Res. No. 1166 Title RESOLUTION AMENDING AND RESTATING THE RESOLUTION TO PROVIDE THE AMOUNTS NECESSARY FOR THE SUPPORT OF THE GOVERNMENT OF THE CITY OF NEW YORK AND THE COUNTIES THEREIN AND FOR THE PAYMENT OF INDEBTEDNESS THEREOF, FOR THE FISCAL YEAR BEGINNING ON JULY 1, 2003 AND ENDING ON JUNE 30, 2004, BY THE LEVY OF TAXES ON THE REAL PROPERTY IN THE CITY OF NEW YORK, IN ACCORDANCE WITH THE PROVISIONS OF THE CONSTITUTION OF THE STATE OF NEW YORK, THE REAL PROPERTY TAX LAW AND THE CHARTER OF THE CITY OF NEW YORK. Body By Council Member David I. Weprin Whereas, on April 15, 2003, pursuant to the Section 249 of the Charter of the City of New York ("the Charter"), the Mayor of the City of New York (the "Mayor") submitted to the Council of the City of New York (the "Council"), the executive budget for the support of the government of the City of New York and the counties therein (collectively, the "City") for the fiscal year beginning on July 1, 2003 and ending on June 30, 2004 ("Fiscal 2004"); and Whereas, on May 25, 2003, pursuant to Section 1514 of the Charter, the Commissioner of the Department of Finance (the "Commissioner") delivered, to the Council, the certified assessment rolls for all real property assessable for taxation in the City in each borough thereof for Fiscal 2004, a certified copy of which is in the Office of the Clerk of the City pursuant to Section 516, Real Property Tax Law (the "Fiscal 2004 Assessment Rolls"); and Whereas, on June 27, 2003, the Council adopted a resolution in which the Council computed and certified the current base proportion, the current percentage and the base percentage of each class of real property in the City for Fiscal 2004 pursuant to Section 1803-a(1), Real Property Tax Law (the "Current Base Proportion Resolution"); and Whereas, on June 27, 2003, pursuant to Section 1803-a, Real Property Tax Law, the Council adopted a resolution in which the Council adjusted the current base proportion of each class of real property in the City for Fiscal 2004, to reflect the additions to, and full or partial removal from, the Fiscal 2004 Assessment Rolls (the "Adjusted Base Proportion Resolution"); and Whereas, on June 27, 2003, pursuant to Section 254 of the Charter, the Council adopted the budget for the support of the government of the City and for the payment of indebtedness thereof for Fiscal 2004 (the" Fiscal 2004 Budget"); and Whereas, on June 27, 2003, pursuant to Section 1515(a) of the Charter, the Mayor prepared and submitted to the Council, a statement setting forth the amount of the Fiscal 2004 Budget as approved by the Council (the "Fiscal 2004 Budget Statement") and an estimate of the probable amount of receipts into the City treasury during Fiscal 2004 from all the sources of revenue of the general fund and all receipts other than those of the general fund and taxes on real property, a copy of which is attached hereto as Exhibit A (the "Fiscal 2004 Revenue Estimate"); and Whereas, on June 27, 2003, pursuant to Section 1516 of the Charter, the Council adopted a resolution to provide the amounts necessary for the support of the government of the City, among other things, by the levy of taxes on real property in the City (the "Tax Fixing Resolution"); and Whereas, after the adoption of the Current Base Proportion Resolution, the Adjusted Base Proportion Resolution, the Fiscal 2004 Budget and the Tax Fixing Resolution, Section 1803-a, Real Property Tax Law, was amended to lower the allowable percent increase in the current base proportion as compared with the previous year's adjusted base proportion from 5.0 percent to 2.0 percent; and Whereas the amendment to Section 1803-a, Real Property Tax Law, requires the amending and restating of the Tax Fixing Resolution; NOW THEREFORE, be it resolved by The Council of The City of New York as follows: Section 1. Fixing of Real Property Tax Rates for Fiscal 2004. a. Determining the Amount of the Real Property Tax Levy. (i) The total amount of the Fiscal 2004 Budget as set forth in the Fiscal 2004 Budget Statement is $43,658,214,665. (ii) The estimate of the probable amount of receipts into the City treasury during Fiscal 2004 from all the sources of revenue of the general fund and all receipts other than those of the general fund and taxes on real property as set forth in the Fiscal 2004 Revenue Estimate is $32,340,801,665. (iii) Pursuant to Section 1516 of the Charter, the Council hereby determines that the amount required to be raised by tax on real property, including surcharges, shall be $11,317,413,000, which is derived from deducting the amount set forth in the Fiscal 2004 Revenue Estimate from the amount of the Fiscal 2004 Budget. (iv) In order to achieve a real property tax yield of $11,317,413,000, including surcharges, due to provision for uncollectible taxes and refunds and collection of levies from prior years, the Council hereby determines that a real property tax levy of $12,250,660,984 will be required, calculated as follows: Not Subject to the 2 1/2 Percent Tax Limitation: For Debt Service: Funded Debt $2,606,239,572 Amount Required for Debt Service