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FINANCIAL MANAGEMENT DEPARTMENT <br /> #2005-06 <br /> February 22, 2005 <br /> MEMO TO: Honorable Mayor and City Council <br /> FROM: Steve G , City Manager <br /> Ron Ne , Finance Director <br /> SUBJECT: 2004 Prop rty Tax Levy Abatement Ordinance for Budget Year 2005-2006 <br /> When Ordinance #2004-20 was passed to approve the General Obligation Bonds, Series <br /> 2004A, the interest was capitalized and included for the year 2004 as a tax sufficient to cover the <br /> I cost of the principal and interest. That amount was $1,505,931.25. See Attachment 1. <br /> Last December the City Council levied $860,413 for the 2004A General Obligation Bond <br /> Issue. See Attachment 2. That amount was taken from the 2004A G.O. Bond debt schedule for <br /> payments to be made in FY 06. See Attachment 3. <br /> Unless we abate the difference, the City Clerk will levy the full amount as set by the bond <br /> ordinance and our tax levy will increase by $645,518. As a result our tax rate would increase by <br /> $.08 per $100 of assessed value. The accompanying ordinance abates the levy back to the <br /> intended $860,413 and keeps the rate at$1.27. <br />