Item 6J
Consider a proposal to adopt a tax increase
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.
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Homestead Exemption history
As you all are aware, we have chosen to provide homestead exemption as our approach of providing tax relief to our residents and in June you approved a 30% increase in the homestead
exemption bringing the exemption to 16% which is the equivalent to a 7.4 tax rate reduction. This slide shows Southlake’s history of providing tax relief through homestead exemptions
with the ultimate goal of achieving the full 20% which is currently the maximum exemption allowed.
4
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.
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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
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Questions
817-748-8042
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If you have any questions regarding this item, please contact Sharen Jackson at 817-748-8042. Thank you for your attention.