and Financing as: Provision for Uncollectible Taxes $216,986,336 Provision for Refund $49,050,877 Collection of Prior Years' Levies ($51,123,449) $2,821,153,336 Subject to the 2 1/2 Percent Tax Limitation: For Debt Service: Temporary Debt Interest on Temporary Debt For General Operating Expenses: $42,109,000 Funds Required: $8,669,064,428 Amount Required for Debt Service and Operating Expenses as: Provision for Uncollectible Taxes $725,261,648 Provision for Refunds $163,949,123 Collection of Prior Years' Levies ($170,876,551) 9,429,507,648 TOTAL REAL PROPERTY TAX LEVY $12,250,660,984 The Council hereby determines that such amount, levied at such rates on the classes of real property pursuant to paragraph (iv) of subsection b below, together with surcharges, will produce a balanced budget within generally accepted accounting principles for municipalities. (v) The real property tax levy, net of provision for uncollectible taxes and refunds and the collection of levies from prior years, determined pursuant to clause (iv) above shall be applied as follows: (A) For payment of debt service not subject to the 2 1/2 percent tax limitation:( $2,606,239,572 (B) For debt service on short-term debt subject to the 2 1/2 percent tax limitation: $42,109,000 (C) To provide for conducting the public business of the City and to pay the appropriated expenditures for the counties therein as set forth in the Fiscal 2004 Budget in excess of the amount of revenues estimated in the Fiscal 2004 Revenue Estimate: $8,669,064,428 b. Authorizing and Fixing the Real Property Tax Rates. (i) Assessed Valuation Calculations of Taxable Real Property in the City. The Fiscal 2004 Assessment Rolls set forth the following valuations by class within each borough of the City. (A) The assessed valuation by class of real property for the purpose of taxation in each borough of the City, exclusive of the assessed valuation of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes is set forth below: Assessment by Class of Property Subject to Taxation for all Purposes Borough All One, Two and Three Family Residential Real Property* All Other Residential Real Property Utility Real Property All Other Real Property Assessment of Property Subject to Taxation for All Purposes Manhattan $456,381,383 $22,967,701,816 $2,589,810,839 $34,566,257,800 $60,580,151,838 The Bronx 976,489,041 2,348,886,348 731,231,624 1,744,587,534 5,801,194,547 Brooklyn 3,512,648,653 4,426,055,665 1,440,117,167 3,815,917,239 13,194,738,724 Queens 5,040,125,922 4,526,542,514 1,775,218,997 5,265,610,447 16,607,497,880 Staten Island 1,793,350,496 203,284,277 485,245,610 936,203,988 3,418,084,371 TOTAL $11,778,995,495 $34,472,470,620 $7,021,624,237 $46,328,577,008 $99,601,667,360 (B) The assessed valuation by class of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes in each borough of the City is set forth below: Assessment by Class of Veterans' Property Exempted under State Law from Tax for General Purposes but Subject to Tax for School Purposes Borough All One, Two and Three Family Residential Real Property* All Other Residential Real Property Utility Real Property All Other Real Property Total Assessment of Veterans' Property Exempted under State Law from Tax for General Purposes but Subject to Tax for School Purposes Manhattan $631,111 $58,047,512 $0 $5,000 $58,683,623 The Bronx 11,838,948 2,979,890 |1013| 9,387 14,828,225 Brooklyn 36,304,531 5,862,016 |1013| 23,665 42,190,212 Queens 70,722,597 27,096,868 |1013| 20,583 97,840,048 Staten Island 38,241,812 643,729 |1013| 2,550 38,888,091 TOTAL $157,738,999 $94,630,015 $0 $61,185 $252,430,199 *Includes condominiums of three stories or fewer that have always been condominiums. (ii) Chapter 389 of the Laws of 1997 established a new real property tax exemption providing school tax relief (Section 425, Real Property Tax Law). Pursuant to subdivision 8 of Section 425, the assessment by tax class of property subject to taxation for all purposes and the assessment by tax class of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes has been increased by the amounts shown below for purposes of: (a) determining the City's tax and debt limits pursuant to law; (b) determining the amount of taxes to be levied; (c) calculating tax rates by class; and (d) apportioning taxes among classes in a special assessing unit under Article 18, Real Property Tax Law. (A) The assessed valuation by class of real property for the purpose of taxation in each borough of the City exempted under Section 425, Real Property Tax Law, exclusive of the assessed valuation of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes is set forth below: Assessment by Class of Property Exempted under Section 425, Real Property Tax Law, for All Purposes Borough All One, Two and Three Family Residential Real Property* All Other Residential Real Property** Utility Real Property Exempted under Section 425, Real Property Tax Law, for All Purposes Manhattan $4,145,334 $163,459,271 $42,900 $167,647,505 The Bronx 58,464,365 19,048,935 11,700 77,525,000 Brooklyn 188,754,597 40,933,726 35,750 229,724,073 Queens 284,145,976 