Agenda No. 10.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | August 25, 2020 |
| Department: | City Secretary |
| Subject: | 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.
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.
| Property Tax Rate | $0.5146/100 | $0.5146/100 |
| Maintenance & Operations Rate | $0.3495/100 | $0.3496/100 |
| No-New-Revenue Rate | $0.5079/100 | $0.5057/100 |
| Effective Maintenance & Operations Rate | $0.3470/100 | $0.3436/100 |
| Rollback Rate | N/A | $0.5360/100 |
| Voter-Approval Rate | $0.5247/100 | N/A |
| Debt Rate | $0.1651/100 | $0.1650/100 |