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Home My WebLink About2000-050 Annual Property Tax Levy for 2001 ORDINANCE NO. 2000- 50 AN ORDINANCE relating to the annual property tax levy; authorizing an increase in the City's regular levy 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 7, _2000, upon due and proper legal notice, the Yakima City Council held a public hearing to consider the City's general government budget, general revenue requirements for the 2001 calendar year, and the total levy amount pertaining to 2001 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 7, 2000, 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, in addition to the increase 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 2000 was $10,738,967 for general government purposes; and WHEREAS, the discretionary increase in property tax levied for collection in 2001_shall be in the amount of $214,779, which is a, percentage increase of two percent (2 %) from the previous year; and WHEREAS, the non - discretionary increases in property tax levied for collection in 2001 can only be estimated due to the absence of final values to be provided by the Yakima County Assessor, now, therefore, . (1k)ard /property tax levy 2 2890 /rip- BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The following increases in the regular property tax levy, over_fhe_amount • of the previous year's levy, are hereby authorized to be cumulatively levied for collection in 2001: A. A discretionary increase of $214,779, which is a percentage increase of two percent (2 %) over the amount levied for collection in 2000; plus __.. B. An estimated increase of $13,924 for recent annexations; plus C. An estimated increase of $92,282 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 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. ATTEST: p Place, Mayor City Clerk Publication Date: 11 -17 -2000 Effective Date: 11 -14 -2000 (110ord /ProPeTtYfax levy 2 2980 rlp BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 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 CA_(.:'L iil r c MY OF `YF:, _ , , , , [ 0 \t 0 0 2000 November 9, 2000 1 I r !, OF iC7: CF: CITY CO 1�F, » UNCIL ] • 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. 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 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 I \ 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 request an injunction on implementation of the initiative. In addition, I -722 will be challenged i 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 1 -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, • % ;449-t44. S tan Finkelstein AWC Executive Director • SF /SG Enclosures (not included) G: \SHEILA \722 \722 LETTER ELECTION .D0 C • • • •