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 $125,000 for Special Service Area No. 35 (Downtown Streetscape - Washington Street)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Special Service Area No. 35 (SSA #35) was created per Ordinance 23-074 in June 2023. The purpose of SSA #35 is to levy a special ad valorem tax against the properties included in SSA #35 for a period not to exceed 15 years and not to exceed the rate or amount necessary to produce total revenues of $4.50 million. These funds will be used to reimburse design, engineering, construction, and other project-related expenses related to the Downtown Streetscape that encompasses Washington Street from Benton Avenue to Chicago Avenue.
DISCUSSION:
The City Council received the estimated 2023 property tax levy for SSA #35 at the November 7, 2023, City Council meeting in the amount of $125,000.
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. Because this will be the initial collection year for SSA #35 the City will not be required to hold a public hearing regarding the proposed 2023 property tax levy for SSA #35.
The requested levy amount represents a projected tax rate of 0.7500, which is below the maximum rate of 4.0000 set by the originating ordinance.
FISCAL IMPACT:
The tax levy of $125,000 for SSA #35 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.