HomeMy WebLinkAboutIR 9576 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9576
To the Mayor and Members of the City Council July 23, 2013
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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 FY2014 budget and associated ad valorem tax rate 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)
• Appropriations ordinance - two publication requirements
• Tax levy ordinance —two, post-adoption publication requirements
Process
The 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 on properties that were on the
tax roll of both years. The rollback rate is the rate that allows for 8% growth over the Maintenance &
Operations portion of 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 the rates to the City Council prior to
their publication, notice of the rates will be published on August 10, 2013.
In accordance with the timelines mandated by state law, the budget public hearing notice will be published
on August 10, 2013. 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 13, 2013; and
(2) Publication of a "Notice of Public Hearings on Tax Increase" on August 17, 2013; 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 24, 2013.
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. 9576
To the Mayor and Members of the City Council July 23, 2013
Page 2 of 2
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SUBJECT: BUDGET AND TAX NOTICE REQUIREMENTS
The Budget is scheduled to be adopted on September 17, 2013. After the budget and tax rate are
adopted by the City Council, the debt service ordinance will be published, and the appropriations
ordinance will be published a second time along with a schedule showing any changes. This publication is
scheduled for September 21, 2013. In addition, the tax levy ordinance will be published two times, with
the first publication also scheduled to occur on September 21, 2013.
If you have questions regarding this information, please contact Jay Chapa, interim Financial Management
Services Director or Mary J. Kayser, City Secretary.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS