Resolution 1376RESOLUTION NO. 1376
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EDMONDS, WASHINGTON, FINDING SUBSTANTIAL NEED TO
LEVY BOTH REGULAR PROPERTY TAXES AND THE EMS
PROPERTY TAXES USING A LIMIT FACTOR OF ONE HUNDRED
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 September 25, 2016, the Bureau of Economic Analysis published the
IPD for personal consumption expenses, resulting in an inflation rate to be used for 2017
of 0.953%; and
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WHEREAS, most of the city's 2017 preliminary budget work had already been
completed by September 25, 2016, assuming a property tax levy rate increase of 1 % for
both regular property taxes and the EMS property tax; and
WHEREAS, this is only the fourth 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 June 2016 was 1.8%, which
seems to indicate that local inflation is higher than the national rate of 0.953%; 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 based on this June to June CPI-U of 1.8%; 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, 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 2017 regular
property tax levy by a limit factor of one hundred one percent and the 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 22°d day of November, 2016.
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ATTEST:
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clTV, CLERK, C ASSEY
CITY OF EDMONDS
L &�w-- *��
AYOR, DAVE EARLING
FILED WITH THE CITY CLERK: November 18, 2016
PASSED BY THE CITY COUNCIL: November 22, 2016
RESOLUTION NO. 1376