05 - Ordinance Adopting the Property Tax Rate and Tax Levy

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Item No. 5 TO: Mayor & City Council FROM: Gene Anderson, Interim City Manager & Finance Director SUBJECT: ORDINANCE ADOPTING THE PROPERTY TAX RATE AND TAX LEVY DATE: September 10, 2019 BACKGROUND: Each year the City Council must adopt a property tax rate sufficient to fund the city budget as adopted by the Council. The ordinance setting the tax rate also indicates the amounts of budget appropriations resulting from levying the adopted property tax rate. At the originally proposed tax rate (.55195), the average residential homestead valued at $87,289 will pay $481.79 in city property taxes. If the Council adopts the Effective Tax Rate (.51608), the average residential homestead valued at $87,289 will pay $450.48 in city property taxes. STATUS OF ISSUE: The City Council, having adopted the 2019-20 City budget, must now adopt a property tax rate that will fund that budget. To fund the originally proposed budget would require a tax rate of 0.55195 while the reduced budget would require a tax rate of .51608. BUDGET: N/A RECOMMENDATION: Motion to approve an ordinance fixing the property tax rate, property tax levy, and levying the ad valorem taxes for the City of Paris for fiscal year 2019-20.