HomeMy WebLinkAboutIR 9416To the Mayor and Members of the City Council
August 2, 2011
This informal report is to inform the City Council of the Effective and Rollback Tax Rates for use in their
upcoming budget discussions regarding Fiscal Year 2O12. The rollback tax rate serves 8S@ cap On
property tax rates, thus limiting taxing units' ability to make material increases over the prior year's rate.
Pursuant tVTexas Property Tax Code Section 26D4.c.the Effective Tax Rate =
(Last Year's Levy — Lost PropertV Levy)
(Current Total V@/me — NeVv Property Value)
Property tax rates are comprised of two separate rates, Maintenance 8 Operation (M&O) and Interest &
Sinking (I&S or the debt service component).
The 2011 Effective Tax Rate iS $1OO assessed valuation
The 2011 Rollback Tax Rate iS /$1OD assessed valuation
(RO||b8Ch M&O rate Of$.+ AS rate of
If the City Council wants the option to adopt a tax rate that exceeds the effective tax rate of $- /
$100 assessed valuation, a resolution to consider a tax increase would have to be adopted at the Augus
9th council meeting.
If the City COuDdl adopts a total tax rate that exceeds the nnUbadk rate, taxpayers may petition for
noUb8Ch election by gathering signatures from at least seven percent (796) of the registered voters shown
0n the most recent official voter list. |f the rollback election succeeds, the City would b8 forced tOadopt
the rollback rate.
This year, the City will not be subject tO8 rollback election unless h adopts G tax rate higher dl8n
/$1OO assessed valuation.
Pursuant to Texas Property Tax Code Section 24.04.e, the Effective Tax Rate and Rollback Tax Rate will
be published in the DevvSp8p8[ by August O. 2011 or as SOOn thereafter as practicable. The tax rate (K4&(]
and debt service components combined) is scheduled to be adopted on September 20, 2011.
Tom Higgins
Interim City Manager