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HomeMy WebLinkAboutItem 07 - Ad Valorem Tax RateMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: SEPTEMBER 6, 2022 SUBJECT: ADOPT AD VALOREM TAX RATE AND APPROVE ORDINANCE RECOMMENDATION: City Council to consider an ordinance adopting an ad valorem tax rate of 0.271775 per $100 valuation for tax year 2022 and fiscal year 2023. FUNDING SOURCE: N/A BACKGROUND: The ad valorem tax shall be apportioned as follows: * General Fund, a tax rate of 0.143681 per $100 * Debt Service, a tax rate of 0.128094 per $100 The FY 2023 budget was developed using the following values for tax rate purposes: * Total appraised & assessed value $16,429,116,309 * Adjusted 2022 total taxable value $10,083,452,982 * New construction value of $104,576,871 The FY 2023 budget includes the General Fund and Debt Service apportions of the taxes as noted above. The proposed tax rate of 0.271775 per $100 value is .000036 less than the previous year tax rate. The proposed tax rate of 0.271775 per $100 value is .000258 less than the calculated No New Revenue (NNR) tax rate. The proposed tax rate of 0.271775 per $100 value is .014664 less than the calculated Voter Approval tax rate. There is no special language required this year to motion for adoption since the total rate is less than the NNR rate and the M&O rate is less than the M&O NNR rate. Staff recommends approval. JS/GJ ORDINANCE NO. 2022-055 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, SETTING THE ANNUAL TAX RATE FOR TAX YEAR 2022 LEVYING TAXES TO BE ASSESSED ON ALL TAXABLE PROPERTY WITHIN THE LIMITS OF THE CITY OF GRAPEVINE, TEXAS; PROVIDING PENALTIES AND INTEREST FOR THE DELINQUENT TAXES; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, THE City Council of Grapevine, Texas has approved an operating budget for the fiscal year 2022 - 2023 (FY 2023), in compliance with appropriate state laws and the Charter of the City of Grapevine; and, WHEREAS, public hearings were held on the FY 2023 budget and all interested parties were given an opportunity to be heard for or against any item contained therein; and, WHEREAS, an ad valorem tax rate of $0.271775 per $100 valuation has been considered for tax year 2022; and WHEREAS, all constitutional and statutory prerequisites for the approval of this ordinance have been met, including but not limited to the Open Meetings Act and Chapter 211 of the Local Government Code; and WHEREAS, the City Council deems the adoption of this ordinance to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That a tax rate is hereby levied upon all taxable property in the City of Grapevine, Texas for tax year 2022 at a rate of twenty-seven seventeen and seventy-five one hundreds cents ($0.271775) per one hundred dollars ($100.00) valuation. Section 3. That there shall be and there is hereby levied the following taxes on each one hundred dollars ($100.00) valuation on all taxable property within the City of Grapevine, Texas, to be assessed and collected by the Tax Assessor/Collector and collected for tax year 2021, and said taxes are to be assessed and collected for the purposes and in the amounts hereinafter stipulated, to -wit: A. For the General Fund, a tax rate of $0.143681 per $100 is levied. B. For Debt Service, a tax rate of $0.128094 per $100 is levied. Section 4. That taxes levied by this ordinance shall be due and payable on the first day of October, 2022 and shall become delinquent on the first day of February, 2023, if unpaid. Upon taxes becoming delinquent, interest and penalty will be added as required in Section 33.01 of the Texas Property Tax Code, and shall commence on the first day of February, 2023. The City of Grapevine is hereby authorized to adopt any and all legal remedies provided by the Texas Property Tax Code for the purpose of collecting delinquent taxes. Section 5. That the fact that the fiscal year begins on October 1, 2022 requires that this ordinance be effective upon its passage and adopted to preserve the public peace, property, health, and safety, and shall be in full force and effect from and after its passage and adoption, and an emergency is hereby declared. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, on this the 6th day of September, 2022. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: Matthew C.G. Boyle City Attorney Ordinance No. 2022-055 2