Agenda

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ARF- 6065

Public Hearing 2. B.

Special BOS Meeting

Meeting Date:	07/14/2020
Submitted For:	Mary Springer	Submitted By:	Marian Sheppard, Clerk of the Board
Department:	Finance

Information

Request/Subject

Truth in Taxation Hearing (TNT) on the Proposed Fiscal Year 2020-2021 Property Tax Levy for Gila County.

Background Information

The Gila County Board of Supervisors has published a notice of hearing to notify property taxpayers that the proposed primary property tax levy for FY 2021, excluding the amount attributable to new construction and any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides, is greater than the amount levied for 2020. Per Arizona Revised Statutes (A.R.S.) § 42-17107, a notice of hearing was published in the June 24th and July 1st editions of the Arizona Silver Belt newspaper, the official newspaper of the County for the first six months of 2020. It was also published in the June 30th and July 7th editions of the Payson Roundup newspaper, the official newspaper of the County for FY 2020-2021. The Board also issued a press release containing the TNT notice.

Evaluation

By February 10, 2020, as required by the A.R.S., the Gila County Assessor transmitted to the Finance Department the total net primary assessed value of all properties in Gila County. The increases in revenue is attributable to new construction $806,592 and increased Assessor valuations of $413,218.

At the current primary property rate of $4.19 per $100 of assessed value, the property tax levy for FY 2020 is projected to be $413,218 or 1.90% greater than the maximum tax rate without a TNT public hearing. The proposed Tentative Budget for FY 2021 is balanced utilizing this additional revenue and the tax rate of $4.19 per $100 of assessed value remains unchanged for this budget year.

The Board of Supervisors has scheduled this TNT public hearing on this date to obtain comments from interested citizens.

Conclusion

For the last years, the Gila County Board of Supervisors has faithfully refrained from increasing the $4.19 tax rate even under severe conditions imposed by state unfunded mandates and county fund sweeps by the state. In addition, declining net primary assessed values of property over the last years have reduced the property tax levy as much as 10% each year. The Elected Officials and the Board of Supervisors have been diligent in making operational adjustments and budget cuts to work within the reduced revenue.

It is important that the Board maintain the current $4.19 tax rate and allow the increase in net assessed value to increase the available revenue to maintain county operations such a the Sheriff's Office, the Courts, the County Attorney, Public Works, all Elected Official Offices and appointed departments.

Per A.R.S. § 42-17107(A)(5), within 3 days after the TNT hearing, the Clerk of the Board on behalf of the Board of Supervisors shall mail a copy of the TNT notice, a statement of its publication or mailing and the result of the Board's vote under paragraph 4 of this subsection to the Property Tax Oversight Commission.

Recommendation

Staff recommends that the Board conduct the public hearing and receive all comment from citizens regarding maintaining the current tax rate of $4.19 per $100 of assessed value and that any motion to adopt an increased levy be voted on by a roll call vote of Board members.

Suggested Motion

Convene a Truth in Taxation (TNT) public hearing to hear from citizens on the proposed primary property tax levy for FY 2021, excluding amounts that are attributable to new construction and any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides, that is $413,218 greater than the allowable levy without a TNT public hearing; and approve the proposed primary property tax levy for FY 2021. (Roll Call Vote) (Mary Springer)

Attachments
TNT Notice for Gila County