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POLICY PROPOSAL
DATE FILE NUMBER SUBJECT PAGE-!-OF
6/13/78 CP-38 TAXES
PROPOSAL PROPOSED BY: Councilman TY MANAGER' REVIEW
Richard C. Newkirk
Background
A movement is afoot which is reminiscent of the Boston Tea Party of December 16, 1773.
The passage of Proposition 13 by a large majority of the California electorate clearly
demonstrates that most people are sick to death of all escalating taxes. Of course,
the Federal system is the greatest culprit, but most of the citizens feel helpless
against the entrenched bureaucracy, which does not seem to be answerable to elected
officials.
With the onslaught of inflation, caused mostly by the irresponsible actions of our
Federal representatives, State and Local taxes on property increase dramatically
yearly.
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Proposal
Therefore, in order to help retard or reverse the trend, I propose that we reduce the
tax rate on property in Fort Worth by ten cents (100) per one hundred dollar ($100)
valuation on such property. This will probably reduce the revenues by a little over
two million dollars, but the estimated increase on the tax roll of about one hundred
and eighty million will restore this loss. This also should gain another million
dollars in sales tax revenues.
Further, I propose that the billing for City taxes and School taxes be split and that
separate statements be mailed in the same envelope. At the present time, both taxes
are included in the same statement, although the school system receives the lion's
share.
Legality
No comment required.
Fiscal Note
This proposal would reduce operating revenue for the 1978-79 fiscal year by approxi-
mately $2,000,000 or 2.5% of adopted General Fund expenditures. The rate of inflation
on operating costs for the current fiscal year is estimated to be between 7 and 8
percent. This proposal coupled with the effects of inflation would require an adjust-
ment in service levels currently provided by the City.
LEGALITY
owl FISCAL NOTE
CITY MANAGER'S COMMENTS
POLICY PROPOSAL (cont'd) PAGE-. OF
City Manager's Comments
The City Manager's 1978-79 Proposed Budget is being prepared. To date, revenue
projections have not been finalized and departmental budget requests are currently
being analyzed by the Research and Budget staff. The development and use of decision
packages to establish alternate levels of service will again be provided to the City
Council during the budget review process. The information contained in the decision
packages should provide the Council with sufficient data to evaluate the effects of
this proposal on current and proposed levels of service.
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Richard C. Newkirk, Councilman
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Cl+.y Secratar.Y
CITY OF FORT WORTH
1. Authorized on June 20, 1978, well-written statement
be prepared and included in the tax statement, when
it goes out, pointing out difference between the
School taxes and the City taxes.
2. Referred on June 27, 1978, CP-38 to Council ad hoc
committee, composed of Councilman Bagaby as Chairman,
Councilman Newkirk, and Councilwoman Johnson for
further study and that assessment practices currently
used by the City of Fort Worth be analyzed by the
ad hoc committee.