HomeMy WebLinkAbout2006-059 2007 Ad Valorem Taxes ORDINANCE B
ORDINANCE NO. 2006 - 59
AN ORDINANCE fixing and levying the amount of ad valorem taxes necessary to balance
estimated revenue with estimated expenditures for the 2007 Budget for
the City of Yakima.
WHEREAS, the City Council finds that the total net amount of $15,267,335 in revenue
must be raised by ad valorem taxes on real and personal property within the corporate limits of
the City of Yakima to balance estimated revenues and expenditures for the 2007 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 $15,267,335 for the following
purposes:
General Government Levy
Operating Funds $13,730,968
Firemens' Relief & Pension Fund 1,536,367
Amount of tax levy for General
Government Purposes (1) $15,267,335
Special Purpose Tax Levy 294,000
Total Levy Amount (1) $15,561,335
(1) Includes an additional $100,000 to provide for final adjustments in State assessed, 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, 2006.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this
ordinance shall take effect on November 21, 2006.
PASSED BY THE CITY COUNCIL, signed . . approved this 21st day of
November, 2006.
��_
ATTEST " avid Edler, Mayor
City �� k
Publication Date: 11 -24 -2006
Effective Date: 11 - 21 - 2006
ed- .alo�rord 2007cjen/17 /2006
EXHIBIT I
City of Yakima
Property Tax Limitation Calculation
(Dollars in Thousands)
2006 Tax 2007
Assessed Rate Levy
Values Applied Dollars
Prior Year (2006) = Base $4,169,739.611 $3.3813 $14,099,086
Valuation Increase $103,189.855 N/A $0
New Construction $55,538.784 $3.3813 $187,793
State Assessed Value $3.3813 $0
Tax Limit Before Annexations $4,328,468.250 $3.3007 $14,286,879
Add for Annexation $266,749 954 $3.3007 $880,456
Limit for Subsequent Years $4,595,218.204 $3.3007 $15,167,335
Plus Contingency (And Refunds) $100,000
Total- ordinance $15,267,335
State of Washington Constitutional Limit
Assessed Valuation $4,595,218.204 $3.6000 $16,542,786
Less: Library Levy (Estimate) $0 475 $2,182,729
2006 Levy for Collection in 2007 (Estimate) $3 125 $14,360,057
cje 11/17/2006
Attachment #1
GENERAL GOVERNMENT REVENUE
(BASED ON 2007 BUDGET OF $53.3 MILLION)
28.6 20.4 7.1 3.9
Sales Tax Franchise & Intergovernment & Other
Utility Tax State Shared Revenue Revenue
($15.2 Million) ($10.9 Million) ($3.8 Million) (2.1 Million)
1 ' S ' 'K '- -' i p�`r + �v�: ' -.L roc / r s i Wing tsmar pro
,/,;:,,,.;-- Ave .� °• - r Id 15 ersenseea THATTMete NAG 01 cw IDOS[fCD III ME MICAS uRY Or' 1 - f. , . 14 41, 4Y
♦ • `� c \ A221, 2 .35651 A- ... ... -',,•• .
1 a 4, Mts ,; l - :h " " a.'�, � °5 •�7' ` 1 t € tl.. °a x -''r ' I A� 'y{� [[ i '3
H , 1; f. . : "68 .r..b Y !r Dw11 ..; ' i 1 i 1 . , :J v . k r' L` I i ii i 1' .
