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Describe the two-step process in determining a city governments property tax levy for the year.

I am having trouble understanding what the two steps should be. Here are excerpts from the textbook:

Ad valorem (based on value) property taxes are a mainstay of financing for many local governments but are not used as a source of revenue by many state governments or by the federal government. Ad valorem taxes may be levied against real property and personal property. Some property taxes are levied on a basis other than property values, one illustration being the tax on some kinds of financial institutions in relation to the deposits at a specified date. Other kinds of taxes are sales taxes, income taxes, gross receipts taxes, death and gift taxes, and interest and penalties on delinquent taxes. The valuation of each parcel of taxable real property, and of the taxable personal property owned by each taxpayer, is assigned by a process known as property assessment. The assessment process differs state by state, and in some states by jurisdictions within the state. The tax rate is set by one of two widely different procedures: (1) The government simply multiplies the assessed valuation of property in its jurisdiction by a flat rate-either the maximum rate allowable under state law or a rate determined by the governing body-or (2) the property tax is treated as a residual source of revenue. In the latter event, revenues to be recognized from all sources other than property taxes must be budgeted; the total of those sources must be compared with the total proposed appropriations in order to determine the amount to be raised from property taxes, subject, of course, to limits imposed by law or legislative policy, economic conditions, and political feasibility. IIllustration 3-6 shows an estimate of the total amount of revenues to be raised from property taxes under the assumption that property taxes are a residual source of revenues. The heading of Illustration 3-6 indicates that it is for the Town of Merrill's General Fund. A similar property taxes are levied. Illustration 3-6 shows that the amount of revenue to be raised from property taxes must, in this case, be estimated six months before the beginning of the next fiscal year. This is one step in determining the tax levy for the year. A second step is the determination from historical data and economic forecasts of the percentage of the tax levy expected to be collectible. (Even though property taxes are a lien against the property, personal property may be removed from the taxing jurisdiction and some parcels of real property may not be salable or valuable enough for the taxing jurisdiction to recover accumulated taxes against the property.) Therefore, the levy must be large enough to allow for estimated uncollectible taxes. For example, assume the Town of Merrill can reasonably expect to collect only 96 percent of the year 2023 property tax levy for its General Fund. Thus, if tax revenue is to be $3,582,000 (per B Illustration 36 ), the gross levy must be $3,582,0000.96, or $3,731,250. Ad valorem (based on value) property taxes are a mainstay of financing for many local governments but are not used as a source of revenue by many state governments or by the federal government. Ad valorem taxes may be levied against real property and personal property. Some property taxes are levied on a basis other than property values, one illustration being the tax on some kinds of financial institutions in relation to the deposits at a specified date. Other kinds of taxes are sales taxes, income taxes, gross receipts taxes, death and gift taxes, and interest and penalties on delinquent taxes. The valuation of each parcel of taxable real property, and of the taxable personal property owned by each taxpayer, is assigned by a process known as property assessment. The assessment process differs state by state, and in some states by jurisdictions within the state. The tax rate is set by one of two widely different procedures: (1) The government simply multiplies the assessed valuation of property in its jurisdiction by a flat rate-either the maximum rate allowable under state law or a rate determined by the governing body-or (2) the property tax is treated as a residual source of revenue. In the latter event, revenues to be recognized from all sources other than property taxes must be budgeted; the total of those sources must be compared with the total proposed appropriations in order to determine the amount to be raised from property taxes, subject, of course, to limits imposed by law or legislative policy, economic conditions, and political feasibility. IIllustration 3-6 shows an estimate of the total amount of revenues to be raised from property taxes under the assumption that property taxes are a residual source of revenues. The heading of Illustration 3-6 indicates that it is for the Town of Merrill's General Fund. A similar property taxes are levied. Illustration 3-6 shows that the amount of revenue to be raised from property taxes must, in this case, be estimated six months before the beginning of the next fiscal year. This is one step in determining the tax levy for the year. A second step is the determination from historical data and economic forecasts of the percentage of the tax levy expected to be collectible. (Even though property taxes are a lien against the property, personal property may be removed from the taxing jurisdiction and some parcels of real property may not be salable or valuable enough for the taxing jurisdiction to recover accumulated taxes against the property.) Therefore, the levy must be large enough to allow for estimated uncollectible taxes. For example, assume the Town of Merrill can reasonably expect to collect only 96 percent of the year 2023 property tax levy for its General Fund. Thus, if tax revenue is to be $3,582,000 (per B Illustration 36 ), the gross levy must be $3,582,0000.96, or $3,731,250

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