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Ordinance 20-016 substantial need CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO.20-016 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, MAKING A DECLARATION OF SUBSTANTIAL NEED FOR THE PURPOSE OF SETTING THE LIMIT FACTOR FOR THE PROPERTY TAX LEVY FOR THE 2021 TAX YEAR,AND OTHER MATTERS RELATING THERETO. WHEREAS, pursuant to RCW 84.55.010, a taxing jurisdiction may levy taxes in an amount no more than the limit factor multiplied by the highest levy of the most recent three years plus additional amounts resulting from new construction and improvements to property,newly constructed wind turbines, and any increase in the value of state-assessed utility property; and WHEREAS, pursuant to RCW 84.55.005(2)(c), the limit factor for a taxing jurisdiction with a population of 10,000 or more is the lesser of 101 percent or 100 percent plus inflation; 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 twelve-month period by the bureau of economic analysis of the federal department of commerce by September 25th of the year before the taxes are payable;"and WHEREAS,inflation for the most recent 12 month period as published in September 2020,is 0.602 percent and the limit factor is 100.602 percent, limiting taxes levied in the City of Spokane Valley in 2020 for collection in 2021 to an increase of 0.602 percent; and WHEREAS,RCW 84.55.0101 provides for use of a limit factor of 101 percent or less with a finding of"substantial need"by a majority plus one of the City Council; and WHEREAS,the City of Spokane Valley has experienced declining and unstable revenues for sales taxes,real estate excise taxes, lodging taxes,motor vehicle fuel taxes as well as other sources of revenue as a result of mixed economic conditions from the COVID-19 pandemic; and WHEREAS, the City of Spokane Valley has incurred increasing costs far in excess of the one percent limit factor in police services, labor and benefits, park and general maintenance services, supplies and other applicable general fund services; and WHEREAS, the City of Spokane Valley's General Fund would benefit from a declaration of substantial need; and WHEREAS,the City Council of the City of Spokane Valley finds there is a substantial need to set the levy limit at hundred one percent(101 %). NOW, THEREFORE,the City Council of the City of Spokane Valley, do ordain as follows: Section 1. Substantial Need-A finding is made of substantial need pursuant to RCW 84.55.0101, which authorizes the use of a limit factor of 101 percent for the property tax levy for 2021. Section 2. Severability. If any section, sentence,clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality Ordinance 20-016 Declaring Substantial Need for 2021 Property Taxes Page I of 2 shall not affect the validity or constitutionality of any other section, sentence, clause, or phase of this Ordinance. Section 3. Effective Date. This Ordinance shall be in full force and effect five days after the date of publication of this Ordinance or a summary thereof in the official newspaper of the City. PASSED by the City Council this 10th day of November, 2020. 4 DI Ben Wick,Mayor AT tS i -- v - istine Bainbridge, ty Clerk Approved As To Form: 6 ,..a Office o e City Attorney Date of Publication: if ad - 47-d Effective Date: ii ' � � Ordinance 20-016 Declaring Substantial Need for 2021 Property Taxes Page 2 of 2