The URL can be used to link to this page

Home My WebLink Aboutagenda.council.special.201912161 AGENDA CITY COUNCIL SPECIAL MEETING December 16, 2019 3:45 PM, City Council Chambers I.CALL TO ORDER II.ROLL CALL III.RESOLUTION #122, SERIES OF 2019 - 2020 MILL LEVY III.A.Resolution #122, Series of 2019 - 2020 Mill Levy IV.ADJOURN 1 MEMORANDUM TO:Mayor and CityCouncil FROM:Pete Strecker, Finance Director MEETING DATE:December 16, 2019 RE:Action to Amend Resolution #122-2019, 2020 MillLevies REQUEST OF COUNCIL: This memo outlines amended information received from Pitkin County for City Council to consider when adopting the general purpose and Stormwater property tax mill levies for 2020. Adoption of the proposed 2020 mill levy resolution is required to be submitted to Pitkin County no later than December 16, 2019. PREVIOUS COUNCIL ACTION: City Council adopted Resolution #122 on December 10, 2019. However, the documents reflected initial information from Pitkin County Assessor, prior to this amendment. The correct assessed values and impacts to the mill levy for the City are incorporated below. BACKGROUND: The General Fund and Asset Management Plan mill levy is, by law, subject to the TABOR restrictions. TABOR provides that the amount of revenue from property taxes cannot grow by more than the amount attributable to inflation plus new construction – this formula is intended to mitigate excessive fluctuation in total property tax revenue that could otherwise result from assessed valuations rising or falling. As assessed valuations rose in prior years, the City reduced its tax yield to the TABOR limits by implementing a temporary mill levy credit. In years past, the Council also applied the TABOR restriction to the separate Stormwater mill levy. Beginning with the 2018 collection year, Council directed staff to assess the full 0.650 mills going forward, to provide the maximum revenue from this tax source as authorized byvoters. DISCUSSION: For 2020, the general-purpose mill levy is calculated at 4.297 mills, or 1.113 mills below the maximum 5.410 mills. For the stormwater mill levy, based on voter approval given at the inception of this taxing authority, the maximum levy of 0.650 mills will be enforced for 2019. The expected collections from the above mill levies equate to roughly $9.1 million and are closely mirrored by the values assumed in the 2020 Budget that was adopted on November 25,2019. 2 2020 Tax Rate 2020 Temporary Credit 2020 Mill Levy Rate General Property Tax 5.410 1.113 4.297 Stormwater Fund 0.650 0.000 0.650 Total 6.060 1.113 4.947 2019 Assessed Values Updated Mill Levy Rate 2020 Property Tax General Fund $1,830,655,150 2.363 $4,325,838 Asset Management Fund $1,830,655,150 1.934 $3,540,487 Total General Mill Levy 4.297 $7,866,325 Total Stormwater Mill Levy $1,830,655,150 0.650 $1,189,926 Refund/Abatements $1,830,655,150 0.015 $27,460 Total 2020 Property Tax 4.962 $9,083,711 RECOMMENDED ACTION: Staff proposes that the 2020 mill levies be amended and adopted. PROPOSED MOTION: Move to amend and adopt the resolution attached which approves the 2020 mill levies as proposed. CITY MANAGER COMMENTS: ATTACHMENTS: 3 RESOLUTION NO. 122 (SERIES OF 2019) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO SETTING THE 2020 MUNICIPAL MILL LEVY RATES AND CERTIFYING SAME TO THE BOARD OF COUNTY COMMISSIONERS FOR PITKIN COUNTY. WHEREAS,the City Manager, designated by Charter to prepare the budget, has prepared and submitted to the Mayor and City Council the Annual Budget for the City of Aspen, Colorado for the fiscal year beginning January 1, 2020 and ending December 31, 2020; and WHEREAS,the net assessed valuation of the taxable property for the year 2019 in the City of Aspen returned by the County Assessor of Pitkin County was certified on December 5, 2019, is the sum of $1,830,655,150; and WHEREAS, the net assessed valuation of taxable property in Aspen increased approximately 12.8% between 2018 and 2019 assessment years; and WHEREAS, under section 9.9 of its Home Rule Charter, the City of Aspen shall constitute a levy of the property taxes incorporated into its adopted budget; and WHEREAS, a general purpose mill