To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Administrative Services
Subject:
Title
Consider an ordinance levying taxes to be assessed on all taxable properties within the city limits of the City of Keller, Texas for the Tax Year 2019 (Fiscal Year 2019-20).
Action Requested:
Approve the ordinance levying taxes to be assessed on all taxable properties within the city limits of the City of Keller for Fiscal Year 2019-20.
Background:
The tax rate proposed in the fiscal year 2019-20 budget is $0.399900/$100 of taxable valuation, a reduction of $0.01335 from the current year and is the sixth rate reduction in a row.
The proposed tax rate distribution is summarized (allocated) as follows:
Purpose Rate Percent
Maintenance and operations (M&O) $0.3182761 82.2%
Debt service (I&S) 0.0816239 17.8%
Total $0.399900 100.0%
The proposed 2019-20 budget tax rate is lower than the effective rate of $0.401949 so there is no state required motion language or record vote required.
However, the proposed M&O levy exceeds the current M&O levy. Therefore, Section 3 of the accompanying ordinance is required by State law and must use a larger font than is used throughout the ordinance to read: “This tax rate will raise more taxes for maintenance and operations than last year’s rate.”
At the August 20, 2019, Regular City Council meeting, City Council approved Resolution No. 4150 which set a maximum tax rate under both the effective and rollback rate. Therefore, the City was not required to hold two (2) public hearings on a proposal to consider the adoption of a tax rate.
Financial Impact:
The adoption of the tax rate determines the tax levy that is necessary to support the annual budget for the City of Keller. The total proposed levy is $24,170,415 or an increase of $427,516 or 1.8% from the current year levy. The average residential taxable value is $355,394 and the average household levy would be $1,421.22 at the proposed rate of $0.3999/$100. That is an increase of $18.81 per year or $1.57 per month from the current household levy.
Citizen Input/Board Review:
Not applicable.
Legal Review:
Not applicable.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial