The URL can be used to link to this page

Home My WebLink About2024-01-09 (Special) Meeting Agenda Packet Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303- 762-2405) at least 48 hours in advance of when services are needed. Council Chambers Englewood, CO 80110 AGENDA City Council Special Meeting Tuesday, January 9, 2024 ♦ 5:00 p.m. To view this meeting online please visit YouTube I. Call to Order II. Pledge of Allegiance III. Roll Call IV. Approval of Ordinances on Second Reading. a. CB-2 2024 Mill Levy Amendment Emergency Ordinance IV a documents Staff: Budget Administrator Jenny Nolan V. Adjournment Page 1 of 11 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Jackie Loh DEPARTMENT: Finance DATE: January 9, 2024 SUBJECT: 2024 Mill Levy Amendment Emergency Ordinance DESCRIPTION: 2024 Mill Levy Amendment Emergency Ordinance RECOMMENDATION: Staff requests City Council to approve the Ordinance amending the 2023 Mill Levy Rate from 2.100 to 2.182 for property tax collections in 2024 to fund the GO bond payment for the Englewood Police headquarters. PREVIOUS COUNCIL ACTION:  October 2, 2023 - City Council approved the Property Tax Mill Levy Ordinance No. 57, Series 2023 SUMMARY: A special state legislative session was held after the November 2023 election when the voters did not pass ballot measure HH. The purpose of this special legislative session was to alleviate the expected 2023 property tax increases (collected in 2024) due to the price increases in home values. The Colorado General Assembly prepared and supported the temporary Property Tax Relief Senate Bill 2023B-001 that was signed by the Governor Polis on Monday, November 20, 2023. The main provisions of this bill includes the following for property tax years commencing on January 1, 2023 for which property taxes are collected in 2024: Real Property Classification Current Temporary Reduction in the Residential Assessment Rate Revised Temporary Reduction in the Residential Assessment Rate Temporary Reduction in Actual Property Value Multi-Family Residential 6.765% 6.700% Minus the lessor of $55,000 or amount that causes the assessment property valuation Residential 6.765% 6.700% Minus the lessor of $55,000 or amount that causes the assessment property valuation Page 2 of 11 The assessment rate converts the actual property valuation to the assessed property valuation. Property Tax Revenue = (actual property valuation X assessment rate) X (mill levy / 1000), or Property Tax Revenue = (assessed property valuation) X (mill levy / 1000) Arapahoe County informed the city in the attached letter dated November 28, 2023 that the December 10, 2023 deadline to re-certify the value for all taxing authorities was pushed to January 3, 2024 and the local government's deadline of December 15, 2023 to certify its mill levy to the county was extended to January 10, 2024. ANALYSIS: Following is the information from Arapahoe County providing the revised assessed property valuation: General Fund Mill Levy Original Revised Difference Assessed Property Valuation $1,089,399,293 $1,035,091,635 ($54,307,658) Mill Levy 5.880 5.880 0.000 Estimated Property Tax Revenue $6,300,000 $6,086,000 ($214,000) Debt Service Fund Mill Levy Original Revised Difference Assessed Property Valuation $1,089,399,293 $1,035,091,635 ($54,307,658) Mill Levy 2.100 2.182 0.082 Estimated Property Tax Revenue $2,250,000 $2,250,000 $0.00 COUNCIL ACTION REQUESTED: Staff recommends City Council approve the Revised 2023 Mill Levy Ordinance that increased the Debt Service Mill Levy from 2.100 to 2.182. This mill levy increase will generate sufficient funds for the 2024 debt service requirement of approximately $2,233,300. FINANCIAL IMPLICATIONS: The General Fund and Debt Service Funds Property Tax Revenue Estimated are affected as follows:  General Fund o General Government Mill Levy remains at 5.880 o Property Tax Revenue Estimate decreases $214,000; from $6,300,000 to $6,086,000 Page 3 of 11  Debt Service Fund o Police Headquarter Construction General Obligations Bonds Mill Levy increases from 2.100 to 2.182 o Property Tax Revenue Estimate remains the same at $2,250,000 CONNECTION TO STRATEGIC PLAN: First reading of the revised 2023 mill levy debt service ordinance supports the Strategic's Plan Governance result/outcome  Governance - A city government that serves the community by being efficient, effective, accountable, and adaptable OUTREACH/COMMUNICATIONS: NA ATTACHMENTS: Ordinance Page 4 of 11 1 ORDINANCE NO. _____ COUNCIL BILL NO. 2 SERIES OF 2024 INTRODUCED BY COUNCIL MEMBER RUSSELL AN EMERGENCY ORDINANCE