# I t w ' `._ S ,, J swan :-Y, -� - „ f 34t , `e ,
- 1. - C� t 11 ! r l
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t 4. � ,� f z '' ''`'11 1 � , [ x , �3
, . { - A'2212 2 �65 ▪ 4 , _ \- :- .p.�' ), ' • , x , . a � �10 1 , : S , ti �>! OLLtR k 1. { , i 1
23.9 10.8 5.3
Property Tax Licenses, Permits Fines &
($12.7 Million) & Charges Other Taxes
for Services ($2.9 Million)
($5.7 Million)
1 1 1
0% 25% 50% 75% 100%
GENERAL GOVERNMENT RESOURCES
THREE YEAR COMPARISON
2006 2007 % OF
2005 YEAR -END PERCENT BUDGET 2007 INCREASE PERCENT
SOURCE ACTUAL ESTIMATE CHANGE FORECAST TOTAL (DECREASE) CHANGE
General Sales Tax $11,970,427 $12,575,000 5.1% $13,000,000 24.4% 425,000 3.4%
Crim. Justice Sales Tax* 1,442;726 2,207,000 53.0% 2,21Z000 4.2% 10,000 0.4%
Property Tax 12,008,736 12,336,329 2.7% 12,709,202 23.9% 372,873 3.0%
Franchise and Utility Taxes 9,572,186 10,438,628 9.0% 10,848,400 20.4% 409,772 3.9%
Charges for Services 5,066,454 4,947,812 (2.3 %) 5,073,833 9.6% 126,021 2.5%
State Shared Revenue 2,364,771 2,644,050 11.8% 2,792,050 5.2% 148,000 5.6%
Fines and Forfeitures 1,190,300 1,280,250 7.6% 1,294,000 2.4% 13,750 1.1%
Other Taxes 1,714,684 2,052,400 19.7% 1,550,200 2.9% (502,200) (24.5 %)
Other Revenue 1,151,240 1,153,172 0.2% 1,091,870 2.0% (61,302) (5.32 %)
Transfers from other Funds 1,053,710 998,500 (5.2 %) 1,018,500 1.9% 20,000 2.0%
Other Intergovernmental 684,584 982,825 43.6% 1,029,861 1.9% 47,036 4.8%
Licenses and Permits 690,783 682,350 (1.2 %) 648,000 1.2% (34,350) (5.0 %)
TOTAL REVENUE $48,910,601 $52,298,316 6.9% $53,272,916 100.00% $974,600 1.9%
Beginning Fund Balance $6,796,302 $6,375,430 (6.2 %) $5,921,916 ($453,514) (7.1 %)
TOTAL RESOURCES $55,706,903 $58,673,746 5.3% $59,194,832 $521,086 0.9%
Some Criminal Justice sales tax is allocated to the Law and Justice capital fund (a non - general Governmental fund) for capital needs. (See
section IV for details.)
Attachment #2
The graph below depicts the 2007 budgeted allocation of the City's property tax revenues.
PROPERTY TAX ALLOCATION BY FUNCTION
2007 GENERAL LEVY
PROPERTY TAX TOTAL — $14,245,569
Fire and Police
Pensions
General Fund '` $2,840,069
$4,898,298 / 19.9%
34.4% ' ' r
!
� %
SCAP
..ox':'^ ti SSet $650,000
Parks
$1,938,000
13.6%
Streets
$3,920,202
27.5%
(1) Starting 2007 Library has its own levy; a new program (SCAP) may be launched for 2007
Attachment #2
(Page 2)
2007 PROPOSED
GENERAL PROPERTY TAX LEVY
2006 2007 2006
2005 - YEAR -END BUDGET YS.
ACTUAL .Erman PROJECTION 2007
General $5,578,287 $5,865,893 $6,201,000 5.7%
SCAP $0 $0 $650,000 n/a
Library 1,414,107 1,314,107 0 (100.0%)
Parks and Recreation 1,841,985 1,841,985 1,938,000 5.2%
Streets /Traffic 3,174,357 3,314,344 3,920,202 18.3%
Sub Total — General Government $12,008,736 $12,336,329 $12,709,202 3.0%
Firemen's Relief and Pension 1,405,779 1,498,895 1,536,367 2.5%
TOTAL $13,414,515 $13,835,224 $14,245,569 3.0%
The City has compiled data from the State Auditor's Office that identifies per capita property tax for
comparable cities,throughout the State. The following chart (Figure III - 5) compares the City's per capita
property tax income for 2004 (the last year information is available). It shows the City of Yakima's property
tax per capita is $15$ which is $63 less #liar -the average of all the comparable cities. Yakima ranks fourth
lowest in tax per capita of the 12 comparable cities.
r
‘ yy - ,_..?.�::r .; �;4,; - " . :: •
Comp Cities between 30,000 and 85,000 in popiulation
2004 :PER CAPITA PROPERTY TAXES
$400 - 47 r =., r r::I y t " •
c Yaloma's per Capitaproperty�tax�us $154,;which is $63 $359
$350 - LESS than the average per capita property tax of
o $217 �'" C : ,+ , ,,,, $284 $295
0 $300 - $275
0
$252
.a $250 - , $229
a Yakima $154 $207
w o ♦ $178
$200 -
d
F $150 - $135
$115 $116
a is
o $100 co
y
$50 - 0 3 E e a E 0
i 3 fi
x A C G
ai ca 0 aU u a ai a a "
w $o -
Data compiled from the State Auditor's Local Government Comparative Statistics
Attachment #3
PROPERTY TAX AS A PERCENTAGE OF TOTAL FUND REVENUE
2005 BUDGET
100% , pez '
90% „..
