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HomeMy WebLinkAboutCP 38 61P LVU U U ULA' Lruu UN Us MULJ U UUo U L&&AW 110 Oro .4PL UJ6 -i mfindrulle 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. r 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. r � r Richard C. Newkirk, Councilman SUBJECT ;`&TTER UNCIL TSE TO - C_:- WAS PHEJ „��.. �7 ti 8 ti AND WAS •���' -(T Q 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.