AGENDA CAPTION:
Title
Consider approval of Ordinance 2016-33, on the second of two readings, setting the Property Tax Rate for the 2016 Tax Year at 53.02 cents on each $100 of taxable value of 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, 2016 and ending September 30, 2017; providing a Sinking Fund for the retirement of the bonded debt of the City.
Body
Meeting date: September 6, 2016 - 1st Public Hearing & 1st Reading
September 16, 2016 - 2nd Public Hearing
September 20, 2016 - 2nd Reading
Department: Finance Department, Heather Hurlbert, Finance Director
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
CITY COUNCIL GOAL: Goal #7 Maintain Fiscal Responsibility
BACKGROUND:
City Council held budget and tax rate workshops on July 21 and July 22. 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 53.02 is higher than the effective tax rate of 51.43 requiring the two public hearings. Notice of the public hearings scheduled for September 6 and 16 was published in the San Marcos Daily Record on August 19, 2016.
The City’s property tax rate has remained 53.02 cents per $100 valuation since 2008. The City’s appraised property values have increased steadily during this time which has produced more revenue for the City with the same tax rate. For fiscal year 2017, the debt to operations ratio is 39% debt to 61% operations meaning 61 cents of every tax dollar goes to operations and 39 cents pays for debt service. Several years ago the City’s ratio was 60% debt and 40% operations.