City Council Meeting


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  G.6.       
Meeting Date: 09/21/2021  
Submitted For: Brandon Wright
Contact: Tracy Cormier, Managing Director of Financial Services

COUNCIL ACTION
Motion by Councilmember Brown-Patrick with a second by Councilmember Hughes to approve as presented. Motion passes 7-0.
AGENDA ITEM:
Conduct a Public Hearing and consider an Ordinance levying ad valorem taxes for FY 2022
BACKGROUND:
The City held budget workshops on July 22 & July 23, 2021.  The proposed General Fund and Debt Service budgets were discussed at that time.  The tax rate necessary to pay debt obligations and provide the level of operating services as proposed in the budget is 70.1554 cents per $100 valuation, which is the same rate that was adopted for Tax Year 2020.  This rate is composed of two (2) parts, the debt service rate of 12.5019 per $100 valuation which is a decrease from Tax Year 2020 amount of 15.3394.  The maintenance and operations rate is 57.6535 cents per $100 valuation which is an increase from Tax Year 2020 amount of 55.016.  The overall proposed tax rate is the same as Tax Year 2020.  Adopting this tax rate will enable the City to cover the costs of building maintenance, renovations, additional personnel and associated benefits, supplies and equipment along with contractual services and professional fees.      

On August 3, 2021, Council approved a resolution accepting the Tax Year 2021 appraisal roll for the Dallas Central Appraisal District. 
FINDINGS:
This Ordinance setting the tax rate for Fiscal Year 2021-2022 conforms to the Property Tax Code. 

THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.

THE TAX RATE WILL EFFECTIVELY BE RAISED BY 11.50 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $26.38.


The disclosure language above is required by state law and is calculated and provided by the taxing district.  
FINANCIAL IMPACT:

The total tax rate required to finance this budget is 70.1554 cents per $100 of valuation, with the maintenance and operating rate of 57.6535 cents per $100 valuation, and the debt service portion reduced from prior fiscal year to 12.5019 cents per $100 valuation. The total tax rate of 70.1554 cents per $100 valuation will provide funding for maintenance and operating expenditures, as well as payment for debt obligations

This budget will raise more revenue from property taxes than last year's budget by an amount of $3,037,622, which is an 8.52 percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $756,686. 
RECOMMENDATION:
Staff recommends that the City Council approve the Ordinance levying ad valorem taxes for FY 2022. THE FOLLOWING PHRASE MUST BE INCLUDED IN THE VERBAL MOTION MADE TO ADOPT THE ORDINANCE: "I move that the property tax rate be increased by the adoption of a tax rate of 0.701554, which is effectively a 6.51 percent increase in the tax rate".   
MANAGEMENT REVIEW
Attachments
Tax Rate Ordinance FY 22


    

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