File #: 19-0660    Name: FY20 Proposed Tax Rate Record Vote (Sets Ceiling)
Type: Agenda Item Status: Approved
In control: City Council Regular Meeting
On agenda: 8/5/2019 Final action: 8/5/2019
Title: Consider/Discuss/Act on Fiscal Year 2019-20 Proposed Tax Rate, Take Record Vote and Set Public Hearing and Adoption Dates
Attachments: 1. Tax Rate Record Vote

Title

Consider/Discuss/Act on Fiscal Year 2019-20 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 5, 2019

 

DEPARTMENT:                      Financial Services

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

                                                               

 

RECOMMENDED CITY COUNCIL ACTION:

  • Discuss FY2019-20 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 2020 Total Tax Rate of $0.525170, which is higher than the Fiscal Year 2020 Effective Tax Rate of $0.508664, and call for two public hearings; the first public hearing to be held on August 20, 2019 at 6:00 p.m. and the second public hearing to be held on September 3, 2019 at 6:00 p.m.  Further, a record vote on the tax rate adoption will be held on September 17, 2019 at 6:00 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.
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  • ITEM SUMMARY:
  • The proposed tax rate ceiling is $0.525170 based on 100% market ratio on each $100 of all taxable property within the City.
  • The rate for Maintenance and Operations (M&O) is $0.364963 per $100 valuation. 
  • The rate for Interest and Sinking Funds (I&S) is $0.160207 per $100 valuation.
  • The tax rate ratio is 69% for M&O and 31% for I&S. 
  • The proposed tax rate exceeds the effective tax rate of $0.508664.
  • 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 $0.51560.
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  • 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 $0.508664 per $100 valuation and the rollback tax rate is $0.539293 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.
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  • FINANCIAL SUMMARY:                      
  • Estimated tax revenues will be determined by the adopted tax rate.