07-05-2022 CC RPT 18 - Laserfiche WebLink

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Annual Tax Rate Fire Bonds2 funds noted in the first resolution supplemental tax rate to an amount no greater than $12 per $100,000 of assessed valuation and constrains the term of the tax rate to a period of not more than 30 years. DISCUSSION: The amount of debt service for calendar year 2023 is $1,640,000 principal and $185,900 interest for a total annual amount of $1,825,900. However, staff recommends using $300,000 in surplus funds from the prior year levy to pay a portion of the FY 2023 debt service. Based on these figures, the amount of taxes to levy in the 2022-2023 tax year is $1,525,900. assessed valuation provided by the County Auditor-Controller. The assessed value used for setting the Fiscal Year 2022-2023 rate anticipates 3.25% growth in assessed value from the actual prior-year valuation. This is a conservative figure as the actual increase in valuation for Riverside County has averaged greater than 5% for the past three fiscal years. At the end of Fiscal Year 2023, Finance Department staff will compare actual collections against this projection and will credit any surplus funds toward the Based on a projected assessed valuation increase of 3.25% from Fiscal Year 2021-2022, the estimated assessed value for Fiscal Year 2022-2023 is $33,887,522,055. Dividing the amount needed for the 2022-2023 tax levy by the estimated assessed value equates to a tax rate of $.00450 per $100 of assessed value, or $4.50 per $100,000 of assessed value. This is well below STRATEGIC PLAN ALIGNMENT: This item contributes to Strategic Priority No. 5 High Performing Government and Goal No. 5.3 Enhance communication and collaboration with community members, to improve transparency, build public trust, and encourage shared decision-making. This item aligns with each of the five Cross-Cutting Threads as follows: 1. Community Trust The 2003 General Obligation Bonds were issued in response to the City of Riverside voters who approved Measure G in 2003. Bonds were issued to fund the replacement of inadequate and outdated fire facilities to better serve the community. Each year, the Finance Department reviews the actual prior-year valuation from the County and uses surplus funds, if any, towards the upcoming debt obligation, ensuring that the lowest tax rate is used on the property tax roll. 2. Equity The bonds were issued in 2004 as a 20-year debt obligation. This method of payment allows the cost of the facilities to be spread out over 20 years and amongst those who primarily benefit from it. 3. Fiscal Responsibility When Measure G was approved in 2003, the maximum allowable tax rate was set at $12 per $100,000 of assessed valuation each year. The City surplus received to offset the upcoming levy total. This confirms that the lowest tax rate is used, while also ensuring that debt service payments are met. 4. Innovation The issuance of bonds is an innovative way to finance infrastructure and