AMENDING ORDINANCE NO. 57, SERIES OF 2023, FIXING THE TAX LEVY IN MILLS UPON EACH DOLLAR OF THE ASSESSED VALUATION OF ALL TAXABLE PROPERTY WITHIN THE CITY OF ENGLEWOOD, COLORADO. WHEREAS, it is the duty of the City Council of the City of Englewood, Colorado, under the Englewood Home Rule Charter and Colorado Revised Statutes, to make the annual property levy for City purposes; and WHEREAS, on the 2nd day of October, 2023, the City Council adopted Ordinance No. 57, Series of 2023, setting the City’s 2024 tax levy, as required by Englewood City Charter 89; and WHEREAS, on the 20th day of November, 2023, Colorado Governor Jared Polis signed into law SB23B-001, a property tax relief bill that lowered the Englewood property valuations upon which the City tax levy established by Ordinance No. 57 was based; and WHEREAS, on November 8, 2016, Englewood citizens approved Ballot Issue No. 2C, approving the issuance of General Obligation bonds to construct a new Englewood Police Department headquarters building and requiring the City to levy ad valorem property taxes “sufficient in each year to pay the principal … and interest on such debt”; and WHEREAS, on the 3rd day of January, 2024, the City of Englewood received updated property valuations as mandated by SB23B-001, and the mill levy of 2.100 established by Ordinance No. 57, Series of 2023 is insufficient to pay the principal and interest on the General Obligation bonds issued under Ballot Issue No. 2C; and WHEREAS, the City of Englewood is required to certify its tax levy to Arapahoe County no later than January 10, 2024; and WHEREAS, in order to comply with Ballot Issue No. 2C requiring a specific tax levy and Englewood Charter 89 requiring the tax levy be set by ordinance, and to meet the Arapahoe County mill levy certification deadline, the City of Englewood must adopt an emergency ordinance for the immediate preservation of public property; and WHEREAS, the following levy is permitted under Article X, Section 20 of the Colorado Constitution without additional vote by the citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Page 5 of 11 2 Section 1. That there be and hereby is levied for the year of 2023, due and payable as required by statute in the year 2024, a tax of 2.182 mills on the dollar for the Englewood Police Headquarters General Obligation Bond Debt Service Fund of the City of Englewood, Colorado. That the levy hereinabove set forth shall be levied upon each dollar of the assessed valuation of all taxable property within the corporate limits of the City of Englewood, Colorado, and the said levy shall be certified by law. Section 2. Unless specifically amended by Section 1 above, all other provisions of Ordinance No. 57, Series of 2023, shall be in full force and effect and unchanged by this Ordinance. Section 3. Emergency Declaration. The City Council of the City of Englewood hereby finds, determines and declares that an emergency exists under Charter 41, and that this ordinance is necessary for the immediate preservation of public property, health, welfare, peace or safety for the reasons enumerated in the introductory paragraphs of this ordinance, which are incorporated into this Section 3 by reference. The City Council further determines that the adoption of this ordinance as an emergency ordinance is in the best interest of the citizens of the City of Englewood, and the only available avenue to comply with voter directives, City Charter 89, and state-imposed deadlines for tax levy certification. Section 4. General Provisions Applicable to this Ordinance The following general provisions and findings are applicable to the interpretation and application of this Ordinance: A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances. B. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. This Safety Clause is not intended to affect a Citizen right to challenge this Ordinance through referendum pursuant to City of Englewood Charter 47. C. Publication. Publication of this Ordinance may be in the City’s official newspaper, the City’s official website, or both. Publication shall be effective upon the first publication by either authorized method. D. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and directed to execute all documents necessary to effectuate the approval authorized by Page 6 of 11 3 this Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to execute the above-referenced documents. The execution of any documents by said officials shall be conclusive evidence of the approval by the City of such documents in accordance with the terms thereof and this Ordinance. City staff is further authorized to take additional actions as may be necessary to implement the provisions of this Ordinance. Introduced and passed on first reading on the 8th day of January, 2024; and on second reading, in identical form to the first reading, on the 9th day of January, 2024. Othoniel Sierra, Mayor ATTEST: _________________________________ Stephanie Carlile, City Clerk I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of an Ordinance, introduced and passed in identical form on first and second reading on the dates indicated above; and published within seven days after final passage on the City’s official website for at least thirty (30) days thereafter. The Ordinance shall become effective immediately upon final passage. Stephanie Carlile Page 7 of 11 ARAPAHOE COUNTY COUNTY ASSESSOR COUNTY TREASURER Administration Building 5334 South Prince St. L'ttlt ,Cl d 80120MEMORANDUM'° arapahoegov.com To:Arapahoe County municipalities and special districts 7 From:Assessor PK Kaiser and Treasurer Michael Westerberg Date:November 28,2023 Subject:2023 Property Tax Relief affecting municipalities and special districts At the November Special Session,the Colorado Legislature passed Senate Bill 23B—00‘l,“2023 Property Tax Relief,”that will affect municipalities and special districts in two ways.First,it will have an impact on the taxable value of taxing authorities.Second,it will adjust key dates for the adoption of the budget,the certification of tax levies,and the submission of those tax levies to the County. The bill reduces the assessment rate for residential property from 6.765%to 6.7%for Property Year 2023.It also increased the amount of a home’s value that is exempt from taxation to $55,000 from $15,000.These changes will undoubtedly decrease the taxable value for taxing authorities, which may impact your 2024 budget and mill levies. in order to give the Assessor’s Office additional time to re—certifythe value for all taxing authori- ties within the County,the Iegislation pushes back the Dec.10,2023,deadline to Jan.3,2024,for notification of changes in the total actual and assessed value.This creates a challenge for end—of— year and beginning-of—year budgets. Pursuant to State statute,all local governments are required to adopt a budget and make appro- priations prior to certifying the mill levy rate prior by Dec.15,2023.For next year,the bill amends the budget adoption to Jan.10 to provide additional time for budget adoption or to create budget amendments and certification of tax levies based on the bills revised provision for taxable value. The bill does not address what should happen regarding spending between the end of the 2023 Fiscal Year and the revised Jan.10,2024 deadline.We urge you to consult your legal counsel about whether adopting and appropriating a budget and certifying a mill levy prior to Dec.31 that would be amended later is a course of action your organization should pursue. Our Assessor’s Office will be working hard to get these revised values to you as soon as possible; however,taxing authorities should make plans based around this new January 2024 deadline. Once final values are certified by the Assessor’s Office,taxing authorities will need to adopt or amend a 2024 budget and certify a tax levy to be submitted to the county no later than Jan.10, 2024.Due to the tight timeframe,it will be extremely difficult for County staff to follow—upwith taxing authorities that do not submit mill levies promptly by Jan.‘I0 as the certification of tax levies is due to the State by Jan.17 and the final tax warrant is due to be completed by the Treasurer’s Office by Jan.24,2024. (continued on other side) Page 8 of 11 The legislature also amended provisions for how the State will backfill property tax amounts for SB22—238and SB23B—O01.We recommend viewing these linked versions which include the corresponding fiscal note.There you’|l find additional information on backfill provisions and other changes in the property tax process for 2023 property taxes that may inform your decision mak- ing and conversations with your governing board and legal counsel. Additional steps: -If you have questions about the property tax valuation process (for 2023 taxes collectible in 2024),please contact the Assessor’s Office at 303-795-4600 or via email. -To submit the certification of tax levies forms prior to the Jan.10 deadline,email the Finance Department at financebudgeting@arapahoegov.com.Please use the new DLG-70 “Certification of Tax Levies for Non—’SchoolGovernments”form from the Colorado Department of Local