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HomeMy WebLinkAboutO-2007-3025 Passed 9 ---------- REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 24, 2007 Requested By: Michael Dolby, CPA ~ Appropriation Source of Funds: N/A Department: Finance Account Number: N/A Report: Resolution: Ordinance: xx Amount Budgeted: N/A Amount Requested: N/A Exhibits: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The Fiscal Year 2007-08 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 = .611 cents per hundred dollar valuation Debt Service = .099 cents per hundred dollar valuation The tax rate of. 71 cents is the same rate that has been adopted for the last nineteen years. The Effective Tax Rate = .742 cents per hundred dollar valuation, which is the maximum rate without advertisements and a public hearing. Action Required bv Council: Approve Ordinance establishing the tax rate for Fiscal Year 2007-08 at 71 cents per hundred dollar valuation. enda f//;t/b7 Date (I ORDINANCE NO. 07- 8o..t5 AN ORDINANCE LEVYING TAXES UPON TAXABLE PROPERTY LOCATED WITHIN AND SUBJECT TO TAXATION IN THE CITY OF LA PORTE, TEXAS; MAKING APPROPRIATIONS FOR SUPPORT, MAINTENANCE, AND IMPROVEMENT OF THE CITY GOVERNMENT OF SAID CITY OF LA PORTE; FINDING THAT ALL REQUIRED NOTICES HAVE BEEN PUBLISHED AND ALL REQUIRED HEARINGS HELD; CONTAINING A REPEALING CLAUSE; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE Section 1. That there is hereby levied for the fiscal year beginning October 1,2007, and ending September 30, 2008, on all real property situated and all personal property owned within the taxable limits of the said City of La Porte, on the first day of January, 2008, except so much as may be exempt under the constitution and laws of the United States, this State, and the City of La Porte, the following taxes: (1) An Ad Valorem Tax of and at the rate of sixty-one cents ($.611) on the one hundred dollars ($100.00) cash value thereof, estimated in lawful currency of the United States for the current expenses for the support, maintenance, and improvement of the City Government of said City of La Porte; and (2) An Ad Valorem Tax of and at the rate of nine cents ($.099) on the one hundred dollars ($100.00) cash value thereof, estimated in lawful currency of the United States, to pay current interest on and provide one year's sinking fund and to pay all of the Principal and Interest accruing on all outstanding general obligation bonds and certificates of obligation lawfully issued by the City of La Porte. That this provides the sum of total Ad Valorem tax at the rate of seventy-one cents ($.71) on the one hundred dollars ($100.00) cash value thereof, estimated in lawful currency of the United States. Section 2. All property upon which a rate of taxation is hereinabove levied shall be assessed on a ratio of one hundred percent (100%) of the estimated market value thereof. Section 3. That the sums hereinafter accruing and collected from the hereinabove taxes so levied be and the same are hereby appropriated for the support, maintenance, and improvement of the City Government of the City of La Porte. Section 4. The City Council officially finds, determines, recites and declares that all notices required by law have been published, and that a public hearing as required by law was duly called and held, and that all matters prerequisite to the establishment and levy of an ad valorem tax have been accomplished, all as required by the laws of the State of Texas, and the Home Rule Charter of the City of La Porte. Section 5. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, and it is hereby declared to be the intention of this City Council to have passed each section, sentence, phrase, or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase, or clause, or part thereof, may be declared invalid. Section 6. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict only. Section 7. