The document summarizes ordinances to be adopted by the City Council of Alamo Heights regarding the FY 2020-2021 budget and tax rates. It recommends approval of the operating budget, adoption of a maintenance and operations tax rate of $0.336439 per $100 valuation and an interest and sinking rate of $0.050000, for a total tax rate of $0.386439. It also recommends ratifying a $167,000 increase in property tax revenue compared to the previous year's budget.

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CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Robert Galindo, Finance Director
SUBJECT: Ordinances to be adopted in the following order:
1. FY 2020-2021 Operating Budget
2. 2020 Ad Valorem Tax Rate
3. Ratifying the Increase in Property tax revenue reflected in the FY 2020-
2021 Budget
DATE: September 21, 2020
SUMMARY
The Proposed Operating Budget for the FY 2020–2021 establishes the appropriations for the
General Fund, Utility Fund, Debt Service Fund, Capital Projects Fund, Capital Replacement
Fund, Street Maintenance Fund, and Comprehensive Fund. City Council approval of the budget
is required by City Charter.
The City is proposing to adopt a maintenance and operation (M & O) tax rate of $0.336439 per
$100 of taxable value, which is the rate that will produce tax revenues projected in the FY 2020-
2021 Budget. An interest and sinking (I & S) tax rate of $0.050000 per $100 of taxable value is
proposed to fund the debt payment which would be paid by 2020 property taxes. The total
combined tax rate is $0.386439. This is the existing tax rate approved last year so there is no tax
rate increase.
HB 3195 requires that if the adopted budget raises more total property tax revenues than in the
previous year, a separate vote be made to ratify the property tax increase in the budget. The FY
2020-2021 budget will raise $167,000 more total property taxes than last year’s budget.
Local Government Code requires cities to adopt a budget before the adoption of the tax rate.
Staff recommends approval of these ordinances in the order presented in accordance with state
law.
BACKGROUND INFORMATION
On August 10, 2020, staff formally presented the proposed budget to the City Council and
citizens of Alamo Heights. The proposed budget document is available on the City’s website. A
public hearing was held on the proposed ad valorem tax rate on September 14, 2020. A budget
public hearing was held on September 14, 2020, at the 5:30 p.m. City Council meeting. The
projected property tax revenue within the FY 2020-21 budget is based on the assumption the

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2020 tax rate will be $0.386439 per $100 valuation. The proposed 2020 maintenance and
operation (M&O) rate will remain at $0.336439 per $100 valuation and the proposed 2020
Interest and Sinking (I&S) rate will remain at $0.050000 per $100 to fund debt service to be paid
with tax revenues.
POLICY ANALYSIS
The City Charter Article XIV, Section 2, requires that the City Manager to prepare a budget to
cover all proposed expenditures of the City for the succeeding year and that the budget be
presented to the City Council for consideration and approval. The budget must be prepared in
conformity with state law and a City Council vote is required to set the property tax rate. State
law also requires a separate vote to ratify the property tax revenues increase in the budget.
FISCAL IMPACT
This action will establish an annual operating budget for Fiscal Year 2020-2021.
ATTACHMENTS
Attachment A – Ordinance Adopting FY 2020-2021 Operating Budget
Attachment B – Ordinance Adopting 2020 Ad Valorem Tax Rate
Attachment C – Ordinance Ratifying the Property Tax Revenue Increase in the Budget
______________________ ______________________
Buddy Kuhn Robert Galindo
City Manager Finance Director

3. Attachment A
ORDINANCE NO. ________
AN ORDINANCE MAKING APPROPRIATIONS FOR THE
SUPPORT OF THE CITY OF ALAMO HEIGHTS FOR THE
FISCAL YEAR BEGINNING OCTOBER 1, 2020 AND
ENDING SEPTEMBER 30, 2021; AND ADOPTING THE
ANNUAL BUDGET OF THE CITY OF ALAMO HEIGHTS
FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020
AND ENDING SEPTEMBER 30, 2021
WHEREAS, on the 10th
day of August, 2020, the City Manager of the City of Alamo
Heights, Texas filed with the City Secretary the proposed budget for the City of Alamo Heights,
Texas, for the fiscal year beginning October 1, 2020 and ending September 30, 2021; and
WHEREAS, a public hearing was ordered by the City Council of the City of Alamo
Heights, Texas and a public notice of said hearing was duly posted and published in the San
Antonio Express/News in accordance with applicable state law and the City Council held a public
hearing on September 14, 2020 in the Alamo Heights Council Chambers at 6116 Broadway and
via Zoom; and
WHEREAS, during said public hearing, all interested persons were given the opportunity
to be heard for or against any item or the amount of any item contained in said budget, after which
said public hearing was closed; and
WHEREAS, the City Council, upon full consideration of the budget is of the opinion that
the budget hereinafter set forth is proper and should be approved and adopted.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ALAMO HEIGHTS, TEXAS:
SECTION. 1. Subject to the applicable provisions of state law and the City Charter, the
budget for the fiscal year beginning October 1, 2020 and terminating September 30, 2021, as filed
and submitted by the City Manager, and adjusted by the City Council, containing estimates of
resources and revenues for the year from all of the various sources, and the projects, operations,
activities, and purchases proposed to be undertaken during the year, together with the estimated
costs thereof, and estimated amounts of all other proposed expenditures, is hereby approved and
adopted.

