HomeMy WebLinkAboutO-2006-2919 Passed
19
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: September 11, 2006
Appropriation
Requested By: Michael Dolby
Source of Funds: N/A
Department: Finance
Account Number: N/A
Report:
Resolution:
Ordinance:
xx
Amount Budgeted: N/A
Exhibits:
Amount Requested: N/A
Exhibits:
Budgeted Item: YES NO
Exhibits:
SUMMARY & RECOMMENDATION
The Fiscal Year 2006-07 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 seventeen years.
The Effective Tax Rate = .722 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 2006-07 at 71 cents per hundred dollar
valuation.
Approved for City Council Al!enda
Cj' - f;-- D fp
Date
ORDINANCE NO. OS-m
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, 2006, and ending September
30,2007, 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, 2007, 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 I Iii- day of SefJ1
,2006.
~~?FLAPORTE,TEXAS
~t~~
Alton Porter, Mayor
ATTEST:
~tUd~ 4rd
Mart a GIllett, City Secretary
~
T: t1~ ~r
nox AskIns, City Attorney ~ _
/C.1't#-r {;#~ ~
2006 Property Tax Rates in City of La Porte
This notice concerns 2006 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 Jast 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 oftaxes 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 0.722 /$100
{Maximum rate unless unit publishes notices and holds hearings.}
This year's rollback tax rate:
Last year's adjusted operating taxes (after $ 10,430,731
subtracting taxes on lost property and adjusting
for any transferred function, tax increment
financing, and/or enhanced indigent health care
expenditures)
+ 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
$ 10,501,578
$ 1,661,750
$ 12,163,328
$ 1,713,144,789
0.710/$100
$ 12,083,981
$ 1,672,759,042
$ 1,672,759,042
0.624/$100
0.673 /$100
0.099/$100
0.772 /$100
Statement ofIncrease!Decrease
If City of La Porte adopts a2006 tax rate equal to the effective tax rate of SlJ.722 per
$100 ofvalue, taxes would increase compared t02005 taxes by $183,573.
Schedule A - Unencumbered Fund Balances
The following estimated balances will be left in the unit's property tax accounts at the
end ofthe fiscal year. These balances are not encumbered by a corresponding debt
obligation.
Type of Property Tax Fund
Genreal Fund
Debt Service Fund
Balance
Schedule B - 2006 Debt Service
$9,634,199
$1,702,319
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 $68,594 $0 $193,594
Obligation Bonds
2000 General $150,000 $123,344 $0 $273,344
Obligation Bonds
2000 Certificate of $150,000 $109,050 $0 $259,050
Obligation Bonds
2002 General $270,000 $222,683 $0 $492,683
Obligation Bonds
2004 Certificate of $210,000 $263,130 $0 $473,130
Obligation Bonds
2005 Certificate of $65,000 $66,453 $0 $131,453
Obligation Bonds
2005 General $265,000 $299,333 $0 $564,333
Obligation Bonds
2006 Certificate of $0 $342,180 $0 $342,180
Obligation Bonds
2006 General $0 $68,527 $0 $68,527
Obligation Bonds
Total Required for 2006 Debt Service $2,798,292
- Amount (if any) paid from funds listed in Schedule A $225,000
- Amount (if any) paid from other resources $867,848
- Excess collections last year $0
= Total to be paid from taxes in2006 $1 ,705,444
+ Amount added in anticipation that the unit will $0
collect only 100.00% of its taxes in 2006
= Total Debt Levy $1, 705,444
This notice contains a summary of actual effective and rollback tax rates' calculations
You can inspect a copy of the full calculations at604 W Fairmont Parkway, La Porte,
TX 77571.
Name of person preparing this notice: Katherine R. Powell, RTA
Title: Tax Manager
Date Prepared: September 5, 2006
2006 Effective Tax Rate Worksheet
Entity Name: City of La Porte
Date: 09/5/2006
See pages 13 to 16 of the Texas Comptroller's 2006 Truth-in-Taxation Manual for an explanation of the effective tax rate
1.
2005 total taxable value. Enter the amount of2005 taxable value on the 2005 tax $1,695,166,598
roll today. Include any adjustments since last year's 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 fmancing(will deduct taxes in line 14).
2005 tax ceilings. Counties, Cities and Junior College Districts. Enter 2005 total $0
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 2005 for homeowners age 65 or older
or disabled, use this step.
Preliminary 2005 adjusted taxable value. Subtract line 2 from line 1. $1,695,166,598
2005 total adopted tax rate. (/$100) 0.710
2005 taxable value lost because court appeals of ARB decisions reduced 2005
appraised value.
