Tax Rate 2018

1. Proposed 2018
Property Tax Rate
Presented By: Robert Galindo
Finance Director
Item # 9
City Council Meeting
August 13, 2018

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 FY 2018 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
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4. FY 2018-19 Property Tax Revenue
Freeze Adjusted Taxable Value $1,349,915,649
X
Proposed Tax Rate $0.386439/$100
Taxable Revenue $5,216,601
Plus Tax Freeze Revenue $1,399,815
Total Property Tax Revenue $6,616,416
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5. 2018 Effective and Rollback Tax Rates
Effective Tax Rate is $0.378306
(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 $0.415126
(Calculated maximum rate allowed by law
without triggering a possible petition for
voter approval)
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6. Policy Analysis
 The proposed tax rate of $0.386439 exceeds the
effective tax rate of $0.378306
 As a result, City Council is required to hold two public
hearings for the proposed 2018 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 24th
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7. 7
Proposed Schedule
Monday, August 27, 2018 First Public Hearing on 2018 Proposed
Ad Valorem Tax Rate
Monday, September 10, 2018 First Public Hearing for FY 2018-19 Budget
and Second on 2018 Proposed Ad Valorem
Tax Rate
Monday, September 24, 2018 City Council adoption of FY 2018-19
Budget and 2018 Ad Valorem Tax Rate

8. Actions Required
Texas Property Tax Code requires:
City Council vote to place a proposal to adopt the
2018 tax rate on the agenda for September 24th
as an action item
Approval for Proposed Schedule to hold public
hearings and future consideration of 2018
Proposed Tax Rate as suggested on August 27th
and September 10th
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9. Council Actions Required
I move to set the proposed 2018 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 2018
Proposed Tax Rate on August 27th and
September 10th
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