Public Hearing on 2016 Budget Revenue Sources & Adoption of 2016 Property Tax Levy

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1 Public Hearing on 2016 Budget Revenue Sources & Adoption of 2016 Property Tax Levy Overview of Tonight s 2016 Budget & Property Tax Agenda Items 1) Open Public Hearing 2) Accept Public comment 3) Staff will share a presentation on property taxes 4) Council will be asked to approve the attached Substantial Need Resolution 5) Council will be asked to approve the attached 2016 Property tax Ordinance 6) Next, staff will present Recommended Changes to the 2016 Budget Decision Packages 7) Next, Council to resume discussion of the 2016 Budget 8) Continue Public Hearing to December 1st,

2 2016 Regular Property Tax Levy 2016 Budget Includes 1% Property Tax Increase Assessor Shows City of Edmonds Assessed Values Increasing 8.22% (Increase in AV before adding in new construction) New Construction adds $43.5 million Assessed Value 2

3 2016 Regular Property Tax Calculation Step 1: Start From Prior Year Levy Amount 2016 Regular Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount $9,970,971 Add New Construction Add Allowance for Adjustments Add Refunds 2016 Starting Point $9,970,971 Add 1% of 2015 Levy Total 2016 Levy $9,970,971 3

4 2016 Regular Property Tax Calculation Step 2: Add Property Tax From New Construction 2016 Regular Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount $9,970,971 Add New Construction $64,017 Add Allowance for Adjustments Add Refunds 2016 Starting Point $10,034,988 Add 1% of 2015 Levy Total 2016 Levy $10,034,988 4

5 2016 Regular Property Tax Calculation Step 3: Add allowance for Assessor s Office Adjustments 2016 Regular Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount $9,970,971 Add New Construction $64,017 Add Allowance for Adjustments $9,553 Add Refunds 2016 Starting Point $10,044,541 Add 1% of 2015 Levy Total 2016 Levy $10,044,541 5

6 2016 Regular Property Tax Calculation Step 4: Add Refunds 2016 Regular Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount $9,970,971 Add New Construction $64,017 Add Allowance for Adjustments $9,553 Add Refunds $ Starting Point $10,044,988 Add 1% of 2015 Levy Total 2016 Levy $10,044,988 6

7 2016 Regular Property Tax Calculation Step 5: Add 1% 2016 Regular Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount $9,970,971 Add New Construction $64,017 Add Allowance for Adjustments $9,553 Add Refunds $ Starting Point $10,044,988 Add 1% of 2015 Levy $99,710 Total 2016 Levy $10,144,698 7

8 Assessed Value History Ten Year Assessed Property Values History For the City $9,000,000,000 $8,000,000,000 $7,000,000,000 $6,000,000,000 $6,612,373,915 $7,709,209,490 $7,376,182,114 $5,000,000,000 $5,545,239,847 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $

9 Tax Rate History $ $ $ $ $ $ $ $ $ $ $ $ City of Edmonds Regular Property Rate per $1,000 of Assessed Value History $ $ $

10 EMS Tax Levy Overview In 2008, Citizens voted to make the EMS Levy a Permanent $0.50 Levy During we saw our Assessed Property Values decline During this span of time Edmonds AV dropped just over 31% EMS Levy cannot exceed $0.50 In a declining AV environment, the City s EMS Levy also declines 10

11 EMS Tax Levy continued Year Action EMS Levy Levy Savings 2009 $0.50 Permanent EMS Levy becomes effective $3,854,605 $0 11

12 EMS Tax Levy continued Year Action EMS Levy Levy Savings 2009 $0.50 Permanent EMS Levy becomes effective $3,854,605 $ EMS Levy Declines $3,477,741 $376,864 12

13 EMS Tax Levy continued Year Action EMS Levy Levy Savings 2009 $0.50 Permanent EMS Levy becomes effective $3,854,605 $ EMS Levy Declines $3,477,741 $376, EMS Levy Declines $3,216,629 $637, EMS Levy Declines $2,897,322 $957, EMS Levy Declines $2,772,620 $1,081, EMS Levy Increases $3,051,206 $803, EMS Levy Increases $3,387,743 $466, EMS Levy Increases $3,692,091 $162,514 $4,486,883 13

14 Levy Rate History $0.60 EMS Levy Rate per $1,000 of Assessed Value History $0.50 $0.40 $0.30 $0.36 $0.32 $0.50 $0.50 $0.20 $0.10 $

15 EMS Tax Levy Calculation Step 1: Start From Prior Year Levy Amount 2016 EMS Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount 3,387,743 Add New Construction Add Allowance for Adjustments Add Refunds 2015 EMS Levy $3,387,743 Add "Banked Capacity" Total 2016 Levy $3,387,743 15

16 EMS Tax Levy Calculation Step 2: Add Levy Tax From New Construction 2016 EMS Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount 3,387,743 Add New Construction $21,750 Add Allowance for Adjustments Add Refunds 2015 EMS Levy $3,409,493 Add "Banked Capacity" Total 2016 Levy $3,409,493 16

17 EMS Tax Levy Calculation Step 3: Add Allowance for Assessor s Office Adjustments 2016 EMS Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount 3,387,743 Add New Construction $21,750 Add Allowance for Adjustments $3,540 Add Refunds 2015 EMS Levy $3,413,033 Add "Banked Capacity" Total 2016 Levy $3,413,033 17

18 EMS Tax Levy Calculation Step 4: Add Refunds 2016 EMS Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount 3,387,743 Add New Construction $21,750 Add Allowance for Adjustments $3,540 Add Refunds $ EMS Levy $3,413,493 Add "Banked Capacity" Total 2016 Levy $3,413,493 18

19 EMS Tax Levy Calculation Step 5: Add Banked Capacity 2016 EMS Property Tax Calculation for the City of Edmonds Description Amount 2015 Levy Amount 3,387,743 Add New Construction $21,750 Add Allowance for Adjustments $3,540 Add Refunds $ EMS Levy $3,413,493 Add "Banked Capacity" $278,598 Total 2016 Levy $3,692,091 19

20 Impacts of Tax Increases 2015 Average Residence Value is $394,700 1% Regular Tax Levy Increase = $5.81 Keeping EMS Levy at $0.50 = $16.22 Average Residence would pay $22.03 in 2016 Or about $1.84 per month extra 20

21 Council Motions 1) To Approve Resolution No. XXXX Finding Substantial Need to Levy Property Taxes Using a Limit Factor of 101% Notwithstanding a Lower National Inflation Rate. 2) To Approve Ordinance No. XXXX Levying 1% Regular Property Tax Increase for 2016, Levying 8.2% EMS Tax Increase and Levying $949,540 for Public Safety Voted Debt for Public Safety Complex. 21

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