Title
Consider adopting Ordinance No. 3465 to levy and adopt the tax rate for Fiscal Year 2017-18 and take appropriate action.
Body
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 28, 2017, City Administration submitted the Proposed 2017-18 Fiscal Year Operating & Capital Budget to the City Council, which was developed with no change to the current tax rate.
City Administration developed and presented a budget that maintains the current tax rate of $0.602267. The proposed tax rate exceeds the calculated total effective tax rate (for maintenance and operations plus debt service) by 0.31%; will effectively raise more taxes for maintenance and operations than last year's tax rate by 1.14%; and, will raise taxes for maintenance and operations on a $100,000 home by approximately $2.43. The proposed tax rate of $0.602267 will be distributed as follows: $0.517699 for general fund maintenance and operations and $0.084568 for debt service distribution, per $100 assessed value.
Property Tax Code Section 26.05(b) and Texas Local Government Code, Chapters 102, 111 and 140, have a required motion and notice requirement if a proposed property tax rate exceeds the lower of the effective tax rate or the rollback tax rate and requires a specific statement in the ordinance setting the rate if the property tax levy to fund maintenance and operations expenditures exceeds the prior year's maintenance and operations tax levy. In addition, Chapter 26.05(b) of the P...
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