PRES 3 - ORD Property Tax Levy2024 Property Tax Levy
2023 Assessed Value
2024 Property Tax Levy
Policy Questions:
What are the City's Tax Levy options?
• Why should we approve ordinance?
• What are we approving (not the rate)?
What do you need to know first?
• Assessed Value?
• New Construction?
• Implicit Price Deflator?
• Are we near City's property tax ceiling?
Process
1. City estimates budget need
2. Requests up to 1 %increase*
3. County Assessor calculates values
4. Tax is allocated to properties
•Igo
Levy
7 �
n
in 11
Assessed Value
$
300,000
$
300,000
$
300,000
of Total
25%
25%
25%
Levy Rate per $1,000
$
0.833
$
0.833
$
0.833
Tax Paid
$
250
$
250
$
250
•l •I:
R
$ 300,000 $
25%
$ 0.833 $
$ 250 $
J
110001
11200,000
100%
0.833
1, 000
*Igo
n
7 �
Levy
$
1,000
Assessed Value
$ 300,000
300,000
$ 300,000
$ 300,000
$
1,200,000
% of Total
0
25%
25%
25%
10011/0
Levy Rate per $1,000
$ 0.833
$ 0.833
$ 0.833
$ 0.833
$
0.833
Tax Paid
$ 250
$ 250
$ 250
$ 250
$
1,000
Levy
•l •I:
$
Assessed Value
$
600,000
$
600,000
$
600,000
$
600,000 $
% of Total
25%
25%
25%
25%
Levy Rate per $1,000
$
0.417
$
0.417
$
0.417
$
0.417 $
Tax Paid
$
250
$
250
$
250
$
250 $
J
1,000
21400,000
100%
0.417
1, 000
•Igo
n
7 �
Levy
$
1,000
r
r
r
Assessed Value
$ 300,000
300,000
$ 300,000
$ 300,000
$
1,200,000
of Total
0
2s%
2S%
25%
100%
Levy Rate per $1,000
$ 0.833
$ 0.833
$ 0.833
$ 0.833
$
0.833
Tax Paid
$ 2s0
$ 250
$ 250
$ 250
$
1,000
•l •I:
J
Levy $ 1.1000
Assessed Value
$
200,000
$
300,000
$
300,000
$
400,000
$
1,200,000
of Total
17%
25 %
25%
33 %
100%
Levy Rate per $1,000
$
0.833
$
0.833
$
0.833
$
0.833
$
0.833
Tax Paid
$
167
$
250
$
250
$
333
$
110000
*Igo
n
7 �
•l •I:
C
Levy
$
11000
Assessed Value
$ 200,000
$ 300,000
$ 300,000
$ 400,000
$
1,200,000
of Total
17%
25%
25%
33%
100%
Levy Rate per $1,000
$ 0.833
$ 0.833
$ 0.833
$ 0.833
$
0.833
Tax Paid
$ 167
$ 250
$ 250
$ 333
$
1,000
Levy
11r�iA
u, n
Assessed Value $ 300,000 $ 450,000 $ 450,000 $ 600,000 $
of Total 17% 25% 25% 33 %
Levy Rate per $1,000 $ 0.561 $ 0.561 $ 0.561 $ 0.561 $
Tax Paid $ 168 $ 253 $ 253 $ 337 $
J
1,010
1,800,000
100%
0.561
1,010
WS usrzed by Dams
PRELIMINARY LEVY LIMITATIONS WORKSHEET 10.05.2023
Il(Y1900
A- Highest regular tax which k1 have been lawfully levied beginning with the IM5 levy (refund levy od included)
2023 Levy * 101% Year 2023 .
S11747.8E6 101.DD0% = $11.855.365
�aJse�Y�Yeefiia�4a
B. Current year's assessed value of new construction. improvements. and wind turbines. solar. biomass, and geothermal faciuues in original districts
would have been levied had no enor occuned),
New Construction S191.971.817 ■ 0.68729 + S1,000 = S131940
C- Tax Increment finance area increment AV increase (RCW 84.55-010(1)E) (value included in B S D carnal be ioduded in C)
so • 0.68729 + 51,000 = so
AV L % Years Levy Raw
Current years state assessed property value less last years state assessed property value. The remainder is to be multiplied by last year's regular
D' levy rate (or the rate that should have been levied).
S133,485.025 - $133.485,025 • S
Current Year's A.V. Previous Years A.V. Remainder
s0 x 0-69729 + SIDD0 SO.00
Remander tram Line C Last Years Levy Rate
E- Regular property lax limit:........................................................ A+B+C+D = $11.997.305
New AV
(Assessed Value)
I Statutory maximum calculation
any enter ire. RF A rart. h?rary rate. d, treeghter pension NM me too cities annexed to a fl iRFA or library. or has a hefighlers pension kind
3.60000 - 1.50000 0.26581 a 0.000D0 =
1.83418
Levy Lid
DSlrk:t here revy refs Foe a RFA Rare Library Rate F1reaDMer Penton Fund
$16.666.648,850 x 1.83418 + $1.D00
=$".569,63-
AV. of Deed StaLlory Rate Lrmx
J. Highest Lawful Levy For This Tax Year (Lesser of H and 1).................................... ........... =
531,997,30s
Now highaat u towful levy since 198S (Lauer of H 8 1 minus C. unless A (before limit factor increase) is greater than
K I or H minus C. then A before the limit factor Increase
511,947,305
L. Lesser ofIand J........................................
S11.997.305
M, Refunds
$41.956
N. Levy Corr6CRons Year of Error D
1 Minus amount over levied (d applicable) .......... ......................................_
S0.00
Max Request
cl
2 Plus amount under levied (itapp(icabie)...... ...........................................
O Total: L+M+!-N (unless voted rate).....................................................................................
