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<br /> <br /> <br />Council Agenda Item Cover <br /> <br />___________________________________________________________________ <br /> <br /> <br /> <br />MEETING DATE: <br /> August 20, 2007 <br /> <br />AGENDA ITEM TITLE: <br /> Annual Property Tax Rates <br /> <br />AGENDA SECTION: <br /> Public Hearing and New Business <br /> <br />CAN THIS ITEM BE RESCHEDULED? : <br />No <br /> <br />BACKGROUND REVIEW: <br />Each year the City must approve property tax rates which are then <br />submitted to St. Louis County for billing. Calendar year 2007 was a reassessment year and the <br />City is only allowed to receive additional revenue of the CPI (2.6%) and for new construction. <br />Since total assessed values increased substantially this year, the City is required to roll back <br />rates. Also this year, the Olive East TIF ended and the assessed valuation of those properties <br />were added as new construction and will generate new revenue for the City which has already <br />been included in the budget. Please see the attached schedules of the new and historical rates <br />and the published hearing notice. <br /> <br />For several years the City has not needed to contribute to the Police and Fire pension plan but <br />the surplus funds have gradually dwindled. We recently received the actuarial report for the <br />pension plan and both the actuary and the pension board recommend re-establishing the pension <br />property tax this year. The Pension Board recommended amortizing the surplus over 15-years <br />and re-establishing the property rate for the amount of the necessary contribution. After <br />discussing this issue with the City Manager, both she and I believe that addressing this issue <br />once (this year) and moving the pension levy to the maximum rate, similar to how we handle the <br />other City tax rates, would be the appropriate action at this time. This requires one decision now <br />and does not leave the burden of this issue for a future council. The other option would be to <br />begin the levy at a lower rate now and keep increasing the rate over the next several years until <br />the maximum is reached. Adding the pension levy at the maximum rate increases the total City <br />levy as follows: <br /> <br />2006 Total Property Tax Levy $0.906 <br />2007 Total Proposed Property Tax Levy $0.915 <br /> <br />The final issue is that the County has not sent out final assessed valuations after consideration of <br />all tax protests. The rates submitted to you at this public hearing are draft rates and are subject <br />to minimal change. At the September 4, 2007 Council meeting, the rates will need to be amended <br />(if necessary) and approved. <br />G-1-a <br />August 20, 2007 <br /> <br />