File #: 18-0492    Version: 1 Name: ORD 2018-11 FY19 Property Tax Rate
Type: Ordinance Status: Consent Agenda
File created: 5/4/2018 In control: Board of Mayor & Aldermen
On agenda: 6/26/2018 Final action: 6/26/2018
Title: Consideration of Ordinance 2018-11, an Ordinance to Establish a Property Tax Rate for FY 2019 (05/10/18 Finance 4-0, 05/22/18 BOMA 1st Reading 8-0, 06/12/18 2nd Reading 7-0) THIRD AND FINAL READING
Sponsors: Eric Stuckey, Kristine Brock, Michael Walters Young
Attachments: 1. 2018-11 ORD Tax Rate Ordinance FY 2019. Law Approved 2.pdf

 

DATE:                                                               May 4, 2018

 

TO:                                          Board of Mayor and Aldermen

                                          Budget & Finance Committee

 

FROM:                                          Eric Stuckey, City Administrator

                                          Kristine Tallent, Assistant City Administrator for Finance and Administration

                                          Michael Walters Young, Budget & Strategic Innovation Manager

                     

                                          

SUBJECT:                                          

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Consideration of Ordinance 2018-11, an Ordinance to Establish a Property Tax Rate for FY 2019 (05/10/18 Finance 4-0, 05/22/18 BOMA 1st Reading 8-0, 06/12/18 2nd Reading 7-0) 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 2018-2019.

 

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.

 

The City’s proposed property tax rate is $0.4176 per $100 of assessed valuation, or no change from the

current rate. The proposed FY19 budget recommends the continuation of the additional dedicated property tax funding (Invest Franklin) adopted by the BOMA last fiscal year. As a reminder, this consisted of:

• $0.07 (.0700) per $100 of assessed valuation - This component would be dedicated to infrastructure

investments and transportation needs, including roadway improvements/expansions, parks, and City facility needs. One penny of this component would be specifically dedicated to funding for transit, connectivity through multi-use trails and sidewalks, and other alternatives to roadway transportation. Part of this amount is being dedicated to Debt Service in FY 2019.

• $0.03 per $100 of assessed valuation - This component would be dedicated to supporting City

operations and service delivery.

 

Maintaining the rate will allow the City to focus on the application of these revenues to the projects of Invest Franklin and a sustained delivery of quality City services.

 

Financial Impact

The City forecasts to collect approximately $19.4 million in property tax next fiscal year - approximately 3% higher than FY 2018 due to growth within the community.

 

Recommendation

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Staff recommends approval of Ordinance 2018-11.