Item 4MCITY OF
SOUTHLAKI
MEMORANDUM
July 29, 2014
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 19, 2014 and September
2, 2014 Regular City Council meetings
Action
Requested: Place proposal to adopt a tax increase and set public
hearing on the tax rate for the August 19, 2014 and
September 2, 2014 City Council meeting.
Background
Information: The proposed tax rate of $.462 will exceed the effective tax
rate ($.447209) and increase tax revenues. Even though
the tax rate is held at $.462, the tax rate exceeds the
effective tax rate ($.447209) by 2.16%. 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. The 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 $932,650
Strategic Link: F1 Adhere to financial management principles and budget
Citizen Input/
Board Review: Public hearings would be scheduled for August 19t" and
September 2nd
Legal Review: None required
Alternatives: None
Supporting
Documents: None
Staff
Recommendation: Place a proposal to adopt a tax rate increase and set public
hearings for the August 19t" and September 2nd Regular
City Council meeting.