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 Se...
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