Item 10A - MemoIM1i",§1171
CITY OF MEMORANDUM
SOUTHLAKE July 30, 2024
To: Alison Ortowski, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Consider proposal to adopt a tax increase and set public
hearing on the tax rate for the August 20, 2024 and September
3, 2024 Regular City Council meetings
Action
Requested: City Council's direction regarding the FY 2025 tax rate prior to
the city manager filing the budget on August 15t"
Background
Information: Recall the current tax is $0.319 which equates to an annual
tax bill of $2,606 for an average valued home in Southlake.
State statute requires a taxing unit to calculate two rates after
receiving the certified appraisal tax roll: the no -new -revenue
tax rate ($0.3060) and the voter -approval tax rate ($0.3327).
The no -new- revenue rate is the rate that will generate the
same amount of property tax dollars as the previous year
when the two years are compared, excluding new
construction. If a city adopts a tax rate exceeding the no -new -
revenue rate, to comply with truth -in -taxation laws the
governing body must vote to place a proposal to adopt the
rate at a future meeting as an action item and hold two public
hearings.
Rate
Tax Rate
Average
Options Tax Rate
Reduction
Reduction-
Valued
from
Revenue
Home
Current Tax
Impact
Tax Bill
Rate
No -new- $0.3060
$0.013
($1,578,522)
$2,702
revenue
Reduced $0.3150
$0.004
($451,006)
$2,781
Tax Rate
Financial
Considerations: The effective tax rate would result in a property tax revenue
reduction of $389,995.
Strategic Link: F1 Safeguarding the public trust through a commitment to
thoughtful planning and responsible, conservative financial
management.
Honorable Mayor and City Council
Page 2 of 2
Citizen Input/
Board Review: Public hearings would be scheduled for August 20th and
September 3rd
Legal Review: None required
Alternatives: None
Supporting
Documents: None
Staff
Recommendation: Place a proposal to adopt a tax rate increase and set public
hearings for the August 20th and September 3rd Regular City
Council meeting.