Item 6BCity of Southlake, Texas
M E M O R A N D U M
September 11, 2007
TO: Shana Yelverton, City Manager
FROM: Sharen Jackson, Director of Finance
nd
Ordinance No.916, 2 reading, Tax Levy Ordinance
SUBJECT:
________________________________________________________________________
nd
Action Requested:
Approval of Ordinance No. 916, on 2 reading, levying ad valorem taxes
at the rate of $.462 for the Fiscal Year beginning October 1, 2007 and
ending September 30, 2008.
Background
Information:
The FY2008 budget as submitted to the City Council proposes a tax rate
of $.462 per $100 of a property’s taxable value. Part of the tax rate,
$.14242 (30.8%) per $100, pays for the retirement of debt that is due
during the 2008 budget year. The remainder of the tax rate, $.31958
(69.2%) per $100, is used to support General Fund operations of the
City. State law requires the City to adopt the tax rate in these two
components.
On July 25, the Tarrant Appraisal District certified to City management
the appraised values of all properties in Southlake. Total taxable value
in the City is $4,592,696,873, which is the value of properties as of
January 1, 2007. Upon adoption of a tax rate upon the second reading,
the City’s tax collector, Tarrant County, will be notified of the adopted
rate. Tarrant County will then apply the tax rate to the taxable values of
properties in Southlake, and generate tax statements after October 1,
2007.
The proposed tax rate of $.462 will exceed the effective tax rate
Even though the tax rate is
($.433798) and increase tax revenues.
held at $.462
, the tax rate exceeds the effective tax rate $.433798.
Based on state law, a motion to adopt an ordinance setting a tax rate
“I
that exceeds the effective tax rate must be made in the following form:
move that property taxes be increased by the adoption of a tax rate
of .462.”
Financial
Considerations:
For FY 2008 tax rate allocation of .31958 for general fund operations and
.14242 for debt service. As previously mentioned, this will provide a
distribution of 69.2% of the rate for operations and 30.8% for debt
service.
Citizen Input/
Board Review:
A Public Hearing is scheduled for September 4, 2007 and September 18,
stnd
2007 with the 1 and 2 reading of Ordinance No. 916, respectively.
Legal Review:
None required.
Alternatives:
In the absence of approving and adopting the ordinance, the existing tax
rate and related allocation between maintenance and operations and
debt service would remain in force until otherwise provided.
Shana Yelverton, City Manager
Ordinance No. 916
September 11, 2007
Page 2
Supporting
Documents:
Ordinance No. 916
Staff
nd
Recommendation:
Approval of Ordinance No. 916, on 2 ending, levying ad valorem taxes
at the rate of $.462 for the Fiscal Year beginning October 1, 2007 and
ending September 30, 2008.
ORDINANCE NO. 916
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, FIXING AND LEVYING MUNICIPAL AD
VALOREM TAXES FOR THE FISCAL YEAR BEGINNING OCTOBER 1,
2007 AND ENDING SEPTEMBER 30, 2008, AND FOR EACH YEAR
THEREAFTER UNTIL OTHERWISE PROVIDED, AT THE RATE OF
$0.462 PER ONE HUNDRED DOLLARS ($100.00) ASSESSED VALUE ON
ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE
CITY OF SOUTHLAKE, TEXAS, AS OF JANUARY 1, 2007, TO PROVIDE
REVENUES FOR THE PAYMENT OF CURRENT EXPENSES AND TO
PROVIDE AN INTEREST AND SINKING FUND ON ALL OUTSTANDING
DEBTS OF THE CITY; DIRECTING THE ASSESSMENT THEREOF;
PROVIDING FOR DUE AND DELINQUENT DATES TOGETHER WITH
PENALTIES AND INTEREST THEREON; PROVIDING FOR PLACE OF
PAYMENT; PROVIDING FOR APPROVAL OF THE TAX ROLLS
PRESENTED TO THE CITY COUNCIL; PROVIDING FOR THE REPEAL
OF INCONSISTENT ORDINANCES; PROVIDING FOR A SEVERABILITY
CLAUSE; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Southlake, Texas (hereinafter referred to as the "City") hereby
finds that the tax for the fiscal year beginning October 1, 2007, and ending September 30, 2008, hereinafter levied
for current expenses of the City and the general improvements of the City and its property must be levied to provide
the revenue requirements of the budget for the ensuing year; and
th
WHEREAS, the City Council has approved, by a separate ordinance adopted on the 20 day of September,
2007, the budget for the fiscal year beginning October 1, 2007, and ending September 30, 2008; and
WHEREAS, all statutory and constitutional requirements concerning the levying and assessing of ad
valorem taxes have been complied with.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE,
TEXAS:
Section 1. That all of the above premises are found to be true and correct and are incorporated into
the body of this Ordinance as if copied in their entirety.
