HomeMy WebLinkAboutIR 9288INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 9288
To the Mayor and Members of the City Council August 3, 2010
a °'"'ice Page 1 of 1
r SUBJECT: SUBMISSION OF 2010 EFFECTIVE AND ROLLBACK TAX RATES
,.is
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 2011. The rollback tax rate serves as
a cap on property tax rates, thus limiting taxing units' ability to make material increases over the
prior years rate.
Pursuant to Texas Property Tax Code Section 26.04.c, the Effective Tax Rate =
(Last Year's Levy — Lost Property Levy)
(Current Total Value — New Property Value)
Property tax rates are comprised of two separate rates, Maintenance & Operation (M&O) and
Interest & Sinking (I &S or the debt service component).
The 2010 Effective Tax Rate is $.918510 / $100 assessed valuation
The 2010 Rollback Tax Rate is $.968903 / $100 assessed valuation
(Rollback M&O rate of $.824803 + I &S rate of $.1441)
The 2009 Adopted Tax Rate is currently $.8550 / $100 assessed valuation
(Adopted M &O rate of $.7109 + I &S rate of $.1441)
If the City Council wants the option to adopt a tax rate that exceeds the effective tax rate of
$.918510 / $100 assessed valuation, a resolution to consider a tax increase would have to be
adopted at the August 10th council meeting.
If the City Council adopts a total tax rate that exceeds the rollback rate, taxpayers may petition for
a rollback election by gathering signatures from at least seven percent (7 %) of the registered
voters shown on the most recent official voter list. If the rollback election succeeds, the City
would be forced to adopt the rollback rate.
This year, the City will not be subject to a rollback election unless it adopts a tax rate higher than
$.968903 / $100 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 newspaper by August 7, 2010 or as soon thereafter as practicable.
The tax rate (M&O and debt service components combined) is scheduled to be adopted on
September 14, 2010.
Dale A. Fisse r, P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS