TITLE
Consider a memorandum/resolution setting the preliminary tax rate for the FY 2020 Annual Budget and setting the dates to hold public hearings.
SUMMARY
DATE: August 20, 2019
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Setting the preliminary tax rate for the FY 2020 Annual Budget and associated public hearing dates.
BACKGROUND AND FINDINGS:
Truth-in-taxation laws require that a governing body publish notices and hold public hearings if a preliminary tax rate exceeds the lower of the effective tax rate or the rollback rate. The following tax rates per $100 valuation are relevant to the proposed FY 2020 Budget:
Effective Tax Rate 0.6788
Current Tax Rate 0.7498
Notice and Hearing Tax Rate >0.6788
Proposed Budget Tax Rate 0.7498
Rollback Tax Rate, Adjusted for Sales Tax 0.7588
The City Council must set a preliminary tax rate for the proposed FY 2020 Budget. The preliminary tax rate is the maximum tax rate that may be adopted for the FY 2020 Budget. The final tax rate may be equal to or lower than the preliminary tax rate. The final tax rate may not be higher than the preliminary tax rate.
If the preliminary tax rate is equal to or less than 0.6788, no additional meetings will be required, and the tax rate will be adopted on September 17, 2019.
If the preliminary tax rate exceeds 0.6788, the City Council must take a record vote and schedule two (2) public hearings on the preliminary tax rate. The FY 2020 Proposed Budget was prepared using the current tax rate of 0.7498. Setting the preliminary tax rate at the current tax rate of 0.7498 requires two public hearings, since it is higher than 0.6788.
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 3, 2019. The second public hearing may not be held any earlier than the third day after the first hearing. The second public h...
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