Title:
Approval of 2015 Ad Valorem Tax Ordinance
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager's Recommendation:
Move to approve on 2nd reading the 2015 Ad Valorum Tax Ordinance
Report
Issue:
Shall the ordinance be approved?
Staff Contact:
Dean Walz, Fiscal Services Director, Administrative Services Department, 360.753.8465
Presenter(s):
Dean Walz, Fiscal Services Director, Administrative Services Department,
Background and Analysis:
The City is required to adopt a property tax levy ordinance and file a levy certification with the County by November 30, 2014. If no certification is filed, the County will levy the lessor of the amount levied for 2014 or any other legal limit which may be applied to the levy.
A public hearing on General Fund revenues sources, including property tax, is required prior to the adoption of the property tax levy (RCW 84.55.120). Schedule of proposed 2015 General Fund revenues is attached. Notice of the hearing was published on November 4 and November 11, 2014.
The 2015 general levy is based on a 1% increase over the previous highest legal levy, plus estimated amounts for new construction, a contingency, and a refund levy to be collected in 2015. To increase the levy beyond these limits requires voter approval (levy lid lift).
A contingency of $25,000 is included because the final values and changes in State assessed properties (utilities) are not known at this time. The maximum the City can collect in property taxes is limited to the lesser of the legal limit or the amount specified in the authorizing ordinance.
Once a levy is set there may be adjustments made which lower the amount of taxes to be collected, e.g. lower assessed valuations. The amount not collected due to adjustments can be added to the next year's levy as a refund levy.
Estimated Regular Levy for 2015 Collections -
The estimated regular levy for 2015 collections is $13,490,486...
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