STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: September 18, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
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SUBJECT
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An ordinance setting the tax rate at $0.7047 per $100 assessed valuation, which includes $0.5109 for the General Fund and $0.1938 for the Debt Service Fund, and levying ad valorem taxes for the City of Dallas, Texas, for FY 2024-25 - Estimated Levy: $1,516,146,891 (see Fiscal Information)
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BACKGROUND
The City Manager’s recommended budget for FY 2024-25 set the property tax rate at $0.7047 per $100 assessed valuation, a $0.0310 decrease from the FY 2023-24 property tax rate of $0.7357 per $100 assessed valuation.
The tax rate under consideration by the City Council is $0.5109 for the General Fund and $0.1938 for the Debt Service Fund, totaling $0.7047 per $100 assessed valuation. The rate of $0.7047 per $100 assessed valuation will fund the FY 2024-25 budget. Per Section 26.05 of the Texas Property Tax Code, the vote on the ordinance setting the tax rate must be a record vote and 60 percent of the governing body must vote in favor of the adoption of the tax rate. This year’s proposed tax rate does not exceed the no-new-revenue tax rate. A motion to adopt an ordinance, resolution, or order setting the tax rate does not require the language about “tax increase” as stated in Section 26.05(b) of the Property Tax Code.
However, this year’s levy to fund maintenance and operations expenditures exceeds last year’s maintenance and operations tax levy. Therefore, the ordinance setting this year’s tax rate requires the statement about a “tax increase” as specified in 26.05(b) of the Property Tax Code even though the FY 2024-25 tax rate of $0.7047 is less than the FY 2023-24 tax rate of $0.7357. The statements must be in larger type than the type used in any other portion of the document.
On September 4, 2024, City Council discussed budget amendments which did not lower the property tax rate from the City Manager’s recommended property tax rate of $0.7047 per $100 assessed valuation and passed a budget ordinance on the first reading by Resolution No. 24-1258.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
City Council was briefed on the proposed tax rate at a Budget Workshop on August 13, 2024.
On August 28, 2024, City Council authorized a public hearing to be held on September 18, 2024 and authorized a proposal to consider adoption of a tax rate of $0.7047 per $100 assessed valuation or a lower tax rate proposed by City Council on September 18, 2024, by Resolution No. 24-1214.
On September 4, 2024, City Council discussed budget amendments which did not lower the property tax rate from the City Manager’s recommended property tax rate of $0.7047 per $100 assessed valuation and passed a budget ordinance on the first reading by Resolution No. 24-1258.
FISCAL INFORMATION
Estimated current year tax revenues are calculated using a tax rate of $0.5109 for the General Fund and $0.1938 for the Debt Service Fund, totaling $0.7047 per $100 assessed valuation (100 percent collection rate).
Estimated Revenue:
• General Fund - $1,099,190,360
• Debt Service Fund - $416,956,531