A ruling earlier this year from King County will allow the City of Renton to collect more revenue in 2014 than previously expected.

The change could mean about $16 more per year per tax bill on a $300,000 home.

According to Administrative Services Administrator Iwen Wang, who gave a presentation to the City Council Monday on the mid-biennial budget amendment, the budget was prepared assuming a levy of $3.10 per $1,000 assessed value maximum for 2013. Because the total valuation of the city dropped, the city hit the maximum tax rate and was required to collect less in revenue than in 2012.

But the city raised a question to the county regarding the annexation into the King County Library System and the county agreed that because of the annexation, the city was not subject to the earlier limit, allowing them to raise the effective rate.

“In that case, we shouldn’t be lowering our property tax collection in 2013,” Wang said Tuesday.

Because state law limits revenue increase to 1 percent of the previous year’s total, the 2014 revenue projections were down some. But with the adjusted 2013 baseline, the city’s 1 percent projections were raised.

Wang said the effect on the budget is a proposed increase in the tax rate from $3.10 to $3.15 per $1,000 assessed value.

However, the city did see an increase of 7.6 percent in total valuation for 2014, which Wang said was “consistent” with surrounding jurisdictions. While an increase in valuation often means individual taxpayers pay a lower amount of the overall levy total, Wang said residents should not necessarily expect that in next year’s bill because the overall tax rate is up due to voter-approved parks and EMS levies. Wang said only 23 percent of a resident’s tax bill goes to the city, so the overall tax rate is largely outside of the city’s control.

Much of the changes to the budget in this year’s mid-biennium adjustment come to the revenue side, with larger-than-expected amounts coming in to the city in key areas, especially construction sales tax.

However, because that came largely from a single large project, which the city in September said was a Boeing project, the city is treating the increase in 2013 as an anomaly that Wang called “not sustainable” and “out- of-scale from all historical averages.”

But the amount drops again in next year’s projections, though Wang said they were still anticipating “pretty healthy growth.”

Wang called this year’s adjustment “one of the largest revenue adjustments I have seen in my life.”

Not all of the adjustments were up, however, as utility taxes dropped, primarily due to a lack of growth in the cell-phone market and decrease in landline telephone taxes.

There are also adjustments proposed on a few of the fees throughout the city as well. School-impact fees for new construction will change, as the school districts that operate in the city have changed their fees.

Homes built in the Issaquah School District will see single-family impact fees go from $3,738 per home to $5,730. In the Renton district, multi-family fees increase from $1,308 to $1,339 per unit, but the single-family cost drops from $6,395 to $5,455.

The cost of a temporary, 90-day business license will also increase from $25 to $50, the fine for non-renewal of a business license will go from $20 to $50 and the penalty for failure to obtain a license jumps from $50 to $250. Wang said the city increased license rates earlier this year, the first time since the late 1980s, but missed these three items.

A Carco Theatre fee has also been removed from tax bills as the city now leases the theater to another entity.

But while the projections for 2014 have come in rosier than initially expected, Wang warned that at the present time, projections show the city to have a deficit for 2015 and 2016 that will have to be corrected.

No one spoke during a public hearing on the mid-biennium amendment, which will now go to the council for approval.