Title
Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2016-17
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: September 20, 2016
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Interim 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 $0.57300, which is effectively a 7.19 percent increase in the tax rate."
* Conduct a record vote to adopt the tax rate.
ITEM SUMMARY:
* The proposed tax rate is $0.57300 based on 100% market ratio on each $100 of all taxable property within the City. The proposed tax rate is one cent lower than last year.
* The rate for Maintenance and Operations (M&O) is $0.401769 per $100 valuation.
* The rate for Interest and Sinking Funds (I&S) is $0.171231 per $100 valuation.
* The tax rate ratio is 70% for M&O and 30% for I&S.
* The proposed tax rate exceeds the effective tax rate of $0.534543.
* This year's tax levy to fund maintenance and operations expenditures exceeds last year's maintenance and operations tax levy.
* The amount of taxes imposed this year on the average home value of $299,986 would be $1,719.
* 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 7.19 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $-8.20.
* 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 1, 2016, the City Council took a roll call vote on the tax rate.
* The two public hearings ...
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