To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Administrative Services
Subject:
Title
Consider a resolution ratifying the tax revenue for the Tax Year 2023 (Fiscal Year 2023-24) for the City of Keller, Texas.
Background:
If an adopted budget will require raising more revenue from property taxes than was raised the previous year, Section 102 of the Local Government Code requires a vote of the governing body (i.e., City Council) to ratify that property tax revenue increase.
The Proposed Fiscal Year (FY) 2023-24 Budget anticipates additional property tax revenue of $166,466 (0.70 percent) over FY 2022-23 budgeted property tax revenues, so a resolution ratifying the tax revenue reflected in the adopted budget is required.
New construction is accounting for approximately $297,320.73 (178.6 percent) of that increase, with the remainder (-$130,854) or -78.6 percent attributed to increased values among existing properties.
The tax rate proposed in the FY 2023-24 Budget is $0.312000 is a decrease of $0.04250/100 from the FY 2022-23 rate. With the proposed tax rate, the average home owner will pay $1,373.89 or $0.16 less than the current year.
Financial Impact:
The property tax levy is necessary to support the annual budget for the City of Keller.
The following current property tax revenue is included in the 2023-24 budget:
General Fund (maintenance & operations) = $19,929,589
Debt Service Fund = $3,978,747
TIRZ #2 Fund = $154,110
Total Property Tax Revenue= $24,062,446
Citizen Input/Board Review:
The proposed rate is under the effective rate so no public hearings were required.
Legal Review:
Not applicable.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial