Kennewick avoids loss of property tax revenue

By Drew Foster, Herald staff writer

KENNEWICK — The Kennewick City Council used a super-majority vote Tuesday night to avoid losing about $85,000 in potential property tax levy revenue next year.

The council's action -- approving a declaration of substantial need with a 6-0 vote -- did not change the city's property tax levy. However, because of a $330 million increase in Kennewick's estimated 2010 valuation, next year's property tax levy rate will drop 12 cents, from $2.28 to $2.16 per $1,000 of assessed property value.

Councilwoman Marge Price was absent.

The super-majority vote curtailed the effects of a statewide initiative passed in 2001 that restricts the ability of cities to increase property tax levy revenue by more than 1 percent.

Without the super-majority vote, the city's property tax levy rate would have dropped to $2.14 per $1,000 of assessed property value, resulting in the loss of about $85,000 in property tax levy revenue next year. By approving the declaration of substantial need, the city council could have increased the property tax levy anywhere from 0 to 1 percent. It decided Tuesday to make no increase. An owner of a $150,000 home will pay an annual property tax levy rate of $324 next year.

Property tax levy revenue should generate about $10.15 million next year for Kennewick.

Benton County Assessor Barbara Wagner said the city's assessed valuation increased about $330 million -- from $4.37 billion to $4.7 billion -- because the city underwent a revaluation in the past year. The county is divided into sixths, and one-sixth of the county is re-valued each year. The revaluation process includes a team of appraisers descending on individual neighborhoods to gauge the value of every property in a city.

"When you do a physical inspection ... (the appraisers) are really making sure of (the properties') values," Wagner said.

Property values usually are assessed by statisticians who compare property sales to distill price trends and market values compared to previously assessed values.

Also Tuesday:

w The council approved modifications to its biennial budget, which covers 2009 and 2010, by a 6-0 vote. Major modifications included reducing estimated sales tax, optional sales tax and real estate excise tax revenues, and increasing appropriations by $16.4 million. Much of those appropriations are concentrated in the city's 13.6 million local revitalization financing projects, including an effort to boost development in the Southridge area.

w Drew Foster: 585-7207; dfoster@tricityherald.com

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Wednesday, Nov. 18, 2009

Kennewick avoids loss of property tax revenue

By Drew Foster, Herald staff writer