TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Chip Corder |
425-556-2189 |
DEPARTMENT STAFF:
|
Finance |
Kelley Cochran |
Deputy Finance Director |
TITLE:
title
Adoption of an Ordinance Establishing the 2022 Property Tax Levy for General Operations
a. Ordinance No. 3068: An Ordinance of the City of Redmond, Washington, Levying Property Taxes for the City of Redmond tor the Fiscal Year Commencing January 1, 2022, 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, Recognize Voter Approved Levy Lid Lifts for Public Safety and Parks for the Ensuing Year as Required by Law
OVERVIEW STATEMENT:
recommendation
The property tax ordinance establishes the 2022 property taxes for general operations and for supporting Redmond’s Levy Funds for Parks and Public Safety. 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.
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☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
2021-2022 Adopted Budget
• Required:
(RCW) 85.55.005
• Council Request:
N/A
• Other Key Facts:
N/A
OUTCOMES:
Redmond received preliminary property tax figures from King County for 2022 on September 30, 2021, 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 worksheet is 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 November 30, 2021.
The attached ordinance establishes the 2022 property taxes at $30,436,367 with $23,811,080 for general operations and $6,625,287 supporting Redmond’s levy funds.
The City’s assessed valuation has increased from $27.1 billion in 2021 to $30.2 billion in 2022, or by 11.4% according to King County’s preliminary numbers.
These numbers translate into a levy rate of $1.01 per $1,000 of assessed valuation for a Redmond property owner. This is a decrease of $0.07 per $1,000 of assessed valuation from the 2021 levy rate.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
The attached ordinance sets the 2022 regular property tax levy at $30,436,367, which includes the 1% property tax increase.
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
N/A
Budget Priority:
N/A
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
N/A
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
9/22/2020 |
Business Meeting |
Provide Direction |
|
12/10/2020 |
Business Meeting |
Approve |
|
10/26/2021 |
Committee of the Whole - Finance, Administration, and Communications |
Provide Direction |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
Action is necessary before to meet King County’s deadline of November 30, 2021 for property tax collections in 2022.
ANTICIPATED RESULT IF NOT APPROVED:
If action is not taken by November 30, 2021, Redmond will not comply with the County deadline for submitting 2022 property tax levies.
ATTACHMENTS:
Attachment A: 2022 Property Tax Ordinance