Agenda Information Sheet
DEPARTMENT: Finance
ACM: Bryan Langley
Date: September 20, 2016
SUBJECT
Title
Consider adoption of an ordinance of the City of Denton, Texas, levying the ad valorem property tax of the City of Denton, Texas, for the year 2016, on all taxable property within the corporate limits of the city on January 1, 2016, and adopting a tax rate of $0.682250 or a tax rate not to exceed $0.689750 per $100 of valuation for 2016; providing revenues for payment of current municipal maintenance and operation expenses and for payment of interest and principal on outstanding City of Denton debt; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date.
Body
BACKGROUND
In order to provide the Council with flexibility in its consideration of a tax rate, staff has included both a proposed rate of $0.682250 as previously discussed on September 13, 2016 and an amount not to exceed the maximum allowable tax rate of $0.689750. With this flexibility, the Council is able to consider any amount below the maximum allowable tax rate.
The proposed tax rate of $0.682250 per $100 valuation is used to fund the FY 2016-17 Budget. This proposed tax rate is $0.0075 lower than the prior year, but is above the effective rate of $0.663366. Of the proposed tax rate, $0.465650 will be applied to fund operations and maintenance in the General Fund and $0.216600 will be applied to fund tax-supported debt.
Based on City Council discussion at the last meeting, staff has included a proposed increase to the residential homestead exemption for disabled persons from $10,000 to $50,000 of assessed value. This increase would be effective for the 2016 tax year.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The FY 2016-17 Budget was submitted to the City Council on July 29, 2016. A workshop to present the details of the Budget to the City Council was conducted on August 4, 2016. The City Council also discussed the proposed budget during Work Sessions on August 9, August 16, August 23 and September 13. A Public Hearing on the Budget was held on September 13. In addition, two public hearings were held on the proposed tax rate on August 23 and September 13.
FISCAL INFORMATION
The proposed property tax rate will generate $62,506,725, of which $42,407,241 will be used to fund operations and maintenance in the General Fund, $19,725,992 will be used to fund tax-supported General Obligation and Certificates of Obligation debt, $367,265 will be generated for the Downtown Tax Increment Reinvestment Zone district, and $6,227 will be generated for the Westpark Tax Increment Reinvestment Zone district.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Organizational Excellence
Related Goal: 1.1 Manage financial resources in a responsible manner
EXHIBITS
1. Ordinance
Respectfully submitted:
Chuck Springer, 349-8260
Director of Finance