Agenda

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16.

City Council Regular Meeting

Meeting Date:

09/03/2019

BACKGROUND

At the August 13, 2019 regular session the City Council, by record vote, established a proposed preliminary maximum tax rate of $0.5146, per $100 of value, with the M&O rate at $0.3496 and the I&S portion of $0.1650. The proposed rate is not subject to rollback.

In accordance with Chapter 26.05(d) of the State’s Property Tax Code, a governing body must hold 2 public hearings on the tax rate if the proposed tax rate exceeds the lower of the Effective or Rollback Tax Rate. In this case the hearings are required as the proposed rate exceeds the lower effective rate of $0.5057. The increase is to provide additional funding for strategic staffing level decisions.

The first public hearing was held on August 27, 2019. The second public hearing will be conducted at the September 3, 2019 regular session. During the final tax rate adoption process Council can approve a lower rate at that time, however they will not be able to approve a rate higher than this without republishing the notices and holding additional public hearings. Due to timing constraints set by the State Tax Code 26.05(a), the latest council could set a new preliminary rate was August 13, 2019 without calling special meetings.


Property Tax Rate	$0.5146/100	$0.5146/100
Maintenance & Operations Rate	$0.3496/100	$0.3497/100
Effective Rate	$0.5057/100	$0.4892/100
Effective Maintenance & Operations Rate	$0.3436/100	$0.3238/100
Rollback Rate	$0.5360/100	$0.5146/100
Debt Rate	$0.1650/100	$0.1649/100