4. Attachment A
SECTION 2. The City Council hereby authorizes the Mayor, and the City Manager to sign
documents authorizing the payment of funds, and to expend public expenditures that have been
expressly approved and appropriated in this budget.
SECTION 3: This ordinance shall become effective immediately after passage.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
ALAMO HEIGHTS, TEXAS THIS 21ST DAY OF SEPTEMBER, 2020.
BOBBY ROSENTHAL, MAYOR
ATTEST:
JENNIFER REYNA, CITY SECRETARY
APPROVED AS TO FORM:
FRANK J. GARZA, CITY ATTORNEY

5. Attachment B
ORDINANCE NO. _______
AN ORDINANCE LEVYING AN AD VALOREM TAX AT
THE RATE OF $0.386439 FOR EVERY $100.00 VALUATION
FOR THE SUPPORT OF THE CITY GOVERNMENT OF
THE CITY OF ALAMO HEIGHTS, TEXAS, SPECIFYING
SEPARATE COMPONENTS OF SUCH RATE FOR
MAINTENANCE AND OPERATIONS AND FOR DEBT
SERVICE; SAID TAXES BEING LEVIED FOR THE 2020
TAX YEAR; PROVIDING FOR DUE AND DELINQUENT
DATES TOGETHER WITH PENALTIES AND INTEREST;
PROVIDING FOR COLLECTION AND ORDAINING
OTHER RELATED MATTERS; AND SETTING AN
EFFECTIVE DATE.
WHEREAS, the appraisal roll of the City of Alamo Heights, Texas for 2020 has been
prepared and certified by the Bexar County Appraisal District and submitted to the City’s Tax
Assessor/Collector; and
WHEREAS, following notice and public hearing in accordance with applicable state law
and based upon said appraisal roll, the City Council has determined a tax rate to be levied for 2020
Tax Year is sufficient to provide the tax revenues required by the City;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALAMO
HEIGHTS, TEXAS:
Section 1. That there is hereby levied for the 2020 tax year on all property, real, personal
and mixed, within the limits of the City of Alamo Heights, Texas, not otherwise exempt by the
Constitution and laws of the State and the Ordinances of this city, a tax rate on $100.00 valuation
as follows:
$0.336439 for the purpose of maintenance and operation
$0.050000 for the payment of principal and interest on debt of this city
$0.386439 Total tax rate
Section 2. That the Bexar County Tax Assessor-Collector shall collect the tax aforesaid as
provided by law.
Section 3. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE
AND OPERATIONS THAN LAST YEAR’S TAX RATE.

6. Attachment B
Section 4. THE TAX RATE WILL EFFECTIVELY BE LOWERED BY 2.1
PERCENT AND WILL LOWER TAXES ON A $100,000.00 HOME BY
APPROXIMATELY $ 8.20.
Section 5. That all taxes levied by virtue of this Ordinance shall be due and payable not
later than the 31st
day of January 2021, and if then not paid, shall be subject to penalties and interest
in the manner provided by law.
Section 6. That the Bexar County Tax Assessor-Collector is hereby authorized to assess
and collect the taxes of the City of Alamo Heights, Texas, employing the above tax rate.
Section 7. That all ordinances and parts of ordinances in conflict with this ordinance are
hereby repealed to the extent of said conflict.
Section 8. That this ordinance shall take effect immediately upon passage.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
ALAMO HEIGHTS, TEXAS THIS 21st DAY OF SEPTEMBER, 2020.
BOBBY ROSENTHAL, MAYOR
ATTEST:
JENNIFER REYNA, CITY SECRETARY
APPROVED AS TO FORM:
FRANK J. GARZA, CITY ATTORNEY

7. Attachment C
ORDINANCE NO. ________
AN ORDINANCE RATIFYING THE PROPERTY TAX
REVENUE INCREASE REFLECTED IN THE FISCAL
YEAR 2020-2021 BUDGET
WHEREAS, Section 102.007(c) of the Texas Local Government requires a separate vote
of the governing body of a municipality to ratify a property tax revenue increase, if any, reflected
in a newly adopted budget; and
WHEREAS, with the adoption of the Fiscal Year 2020-2021 Budget, City Council desires
to raise more revenue from property taxes in the FY 21 Budget than the FY 2020 budget.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ALAMO HEIGHTS, TEXAS THAT:
Section 1. The Fiscal Year 2020-2021 Budget approved by the City Council on September
21, 2020 will raise more total property taxes than the FY 2020 Budget by $167,000 is hereby
ratified.
Section 2. This ordinance shall become effective immediately after passage.
PASSED AND APPROVED this 21st
day of September, 2020.
________________________________
BOBBY ROSENTHAL, MAYOR
ATTEST:
____________________________
JENNIFER REYNA, CITY SECRETARY
APPROVED AS TO FORM:
____________________________
FRANK J. GARZA, CITY ATTORNEY