HomeMy WebLinkAboutItem 01 - Ad Valorem Tax Rate t S
ITEM
MEMO TO:' HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNCH RUMBELOW, CITY MANAGERCjr/{/�
MEETING DATE: AUGUST
SUBJECT: TRUTH IN TAXATION REQUIREMENT FOR TAX RATE PUBLIC
HEARING'
RECOMMENDATION:
City Council to hold a public hearing on a proposed ad valorem tax rate of $0.3625 for
fiscal year 2008 (tax year 2007).
BACKGROUND:
HB 3195, approved by the Legislature during.its 2007 session, requires certain steps to be
followed to approve an ad valorem tax rate that would produce more revenue than the rate
of the previous year. The next step in this process is to hold a second public hearing for
comment on the proposed rate. A second hearing is scheduled for September I #'.
The effective rate for tax,year 2007 is$0.34490 as calculated by Colette Franklin,the City's
tax assessor. The proposed rate that is being considered for the FY 2008 budget (2007
tax year) is$0.3625,the same rate that has been in;place for the two previous fiscal years.
Attached is a copy of the notice that bas been published for this meeting following the
Council's record vote held on August 15, 2007.
Following the second; public hearing, the public should be advised that the meeting for
approval of the tax rate and adopting the budget is scheduled.for September 18, 2007.
WAG/0
Notice of Public Hearing on Tax Increase
The City of Grapevine will hold a public hearing on a proposal to increase total tax revenues from properties on the
tax roll in the preceding tax year by 5.09 percent(percentage by which proposed tax rate exceeds lower of rollback
tax rate or effective tax calculated under Chapter 26,Tax Code). Your individual taxes may increase at a;greater'
or lesser rate,or even decrease,depending on the change in the taxable value of your property in relation to the
change in taxable value of all other property and the tax rate that is adopted'.
The public hearing will be held on August 28,2,007 at 5:00 PM and September,11 2007 at 5:00 PM at Council
Charnbers,200 South Main Street,Grapevine;Texas.
The members of the governing,body voted onthe proposal to consider the tax increase as follows:
FOR: William D.Tate Shane Wilbanks
Ted Ware Roy Stewart
Mike Lease
AGAINST:
PRESENT and not
voting:
ABSENT: Sharon Spencer Darlene Freed
Comparison of Proposed Budget with Last'Year's Budget
The applicable percentage increase or decrease(or difference)in the amount budgeted in the preceding fiscal
year and the amount budgeted for the fiscal year that begins during the current tax year is,inicated for each of
the following expenditure categories.-
Maintenance and operations 6.56% increase
Debt service 0.57% increase
Total expenditures 5.271% increase
Total Appraised Value and Total Taxable Value'
as calculated under section 26:04,Tax Code
Preceding Tax Year Current Tax Year
Total appraised'valuet of all property $6,179,102,572 $6,889,63%004
Total appraised value*of new property** $95,395,593 $96,222 591
Total taxable value***of all property, $5,230,966,070 $5,815,838,701
Total taxable value***of new property** $95,395,593 $78,232 686
Banded Indebtedness
'total amount of outstanding and unpaid bonded indebtedness$138,791365
Tax Rates
Adopted tax rate for the preceding tax year $0.362500 tier$100 in value
Proposed tax rate for the current tax year $0.362500 per$100 in value
Difference in the proposed tax rate and the adopted tax rate for the preceding tax year $0.000000 per$100 in value
Percentage increase or decrease in the proposed tax rate and the adopted tax rate 0.00% Increase'
for the preceding tax year
These tax rate figures are not adjusted for changes in the taxable value of property.
Comparison of Residence Homestead Values
Average appraised and taxable values on residence homesteads are compared from the preceding tax year and the current
tax vear.
Preceding Tax Year Current Tax Year
Average residence homestead appraised value $194,047 $203,854
Homestead exemption amount for the taxing unit $38,809 $40,770
(excluding special exemptions for persons 65 years of age or older or disabled)
Average taxable value of a residence homestead $155,238 $163,084
(excluding special exemptions for persons 65 years of age or older or disabled)
Comparison of Residence Homestead Taxes
The taxes that would have been imposed in the preceding tax year on a residence homestead at the average appraised
value(excluding special exemptions for persons 65 years of age or older or disabled) are estimated to be$562.74.
The taxes that would be imposed in the current tax year on a residence homestead appraised at the average appraised
value in the current tax year(excluding special exemptions for persons 65 years of age or older or disabled),if the
proposed tax rate is adopted, are estimated to be $591.18. The difference between the amount of taxes on the
average residence homestead in the current tax year, if the proposed tax rate is adopted,and the preceding tax year
would be an increase of$28.44 in taxes.
* "Appraised value" is the amount shown on the appraisal roll and defined by Section 1.04(8),Tax Code.
** "New property" is defined by Section 26.012(17),Tax Code.
*** "Taxable value" is defined by Section 1.04(10),Tax Code.