2006 Bond Program

Final Property Tax Levy and Assessed Valuation for 2006-07

In sizing the overall 2006 Bond Program, the bond committee analyzed forecasted growth for Phoenix assessed values for the next 25 years; assumed that primary levies (the portion used for General Fund expenses) would be maximized throughout the program; and assumed no change in the current $1.82 property tax rate.

Based on the final assessed valuation and property tax levy information received from the County Assessor in February, our 2006-07 secondary property tax revenues will be $808,000 less than the amount used in the bond program forecast.

In recent years, the Maricopa County assessor has updated residential values every other year. In preparing the assessed valuation forecast used for the bond committee’s deliberations, the assessor advised that he would begin using an annual update for residential properties. Based on this change in assessment practice, the bond committee forecast assumed an overall growth rate of 7.5 percent. The annual reassessment did not occur for 2006-07 values. Therefore, final assessed values grew by 7.38 percent - a loss of $14.8 million in assessed value or $808,000 in secondary property tax revenues.

The assessor has advised that annual updates will begin next year. Therefore, at this time, we are optimistic that it will not be necessary to adjust the program for this shortfall in the first year.

Last Modified on 07/25/2006 10:02:18