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MEMORANDUM
August 30, 2006
TO: Shana Yelverton, City Manager
FROM: Sharen Jackson, Director of Finance
SUBJECT: Ordinance No.899 , 1" reading, Tax Levy Ordinance
Action Requested: Approval of Ordinance No. 899, on 1 reading, levying ad valorem taxes at the
rate of $.462 for the Fiscal Year beginning October 1, 2006 and ending
September 30, 2007.
Background
Information: The FY2006 -07 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 2006 -07
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
$3,972,300, which is the value of properties as of January 1, 2006. 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, 2006.
The proposed tax rate of $.462 will exceed the effective tax rate ($.424225) and
increase tax revenues. Even though the tax rate is held at $.462, the tax rate
exceeds the effective tax rate $.424225. Based on state law, a motion to adopt
an ordinance setting a tax rate that exceeds the effective tax rate must be made in
the following form.: "I move that property taxes be increased by the
adoption of a tax rate of .462."
Financial
Considerations: For FY 2006 -07 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 5, 2006 and September 19, 2006
with the 1st and 2" reading of Ordinance No. 899, 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 ur force until otherwise provided.
Shana Yelverton, City Manager
Ordinance No. 899
August 30, 2006
Page 2
Supporting
Documents: Ordinance No. 899
Staff
Recommendation: Approval of Ordinance No. 899, on I" reading, levying ad valorem taxes at the
rate of $462 for the Fiscal Year beginning October 1, 2006 and ending
September 30, 2007.
ORDINANCE NO. 899
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,
2006 AND ENDING SEPTEMBER 30, 2007, 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, 2006, 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 SEVER-ABILITY
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, 2006, and ending September 30, 2007, 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
WHEREAS, the City Council has approved, by a separate ordinance adopted on the 19 day of September,
2006, the budget for the fiscal year beginning October 1, 2006, and ending September 30, 2007; and
WHEREAS, all statutory and constitutional requirements concerning the levying and assessing of ad
valorem taxes have been complied with.
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NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE,
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, 2006, and ending September 30, 2007, 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 properly, 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. THE
TAX RATE WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A
$100,000 HOME BY APPROZIMATELY $26.13.
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.
Section 3. That all ad valorem taxes shall become due and payable on December 31, 2006, and all
ad valorem taxes for the year shall become delinquent after January 31, 2007. There shall be no discount for
payment of taxes prior to said January 31, 2007. 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 1 st of the year in which it becomes delinquent.
Provided, however, a tax delinquent by July I st 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, 2007, 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.
Section 6. That any and all ordinances, resolutions, rules, regulations, policies or provisions inconsistent or
in conflict with the provisions of this Ordinance are hereby expressly repealed and rescinded to the extent of the
inconsistency or conflict.
Section 7. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or
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 , 2006.
ATTEST:
Lori Farwell
City Secretary
Andy Wambsganss, Mayor
PASSED AND APPROVED on second reading this day of , 2006.
Lori Farwell
City Secretary
APPROVED AS TO FORM:
City Attorney
Date:
Adopted.:
Effective:
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Andy Wambsgansa, Mayor