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File #: 23-1977    Version: 1 Name:
Type: CONSENT AGENDA Status: Agenda Ready
File created: 7/24/2023 In control: Budget and Management Services
On agenda: 8/23/2023 Final action:
Title: Authorize (1) a public hearing to be held on Wednesday, September 20, 2023 to receive comments on a proposed tax rate; and (2) a proposal to consider adoption of a $0.7393 per $100 valuation tax rate, or a lower rate as may be proposed by City Council for the 2023-24 fiscal year on Wednesday, September 20, 2023 - Financing: No cost consideration to the City
Indexes: 300
Attachments: 1. Resolution
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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STRATEGIC PRIORITY:                     Government Performance & Financial Management

AGENDA DATE:                     August 23, 2023

COUNCIL DISTRICT(S):                     

DEPARTMENT:                     Budget and Management Services

EXECUTIVE:                     Jack Ireland

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SUBJECT

 

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Authorize (1) a public hearing to be held on Wednesday, September 20, 2023 to receive comments on a proposed tax rate; and (2) a proposal to consider adoption of a $0.7393 per $100 valuation tax rate, or a lower rate as may be proposed by City Council for the 2023-24 fiscal year on Wednesday, September 20, 2023 - Financing: No cost consideration to the City

 

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BACKGROUND

 

The City Manager’s recommended FY 2023-24 budget as discussed on August 8, 2023 includes a tax rate of $0.7393/$100. The proposed rate reflects a reduction of $0.0065/$100 and reduces revenue to the City by $12.7 million.

 

A public hearing is required this year since the proposed tax rate is lower than the voter-approval tax rate but higher than the no-new-revenue tax rate calculated by the Dallas County Tax Office. The notice of the public hearing provides information about the no-new-revenue and voter-approval tax rates reflected below.

 

Notice of Tax Rates

 

Proposed tax rate: $0.7393/$100

No-New-Revenue tax rate: $0.6813/$100

 

Voter-Approval tax rate: $0.7028/$100

Unused Increment rate: $0.0454/$100

Voter-Approval tax rate adjusted for unused increment rate: $0.7482/$100

 

The Voter-Approval tax rate reflects an adjustment for unused increment rate. The unused increment rate is the rate equal to the difference between the adopted tax rate and the voter-approval rate in tax year 2021 (FY 2021-22). A taxing unit may adjust the voter-approval tax rate higher with the unused increment rate without triggering an election. If a taxing unit uses any portion of the unused increment rate in a year, the contribution to the unused increment would be zero for that year. The City Manager’s recommended FY 2023-24 budget uses unused increment.

 

To set a tax rate above the FY 2023-24 calculated No-New-Revenue tax rate of $0.6813 per $100 valuation, State law requires the following:

 

                     Specify a proposed tax rate; take a record vote, and schedule a public hearing (August 23, 2023);

                     Publish “Notice of 2023 Tax Year Proposed Tax Rate” at least seven days before the public hearing (September 9, 2023);

                     Publish the notice in the newspaper and prominently on the City’s internet website;

                     Hold a public hearing; and the meeting to adopt the tax rate (September 20, 2023).

 

City Council may vote on the proposed tax rate at the public hearing.

 

PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)

 

City Council was briefed on the City Manager’s Proposed Budget on August 8, 2023.

 

FISCAL INFORMATION

 

No cost consideration to the City.