AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2023-62, setting the tax rate for the 2023 tax year at 60.30 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, 2023, and ending September 30, 2024; 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 2023-62, on the second of two readings.
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. On September 5, 2023, City Council approved the first reading and held the first of two public hearings on the tax rate.
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Background Information:
At the August 15, 2023, City Council meeting, the maximum proposed tax rate was set at the current rate of 60.30 cents. The Texas Tax Code requires a public hearing on the tax rate if the maximum proposed tax rate (60.30 cents) exceeds the lower of the no-new-revenue rate (53.05 cents) and voter-approval rate (68.87 cents). The City scheduled two public hearings that will be held September 5, 2023 and September 19, 2023. A notice for the public hearings was published in the San Marcos Daily Record on August 23, 2023. The notice was also published on the City’s website and aired on the public access channel.
The Fiscal Year 2024 Proposed Budget, as presented to City Council on August 15, 2023, is based on the current tax rate of 60.30 cents.
Council Committee, Board/Commission Action:
N/A
Alternatives:
The maximum proposed tax rate is 60.30 cents per $100 valuation. City Council may set a tax rate equal to or less than 60.30 cents per $100 valuation. As previously mentioned, the FY 2024 Proposed Budget is based on the current tax rate of 60.30 cents per $100 valuation.
Recommendation:
City Council approve the ordinance setting the tax rate at 60.30 cents per $100 valuation.