AGENDA CAPTION:
Title
Consider approval of Resolution 2022-187R, setting a maximum proposed Tax Rate of $60.30 cents per $100 taxable value; and declaring an effective rate.
Body
Meeting date: August 16, 2022
Department: Finance Department, Jonathan Locke, Finance Director
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Background Information:
This resolution proposes a maximum tax rate of 60.30 cents per $100 valuation. 60.30 cents is the adopted tax rate for Fiscal Year 2022, and the maximum tax rate authorized by the Fiscal Year 2023 Adopted Budget Policy Statement. The current Fiscal Year 2023 budget is based on a tax rate of 59.66 cents per $100 valuation. Setting the maximum tax rate at 60.30 cents provides City Council with some flexibility to adopt a tax rate up to the current rate.
The State Tax Code defines steps that taxing entities must follow in adopting their tax rates. If the tax rate exceeds the no new revenue (NNR) or voter approval tax rate, the governing body must take a vote and schedule a public hearing on the tax rate. City Council chooses to have two public hearings to provide citizens with ample opportunity to participate in the budget and tax rate setting process. The public hearings are proposed to be scheduled for September 6 and September 20, 2022 with final adoption of the tax rate on September 20, 2020.
The no new revenue tax rate for tax year 2022 (FY23) is 55.86 cents per $100 valuation. The voter approval tax rate for tax year 2022 is 59.66 cents per $100 valuation and voter approval tax rate adjusted for unused increment rate is 74.88 cents per $100 valuation. The proposed tax rate at this time is the voter approval rate calculated before the unused increment at 59.66 cents per $100 valuation.
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