Public Hearing on the Proposed Tax Rate - Conduct a public hearing regarding the adoption of the FY 2020-21 Tax Rate. (First required public hearing) (M. Browne/B. James/J. Walters)
BACKGROUND
At the August 11, 2020, 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 $0.3495 and the I&S portion of $0.1651. The proposed rate is not higher than the voter-approval rate and 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 required as the proposed rate exceeds the lower no-new-revenue rate of $0.5079.
The first public hearing is tonight, August 25, 2020. A second public hearing will be conducted at the September 1, 2020 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 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 8, 2020 without calling special meetings or declaring an emergency reading of the tax rate ordinance.