File #: 16-939    Name: FY17 Tax Rate Adoption
Type: Ordinance Status: Approved
In control: City Council Regular Meeting
On agenda: 9/20/2016 Final action: 9/20/2016
Title: Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2016-17
Attachments: 1. Ordinance, 2. Motion

Title

Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2016-17

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

 

MEETING DATE:                     September 20, 2016

 

DEPARTMENT:                      Financial Services

 

CONTACT:                                            Mark Holloway, Interim Chief Financial Officer

                                                               

 

RECOMMENDED CITY COUNCIL ACTION:

  • Provide a motion to adopt the tax rate ordinance with the following:
  •  
  • “I move that property tax rate be increased by the adoption of a tax rate of $0.57300, which is effectively a 7.19 percent increase in the tax rate.”
  •  
  • Conduct a record vote to adopt the tax rate.
  •  
  • ITEM SUMMARY:
  • The proposed tax rate is $0.57300 based on 100% market ratio on each $100 of all taxable property within the City. The proposed tax rate is one cent lower than last year.
  • The rate for Maintenance and Operations (M&O) is $0.401769 per $100 valuation. 
  • The rate for Interest and Sinking Funds (I&S) is $0.171231 per $100 valuation.
  • The tax rate ratio is 70% for M&O and 30% for I&S. 
  • The proposed tax rate exceeds the effective tax rate of $0.534543.
  • This year’s tax levy to fund maintenance and operations expenditures exceeds last year’s maintenance and operations tax levy.
  • The amount of taxes imposed this year on the average home value of $299,986 would be $1,719.
  •  
  • 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 7.19 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $-8.20.

 

  • 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.  The tax rate adoption must be a record vote.
  • On August 1, 2016, the City Council took a roll call vote on the tax rate.
  • The two public hearings were held on August 22, 2016 and September 6, 2016.
  • The tax rate adoption date is September 20, 2016, which must be a record vote.
  •  
  • FINANCIAL SUMMARY:                      
  • Estimated maintenance and operations tax revenues of $68,737,914 (100% collection rate) for FY 2016-17 are based on this tax rate.