MEETING: City Council – September 18, 2018
TITLE: Consider an Ordinance of the City of Duncanville, Texas, Levying Ad Valorem Taxes for the Year 2018 at a rate of $0.748447 per one hundred dollars ($100.00) assessed valuation on all taxable property within the Corporate limits of the City as of January 1, 2018, to provide revenues for current expenses and interest and sinking fund requirements; providing for due and delinquent dates together with penalties and interest; and, declaring an effective date.
BACKGROUND/HISTORY: Two Public Hearings were held on August 21, 2018 and on September 4, 2018 regarding the tax rate.
POLICY EXPLANATION: Texas Tax Code Section 26.05(d) requires local governments to hold two public hearings when the proposed rate exceeds the lower of the effective tax rate or the rollback rate. Even when the tax rate is not changed, if taxable property values increase from the prior year, there are more revenues from taxes (effectively) in the current proposed year versus the prior year. The tax rate being adopted is lower than the previous year, yet effectively there is an increase in revenue due to the increased taxable valuations. The required motion to adopt the tax rate is stated below in the Recommendation Section. Also, note the percentage increase calculated in the motion is based on the total tax rate (Maintenance and Operations plus Interest and Sinking Fund) which differs from the percentage increase in the attached ordinance which is based on the Maintenance and Operations only rate. Furthermore, Truth In Taxation rules require the calculations and disclosures above which are based on the effective increase (positive percentage based on increased taxable valuations) and contained in Section 2 of the ordinance. The effect of actually lowering the City tax rate by $0.01 for 2018 taxes is reflected in the Maintenance and Operations tax decrease of $3.31 when applied to a fixed value, in this case a $100,000 home, as stipulated by state law.
RECOMMENDATION: Staff recommends approval of an Ordinance of the City of Duncanville, Texas, Levying Ad Valorem Taxes for the Year 2018 at a rate of $0.748447 per one hundred dollars ($100.00) assessed valuation on all taxable property within the Corporate limits of the City as of January 1, 2018, to provide revenues for current expenses and interest and sinking fund requirements; providing for due and delinquent dates together with penalties and interest; and, declaring an effective date.
Motion: I move that the property tax rate be increased by the adoption of a tax rate of 0.748447, which is effectively a 8.49 percent increase in the tax rate.
COUNCIL ACTION: Approved by Council. None Opposed.
Patrick Harvey 