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place, and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required. Section 8. This Ordinance shall be in effect from and after its passage and approval. PASSED AND APPROVED this the'd# day of ,5Pf2JPtiJ~ ,2007. RY OF LA PO~TEXAS ~~/~y~ Alton Porter, Mayor ATTEST: ~()jjj~~ Martha Gillett, City Secretary APPROVED: <<~ -r /1~~ Cfark . skins, Assistant City Attorney 2007 Property Tax Rates in City of La Porte This notice concerns 2007 property tax rates for City of La Porte. It presents information about three tax rates. Last year's tax rate is the actual rate the taxing unit used to determine property taxes last year. This year's effective tax rate would impose the same total taxes as last year if you compare propertiestaxed in both years. This year's rollback tax rate is the highest tax rate the taxing unit can set before taxpayers can start tax rollback procedures. In each case these rates are found by dividing the total amount of taxes by the tax base (the total value of taxable property) with adjustments as required by state law. The rates are given per $100 of property value. Last year's tax rate: Last year's operating taxes Last year's debt taxes Last year's total taxes Last year's tax base Last year's total tax rate This year's effective tax rate: Last year's adjusted taxes (after subtracting taxes on lost propert)) + This year's adjusted tax base (after subtracting value of new propert)) = This year's effective tax rate 0.742/$100 (Maximum rate unless unit publishes notices and holds hearings.) This year's rollback tax rate: Last year's adjusted operating taxes (after $ 11,114,854 subtracting taxes on lost property and adjusting for any transferred function, tax increment financing, and/or enhanced indigent health care expenditures) $ 11,220,415 $ 1,818,038 $ 13,038,453 $ 1,836,401,831 0.710/$100 $ 12,923,595 $ 1,741,180,058 + This year's adjusted tax base = This year's effective operating rate x 1.08 = this year's maximum operating rate + This year's debt rate = This year's total rollback rate $ 1,741,180,058 0.638/$100 0.689/$100 0.099/$100 0.788/$100 Statement of IncreaselDecrease If City of La Porte adopts a2007 tax rate equal to the effective tax rate of $0.742 per $100 of value, taxes would increase compared to 2006 taxes by $456,855. Schedule A - Unencumbered Fund Balances The following estimated balances will be left in the unils property tax accounts at the end of the fiscal year. These balances are not encumbered by a corresponding debt obligation. Type of Property Tax Fund General Fund Debt Service Fund Balance $11,785,384 $1,765,335 Schedule B - 2007 Debt Service The unit plans to pay the following amounts for longterm debts that are secured by property taxes. These amounts will be paid from property tax revenues(or additional sales tax revenues, if applicable). Principal or Interest to be Contract Payment Paid from Other Description to be Paid from Property Amounts Total of Debt Property Taxes Taxes to be Paid Payment 1998 General $125,000 $61,563 $0 $186,563 Obligation Bonds 2000 General $150,000 $112,844 $0 $262,844 Obligation Bonds 2000 Certificate of $150,000 $98,550 $0 $248,550 Obligation Bonds 2002 General $270,000 $211 ,208 $0 $481,208 Obligation Bonds 2004 Certificate of $220,000 $255,390 $0 $475,390 Obligation Bonds 2005 Certificate of $65,000 $64,470 $0 $129,470 Obligation Bonds 2005 General $275,000 $288,533 $0 $563,533 Obligation Bonds 2006 General $45,000 $50,579 $0 $95,579 Obligation Bonds 2006 Certificate of $215,000 $252,604 $0 $467,604 Obligation Bonds 2007 Certificate of $140,000 $426,539 $0 $566,539 Obligation Bonds Total Required for 2007 Debt Service $3,477,278 - Amount (if any) paid from funds listed in Schedule A $125,000 - Amount (if any) paid from other resources $1,540,952 - Excess collections last year $0 = Total to be paid from taxes in2007 $1,811,326 + Amount added in anticipation that the unit will $0 collect only 100.00% of its taxes in 2007 = Total Debt Levy $1,811,326 This notice contains a summary of actual effective and rollback tax ratd calculations. You can inspect a copy of the full calculations at604 W Fairmont Parkway, La Porte, Texas 77571. Name of person preparing this notice: Katherine R. Powell Title: Tax Manager Date Prepared: September 17, 2007 2007 Effective Tax Rate Worksheet Entity Name: City of La Porte Date: 09/17/2007 See pages 13 to 16 of the Texas Comptrollers 2007 Truth-in-Taxation Manual for an explanation of the effective tax rate 1. 2006 total taxable value. Enter the amount of2006 taxable value on the 2006 tax roll today. Include any adjustments since last yeats certification; exclude Section 25.25(d) one-third over-appraisal corrections from these adjustments. This total includes the taxable value of homesteads with tax ceilings(will deduct in line 2) and the captured value for tax increment financing(will deduct taxes in line 14). 