Discussion and possible action to adopt RES. 2023-80 and ORD. 2023-10 adopting the City of Peoria, Arizona Primary and Secondary Property Tax Levies for Fiscal Year 2024.

During the FY2024 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 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 $5,841,675 in the next fiscal year.  New development within the City limits accounts for $98,026 of this total.

The City’s secondary property tax rate is used to retire outstanding debt on City-issued general obligation bonds.  The aforementioned unchanged rate will generate a secondary tax levy of $23,165,265.

The overall FY2024 property tax levy is $29,006,940.

In compliance with Section 42-17107, Arizona Revised Statutes, the City of Peoria notified property taxpayers of its intent to increase the primary property tax levy through advertisements placed in the Peoria Times on April 27, 2023 and in the Daily Independent on May 9, 2023. In addition, the City on April 24, 2023, issued a news release containing the Truth In Taxation notice and posted the news release on the City’s website.

At its regular meeting on May 2, 2023, the City Council approved the Tentative Budget for FY2024, setting the maximum appropriation at $950,000,000. The adopted Tentative Budget maintained the City’s primary property tax rate of $.2900 per $100 of assessed valuation and the secondary property tax rate of $1.15 per $100 of assessed valuation.

A public hearing was held on May 16, 2023, for citizen input on the proposed property tax levies and the final budget for FY2024. By roll call vote the City Council approved the Truth in Taxation increase of $255,291 for fiscal year 2024. During a Special Meeting on the same night, the City Council adopted the final budget for fiscal year 2024.

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 2024.

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 $5,841,675 and the secondary property tax levy is expected to generate $23,165,265 in the next fiscal year.