Affairs. Thank you for your attention to these important changes. Page 9 of 11 Arapahoe PK Kaiser,MBA,MSCounty Colorado'sFirst Assessor OFFICE OF THE ASSESSOR 5334 8.Prince Street Littleton,CO 80120-1136 Phone:303-795-4600December6,2023 TDDI Relay-711 Fax:303—797-1295 www.arapahoegov.com/assessor assessor@arapahoegov.com AUTH 3006 CITY OF ENGLEWOOD ACCOUNTINGDIVISION 1000 ENGLEWOODPARKWAY ENGLEWOODCO 80110 Code #3005 CERTIFICATIONOF VALUATION The Arapahoe County Assessor reports a taxable assessed valuation for your taxing entity for 2023 of: $1,091,049,841 The breakdown of the taxable valuation of your property is enclosed. As further required by CRS 39-5-128(1),you are hereby notified to officially certify your levy to the BoardofCountyCommissionersnolaterthanDecember15. CRS 39-1-111(5)requires that this office transmit a notification by December 10 of any changes tovaluationmadeaftertheoriginalcertification. PK Kaiser,MBA,MS Arapahoe County Assessor enc Page 10 of 11 3006 County Tax Entity Code CERTIFICATION OF VALUATION BY ARAPAHOE COUNTY ASSESSOR New Tax Entity III YES X NO Date:December 6.2023 NAME OF TAX ENTITY:CITY OF ENGLEWOOD USE FOR STATUTORY PROPERTY TAX REVENUE LIMIT CALCULATION("5.5%“LIMIT)ONLY IN ACCORDANCE INITH 39-5-I2l(2)(a)AND 39-5—l28(I ).C.R.S.,AND NO LATER THAN AUGUST 25.THE ASSESSOR CERTIFIESTHE TOTAL VALUATION FOR ASSESSMENTFOR THE TAXABLE YEAR 2023: 1,PREVIOUS YEAR'S NET TOTAL TAXABLE ASSESSED VALUATION:1 $882,277,297 2.CURRENT YEAR'S GROSS TOTAL TAXABLE ASSESSED VALUATION:r 2 $1,091,049,841 3.L_ESS_TOTAL TIF AREA INCREMENTS,IF ANY:3 $55,958,206 4.CURRENT YEAR'S NET TOTAL TAXABLE ASSESSED VALUATION:4 $1,035,091,635 5.NEW CONSTRUCTION:*5 $43,587,607 6.INCREASED PRODUCTION OF PRODUCING MINE:Z 6 $0 7.ANNEXATIONS/INCLUSIONS:7 $0 8.PREVIOUSLY EXEMPT FEDERAL PROPERTY:2 8 $0 9.NEW PRIMARY OIL OR GAS PRODUCTION FROM ANY PRODUCING OIL 9 $0 AND GAS LEASEHOLD OR LAND (29-1-301(1)(b),C.R.S.):CD 10.TAXES RECEIVED LAST YEAR ON OMITTED PROPERTY AS OF AUG.1 (29-10.$4,788 1—3OI(I)(A),C.R.S.).Includes all revenue collected on valuation not previously certi?ed: 11.TAXES ABATED AND REFUNDED AS OF AUG.1 (29-1-30l(l)(a),C.R.S.)and 11.$36,955 (39-I0-I I4(I)(a)(I)(B),C.R.S.): This value re?ects personal property exemptions IF enacted by the jurisdiction as authroizedby Art.X,Sec 20(8)(b),Colo.Constituion New constructionis de?ned as:Taxable real property structures and the personal property connected with the structure. Jurisdictionmust submit to the Division of Local Govemment respective Certi?cationsoflmpact in order for the values to be treaed as growth in the limit calculation; use Forms DLG 52 &52A. Q).lurisdictionmust apply to the Division ot‘Local Government before the value can be treated as growth in the limit calculation;use Fonn DLG 52B. USE FOR TABOR "LOCAL GROWTH"CALCULATION ONLY IN ACCORDANCE WITH ART X,SEC.20,COLO.CONSTITUTIONAND 39-5—I2l(2)(b).C.R.S.,THE ASSESSOR CERTIFIES THE TOTAL ACTUAL VALUATION FOR THE TAXABLE YEAR 2023: 1.CURRENT YEAR'S TOTAL ACTUAL VALUE OF ALL REAL PROPERTY:11 1.$8,850,276,694 ADDITIONS TO TAXABLE REAL PROPERTY 1]-K-++ 2.CONSTRUCTION OF TAXABLE REAL PROPERTY IIVIPROVEMENTS:2.$2I3,I35,535 3.ANNEXATIONS/INCLUSIONS:3.$0 4.INCREASED MINING PRODUCTION:4.$0 5.PREVIOUSLY EXEMPT PROPERTY:5.$35,623,428 6.OIL OR GAS PRODUCTION FROM A NEW WELL:6.$0 7.TAXABLE REAL PROPERTY OMITTED FROM THE PREVIOUS YEAR'S TAX 7.$0 WARRANT:(If land and/or a structure is picked up as omitted property for multiple years, only the most current year's actual value can be reported as omitted property.): DELETIONS FROM TAXABLE REAL PROPERTY 8.DESTRUCTION OF TAXABLE REAL PROPERTY IIVIPROVEMENTS:8.$0 9.DISCONNECTIONS/EXCLUSIONS:9.$0 IO.PREVIOUSLY TAXABLE PROPERTY:10.$2,474,000 II This includes the actual value of all taxable real property plus the actual value of religious,private school,and charitable real property. *Constructionis defined as newly constructedtaxable real property structures. §Includes production from new mines and increases in productionof existing producing mines. IN ACCORDANCEWITH 39-5-128(1),C.R.S.,AND NO LATER THAN AUGUST 25,THE ASSESSOR CERTIFIES TO SCHOOL DISTRICTS: 1.TOTAL ACTUAL VALUE OF ALL TAXABLE PROPERTY I.$0 IN ACCORDANCEWITH 39-5-l28(I .5),C.R.S.,THE ASSESSOR PROVIDES: HBZI-I312 VALUE OF EXEMPT BUSINESS PERSONAL PROPERTY (ESTIMATED):**2,197,411 **The tax revenue lost due to this exempted value will be reimbursedto the tax entity by the County Treasurer in accordance with 39-3-119.5(3),C.R.S. NOTE:ALL LEVIES MUST BE CERTIFIED TO THE COUNTY COMMISSIONERSNO LATER THAN DECEMBER 15. Page 11 of 11