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HomeMy WebLinkAboutItem 02 - Ad Valorem Tax Rate ITEM # _ MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: SEPTEMBER 14, 2010 SUBJECT: ADOPTION OF AD VALOREM TAX RATE RECOMMENDATION: City Council to consider an ordinance adopting an ad valorem tax rate $0.3500 per $100 valuation for fiscal year 2010-2011 (FY 2011) apportioned as follows: For the General Fund, a tax rate of $0.1346 per $100 value, For Debt Service, a tax rate of $0.2154 per $100 value. BACKGROUND: The FY 2011 budget was developed using the following values for tax rate calculation purposes: Total market value $9,597,834,891 Net taxable value $5,986,578,822 Taxable value for rollback $5,584,845,945 Taxable value for effective rate $5,553,383,476 New construction $ 31,462,469 The FY 201012011 budget includes the General Fund and Debt Service apportions of the taxes as noted above. The proposed tax rate of$0.3500 is below the calculated effective tax rate of$0.372189. A copy of the proposed Ordinance is attached. Staff recommends approval. Property Value Summary Tax Rate Calculation Basis Tax Year 2010 (FYE 2011) Total Market Appraised and Assessed Value 9,597,834,891 Less Ag Deferral & Exemptions 3,611,256,069 Certified Net Taxable 5,986,578,822 Less TIF Increment (489„194,035) Net Taxable less TIF 5,497,384,787 Pius Protested Value 40,893,124 Plus Values Not Included on Roll 46,568,034 Taxable Value for Rollback 5,584,845,945 Less New Construction (31,462,469) Less Taxable Value Properties Annexed After Jan. 1, 20OX Taxable Value for Effective Tax Rate 5,553,383,476 V� ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, SETTING THE ANNUAL TAX RATE FOR TAX YEAR 2010 LEVYING TAXES FOR THE TAX YEAR 2010 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 EMERGENCYAND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of Grapevine, Texas has approved an operating budget for the fiscal year 2010-2011 (FY 2011), in compliance with appropriate state laws and the Charter of the City of Grapevine; and, WHEREAS, public hearings were held on the FY 2011 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 $0.3500 per $100 valuation has been considered for tax year 2010; and, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE; TEXAS: Section 1. That a tax rate is hereby levied upon all taxable property in the City of Grapevine,Texas for tax year 2010 at a rate of thirty-five cents ($0.3500) per one hundred dollars ($100.00) valuation. Section 2. 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 2010, 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$0.1346 per $100 is levied. B. For Debt Service, a tax rate of$0.2154 per$100 is levied. Section 3. Taxes levied by this ordinance shall be due and payable on the first day of October, 2010 and shall become delinquent on the first day of February,2011, 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, 2011. 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 4. The fact that the fiscal year begins on October 1, 2010 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 14th day of September, 2010. APPROVED: ATTEST: APPROVED AS TO FORM: ORD_ NO. 2