O’Fallon is proposing a total 2019 property tax rate of $0.5562 per $100 assessed valuation, reduced from the 2018 total property tax rate of $0.5959.
At its Sept. 12 meeting, the City Council conducted a public hearing and a first reading for a bill [No. 7126] sponsored by Mayor Bill Hennessy and aimed at achieving that goal. The second reading and vote for final passage are expected at the Sept. 26 council meeting.
Missouri statutes require the city to levy the property tax before Oct. 1 each year, and before approving the levy, the city is required to hold a public hearing with notice posted seven days in advance. Property tax rates also are subject to certification by the Missouri State Auditor’s office.
Tax year 2019 is a reassessment year [2018 was not]. As a result of the property reassessment, the city’s adjusted value of existing property in the current year has increased by 7.8980% over the 2018 assessed valuations.
The city now is proposing a general levy tax rate of $0.3354 and a debt service rate of $0.2208, for a total rate of $0.5562.
The general levy ceiling is $0.3354 and the city desires to tax at that ceiling. Although the debt service levy ceiling is higher, the proposed $0.2208 rate would generate sufficient revenue to pay for the general obligation debt service requirements for 2020 and to maintain one year of debt service payments in the reserve account. By comparison, those amounts in 2018 were $0.3551 for the general levy and $0.2408 for the debt service levy, equating to a total levy of $0.5959.
Because the total assessed valuation amount has risen in 2019, the lower total tax rate still will generate additional revenue for the city.
The city had levied $10,904,623 in taxes for 2018, but collected $10,286,571 of that amount. The $616,052 remainder will be collected as delinquent taxes over the year.
For 2019, the city expects to levy $11,129,837. The increase in the amount needed is primarily due to the new construction in the city.