Boonville council keeps property tax rate at 0.7035 and adopts levy ordinance

The Boonville City Council voted Aug. 19 to adopt an ordinance establishing the citys property tax levy at 0.7035 per $100 of assessed valuation for the fiscal year beginning April 1, 2024. The measure passed on second reading following roll call.

City staff told the council the rate is unchanged from the past three years and was set using pro forma calculations provided by the Missouri State Auditors Office. "The rate is 0.7035," a staff member said during a public hearing announcing the levy. Staff also said collections and rising property valuations have increased revenue even though the rate itself has not changed.

Council members asked how the rate was determined and whether the city could reduce it. "The auditor gives it to me," the staff member said, describing the pro forma form and the auditors role in setting ceilings. Staff cautioned that any voluntary rollback would need to be planned during the budget cycle and could mean offsetting roughly $1,000,000 in lost revenue by cutting services or finding other funding.

Some council members expressed interest in exploring reductions during the next budget process; staff said a rollback would take effect in a later fiscal year and could take years to restore if revenues declined. The council approved the ordinance by roll call.

The ordinance cites compliance with section 137.073 of the Revised Statutes of Missouri and Article X of the Missouri Constitution as part of the auditors pro forma review. The council directed that any discussion of a voluntary rollback be handled in the budget sessions planned for the winter.