This item relates to Ordinance No. 2017-25 regarding the levy of property taxes for the City of Bainbridge Island for the fiscal year commencing January 1, 2018.

Annually, each city must set their property tax levy for collection in the following year. The 2018 Adopted Budget assumes an increase in the dollar amount being collected (plus charges on new construction) in the amount allowed by Initiative 747 as calculated by the Kitsap County assessor. The actual amounts are as follows: a dollar increase for the Property Tax of $52,741, an increase due to new construction of $105,695, and the tax refund amount is $28,393, bringing the total levy to $7,498,946 on total assessed valuation of $7,541,750,630. Additional detail is provided on the attached sheet, which is provided by Kitsap County to explain the calculations.

In addition, Ordinance No. 2017-25 will levy $615,100 to pay the 2018 debt service cost of the Open Space General Bond Obligation Bonds. The levy is equal to the amount of the debt service.

On November 7, 2017, the City Council held a public hearing on Ordinance No. 2017-25, and the Council forwarded the ordinance to the consent agenda for the Council meeting on November 14.