File #: 15-884    Name: FY16 Tax Rate Adoption & Record Vote
Type: Ordinance Status: Approved
In control: City Council Regular Meeting
On agenda: 9/15/2015 Final action: 9/15/2015
Title: Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2015-16
Attachments: 1. Ordinance, 2. Presentation

Title

Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2015-16

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

 

MEETING DATE:                     September 15, 2015

 

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:
  •  
  • “I move that property tax rate be increased by the adoption of a tax rate of $0.583000, which is effectively an 8.55 percent increase in the tax rate.”
  •  
  • Conduct a record vote to adopt the tax rate
  •  
  • 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.
  • 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 7.13 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $-5.47.

 

  • 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 3, 2015, the City Council took a roll call vote on the tax rate.
  • The two public hearings are on August 18, 2015 and September 1, 2015.
  • The tax rate adoption date is September 15, 2015, which must be a record vote.
  •  
  • FINANCIAL SUMMARY:                      
  • Estimated tax revenues of $62,316,609 (100% collection rate) for FY 2015-16 are based on this tax rate.