AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2021-71, setting the Tax Rate for the 2021 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, 2021, and ending September 30, 2022; providing a sinking fund for the retirement of the bonded debt of the city; including procedural provisions; and declaring an effective date; and consider approval of Ordinance 2021-71, on the first of two readings.
Body
Meeting date: September 7, 2021
Department: Finance Department, Marie Kalka, Finance Director
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
CITY COUNCIL GOAL: Maintain Fiscal Responsibility
BACKGROUND:
City Council held workshops on May 18, June 29 and August 12 to discuss the fiscal year 2022 budget and tax year 2021 tax rate. State law requires that the City hold a public hearing before the adoption of the tax rate when the proposed tax rate is more than the no new revenue tax rate. The proposed tax rate of 60.30 cents per $100 valuation is lower than the no new revenue tax rate of 69.99 cents per $100 valuation as well as the voter approval tax rate of 75.54 cents per $100 valuation, thus not requiring a public hearing; however, the City is still going to have. Notice of the public hearing scheduled for September 7th and 21st was published in the San Marcos Daily Record on August 29, 2021.
The tax rate of 60.30 cents per $100 valuation will not generate more property taxes than last year because of the City being below the no new revenue rate; however, improvements added to the roll this year totaled $211,472,588. The debt to operations ratio, should the tax rate of 60.30 cents be adopted, would be 32.40% debt to 67.60% operations meaning 67.60 cents of every tax doll...
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