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Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2012-13
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MEETING DATE: September 18, 2012
DEPARTMENT: Strategic Planning & Budget
CONTACT: Jason Gray, City Manager
Jason Cooley, Strategic Planning & Budget Director
RECOMMENDED CITY COUNCIL ACTION:
· Provide a motion to adopt the tax rate
· Conduct a record vote to adopt the tax rate
ITEM SUMMARY:
· The proposed tax rate is $0.5855 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 $0.4122 per $100 valuation.
· The rate for Interest and Sinking Funds (I&S) is $0.1733 per $100 valuation.
· This year's proposed tax rate does not exceed the effective tax rate. The vote on the ordinance setting the tax rate must be a record vote.
· 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.
· 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 2.27 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $7.14.
BACKGROUND INFORMATION:
· Since the proposed tax rate did not exceed the lower of the effective tax rate or the rollback tax rate, no public hearings were required.
· The tax rate adoption is today, September 18, 2012.
· The tax rate for FY 2012-13 will remain unchanged at $0.5855.
SPECIAL CONSIDERATIONS: None
FINANCIAL SUMMARY:
· Proposed property tax revenues for FY 2012-13 are based on this tax rate.
BOARD OR COMMISSION RECOMMENDATION: None