title
Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2017-18
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: September 19, 2017
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:
"I move that the property tax rate be increased by the adoption of a tax rate of 0.540199, which is effectively a 2.56 percent increase in the tax rate."
* Conduct a record vote to adopt the tax rate.
ITEM SUMMARY:
* The proposed tax rate is $0.540199 based on 100% market ratio on each $100 of all taxable property within the City. The proposed tax rate is 0.032801 cents lower than last year.
* The rate for Maintenance and Operations (M&O) is $0.375611 per $100 valuation.
* The rate for Interest and Sinking Funds (I&S) is $0.164588 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 $0.526703.
* 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 $324,636 would be $1,754.
* 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 1.92 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $-26.16.
* 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 July 31, 2017, the City Council took a roll call vote on the tax rate and announced the public hearing dates and the adoption date.
* The two ...
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