An uptick in property, sales and real estate taxes will mean more revenue for Langley in 2016.
A rough, working estimate for the 2016 budget is $6.5 million. By mid-November, Mayor Fred McCarthy said in an email, a more accurate and precise number will be available for the city to finalize its budget by December.
In a presentation made by Finance Director Debbie Mahler during the city council’s meeting Oct. 19, she reported that the operating levy revenue will be about $408,000 from property taxes alone. That number is based on the $399,742 collected in the past year plus a 1 percent increase and $3,283 from new construction.
According to Mahler’s presentation, property owners in Langley paid $2,679 for property taxes on a $300,000 home. Of that, $507 went to the city.
The citywide property tax pays for routine city services, including City Hall staff and police, as well as street cleaning, garden watering, etc. Of a property’s total tax bill, only 19 percent goes to the city. In 2015, city property owners paid $8.93 per $100,000 of assessed value, of which $1.69 went to Langley.
Langley’s cut of sales tax money is equal to about 85 cents for every $100 spent.
In 2014, sales tax revenue in Langley totaled $322,774. It is the second-highest amount in the city’s history, behind only the banner year of 2008 when $347,075 in sales tax was collected.
So far in 2015, the city is on pace to beat last year’s sales tax revenue. Through September, about an additional $5,000 was collected compared to 2014.
Hotel/motel taxes have ballooned in the past five years. A 10-year low was collected in 2010 of $90,601. That rebounded in a major way in 2011 to $122,820 and dipped again in 2012 and 2013 before another spike last year of $124,554. At this point, the hotel/motel tax is on pace to surpass last year with about $5,000 more collected.
Councilwoman Rene Neff defended the city’s push for tourism as being necessary for its financial well being. Some complain about the influx of tourists and the perception that the city caters to off-island visitors at the expense of its own residents. They bring money, and that helps Langley.
“That tourism money helps the city pay for the utilities and infrastructure that makes this a livable city,” Neff said.
One of the concerns for the city is how it will replace and upgrade aging infrastructure. Water lines, sewer lines and roads are all wearing and showing their age around the city, but Langley does not have enough funds for a wholesale fix of each problem in the coming year.
The 6 percent utility tax on the city’s services for water, sewer and storm water brought in just under $200,000 in 2014. The utility tax revenue is expected to be similar to that next year.
Finding grants to help offset the city’s financial burden will be critical, McCarthy said. But it may not be easy or a guarantee.
“There’s less money available from the state and federal government for infrastructure projects,” McCarthy said.
Real estate excise tax (new construction) is the smallest major revenue source for the city, despite having a strong showing in 2014 when $75,610 was collected. This year, the city is again on pace to outdo previous years with an additional $6,500 over this time last year.