2006 tax ceilings. Counties, Cities and Junior College Districts. Enter 2006 total taxable value of homesteads with tax ceilings These include the homesteads of homeowners age 65 or older or disabled. Other units enter "0" If your taxing units adopted the tax ceiling provision in 2006 for homeowners age 65 or older or disabled, use this step. Preliminary 2006 adjusted taxable value. Subtract line 2 from line 1. --~- 2006 total adopted tax rate. (/$100) 2006 taxable value lost because court appeals of ARB decisions reduced 2006 appraised value. A. Original 2006 ARB values: B. 2006 values resulting from fmal court decisions: C. 2006 value loss. Subtract B from A. 2006 taxable value, adjusted for court-ordered reductions. Add line 3 and line 5C. ".~~.'- 2006 taxable value of property in territory the unit deannexed after January 1, 2006. Enter the 2006 value of property in deannexed territory. 2006 taxable value lost because property first qualified for an exemption in 2007. Note that lowering the amount or percentage of an existing exemption does not create a new exemption or reduce taxable value If the taxing unit increased an original exemption, use the difference between the original exempted amount and the increased exempted amount Do not include value lost due to freeport exemptions or tax abatements A. Absolute exemptions. Use 2006 market value: B. Partial exemptions. 2007 exemption amount or 2007 percentage exemption times 2006 value: C. Value loss. Add A and B. ._.__n.__ ,-- 2006 taxable value lost because property first qualified for agricultural appraisal (l-d or I-d-l), timber appraisal, recreational/scenic appraisal or public access airport special appraisal in 2007. Use only those properties that first qualified in 2007; do not use properties that qualified in 2006. A. 2006 market value: B. 2007 productivity or special appraised value: C. Value loss. Subtract B from A. -~,~~-- .--.--- Total adjustments for lost value. Add lines 7, 8C and 9C. ~_._' .--- 2006 adjusted taxable value. Subtract line 10 from line 6. , ---~._-- .------ -----T I $1,792,016,839 ! +-- 2. $0 - -+- 3. 4. 5. -1 $1,792,016,839 i 0.710 ----t--- ! $4,445,125 $3,465,705 6. i +_ $979,420 i $1,792,996,259 7. I $0 ---i-- ! 8. $85,300 $11,778,469 $11,863,769 9. $0 $0 10. 11. 12. I Adjusted ~06 taxes. Multiply !ine 4_~y line 11~nd~ivide by $100. I I --I : $12,646,040 J' - ._---_..._--~._~-_._.- $0 ___L __"~11,863,769 $1,781,132,490 Page: Truth In Taxation--- May 2007 2007 Effective Tax Rate Worksheet Entity Name: City of La Porte 13. Taxes refunded for years preceding ta refunded during the last budget year fj Types of refunds include court decisi and Section 31.11 payment errors. D This line applies only to tax years pre 14. Taxes in tax increment financing(TIF taxes paid into the tax increment fund taxing unit If the unit has no 2007 ca "0." Date: 09/17/2007 17. Total value of properties under protes A. 2007 taxable value of pro certifies a list of propertie the district's value and the estimate of the value if th under protest, use the low B. 2007 value of properties n p appraisal roll. The chief appraiser gives taxing units a list of those taxable properties that the chief appraiser knows about but are not included at appraisal roll certification. These properties also are not on the list of properties that are still under protest On this list of properties, the chief appraiser includes the market value, appraised value and exemptions for the preceding year and a reasonable estimate of the market value, appraised value and exemptions for the current year. Use the lower market, appraised or taxable value (as appropriate). Enter the total value. C. Total value under protest or not certified Add A and B. 2007 tax ceilings. Enter 2007 total taxable value of homesteads with tax ceilings. These include the homesteads of homeowners age65 or older or disabled. Other units enter "0." If your taxing units adopted the tax ceiling provision in 2006 for homeowne!"s age 65 or older or disabled, use this step. x year 2006. Enter the amount of taxes $308,180 or tax years preceding tax year2006. ons, Section 25.25(b) and (c) corrections o not include refunds for tax year2006. ceding tax year2006. .. ) for tax year 2006. Enter the amount of $30,625 for a reinvestment zone as agreed by the ptured appraised value in Line 16D, enter dd lines 12 and 13, subtract