Item 26: 2021 Tax Rate

[COSM_Admin]

Receive a Staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2021-71, setting the Tax Rate for the 2021 Tax Year at 60.30 cents on each $100 of taxable value of real property that is not exempt from taxation; levying taxes for the use and support of the Municipal Government of the City for the fiscal year beginning October 1, 2021, and ending September 30, 2022; providing a sinking fund for the retirement of the bonded debt of the city; including procedural provisions; and declaring an effective date; and consider approval of Ordinance 2021-71, on the first of two readings.

 

[JHughson]

Six of us stated that we wanted the rate to be .5930 and four were OK with publishing .6030 just in case we decided to make a change at the last minute.
Why is this item in our packet stating .6030?
What is the equivalent information at .5930? (M&O etc)

I guess I'll do the amendment to change from .6030 to .5930. Please provide any other amendment text that I will need.

 

[COSM_Admin]

Response to Mayor Hughson, provided by Director of Finance, Marie Kalka:
Six of us stated that we wanted the rate to be .5930 and four were OK with publishing .6030 just in case we decided to make a change at the last minute.
Why is this item in our packet stating .6030? The proposed rate at 60.30 cents helps to address the critical public safety needs that have been identified in our growing community. We wanted to allow the flexibility and show what the additional penny would get us.
What is the equivalent information at .5930? (M&O etc) Slides 5, 7, 8 and 9 all reflect the 59.30 cents. The only slide that reflects the 60.30 cents is slide 10 and slide 11 discusses the one cent. As far as the ordinance, all the 60.30 cents would need to replaced with 59.30 cents and the 40.76 cents would need to be changed to 39.76 cents. The proposed budget was prepared using the 59.30 cents.

 

[COSM_Admin]

Additional clarification provided by Director of Finance, Marie Kalka:
What I was seeking was WITH the new property INCLUDED. With new property included as well as TIRZ’s
@ .6030 the increase is $1,121,823 (with an increase to debt service of $1,564,739 and a decrease of $442,916 to M&O)
@ .5930 the increase is $466,730 (with an increase to debt service of $1,564,739 and a decrease to M&O of $1,098,010)

As for total taxable assessed values they went from $6,472,232,427 (TY20 as of TY 21 certification) to $6,550,938,926 so an increase of $78,706,499 (including new property added of $211,472,588).

Ms. Kalka also provided the effects of the various tax rate options on different value of homes:

Home Value	2020 Tax Rate .5930	Proposed Tax Rate .5930	Annual Increase (Decrease)	Monthly Increase (Decrease)
$100K	593	593	-	-
$200K	1,186	1,186	-	-
$300K	1,779	1,779	-	-
Home Value	2020 Tax Rate .5930	Proposed Tax Rate .6030	Annual Increase (Decrease)	Monthly Increase (Decrease)
$100K	593​	603​	10.00	0.83
$200K	1186​	1206​	20.00	1.67
$300K	1779​	1809​	30.00	2.50