512.039.251
P. Tax Base For Regular Levy
1. Total district taxable value (¢lcluding state -assessed property, and excluding
boats- umber assessed value- and the sema citizen exemption for the regular levy)
$18,886.60.850
Q. Tax Base for Excess and Voted Bond Levies
2. Less assessed value of the senior citizen exemption of less than S40.000 income w 65%
of the median household income for the county based on lower of frozen or market valtre.
S161.570.315
3- Plus Timber Assessed Valua(TAV) _-__-. __-__ _.______
50
4. Tax base for excess and voted band levies._-...,--.,._,----..,. _.__-__,.. (1-2-3)
16.505.078.535
New Rate
R. Increase Information
1- Levy rate based an allowable levy
0-72235
2. Las) year's ACTUAL regular levy
3. Dollar increase over last year other than New Construction (-) Annexation
76234
4. Percent Increase over last yew other than New Construction (-) Annexation
0.64665%
REV 64 D07
Page 1
Increase $117,479
Increase $131,940
Decrease 4%
Lid $30.6 million
headroom
is $18.6 million
Budgeted:
$11,938,000
$18,000,000,000
$16,000,000,000
$14,000,000,000
$12,000,000,000
$10,000,000,000
$8,000,000,000
$6,000,000,000
$4,000,000,000
$2,000,000,000
$0
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Assessed Value
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
2014 2015 2016 2017
Tax Levy
2018 2019 2020 2021
2022 2023 2024
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
Tax Levy
I � Aj ,
2014 2015 2016 2018 2019 2020 2021 2022 2023 2024
Tax Rate
2014 2015 2016 2017 2018 2020 2021 2022 2023 2024
Lid Available
$18,620,147
When Assessed Values
Go Down,
Can City request full 1%*?.
nil-rit FrI-C!P- DPfUltC
R�ment of
vp�nue
Gsh,non State
September 26, 2023
Dear County Assessors:
What is th ?
The rate o inflation (IPD rate) far property taxes due in 2024 is 3.67 percent.
What is the limit factor for 2024 provided the taxing district adopts a resolution/ ordinance
authorizing an increase over the prior year's levy?
Far the state and ta xi ng districts with populations of 10,000 or greater, the limit factor for property
taxes due in 2024 is 101 percent. IThe limit factor for these districts is defined as 100 percent plus the
lesser of the rate of inflation or one percent.
How is the rate of inflation (IPD rate) calculated?
The rate of inflation is the percent change in the implicit price deflator for personal consumption as
published by the Bureau of Economic Analysis by September 251h.
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Seattle -Tacoma -Bellevue
CPI Year -aver -Year Inflation
Source: US Bureau of Labor Statistics
rl ri ri ri ri ei r-I rl ri ri ri N N N ry N N N N N N N N M M M M M M M M
N N N N N N N N N N ry N N N N ry N N N N N rV ry N N N N N N N N N
s = on Ct > V C.0 c= Qo a t > V C s = U
$120.00
$115, 00
$110 00
Tacoma -Bellevue
nulative Inflation
Bureau of Labor Statistics
$105 00
$100, 00
$95.00
$90,00
ri ri N N N ry N N N N N N N N M M M M M M M M
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
C _ 7 C — M a } V C - ? C — M a } V C 4 7 C — 40
LL Q Q �: O Z 0 �° - g Q Q v°1i Z O - g a f 6 � zt
a
What do Federal Way
Taxpayers see on their
Property Tax bill?.
§Fveriapping Property T-�
2023 Overlapping Property Tax Rates
FW school District Washington state Fine District 239 I(ing County City Others*
33% 24% 16% 11% 7% 8%
---------- V ----------- V—
'III EA,X1 SUN'
THIS NOTE ISLE LLTENDER
FOR ALL DEBTS, PUB : AND PRIVATE IXj
F59 )-2194! P
WA HEgGToW D (
G
F5952194S
G
M
0% ]0% 20% 30% 40% sm W% 70% 80% 90% 1"
*others: Library 3%, Emergency Medical Services 2%, Sound7ransit2%, KC Flood Zone 1%, Port of Seattle 1%
What will the effect be on the
2024 Budget?.
Nrnnprtv lax Havanut;
2024 Levy $12.0 million
2023-24 Budget forecasted $11.9 million
City of Federal Way - General Fund - Property
$12,000,000 Tax Revenue
$10,000,000
$6,000,000
$4,000,000
$2,000,000
$❑
��F,
Levy Request
Process
✓ City estimates budget need
✓ 2024 Revenue budget: $11.9 million
o Requests up to maximum increase
o Ordinance requests $12.1 million
Next Steps
2024 Tax Levy
• October FEDRAC discussion
• Hearing Nov. 8th
• Ordinance introduced Nov. 8th
• Ordinance enacted Nov. 21st
LG 047.27792 -
F 100
LG 04TZ7792
100