HomeMy WebLinkAbout11/12/2025 04.A. Public hearing and Ordinances pertaining to Ad Valorem Taxes (property tax) to be levied for collection in fiscal year 2026 ,-44011\--`4
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 4.A.
For Meeting of: November 12, 2025
ITEM TITLE: Public hearing and Ordinances pertaining to Ad Valorem Taxes
(property tax) to be levied for collection in fiscal year 2026
SUBMITTED BY: *Craig Warner, Director of Finance and Budget
Kimberly Domine, Financial Services Manager
SUMMARY EXPLANATION:
Pursuant to RCW 84.55.120, the City Council will hold a public hearing to receive public comments and
input regarding the proposed 2026 property tax levy, including any potential increase over 2025 levels.
Feedback from this hearing will help the Council determine the final property tax rate for 2026.
This agenda item includes two ordinances:
• Ordinance A: Authorizes a proposed 1% increase in the property tax levy above 2025 levels, as
allowed by law. Requires a simple majority vote.
• Ordinance B: Establishes the maximum property tax levy for 2026 to fund the City's budget.
Requires a super-majority vote (minimum five Council members).
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Conduct the public hearing and pass both ordinances by separate motion.
ATTACHMENTS:
Ordinance A 2026_property tax levy
Ordinance B 2026_ad valorem taxes
2026 Levy.pdf
FY 2026 Property Tax Presentation.pptx
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ORDINANCE A
ORDINANCE NO. 2025-
AN ORDINANCE relating to the annual property tax levy; declaring the City Council's intent
to increase the City's 2026 regular levy up to 101% along with new
construction, annexation, refunds and growth in state-assessed property
values from the amount levied the previous year.
WHEREAS, RCW 84.55.120 requires a taxing district that collects regular levies to hold a
public hearing on revenue sources for the district's following year's current expense budget,
including consideration of possible increases in property tax revenues; and
WHEREAS, pursuant to RCW 84.55.120 and the City Charter, on November 12, 2025,
upon due and proper legal notice, the Yakima City Council held a public hearing to consider the
City's general government revenue sources for the 2026 current expense budget, and the total
proposed property tax levy amount pertaining to 2026 revenues from real and personal property
taxes; and
WHEREAS, RCW 84.55.120 provides that no increase in property tax revenue, other than
that resulting from the addition of new construction, improvements to property, and any increase
in the value of state-assessed property, may be authorized by a taxing district, except by adoption
of a separate ordinance or resolution, pursuant to notice, specifically authorizing the increase in
terms of both dollars and percentage; and
WHEREAS, RCW 84.55.005 sets the limit factor for the increase in the regular property
tax levy at the lesser of one hundred one percent or one hundred percent plus inflation, which is
defined as the percentage change in the implicit price deflator (IPD) for personal consumption
expenditures for the United States as published for the most recent twelve-month period by the
bureau of economic analysis of the federal department of commerce by September 25th of the
year before the taxes are payable; and
WHEREAS, the applicable percentage change in the Implicit Price Deflator was 2.44%;
and
WHEREAS, RCW 84.55.0101 allows a taxing district to use a limit factor of one hundred
one percent upon a finding of substantial need by the legislative authority by a majority vote; and
WHEREAS, the City Council, after the public hearing on November 12, 2025 and, after
duly considering all relevant evidence and testimony presented, has determined that the City
requires an increase in property tax revenue from the previous year, along with the addition of
new construction and improvements to property and any increase in the value of state-assessed
property, in order to discharge the expected expenses and obligations of the City, and as being
necessary and in the best interests of the citizens of the City of Yakima; and
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ORDINANCE A
WHEREAS, the maximum levy rate the City of Yakima can levy is $3.10/$1,000 assessed
valuation (AV) plus $0.225/$1,000 AV specifically for Firemen's Relief and Pension Fund and will
not change as a result of this ordinance; and
WHEREAS, property tax is a tax based on ownership of a piece of real estate. A "levied
property tax" is generally a tax imposed on property owners, based on the value of their property
and the municipal government's needs; and
WHEREAS, the city levy rate has decreased from $3.10/$1,000 AV to $1.85/$1,000 AV in
2025 and staff is projecting the levy rate for 2026 to be $1.87/$1,000 AV; and
WHEREAS, in order to bring the current levy rate to the maximum allowed, a levy lid lift is
required and the City of Yakima residents will need to approve such ballot measure; and
WHEREAS, the amount of property tax levied for collection in 2025 was $22,357,999.57
for general government purposes; and
WHEREAS, the discretionary increase in property tax levied attributable to the inflation
factor for collection in 2026 shall be in the amount of $223,580, which is a percentage increase
of 1.0% from the previous year; and
WHEREAS, the non-discretionary increases in property tax levied for collection in 2026
can only be estimated due to the absence of final values to be provided by the Yakima County
Assessor, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The following increases in the regular property tax levy, over the amount of
the previous year's levy, are hereby authorized to be cumulatively levied for collection in 2026:
