Title
Approval of an Ordinance Setting the 2022 Ad Valorem Tax
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Adopt an ordinance on second reading setting the 2022 Ad Valorem tax in the amount $19,914,982.67 for the City's Regular Levy (including add-ons) and $1,052,820.14 for the Excess Levy on the Fire bonds (including refunds).
Report
Issue:
Whether to adopt an ordinance on second reading setting 2022 Ad Valorem tax in the amount $19,914,982.67 for the City's Regular Levy (including add-ons) and $1,052,820.14 for the Excess Levy on the Fire bonds (including refunds).
Staff Contact:
Aaron BeMiller, Finance Director, 360.753.8465
Presenter(s):
Aaron BeMiller, Finance Department
Background and Analysis:
Background and Analysis did not change from first to second reading.
The City is required to adopt a property tax levy ordinance and file a levy certification with Thurston County by November 30, 2021. If no certification is filed, the County will levy the same amount as 2021.
Under state law, property tax revenue increases are limited to the lessor of 1% or the Implicit Price Deflator (IPD) on the highest lawful levy amount. State law allows for add-ons from new construction, state assessed property, annexations, and refunds to be added to property tax revenue above the 1% legal limit. The IPD, which is a measure of the rate of inflation for personal consumption, is 3.860 for 2022. As such, the city is allowed to levy the full 1% increase on the highest lawful levy.
The 2022 general levy budget is based on a 1% increase over the previous year's levy, plus allowable add-ons above the 1% limitation for collection in 2022. Should the County Assessor's Office adjust any levy amounts which impact revenue as they finalize their valuation process, an amended ordinance will be presented at second reading.
Estimated Regular Levy for 2022 Collections
The City's maximum regular levy rate is $3.325 per ...
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