12-08-2003 Council Packet - Laserfiche WebLink

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Tax Lew. Tax Rate, and Impact on Property Owners The total tax levy required to fund the proposed 2004 budget is $3,197,930. This is an increase of $99,530, or 3.27%, over the 2003 levy. The total levy includes a Fire Facilities and Equipment Bonds debt service levy of $73,250, which will be used to fund the debt service on the bonds used to finance the Navarre Fire Station, and the purchase of fire apparatus and equipment needed for the Fire Station. The total levy also includes a special levy of $83,000 to fund the repayment of equipment certificates for the purchase of three replacement police squad cars, and a special lev>’ of $125,000 to fund the repayment of equipment certificates for the purchase of replacement equipment in the Public Works Department. The estimated tax capacity for taxes payable in the year 2004 is $18,142,562. This is an increase of $2,556,915, or 16.41% over the 2003 tax capacity. Based on the City’s increased tax capacity and the proposed lax levy, the tax capacity rate will be 17.599%. This is a reduction of 11.4% from the 2003 tax capacity rate. The reduction in the tax capacity rate will result in a reduction in the City’s share of the property tax bill. Assuming a 10% increase in a home’s property value, the City’s share of the property tax bill for a home valued at $350,000, would be reduced by $17.85, or 2.6%. For a home valued at $500,000 the reduction would be $25.51, or 2.6%. Truth-in-Taxation Hearing The Truth-in-Taxation Hearing was held at 5:30 p.m. on Monday, December 1. Three citizens, representing one property, attended the hearing, llie property owner indicated he did not have any concerns about the budget or tax levy, but had some questions regarding the increased valuation of his property. After clarifying the issues related to the valuation, the property owner was advised that staff would assist him in working with the City Assessor to address his concerns. Adoption of 2004 Budget and Tax Lew It is recommended that the Council adopt the 2004 budget and tax levy at this time. The necessary- resolutions are attached for Council adoption. COUNCIL ACTION REQUESTED: 1. Motion to adopt a resolution approving the proposed tax levy to fund the 2004 budget. 2. Motion to adopt a resolution approving the 2004 General Fund budget. 3. Motion to adopt a resolution approving the 2004 Special Revenue Funds budget i