Meeting Date:
Agenda Item:
2/15/2017
#_______
Mission Statement
To provide our growing dynamic community
excellent municipal services to make Fernley a
great place to live, work, and play.
Together, we enhance the desirability, safety,
friendliness, aesthetics and quality of life in our city.
CITY OF FERNLEY CITY COUNCIL MEETING STAFF REPORT
REPORT TO:
Mayor & City Council
REPORT THRU:
Daphne Hooper, City Manager
REPORT BY:
Denise Lewis, Finance Director
REVIEWED BY:
Brent Kolvet, Deputy City Attorney
AGENDA ITEM:
ACTION REQUESTED:
Discussion and Possible Action to Approve the City’s FY 17/18 Property
Tax Rate for submission to the Department of Taxation.
___Consent
___Ordinance
__Resolution _X_ Motion __Receive/File
RECOMMENDED ACTION BY CITY COUNCIL
Staff recommends the following action:
“I move to approve the City of Fernley maximum allowed operating property tax rate for
submission to the Department of Taxation.”
Key Points:
1. In February of each year, the Department of Taxation establishes the preliminary maximum
allowed property tax rate for all local governments (February 15) this year.
2. The property tax rate that the governing body proposes to levy must be submitted in
writing by February 22, 2017.
3. Once notification is submitted to taxation, the property tax rate will then be used to create
the final revenue projections, which will also include abatements.
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POLICY REFERENCE
Nevada Statutes:
NRS Chapters 354 and 361
Fernley Municipal Code:
N/A
Policies & Procedure Manual: N/A
Community Assessment:
N/A
Other:
N/A
BACKGROUND INFORMATION
In February of each year, the State Department of Taxation provides and the City must submit in writing the
property tax rate the City proposes to levy for the upcoming fiscal year. Upon request by City Council, this
information is being brought forward for Council approval prior to budget workshops. The City’s current tax rate
is set at .6705. The City will not receive the letter provided by the Department of Taxation confirming the new
maximum allowed rate until February 15.
There is a misconception that the City of Fernley receives all moneys included and paid for on an individual tax bill.
That is not the case. The City only receives 67 cents on every $100 of assessed value. For example, with a total
assessed value within the City of Fernley of $655M, the City would only receive $2.4M, which is less abatements of
about 46%. (655,000,000/100=6,550,000x.6705=4,391,775 (pre-abated amount) x46%=2,020,216 (abatements)
4,391,775-2,020,217 = 2,371,559 (City’s property tax revenue).
SUPPORTING INFORMATION
Revenue projections are provided by the County Assessor’s office and the centrally assessed unit of the
Department of Taxation’s local government services division. The State Treasurer’s office then compiles the
information and submits it to the local governments. Later in March, the final proforma including abatements will
be provided.
PRIOR COUNCIL ACTION/REVIEW
None
ATTACHED INFORMATION
•
•
Letter from the Department of Taxation dated 1/17/17
Revenue Projections and maximum tax rate (to be provided upon receipt on 2/15/17)
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