CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance for the levy and assessment of taxes for the fiscal year beginning January 1, 2024 and ending December 31, 2024, adopting a total levy of $20,026 for Special Service Area No. 34 (Downtown Streetscape)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Special Service Area No. 34 (SSA #34) was created per Ordinance 22-028 in March 2022. The purpose of SSA #34 is to levy a special ad valorem tax against the properties included in SSA #34 for a period not to exceed 15 years and not to exceed the rate or amount necessary to produce total revenues of $1.35 million. These funds will used to reimburse design, engineering, construction, and other project-related expenses related to the Downtown Streetscape that encompasses the north side of Jefferson Avenue between Main and Webster streets.
DISCUSSION:
The City Council received the estimated 2023 property tax levy for SSA #34 at the November 7, 2023, City Council meeting in the amount of $20,026.
Per state statute, a public hearing is required if the proposed 2023 property tax levy for a special service area is greater than 105% of the final 2022 property tax extension. Since the 2023 property tax levy for SSA #34 is an increase of 11.2% from the final 2022 extension, the City held a public hearing regarding the proposed 2023 property tax levy for SSA #30 on November 21, 2023. The City Council may now adopt the annual property tax levy for SSA #30 without further action.
The requested levy amount represents a projected tax rate of 0.6140, which is below the maximum rate of 4.0000 set by the originating ordinance.
FISCAL IMPACT:
The tax levy of $20,026 for SSA #34 will support the reimbursement of costs associated with the Downtown Streetscape project within this special service area as included in the 2024 annual operating budget.