R-06-08-24-14B1 - 8/24/2006RESOLUTION NO. R -06-08-24-14B1
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 2006 proposed tax rate exceeds
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 two public hearings on the proposed
property tax rate, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the first public hearing on the 2006 proposed property tax
rate be held on the 7th day of September, 2006, at 5:30 o'clock p.m. at
221 E. Main Street, Round Rock, Williamson County, Texas, and the
second public hearing on the 2006 proposed property tax rate be held on
the 14th day of September, 2006 at 7:00 o'clock p.m. at 221 E. Main
Street, Round Rock, Williamson County, Texas.
That the ordinance to adopt the 2006 proposed property tax rate be
placed on the agenda of the September 14, 2006 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.
QPFDesktop\::ODMA/WORLDOX/O:/wdox/RESOLUTI/R6Q824B1.WPD/sc
That the ordinance to adopt the 2006 proposed property tax rate be
placed on the agenda of the September 28, 2006 meeting of the Round
Rock City Council as an action item on which a record vote of the
second reading and final adoption will be taken and recorded.
That the City Council hereby approves the form of the attached
Notice of Public Hearings on Tax Increase, attached hereto as Exhibit
"A" and incorporated herein for all purposes, and directs the City
Secretary to publish same in accordance with the provisions of Section
26.06 of the Texas Tax Code.
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 24th day of August, 2006.
ST:
WELL, .. yor
ity of Round Rock, Texas
CHRISTINE R. MARTINEZ, City Secret
2
y
Notice of Public Hearing on Tax Increase
The City of Round Rock will hold public hearings on a proposal to increase total tax revenues from
properties on the tax roll in the preceding tax year by 4.17 percent (percentage by which proposed tax rate
exceeds lower of rollback tax rate or effective tax calculated under Chapter 26, Tax Code). Your individual
taxes may increase at a greater or lesser rate, or even decrease, depending on the change in the taxable
value of your property in relation to the change in taxable value of all other property and the tax rate that is
adopted.
The public hearings will be held on September 7, at 5:30 p.m. and September 14, 2006 at 7 p.m., at City
Council Chamber.
The members of the goveming body voted on the proposal to consider the tax increase as follows:
FOR:
AGAINST:
PRESENT and not voting:
ABSENT:
Comparison of Proposed Budget with Last Year's Budget
The applicable percentage increase or decrease (or difference) in the amount budgeted in the preceding
fiscal year and the amount budgeted for the fiscal year that begins during the current tax year is indicated for
each of the following expenditure categories:
Maintenance and operations 11.70 % (increase) or % (decrease)
Debt service 16.44 % (increase) or % (decrease)
Total expenditures 12.29 % (increase) or % (decrease)
Total Appraised Value and Total Taxable Value
as calculated under section 26.04, Tax Code
Total appraised value* of all property
Total appraised value* of new property**
Total taxable value*** of all property
Total taxable value*** of new property**
Preceding Tax Year Current Tax Year
$ 6,441,687,359 $ 7,237,659,181
$ 399,727,439 $ 711,2511985
$ 5,667,029,945 $ 6,356,956,240
$ 220,536,813 $ 346,170,500
Bonded Indebtedness
Total amount of outstanding and unpaid bonded indebtedness $ 97,988,000
Adopted tax rate for the preceding tax year
Proposed tax rate for the current tax year
Difference in the proposed tax rate and the
adopted tax rate for the preceding tax year
Percentage increase or decrease in the
proposed tax rate and the adopted tax
rate for the preceding tax year
Tax Rates
$ 0.37105
$ 0.37105
$ 0.00000
per $100 in value
per $100 in value
per $100 in value
0.00 % Increase
OR
0.00 % Decrease
These tax rate figures are not adjusted for changes in the taxable value of property.
* "Appraised value" is the amount shown on the appraisal roll and defined by Section 1.04(8), Tax Code.
** "New property" is defined by Section 26.012(17), Tax Code.
'** "Taxable value" is defined by Section 1.04(10), Tax Code.
IT `q„
Comparison of Residence Homestead Values
Average appraised and taxable values on residence homesteads are compared from the preceding tax year
and the current tax year.
Average residence homestead appraised value
Preceding Tax Year Current Tax Year
$ 154,265 $ 161,277
Homestead exemption amount for the taxing unit $ 0 $ 0
(excluding special exemptions for persons 65 years
of age or older or disabled)
Average taxable value of a residence homestead $ 154,265 $ 161,277
(excluding special exemptions for persons 65 years
of age or older or disabled)
Comparison of Residence Homestead Taxes
The taxes that would have been imposed in the preceding tax year on a residence homestead at the
average appraised value (excluding special exemptions for persons 65 years of age or older or disabled) are
estimated to be $572.40. The taxes that would be imposed in the current tax year on a residence
homestead appraised at the average appraised value in the current tax year (excluding special exemptions
for persons 65 years of age or older or disabled), if the proposed tax rate is adopted, are estimated to be
$598.42. The difference between the amount of taxes on the average residence homestead in the current
tax year, if the proposed tax rate is adopted, and the preceding tax year would be an increase of $26.02 in
taxes.
DATE: August 17, 2006
SUBJECT: City Council Meeting - August 24, 2006
ITEM: 14.B.1. Consider a resolution scheduling public hearings on the proposed
2006 property tax rate.
Department: Finance
Staff Person: 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 rate or effective tax 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.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: N/A
Background Information:
FY 2006 (FY 2006-2007) Proposed Tax Rate - $0.37105
FY 2006 (FY 2006-2007) Effective Tax Rate - $0.35618
FY 2005 (FY 2005-2006) Tax Rate - $0.37105
The proposed tax rate of $0.37105 is required to balance the FY 2006-2007 Operating
Budget. This rate is the same tax rate adopted in 2005 (FY 2005-2006), and is $0.01487
above the 2006 (FY 2006-2007) effective tax rate. The proposed increase is due to the
growth in operating costs and reduced sales tax reliance reflecting the City's operational and
long-term financial plans. Under this proposal, taxes on the average homestead would
increase by $26.02 or 4.54% compared with last year's taxes.
Comparing the proposed tax rate to the effective rate, the tax rate would increase by
4.17%. 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 7 and
September 14.