Finance Committee Agenda and Packet 2021 09 27

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SUBJECT: PRELIMINARY ASSESSED VALUATION DATE: SEPTEMBER 27, 2021 PAGE 2 OF 2 Property Tax Revenue (Excludes URD) Increase Results from 17%Increase in Net Assessed valuation and Mil Levy 544404o Increasefrom 6.710 to 8.869 for Recreation Center Bonds. Netof Reduction in RAR from 7.96% to 7.20% S,o0o,0oa 00o Ooo Increase Results from 17% Increase in Net Assessed valuation 3,004,000 J H U U H J J Z004,000 1,004,000 20H 2009 2010 2011 2012 2013 2014 2015 2015 2017 --j Property Ta x Reven u e Reduction due to End of Library debt Service Mil U I rt ! I I I I I 2018 M19 20M M21 W22 W23 W24 Mil Levy Senate Bill 21-293 To calculate property taxes, a property's actual value is multiplied by an assessment rate to determine its assessed value. The assessed value is then multiplied by the mill levy to determine the amount of property tax due. Currently, the assessment rate for residential property is 7.15 percent and the assessment rate for most nonresidential property is 29.00 percent. Senate Bill 21-293 temporarily reduces the assessment rates for certain classes of property for collection years 2023 and 2024: • The assessment rate for multifamily residential property is reduced to 6.80 percent; • The assessment rate for all other residential property is reduced to 6.95 percent; • The assessment rate for agricultural nonresidential property is reduced to 26.40 percent; and • The assessment rate for nonresidential property used to produce renewable energy is reduced to 26.40. These changes in the assessment rates are for taxes collected in 2023 and 2024 and do not impact property tax revenue for 2022. The changes are projected to have a very small impact on the City's overall assessed valuation and property tax revenue. Slight adjustments to the projected assessed valuations have been incorporated into 2023 and 2024 revenue projections. CITY COUNCIL COMMUNICATION N