HomeMy WebLinkAbout2019RESOLUTION NO. 2019
A RESOLUTION of the City Council of the
City of Kent, Washington, finding a substantial need
exists for purposes of exceeding the rate of inflation
and setting the limit factor for the property tax levy
for collection in TOZL at a statutorily allowed one
percent increase over last year's tax levy rate,
pursuant to Chapter 84.55 RCW,
RECITALS
A. Pursuant to RCW 84.55,120 and after providing all appropriate
notice, the City Council held public hearings on September 15, 2020 and
October 20, 2020, to consider the City of Kent's proposed operating and
capital budget for 2O2L, to address the City's property tax levy to be
imposed in 2O2O for collection in 2O2L, and to review revenues, limit factors,
and the proposed 202L budget.
B, RCW 84.55.010 provides that a taxing jurisdiction may levy
taxes in an amount no more than the limit factor multiplied by the highest
levy of the most recent three years, plus additional amounts resulting from
new construction and improvements to property; newly constructed wind
turbines, solar, bio mass, and geothermal facilities; and any increase in the
value of state-assessed utility property. The limit factor for a taxing
jurisdiction with a population of 10,000 or more is the lesser of 101 percent
or 100 percent, plus inflation,
Propetty Tax Limit Factor of 7o7o/o
Finding of Substantial Need
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C. The rate of inflation for purposes of calculating the property
tax limit factor is defined by RCW 84.55.005(2)(b) and determined by the
percentage change in the implicit price deflator for personal consumption
expenditures for the United States as publishes for the most recent 12-
month period by the Bureau of Economic Analysis of the federal Department
of Commerce by September 25th of the year before the taxes are payable.
The rate of inflation for determining the limit factor applicable to taxes
collected in 2O2L is 0.602 percent. A limit factor based on this rate of
inflation is 100.602 percent.
D. Upon a finding of substantial need, the City Council may
exceed the rate of inflation and provide for the use of a limit factor of 101
percent. The resolution setting forth the finding of substantial need and
setting the limit factor of 101 percent must be passed by a majority of the
council members, plus one.
E, During 2020, the City has seen major reductions in sales tax,
real estate excise taxes, building permits, charges for services, and interest
revenues during 2020. The City has responded with service level reductions
and a 2.7o/o reduction in the City's workforce, which equates to a reduction
of 20 positions, Due to the low inflation rate, in the event a substantial need
is not declared for property taxes collected in 202L, the City will realize a
decrease in the amount of property taxes collected in 2O2L compared with
2O2O and will be required to fufther eliminate City services or its workforce.
However, if the City Council finds a substantial need exists, the 9315,206
generated by the 1olo allowable increase in the City's propefty tax levy
should permit the City to retain existing services and staff, barring any
further negative impacts attributable to the current COVID-19 pandemic.
Property Tax Limit Factor of 7o7o/o
Finding of Substantial Need
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F. The City Council finds that in order to protect the public health,
safety, and welfare, to protect the City's future property tax levy capacity,
to adequately 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 over last year,
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
RESOLUTION
SECTION 7, - Recitals Incorporated. The foregoing recitals are
incorporated into the body of this resolution and constitute the findings of
the Kent City Council on this matter.
SECTION 2. - Finding of Substantial Need. The Kent City Council
finds that a substantial need exists under RCW 84.55,0101, and therefore
authorizes the use of a limit factor of 101 percent for the propefty tax levied
in 2020 for collection in 202L.
SECTION 3, - Property Tax Levv 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 property tax levied in 2020 for
collection in 2O2t is authorized at the previous year's property tax levy,
plus a one (1) percent increase, representing an increase of $315,206.
SECTION 4, - Severability. If any one or more section, subsection,
or sentence of this resolution is held to be unconstitutional or invalid, such
Property Tax Limit Factor of 7o7o/o
Finding of Substantial Need
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decision shall not affect the validity of the remaining portion of this
resolution and the same shall remain in full force and effect.
SECTION 5. - Corrections bv City Clerk Upon approval of the City
Attorney, the City Clerk is authorized to make necessary corrections to this
resolution, including the correction of clerical errors; resolution, section, or
subsection numbering; or references to other local, state, or federal laws,
codes, rules, or regulations.
ECTION 6. - Effective Date. This resolution shall take effect and be
in force immediately upon its passage.
DANA MLPH, MAYOR
November 17, 2020
Date Approved
ATTEST:
0 November 17. 2020
Date AdoptedKIMBERLEY A.MOTO, CITY CLERK
A
UR FITZPATRICK,ATTORNEY
Propefi Tax Limit Factor of 7o7o/o
Finding of Substantial Need
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