To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Ordinance Levying General Property Taxes for the Town of Castle Rock, Colorado, for the Year 2022, to be Collected in 2023 (Second Reading - Approved on First Reading on September 20, 2022 by a vote 6-0)
Body
________________________________________________________________________________
Executive Summary
The attached Ordinance establishes the Mill Levy rate of 1.139 for the Town of Castle Rock for the collection of property taxes in 2023 (Attachment A).
Discussion
Property taxes are placed solely in the Town’s General Fund which supports core Town services including Police and Fire. A preliminary abstract of taxable assessed values will be received from the County Assessor in August and used to calculate the mill levy rate presented in the 2023 proposed budget. The final taxable assessed valuation will be received in November. As shown below, 2022 preliminary taxable assessed values have increased approximately $10.7 million dollars, or less than 1 percent, from the previous year’s total. This results in a mill levy rate of 1.139, no change from the prior year or the 2023 proposed budget, and property tax revenue of approximately $1.5 million for the Town to be collected in 2023.
|
2021 Assessed Valuation |
$ 1,302,055,422 |
|
2022 Preliminary Valuation |
1,312,707,584 |
|
Difference |
$ 10,652,162 |
|
2022 Property Tax Revenue |
$ 1,495,174 |
|
Difference |
0.82% |
Per the Colorado revised state statutes 29-01-301 (1) (a), all statutory tax levies for collection in 1989 and thereafter when applied to the total valuation for assessment of the state, each of the counties, cities, and towns not chartered as home rule shall be so reduced as to prohibit the levying of a greater amount of revenue than was levied in the prior year plus five and one-half percent. Castle Rock Municipal Code also states that the Town shall levy no more than the amount of revenue that was levied in the preceding year plus five and one-half percent. Annual growth in excess of the five and one-half percent limitation results in a corresponding mill levy reduction in that year in order to align with the revenue growth limitation. No mill levy adjustment is needed for 2022 because the increase from the prior year is less than five and one-half percent. The table below shows history of the mill levy rate since 2004.
|
2004 |
2005 |
2006 |
2007 |
2008 |
2009-2015 |
2016-2017 |
2018-2019 |
2020-2021 |
2022-2023 |
2004-2021 Change |
|
2.058 |
1.895 |
1.896 |
1.898 |
1.705 |
1.703 |
1.474 |
1.330 |
1.196 |
1.139 |
-44.7% |
Financial Impact
Using the final taxable assessed valuation approximately $1.5 million in property tax revenue will be collected in 2023 based on a 1.139 mill levy.
Staff Recommendation
Staff recommend that Town Council approve this Ordinance as written.
Proposed Motion
“I move to approve an Ordinance Levying General Property Taxes for the Year 2022, for 2023 Collection, for the Town of Castle Rock, Colorado.”
Alternative Motions
“I move to approve the ordinance as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Attachment A: Ordinance