Tax Rate

1. ADMINISTRATION AND
FINANCE
Presented by:
Robert Galindo
Finance Director
PROPOSED 2019 PROPERTY TAX RATE
ITEM # 8
AUGUST 12, 2019

2. PROPOSED TAX RATE 2019
The City is required by Ch. 26 of the Texas Property
Code:
To determine and publish the effective tax rate and the
rollback rate
Decide how much revenue is needed and calculate the
rate required to raise that amount
Publish notices and if the proposed tax rate will exceed
the effective or rollback rate, hold two public hearings
Adopt a tax rate

3. PROPOSED 2019 TAX RATE PER $100
Proposed total tax rate will be $0.386439
Proposed Maintenance and Operation (M&O) tax rate of
$0.336439 to pay for operations
Proposed Interest and Sinking (I&S) rate of $0.050000 to pay for
debt service
M&O Rate $0.336439
I&S Rate $0.050000
Total Tax Rate $0.386439

4. PROPOSED 2019 TAX RATE
Freeze Adjusted Taxable Value $1,368,727,412
X
Proposed Tax Rate $0.386439/$100
Taxable Revenue $5,289,297
Plus Tax Freeze Revenue $1,474,537
Total Property Tax Revenue $6,763,834

5. FISCAL IMPACT
O&M (General Fund) $5,888,723
I&S (Debt Service Fund) $ 875,111
Total Property Tax Revenue $6,763,834

6. 2019 EFFECTIVE AND ROLLBACK TAX RATES
Effective Tax Rate is $0.385661
(Rate that would provide the same amount of revenue received
in prior year on properties taxed in both years which excludes
new values)
Rollback Tax Rate is $0.424832
(Calculated maximum rate allowed by law without triggering a
possible petition for voter approval)

7. POLICY ANALYSIS
The proposed tax rate of $0.386439 exceeds the effective tax rate of
$0.385661
As a result, City Council is required to hold two public hearings for the
proposed 2019 property tax rate
County will publish notices, on behalf of the City, pursuant to established Truth-
in-Taxation Guidelines
City Council is scheduled to consider the adoption of the proposed tax rate on
September 23, 2019

8. 8
Monday, August 26, 2019 First Public Hearing on 2019 Proposed Ad Valorem Tax Rate
Monday, September 9, 2019 Second Public Hearing on 2019 Proposed Ad Valorem Tax Rate
Monday, September 23, 2019
City Council consideration of FY 2019-20 Proposed Budget and
2019 Ad Valorem Tax Rate
PROPOSED SCHEDULE

9. ACTIONS REQUIRED
City Council vote to place a proposal to adopt the
2019 tax rate on the agenda for September 23, 2019
as an action item
Approval for Proposed Schedule to hold public
hearings and future consideration of 2019 Proposed
Tax Rate as suggested on August 26, 2019 and
September 9, 2019

10. COUNCIL ACTIONS REQUIRED
I move to set the proposed 2019 Tax Rate be $0.386439
per $100 valuation composed of the M&O Rate of
$0.336439 and I&S Rate of $0.050000.
I move the City hold two public hearings for future
consideration of the 2019 Proposed Tax Rate on August 26,
2019 and September 9, 2019