Resolution 9380006.90000
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11/6/98
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RESOLUTION NO. 938
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EDMONDS, WASHINGTON, FINDING THE EXISTENCE OF
SUBSTANTIAL NEEDS JUSTIFYING THE INCREASE OF
CITY REGULAR PROPERTY TAXES AT A RATE EQUAL TO
103% OR $171,000 PLUS A LEVY OF $.50 PER $1,000 OF
ASSESSED VALUATION FOR EMERGENCY MEDICAL
SERVICES AS APPROVED BY THE VOTERS AND STATING
THE BASIS THEREFOR.
WHEREAS, Chapter 84.55 RCW requires cities in excess of 10,000 in
population, following public hearing and by separate resolution, to find and determine the
existence of an emergent need in order to justify tax increases of up to 106 % and in excess of the
rate of inflation, and
WHEREAS, the City Council enters these findings following public hearing prior
to raising tax rates, now, therefore,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON,
HEREBY RESOLVES AS FOLLOWS:
Section 1. The City Council hereby determines in accordance with the
requirements of Chapter 84.55 RCW that unmet substantial needs exist which justify the increase
of its regular property tax levy by 103 % and $171,000 and a levy of $.50 per $1,000 of assessed
215620.2R -1-
valuation for Emergency Medical Services as approved by the voters, based on the following
emergent and /or unanticipated needs:
A. Loss of Revenue: It is anticipated that the
City's sales tax receipts will decrease by 14.8% in
1999. Additionally, other major revenue categories
are expected to remain flat;
B. Emergency Services: An increased need for
emergency medical assistance through Medic 7;
C. Medical Insurance Premium: Premiums
increased for 1999 by 13 %;
D. New state requirements: To microfilm and
archive medical records, and changes in State
financial accounting system require a software
upgrade at a cost of $200,000.
Section 2. This resolution has been enacted by a vote of the majority plus one of
the City Council. It is the City Council's intent, by enacting this resolution, to reserve to itself
the ability to levy in this or any future budget cycle pursuant to RCW 84.55.015 and 84.55.092
the full levy amount permitted under Referendum 47.
RESOLVED this 8th day of December, 1998.
APPROVED:
MAYOR, BARBARA S. FAHEY
ATTEST /AUTHENTICATED
CITY CLERK, SANDRA S. CHASE
FILED WITH THE CITY CLERK: 12/04/98
PASSED BY THE CITY COUNCIL: 12/08/98
RESOLUTION NO. 938
215620.2R -2-
CHAPTER 84.55 RCW
LIMITATIONS UPON REGULAR PROPERTY TAXES
Sections
84.55.005 "Regular property taxes" defined.
84.55.010 Limitations prescribed.
84.55.012 Reduction of property tax levy -- Setting amount of future levies.
84.55.015 Restoration of regular levy.
84.55.020 Limitation upon first levy for district created from consolidation.
84.55.030 Limitation upon first levy following annexation.
84.55.035 Inapplicability of limitation to newly - formed taxing district created other than by
consolidation or annexation.
84.55.040 Increase in statutory dollar rate limitation.
84.55.045 Applicability of chapter to levy by port district for industrial development district
84.55.110 Withdrawal of certain areas of a library district, metropolitan park district, fire
protection district, or public hospital district -- Calculation of taxes due.
84.55.120 Public hearing -- Taxing district's revenue sources.
RCW 84.55.005 "Regular property taxes" defined.
As used in this chapter, the term "regular property taxes" has the meaning given it in RCW
84.04.140, and also includes amounts received in lieu of regular property taxes. [1994 c 301 §
49; 1983 1st ex.s. c 62 § 11.]
NOTES:
Short title -- Intent -- Effective dates -- Applicability - -1983 1st ex.s. c 62: See notes following RCW
84.36.473.
RCW 84.55.010 Limitations prescribed.
