CC - Agendas - City Council - REGULAR - 7/23/2013

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Prescott City council Regular Voting Meeting — June 25, 2013 Page 12 • Primary Property Tax Capacity and Use o The proposed $442,609.00 increase in primary property tax is comprised of $160.002 from a reduction in the FY 13 levy and $262,587 from new construction and the allowed 2 percent annual growth on the levy. o If Council goes forward with property tax that is proposed in the FY 2014 Budget, it will represent about $1.5 million, or 5 percent of the General Fund. • Property Tax Rates City of Prescott compared to CYFD. • Truth in Taxation Hearing Notice —the City of Prescott is proposing an increase in primary property taxes. • Budget and Property Tax Procedural Steps. Jean Wilcox, Prescott resident, said the policy of putting employees as last priority is the wrong way to go. The City of Prescott is a service organization and employees are a critical part of the functions of city government. She asked that it be reconsidered and that they should build in raises from the outset. She is opposed to the funding of roads vs. Open Space. Another problem is the opportunity to purchase the Granite Dells Resort. She noted that the public did not know if there is still the opportunity because the discussions are in executive sessions. Rick Hartman, Prescott resident, asked that the City not ask the property owners for a 37 percent increase in primary property tax. He suggested raising sales tax instead. Bill Barry, Prescott resident, said the majority of people living here are on fixed incomes. The 37 percent increase on primary property tax will damage the regaining of the .25 percent tax. He noted that it is important to continue the .25 percent tax and said it is also important that Council take into consideration the feelings of the retirement community in this area. He said that the primary property tax is just one of the costs that are going up. Mayor Kuykendall said 37 percent seems like a lot, but the base is so low. He said it was an $8.00 per year increase. Mr. Barry said that he was looking at the base of what property owners are paying. He asked what happens when property values increase. Mayor Kuykendall said Prescott has a low property tax because we used to control retail sales in the area. He said there is now competition and a legal limit of how much property tax can be increased. If we want the quality of life we enjoy, it has to be paid for.