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HomeMy WebLinkAboutFS 2008-11-04 COMPLETE AGENDA PACKET w City of Tukwila Distribution: J. Duffle M. Miotke P. Linder J. Morrow O ti Z D. Robertson G. Labanara Finance Safety Committee K. Hougardy N. Olivas Q j Mayor Haggerton J. Pace o Dennis Robertson, Chair R. Berry D. Speck C. O'Flaherty R. Still B. Fletcher Tomaso 1908 o Pam Linder D. Haynes J Walden Kathy Hougardy S. Hunstock C. Parrish M. Hart B. Arthur V. ]essop K. Narog(cover) S. Kerslake S. Kirby (email) T. Kinlow S. Norris (email) K. Matei AGENDA TUESDAY, NOVEMBER 4, 2008 CONFERENCE ROOM ##3; 5 PM Item Action to be Taken Page 1. PRESENTATIONS 2. BUSINESS AGENDA a. Tax Levy ordinances; a. Forward to 11/10 C.O.W. Pg.1 Shawn Hunstock, Finance Director, and 11/17 Regular. b. Sales Tax Report; b. Information only. Pg.7 Shawn Hunstock, Finance Director, c. Identification of evaluation criteria for c. Discussion. Pg.15 animal control alternatives; Dennis Robertson, Committee Chair 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Tuesday, November 18, 2008 Future Aaenda Items: Council Goal #3; work together in cooperation with nearby cities to address common problems (safety) in the Highway 99 corridor and Military Road. Animal Control status monitoring. Safety in Overnight Lodging (on hold pending outcome of court case). Panhandle ordinance. The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 for assistance. City of Tukwila 6200 Southcenter Boulevard 0 Tukwila, Washington 98188 Jim Haggerton, Mayor INFORl\1ATIONAL MEMORANDU1\1 To: Mayor Haggerton Finance & Safety Committee Shawn Hunstock, Finance Director "M- From: Date: October 28,2008 Subject: 2009 Proposed Property Tax Levy In preparation for our discussion at the November 4, 2008 Finance & Safety Committee meeting, I have attached a number of documents for your revie\v related to establishing the 2009 property tax levy. Specifically, you will fmd. a 2009 Preliminary Levy Limit vV orksheet prepared by the King County Assessor's Office; an Excel spreadsheet that I prepared to develop an estimated levy value, and finally (2) draft ordinances establishing the 2009 property tax levy. Cities are required to submit their levy requests to the Metropolitan King County Council by November 28, 2008. As has been the case in past years, the County will not have final property valuations prior to the cutoff date. Given the preliminary nature of the valuations and consideration of the 1% levy base growth constraint, I have set the recommended levy amount slightly higher than the value I calculated for the estimated allowable levy. In the final analysis the County is required to adjust downward to the maximum allowable amount, while conversely it 11lay not make an upward adjustment. I look forward to seeing each of you on November 4th. Phone: 206-433-1800 e City Hall Fax: 206-433-1833 · www.cUukwila.wa.us PRELIMINARY LEVY LIMIT WORKSHEET 2009 Tax Roll TAXING DISTRICT: City of Tukwila The following determination of your regular levy limit for 2009 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District Using Limit Factor For District 11,395,893 1.0100 11,509,852 267,710,920 0 267,710,920 2.56911 687,779 12,197,631 0 12,197,631 5,123,164,972 2.38088 0 0 0 12,197,631 12,197,631 11,466 12,209,097 12,209,097 2.38312 11,400,000 109,852 0.96% 10/28/08 4:39 PM LevyLimitWS.doc (Note 1) Estimated Library rate: 0.36029 Calculation of Limit Factor Levy Levy basis for calculation: (2008 Limit Factor) (Note 2) x Limit Factor Levy Local new construction Increase in utility value (Note 3) Total new construction x Last year's regular levy rate New construction levy Total Limit Factor Levy Annexation Levy Omitted assessment levy (Note 4) Total Limit Factor Levy new lid lifts Regular levy assessed value less annexations Annexation rate (cannot exceed statutory maximum rate) x Annexation assessed value Annexation Levy Lid lifts, Refunds and Total First year lid lifts Limit Factor Levy Total RCW 84.55 levy Relevy for prior year refunds (Note 5) Total RCW 84.55 levy refunds Levy Correction: Year of Error +or ALLOWABLE LEVY (Note 6) Increase Information (Note 7) Levy rate based on allowable levy Last year's ACTUAL regular levy Dollar increase over last year other than N/C Annex Percent increase over last year other than N/C Annex Calculation of statutory levy Regular levy assessed value (Note 8) x Maximum statutory rate Maximum statutory levy +Omitted assessments levy Maximum statutory levy Limit factor needed for statutory levy ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE. Please read carefully the notes on the reverse side. Using Implicit Price Deflator 11,395,893 1.0453 11,911,785 267,710,920 0 267,710,920 2.56911 687,779 12,599,564 0 12,599,564 5,123,164,972 2.45933 0 0 0 12,599,564 12,599,564 11,466 12,611,030 12,611,030 I 2.46157 11,400,000 511,785 4.49% 5,123,164,972 3.23971 16,597,569 0 16,597,569 Not usable Notes: 1) Rates for fire districts and the library district are estimated at the time this worksheet is produced. Fire district and library district rates affect the maximum allo\vable rate for cities annexed to them. These rates will change, mainly in response to the actual levy requests from the fire and library districts. Hence, affected cities may have a higher or lower allowable levy rate than is shown here when final levy rates are calculated. 