City Council Meeting


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  F.1.       
Meeting Date: 09/03/2019  
Contact: Tracy Cormier, Managing Director of Financial Services

COUNCIL ACTION
AGENDA ITEM:
Conduct the Second Public Hearing on Proposed Tax Rate for Tax Year 2019.
BACKGROUND:
The City held budget workshops on July 20, 2019 and July 25 and 26, 2018.  The proposed General Fund and Debt Service Fund budgets were discussed at that time.  The tax rate necessary to pay the debt obligations and provide the level of operating services as proposed in the budget is 70.1544 cents per $100 valuation, which is a reduction from the last (5) five prior tax years.  This rate is composed of two (2) parts, one (1) of which is the debt service rate of 15.1394 cents per $100 valuation.  This rate has been reduced from the previous year.  The other rate of 55.016 cents per $100 valuation is for maintenance and operations.  Adopting this tax rate will enable the City to cover the cost of building maintenance and renovations, additional personnel and associated benefits, supplies, equipment, contractual services and professional fees.
 
On August 6, 2019 the Council approved a resolution accepting the Tax Year 2019 appraisal roll from the Dallas Central Appraisal District. 
 
FINDINGS:
Current tax laws require the City to publish a notice in news publications and conduct two (2) public hearings if there is a rate being set, which is higher than the effective tax rate.  The effective rate for tax year 2019 is calculated to be $65.8739 cents per $100 valuation.  The proposed tax rate is less than the calculated rollback rate of $70.1554 per $100 valuation.  
FINANCIAL IMPACT:
The FY 2019-20 budget will raise more total property tax revenue than last year’s budget by an amount of $2,567,648 or 8.32% and of that amount $610,361 is tax revenue to be raised from new property added to the tax roll this year. 
RECOMMENDATION:
Staff recommends proposing a tax rate for tax year 2019 of 55.016 cents per $100 valuation for operating and maintenance, and 15.1394 cents per $100 valuation for debt service, for a total tax rate of 70.1554 cents per $100 valuation, to be adopted by Ordinance at the September 17, 2019 Council Meeting held at 7:00 p.m. in the Council Chambers of the Jim Baugh Government Center.

No action is required at this time.
 
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