8.04.300 Computation of maximum allowable tax revenues.
The maximum tax revenue allowed under FNSBC 8.04.290 is computed for the next fiscal year as follows:
A. Formula. The formula for the computation of maximum allowable tax revenue is:
(A – B) + D + F = G
where:
1. “A” equals the amount of tax revenue derived from actual taxes levied on taxable real property in each taxing jurisdiction in the current fiscal year and all other tax revenues;
2. “B” equals the amount of the actual payment of principal and interest on bonds made in the current fiscal year, less actual state reimbursement for school construction debt;
3. “D” is the product of the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for Fairbanks, Alaska (or for Anchorage, Alaska, if not available for Fairbanks) during the prior fiscal year (CPI) and the net taxes levied (A – B) in the current fiscal year;
4. “F” equals the total amount of all exclusions under FNSBC 8.04.290(B), and is the sum of all the following:
|
F.1 |
The taxes on new construction or property improvements equal the projected tax revenue from the value of that new construction or property improvements, computed by multiplying the tax rate applied to properties in that taxing jurisdiction during the current fiscal year by the assessed value of the new construction and property improvements; |
|
F.2 |
The principal and interest due in the next fiscal year on bonds, less state reimbursement for school construction debt, plus any over-adjustment or under-adjustment to actual reimbursement from the current year; |
|
F.3 |
Taxes to provide voter-approved services; |
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F.4 |
Taxes for new judgments; |
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F.5 |
Special appropriations necessary on an emergency basis. |
B. The point in time to use for the proper calculation of allowable property tax mill rates, for all taxing jurisdictions, shall be the next tax rolls as certified by the Borough Assessor on July 1st of each year.
This specific point in time shall be utilized for both the figures in the prior year and the current year.
C. As used in FNSBC 8.04.290 and this section, the following definitions apply:
“Current fiscal year” is the fiscal year during which the next fiscal year budget is prepared.
“Emergency” is the imminent threat of or the occurrence of widespread damage, injury, or loss of life resulting from any natural or human-made cause, including, but not limited to, fire, explosion, flood, earthquake, landslide, mudslide, volcanic activity, avalanche, weather conditions, epidemic, blight, infestation, riot, loss of public utilities, shortage of food, water, fuel or clothing, or the accidental release or discharge of toxic substances or hazardous substances. “Emergency” does not include appropriations for the normal operations of a service area or the Department of Emergency Operations.
“Fiscal year” means the fiscal year (July 1st through June 30th) for the Fairbanks North Star Borough.
“New construction or property improvements” means any improvement which generates a taxable value not on the tax roll for the current assessment year, including but not limited to:
1. Construction which increases the value of the property;
2. Any change in the status of land.
“New judgment” means the judgment reserved sufficient to cover the total cost of all judgments and arbitration awards during the next fiscal year, including:
1. Principal, interest, fees and costs;
2. Additional services which may be required by a court order.
“Next fiscal year” is the fiscal year following the current fiscal year and for which the new budget is being prepared.
“Prior fiscal year” is the fiscal year immediately preceding the current fiscal year.
“Taxing jurisdiction” means a taxing unit of the Fairbanks North Star Borough. A service area is a taxing jurisdiction.
“Voter-approved services” includes but is not limited to:
1. A service specifically authorized by the voters of a taxing jurisdiction in any ballot issue;
2. Programs directly related to voter-approved capital projects which are in addition to services in the current fiscal year budget;
3. Services added by the creation or alteration of the boundaries of a taxing jurisdiction if the creation or alteration of the boundaries of said taxing jurisdiction were approved by the voters of said taxing jurisdiction. Taxes required to provide a “voter-approved service” are the estimated first full-year costs of voter-approved services less revenue other than taxes projected to be generated from the voter-approved services, for the number of months in the next fiscal year for which the voter-approved service will be provided. (Reenacted during 10/22 election; reenacted during 10/20 election; Ord. 2019-09 § 2, 2019; reenacted during 10/18 election; reenacted during 10/16 election; reenacted during 10/14 election; reenacted during 10/10 election; amended during 10/04 election; added by initiative petition passed 10/8/96. 2004 Code § 3.08.142.)