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HomeMy WebLinkAboutResolution No. 2020-026 A Resolution of the City of Arlington Establishing the Intent of the City Council to Reduce a Portion of the City's 2022 Regular Property Tax Levy in the Event of Annexation.. RESOLUTION NO. 2020—026 A RESOLUTION OF THE CITY OF ARLINGTON ESTABLISHING THE INTENT OF THE CITY COUNCIL TO REDUCE A PORTION OF THE CITY'S 2022 REGULAR PROPERTY TAX LEVY IN THE EVENT OF ANNEXATION TO THE NORTH COUNTY REGIONAL FIRE AUTHORITY WHEREAS, the City of Arlington has been discussing the opportunity to annex the city's fire department into the North County Regional Fire Authority; and WHEREAS, annexation is more cost effective for Arlington taxpayers; and WHEREAS, under annexation, beginning January 1, 2022, property owners would pay a dedicated fire and EMS levy directly to the NCRFA and Arlington would repeal the EMS levy, the ambulance utility fee and reduce its general property tax levy; and WHEREAS, on June 1, 2020, a council retreat was held to review and discuss financial scenarios to minimize impact to the Arlington taxpayer while retaining a portion of property tax revenue to pay for other city services such as parks, trails, roads, planning and/or facilities; and WHEREAS, the financial analysis showed that more than 54% of taxpayers would pay the same or save money if the city retained a levy rate of approximately$35; and WHEREAS, a levy rate of approximately$35 would allow the city to retain about $400,000 in property tax revenue that could be used for parks, trails, roads, planning and/or facilities; and WHEREAS, the city does not establish or set a specific levy rate, levy rates are determined by a combination of assessed valuation and levy amount (revenue) of the taxing district; and WHEREAS, the city council will be required to adopt a resolution before November 30, 2021 to establish the 2022 general property tax levy amount which combined with the 2021 assessed valuations may adjust the final levy rate for 2022; and WHEREAS, the city's 2021/2022 biennial budget was adopted on November 16, 2020 and reflects revenues and expenditures as if annexation was not successful; if annexation is approved by the voters,the city will amend its 2022 budget to reflect the reduction in revenue and expenditures consistent with a general property tax levy rate of approximately $35; and WHEREAS, the City Council wishes to express its intentions to the voters of how it would act with respect to its tax levy if the voters approve the annexation of the City into North County Regional Fire Authority, with respect to its tax levy; RESOLUTION NO. 2020-026 1 NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Arlington, as follows: In the event the voters approve the annexation to North County Regional Fire Authority at the February 9, 2021 election, the City Council intends to amend the 2022 budget to levy its 2022 general property tax levy in an amount that results in an approximate levy rate of$.75, and to use any excess levy amounts to pay for city services which may include; parks, trails, roads, planning and/or facilities. PASSED and APPROVED by the Mayor and City Council of the City of Arlington, at a regular meeting held on the 71h day of December, 2020. Barbara Tolbert, Mayor ATTEST: Aex,�4-1- 7Z�- A-irlszh-, Wendy Van der Meersche, City Clerk APPROVED AS TO FORM: Stev eiffle i y orney RESOLUTION NO. 2020-026 2