HomeMy WebLinkAbout2000-051 Ad Valorem Tax for 2001 ORDINANCE NO. 2000 51
AN ORDINANCE fixing and levying the amount of ad valorem taxes necessary to balance
estimated revenue with estimated expenditures for the 2001 Budget for
the City of Yakima.
WHEREAS, the City Council finds that the total net amount of $11,979,953 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 2001 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 $11,979,953 for the following
purposes:
General Government Levy
Operating Funds $9,845,953
Firemans' Relief & Pension Fund 1,264,000
Amount of tax levy for General
Government Purposes (1) $11,109,953
Special Purpose Tax Levy 2001 870,000
Total Levy Amount (1) $11,979,953
(1) Includes an additional $50,000 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 15, 2000.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this
ordinance shall take effect on November 14, 2000.
PASSED BY THE CITY COUNCIL, signed and approved this 14th day of
November, 2000.
7; / &4("*.e-
ATTEST: Place, Mayor
City Clerk
Publication Date: 11 -17 -2000
Effective Date: 11 -14 -2000
(lk)ord /ad valorem taxes 2000 /.lp
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. a-
For Meeting Of 11/14/00
ITEM TITLE: Consideration of Legislation pertaining to Ad
Valorem Taxes to be collected for the Fiscal 2001 Year.
SUBMITTED BY: Dick Zais, City Manager
Rita M. Anson, Director of Finance
Cindy Epperson, Accounting Manager
Ray Paolella, City Attorney
CONTACT PERSON/TELEPHONE: Dick Zais / 575 -6040
Rita M. Anson / 575 -6070
Ray Paolella / 575 -6030
Cindy Epperson / 576 -6644
SUMMARY EXPLANATION:
The public hearing for the Ad Valorem Property Taxes to be levied in year 2001 was held on
November 7, 2000. The agenda item previously submitted, which includes the legislation
and supporting documentation, is attached.
The passage of I -722 on November 7, 2000, set the maximum increase at 2 %. This
recommended levy adjustment is in compliance with that provision. Since I -695 was
determined to be unconstitutional, and I -722 is not yet effective, the attached ordinances
represent the current lawful action required to set the levy. The Association of Washington
Cities is recommending that the levy be established under current law. In the future, when
the provisions of I -722 are legally defined, we will adjust accordingly.
Resolution Ordinances A, & B Contract Other (Specify) Exhibits I & II Attachments 1 -8
Funding Source
APPROVED FOR SUBMITTAL: ��
City Manager
STAFF RECOMMENDATION: City Management is recommending that a 102% property
tax levy be authorized for the year 2001.
BOARD /COMMISSION RECOMMENDATION:
COUNCIL ACTION:
Legal /BD
Agenda Ad Val 1
11/9/00
GIfY iw F Y ,K? A, ,
110 9 2000
November 9, 2000 i nnn , :, ,,
iy o.. O.8 i.a'i COUNCIL.
Dear City Officials:
Once again Washington voters have handed local governments a challenge by approving
Initiative 722. I -722 will have significant impacts on local governments, including cities,
counties and special purpose districts such as fire, library and hospital districts.
On the bright side, the voters have rejected I -745, which would have required spending 90% of
all transportation funds on road construction and maintenance. However, city officials should be
aware that the debate over the proper levels of transportation funding is likely to resurface when
the legislature convenes in January.
For the moment, cities should focus on the practical impacts of I -722.
K
Property Taxes
First, the initiative impacts the setting of property tax levies. Cities still need to comply with the
November 15, 2000 statutory deadline for the setting of property taxes. County assessors have
sent letters to cities outlining how property tax levies will be calculated this year. The letter from
Assessor Scott Noble to the cities in King County is included with this mailing. Assessors have
advised cities to set the levy under current law and rely on the assessor to recalculate it according
to the new limitations in I -722, if necessary.
Refunds
Second, I -722 requires refunding taxes, charges, and fees adopted between July 2, 1999, and
1 \
December 31, 1999. Cities should wait until legal issues surrounding the initiative have been
resolved before considering developing a policy for refunds of these taxes and fees. Some
municipal attorneys have advised cities that court cases interpreting the constitutional prohibition
against gifts of public funds may prohibit the refund of taxes that were lawfully due at the time
of payment.
Legal Challenges
Third, several cities are expected to file legal challenges to I -722 this week. They are likely to
1 request an injunction on implementation of the initiative. In addition, I -722 will be challenged
under the single subject rule and the subject -in -title rule under the State Constitution. Finally
these cities plan to challenge the initiative's property tax assessed value limitations under the
uniformity clause of the State Constitution.
•
Page 2
November 9, 2000
Included in this mailing is the following additional information:
• an announcement for training on initiative implementation planned for November 30,
2000, in Moses Lake, and December 12, 2000, at the Criminal Justice Training Center
near SeaTac;
• a fact sheet explaining policy options available to cities now that I -722 has been
approved;
• an update from Foster, Pepper & Shefelman PLLC outlining some of the legal
implications of the I -695 Supreme Court decision for I -722;
• suggestions for communicating with citizens about the budget changes needed to respond
to the initiative impacts.
We will keep cities updated on any new developments, as information becomes available. In the
meantime, this will be an important year to keep lines of communication open with citizens,
legislators, other local governments, and other city officials.
Please feel free to call Ron Rosenbloom, Sheila Gall or me at (360) 753 -4137 if you have any
questions or concerns.
Sincerely,
Stan Finkelstein
AWC Executive Director
SF /SG
Enclosures (not included)
G:\SHEILA \722\ 722 LEI1F.E. ELEC ION.DOC