HomeMy WebLinkAboutItem #2 Forgone Property TaxesMemo
City of Chubbuck
290 E Linden Avenue, Chubbuck, ID 83202
208.237.2400 — Fax 208.238.2371
www.CityofChubbuck.us
To: Kevin England, Roger Hernandez, Norman Reece, Dan Heiner, Melanie Evans
From: Rich Morgan, City Treasurer
Date: 8/10/2022
Re: FY2023 Budget Ordinance
Included with this memo are the appropriations ordinance for FY23, a resolution to use foregone
amount and a resolution to reserve foregone amount
The ordinance is prepared with the numbers from the published budget for the general, highway
streets and roads, water and sanitation funds. The budget for wastewater has been adjusted as
presented in the special meeting Tuesday August 9, 2022. Any of the budgets may be adjusted,
as discussed in previous meetings, before passage.
The resolution to use foregone has been prepared with the amount proposed in the published
budget
The resolution to reserve foregone amount has been prepared with the number $XXX,XXX This
number would be anything from $0 to $200,146 and represent the amount the council does not
use of the available 3% increase allowed on the previous year's property tax budget.
I am working on the requests made for additional information and will get them to the council as
soon as available.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHUBBUCK,
IDAHO, DECLARING THE INTENT TO COLLECT $66,715 IN FOREGONE
PROPERTY TAXES FOR FISCAL YEAR 2022 AND DECLARING THE
PURPOSE FOR WHICH THE FOREGONE PROPERTY TAXES ARE BEING
BUDGETED AS DESCRIBED IN IDAHO CODE SECION §63-802.
WHEREAS, the City of Chubbuck intends to include $66,715 of its accumulated balance of
$159,312 in foregone property taxes in its FY2023 budget as authorized by Idaho Code Section
§63-802; and,
WHEREAS, the purpose for the levy of foregone taxes is to fund General Fund Maintenance and
Operations; and
WHEREAS, the City of Chubbuck provided notice of its intention to levy foregone taxes by
publishing notice in the Idaho State Journal on July 26, 2022 and August 2, 2022; and
WHEREAS, the City Council held a public hearing concerning its intention to collect the
foregone taxes as contemplated by this resolution on August 3, 2022 in order to receive public
comment on the proposal; and
WHEREAS, the published notice and public hearing satisfied the notice and hearing requirement
in Idaho Code §63-802.
NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
CHUBBUCK, IDAHO, that $66,715 be included in the property tax to be levied in FY2023.
PASSED by the CHUBBUCK CITY COUNCIL on the XX day of XXX, 2022.
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ATTEST:
CITY CLERI{
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHUBBUCK,
IDAHO, RESERVING THE FORGONE AMOUNT FOR FISCAL YEAR 2023
FOR POTENTIAL USE IN SUBSEQUENT YEARS AS DESCRIBED IN IDAHO
CODE §63-802, et al.
WHEREAS, Idaho Code §50-235 empowers the city council of each city to levy taxes for
general revenue purposes; and,
WHEREAS, Idaho Code §50-1002 requires the city council of each city in the State of Idaho to
pass a budget, referred to as an annual appropriation ordinance; and,
WHEREAS, Idaho Code §63-802 sets limitations on all taxing district budget requests on the
amount of property tax revenues that can be used to fund programs and services; and,
WHEREAS, Idaho Code §63-802(1)(a) allows each taxing entity to increase property tax budget
amounts by a maximum of 3%, plus an amount calculated based on the value of both new
construction and annexation added during the previous calendar year, plus an amount for forgone
taxes; and,
WHEREAS, Idaho Code §63-802(1)(f) requires that the City adopt an annual resolution to
reserve additional forgone amount in order to utilize that amount in subsequent years; and,
WHEREAS, the City has met the notice and hearing requirements in Idaho Code §63-802(1)(f)
to reserve the current year's increase in the forgone amount; and,
WHEREAS, the City intends to reserve $XXX,XXX of its current year's increase in allowable
forgone amount.
NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
CHUBBUCK, IDAHO, that $XXX,XXX of the current year's allowable increase in its forgone
amount is reserved and included in the City's total forgone balance for potential use in subsequent
years.
PASSED by the CHUBBUCK CITY COUNCIL on the XX day of XXXXXX, 2022.
MAYOR
ATTEST:
CITY CLERK