Newcastle council removes proposed 1% property tax increase, adopts levy ordinance

The Newcastle City Council on Nov. 4 adopted an ordinance setting the city's 2026 ad valorem property tax levy after removing a proposed 1% increase.

The council opened a public hearing on revenue sources and heard a finance presentation from Finance Director Lindsay Chambers; no members of the public testified. Chambers presented levy calculations and said the council could levy up to the maximum amount calculated by King County, or choose a lower amount. The package before the council proposed a levy that included a 1% allowable increase and available banked capacity from 2025.

Councilmember Miranda Sherlock moved to adopt the ordinance to set the 2026 levy. Councilmember Aaron Quigg offered an amendment to remove the 1% increase. After brief discussion clarifying that removal of the 1% would leave ad valorem growth at 0, the council voted on the amendment. The amendment passed 4'to'3. The original ordinance motion, as amended, then passed 4'to'3.

The ordinance number in the packet was presented as 2025-677; the council adopted the ordinance as amended, reducing the immediate property-tax increase for 2026. Council members who supported the amendment said the city should hold the banked capacity and provide near-term relief to taxpayers. Members who opposed the amendment said the city should budget conservatively and use available levy capacity to fund services.

Finance Director Chambers told the council the maximum levy calculations included banked capacity and King County's updated new-construction numbers; the council retains authority to set the levy at any amount up to that maximum.

The council closed the hearing and recorded the vote on the ordinance at the Nov. 4 meeting.