Title
Consider and act on a proposed ad valorem tax rate for Fiscal Year 2020-2021 and call a public hearing for September 28, 2020, on the proposed Fiscal Year 2020-21 ad valorem tax rate.
Body
State law requires publishing special notices and conducting a public hearing before adoption of a tax rate if the tax rate exceeds the no new revenue tax rate. The no new revenue tax rate is defined as the tax rate that would produce the same amount of property tax revenue as last year based on the value of the same properties listed on the tax rolls. The City’s calculated no new revenue tax rate is $0.70148 per $100 of assessed valuation. The proposed tax rate is $0.70862 per $100 of assessed valuation, which is equal to the voter approval tax rate.
State law also requires at least 60 percent of the members of the governing body to vote in favor of an ordinance setting a property tax rate that exceeds the no new revenue tax rate. Therefore, at least five members (60 percent) of the City Council will need to vote in favor of the proposed tax rate. If the required 60 percent majority vote in favor of the proposed tax rate cannot be reached, then by State law, the City’s tax rate for Fiscal Year 2020-21 will become the no new revenue tax rate of $0.70148 and this action would require a $584,476 reduction in the proposed budget for the General Fund.
In order to adopt the tax rate at the September 28, 2020, City Council meeting, staff recommends the following proposed calendar of action items.
PROPOSED CALENDAR FOR TAX RATE ADOPTION
9/21/2020 Set Proposed Tax Rate and Date for Public Hearing on the Tax Rate
9/24/2020 Publish Notice of Public Hearing on Tax Increase
Publish Notice of Meeting to Vote on Tax Rate
9/28/2020 Hold Public Hearing to Discuss Tax Rate
Adopt Tax Rate
Recommended/Desired Action
Staff recommends the City Council act on a proposed ad valorem tax rate for Fiscal Year 2020-21 and call a public hearing for September 28, 2020, on the proposed Fiscal Year 2020-2021 ad valorem tax rate.
A motion must be read at the September 21, 2020, City Council meeting as follows; “I move that, upon proper notice and final adoption after the public hearing is held, property taxes be increased by the adoption of a tax rate for Fiscal Year 2020-2021 of $0.70862 per $100 of valuation. The public hearing to consider this rate will be held on September 28, 2020, at 6:00 p.m. The public hearing will be held in Council Chambers at City Hall, 757 N. Galloway, Mesquite, Texas.”
Drafter
Sheree Haynes
Head of Department
Cindy L. Smith