8.0. SR 07-26-1993 - Laserfiche WebLink

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e e e was made using 1993 property tax and levy numbers. However, when comparisons are made to past years, they should be made to 1992 tax rates instead of 1993 tax rates. As I stated earlier, the 1993 rates are not consistent with the past due to a classification error which was corrected in 1993. The following table indicates what the 1993 tax rates would have been based on the various benefit ratios. BENEFIT RATIO URBAN RURAL DIFFERENCE ------------- ----- ------ ---------- .80 20.165 16.432 3.733 .85 20.070 17.237 2.833 .90 19.975 18.034 1. 941 .95 19.882 18.822 1. 060 1. 19.790 19.603 .187 Note: Because the 1977 G.O. Refunding Levy is split 58% to the urban district and 42% to both the urban and rural districts, an equal benefit ratio does not equate to an equal tax rate. The final levy for the 1977 refunding issue is for taxes payable in 1996 after which a ratio of 1 would provide for equal tax rates for the rural and urban districts. A benefit ratio of .85 would bring the urban and rural taxing rates within 2.833 points which is slightly larger than the difference in the 1992 rates. A ratio of .90 would bring the difference to 1.941 points which is slightly less than the 1992 difference. A copy of the proposed amendment is attached for your review. Again, this amendment includes a ratio of .90; however, the Council may change that number to any number it feels appropriate. In addition, it is suggested that future changes be incorporated into this ordinance amendment. In order for the benefit ratio change to be effective for taxes payable in 1994, the ordinance amendment needs to be certified to the County Auditor by August 1. Please keep in mind that changing the benefit ratio does not affect the amount of tax revenue the City receives, instead it redistributes the way it is collected. Because you are familiar with the logic behind the urban and rural taxing districts, I have not distributed a great deal of background information. However, if you feel you want additional information regarding the consolidation and the reasons for the separate taxing districts, please let me know and I will provide that information. Also, I did not provide the detailed calculations for each of the proposed benefit ratios. That information is also available for your review. I will be available at Monday's meeting to address any additional questions you may have.