Agenda

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15.

City Council Regular Meeting

Meeting Date:

08/24/2021

BACKGROUND

At the August 10, 2021, regular session the City Council, by record vote, established a proposed preliminary maximum tax rate of $0.5121, per $100 of value, with the M&O rate at $0.3517 and the I&S portion of $0.1604. To Voter-Approval Rate is $0.5242 and the proposed rate is lower which means the tax rate does not have to be on the upcoming November ballot.

In accordance with Chapter 26.05(d) of the State’s Property Tax Code, a governing body must hold a public hearing on the tax rate if the proposed tax rate exceeds the lower of the no-new-revenue tax rate or the voter-approval tax rate. In this case a hearing is not required as the proposed rate does not exceed the lower no-new-revenue rate of $0.5146.

The first public hearing is tonight, August 24, 2021. A second public hearing will be conducted at the September 7, 2021 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 potentially holding an additional public hearing. Due to timing constraints set by the State Tax Code 26.05(a), the latest council could set a new preliminary rate is September 7, 2021 without calling special meetings or declaring an emergency reading of the tax rate ordinance.

	FY 2021-22	FY 2020-21
Property Tax Rate	$0.5121/100	$0.5121/100
Maintenance & Operations Rate	$0.3517/100	$0.3470/100
No-New-Revenue Rate	$0.5146/100	$0.5079/100
No-New-Revenue Maintenance & Operations Rate	$0.3515/100	$0.3475/100
Voter-Approval Rate	$0.5242/100	$0.5247/100
Debt Rate	$0.1604/100	$0.1651/100