Roll Forward Hearing City of New Orleans November 21st, 2019 Roll Forward Hearing Purpose  This hearing will fulfill the Louisiana Constitutional requirement to hold a separate hearing to provide information to the public regarding the quadrennial roll forward request City of New Orleans 1 2020 Ad Valorem Tax 2 ordinances will be introduced, the first to roll back millages to revenue neutrality and the second to roll forward individual millages Ordinance #32,795 Ordinance #32,796 • This ordinance rolls back the citywide millage rate 4.60 mills to 86.09. • City Council may roll forward millages up to the 2019 millage rates (maximum authorized millage) • This roll back represents the mandatory change in millage required to maintain revenue neutrality after the quadrennial reassessment. • After the roll forward, the overall millage levied will remain at 86.09 however, some millages will be rolled forward, while other millages are rolled back or reduced. • Note: assessment increases related to new construction are not considered in the revenue neutrality calculation but will be subject to the final millage rate City of New Orleans • This minimizes the impact to tax payers, while still allowing additional funding for key administration priorities such as public safety and infrastructure • Note: special districts are assessed at their requested rate: DDD, Touro, Garden District 2 2020 Millage Adjustments The amended roll forward ordinance adjusts individual millages to reflect key priorities while keeping the aggregate citywide millage at the roll back level Millages 2019 Roll Back Executive Budget Amended Budget Oct 17 Nov 21 REC 39.37 36.74 37.72 39.03 Non-REC 51.36 49.35 50.78 47.06 90.69 86.09 88.50 86.09 -4.60 -2.19 -4.60 ORDINANCE TOTAL Millage Reduction from 2019 City of New Orleans • The Executive Budget proposed an assessment increase of 15.7% (based on the latest available data from the Assessor) and restored a 50% of the roll back for all millages • The amended Roll Forward Ordinance incorporates the subsequent Board of Review adjustments which lowered the cumulative assessment increase to 13.8% 3 2020 Millage Adjustments (Cont’d) Certain millages have been redirected to focus on public safety and infrastructure  Key millages are being 100% rolled forward to their maximum authorized millage rate: - Police & Fire Sewerage & Water Board City Alimony Neighborhood Housing Improvement Fund  Certain millages that are expiring or renewed at a lower rate in 2021 are levied below the roll back millage: - Economic Development Fund Capital Improvement Fund Audubon Library City of New Orleans 4 2020 Millage Adjustments (Cont’d) Certain millages have been redirected to focus on public safety and infrastructure 2019 Roll Back Roll Forward % of 2019 Fire & Police 19.37 18.81 19.37 100% Sewerage & Water Board 16.23 15.12 16.23 100% City Services 15.10 14.07 15.10 100% Neighborhood Housing Improvement Fund - NHIF 0.91 0.85 0.91 100% Parks & NORD-C 3.00 2.79 2.79 93% Street & Traffic Control Devices 1.90 1.77 1.77 93% Capital Improvement Fund -City Special Fund 1.82 1.70 0.56 31% Economic Development Fund -City Special Fund 0.91 0.85 0.00 0% Audubon 3.31 3.08 1.95 59% Library 5.64 5.25 4.91 87% Action Rolled Forward Rolled Back Reduced Millage City of New Orleans 5 2020 Millage Adjustments (Cont’d) Certain millages have been redirected to focus on public safety and infrastructure General Alimony Roll Back Roll  Forward % of  2019 13.91 12.96 13.91 100% City Services 1.19 1.11 1.19 100% Fire/Police (1) 4.27 3.98 4.27 100% Fire/Police (2) 2.13 1.98 2.13 100% Police - without Homestead Exemption 5.26 4.93 5.26 100% Fire - without