Title
A. Conduct a public hearing regarding the proposed Fiscal Year 2021-22 ad valorem tax rate of $0.70862 per $100 valuation.
B. Approve an ordinance levying the ad valorem taxes for tax year 2021 (Fiscal Year 2021-22).
Body
This public hearing will allow citizen input on the proposed tax rate. The proposed tax rate is $0.70862 per $100 of assessed valuation.
The attached ordinance sets the City’s 2021 ad valorem tax rate at $0.70862 per $100 of valuation.
Effective January 1, 2016, Senate Bill 1760, enacted by the 84th Texas Legislature, requires at least 60 percent of the members of the governing body of a city to vote in favor of an ordinance setting a property tax rate that exceeds the no-new-revenue tax rate. The proposed tax rate of $0.70862 per $100 of assessed valuation exceeds the calculated no-new-revenue tax rate of $0.65190 and therefore will require at least 60 percent (5 or more) of the City Councilmembers to vote in favor of the proposed tax rate.
The proposed tax rate is equal to the current tax rate of $0.70862.
If the required majority cannot be reached and the governing body fails to adopt the proposed tax rate, then by State law, the City’s tax rate for Fiscal Year 2021-22 will be the no-new-revenue rate of $0.65190 and this action would require a $5,111,050 reduction in the adopted budget for the General Fund.
Recommended/Desired Action
Following the public hearing, staff recommends approval of the ordinance.
A motion must be read at the August 16, 2021, City Council meeting as follows: “I move that the property tax rate be increased by the adoption of a tax rate of 0.70862 per $100 of valuation, which is effectively a 8.7 percent increase in the tax rate.”
Attachment(s)
Ordinance
Drafter
Michelle Baccheschi
Head of Department
Cindy L. Smith