Title
AN ORDINANCE SETTING THE TAX LEVY FOR THE YEAR 2016 FOR THE CITY OF LEE'S SUMMIT, CASS AND JACKSON COUNTIES, MISSOURI.
Body
Issue/Request:
AN ORDINANCE SETTING THE TAX LEVY FOR THE YEAR 2016 FOR THE CITY OF LEE'S SUMMIT, CASS AND JACKSON COUNTIES, MISSOURI
Key Issues:
Consideration and setting of hte tax levies for the General Fund; Parks and Recreation Fund; and, Debt Service Fund for the City of Lee's Summit, for the 2016 Calendar Year (Fiscal Year 2017).
The City experienced a net decrease in Assessed Valuation for property that was assessed in both 2015 and 2016 of approximately ($2,657,893 or 0.15%), with new growth Assessed Valuation of $54,426,900 (3.00%) being added in 2016. The increase in new growth offset by the decrease on previously assessed property, resulted in an increase in total Assessed Valuation in 2016 of $51,769,007 over the Total Assessed Valuation in 2015. The decrease in previously assessed valuation for property from 2015 to 2016, will allow the tax levies to be increased to compensate for the decrease in assessed valuation of previously assessed property.
Proposed City Council Motion:
First Motion: I move for second reading of AN ORDINANCE SETTING THE TAX LEVY FOR THE YEAR 2016 FOR THE CITY OF LEE'S SUMMIT, CASS AND JACKSON COUNTIES, MISSOURI.
Second Motion: I move for adoption of AN ORDINANCE SETTING THE TAX LEVY FOR THE YEAR 2016 FOR THE CITY OF LEE'S SUMMIT, CASS AND JACKSON COUNTIES, MISSOURI.
Background:
Each year, the City Council must set the tax levies to be applied to property within the City limits for the General Fund, the Parks and Recreation Fund, and the Debt Service Fund. The Cass County Assessor and the Jackson County Assessor provide the assessed values for all property located within the City limits, and, state statutes require the City Council to set the tax levies by October 1 of each year. Once the tax levies are set, the levies are forwarded to the State Auditor's Office for review and certification by the Auditor. Once the tax levies have been certified by the State Auditor's office, the tax levies are forwarded to the County Clerks of Cass and Jackson Counties, who certify the levies. After the tax levies are certified by the respective County Clerk, the levy rate is applied to the properties within the City limits, and the resulting amounts are forwarded by the respective County Clerk to the County Collector's Office of Cass and Jackson County, for collection from the property owners.
Impact/Analysis:
The valuation provided by the Cass County and Jackson County Assessor's Offices reflect the most current assessed valuations available through August 15, 2016. The 2016 total Assessed Valuation is an increase of $51,769,007 over the 2015 total Assessed Valuation. However, the 2016 Assessed Valaution of property which was also assessed in 2015 is $2,657,893 less than the assessed valaution for 2015. Due to the decrease in previously assessed property, the City may, under State Statutes, increase the tax levies to compensate for the decrease in assessed valaution to maintain the same tax revenue from the previously assessed property.
The tax levy for the General Fund can be set at a maximum of $0.9081 per $100 assessed valuation; the Parks and Recreation tax levy can be set at a maximum of $0.1606 per $100 of assessed valuation; and, the Debt Service levy can be set at a maximum of $0.5022 per $100 of assessed valuation. The City has not typically increase the Debt Service levy above $0.4697 per $100 of assessed valuation due to the "no tax increase" elections.
The combined maximum 2016 City Tax Levy would be $1.5709 if all the tax levies were set at their maximum levels.
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Presenter
Presenter: [Enter Presenter Here]
Recommendation
Recommendation: Staff recommends passage of AN ORDINANCE SETTING THE TAX LEVY FOR THE YEAR 2016 FOR THE CITY OF LEE'S SUMMIT, CASS AND JACKSON COUNTIES, MISSOURI.
Committee Recommendation
Committee Recommendation: [Enter Committee Recommendation text Here]