Except as provided in this chapter, the levy for a taxing district in any year shall be set so that the
regular property taxes payable in the following year shall not exceed one hundred six percent of
the amount of regular property taxes lawfully levied for such district in the highest of the three
most recent years in which such taxes were levied for such district plus an additional dollar
amount calculated by multiplying the increase in assessed value in that district resulting from
new construction, improvements to property, and any increase in the assessed value of
state - assessed property by the regular property tax levy rate of that district for the preceding year.
[1979 ex.s. c 218 § 2; 1973 1st ex.s. c 67 § 1; 1971 ex.s. c 288 § 20.1
NOTES:
Reviser's note: Throughout chapter 84.55 RCW the phrase "this 1971 amendatory act" has been changed
to "this chapter." "This 1971 amendatory act" [1971 ex.s. c 288] consists of this chapter and RCW 36.21.015,
36.29.015, 84.04.140, 84.10.010, 84.36.370, 84.36.380, 84.40.030, 84.40.0301, 84.40.045, 84.41.030, 84.41.040,
84.48.080, 84.48.085, 84.48.140, 84.52.052, 84.56.020, and 84.69.020, and the repeal of RCW 84.36.128,
84.36.129, and 84.54.010.
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purposes.
84.55.050
Election to authorize increase in regular property tax levy -- Limited
propositions -- Procedure.
84.55.060
Rate rules -- Educational program- -Other necessary action.
84.55.070
Inapplicability of chapter to levies for certain purposes.
84.55.080
Adjustment to tax limitation.
84.55.092
Protection of future levy capacity.
84.55.100
Determination of limitations.
84.55.110 Withdrawal of certain areas of a library district, metropolitan park district, fire
protection district, or public hospital district -- Calculation of taxes due.
84.55.120 Public hearing -- Taxing district's revenue sources.
RCW 84.55.005 "Regular property taxes" defined.
As used in this chapter, the term "regular property taxes" has the meaning given it in RCW
84.04.140, and also includes amounts received in lieu of regular property taxes. [1994 c 301 §
49; 1983 1st ex.s. c 62 § 11.]
NOTES:
Short title -- Intent -- Effective dates -- Applicability - -1983 1st ex.s. c 62: See notes following RCW
84.36.473.
RCW 84.55.010 Limitations prescribed.
Except as provided in this chapter, the levy for a taxing district in any year shall be set so that the
regular property taxes payable in the following year shall not exceed one hundred six percent of
the amount of regular property taxes lawfully levied for such district in the highest of the three
most recent years in which such taxes were levied for such district plus an additional dollar
amount calculated by multiplying the increase in assessed value in that district resulting from
new construction, improvements to property, and any increase in the assessed value of
state - assessed property by the regular property tax levy rate of that district for the preceding year.
[1979 ex.s. c 218 § 2; 1973 1st ex.s. c 67 § 1; 1971 ex.s. c 288 § 20.1
NOTES:
Reviser's note: Throughout chapter 84.55 RCW the phrase "this 1971 amendatory act" has been changed
to "this chapter." "This 1971 amendatory act" [1971 ex.s. c 288] consists of this chapter and RCW 36.21.015,
36.29.015, 84.04.140, 84.10.010, 84.36.370, 84.36.380, 84.40.030, 84.40.0301, 84.40.045, 84.41.030, 84.41.040,
84.48.080, 84.48.085, 84.48.140, 84.52.052, 84.56.020, and 84.69.020, and the repeal of RCW 84.36.128,
84.36.129, and 84.54.010.
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Effective date -- Applicability - -1979 ex.s. c 218: "This act is necessary for the immediate preservation of
the public peace, health, and safety, the support of the state government and its existing public institutions, and shall
take effect immediately: PROVIDED, That the amendment to RCW 84.55.010 by section 2 of this act shall be
effective for 1979 levies for taxes collected in 1980, and for subsequent years." [1979 ex.s. c 218 § 8.] The
effective date of 1979 ex.s. c 218 is June 4, 1979.
RCW 84.55.012 Reduction of property tax levy -- Setting amount of future levies.
(1) The state property tax levy for collection in 1996 shall be reduced by 4.7187 percent
of the levy amount that would otherwise be allowed under this chapter without regard to this
section or any other tax reduction legislation enacted in 1995.
