AGENDA CAPTION:
Title
Consider approval of Resolution 2023-152R, ratifying the property tax revenue increase in the budget for the fiscal year October 1, 2023 through September 30, 2024; and providing an effective date.
Body
Meeting date: September 19, 2023
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: On March 21,2023, City Council passed Resolution 2023-61R, approving the FY 2024 Budget Policy Statement. The Budget Policy Statement provided guidance for the property tax rate to between the no-new-revenue and voter-approval tax rate with a goal of not increasing the tax rate above the FY 2023 adopted tax rate. On August 15, 2023, City Council passed Resolution 2023-136R, setting the maximum proposed tax rate at 60.30 cents.
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Background Information:
Texas Local Government Code §102.007(c), states that the adoption of a budget that will raise more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. The vote on this motion should be considered after approval of the budget ordinance on second reading and before the approval of the tax rate ordinance on second reading.
The proposed tax rate is 60.30 cents per $100 valuation. The FY 2024 Budget will raise more revenue from property taxes than last year’s budget by an amount of $5,947,057. Of that amount, $2,756,989 represents property tax revenue to be raised from new property added to the tax roll. Ratifying the property tax revenue increase in the budget is required even though the tax rate is not increasing.
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
City Council approve the resolution ratifying the property tax revenue increase reflected in the budget for the fiscal year October 1, 2023 through September 30, 2024.