line 14. I $12,923,595 certified appraisal roll today. This value I ludes the total taxable value of homesteads 8). These homesteads includes ed. $1,633,072,289 rolling stock values certified by the $0 I on: Deduct the value of property exempted I $0 r the first time as pollution control property orney's advice): Deduct the 2007 captured appraised value $11,711,349 axing unit in a tax increment financing zone will be deposited into the tax increment new property value that will be included in and B, then subtract C and D. $1,621,360,940 t or not included on certified appraisal roll perties under protest The chief appraiser $123,510,335 s still under ARB protest The list shows taxpayer's claimed value, if any or an e taxpayer wins For each of the properties est of these values. Enter the total value. I ot under rotest or included on certified $73903378 15. Adjusted 2006 taxes with refunds. A 16. Total 2007 taxable value on the 2007 includes only certified values and inc with tax ceilings (will deduct in line 1 homeowners age 65 or older or disabl A. Certified values only: B. Counties: Include railroad Comptroller's office: c. Pollution control exempti . for the current tax year fo (use this line based on art D. Tax increment financing of property taxable by at for which the 2007 taxes fund. Do not include any line 21 below. E. Total 2007 value. Add A 18. i $197,413,713 ~-~~---~~- I $0 _ ____J Truth In Taxation -- May 2007 Page: 2 2007 Effective Tax Rate Worksheet Entity Name: City of La Porte 19. 20. 21. 2007 total taxable value. Add lines 16E and 17C. S Total 2007 taxable value of properties in territory an Include both real and personal property. Enter the 2 territory annexed Total 2007 taxable value of new improvements and located in new improvements. "New" means the ite roll in 2006. An improvement is a building structur or affixed to land. A transportable structure erected included unless it is held for sale or is there only tern existing improvements may be included if the apprai determined. New personal property in a new improv brought into the unit after January 1, 2006 and be loc New improvements do include property on which at expired for 2007. New improvements do not includ for the first time, omitted property that is back assess on existing property. ---,~- Total adjustments to the 2007 taxable value. Add lin 2007 adjusted taxable value. Subtract line 22 from Ii 2007 effective tax rate. Divide line 15 by line 23 an COUNTIES ONL Y. Add together the effective tax r county levies. The total is the 2007 county effectiv~ Date: 09/17/2007 es ., act line 18. $1,818,774,653 1 ed after January 1,2006. $2,777,802 I value of property in I personal property $74,816,793 as not on the appraisal lxture or fence erected on its owner's land is also rarily. New additions to value can be ent must have been d in a new improvement abatement agreement has ineral interests produced and increased appraisals ---.'.-- -- 20 and 21. $77,594,595 I -- 19. $1,741,180,058 --,-- ultiply by $100. (/$100) 0.742 s for each type of tax the !~te. (/$100) -.~ 22. 23. 24. 25. ubtr nex 007 new mw e, fi on po sed em ate ax em ed ne dm ate tax A county, city or hospital district that adopted the additional sales tax in August or November2006 or in January or May 2007 must adjust its effective tax rate. The Additional Sales Tax Rate Worksheet on page 41 of the Texas Comptroller's 2007 Truth-in-Taxation Manual sets out this adjustment Do not forget to complete the Additional Sales Tax Rate Worksheet if the taxing unit adopted the additional sales tax on these dates. Truth In Taxation -. May 2007 Page: 3 2007 Rollback Tax Rate Worksheet Entity Name: City of La Porte Date: 09/17/2007 See pages 17 to 21 of the Texas Comptroller's 2007 Truth-In-Taxation Manual for an explanation ofthe rollback tax rate 26. 2006 maintenance and operations (M&O) tax rate. (/$100) 27.12006 adjusted taxable value. Enter the amount from line 11. 28. 2006 M&O taxes. I I I I I I I I I I I I I I I H. Adjusted M&O Taxes. Add A, B, C, E and F. For unit with D, r subtract if discontinuing function and add if receiving function ~ Subtract G.~__ I 2007 adjusted taxable value. 