CITY OF COLOGNE FINA L TA X LEV Y PA YA BLE 2 0 1 9 INTRODUCTION T - PowerPoint PPT Presentation

CITY OF COLOGNE FINA L TA X LEV Y PA YA BLE 2 0 1 9

INTRODUCTION • T he ta x le vy pa ya b le is a n instrume nt tha t the City use s a s a re ve nue so urc e to pa y fo r City se rvic e s, like pub lic wo rks, pa rks, a nd a dministra tive se rvic e s. Pro pe rty va lue s in the City a re use d to de te rmine the ta x c a pa c ity, whic h is use d a s a g e ne ra l g uide fo r ho w muc h a City mig ht le vy. T he le vy is a lso use d to pa y fo r de b t se rvic e funds. Ge ne ra lly, the le vy is no t to b e use d to c re a te re ve nue fo r e nte rprise funds suc h a s the se we r fund, wa te r fund, a nd sto rm se we r fund. Re ve nue fo r the se funds a re inste a d c re a te d thro ug h use r fe e s.

BACKGROUND • T he fina l ta x le vy pa ya b le in 2019 fo r the City o f Co lo g ne is due to the Co unty no la te r tha n De c e mb e r 28, 2018. T he ta x le vy fo r the City o f Co lo g ne o ve r the pa st fe w ye a rs is liste d b e lo w: • 2018: $1,242,746 (5.6% inc re a se o ve r 2017) • 2017: $1,176,349 (5.7% inc re a se o ve r 2016) • 2016: $1,113,000 (6% inc re a se o ve r 2015)

BACKGROUND CONT. • T he ta xa b le ma rke t va lue o f Co lo g ne fo r the fina l 2018 le vy wa s $151,579,300. T he e stima te d ta xa b le ma rke t va lue fo r 2019 is $176,212,100. • E stima te d ma rke t va lue s fo r 2019 a re b a se d o ff the sta tus o f pro pe rtie s o n Ja nua ry 2, 2018. I n the time sinc e the se e stima te s wo uld ha ve b e e n c a lc ula te d, Co lo g ne ha s ha d 19 ne w ho me pe rmits, o f whic h ne a rly a ll a re b e ing b uilt o r a re c o mple te d.

BACKGROUND CONT. • T he City’ s ta x ra te de te rmine s ho w muc h yo u will pa y in City ta xe s in a g ive n ye a r. T he ta x ra te is a ra tio o f the a mo unt o f ta xe s the City le vie s ve rsus the ta x c a pa c ity fo r the City. T he ta x ra te fo r the pre vio us thre e ye a rs a re a s fo llo ws: • 2018: 67.951% • 2017: 69.702% • 2016: 70.962%

TAX RATE 2013-2019 F inal T ax Rate 0.9 0.85 0.8 F ina l T a x Ra te 0.75 0.7 0.65 0.6 2013 2014 2015 2016 2017 2018 2019

• T he City po rtio n o f yo ur ta x b ill is de te rmine d b y ta king the ta xa b le ma rke t va lue o f yo ur ho me , minus the ho me ste a d e xc e ptio n, a nd multiplying it b y the ta x ra te . E X:

HOW TAX RATE AFFECTS TAXES PAID City ta x a mo unt pa ya b le is c a lc ula te d b y ta king the ta xa b le va lue time s the c la ss ra te (.01), multiplie d b y the ta x ra te (70.962% in 2016.) $109,000*.01=$1,090 $1,090*70.962%=$773.49

LEVY INCREASE 4.9%

LEVY INCREASE 4.9% • At a 4.9% inc re a se to the le vy fro m 2018, the City’ s de b t se rvic e c o mmitme nts wo uld b e c o mple te ly funde d. I nc lude d in the le vy is the fina l pa yme nt to the Co lo g ne F ire De pa rtme nt Re lie f Asso c ia tio n to fully fund the pe nsio n fund a nd a dditio na l ma inte na nc e funds fo r the F ire De pa rtme nt. Also inc lude d a re the la st o f the se c urity upg ra de s fo r the Co mmunity Ce nte r a s we ll a s funds to po te ntia lly b e use d to b e g in re pla c ing e q uipme nt in the F itne ss Ce nte r.

LEVY INCREASE 4.9% • T he c o ntra c tua l se rvic e s po rtio n o f the stre e ts fund is still ma inta ining its c urre nt b udg e t a mo unt o f $115,000. Histo ric a lly, the City ha s no t use d the full a mo unt, b ut ha s b udg e te d hig h e no ug h to c o ve r po te ntia l issue s. With the upc o ming impro ve me nt pro je c t, this fund will like ly re ma in mo stly unto uc he d. Ho we ve r, o ne po te ntia l re a so n fo r le a ving the b udg e te d a mo unt the sa me is to ta ke wha te ve r re ma ins fro m summe r po tho le re pa irs a nd mo ve the m to a n a ssig ne d stre e t fund in the City’ s Ge ne ra l L e dg e r to he lp o ffse t future impro ve me nt pro je c t c o sts.

GENERAL FUND IMPACT • T he g e ne ra l fund e xpe nditure b udg e t fo r a 4.9% inc re a se in the le vy is $1,287,751. • F o r c o mpa riso n, the g e ne ra l fund b udg e ts in pre vio us ye a rs: • 2018: $1,196,282 • 2017: $1,248,223 • 2016: $1,301,973

GENERAL FUND IMPACT • Ge ne ra l fund re ve nue so urc e s a re ma de up pre do mina ntly b y the le vy a nd se ve ra l b uilding pe rmit a c c o unts. T he City o f Co lo g ne ha s histo ric a lly b e e n ve ry c a utio us with its fo re c a sts o n ho me s fo r future ye a rs. • T he b udg e te d a mo unt o f ho me s to b e b uilt fo r 2019 is 15, b a se d o ff o f the numb e r o f lo ts c urre ntly re ma ining to b uilt.

GENERAL FUND BREAKDOWN Bre a kdown by De pa rtme nt Administra tive 27% Stre e ts 26% Pa rks 8% Co mmunity Pub lic Sa fe ty Ce nte r 29% 10%

CONCLUSION • T he City o f Co lo g ne is in a po sitio n to a ppro ve a minima l le vy inc re a se tha t will simply ke e p a ll o f the o pe ra tio ns funds le ve l while ke e ping ro o m fo r upc o ming pro je c ts a nd de b t issua nc e s. • F o r the la st se ve ra l ye a rs the City ha s c o nsiste ntly lo we re d its ta x b urde n o n its re side nts.