Section 2. That there is hereby levied and ordered to be assessed and collected for the fiscal year
beginning October 1, 2007, and ending September 30, 2008, and for each fiscal year thereafter until it be otherwise
provided by and ordained on all taxable property, real, personal and mixed, situated within the corporate limits of
the City of Southlake, Texas, and not exempt from taxation by the Constitution of the State and valid State laws, an
ad valorem tax rate of $0.462 for the general operations of the City on each One Hundred Dollars ($100.00)
assessed value of taxable property, and shall be apportioned and distributed as follows:
a. For the purpose of defraying the current expenses of the municipal government of the City, a tax
of $0.31958 on each One Hundred Dollars ($100.00) assessed value of all taxable property.
THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND
OPERATIONS THAN LAST YEAR’S TAX RATE. THE TAX RATE WILL RAISE
TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
APPROZIMATELY $28.20.
b. For the purpose of creating a sinking fund to pay the interest and principal on all outstanding debt
of the City, not otherwise provided for, a tax of $0.14242 on each one Hundred Dollars ($100.00)
assessed value of all taxable property, within the City which shall be applied to the payment of
such interest and maturities of all outstanding debt.
That all ad valorem taxes shall become due and payable on December 31, 2007, and all
Section 3.
ad valorem taxes for the year shall become delinquent after January 31, 2008. There shall be no discount for
payment of taxes prior to said January 31, 2008. A delinquent tax shall incur all penalty and interest authorized by
State law Sections 33.01 and 33.11 of the Property Tax Code, to-wit: a penalty of six percent (6%) of the amount of
the tax for the first calendar month it is delinquent plus one percent (1%) for each additional month or portion of a
month the tax remains unpaid prior to July 1st of the year in which it becomes delinquent.
Provided, however, a tax delinquent by July 1st incurs a total penalty of twelve percent (12%) of the
amount of the delinquent tax without regard to the number of months the tax has been delinquent. A delinquent tax
shall also accrue interest at a rate of one percent (1%) for each month or portion of a month the tax remains unpaid.
Taxes that remain delinquent on July 1, 2008, incur an additional penalty of twenty percent (20%) of the amount of
taxes, penalty and interest due; such additional penalty is to defray costs of collection due to contract with the City's
attorney pursuant to Section 6.30 of the Property Tax Code.
Section 4. Taxes are payable at the office of Tarrant County Tax Collector. The City shall have available
all rights and remedies provided by law for the enforcement of the collection of taxes levied under this ordinance.
Section 5. That the tax rolls, as presented to the City Council, together with any supplement thereto, be,
and the same are hereby approved.
That any and all ordinances, resolutions, rules, regulations, policies or provisions inconsistent or
Section 6.
in conflict with the provisions of this Ordinance are hereby expressly repealed and rescinded to the extent of the
inconsistency or conflict.
If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or
Section 7.
application thereto any person or circumstances is held invalid or unconstitutional by a Court of competent
jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the City
Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity,
which remaining portions shall remain in full force and effect.
Section 8. That the necessity of and levying municipal ad valorem taxes of the City for the next fiscal year
as required by the laws of the State of Texas, requires that this Ordinance shall take effect immediately from and
after its passage, and it is accordingly so ordained.
PASSED AND APPROVED on first reading this _____ day of _________________, 2007.
___________________________
Andy Wambsganss, Mayor
ATTEST:
__________________________
Lori Payne
City Secretary
PASSED AND APPROVED on second reading this _____ day of _________________, 2007.
___________________________
Andy Wambsganss, Mayor
ATTEST:
__________________________
Lori Payne
City Secretary
APPROVED AS TO FORM:
__________________________
City Attorney
Date:_____________________
Adopted:__________________
Effective:________________