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 2021 (Fiscal Year 2021-22) 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) 2021-22 Budget anticipates additional property tax revenue of $123,754 (0.52 percent) over FY 2020-21 budgeted property tax revenues, so a resolution ratifying the tax revenue reflected in the adopted budget is required.
New construction is accounting for approximately $281,397 (227.4 percent) of that increase, with the remainder (-$157,644 or -127.4 percent) attributed to increased values among existing properties.
The tax rate proposed in the FY 2021-22 Budget is $0.395 which is the same rate as FY 2020-21. The homestead exemption has been increased from 14% to 20%. With the proposed tax rate and homestead exemption, the average home owner will pay $1,374 or $15 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 2021-22 budget:
General Fund (maintenance & operations)=$20,144,362
Debt Service Fund= $3,561,854
Total Property Tax Revenue= $23,706,216
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