Annual Property Tax Levy Rate Certification Finance, Governance, and Ethics Committee August 21, 2013

Property Tax Levy Property tax levy rates are set at time of budget adoption Ordinance No set property tax levy rates in connection with the FY Adopted Budget Every summer, County assessors provide revised assessed valuations for real and personal property Revised data is used to recalculate estimated property tax revenue and associated levy rates – Levy certification process 2

Levy Certification Process Calculations and authorizing ordinances must be to County clerks no later than September 1 County clerks forward levy calculations for all jurisdictions to the State Auditor’s Office (SAO) SAO “certifies” maximum levy rates for all jurisdictions and sends notices back to County clerks Jurisdictions use certified levy rates for November 1 real and personal property tax billing 3

Goals for Levy Certification Ensure jurisdictions can maintain expected revenue levels despite changes in assessed values – No revenue windfall or shortfall – Hancock Amendment Provide the lesser of CPI or AV growth Allow additional credit for new construction Continue to support operations 4

Components of the Levy Rate General Purpose levy Health Temporary levy Health levy Museum levy Debt levy 5

KCMO Assessed Valuation FY FY * Real Property$5,096,895,489$5,084,524,056 Railroad and Utility Real Property $243,302,474$263,635,139 Personal Property$1,338,367,937$1,355,508,656 Railroad and Utility Personal Property $113,309,983$115,942,411 TOTAL$6,791,875,883$6,819,610,262 6 * New construction value = $60,080,334

Change in Combined Levy Rate Levy Type Adopted FY Rate Proposed FY Rate Increase/ (Decrease) General Health Health (Temp) Museum Debt TOTAL

Levy History FY 10FY 11FY 12FY 13 Proposed FY 14 General Health Health (Temp) Museum Debt TOTAL

Revised FY Revenue Estimate* (Assumes levy increase) Levy Type Adopted Budget Revised Estimate Increase/ Decrease General $48,557,602$48,339,733($217,869) Health $34,136,920$33,879,824($257,097) Health (Temp) $15,020,245$14,907,122($113,123) Museum $1,338,167$1,341,641$3,474 Debt $9,558,338$9,486,351($71,987) TOTAL $108,611,272$107,954,670($656,602) 9 *Subject to application of final billing numbers, collection rates, etc.

Effect of Combined Levy Change on Property Owner Owner of a home with a $50,000 market value and automobiles with a combined market value of $10,000 would realize a $0.73 increase in annual property taxes due to the City Owner of a home with a $100,000 market value and automobiles with a combined market value of $15,000 would realize a $1.37 increase in annual property taxes due to the City Owner of a home with a $200,000 market value and automobiles with a combined market value of $35,000 would realize a $2.83 increase in annual property taxes due to the City 10

Effect of Combined Levy Change and Removal of Land Levies Parkway, Trafficway, and Boulevard* fees set to zero Owner of a home with a $50,000 market value and automobiles with a combined market value of $10,000 would realize a ($23.02) decrease in annual property taxes due to the City Owner of a home with a $100,000 market value and automobiles with a combined market value of $15,000 would realize a ($46.13) decrease in annual property taxes due to the City Owner of a home with a $200,000 market value and automobiles with a combined market value of $35,000 would realize a ($92.17) decrease in annual property taxes due to the City 11 *Boulevard fees are assessed only to properties abutting a designated boulevard

Committee Substitute for Ordinance No Amends Ordinance No Sets property tax levy rates equal to the maximum allowable rate 12