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<br /> <br /> <br /> <br />Council Agenda Item Cover <br /> <br />________________________________________________________________ <br />___ <br /> <br /> <br /> <br />MEETING DATE: <br /> September 4, 2007 <br /> <br />AGENDA ITEM TITLE: <br /> Annual Property Tax Rates <br /> <br />AGENDA SECTION: <br /> Unfinished 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 <br />are then submitted to St. Louis County for billing. Calendar year 2007 was a <br />reassessment year and the City is only allowed to receive additional revenue of the <br />Consumer Price Indes (CPI) and for new construction. Since University City’s property <br />values increased substantially this year, and this is good news, the City is required to roll <br />back rates. The lower rates match the previous year’s revenue, plus the 2.6% CPI and <br />increased revenue for new construction. Also this year the Olive East TIF ended and the <br />value of those properties were added as new construction and will generate new revenue <br />for the City which has already been included in the budget. <br /> <br />The new proposed rates on the attached schedules reflect final Board of Equalization <br />changes to the assessed values. These rates have also now been reviewed by the State <br />Auditor’s Office. The Public Hearing and first reading on the draft rates occurred August <br />20. These ordinances will now need to be amended with the final rates. Language on <br />making these amendments appears at the end of this summary. <br /> <br />For several years the City has not needed to contribute to the Police and Fire pension <br />plan but the surplus funds have gradually dwindled. We recently received the actuarial <br />report for the pension plan and both the actuary and the pension board recommend re- <br />establishing the pension property tax this year. The Pension Board recommended <br />amortizing the surplus over 15 years and re-establishing the property tax rate for the <br />amount of the necessary contribution. After discussing this issue with the Deputy City <br />Manager, we believe that addressing this issue once (this year) and moving the pension <br />levy to the maximum rate ($0.144 cents for residential properties) similarly to how we <br />handle the other City tax rates, would be the appropriate action at this time. Even at the <br />maximum rate, there will still be a time in the future when voters would need to be asked <br />September 4, 2007 <br />J-5,6,7-a <br /> <br />