2) This figure shows the maximum allowable levy, which may differ from any actual prior levy if a district has levied less than its maximum in prior years. The maximum allO\vable levy excludes any allowable refund levy if the maximum was based on a limit factor. The maximum allO\,vable levy excludes omitted assessments if the maximum was determined by your district's statutory rate limit. If your district passed a limit factor ordinance in the year indicated, that limit factor would help determine the highest allowable levy. However, if the statutory rate limit was more restrictive than your stated limit factor, the statutory rate limit is controlling. 3) Any increase in value in state-assessed property is considered to be new construction value for purposes of calculating the respective limits. State-assessed property is property belonging to inter-county utility and transportation companies (telephone, railroad, airline companies and the like). 4) An omitted assessment is property value that should have been included on a prior year's roll but will be included on the tax roll for which this worksheet has been prepared. Omits are assessed and taxed at the rate in effect for the year omitted (RCW 84.40.080-085). Omitted assessments tax is deducted from the levy maximum before calculating the levy rate for current assessments and added back in as a current year's receivable. 5) Administrative refunds under RCW 84.69.020 were removed from the levy lid by the 1981 legislature. 6) A district is entitled to the lesser of the maximum levies determined by application of the limit under RCW 84.55 and the statutory rate limit. Levies may be subject to further proration if aggregate rate limits set in Article VII of the state constitution and in RCW 84.52.043 are exceeded. 7) This section is provided for your information, and to assist in preparing any Increase Ordinance that may be required by RCW 84.55.120. The increase information compares the allowable levy for the next tax year with your ACTUAL levy being collected this year. The actual levy excludes any refund levy and expired temporary lid lifts, if applicable. New construction, annexation and refund levies, as well as temporary lid lifts in their initial year, are subtracted from this year's allowable levy before the comparison is made. 8) Assessed valuations shown are subject to change from error corrections and appeal board decisions recorded between the date of this worksheet an dfin al levy rate determination. 10/28/08 4:39 PM LevyLimitWS.doc City of Tukwila Levy Calculation - 2008 Tax Year 2008 Actual Property Tax Levy $ 11,400,000 1% Limitation (1-747) 1.01 Allowable Levy Prior to New Construction and Increase in Utility Values $ 11,514,000 New Construction & Estimated Increase in Utility Value $ 288,998,190 2008 Regular Levy Rate $ 2.38088 New Construction & Utility Levy $ 688,070 Total Estimated Allowable Levy $ 12,202,070 Total Estimated Levy Rate $ 2.38174 Recommended Levy Amount $ 12,250,000 Corresponding Levy Rate $ 2.39110 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKyVILA.- WASHINGTON, LEVYING THE GENERAL TAXES FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE FISCAL YEAR COMMENCING JAi'IJUARY 1, 2009, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY WHICH 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 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 2009 and the amounts necessary and available to be raised by ad valorem taxes on real, personal and utility property; and WHEREAS, the final assessed valuation calculation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Regular 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 $5,123,164,972, current taxes for the ensuing year commencing January 2009, in the amount and at the rates specified below: Rate Amount Regular Tax Levy $2.39 $12,250,000 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, 2009. 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. 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, 2009. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKI'VILA, WASHINGTON, at a Regular Meeting thereof this day of . 2008. ATTEST/ AUTHENTICATED: Jim Haggerton, Mayor Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Filed VIoith the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Office of the City Attorney C:\Documents and Seningsl."lI Users\Desktop'J(elIy'MSDA TAIOrdinanre,\General Tax I.e'> 2009.dc>o SH:ksn 10130/2008 Page 1 of 1 n~^ ~T ~kj ~M.