Resolution 1459RESOLUTION NO. 1459
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS,
WASHINGTON, FINDING SUBSTANTIAL NEED TO LEVY PROPERTY
TAXES USING A LIMIT FACTOR OF ONE HUNDRED AND ONE
PERCENT NOTWITHSTANDING A LOWER NATIONAL INFLATION
RATE.
WHEREAS, RCW 84.55.010 generally limits the levy for a taxing district in any year so that the
regular property taxes payable in the following year do not exceed the limit factor multiplied by
the amount of regular property taxes lawfully levied for the previous year; and
WHEREAS, RCW 84.55.010 allows the levy of an additional dollar amount calculated by
multiplying the regular property tax levy rate of that district for the preceding year by the
increase in assessed value in that district resulting from new construction and a few other
sources; and
WHEREAS, RCW 84.55.005(2)(c) defines "limit factor" as the lesser of one hundred one
percent or one hundred percent plus inflation; and
WHEREAS, RCW 84.55.005(1) defines "inflation" as the percentage change in the implicit
price deflator (IPD) 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; and
WHEREAS, these provisions, taken together, generally limit property tax levy increases by local
governments to the lesser of 1 % or the rate of inflation nationally; and
WHEREAS, notwithstanding the existence of an inflation rate under 1%, RCW 84.55.0101
allows cities to increase the levy by the full 1% (limit factor of one hundred one percent) by
adopting a resolution of substantial need; and
WHEREAS, "substantial need" is not defined in the statute; and
WHEREAS, RCW 84.55.0101 requires approval of a substantial need resolution by at least five
council members; and
WHEREAS, on August 27, 2020, the Bureau of Economic Analysis published the IPD for
personal consumption expenses, resulting in an inflation rate to be used for 2021 of 0.60152%;
and
WHEREAS, this is only the fifth time since 1998 that the inflation rate has fallen below 1 %; and
WHEREAS, given this low national rate of inflation, this resolution of substantial need is
required to be able to use a property tax levy limit factor of one hundred one percent (a 1 %
increase); and
WHEREAS, according to the US Department of Labor, Bureau of Labor Statistics, the annual
CPI-U for the Seattle -Tacoma -Bremerton area as of August 2020 was 1.6%, which seems to
indicate that local inflation is higher than the BEA IPD rate of 0.60152%; and
WHEREAS, under certain collective bargaining agreements with various labor unions, the city
has previously committed to pay cost of living adjustments to many of its employees of 2% and
higher; and
WHEREAS, property taxes are one of the city's most predictable forms of revenue, particularly
when compared to sales tax which can fluctuate significantly with the state of the economy; and
WHEREAS, property taxes are used to maintain the quality of various services for which the city
pays including, but not limited to, police and fire services, parks and recreation services, street
maintenance services, human services, services that support development activity, and services
that are required under state law like public records act compliance; and
WHEREAS, the above recital clauses constitute the findings of the city council that there is
substantial need to levy property taxes using a limit factor of one hundred one percent and the
city council desires to do the same; and, now therefore,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, HEREBY
RESOLVES AS FOLLOWS:
Section 1. Pursuant to the foregoing finding of substantial need and pursuant to RCW
84.55.0101, the city council desires to increase to the City of Edmonds 2021 EMS property tax
levy by a limit factor of one hundred one percent.
Section 2. The city clerk is hereby directed to send a certified copy of this resolution to the
Snohomish County assessor's office.
RESOLVED this 171h day of November, 2020.
CITY OF EDMONDS
MA OR, MICHAEL NELSON
ATTEST:
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CITY CLERK, SCOTT PASSEY
FILED WITH THE CITY CLERK: November 13, 2020
PASSED BY THE CITY COUNCIL: November 17, 2020
RESOLUTION NO. 1459