Title
Consider/Discuss/Act on Fiscal Year 2023-24 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 1, 2023
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
* Discuss FY2023-24 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 2024 Total Tax Rate of $0.430734, which is higher than the Fiscal Year 2024 no-new-revenue tax rate of $0.409180, and call for a public hearing; the public hearing to be held on September 5, 2023 at 6:00 p.m. Further, a record vote on the tax rate adoption will be held on September 5, 2023 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 $0.430734 based on 100% market ratio on each $100 of all taxable property within the City.
* The rate for Maintenance and Operations (M&O) is $0.289909 per $100 valuation.
* The rate for Interest and Sinking Funds (I&S) is $0.140825 per $100 valuation.
* The tax rate ratio is 67% for M&O and 33% for I&S.
* The proposed tax rate of $0.430734 exceeds the no-new-revenue tax rate of $0.409180.
* 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 rat...
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