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ORD 09-640ORDINANCE NO. 09-640 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, MAKING A DECLARATION OF SUBSTANTIAL NEED FOR PURPOSES OF SETTING THE LIMIT FACTOR FOR T�IE PROPERTY TAX LEVY FOR 2010. WHEREAS, RCW 84.55.010 provides that a taxing jurisdiction maylevy taxes in an amount no more than the limit factor multiplied by the highest levy of the most recent three years plus additional amounts resulting from new construction and. improvements to property, newly constructed wind turbines, and any increase in the value of state-assessed utility property; WHEREAS, under RCW 84.55.005(2)(c), the limit factor for a taxing jurisdiction with a population of 10,000 or over is the lesser of 101 percent or 100 percent plus inflation; WHEREAS, RCW 84.55.005(1) defines "inflation" as the percentage change in the implicit price deflator for personal consumption expenditures for the United States as published for the most recent 12-month period by the Bureau of Economic Analysis of the federal Department of Commerce in September of the year before the taxes are payable; WHEREAS, "inflation" for July 2009 is -0.848 percent and the limit factor is 99.152 percent, meaning the taxes levied in the City of Federal Way in 2009 for collection in 2010 will decrease except for the amounts resulting from new construction and improvements to property, newly constructed wind turbines, and any increase in the value of state-assessed utility property; WHEREAS, RCW 84.55.0101 provides for use of a limit factor of 101 percent or less with a finding of substantial need by a majority plus one councilmembers; WHEREAS, major revenue sources have dramatically decreased due to the economic Ordinance No.09-640 Page 1 of 3 climate; the City previously reduced 2010 General Fund expenditures by $1.8 million and the proposed revised 2010 budget includes an additional reduction of $860 thousand; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. A finding is made of substantial need under RCW 84.55.0101, which authorizes the use of a limit factor of 101 percent for the property ta�c levy for 2010. Section 2. Severabilitv. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of the ordinance, or the validity of its application to other persons or circumstances. Section 3. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 4. Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but no limited to, the correction of scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 5. Effective Date. This ordinance shall ta.ke effect and be in force five (5) days from and after its passage and publication, as provided by law. PASSED by the City Council of the City of Federal Way this 1 Sth day of December, 2009. CITY OF FEDERAL WAY 2�Y R, J K DO EY Ordinance No.09-640 Page 2 of 3 ATTEST: C �C V l� CITY CLERK, CARO MC L, CMC APPROVED AS TO FORM: CITY ATTORNEY, PATRICIA A. RICHARDSON FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: 12/19/2009 EFFECTNE DATE: 12/24/2009 ORDINANCE NO.: 09-640 11 /24/2009 12/15/2009 Ordinance No.09-640 Page 3 of 3