AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2019-22, setting the Tax Rate for the 2019 Tax Year at 61.39 cents on each $100 of taxable value of real property that is not exempt from taxation; levying taxes for the use and support of the Municipal Government of the City for the fiscal year beginning October 1, 2019, and ending September 30, 2020; providing a sinking fund for the retirement of the bonded debt of the city; including procedural provisions; and providing an effective date; and consider approval of Ordinance 2019-22, on the first of two readings.
Body
Meeting date: August 20, 2019
Department: Finance-Heather Hurlbert, Finance Director
Amount & Source of Funding
Funds Required: Click or tap here to enter text.
Account Number: Click or tap here to enter text.
Funds Available: Click or tap here to enter text.
Account Name: Click or tap here to enter text.
Fiscal Note:
Prior Council Action: City Council adopted the budget policy on XX and has held budget workshops on June 26, June 27, and August 1.
City Council Strategic Initiative: [Please select from the dropdown menu below]
N/A
Choose an item.
Choose an item.
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☒ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Choose an item.
Background Information:
City Council held workshops on June 26, June 27 and August 1 to discuss the fiscal year 2020 budget and tax rate. State law requires that the City hold two public hearings before the adoption of the tax rate when the proposed tax rate is more than the effective tax rate. The proposed tax rate of 61.39 cents per $100 valuation is higher than the effective tax rate of 56.86 cents per $100 valuation, thus requiring two public hearings. Notice of the public hearings scheduled for August 20 and September 3 was published in the San Marcos Daily Record on August 11, 2019.
Even though the tax rate of 61.39 cents per $100 valuation is the same tax rate as fiscal year 2019, more property taxes will be raised than last year by $3,609,775 or 11.7% and of that amount $815,568 is tax revenue raised from new property and improvements added to the roll this year. For fiscal year 2020, the debt to operations ratio is 33.7% debt to 66.3% operations meaning 66.3 cents of every tax dollar goes to operations and 33.7 cents pays for debt service. The rollback tax rate is 62.17 cents per $100 of assessed valuation.
Council Committee, Board/Commission Action:
Click or tap here to enter text.
Alternatives:
Click or tap here to enter text.
Recommendation:
Click or tap here to enter text.