Item 6G
Item 6G
M E M O R A N D U M
September 9, 2015
To:
Shana Yelverton, City Manager
From:
Sharen Jackson, Chief Financial Officer
nd
Subject:Ordinance No. 1126,2Reading, Tax Levy Ordinance
Action
Requested:
purpose of this item is to seek Council approval on the
The
tax levy at a tax rate of $0.462.
Background
Information:
The FY 2016budget as submitted to the City Council
proposes a tax rate of $.462 per $100 of a property’s taxable
value. State law requires the City to adopt the tax rate in two
components.Part of the tax rate, $.10 (22%) per $100, pays
for the retirement of debt that is due during the 2016budget
year. The remainder of the tax rate, $.362 (78%) per $100,
is used to support General Fund operations of the City. This
reflects a reallocation of $0.02 from debt service to
operations; to provide additional cash for the Strategic
Initiative Fund to be used for capital projects, made possible
by a reduction in debt service obligations.
th
On July 25, the Tarrantand DentonAppraisal Districts
certified to City management the appraised values of all
properties in Southlake. Total taxable value in the City is
$5,785,322,918(net of TIF value), which is the value of
properties as of January 1, 2015. Upon adoption of a tax
rate upon the second reading, the City’s tax collector,
TarrantCounty, will be notified of the adopted rate. Tarrant
County will then apply the tax rate to the taxable values of
properties in Southlake, and generate tax statements after
October 1, 2015.
This year's proposed tax rate($0.462)exceeds the effective
tax rate ($0.430012). A motion to adopt the ordinance must
includethefollowing:
“I move that the property tax rate be increased by the
adoption of a tax rate of 0.462, which is effectively a
7percent increase in the tax rate.
”
The tax rate remains steady for the thirteenth year at $0.462
but the proposed FY 2016 budget includes tax relief in the
form ofa12% homestead exemption. The property owner of
an average-valued home will see the equivalent of a tax rate
reduction of more than $0.055 which is 12% reduction in the
tax rate.
Financial
Considerations:
For FY 2016tax rate allocation of .362for general fund
operations and .10for debt service. As previously
mentioned, this will provide a distribution of 78% of the rate
for operations and 22% for debt service.
Strategic Link:F1
Adhere to financial management principles and budget
Citizen Input/
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Board Review:
Public hearing isscheduled for September 15
Legal Review:
None required
Alternatives:
In the absence of approving and adopting the ordinance, the
existing tax rate and related allocation between maintenance
and operations and debt service would remain in force until
otherwise provided.
Supporting
Documents:
Ordinance No. 1126
Staff
nd
Recommendation:
Approval of Ordinance No. 1126,on2reading, levying ad
valorem taxes at the rate of $.462 for the Fiscal Year
beginning October 1, 2015and ending September 30, 2016.
ORDINANCE NO. 1126
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, FIXING AND LEVYING MUNICIPAL AD
VALOREM TAXES FOR THE FISCAL YEAR BEGINNING
OCTOBER 1, 2015AND ENDING SEPTEMBER 30, 2016, AND
FOR EACH YEAR THEREAFTER UNTIL OTHERWISE
PROVIDED, AT THE RATE OF $0.462 PER ONE HUNDRED
DOLLARS ($100.00) ASSESSED VALUE ON ALL TAXABLE
PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY
OF SOUTHLAKE, TEXAS, AS OF JANUARY 1, 2015, TO
PROVIDE REVENUES FOR THE PAYMENT OF CURRENT
EXPENSES AND TO PROVIDE AN INTEREST AND SINKING
FUND ON ALL OUTSTANDING DEBTS OF THE CITY;
DIRECTING THE ASSESSMENT THEREOF; PROVIDING FOR
DUE AND DELINQUENT DATES TOGETHER WITH
PENALTIES AND INTEREST THEREON; PROVIDING FOR
PLACE OF PAYMENT; PROVIDING FOR APPROVAL OF THE
TAX ROLLS PRESENTED TO THE CITY COUNCIL;
PROVIDING FOR THE REPEAL OF INCONSISTENT
ORDINANCES; PROVIDING FOR A SEVERABILITY CLAUSE;
AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Southlake, Texas (hereinafter referred to as
the "City") hereby finds that the tax for the fiscal year beginning October 1, 2015, and ending
September 30, 2016, hereinafter levied for current expenses of the City and the general
improvements of the City and its property must be levied to provide the revenue requirements of
the budget for the ensuing year; and
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WHEREAS, the City Council has approved, by a separate ordinance adopted on the 15
day of September, 2015, the budget for the fiscal year beginning October 1, 2015, and ending
September 30, 2016; and
WHEREAS, all statutory and constitutional requirements concerning the levying and
assessing of ad valorem taxes have been complied with.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
Section 1.That all of the above premises are found to be true and correct and are
incorporated intothe body of this Ordinance as if copied in their entirety.
