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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☒ Safe & Prosperous |
☐ Motion |
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Finance |
☒ Active & Appealing |
☐ Resolution |
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☒ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☒ Connected & Engaged |
☐ Ordinance - Adoption |
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Administration |
☒ Unique & Creative |
☒ Public Hearing |
TITLE: t
Public Hearing: Truth in Taxation, Main Street Mall and Off-Street Parking Maintenance District No. 1, Levy for 12 Municipal Improvement Districts, and Final Budget Adoption for Fiscal Year 2025
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SUMMARY RECOMMENDATION: Summary Recommendation
Conduct a combined public hearing on the proposed City of Yuma primary property tax levy (Truth-in-Taxation); the Main Street Mall and Off-Street Parking Maintenance District No. 1 expenditures and levy, as well as for the 12 Municipal Improvement Districts (MID) and the proposed revenues and expenditures (budget) for Fiscal Year 2025 pursuant to A.R.S. § 42-17104.
The City of Yuma expenditure budget for Fiscal Year 2025 in the amount of $521,167,546 which is comprised of a Capital Improvement Program Budget of $222,418,219; 12 Maintenance Improvement Districts combined for $672,094 and an Operating Expenditure Budget of $298,077,233; including Governmental and Enterprise operations. Following the close of the public hearing, City Council may open a special meeting to adopt the proposed budget resolution, which includes a 3% increase in solid waste fees. (Administration/Finance) (Jay Simonton/Doug Allen)
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STRATEGIC OUTCOME:
Both the Public Hearings and the final adoption by resolution of the Fiscal Year 2025 Annual Budget provide the financial framework for the City Council’s vision and supports all five of City Council’s strategic outcomes across all departments and funds at the City.
REPORT:
Pursuant to the Arizona Revised Statutes, a public hearing will be opened to hear community comments on the City of Yuma Fiscal Year 2025 tentative budget and tax levy, the Downtown Mall Maintenance District, and the 12 Municipal Improvement District expenditures and levies.
Overall, assessed values have increased 4.6% compared to last year FY 2024. This includes an increase of 3.1% to base properties and a 1.5% increase associated with new construction for FY 2025.
The primary tax rate is proposed at the maximum allowed rate of $2.1526 which is more than the FY 2024 primary property tax rate of $2.1321. The FY2025 base levy (excluding new construction) is $636,201 (4.0%) more than the total FY2024 levy. This will result in a total increase in General Fund revenues of $875,852 including both the base and new construction activity.
If the proposed primary tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied in the preceding tax year, a truth in taxation hearing must be held under requirements in Arizona Revised Statutes § 42-17107. The City combines the truth in taxation hearing with the budget hearing.
The Downtown Mall Maintenance District was established in 1969 and the levy for FY 2024 was $151,704 with a rate of $4.2500. The City is proposing to increase the levy to $156,109 with an associated rate of $4.2750 in FY2025. The City’s financial support for Downtown Mall Maintenance, in addition to the levy, is approximately 54%, which the City contributes from the General Fund, with 100% being for general operations and no one-time capital contribution for FY 2025.
In accordance with the property owners’ petitions, the City has established 12 active MIDs for FY 2025 for the maintenance of landscape improvements paid through the levy and collection of assessments on the assessed value of the real and personal property within the MID. The 12 active MIDs tax basis is ad valorem, meaning the costs of the MID are shared based on the property values in the district. To avoid large tax spikes, new MIDs typically begin with a temporary loan from the City. To not over burden the early home buyers, this loan is repaid over time via the MID. As more homes are purchased, the tax base grows to cover the costs of the district.
A summary of the proposed rate, levy, and expenditures each of the 12 MIDs is shown on the following table:
The City Administrator and City staff, after receiving City Council input through several vision and goal setting sessions throughout Fiscal Years 2022, 2023 and 2024, prepared the Fiscal Year 2025 Proposed Annual Budget for City Council’s consideration. City Council approved the tentative budget by motion on May 15, 2024, which set the ceiling on expenditures for FY 2025 and there have been no changes. Following the close of the public hearing, the City Council may open a special meeting to adopt the Fiscal Year 2025 Annual Budget of $521,167,546 by resolution with accompanying schedules, which includes a line item 3% solid waste fee increase.
The FY 2025 budget is comprised of the following amounts:
Adoption of the tax rate and tax levy ordinance is scheduled for the June 26, 2024 regular City Council meeting at 5:30 p.m. in the City Council chambers located at City Hall, One City Plaza, Yuma, Arizona. In order to adopt the ordinance, it must be separately introduced following the adoption of the Fiscal Year 2025 Annual Budget by resolution. A separate tax rate and tax levy ordinance introduction is included in this June 5, 2024 Agenda.
Notice of the Public hearings, including the improvement districts and the Main Street Mall and Off-Street Parking Maintenance District No. 1, was published in the Yuma Sun on May 21, 2024, and May 28, 2024, as part of the statutorily required Budget Financial Schedules. The Fiscal Year 2025 Proposed Annual Budget has been available online, in the City Clerk’s office, and at the public library located at 2951 S. 21st Street since April 30, 2024. The proposed budget has been reviewed by the City Administrator, City staff, and City Council. The end result is a Fiscal Year 2025 financial planning document incorporating the vision and strategic outcomes established by the City Council.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING: ACCOUNT/FUND #/CIP |
TOTAL $ 0.00
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To total; right click number & choose “Update Field” |
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FISCAL IMPACT STATEMENT:
N/A
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
None
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☐ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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John D. Simonton |
05/28/2024 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
05/28/2024 |