Title
Consider/Discuss/Act on Fiscal Year 2015-16 Proposed Tax Rate, Take Record Vote and Set Public Hearing and Adoption Dates
Summary
MEETING DATE: August 3, 2015
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
- Discuss FY2015-16 proposed tax rate.
- Take record vote on proposed tax rate.
- Schedule Public Hearings & Adoption Date:
o First Public Hearing: August 18, 2015, 6:00 p.m. at the Council Chambers
o Second Public Hearing: September 1, 2015, 6:00 p.m. at the Council Chambers
o Announce Tax Rate Adoption Date: September 15, 2015, 6:00 p.m. at the Council Chambers
ITEM SUMMARY:
- The proposed tax rate is $0.58300 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 $0.409973 per $100 valuation.
- The rate for Interest and Sinking Funds (I&S) is $0.173027 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 $0.537088.
- The effective tax rate is the relationship between taxes for the preceding year and for the current year.
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- 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 $0.537088 per $100 valuation and the rollback tax rate is $0.586322 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 a Work Session held on July 20, 2015.
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- FINANCIAL SUMMARY:
- Estimated tax revenues of $62,334,104 (100% collection rate) for FY 2015-16 are based on this tax rate.