File #: 17-778    Name: FY18 Proposed Tax Rate - Discussion & Record Vote
Type: Agenda Item Status: Approved
In control: City Council Regular Meeting
On agenda: 7/31/2017 Final action: 7/31/2017
Title: Consider/Discuss/Act on Fiscal Year 2017-18 Proposed Tax Rate, Take Record Vote and Set Public Hearing and Adoption Dates
Attachments: 1. Presentation, 2. Motion

Title

Consider/Discuss/Act on Fiscal Year 2017-18 Proposed Tax Rate, Take Record Vote and Set Public Hearing and Adoption Dates

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

 

MEETING DATE:                     July 31, 2017

 

DEPARTMENT:                      Financial Services

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

                                                               

 

RECOMMENDED CITY COUNCIL ACTION:

  • Discuss FY2017-18 proposed tax rate.
  • Take record vote on proposed tax rate.
  • Schedule Public Hearings & Adoption Date:

o                     First Public Hearing: August 15, 2017, 6:00 p.m. at the Collin County Jack Hatchell Administration Building, 2300 Bloomdale Road, Collin County Commissioners Court, 4th Floor, McKinney, Texas 75071.

o                     Second Public Hearing: September 5, 2017, 6:00 p.m. at the Collin County Jack Hatchell Administration Building, 2300 Bloomdale Road, Collin County Commissioners Court, 4th Floor, McKinney, Texas 75071.

o                     Announce Tax Rate Adoption Date: September 19, 2017, 6:00 p.m. at the Collin County Jack Hatchell Administration Building, 2300 Bloomdale Road, Collin County Commissioners Court, 4th Floor, McKinney, Texas 75071.

 

ITEM SUMMARY:

  • The proposed tax rate ceiling is $0.562600 based on 100% market ratio on each $100 of all taxable property within the City.
  • The rate for Maintenance and Operations (M&O) is $0.398012 per $100 valuation. 
  • The rate for Interest and Sinking Funds (I&S) is $0.164588 per $100 valuation.
  • The tax rate ratio is 70% for M&O and 30% for I&S. 
  • The proposed tax rate exceeds the effective tax rate of $0.526703.
  • The effective tax rate is the relationship between taxes for the preceding year and for the current year.
  • City Manager’s recommended tax rate will be significantly lower.
  •  
  • BACKGROUND INFORMATION:
  • State law requires an entity that will propose a tax rate that exceeds the lower of the rollback or effective tax rate, the entity must vote to place a proposal to adopt the rate on the agenda of a future meeting as an action item. This must be a record vote.
  • The effective tax rate is $0.526703 per $100 valuation and the rollback tax rate is $0.562605 per $100 valuation.
  • Once the record vote has passed, State law requires an entity must schedule and hold two public hearings before adopting a tax rate.
  •  
  • FINANCIAL SUMMARY:                      
  • Estimated tax revenues will be determined by the adopted tax rate.