(2) The tax reduction provided in this section is in addition to any other tax reduction
legislation that may be enacted by the legislature.
(3) State levies for collection after 1996 shall be set at the amount that would be allowed
otherwise under this chapter if the state levy for collection in 1996 had been set without the
reduction under subsection (1) of this section. [1995 2nd sp.s. c 13 § 2.]
NOTES:
Intent -4995 2nd sp.s. c 13: "With property valuations continuing to increase, property taxes have been
steadily increasing. At the same time, personal incomes have not continued to rise at the same rate. Property taxes
are becoming increasingly more difficult to pay. Many residential property owners complain about the overall level
of taxes and about the continuing increase in tax from year to year. Taxpayers want property tax relief. The
legislature intends to establish an on -going program of state property tax reductions the amount of which is to be
determined by the legislature on a yearly basis based on the level of general fund tax revenues." [1995 2nd sp.s. c
13 § 1.]
RCW 84.55.015 Restoration of regular levy.
If a taxing district has not levied in the three most recent years and elects to restore a regular
property tax levy subject to applicable statutory limitations then such first restored levy shall be
set so that the regular property tax payable shall not exceed the amount which could have been
lawfully levied in 1973, plus an additional dollar amount calculated by multiplying the increase
in assessed value in the district since 1973 resulting from new construction and improvements to
property by the property tax rate which is proposed to be restored, or the maximum amount
which could be lawfully levied in the year such a restored levy is proposed. [1979 ex.s. c 218 §
4.]
RCW 84.55.020 Limitation upon first levy for district created from consolidation.
Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district
created from consolidation of similar taxing districts shall be set so that the regular property taxes
payable in the following year shall not exceed one hundred six percent of the sum of the amount
of regular property taxes lawfully levied for each component taxing district in the highest of the
three most recent years in which such taxes were levied for such district plus the additional dollar
amount calculated by multiplying the increase in assessed value in each component district
resulting from new construction and improvements to property by the regular property tax rate of
each component district for the preceding year. [1971 ex.s. c 288 § 21.]
NOTES:
Savings -- Severability- -1971 ex.s. c 288: See notes following RCW 84.40.030.
RCW 84.55.030 Limitation upon first levy following annexation.
For the first levy for a taxing district following annexation of additional property, the limitation
set forth in RCW 84.55.010 shall be increased by an amount equal to (1) the aggregate assessed
valuation of the newly annexed property as shown by the current completed and balanced tax
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rolls of the county or counties within which such property lies, multiplied by (2) the dollar rate
that would have been used by the annexing unit in the absence of such annexation, plus (3) the
additional dollar amount calculated by multiplying the increase in assessed value in the annexing
district resulting from new constructions and improvements to property by the regular property
tax levy rate of that annexing taxing district for the preceding year. [1973 1st ex.s. c 195 § 107;
1971 ex.s. c 288 § 22.]
NOTES:
Severability -- Effective dates and termination dates -- Construction - -1973 1st ex.s. c 195: See notes
following RCW 84.52.043.
Savings -- Severability- -1971 ex.s. c 288: See notes following RCW 84.40.030.
RCW 84.55.035 Inapplicability of limitation to newly- formed taxing district created
other than by consolidation or annexation.
RCW 84.55.010 shall not apply to the first levy by or for a newly - formed taxing district created
other than by consolidation or annexation.
This section shall be retroactive in effect and shall be deemed to validate any levy within
its scope, even though the levy has been made prior to June 4, 1979. [1979 ex.s. c 218 § 5.]
RCW 84.55.040 Increase in statutory dollar rate limitation.
If by reason of the operation of RCW 84.52.043 and 84.52.050, as now or hereafter amended the
statutory dollar rate limitation applicable to the levy by a taxing district has been increased over
the statutory millage limitation applicable to such taxing district's levy in the preceding year, the
limitation on the dollar rate amount of a levy provided for in this chapter shall be increased by
multiplying the otherwise dollar limitation by a fraction, the numerator of which is the increased
dollar limitation and the denominator of which is the dollar limitation for the prior year. [1973
1st ex.s. c 195 § 108; 1973 1st ex.s. c 195 § 151; 1971 ex.s. c 288 § 23.]
