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ORD 2000-33 2001 GENERAL PROPERTY TAX LEVYORDINANCE NO. 2000 - 33 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 of Bainbridge Island for the fiscal year commencing January 1, 2001, at a rate in excess of the increase in the implicit price deflator, and finding substantial need for the increase. WHEREAS, the City Council of Bainbridge Island has considered the financial requirements of the City for 2001 as set forth in the Financial Capacity Analysis approved by the City Council on May 12, 1999, and the amounts necessary and available to be raised by ad valorera taxes on real, personal and utility property which are included therein and updated by projections of the City's Finance Director; and WHEREAS, the City Council, after hearing and duly considering all relevant evidence and testimony presented at public hearings held for this purpose on November 17, 1999 and on November 23, 1999, has determined that the legitimate needs of the City requires an increase in excess of the implicit price deflator in the amount of the property tax levy on real and personal property; and WHEREAS, in 1998, the City reduced its property tax levy for collection in 1999 by $109,487 excluding the taxes on newly-constructed buildings and by $18,768 overall; and WHEREAS, the City Council has the authority to set a levy for property taxes to be collected in 2000 at $4,347,521, or approximately $1.82 per $1,000 of assessed valuation; and WHEREAS, the Office of Financial Management of the State of Washington has calculated that the passage of Initiative 695 will reduce 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 has estimated the City's population to be in excess of the 10,000 persons, requiring a separate declaration of substantial need to approve a tax increase in excess of the implicit price deflator under Referendum 47; and WHEREAS, in November, 1999, the City Council passed Ordinance No. 99-67, which found substantial need for a property tax levy increase under Referendum 47 for the 2000 levy for collection in 2001, and increased the City 's 2000 property tax levy for collection in 2001 "in the event that Initiative 695 becomes law and prohibits the City Council from increasing property taxes without a vote of the people"; and WHEREAS, the King County Superior Court has ruled that Initiative 695 is unconstitutional and the Washington Supreme Court is expected to rule on the issue during the · Fall of 2000; and Revised 10/03/2000 printed 10/03/2000 1 WHEREAS, the passage of Initiative 695 and the subsequent decrease in motor vehicle excise tax and other revenue available to the City (which decrease the City now understands will occur regardless of whether 1-695 remains valid law) has placed additional 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, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. The City Council finds that a substantial need exists to increase the amount of property tax levied in 2000 for collection in 2001 by the full six percent authorized by law, so that current service levels are not reduced and general infrastructure needs can be met. Section 2. An increase in the regular property levy, excluding the increase resulting from the addition of new construction and improvements to property and any increase in state- assessed property, is authorized for the 2000 property tax levy for collection in 2001 in the amount of $4,608,372, which is an increase of six and no one-hundredths (6.00) percent from the amount authorized for the previous year (and an increase of ten and eighty-six one-hundredths (10.86) percent over the amount actually levied) plus an increase equal to the amount allowed under the new construction provisions of RCW 84.55.010, state-assessed properties and all allowable levies. Section 3. This ordinance has been passed by the affirmative vote of at least a majority plus one of the whole membership of the City Council. Section 4. This ordinance shall be effective 5 days after its passage, approval, and publication as required by law. PASSED by the City Council this 251h. day of October APPROVED by the Mayor this 271h. day of October Dwi'g~t Sutton, Mayor ,2000. ,2000. ATTEST/AUTHENTICATE: ~per, City Clerk APPROVED AS TO FORM: Revised 10/03/2000 printed 10/03/2000 2 Rod P. Kaseguma, City Attorney FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO.: September 20, 2000 October 25, 2000 November 1, 2000 November 6, 2000 2000-33 Revised 10/03/2000 primed 10/03/2000 ~ 3 -