Amended City Council Regular


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  ITEM 32.       
Meeting Date: 06/11/2019  
Submitted For: Lisette Camacho
Department: Budget and Finance  

Subject
PUBLIC HEARING AND APPROVAL OF FISCAL YEAR 2019-20 PROPERTY TAX LEVY
Presented by: Vicki Rios, Director, Budget and Finance
Purpose and Recommended Action

This is a request for City Council to conduct a public hearing on the proposed Fiscal Year 2019-2020 (FY19-20) property tax levy and, by a roll call vote, approve a motion to adopt the property tax levy that will be assessed by ordinance on June 25, 2019.

Background

Arizona’s property tax system consists of two tiers – Primary and Secondary. The primary property tax levy has state mandated maximum limits; however, it can be used by a city for any purpose. The primary property tax revenue is included in the General Fund’s operating budget. The secondary property tax levy is not limited; however, it can be used only to retire the principle, interest, and related fees on voter authorized bonds used to finance the city’s Capital Improvement Plan. Arizona state law requires Council to set the property tax levy by the third Monday in August.

Analysis
City Council reviewed the FY19-20 Tentative Budget and adopted a resolution formally approving the tentative operating, capital, debt service, and contingency appropriation budget at the May 14, 2019 voting meeting. The tentative budget assumed the primary property tax rate would decrease from $0.4407 per $100 of assessed valuation for FY 2018-2019 (FY18-19) to $0.4144 per $100 of assessed valuation for FY 2019-2020 (FY19-20). In addition, the tentative budget assumed the secondary property tax rate would decrease from $1.5357 per $100 of assessed valuation for FY18-19 to $1.4441 per $100 of assessed valuation for FY19-20.
 
If Council approves this item, the total property tax rate will decrease from $1.9764 to $1.8585 per $100 of assessed valuation. The total of the levy will increase slightly but this is due only to the value of new construction added to the city during the prior year. This allows the city to reduce the tax rates slightly. Consideration of the adoption of an ordinance finalizing the FY19-20 property tax levy is scheduled for the June 25, 2019 City Council meeting. In compliance with State Budget Law, public notices regarding the public hearing and the property tax levy were published in the Glendale Star on May 16 and May 23, 2019.
Previous Related Council Action
City Council adopted a resolution formally approving the tentative operating, capital, debt service, and contingency appropriation budget at the May 14, 2019 voting meeting. At that time, Council also gave notice of the date for the June 11, 2019 Public Hearing on: The FY19-20 Final Budget, The FY19-20 Property Tax Levy, and The June 25, 2019 date the adoption of the FY19-20 Property Tax Levy.
Community Benefit/Public Involvement
The community benefit of the City's budget process, policy direction, and budget decisions is to help ensure sound financial decisions are made through a transparent and public process where budgetary decisions align with the strategic direction of the City. The budget also provides the public with information on services provided and Council priorities.

    

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