ORD NO. 2020-33 DECLARATION OF SUBSTANTIAL NEEDPage 1 of 3
ORDINANCE NO. 2020-33
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, 2021, at a rate in excess of the increase in
the implicit price deflator, and making a declaration and finding of
substantial need for the increase.
WHEREAS, Chapter 84.55 RCW 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 2020 is 0.602 percent and the limit factor is 100.602
percent, meaning that the taxes levied in the City of Bainbridge Island in 2020 for collection in
2021 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 25,070 which is in excess of 10,000 persons, requiring a declaration of substantial need to
approve a tax increase in excess of the implicit price deflator; and
WHEREAS, the City Council will consider the financial requirements of the City for
2021 as set forth in the 2021-22 Adopted Budget with a planned approval by the Council in
November or December 2020, 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
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WHEREAS, due to the COVID-19 public health emergency and pandemic, the City has
been engaged in essential work on a highest-priority basis related to the public health emergency,
and that public health situation has resulted in the need for an outlay of significant City resources
to address the emergency, while at the same time the economic and financial impacts of the
public health situation have resulted in decreases in revenue to fund essential City services; and
WHEREAS, the City Council, after hearing and duly considering relevant information
and testimony presented at a public hearing on a separate ordinance regarding revenue sources
on October 27, 2020 has determined that the legitimate needs of the City require a declaration
and finding 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 hereby adopts the findings stated in the Whereas clauses
above as a basis for this finding and declaration of substantial need. 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. Additionally, the COVID-19 public health
emergency has resulted in the need for increased City expenditures to address the emergency,
and that public health situation has also resulted in decreased revenues to fund essential City
services. 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. Severability. Should any section, paragraph, sentence, clause, or phrase of this
ordinance, or its application to any person or circumstance, be declared unconstitutional or
otherwise invalid for any reason, or should any portion of this ordinance be preempted by state
or federal law or regulation, such decision or preemption shall not affect the validity of the
remaining portions of this ordinance or its application to other persons or circumstances.
Section 4. This ordinance shall be effective five (5) days after its passage and
publication as required by law.
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PASSED by the City Council this 27th day of October, 2020.
APPROVED by the Mayor this 27th day of October, 2020.
_________________________________
Leslie Schneider, Mayor
ATTEST/AUTHENTICATE:
FILED WITH THE CITY CLERK: October 9, 2020
PASSED BY THE CITY COUNCIL: October 27, 2020
PUBLISHED: October 30, 2020
EFFECTIVE DATE: November 4, 2020
ORDINANCE NO.: 2020-33