8 :
7o To
60%
50% , s o _A 96%
40% 4M -,.
30% -� • r&' .
20% 47%
10% 16% :.
0% 1 ;.. ''" 1 1
General Fund Parks Streets Fire Pension
0 % Property Tax 0 % Other Revenue •
J
Attachment #4
The largest revenue source for the General Government Funds is sales tax. Yakima is in the lowest third of per
capita sales tax compared with similar cities in the State: (Refer to Figure: III :3) However, Yakima is also in the
lower 1/3 of rankings in all other revenue comparisons per capita and is the lowest out of the twelve cities
compared in combined per capita revenue. Yalima's $1,107 per capita taxes is $577 below the average of $1,684
based on 2004 actual data, as demonstrated in Figure 8, below. The most important condusion from this analysis is
that the City of Yakima has a very limited revenue/tax base compared with most cities of its size in the state, and yet provides
similar or enhanced services and programs to its citizens.
- " 1
K i P
-- — --
f. t . • 4
` , .Comparable Cities between 30,000 and 85,000 in population
I ,
:F 2004 PER CAPITA.T REVENUES -_.
(This uuludes state and federal grants; taxes and charges for services, and excludes debt proceeds.)
I $3,000 - 1 . - - s ss -
v Yakima s per capita total revenue is $1,107, which is i 4 ,
1 $577 LESS than the average per capita revenue of: - G. 1 t
u $2,500 - $1,684. 1 1 'a i
` ` , 1
4 i ! s ; j $2,117 $2,185
u • $2,000 - i j �, ' \r i $1,894 $x,953
.d Yakima $1,107 , t $1,671 ' -- . .. t
g i $1,584 $1,617 P -
-
a, $1,500 - Ilr $1,123 $1,175 $1246 , _ . -_ ._ _ . 1 .- . ........ .. . _
, $1,000 -
F
V. '6
z
v
U • $500 8 3 mt
.5 a °" y
$o-
04 0. 3 u �+ ¢ o a a
Data compiled from the State Auditor's Local Government Comparative Statistics
Attachment #5
PROPERTY TAXES — The total property taxes paid by property owners within the City of Yakima includes
taxes levied by several governmental entities; the State, School Districts, Special County wide voted
levies and the City's general and special voter approved levies. The percentage of the total property
taxes levied by, and allocated to, each individual governmental entity will change slightly from year to
year. The City's portion is generally under 30% of the total amount collected. (Refer to the graph and
chart below for how the 2006 property taxes were allocated between these governmental entities.)
2006 PROPERTY TAX DISTRIBUTION
Emergency
Medical
Yakima School District City of Yakima Services
.37 .27 .02
p,: , y, L ' • T• roam cm., rigs THAI HAS OW. •SC CStl¢D HI TM a THEASuwor Q' �!
/: ,t
1 t p a `W OM "" ' -. _I. ` �v.�' , l ' 1
N N ' *� ' i t f ' F ' \
4 I )1 21 . ` '
\ f - ..-
...6. t " x " 4 ! i j1
i fyE _rag `-t;:','_-,-, /.6 r `=". sw .r ' 4 ' i : ' 1 i f ; t t I 4 1 { '
r ' -e - ' A r� p:K `' � ^.p4 9 i'! k v RasaiI% - oo•MCi , - < p . -^ h i ce ? .
t r_ _ 1 a. .,, ' x \ 1 40 ( 7- jY-m Y -''— ri' +'ed it. j .
}
It`^-�r., yr y .�� > t9 .� •i�:i a a " ' I.vc Y3 '� I�l " "i ...I ?..:: ...... . . ;... ��1� -r :_
... . ,s- � ue ... ... .•.... .. «.. .. w ,.r. ...._ . .. _...- .... . �..- .•.... - -� ..._. _. _._ .`�.._. �:
I
State of Washington Schools Yakima County
.20 .14¢
1 1 1 1 1
0% 25% 50% 75% 100%
City of Yakima Property Tax — In 2006, a typical City resident pays approximately $12.69 per thousand of
assessed value on property taxes. Only $3.45, or about 27.3% goes to the City, with the balance divided
between the County, schools, and other special districts.
