Title
Consider adopting Ordinance No. 3654 to levy and adopt the tax rate for Fiscal Year 2020-21 (Tax Year 2020) 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 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 31, 2020, City Administration submitted a Proposed 2020-21 Fiscal Year Operating & Capital Budget to the City Council, which was based on reducing the current tax rate from $0.599507 to $0.589. The City Council also passed a motion on August 24, 2020 to consider the proposed rate of $0.589 as a maximum rate for discussion purposes.
Property Tax Code Section 26.05 and Texas Local Government Code, Chapters 102 and 111, have requirements, notices, and/or motions that must be followed related to the budget and tax rate process. These requirements, notices and/or motions vary depending upon whether or not a proposed property tax rate exceeds the lower of the no-new-revenue tax rate or the voter-approval tax rate and/or whether this year's tax levy to fund maintenance and operations expenditures exceeds last year's maintenance operations tax levy. The proposed tax rate of $0.589 does not exceed the calculated no-new-revenue or voter-approval rate. This tax rate will be distributed as follows: $0.506203 for general fund maintenance and operations and $0.082797 for debt service distribution, per $100 assessed value.
The City has complied with all of the requirements governing the budget and tax rate process and a copy of the required tax notice is attached to thi...
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