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, 2023 and ending December 31, 2023 adopting a total levy of $80,000 for Special Service Area No. 30 (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. 30 (SSA #30) was created per Ordinance 19-070 in May 2019. The purpose of SSA #30 is to levy a special ad valorem tax against the properties included in SSA #30 for a period not to exceed 15 years. These funds will be used to reimburse engineering, design, construction, and other capital project fees included with the Downtown Streetscape along the south side of Jefferson Avenue between Main and Webster streets as well as both sides of Main Street between Jefferson and Jackson avenues.
DISCUSSION:
City Council received the estimated 2022 property tax levy for SSA #30 at the November 15, 2022, City Council meeting in the amount of $87,422. However, after closer review of Ordinance 19-070 it was determined the initial levy year could not exceed $80,000. The collection of the property taxes associated with SSA #30 was delayed according to the streetscape construction schedule, which makes 2023 the initial collection year. As a result, staff has adjusted the estimated property tax levy for SSA #30 down to $80,000 as required by Ordinance 19-070.
Per state statute, a public hearing is required if the proposed 2022 property tax levy for a special service area is greater than 105% of the final 2021 property tax extension. Because this will be the initial collection year for SSA #30 the City will not be required to hold a public hearing regarding the proposed 2022 property tax levy for SSA #30.
The requested levy amount represents a projected tax rate of 1.2919, which is below the maximum rate of 1.6000 set by the originating ordinance.
FISCAL IMPACT:
The tax levy of $80,000 for SSA #30 will support the reimbursement of costs associated with the Downtown Streetscape project within this special service area as included in the 2023 annual operating budget.