NOTES:
Severability -- Effective dates and termination dates -- Construction - -1973 1st ex.s. c 195: See notes
following RCW 84.52.043.
Savings -- Severability- -1971 ex.s. c 288: See notes following RCW 84.40.030.
RCW 84.55.045 Applicability of chapter to levy by port district for industrial
development district purposes.
For purposes of applying the provisions of this chapter:
(1) A levy by or for a port district pursuant to RCW 53.36.100 shall be treated in the same
manner as a separate regular property tax levy made by or for a separate taxing district; and
(2) The first levy by or for a port district pursuant to RCW 53.36. 100 after April 1, 1982,
shall not be subject to RCW 84.55.010. [1982 1st ex.s. c 3 § 2.]
NOTES:
Effective date - -1982 1st ex.s. c3: See note following RCW 53.36.100.
RCW 84.55.050 Election to authorize increase in regular property tax levy -- Limited
propositions -- Procedure.
(1) Subject to any otherwise applicable statutory dollar rate limitations, regular property
taxes may be levied by or for a taxing district in an amount exceeding the limitations provided
for in this chapter if such levy is authorized by a proposition approved by a majority of the voters
of the taxing district voting on the proposition at a general election held within the district or at a
special election within the taxing district called by the district for the purpose of submitting such
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proposition to the voters. Any election held pursuant to this section shall be held not more than
twelve months prior to the date on which the proposed levy is to be made. The ballot of the
proposition shall state the dollar rate proposed and shall clearly state any conditions which are
applicable under subsection (3) of this section.
(2) After a levy authorized pursuant to this section is made, the dollar amount of such
levy shall be used for the purpose of computing the limitations for subsequent levies provided for
in this chapter, except as provided in subsection (4) of this section.
(3) A proposition placed before the voters under this section may:
(a) Limit the period for which the increased levy is to be made;
(b) Limit the purpose for which the increased levy is to be made, but if the limited
purpose includes making redemption payments on bonds, the period for which the increased
levies are made shall not exceed nine years;
(c) Set the levy at a rate less than the maximum rate allowed for the district; or
(d) Include any combination of the conditions 'in this subsection.
(4) After the expiration of a limited period or the satisfaction of a limited purpose,
whichever comes first, subsequent levies shall be computed as if:
(a) The limited proposition under subsection (3) of this section had not been approved;
and
(b) The taxing district had made levies at the maximum rates which would otherwise
have been allowed under this chapter during the years levies were made under the limited
proposition. [1989 c 287 § 1; 1986 c 169 § 1; 1979 ex.s. c 218 § 3; 1973 1st ex.s. c 195 § 109;
1971 ex.s. c 288 § 24.]
NOTES:
Severability -- Effective dates and termination dates -- Construction - -1973 1st ex.s. c 195: See notes
following RCW 84.52.043.
Savings -- Severability- -1971 ex.s. c 288: See notes following RCW 84.40.030.
RCW 84.55.060 Rate rules -- Educational program - -Other necessary action.
The department of revenue shall adopt rules relating to the calculation of tax rates and the
limitation in RCW 84.55.010, conduct an educational program on this subject, and take any other
action necessary to insure compliance with the statutes and rules on this subject. [1979 ex.s. c
218 § 6.]
RCW 84.55.070 Inapplicability of chapter to levies for certain purposes.
The provisions of this chapter shall not apply to a levy, including the state levy, or that portion of
a levy, made by or for a taxing district for the purpose of funding a property tax refund paid or to
be paid pursuant to the provisions of chapter 84.68 RCW or attributable to a property tax refund
paid or to be paid pursuant to the provisions of chapter 84.69 RCW, attributable to amounts of
state taxes withheld under RCW 84.56.290 or the provisions of chapter 84.69 RCW, or otherwise
attributable to state taxes lawfully owing by reason of adjustments made under RCW 84.48.080.
