3a - Property Tax LevyCity of Federal Way
2016 PROPERTY TAX LEVY
2015/16 Proposed Biennial Budget
Amendment
November 3, 2015
resented by:
)ola, Finance Director
Mid -Biennium Budget
Adjustment Calendar
✓ NOVEMBER 2, 2015 - SPECIAL MEETINGS - 6:30 PM
✓ Council Study Session on the 2015/16 Mid -Biennium Budget Adjustment
✓ NOVEMBER 3, 2015 - REGULAR MEETING - 7:00 PM
✓ PUBLIC HEARING (required by RCW 35A.34) 2015/16 Biennial
Budget/Property Tax Rate
• NOVEMBER 17, 2015 - REGULAR MEETING - 7:00 PM
• PUBLIC HEARING CONTINUED - 2015/16 Biennial Budget/Property Tax Rate
• Introduction Ordinance - 2015/16 Mid -Biennium Budget Adjustment
• Introduction Ordinance - 2016 Property Tax Rate
• DECEMBER 1, 2015 - REGULAR MEETING - 7:00 PM
Enactment Ordinance - 2015/2016 Mid -Biennium Budget Adjustment
• Enactment Ordinance - 2016 Property Tax Rate
Resolution/Fee Schedule 2016 Amendme
Legislative Questions
Are we in compliance with:
RCW
84.55.005
RCW
84.55.120
RCW
84.55.010
RCW
84.55.0101
RCW
84.52.020
What is the percent increase over last year, other
than new construction?
What is the rate?
h,L%.,,How does it compare to other entities?
RCW 84.55.005 — Definitions
(1) "Inflation" means the percentage change in the implicit price deflator 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;
(2) "Limit factor" means:
(a) For taxing districts with a population of less than ten thousand in the calendar year prior
to the assessment year, one hundred one percent;
(b) For taxing districts for which a limit factor is authorized under RCW 84.55.0101, the
lesser of the limit factor authorized under that section or one hundred one percent;
(c) For all other districts, the lesser of one hundred one percent or one hundred
percent plus inflation; and
A(3) "Regular property taxes" has the meaning given it in RCW 84.04.140.
RCW 849559120 — 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
m atte i .
,.
RCW 849559120 — Public Hearing-cont.
(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 percentaae. 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.
(b) Exempt from the requirements of (a) of this subsection are increases in revenue
resulting from the addition of:
(i) New construction;
(ii) Increases in assessed value due to construction of wind turbine, solar, biomass,
and geothermal facilities, if such facilities generate electricity and the property is not
included elsewhere under this section for purposes of providing an additional dollar
amount. The property may be classified as real or personal property;
(iii) Improvements to property; and
,l Any increase in the value of state -assessed property.
RCW 84955.010 — Limitations Prescribed
Except as provided in this chapter, the levy for a taxing district in any year must be
set so that the regular property taxes payable in the following year does [do] not
exceed the limit factor multiplied by the amount of regular property taxes lawfully
levied for such district in the highest of the three most recent years in which such
taxes were levied for such district plus an additional dollar amount calculated by
multiplying the regular property tax levy rate of that district for the preceding year
by the increase in assessed value in that district resulting from:
(1) New construction;
(2) Increases in assessed value due to construction of wind turbine, solar,
biomass, and geothermal facilities, if such facilities generate electricity and the
property is not included elsewhere under this section for purposes of providing an
additional dollar amount. The property may be classified as real or personal
property;
(3) Improvements to property; and
(4) Any increase in the assessed value of state -assessed property
RCW 8405500101 - 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.
L -.
Ar
RCW 84o529020 — City & District
Budgets to Be Filed With CLA.
It shall be the duty of the city council or other governing
body of every city, other than a city having a population of
three hundred thousand or more, the board of directors of
school districts of the first class, the superintendent of each
educational service district for each constituent second-class
school district, commissioners of port districts, commissioners
of metropolitan park districts, and of all officials or boards of
taxing districts within or coextensive with any county required
by law to certify to the county legislative authority (CLA), for the
purpose of levying district taxes, budgets or estimates of the
amounts to be raised by taxation on the assessed valuation of
the property in the city or district, through their chair and clerk,
or secretary, to make and file such certified budget or
estimates with the clerk of the county legislative authority on or
,,; before the fifth fourth of December.
