HomeMy WebLinkAbout11/15/2011 08 2012 Ad Valorem Taxes - Public Hearing • BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
n
Item No. 2
For Meeting Of: November 15, 2011
ITEM TITLE: Public Hearing on Revenue Sources and Consideration of Legislation pertaining
to Ad Valorem Taxes to be levied for collection in Fiscal Year 2012:
Ordinance A— Declaring the City Council's intent to increase the City's 2012
regular property tax levy up to 101% of the amount levied in the previous year,
plus new construction and annexation.
Ordinance B— fixing and levying the 2012 ad valorem property taxes and
excess levy taxes for the City of Yakima.
SUBMITTED BY: Don Cooper, City Manager
Rita M. DeBord, Director of Finance and Technology
Cindy Epperson, Deputy Director of Accounting & Budgeting
CONTACT PERSON/TELEPHONE: Don Cooper / 575 -6040
Rita M. DeBord / 576 -6771
Cindy Epperson / 576 -6771
SUMMARY EXPLANATION:
Background
• State law, based on Initiative 747, requires several administrative and legal steps to establish
the property tax levy. (Even though 1 -747 was ruled unconstitutional in the fall of 2007, the
legislature met and re- established property tax levy limits as set forth in the initiative.) Your
package includes two (2) separate ordinances. Ordinance A and B will set the property tax levy
for collection in 2012, based on
CONTINUED
Resolution Ordinances X (2) Other (Specify) Exhibit I, Attachments 1 -5;
Funding Source
APPROVED FOR SUBMITTAL: it 4( ( City Manager
STAFF RECOMMENDATION: City Management is recommending that City Council
conduct a public hearing on the 2012 property tax levy, and then pass ordinances "A ", which
declares Council's intent to increase the levy by 101% above the prior year levy, and "B ", which
fixes the levy amount. These ordinances follow state law imposing a 1% increase in the
property tax levy for 2012, plus new levies for construction and annexation, consistent with the
provisions of 1 -747, and are the basis on which the 2012 budget was developed and balanced.
BOARD /COMMISSION RECOMMENDATION:
COUNCIL ACTION:
Legal /BD
Agenda Ad Val 1
11/9/2011
2012 Property Tax Agenda Statement — Continued page 2 of 4
•
the 1 -747 limit of a 1% increase (or the rate of inflation, whichever is less) over the prior year
base levy, plus new levies for construction and annexation. (Note: the initiative defines the rate
of inflation as measured by the Implicit Price Deflator (IPD) for consumer goods. For this year,
the IPD increased by 2.755% from July 2010 to July 2011)
Exhibit I details the calculation of the property tax levy with a base of 101% of the prior year
using preliminary information obtained from the County Assessor's office. According to state
law, the certification of ad valorem taxes must be filed with the Board of Yakima County
Commissioners on or before November 30, 2011 or the City will receive no funding from this
source in 2012. The Commissioners have requested to receive this packet by November 23, so
they can incorporate all of the requests into their required legislation.
Ordinance purposes are:
Ordinance A identifies Council's intent to authorize an increase in the tax levy over 2011 levels.
This ordinance requires a simple majority to pass. It is required by RCW 84.55.120. This is
legally necessary to increase the 2012 tax collections by any amount over 2011 levels.
Ordinance B fixes the tax levy for collection by the City in 2012. This ordinance includes not
only the regular tax but also special levy taxes for bond repayments. This ordinance complies
with RCW 35.33.135 and also requires a simple majority vote to pass.
These ordinances are in substantially the same format as the prior year levy legislation.
General Government Revenue Discussion •
In reviewing General Government revenue, there are 4 revenues that each make up
approximately one fourth of the total —i.e. there are four "legs" that support General
Government operations. Sales Tax (including the City's allocation of both county -wide Criminal
Justice sales taxes) represents about 26% of the total. Property tax as proposed is about 26 %;
Utility Taxes as presented in the Preliminary Budget make up about 21%; and all other revenue
comprise the remaining 27 %. (See Attachment 1 for a summary of General Government
revenues.)
As the "great recession" lingers, the City's General Government revenue has remained flat.
The 2008 actual revenue was $57.4 million, and we are on track to collect about $57.3
million in 2011, four years later. As the economy is not yet showing significant signs of
recovery, revenue is estimated to grow only $500,000, slightly less than 1%, even though
inflation is running between 3 -4% depending on what index is used. Sales tax has not
demonstrated any consistent trend throughout 2011, and has rather randomly been either
higher or lower than the same month in the prior year. This "bouncing" has been the trend
since April of 2010, which was the first month in 18 consecutive months in which collections
exceeded the prior year. We are anticipating that this volatility will continue in 2012, so that this
major revenue source is estimated with no change into 2012. The proposed 1% increase in
Property Tax is a major component in the slight growth of total revenues.
Even though revenues have been flat, there continues to be pressure on expenditures, and
there are increases in various categories such as fuel; property and liability insurance; state
pension rates; and employee healthcare coverage.
Legal /BD
Agenda Ad Val 2
11/9/2011
2012 Property Tax Agenda Statement — Continued page 3 of 4
In response to these economic conditions, the City has exercised responsible budgetary
restraint. City management has proposed necessary cost reduction measures to stay within
available resources, in accordance with the Council's priorities of government budget model.
Over $1.4 million of budget/service reductions were identified in the 2012 Preliminary Budget to
balance to the estimated revenues without any reliance on reserves. This is on top of a $2.3
million reduction made to balance the 2011 budget, and $2.9 million in 2010 bringing the total 3
year reduction to over $6.6 million. Cumulatively, over the three years, staffing levels in General
Government operations are being reduced by about 40 Full -Time Equivalent (FTE) employees.
Additionally, expenditures for professional services, capital outlay, and supplies have been
significantly reduced.
The initial estimates from the County on the 2012 property tax levy included a growth rate for
new construction of 0.7% which matched our original budget estimate, so we are not
anticipating any change in this revenue source from the Preliminary Budget.
Property Tax Discussion
The total 2012 City of Yakima property tax levy includes the 101% levy, levies for voted bond
issues, and amounts for annexations and new construction. The budget currently includes an
estimated revenue of $16,283,000 for the regular levy, an increase of $274,000 (made up of an
estimate of 1% for the regular levy, and 0.7% for new construction) over the 2011 year -end
estimate of $16,009,000. The voted levy debt is budgeted to be $293,000, the same as the
• 2011 budget, based on scheduled debt service for the 1995 voted Fire bond issue. The total
operating tax rate for next year is estimated to be $3.049 per $1,000 of Assessed Valuation
(AV), up from the 2011 rate of $2.9185. (The statutory limit is $3.60 less the Library levy, which
is capped at 50 cents per $1,000. The estimate for the 2012 Library levy is 49 cents per
thousand) -- the bond rate is estimated to be $0.05378 per $1,000, slightly up from $0.05306 in
2011. It should be noted that the amounts included in the budget differ from the levy as shown
in attached Exhibit I because of the timing of collections. In other words the budget is built on
collection estimates of the levy.
A home with an assessed value of $150,000 in 2011 paid $437.77 for the regular levy, and
$7.96 for the voted levy, for a total of $445.73. According to the preliminary valuation estimate
provided by the County Assessor, the underlying assessed value of all taxable property in the
City decreased by 3.3 %. If that rate is applied to the $150,000, the 2012 assessed value would
be $145,050 and the regular levy tax would be $442.26, and the voted levy would be $7.80 for a
total of $450.06 —a slight
Increase of $4.33 in the total annual levy.
We believe the current request for the property tax levy is justified by the following conditions:
(1) The property tax is needed to help meet mandates and contractual obligations,
principally Public Safety pensions /medical costs. Attachment 2 demonstrates the
amount of property taxes dedicated to these areas. Fortunately, the City successfully
implemented a program to move the medical costs of retirees over age 65 entirely to
Medicare and supplemental insurances as of July 1, 2011. This is estimated to save
over $300,000 in 2012. Note: even after factoring in this significant savings, $1.4
• million still needed to be reduced from the General Government budget to balance for
2012.
Legal /BD
Agenda Ad Val 3
11/9/2011
2012 Property Tax Agenda Statement — Continued page 4 of 4
(2) In the Street budget, property tax represents about 68% of all revenue in this budget.
