Title
Discuss and consider action to approve an ordinance on first and final reading with the caption reading: An Ordinance of the City of Pflugerville, Texas, Tax Levy Ordinance of the City of Pflugerville, Texas for Fiscal Year 2023
Summary
Summary of Tax Rate:
No-New-Revenue Tax Rate: $0.3966
Un-Adjusted Voter-Approval Tax Rate: $0.4571
Unused Increment: $0.0242
Voter-Approval Tax Rate: $0.4813
Based on the certified property values received from the Travis and Williamson Central Appraisal Districts, the Travis County Tax Office has calculated the voter-approval rate at $0.4813/$100 valuation and the no-new-revenue rate at $0.3966/$100 valuation. As required by the Texas Tax Code, this information has been published on September 4, 2022, on the City website www.pflugervilletx.gov/budget and both the Travis (https://travis.trueprodigy-taxtransparency.com) and Williamson (https://williamsonpropertytaxes.org) Central Appraisal District Truth in Taxation websites. In addition, the Notice of Public Hearing on Tax Increase was published in the Austin American Statesman onSeptember 4, 2022, as required by Tax Code §26.061.
The City's proposed tax rate of $0.4813 is a decrease from the prior year tax rate by $0.005, and includes two main components: the Maintenance & Operations tax rate (M&O) plus the Debt Service tax rate (I&S or interest and sinking). The proposed M&O rate of $0.2131 reflects a 9.8% decrease from the prior year, and the proposed I&S rate of $0.2682 is a 6.7% increase from prior year. The increase in I&S rate is due to continued issuance of 2020 Voter Approved bonds for park and street projects, and $18M in certificates of obligation bonds for facility, street, and traffic signal projects.
On August 9, 2022, the City Council adopted a resolution specifying a maximum property tax rate for FY23 of $0.4813/$100 valuation, which is the voter-approval rate and equates to an operating revenue increase of 12%. In accordance with Texas Tax Code 26.05(b), at least 60% (5 out of 7) of the members of Council must vote in favor of the proposed tax rate in order for it to be adopted since the proposed tax rate exceeds the no-new-revenue tax rate.
The ordinance includes language required by Texas Tax Code Chapter 26, and have been reviewed and approved as to form by the City Attorney's Office.
Prior City Council Action
On September 13, 2022 a public hearing was held on the tax rate prior to consideration of this item.
On August 09, 2022, City Council adopted a resolution specifying a maximum property tax rate for FY23 of $0.4813/$100 valuation.
Deadline for City Council Action
Action is required on September 13, 2022 to adopt a tax rate for FY23.
Funding Expected: Revenue _X_ Expenditure __ N/A __
Budgeted Item: Yes _x_ No __ N/A __
Amount: _$44,104,930 total tax levy__
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _x_ Date Completed: _09/02/2022_____
Supporting documents attached:
Tax Rate Ordinance
Notice of Public Hearing on Tax Increase
Recommended Action
Staff recommends approval of an ordinance on first and final reading with the caption reading: An Ordinance of the City of Pflugerville, Texas, Tax Levy Ordinance of the City of Pflugerville, Texas for Fiscal Year 2023