Title
Consider and take action on an ordinance approving an ad valorem tax rate for the City of League City, Texas, upon all taxable property within the corporate limits of the City for the Fiscal Year ending September 30, 2017; directing the assessment and collection thereof; providing for a severability clause; and providing for an effective date (Assistant City Manager)
Staff requests first and final reading.
Background:
If approved, this item will set a property tax rate of $0.5735 per $100 for Fiscal Year 2017.
On September 6, 2016, the City Council proposed a tax rate of $0.5735 per $100 for Fiscal Year 2017. On September 13, 2016, City Council adopted the FY 2017 Budget based on a property tax rate of $0.5735 per $100 of valuation. Section 102.009 (a) of the Local Government Code states "The governing body of the municipality may levy taxes only in accordance with the budget." At that same meeting, under a separate vote, the City Council ratifed a tax increase based upon a tax rate of $0.5735 per $100 valuation. Since the proposed tax rate of $0.5735 is more than the effective rate of $0.550866, public hearings were required. The City Council conducted public hearings on September 20 and September 27 on this proposal.
Based upon the proposed tax rate of $0.5735 the average homeowner will see a $57 (5.9 percent) increase in taxes imposed. This is based on average values. Individual tax assessments will increase (or decrease) based upon the value as set by the appraisal district.
Total Tax Rate $0.5735
Debt Rate $0.159503
M&O Rate $0.413997
Effective M&O Rate $0.471412
Effective Rate $0.550866
Rollback Rate $0.579816
Section 26.05 of the tax code requires certian language be included in the budget ordinance and the following required motion language to identify the percentage by which the proposed tax rate exceeds the effective tax rate. In order to adopt this ordinance the motion that must be made is "I move that the property tax rate be increased by the adoption of a tax rate of $0.5735 which is effectively a 4.11% increase in the tax rate."
Attachments
1. Data Sheet
2. Tax Rate Ordinance
FUNDING
{ } NOT APPLICABLE
{ } Funds are available from Account #___________________________
{ } Requires Budget Amendment to transfer from Account #____________to Account # ___________________