Title
A. Conduct a public hearing regarding the proposed Fiscal Year 2020-21 ad valorem tax rate of $0.70862 per $100 valuation.
B. An ordinance levying the ad valorem taxes for tax year 2020 (Fiscal Year 2020-21).
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 2020 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 $0.70148 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 a 3.5 percent reduction to the current tax rate of $0.73400.
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 2020-21 will be the no new revenue rate of $0.70148 and this action would require a $584 thousand reduction in the adopted budget for the General Fund.
Recommended/Desired Action
Following the public hearing, staff recommends approval of the ordinance.
Attachment(s)
Ordinance
Drafter
Sheree Haynes
Head of Department
Cindy L. Smith