Annual Property Tax Levy Certification

Finance and Audit Committee August 20, 2008

Steps to Levy Certification

 County assessors provide assessed valuations for real and personal property  City staff prepares calculations to determine maximum property tax levy rates  City Council sets levy rates by ordinance  City staff forwards calculations plus authorizing ordinance to County clerks by September 1st

Steps to Levy Certification

  County clerks forward levy calculations for all jurisdictions to the State Auditor’s Office (SAO) SAO “certifies” maximum levy rates for all jurisdictions and sends notices back to County clerks  Jurisdictions use certified levy rates for November 1 st real and personal property tax billing

Goals for Levy Certification

 Ensure no revenue windfall due to reassessment  Provide the lesser of CPI or AV growth  Allow additional credit for new construction and changes in personal property valuation  Equalize property tax burden across all property owners  Continue to support operations

KCMO Assessed Valuation*

Real Estate RR Real Personal RR Personal

TOTAL FY 08

5,512,212,585 216,503,146 1,435,441,206 119,757,708

7,283,914,645

*Data derived from 2008 property tax certification worksheet.

FY 09

5,599,824,314 209,062,911 1,458,898,316 119,778,467

7,387,564,008

Growth in Assessed Valuation

Fiscal Year 2005 Growth Rate 4.41% 2006 2007 2008* 2009* 9.07% 2.63% 9.96% 1.42% *Utilizes data from current-year certification, all other figures from KCMO CAFR.

Proposed Levy Rates for FY 09

Levy Type General Health Health (Temp.) Museum Maximum Rate 0.6342

0.4613

Proposed Rate 0.6342

0.4613

0.2138

0.0185

0.2138

0.0185

Debt

TOTAL

0.5482

1.8760

0.1400

1.4678

General Health Health (Temp.) Museum Debt

TOTAL

Levy History

FY 05 0.6713

FY 06 0.6519

FY 07 0.6519

FY 08 0.6320

FY 09 0.6342

0.4887

N/A 0.4746

0.2200

0.4746

0.2200

0.4597

0.2131

0.4613

0.2138

0.0196

0.1400

0.0190

0.1400

0.0190

0.1400

0.0184

0.1400

0.0185

0.1400

1.3196

1.5055

1.5055

1.4632

1.4678

Change in Combined Levy Rate

Levy Type

General Health Health (Temp.) Museum Debt

TOTAL FY 08 Rate

0.6320

Proposed FY 09 Rate

0.6342

0.4597

0.2131

0.4613

0.2138

0.0184

0.1400

1.4632

0.0185

0.1400

1.4678

Delta

0.0022

0.0016

0.0007

0.0001

0.0000

0.0046

Affect of Combined Levy Change on Property Owner

 Owner of a home with a $200,000 market value and automobiles with a combined market value of $35,000 would realize a $2.24 increase in annual property taxes due to the City.

Preliminary Revised FY 2008-09 Revenue Estimate* Levy Type

General Health Health (Temp.) Museum Debt

TOTAL Adopted Budget

$48,078,300 $34,957,443 $16,224,757 $1,399,753 $10,650,296

Revised Estimate

$49,078,336 $35,698,277 $16,548,407 $ 1,428,863 $10,834,017

$111,310,549 $113,587,900 Delta

$1,000,036 $740,834 $323,650 $29,110 $183,721

$2,277,351

*Subject to application of final billing numbers, collection rates, etc.