DESCRIPTION OF HOW PROPERTY TAXES ARE LEVIED
The following explanation is included to help the reader understand how property taxes are assessed
to the individual property owners. To aid in this explanation three commonly used terms must be
understood, they are Property Tax Levy, Property Tax Rate and Assessed Value.
PROPERTY Tax LEVY -- is the total amount of money that is authorized to be collected.
ASSESSED VALUE — is the total value, as determined by the County Assessor's Office, of all property within
the City
Attachment #5
(Page 2)
PROPERTY Tax RATE - is the property tax amount that will be applied to every $1,000 of assessed value; the
rate is determined by simply dividing the levy amount by the total assessed value amount and dividing
that number by 1000.
In other words, an increase in assessed value does not affect the total amount levied or collected by the
governmental entity Nor does it automatically affect the amount the property owner must pay The dollar
amount of the levy is restricted by law — the assessed value is simply the means to allocate the total dollars
among the property owners. A change in one property owner's assessed value will affect his /her property
tax bill only if the change is significant enough to change that property owner's percentage of the total
assessed value of all property within the taxing districts. (Example: if the amount of property tax levied does
not change from one year to the next, and every property owner's assessed value goes up 3 %, there will be
no change in the property tax owed by any of the property owners. This is due to the fact that everyone's
assessed value increase by the same amount, therefore, every property owner's percentage of the total tax
levy remained the same.)
PROPERTY TAX CODE AREA #333 (YAKIMA SCHOOLS) - CONSOLIDATED LEVY AND RATES
2005 ASSESSED VALUATION - 2006 TAX YEAR
2005 RATE/
PROPERTY TAX LEVY THOUSAND 2006 LEVY PERCENT OF LEVY
General Fund 1.4701 $6,129,756
Library 0.3152 1,314,107
Parks and Recreation 0.4417 1,841,985
Street and Traffic Operations 0.7948 3,314,344
Firemen's Relief and Pension 0.3595 1,498,895
TOTAL OPERATING LEVY $3.3813 $14,099,087 26.7%
Total Bond Levies 0.0729 300,000 0.6%
TOTAL CITY LEVY $3.4542 $14,399,087 27.3%
OTHER LEVIES
School District #7 36.7%
Operation and Maintenance 2.9338 12,07Z883
Bond Redemption 1.7781 7,320,091
State Schools 2.5026 10,435,191 19.8%
Yakima County 1.6222 6,764,152 14.2%
Yakima County Flood Control 0.0948 394,040
Juvenile Justice Bond 0.0724 301,889
EMS Levy 0.2368 987,394 2.0%
TOTAL OTHER LEVIES $9.2407 $38,280,640 72.7%
TOTAL LEVY CODE #333 $12.6949 $52,679,727 100.0%
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No
For Meeting Of 11/21/06
ITEM TITLE. Public Hearing on Revenue Sources and Consideration of Legislation pertaining
to Ad Valorem Taxes to be levied for collection in Fiscal 2007 Year
SUBMITTED BY Dick Zais, City Manager
° Rita M DeBord, Finance Director
Cindy Epperson, Financial Services Manager
CONTACT PERSON/TELEPHONE. Dick Zais / 575 -6040
Rita M DeBord / 575 -6070'
Ray Paolella / 575 -6030
Cindy Epperson / 575 -6070
SUMMARY EXPLANATION.
Background
Current law, based on Initiative 747, requires several administrative and legal steps to establish the
property tax levy (Even though 1 -747 was recently ruled unconstitutional, it was recommended that
local govemments continue to operate under its rules until the appeal process is completed.) Your
package includes two (2) separate ordinances. Ordinance A and B are management's
recommendation for the property tax levy for collection in 2007 Exhibit 1 details these calculations
Ordinance purposes are.