levy has been established at an amount not to exceed 5.410 mills, and is calculated to produce gross ad valorem tax proceeds in the amount of $9,903,844 for collection year 2020; based upon the assessed valuation as determined by the County Assessor, and WHEREAS, a temporary reduction in general property tax collections is desired by the City Council in order to reduce the tax burden on owners of taxable property within the City of Aspen while preserving the City’s ability to increase property taxes to levels previously authorized by City of Aspen voters as described above, and WHEREAS, C.R.S. section 39-1-111.5 authorizes a local government to certify a refund in the form of a temporary property tax credit or a temporary mill levy rate reduction, provided that the certification includes the gross mill levy, the temporary property tax credit or temporary mill levy rate reduction expressed in mill levy equivalents, and the net mill levy and under C.R.S. section 39-1-111.5(4), the Assessor shall, concurrent with delivery of tax warrants to the Treasurer, itemize duly certified temporary property tax credits or temporary mill levy rate reductions in the manner set forth in C.R.S. section 39-1-111.5(2), and under C.R.S. section 39-1-111.5(5) the tax statements shall indicate by footnote which local government mill levies reflect a temporary property tax credit or temporary mill levy rate reduction for the purpose of effecting a refund; and WHEREAS, voter approval on November 6, 2007 established the separate City’s Stormwater Fund mill levy rate at an amount not to exceed 0.650 mils upon each dollar of assessed valuation on all taxable property within the City annually with no date of 4 expiration, permitting collection of property tax revenues in excess of the mill levy limitation provided in Article X, Section 20 or the Colorado Constitution for property tax collection in all future years beginning in 2008; and WHEREAS, said mill levy rate is calculated to produce gross ad valorem tax proceeds in the amount of $1,189,926 for collection year 2020; based upon the net assessed valuation of the City of Aspen as determined by the County Assessor; SECTION 1 NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF ASPEN, Colorado for the purpose of balancing the 2020 budget, and providing a reasonable closing fund balance for said fiscal year, levies the following taxes upon each dollar of the total valuation for assessment of all taxable property within the City of Aspen for the year 2019; that a temporary mill levy rate reduction is authorized; and that the individual mill levies are expressed in terms of the gross mill levy, the temporary mill levy rate reduction shown in mill levy equivalents, and the net mill levy as shown below, which includes a temporary credit of 1.113 mills for the General Purpose mill levy: 2020 Tax Rate 2020 Temporary Credit 2020 Mill Levy Rate General Property Tax 5.410 1.113 4.297 Stormwater Fund 0.650 0.000 0.650 Total 6.060 1.113 4.947 2019 Assessed Valuation Updated Mill Levy Rate 2020 Property Tax General Fund $1,830,655,150 2.363 $4,325,838 Asset Management Fund $1,830,655,150 1.934 $3,540,487 Total General Mill Levy 4.297 $7,866,325 Total Stormwater Mill Levy $1,830,655,150 0.650 $1,189,926 Refund/Abatements $1,830,655,150 0.015 $27,460 Total 2020 Property Tax 4.962 $9,083,711 5 SECTION 2 The City is hereby directed to certify and deliver this Resolution to the Board of County Commissioners for Pitkin County on or before December 16, 2019. ADOPTED THIS 16th day of December 2019, __________________________ Torre, Mayor I, Linda Manning, duly appointed and acting City Clerk of the City of Aspen, Colorado, do hereby certify that the foregoing is a true and correct copy of the Resolution adopted by the City Council at its meeting held on December 16, 2019, which Resolution was adopted subsequent to public hearings on the City of Aspen’s 2020 Municipal Budget and prior to the final day established by law for the certification of the tax levy to Pitkin County, all was required by the Sections 9.8 and 9.9 of the Aspen Home Rule Charter. _______________________ Linda Manning, City Clerk 6 7 8