Item 6BM E M O R A N D U M
August 28, 2018
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 $.447 will exceed the effective tax
rate ($.441648) and increase tax revenues. Even though the
tax rate is reduced from $.462 to $.447, the tax rate exceeds
the effective tax rate ($.441648) by 1.21%. 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 21st.
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 18, 2018
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
impact of $389,995.
Strategic Link: F1 Adhere to financial management principles and budget
Citizen Input/
Board Review: Second Public hearing is scheduled for September 4th
Legal Review: None required
Alternatives: None
Supporting
Documents: None
Staff
Recommendation: Hold public hearing to comply with state law.