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Posted: August 25, 2017
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF083017-08

Agenda Item Title:

Approve Resolution 2017-080, A Resolution of Intent to Take the Statutorily Authorized Increase in Property Tax Revenue as Part of the Annual Appropriation Ordinance for the 2018 Fiscal Year

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
08/30/2017
City Council Hearing Date:
09/05/2017
Staff Contact:
Pauline Sumption
Agenda Item Summary:
State law allows the City to increase property tax revenue (outside of growth) only by the amount of the Consumer Price Index (CPI) or 3%, whichever is less. The City is allowed by state law to take a 1% increase in property taxes for 2018, which equals approximately $161,405 in additional property tax revenue. The Council, by resolution, has required a separate action to take the CPI increase. As such, the attached Resolution 2017-080 is the first step of the process to include the CPI in the annual appropriations ordinance.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Taking the CPI would raise approximately $161,405 in revenue, which would amount to a taxpayer cost of approximately $3.20 per $100,000 of property tax valuation on an annual basis. This is based on the latest available total property tax valuation within city limits. It is much more likely to be less than that after the 2017 valuation numbers are calculated.

Recommendations:

Origination Recommendation Action:
Approve