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:
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- “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.”
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- Conduct a record vote to adopt the tax rate
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- 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.
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- 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 on the tax rate and announced the public hearing dates and the adoption date.
- The two public hearings were held on August 20, 2019 and September 3, 2019.
- The tax rate adoption date is September 17, 2019, which must be a record vote, and at least 60 percent of the members of the governing body must vote in favor of the Ordinance.
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- FINANCIAL SUMMARY:
- Estimated maintenance and operations tax revenues of $83,207,732 (100% collection rate) for FY 2019-20 are based on this tax rate.