CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Conduct a Truth-in-Taxation hearing for the Special Service Area No. 33 (Downtown Maintenance Expenses and Marketing Costs) property tax levy (Item 1 of 2)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Special Service Area No. 26 was 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 and is replaced by Special Service Area No. 33.
DISCUSSION:
The City Council received the estimated 2020 property tax levy for Special Service Area No. 33 at the November 4, 2020 City Council meeting in the amount of $1,146,702. This proposed property tax levy for 2020 is an 8.52% increase from the 2019 final property tax extension of $1,056,695. Per state statute, publication of a Truth-in-Taxation hearing notice is not required for the initial levy year of a special service area. However, to remain transparent and to be consistent with the City’s other special service areas, a Truth-in-Taxation public hearing will be conducted as the levy request is more than 105% of the 2019 property tax levy for the predecessor Special Service Area No. 26. A Truth-in-Taxation hearing notice was published on December 6, 2020. Once the Truth-in-Taxation hearing is concluded, the City Council may adopt the annual property tax levy. This levy amount represents a projected tax rate of 1.5193 up from the 2019 rate of 1.4633.
FISCAL IMPACT:
The tax Levy of $1,146,702 for Special Service Area No. 33 will support the 2021 annual operating budget.