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Home My WebLink AboutOrdinance 4525 0 ORDINANCE N0. 4525 AN ORDINANCE LEVYING A TAX ON THE REAL AND PERSONAL PROPERTY WITHIN THE CITY OF FAYETTEVILLE, ARKANSAS, FOR THE YEAR 2003 FIXING THE RATE THEREOF AT 0.4 MILS FOR THE FIREMEN' S PENSION AND RELIEF FUND, 0.4 MILS FOR THE POLICEMEN'S PENSION AND RELIEF FUND, 1 .0 MIL FOR THE FAYETTEVILLE PUBLIC LIBRARY; AND CERTIFYING THE SAME TO THE COUNTY CLERK OF WASHINGTON COUNTY, ARKANSAS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That a tax is hereby levied on the real and personal property within the City of Fayetteville, Arkansas, for the year 2003, to be collected in 2004, for the following purposes at the following rates: REAL AND PERSONAL PROPERTY Purpose LcvV Fayetteville Public Library 1 .0 mils Policemen 's Pension Fund 0.4 mils Firemen's Pension Fund 0.4 mils TOTAL 1 .8 mils Section 2. That the real and personal property tax so levied and the rates provided therefore are hereby certified to the Clerk of Washington County, Arkansas, to be placed in the tax book by the County Clerk and collected in the same manner that the county and school district taxes are collected. Section 3. The City Clerk is hereby authorized and directed to file certified copies of this ordinance in the office of the County Recorder, County Clerk, County Assessor, and the County Tax Collector for Washington County, Arkansas. F Y E /rE PASSED and APPROVED this the 4 ° day of November, 2003. y • \ APPROV D: 1 By : zla 4- 9-Z i ` i! DAN COODY, May ATTEST: By: ill SONDRA SMITH, City Clerk \ WASHINGTON COUNTY STATE OF ARKANSAS �•� ,, • , J+ l�. , Washington County Courthouse RECEIVED 280 North College Avenue, Suite 300 Fayetteville, Arkansas 72701 KAREN COMBS PRITCHARD Telephone: (479) 444-1711 SEP 18 2003 COUNTY AND PROBATE CLERK Fax: (479) 444-1894 CIpyOF Fqy CITyCLFRK,OFFICE City Clerk Dear Clerk: Please submit the tax levy figures for your City for the year 2003 . The Quorum Court meets on November 13th. I need this information as soon as possible. Please give us the total levy figure and complete breakdown of tax in the space provided below. This information must be provided on this form. Sincerely yours, i Karen Combs Pritchard Washington County Clerk TOTAL � ' 8 MILLS BREAKDOWN a j Q/ / to i A M,44� SIGNATURE AND TITLE OF PERSO AUTHO111 ED TO SUBMIT TAX I r NAME OF FILE: Ordinance No. 4525 CROSS REFERENCE: Item # Date Document 1 11 /04/03 Staff Revieww/attachments: memo mayor R city council copy of Property tax Revenue per Mil copy of Wash. Co. letter copy of preliminary summary report of co. assessments for 2003 draft ordinance copy of email to Kit Williams 2 11 /07/03 memo to Kevin Springer 3 11/07/03 Affidavit of Publication NOTES : NORTHWEST ARKANSAYEDITION Arkansas Democrat IF Gazette NOV 12 2003 CITY OF FAY t l i EViLLE CITY CLERK'S OFFICE AFFIDAVIT OF PUBLICATION I , do solemnly swear that I am Legs Clerk of the Arkansas Democrat-Gazette/Northwest Arkansas Times newspaper, printed and published in Lowell , Arkansas, and that from my own personal knowledge and reference to the files of said publication , that advertisement of: G (b j10 n O 0 J 5 aJ was inserted in the regular editions on Po# 03 I�� I-col " Publication Charge : $ lc)� - '5 3 1 Subscribed and swom to before me this 70\ day of a/o„-4L4jhj 2003., G - ---FRDNE ONDINMCE NO. "27 — .Ih, DINANCE LEVYING A TAX ON THE REAL AND , NAL PROPERTY `MTHIN THE CffV OF FAYEHE RA E. Notary PUbIIC FOR THE YEAF F ARKANSASTTE ARKANSAS- 0.4 FORTHE FOR THE FlREMENS PENSION AND ' 7 RELIEF FUND. 0.4 MILS FOR THE POLICEMEN'S PENSION �/ ELIEF, FUND. 1.0 MIL FOR THE FAYETTBALLE PUBLICCft yr Fayette`d�Ile / ? V; ,AND CFFf1MNG THE SOME TO THE COUNTY My Commission Expires: d /OY ob OF AINEDASK GTOTHEC V. ARKANSCOUNC SoNouxED er THE em ewNleu or'TNE cTn or rercrTsvlua1. Thet a tax § hereby leiedmUbe real ant personal Property wltrtlethe City of FeyetuhGo. es, for the year 2003, to be collected 0 2004, for the tdlow4g P rposesatthefol bo M,rales:Please do not pay from Affidavit. REAL •ND PERSON" PROPER"An invoice will be sent. 'e Pubic Ubray........................................................................................... o°licema,§ Pa51m Fund .........................................:................................................rren§ PMKS ertlonFund............................................................................................ ..0.4 rMs T" ................................................................................................ 19 mot Sect on 2. That the real and persead property tax ec levied antl the rotes prodded therefore are hereby oorefled to the Lark of Washington County. Arkansas, to be plaood In the tax book by the Canty Gerk =Notary al and ODOWted In ne seine manner Chet Ube minty orifi school district taxes ars CDWed. ARGO Section 3. The city Clerk a hereby a11h0fpad and drected to Eo 000irred coples of Uas adhance n the kansas wDoea metIne CwnytyAbe sas CantyC e k. Co my Asaeeaaand Ver Canty Tez Corec a bOUNTY s07.28.2013 PASSED APPROVED methe 4th dayofNorember. 2003. M1COODT, NMVW ATTEST: SONORA EYITH, C"F Ckli 212 NORTH EAST AVENUE 9 P.O. BOX 1607 • FAYETTEVII I E, ARKANSAS 72702 • (501 ) 442-1700 STAFF WIEW FORM - NON-FINANCIAL OIGGATION 2003 Millage Levy B XX AGENDA REQUEST Page 8 For the Fayetteville City Council Meeting of : October 7, 2003 FROM : Kevin Springer Budget & Research Finance & Internal Services Name Division Department ACTION REQUIRED: City Council is requested to adopt real and personal property tax rates for 2003 for the Policemen' s Pension & Relief, the Firemen' s Pension & Relief Funds, the Fayetteville Public Library and General Government Operations. The rate to be adopted for the Policemen' s Pension & Relief Fund and the Firemen' s Pension & Relief Fund is 0.4 mils for real property and 0.4 mils for personal property, the millage for the Fayetteville Public Library is 1 .0 mil for real property and 1 .0 mil for personal property and the millage for General Government Operations is 1 .0 mil for real property and 1 .0 mil for personal property. This millage request corresponds to the millage prediction included in the City Council budget briefing of August 4, 2003. SUMMARY F"LANATION: Each year the City must levy property tax millages on the current year assessments to be collected in the subsequent year. This year's levy includes millages for the Policemen' s Pension & Relief, the Firemen' s Pension & Relief Funds, the Fayetteville Public Library and General Government Operations. The millages for the pension plans and the Library are voter approved and the millage levy for General Government Operations is from the 5.0 discretionary mils that City Council is authorized by the Arkansas Constitution and Code. STAFF REECObZ7AMTION : 1� ` Vey 7 Received is Mayor ' s Office Division Head Date Date W / w1 �2 �/+�R�,'j City Attor eyD" ate Cross Reference : Department Director Date q f, Previous Ord/Res # : /a/VI V�sNii�_. lAY1Q..� 7 - z `! - d3 Financef&& Internal Services Dir . (J 9Date Orig . Contract Date : 4%?/( 7 - O'Y I Orig . Contract Number : Chfe'f Aministrative officer Date New Item : Yea No Mayor Date FAYETTEVILLE • to 7 / 7 / 0.3 THE CRY OF FAYETTEVILLE, ARKANSAS 2003 Millage Levy B Page 1 CITY COUNCIL AGENDA ITEM �A 1 t zoo3 TO: Mayor Dan Coody and Fayetteville City Council THRU: Hugh Earnest, Chief Administrative Officer V Stephen Davis, Finance & Internal Services Direct" FROM: Kevin Springer, Budget Manager DATE: September 17, 2003 SUBJECT: 2003 Millage Levy Recommendation: Staff recommends the levy of 2.8 mils on real and personal property taxes for 2004. The millage levy is comprised of the following: Millage Millage Millage Item Type Amount General Fund Operations discretionary 1 .0 Library (approved in 2002) voter approved 1 .0 Fire Pension & Relief Fund voter approved 0.4 Police Pension & Relief Fund voter approved 0.4 Total 2.8 Background: Each year the City must approve an ordinance to renew the levy of ad valorem taxes on real and personal property within the City. This request will provide for such levy on property assessed during 2003. A millage levy ordinance must be approved by City Council in order for the City to continue to collect property taxes for the Policemen' s Pension and Relief Fund and the Firemen' s Pension and Relief Fund. The millage levy for the Policemen's Pension and Relief Fund is 0.4 mils for real 77704640 4 eC ni il/", /!2/ 2.003 • • 2003 Millage Levy B Page 2 property and 0.4 mils on personal property. The millage levy for the Firemen' s Pension and Relief Fund is 0.4 mils for real property and 0.4 mils on personal property. In addition, a millage levy must be approved for the operation of the Fayetteville Public Library that was approved by the voters on October 1 , 2002. The millage levy for the Fayetteville Public Library is 