~ u AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, INCREASING THE CITY OF TlJKV\1JLA REGULAR LEVY FROM THE PREVIOUS YEAR, COMMENCING JAI\TUARY 1, 2009, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH Rav 84.55.120; PROVIDING FOR SEVERABILITY; AI\TJ) ESTABLISHING AN EFFECTIVE DATE. lVHEREAS, the City of Tuhila has properly given notice of a public hearing, held on November 17,2008, pursuant to RCW 84.55.120; and WHEREAS, the City, after hearing and dwy considering all relevant evidence and testimony presented, has determined that the City requires an increase in property tax revenue from the previous year, in addition to the increase reswting from the addition of new construction and improvements to property and any increase in the value of State- assessed property, in order to discharge the expected expenses and obligations of the City; and WHEREAS, the City has determined that it is in its best interest and necessary to meet its expenses and obligations for the property tax revenue to be increased for 2009, and the final assessed valuation calcwation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TU.K:\'\1JLA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. An increase in the regu1ar property tax levy, in addition to any amount reswting 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 2009 levy in the amount of $114,000, which is a percentage increase of 1.0% from the previous year. This increase is exclusive of additional revenue reswting from new construction, improvements to property, and any increase in the value of state assessed property, any annexations that have occurred and refunds made. Section 2. Severability. H any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation showd 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 3. 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 fu1l force and effect January 1, 2009. PASSED BY THE CITY COUNCIL OF THE CITY OF TUI<:\VILA, WASHINGTON, at a Regu1ar Meeting thereof this day of , 2008. ATTEST/ AUTHENTICATED: Jim Haggerton, Mayor Christy O'Flaherty, CMC, City Clerk 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 C:\Documents and SettingslAlI Users\D::sl.,op\Kelly\MSDATA\OrdinancesiRegular Tax Le;)' 2oo9.d<>: SH:ksn 10128/2008 Page 1 of 1 To: Mayor Haggerton Rhonda Berry Schedule! City of Tukwila 6200 Southcenter Boulevard A Tukwila, Washington 98188 From: Shawn Hunstock, Finance Director Date: October 28, 2008 Subject: Sales Tax Revenue for August 2008 MEMORANDUM in 1,000's Sales Receipt 2007 2008 2008 Increase /(Decrease) %Increase /(Decrease) Month Month Actual Estimated Actual Month YTD Month YTD Jan Mar 1,324 1,398 1,347 (51) (51) -3 65% -3 64% Feb Apr 1,350 1,350 1,357 7 (44) 0 52% -1.60% Mar May 1,707 1,564 1,601 37 (7) 2.37% -0.16% Apr June 1,482 1,472 1,365 (107) (114) -7.27% -1.97% May July 1,497 1,497 1,635 138 24 9.22% 0 33% June Aug 1,768 1,657 1,646 (11) 13 -0.66% 0 15% July Sept 1,616 1,577 1,535 (42) (29) -2.66% -0.28% Aug Oct 1,607 1,546 1,555 9 (20) 0 58% -0.17% Sept Nov 1,704 1,672 0.00% 0.00% Oct Dec 1,597 1,552 0 00% 0 00% Nov Jan09 1,652 1,596 0.00% 0.00% Dec Feb09 2,112 2,164 0.00% 0.00% Totals 19,416 19,045 12,041 Sales tax collections showed a modest increase of 1 32% in August compared to the prior month. August is the first full month the city is impacted by sales from the mall expansion. August is also the second month the city is impacted by streamlined sales tax. We will not know the full affect of the increased retail sales at the mall until August, and the impact of streamline sales tax will not be known until December when the city receives its first mitigation money for lost sales tax revenue. On a year -to -date basis, actual sales tax revenue is just below budget, and approximately 2.5% below collections at this time last year. Extrapolating this trend to the end of the year would result in actual sales tax revenue meeting the budget estimate of $18.5 million, but below the record collections in the previous year by $849,000. Sales Tax Revenue Pace 2 Schedule II shows the year -to -date sales tax from the top 10 categories of retail establishments. As this schedule indicates, there is no clear pattern to explain the current trend. The variances are both up and down in these categories. Schedule II YTD YTD Dollar Group Name Current Prior Diff. Diff. 452 General Merchandise Stores 1,439,952 1,587,475 (147,523) -9.29% 423 Wholesale Trade, Durable Goods 1,369,127 1,472,459 (103,332) -7.02% 448 Clothing and Accessories 1,320,980 1,051,010 269,970 25.69% 236 Construction of Buildings 964,824 853,304 111,520 13.07% 722 Food Services, Drinking Places 885,199 736,501 148,698 20.19% 443 Electronics and Appliances 708,300 872,140 (163,840) 18.79% 441 Motor Vehicle and Parts Dealer 663,495 674,884 (11,389) -1.69% 453 Miscellaneous Store Retailers 481,299 521,447 (40,148) -7 70% 442 Furniture and Home Furnishings 480,246 711,757 (231,511) 32.53% 444 Building Material and Garden 446,864 547,242 (100,378) -18 34% As you can see, there are large decreases for those businesses affected most by streamlined sales tax. Specifically, sales tax for Furniture and Home Furnishings is down by 32.53 Electronics and Appliances is down by 18.79 and Building Material and Garden is down by 18.34 These declines are offset by increases in other areas, such as Clothing and Accessories, which increased by 25.69% and Food Services Drinking Places, which increased by 20.19 These increases are more than likely the result of completion of the mall expansion in late July. Attached is a Sales Tax Summary comparing year -to -date 2008 vs. 2007 by major SIC codes. Also included is a comparison of total receipts year -to -date for the last four years. Please let me know if you have any comments or questions. Thank you. r2 ez a b 0 v- O a. It m e a t e a at at C N .2 m s F. 7 4 St 33 Q a. a° at o m p o N OD CO p r CV cn N p co co v CD N O CO N N W p 0 O N o 0 0 CO W p m 6 m t� b C. 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R co: an t-- T m r M City of Tukwila Year -to -date Comparison 2008 2007 2006 2005 $10,548,0241 $10,000,000 $10,500,000 4 -Year Comparison $11,362,543 1 $11,000,000 $11,500,000 $12,042,282 1 $12,350,941. Taxes Collected Year to Date $12,000,000 $12,500,000 From: Subject: Date: To: Dennis Robertson Evaluation Criteria for an Animal Control Service Policy & Approach October 21st, 2008 Finance and Safety Committee Discussion Goal Today's meeting goal is to create criteria: for evaluating and selecting a 'policy approach' for a City Animal Control Service. Finance and Safety Committee's Commitment to Council as a Whole. We stated that we would provide a report/presentation of four alternatives for animal control service: 1. Basic contractual service from King County 2. Enhanced (officer dedicated to Tukwila several days/week) service from King County. 3. Animal control service shared with adjacent cities. The service would be provided by one of the .cities but funded by all. Puyallup and Sumner are a possible model. 4. Animal control service provided by Tukwila for Tukwila. This would basically be the Des Moines (full-time commissioned officer) or the Normandy Park (part-time use of CSO officer) models. Please note that variations and combinations of the four alternatives are possible. Also, the committee committed to provide a report/presentation for Council-wide discussion without a F &S committee recommendation. . General Background Discussion First, the City Attorney has stated that the City is not, according to Washington State Code, statutorily responsible for providing animal control services to its citizens. The City Council in the past was willing to make a policy decision that it would provide limited animal control evidenced by the interlocal agreements with King County but there is no legal reason the City has to continue to provide animal control service. "Second, the Council is in consensus with the Administration proceeding with 'alternative 2' above while Council and Administration discuss and decide on an overall Animal Control Service policy. Possible Evaluation Criteria 1. How well does the proposed service meet the stated goaVmission statement for a Tukwila Animal Control Service? Please note we do not currently have such a goaVmission statement other than that what is stated in the TMC section on animal control. However, likely starting places for a goaVmission statement could be: Tukwila Police: "Our mission is to improve the quality of life for all through community partnerships and problem solving to promote safe, secure neighborhoods." SPCA: "The mission of SPCA International is to raise awareness of the abuse of animals to a global level, to teach and foster good pet parenting practices, and to promote spay and neuter programs around the world with the goal of eradicating the need to euthanize healthy and adoptable companion animals. King County Animal Control and Care: "It is declared the public policy of the county to secure and maintain such levels of animal care and control as will protect animal and human health and safety, and to the greatest degree practicable to prevent injury to property and cruelty to animal life." (taken from KC code) Tukwila Code: "It is the public policy of the City to secure and maintain such levels of animal control as will protect human health and safety and, to the greatest degree practicable, will prevent injury to property and cruelty to animal life." Des Moines Code: It is the declared public policy of the city to severe and maintain such levels of animal control as will protect and safety, to the greatest degree human health a gr gr practicable Y p prevent injury to property and cruelty to animal life." taken from their code) 2. Cost to provide the proposed service. There are three components to the cost; (1) capital (initial costs such as a truck), (2) ongoing costs (mainly salary, benefits and administration costs) and, (3) Kenneling service for animals. 3. How well does the proposed service fit/integrate with existing Administration policy, capabilities, and contracts? (ie how will it be managed, are there union issues /concerns, etc) 4. How will the proposed service be received by our citizens, employee groups, neighboring cities, and King County or its successor in providing kennel and animal control services? 5. How long will it take to implement the proposed service? How long to truly integrate it with related City services (Police, Code Enforcement, Court, City Clerk, etc.) 6. Does the proposed service require changes to our existing TMC section on Animal Control? If so, how significant?