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DELETE - adopting Ordinance No. 3473 approving and adopting the Operating and Capital Improvement Program Budget and Strategic Plan for the 2017-18 fiscal year and take appropriate action.
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BACKGROUND:
Creating a budget and adopting a property tax rate to support that budget are major functions of a taxing unit's governing body and 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 to make taxpayers aware of tax rate proposals and to afford taxpayers the opportunity to roll back or limit tax increases.
There are three statutes that set out the mechanics of adopting a City's tax rate and budget: Texas Property Tax Code Chapter 26; Texas Local Government Code Chapter 102; and, Chapter 140 of the Texas Local Government Code. These statutes are in addition to any City Charter requirements. The mechanism the City uses to set the truth-in-taxation process in motion is to place an item on the City Council agenda to consider a motion to adopt the proposed "maximum" tax rate that the City will consider and set the date that the City Council will consider adoption of the actual tax rate. The City Council then can consider various budget scenarios in the upcoming month or months that may lower the rate needed to generate the revenue for the upcoming fiscal year's budget.
When the motion is adopted, the City makes it clear in the agenda notice, and in statements made by the Mayor at the meeting adopting the motion, that the City Council may ultimately adopt a property tax rate that is lower than the maximum rate set out in the notice. A motion proposing the maximum tax rate for consideration was made on August 1, 2017 and notification was given that the actual tax rate would be considered for adoption on September 12, 2017.
Once the motion considering the proposed tax rate is approved,...
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