Item 4KM E M O R A N D U M
July 30, 2018
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Consider proposal to adopt a tax increase and set public
hearing on the tax rate for the August 21, 2018 and September
8, 2018 Regular City Council meetings
Action
Requested: Place proposal to adopt a tax increase and set public
hearing on the tax rate for the August 21, 2018 and
September 4, 2018 City Council meeting.
Background
Information: The proposed tax rate of $.447 will exceed the effective tax
rate ($.441648) and increase tax revenues. Even though
the tax rate is reduced from $.462 to $.447, the tax rate
exceeds the effective tax rate ($.441648) by 1.21%.
Because the tax rate exceeds the effective tax rate, state law
requires that two public hearings be held by the governing
body before adopting the proposed tax rate. T he city council
must vote to place a proposal to adopt the rate on the
agenda of a future meeting as an action item and hold two
public hearings on the proposal.
Financial
Considerations: The effective tax rate would result in a property tax revenue
reduction of $389,995.
Strategic Link: F1 Adhere to financial management principles and budget
Citizen Input/
Board Review: Public hearings would be scheduled for August 21st and
September 4th
Legal Review: None required
Alternatives: None
Supporting
Documents: None
Staff
Honorable Mayor and City Council
Page 2 of 2
Recommendation: Place a proposal to adopt a tax rate increase and set public
hearings for the August 21st and September 4th Regular City
Council meeting.