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HomeMy WebLinkAbout3726Ordinance No. 3726 (Amending or Repealing Ordinances) CFN=104 - Finance Passed - 12/14/2004 Tax Levy Adjustment Authorized (1%, Plus Banked Capacity) - 2005 Budget ORDINANCE NO. 74L(o AN ORDINANCE of the City Council of the City of Kent, Washington, authorizing the 2004 property tax levy for the 2005 budget at the previous year's maximum allowed tax levy, with a statutorily allowed one (1) percent increase to partially cover impacts from inflation, for collection in 2005, together with any increases resulting from the addition of new construction and improvements to property, from any increase in the value of state -assessed property, from the refund fund levy, and from annexed properties. RECITALS A. Pursuant to RCW 84.55.120 and after providing all appropriate notice, the Council held a public hearing on September 21, 2004, to consider the City of Kent's operating and capital budget for the 2005 calendar year, and held a public hearing November 16, 2004, to address the City's 2004 property tax levy, revenues, and limit as well as the proposed 2005 budget. B. In accordance with RCW 84.55.120, any increase in property tax revenue than that resulting from the addition of new construction and improvements to -ty, annexations, and any increase in the value of state -assessed property and the I fund levy, requires the adoption of a separate ordinance from the tax levy ordinance authorizing the increase in terms of both dollars and percentage. 1 Tax Levy Adjustment Authorized (I %, Plus Banked Capacity) - 2005 Budget C. The City Council finds that in order to best protect the public health, safety, and welfare, to protect the City's future property tax levy capacity, to serve the citizens of Kent by maintaining an appropriate level of service throughout the City, to appropriately discharge the City's expected expenses and obligations, and to best serve the citizens of Kent through a continued commitment to capital improvements throughout the City, a substantial need exists to increase its tax levy by using all the City's "banked" tax levy plus the one (1) percent limit factor allowed by law. In prior years, the City has always set its tax levy at the maximum level permitted by law, but has rather reduced tax levy below the level it could otherwise impose. Pursuant to RCW 84.55.092, this amount of regular property tax which would otherwise have been allowed if City had levied the full amount of regular property tax that the City could have levied in prior taxing years constitutes the City's "banked" regular property tax capacity. D. Accordingly, the regular property tax levy for the 2005 budget—in addition the increase resulting from the addition of new construction and improvements to , and any increase in the value of state -assessed property, the refund fund levy, and properties—should use the City's banked property tax capacity and should established at the previous year's maximum allowed property tax levy, plus the allowed one (1) percent increase for inflation. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, ASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION]. - Recitals Incorporated The foregoing recitals are incorporated into ordinance. 2 Tire Levy Adjustment Authorized (1 %, Plus Banked Capacity) - 2005 Budget SECTION2. - Property Tax Levy Authorized In addition to the increase resulting from new construction and improvements to property, from annexations, from any increase in the value of state -assessed property, and from the refund fund levy, the 2004 regular property tax levy for the 2005 budget is authorized at the previous year's maximum allowed property tax levy, including the City's banked property tax capacity, plus the statutorily allowed one (1) percent increase for inflation. Pursuant to RCW 84.55.120, the increase in property tax revenue is calculated to be $1,195,835, representing five and four -tenths (5.4) percent, in addition to the effects of new construction, annexations and increases in state -assessed property. SECTION 3. - Severability If any one or more sections, subsections, or sentences hof this ordinance are held to be unconstitutional or invalid, such decision shall not affect validity of the remaining portion of this ordinance and the same shall remain in full and effect. SECTION 4. - Effective Date. This ordinance shall take effect and be in force five days from and after its passage, approval, and publication as provided by law. ATTEST: BRENDA JACOBER, CITY CLERK 3 Tax Levy Adjustment Authorized (1 %, Plus Banked Capacity) - 2005 Budget APPROVED AS TO FORM: �VAL r A 1.P � TOM BRUBAKER, CITY ATTORNEY PASSED: /�/ day of December, 2004. APPROVED: - /I/ day of December, 2004. PUBLISHED: day of December, 2004. I hereby certify that this is a true copy of Ordinance No. 3 7,),L passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. a �`--e�(SEAL) BRENDA JACOBEIV, CITY CLERK 4 Tax Levy Adjustment Authorized (1 %, Plus Banked Capacity) - 2005 Budget