File #: 13-769    Name: FY14 Proposed Property Tax Rate
Type: Agenda Item Status: Approved
In control: City Council Regular Meeting
On agenda: 8/5/2013 Final action: 8/5/2013
Title: Consider/Discuss/Act on Fiscal Year 2013-14 Proposed Tax Rate and Set Public Hearing and Adoption Dates
Attachments: 1. Agenda Item Summary
Title
Consider/Discuss/Act on Fiscal Year 2013-14 Proposed Tax Rate and Set Public Hearing and Adoption Dates

Summary

MEETING DATE: August 5, 2013

DEPARTMENT: Financial Services

CONTACT: Rodney Rhoades, Chief Financial Officer


RECOMMENDED CITY COUNCIL ACTION:
* Discuss FY2013-14 proposed tax rate.
* Take record vote on proposed tax rate.
* Schedule Public Hearings & Adoption Date:
o First Public Hearing: August 20, 2013, 6:00 p.m. at the Council Chambers
o Second Public Hearing: September 3, 2013, 6:00 p.m. at the Council Chambers
o Announce Tax Rate Adoption Date: September 17, 2013, 6:00 p.m. at the Council Chambers

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.

BACKGROUND INFORMATION:
* State law requires an entity that will propose a tax rate that exceeds the lower of the rollback or effective tax rate, the entity must vote to place a proposal to adopt the rate on the agenda of a future meeting as an action item. This must be a record vote.
* The effective tax rate is $0.559903 per $100 valuation and the rollback tax rate is $0.589405 per $100 valuation.
* Once the record vote has passed, State law requires an entity must schedule and hold two public hearings before adopting a tax rate.
* City Council has discussed the tax rate during Budget Work Sessions held on June 14, 2013 and August 2, 2013.

FINANCIAL SUMMARY:
* Estimated tax revenues of $49,820,308 (99.5% collection rate) for FY 2013-14 are based on this tax rate.