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POLICY PROPOSAL
DATE FILE NUMBER SUBJECT Extension of Deadline PAGE ,OF 3
8/7/79 CP-56 for TACT Petition
PROPOSAL PROPOSED BY: All City yl��Y M'AINA R'S EVI W
Council Members
Background
The City Secretary has determined that the petition to limit ad valorem taxation
by the City of Fort Worth submitted by the Tarrant Association of Concerned Taxpayers
(TACT) was signed by 8,255 qualified Fort Worth voters -- 784 fewer than the number
required to call a charter amendment election.
In recognition of the basic right of citizens to petition their government as
specifically defined by the laws of the State of Texas, it is proposed that the Tarrant
Association of Concerned Taxpayers be given until August 21, 1979, to collect the
balance of signatures required to call the election, if they so desire.
However, this extension of time in no way reflects Fort Worth City Council support
for the proposed charter amendment.
The Council unanimously opposes the proposed amendment based on three major
considerations:
1) The five per cent limit in annual property tax revenue increases is
unrealistic in that no allowance is made for inflation or new growth
and development. In periods of double digit inflation and rapid
growth and development, such as Fort Worth now is experiencing, a
i
five per cent limit in4property tax revenues could result in service
level reductions and/or increases in user fees. Such a limitation
also would severely restrict the City's ability to extend basic ser-
LEGALITY (�
FISCAL NOTE
CITY MANAGER'S COMMENTS
POLICY PROPOSAL (cont'd) PAGE_OF 3
vices to new residential and commercial developments. This restric-
tion would slow the rate of growth and adversely affect the economic
health of the City.
2) The TACT proposal would diminish the Council's role in setting the
City's fiscal policy as provided by a Charter which has served the
citizens of Fort Worth well for more than fifty years. The Charter of
the City of Fort Worth specifies that it is the responsibility and
duty of the Council to set the ad valorem tax rate each year based on
Council's assessment of expenditure needs and the condition of the
tax base.
This Council and previous ones have discharged this responsibility
and duty in a prudent manner. A trend toward providing meaningful tax
relief for all citizens was started in 1977 with a 2.5,,' rate reduction
and continued in 1978 with another 2.6C reduction. Other relief pro-
vided in 1978 included the elimination of the Utility Sales Tax equal
to a 2.7(, tax rate decrease; .an increase in the Senior Citizen Homestead
Exemption, a 1.1(, decrease; and a Water Service Rebate equal to a 3.5C
decrease. The total effective 1978 tax rate reduction was 9.9C.
In January of this year, the City Council by resolution, requested
that the City Manager use all available resources and best efforts to
effect a 10C tax rate reduction in his proposed 1979-80 Budget. We
believe that the City Manager will be responsive to that request and
that we will be able to accomplish this rate reduction when we adopt
the budget next month. Such strong commitment to tax relief by this
Council makes a Charter amendment unnecessary and such an' amendment would
unduly restrict this and future Councils' ability to respond to changing
economic conditions and City needs.
CITY OF FORT WORTH
POLICY PROPOSAL (cont'd) PAGE_OF
3) The TACT proposal does not provide significant, tangible benefits
for single-family homeowners but instead favors large commercial
and industrial enterprises. Moreover, it does nothing to address
the very real impact that property taxes have on more and more of
our residents who rent or ,lease housing. While reducing taxes by
carefully weighing the necessity for and the operating efficiency
of each and every City program and activity, this Council aggressively
will seek at the State and Federal level more viable alternatives
which would provide meaningful tax relief for all Fort Worth citizens.
Recommendation
It is recommended that the Tarrant Association of Concerned Taxpayers be given
until August 21, 1979, to collect the additional signatures required to call a
Charter Amendment election.
Legality
This extension is consistent with the letter and spirit of the applicable law as
I understand it.
Fiscal Note
Not applicable.
City Manager's Comments
Staff concurs with this Council proposal.
CITY OF FORT WORTH, TEXAS
THE SUBJECT '-3ATTER OF THIS M. &C. C.
WAS PRESENTED TO THE CITY COUNCIL
4 _ 7- 71
AND WAS APPROVED
City Seoretgry
CITY OF FORT WORTH