TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Chip Corder |
425-556-2189 |
DEPARTMENT STAFF:
TITLE:
title
2023-2024 Preliminary Budget Public Hearing #3
OVERVIEW STATEMENT:
recommendation
Hold a public hearing on property taxes and other revenue sources for the 2023 fiscal year. Proposed tax and fee increases in the 2023-2024 preliminary budget include the following:
• Property tax levy increase of 1% in 2023 and 1% in 2024 as allowed under state law (this impacts existing property owners);
• Property tax levy increase from new construction, which is estimated to be 3.8% in 2023 and 3.6% in 2024;
• Development, parks and recreation, business license, and other fee increases in 2023 and 2024 based on inflation;
• Combined City water, wastewater and stormwater utility rate increase of 3.6% in 2023 and 3.6% in 2024 (note that there were no City utility rate increases in 2021 or 2022);
• King County Wastewater Treatment charge increase of 5.8% in 2023 and 6.5% in 2024 (this is a pass-through charge); and
• $20 per vehicle license fee, which would take effect on January 1, 2024 and be dedicated to funding pavement management projects, following the creation of a Transportation Benefit District in the second half of 2023.
The Long-Range Financial Strategy establishes a target range for the Price of Government of 5.0-5.5% of aggregate personal income in Redmond, excluding certain one-time revenues. The Price of Government is estimated to be 4.0% in 2023 and 3.8% in 2024.
body
☐ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☒ Receive Information ☐ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
N/A
• Required:
Revised Code of Washington (RCW) 84.55.120 (The legislative body must hold a public hearing on revenue sources for the coming year’s budget, including consideration of possible increases in property tax revenues, prior to the property tax certification deadline, which is November 30.)
• Council Request:
N/A
• Other Key Facts:
N/A
OUTCOMES:
The Council held two public hearings on July 5, 2022 and August 16, 2022 on the proposed 2023-2028 Capital Investment Program. Both public hearings were optional. This third public hearing on property taxes and other revenue sources for the coming fiscal year is required under RCW 84.55.120. Public hearings provide a formal opportunity for Redmond residents and business owners to give public testimony regarding the 2023-2024 preliminary budget.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
Two more public hearings on the 2023-2024 preliminary budget are scheduled for November 1, 2022 and November 15, 2022.
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
N/A
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 |
|
7/5/2022 |
Business Meeting |
Receive Information |
|
8/16/2022 |
Business Meeting |
Receive Information |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
11/1/2022 |
Business Meeting |
Receive Information |
|
11/15/2022 |
Business Meeting |
Receive Information |
Time Constraints:
Th public hearing on property taxes and other revenue sources is required prior to the property tax certification deadline, which is November 30.
ANTICIPATED RESULT IF NOT APPROVED:
N/A
ATTACHMENTS:
N/A