Olympia City Council approves with a 2.3% ‘excess tax’ levy increase for 2023

At the city council meeting, Tuesday, November 1, Olympia Finance Director Aaron BeMiller said the property tax revenue that the city plans to collect in 2023 is a 2.3% increase from 2022 and is estimated to be collecting a total of $20,368,001.24.

According to BeMiller, the 2022 estimated assessed value (AV) of properties for collections in 2023 is $11,822,825,673.  

He said the county assessor determines the AV. The highest levy the city could collect is $19,994,908.73, according to the 1% lawful limit levy.

In addition to the 1% statutory limit, BeMiller said the city is legally allowed to collect add-ons because of new construction, improvements to the property, and any increase in the value of the state-assessed property for a total of $373,092.50. With this additional amount, the district levy for collection in 2023 would be $20.3 million.

The finance director said property owners would pay $1.72 for every $1,000 assessed valuation.

Excess levy

According to the Department of Revenue of Washington State website, excess levies are imposed over and above regular property tax levies. Most excess levies require voter approval by a supermajority (60%).

BeMiller stated that in 2008 voters approved an excess levy to pay for the debt service – principal and interest – on bonds issued to fund the construction of fire facilities and equipment purchases.

He said the collections for 2023 will be $1,055,983.85, which includes an administrative refund levy of $7,438.

"The bond will be fully paid off in December 2029 in December. At that point, this levy would also fall off," BeMiller informed the council members.

Property owners are paying $0.09 per $1,000 assessed valuation for the 2008 excess levy bond.

Parks Levy

In addition, the Olympia Metropolitan Park District (OMPD) Board will consider approving a levy of $5,378,534 at their November 15^th meeting.

According to the City of Olympia’s website, The OMPD is a junior property taxing district with special taxing authority for the management, control, improvement, maintenance, and acquisition of parks, pathways, boulevards, recreational facilities, programs, and services.

Property owners would be paying 45 cents per $1,000 AV for this levy.

BeMiller said the total of all three levies is $26,802,519.

The combined levy rate for 2023 for the city and OMPD is $2.27 per $1,000 AV.

The ordinance stated that on or before November 30, 2022, the city shall file with the Clerk of the Thurston County Board of Commissioners a certified estimate of the total amount to be raised by the ad valorem tax levied on property within Olympia. Ad valorem taxes are based on property values.

After BeMiller's presentation, Mayor Pro Tem Clark Gilman opened the public hearing on the regular and excess levies for the 2023 ad valorem tax. No community members signed up to comment.

The city council then approved the ordinance on the first reading and forwarded the same for the second reading.