Title
Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2010-11
Summary
MEETING DATE: September 21, 2010
DEPARTMENT: Finance
CONTACT: Jennifer Fung, Executive Director of Finance
Jason Weeks, Assistant Finance 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 about $0.4065 per $100 valuation.
• The rate for Interest and Sinking Funds (I&S) is about $0.1790 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 does not exceed last year’s maintenance and operations tax levy.
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.
• On June 28, 2010 and August 6, 2010 the City Council discussed the tax rate.
• The tax rate adoption is today, September 21, 2010.
• The tax rate for FY 2010-11 will remain unchanged at $0.5855.
SPECIAL CONSIDERATIONS: None
FINANCIAL SUMMARY:
• Proposed property tax revenues for FY 2010-11 are based on this tax rate.
BOARD OR COMMISSION RECOMMENDATION: None.