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G-07-09-27-14A2(a) - 9/27/2007 ORDINANCE NO. -6-07- 0`7-A 7- NA2(a) AN ORDINANCE LEVYING TAXES FOR THE MAINTENANCE AND OPERATION OF THE MUNICIPAL GOVERNMENT OF THE CITY OF ROUND ROCK, TEXAS, AND PROVIDING FOR THE INTEREST AND SINKING FUND FOR THE YEAR 2007. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: I. That there is hereby levied and there shall be collected for the maintenance and operation of the municipal government of the City of Round Rock, Texas, for the year 2007 upon all property, real, personal and mixed, within the corporate limits of said City subject to taxation, a tax of 19 . 601 cents on each One Hundred Dollars ($100 . 00) valuation of property. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR' S TAX RATE . That there is hereby levied and there shall be collected for the City of Round Rock, Texas, to provide for Interest and Sinking Funds for the year 2007 upon all property, real, personal and mixed, within the corporate limits of said City subject to taxation, a tax of 16 . 921 cents on each One Hundred Dollars ($100 . 00) valuation of property. SUMMARY Maintenance and operation of the Municipal Government 19. 601 cents Interest and Sinking 16 . 921 cents Total Tax per $100 . 00 of valuation 36 . 522 cents 0:\wdox\ORDINANC\070913A2.WPD/rmc II. All monies collected under this ordinance for the specific items herein named, be and the same are hereby appropriated and set apart for the specific purpose indicated in each item and that the Assessor and Collector of Taxes, and the City Finance Director shall keep these accounts so as to readily and distinctly show the amount collected, the amounts expended and the amount on hand at any time, belonging to such funds . All receipts for the City not specifically apportioned by this ordinance are hereby made payable to the General Fund of the City. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance 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. A t READ and APPROVED on first reading this the day of r 2007 . READ, APPROVED and ADOPTED on second reading this the O�Jul day of 2007 . WELL, Mayor City of Round Rock, Texas AT ST: CHRISTINE R. MARTINEZ, City Secretry 2 . DATE: September 20, 2007 SUBJECT: City Council Meeting - September 27, 2007 ITEM: 14A2(a) Consider an ordinance adopting the 2007 property tax rate for the City of Round Rock. (Second Reading) Department• Finance Staff Person: Cindy Demers, Finance Director Justification• The proposed FY 2007-2008 Operating Budget is balanced at the property tax rate of 36.522 cents per $100 of appraised taxable value. This rate is below the tax rate adopted in 2006 (FY 2006-2007) by $0.00583, and is $0.01500 above the 2007 (FY 2007-2008) effective tax rate. This tax rate provides adequate funding for the proposed operating budget. It remains a competitive rate when compared to other municipalities. State law re uires that the motion to ado t the ordinance be stated as follows: "I MOVE THAT PROPERTY TAXES BE INCREASED BY THE ADOPTION OF A TAX RATE OF 36.522 CENTS." Funding• Cost: N/A Source of funds: N/A Outside Resources: N/A Background Information• 2007 (FY 2007-2008) Proposed Tax Rate - $0.36522 2007 (FY 2007-2008) Effective Tax Rate - $0.35022 2006 (FY 2006-2007) Tax Rate - $0.37105 The proposed tax rate of $0.36522 is required to balance the FY 2007-2008 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 were held on September 6 and September 13.