City Council Regular Meeting


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  8.       
Meeting Date: 03/11/2020  
Submitted By: Luis Pedroza, Management Services Director
Focus Area:

SUBJECT:
DISCUSSION/DECISION on approval of Ordinance No. 20-1116, an Ordinance of the Mayor and Council of the City of Douglas, Cochise County, Arizona, LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY within the City of Douglas, subject to taxation, a certain rate upon each one hundred dollars ($100.00) of valuation sufficient to raise the amount estimated to be required in the annual budget, and providing funds for general municipal expenses: all for the fiscal year ending the 30th day of June 2021, establishing severability of components of Ordinance; and establishing an effective date thereof.
EXECUTIVE SUMMARY:
Every fiscal year the City of Douglas is required to adopt its annual property tax levy and submit certification of the levy to the Cochise County Board of Supervisors no later than the third Monday in August.  This year the certification must be submitted on or before August 17, 2020.
 
BACKGROUND:
The City was notified on 2/10/20 of the 2020 net assessed primary valuation for the City.  As was done last year, we will bring for your consideration the adoption in three separate readings in order to allow the levy to be adopted in conjunction with the budget.
 
The following information pertains to the 2020 tax levy information:  
  • The primary assessed value for the City this year is $56,325,340
  • Primary assessed valuation went up $896,468 or 1.6% (excluding new construction)
  • $918,611 was added to the tax rolls from new construction
  • The recommended property tax rate for this year is to DECREASE from 1.1782 to 1.1591 that will levy $652,867
  • The levy is an increase from $642,240 to $652,867 for a total increase of $10,627, due to new construction added in the year.
DISCUSSION:
Staff recommends decreasing the property tax rate to 1.1591 which would levy approximately the same as last year due to an increase in overall valuation and would increase our levy by $10,627 due to new construction. The City’s portion of the property tax levy on $100,000 assessed value would be $115.91 per year.  On the average home valuation of $70,000 it would be $81.14 per year.
 
The primary property tax levy is used to pay for the general operations expenses of City government.  With the sales tax increase in place from FY 20-21 that brings in revenue from visitors and temporary residents equal to more than what our permanent residents contribute, staff continues to recommend decreasing the levy to keep the property tax on our residents generally at the same level as the prior year.

"...that the Mayor and Council approve the placement of Ordinance No. 20-1116 on its first reading by number and title only."

"...that the Mayor and Council approve the first reading of Ordinance No. 20-1116 and to place it on second reading by number and title only."


 

Fiscal Impact
Fiscal Year: 2020/2021
Amount Requested: N/A
Budgeted Y/N: Yes
Account (s): 001-30000-311.0000
FISCAL IMPACT:
The tax rate of 1.1591 per $100 of assessed valuation will raise $652,867 in revenue for General Fund operations.
 
Attachments
Ord. 20-1116 Tax Levy
City of Douglas Net Assessed Values and Levy Limit Calcs


    

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