HomeMy WebLinkAbout2021-038 Public hearing and ordinances pertaining to Ad Valorem Taxes to be levied for collection in Fiscal Year 2022ORDINANCE A
AN ORDINANCE
ORDINANCE NO. 2021-038
relating to the annual property tax levy; declaring the City Council's intent
to increase the City's 2022 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 1, 2021 and
November 16, 2021, 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 2022 current expense
budget, and the total proposed property tax levy amount pertaining to 2022 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 3.860%;
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 1, 2021 and November
16, 2021, 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
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 $2.53/$1,000 AV in
2021 and staff is projecting the levy rate for 2022 to be $2.32/$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 2021 was $20,107,989.68
for general government purposes; and
WHEREAS, the discretionary increase in property tax levied attributable to the inflation
factor for collection in 2022 shall be in the amount of $201,079.90, 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 2022
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 2022:
A. A discretionary increase of $201,079.90, attributable to the inflation factor
which is a percentage increase of 1.0% over the amount levied for
collection in 2021; plus
B. An estimated increase of $0 for recent annexations; plus
C. An estimated increase of $249,373.42 for new construction and
improvements to property; plus
D. An estimated increase of $53,663.63 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, 2021.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this ordinance
shall take effect on November 16, 2021.
ORDINANCE A
PASSED BY THE CITY COUNCIL, signed and approved this 16th day of November,
2021.
ATTEST:
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r
Sonya Claaryi ee, City Clerk
Publication Date: November 19, 2021
Effective Date: November 16, 2021
Cif
atricia Byers, NI yor
1
ITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 6.
For Meeting of: November 16, 2021
Public hearing and ordinances pertaining to Ad Valorem Taxes to
be levied for collection in Fiscal Year 2022
Bob Harrison, City Manager
Jennifer Ferrer -Santa Ines, Director of Finance and Budget
SUMMARY EXPLANATION:
This agenda item includes two (2) separate Ordinances.
Ordinance A identifies Council's intent to authorize an increase in the tax levy over 2021 levels. It
is required by RCW 84.55.120. This is legally necessary to increase the 2022 tax collections by
any amount over 2021 levels.
Ordinance B fixes the maximum tax levy for collection by the City in 2022. This Ordinance
complies with RCW 35.33.135 and in accordance with Article VI I, Section 2 of the City Charter,
requires a super -majority approval (i.e. a minimum affirmative vote of five members) by City
Council.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Pass Ordinances
ATTACHMENTS:
Description
0 urainanceA
CI Ordinance B
O Red Lined Ordinance A
❑ Red Lined Ordinance B
Upload Date
11/3/2021
11/3/2021
11/3/2021
11/3/2021
Type
Ordinance
Ordinance
Backup Material
Backup Material
2
❑ Memo and Exhibits 11/3/2021 Cotter Memo