Homestead Exemption 7.71 7.22 7.71 100% Parkway & Recreation 3.00 2.79 2.79 93% Street & Traffic Control Devices 1.90 1.77 1.77 93% 39.37 36.74 39.03 99% Sewerage & Water Board (2) 4.46 4.15 4.46 100% Sewerage & Water Board (3) 4.71 4.39 4.71 100% Sewerage & Water Board (4) 7.06 6.58 7.06 100% Audubon Zoological Gardens 0.32 0.30 0.15 47% Aquarium of the Americas 2.99 2.78 1.80 60% Public Library 3.14 2.92 2.41 77% Public Library 2.50 2.33 2.50 100% REC Subtotal Bond Interest & Redemption City of New Orleans 2019 22.50 22.50 22.50 100% Neighborhood Housing and Economic Development 1.82 1.70 0.91 50% Capital Improvement & Infrastructure 1.82 1.70 0.56 31% Other Citywide Subtotal 51.32 49.35 47.06 92% Citywide ORDINANCE TOTAL 90.69 86.09 86.09 95% 6 2020 Special District Millage Adjustments All special district millages levied at requested rates 2019 Roll Back Roll Forward % of 2019 Downtown Development District 17.76 12.47 14.76 100% Garden District Security District 10.00 9.28 9.00 90% Touro- Bouligny Security District 8.01 7.32 8.50 106% Millage City of New Orleans 7 Taxpayer Impact from Ordinance Millage Adjustment The tax bill for residence with a 2020 Fair Market Value of $200,000 and a homestead exemption is reduced by about $4.79 per month or $58 per year Decrease in Annual Taxes Based On Fair Market Value* Fair Market Value Of Home/Property $100,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $750,000 $1,000,000 Residence With Homestead Exemption -$12 -$58 -$81 -$104 -$127 -$150 -$173 -$196 -$311 -$426 Residence Without Homestead Exemption And Commercial Land -$46 -$92 -$115 -$138 -$161 -$184 -$207 -$230 -$345 -$460 Commercial Structures And Personal Property -$69 -$138 -$173 -$207 -$242 -$276 -$311 -$345 -$518 -$690 Public Service Property -$115 -$230 -$288 -$345 -$403 -$460 -$518 -$575 -$863 -$1,150 Decrease in Monthly Taxes Based On Fair Market Value* Fair Market Value Of Home/Property $100,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $750,000 $1,000,000 Residence With Homestead Exemption -$0.96 -$4.79 -$6.71 -$8.63 -$10.54 -$12.46 -$14.38 -$16.29 -$25.88 -$35.46 Residence Without Homestead Exemption And Commercial Land -$3.83 -$7.67 -$9.58 -$11.50 -$13.42 -$15.33 -$17.25 -$19.17 -$28.75 -$38.33 Commercial Structures And Personal Property -$5.75 -$11.50 -$14.38 -$17.25 -$20.13 -$23.00 -$25.88 -$28.75 -$43.13 -$57.50 Public Service Property -$9.58 -$19.17 -$23.96 -$28.75 -$33.54 -$38.33 -$43.13 -$47.92 -$71.88 -$95.83 * Assumes no savings to the taxpayer from the phase-in; eligible taxpayers will pay less from 2020-2022 Assuming a reduction of the aggregate millage of 4.60 mills, the public safety millages not subject to the homestead exemption are maximized City of New Orleans 8 Ad Valorem Tax Phase-In The four year phase-in obligations are shown in the table and apply only to the increase in taxes due to the reassessment, not the entire tax bill Tax Burden During Phase-in for Eligible Taxpayers Tax Year City Tax Payer 2020 75% 25% 2021 50% 50% 2022 25% 75% 2023 0% 100%  The City must absorb the cost of the phase-in by receiving less revenue than implied by revenue neutrality, even without a roll forward - The cost will be largest in the first year as the City by law must waive 75% of revenue associated with any eligible reassessment - The cost must be absorbed by the taxing authority and not shifted to other taxpayers; for example, the cost cannot be considered in the roll forward calculation  The assessor projects an assessment increase of $64M would be eligible for the phase-in - The estimated impact to the general fund is $1.8M City of New Orleans 9 Questions? City of New Orleans