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R-04-08-26-13D3 - 8/26/2004 RESOLUTION NO. R-04-08-26-13D3 WHEREAS, Chapter 26 of the Property Tax Code (Vernon' s Texas Codes Annotated, Tax Code, Sections 26 . 01 et. seq. ] requires taxing units to comply with truth-in-taxation laws in adopting their tax rates, and WHEREAS, the City of Round Rock' s 2004 proposed tax rate exceeds the lower of the rollback rate or 1030 of the effective rate, and WHEREAS, it is mandatory in such case for the governing body of the City of Round Rock to vote to place the proposal to adopt the rate on the agenda of a future meeting as an action item on which a record vote will be taken, and WHEREAS, it is necessary for the City Council to set a date, time, and place for the holding of public hearings on the proposed property tax rate, and WHEREAS, the proposed property tax rate is 38 . 721 cents per $100 valuation compared to 35 . 715 cents for the prior year, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That a public hearing on the 2004 proposed property tax rate be held on the 9th day of the month of September, 2004, at 7 : 00 o' clock p.m. at 221 E. Main Street, Round Rock, Williamson County, Texas. That the ordinance to adopt the 2004 proposed property tax rate be placed on the agenda of the September 9, 2004 meeting of the Round Rock City Council as an action item on which a record vote of the first reading will be taken and recorded. That the ordinance to adopt the 2004 proposed property tax rate be placed on the agenda of the September 23 , 2004 meeting of the Round @PFD2Sktop\::ODMA/WORLDOX/O:/WDOX/RESOLUTI/R40826D3.WPD/SC Rock City Council as an action item on which a record vote of the second reading and final adoption will be taken and recorded. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 26th day of August, 2004 . W L, Mayo Ci of Round Rock, Texas A T: - CHRISTINE . -CHRISTINE R. MARTINEZ, City Secreta 2 DATE: August 20, 2004 SUBJECT: City Council Meeting - August 26, 2004 ITEM: 13.D.3. Consider a resolution scheduling public hearings on the proposed 2004 property tax rate. Department: Finance Department Staff Person: David Kautz, Assistant City Manager/Chief Financial Officer Cindy Demers, Finance Director Justification: Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws when adopting their tax rates. When a proposed tax rate exceeds the lower of the roll- back rater or 103 percent of the effective rate, the taxing unit's governing body must vote to place the proposal on the agenda of a future meeting as an action item. This vote must be recorded and will be a part of a newspaper advertisement announcing the public hearing. Funding: Cost: N/A Source of funds: N/A Outside Resources: N/A Background Information: 2004 (FY 2005) Proposed Tax Rate - $0.38721 2004 (FY 2005) Effective Tax Rate - $0.36453 2003 (FY 2004) Tax Rate - $0.35715 The proposed tax rate of $0.38721 is required to balance the FY 2004-05 Operating Budget. This rate is $0.03006 above the 2003 rate of $0.35715, and $0.02268 above the 2004 effective tax rate. The proposed increase is required to pay new debt service as authorized by voters and reflect higher operating costs. Under this proposal, taxes on the average homestead would increase by $49.17 or 9.15 percent compared with last year's taxes. Comparing the proposed tax rate to the effective rate, the tax rate would increase by 6.22%. Individual taxes may increase at a greater or lesser rate, or even decrease, depending on the change in taxable value of the property. Public Comment: Public Hearings will be held on this issue at scheduled Council meetings on September 91h and September 23, 2004.