MEMO TO: Members of the City Council
FROM: Mayor John Marchione
SUBJECT:
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Approval of 2018 Property Tax Levy Ordinance for General Operations
1. ORDINANCE NO. 2910: An Ordinance Levying Property Taxes for the City of Redmond for the Fiscal Year Commencing January 1, 2018, on all Property, Both Real and Personal, in Said City which is Subject to Taxation for the Purpose of Paying Sufficient Revenue to Carry on General Operations and Recognize Voter Approved Levy Lid Lifts for Public Safety and Parks for the Ensuing Year as Required by Law
I. RECOMMENDED ACTION
recommendation
Adopt the ordinance establishing the 2018 property tax levy for general operations.
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II. DEPARTMENT CONTACTS
Malisa Files, Finance Director; (425) 556-2166
Kelley Cochran, Financial Planning Manager; (425) 556-2748
III. DESCRIPTION/BACKGROUND
Pursuant to state law, the City of Redmond may levy property taxes annually for general operations. The Revised Code of Washington (RCW) 85.55.005 allows a jurisdiction over 10,000 in population to raise property taxes by the lesser of the implicit price deflator or 1% plus new construction, annexations, and other miscellaneous adjustments (e.g. refunds) with a simple majority vote.
Redmond received preliminary property tax figures from King County for 2018 on
November 1, 2017, which did not include assessed valuation numbers for new construction on state public utilities. As a result, these numbers are estimates and are subject to change once the final worksheets are received from King County. The attached ordinance (Attachment A) is based on preliminary information, as King County must receive Redmond’s property tax request by December 1, 2017.
The attached ordinance establishes the 2018 property taxes at $26,067,126 with $19,675,041 for general operations and $6,392,085 supporting Redmond’s levy funds.
The City’s assessed valuation has increased from $18.6 billion in 2017 to $20.6 billion in 2018 or by 10.5% according to King County’s preliminary numbers.
These numbers translate into a levy rate of $1.27 per $1,000 of assessed valuation for a Redmond property owner. This is a decrease of $0.08 per $1,000 of assessed valuation from the 2017 levy rate.
IV. PREVIOUS DISCUSSIONS HELD
The Council was briefed on property taxes at the Council meeting on November 21, 2017, as well as at the Finance, Administration and Communications Committee on
November 28, 2017.
V. IMPACT
A. Service/Delivery:
The attached ordinance sets the 2018 regular property tax levy.
B. Fiscal Note:
The attached ordinance sets the 2018 regular property tax levy at $26,067,126 which includes the 1% property tax increase.
VI. ALTERNATIVES TO STAFF RECOMMENDATION
The Council can choose to not adopt the ordinance. King County would not collect property taxes on behalf of the City which would have a negative impact on Redmond’s 2018 budget.
VII. TIME CONSTRAINTS
Action is necessary immediately in order to provide King County with the necessary legislation to collect property taxes on behalf of the City.
VIII. LIST OF ATTACHMENTS
Attachment A: 2018 Property Tax Levy Ordinance