1. Annual Property Tax Levy Rate Certification Finance, Governance, and Ethics Committee August 17, 2011

2. Property Tax Levy Property tax levy rates are set at time of budget adoption Ordinance 110163 set property tax levy rates in connection with the FY 2011-12 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

3. 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

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

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

6. KCMO Assessed Valuation* FY 2010-11FY 2011-12 Real Property$5,461,360,665$5,340,199,157 Railroad and Utility Real Property $197,020,269$243,262,413 Personal Property$1,359,367,432$1,359,517,643 Railroad and Utility Personal Property $113,309,981$104,002,060 TOTAL$7,131,058,347$7,046,981,273 6 *Data derived from 2011 property tax certification worksheet.

7. Change in Combined Levy Rate Levy Type Adopted FY 2011-12 Rate Proposed FY 2011-12 Rate Delta General0.66630.67860.0123 Health0.48460.49350.0089 Health (Temp)0.2200 0.0000 Museum0.01850.01880.0003 Debt0.1400 0.0000 TOTAL1.52941.55090.0215 7

8. Levy History FY 08FY 09FY 10FY 11 Proposed FY 12 Statutory Maximum General0.63200.6342 0.66630.67861.0000 Health0.45970.4613 0.48460.49351.0000 Health (Temp) 0.21310.2138 0.2200 Combined with Health Museum0.01840.0185 0.01880.1000 Debt*0.1400 0.7610 TOTAL1.46321.4678 1.52941.55092.8610 8 * Maximum debt levy is based on debt service requirements for outstanding general obligation bonds

9. Revised FY 2011-12 Revenue Estimate* (Assumes levy increase) Levy Type Adopted Budget Revised EstimateDelta General$48,563,891$48,473,978($89,913) Health$35,435,241$35,255,125($180,117) Health (Temp)$15,920,181$15,715,550($204,631) Museum$1,348,390$1,345,893($2,497) Debt$10,204,029$10,000,804($203,225) TOTAL$111,471,732$110,791,350($680,382) 9 *Subject to application of final billing numbers, collection rates, etc.

10. Affect of Combined Levy Change on Property Owner Owner of a home with a $100,000 market value and automobiles with a combined market value of $15,000 would realize a $5.15 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 $10.66 increase in annual property taxes due to the City 10

11. Committee Substitute for Ordinance 110594 Amends Ordinance 110163 Sets property tax levy rates equal to the maximum allowable rate 11