HomeMy WebLinkAboutReg 2025-10-20 Item 5B / 6B - Powerpoint Shown at Meeting - Ordinance Adopting 2026 Property Tax LevyPublic Hearing 2026 Property Tax
Levy
City Council Presentation
Finance Department
October 20, 2025
Purpose of Presentation
• Overview of 2026 Property Tax Levies
• Regular (General) and H;xcess (Debt Service) Levies
• S6 million in unlevied banked capacity
Overview of 2026 Property Tax
Levies
• Regular Levy — Supports city services
• Fxcess Levy — Pays voter -approved bond debt
• Rates set by King County Assessor based on certified AV
Regular Property Tax Levy
Assessed Valuation (2025 for 2026 collections):
Maximum Allowable Levy: 818.46M
Proposed 2026 Levy: 512.46M
9.83B
Preliminary Rate: $1.27 per 51,000 Assessed Valuation
® Proposed 2026 Levy (512.4M)/Assessed Value (59.8 B) x 1,000
$1.27
Prior year rate:
1.24
Fxcess (Debt Service) Levy
• Funds Public Safety Plan Bonds (2016 & 2019)
• Bonds: $33.0 mill in 2016 + additional 2019 issuance
• 2026 Levy requirement for debt service payment
Final
37.8 mill
5.06M
aturities: 2036 (2016 bonds), 2039 (2019 bonds)
Impact to Property Owners
Example - Home Value: $600,000
600,000/1,000 = $600
600 x 1.2678 = S762
600 x 0.52 = 5312
Regular Levy: S1.27 -+ $762
F(;xcess Levy: 50.52 312
Total City Portion:
1,074/year
Impact to Property Owners
2024 % 2025 %
Tukwila School District 32.6% 33.5%
State Schools 23.4% 20.8%
City of Tukwila 22.3% 15.9%
King County 12.4% 12.6%
Puget Sound Regional Fire 0.0% 8.3%
Other 5.3% 5.4%
Library 2.7% 2.3%
Tukwila Pool 1.4% 1.4%
Total 100.0% 100.0%
Other:
County Flood Zone
Port of Seattle
EMS
Sound Transit
Diff
0.9%
-2.6%
-6.4%
0.2%
8.3%
0.1%
-0.4%
0.0%
Property Tax Budget
2025 2026
Highest Lawful Levy 17,999,228 18,459,905
Unlevied Amount (6,000,000) (6,000,000)
Proposed Levy - Property Tax Revenue 11,999,228 12,459,905
Assessed Value 9,650,575,475 9,827,593,190
Estimated Levy Rate 1.24 1.27
City Portion of Total Property Tax
15.9%
• Revenue capacity (regular levy) available but not
collected
• $6,000,000 not levied and banked
• Reflects fiscal restraint and taxpayer consideration
Process & Next Steps
1. Public Hearing (October 2025)
2. Council Review (October / November 2025)
3. Adoption of Levy Ordinances (November 2025)
Two Ordinances:
• Regular Property Tax Levy
• h;xcess Property Tax Levy
Summary
• Regular Levy supports essential services (1% limit)
• Excess Levy funds Public Safety debt
6M banked ca
ac
ty reflects fiscal prudence
• Compliant with RCW 84.55 and 84.52