2020/02/26 Council Agenda Packet

General Levy Lid Lift A general levy lid lift would require simple majority voter approval Regular Levy Lid Lift Options Temporary Single or Multi-Year Levy Lid Lift-Authorizes a jurisdiction to exceed the 1% limitation in year one or in each year for up to six consecutive years. At the end of six years,the levy will revert back to what it would have been before the levy lid lift Permanent Multi-Year Levy Lid Lift—Authorizes a jurisdiction to exceed the 1% limitation each year(subject to the limit factor stated in the ballot measure) for up to six years. The limit factor does not need to be the same for each year,for example, it could try to mimic inflation. At the end of six years,the lid lift does not revert, and the new maximum levy is then used as the base to calculate all future 1% levy limitations. Permanent Single-Year Lid Lifts-A permanent single-year lid lift bumps up the levy amount more than 1% in the first year, and then that amount is used to calculate all future 1% levy limitations. The measure never expires, and the levy lid never reverts. However, future annual increases may not exceed 1%without going to the voters for another lid lift. Impact on Median Value Property Homeowner—The cost to a median value residential property owner would depend on the amount of lift requested. A table showing the incremental cost increases for levy lid lifts is provided on page 9. Optional Exemptions- Senior citizens, disabled veterans, and other people with disabilities (as defined in RCW 84.36.381) may be exempted from the tax increase resulting from a levy lid lift. The exemption must be stated in the ballot measure. Structural Deficit Reduction—The deficit projected for 2021 is$12,870,000. A levy lid lift of$0.64 would be required to close that gap, based on Everett's 2020 assessed value. A$0.64 lid lift would add approximately $249 to the median homeowner's tax bill. Timeline—The process for bringing a levy lid lift to the voters for consideration is less complex that the other deficit reduction options; however, it would still require an aggressive timeline to place on the August ballot in order to be able to add to the tax rolls and produce revenue in 2021. The heaviest lifts would be bringing together a grassroots committee to promote the lid lift and developing the messaging plan Estimated timeline: Select Lift Type Identify Lift Amount Create Grassroots Org. Develop Messaging Plan Market Lid Lift Prepare Ballot Vote Implement Lift Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan 2020 2021 Recommendation—Begin process to place a Lid Lift request on the August ballot for implementation in 2021. Alternative Service Delivery/Funding Models Wage