Lake Worth's Tax Notice

UPDATE BELOW
Today, Lake Worth's Revised Notice of Proposed Tax Increase was published. I still don't understand it. I guess it takes an accountant or a CPA to figure it all out.  One thing that we do know--the city will generate more revenue from ad valorem because property values have risen.

1.  the budget summary says that we will receive $5,788,123 in ad valorem
2.  the proposed tax notice says we will receive $5,739,394 in actual property taxes, a difference of $48,729
3.  using the proposed tax notice, we will have a tax increase of $297,470, a 4.9% increase, not a 4.6% as advertised in the Budget Summary.

Finance Diretor Steve Carr's explanation: 11:13am


Hi Lynn
The way the State requires this be calculated and  published is confusing. I mentioned this in the explanation on Tuesday, as I said then  it does not make logical sense. The $5,788, 123( in the budget) is 95%  of the $6,036,864 (this year’s proposed tax levy) plus a small amount  estimated  for delinquent tax payments.

The $5,739,394 (calculated in the ad) was the 2013 actual property tax amount that last year’s tax levy was supposed to raise after the Adjustments made by the County Value Adjustment Board which were made after we adopted the 2013 budget.

In the end the difference in the adjusted the 2013 levy of $5,739,394 and the 2014 levy of $6,036,864 is $657,470, however the City is required by statute to only budget 95% of the total levy of $6,036,064 which would be the $5,788, 123 plus a small amount  estimated amount for delinquent tax payments mentioned above.

In reality through July 2013 the City received $5,570,486 in actual tax payments which is slightly more that the 2013 budget of $5,529,126 but significantly less that the adjusted levy amount calculated by the State requirements of $5,739,394

If you compare the $5,788,123 (2014 budget) with last year’s (2013) adopted ad-valorem budget of $5,529,126 the difference is $258,997 which for all practical purposes is the actual increase in budgeted proceeds the City expects to receive from 2013 to 2014.

Thanks Steve