TITLE
Consider an ordinance setting the Tax Rate for Fiscal Year 2019.
SUMMARY
DATE: September 18, 2018
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Setting the Tax Rate for Fiscal Year 2019.
BACKGROUND AND FINDINGS:
Chapter 26 of the Texas Tax Code requires taxing units to comply with truth-in-taxation laws when adopting their tax rates. In addition, Local Government Code Section 140.010 requires a municipality to provide notice of the proposed property tax rate. The Local Government Code notice exempts the City from the notice and publication requirements of Sections 26.04(e), 26.052, and 26.06 of the Texas Tax Code. The notice required by Local Government Code Section 140.010(d) was published in the Killeen Daily Herald on August 26, 2018.
The City has complied with all provisions of the truth-in-taxation and Local Government Code laws regarding the adoption of the tax rate.
The City Manager's proposed FY 2019 Budget used the current tax rate of 74.98¢ per $100 valuation. On August 21, 2018, at a City Council meeting, the Killeen City Council set the preliminary tax rate at the rate of 75.75¢ per $100 valuation. The preliminary tax rate represents the maximum rate that can be adopted for the FY 2019 Budget. The effective tax rate for FY 2019 (2018 tax year) is 74.49¢. The rollback tax rate adjusted for sales tax for FY 2019 (2018 tax year) is 75.75¢.
On September 4, 2018, at a City Council Meeting, the Killeen City Council approved a motion to direct the City Manager to use the current tax rate of 74.98¢ per $100 valuation. It is now necessary that City Council adopt a final tax rate to support the Fiscal Year 2019 Annual Budget and Plan of Municipal Services. Texas Tax Code requires the vote on an ordinance setting a tax rate that exceeds the effective rate to be a record vote and approved by at least sixty (60) percent of the members of the governing body. In order to set the tax rate above the...
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