09-14-2015 Council Packet - Laserfiche WebLink

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Tax Capacity Rate and the Impact of the Tax Levy on Property Owners The County Assessor provides an annual calculation of the City’s tax capacity based on the annual property revaluation. As of August 1, 2015 the City’s taxable market value is $2,530,000,000 with a tax capacity of $28,500. When compared to last year, taxable market value has increased by 4.15% and the tax capacity by 3.82%. Applying the proposed tax levy to the estimated tax capacity results in a tax rate of 17.384%; this is the same as the 2015 rate. Assuming a 3% increase in a property’s value, the tax rate will have the following results: a $250,000 home will see an increase of $14.08 a $500,000 home will see an increase of $32.60; a $1,000,000 home will see an increase of $65.19; and a $2,000,000 home will see an increase of $130.38. Because property’s will not all experience the same change in value, tables assuming an increase of 3%, a decrease of 3%; and no value change are included with this memo. Adoption of the Preliminary Budget and Tax Levy The City is required to certify its preliminary tax levy the County by September 30. After adoption of the preliminary levy, the levy cannot be increased. The levy can still be decreased prior to adoption of the final levy at the December 8th council meeting. Public comment on the budget and tax levy will be allowed at the December meeting prior to the adoption of the budget. COUNCIL ACTION REQUESTED: No Council Action is required at this time. The preliminary budget will be adopted at the September 28th council meeting.