Title
Consider/Discuss/Act on Fiscal Year 2014-15 Proposed Tax Rate, Take Record Vote and Set Public Hearing and Adoption Dates
Summary
MEETING DATE: August 4, 2014
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
* Discuss FY2014-15 proposed tax rate.
* Take record vote on proposed tax rate.
* Schedule Public Hearings & Adoption Date:
o First Public Hearing: August 19, 2014, 6:00 p.m. at the Council Chambers
o Second Public Hearing: September 2, 2014, 6:00 p.m. at the Council Chambers
o Announce Tax Rate Adoption Date: September 16, 2014, 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 $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.
* The effective tax rate is the relationship between taxes for the preceding year and for the current year. Generally, when the total tax revenue is more than 3% of the preceding year, it exceeds the effective tax rate.
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 $0.538235 per $100 valuation and the rollback tax rate is $0.586301 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...
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