DATE: May 6, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
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Consideration of Ordinance 2016-013, as Amended, an Ordinance to Establish a Property Tax Rate for 2017. (05-12-16 Finance 3-0, 05-24-16 WS, BOMA 7-0; 06/14/16 BOMA 2nd Reading 8-0) THIRD AND FINAL READING)
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning property tax rates for the upcoming Fiscal Year 2016-2017.
Background
The City of Franklin relies upon a variety of funding sources to support operations. As in most cities across the United States, the City of Franklin is dependent in part upon a local property tax rate to support general operations, and to fund and service debt incurred on capital projects. Every five years, the County Property Assessor performs a reappraisal of all property throughout Williamson County. Through this process, updated valuations are provided for each property and, as a result, property tax rates are adjusted. This process presents the City with an opportunity to reevaluate its property tax rate and structure. 2016 (and Fiscal 2016-2017) marks a reappraisal year.
The City's proposed property tax rate is $0.42 per $100 of assessed valuation, an increase of 3.3% from the current rate of $0.4065 per $100 of assessed valuation. The recommended budget includes both the City's existing property tax structure ($0.32 per $100 of assessed valuation) and a recommended additional component ($0.10 per $100 of assessed valuation) targeted at funding investment in infrastructure and supporting City operations. First, the existing property tax funding consists of:
? $0.29 per $100 of assessed valuation - This component is the City's existing base property tax rate for operations and debt service, providing only the amount of tax dollars received for those purposes in the prior year.
? $0.03 ($0.015 and $0.015 respectively) per $100 of ...
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