| | | | | | | | CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION | Agenda Item: 27R. |
| Date Prepared: 5/1/2017 | Council Meeting Date: 5/16/2017 |
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| | | | | | | | | TO: | Carl Swenson, City Manager
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| | | | | | | | THROUGH:
| Julie Arendall, Deputy City Manager |
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| | | | | | | | | FROM:
| Katie Gregory, Management & Budget Director
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| | | | | | | | SUBJECT:
| PUBLIC HEARING - Truth in Taxation, Primary Property Tax Levy Fiscal Year 2018 |
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| | | | | | | | Purpose:
This is a request for the Mayor and City Council to hold a public hearing regarding an increase to the primary property tax levy, as required by State Statutes on Truth in Taxation. It is recommended that Council approve their intent to raise the primary tax levy by a roll call vote.
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| | | | | | | | Background/Summary:
During the FY 2018 budget deliberations, the City Council recommended the City’s primary property tax rate remain at $.1900 per $100 of assessed valuation.
By maintaining the existing tax rate, the primary property tax levy is expected to generate $2,546,357 in the next fiscal year. This amount would represent an increase of $181,201 from the FY 2017 levy. Based on the statutory calculation, the increases in the primary tax levy stem from two sources. An estimated $112,539 in increased collections comes from valuation increases to existing properties and the remaining $68,662 results from assessments on new construction within the city limits.
In compliance with Section 42-17104 and 42-17107, Arizona Revised Statutes, the City of Peoria notified property taxpayers through a press release and an advertisement placed in The Peoria Times on April 28, 2017 and in the Daily News-Sun on May 6, 2017 of our intent to increase the City’s primary property tax levy. The statute also requires a public hearing and roll call vote regarding the proposed levy increase. The hearing and vote must take place on or before the adoption of the final budget.
Combined with the secondary tax rate of $1.2500 per $100 of assessed valuation, the total estimated tax rate for FY 2018 is $1.4400 per $100 of assessed valuation. |
| | | | | | | | Previous Actions:
At the Council Budget Workshops held March 29 and March 30, Council reviewed and discussed a budget that did not include any changes in the property tax rate for FY2018.
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| | | | | | | | Options:
A: By roll call vote, approve a resolution notifying its property taxpayers of its intention to increase the total primary tax levy (exclusive of new construction) from $2,365,156 to $2,477,695 for a total of $112,539.
B: By roll call vote, deny a resolution notifying its property taxpayers of its intention to increase the total primary tax levy (exclusive of new construction) from $2,365,156 to $2,477,695 for a total of $112,539 and direct staff to change the primary property tax rate.
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| | | | | | | | Fiscal Analysis:
Given the proposed rate, the primary property tax levy is expected to generate $2,546,357 and the secondary property tax levy is expected to generate $16,752,346 in the next fiscal year.
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| | | | | | | | Narrative:
The next steps are to adopt the FY 2018 Final Budget and hold a public hearing on the Property Tax Levy on May 16, 2017, then to adopt the Property Tax rate which is scheduled for the June 13 City Council meeting.
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| | | | | | | | Contact Name and Number:
Katie Gregory, (623) 773-7364
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