Title
Public Hearing on an Ordinance Setting the 2021 Ad Valorem Tax
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Hold a public hearing on an ordinance setting the 2021 Ad Valorem tax in the amount $19,609,492.81 for the City's Regular Levy (including refunds) and $1,063,356.45 for the Excess Levy on the Fire bonds (including refunds).
Report
Issue:
Whether to hold a public hearing on an ordinance setting the 2021 Ad Valorem tax in the amount $19,609,492.81 for the City's Regular Levy (including refunds) and $1,063,356.45 for the Excess Levy on the Fire bonds (including refunds).
Staff Contact:
Nanci Lien, Finance Director, Finance, 360.753.8465
Presenter(s):
Nanci Lien, Finance Director, Finance
Background and Analysis:
The City is required to adopt a property tax levy ordinance and file a levy certification with Thurston County by November 30, 2020. If no certification is filed, the County will levy the same amount as 2020.
A public hearing on General Fund revenue sources, including property tax, is required prior to setting the property tax levy (RCW 84.55.120). The schedule of 2021 estimated General Fund revenues is attached. Notice of the public hearing was published on November 3, 2020.
Under state law, the City is limited to increasing the regular property tax levy to the lesser of 1% of last year's levy, or the rate of the implicit price deflator (IPD), plus any allowable add-ins. The IPD is a figure used to measure inflation and is calculated by the State Department of Revenue. As of August 2020, the IDP is 0.60152%.
When the IPD rate falls below 1%, the City may adopt a resolution of "substantial need" allowing to increase the levy up to the full 1% increase by approval of a majority of Council plus one. If not levied, the excess capacity can be "banked" to be available for a future levy.
The 2021 general levy is based on a 1% increase over the previous year's levy, plus all...
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