Discussion and possible action to adopt RES. 2021-50 and ORD. 2021-14 adopting the City of Peoria, Arizona Primary and Secondary Property Tax Levies for the Fiscal Year 2022.

During the FY 2022 budget deliberations, it was recommended the City’s overall property tax rate be established at $1.44 per $100 of assessed valuation. The primary property tax rate is recommended to remain at $.2900 per $100 of assessed valuation, with the secondary tax rate at $1.15 per $100 of assessed valuation.

Given the proposed rate, the primary property tax levy is expected to generate $5,165,020 in the next fiscal year. New development within the City limits accounts for $115,007 of this total.

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 $20,481,976 and represents a net increase of 7.3 percent from the FY 2021 levy.

The overall FY 2022 property tax levy is $25,646,996, which represents an increase of 7.3 percent from the FY 2021 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 April 29, 2021 and the Daily Independent on May 8, 2021 of our intention to set the City’s primary property tax levy. A public hearing was held on May 18, 2021 for purposes of Truth in Taxation requirements of the Arizona Revised Statutes; thereafter, a public hearing was held on May 18, 2021 for citizen input into the fiscal year 2022 budget, which was adopted based upon these proposed levies. Additionally, a public hearing was held on May 18, 2021 for citizen input into the proposed tax levies.

At the Council Budget Workshop held March 31, Council reviewed and discussed a budget that did not include any changes in the overall property tax rate for FY 2022.

A public hearing was held on May 18,  2021 for citizen input into the proposed tax levies.

This is the final step of the formal budget and tax levy adoption for fiscal year 2022.

Staff recommends that the Mayor and Council approve the resolution and ordinance adopting the City of Peoria, Arizona Primary and Secondary Property Tax Levies for FY 2022.

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 $5,165,020 and the secondary property tax levy is expected to generate $20,481,976 in the next fiscal year.