HomeMy WebLinkAboutReg 2025-11-03 Item 6B - Ordinances - 2026 Property Taxes - Regular Levy & Excess LevyCOUNCIL AGENDA SYNOPSIS
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Meeting Date
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Council review
10/20/25
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11/03/25
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ITEM INFORMATION
ITEM NO.
6.B.
STAFF SPONSOR: AARON BEMILLER
ORIGINAL AGENDA DATE: 10/20/25
AGENDA ITEM TITLE Ordinances adopting 2026 property tax levy.
CATEGORY ® Discussion
Mtg Date 10/20/25
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
® Ordinance
Mtg Date 11/10/25
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PIV
SPONSOR'S
SUMMARY
The City Council is being asked to approve two ordinances that will adopt both the regular
(general) and excess (debt service) levies for 2026.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC
DATE:
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMI 1'1 EE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
$
APPROPRIATION REQUIRED
$
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
10/20/25
MTG. DATE
ATTACHMENTS
10/20/25
Informational memo dated 10/20/25 ( revised 10/27/25)
11/03/25
Draft ordinances (2)
Minutes from the 10/27 Finance & Governance Committee Meeting
77
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, RELATING TO PROPERTY
TAXES; FIXING THE 2026 GENERAL PROPERTY TAX
LEVY FOR THE CITY OF TUKWILA REGULAR LEVY,
COMMENCING JANUARY 1, 2026, 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 20, 2025, to consider the ad valorem tax levy for 2026 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 $9,827,593,190, 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 IPD (Implicit Price
Deflator), whichever is less; and
WHEREAS, the IPD rate of inflation for property tax collections due in 2026 is 2.44%;
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 increase
property tax collections from the previous year's actual collections by $460,677, or 3.84%,
which excludes any increase resulting from additions of new constructions and
improvements to property, any increase in the value of state -assessed property, and
amounts authorized by law as a result of any annexations that have occurred and refunds
2025 Legislation: 2026 Regular Tax Levy
Version: 10/8/25
Staff: A. BeMiller
78
Page 1 of 3
made, in order to discharge the expected expenses and obligations of the City in its best
interest; and
WHEREAS, the City Council desires to protect the City's future levy capacity pursuant
to RCW 84.55.092, calculated in future years as though the maximum lawful levy amount
allowed by state law had been levied; and
WHEREAS, the City is required to certify the amount to be raised by taxation on
assessed valuation with the clerk of the county legislative authority by November 30,
2025;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. General 2026 Property Tax Levy Authorized. The annual amount of
general property tax levy necessary to raise the amount of revenues required by City of
Tukwila for expenditure during calendar year 2026 is hereby levied upon all real and
personal property subject to taxation in the City of Tukwila as set forth in the table below.
Est. Assessed Value (AV) for collections in 2026
2026 Highest Lawful Collections
2026 Budgeted Collections
Dollar ($) Decrease from 2026 Highest Lawful Collections
% Decrease from 2026 Highest Lawful Collections
Est. Levy Rate per $1,000 AV for 2026 Collections
$ Increase over 2025 Collections
% Increase over 2025 Collections
9,827,593,190
18,459,905
12,459,905
(6,000,000)
-32.50288%
1.26785
460,677
0.03839
Section 2. The 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 2026. That estimated property tax levy amount is intended:
(a) to include 67.49712% of the City's 2026 highest lawful levy amount of
$18, 459, 905;
(b) to include any additional amounts allowed under (i) the new construction,
improvements to property and state-assed property provisions of RCW 84.55.010
and (ii) as provided pursuant to RCW 84.55.070, the refund provisions of Chapter
84.68 and 84.69 RCW, and
Upon certification of property values for 2026 collections, the Assessor shall adjust and
finalize the levy rate per $1,000 of Assessed Valuation to meet the revenues as provided
in Sections 1 and 2.
2025 Legislation: 2026 Regular Tax Levy
Version: 10/8/25
Staff: A. BeMiller
Page 2 of 3
79
Section 3. Any unused general property levy capacity for the 2026 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 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 take effect and be in full force on January
1, 2026.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2025.
