HomeMy WebLinkAbout2022-031 Public hearing and ordinances pertaining to Ad Valorem Taxes to be levied for collection in Fiscal Year 2023 - Annual Property Tax LevyORDINANCE A
ORDINANCE NO. 2022-031
AN ORDINANCE relating to the annual property tax levy; declaring the City Council's intent to
increase the City's 2023 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, 2022, 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 2023 current expense budget, and the total proposed
property tax levy amount pertaining to 2023 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 6.457%;
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, 2022 and, 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
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 $2.34/$1,000 AV in
2022 and staff is projecting the levy rate for 2023 to be $1.98/$1,000 AV; and
ORDINANCE A
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 2022 was $20,600,919 for
general government purposes; and
WHEREAS, the discretionary increase in property tax levied attributable to the inflation
factor for collection in 2023 shall be in the amount of $206,009, 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 2023 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 2023:
A. A discretionary increase of $206,009, attributable to the inflation factor
which is a percentage increase of 1.0% over the amount levied for
collection in 2022; plus
B. An estimated increase of $2,971 for recent annexations; plus
C. An estimated increase of $335,185 for new construction and improvements
to property; plus
D. An estimated increase of $114,304 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, 2022.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this ordinance
shall take effect on November 1, 2022.
PASSED BY THE CITY COUNCIL, signed and approved this 1st day of November, 2022.
ATTEST:
Sonya ar Tee, City Clerk 1 '•)
Publication Date: November 4, 20?2/
\14P
Effective Date: November 1, 2022
Janice Deccio, Mayor
1
ITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.
For Meeting of: November 1, 2022
Public hearing and ordinances pertaining to Ad Valorem Taxes to
be levied for collection in Fiscal Year 2023
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 2022 levels. It
is required by RCW 84.55.120. This is legally necessary to increase the 2023 tax collections by
any amount over 2022 levels.
Ordinance B fixes the maximum tax levy for collection by the City in 2023. 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
p Ordinance A
0 Ordinance B
p Memo
Upload Date
10/ 19/2022
10/ 19/2022
10/19/2022
Type
Cover Memo
Ordinance
Coker Memo