Title
Approval of an Ordinance Setting the 2020 Ad Valorem Tax
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Approve the ordinance on second reading.
Report
Issue:
Whether to approve the ordinance setting the 2020 Ad Valorem Tax in the amount $19,060,457.61 for the City's Regular Levy (including refunds) and $1,196,967.77 for the Excess Levy on the Fire bonds (including refunds) on second reading.
Staff Contact:
Nanci Lien, Fiscal Services Director, Administrative Services, 360.753.8465
Presenter(s):
Nanci Lien, Fiscal Services Director, Administrative Services
Background and Analysis:
Background and analysis has not changed from first to second reading. The ordinance has been revised from first to second reading to include the updated Assessed Value (AV) from the County. AVs for our New Construction, State Utilities and totals all decreased since the last AV update in September. The impact of this reduction in AV, results in a reduction in the General Expense Levy only in the amount of $32,549.10.
The City is required to adopt a property tax levy ordinance and file a levy certification with Thurston County by November 27, 2019. If no certification is filed, the County will levy the same amount as 2019.
A public hearing on General Fund revenue sources, including property tax, is required prior to adopting the property tax levy (RCW 84.55.120). The schedule of proposed 2020 General Fund revenues is attached. Notice of the hearing was published on November 5.
The 2020 general levy is based on a 1 percent increase over the previous year's levy, plus allowable add-on items and a refund levy to be collected in 2020. This year the levy includes an additional $499,474.15 of banked capacity.
Once a levy is set there may be adjustments which lower the amount of taxes to be collected (lower assessed valuations). The amount not collected due to adjustments can be added to the next year's levy as a r...
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