A. Original 2005 ARB values: $28,260,000
B. 2005 values resulting from fmal court decisions: $19,950,000
C. 2005 value loss. Subtract B from A. $8,310,000
2005 taxable value, adjusted for court-ordered reductions. Add line 3 and line 5 $1,703,476,598
C.
---
2005 taxable value of property in territory the unit deannexed after January 1, $0
2005. Enter the 2005 value of property in deannexed territory.
2005 taxable value lost because property first qualified for an exemption in2006
. 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 2005 market value: $181,274
B. Partial exemptions. 2006 exemption amount or 2006 percentage $9,682,545
exemption times 2005 value:
C. Value loss. Add A and B. $9,863,819
2005 taxable value lost because property first qualified for agricultural appraisal
(l-d or I-d- I), timber appraisal, recreationaVscenic appraisal or public access
airport special appraisal in 2006. Use only those properties that first qualified in
2006; do not use properties that qualified in 2005.
A. 2005 market value: $0
B. 2006 productivity or special appraised value: $0
C. Value loss. Subtract B from A. $0
Total adjustments for lost value. Add lines 7, 8C and 9C. $9,863,819
2005 adjusted taxable value. Subtract line 10 from line 6. $1,693,612,779
Adjusted 2005 taxes. Multiply line 4 by line 11 and divide by $100. $12,024,650
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Truth In Taxation - May 2006
Page:
2006 Effective Tax Rate Worksheet
18.
Taxes refunded for years preceding tax year2005. Enter the amount oftaxes $68,645
refunded during the last budget year for tax years preceding tax year2005.
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 year 2005.
This line applies only to tax years preceding tax year2005.
Taxes in tax increment fmancing (TIF) for tax year 2005. Enter the amount of $9,314
taxes paid into the tax increment fund for a reinvestment zone as agreed by the
taxing unit If the unit has no 2006 captured appraised value in Line 16D, enter
"0."
Adjusted 2005 taxes with refunds. Add lines 12 and 13, subtract line 14. $12,083,981
Total 2006 taxable value on the 2006 certified appraisal roll today. This value
includes only certified values and includes the total taxable value of homesteads
with tax ceilings (will deduct in line 18). These homesteads includes
homeowners age 65 or older or disabled.
A. Certified values only: $1,546,206,563
I
B. Counties: Include railroad rolling stock values certified by the $0
Comptroller's office:
C. Pollution control exemption: Deduct the value of property exempted $0
for the current tax year for the first time as pollution control property
(use this line based on attorney's advice):
D. Tax increment fmancing: Deduct the 2006 captured appraised value $1,494,207
of property taxable by a taxing unit in a tax increment fmancing zone
for which the 2006 taxes will be deposited into the tax increment
fund. Do not include any new property value that will be included in
line 21 below.
E. Total 2006 value. Add A and B, then subtract C and D. $1,544,712,356
Total value of properties under protest or not included on certified appraisal roll
A. 2006 taxable value of properties under protest The chief appraiser $86,176,735
certifies a list of properties still under ARB protest The list shows
the district's value and the taxpayer's claimed value, if any or an
estimate of the value if the taxpayer wins. For each ofthe properties
under protest, use the lowest of these values. Enter the total value.
B. 2006 value of properties not under protest or included on certified $79,207,968
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. $165,384,703
2006 tax ceilings. Enter 2006 total taxable value of homesteads with tax ceilings $0
. 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
2005 for homeowners age 65 or older or disabled, use this step.
Date: 09/5/2006
Entity Name: City of La Porte
13.
14.
15.
16.
17.
Truth In Taxation - May 2006
Page:
2
2006 Effective Tax Rate Worksheet
Entity Name: City of La Porte
19.
20.
Date: 09/5/2006
21.
2006 total taxable value. Add lines 16E and 17C. Subtract line 18. $1,710,097,059
Total 2006 taxable value of properties in territory annexed after January 1,2005. $5,757,297
Include both real and personal property. Enter the 2006 value of property in
territory annexed
Tota12006 taxable value of new improvements and new personal property $31,580,720
located in new improvements. "New" means the item was not on the appraisal
roll in 2005. An improvement is a building, structure, fixture or fence erected on
or affIxed to land A transportable structure erected on its owner's land is also
included unless it is held for sale or is there only temporarily. New additions to
existing improvements may be included if the appraised value can be determined
. New personal property in a new improvement must have been brought into the
unit after January 1, 2005 and be located in a new improvement New
improvements do include property on which a tax abatement agreement has
expired for 2006. New improvements do not include mineral interests produced
for the first time, omitted property that is back assessed and increased appraisals
on existing property. --
Total adjustments to the 2006 taxable value. Add lines 20 and 21. $37,338,017
2006 adjusted taxable value. Subtract line 22 from line 19. $1,672,759,042
2006 effective tax rate. Divide line 15 by line 23 and multiply by $100. (/$100) 0.722
COUNTIES ONL Y. Add together the effective tax rates for each type of tax the
county levies. The total is the 2006 county effective tax rate. (/$100)
22.
