09-30-19 Special Meeting of the La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 30, 2019 Requested By: Michael G. Dolby, CPA Department: Finance ' Report Ir' Resolution 4Ordinance Exhibits: Notice of public hearing Ordinance Effective tax rate calculation Appropriation Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: Yes No SUMMARY The Texas Tax Code Sec. 26.05(b) reads that "For a taxing unit other than a school district, the vote on the ordinance, resolution, or order setting a tax rate that exceeds the effective tax rate must be a record vote, and at least 60 percent of the members of the governing body must vote in favor of the ordinance, resolution, or order." and that "A motion to adopt an ordinance, resolution, or order setting a tax rate that exceeds the effective tax rate must be made in the following form: 1 move that the property tax rate be increased by the adoption of a tax rate of $0.71, which is effectively a 3.65 percent increase in the tax rate." The Fiscal Year 2019-20 Budget was built around a tax rate of .71 cents per hundred dollar valuation. A breakdown of the tax rate is as follows: General Fund = .605 cents per hundred dollar valuation Debt Service = .105 cents per hundred dollar valuation The tax rate of .71 cents is the same rate that has been adopted for the last thirty-one years. The Effective Tax Rate = 0.685 cents per hundred dollar valuation. The effective tax rate is the total tax rate needed to raise the same amount of property tax revenue for City of La Porte from the same properties in both the 2018 tax year and the 2019 tax year. RECOMMENDED MOTION