STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: September 18, 2019
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Budget
EXECUTIVE: Elizabeth Reich
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SUBJECT
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An ordinance setting the tax rate at $0.7766 per $100 assessed valuation which includes $0.5691 for the General Fund and $0.2075 for the Debt Service Fund, and levying ad valorem taxes for the City of Dallas, Texas for FY 2019-20 - Estimated Levy: $1,089,085,447.28 (see Fiscal Information)
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BACKGROUND
The City Manager’s recommended budget for FY 2019-20 increased the property tax rate from $0.7767 to $0.7800 per $100 assessed valuation. Through Council amendments, the tax rate under consideration was decreased by $0.0034 to $0.7766 per $100 assessed valuation.
The tax rate option under consideration by the City Council is $0.5691 for the general fund and $0.2075 for debt service fund, totaling $0.7766 per $100 assessed valuation. The rate of $0.7766 will fund the FY 2019-20 budget. Per Section 26.05 of Texas Property Tax Code, the vote on the ordinance setting of the tax rate must be a record vote and specific language is required in the motion setting the tax rate, as follows:
“I move that the property tax rate be increased by the adoption of a tax rate of $0.7766 per $100 assessed valuation, which is effectively a 4.40 percent increase in the tax rate.”
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
City Council was briefed on the proposed tax rate at a Budget Workshop on August 13, 2019.
On August 13, 2019, City Council authorized public hearings to be held on September 4, 2019 and September 11, 2019 and authorized a proposal to consider adoption of a tax rate of $ 0.7800 per $100 assessed valuation or a lower tax rate proposed by Council on September 18, 2019, by Resolution No. 19-1174.
On September 4, 2019, City Council held a public hearing to receive comments on a $0.7800 per $100 valuation property tax rate for the 2019-20 fiscal year as discussed on August 13, 2019, by Resolution No. 19-1375.
On September 11, 2019, City Council held a public hearing to receive comments on a $0.7800 per $100 valuation property tax rate for the 2019-20 fiscal year as discussed on August 13, 2019.
FISCAL INFORMATION
Estimated revenues are calculated using a tax rate of $0.5691 for the General Fund and $0.2075 for Debt Service Fund, totaling $0.7766 per $100 assessed valuation.
General Fund Estimated Revenue: $798,092,361.64
Debt Service Fund Estimated Revenue: $290,993,085.64