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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