Title
Consider/Discuss/Act on Fiscal Year 2018-19 Proposed Tax Rate, Take Record Vote and Set Public Hearing and Adoption Dates
Summary
COUNCIL GOAL: Financially Sound Government
(4A: Provide Funding and Organizational Framework to Ensure Continual Economic Improvements)
MEETING DATE: August 6, 2018
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
* Discuss FY2018-19 proposed tax rate.
* Provide a motion to propose the tax rate, schedule the public hearings and announce the adoption date by stating the following:
"I move that the City of McKinney propose to adopt a Fiscal Year 2019 Total Tax Rate of $0.540199, which is higher than the Fiscal Year 2019 Effective Tax Rate of $0.506288, and call for two public hearings; the first public hearing to be held on August 21, 2018 at 6:00 p.m. and the second public hearing to be held on September 4, 2018 at 6:00 p.m. Further, a Record Vote on the tax rate adoption will be held on September 17, 2018 at a Special City Council Meeting at 5:30 p.m. All meetings will be held in the McKinney City Hall Council Chambers at 222 North Tennessee Street, McKinney, TX 75069."
* Take record vote on proposed tax rate.
ITEM SUMMARY:
* The proposed tax rate ceiling is $0.540199 based on 100% market ratio on each $100 of all taxable property within the City.
* The rate for Maintenance and Operations (M&O) is $0.377418 per $100 valuation.
* The rate for Interest and Sinking Funds (I&S) is $0.162781 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 $0.506288.
* 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. The tax rate recommended in the budget will be $0.525170.
BACKGROUND INFORMATION:
* State law requires an entity that will propose a tax rate th...
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