23.
24.
25.
A county, city or hospital district that adopted the additional sales tax in August or November2005 or in January or May 2006 must
adjust its effective tax rate. The Additional Sales Tax Rate Worksheet on page 41 of the Texas Comptroller's 2006 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 2006
Page:
3
2006 Rollback Tax Rate Worksheet
Entity Name: City of La Porte Date: 09/5/2006
See pages 17 to 21 of the Texas Comptroller's 2006 Truth-In-Taxation Manual for an explanation of the rollback tax rate.
30.
. 2005 maintenance and operations (M&O) tax rate. (/$100) 0.613
2005 adjusted taxable value. Enter the amount from line 11. $1,693,612,779
2005 M&O taxes.
A. Multiply line 26 by line 27 and divide by $100. $10,381,846
B. Cities, counties and hospital districts with additional sales tax: $0
Amount of additional sales tax collected and spent on M&O
expenses in 2005. Enter amount from full year's sales tax revenue
spent for M&O in 2005 fiscal year, if any. 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 $0
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 department, function $0
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 If the unit did
not operate this function for this 12-month period, use the amount I
spent in the last full fiscal year in which the unit operated the I
, 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."
E. Taxes refunded for years preceding tax year2005: Enter the amount $58,199
of M&O taxes refunded during the last budget year for tax years
preceding tax year 2005. Types of refunds include court decisions,
Section 25.25(b) and (c) corrections and Section 31.11 payment I
errors. Do not include refunds for tax year2005. This line applies I
only to tax years preceding tax year2005.
F. Enhanced indigent health care expenditures: Enter the increased $0
amount for the current year's enhanced indigent health care
expenditures above the preceding tax year's enhanced indigent health
care expenditures, less any state assistance.
G. Taxes in tax increment fmancing(TIF): Enter the amount oftaxes $9,314
paid into the tax increment fund for a reinvestment zone as agreed by
the taxing unit If the unit has no 2006 captured appraised value in
Line 16D, enter "0."
H. Adjusted M&O Taxes. Add A, B, C, E and F. For unit with D, $10,430,731
subtract if discontinuing function and add if receiving function
Subtract G.
2006 adjusted taxable value.
A. Enter line 23 from the Effective Tax Rate Worksheet $1,672,759,042
2006 effective maintenance and operations rate. Divide line 28H by line 29 and 0.624
multiply by $100.
2006 rollback maintenance and operation rate. County, cities and others: 0.673
Multiply line 30 by 1.08. (See lines 49 to 52 for additional rate for pollution
control expenses.) (/$100)
26
27
28
29.
31.
Truth In Taxation - May 2006
Page:
2006 Rollback Tax Rate Worksheet
Entity Name: City of La Porte Date: 09/5/2006
See pages 17 to 21 of the Texas Comptroller's 2006 Truth-In-Taxation Manual for an explanation of the rollback tax rate
32
Total 2006 debt to be paid with property taxes and additional sales tax revenue $1,705,444
"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,
(3) are scheduled for payment over a period longer than one year and
(4) are not classified in the unit's budget as M&O expenses.
Debt also includes contractual payments to other taxing units that have incurred
debts on behalf of this taxing unit, 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 funds, subtract
unencumbered fund amount used from total debt and list remainder
Certified 2005 excess debt collections. Enter the amount certified by the $0
collector.
Adjusted 2006 debt. Subtract line 33 from line 32. $1,705,444
Certified 2006 anticipated collection rate. Enter the rate certified by the 100.00%
collector. If the rate is 100 percent or greater, enter 100 percent.
2006 debt adjusted for collections. Divide line 34 by line 35. $1,705,444
2006 total taxable value. Enter the amount on line 19. $1,710,097,059
2006 debt tax rate. Divide line 36 by line 37 and multiply by $100. (/$100) 0.099
2006 rollback tax rate. Add lines 31 and 38. (/$100) 0.772
COUNTIES ONLY. Add together the rollback tax rates for each type of tax the
county levies. The total is the 2006 county rollback tax rate. (/$100) ..-
33.
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 2006
Page:
2