ATTEST/AUTHENTICATED:
Andy Youn-Barnett, CMC, City Clerk Thomas McLeod, Mayor
APPROVED AS TO FORM BY: Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Office of the City Attorney
2025 Legislation: 2026 Regular Tax Levy
Version: 10/8/25
Staff: A. BeMiller
Ordinance Number:
Page 3 of 3
80
AN ORDINANCE OF THE CITY OF TUKWILA, WASHINGTON,
SETTING THE VOTER APPROVED EXCESS BOND LEVY
AMOUNT FOR BUDGET YEAR 2026 FOR THE PURPOSE OF
PAYING DEBT SERVICE ON THE CITY'S UNLIMITED TAX
GENERAL OBLIGATION BONDS ISSUED IN 2016 AND 2019 TO
IMPLEMENT THE CITY'S PUBLIC SAFETY PLAN, AS REQUIRED
BY LAW; PROVIDING FOR CORRECTIONS AND SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on November 8, 2016, voters approved a $77.385 million bond measure
to implement the City's Public Safety Plan to include funding a Justice Center, rebuilding
three (3) fire stations, and providing fire apparatus and life -safety equipment replacement;
and
WHEREAS, the City, pursuant to the Bond Authorization and Ordinance No. 2514
adopted on November21, 2016, authorized the issuance and sale of $36,500,000 principal
amount of the City's Unlimited Tax General Obligation Bonds, and pursuant to Ordinance
No. 2610 adopted on July 15, 2019, authorized the issuance and sale of $40,885,000
principal amount of the City's Unlimited Tax General Obligation Bonds, 2019 (collectively,
the "Bonds"); and
WHEREAS, in 2016, the City issued debt in the amount of $32,990,000 with final
maturity in 2036, and in 2019, issued debt in the amount of $37,770,000 with a final maturity
in 2038; and
WHEREAS, the City has determined an excess property tax levy in the amount of
$5,059,475 must be levied in the year 2025 and collected in the year 2026 to provide the
funds necessary to pay the debt service requirements on the Bonds in the year 2026; and
WHEREAS, on October 20, 2025, the Tukwila City Council, following adequate public
notice, held a public hearing to consider the City of Tukwila Excess Bond levy for 2026
collections; and
2025 Legislation: 2026 Excess Levy
Version: 10/8/25
Staff: A. BeMiller
Page 1 of 3
81
WHEREAS, pursuant to RCW 84.52.070(2), 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 each year;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
HEREBY ORDAINS AS FOLLOWS:
Section 1. Excess Tax Levy Authorized. A voter approved excess levy is authorized
to be collected in 2026 to pay debt service on the City's Unlimited Tax General Obligation
("UTGO") Bonds. The levy for collections in 2026 is $5,059,475, for debt service payments
in 2026, as shown below:
2016 UTGO Bond Debt Service $2,737,925
2019 UTGO Bond Debt Service $2,321,550
Total Excess Levy $5,059,475
The excess levy is levied for the purpose of making debt service payments on the UTGO
Bonds sold to finance costs related to implementation of 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 of 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 five
days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a
Regular Meeting thereof this day of , 2025.
2025 Legislation: 2026 Excess Levy
Version: 10/8/25
[signature page to follow]
Staff: A. BeMiller
82
Page 2 of 3
ATTEST/AUTHENTICATED:
Andy Youn-Barnett, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
2025 Legislation: 2026 Excess Levy
Version: 10/8/25
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
83
Finance & Governance Committee Minutes October27, 2025
D. 2026 Property Tax Ordinances
Staff is seeking approval of the annual regular and excess levy ordinances.
Item(s) for follow-up:
• Provide the amounts of property tax collected by the City in 2023 and 2024.
Committee Recommendation
Unanimous approval pending responses. Forward to November 3, 2025 Regular Meeting.
E. 2025 3rd Quarter Financial Report
Staff presented the report.
Item(s) for follow-up:
• Provide information about the grant reimbursement for the Crystal Springs lighting
project.
Committee Recommendation
Discussion only.
MISCELLANEOUS
Item(s) for follow-up:
• Provide informational presentation on franchise fees, including the historic rate of
increase.
The meeting adjourned at 6:25 p.m.
AP
Committee Chair Approval
84