Sec. 16-53. - Maximum levy.

(a)

Beginning in fiscal year 2007, the city may not levy a tax in an amount more than three and one-half percent in excess of the amount levied and certified by the city for the prior year. The amount levied by the city is deemed to be consistent with the three and one-half percent levy growth cap if the tax rate is not more than 103.5 percent of the prior year's tax rate. In all years when a revaluation is not being implemented, a tax rate is deemed to be 103.5 percent or less of the prior year's tax rate if the tax on a parcel of real property, the value of which is unchanged for purpose of taxation, is no more than 103.5 percent of the prior year's tax on the same parcel of real property. In any year when a revaluation is being implemented, the tax rate is deemed to be 103.5 percent of the prior year's tax rate upon certification by the department of finance for the city.

(b)

The amount levied by the city may exceed the three and one-half percent increase only upon approval by a supermajority of four of the city council.

(c)

The amount levied by the city may exceed the percentage increase as specified in subsection (a) of this section if one of the following occurs:

(1)

The city forecasts or experiences a loss in total non-property tax revenues and the loss is certified by the director of finance.

(2)

The city experiences or anticipates an emergency situation, which causes or will cause the levy to exceed this percentage increase specified in subsection (a). Without limiting the generality of the foregoing, an emergency shall be deemed to exist when the city experiences or anticipates health insurance costs, retirement contributions or utility expenditures which exceed the prior fiscal year's health insurance costs, retirement contributions or utility expenditures by a percentage greater than three times the percentage increase as specified in subsection (a) of this section.

(3)

The city forecasts or experiences debt services expenditures which exceed the prior year's debt service expenditures by an amount greater than the percentage increase as specified in subsection (a) of this section and which are the result of bonded debt issued in a manner consistent with general law or a special act.

(4)

The city experiences substantial growth in its tax base as the result of major new construction which necessitates either significant infrastructure or school housing expenditures by the city or a significant increase in the need for essential municipal services and such increase in expenditures or demand for services is certified by the director of finance.

(Ch. 403, § I, 10-3-06)