CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Conduct a Truth-in-Taxation hearing for the Special Service Area No. 26 (Downtown Maintenance Expenses and Marketing Costs) property tax levy (Item 1 of 2)
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DEPARTMENT: Finance Department
SUBMITTED BY: Erik Hallgren, Financial Services Supervisor
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Special Service Area No. 26 was re-established per Ordinance 15-173 in October 2015. This SSA replaced prior SSA’s including SSA 24; SSA 22; and SSA 20, which finance the maintenance, parking deck operations, and marketing expenses for the downtown. Special Service Area 26 will expire in December 2020.
DISCUSSION:
City Council received the estimated 2017 property tax levy for Special Service Area No. 26 at the November 17, 2017 City Council meeting in the amount of $1,013,351. This proposed property tax levy for 2017 is a 7.5% increase from the 2016 final property tax extension of $942,931. A truth-in-taxation hearing is required per State statute because the proposed 2017 property tax levy is greater than 105% of the final 2016 property tax extension. A truth-in-taxation hearing notice was published on December 10, 2017 in accordance with State statute. Once the truth-in-taxation hearing is concluded, City Council may adopt the annual property tax levy. This levy amount represents a projected tax rate of 1.6603 up from the 2016 rate of 1.6068.
FISCAL IMPACT:
Tax Levy of $1,013,351 for Special Service Area No. 26