Consideration and Adoption of Resolution No. 2016-27:  A resolution of the Flagstaff City Council adopting official ballot language question to be submitted to the qualified electors of the City with respect to a temporary increase to the City's secondary property tax and authorization for the sale and issuance of bonds of the City of Flagstaff, Arizona for purposes of municipal court facilities, said question to be submitted at the City's General Election to be held on November 8, 2016. (Ballot Language for Municipal Court Facilities Bond Project)

The City Council gave direction at the June 14, 2016, Council Work Session to prepare ballot language for the purpose of a $12 million municipal court facilities bond project. The purpose of this resolution is to adopt official ballot language to be submitted at the City’s general election to be held on November 8, 2016.

The ballot question will ask voters to consider a temporary increase to the City's secondary property tax and authorization of the sale and issuance of bonds in the amount of $12 million.  The ballot language refers to a temporary increase based on the bond amount and is not a permanent increase. 

The impact to the secondary property tax rate for issuing $12 million in general obligation debt if it is issued in equal installments is estimated to be $0.1204 per $100 of assessed valuation (AV).  The impact to the taxpayers for issuing $12 million in general obligation debt if it is issued in equal installments will be an average of $36 annually for a residential property valued at $300,000 and $217 for a commercial property valued at $1,000,000. 

The City's secondary property tax rate is currently 0.8366.  The impact of the 0.8366 rate to the tax payers is an average of $251 for a residential property valued at $300,000 and $1,506 for a commercial property valued at $1,000,000.  If the City voters do not approve any more bond projects, then the property rate is projected to will decrease beginning in FY 2022 to $0.7700 per $100 of AV and will decline further as debt is retired.  Current projections show all general obligation debt being paid off in FY 2037 with a rate of $0.0900 per $100 of AV.  This is dependent on when we issue the remaining $9.2M of voter authorized debt. 

Due to the anticipated future unused bonding capacity available, approval of this ballot question would not result in an increase in the secondary property tax rate.  This means the secondary property tax rate will stay at 0.8366.

COUNCIL GOALS:
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
8) Improve effectiveness of notification, communication, and engagement with residents, neighborhoods and businesses and about City services, programs, policies, projects and developments

On April 12, 2016, Council provided direction to staff to proceed with continued County coordination to further refine the concept design of a possible co-located courts facility.

On June 14, 2016, City Council reviewed options for the municipal court facilities bond project and directed staff to prepare ballot language for a $12 million bond project to be funded through secondary property tax.

Approve Resolution 2016-27 as drafted
Amend and adopt Resolution 2016-27
Do not adopt Resolution 2016-27

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