1 .0 mils for real property and 1 .0 mils on personal property. The total assessed value of real and personal property located within the city limits of Fayetteville, as of September 14, 2003, is approximately $689 million. The assessed valuation is before the Washington County Board of Equalization has made all the changes to the County Assessors Abstract. Based on the preliminary assessments, the growth in real estate assessments is approximately 7.2%. The change in assessed real estate value is due to newly discovered, newly constructed property (6.2%) and reassessment of existing property (1 .0%). The final assessments are anticipated from Washington County mid October. Discussion: In addition to the mils authorized for Police Pension, Fire Pension, and the Fayetteville Public Library, City Council has the option of approving the assessment of up to 5 discretionary mils on real and personal property. City Council may choose to exercise its option to levy some or all these discretionary 5 mils to provide a financial cushion to General Fund to offset the budget shortfalls as a result of lower than projected sales tax collections. During the August 4, 2003 Budget Briefing to City Council, staff recommended that City Council approve 1 .0 mil for the operation of Fire Station #7. Even with the additional 1 .0 mil slated for the operation of Fire Station #7, General Fund needs an additional 1 .0 mil or $678,000 in revenue to balance the 2004 Budget. This millage does not provide any funding for this projected expense nor is any funding made available for either requested moneys to fund current services or to address any pay range or benefit cost increases. Millage Funding Item Amount Needed Current budget shortfalls due to Sales Tax collections 678,000 1 .00 Identified funding needs to maintain operations at 323,000 0.50 existing service levels. Total 1 ,001 ,000 1 .50 The combined funding needed to balance General Fund and provide funds to continue existing services at current levels is $ 1 ,001 ,000 or an additional 1 .5 mils. This additional revenue could come from increased sales tax collections, increases in franchise fees, or a combination of these items plus user fee increases. • . 2003 Millage Levy B Page 3 Budget Impact: If the millage is not approved for General Fund operations, the impact for 2004 will be a budget deficit of $ 1 ,641 ,000. This would reduce the 2004 projected ending fund balance amount to $4, 185,000 which is $37,000 below the Required Fund Balance Reserve amount approved by City Council in 2002. Conclusion : The millage levy must be at Washington County, November 6 to be included in their consolidated levy ordinance which will be approved at the November 13, Quorum Court meeting. The City levy will be added to the levies by Washington County, the various school districts, improvement districts and other cities within the County when the Washington County Quorum Court adopts its millage levy for 2003. If you have any questions concerning this agenda request please contact either myself at 575-8226 or Stephen Davis at 575-8330. • • 2003 Millage Levy B City of Fayetteville Page 4 Property Tax Revenue per Mil August 2, 2003 Millage Approximate Revenue 0. 10 $ 66,000 0.20 $ 131 ,000 0.30 $ 197,000 0.40 $ 262,000 0.50 $ 328,000 0.60 $ 393,000 0.70 $ 459,000 0.80 $ 524,000 0.90 $ 590,000 1 .00 $ 655,000 2.00 $ 193109000 3.00 $ 19965,000 4.00 $ 2,6209000 5.00 $ 3,2759000 The millage revenue reflected above is based on the Washington County Preliminary Summary Report of County Assessments for the Year 2003 dated August 2, 2003 and excludes real and personal property for Utilities. The City Council can approve up to 5.0 mils for operations. The table assumes a 95% collection rate. Total real and personal property assessments for 2003 amount to approximately $689 million excluding real estate and personal property for utilities. The change in assessed value for real estate from 2002 to 2003 is approximately $37.9 million or 7.2%. The change in assessed real estate value is due to newly discovered, newly constructed property (6.2%) and reassessment of existing property (1 .0%) . This change is offset by a total reduction of approximately $37.4 million in the assessed value for personal property. The net change for all assessments is approximately $0.5 million or 0.07%. It is noteworthy to mention that personal property continues to be assessed right up until the values