Title
Consider and take action on the 2016 proposed ad valorem tax rate (Fiscal Year October 1, 2016 to September 30, 2017). The tax rate will be adopted as an action item at a future meeting. (Assistant City Manager)
Background
To begin the tax rate setting process, the City Council is required to propose a tax rate. This agenda item is for that purpose.
2015 tax rate $0.5735 / $100
Effective tax rate $0.550866 / $100
Rollback rate $0.576747 / $100
If the proposed ad valorem tax rate exceeds the effective tax rate, the Council must take a record vote on the proposed rate and schedule two public hearings before the adoption of the tax rate. The public hearings would be held on September 20 and September 27.
As discussed with Council during the work session on August 22, the certified taxable values are higher than were estimated during the budget process. Council has been presented with information of the following 3 options.
1. The budget was based upon the 2015 tax rate of $0.5735. Based upon the certified values, that rate would generate $1 million in additional property tax revenue.
2. The effective tax rate of $0.550866 would generate $600,000 less than budgeted revenue.
3. Another option previously discussed by City Council was an alternate rate, a rate that would generate additional revenue at a mid point between the effective tax rate and the 2015 tax rate. That rate has been calculated at $0.5592. This rate would generate an additional $0.
4. An alternate option would be rate of $0.5665 which would generate an additional $500,000.
Attachments
1. Data Sheet
FUNDING
{ X} NOT APPLICABLE
{ } Funds are available from Account #___________________________
{ } Requires Budget Amendment to transfer from Account #____________to Account # ___________________