94,192,755 60,450 378,399,181 Staten Island 110,950,482 2,888,764 9,852 113,849,098 TOTAL $646,460,754 $320,523,451 $160,652 $967,144,857 (B) The assessed valuation by class of veterans' real property exempt under state law from tax for general purposes and exempt under Section 425, Real Property Tax Law, for school purposes in each borough of the city is set forth below: Assessment by Class of Veterans' Property Exempted under Section 425, Real Property Tax Law, for School Purposes Borough All One, Two and Three Family Residential Real Property* All Other Residential Real Property** Total Assessment of Veterans' Property Exempted under Section 425, Real Property Tax Law, for School Purposes Manhattan $3,140 $1,396 $4,536 The Bronx 10,614 3,216 13,830 Brooklyn 28,947 5,960 34,907 Queens 18,449 3,175 21,624 Staten Island 11,161 178 11,339 TOTAL $72,311 $13,925 $86,236 *Includes condominiums of three stories or fewer that have always been condominiums. ** Only residential real property held in the cooperative or condominium form of ownership qualifies for the real property tax exemption providing school tax relief. (iii) Operating Limit Provisions. The Council hereby determines that the amount to be raised by tax on real property for the Fiscal 2004 Budget, together with surcharges, pursuant to clause (iii) of subsection (a) of Section 1 hereof does not exceed the limit imposed by Section 10, Article VIII of the Constitution of the State of New York, as amended, and Article 12-A, Real Property Tax Law (the "Operating Limit Provisions"). (A) The Operating Limit Provisions require that the City not levy taxes on real property in any fiscal year in excess of an amount equal to a combined total of two and one-half percent (2 1/2 %) of the average full valuation of taxable real property, less (i) the amount to be raised by tax on real property in such year for the payment of the interest on and the redemption of certificates or other evidence of indebtedness described therein and (ii) the aggregate amount of district charges, exclusive of debt service, imposed in such year by business improvement districts pursuant to Article 19-A, General Municipal Law. (B) The Operating Limit Provisions require that average full valuations of taxable real property be determined by taking the assessed valuations of taxable real property on the last completed assessment roll and the four (4) preceding assessment rolls of the City and applying thereto the special equalization ratios which such assessed valuations of each such roll bear to the full valuations as fixed and determined by the State Office of Real Property Services ("ORPS") pursuant to Section 1251, Real Property Tax Law, as shown below: Fiscal Year Assessed Valuations Assessment Percentage Full Valuations 2000......................................................................... $80,885,286,485 0.2466 $328,001,972,770 2001......................................................................... 84,319,741,571 0.2340 360,340,775,944 2002......................................................................... 89,539,563,218 0.2283 392,201,328,156 2003......................................................................... 94,506,250,871 0.2204 428,794,241,701 2004......................................................................... 99,854,097,559 0.2037 490,201,755,322 AVERAGE $399,908,014,779 2 1/2 percent thereof for Fiscal 2004.........................................................................$9,997,700,369 Less debt service subject to the 2 1/2 percent tax limitation: Temporary debt Interest on temporary debt...............................................................................($42,109,000) Less aggregate amount of district charges subject to the 2 1/2 percent tax limitation............................................................................................................................($62,114,878) Constitutional amount subject to the limitation that may be raised for other than debt service in accordance with the provisions of Section 10, Article VIII, of the State Constitution $9,893,476,491 (iv) Adjusted Base Proportions. Pursuant to the Adjusted Base Proportion Resolution, the Council certified the following adjusted base proportions to be used in determining the Fiscal 2004 tax rates for the four classes of properties: All One-, Two- and Three-Family Residential Real Property*...............................................................14.0902 All Other Residential Real Property.................................................35.5629 Utility Real Property...........................................................................7.1175 All Other Real Property..................................................................43.2294 Total........100.0000 *Includes condominiums of three stories or fewer that have always been condominiums. (v) Tax Rates on Adjusted Base Proportions. (A) Pursuant to Section 1516 of the Charter, the Council hereby authorizes and fixes the rates of tax for Fiscal 2004 (1) by class upon each dollar of assessed valuation of real property subject to taxation for all purposes of, and within, the City, as fixed in cents and thousandths of a cent per dollar of assessed valuation, as follows: All One, Two and Three Family Residential Real Property* All Residential Real Property Utility Real Property All Other Real Property Subject to the 2 1/2 percent tax limitation as authorized by Article VIII, Section 10, of the State Constitution including a reserve for uncollectible taxes......................................................... 