FY25 Proposed Budget

Fiscal Year 2025 is a positive step forward, it falls well short of needed levels of growth that were experienced in the previous Fiscal Years of 2015, 2017, 2019 and 2021. As shown by the following chart, Fiscal Year 2023 and 2024 marked the lowest two-year total in taxable valuations growth within the last ten years by a wide margin followed by a modest increase in FY Year 2025.

Total Property Tax Valuations & Percent Change over Prior Fiscal Year

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 $5,000,000,000

Taxable Value

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Taxable Value $3,182, $3,421, $3,542, $3,745, $3,923, $4,258, $4,396 $4,375 $4,360 $4,517 Val % Change 1.46% 7.50% 3.55% 5.72% 4.74% 8.54% 3.24% -0.46% -0.36% 3.61% -2.00%

In light of these financial impacts and for the second consecutive year, the Fiscal Year 2025 budget includes no change in the overall property tax levy rate. For the previous eleven consecutive years ending in Fiscal Year 2023, tax rate reductions were made possible by prudent debt strategies, operational efficiencies, and valuation growth. Notably, reductions in the debt service portion of the tax levy had 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 and in Fiscal Year 2025 the debt service rate is increased slightly to help maintain the investment impact of our Capital Improvement Program. FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Tax Value (millions) $3,183 $3,421 $3,543 $3,745 $3,923 $4,258 $4,396 $4,376 $4,360 $4,517 Val % Change 1.46% 7.50% 3.55% 5.72% 4.74% 8.54% 3.24% -0.46% -0.36% 3.61% Ptax Rate 16.651 16.583 16.333 16.183 15.833 15.773 15.673 15.633 15.633 15.633 Rate % Change -0.32% -0.41% -1.51% -0.92% -2.16% -0.38% -1.01% -0.26% 0.00% 0.00% 15 15.5 16 16.5 17 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Taxable Value (in millions) Property Tax Rate vs. Valuations The following chart shows a detailed breakdown of the City’s property tax asking for Fiscal Year 2025 compared to the previous year. The total in property tax dollars levied by the City increases by 4.8% in Fiscal Year 2025. Total property revenue is projected to be $69.5 million. This revenue source provides approximately two-thirds of total revenue, excluding transfers, in Fiscal Year 2025. The following table shows a decrease in the General tax levy with offsetting increases in the Tort Liability and Debt Service levies.

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