001Good evening everyone. Um, a public hearing notice has been posted. Adequate notice of it has been given. So, I will call us to to order. You don't have to. Okay. So, um, the 2025 property tax rates need to be set prior to October 1st, which is why we're meeting tonight. Prior to setting property tax rates, a public hearing is required. Purpose of the public hearing is to receive public comments to be considered in the process of setting tax rates. Uh John, >> you said everything that's on this first slide. >> It's perfect. Uh Missou's property tax system is designed to uh set property tax rates that adjust as uh assessed valuations adjust and limit our growth of taxes uh to something that doesn't exceed uh consumer price indexes. Um this is kind of how the
002formula works. uh AV meaning assessed valuations times rate equal our tax collections. Um and when assessed valuations rise, rates are forced to decrease so that tax collections remain approximately level. The same is true in the reverse. If assessed valuations decline, rates rise again to keep tax collections approximately equal. In recent years, we have only really experienced assessed valuations rising, but I can tell you in the 2008 2009 time time frame, they actually went down for a couple reassessment periods. Um, in regards to property tax growth, uh, there's these are the way that it grows where they grow with new construction. uh it grows with the capture of CPI during reassessment years and it grows with voter approved tax rate increases. Assess valuations start with an appraisal by the state I mean by the county assessor.
003Um those those appraisals uh don't necessarily reflect market value. uh they're usually a little bit lower than market value and then it's converted to an assessed valuation with these formulas 19% for residential property, 32 for commercial and one-third for personal property. This year our assessed valuation is 1.73 billion. Uh and it's in these this piraph shows the categories of residential, commercial and personal property. residential being the largest share and the prior years assessed valuation are shown there and you can see we grew about 200 million over uh the prior reassessment period. Uh here's how we've seen growth through time um for each category. Um this is the growth we're seeing from reassessment this year. Reassessment happens in oddnumbered years every other year. So you s see it rise typically in the oddnumbered years and somewhat
004fall back in the even numbered years. Uh this particular year is got a lot of growth. We also grow from new construction and this is a good year for uh new construction as well both in residential and commercial. It's pretty strong. This year we're required to set our tax rates by October 1st. The data we get to make these calculations usually doesn't come out till about September 15th. So we have a very small window of time in which to react and make the get these rates adopted. These are the rates that we're proposing this year. They are the result of calculations uh that the state auditor provides us and they have been reviewed by the state auditor. Um uh so at this point in time they are fully validated. Uh the operating levies have gone
005down for residential and commercial due to the growth in reassessment. Uh the debt levy stays the same. There is a recruitment levy that flows from last year uh in which we did a recruitment on commercial property uh and we divided that to flow over two years. We applied it to last year. Uh recently, I'd say back this summer, the state auditor uh advised us that they wanted to revise a number in our calculation and it lowered the commercial recoupment number and actually created a negative recoupment uh in the residential levy. So, it's actually lowering the residential levy. So you can see these are the proposed rates uh for this coming year of the bottom line. This is how they compare to last year. The residential rate overall is down 34.5 cents. The commercial rate is
006down 20 cents. These are how rates have fallen through time. Assessed value rises. The rates fall. The blue line, blue bars being residential. Uh it continue to fall. The lowest number on the graph is $2.75. Uh that is actually a floor rate. Uh that if we reach that point, the rate will not fall any further. That could happen with the next reassessment or the one following. We're very likely to get to that point. The debt service levy uh has been stable for the third year in a row. We lowered it three years ago as uh due to the inflow of funds being greater than what we needed to service the debt. In regards to amounts build and collected, uh our collections usually fall a little shy of what's been build uh due to protested taxes
007and the resolution of those protests. Um so this is the history of that. This is how our revenue is growing by source. Uh the blue the green bar being new construction, the blue bar being reassessment and CPI and personal property uh does its own thing. Um so you can see in 2025 we're seeing strong new construction and strong reassessment numbers. I'd like to remind you about what the tax incentives are. TIFF projects currently cost the district around $530,000 and other abatements that come from chapter 100 and chapter 353 cost us about $2 million. Eventually, as these uh abatements reach the end of their life, we'll see some tax growth from that. We also are carrying some voluntary roll backs uh that were applied starting after the 2019 tax rate increase and I wanted to confirm
008that those are still in existence. Our this shows that our voter approved rate ceiling is $4.51. Uh we have an operating rate ceiling. I call the 451 kind of a hard ceiling. And then we have our annual rate ceiling which is is more of a soft ceiling. And then you can see the rates that we're levying there on the bottom line. These are just uh operating lobbies. They do not include the the debt service levy. That's the conclusion of my presentation. Um we'll be setting the rates during the open meeting uh as we've presented here in this hearing. Um, any questions or comments for now? Are there any public comments? Um, nope. Okay. Okay. Well, thank you. Um, so Chris, we can move that we adjourn this tax here.