TITLE
HOLD a public hearing on the proposed tax rate for the fiscal year beginning October 1, 2021 and ending September 30, 2022.
SUMMARY
DATE: September 7, 2021
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Tax Rate Public Hearing
BACKGROUND AND FINDINGS:
On August 3, 2021, City Council set the preliminary tax rate at $0.7169 per $100 valuation, adopted a resolution setting a public hearing for September 14, 2021 on the preliminary tax rate for the proposed FY 2022 Budget, and scheduling the adoption of the tax rate for September 14, 2021. The preliminary tax rate establishes the ceiling for the FY 2022 Budget. The actual tax rate can be equal to or lower than the preliminary tax rate and not higher.
The proposed FY 2022 Budget was submitted to City Council using a tax rate of $0.7056. City Council set the preliminary tax rate at $0.7169 to allow for a potential bond issue for street reconstruction. City Council later decided to use the Street Maintenance Fee to repay the proposed bond issue for street reconstruction. The no-new-revenue tax rate for FY 2022 is $0.6713 and the voter-approval tax rate for FY 2022 is $0.8357. Since the preliminary tax rate was set above the no-new-revenue tax rate, Texas Property Tax Code requires a public hearing be held prior to the adoption of the final tax rate.
On September 7, 2021, City Council provided a motion of direction to remove $374,279 in property tax revenue from the FY 2022 Budget and lower the proposed tax rate from $0.7056 to $0.7004.
Senate Bill 2 from the 86th Legislature changed the laws regarding public hearings for...
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