Title
Consider a memorandum/resolution setting the preliminary tax rate for the FY 2018 Annual Budget and Plan of Municipal Services and setting the dates to hold public hearings.
SUMMARY
DATE: August 15, 2017
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Setting the preliminary tax rate for the FY 2018 Annual Budget and Plan of Municipal Services and setting the dates to hold public hearings on the proposed tax increase, if a proposed tax increase is approved
BACKGROUND AND FINDINGS:
Truth-in-taxation laws require that a governing body publish notices and hold public hearings if a proposed tax rate exceeds the lower of either the effective tax rate or the rollback rate. The following tax rates per $100 valuation are relevant to the proposed FY 2018 Budget:
Effective Tax Rate 0.7027
Current Tax Rate 0.7498
Notice and Hearing Tax Rate >0.7027
Preliminary Budget Tax Rate 0.7498
Rollback Tax Rate, Adjusted for Sales Tax 0.7223
The City Council must set a preliminary tax rate for the proposed FY 2018 Budget. The preliminary tax rate is the maximum tax rate that may be adopted for the FY 2018 Budget. The preliminary tax rate can be lowered when the final tax rate is set.
If the preliminary tax rate is equal to or less than 0.7027, no additional meetings will be required, and the tax rate will be adopted on September 19, 2017.
If the preliminary tax rate exceeds 0.7027, the City Council must take a record vote and schedule two (2) public hearings on the preliminary tax rate. The first publication must run at least seven (7) days prior to the public hearing on the tax rate. The first public hearing will be held on September 5, 2017. The second public hearing may not be held any earlier than the third day afte...
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