HomeMy WebLinkAboutIR 9649 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9649
To the Mayor and Members of the City Council July 22, 2014
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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 Fiscal Year 2015 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
o Effective rate - one publication requirement
o 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
All public notices will be published in the official newspaper and posted on the City's web page and cable
channel. Where a notice is required under state law, the law generally dictates exactly what information
the notice must contain, and the City follows the form notices published by the State Comptroller's office.
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. On August 5, staff will provide the City Council with an Informal
Report outlining the effective and rollback tax rates, and those rates will be published on August 9, 2014.
The notice on the budget public hearings will also be published on August 9, 2014 and will include the
dates of all of the budget public hearings.
If the City's current tax rate exceeds the effective tax rate, maintaining the current rate would require:
(1) The City Council to adopt a resolution by record vote to consider a tax revenue increase,
with the resolution planned for the Council agenda for August 12, 2014, if needed; and
(2) Publication of a "Notice of Public Hearings on Tax Revenue Increase," which would occur
on August 16, 2014; and
(3) The City Council to hold two (2) public hearings, which would take place on August 26,
2014 and September 9, 2014; and
(4) Publication of the "Notice of Tax Revenue Increase" following each public hearing.
In accordance with the City Charter, the appropriations ordinance will be published for the first time on
August 23, 2014, following its first reading on August 19.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9649
To the Mayor and Members of the City Council July 22, 2014
Page 2 of 2
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SUBJECT: BUDGET AND TAX NOTICE REQUIREMENTS
The budget is scheduled to be adopted on September 16, 2014. After the budget and tax rate are
adopted by the City Council, the appropriations ordinance will be published a second time along with a
schedule showing any changes as required by the City Charter. This publication is scheduled for
September 20, 2014. In addition, the tax levy ordinance will be published two times, with the first
publication also scheduled to occur on September 20, 2014.
If you have questions regarding this information, please contact Aaron J. Bovos, Chief Financial Officer or
Mary J. Kayser, City Secretary.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS