Tumwater council moves 2026 property‑tax ordinance to Nov. 18 consent agenda after levy presentation

Tumwater City Council · November 4, 2025

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Summary

Finance Director Troy Niemeyer told council the city may take the full 1% levy increase for 2026 because the state implicit price deflator (IPD) was 2.44% for 2025; estimated new construction value will add about $151,000 of levy revenue. Council unanimously voted to place ordinance 02025‑016 on the Nov. 18 consent agenda for adoption.

Finance Director Troy Niemeyer briefed the Tumwater City Council on Nov. 3 about the 2026 property‑tax levy and the state limits that apply.

Niemeyer explained that state law limits regular property‑tax increases to the lower of 1% or the implicit price deflator (IPD) calculated annually by the Department of Revenue; the IPD for 2025 is 2.44%, so the city plan is to take a 1% increase for 2026. He reminded council that new construction raises additional levy revenue for the city and that new‑construction growth does not change rates for existing homeowners. Using the county’s preliminary values, staff estimated roughly $86.5 million of new construction for 2026 that would produce about $151,000 in additional levy revenue at current rates.

After the presentation the council opened the public‑hearing public comment portion; no members of the public spoke on the levy. Council member Dahlhoff moved to place ordinance number 02025‑016 (the 2026 levy ordinance) on the Nov. 18 consent agenda for adoption. The motion carried unanimously.

Staff said the city will include the levy as part of the 2026 budget process and that the new‑construction estimate is preliminary and may shift slightly as the county finalizes assessed values.

Ordinance 02025‑016 was moved forward; the council will consider formal adoption on Nov. 18.