ORD 2015-35 STATING THE INTENT OF THE CITY TO INCREASE THE LEVY OF GENERAL PROPERTY TAXESORDINANCE NO. 2015-35
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, 2016, at a rate in excess of the increase in the implicit price
deflator, and finding substantial need for the increase.
WHEREAS, RCW 84.55.010 provided that a taxing jurisdiction may levy taxes in an
amount no more than the limit factor multiplied by the highest levy of the most recent three years
plus additional amounts resulting from new construction and improvements to property, newly
constructed wind turbines, and any increase in the value of state -assessed utility property; and
WHEREAS, RCW 84.55.005 (1) defines "inflation" as the percentage change in the implicit
price deflator for personal consumption expenditures for the United States as published for the most
recent 12 -month period by the Bureau of Economic Analysis of the federal Department of Commerce
in September of the year before the taxes are payable; and
WHEREAS, "inflation" for July 2015 is 0.251 percent and the limit factor is 100.251
percent, meaning the taxes levied in the City of Bainbridge Island in 2015 for collection in 2016 will
increase by less than one percent except for the amounts resulting from new construction and
improvements to property, newly constructed wind turbines, and any increase in the value of state -
assessed utility property; and
WHEREAS, RCW 84.55.0101 provides for use of a limit factor of 101 percent or less with a
finding of substantial need by a majority plus one councilmember (or two out of three
commissioners); and
WHEREAS, the Office of Financial Management has estimated the City's population to be
23,196 which is 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; and
WHEREAS, the City Council of Bainbridge Island will consider the financial requirements
of the City for 2016 as set forth in the 2016 Adopted Budget and approved by the City Council on
November 10, 2014, and the amounts necessary and available to be raised by ad valorem taxes on
real, personal and utility property which are included therein and will update the projections of the
City's Finance Director; and
WHEREAS, the City Council, after hearing and duly considering all relevant evidence and
testimony presented a public hearing held for this purpose on October 27, 2015 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, the passage of Initiative 695 and the subsequent decrease in motor vehicle
excise tax and other revenue available to the City 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 has determined that, in order to not reduce current service
levels and to meet general infrastructure maintenance needs, there is a substantial need to increase
the property taxes by one percent and to set the levy limit at one hundred and one percent.
Section 2. 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 3. This ordinance shall be effective 5 days after its passage, approval, and
publication as required by law.
PASSED by a super majority of the City Council of the City of Bainbridge Island,
approved by the Mayor and attested by the Clerk in authentication of such passage this 27th day
of October 2015.
t ( ( J, J
Anne S. Blair, Mayor
ATTEST/AUTHENTICATE:
'llm l sso t
Rosalind D. Lassoff, City Clerk
FILED WITH THE CITY CLERK:
October 2, 2015
PASSED BY THE CITY COUNCIL:
October 27, 2015
PUBLISHED:
October 30, 2015
EFFECTIVE DATE:
November 4, 2015
ORDINANCE NO.:
2015-35