Annual Property Tax Levy Certification Finance and Audit Committee August 20, 2008

Steps to Levy Certification County assessors provide assessed valuations for real and personal property County assessors provide assessed valuations for real and personal property City staff prepares calculations to determine maximum property tax levy rates City staff prepares calculations to determine maximum property tax levy rates City Council sets levy rates by ordinance City Council sets levy rates by ordinance City staff forwards calculations plus authorizing ordinance to County clerks by September 1st City staff forwards calculations plus authorizing ordinance to County clerks by September 1st

Steps to Levy Certification County clerks forward levy calculations for all jurisdictions to the State Auditor’s Office (SAO) 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 SAO “certifies” maximum levy rates for all jurisdictions and sends notices back to County clerks Jurisdictions use certified levy rates for November 1 st real and personal property tax billing Jurisdictions use certified levy rates for November 1 st real and personal property tax billing

Goals for Levy Certification Ensure no revenue windfall due to reassessment Ensure no revenue windfall due to reassessment Provide the lesser of CPI or AV growth Provide the lesser of CPI or AV growth Allow additional credit for new construction and changes in personal property valuation Allow additional credit for new construction and changes in personal property valuation Equalize property tax burden across all property owners Equalize property tax burden across all property owners Continue to support operations Continue to support operations

KCMO Assessed Valuation* FY 08 FY 09 Real Estate 5,512,212,5855,599,824,314 RR Real 216,503,146209,062,911 Personal1,435,441,2061,458,898,316 RR Personal 119,757,708119,778,467 TOTAL7,283,914,6457,387,564,008 *Data derived from 2008 property tax certification worksheet.

Growth in Assessed Valuation Fiscal Year Growth Rate % % % 2008*9.96% 2009*1.42% *Utilizes data from current-year certification, all other figures from KCMO CAFR.

Proposed Levy Rates for FY 09 Levy Type Maximum Rate Proposed Rate General Health Health (Temp.) Museum Debt TOTAL

Levy History FY 05 FY 06 FY 07 FY 08 FY 09 General Health Health (Temp.) N/A Museum Debt TOTAL

Change in Combined Levy Rate Levy Type FY 08 Rate Proposed FY 09 Rate Delta General Health Health (Temp.) Museum Debt TOTAL

Affect of Combined Levy Change on Property Owner Owner of a home with a $200,000 market value and automobiles with a combined market value of $35,000 would realize a $2.24 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 $2.24 increase in annual property taxes due to the City.

Preliminary Revised FY Revenue Estimate* Levy Type AdoptedBudgetRevisedEstimateDelta General$48,078,300$49,078,336$1,000,036 Health$34,957,443$35,698,277$740,834 Health (Temp.) $16,224,757$16,548,407$323,650 Museum$1,399,753 $ 1,428,863 $29,110 Debt$10,650,296$10,834,017$183,721 TOTAL$111,310,549$113,587,900$2,277,351 *Subject to application of final billing numbers, collection rates, etc.