ORD NO. 2016-33 DECLARATION OF SUBSTANTIAL NEEDORDINANCE NO. 2016-33
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, 2017, 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 provides that a taxing jurisdiction may levy taxes in an
amount no more than the limit factor multiplied by 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 regular property
tax levy rate of that district for the preceding year by the increase in assessed value in that district
resulting from certain specified activities, including new construction, increases in assessed value
due to construction of solar and other specified facilities that generate electricity, improvements
to property, and any increase in the assessed value of state -assessed 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 by September 25 of the year before the taxes are payable; and
WHEREAS, "inflation" for July 2016 is 0.953 percent and the limit factor is 100.953
percent, meaning that the taxes levied in the City of Bainbridge Island in 2016 for collection in
2017 will increase by less than one percent except for the amounts resulting from new construction,
increases in assessed value due to construction of solar and other specified facilities that generate
electricity, improvements to property, and any increase in the assessed value of state -assessed
property; and
WHEREAS, RCW 84.55.0101 provides for use of a limit factor of 101 percent or less
upon a finding of substantial need and approval of an ordinance by a majority plus one
councilmember, and that the new limit factor shall be effective for taxes collected in the following
year only; 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 2017 as set forth in the 2017 Adopted Budget and approved by the
City Council on November 22, 2016, 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 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; and
WHEREAS, the City Council, after hearing and duly considering all relevant evidence
and testimony presented at a public hearing held for this purpose on November 7, 2016 has
determined that the legitimate needs of the City require a declaration of substantial need for the
purposes of an increase in excess of the implicit price deflator in the amount of the property tax
levy on real and personal property; 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. The
City Council also recognizes that if the City does not make this declaration, it will not be able to
levy this difference in the future, which will reduce ongoing revenue levels.
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 five (5) days after its passage 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 7th day of
November, 2016.
ATTEST/AUTHENTICATE:
Rosalind D. Lassoff, City Clerk
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.:
October 28, 2016
November 7, 2016
November 11, 2016
November 16, 2016
2016-33