2020/10/28 Council Agenda Packet

EVERETT Project title: A Resolution Finding Substantial Need for using the 101% limit factor under Chapter 84.55 RCW with regard to the levying of regular property taxes and emergency medical services property taxes Increase the Regular and EMS Property Tax levy for 2021 Taxes by One Percent for fiscal year commencing January 1, 2021 Gale council Agenda Item Cover Sheet Council Bill # Agenda dates requested: 10/28/2020 Briefing Proposed action Consent Action Ordinance Public hearing Yes X X No Budget amendment: Yes X No PowerPoint presentation: X Yes No Attachments: Resolution Department(s) involved: Finance Contact person: Susy Haugen Phone number: 425-257-8612 Email: sh a ugen @ everet-t-wa:gov Initialed by: Department head Administrat Counc*President Consideration: Property Tax Resolution of Substantial Need Project: N/A Partner/Supplier : N/A Location: N/A Preceding action: N/A Fund: General Fund and Emergency Medical Services Fund Fiscal summary statement: The Resolution establishes substantial need to raise Everett's regular levy by 1%, which equals $382,134, and the EMS levy by 1%, which equals $93,868. Project summary statement: Under state law, no local government may increase its property tax levy more than 1% in a given year, and Local governments with a population of 10,000 or more are limited to the lesser of 1% or the rate of inflation (RCW 84.55.005 - .010). However, if inflation falls below 1%, a jurisdiction with a population of 10,000 or more may adopt a resolution of "substantial need" allowing it to increase the levy (or bank the excess capacity) up to the full 1 percent. Under this RCW, inflation is measured by the Implicit Price Deflator or 1PD for personal consumption expenditures for the United States as published for the most recent twelve-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 inflation rate as of August 27, 2020 is 0.60152%, which means local governments in Washington with populations of 10,000 or more must adopt a Resolution or Ordinance of substantial need in order to receive the full 1% increase as allowed by statute. The August 27 data release is the final release before the September 25 statutory deadline. Recommendation (exact action requested of Council): Adopt Resolution finding a substantial need for using the 101% limit factor under Chapter 84055 RCW with regard to the levying of regular property taxes and emergency medical services property taxes 11