Counsel and staff explain 'no-new-revenue' rate and what happens if council votes no

During the special meeting counsel and staff clarified that the proposed 0.813912 total tax rate is the city’s no-new-revenue rate for the year and explained the legal and practical consequences of different votes.

Counsel cautioned that declining to adopt the proposed rate could return the city to last year's certified rate and — counterintuitively — increase total collections. “If the tax rate isn't adopted, you revert back to the lowest rate… So you would actually raise taxes by voting no today,” counsel said. Counsel also explained the procedural steps: separate actions on M&O and debt-service components followed by a final ordinance adoption, and referenced statutory thresholds that apply when rates exceed certain limits.

Staff elaborated on the numeric breakdown and pointed the council to workbook pages that show the M&O and debt-service calculations and the certified tax roll used in the rate calculation. The council used that guidance in taking the required separate votes and the final ordinance vote.