Ordinance A identifies Council's intent to authorize an increase in the tax levy over 2006 levels This
ordinance requires a simple majority to pass. It is required by RCW 84 55 120 This is legally
necessary to increase the 2007 tax collections by any amount over 2006 levels. Because of the
Library Annexation, the base levy will not be increasing for 2007 However, further review of I -747
CONTINUED
Resolution Ordinances X Other (Specify) Exhibit I , Attachments 1 -5
Funding Source
APPROVED FOR SUBMITTAL.
City Manager
STAFF RECOMMENDATION City Management is recommending that ordinances "A" and "B"
be passed by the City Council.
BOARD /COMMISSION RECOMMENDATION
COUNCIL ACTION Ordinance passed. ORDINANCE NO. 2006-58
Ordinance passed. ORDINANCE NO. 2006-59
1 .1/Rn
2007 Property Tax Agenda Statement— Continued page 2 of 3
and discussions with a Property Tax Specialist from Washington State Department of Revenue
indicated that this ordinance is still necessary because of the requirement for a public hearing on the
budget, including all revenues, and because Council is expected to declare its intent regarding an
increase in property tax, even if that intent is to have no discretionary increase, which is the City's
case for 2007
Ordinance B fixes the tax levy for collection by the City in 2007 It is virtually the same as in previous
years' ordinances This ordinance includes not only the regular tax but also special levy taxes for
bond repayments This ordinance complies with RCW 35 33 135 and requires a simple maiority vote
to pass.
General Government Revenue Discussion
In reviewing General Govemment revenue, there are 4 revenues that each make up approximately
one /fourth of the total —i e there are four "legs" that support General Govemment operations. Sales
Tax (including the City's allocation of both county -wide Criminal Justice sales taxes) represents about
29% of the total. Property tax as proposed is about 24 %, Utility Taxes as presented in the Preliminary
Budget make up slightly more than 20 %, and all other revenue comprise the remaining 27% (See
Attachment 1 for a summary of General Govemment revenues.)
The Yakima economy continues to be distressed which has resulted in marginal growth of the City's
other critical revenues General Govemment revenue is estimated to increase by 1 9% overall. Major
revenues are not growing as quickly as economic indices
In response to these economic conditions, the City has exercised responsible budgetary restraint.
City management has taken necessary cost reduction measures to maintain essential services,
evidenced by an increase in the 2007 General Govemment Budget of only 2 1% more than the 2006
amended budget —less than the rate of inflation (if the new Criminal Justice programs are not
considered) The most significant cost containment measure is a "freeze" on base salary increases
for all City employees for 2007 Therefore, increased mandated, contractual and inflationary costs
have been partially offset by this salary freeze
Property Tax Discussion
The total 2007 City of Yakima recommended property tax levy includes the reduction resulting from
the library annexation, levies for voted bond issues, and amounts for annexations and new
construction. The budget currently includes an estimated revenue of $14,245,569 for the regular levy,
an increase of $410,345 over the 2006 year -end estimate of $13,835,224 The voted levy debt is
budgeted to be $294,000, a slight reduction from the 2006 budget, based on scheduled debt service
for the 1995 voted Fire bond issue The total operating tax rate for next year is estimated to be
$3 125 per $1,000 of Assessed Valuation (AV), down from the 2006 rate of $3 38 (The statutory
limit is $3 60 less the Library levy, which is capped at 50 cents per $1,000 The estimate for the 2007
Library levy is 47 5 cents per thousand) -- the bond rate is estimated to be $0 0638 per $1,000, down
from $0 0729 in 2006
Because of the reduction of expenses related to the library annexation, the maximum
authorized increase of 1% over the prior year levy is not being proposed. The calculation for
the tax levy detailed in Exhibit 1 is similar to prior years, with the only difference being no
increase on the prior year base levy Therefore, the requested general levy of $15,267,355 is
significantly higher than the budgeted amount, because the calculation was made without
consideration of the reduction related to the Library Annexation, to protect the City's levy capacity
1 priaiIRt)
2007 Property Tax Agenda Statement— Continued page 3 of 3
As explained in the Library Annexation legislation presented for a Public Hearing at the March 21,
2006 City Council meeting, in the first year after annexation the statutory cap of $3 60/$1,000 of AV
for both the Library and the City combined will be the effective limit for 2007 City voters approved
the Library Annexation in the spring of 2006, based on a stated estimated increase of 22 cents per
$1,000, of which 15 cents would be directed toward the Library, and 7 cents for the City This
additional levy is currently estimated to result in a net increase of $650,000 for the City in 2007, which
was earmarked by Council to support the Safe Community Action Plan
Even though the library annexation reduced the amount of property tax the City can levy, new
construction and 2 major annexations into the City (Englewood and 96 Avenue) more than offset this
reduction. It should be noted. that the estimate in the 2007 budget does not exactly match the City's
maximum levy estimate, because of an adjustment for collection rates — historically the City receives
approximately 96% of the current levy and 50% of the delinquent balance (See Attachment 2 for
distribution of the estimated levy )
We believe the current request for the property tax levy is justified by the following conditions -
(1) ' The property tax is needed to help meet mandates and contractual obligations, principally
Public Safety pensions /medical costs. Attachment 2 demonstrates the amount of property
taxes dedicated to these areas.
