File #: 14-919    Name: FY15 Tax Rate Adoption & Record Vote
Type: Ordinance Status: Approved
In control: City Council Regular Meeting
On agenda: 9/16/2014 Final action: 9/16/2014
Title: Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2014-15
Attachments: 1. Ordinance, 2. Presentation
Title
Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2014-15
 
Summary
 
MEETING DATE:      September 16, 2014
 
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 8.32 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 $0.0025 less than the current year rate of $0.58550.
    • The rate for Maintenance and Operations (M&O) is $0.415437 per $100 valuation.  
    • The rate for Interest and Sinking Funds (I&S) is $0.167563 per $100 valuation.
    • The tax rate ratio is 71% for M&O and 29% for I&S.  
    • The proposed tax rate exceeds the effective tax rate of $0.538235.
    • 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 7.15 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $-6.35.
  • 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 4, 2014, the City Council took a roll call vote on the tax rate.
    • The two public hearings were held on August 19, 2014 and September 2, 2014.
    • The tax rate adoption date is September 16, 2014, which must be a record vote.
  • FINANCIAL SUMMARY:       
    • Estimated tax revenues of $55,424,359 (99.5% collection rate) for FY 2014-15 are based on this tax rate.