ORD 99-57 INCREASE PROPERTY TAXESORDINANCE NO. 99-57
AN ORDINANCE of the City of Bainbridge Island, Washington, stating the
intent of the City to increase the levy of general property taxes for the City
efBainbridge Island for the fiscal year commencing January 1, 2000, at a
rate in excess of the increase in the implicit price deflator.
WHEREAS, the City Council of Bainbridge Island has considered the financial
requirements of the City for 2000 as set forth in the Mayor's Preliminary Budget, and the
amounts necessary and available to be raised by ad valorem taxes on real, personal, and utility
property which are included therein and has determined that there is a substantial need to
increase the regular property tax resulting the effects of the filing of Initiate 695 on the City's
ability to raise bonded debt for purposes already approved in the City's Capital Facilities
Element of its Comprehensive Plan and the cost of that debt when compared to the anticipated
cost of that debt as shown in the Financial Capacity Analysis which supports the Capital
Facilities Element; and
WHEREAS, the City Council of Bainbridge Island after hearing and after duly
considering all relevant evidence and testimony at a public hearing held for this purpose on
October 27, 1997, has determined that the legitimate needs of the City plus the substantial
additional needs cited above require an increase in excess of the implicit price deflator in the tax
levy on real and personal property; and
WHEREAS, in 1998 the City of Bainbridge Island reduced its property tax levy for
collection in 1999 by $109,487 excluding the taxes on newly-built buildings and by $18,768
overall; and
WHEREAS, the City Council of Bainbridge Island intends to set a levy rate for
property taxes to be collected in 2000 of approximately $1.75 per $1,000 of assessed
valuation in the event that Initiative 695 or of approximately $1.40 per $1,000 in the event that
Initiative 695 fails; and
WHEREAS, the Office of Financial Management of the State of Washington has
calculated that passage of Initiative 695 will reduce the revenues of the City of Bainbridge Island
by $893,282 in the year 2000, by $1,263,369 in 2001, and by larger amounts in the years that
follow; and
WHEREAS, the Office of Financial Management of the State of Washington has
estimated the population of the City of Bainbridge Island as of April 1, 1999, to be 19,840, which
total is higher than the 10,000 limit above which a separate declaration of substantial need to
approve a tax increase is required by Referendum 47; and
WHEREAS, the likely passage of Initiative 695 is likely to put extreme pressure on the
City's ability to accomplish its mandated functions with the revenues allowed to it; now,
therefore
THE CITY COUNCIL OF THE CITY OF Bainbridge Island, DOES ORDAIN AS
FOLLOWS:
Section 1. In the event that Initiative 695 is approved by the voters of the State of
Washington, an increase in the regular property tax levy, including the increase resulting from
the addition of new construction and improvements to property and any increase of state-
assessed property, is authorized for the 1999 levy for collection in 2000 in the amount of
$4,032,784 which is a percentage increase of 27.09 percent from the previous year plus an
increase equal to the amount allowed under the new construction provisions of RCW 84.55.010.
Section 2. In the event that Initiative 695 is not approved by the voters of the State of
Washington or if Initiative 695 fails to become law for any other reason, an increase in the
regular property tax levy, including the increase resulting from the addition of new construction
and improvements to property and any increase of state-assessed property, is authorized for the
1999 levy for collection in 2000 in the amount of $3,173,207 which is a percentage increase of
two and fifty-eight one-hundredths (2.58) percent from the previous year plus an increase equal
to the amount allowed under the new construction provisions of RCW 84.55.010.
Section 3. This ordinance has been passed by at least a majority of the City Council plus
one vote.
Section 4. This ordinance shall take effect and be in force on and after
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CERTIFICATION
I, SUSAN P. KASPER, the duly appointed City Clerk of the City of
Bainbridge Island, Washington, do hereby certify that the attached is a true and
correct copy of Ordinance No. 99-57, as it appears in the official minute book of the
City of Bainbridge Island.
DATED this 8th day of December, 1999.
./
S SAN P. KASPER, City Clerk