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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Sam Magureanu, Finance Director <br />REVIEWED BY: Chris Heineman, City Administrator <br /> <br />DATE: September 14, 2022 <br /> <br />RE: Financial Policy Revision – Other Revenues Policy <br /> <br />ACTION REQUESTED: <br />Approve the Financial Policy revision as presented <br />BACKGROUND: <br />It is the current City Policy that a “safe margin” to allow for property tax collections of 97.5% (Rather than 100%) <br />in any given budget year be in place. As a result of this policy the City has been levying an additional 2.5% of <br />the tax levy revenues each year. As noted in the graph bellow there were several years 2006-2009 when the City <br />collected under the 97.5%. It is important to note that the graph only looks at the current portion of the levied <br />amount collections and excludes any delinquent amounts typically collected each year in addition to the current <br />levied amounts. <br />Further, for the past twelve years the City current portion of the tax levy has been over the 97.5% threshold with <br />an average of 98.55% collection rate and for the past six years the average collection rate has been 98.90%. <br /> The policy revision recommended will allow city staff and city council the flexibility to make decision on the <br />“safe margin” amount each year rather than use a predetermined amount. <br />97.91% <br />98.58% <br />97.08%97.04% <br />96.55% <br />97.05% <br />97.54%97.88%97.73% <br />98.52%98.85% <br />98.71% <br />99.47% <br />98.44% <br />98.61%98.77%98.89%99.22% <br />95.00% <br />95.50% <br />96.00% <br />96.50% <br />97.00% <br />97.50% <br />98.00% <br />98.50% <br />99.00% <br />99.50% <br />100.00% <br />2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 <br />1st Year Collection Rate <br /> <br />