Title
Consider public testimony regarding the 2017 Property Tax Rate for the City of Round Rock. (First Public Hearing)
Body
The Texas Tax Code requires the City Council to hold two public hearings on the proposed tax rate prior to adoption if the proposed rate exceeds the current effective tax rate.
The 2017 proposed tax rate of $0.43000 exceeds the effective tax rate of $0.40317. The increase in the proposed rate over the effective rate is to provide funding for debt payments & operations for voter-approved bond projects and rising costs.
The debt portion of the estimated proposed tax rate is fixed at $0.14214, the amount necessary to meet the City’s debt payment obligations. However, the M&O portion (General fund operational portion) of the rate can vary. The Council can adopt a final M&O tax rate that is lower than the proposed rate included in the published notices, but it cannot adopt a higher M&O rate without repeating the notice and hearing process and giving taxpayers the opportunity to hear and comment about the higher tax increase. The Rollback Rate for 2017 is $0.43494.
Summary of Proposed Tax Rate:
Maintenance & Operations portion $0.28786
Debt portion $0.14214
Proposed 2017 Tax Rate $0.43000
2016 Tax Rate $0.42500
2017 Effective Tax Rate $0.40317
2017 Rollback Tax Rate $0.43494
Proposed 2017 Tax Rate $0.43000
2017 Effective Tax Rate $0.40317
Increase over Effective 2.7 cents
Allocation of Increase Above Effective Rate
Debt payments for voter authorized bonds 1.2 cents
Operating costs for voter authorized bonds 0.9 cents
Operating costs to keep up with growth 0.6 cents
Total Proposed Increase 2.7 cents
This is the first public hearing of the proposed tax rate, fulfilling the requirements of the Texas Local Government Code, Section 102.006 providing for public comment. The first public hearing on the proposed tax rate and first reading of the ordinance to adopt the proposed tax rate is scheduled for August 24, 2017, the second public hearing on the proposed tax rate is scheduled for August 31, 2017, and the final adoption of the ordinance is scheduled for September 14, 2017.
Staff will provide an overview presentation for both this hearing and the FY2017-2018 Annual Budget.