A. A discretionary increase of $223,580, attributable to the inflation factor
which is a percentage increase of 1.0% over the amount levied for
collection in 2025; plus
B. An estimated increase of$0 for recent annexations; plus
C. An estimated increase of$165,872.01 for new construction and
improvements to property; plus
D. An estimated increase of$198,085.85 for a refund levy; plus
E. An increase authorized by state law for state-assessed property values.
Section 2. The City Clerk is directed to transmit and file a certified copy of this ordinance
with the Board of Yakima County Commissioners and the Yakima County Assessor on or before
November 30, 2025.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this ordinance
shall take effect on November 12, 2025.
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ORDINANCE A
PASSED BY THE CITY COUNCIL, signed and approved this 12th day of November 2025
ATTEST: Patricia Byers, Mayor
Rosalinda Ibarra, City Clerk
Publication Date:
Effective Date:
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ORDINANCE B
ORDINANCE NO. 2025-
AN ORDINANCE fixing and levying the amount of ad valorem taxes necessary to discharge
the expected expenses and obligations for the 2026 Budget for the City of
Yakima.
WHEREAS, the City Council finds that the total net amount of $23,195,537 in revenue
must be raised by ad valorem taxes on real and personal property within the corporate limits of
the City of Yakima to discharge the expected expenses and obligations for the 2026 Budget for
the City of Yakima, now therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. There is hereby fixed to be raised by general property taxes upon real and
personal property within the City of Yakima the amount of$23,195,537 for the following purposes:
General Government Levy
Operating Funds $22,345,537
Firemen's Relief& Pension Fund 850,000
Amount of tax levy for General
Government Purposes (1) $23,195,537
Special Purpose Tax Levy 0
Total Levy Amount (1) $23,195,537
(1) Includes an additional 250,000 to provide for final adjustments in State
assessed, refunds, new construction, and annexation values.)
Section 2. The City Clerk is directed to transmit and file a certified copy of this
ordinance with the Board of Yakima County Commissioners and the Yakima County Assessor on
or before November 30, 2025.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this ordinance
shall take effect on November 12, 2025.
PASSED BY THE CITY COUNCIL, signed and approved this 12th day of November,
2025.
ATTEST: Patricia Byers, Mayor
Rosalinda Ibarra, City Clerk
Publication Date:
Effective Date:
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City of Yakima
Property Tax Limitation Calculation
2025 Tax 2026
Assessed Rate Rate/ Levy
Value Applied Change Dollars
2025 Tax Rate $ 12,101,391.489 $ 1.8476 $ 22,357,999.57
Implicit Price Deflator(IPD) 2.44%Increase 1.0000% $ 223,580.00
Substantial Need(resolution required) - $ -
2026 Tax Rate @ 101% $ 22,581,579.57
Valuation Increase 449,005.950 3.7104%
New Construction 89,779.145 1.8476 0.7419% $ 165,872.01
State Assessed Value - 1.8476 0.0000% $ -
Tax Limit Before Annexations 12,640,176.584 1.7996 $ 22,747,451.57
Add for Annexation - 1.7762 $ -
Limit for Subsequent Years 12,640,176.584 1.7996 $ 22,747,451.57
Plus Refunds(estimate) $ 198,085.85
Plus Contingency $ 250,000.00
Total-ordinance $ 23,195,537.42
($0.0479)
2025 Maximum
Assessed Maximum Levy
State of Washington Constitutional Limits Value Rate Dollars
2025 Assessed Valuation $ 12,640,176.584 3.6000 $ 45,504,635.70
Less:Library Levy 0.5000 $ 6,320,088.29
2025 Levy for Collection in 2026 3.1000 $ 39,184,547.41
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+2025 Assessed Valuation $12,033,422 ,595
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+ Statutory Allowable Max $ 37,303,675
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+ New construction $165,872 ;
+ Refund levy $198,086 I
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2026 Levy Request $23, 195,537
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'• ''' '' '- ✓2026 property tax revenue budget: $23.2 M
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Ordinance will request: $23, 195,537 I
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Ordinance A — Intent to increase the City's 2026 Levy by 1 % ;'
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Ordinance B — Fixes the levy amount to a maximum of $23, 195,537 ; ;/
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