HomeMy WebLinkAboutFIN 2023-10-23 Item 1A - Ordinances - 2024 General Tax Levy / Increase Regular Tax LevyCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
FROM: Vicky Carlsen, Finance Director
BY: Aaron Williams, Fiscal Manager
CC: Mayor Ekberg
DATE: October 17, 2023
SUBJECT: 2024 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 2024 by November 30, 2023.
BACKGROUND
A Public Hearing for adoption of the 2024 property tax levy is required by RCW 84.55.120. The
Hearing is scheduled for November 13, 2023.
The City was notified on October 5, 2023 that the assessed value for Tukwila for 2024 is projected
to be $9,267,988,624.
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 2024 debt service is $4,800,000.
DISCUSSION
Levy Amount
The assessed value and the allowable levy are subject to change until final levy rate
determination. A levy amount of $18,400,000 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 $4,800,000 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 $3.56297. However, due to the 1 % limitation, the Levy Limit
Worksheet received from King County estimates the City's preliminary levy rate for 2024 at
$1.94136 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 13,
2023 Committee of the Whole meeting and subsequent November 20, 2023 Regular Meeting. A
public hearing has also been scheduled at the November 13, 2023 Committee of the Whole.
ATTACHMENTS
Draft Ordinances (2)
Preliminary Levy Limit Worksheet-2024 Tax Roll
2
https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Finance/Info Memo - 2024 Taxes with Excess levy.docx
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, 2024, 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 2024 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 2024, an excess property tax levy in the amount of $4,535,975 for the Bonds must be
levied in year 2023, and collected in year 2024; and
WHEREAS, the final assessed valuation calculation has been determined;
CC: Legislative Development\General Tax Levy + Excess Levy 10-17-23
V.Carlsen Review 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 $9,267,988,624,
current taxes for the ensuing year commencing January 1, 2024, in the amounts specified
below:
Regular Tax Levy
Excess Tax Levy
Rate Amount
$1.94 $ 18,400,000
$0.52 $ 4,800,000
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, 2024. The regular tax levy includes new construction and
improvements to property, estimated to be $221,385, a re -levy of prior year refunds in the
estimated amount of $81,227, 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, 2024.
CC: Legislative Development\General Tax Levy + Excess Levy 10-17-23
V.Carlsen Review 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 , 2023.
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 10-17-23
V.Carlsen Review by Andy Youn Page 3 of 3
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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, 2024, 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 13, 2023, 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 2024, 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 2024 levy in
the amount of $154,351, which is a percentage increase of 0.88% 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 10-4-23
V. Carlsen Review 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, 2024.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2023.
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 10-4-23
V. Carlsen Review by Andy Youn
Ordinance Number:
Page 2 of 2
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WS Utilized by District
TAXING DISTRICT
PRELIMINARY LEVY LIMITATIONS WORKSHEET 10.12.2023
Tukwila
2023
Levy for 2024 Taxes
1 /0/ 1900
IPD: 1.03670
A. Highest regular tax which could have been lawfully levied beginning with the 1985 levy (refund levy not included).
Year 2023 $17,514,762 x 101.000% = $17,689,910
Highest Lawful Levy Since 1985 Limit Factor/Max Increase 101%
B. Current year's assessed value of new construction, improvements, and wind turbines, solar, biomass, and geothermal facilities in original districts
before annexation occurred times last year's levy rate (if an error occurred or an error correction was made in the previous year, use the rate that
would have been levied had no error occurred).
$113,689,510 x 1.94728 + $1,000 = $221,385
A.V. Last Year's Levy Rate
C. Tax Increment finance area increment AV increase (RCW 84.55.010(1)€) (value included in B & D cannot be included in C)
$0 x 1.94728 + $1,000 = $0
A.V. Last Year's Levy Rate
Current year's state assessed property value less last year's state assessed property value. The remainder is to be multiplied by last year's regular
D' levy rate (or the rate that should have been levied).
$252,416,094 - $252,416,094 = $ -
Current Year's A.V. Previous Year's A.V. Remainder
$0 x 1.94728 + $1,000 = $0.00
Remainder from Line C Last Year's Levy Rate
E. Regular property tax limit: A+B+C+D = $17,911,295
Parts F through H are used in calculating the additional levy limit due to annexation.
To find the rate to be used in F, take the levy limit as shown in Line E above and divide it by the current assessed value of the district, excluding the
F. annexed area.
$17,911,295 + $9,267,988,624 x $1,000 = 1.93259
Total in Line E Assessed Value Less Annexed AV
G. Annexed area's current assessed value including new construction and improvements, times the rate in Line E.
$0 x 1.93259 + $1,000 = $0.00
Annexed Area's A.V. Rate in Line F
H. Regular property tax limit including annexation E+G = $17,911,295
I. Statutory maximum calculation
Only enter fire/RFA rate, library rate, & firefighter pension fund rate for cities annexed to a fire/RFA or library, or has a firefighters pension fund.
3.60000 - 0.00000 - 0.26203 + 0.22500 = 3.56297
District base levy rate Fire or RFA Rate Library Rate Firefighter Pension Fund Statutory Rate Limit
$9,267,988,624 x 3.56297 + $1,000 = $33,021,565
A.V. of District Statutory Rate Limit Statutory Amount
J. Highest Lawful Levy For This Tax Year (Lesser of H and I) = $17,911,295
K New highest lawful levy since 1985 (Lesser of H & I minus C, unless A (before limit factor increase) is greater than $17,911,295
I or H minus C, then A before the limit factor increase
L. Lesser of I and J $17,911,295
M. Refunds $81,227
N. Levy Corrections Year of Error: 0
1. Minus amount over levied (if applicable) $0.00
2. Plus amount under levied (if applicable) $0.00
O. Total: L+M+/-N (unless voted rate) $17,992,522
P. Tax Base For Regular Levy
1. Total district taxable value (including state -assessed property, and excluding
boats, timber assessed value, and the senior citizen exemption for the regular levy) $9,267,988,624
Q. Tax Base for Excess and Voted Bond Levies
2. Less assessed value of the senior citizen exemption of less than $40,000 income or 65%
of the median household income for the county based on lower of frozen or market value. $30,753,160
3. Plus Timber Assessed Value (TAV) $0
4. Tax base for excess and voted bond levies (1-2+3) $9,237,235,464
R. Increase Information
1. Levy rate based on allowable levy 1.94136
2. Last year's ACTUAL regular levy $17,535,559
3. Dollar Increase over last year other than New Construction (-) Annexation $154,351
4. Percent Increase over last year other than New Construction (-) Annexation 0.88021%
REV 64 007
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