The finance director presented the proposed FY 2016-17 property tax rate of $0.389900 per $100 valuation to the city council. This rate is lower than the previous year and higher than the effective rate of $0.377771, requiring two public hearings. The proposed rate would generate $6,182,769 in property tax revenue. The director requested council approval to hold public hearings on August 22nd and September 12th and to vote on adopting the rate on September 26th.

1. Proposed FY 2016-17
Property Tax Rate
Presented By: Robert Galindo
Finance Director
Item # 8
City Council Meeting
August 8, 2016

2. Proposed Tax Rate
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
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3. Proposed FY2016 Tax Rate
 Proposed total tax rate will be lowered to $0.389900
per $100 valuation
 Proposed Maintenance and Operation (M&O) tax
rate of $0.332900 to pay for operations
 Proposed Interest and Sinking (I&S) rate of
$0.057000 to pay for debt service
M&O Rate $0.332900
I&S Rate $0.057000
Total Tax Rate $0.389900
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4. FY 2016 Property Tax Revenue
Freeze Adjusted Taxable Value $1,270,157,524
X
Proposed Tax Rate $0.389900/$100
Taxable Revenue $4,952,344
Plus Tax Freeze Revenue $1,230,425
Property Tax Revenue $6,182,769
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5. Effective and Rollback Tax Rates
Effective Tax Rate is $0.377771
(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 $0.414915
(Calculated maximum rate allowed by law
without triggering a possible petition for
voter approval) 5

6. Policy Analysis
 The proposed tax rate of $0.389900 exceeds the
effective tax rate of $0.377771
 As a result, City Council is required to hold two public
hearings which are recommended to be scheduled on
August 22th and September 12th
 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 26th
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7. 7
Proposed Schedule
Monday, August 22 First Public Hearing on 2016 Proposed
Ad Valorem Tax Rate
Monday, September 12 First Public Hearing for FY 2016-17
Proposed Budget and Second on 2016
Proposed Ad Valorem Tax Rate
Monday, September 26 City Council adoption of FY 2016-17
Budget and 2016 Ad Valorem Tax Rate

8. Actions Required
Texas Property Tax Code requires:
City Council vote to place a proposal to adopt the
2016 tax rate on the agenda as suggested on
September 26th as an action item
Approval of Proposed Schedule to hold public
hearings and future consideration of FY 2016
Proposed Tax Rate as suggested on August 22nd
and September 12th
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9. Council Actions Required
I move that the proposed 2016 Tax Rate be
$0.389900 per $100 valuation composed of the
M&O Rate of $0.332900 and I&S Rate of
$0.057000.
I move the city hold two public hearings for future
consideration of the 2016 Proposed Tax Rate on
August 22nd and September 12th
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