HomeMy WebLinkAboutIR 9505 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9505
To the Mayor and Members of the City Council July 24, 2012
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SUBJECT: BUDGET AND TAX NOTICE REQUIREMENTS
This informal report will provide an overview of the statutory requirements for the public notices required
during the FY 2013 budget and associated ad valorem tax rate adoption process.
Statutory Requirements
The statutory requirements for the budget and tax rate process are found in:
State Law
• Tax Code —"Truth in Taxation" requirements
• Effective rate - one publication requirement
• Tax revenue increase - three publication requirements
• Local Government Code— Budget
o Budget public hearings - one publication requirement
City Charter
• Chapter X. The Budget and Financial Procedure Relating Thereto (since the 1924 adoption)
o Appropriation ordinance - two publication requirements
Process
The publication process begins with the calculation of the effective and rollback tax rates. The effective
rate is the tax rate that would generate the same amount of revenue this year as last year. The rollback
rate is the rate that allows for 8% growth over the effective rate. The form of the public notice of the tax
rate is prescribed by the State Comptroller's office. To allow staff an opportunity to present these rates to
the City Council prior to their publication, notice of the rates will be published on August 11, 2012.
In accordance with the timelines mandated by state law, the budget public hearing notice will be published
on August 4, 2012. This notice will include the dates of all four (4) of the required budget public hearings.
If the City's current tax rate exceeds the effective tax rate, maintaining the current rate will require:
(1) The City Council to adopt a resolution by record vote to consider a tax revenue increase.
This resolution will be on the Council agenda for August 7, 2012; and
(2) Publication of a "Notice of Public Hearings on Tax Increase" on August 11, 2012; and
(3) The council to hold two (2) public hearings. Immediately following each public hearing, the
"Notice of Tax Revenue Increase" must also be published.
The appropriations ordinance and debt service ordinance will be published on August 18, 2012.
All publications must appear in the official newspaper and be posted on the City's web page and cable
channel.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9505
To the Mayor and Members of the City Council July 24, 2012
Page 2 of 2
r
SUBJECT: BUDGET AND TAX NOTICE REQUIREMENTS
The Budget is scheduled to be adopted on September 18, 2012. The appropriations ordinance will be
published a second time after the budget and tax rate are adopted by the City Council. This publication
will show the original publication with any changes. The debt service and tax rate ordinance will also be
published. This publication is scheduled for September 22, 2012.
If you have questions regarding this information, please contact Horatio Porter, Budget Officer, at 817-
392-2379 or Mary J. Kayser, City Secretary.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS