File #: 13-953    Name: FY2013-14 Tax Rate Adoption and Record Vote
Type: Ordinance Status: Approved
In control: City Council Regular Meeting
On agenda: 9/17/2013 Final action: 9/17/2013
Title: Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2013-14
Attachments: 1. Ordinance
Title
Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2013-14
 
Summary
 
MEETING DATE:      September 17, 2013
 
DEPARTMENT:       Financial Services
 
CONTACT:              Rodney Rhoades, Chief Financial Officer
                  
 
RECOMMENDED CITY COUNCIL ACTION:
    • Provide a motion to adopt the tax rate ordinance with the following caption:
    1. “I move that property tax rate be increased by the adoption of a tax rate of $0.585500, which is effectively a 4.5 percent increase in the tax rate.”
    2. Conduct a record vote to adopt the tax rate
 
ITEM SUMMARY:
  • The proposed tax rate is $0.58550 based on 100% market ratio on each $100 of all taxable property within the City.  The proposed tax rate is the same as the current year.
  • The rate for Maintenance and Operations (M&O) is $0.421789 per $100 valuation.  
  • The rate for Interest and Sinking Funds (I&S) is $0.163711 per $100 valuation.
  • The tax rate ratio is 72% for M&O and 28% for I&S.
  • The proposed tax rate exceeds the effective tax rate of $0.559903.
  • The effective tax rate is the relationship between taxes for the preceding year and for the current year. Generally, when the total tax revenue is more than 3% of the preceding year, it exceeds the effective tax rate.
  • The vote on the ordinance setting the tax rate must be a record vote.
  • This year's tax levy to fund maintenance and operations expenditures exceeds last year's maintenance and operations tax levy.  
 
THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.
 
THE TAX RATE WILL EFFECTIVELY BE RAISED BY 7.01 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $9.59.
  • State law requires a specific caption to adopt the tax rate. Since the City will receive a larger amount of tax revenue from the proposed tax rate, the City has to announce that there is a tax increase.
 
BACKGROUND INFORMATION:
    • State law requires an entity to hold two public hearings before adopting a tax rate.
    • On August 5, 2013, the City Council took a roll call vote on the tax rate.
    • The two public hearings are on August 20, 2013 and September 3, 2013
    • The tax rate adoption date is September 17, 2013, which must be a record vote.
    • The tax rate for FY 2013-14 will remain unchanged at $0.5855.
 
FINANCIAL SUMMARY:       
  • Estimated Maintenance & Operations (M&O) tax revenues of $49,820,308 (99.5% collection rate) for FY 2013-14 are based on this tax rate.