0.11183 0.09711 0.09558 0.08799 Not subject to the 2 1/2 percent tax limitation as authorized by Article VIII, Sections 10 and 11 of the State Constitution including a reserve for uncollectible taxes................................... 0.03367 0.02909 0.02860 0.02632 Decimal rate on adjusted proportion for all purposes............................................ 0.14550 0.12620 0.12418 0.11431 *Includes condominiums of three stories or fewer that have always been condominiums. and (2) by class upon each dollar of assessed valuation of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes of, and within, the City, as fixed in cents and thousandths of a cent per dollar of assessed valuation, as follows: All One, Two and Three Family Residential Real Property* All Other Residential Real Property Utility Real Property All Other Real Property Subject to the 2 1/2 percent tax limitation as authorized by Article VIII, Section 10, of the State Constitution including a reserve for uncollectible taxes...................................................... 0.07179 0.06257 0.00000 0.05675 Not subject to the 2 1/2 percent tax limitation as authorized by Article VIII, Sections 10 and 11, of the State Constitution including a reserve for uncollectible taxes................................ 0.00582 0.00507 0.00000 0.00460 Decimal rate on adjusted proportion for all veterans' property exempted under state law from tax for general purposes but subject to tax for school purposes....................................................... 0.07761 0.06764 0.00000 0.06135 *Includes condominiums of three stories or fewer that have always been condominiums. Section 2. Authorization of the Amendment and Restatement of the Levy of Real Property Taxes for Fiscal 2004 a. Pursuant to Section 1517 of the Charter, the Council hereby authorizes and directs the Commissioner to (i) set down in the Fiscal 2004 Assessment Rolls, opposite to the several sums set down as the valuation of real property, the amended and restated respective sums, in dollars and cents, to be paid as a tax thereon, rejecting the fractions of a cent and add and set down the aggregate valuations of real property in the boroughs of the City and (ii) send a certificate of such aggregate valuation in each such borough to the Comptroller of the State. b. Pursuant to Section 1518 of the Charter, immediately upon the completion of the Fiscal 2004 Assessment Rolls, the City Clerk shall procure the proper amended and restated warrants in the form attached hereto as Exhibit B to be signed by the Public Advocate of the City ("Public Advocate") and counter-signed by the City Clerk authorizing and requiring the Commissioner to collect the several sums therein mentioned according to law and immediately thereafter the Fiscal 2004 Assessment Rolls of each borough shall be delivered by the Public Advocate to the Commissioner with proper warrants, so signed and counter-signed, annexed thereto. Section 3. Effective Date. The Tax Fixing Resolution, as hereby amended and restated, shall remain in full force and effect, and this resolution shall take effect as of the date hereof. EXHIBIT A FISCAL 2004 BUDGET STATEMENT AND FISCAL 2004 REVENUE ESTIMATE EXHIBIT B FORM OF WARRANT WARRANT To Martha E. Stark, the Commissioner of Finance of the City of New York: You are hereby authorized and required, in accordance with the provisions of the Real Property Tax Law and the Charter of the City of New York, to collect the real property tax on the properties named and described in the real property assessment roll in accordance with the assessments thereon and the tax rates fixed by the City Council for the fiscal year beginning on July 1, 2003. Public Advocate of the City of New York Clerk of the City of New York (SEAL) ( The tax fixing resolution adopted by the Council on June 27, 2003 projected the amount of property tax revenue necessary for the payment of debt service for Fiscal 2004 to be $2,606,239,572. However, since the adoption of the June 27, 2003 tax fixing resolution, the budget for Fiscal 2003 has been modified( by budget modification MN-8 for Fiscal 2003) to recognize an additional 4110,000,000 and appropriate this amount to the fiscal 2003 Budget Stabilization Account to prepay debt service on long-term bonds for Fiscal 2004. The Fiscal 2004 Budget has not yet been modified to reflect this prepayment. Even with this reduction in debt service, the amount levied by tax on real property for the Fiscal 2004 Budget, together with surcharges, does not exceed the Operating Limit Provisions as defined in clause (iii) of subsection (b) of Section 1 hereof. 10