HomeMy WebLinkAboutIR 2535 INFORMAL "REPORT TO CITY a COUNCIL MEMBERS No. 2535
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P T 111September 5, 1975
To the Mayor and Members of the City CouncilSubject: RE-ESTIMATE OF ASSESSED VALUATION FOR 1975-76
The proposed 1975-76 Budget is based on maintaining the current tax rate of
$1.69 with an estimated assessed valuation of $1,809,541,700. This estimate
of assessed valuation represents an increase of $112,000,000 over the 1974-75
valuation. The estimate was made early in July, while the Board of Equaliza-
tion was still meeting, and thus was prepared based on some statistical analy-
sis of previous increases.
The table below shows the history of assessed valuation for the past nine years,
which was used in computing the estimate for 1975-76.
CITY OF FORT WORTH
ASSESSED VALUATION
Percentage
Year Value Increase Increase
75-6 (Est.) $1,809,541,700 +$112,000,000* 6.59
74-5 (Actual) 1,697,541,700 + 101,555,410* 6.36
73-4 1,595,986,290 + 67,710,810* 4.23
72-3 1,531,275,480 + 87,251,040 6.04
71-2 1,444,024,440 + 73,541,150 5.37
70-71 1,370,483,290 + 114,155,620 9.09
69-70 1,256,327,670 + 94,231,640 8.11
68-9 1,162,096,030• + 39,131,380 3.48
67-8 1,122,964,650 + 41,520,240 3.84
66-7 1,081,444,410
*Impacted by Homestead Exemption for Elderly
The past two years have been affected by the new Homestead Exemption for the
elderly. The table below indicates the impact of this provision on the City
of Fort Worth.
Reduction in
Year Number Assessed Valuation
73-4 11,820 $35,460,000
74-5 .14,780 44,340,000
75-6 14,900 44,700,000
ISSUED BY THE CITY MANAGER I FORT WORTH, TEXAS --
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 2535 - Page 2
J"PT[gf0
�'oFVOR11 To the Mayor and Members of the City Council September 5, 1975
%fxay� Subject: RE-ESTIMATE OF ASSESSED VALUATION FOR 1975-76
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Adding this reduction in assessed valuation for the years affected reflects
the actual growth in the City's tax base.
Adjusted
Year Increase Valuation Percentage
75--6 (Est.) $112,360,000 6.62
74-5 110,435,410 6.91
73-4 103,170,810 6.73
Reviewing this history, an estimate was made in July of the assessed
valuation, and an increase of $112 million or 6.59 per cent was made.
This was a compromise between the 6.91 per cent increase of 1974-75 and
the average increase for the past four years (6.26 per cent) .
Subsequently, in the past two months, the Board of Equalization has
concluded its hearings and the Tax Office is in the process of completing
the tax roll. As of Friday, September 5, 1975, a final computer tabula-
tion has not been completed, but the Tax Assessor-Collector has indicated
that, based on some manual calculations, it appears the tax base for next
year will increase approximately $150 million or 8.84 per cent instead of
the $112 million increase reflected in the proposed budget. Preliminary
analysis indicates a major factor affecting this exceptional increase is
the rise in market value of land in the northeast section of the City
resulting from increased demand for land in the area of D/FW Airport,
plus increased industrial activity since the area was last completely
reviewed four years ago.
This exceptional growth in assessed valuation will provide $624,539 more
tax revenue than was estimated in the Proposed Budget. Deducting the
current allocation for debt service based on the 51 cent tax rate,
$436,069 additional funds are available for the operating budget.
Summary of Unallocated Revenues
The addition of the property tax revenue to the changes tentatively ,approved
in the 1975-76 Proposed Budget results in a total of $467,532 unallocated.
This includes the following:
1. Increase in Assessed Valuation + $436,069
2. Adjusting Budget for Northside Coliseum
Management Contract + 39,524
3. Deleting Assistant Auditorium Manager
for Will Rogers + 21,276
LISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
~ INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 2535 - Page 3
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to J, To the Mayor and Members of the City Council September 5, 1975
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�rexAy* Subject: RE-ESTIMATE OF ASSESSED VALUATION FOR 1975-76
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4. Phasing-in Reorganization of Fire Prevention
and Fire Dispatch - 15,837
5, Reinstating Contribution to Child Guidance
Center - 13,500
Net Total $467,532
Analysis
The anticipated increase in assessed valuation for next year is unprecedented.
Next year, the reappraisal cycle is scheduled to review south and southeast
areas which have not experienced any substantial increased development activity,
and market values are not anticipated to have increased as much as the land
close to DFW or the industrial property along the North Freeway and the north-
east section of 820.
Committing all of the increase in tax revenue to recurring cost items will
restrict the City's fiscal alternatives for 1976-77 as the cost of operation
increases due to inflation without a corresponding growth in the tax base.
It would be fiscally prudent to utilize the anticipated additional current
revenue to finance the Southeast Service Center, rather than using prior year's
revenue.
Respectfully submitted,
)�194_
R. N. Line
City Manager
RNL:ms
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS