Title
Budget Snapshot: Property Tax
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive a report on Budget Snapshot: Property Tax
Report
Issue:
Whether to receive a report on Budget Snapshot: Property Tax.
Staff Contact:
Joan Lutz, Senior Finance Manager, 360.753.8760
Presenter(s):
Joan Lutz, Senior Finance Manager
Background and Analysis:
Property tax is one of the City’s most stable and predictable revenue sources. Property taxes are collected by the County on the City’s behalf primarily in two major installments – May and November.
Washington State law caps annual property tax levy increases for local governments to 1% per year, plus revenue from new construction and annexations. These constraints limit Olympia’s ability to grow this revenue sources without voter-approved measures. Long-rang financial planning currently assumes a 2% annual increase in property tax revenue.
Olympia residents also pay property taxes to overlapping jurisdictions including Thurston County, the State School system, local school districts, Timberland Regional Library, Medic One and the Olympia Metropolitan Park District.
Given constraints on levy growth and most revenue increases projected in long-range models, the City should continue to:
Monitor assessed value trends closely, particularly as countywide value increases can alter levy rates even when property values are static.
Evaluate impacts of development activity.
Maintain strong reserves, given property tax’s importance to General Fund stability and its predictable but limited growth potential.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
One of the goals of the City’s budget process is to ensure that city services are provided equitably to our residents and business communities, as well as the greater Olympia community.
Neighborhood/Community Interests (if known):
Members of the ...
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