Title
Approval of an Ordinance Setting the Ad Valorem Tax for 2017 Collections
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager's Recommendation:
Move to approve the ordinance on second reading.
Report
Issue:
Whether to approve the ordinance on second reading to set the Ad Valorem Tax for 2017 collections.
Staff Contact:
Dean Walz, Fiscal Services Director, Administrative Services Department, 360.753.8465
Presenter(s):
Dean Walz, Fiscal Services Director, Administrative Services Department, 360.753.8465
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, 2016. If no certification is filed, the County will levy the lesser of the amount levied for 2016 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). The schedule of proposed 2017 General Fund revenues is attached. Notice of the hearing was published on November 1 and November 8, 2016.
The 2017 general levy is based on a one percent increase over the previous highest legal levy, plus estimated amounts for new construction, a contingency, and a refund levy to be collected in 2017. An increase in the levy is limited to the lower of 1percent or the inflation rate as measured by the implicit price deflator (IPD) plus new construction. The IPD affecting 2017 tax assessments is 0.953 percent. To increase the levy beyond the IPD to one percent requires the Council to pass a resolution of substantial need with a super majority off the Council present. To increase the levy beyond these limits requires voter approval (levy lid lift).
A contingency of $50,000 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...
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