Title
Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2019-20
Summary
COUNCIL GOAL: Financially Sound Government
(4A: Provide Funding and Organizational Framework to Ensure Continual Economic Improvements)
MEETING DATE: September 17, 2019
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
* Provide a motion to adopt the tax rate ordinance with the following:
"I move that the property tax rate be increased by the adoption of a tax rate of 0.515600, which is effectively a 1.36 percent increase in the tax rate."
* Conduct a record vote to adopt the tax rate
ITEM SUMMARY:
* The proposed tax rate is $0.515600 based on 100% market ratio on each $100 of all taxable property within the City. The proposed tax rate is 0.009570 cents lower than last year.
* 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 1.25 percent and will raise taxes for maintenance and operations on a $100,000 home by approximately $-7.00.
* The rate for Maintenance and Operations (M&O) is $0.355393 per $100 valuation.
* The rate for Interest and Sinking Funds (I&S) is $0.160207 per $100 valuation.
* The tax rate ratio is 69% for M&O and 31% for I&S.
* The proposed tax rate exceeds the effective tax rate of $0.508664.
* The proposed tax rate will raise more taxes for M&O than last year's tax rate.
* The amount of taxes imposed this year on the average home value of $349,567 would be $1,802.
* 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 5, 2019, the City Council took a roll call vote...
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