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Item 6F M E M O R A N D U M August 11, 2015 To: Shana Yelverton, City Manager From:Sharen Jackson, Chief Financial Officer Subject: Item 6F: Consider proposal to adopt a tax increase Action Requested: Consider proposal to adopt a tax increase and hold public hearing on the tax rate. Background Information:The proposed tax rate of $.462 will exceed the effective tax rate ($.430012) and increase tax revenues. Even though the tax rate is held at $.462 for the thirteenth year,the proposed revenue that will be generated next year exceeds the revenue the City received during the current year, thus putting the tax rate above the effective tax rate. Because this is the case, state law requires that two public hearings be held by the governing body before adopting the proposed tax rate. This is the first of two public hearings on the proposed tax increase. The second public hearing is scheduled for st September 1. At each hearing, the governing body must announce the date, time and place of the meeting at which they will vote on the tax rate. “City Council will vote on the tax rate on September 15, 2015 at 5:30 P.M. or immediately following the work session in the City Council Chambers at Town Hall, 1400 Main Street Southlake Texas” Financial Considerations:The effective tax rate would result in a property tax revenue reduction of $1,850,609 Strategic Link: F1 Adhere to financial management principles and budget Citizen Input/ st Board Review: Second Public hearing is scheduled for September 1 Legal Review: None required Alternatives: None Supporting Documents: None Staff Recommendation: Hold public hearing to comply with state law.