Agenda

Return

10.

City Council Regular Meeting

Meeting Date:

09/10/2019

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 were required as the proposed rate does exceed the effective rate.

The first required public hearing was held on August 27, 2019 regular session of City Council. The second required public hearing was held on September 3, 2019.

During the tax rate adoption process Council can approve a lower rate, 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.

Per Sec 26.05(b) of the Tax Code, the tax rate can only be adopted with more than 60% of the votes in favor of the proposed tax rate. Since Schertz has 7 voting councilmembers, 5 members must vote in favor of the tax rate for it to pass.

GOAL

To adopt a tax rate in compliance with state statues and the City Charter.

COMMUNITY BENEFIT

The programs funded by this tax rate will provide additional benefits and service levels to the community.

SUMMARY OF RECOMMENDED ACTION

Staff recommends adoption of the tax rate of $0.5146

FISCAL IMPACT

The proposed maximum rate maintains quality service to residents and businesses and provides growth in service offerings based on input staff received from Citizens and Council from Retreats, Community Meetings, Citizen Survey, and elections. The current property tax rate is $0.5146 per $100 valuation. The proposed maximum tax rate will be $0.5146 per $100 valuation. The M&O portion of the property tax rate will decrease to $0.3496 from $0.3497 per $100 valuation. The I&S portion will increase to $0.1650 from $0.1649 per $100 valuation.

RECOMMENDATION

Staff recommends that the City Council approve Ordinance No. 19-T-24 approving the Fiscal Year 2019-20 Proposed Tax Rate on first reading.

THE MOTION MUST BE:

“I move that the property tax rate be increased by the adoption of a tax rate of ($0.5146), which is effectively a (1.76%) increase in the tax rate.”

If a different tax rate is made in the motion, the percentage must be calculated over the effective rate of $0.5057.

Attachments
Ordinance 19-T-24