HomeMy WebLinkAbout3060A Fire Services Levy Lid LiftOrdinance 3060
Fire Services Levy Lid Lift
Page I of 4
ORDINANCE 3060A
Fire Services Levy Lid Lift
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON RELATING TO REGULAR PROPERTY TAXES; PROVIDING FOR
THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF PORT
TOWNSEND AT A STATE GENERAL ELECTION TO BE HELD WITHIN THE CITY
ON NOVEMBER 8, 2011, OF A PROPOSITION AUTHORIZING THE CITY TO LEVY
ITS REGULAR PROPERTY TAX LEVY IN AN AMOUNT IN EXCESS OF THE
LIMITATIONS OF CHAPTER 84.55 RCW; SETTING FORTH THE TEXT OF THE
BALLOT PROPOSITION; DIRECTING PROPER CITY OFFICIALS TO TAKE
NECESSARY ACTIONS; AND PROVIDING FOR OTHER PROPERLY RELATED
MATTERS.
Recitals.
A. The City and Fire District No. 1 (also known as East Jefferson Fire Rescue, and herein
referred to as "EJFR") currently operate a joint fire service operation pursuant to an Interlocal
Agreement effective January 1, 2007, and Amendment to Interlocal Agreement dated December
10, 2010. The Interlocal Agreement for joint operation allowed for efficiencies and cost -savings
by minimizing duplication of employees and resources and provided for consistency in training
and operations. Since the Interlocal Agreement (2007), the parties worked together to determine
if further consolidation would serve the interests of the City and EJFR and their citizens.
B. The Interlocal Agreement initially required contributions by the City and EJFR for fire
service that were equivalent to approximately $0.57 per $1,000 of assessed valuation.
C. The voters of EJFR approved, in May 2010, a levy lid lift ballot proposition that
increased EJFR's rate to $1.00 per $1,000 of assessed valuation. A similar ballot measure, in
August, 2010, failed to gain voter approval in the City.
D. The Interlocal Agreement provides that in the event that a ballot measure passes in one
jurisdiction and does not pass in another, the jurisdiction in which it failed shall submit the
measure a second time. Before re -submitting a ballot measure, the City Council and EJFR's
Board of Fire Commissioners ("Board") in 2010 forined a planning committee to explore the
formation of a Regional Fire Protection Service Authority ("RFA") or other options for further
consolidation and to recommend a preferred legal governance structure.
E. The planning committee, composed of three City Councilors and the three EJFR
Commissioners, following review, noted that many of goals and objectives of consolidation have
been achieved by agreement to operate as a single entity with unified command structure and
personnel. Because annexation would provide for tax equalization for fire service between the
residents of the City and EJFR, and further, results in the direct election of commissioners (rather
than having Councilors serve in an oversight role of EJFR along with District commissioners),
Ordinance 3060
Fire Services Levy Lid Lift
Page 2 of 4
the planning committee unanimously recommended "annexation to complete the consolidation
thus far achieved by use of Interlocal Agreement between the City of Port Townsend and
[EJFR]."
F. The City and EJFR have adopted resolutions, authorized by Chapter 52.04 RCW, to
cause an election to be held in order for the voters of the City and voters of the EJFR to decide
whether or not the City should be annexed to and become part of EJFR, and have entered into or
will enter into an Interlocal Agreement calling for annexation to be submitted to the voter and
addressing post -annexation issues (if annexation is approved).
G. A timing issue with significant tax impacts results if annexation goes forward at this time.
Properties in EJFR are being revalued by the assessor at this time, and are estimated by the
assessor to decrease in value by an average of 25%, for tax collections beginning in 2012. The
devaluation results in an increase in the levy rate applied to properties in EJFR to collect the
same amount of taxes in EJFR prior to the devaluation. The assessor estimates the increase in
levy rate to be $1.40/$1.00 assessed value in 2013 (when tax collections for an annexation that is
voted on prior to August 1, 2012 would be effective).
