Loading...
R-07-08-23-15A1 - 8/23/2007 RESOLUTION NO. R-07-08-23-15A1 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 Finance Director has calculated the effective tax rate and the rollback rate, submitted them to the City Council and caused them to be published in a newspaper of general circulation. WHEREAS, the City of Round Rock' s 2007 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 2007 proposed property tax rate be held on the 6th day of September, 2007, at 5 : 00 o' clock p.m. at 221 E. Main Street, Round Rock, Williamson County, Texas, and the second public hearing on the 2007 proposed property tax rate be held on the 13th day of September, 2007 at 7 : 00 o' clock p.m. at 221 E. Main Street, Round Rock, Williamson County, Texas . That the ordinance to adopt the 2007 proposed property tax rate be placed on the agenda of the September 13, 2007 meeting of the Round 0:\wdox\RESOLUTI\R70823A1.WPD/MC 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 2007 proposed property tax rate be placed on the agenda of the September 27, 2007 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 23rd day of August, 200 N WELL Mayor A ST: City of R nd Rock, Texas CHRISTINE R. MARTINEZ, City Secret y 2 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 4.28 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. This budget will raise more total property taxes than last year's budget by$3,379,000 or 14.5%, and of that amount$1,907,000 is tax revenue to be raised from new property added to the tax roll this year. The public hearings will be held on September 6, 2007 at 5 p.m., and September 13, 2007 at 7 p.m., at City Council Chambers. The members of the governing 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 7.13 % (increase) or % (decrease) Debt service 16.00 % (increase) or % (decrease) Total expenditures 8.28 % (increase) or % (decrease) Total Appraised Value and Total Taxable Value as calculated under section 26.04, Tax Code Preceding Tax Year Current Tax Year Total appraised value`of all property $ 7,237,659,181 $8,459,095 984 Total appraised value`of new property— $ 711,251,985 $ 938,252,928 Total taxable value"`of all property $ 6,356,956.240 $ 7417,279,787 Total taxable value""of new property— $ 346,170,500 $ 522,078.090 Bonded Indebtedness Total amount of outstanding and unpaid bonded indebtedness $ 141,080 000 Tax Rates Adopted tax rate for the preceding tax year $ 0.37105 per$100 in value Proposed tax rate for the current tax year $ 0.36522 per$100 in value Difference in the proposed tax rate and the adopted tax rate for the preceding tax year $ (0.00583) per$100 in value Percentage increase or decrease in the 0.00 % Increase proposed tax rate and the adopted tax OR rate for the preceding tax year 1.57 % 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(l 0),Tax Code EXHIBIT ��T All 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. Preceding Tax Year Current Tax Year Average residence homestead appraised value $ 161,277 $ 176 214 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 $ 161,277 $ 176214 (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 $598.42. 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 $643.57. 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$45.15 in taxes. DATE: August 16, 2007 SUBJECT: City Council Meeting - August 23, 2007 ITEM: 15A1. Consider a resolution scheduling public hearings on the proposed 2007 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 rollback 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• 2007 Proposed Tax Rate (FY 2007-2008) - $0.36522 2007 Effective Tax Rate (FY 2007-2008) - $0.35022 2006 Tax Rate (FY 2006-2007) - $0.37105 The proposed tax rate of $0.36522 is required to balance the FY 2007-08 Operating Budget. This rate is $0.01500 above the 2007 effective tax rate. The proposed increase is due to the new debt service associated with the recently issued general obligation bonds and certificates of obligation. Under this proposal, taxes on the average homestead would increase by $45 or 7.5% compared with last year's taxes. Comparing the proposed tax rate to the effective rate, the tax rate would increase by 4.2%. 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 6 and September 13.