The effective tax rate is .430869 and the rollback rate is .469175.  The proposed 2019 tax rate is .469000.  State Law requires certain Truth-in-Taxation procedures that must be followed if the City increases the tax rate above the effective tax rate or rollback rate, whichever is lower.  The 2018 tax rate was .471800.  If the Council chooses to adopt the proposed 2019 tax rate of .469000, the Truth-in-Taxation requirements are triggered.  If the Council chooses to increase the tax rate above the effective tax rate of .430869, the specific requirements that must be followed are listed in the attached memo.

This item will have a financial impact but the purpose of tonight’s action is to satisfy State Law and the Truth-in-Taxation procedures.

Staff recommends the Council vote to place the adoption of the proposed tax rate of .469000 which is an increase of 8.85% above the effective rate on the September 17^th agenda, and schedule two public hearings, September 3^th and September 10^th for the proposed tax rate increase.