2021 PROPERTY TAX LEVY

(1)

2021 PROPERTY TAX LEVY

NOVEMBER 4, 2020

(2)

PR

O

PE

RTY

TA

X LI

MI

TA

TI

O

NS

2

2021 PROPERTY TAX LEVY – NOVEMBER 4, 2020

 _{Statutory limit of 1% of full, fair market value - $10.00 per $1,000 of}

assessed value

 _{Levy rate per $1,000 of assessed value}

 _State _$3.60

 _{Local Districts} _{5.90 Includes senior & junior districts}

 Other 0.50

 Total $10.00

 _{Senior Taxing Districts:}

 _{Counties regular levy}  County Road District

 Cities

 The following are considered Senior Taxing Districts and are not subject to the $5.90 limit but are subject to the 1% or $10.00 limit

 _{Public Utility Districts}

(3)

PR

O

PE

RTY

TA

X LI

MI

TA

TI

O

NS

3

2021 PROPERTY TAX LEVY – NOVEMBER 4, 2020

City of Port Angeles levy limit:

 _{Regular limit} _$3.163per $1,000 of assessed value

 _{Fire Pension} _$0.225

 Total COPA Levy Limit $3.388

 2020 Levy $2.298

 Available Regular Capacity $1.090

 2021 Levy est. $2.210

(4)

PR

O

PE

RTY

TA

X LI

MI

TA

TI

O

NS

4

State law allows for a property tax increase up to the Implicit Price Deflator (IPD) or one percent, whichever is lower.

 _{Implicit Price Deflator for Personal Consumption}

Expenditures published by the Bureau of Economic Analysis

 _{Used to determine the inflation in the economy}

 _{Current IPD is 0.602%}

 _{In year’s when the IPD falls below 1.0% it is necessary for} a resolution declaring substantial need to be passed by

Council in order to levy an increase of the full allowable 1.0%

A 1% increase is directed in Section 2.13 of the City’s Financial Policies.

(5)

PR

O

PE

RTY

TA

X LI

MI

TA

TI

O

NS

5

2021 PROPERTY TAX LEVY – NOVEMBER 4, 2020

1. 314% 1. 591% 0. 251% 0. 953% 1. 553% 2. 169% 1. 396% 0. 602% 2013 2014 2015 2016 2017 2018 2019 2020

(6)

VA

LUE O

F

1%

6

Value of a 1% Increase in 2021.

 1% increase = $47,300 estimate

Value of New Construction

 _{Assessed value =}_$9,920,709  Tax value = $22,800

 Taxes from New Construction are not tied to or included in the 1% increase.

The City also receives amounts for increases in State property assessed valuation, refunds and

(7)

VA

LUE O

F

1%

7

2021 PROPERTY TAX LEVY – NOVEMBER 4, 2020

$4, 267, 485 $4, 346, 461 $4, 416, 728 $4, 509, 208 $4, 569, 617 $4, 645, 944 $4, 683, 200 $4, 786, 700 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2014 2015 2016 2017 2018 2019 2020 Budget 2021 Estimate

(8)

ASSE

SSE

D

VA

LU

E H

ISTO

RY

8

$1, 519, 228, 137 $1, 451, 933, 471 $1, 438, 413, 451 $1, 475, 541, 073 $1, 537, 541, 986 $1, 667, 859, 147 $1, 835, 129, 773 $2, 057, 224, 161 $2, 173, 564, 758 2.98 3.16 3.23 2.98 _2.91 2.73 2.53 2.30 _2.21 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021

ASSESSED VALUES & LEVY RATES

Assessed Values Levy Rate

(9)

TA

X COS

T

TO H

OM

EOW

NE

RS

9

2021 PROPERTY TAX LEVY – NOVEMBER 4, 2020

TAX YEAR REGULAR LEVY TAXES ON A $200,000 HOME TAXES ON A $250,000 HOME TAXES ON A $300,000 HOME 2016 2.98 $ 447.00 $ 596.00 $ 745.00 2017 2.91 $ 582.00 $ 727.50 $ 873.00 2018 2.73 $ 546.00 $ 682.50 $ 819.00 2019 2.53 $ 506.00 $ 632.50 $ 759.00 2020 2.30 $ 460.00 $ 575.00 $ 690.00 2021 2.21 $ 442.00 $ 552.50 $ 663.00

(10)

TA

X COS

T

TO H

OM

EOW

NE

RS

10

2021 PROPERTY TAX LEVY – NOVEMBER 4, 2020 264.3 Assessed value per every $1,000 2.21 The estimated 2021 levy rate (includes the 1% increase) $584.10

The tax collected in 2020 was $575.00. This means the increase in 2021 will be $9.10 A $250,000 home in 2020 with the average assessed value increase of 5.7% would be worth $264,250 in 2021.

(11)

CON

CL

US

ION

11

2021 PROPERTY TAX LEVY – NOVEMBER 4, 2020

The 1% property tax increase proposed is the only increase included in the 2021 Budget.

_{Utility rates remain the same as 2020}

_{No proposed increases to the Water or Wastewater}

rates for 2021 – 2022

_{Electric Utility rates were previously adopted for 2021}

and are expected to remain flat for the majority of

customers with base rates going up slightly and usage rates going down.

 Some customers with high consumption may see a small increase.

_{All other rates have been approved with no}

(12)

BU

DGE

T SC

H

ED

ULE

12

2021 PROPERTY TAX LEVY – NOVEMBER 4, 2020

2021 Property Tax 2nd _{Public Hearing & Adoption}

of Ordinance. 2020 Budget Presentation, Public Hearing & 1st _{Reading of Ordinance}

2021 Budget Public Hearing Continuation & 2nd

Reading of Ordinance

DEC 1 NOV

(13)

REQ

UES

TED

P

RO

CES

S

13

_{Questions from Council}

_{Conduct the first reading of the 2020 Property Tax levy}

for 2021 Collection Ordinance.

_{Open the Public Hearing}

_{Continue the Public Hearing to November 17}th

_{Conduct the reading of the Substantial Need Resolution.}