PPT Proposed Ad Valorem 2021 Tax Rate

1. ADMINISTRATION AND
FINANCE
Presented by:
Robert Galindo
Finance Director
PROPOSED 2021 PROPERTY TAX RATE
ITEM # 4
AUGUST 9, 2021

2. PROPOSED TAX RATE 2021
The City is required by Ch. 26 of the Texas Property
Code:
To determine and publish the no new revenue tax rate
and the voter approval tax 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 no new revenue tax rate and hold one public hearing
Adopt a tax rate
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3. PROPOSED 2021 TAX RATE PER $100
Current Tax Rate $0.386439
No New Revenue Tax Rate $0.379683
Voter Approval Tax Rate $0.451964
Proposed Tax rate $0.404439
M&O Tax Rate $0.336439
I&S Tax Rate $0.068000
Tax Rate $0.404439
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4. PROPOSED 2021 TAX RATE
Freeze Adjusted Taxable Value $1,422,041,432
X
Proposed Tax Rate $0.404439/$100
Taxable Revenue $5,751,290
Plus Tax Freeze Revenue $1,646,753
Total Property Tax Revenue $7,398,043
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5. FISCAL IMPACT
O&M (General Fund) $6,154,180
I&S (Debt Service Fund) $1,243,864
Total Property Tax Revenue $7,398,043
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6. 2021 NO NEW REVENUE AND VOTER
APPROVAL TAX RATES
No New Revenue Tax Rate is $0.379683
(Rate that would provide the same amount of revenue received in prior
year on properties taxed in both years which excludes new values)
Voter Approval Tax Rate is $0.451964
(Calculated maximum rate allowed by law without triggering an
automatic election to approve tax rates exceeding the voter approval
tax rate)
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7. POLICY ANALYSIS
The proposed tax rate of $0.404439 is less than the voter
approval tax rate of $0.451964 and higher than the
No New Revenue Tax Rate $0.379683.
As a result, City Council is required to hold a public hearing
to obtain citizen input.
City will publish notices pursuant to the Texas Property Tax
Code.
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8. POLICY ANALYSIS
• I move the City Council hold a public hearing on
August 23, 2021 for the Proposed 2021 Ad Valorem
Tax Rate.
• I move the City Council set an action item on August
23, 2021 to adopt the 2021 Ad Valorem Tax Rate.
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9. ACTIONS REQUIRED
City Council votes to propose the tax rate of
$0.404439 per $100 with the M&O Rate at $0.336439
and the I&S Rate at $0.068000.
City council votes to schedule a public hearing on the
proposed tax rate on August 23, 2021.
Council votes to have action item to adopt the tax rate
on August 23, 2021. 9

10. COUNCIL ACTIONS REQUIRED
I move to set the proposed 2021 Tax Rate at $0.404439 per
$100 valuation composed of the M&O Rate of $0.336439
and the I&S Rate of $0.068000.
I move the City hold a public hearing for future consideration
of the 2021 Proposed Tax Rate on August 23, 2021.
I move the city set an action item on the August 23, 2021
agenda to adopt the 2021 Tax Rate.
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