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Item 4G Consider proposal to adopt a tax increase and set public hearings Item 4G Mayor and members of the City Council, this presentation will cover Item 4G on August 2nd agenda 1 Background Proposed tax rate $.462 14th consecutive year Exceeds effective tax rate $.456949 Even though FY 2017 will mark the 14th consecutive year the tax rate is held steady at .462. Each year we are required to calculate the effective and rollback rate. The effective tax rate is simply the calculated tax rate required to maintain the same property tax revenue for FY 2017 as collected in FY 2016 for existing property. This year the effective tax rate is .456949 which is 1.11% less than the proposed tax rate of .462 therefore the proposed tax rate will generate additional property tax revenue than the effective tax rate. 2 Requirements Truth in Taxation requires Governing body vote Proposal to adopt the “increase” on a future agenda Hold two public hearings August 16, 2016 September 6, 2016 Because the proposed tax rate (.462) exceeds the effective tax rate (.456949), in accordance with the statute city council must vote to place a proposal to adopt the rate on a future agenda as an action item and hold two public hearings on the proposal. The first public hearings are will be held on August 16th and September 6th. 3 Financial Considerations FY 2017 Property Tax Revenue $321,693 financial impact The difference between the proposed tax rate of .462 and the effective tax rate of .456949 would result in a property tax financial revenue impact of $321,693 for FY 2017. 4 City of Southlake Strategy Map The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing efficiency, fiscal responsibility, transparency, and sustainability. C1 Achieve the highest standards of safety & security C2 Provide travel convenience within City & region C3 Provide attractive & unique spaces for enjoyment of personal interests C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment C5 Promote opportunities for partnerships & volunteer involvement Serve our Customers Manage the Business B1 Achieve best-in-class status in all City disciplines B2 Collaborate with select partners to implement service solutions B3 Enhance resident quality of life & business vitality through tourism B4 Provide high quality services through sustainable business practices B5 Enhance service delivery through continual process improvement B6 Optimize use of technology Provide Financial Stewardship Promote Learning and Growth F1 Adhere to financial management principles & budget F2 Invest to provide & maintain high quality public assets F3 Achieve fiscal wellness standards F4 Establish & maintain effective internal controls L1 Ensure our people understand the strategy & how they contribute to it L2 Enhance leadership capabilities to deliver results L3 Attract, develop & retain a skilled workforce L4 Recognize & reward high performers L5 Empower informed decision-making at all levels in the organization C6 Enhance the sense of community by providing excellent customer service and citizen engagement opportunities L6 Foster positive employee engagement Deliver on Our Focus Areas This agenda item links specifically to the city’s strategy map-corporate business objective of F1 Adhere to financial management principles & budget 5 Questions 817-748-8042 6 If you have any questions regarding this item, please contact Sharen Jackson at 817-748-8042. Thank you for your attention.