000.00$ 113,273 Sq Ft Sprinkler & Alarm Discount 138,183.80$ 16,953.49$ 155,137.29$ 392,001.64$ 259,762.59$ 414,899.88$ 22,898.24$
Large Retail 74,435,000.00$ 57,084 Sq Ft Sprinkler & Alarm Discount 64,346.82$ 8,752.87$ 73,099.69$ 182,539.93$ 120,961.34$ 194,061.04$ 11,521.11$
Hotel 2 13,156,000.00$ 62,337 Sq Ft Sprinkler & Alarm Discount 11,372.97$ 9,146.74$ 20,519.71$ 32,262.99$ 21,379.29$ 41,899.00$ 9,636.01$
Large Box Retail 3 25,959,700.00$ 222,444 Sq Ft Sprinkler & Alarm Discount 22,441.38$ 34,826.78$ 57,268.16$ 63,662.01$ 42,186.07$ 99,454.23$ 35,792.22$
Large Box Retail 4 25,600,080.00$ 178,162 Sq Ft Sprinkler & Alarm Discount 22,130.50$ 21,261.96$ 43,392.46$ 62,780.10$ 41,601.67$ 84,994.13$ 22,214.03$
Auto Oriented Business 21 2,555,400.00$ 13,439 Sq Ft Sprinkler & Alarm Discount 2,209.07$ 1,658.96$ 3,868.03$ 6,266.71$ 4,152.68$ 8,020.70$ 1,754.00$
Office Building 1 29,943,000.00$ 255,317 Sq Ft Sprinkler & Alarm Discount 25,884.83$ 37,311.50$ 63,196.33$ 73,430.42$ 48,659.17$ 111,855.50$ 38,425.08$
Self Storage 9,508,100.00$ 75,000 Sq Ft Sprinkler & Alarm Discount 8,219.47$ 10,032.84$ 18,252.31$ 23,317.09$ 15,451.23$ 33,703.54$ 10,386.45$
Office Building 2 7,861,200.00$ 34,662 Sq Ft Sprinkler & Alarm Discount 6,795.77$ 6,820.57$ 13,616.34$ 19,278.34$ 12,774.92$ 26,391.26$ 7,112.93$
Restaurant 5,021,700.00$ 9930 Sq Ft Sprinkler & Alarm Discount 4,341.11$ 1,330.95$ 5,672.06$ 12,314.92$ 8,160.56$ 13,832.62$ 1,517.71$
Auto Oriented Business 2 11,987,400.00$ 81,756 Sq Ft Sprinkler & Alarm Discount 10,362.75$ 10,474.98$ 20,837.73$ 29,397.18$ 19,480.24$ 40,317.97$ 10,920.79$
Industrial Retail 13,043,100.00$ 106,607 Sq Ft Sprinkler & Alarm Discount 11,275.37$ 16,447.08$ 27,722.45$ 31,986.12$ 21,195.82$ 48,918.27$ 16,932.15$
Auto Oriented Business 3 5,427,800.00$ 39,000 Sq Ft Sprinkler & Alarm Discount 4,692.17$ 7,234.78$ 11,926.95$ 13,310.81$ 8,820.50$ 20,747.45$ 7,436.64$
Vacant Parcel 16,562,200.00$ 0 Sq Ft No Discounts (No FBC)14,317.53$ -$ 14,317.53$ 40,616.15$ 26,914.57$ 41,232.09$ 615.95$
Apartment Parcels
Apartment Building 1 3,398,000.00$ 18,920 Sq Ft No Discounts 2,937.47$ 7,157.83$ 10,095.30$ 8,333.05$ 5,521.95$ 15,617.25$ 7,284.20$
Apartment Building 2 7,775,000.00$ 36,534 Sq Ft No Discounts 6,721.25$ 9,946.47$ 16,667.72$ 19,066.94$ 12,634.84$ 29,302.57$ 10,235.62$
Apartment Building 3 39,044,000.00$ 160,700 Sq Ft No Discounts 33,752.37$ 40,794.22$ 74,546.59$ 95,749.16$ 63,448.84$ 137,995.43$ 42,246.27$
Apartment Building 4 24,183,000.00$ 82,630 Sq Ft Sprinkler & Alarm Discount 20,905.48$ 18,922.57$ 39,828.05$ 59,304.94$ 39,298.83$ 79,126.87$ 19,821.94$
