Title
Second reading of the 2016 Ad Valorem Tax Ordinance
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager's Recommendation:
Forward to second reading.
Report
Issue:
To set the Ad Valorem Tax amount and the amount of increase for the budget year 2016, and approval of ordinance on first reading to set the Ad Valorem Tax for 2016 collections.
Staff Contact:
Dean Walz, Fiscal Services Director, Administrative Services Department, 360.753.8465
Presenter(s):
Dean Walz, Fiscal Services Director, Administrative Services Department
Jane Kirkemo, Administrative Services Director, 360.753.8499
Background and Analysis:
Background and analysis have not changed from first to Second Reading.
The City is required to adopt a property tax levy ordinance and file a levy certification with the County by November 30, 2015. If no certification is filed, the County will levy the lesser of the amount levied for 2015 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 2016 General Fund revenues is attached. Notice of the hearing was published on November 3 and November 10, 2015.
The 2016 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 2016. An increase in the levy is limited to the lower of 1% or the inflation rate as measured by the implicit price deflator (IPD) plus new construction. The IPD affecting 2016 tax assessments is 0.251%. To increase the levy beyond the IPD to 1% 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 inclu...
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