11-04-2020 2021 Property Tax Public Hearing2021 Property Tax
Public Hearing
City Council Meeting
November 4, 2020
Presented by:
Adé Ariwoola, Finance Director
2021-2022 Biennial Budget
RCW 84.55.120 –Public Hearing
◼(1) A taxing district, other than the state, that collects regular levies must hold a
public hearing on revenue sources for the district's following year's current expense
budget. The hearing must include consideration of possible increases in property tax
revenues and must be held prior to the time the taxing district levies the taxes or
makes the request to have the taxes levied. The county legislative authority, or the
taxing district's governing body if the district is a city, town, or other type of district,
must hold the hearing. For purposes of this section, "current expense budget"
means that budget which is primarily funded by taxes and charges and reflects the
provision of ongoing services. It does not mean the capital, enterprise, or special
assessment budgets of cities, towns, counties, or special purpose districts.
(2) If the taxing district is otherwise required to hold a public hearing on its proposed
regular tax levy, a single public hearing may be held on this matter.
(3)(a) Except as provided in (b) of this subsection (3), no increase in property tax
revenue may be authorized by a taxing district, other than the state, except by
adoption of a separate ordinance or resolution, pursuant to notice, specifically
authorizing the increase in terms of both dollars and percentage. The ordinance
or resolution may cover a period of up to two years, but the ordinance must
specifically state for each year the dollar increase and percentage change in the levy
from the previous year.
22021-2022 Biennial Budget
RCW 84.55.0101 –Authorization for
Taxing District to use 101% or less
◼Upon a finding of substantial need, the legislative
authority of a taxing district other than the state may
provide for the use of a limit factor under this chapter
of one hundred one percent or less. In districts with
legislative authorities of four members or less, two -
thirds of the members must approve an ordinance or
resolution under this section. In districts with more than
four members, a majority plus one vote must
approve an ordinance or resolution under this section.
The new limit factor shall be effective for taxes
collected in the following year only.
42021-2022 Biennial Budget
42021-2022 Biennial Budget
1.MAXIMUM Increase in Property
Tax: 1% plus New Construction,
and Annexation
2.Lower of 1% or IPD. IPD is 0.60%
3.To use 1% instead of 0.60%
4.New Construction?
5.Annexation?
Levy Analysis
Proposed Ordinance
▪Proposed Levy is 1%
▪Rate of Inflation is 0.6%
▪The Lower is 0.6%
▪Substantial Need Resolution is
Proposed
62021-2022 Biennial Budget
62021-2022 Biennial Budget
Property Tax
The City of Federal Way has had the lowest property tax rate amongst
comparable cities for the last 10 years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Auburn 1.82 1.93 2.08 2.10 2.17 2.08 2.05 2.20 2.03 1.92
Federal Way 1.13 1.20 1.30 1.42 1.40 1.25 1.19 1.13 1.06 0.97
Kent 2.36 1.48 1.57 1.69 1.65 1.58 1.51 1.41 1.63 1.49
Renton 2.71 2.83 3.10 3.10 3.15 2.83 2.71 2.61 1.15 1.12
SeaTac 2.58 2.80 2.88 3.10 3.10 3.16 3.00 2.89 2.75 2.57
Seattle 3.23 3.36 3.58 3.29 3.05 2.62 2.77 2.61 2.36 2.28
Sales Tax
72021-2022 Biennial Budget
Tax Levy Calendar
6
◼Public Hearing –
◼November 4, 2020
◼November 17, 2020
◼First Reading of the Ordinance
◼November 17, 2020
◼Second Reading of the Ordinance & Certification of
the levy
◼December 1, 2020
◼This Ordinance will be certified and sent by
December 2, 2020
2021-2022 Biennial Budget
CONCLUSION
92021-2022 Biennial Budget
•Resolution: Finding of Substantial Need
for Purpose of Setting the Limit Factor.
•1% Property Tax Increase
Questions?
T
102021-2022 Biennial Budget