Apartment Building 5 11,597,400.00$ 72,697 Sq Ft No Discounts 10,025.60$ 21,513.71$ 31,539.31$ 28,440.77$ 18,846.47$ 50,385.79$ 21,945.02$
Residential Parcels
Maple Tree Park - House 751,000.00$ 3020 Sq Ft No Discounts 649.22$ 341.22$ 990.44$ 1,841.71$ 1,220.42$ 2,210.86$ 369.15$
Allentown - House 393,000.00$ 1100 Sq Ft No Discounts 339.74$ 179.91$ 519.65$ 963.77$ 638.65$ 1,158.30$ 194.53$
Riverton - House 1 668,000.00$ 2790 Sq Ft No Discounts 577.47$ 315.26$ 892.73$ 1,638.16$ 1,085.54$ 1,978.27$ 340.10$
Foster - House 1 647,000.00$ 3000 Sq Ft No Discounts 559.31$ 338.98$ 898.29$ 1,586.66$ 1,051.41$ 1,949.71$ 363.04$
West Hill - House 604,000.00$ 2980 Sq Ft No Discounts 522.14$ 336.73$ 858.87$ 1,481.21$ 981.54$ 1,840.41$ 359.19$
Riverton - House 2 396,000.00$ 1580 Sq Ft No Discounts 342.33$ 215.60$ 557.93$ 971.13$ 643.52$ 1,201.45$ 230.33$
Tukwila Hill - House 1 452,000.00$ 2100 Sq Ft No Discounts 390.74$ 248.57$ 639.31$ 1,108.46$ 734.53$ 1,373.84$ 265.38$
Foster - House 2 477,000.00$ 2060 Sq Ft No Discounts 412.35$ 246.19$ 658.54$ 1,169.77$ 775.15$ 1,433.70$ 263.93$
Tukwila Hill - House 2 497,000.00$ 3310 Sq Ft No Discounts 429.64$ 374.00$ 803.64$ 1,218.81$ 807.65$ 1,611.30$ 392.48$
Riverton - House 3 508,000.00$ 2020 Sq Ft No Discounts 439.15$ 243.75$ 682.90$ 1,245.79$ 825.53$ 1,508.43$ 262.64$
Thorndyke - House 1 556,000.00$ 2120 Sq Ft No Discounts 480.65$ 249.71$ 730.36$ 1,363.50$ 903.53$ 1,633.89$ 270.39$
McMicken - House 1 587,000.00$ 2700 Sq Ft No Discounts 507.44$ 305.08$ 812.52$ 1,439.52$ 953.91$ 1,766.43$ 326.91$
Tukwila Hill - Condo 1 244,000.00$ 795 Sq Ft No Discounts (Need to Check for Sprinklers)210.93$ 212.43$ 423.36$ 598.37$ 396.51$ 819.88$ 221.50$
Cascade View - Condo 1 234,000.00$ 945 Sq Ft No Discounts 202.29$ 231.57$ 433.86$ 573.85$ 380.26$ 814.12$ 240.27$
McMicken - House 2 575,000.00$ 2600 Sq Ft No Discounts 497.07$ 293.79$ 790.86$ 1,410.10$ 934.41$ 1,725.27$ 315.17$
Thorndyke - House 2 508,000.00$ 3110 Sq Ft No Discounts 439.15$ 351.44$ 790.59$ 1,245.79$ 825.53$ 1,616.12$ 370.33$
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Guide to Property Tax Exemptions for Seniors, Persons with Disabilities,
and Disabled Veterans
If you meet all of the basic qualifications apply online here:
taxrelief.kingcounty.gov
Guide to Property Tax Exemptions for
SENIORS, PERSONS WITH DISABILITIES,
AND DISABLED VETERANS
TAX EXEMPTIONS
Did you know? State law provides a tax benefit program for senior citizens, disabled persons,
and veterans: property tax exemptions and property tax deferrals.
