FY2024 Proposed Budget

buying power, led to a much lower than normal increase in taxable valuations for Fiscal Year 2024. As shown by the chart below, Fiscal Year 2023 and 2024 marked the lowest two-year total in taxable valuations growth within the last ten years by a wide margin.

Property Tax Valuations & Percent Change

0.00% 2.00% 4.00% 6.00% 8.00% 10.00%

$0 $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 $3,136, $3,182, $3,421, $3,542, $3,745, $3,923, $4,258, $4,396 $4,375 $4,475 Val % Change 3.32% 1.46% 7.50% 3.55% 5.72% 4.74% 8.54% 3.24% -0.46% 2.28% -2.00% Taxable Val

Taxable Value

1.8%

4.8%

11%

10.4%

11.7%

2-yr. Val % growth:

In light of these financial impacts, the Fiscal Year 2024 budget proposes no change in the property tax levy rate. For the previous eleven years, tax rate reductions were made possible by prudent debt strategies, operational efficiencies, and valuation growth. In particular, reductions in the debt service portion of the tax levy has been achieved through debt restructuring and early bond retirement strategies, fueled by valuation growth. However, our debt service revenue is no longer keeping up with project costs in this hyperinflationary market. If the city’s tax base continues to lag in growth and inflation worsens, the City may need to consider more severe expenditure cuts or increases to the property tax rate to avoid service cuts or increased deferred maintenance.

Property Tax Rate vs. Valuations

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000

15.2 15.4 15.6 15.8 16 16.2 16.4 16.6 16.8 17

The following chart shows a detailed breakdown of the City’s property tax asking for Fiscal Year 2024 compared to the previous year. The emergency levy, employee benefits levy, and debt service levy remained unchanged from Fiscal Year 2023. The total in property tax dollars levied by the City increased slightly over the previous fiscal year due to the residential rollback rate increase, a slight bump in valuations, an increase in Downtown SSMID Levy rates which are FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Tax Value (millions) $3,036 $3,137 $3,183 $3,421 $3,543 $3,745 $3,923 $4,258 $4,396 $4,376 $4,476 Val % Change 2.56% 3.32% 1.46% 7.50% 3.55% 5.72% 4.74% 8.54% 3.24% -0.46% 2.28% Ptax Rate 16.805 16.705 16.651 16.583 16.333 16.183 15.833 15.773 15.673 15.633 15.633 Rate % Change -2.69% -0.60% -0.32% -0.41% -1.51% -0.92% -2.16% -0.38% -1.01% -0.26% 0.00% 15 Taxable Value (in millions)

Property Tax Rate

20