Saturday, October 29, 2016

CITY SET TO ACCEPT THAT 1% PROPERTY TAX INCREASE...

AND YOU WONDER WHY PA  CAN'T BUILD NEW SCHOOLS!

During their next meeting on Tuesday, the council will consider raising your property taxes, yet again by accepting the state's law regarding property tax rates.
According to the staff memo provided in the city's agenda packet: In accordance with state law, the 2017 Preliminary Budget was filed
with the City Clerk on October 20, 2016. In addition, a presentation of estimated 2017 Revenues was provided to Council at a public hearing on October 18th.
This is the first public hearing related to the overall 2017 budget, which will focus on property taxes; including finding of substantial need, authorizing a 1% increase in the property tax, and levying a property tax to be collected in 2017. State law requires that the City levy property taxes before November 30 each year. The property tax ordinance is scheduled for adoption at the November 15th Council meeting. The two resolutions are scheduled for adoption Tuesday's meeting.
The  public hearing will include an opportunity for comments on:
 2016 Levying of Property Tax for collection in 2017
 Finding of Substantial Need
 Authorizing an increase of 1% for Property Tax
The City Council by simple majority vote can increase the regular property tax levy by the lesser of one percent or the implicit price deflator (IPD). For 2017 collection, the IPD is below 1%, which means the Council may increase the property tax levy by 1% only by adopting the resolution stating substantial need exists – a similar occurrence happened with the 2015 property tax levy for 2016 collection. The estimated value of a 1% increase in property tax collection in 2017 is approximately $45,000.
The City is also able to collect property tax on the value of new construction added during the past year. The City has not yet received notice from Clallam County on the value of new construction; however, this should be received by early November. The levy amount will increase based on the value of new construction. The value of new construction, along with the assessed valuation for 2016, is not yet available, but should be available by the November 15th Council meeting. The amounts included in the table on the next page are merely estimates at this point. There is no longer an Excess Levy amount as the Library levy matured in November 2015. This eliminated a voter-approved property tax of approximately $0.20 per $1,000 of assessed valuation beginning January 1, 2016.

Editorial Comment: WAIT! If the resolution is set to be adopted on the 15th, why the rush to get it adopted on Tuesday, Nov 1st? Nevertheless, the city will consider accepting the 1% increase by resolution this Tuesday it appears. Is it any wonder why we can't seem to pass school bonds, or levies to build new schools when property taxes keep going up. In this week's article in the PDN, the Port will also consider accepting the 1% property tax, and Port Commissioner Connie Beauvais  must have been reading the tea leafs or something because she pointed out that very thing regarding how accepting this 1% property tax increase affects any chances of school levies or bonds being approved by the voters. In the article with the headline: Port of Port Angeles considers tax increase The owner of property assessed at $200,000 would see about a 74-cent increase in property taxes.---PDN

Quoting Beauvais:  “Our communities can’t even pass school bonds or levies,” she said. “Even though it’s a minuscule amount of money, it does not look good.”

Editorial Comment: I would say so,  area business will probably have to pay more rent for the spaces they are renting, because the landlord's property taxes will increase, meaning higher prices for goods and services. Let alone, people who rent houses and apartments will also see increases because of it. We need a new high school built here folks, and raising taxes when we can't even build a new school for the kids, don't sit to well for this community as a whole.

Another hot topic on the Council agenda is  Lodging Tax Committee 2017 Budget Recommendations
According to staff memo provided: At a meeting held on October 20, 2016 the Lodging Tax Advisory Committee reviewed and considered eleven (11) applications for lodging tax expenditures. Due to file size, applications were distributed separately from the Council packet in an email dated October 25, 2016. In addition, the Committee reviewed final recommended allocations for marketing services, visitor center operation, and event grants. ---click here to continue