Title
Consider adopting a motion to place a proposal to adopt a property tax rate of $0.5731 on the City Council agenda of September 17, 2013; schedule two public hearings on the proposed rate for August 20, 2013 and September 3, 2013; and take appropriate action.
Body
BACKGROUND:
Truth-in-taxation laws and legislative guidelines require that when a proposed tax rate exceeds the rollback rate or the effective rate, whichever is lower, the taxing unit's governing body must take a record vote to place a proposal to adopt the rate on the agenda of a future meeting as an action item. The effective rate produces the same amount of operating revenue (adjusted for new construction and debt service changes) as the prior year. The rollback rate produces 8% greater operating revenue (adjusted for new construction and debt service changes) as prior year. Adopting a tax rate greater than the rollback rate allows 7% of registered voters an opportunity to sign a petition which would require Council to hold a rollback election to determine whether or not the adopted rate could go into effect. A taxing unit's governing body cannot vote to adopt a proposal to increase taxes by an unspecified amount.
If the motion passes, the governing body must schedule two public hearings on the proposal. The governing body may not adopt the tax rate at either of these hearings. These hearings must take place within the boundaries of the unit; on a weekday that is not a holiday; and in a public building or, if a public building is not available, in a building normally open to the public. The second public hearing may not be held earlier than the third day after the date of the first hearing. At each hearing, the governing body must announce the date, time and place of the meeting at which it will vote on the tax rate.
The governing body must follow a strict timetable once it holds these public hearings. The meeting to vote on the tax rate must take place no less than three days and no more than 14 days after the second public hearing.
DISCUSSION:
The 2013-14 proposed budget was submitted to the City Council on July 31, 2013, and is also available to the public for review on the City's Website, the Farmers Branch Manske Library, Farmers Branch Police Department, and Farmers Branch Senior Center. The proposed budget includes a planned property tax rate increase of $0.0236 (per $100 valuation) for debt service associated with the public safety radio system upgrade and the new aquatic center. Additionally, in response to strong citizen and City Council support for neighborhood revitalization, City Administration is also proposing consideration of an additional $0.0200 property tax rate increase to provide dedicated ongoing funding for neighborhood revitalization projects. The property tax rate would therefore increase from $0.5295 to $0.5731 (or $0.0436) per $100 valuation.
The effective property tax rate for 2013 is $0.5249 per $100 valuation. The rollback property tax rate is $0.5825.
Proposing a 57.31 cent tax rate will require the publication of a notice in the newspaper notifying taxpayers of the proposed effective tax increase. Dallas County is responsible for calculating and certifying the information on this notice, which is expected to be finalized and published in the Dallas Morning News on August 12, 2013. Under the State Property Tax Code, proposing the 57.31 cent tax rate requires that the City Council first pass a motion to propose a tax rate and set two public hearing dates. Tonight's motion proposes a tax rate, but does not adopt any tax rate. The final adopted tax rate may be less than the tax rate proposed tonight. The public hearings are proposed to take place on August 20, 2013 at 6:30 p.m. at City Hall and September 3, 2013 at 6:30 p.m. at City Hall during the regular City Council meeting. The City Council will adopt a tax rate at the regular City Council meeting on September 17, 2013 at 6:30 p.m. Copies of all required notices are attached to this agenda item.
RECOMMENDATION:
City Administration recommends that the City Council adopt a motion placing a proposal to adopt a tax rate of $0.5731 for the 2013-14 fiscal year on September 17, 2013 and set public hearings for August 20, 2013 and September 3, 2013 to discuss the proposed rate. All meetings will be held at 6:30 p.m. at Farmers Branch City Hall Council Chambers located at 13000 William Dodson Parkway, Farmers Branch, Texas 75234.
ACTIONS:
- Motion to approve placing a proposal to adopt a tax rate of $0.5731 on the City Council agenda for September 17, 2013 at 6:30 p.m. (Proceed to 2 if passing the motion; otherwise, proceed to 3.)
- IF THE MOTION PASSES: Motion to schedule two public hearings on the proposed tax rate of $0.5731 for August 20, 2013 and September 3, 2013. Both hearings will be held at 6:30 p.m. at City Hall Council Chambers located at 13000 William Dodson Parkway, Farmers Branch, Texas 75234.
- Motion to deny placing a proposal to adopt a tax rate of $0.5731 on the September 17, 2013 agenda and deny scheduling two public hearings on the proposed rate.
- Motion to modify the motion to meet the needs of the Council.
- Motion to table the issue for further study or take no action.
ATTACHMENTS:
- 2013 Tax Rate Adoption Calendar
- Notice of Effective Tax Rate
- Proposed Notice of Public Hearing on Tax Rate
- Proposed Notice of Vote on Tax Rate