HomeMy WebLinkAboutORD 5506CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5506
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, RELATING TO THE
COUNTY REGULAR PROPERTY TAX LEVIES FOR COLLECTION IN 2010;
IMPLEMENTING RCW 84.55.0101, FINDING SUBSTANTIAL NEED AND
PROVIDING FOR A LIMIT FACTOR OF ONE HUNDRED PERCENT (100%) AND
BANKING ONE PERCENT (1%) FOR FUTURE NEEDS.
WHEREAS, RCW 84.55.005 establishes the "Limitations Upon Regular Property Taxes"
which all taxing jurisdictions must use in calculating the amount of regular property tax levy
which may be levied to provide governmental services; and
WHEREAS, the limitation is generally restricted to a "limit factor", which is equal to the
lower of one percent (1%) or inflation. Inflation is measured as the percentage change in the
"implicit price deflator" (IPD) as published for the most recent twelve-month period by the
Federal Department of Commerce in September of the year before the taxes are payable; and
WHEREAS, the September 2009 IPD is negative 0.848%, therefore, the City's 2010
Property Tax levy would have been 99.152% of the regular property taxes levied by the City in
2009, together with certain increases in assessed valuations as set forth by law; and
WHEREAS, notwithstanding the foregoing general limitations, RCW 84.55.0101 permits
the City to adopt, as a limit factor, a percentage increase up to 101% provided that the Council
enters a finding of substantial need and approves the increased limit factor by an affirmative
vote of a majority plus one vote; and
WHEREAS, the Council has held two public hearings in regard to the 2010 Annual
Budget which included consideration of revenue sources for anticipated current expenses to
provide City services, and possible increases in property tax revenues; and
ORDINANCE NO. 5506
WHEREAS, the City has made $15 million reduction in service costs over the past
eighteen months and the Proposed Budget included an additional General Governmental cost
reductions in excess of $6.8 million; and
WHEREAS, the Council is concerned when many City residents and businesses are facing
unprecedented financial challenges about balancing the effect of increasing the tax levy against
the increased services demands from those in need; and
WHEREAS, based on the above findings, the Renton City Council finds that a substantial
need exists for the use of the property tax limit factors to set the property tax levy rate at one
hundred percent (100%) of the 2009 rate; and
WHEREAS, there are substantial challenges economically for the year 2011 and beyond
which create a further substantial need including:
• The local economic impact of the present recession and projected future financing
challenges;
• The substantial infrastructure needs for transportation improvements, necessary
improvements to existing City operational facilities, and community parks, fields,
and recreation facilities including those projects listed on the City's Capital
Improvement Plan;
• Startup and construction interest costs for the new South Correctional Entity Facility
needed by 2012;
• Funding for additional emergency and disaster recovery capabilities; and
• Funding to close the projected structural defect in the budget;
ORDINANCE NO. 5506
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
SECTION I. The above findings are true and correct in all respects.
SECTION II. Future substantial need exists whereby the Council elects to charge in
2010 one hundred percent (100%) of the property tax levy for 2009, under the authority of
RCW 84.55.0101, to produce revenues sufficient to meet 2010 current expenses.
SECTION III. The regular property levy, excluding the increase resulting from the
addition of new construction and improvements to property and any increase in state-assessed
property, is authorized for collection in 2010 in the amount of $31,066,442 which is zero
percent (0%) increase from the amount authorized for the previous year, together with any
increases from annexation, new construction, state-assessed properties and all allowable levies.
SECTION IV. Future substantial need exists and the Council elects to bank one percent
(1%) of the allowed property tax levy to protect future levy capacity above the rate of inflation
up to the maximum allowed by law.
SECTION V. This ordinance has been passed by the affirmative vote of at least a
majority plus one of the whole membership of the City Council.
SECTION VI. This ordinance shall be effective upon its passage, approval, and thirty
(30) days after publication.
PASSED BY THE CITY COUNCIL this 23rd day of November , 2009.
Bonnie I. Walton, City Clerk
ORDINANCE NO. 5506
APPROVED BY THE MAYOR this 23rd day of November , 2009.
Denis Law, Mayor
Approved as to form:
Lawrence J. Warren, City Attorney
Date of Publication: 11/27/2009 (summary)
ORD:1602:ll/12/09:scr