Regular 10.
Regular City Council Meeting
- Meeting Date:
- 09/14/2015
- TITLE
- Public Hearing and Resolution Setting Annual Mills
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
At the August 24, 2015 meeting, Council directed staff to provide two options for tax year (TY) 2015 tax levies. The TY 2015 levies support the City's Fiscal Year (FY) 2016 budget. Option 1 is to levy 109 mills for the General, Library, Transit and Public Safety 1 Funds. This is the maximum number of mills permitted by the Charter for these purposes. This option anticipates hiring additional public safety personnel in FY 2017. No action is needed if the Council chooses this option because it passed Resolution No. 15-10467 in June, which set the levy at 109 mills for the FY 2016 budget.
Option 2 would reduce the levy to 99.66 mills. This option would produce the same tax dollars as last year, plus about $636,000, which is the amount of money that is produced by the TY 2015 newly taxable property (growth). It would reduce the planned use of approximately $1 million in General Fund reserves in this year's budget. It does not include hiring additional public safety personnel. Council can choose Option 2 by adopting the attached amending resolution.
A separate resolution will set the number of mills for General Obligation Debt and Public Safety II. It is independent of the options described above.
Option 2 would reduce the levy to 99.66 mills. This option would produce the same tax dollars as last year, plus about $636,000, which is the amount of money that is produced by the TY 2015 newly taxable property (growth). It would reduce the planned use of approximately $1 million in General Fund reserves in this year's budget. It does not include hiring additional public safety personnel. Council can choose Option 2 by adopting the attached amending resolution.
A separate resolution will set the number of mills for General Obligation Debt and Public Safety II. It is independent of the options described above.
ALTERNATIVES ANALYZED
The Council must hold a public hearing and then may:
- Approve the resolution that amends Resolution No. 15-10467 and reduces the General, Library, Transit and Public Safety 1 Funds combined levy from 109 mills to 99.66 mills; or
- Amend and approve the resolution that amends Resolution No. 15-10467; or
- Table, indefinitely, the resolution that amends the previously adopted Resolution No. 15-10467. If the Council chooses this option, the previously adopted Resolution will remain in effect and the levy will remain at 109 mills. Council could also direct the City Administrator to proceed with the plan to hire additional public safety personnel.
FINANCIAL IMPACT
The decrease of mills to 99.66 would equate to a 3.5% increase in tax revenue over the prior fiscal year.
RECOMMENDATION
Staff recommends holding the public hearing, indefinitely tabling the resolution, and directing staff to prepare the FY17 budget to include hiring additional public safety personnel.