HomeMy WebLinkAbout2024-032 Ordinance A; Relating to 2025 Property Tax Levy ORDINANCE A
ORDINANCE NO. 2024-032
AN ORDINANCE relating to the annual property tax levy; declaring the City Council's intent
to increase the City's 2025 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 4, 2024,
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 2025 current expense budget, and the total
proposed property tax levy amount pertaining to 2025 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 2.57%;
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 4, 2024 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
1
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 $1.86/$1,000 AV in
2024 and staff is projecting the levy rate for 2025 to be $1.83/$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 2024 was $21,641,883.52
for general government purposes; and
WHEREAS, the discretionary increase in property tax levied attributable to the inflation
factor for collection in 2025 shall be in the amount of$216,418.84, 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 2025
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 2025:
A. A discretionary increase of$216,418.84, attributable to the inflation factor
which is a percentage increase of 1.0% over the amount levied for
collection in 2024; plus
B. An estimated increase of$12,787.28 for recent annexations; plus
C. An estimated increase of$233,829.45 for new construction and
improvements to property; plus
D. An estimated increase of$292,952.08 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 15, 2024.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this ordinance
shall take effect on November 4, 2024.
2
ORDINANCE A
PASSED BY THE CITY COUNCIL, signed and approved this 4th day of November, 2024.
ATTEST: /_,,4PKIMq •�<<I`1 Patricia Byers, Mayor
=SEA
I_
1
• I4/ A ' A \ hi l J i y� ; N. '• G-(0:
Rosalinda Ibarra, City Clerk <..Z-
Publication Date: November 7, 2024
Effective Date: November 4, 2024
3
if::.1: i4
r111-:.
e+
i
00
i
7—:.-1 0 l'-'.Yf.1 '4,t ,`OR`OAA`. ___
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 8.D.
For Meeting of: November 4, 2024
ITEM TITLE: Public hearing and Ordinances pertaining to Ad Valorem Taxes
(property tax) to be levied for collection in fiscal year 2025
SUBMITTED BY: *Viren Mayani, Director of Finance and Budget
Kimberly Domine, Financial Services Manager
SUMMARY EXPLANATION:
This item includes two separate Ordinances that support a significant portion of the General Fund.
Ordinance A identifies Council's intent to authorize an increase in the tax levy over 2024 levels. It is
required by RCW 84.55.120. This is legally necessary to increase the 2025 tax collections by any
amount over 2024 levels.
Staff recommends that the Council approve a 1.0% increase in the property tax levy, which is the
maximum increase allowed. Based on last year's General Fund base levy, the increase will be
$216,418.84. Authorization of this increase requires a simple majority vote of the City Council.
Ordinance B fixes the maximum tax levy for collection by the City in 2025. This Ordinance complies with
RCW 35.33.135 and in accordance with Article VII, Section 2 of the City Charter, requires a super-
majority approval (i.e. a minimum affirmative vote of five members) by City Council.
Staff recommends that the Council approve ad valorem taxes in the amount of$22,497,871.16, which is
needed to fund the City's 2025 Biennial budget. Approving ad valorem taxes allows the County
Assessor's Office to levy real and personal property taxes to the full extent allowed under State law.
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Pass Ordinance A and Ordinance B.
ATTACHMENTS:
Memo-2025 Property Tax Levy.docx
Ordinance A_2025
Memo-2025 Ad Valorem Taxes.docx
Ordinance B_2025
Presentation attachments.pdf
2025 Ad Valorem Property Tax Presentation.pdf
116