* 0
IPD Rate
O
INFLATION
G The rate of inflation (lPD Rate) for property taxes due in
2016 is 0.251 %
For the state and taxing districts with populations of
10,000 or greater, the limit factor for property taxes due
in 2016 is 100.251 %
The limit factor for the City of Federal Way is defined as
100% plus the lesser of the rate of inflation or 1 %
Proposed Ordinance
Public Hearing —
November 3, 2015
November 17, 2015
Limit factor — 101 % or IPD 100.251 %
Rates:
Old —
1.248
per
$1,000
of AV
New
- 1.188
per
$1,000
of
AV
NOTICE
OF
PUBLIC
NEARING
Percent decrease over Last Year — 0.01 %
Total property tax revenue decrease of $1,230 & new const. etc.
This Ordinance will be certified and sent by Dec. 4.
Allowable Levy
Last year ACTUAL regular levy — $10,378,185
This year levy based on Limit Factor
$10,376,955
Dollar Increase (Decrease) over last year
$10,378,185 — $10,376,955 = ($1,230)
Percent increase (decrease) over last year
(11230)/1033783185 = (0.01 %)
Rate History
2015
2014
Voted
Non -Voted
Total
Total
District
0.00000
1.24751
1.24751
1.39626
City of Federal Way
School District
6.41551
0.00000
6.41551
7.28151
King County
0.35565
0.98957
1.34522
1.51579
Washington State
0.00000
2.28514
2.28514
2.47040
County Flood Zone
0.00000
0.13860
0.13860
0.15369
Port of Seattle
0.00000
0.18885
0.18885
0.21530
County Ferry District
0.00000
0.00000
0.00000
0.00349
Fire District #39
0.27025
1.50000
1.77025
1.81355
Library
0.05529
0.44747
0.50276
0.56175
EMS
0.30217
0.00000
0.30217
0.33500
7.39887
6.79714
14.19601
15.74674
Total Levy Rate
2014 & 2015 Total Rate
EMS
Library
Fire District #39
County Ferry District
Port of Seattle
County Flood Zone
Washington State
King County Aw
School District
CITY OF FEDERAL WAY
■ 2014 2015
0 2 4 6 8
2015 Property Tax Breakdown
iY A
00.
N�.
Property Tax Rate Comparison
Years
Federal
Kent
Auburn
Burien
Renton
Seattle
SeaTac
Way
2004
1.30
2.85
2.88
1.45
3.33
3.60
2.82
2005
1.27
2.94
2.87
1.47
3.23
3.59
2.80
2006
1.22
2.80
2.73
1.60
3.12
3.38
2.77
2007
1.14
2.56
1.48
1.10
2.88
3.43
2.61
2008
1.04
2.36
1.49
1.39
2.62
3.07
2.45
2009
0.97
2.18
1.49
1.26
2.37
2.86
2.34
2010
1.13
2.36
1.82
1.52
2.71
3.23
2.58
2011
1.20
1.48
1.93
1.56
2.83
3.36
2.80
2012
1.30
1.57
2.08
1.60
3.10
3.58
2.88
2013
1.42
1.69
2.10
1.60
3.10
3.29
3.10
2014
1.40
1.65
2.17
1.60
3.15
3.05
3.10
2015
1.25
1.58
2.08
1.59
2.83
2.62
3.16
2016*
1.19
Preliminary
0
2015 �ities' Property Tax Rates
SeaTac 3.16
Seattle 2.62
Renton 2.83
Bu rie n 1.59
Auburn 2.08
Kent 1.58
FEDERAL WAY 1.25
0 1 2 3 4
Policy Question
Should the City Council increase the regular property tax consistent
with the limit factor as authorized by State statute?
Proposed Levy
Based on Statutory IPD increase limit, plus new construction
Preliminary rate is approximately $1.185 per $1,000 assessed value
Mayor's Recommendation:
Conduct public hearing and approve the 2016 Property Tax Levy
Ordinance
authorize the Finance Director to sign the appropriate form
Questions ?
Thank You!