Title
Consider an ordinance adopting the 2021 Property Tax Rate for the City of Round Rock. (Second Reading)
Body
This ordinance sets the ad valorem tax rate for the tax year 2021. The rate is based on net taxable property value at January 1, 2021, to assess taxes for collection during fiscal year 2021/22. The proposed tax rate for the 2021 tax year is $0.397000 per $100 valuation. The proposed rate will yield the tax revenues required to fund the 2021/22 Annual Budget as proposed to Council on July 22, 2021 plus a $0.1M budget for historic preservation, including a $300,000 designation from HOT fund balance.
The 2021 proposed tax rate of $0.397000 exceeds the no new revenue tax rate of $0.387441. The increase in the proposed rate over the no new revenue rate is to provide additional funding for roads. Under this proposal, total annual City taxes on the median taxable home value of $287,101 will be $1,140.
STATE LAW REQUIRES THAT THE MOTION TO ADOPT THE ORDINANCE BE STATED AS FOLLOWS:
“I move that the property tax rate be increased by the adoption of the tax rate of $0.397000, which is effectively a 2.5 percent increase in the tax rate.”
Summary of Proposed Tax Rate:
Maintenance & Operations (M&O) portion $0.264862
Debt Portion $0.132138
Proposed 2021 Tax Rate $0.397000
2020 Tax Rate $0.439000
2021 No New Revenue Tax Rate $0.387441
2021 Voter Approval Tax Rate $0.426786
State law further requires that a tax rate above the no new revenue tax rate requires a 60% approval by the governing body. For the City of Round Rock, that means five of seven council members must vote yes to approve this item.
If the ordinance sets a tax rate that will impose an amount of taxes to fund M&O expenditures of the taxing unit that exceeds the...
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