(see Attachment 3). Investing in maintaining and repaving the City streets has been a
high Council priority for several years. The other major revenue source in this fund is
Gas Tax, which is based on a "per gallon" charge. The economic downturn has affected
consumption -- the 2011 gas tax is slightly more than 2010 actual, but is still below
2008 levels. The 2011 State budget included an across -the board reduction of 3.8% for
all state shared revenues, and there is the potential of additional reductions in the next
round of budget cuts at the state level.
(3) Property tax is also a key revenue source for the Parks and Recreation Division,
representing about 39% of all Parks revenue. Parks maintenance is supported entirely
by property taxes, while other programs such as the Senior Center and Aquatics are
supported in part by the property tax. The cost to maintain and operate these facilities
increases annually. (Also see Attachment 3).
(4) Again this year, the City is not expected to collect the full levy because of senior citizen
exemptions, delinquent taxes and other refunds for disputed values. For the year 2012,
the City is budgeting conservatively and estimating a reduction of up to 4% in actual
collections from the authorized . levy, offset by a portion of delinquent taxes that are
predicted to be collected.
(5) Yakima's per capita property tax ranks $87 below the average of comparable
Washington cities with populations of 45,000 to 120,000 in 2009, the most recent year
( ID
this information has been compiled. Yakima ranks 10th out of 12 cities in this group.
Further, for these same cities, Yakima's total per capita revenue collected from all taxes,
fees and charges is $570 less than the average and again ranks 10th out of the 12
cities. Our residents are currently taxed and /or charged substantially less than other
similar size cities. (See Attachments 2 & 4).
(6) Finally, the City's current property tax levy represents only 25% (approximately 1/4) of
the total property taxes paid by City residents. The State, local School District levies
and County government receive approximately 3/4 of all property taxes paid. (See
Attachment 5).
In conclusion, property tax is a vital component of General Government revenue. Based
upon the previous discussion, City management/budget staff respectfully requests the
passage of both Ordinances A and B to set the 2012 property tax levy, which is the basis
on which the 2012 budget was developed.
•
Legal/BD
Agenda Ad Val 4
11/9/2011
ORDINANCE A
ORDINANCE NO. 2011
AN ORDINANCE relating to the annual property tax levy; declaring the City Council's intent
to increase the City's 2012 regular levy up to 101% along with new
construction, annexation and growth in state - assessed property values
from the amount levied the previous year.
WHEREAS, RCW 84.55.120 requires a taxing district that collects regular levies to hold
a public hearing on revenue sources for the district's following year's current expense budget,
including consideration of possible increases in property tax revenues; and
WHEREAS, pursuant to RCW 84.55.120 and the City Charter, on November 15, 2011,
upon due and proper legal notice, the Yakima City Council held a public hearing to consider the
City's general government revenue sources for the 2012 current expense budget, and the total
proposed property tax levy amount pertaining to 2012 revenues from real and personal property
taxes; and
WHEREAS, RCW 84.55.120 provides that no increase in property tax revenue, other
than that resulting from the addition of new construction and improvements to property in any
increase in the value of state - assessed property, may be authorized by a taxing district, except
• by adoption of a separate ordinance or resolution, pursuant to notice, specifically authorizing the
increase in terms of both dollars and percentage; and
WHEREAS, the City Council, after the public hearing on November 15, 2011, and after
duly considering all relevant evidence and testimony presented, has determined that the City
requires an increase in property tax revenue from the previous year, resulting from the addition
of new construction and improvements to property and any increase in the value of state -
assessed property, in order to discharge the expected expenses and obligations of the City, and
as being necessary and in the best interests of the citizens of the City of Yakima; and
WHEREAS, the amount of property tax levied for collection in 2011 was $16,341,343 for
general government purposes; and
WHEREAS, the discretionary increase in property tax levied for collection in 2012 shall
be in the amount of $163,413, which is a percentage increase of one percent (1%) from the
previous year; and
WHEREAS, the non - discretionary increases in property tax levied for collection in 2012
can only be estimated due to the absence of final values to be provided by the Yakima County
Assessor, now, therefore,
cje /property - tax -ord 2012 1%-ce 11/9/2011
ORDINANCE A
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. The following increases in the regular property tax levy, over the amount
of the previous year's levy, are hereby authorized to be cumulatively levied for collection in
2012:
A. A discretionary increase of $163,413, which is a percentage increase of
one percent (1%) over the amount levied for collection in 2011; plus
B. An estimated increase of $0 for recent annexations; plus
C. An estimated increase of $106,135 for new construction and
improvements to property; plus
D. An increase authorized by state law for state - assessed property values.
Section 2. The City Clerk is directed to transmit and file a certified copy of this ordinance
with the Board of Yakima County Commissioners and the Yakima County Assessor on or before
November 30, 2011.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this
ordinance shall take effect on November 15, 2011.
