Title
Discuss and consider action to approve a resolution to set a proposed maximum FY23 property tax rate and schedule the date for the public hearing.
Summary
Summary of Tax Rates:
No-New-Revenue Tax Rate: $0.3966
Un-Adjusted Voter-Approval Tax Rate: $0.4571
Unused Increment: $0.0242
Voter-Approval Tax Rate: $0.4813
When a municipality's proposed tax rate exceeds its calculated voter-approval rate ($0.4813) or no-new-revenue rate ($0.3966), whichever is lower, the taxing unit's governing body must specify a proposed rate, hold a public hearing, and place a proposal to adopt the rate on the agenda of a future meeting as an action item. This vote must be recorded and the proposal must specify the desired maximum rate. As a maximum rate, Council can choose to adopt a lower rate, but the adopted rate may not exceed this proposed and published rate.
The attached resolution includes a proposed tax rate of $0.4813. Attached is a summary of the various FY23 rates (no-new-revenue, voter-approval, and proposed) compared to the FY22 adopted rate.
The proposed tax rate consists of two components: Maintenance & Operations (M&O) + Interest & Sinking (I&S) = Total tax rate.
The proposed tax rate components:
- M&O: 0.2682, a decrease from current rate by 0.0185
- I&S (Debt Service): 0.2131, an increase from current rate by 0.0135
- Total proposed tax rate: 0.04813, a decrease from current rate by 0.0050
The rate approved in the resolution will be used in all notices required to be published on the tax rate. The next step in the property tax rate adoption process is to hold a public hearing, as required if the proposed rate exceeds the lower of the no-new-revenue or voter-approval rate. The hearing is currently scheduled for September 13, 2022 at 7:00 p.m. The final action, adoption of the tax rate, is scheduled for September 13, 2022.
Prior City Council Action
A budget workshop was conducted on January 18, 2022 setting budget assumptions and priorities. Budget workshops were also conducted on May 31st - to discuss revenue assumptions, June 21 - General Fund requested expenditures, and July 14th - Water/Wastewater and Solid Waste requested expenditures.
Deadline for City Council Action
Action must occur at this meeting in order continue with the current tax rate adoption schedule.
Funding Expected: Revenue _x_ Expenditure __ N/A __
Budgeted Item: Yes __ No __ N/A _x_
Amount: _N/A_______
1295 Form Required? Yes __ No _x_
Legal Review Required: N/A __ Required _x_ Date Completed: _08/02/2022___
Supporting documents attached:
Resolution
FY23 Proposed Property Tax Rate Analysis
Recommended Action
Approve the resolution to set a proposed maximum FY23 property tax rate and schedule the date for the public hearing.