H. An annexation results in the levy rate of EJFR being applied to the City. While an
annexation prior to uniform valuation is revenue -neutral to residents of EJFR, applying a $1.40
levy rate to properties in the City would result in a tax collection from the City that exceeds the
amount needed to reach parity between the City and EJFR based on the Interlocal Agreement
between the City of Port Townsend and EJFR.
I. Properties in the City are scheduled for revaluation by the assessor in 2013 (for tax
collections in 2014). If devaluation of properties in the City is in the same range as properties in
EJFR, then the 2014 estimated levy rate of $1.40 in EJFR applied against the lower City
valuation would yield an amount consistent with the current Interlocal Agreement between the
City of Port Townsend and EJFR.
J. Based on the above, the City Council detennines that an annexation should be delayed
until revaluation occurs (or the estimated effect of revaluation is known) and the estimated levy
rate in EJFR applied against the lower City valuation would yield an amount consistent with the
Interlocal Agreement between the City of Port Townsend and EJFR.
K. In delaying annexation for the reasons set forth above, the City Council determines that it
should address the current imbalance in funding for fire service that results from the
$1.00/$1,000 assessed value contribution approved by EJFR voters in April, 2010, and the
equivalent $0.57/$1,000 assessed value contribution by the City residents resulting from the
unsuccessful August, 2010 ballot measure in the City.
L. The City Council reviewed options to address the imbalance in funding for fire service,
including budget cuts in services. However, at town meetings and in City Council meetings, the
City Council has heard strong support for maintaining services, and for not cutting services
without public input and process. Therefore, the City Council has determined that the ballot
proposition contained in this Ordinance shall be placed before the voters at the election occurring
Ordinance 3060
Fire Services Levy Lid Lift
Page 3 of 4
on November 8, 2011, proposing a levy lid lift to raise the City's maximum allowable levy under
chapter 84.55 RCW by $0.43/$1,000.
M. The intended result is that this $0.43/$1,000 levy lid lift would be added to the
$0.57/$1,000 already committed to fire services under the current Interlocal Agreement, and
would match the contribution made by the residents of the EJFR ($1.00/$1,000 assessed value
for the City based on existing valuations approximates the $1.40/$1,000 assessed value for EJFR
based on pending new valuations) until an annexation becomes effective. Upon the effective
date of the annexation into the EJFR, the $0.43/$1,000 levy lid lift would expire.
NOW, THEREFORE, the City Council of the City of Port Townsend does ordain, as follows:
Section 1. Findings and Determinations. The City Council finds that it is in the best interests of
the City to submit to the qualified voters of the City, at an election on November 8, 2011, a
proposition authorizing the City to increase its regular levy for collection in 2012 by an amount
greater than otherwise permitted under chapter 84.55 RCW for the purposes described in more
detail in Section 2, below. If this proposition is approved, the City Council will be authorized to
adopt, in accordance with its regular budget process, an increased regular levy in 2012, not to
exceed the rate approved by this ballot proposition, which amount shall be used in future levy
limit calculations as described in Section 2, until no longer needed to provide for the fire services
described in Section 2.
Section 2. Purpose and Description of Ballot Proposition. For the purpose identified below, the
City seeks voter approval under RCW 84.55.050(1) for a levy lid lift, as follows:
2.1 Purpose. The amounts collected pursuant to the increase authorized shall be used
solely to pay the costs of providing fire protection, prevention and emergency
services, pursuant to a contract with the EJFR.
2.2 Levy Rate Authorized;. The proposition would authorize a total maximum regular
levy rate of $2.46642.4868 per $1,000 assessed value which is an increase of
approximately $0.43 per $1,000 of assessed value for collection in 2012. This is
estimated to produce an incremental increase in the regular property tax rate over the
rate to be levied for collection in 2011 of approximately $0.43/$1,000 (or $623,000).
2.3 Expiration upon Annexation into EJFR. The dollar amount of the regular levy
authorized for collection in 2012 shall be included in the calculations for the purpose
of computing the limitations on subsequent levies under ch. 84.55 RCW for the
limited purpose of providing fire protection, prevention and emergency services.
This purpose shall be deemed to have been satisfied, and the City's authority to levy
increased regular property taxes for such purpose shall expire, as of the first
collection year of a regular levy for such purposes by the EJFR.
Section 3. Calling of Election and Ballot Proposition. The City hereby requests the Auditor of
Jefferson County, as Ex-officio Supervisor of Elections, to call and conduct an election to be
Ordinance 3060
Fire Services Levy Lid Lift
Page 4 of 4
held on November 8, 2011, and to submit to the voters of the City the following proposition in
the form substantially as follows:
PROPOSITION [1]
City of Port Townsend
FIRE AND EMERGENCY SERVICES
LEVY LID LIFT
The City Council of the City of Port Townsend has adopted Ordinance 3060, concerning
the City's regular property tax levy. If approved, Proposition [1] would authorize a
maximum levy rate for collection in 2012 of $2.46642.4868 per $1,000 assessed value which
is an increase of approximately $0.43/$1,000. The increase is restricted to providing for
fire protection, prevention and emergency services by contract with East Jefferson Fire
Rescue, to match the EJFR's residents' contribution. Increases (plus all previously voter -
approved increases) will be used in future levy limit calculations, except that this increase
expires if the City annexes into EJFR.
Should this proposition be: _ Approved? _ Rejected?
Section 4. Notices Relating to Ballot Proposition. For purposes of receiving notice of the exact
language of the ballot proposition required by RCW 29A.36.080, the City Council hereby
designates the City Attorney as the individual to whom such notice should be provided.
Section 5. Authorization to Deliver Ordinance and Perfonn Other Necessary Duties. The City
Clerk is authorized and directed, no later than August 16, 2011, to certify a copy of this
ordinance to the Auditor and to perform such other duties as are necessary or required by law to
the end that the proposition described herein should appear on the ballot at the election to be held
on November 8, 2011.
Section 6 This Ordinance amends and supersedes Ordinance 3060 adopted August 1, 2011.
ADOPTED by the City Council of the City of Port Towinsend at a regular meeting
thereof, held this 15`�' day of August 2011.
a
Attest.
Pamela Kolacy, MMC
City Clerk
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Approved as to form
John P. Watts
City Attorney
Ordinance 3060
Fire Services Levy Lid Lift
Page 1 of 4
ORDINANCE 3060
Fire Services Levy Lid Lift
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON RELATING TO REGULAR PROPERTY TAXES; PROVIDING FOR THE
SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF PORT TOWNSEND AT
A STATE GENERAL ELECTION TO BE HELD WITHIN THE CITY ON NOVEMBER 8,
2011, OF A PROPOSITION AUTHORIZING THE CITY TO LEVY ITS REGULAR
PROPERTY TAX LEVY IN AN AMOUNT IN EXCESS OF THE LIMITATIONS OF
CHAPTER 84.55 RCW; SETTING FORTH THE TEXT OF THE BALLOT
PROPOSITION; DIRECTING PROPER CITY OFFICIALS TO TAKE NECESSARY
ACTIONS; AND PROVIDING FOR OTHER PROPERLY RELATED MATTERS.
Recitals.
A. The City and Fire District No. 1 (also known as East Jefferson Fire Rescue, and herein
referred to as "EJFR") currently operate a joint fire service operation pursuant to an Interlocal
Agreement effective January 1, 2007, and Amendment to Interlocal Agreement dated December 10,
2010. The Interlocal Agreement for joint operation allowed for efficiencies and cost -savings by
minimizing duplication of employees and resources and provided for consistency in training and
operations. Since the Interlocal Agreement (2007), the parties worked together to determine if
further consolidation would serve the interests of the City and EJFR and their citizens.
B. The Interlocal Agreement initially required contributions by the City and EJFR for fire
service that were equivalent to approximately $0.57 per $1,000 of assessed valuation.
C. The voters of EJFR approved, in May 2010, a levy lid lift ballot proposition that increased
EJFR's rate to $1.00 per $1,000 of assessed valuation. A similar ballot measure, in August, 2010,
failed to gain voter approval in the City.
