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Consider adopting Ordinance No. 3395 to levy and adopt the tax rate for Fiscal Year 2016-17; and take appropriate action.
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BACKGROUND:
Property owners have the right to know about increases in their properties' appraised value and to be notified of the estimated taxes that could result from the new value. This is accomplished by following truth-in-taxation requirements to ensure the public is informed of any increases. Truth-in-taxation is a concept embodied in the Texas Constitution and the Tax Code that requires local taxing units make taxpayers aware of tax rate proposals. The City of Farmers Branch has complied with all aspects of the truth-in-taxation process.
DISCUSSION:
On July 29, 2016, City Administration submitted the Proposed 2016-17 Fiscal Year Operating & Capital Budget to City Council, which was developed with no change to the current tax rate. However, discussions were held earlier in the year to consider raising the current tax rate of $0.602267 (per $100 valuation) by 1/3 of one-cent to support debt related to Justice Center improvements bonds issued in May 2016 totaling $2,600,000.
In light of these earlier discussions, City Administration provided a provision to adopt a motion to consider the proposed tax rate increase as the maximum rate to be considered for the 2016 tax year (2016-17 fiscal year). This motion was approved by the City Council on August 2, 2016. Adopting a proposed maximum rate allows the City Council to consider various budget scenarios during its budget work sessions. In adopting the motion to approve a proposed maximum tax rate, it was made clear that the City Council may ultimately adopt a property tax rate that is lower than the maximum rate set out in the notice. The proposed maximum tax rate of $0.6056 was advertised in the Dallas Morning News on August 10, 2016.
City Administration developed and presented a budget maintaining the current tax rate of $0.602267. Adopting this tax rate, will, however, re...
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