Scottsdale City Council to weigh lower property tax levy

Scottsdale City Council (File photo)

Scottsdale City Council (File photo)

Proposed property taxes in Scottsdale are set to be levied as Scottsdale City Council is expected to render a vote on the matter.

If council approves the levy, the property taxes for fiscal year 2015-16 would be $3.83 million less than the previous fiscal year, according to a June 2 staff report.

The meeting is at 5 p.m. Tuesday, June 2 at City Hall, 3939 N. Drinkwater Blvd.

The 2015-16 proposed tax rate would be a combined $1.1537 per $100 of assessed value, city officials say. The combined proposed rate is below the limit of $1.50, a financial policy which is set by the city.  In the fiscal year of 2014-15 the rate was $1.2449, about nine cents higher than the proposed rate for next year, records show. If a property is valued at $100,000, the property owner would owe approximately $115.37 in property taxes next fiscal year.

The value of properties is determined by the Maricopa County Assessor’s Office.

The property tax is broken up into primary and secondary levies. The primary property tax levy, also known as the General Fund and self-insurance fund revenue, supports the police department, fire protection, and the operation and maintenance of parks and libraries.

The proposed primary property tax levy is a decrease of $500,000 from last year. The secondary levy is also known as the unlimited tax levy, which means the municipality can levy whatever amount it needs to in order to pay general obligation debt. Although the levy is seemingly unlimited, the Arizona Constitution can limit the issuance of new bonds.

The 2015-16 proposed secondary tax is over $3.3 million dollars lower than the 2014-15 secondary tax. Last year the rate was $0.6869 while the proposed rate is $0.6244.

All of the proposed $32,227,765 secondary property tax revenue will go to the Debt Service Fund.

“About 14 cents of every dollar in property taxes paid by Scottsdale property owners goes to city government and city General Obligation debt repayment, and the remainder goes to public schools, the county, community colleges and various special districts,” the city staff report states.

The meeting will be a regular property tax hearing because the proposed levy does not exceed the previous year’s levy. If a proposal exceeds the previous year’s levy, a Truth in Taxation hearing is required, state law stipulates.

At tonight’s meeting the city council will consider taxpayer input and make a motion to approve a levy for the proposed taxes. If the proposed taxes are not approved, the council may approve a lesser tax levy at the June 16th meeting.

Scottsdale Independent Sports Correspondent Justin Maskulinski can be contacted at jmaskulinski@newszap.com. Follow him on twitter at twitter.com/Maskulinski.

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