Pima Community College is paying off the last of its long-term bond debt, reducing to zero the College’s secondary property tax rate for fiscal year 2014-15 after the PCC Governing Board voted Wednesday to approve the budget and property tax rates.
At a Special Meeting, the Governing Board approved a 2.0 percent increase in the primary property tax levy for fiscal year 2014-15, as allowed by state law. The total increase in primary property tax revenues from both new and existing property compared to the fiscal year 2013-2014 budget will be approximately $3.9 million: $1.9 million from existing property, and $2.0 million from new. The total primary property tax levy for fiscal year 2015 is projected to be $100.3 million.
The revenue helps fund PCC operations and fiscal year 2014-15 priorities such as enhancing student support services, improving developmental education, supporting innovative programs, and Science, Technology, Engineering and Mathematics (STEM) initiatives. A presentation made to the Board of Governors is available on the College’s website here.
The proposed primary property tax levy will increase the primary property tax rate from the levy neutral rate of $1.3083 to a rate of $1.3344 per $100 of net assessed valuation. This proposed primary tax rate will result in a tax bill of $133.44 for a home with full cash value of $100,000. With reassessed property valuations taken into consideration, many residential property taxpayers should expect an increase of less than $1.00 for a home with full cash value of $100,000.
The College will retire its existing General Obligation bond debt by June 30, 2014. The College’s secondary property tax rate will decrease from 0.0187 to zero and the associated secondary tax levy for 2014-2015 will be decreased by approximately $1.4 million to zero.
“We are pleased to be retiring the last of the College’s debt. We have made a concerted effort in recent years to relieve the College and taxpayers of long term debt,” said Dr. David Bea, Executive Vice Chancellor for Finance and Administration. “Retiring our bond debt will remove the need to levy a secondary tax in fiscal year 2014-15 and beyond, which will further reduce property tax rates to support PCC.”
The Board also voted Wednesday to approve the College’s fiscal 2014-15 budget. The total budget is $266.2 million, a decrease of $17.8 million, or 6.3 percent, primarily due to decreased demand for federal financial aid, which is distributed to students.