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 2019 (Fiscal Year 2019-20) 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) 2019-20 Budget anticipates additional property tax revenue of $427,546 (1.8 percent) over FY 2018-19 budgeted property tax revenues, so a resolution ratifying the tax revenue reflected in the adopted budget is required.
New construction is accounting for approximately $527,287 (123.3 percent) of that increase, with the remainder (-$99,741 or -23.3 percent) attributed to increased values among existing properties.
The tax rate proposed in the FY 2019-20 Budget is $0.3999, a reduction of $0.01335 from FY 2018-19 and the sixth tax rate reduction in a row.
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 2019-20 budget:
General Fund (maintenance & operations)=$19,875,273
Debt Service Fund= $4,295,142
Total Property Tax Revenue= $24,170,415
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