To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Finance
Subject:
Title
Consider a resolution ratifying the tax revenue for the Tax Year 2017 (Fiscal Year 2017-18) for the City of Keller, Texas.
Action Requested:
Consider a resolution ratifying the tax revenue for the Tax Year 2017 (Fiscal Year 2017-18) 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 2017-18 (FY 2018) Budget anticipates additional property tax revenue of $951,286 (4.3 percent) over Fiscal Year 2016-17 (FY 2017) estimated property tax revenues, so a resolution ratifying the tax revenue reflected in the adopted budget is required.
New construction is accounting for approximately $608,591 (64.4 percent) of that increase, with the remainder ($335,717 or 35.6 percent) attributed to increased values among existing properties.
The tax rate proposed in the FY 2018 Budget is $0.42750, a reduction of $0.0025 from FY 2017 and the fourth tax rate reduction in a row.
Budget Impact:
The property tax levy that is necessary to support the annual budget for the City of Keller.
Financial Considerations:
The following current property tax revenue is included in the 2016-2017 budget:
General Fund (maintenance & operations)=$16,882,718
Debt Service Fund= 5,326,795
TIRZ Fund= 923,309
Total Property Tax Revenue= $23,132,822
Citizen Input/Board Review:
Public hearings on the tax rate were held Sept. 5 and Sept. 12, 2017.
Legal Review:
Not applicable.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Consider a resolution ratifying the tax revenue for the Tax Year 2017 (Fiscal Year 2017-18) for the City of Keller, Texas.