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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 --I�Iic11c;1-1e-��rid�val; l�Iaya3= ��•1 tCi G_fs�c ji'j'�f�17'<. �: � tiN �`�l <`F� %r��7 if`+dc„ 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