Item 6B CITY iOFr i I I
SOUTHLAKE Item 6B
MEMORANDUM
August 29, 2017
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Consider a proposal to adopt a tax increase
Action
Requested: Consider a proposal to adopt a tax increase and hold public
hearing on the tax rate.
Background
Information: The proposed tax rate of $.462 will exceed the effective tax
rate ($.44612) and increase tax revenues. Even though the
tax rate is held at $.462 for the 15t`' year, the tax rate
exceeds the effective tax rate ($.44612). Because the tax rate
exceeds the effective tax rate, state law requires that two
public hearings be held by the governing body before adopting
the proposed tax rate. This is the second of two public
hearings on the proposed tax increase. The first public
hearing was held on August 15t"
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 19, 2017
at 5:30 P.M. or immediately following the work session in the
City Council Chambers at Town Hall, 1400 Main Street
Southlake Texas"
It is important to note the city has chosen to use the
homestead exemption as the form of tax relief to residents. In
June 2017, City Council approved Ordinance 1174 to increase
the homestead exemption to 20% which is the equivalent to a
$.0924 tax rate reduction which is a larger savings to the
residents than the effective rate of $.44612 ($.01588 tax
reduction).
Financial
Considerations: The effective tax rate would result in a property tax revenue
impact of$1,058,004.
Strategic Link: F1 Adhere to financial management principles and budget
Citizen Input/
Board Review: Second Public hearing is scheduled for September 5t"
Legal Review: None required
Honorable Mayor and City Council
Page 2 of 2
Alternatives: None
Supporting
Documents: None
Staff
Recommendation: Hold public hearing to comply with state law.