PORT ANGELES — City property owners could see a tiny decrease in their taxes next year even if Port Angeles’ regular levy increases by 1 percent.
If a proposal from city Finance Director Yvonne Ziomkowski, presented to the Port Angeles City Council during a budget work session Tuesday, is passed by council members next month, property owners would pay the city — through its regular property tax levy and two special levies — a total of $2.33 per $1,000 assessed valuation in 2010, based on current property values.
That would be a slight decrease from the current total levy rate of $2.345 per $1,000 assessed valuation.
For the owner of a $200,000 home, that equates to $3 a year in savings.
Levies and such
Ziomkowski’s proposal includes both a 1 percent, or $40,020 increase, in the city’s regular levy — the most allowed by state law — and about a 10 percent decrease in its special levy rate for the construction of the fire station and senior center.
Under the proposal, the city would reduce that special levy rate from 20 cents per $1,000 assessed valuation to about 18 cents, based on current property values, Ziomkowski said.
The city still would generate $40,020 more in property tax revenue next year.
That’s because the estimated $70,820 that would be lost through the drop in the special levy would be made up with the levy’s reserve account.
The rest of that account, which now sits at $130,457, would be used to offset any further losses in 2011, she said.
But, Ziomkowski explained, that money still would be used to lower the levy in about 2012 — the year before the levy expires — if the proposal isn’t approved by the City Council at its Nov. 17 meeting.
The new proposal would mean that property owners would see the reduced levy a few years sooner.
The purpose of the plan, Ziomkowski told the PDN, is, “To get relief to taxpayers immediately, not sometime in the future, but immediately.”
Rogers cautious
City Council member Karen Rogers was cautious about accepting an increase in any of the levies while voters are considering whether to pass Initiative 1033, which would limit general fund revenue of cities, counties and the state and send excess revenue to property owners.
“I thought long and hard about this,” she said.
“We need to send a message to all citizens. We need to understand clearly the impact to their property taxes.”
While property owners may see some relief next year, all city residents will pay 4 percent more in wastewater rates — or on average $4.60 more per month — in 2010.
The City Council is currently mulling 8.5 percent increases in water base and consumption rates, which would on average add $3.17 a month to residential utility bills next year.
The City Council also received an update Tuesday from staff on projected changes in city revenues and expenses for 2010.
Some of the most notable changes are:
• A $2.2 million drop in projected electrical purchase costs from Bonneville Power Administration. Glenn Cutler, city public works and utilities director, said the difference is mostly due to the city and BPA settling on Port Angeles’ residential rate credit for next year.
• An additional $70,000 drop in projected sales tax revenue.
• A $12,000 contribution from the city’s lodging tax revenue to attract additional youth sport tournaments to Port Angeles.
• Adding Family Fun Day back into the budget. This $6,000 event was added after the City Council reached a consensus at the work session.
The city staff is now projecting that the overall 2010 budget will be about $98.1 million — a drop of about $2 million, thanks to the updated electrical purchase projection.
The 2009 budget is $103 million.
The city’s general fund — its main operating account — is now projected to include $17.215 million in expenses next year, a slight decrease from the previous projection of about $17.316 million.
The difference is due to a few expenses — such as the city’s share of Clallam County District Court costs and staff medical premiums — coming in lower than previously projected.
This year’s general fund expenses were budgeted at $17.2 million.
The 2010 general fund proposal includes $200,000 from reserves that would be spent on street projects.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.