Section 2.That there is hereby levied and ordered to be assessed and collected for
the fiscal year beginning October 1, 2015, and ending September 30, 2016, and for each fiscal
year thereafter until it be otherwise provided by and ordained on all taxable property, real,
personal and mixed, situated within the corporate limits of the City of Southlake, Texas, and not
exempt from taxation by the Constitution of the State and valid State laws, an advalorem tax rate
of $0.462 for the general operations of the City on each One Hundred Dollars ($100.00) assessed
value of taxable property, and shall be apportioned and distributed as follows:
a.For the purpose of defraying the current expenses of the municipal government
of the City, a tax of $0.362 on each One Hundred Dollars ($100.00) assessed
THIS TAX RATE WILL RAISE MORE TAXES
value of all taxable property.
FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX
RATE.
THE TAX RATE WILL EFFECTIVELY BERAISED BY 13.71 PERCENT
AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS
ON A $100,000 HOME BY APPROXIMATELY $20.00.
b.For the purpose of creating a sinking fund to pay the interest and principal on all
outstanding debt of the City, not otherwise provided for, a tax of $0.10on each
one Hundred Dollars ($100.00) assessed value of all taxable property, within the
City which shall be applied to the payment of such interest and maturities of all
outstanding debt.
Section 3.That all ad valorem taxes shall become due and payable on December
31, 2015, and all ad valorem taxes for the year shall become delinquent after January 31, 2016.
There shall be no discount for payment of taxes prior to said January 31, 2016. A delinquent tax
shall incur all penalty and interest authorized by State law Sections 33.01 and 33.11 of the
Property Tax Code, to-wit: a penalty of six percent (6%) of the amount of the tax for the first
calendar month it is delinquent plus one percent (1%) for each additional month or portion of a
month the tax remains unpaid prior to July 1st of the year in which it becomes delinquent.
Provided, however, a tax delinquent by July 1st incurs a total penalty of twelve percent
(12%) of the amount of the delinquent tax without regard to the number of months the tax has
been delinquent. A delinquent tax shall also accrue interest at a rate of one percent (1%) for
each month or portion of a month the tax remains unpaid. Taxes that remain delinquent on July
1, 2014, incur an additional penalty of twenty percent (20%) of the amount of taxes, penalty and
interest due; such additional penalty is to defray costs of collection due to contract with the City's
attorney pursuant to Section 6.30 of the Property Tax Code.
Section 4.Taxes are payable at theoffice of Tarrant County Tax Collector. The City shall
have available all rights and remedies provided by law for the enforcement of the collection of
taxes levied under this ordinance.
Section 5.That the tax rolls, as presented to the City Council, together with any
supplement thereto, be, and the same are hereby approved.
Section 6.That any and all ordinances, resolutions, rules, regulations, policies or
provisions inconsistent or in conflict with the provisions of this Ordinance are hereby expressly
repealed and rescinded to the extent of the inconsistency or conflict.
Section 7.If any section, article, paragraph, sentence, clause, phrase or word in this
Ordinance, or application thereto any person or circumstances is held invalid or unconstitutional
by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining
portions of this Ordinance; and the City Council hereby declares it would have passed such
remaining portions of this Ordinance despite such invalidity, which remaining portions shall
remain in full force and effect.
Section 8.That the necessity of and levying municipal ad valorem taxes of the City for the
next fiscal year as required by the laws of the State of Texas, requires that this Ordinance shall
take effect immediately from and after its passage, and it is accordingly so ordained.
PASSED AND APPROVED on first reading this _____ day of _________________,
2015.
_________________________
Laura Hill, Mayor
ATTEST:
__________________________
Lori Payne
City Secretary
PASSED AND APPROVED on second reading this _____ day of
_________________, 2015.
_________________________
Laura Hill, Mayor
ATTEST:
__________________________
Lori Payne
City Secretary
APPROVED AS TO FORM:
__________________________
City Attorney
Date:_____________________
Adopted:__________________
Effective:________________