Under the exemption program, the value of your Washington State residence is frozen for
property tax purposes, and you become exempt from all excess and special levies and possibly
regular levies – resulting in a reduction in your property taxes. The exemption is available for
your primary residence and up to one acre of land. A mobile home may qualify, even if the
land where the mobile home is located is leased or rented.
Department of Assessments
Assessor John Wilson
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Guide to Property Tax Exemptions for Seniors, Persons with Disabilities,
and Disabled Veterans
If you meet all of the basic qualifications apply online here:
taxrelief.kingcounty.gov
BASIC QUALIFICATIONS
• Annual household income under $58,423
(excluding VA disability compensation).
• O wn and occupy property as your principal
residence for at least nine months per year,
including nine months during 2019.
• Are over the age of 61, disabled, or a veteran
with at least an 80% total disability rating.
For more information, contact the Assessor’s Office by phone or email.
206-296-3920, exemptions.assessments@kingcounty.gov
Are you a disabled veteran with a less than 80% VA disability rating?
You still might qualify under the disability qualification with the Proof of
Disability Statement from the Department of Assessments signed by your doctor
or your initial award letter from the Social Security Administration.
MOVING?
What if I move?
If you purchase a new home, condo or mobile home, you
may be able to transfer your exemption to the new property.
You would have to reapply and qualify for the exemption at
the new property. A new frozen value will be established for
the new property based on the new information.
What if my children help me with my monthly expenses?
We would not consider gifts from your children as income
but you would need to report the amount to us.
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3
Guide to Property Tax Exemptions for Seniors, Persons with Disabilities,
and Disabled Veterans
If you meet all of the basic qualifications apply online here:
taxrelief.kingcounty.gov
FREQUENTLY ASKED QUESTIONS
Why does my IRS return AGI indicate that I am below $58,423 yet I am still denied
the exemption?
One reason may be that Federal tax law is not the same as the laws governing the Washington
State property tax relief program. While we use the IRS return as a starting point, we do consider
other sources of income that Federal law may not consider taxable.
Two examples of differences between Federal IRS laws and Washington State laws are:
• Under Federal IRS laws, Social Security Benefits may be completely excluded from your
taxable income, or may be considered partially taxable or fully taxable depending on your
individual circumstances.
For the Washington State property tax exemption program, we consider all of your social
security as income, so we must add back any amount that was excluded in the AGI calculation
on your federal return.
• Under Federal IRS laws, capital losses are an allowable deduction from any capital gains you
may have from your investments.
For the property tax exemption program, we do not allow any deductions of any capital losses.
Capital gains are added to the AGI calculation without any loss deduction. Both of these items
could result in your income exceeding the $58,423 income limit for the property tax exemption
program even though the AGI on your tax return is below $58,423.
RENEWALS
Will I need to reapply if I have already been approved for the exemption?
You will be required to reapply for the exemption at least once every 4 years. We will send
a renewal application when it is time for you to reapply. You will need to provide proof of
identification, ownership, and income data when you return the renewal form.
What happens if I fail to respond to a renewal request?
If you fail to return your renewal form and the necessary documents, you will be removed from
the program and you will begin paying the full tax amount based on your property’s current
market value.
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Guide to Property Tax Exemptions for Seniors, Persons with Disabilities,
and Disabled Veterans
If you meet all of the basic qualifications apply online here:
taxrelief.kingcounty.gov
What if I fail to send in my documents with my renewal request?
We will send you an email or letter requesting the missing information. You will have 30 days to
respond. If we still do not hear back you will receive a second notice, your exemption will be removed
and you will begin paying the full tax amount based on your property’s current market value.
FROZEN VALUES
What is a frozen value?
The market value of your home is “frozen” as of January 1st of the initial year you qualify for the
property tax exemption. For each year after your initial approval, you will be taxed on either the
frozen value or current market value if lower.
