During the FY 2019 budget deliberations it was recommended the City’s overall property tax rate remain at $1.44 per $100 of assessed valuation. The primary property tax rate is recommended to be set to $.2900 per $100 of assessed valuation, with the secondary tax rate at $1.15 per $100 of assessed valuation. Within the overall property tax rate, the FY2019 budget includes moving $0.1000 from the secondary property tax rate to the primary property tax rate. Previously the primary property tax rate had been $0.19 per $100 of assessed valuation and the secondary tax rate was $1.25 per $100 of assessed valuation.

Given the proposed rate, the primary property tax levy is expected to generate $4,175,767 in the next fiscal year. New development within the City limits will generate an additional $70,342 and increased valuations on existing properties will generate an additional $1,517,507. 

The City’s secondary property tax rate is used to retire outstanding debt on City-issued general obligation bonds. This will generate a secondary tax levy of $16,559,075.

The overall FY 2019 property tax levy is $20,734,842, which represents an increase of 7.4 percent from the FY 2018 levy.

In compliance with Section 42-17104 and 42-17107, Arizona Revised Statutes, the City of Peoria notified property taxpayers through advertisements placed in the Peoria Times on May 4, 2018 and May 11, 2018 of our intention to set the City’s primary property tax levy. A public hearing was held on May 15, 2018 for purposes of Truth in Taxation requirements of the Arizona Revised Statutes; thereafter, a public hearing was held on May 15, 2018 for citizen input into the fiscal year 2019 budget, which was adopted based upon these proposed levies. Additionally, a public hearing was held on May 15, 2018 for citizen input into the proposed tax levies.

At the Council Budget Workshop held April 9 and April 10, Council reviewed and discussed a budget that did not include any changes in the overall property tax rate for FY 2019.

A public hearing was held on May 15, 2018, for citizen input into the proposed tax levies.

A: That the Mayor and Council approve the resolution and ordinance adopting the City of Peoria, Arizona Primary and Secondary Property Tax Levies for FY 2019.

B: That the Mayor and Council not approve the property tax levies and provide staff direction to change the property tax levies.

The City’s overall property tax rate will remain the same as the previous year at $1.44 per $100 of assessed valuation. Given the proposed rate, the primary property tax levy is expected to generate $4,175,767 and the secondary property tax levy is expected to generate $16,559,075 in the next fiscal year.