[1982 lst ex.s. c 28 § 2; 1981 c 228 § 3.]
NOTES:
Severability- -1982 1st ex.s. c 28: See note following RCW 84.48.080.
RCW 84.55.080 Adjustment to tax limitation.
Pursuant to chapter 39.88 RCW, any increase in the assessed value of real property within an
apportionment district resulting from new construction, improvements to property, or any
increase in the assessed value of state - assessed property shall not be included in the increase in
assessed value resulting from new construction, improvements, or any increase in the assessed
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value of state - assessed property for purposes of calculating any limitations upon regular property
taxes under this chapter until the termination of apportionment as set forth in RCW 39.88.070(4),
as now or hereafter amended, except to the extent a taxing district actually will receive the taxes
levied upon this value. Tax allocation revenues, as defined in RCW 39.88.020, as now or
hereafter amended, shall not be deemed to be "regular property taxes" for purposes of this
chapter. [1982 1st ex.s. c 42 § 12.]
NOTES:
Captions not part of law -- Severability- -1982 1st ex.s. c 42: See RCW 39.88.910 and 39.88.915.
RCW 84.55.092 Protection of future levy capacity.
The regular property tax levy for each taxing district other than the state may be set at the amount
which would be allowed otherwise under this chapter if the regular property tax levy for the
district for taxes due in prior years beginning with 1986 had been set at the full amount allowed
under this chapter.
The purpose of this section is to remove the incentive for a taxing district to maintain its
tax levy at the maximum level permitted under this chapter, and to protect the future levy
capacity of a taxing district that reduces its tax levy below the level that it otherwise could
impose under this chapter, by removing the adverse consequences to future levy capacities
resulting from such levy reductions. [1988 c 274 § 4; 1986 c 107 § 3.]
NOTES:
Purpose -- Severability- -1988 c 274: See notes following RCW 84.52.010.
Severability -- Construction - -1986 c 107: See notes following RCW 39.67.010.
RCW 84.55.100 Determination of limitations.
The property tax limitation contained in this chapter shall be determined by the county assessors
of the respective counties in accordance with the provisions of this chapter: PROVIDED, That
the limitation for any state levy shall be determined by the department of revenue and the
limitation for any intercounty rural library district shall be determined by the library district in
consultation with the respective county assessors. [1983 c 223 § 1.]
RCW 84.55.110 Withdrawal of certain areas of a library district, metropolitan park
district, fire protection district, or public hospital district -- Calculation of taxes due.
Whenever a withdrawal occurs under RCW 27.12.355, 35.61.360, 52.04.056, or 70.44.235,
restrictions under chapter 84.55 RCW on the taxes due for the library district, metropolitan park
district, fire protection district, or public hospital district, and restrictions under chapter 84.55
RCW on the taxes due for the city or town if an entire city or town area is withdrawn from a
library district or fire protection district, shall be calculated as if the withdrawn area had not been
part of the library district, metropolitan park district, fire protection district, or public hospital
district, and as if the library district or fire protection district had not been part of the city or
town. [1987 c 138 § 6.]
RCW 84.55.120 Public hearing -- Taxing district's revenue sources.
A taxing district, other than the state, that collects regular levies shall hold a public hearing on
revenue sources for the district's following year's current expense budget. The hearing must
include consideration of possible increases in property tax revenues and shall be held prior to the
time the taxing district levies the taxes or makes the request to have the taxes levied. The county
legislative authority, or the taxing district's governing body if the district is a city, town, or other
type of district, shall hold the hearing. For purposes of this section, "current expense budget"
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means that budget which is primarily funded by taxes and charges and reflects the provision of
ongoing services. It does not mean the capital, enterprise, or special assessment budgets of cities,
towns, counties, or special purpose districts.
If the taxing district is otherwise required to hold a public hearing on its proposed regular
tax levy, a single public hearing may be held on this matter. [1995 c 251 § 1.]
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Adopted by Reference
Resolution # Q on
Gity.Clerk ._.. ___