PASSED BY THE CITY COUNCIL, signed and approved this 15th day of November, •
2011.
ATTEST: Micah Cawley, Mayor
City Clerk
Publication Date:
Effective Date:
•
cje /property- tax -ord 2012 1%-ce 11/9/2011
ORDINANCE B
ORDINANCE NO. 2011
AN ORDINANCE fixing and levying the amount of ad valorem taxes necessary to balance
estimated revenue with estimated expenditures for the 2012 Budget for
the City of Yakima.
WHEREAS, the City Council finds that the total net amount of $16,760,892 in revenue
must be raised by ad valorem taxes on real and personal property within the corporate limits of
the City of Yakima to balance estimated revenues and expenditures for the 2012 Budget for the
City of Yakima, now therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. There is hereby fixed to be raised by general property taxes upon real
and personal property within the City of Yakima the amount of $16,760,892 for the following
purposes:
General Government Levy
Operating Funds $15,445,892
Firemens' Relief & Pension Fund 1,315,000
Amount of tax levy for General
Government Purposes (1) $16,760,892
Special Purpose Tax Levy 293,000
4110 Total Levy Amount (1) $17,053,892
(1) Includes an additional $150,000 to provide for final adjustments in State assessed, new
construction and annexation values.
Section 2. The City Clerk is directed to transmit and file a certified copy of this
ordinance with the Board of Yakima County Commissioners and the Yakima County Assessor
on or before November 30, 2011.
Section 3. Pursuant to Article VI, Section 2 of the Yakima City Charter, this
ordinance shall take effect on November 15, 2011.
PASSED BY THE CITY COUNCIL, signed and approved this 15th day of
November, 2011.
ATTEST: Micah Cawley, Mayor
City Clerk
Publication Date:
Effective Date:
ad- valorem -ord 20121% ce 11/9/2011
EXHIBIT I
City of Yakima
Property Tax Limitation Calculation
2011 Tax 2012
Assessed Rate Levy
Values Applied Dollars
(Dollars in Thousands)
Prior Year (2011) = Base $5,599,278.437 $2.9185 $16,341,343
1% Increase $163,413
Base 101% $16,504,756
Valuation Decrease (3.3 %) ($187,719.49) N/A $0
New Construction (0.65 %) $36,366.353 $2.9185 $106,135
State Assessed Value $2.9185 $0 •
Tax Limit Before Annexations $5,447,925.303 $3.0490 $16,610,892
Add for Annexation $0.000 $3.0490 $0
Limit for Subsequent Years $5,447,925.303 $3.0490 $16,610,892
Plus Contingency (And Refunds) $150,000
Total- ordinance $16,760,892
State of Washington Constitutional Limit
Assessed Valuation $5,447,925.303 $3.6000 $19,612,531
Less: Library Levy (Estimate) $0.490 $2,669,483
2011 Levy for Collection in 2012 (Estimate) $3.110 $16,943,048
•
cje 11/9/2011
ATTACHMENT #1
io
GENERAL GOVERNMENT REVENUE
(BASED ON 2012 BUDGET OF $56.8 MILLION)
20.7¢ 6.86 3.3¢
26.34 Franchise & Intergovernment & Other
Sales Tax Utility Tax State Shared Revenue Revenue
($15.2 Million) ($12.0 Million)
($3.9 Million) (1.9 Million)
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., ;wz,.i .. .... . .... . .,,... __ ".
- 25.98 11.88 5.28
Property Tax Licenses, Permits Fines &
($15.0 Million) Si Charges Other Taxes
for Services ($3.0 Million)
($6.8 Million)
III GENERAL GOVERNMENT RESOURCES
THREE YEAR COMPARISON .