D. The Interlocal Agreement provides that in the event that a ballot measure passes in one
jurisdiction and does not pass in another, the jurisdiction in which it failed shall submit the measure
a second time. Before re -submitting a ballot measure, the City Council and EJFR's Board of Fire
Commissioners (`Board") in 2010 formed a planning committee to explore the formation of a
Regional Fire Protection Service Authority ("RFA") or other options for further consolidation and
to recommend a preferred legal governance structure.
E. The planning committee, composed of three City Councilors and the three EJFR
Commissioners, following review, noted that many of goals and objectives of consolidation have
been achieved by agreement to operate as a single entity with unified command structure and
personnel. Because annexation would provide for tax equalization for fire service between the
residents of the City and EJFR, and further, results in the direct election of commissioners (rather
than having Councilors serve in an oversight role of EJFR along with District commissioners), the
Ordinance 3060
Fire Services Levy Lid Lift
Page 2 of 4
planning committee unanimously recommended "annexation to complete the consolidation thus far
achieved by use of Interlocal Agreement between the City of Port Townsend and [EJFR]."
F. The City and EJFR have adopted resolutions, authorized by Chapter 52.04 RCW, to cause
an election to be held in order for the voters of the City and voters of the EJFR to decide whether or
not the City should be annexed to and become part of EJFR, and have entered into or will enter into
an hnterlocal Agreement calling for annexation to be submitted to the voter and addressing post -
annexation issues (if annexation is approved).
G. A timing issue with significant tax impacts results if annexation goes forward at this time.
Properties in EJFR are being revalued by the assessor at this time, and are estimated by the assessor
to decrease in value by an average of 25%, for tax collections beginning in 2012. The devaluation
results in an increase in the levy rate applied to properties in EJFR to collect the same amount of
taxes in EJFR prior to the devaluation. The assessor estimates the increase in levy rate to be
$1.40/$1.00 assessed value in 2013 (when tax collections for an annexation that is voted on prior to
August 1, 2012 would be effective).
H. An annexation results in the levy rate of EJFR being applied to the City. While an
annexation prior to unifonn valuation is revenue -neutral to residents of EJFR, applying a $1.40 levy
rate to properties in the City would result in a tax collection from the City that exceeds the amount
needed to reach parity between the City and EJFR based on the Interlocal Agreement between the
City of Port Townsend and EJFR.
I. Properties in the City are scheduled for revaluation by the assessor in 2013 (for tax
collections in 2014). If devaluation of properties in the City is in the same range as properties in
EJFR, then the 2014 estimated levy rate of $1.40 in EJFR applied against the lower City valuation
would yield an amount consistent with the current Interlocal Agreement between the City of Port
Townsend and EJFR.
J. Based on the above, the City Council detennines that an annexation should be delayed until
revaluation occurs (or the estimated effect of revaluation is known) and the estimated levy rate in
EJFR applied against the lower City valuation would yield an amount consistent with the Interlocal
Agreement between the City of Port Townsend and EJFR.
K. In delaying annexation for the reasons set forth above, the City Council determines that it
should address the current imbalance in funding for fire service that results from the $1.00/$1,000
assessed value contribution approved by EJFR voters in April, 2010, and the equivalent
$0.57/$1,000 assessed value contribution by the City residents resulting from the unsuccessful
August, 2010 ballot measure in the City.
L. The City Council reviewed options to address the imbalance in funding for fire service,
including budget cuts in services. However, at town meetings and in City Council meetings, the
City Council has heard strong support for maintaining services, and for not cutting services without
public input and process. Therefore, the City Council has determined that the ballot proposition
contained in this Ordinance shall be placed before the voters at the election occurring on November
Ordinance 3060
Fire Services Levy Lid Lift
Page 3 of 4
8, 2011, proposing a levy lid lift to raise the City's maximum allowable levy under chapter 84.55
RCW by $0.43/$1,000.
