CITY OF SPOKANE

2016 BUDGET
REVENUE UPDATE

REVENUE UPDATE

Hearings and other key dates

Revenue overview
Property Tax
Sales Tax
Utility Tax
REET

2016 BUDGET KEY

DATES

Budget Hearings

Nov
Nov
Nov
Nov
Nov

2nd Revenue Hearing

9th Budget Hearing - Utilities
16th Budget Hearing BDS/Streets
23rd Budget Hearing Police & Fire
30th Final Public Hearing on Budget

Other Key Dates

November 9th Property Tax Ordinance

Council Briefing November 2nd

Finance Committee October 5th?

GENERAL FUND
REVENUE

Property, Sales, & Utility Taxes > 80% of total

GF revenue
Property tax 1%, New Construction, Library and
Street Levies (IPD may be below 1% requiring
substantial need resolution)
Sales tax 8.7%

Majority goes to the State

General Fund ~ 1%

Private Utility tax rates capped at 6%

Utility Tax on City Utilities rates set by City Council

GENERAL FUND
REVENUE
PROJECTIONS

Property Tax revenue

1% increase - public safety capital

Library LLL = $0.07 / $1,000 AV

Streets LLL = $0.57 / $1,000 AV

Sales Tax 3.0% increase

2015 Currently ~ 3.7% higher than prior year

Private Utility tax revenue ~ 3% increase

City Utility tax revenue ~ 2.9% increase

Utility rate increases based on long term CPI

5

PROPERTY TAXES

Where do my property taxes go?

Total levy
City levy breakdown

Mill rate annual comparison

Levy % change Regular Levy
Levy amounts Regular Levy
New Construction Impacts

Where Do My Property
Taxes Go?
2015 Allocation of Property Taxes

Spokane County; 11%

City of Spokane; 31%
State of Washington; 16%

Spokane Public Schools; 42%

For every $1,000 paid in property taxes, the City

7
gets ~ $313

ALLOCATION OF $1,000 IN
PROPERTY TAXES

SPOKANE PUBLIC SCHOOLS

STATE OF WA (SCHOOLS)
SPOKANE COUNTY

$424
$159
$106

CITY OF SPOKANE

$313

Where Does the $313 Go?

2015 Allocation of City Portion of Property Taxes

Voted Park Bonds; 8%

Voted EMS Levy; 11%

Fire Pension Fund; 7%

Voted Library Levy; 2%
General Fund / TIF; 60%
Voted Street Levy; 13%

For every $1,000 paid, ~ $187 goes to the

General Fund
Over 33% is voter approved for specific

ALLOCATION OF $313 CITY

FUNDS
GENERAL

FUND
VOTED STREET LEVY
VOTED EMS LEVY
VOTED PARK BONDS
FIRE PENSION FUND
VOTED LIBRARY LEVY

$187
$ 40
$ 35
$ 25
$ 21
$ 5
1

CITY OF SPOKANE LEVY RATE 08

-16
5.00
4.50
4.00
3.50
Rate per $1,000 AV
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2008

2009

2010

Total City Levy

2011
Regular Levy

2012

2013
Voted GO Bond

2014

2015

2016 Est

1
1

Voted EMS

CITY OF SPOKANE
LEVY MILL RATE COMPARISON
2012

2013 2014 2015

2016
Est.

Regular Levy

2.85

2.92

3.03

3.60

3.56

EMS Levy

0.50

0.50

0.50

0.50

0.50

Voted Debt

0.89

0.92

0.91

0.35

0.35

Total City rate

4.24

4.34

2015 based upon AV estimates from County

4.44

4.45

4.41

1
2

PROPERTY TAX REVENUE %

CHANGE
City of Spokane
Regular Property Tax Levy

30.00%

Street
Levy Lid
Lift

25.00%
20.00%
15.00%
Voter
10.00% Approved
Levy Lid
Lift
5.00%

West
Plains
Annexatio
n

Banked
Capacity
&
Library
Levy Lid Lift

0.00%
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

-5.00%
-10.00%

2014 and 2015 are estimated amounts

REGULAR PROPERTY TAX LEVY

City of Spokane Regular Property Tax Levy
60,000,000
55,000,000
50,000,000

Levy Lid Lift

(Public Safety
& Library)

45,000,000
40,000,000

West
Plains
Annexati
on

1%,
Banked
Capacity,
Voter
Approved
Library Lid
Lift

Stree
t Levy

35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000

2014 and 2015 are estimated amounts

2007
2008
2009
2010
2011

2012

2013

2014

2015

2016

NEW CONSTRUCTION IMPACT

Regular Levy Revenue from New Construction
1,200,000

1,000,000

800,000

600,000

400,000

200,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SALES TAX

Sales Tax Components

Sales tax collection Local Option
1%
4-year month over month
comparison
Annual percent change
Actual sales tax growth v. baseline
growth