% of 2012 vs. 2011
2010 2011 Percent 2012 2012 Increase Percent
Source Actual Estimate Change Budget Total (Decrease) Change
General Sales Tax $12,653,993 $12,650,000 (0.0 %) $12,650,000 21.9% $0 0.0%
Crim. Justice Sales Tax 2,553,893 2,588,000 1.3% 2,575,500 4.5% (12,500) (0.5 %)
Property Tax 14,231,526 14,607,000 2.6% 14,968,000 25.9% 361,000 2.5%
Franchise & Utility Taxes 12,035,789 11,742,000 (2.4 %) 11,986,000 20.7% 244,000 2.1%
Charges for Services 6,076,139 6,297,948 3.7% 6,191,655 10.7% (106,293) (1.7 %)
State Shared Revenue 2,934,636 2,975,659 1.4% 2,839,400 4.9% (136,259) (4.6 %)
Fines and Forfeitures 1,658,467 1,636,344 (1.3 %) 1,645,700 2.8% 9,356 0.6%
Other Taxes 1,394,441 1,395,500 0.1% 1,392,000 2.4% (3,500) (0.3 %)
Other Revenue 652,103 677,257 3.9% 656,400 1.1% (20,857) (3.1 %)
Transfers from other Funds 1,230,565 1,185,000 (3.7 %) 1,234,000 2.1% 49,000 4.1%
Other Intergovernmental 1,271,580 .959,247 (24.6 %) 1,085,830 1.9% 126,583 13.2%
Licenses and Permits 768,469 619,200 (19.4 %) 616,700 1.1% .(2,500) (0.4 %)
Total Re venue $57,461,601 $57,333,155 (0.2 %) $57,841,185 100.0% $508,030 0.9%
Beginning Fund Balance 6,413,707 5,954,903 (7.2 %) 5,612,257 (342,646) (5.8 %)
Total Resources $63,875,308 $63,288,058 (0.9 %) $63,453,442 $165,384 0.3%
ill
(1) Some Criminal Justice sales tax is allocated to the Law and Justice capital fund (a non - general Governmental fund)
for capital needs.
ATTACHMENT #2
2012 PROPOSED
0
•
GENERAL PROPERTY TAX LEVY — BY FUNCTION
•
Fire &Police
Pension
$2,501,350
, :.P-.r.;,; •v 15.4%
t 'I asp 4 r
alai ,r t , : ?'
; , . g ad " Parks
{Yr r�tw3 °1 v F p $1,578,000
• ,- ,V ri z �
Ygr x a �' la ! ry .
General Fund i { f
$8,747,650 1 � � <O " � 5 ' k � ' ;.e
' 53.7% ,,, , �r'7 f afs y $ ' ; , )
,,4,...., 1p 44 : a c ¢ I !f. e , i 3 -
° ,, ., 1 � i , 4,, f , Y' r I • S '., . • . t�'�• ! a r Streets
'. i ,n• $
;'" $3,456,000
r Fa�, "vim , ,,:..
.. ', ,... 21.2%
-
o .....e • — •
2011 • 2011 Est.
2010 Amended 2011 2012 . vs. 2012
Actual Budget Estimated Budget Budget
General $9,190,326 $9,398,000. $9,548,000 $9,934,000 4.0%
•
Parks & Recreation 1,665,500 • 1,546,000 . 1,546,000 1,578,000 2.1%
Street & Traffic 3,375,700 3,508,000 3,513,000 3,456,000 (1.6 %)
Sub - Total General Government 14,231,526 14,452,000 14,607,000 14,968,000 2.5%
Fire Pension 1,502,765 1,502,765 1,402,000 1,315,000 (6.2 %) .
Total $15,734,291 $15,954,765 $16,009,000 $16,283,000 1.7%
•
•
•
•
4 1110
•
The City has compiled data from the State Auditor's Office that identifies per capita property tax
for comparable cities throughout the State. The following chart compares the City's per capita
III property tax income for 2009 (2009 data used as 2010 census data was not yet available). It shows
the City of Yakima's property tax per capita is $167, which is $87 less than the average of all the
comparable cities. Yakima ranks third lowest in tax per capita of the 12 comparable cities.
