HomeMy WebLinkAboutReg 2024-11-04 Item 7C - Ordinance - 2025 General Tax LevyCOUNCIL AGENDA SYNOPSIS
nitials
Meeting Date
Prepared by
Mayor's review
Council review
10/28/24
Tony
11/04/24
Tony
ITEM INFORMATION
ITEM No.
7.C.
STAFF SPONSOR: TONY CULLERTON
ORIGINAL AGENDA DATE: 10/28/24
AGENDA ITEM TITLE Ordinances adopting 2024 property tax levy.
CATEGORY ® Discussion
Mt Date 10/28/24
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
Ordinance
Mtg Date 11 /4/24
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ 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 adjust the regular levy
from the previous year and adopt both the regular levy and excess levy for 2025.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 10/28/24 COMMITTEE CHAIR: N/A
RECOMMENDATIONS:
SPONSOR/ADMIN. Finance
COMMIFIEE Discussion only
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
10/28/24
Forwarded to next Regular Meeting
11/04/24
MTG. DATE
ATTACHMENTS
10/28/24
Informational Memorandum dated 10/28/24
Draft Ordinances (2)
Preliminary Levy Limit Workshet - 2025 Tax Roll
Levy Public Hearing PowerPoint
11/04/24
Final Ordinances
193
194
City of Tukwila
Washington
Ordinance No.
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, 2025, 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 2025 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 $2.325,
which is comprised of the $3.60 City base rate, less $0.50 for the Library District, less
$1.00 for the Regional Fire Authority, plus $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 2025, an excess property tax levy in the amount of $4,931,725 for the Bonds must be
levied in year 2024, and collected in year 2025; and
WHEREAS, the final assessed valuation calculation has been determined;
2024 Legislation: General Tax Levy + Excess
Version: 10/14/24
Staff: A. BeMiller
Page 1 of 3
195
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 $9,528,451,965,
current taxes for the ensuing year commencing January 1, 2025, in the amounts specified
below:
Regular Tax Levy
Excess Tax Levy
Rate Amount
$1.25 $ 11,999,228
$0.52 $ 4,931,725
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, 2025. The regular tax levy includes new construction and
improvements to property, estimated to be $45,165, a re -levy of prior year refunds in the
estimated amount of $60,651, 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, 2025.
2024 Legislation: General Tax Levy + Excess
Version: 10/14/24
Staff: A. BeMiller
196
Page 2 of 3
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2024.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City Clerk Thomas McLeod, 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
2024 Legislation: General Tax Levy + Excess
Version: 10/14/24
Staff: A. BeMiller
Page 3 of 3
197
198
City of Tukwila
Washington
Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, RELATING TO PROPERTY
TAXES; DECREASING THE 2025 GENERAL PROPERTY
TAX LEVY FOR THE CITY OF TUKWILA REGULAR LEVY
FROM THE PREVIOUS YEAR, COMMENCING JANUARY 1,
2025, ON ALL PROPERTY, BOTH REAL AND PERSONAL,
IN COMPLIANCE WITH RCW 84.55.120; PRESERVING
FUTURE LEVY CAPACITY; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, the City of Tukwila has properly given notice of a public hearing held on
October 28, 2024, to consider the ad valorem tax levy for 2025 collections pursuant to RCW
84.55.120; and
WHEREAS, the King County Assessor provided a preliminary estimated assessed
value of taxable real property in the City of Tukwila of $9,561,329,345, which is subject
to adjustment for senior citizens exemptions as provided for in RCW 84.36.381 and for
omitted assessments as provided for in RCW 84.40.080; and
WHEREAS, under state law, a local government may not increase its property tax
collections by more than 1 % from the previous year or the change in Implicit Price Deflator
(IPD), whichever is less; and
WHEREAS, the IPD rate of inflation for property tax collections due in 2025 is 2.57%;
and
WHEREAS, the City Council desires to provide property tax relief to fulfill the
commitment made to voters upon annexation of the City into the Puget Sound Regional
Fire Authority; and
WHEREAS, after such hearing and after duly considering all relevant evidence and
testimony presented, the City Council has determined that the City of Tukwila will reduce
property tax collections from the previous year's actual collections by $6,000,000, or
33.33%, which excludes any increase resulting from additions of new constructions and
2024 Legislation: Regular Tax Levy Decrease
Version: 10/29/24
Staff: A. BeMiller
Page 1 of 3
199
improvements to property, any increase in the value of state -assessed property, and
amounts authorized by law as a result of any annexations that have occurred and refunds
made, in order to discharge the expected expenses and obligations of the City in its best
interest; and
WHEREAS, the City Council desires to protect the City's future levy capacity pursuant
to RCW 84.55.092, calculated in future years as though the maximum lawful levy amount
allowed by state law had been levied; and
WHEREAS, the City is required to certify the amount to be raised by taxation on
assessed valuation with the clerk of the county legislative authority by November 30,
2024;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. The annual amount of general property tax levy necessary to raise the
amount of revenues required by the City of Tukwila for expenditure during calendar year
2025 is hereby levied upon all real and personal property subject to taxation in the City of
Tukwila as set forth in the table below.
2025 GENERAL PROPERTY TAX LEVY
Use of Funds
Estimated Levy Rate
Estimated Levy Amount
General Levy
1.25497
$11,999,228
Section 2. The estimated general property tax levy amount set forth in Section 1 is
hereby levied upon all real and personal property in accordance with certified assessed
values and completed tax rolls of the City of Tukwila for collection in 2025. That estimated
general property tax levy amount is intended:
(a) to include 66.66524% of the City's last year's actual regular levy amount of
$17,999,228;
(b) to include any additional amounts allowed under (i) the new construction,
improvements to property and state -assessed property provisions of RCW
84.55.010 and (ii) as provided pursuant to RCW 84.55.070, the refund provisions
of chapters 84.68 and 84.69 RCW; and
(c) to exclude any amounts in excess of the 2025 maximum levy amount resulting from
application of the limit factor, plus those additional amounts described in paragraph
(b) above;
and shall be adjusted by the King County Assessor when property values are certified.
Section 3. Any unused general property tax levy capacity for the 2025 tax year is
reserved for future levy as provided by RCW 84.55.092, calculated in future years as though
the maximum lawful levy amount allowed by state law had been levied.
2024 Legislation: Regular Tax Levy Decrease
Version: 10/30/24
Staff: A. BeMiller
200
Page 2 of 3
Section 4. 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 5. 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 6. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City and shall be in full force and effect on January 1,
2025.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2024.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City Clerk Thomas McLeod, 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
2024 Legislation: Regular Tax Levy Decrease
Version: 10/29/24
Staff: A. BeMiller
Page 3 of 3
201