are turned over for collection. The current negative amounts are preliminary and are being compared to last year's final totals. Property Tax Impact Illustration Appraised Value Assessed Value 1 Mil Tax / Year Single Family Home $ 75,000.00 $ 15,000.00 $ 15.00 Single Family Home $ 100,000.00 $ 20,000.00 $ 20.00 Single Family Home $ 150,000.00 $ 30,000.00 $ 30.00 H:\BUDGET\PROJECTS\MILLAGE\Millage Increase - 2003.xls • 2003 Millage Levy kASHINGTON COUNTY s Pages STATE OF ARKANSAS ` Washington County Courthouse 280 North College — Suite 250 Fayetteville, Arkansas 72701 LEE ANN KIZZAR TELEPHONE - COUNTY ASSESSOR 479/444- 1500 August 129 2003 Mr. Steve Davis Budget Officer 113 W Mountain Fayetteville AR 72701 Dear Mr. Davis Enclosed is a copy of the Preliminary Summary Report of County Assessments for the Year 2003. Please remember that personal property continues to be assessed right up until the values are turned over for collection. Don't be alarmed that many of the personal property increases are negative. These preliminary totals are being compared to last year's final totals. I hope you find this information useful. Please feel free to call me if you have any questions. jSincerely Lee Ann Kizzar • • 2003 Millage Levy B Page 6 Washington County Preliminary Summary Report of County Assessments for the Year 2003 School District Totals 2002 2003 NDP % Change % NDP Benton County 7,410,504 7,641 ,490 219,297 3.12 3.79 Elkins 30,382,955 32,1322757 1 ,623,174 5.76 6.97 Farmington 73,692,596 77,975,666 32991 ,367 5.81 6.34 Fayetteville 726,917,272 731 ,815,745 319744,856 0.67 5.42 Greenland 37,8853077 423152,991 1 ,036,145 11 .27 4.35 Lincoln 43,730,267 4595959332 21512,711 4.26 7.46 Prairie Grove 54,421 ,153 5797723428 33116,008 6.16 7.12 Springdale 723,779,728 737,361 ,516 32,270,954 1 .88 5.78 West Fork 33,495,837 343415,640 981 ,131 2.75 3.96 Winslow 10,085,582 10,787,359 372,536 6.96 5.60 Grand Total 1 ,7411 ,800,9711 1 ,777,650,924 77,868,179 2.06 5.69 City Totals 2002 2003 NDP % Change % NDP Elkins 11 ,077,558 12,6809225 13373,019 14.47 13.27 Elm Springs 9,097,960 10,217,766 910,158 12.31 10.47 Farmington 31 ,643,668 32,7893619 13130,490 3.62 4.21 Fayetteville 7139711 ,345 71632443620 32,880,016 0.35 5.79 Goshen 9,454,069 119415,195 19828,977 20.74 18.31 Greenland 65971 ,696 79487,812 413,938 7.40 6.82 Johnson 28,330,308 29,474,409 1 ,669,379 4.04 7.11 Lincoln 14,119,515 13,779,195 319,078 (2.41 ) 2.95 Prairie Grove 23,0389498 24,2359990 19235,520 5.20 6.26 Springdale 527,805,979 532,866,230 209815,853, 0.96 5.25 Tontitown 19,1109348 21 ,650,221 1 ,898,541 13.29 11 .66 West Fork 14,656,874 15,331 ,361 515,633 4.60 4.27 Winslow 21477,551 215359162 0 2.33 0.00 • • 2003 Millage Levy B Page 7 ORDINANCE NO, AN ORDINANCE LEVYING A TAX ON THE REAL AND PERSONAL PROPERTY WITHIN THE CITY OF FAYETTEVILLE, ARKANSAS, FOR THE YEAR 2003 FIXING THE RATE THEREOF AT 0.4 MILS FOR THE FIREMEN' S PENSION AND RELIEF FUND, 0.4 MILS FOR THE POLICEMEN'S PENSION AND RELIEF FUND, 1 .0 MIL FOR THE FAYETTEVILLE CITY LIBRARY; AND 1 .0 MIL FOR GENERAL PURPOSES AND OPERATIONS OF THE CITY; AND CERTIFYING THE SAME TO THE COUNTY CLERK OF WASHINGTON COUNTY, ARKANSAS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That a tax is hereby levied on the real and personal property within the City of Fayetteville, Arkansas, for the year 2003, to be collected in 2004, for the following purposes at the following rates: REAL AND PERSONAL PROPERTY Purpose Levy Fayetteville City Library 1 .0 mils Policemen's Pension Fund 0.4 mils Firemen's Pension Fund 0.4 mils General Purposes of City Government 1 .0 mils TOTAL 2.8 mils Section 2. That the real and personal property tax so levied and the rates provided therefore are hereby certified to the Clerk of Washington County, Arkansas, to be placed in the tax book by the County Clerk and collected in the same manner that the county and school district taxes are collected. Section 3 . The City Clerk is hereby authorized and directed to file certified copies of this ordinance in the office of the County Recorder, County Clerk, County Assessor, and the County Tax Collector for Washington County, Arkansas. Section 4. That the 1 .0 mil levied above for the general purposes of the City Government is almost enough to fund the operation of the new Rupple Road Fire Station. PASSED and APPROVED this the 7th day of October, 2003 . APPROVED: By: DAN COODY, Mayor ATTEST: By: SONDRA SMITH, City Clerk