M. The intended result is that this $0.43/$1,000 levy lid lift would be added to the $0.57/$1,000
already committed to fire services under the current Interlocal Agreement, and would match the
contribution made by the residents of the EJFR ($1.00/$1,000 assessed value for the City based on
existing valuations approximates the $1.40/$1,000 assessed value for EJFR based on pending new
valuations) until an annexation becomes effective. Upon the effective date of the annexation into
the EJFR, the $0.43/$1,000 levy lid lift would expire.
NOW, THEREFORE, the City Council of the City of Port Townsend does ordain, as follows:
Section 1. Findings and Determinations. The City Council finds that it is in the best interests of the
City to submit to the qualified voters of the City, at an election on November 8, 2011, a proposition
authorizing the City to increase its regular levy for collection in 2012 by an amount greater than
otherwise permitted under chapter 84.55 RCW for the purposes described in more detail in Section
2, below. If this proposition is approved, the City Council will be authorized to adopt, in
accordance with its regular budget process, an increased regular levy in 2012, not to exceed the rate
approved by this ballot proposition, which amount shall be used in future levy limit calculations as
described in Section 2, until no longer needed to provide for the fire services described in Section 2.
Section 2. Purpose and Description of Ballot Proposition. For the purpose identified below, the
City seeks voter approval under RCW 84.55.050(1) for a levy lid lift, as follows:
2.1 Purpose. The amounts collected pursuant to the increase authorized shall be used solely
to pay the costs of providing fire protection, prevention and emergency services,
pursuant to a contract with the EJFR.
2.2 Levy Rate Authorized;. The proposition would authorize a total maximum regular levy
rate of $2.4664 per $1,000 assessed value which is an increase of $0.43 per $1,000 of
assessed value for collection in 2012. This is estimated to produce an incremental
increase in the regular property tax rate over the rate to be levied for collection in 2011
of approximately $0.43/$1,000 (or $623,000).
2.3 Expiration upon Annexation into EJFR. The dollar amount of the regular levy
authorized for collection in 2012 shall be included in the calculations for the purpose of
computing the limitations on subsequent levies under ch. 84.55 RCW for the limited
purpose of providing fire protection, prevention and emergency services. This purpose
shall be deemed to have been satisfied, and the City's authority to levy increased regular
property taxes for such purpose shall expire, as of the first collection year of a regular
levy for such purposes by the EJFR.
Section 3. Calling of Election and Ballot Proposition. The City hereby requests the Auditor of
Jefferson County, as Ex-officio Supervisor of Elections, to call and conduct an election to be held
Ordinance 3060
Fire Services Levy Lid Lift
Page 4 of 4
on November 8, 2011, and to submit to the voters of the City the following proposition in the form
substantially as follows:
PROPOSITION [1]
City of Port Townsend
FIRE AND EMERGENCY SERVICES
LEVY LID LIFT
The City Council of the City of Port Townsend has adopted Ordinance 3060, concerning the
City's regular property tax levy. If approved, Proposition [1] would authorize a maximum
levy rate for collection in 2012 of $2.4664 per $1,000 assessed value which is an increase of
$0.43/$1,000. The increase is restricted to providing for fire protection, prevention and
emergency services by contract with East Jefferson Fire Rescue, to match the EJFR's
residents' contribution. Increases (plus all previously voter -approved increases) will be used
in future levy limit calculations, except that this increase expires if the City annexes into
EJFR.
Should this proposition be: —Approved? _Rejected?
Section 4. Notices Relating to Ballot Proposition. For purposes of receiving notice of the exact
language of the ballot proposition required by RCW 29A.36.080, the City Council hereby
designates the City Attorney as the individual to whom such notice should be provided.
Section 5. Authorization to Deliver Ordinance and Perform Other Necessary Duties. The City
Clerk is authorized and directed, no later than August 16, 2011, to certify a copy of this ordinance to
the Auditor and to perform such other duties as are necessary or required by law to the end that the
proposition described herein should appear on the ballot at the election to be held on November 8,
2011.
ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof,
held this 1 st day of August 2011.
Attest:
Pamela Kolacy, MMC
City Clerk
Michelle Sandoval, Mayor
Approved as to form:
John P. Watts
City Attorney