SALES TAX COMPONENTS

Sales Tax Components

State of Washington

6.50%

City of Spokane **

1.00%

Spokane Transit Authority (STA)

0.60%

Public Facilities District

0.10%

Criminal Justice

0.10%

Juvenile Detention

0.10%

Public Safety & Health

0.10%

Mental Health

0.10%

Emergency Communications

0.10%

Total

8.70%

Spokane County gets 15% of Citys tax

SALES TAX
Sales Tax Distribution
The City Local Sales Tax Generates $0.84 From a $100 Taxable Sale

Mental Health Treatment; $0.10

Spokane County; $0.15
Public Facilities District; $0.10

Spokane Transit; $0.59

Detention and Jails; $0.10

Emergency
Comms.;$0.84
$0.10
City of Spokane;
Public Safety; $0.10
Criminal Justice ; $0.10
WA State;

$6.50

State Admin Fees; $0.02

SALES TAX REVENUE

Monthly Sales Tax
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00

Jan

Feb

Mar

Apr
2011

May
2012

Local Option Sales Tax

Jun
2013

Jul
2014

Aug

Sep

2015 Est

Oct

Nov

Dec

SALES TAX REVENUE

Cumulative Sales Tax
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00

Jan

Feb

Mar

Apr

2011

May
2012

Local Option Sales Tax

Jun
2013

Jul
2014

Aug

Sep

2015 Est

Oct

Nov

Dec

SALES TAX ANNUAL % CHANGE

City of Spokane
Local Option Sales Tax
Year over Year % Change
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

-4.00%
-6.00%
-8.00%

2015 and 2016 are estimates

ACTUAL INCREASES V. 2.5%

BASELINE
City of Spokane
Local Option Sales Tax
44.00
42.00
40.00
38.00
36.00
34.00
32.00
30.00
28.00
26.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 201420152016
est prelim
Actual Change

2015 and 2016 are estimates

2.5% Annual Growth

UTILITY TAXES

Utility Taxes Private Utilities

Electric
Natural Gas
Telephone
Cable

Utility Taxes City Utilities

Water
Sewer/Stormwater/Integrated Capital
Solid Waste

PRIVATE UTILITY TAX REVENUE

Private Utility Tax
30.00
26.80

25.00

27.50

25.37

26.59
24.59

25.61

25.08

25.85

26.00

2014

2015

26.70

20.00
Millions of $
15.00

10.00

5.00

0.00

2007

2008

2009

2010

2011

2012

2015 & 2016 are estimated amounts

2013

2016

PRIVATE UTILITY TAX REVENUE

Utility Tax Revenue - Private Utilities Year over Year % Change
20.0%
15.0%
10.0%
5.0%
0.0%

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

-5.0%
-10.0%
-15.0%

2015 & 2016 are estimated amounts

UTILITY TAX REVENUE CITY

UTILITIES
Utility Tax Revenue
City Utilities

40.00
35.00

29.91

30.00
25.59

26.08

2008

2009

31.21

31.66

2012

2013

32.61

34.00

35.00

27.21

25.00
In Millions of20.63
$
20.00
15.00
10.00
5.00
0.00
2007

2010

2011

2015 & 2016 are estimated amounts

2014

2015

2016

UTILITY TAX REVENUE CITY

UTILITIES
Utility Tax Revenue - City Utilities Year over Year % Change
30.0%

25.0%

Began
taxing total
gross
revenue
24.0%

20.0%

15.0%
Sewer
rates
9.9%
increased
15%

10.0%

4.3%

4.3%

5.0%
1.9%

0.9%

3.0%

4.3%

2.9%

1.4%

0.0%
2007

2008

2009

2010

2011

2012

2015 & 2016 are estimated amounts

2013

2014

2015

2016

REAL ESTATE EXCISE TAX

City of Spokane Real Estate Excise Tax Revenue
Annual Revenue
8.00
6.83 6.65

7.00

6.20

6.00
4.96 5.12

4.92

5.00
4.00 3.74

4.03

4.47

4.36
3.58
3.12

3.00

2.90

2.82
2.30

2.00
1.00
0.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142015 est
2016 est

REAL ESTATE EXCISE TAX

ANNUAL PERCENT CHANGES
50.0%
40.0%
30.0%

26.3%
22.0%

23.3%

21.8%

20.0%
13.8%

10.0%
0.0%

3.2%
2004

38.7%
2005

2006

-2.6%

-6.7%

-27.9%

-30.2%

-9.8%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

-10.0%
-20.0%

-18.3%

-30.0%
-40.0%

Questions?