2009 PER CAPITA PROPERTY TAXES
Comparable Cities between 45,000 and 125,000 in Population
(Rounded to the closest dollar)
$450 Yakima's per capita property tax is $167, which is $87less
$400 than the average city per capita of $254 $356 $362
$332
$350 $298 $311
$275 $283
$300
$250 $210
$167 $189
$200 $148
$150 $112 -
$100 f4. ' ::!
n -
$50 . ( i
n 7s }w7 ,,,F
,,, i ,+. p .. ..y.,,, iaF ^w `4 w,• _ r fi( <'r Rt, r -,-. .
�,�, o.,�,� s, y,t..n , � a Rr:� �F „,�'�P,. � rt-,
Pasco Kennewick Yakima Auburn Bellingham Richland Bellevue Kirkland Kent Everett Renton Redmond
III
ATTACHMENT #3
PROPERTY TAX AS A PERCENTAGE OF TOTAL FUND REVENUE
2012 BUDGET YEAR
100%
OW R , ran,:. PSKA
90% .I ,r 9s f ,
800/ 041:0
E "«r a
70% ri
` '
60% , z
ogiozi
50% WO .� -, ,
P i ' L l _ 95%
40% 4144,
°
30 %,' 68%'
r•-i
20% W a
9 %.
10% 20% .
0
0%
General Fund Parks Streets Fire Pension
III % Propert Tax c % Other Revenue
ATTACHMENT #4
The largest revenue source for the General Government Funds is sales tax. Yakima has moved
10
from the lower half to the upper of per capita sales tax compared with similar cities in the State.
However, Yakima is in the lower 1/3 of ranking in all other revenue comparisons per capita and is
still the third lowest out of the twelve cities compared in combined per capita revenue. Yakima's
$1,253 per capita taxes is $570 below the average of $1,823 based on 2009 actual data (2009 data
used as 2010 census data was not yet available), as demonstrated in the chart below. The most
important conclusion from this analysis is that the City of Yakima has a very limited revenue / tax
base compared with most cities of its size in the state, and yet provides similar or enhanced services
and programs to its citizens.
2009 PER CAPITA TOTAL REVENUES
Comparable Cities between 45,000 and 125,000 in Population
(Rounded to the closest dollar)
$3,500 - Yakima's per capita total revenue is $1,253, which is $570
less than the average city per capita of $1,823 $2,696 $2,776
$3,000
$2,332
$2,500 $2,171
$2,000 $1,561 $1,637 $1,737 $1,776 $1,841
$1,253
$1,500 $1,023 $1,075 ,„/, � 3•• � t• _
$1,000_
x }.
$500
� „ i y H `'�
tx ;;u„�,'" - . , t �„ #., X5"" "��Ys�.,„ ,.:,,;�'�w�e r ..s- }' ,n �.� . J s.m ai
Pasco Kennewick Yakima Auburn Kent Bellingham Renton Kirkland . Everett Bellevue Richland Redmond
•
ATTACHMENT #5
• Property Taxes
The total property taxes paid by property owners within the City of Yakima include taxes levied by
several governmental entities: the State, School Districts, special county -wide voted levies and the
City's general and special voter approved levies. The percentage of the total property taxes levied
by, and allocated to, each individual governmental entity will change slightly from year to year.
The City's portion is generally under 30% of the total amount collected. (Refer to the graph and
chart below for how the 2011 property taxes were allocated between these governmental entities.)
2011 PROPERTY TAX DISTRIBUTION
Yakima School District State of Washington Schools Library
0.37 0.19 .04c
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City of Yakima Yakima County EMS
.25¢ .13c .02¢
City of Yakima Property Tax - In 2011, a typical City resident pays approximately $11.87 per
thousand of assessed value on property taxes. Only $2.99, or about 25.0 %, goes to the City, with the
balance . divided between the County, schools, and other special districts.
Description Of How Property Taxes Are Levied - The following explanation is included to help
the reader understand how property taxes are assessed to the individual property owners. To aid
in this explanation, three commonly used terms must be understood. They are Property Tax Levy,
Property Tax Rate and Assessed Value.
> Property Tax Levy - is the total amount of money that is authorized to be collected. This is
what is required to be set by Council action each year.
> Assessed Value - is the total value, as determined by the County Assessor's Office, of all
property within the City.
> Property Tax Rate - is the property tax amount that will be applied to every $1,000 of
assessed value; the rate is determined by simply dividing the levy amount by the total
assessed value amount and dividing that number by 1,000.