Title
ORDINANCE 2996: ADOPT FISCAL YEAR 2016-2017 PROPERTY TAX LEVY (ORDINANCE)
Staff Contact and Presenter: Vicki Rios, Interim Director, Finance and Technology
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Purpose and Policy Recommendation
This is a request for City Council to waive reading beyond the title and adopt an ordinance setting the primary property tax rate at $0.4792 per $100 of assessed valuation for FY2016-2017 (FY16-17) and the secondary property tax rate at $1.6698 per $100 of assessed valuation for FY16-17. The total property tax rate will decrease from $2.1965 to $2.1490.
Background
Arizona state law requires that Council set the property tax levy by the third Monday in August. 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 principal, interest, and related fees on voter authorized bonds used to finance the city's capital improvement plan.
Prior to FY2015-2016 (FY15-16), the primary property tax levy was based on the limited cash value of each property and the secondary property tax levy was based upon the full cash value of the property. Due to the passage of Proposition 117, FY15-16 was the first fiscal year in which the both the primary and the secondary property tax levy are based on the limited property value of Glendale properties.
Analysis
The recommended primary property tax rate for FY16-17 is $0.4792 per $100 of assessed valuation. This is a decrease from $0.4898 per $100 of assessed valuation for FY15-16. At this rate, the primary levy will generate approximately $5,621,452 which will be used to support services paid for by the city's General Fund.
The recommended secondary property tax rate is $1.6698 per $100 of assessed v...
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