(2) In the Street budget, property tax represents nearly 75% of all revenue in this budget. (see
Attachment 3) Investing in maintaining and repaving the City streets has been a high Council
priority for several years.
(3) Property tax is also a key revenue source for the Parks and Recreation Division, representing
almost 50% of all Parks revenue Parks maintenance is supported entirely by property tax,
while other programs such as the Senior Center and Aquatics are supported in part by the
property tax. The cost to maintain and operate these facilities increases annually (Also see
Attachment 3)
(4) Again this year, the City is not expected to collect the full levy because of higher senior citizen
exemptions, delinquent taxes and other uncollectible accounts. For the year 2007, the City is
budgeting conservatively and estimating a reduction of up to 4% in actual collections from the
authorized levy offset by a portion of delinquent taxes that are predicted to be collected.
(5) Yakima's per capita property tax ranks $63 below the average of comparable Washington
cities with populations of 30,000 to 85,000 in 2004, the most recent year this information has
been compiled. Yakima ranks 9th out of 12 cities in this group Further, for these same cities,
Yakima's total per capita revenue collected from all taxes, fees and charges is $577 dollars
less than the average and ranks 12th out of the 12 cities. Our residents are currently taxed
substantially less than other similar size cities. (see Attachments 2 & 4)
(6) Finally, the City's current property tax levy represents only 27% (approximately 1/4) of the total
property taxes paid by City residents. The State, local School District levies and County
government receive approximately 3/4 of all property taxes paid. (See Attachment 5)
In conclusion, based upon the previous discussion, property tax is a vital component of General
Govemment revenue Management/budget staff respectfully requests the passage of both
Ordinances A and B to set the 2007 property tax levy
anaURfl
ORDINANCE A
ORDINANCE NO. 2006 - 58
AN ORDINANCE relating to the annual property tax levy; declaring the City Council's
intent to increase the City's 2007 regular levy for new construction,
annexation 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 21, 2006,
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 2007 current expense budget, and the
total proposed property tax levy amount pertaining to 2007 revenues from real and personal
property taxes; and
WHEREAS, Section 209 of Referendum Bill 47 (RCW 84.55.120) provides that no
increase in property tax revenue, other than that resulting from the addition of new
construction and improvements to property in 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, the City Council, after the public hearing on November 21, 2006, 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, resulting from 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
WHEREAS, the amount of property tax levied for collection in 2006 was $14,099,086 for
general government purposes; and
WHEREAS, the discretionary increase in property tax levied for collection in 2007 shall
be in the amount of $0, which is a percentage increase of zero percent (0 %) from the previous
year; and
WHEREAS, the non - discretionary increases in property tax levied for collection in 2007
can only be estimated due to the absence of final values to be provided by the Yakima County
Assessor, now, therefore,
/P^DP�Y'tai -o d 20071% -ce 11/17/2006
ORDINANCE A
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
2007.
A. A discretionary increase of $0, which is a percentage increase of zero
percent (0 %) over the amount levied for collection in 2006; plus
B. An estimated increase of $880,456 for recent annexations; plus
C. An estimated increase of $187,793 for new construction and
improvements to property; plus
D. 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, 2006.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this
ordinance shall take effect on November 21, 2006.
PASSED BY THE CITY COUNCIL, signed and approved this 21st day of November,
2006.
ATTEST David Edler, Mayor
City Clerk
Publication Date: 11 -24 -2006
Effective Date: 11 -21 -2006
qe /Property- tax.ord 2007176 -ce 11/17/2006