Can my original frozen value go higher?
Yes. If your home undergoes new construction or a remodel, say a new bedroom, the value for the
new addition or remodel is added to your frozen value. This new total will become your new frozen
taxable value.
INCOME
What if I am over the income limit for more than one year?
If your income has increased for more than one year, you will be removed from the exemption
program and will begin paying the higher tax rate on your property’s current market value. If, at some
point in the future, your income is again below the $58,423 limit, you can reapply to the program.
If you are off the program for more than one year, a new frozen value will be determined for the year
you reapply.
What if I have a change in income and it is not time for me to renew my application?
It is your obligation to let the Exemption Unit know when you have any life-altering situation
affecting your exemption, such as new income source or change in ownership. Please call us at
206-296-3920 or write to us so we can discuss the situation.
For example:
• If you reach 70.5 years of age, you may need to start drawing on your IRA or Annuity funds.
This could result in a change to your exemption level.
• If you lose a spouse or partner, this could result in a change in your exemption level.
FREQUENTLY ASKED QUESTIONS continued
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Guide to Property Tax Exemptions for Seniors, Persons with Disabilities,
and Disabled Veterans
If you meet all of the basic qualifications apply online here:
taxrelief.kingcounty.gov
• If you give all or a portion of your property to someone else, this could result
in a change in your exemption level.
• If in doubt about whether your changing circumstances could affect your
exemption level, please contact our office for assistance at 206-296-3920.
What happens if I have been on the program for several years and now do not qualify?
If your income goes over the $58,423 limit, you must be removed from the program for the one
year you do not qualify. You will pay the higher taxes on your current market value for that one
year. However, you may reapply the next year and may be reinstated at your original frozen value
if your income returns to a level below the $58,423 in that next year. You would only pay the
higher taxes for the one year that you do not qualify.
For example:
Your annual income goes over the $58,423 limit due to a one-time IRA disbursement. We will
remove you from the program for that year and you will pay your regular tax bill based on your
current market value. If your income returns to levels below the $58,423 limit, you can reapply
for the next tax year, return to the original frozen value and start receiving the reduction in taxes
again.
What do I do if I have no income or am extremely low income?
Even if you have no income, you are paying your expenses with some funding source. In many
cases seniors use reverse mortgages, receive funds from their children or use savings accounts
to pay their household expenses. While
these sources are not considered “income”
in the calculation of your disposable income,
they are a source of funds and you must
report the source and the amount to us.
It is acknowledged that there are inherent
costs to living and maintaining a home.
Items such as food, gas for the car and
utilities are paid at the very least.
FREQUENTLY ASKED QUESTIONS continued
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Guide to Property Tax Exemptions for Seniors, Persons with Disabilities,
and Disabled Veterans
If you meet all of the basic qualifications apply online here:
taxrelief.kingcounty.gov
THE APPLICATION PROCESS AND IRS QUESTIONS
What if I need assistance filing the online application or have questions about
the documentation you require?
Please call our office at 206-296-3920. We have experienced exemptions staff ready
and willing to assist you in completing your forms. They can also answer questions about
which documents you should provide.
Once I have applied for an exemption, when will I hear from your office?
We will send an email or letter notifying you that we have your application. Depending
on the current workload, you should receive another email or letter within 4-6 weeks.
This second message will state that you have: (1) been approved for an exemption;
(2) been denied the exemption (we will provide you with your appeal rights); or
(3) provided insufficient documentation and we still need more information.
Why do you want my IRS return?
Federal tax laws and the property tax relief laws are
different. However, we use the IRS return as a starting
point to calculate and verify your income and to
determine your exemption level.
What if I do not file an IRS return?
We will still need verification of your income sources.
We will request information such as bank deposits,
1099s, reverse mortgage information, social security
statements or other year-end statements that provide
information on how you pay your daily, monthly and
yearly expenses.
Department of Assessments
Assessor John Wilson
kingcounty.gov/assessor
Alternative formats available.
Please call 206-296-3920 or TTY:711
KCIT Design and Civic Engagement: 999618