File #: 17-930    Name: FY18 Tax Rate Adoption
Type: Ordinance Status: Approved
In control: City Council Regular Meeting
On agenda: 9/19/2017 Final action: 9/19/2017
Title: Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2017-18
Attachments: 1. Motion, 2. Ordinance

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:
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  • “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.
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  • 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.
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  • THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.
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  • 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 public hearings were held on August 15, 2017 and September 5, 2017.
  • The tax rate adoption date is September 19, 2017, 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 $72,467,604 (100% collection rate) for FY 2017-18 are based on this tax rate.