29. A. Multiply line 26 by line 27 and divide by $100. B. Cities, counties and hospital districts with additional sales tax: Amount of additional sales tax collected and spent on l'McO expenses in 2006. Enter amount from full yeats sales tax revenue spent for M&O in 2006 fiscal year, ifany. Other units, enter "0." Counties exclude any amount that was spent for economic development grants from the amount of sales tax spent C. Counties: Enter the amount for the state criminal justice mandate If second or later year, the amount is for increased cost above last year's amount. Other units, enter "0." D. Transferring function: If discontinuing all of a departmen~ function or activity and transferring it to another unit by written contract enter the amount spent by the unit discontinuing the function in the 12 months preceding the month of this calculation Ifthe unit did not operate this function for this 12-month period, use the amount spent in the last full fiscal year in which the unit operated the function. The unit discontinuing the function will subtract this amount in H below. The unit receiving the function will add this amount in H below. Other units, enter "0." 0.611 $1,781,132,490 $10,882,719 $0 $0 $0 $262,760 $0 $30,625 $11,114,854 A. Enter line 23 from the Effective Tax Rate Worksheet 30. 2007 effective maintenance and operations rate Divide line 28H by line 29 and multiply by $100. -_.,.,----.- 31. 2007 rollback maintenance and operation rate. County, cities and others: n I 0.689 I Multiply line 30 by 1.08. (See lines 49 to 52 for additional rate for pollution L control expenses.) (/$100) __~~__ _~__ ______ ___ E. Taxes refunded for years preceding tax year2006: Enter the amount of M&O taxes refunded during the last budget year for tax years preceding tax year 2006. Types of refunds include court decisions, Section 25 .25(b) and (c) corrections and Section 31.11 payment errors. Do not include refunds for tax year2006. This line applies only to tax years preceding tax year2006. $1,741,180,058 0.638 -- F. Enhanced indigent health care expenditures: Enter the increased amount for the current years enhanced indigent health care expenditures above the preceding tax yeats enhanced indigent health care expenditures, less any state assistance. G. Taxes in tax increment fmancing(TIF): Enter the amount of taxes paid into the tax increment fund for a reinvestment zone as agreed by the taxing unit If the unit has no 2007 captured appraised value in Line 16D, enter "0." Truth In Taxation -- May 2007 Page: 2007 Rollback Tax Rate Worksheet Entity Name: City of La Porte Date: 09/17/2007 See pages 17 to 21 of the Texas Comptroller's 2007 Truth-In~Taxation Manual for an explanation of the rollback tax rate 33. Total 2007 dehtto be paid with pmperty taxes and additional sales tax ~n~ - -I" $1,811,326 "Debt" means the interest and principal that will be paid on debts that (1) are paid by property taxes, (2) are secured by property taxes, I (3) are "heduled for payment over a period longer than one year and I (4) are not classified in the unifs budget as M&O expenses. Debt also includes contractual payments to other taxing units that have incurred debts on behalf of this taxing uni~ if those debts meet the four conditions above. Include only amounts that will be paid from property tax revenue(or additional sales tax revenue). Do not include appraisal district budget payments. List the debt in "Schedule B: Debt Service." If using unencumbered fund~ subtract unencumbered fund amount used from total debt and list remainder r$O- "~~--_. Certified 2006 excess debt collections. Enter the amount certified by the collector. i ---- r Adjusted 2007 debt. Subtract line 33 from line 32. $1,811,326 Certified 2007 anticipated collection rate. Enter the rate certified by the 100.00% collector. If the rate is 100 percent or greater, enter 100 percent. 2007 debt adjusted for collections. Divide line 34 by line 35. $1,811,326 2007 total taxable value. Enter the amount on line 19. $1,818,774,653 2007 debt tax rate. Divide line 36 by line 37 and multiply by $100. (/$100) 0.099 --- -- 2007 rollback tax rate. Add lines 31 and 38. (/$100) 0.788 COUNTIES ONLY. Add together the rollback tax rates for each type of tax the I county levies: The total is the 2007 county rollback tax rate. (/$100) i -1-. 32. 34. 35. 36. 37. 38. 39. 40. A taxing unit that adopted the additional sales tax must complete the lines for the Additional Sales Tax Rate A taxing unit seeking additional rollback protection for pollution control expenses completes the Additional Rollback Protection for Pollution Control. Truth In Taxation May 2007 Page: 2