AN ORDINANCE relating to the levy of property taxes; amending the ordinance passed as Council Bill 113418 to levy additional regular property taxes upon all taxable property, both real and personal, in the City of Seattle; and in light of legal uncertainties surrounding State Initiative Measure 722 reaffirming, by a vote of a majority plus one, the City Council's finding of a substantial need to use, and use of, 106% as the regular property tax limit factor for taxes to be collected in 2001.

WHEREAS the voters of Seattle have lifted the levy lid in Chapter 84.55 RCW by approving Seattle Proposition 1 (Ordinance 120024) at the November 7, 2000 election, as certified by the King County Director of Records and Elections on November 22, 2000; Now Therefore,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section I. Section 1 of Ordinance 120154 (Council Bill 113418) is amended as follows:

Section 1. General Municipal and Firefighters' Pension.

A. (i) There is hereby levied a tax on all taxable property, both real and personal, within the City of Seattle and subject to taxation under the laws of the State of Washington, at the rate of Three Dollars and Sixty Cents ($3.60) per thousand dollars of the assessed value of such property, which is equal to ((Two Hundred Thirty Million, Four Hundred Eighty-seven Thousand, Three Hundred Sixty-four Dollars ($230,487,364))) Two Hundred Thirty-two Million Three Hundred Eighty-one Thousand Nine Hundred Eight Dollars ($232,381,908). This tax is levied for the purpose of raising revenue to finance the various departments and activities of the municipal government of the City of Seattle for the fiscal (calendar) year 2001. The following two sentences are provided for information only: This levy has been calculated at the following dollar rates per thousand dollars of assessed value: Three Dollars and Fifteen Cents ($3.15) for general municipal purposes as allowed by RCW 84.52.043; Twenty-two and One-half Cents ($0.225) for the Firemen's Pension Fund as allowed by RCW 41.16.060; and Twenty-two and One-half Cents ($0.225) for general municipal purposes as allowed by RCW 41.16.060. This levy includes an amount of Eight Hundred Twenty-eight Thousand Dollars ($828,000) for low-income housing that is not restricted to serving very low-income households, in accordance with Ordinance 117711; an amount of Ten Million Dollars ($10,000,000) for educational and developmental services in accordance with Ordinance 118557; ((and)) an amount of Sixteen Million Five Hundred Thousand Dollars ($16,500,000) to improve the Opera House, replace the Flag Pavilion, and expand nine Parks Department community recreation centers in accordance with Ordinance 119522, and an amount of Twenty Three Million Dollars ($23,000,000) for neighborhood parks, green spaces, trails, and the zoo in accordance with Ordinance 120024.

(ii) In addition, there is also hereby levied a tax on all taxable property, both real and personal, within the City of Seattle and subject to taxation under the laws of the State of Washington, in the amount of Seven Million, Six Hundred Thirty Thousand, Seven Hundred Fourteen Dollars ($7,630,714), such tax being levied for the purpose of financing affordable housing for very low-income households pursuant to RCW 84.52.105, pursuant to Ordinance 117711, which tax levy shall be outside of and in addition to the limitations in RCW 84.52.043.

B. If the total of the amounts of taxes imposed in subsections 1.A(i) and (ii) exceeds ((One Hundred Ninety-two Million Two Hundred Eighty-eight Thousand One Hundred Dollars ($192,288,100))) Two Hundred Fifteen Million Two Hundred Eighty-eight Thousand One Hundred Dollars ($215,288,100), then the total levy made in subsection 1.A shall be reduced to ((One Hundred Ninety-two Million Two Hundred Eighty-eight Thousand One Hundred Dollars ($192,288,100))) Two Hundred Fifteen Million Two Hundred Eighty-eight Thousand One Hundred Dollars ($215,288,100) or the rate necessary to produce that amount.

Section II. Section 2 of the ordinance passed as Council Bill 113418 is amended as follows:

Section 2. Because of legal uncertainty created by State Initiative Measure 722 as to whether RCW 84.55.092 will allow the potential for future use of unused levy capacity, and because of differing interpretations as to how regular tax levy limits are to be computed under State Initiative Measure 722, the City of Seattle makes the following finding and provision, although the City believes its regular property tax levy is lawful and proper without it. Pursuant to Chapter 3, Laws of 1997, as approved by the voters of the state on November 4, 1997, and because of the investments of resources that will be necessary in 2001 in order to implement the City Council's and Mayor's top budget priorities for both the operating budget and the 2001-2006 Capital Improvement Program, as reflected in Resolution 30224 and the 2001 Adopted Budget, and in order to continue to carry out the 2000-2005 Capital Improvement Program, and to reserve the potential for preserving future levy capacity under RCW 84.55.092, the City Council finds that there is a substantial need to use and hereby does use one hundred and six percent (106%) as the regular property tax limit factor, formerly known as the "106% lid," for regular property taxes to be collected in 2001.

Section III. Severability. The several provisions of this ordinance are declared to be separate and severable and the invalidity of an clause, sentence, paragraph, subdivision, section, subsection, or portion of this ordinance, or the invalidity of the application thereof to any person, property, or circumstance, shall not affect the validity of the remainder of this ordinance or the validity of its application to other persons, property, or circumstances.

Section IV. Ratification and confirmation of prior acts. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and confirmed.

Section V. Effective date. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by a vote of at least a majority plus one of the City Council the _____day of _________________, 2000, and signed by me in open session in authentication of its passage this_____ day of _________________, 2000. _____________________________________ President ____________ of the City Council

Approved by me this _____ day of _________________, 2000. ___________________________________________ Mayor

Filed by me this _____ day of ____________________, 2000. ___________________________________________ City Clerk

November 25, 2000 113486-v5.doc (Ver. 5)