File #: 22-0712    Name: FY23 Proposed Tax Rate & Record Vote
Type: Agenda Item Status: Regular Agenda Item
In control: City Council Regular Meeting
On agenda: 8/2/2022 Final action:
Title: Consider/Discuss/Act on Fiscal Year 2022-23 Proposed Tax Rate, Take Record Vote and Set Public Hearing and Adoption Date
Attachments: 1. Presentation

Title

Consider/Discuss/Act on Fiscal Year 2022-23 Proposed Tax Rate, Take Record Vote and Set Public Hearing and Adoption Date

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

(4A: Provide Funding and Organizational Framework to Ensure Continual Economic Improvements)

 

MEETING DATE:                     August 2, 2022

 

DEPARTMENT:                      Financial Services

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

                                                               

 

RECOMMENDED CITY COUNCIL ACTION:

  • Discuss FY2022-23 proposed tax rate.
  • Provide a motion to propose the tax rate, schedule a public hearing, and announce the adoption date by stating the following:
  •  
  • “I move that the City of McKinney propose to adopt a Fiscal Year 2023 Total Tax Rate of $0.459547, which is higher than the Fiscal Year 2023 no-new-revenue tax rate of $0.433324, and call for a public hearing; the public hearing to be held on September 6, 2022 at 6:00 p.m. Further, a record vote on the tax rate adoption will be held on September 6, 2022 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.
  •  
  • ITEM SUMMARY:
  • The proposed tax rate ceiling is $0.459547 based on 100% market ratio on each $100 of all taxable property within the City.
  • The rate for Maintenance and Operations (M&O) is $0.313859 per $100 valuation. 
  • The rate for Interest and Sinking Funds (I&S) is $0.145688 per $100 valuation.
  • The tax rate ratio is 68% for M&O and 32% for I&S. 
  • The proposed tax rate of $0.459547 exceeds the no-new-revenue tax rate of $0.433324.
  • The no-new-revenue tax rate is the relationship between taxes for the preceding year and for the current year; it will raise the same amount of property tax revenue from the same properties in both the preceding tax year and the current tax year.
  • The voter-approval tax rate is the highest tax rate that an entity may adopt without holding an election to seek voter approval of the rate.
  • The no-new-revenue tax rate is $0.433324 per $100 valuation and the voter-approval tax rate is $0.473666 per $100 valuation.
  •  
  • BACKGROUND INFORMATION:
  • State law requires that an entity must vote to place a proposal to adopt the tax rate on the agenda of a future meeting as an action item. This must be a record vote.
  • Once the record vote has passed, State law requires an entity must schedule and hold a public hearing before adopting a tax rate if the proposed tax rate exceeds the No-New Revenue or Voter-Approval Tax Rate (whichever is lower).
  • The tax rate exceeds the No-New-Revenue Tax Rate and requires a public hearing to be scheduled.
  •  
  • FINANCIAL SUMMARY:                      
  • Estimated tax revenues will be determined by the adopted tax rate.