CC - Agendas - City Council - REGULAR - 7/10/2012

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'Fa COUNCIL AGENDA MEMO - July 10, 2012 DEPARTMENT: Budget and Finance AGENDA ITEM: Adoption of Ordinance No. 4838-1301 setting the Fiscal Year 2013 City property tax levies Approved By: Date: Finance Director: Mark Woodfill City Manager: Craig McConnell ,Uca 7-3- 2- 0 BACKGROUND On June 26, 2012, Council held the public hearing on the final budget, establishment of the expenditure limitation, and the City property tax levies for Fiscal Year 2013 (FY 13). After the hearing the final budget was adopted, which included establishing the expenditure limitation for FY 13. State law requires that the property tax levies be adopted no earlier than fourteen days after the public hearing. The primary tax levy for FY 13 is $1,095,856. This is the amount of revenue anticipated to be generated by the corresponding property tax rate (unchanged from FY 12), and represents a decrease of $160,022 because of declining property valuations. Revenue from the primary property tax funds general governmental functions, but provides a minor amount of the overall cost: to place this in perspective, $1,095,856 represents only three weeks of funding for the City's public safety operations (Police and Fire). The secondary property tax is for the retirement of debt and will be set at $1,584,975. This is the final year for a majority of the debt service used to purchase and develop Watson and Willow Lakes. Next year's secondary levy will drop to about $190,000. The City's combined tax rate for FY 13 is 0.4832 which is 0.0399 higher than last fiscal year. For a home valued at $200,000 in both 2011 and 2012, the combined property tax will increase by $7.98. Property tax rates over the last 10 years are shown below. City Property Tax Rate per$100 Assessed Valuation 0.7000 0.6000 - - 0.5000 0. - : 0.20004000 I. - 1.1 FY04 I FY05 I FY06 I FY07 I FY08 I FY09 I FY10 I FY11 FY12 FY13 II•Secondary Tax Rate 10.4072 10.3763 10.3413 10.3093 10.2981 0.2394 10.2002 10.2093 0.2455 0.2854 IOPrimary Tax Rate 0.2415 10.2383 10.2245 0.2182 10.1991 10.1839 10.1695 10.1737 0.1978 0.1978 I Total 10.6487 10.6146 10.5658 10.5275 10.4972 10.4233 10.3697 10.3830 0.4433 0.4832 Recommended Action: MOVE to adopt Ordinance No. 4838-1301.