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HomeMy WebLinkAboutReg 2024-11-18 Item 7C - Ordinances - 2025 General Tax Levy / Decrease 2025 General Property Tax LevyCOUNCIL A GRNDA SYNOPSIS Initials Meeting Date Prepared (y 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 2025 property tax levy. CATEGORY 11 Discussion Mtg Date 10/28/24 ❑ Motion Mtg Date E Resolution Mtg Date Ordinance Mtg Date 11 /4/24 ❑ Bid Award Mtg Date E Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Adntin Svcs ❑ DCD 11 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 ❑ LTAC DATE: 10/28/24 Community Svcs/Safety [J Finance & Governance [J Planning & Community Dcv. Arts Comm. El Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONSOR/ADMIN. Finance CoMMII"IEE N/A 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 Forwarded to next Regular Meeting 11/18/24 MTG. DATE ATTACHMENTS 11/18/24 Final Ordinance levying the general taxes Ordinance decreasing the 2025 general property tax levy (revised after 11/4 Regular Mtg) 69 70 Washington Ordi ce 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 71 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 72 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 73 74 NOTE: Shaded text denotes changes made after the Regular Meeting packet of November 4, 2024. See Sections 1 & 2. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RELATING T ';s PROPERTY TAXES; DECREASING THE 2025 GEN ` PROPERTY TAX LEVY FOR THE CITY OF TUKWI GULAR LEVY FROM THE PREVIOUS YEAR, COM 4 1CI NUARY 1, 2025, ON ALL PROPERTY, BOTH �AL AND - SONAL, IN COMPLIANCE WITH RC 4 55 �; 0; PR = ERVING FUTURE LEVY CAPACI OVIDING FOR SEVERABILITY; AND ESTABLI � G AN EFFECTIVE DATE. WHEREAS, the City of Tukwil October 28, 2024, to consider t 84.55.120; and WHEREAS, the Ki value of taxable rea to adjustment for omitted assessmen gl notice of a public hearing held on x levy for 2025 collections pursuant to RCW ssessor provided a preliminary estimated assessed ity of Tukwila of $9,561,329,345, which is subject exe ptions as provided for in RCW 84.36.381 and for for in RCW 84.40.080; and WHEREAS, under sr aw, 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: 11/7/24 Staff: A. BeMiller Page 1 of 3 75 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 general property tax levy 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 E CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The annual amount of general prop amount of revenues required by the City of Tukwi 2025 is hereby levied upon all real and persona Tukwila as set forth in the table below. vy necessary to raise the expene during calendar year subjec taxation in the City of sd Value AV fqection s in 2025 9 650,575 457 2024 Actual Collections °1,92�7 20?5nI uda od ©Ile2 'oil 99 27 Doha: ( Qec mease from 2024 Collections (6 000,000) Pe cent opDec ease from 2024 Collections ; 2.33476%,) Estes Lev Ra a�sr �AV t 242 I Il ect'2ans ___ _..a_ A . A 4 t7 Asioftak Use of Funds General L Estimated Levy Rate 1.25497 Estimated Levy Amount $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 a 66.665213133476% decrease from of —the City's last year's 24 actual regular levy amount of $17,999,2278; (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 2024 Legislation: Regular Tax Levy Decrease Version: 11/7/24 Staff: A. BeMiller 76 Page 2 of 3 application of thglimit factor, plus those additional amounts described in paragraph (b) above; and shall be adjusted by the King County A lessor when property values are certified s the Assessor shall aclius and ,Upon cefication rtiof property values for 2025c,ollectlor�"Em fipaloze t o levy ratep r 1,000 nof AssessedValuationto meet the revenues a „_ovi dun as rovlde Sections .i and 2 above. 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. Section 4. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code rer are authorized to make necessary corrections to this ordinance, including the ' orrection of clerical errors; references to other local, state or federal laws, codes •r regulations; or ordinance numbering and section/subsection numbering. Section 5. Severability. If any section, s phrase of this ordinance or its application to an invalid or unconstitutional for any reason by a invalidity or unconstitutionality shall nct remaining portions of this ordinance or i Section 6. Effective Date in the official newspaper of t 2025. paragra. , sentence, clause or or situation should be held to be of competent jurisdiction, such lidity or constitutionality of the any other person or situation. e or a summary thereof shall be published be in full force and effect on January 1, PASSED BY TH Oi IL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting ATTEST/AUTHENTI Andy Youn, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney 2024 Legislation: Regular Tax Levy Decrease Version: 11/7/24 Thomas McLeod, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Staff: A. BeMiller Page 3 of 3 77