Title
Discuss and consider action to approve an ordinance on first and final reading with the caption reading: Tax Levy Ordinance of the City of Pflugerville, Texas for Fiscal Year 2020.
Summary
The truth in taxation process requires the City to hold two public hearings on the tax increase proposed for fiscal year (FY) 20. The the first public hearing was held on September 10, 2019 and the second public hearing was held on September 17, 2019. These public hearings were required because the maximum proposed tax rate for FY20 is higher than the calculated effective rate of $0.4737 and will raise more ad valorem tax revenue.
Attached to this agenda item are tax levy ordinances for adoption of a Council proposed rate of $0.5016 and the proposed maximum property tax rate of $0.5045. The Council proposed rate of $0.5016 reflects the rate that includes requested adjustments to the FY20 Proposed Budget as discussed on September 17, 2019. The proposed maximum property tax rate of $0.5045 is the proposed rate approved on August 27, 2019 and is equivalent to the FY20 calculated rollback rate. Both rates are an increase from the FY19 adopted rate of $0.4976. The ordinances include language required by Texas Tax Code, Chapter 26, and have been reviewed and approved as to form by the City Attorney's Office.
The ordinance adopted tonight will set a tax rate to be effective October 1, 2019. Consideration of either the Council proposed rate ($0.5016) or the proposed maximum property tax rate ($0.5045) exceeds the effective tax rate and the Tax Code (§26.05(b)) requires a record vote with at least 60% of the members of the governing body (5 members) voting in favor of the action.
Prior City Council Action
On August 27, 2019 a proposed maximum property tax rate of $0.5045/$100 property valuation was approved.
The City Council held the first public hearing on the tax rate on September 10, 2019.
The City Council held the second public hearing on the tax rate on September 17, 2019.
The City Council directed calculation of adjustments to the budget and preparation of a tax rate needed to fund the resulting budget on September 17, 2019.
Projected Future City Council Action
Consideration of adoption of the property tax rate is scheduled for September 24, 2019 at 7:00 p.m., in the City Council Chambers, 100 East Main Street, Suite 500.
Deadline for City Council Action
September 30, 2019.
Fiscal Impact
Funding Expected: Revenue _X__ Expenditure ___ N/A __
Budgeted Item: Yes _X__ No ___ N/A __
Amount: $_31,227,739 for operations and debt service
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A ___ Required _X_ Date Completed: _8/16/18_
Supporting documents attached
Ordinance - $0.5045
Ordinance - $0.5016
Recommended Action
Approve the tax levy ordinance with the proposed rate of $0.5045.