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HomeMy WebLinkAboutO-2008-3102 Passed/establish Tax Rate for 2008-2009 FY; $.71 cents for hundred dollar valuation 14 REQUEST FOR CITY COUNCIL AGENDA ITEM- Appropriation Agenda Date Requested: September 22, 2008 Requested By: Michael Dolby, CPA c!)-- Department: Finance Report: Resolution: Ordinance: xx Exhibits: Effective Tax Rate Calculation Exhibits: Exhibits: Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: YES NO SUMMARY & RECOMMENDATION The Fiscal Year 2008-09 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 = .619 cents per hundred dollar valuation Debt Service = .091 cents per hundred dollar valuation ~ The tax rate of. 71 cents is the same rate that has been adopted for the last twenty years. The Effective Tax Rate = 0.710 cents per hundred dollar valuation, which is the maximum rate without advertisements and a public hearing. Action Required bv Council: cents per hundred dollar ~ldb ~ ORDINANCE NO. 08- 3102 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, 2008, and ending September 30, 2009, 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, 2009, 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 and nine tenths cents ($.619) on the one hundred dollars ($100.00) cash value thereof, estimated in lawful currency of the United States for the current expenses for the support, maintenance, and improvement of the City Government of said City of La Porte; and (2) An Ad Valorem Tax of and at the rate of nine and one tenth cents ($.091) 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~ day of .Stzf1r ' 2008. c~rjJ~ Alton Porter, Mayor APPROVED: U~r~ Clark T. Askins, Assistant City Attorney ~ ~ 2008 Property Tax Rates in City of La Porte This notice concerns 2008 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 prope~ + This year's adjusted tax base (after subtracting value of new prope~ = This year's effective tax rate 0.710 /$100 (Maximum rate unless unit publishes notices and holds hearings.) This year's rollback tax rate: Last year's adjusted operating taxes (after $ 11,875,966 subtracting taxes on lost property and adjusting for any transferred function, tax increment financing, state criminal justice mandate, and/or enhanced indigent health care expenditures) $ 11,988,680 $ 1,942,519 $ 13,931,199 $ 1,962,140,704 0.710 /$100 $ 13,805,197 $ 1,942,590,597 + 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 $ 1,942,590,597 0.611/$100 0.659/$100 0.091/$100 0.750/$100 Statement of IncreaselDecrease If City of La Porte adopts a2008 tax rate equal to the effective tax rate of $0.710 per $100 of value, taxes would increase compared t02007 taxes by $993,388. 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 Debit Service Fund Balance $13,386,498 $1,830,657 Schedule B - 2008 Debt Service The unit plans to pay the following amounts for longterrn 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 General Obligation $125,000 $55,781 $0 $180,781 Bonds 1998 Series General Obligation $150,000 $102,344 $0 $252,344 Bonds 2000 Series Certificate of $150,000 $88,050 $0 $238,050 Obligation Bonds 2000 Series General Obligation $270,000 $199,733 $0 $469,733 Bonds 2002 Series Certificate of $235,000 $247,200 $0 $482,200 Obligation Bonds 2004 Series Certificate of $65,000 $62,423 $0 $127,423 Obligation Bonds 2005 Series General Obligation $285,000 $277,323 $0 $562,323 Bonds 2005 Series General Obligation $45,000 $48,948 $0 $93,948 Bonds 2006 Series Certificate of $220,000 $244,448 $0 $464,448 Obligation Bonds 2006 Series Certificate of $150,000 $324,508 $0 $474,508 Obligation Bonds 2007 Series Total Required for2008 Debt Service $3,345,756 - Amount (if any) paid from funds listed in Schedule A $123,018 - Amount (if any) paid from other resources $1,300,934 - Excess collections last year $0 = Total to be paid from taxes in 2008 $1,921,804 + Amount added in anticipation that the unit will $0 collect only 100.00% of its taxes in 2008 = Total Debt Levy $1,921,804 This notice contains a summary of actual effective and rollback tax rate~ calculations. You can inspect a copy of the full calculations at604 W Fairrnont Parkway, La Porte, Texas 77571. Name of person preparing this notice: Katherine R Powell Title: Tax Manager Date Prepared: August 29, 2008 2008 Effective Tax Rate Worksheet Entity Name: City of La Porte Date: 09/4/2008 See pages 13 to 16 of the Texas Comptroller's 2008 Truth-in-Taxation Manual for an explanation of the effective tax rate 1. 2007 total taxable value. Enter the amount of2007 taxable value on the 2007 tax $1,950,907,645 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 fmancing(will deduct taxes in line 14). 2007 tax ceilings. Counties, Cities and Junior College Districts. Enter 2007 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 2007 or a prior year for homeowners age 65 or older or disabled, use this step. Preliminary 2007 adjusted taxable value. Subtract line 2 from line 1. $1,950,907,645 2007 total adopted tax rate. (/$100) 0.710 2007 taxable value lost because court appeals of ARB decisions reduced 2007 appraised value. A. Original 2007 ARB values: $16,062,650 B. 2007 values resulting from fmal court decisions: $14,529,390 c. 2007 value loss. Subtract B from A. $1,533,260 2007 taxable value, adjusted for court-ordered reductions. Add line 3 and line $1,952,440,905 5C. 2007 taxable value of property in territory the unit dearmexed after January 1, $0 2007. Enter the 2007 value of property in deannexed territory. 2007 taxable value lost because property first qualified for an exemption in 2008. 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, "goods-in-transit" exemptions or tax abatements. A. Absolute exemptions. Use 2007 market value: $82,422 B. Partial exemptions. 2008 exemption amount or2008 percentage $13,340,265 exemption times 2007 value: c. Value loss. Add A and B. $13,422,687 2007 taxable value lost because property first qualified for agricultural appraisal (l-d or 1-d-l), timber appraisal, recreationaVscenic appraisal or public access airport special appraisal in 2008. Use only those properties that first qualified in 2008; do not use properties that qualified in 2007. A. 2007 market value: $0 B. 2008 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. $13,422,687 2007 adjusted taxable value. Subtract line 10 from line 6. $1,939,018,218 Adjusted 2007 taxes. Multiply line 4 by line 11 and divide by $100. $13,767,029 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Truth In Taxation - May 2008 Page: 2008 Effective Tax Rate Worksheet Entity Name: City of La Porte 13. Date: 09/4/2008 14. Taxes refunded for years preceding tax year2007. Enter the amount of taxes $68,869 refunded during the last budget year for tax years preceding tax year2007. 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 2007. This line applies only to tax years preceding tax year2007. Taxes in tax increment fmancing (TIF) for tax year 2007. Enter the amount of $30,701 taxes paid into the tax increment fund for a reinvestment zone as agreed by the taxing unit If the unit has no 2008 captured appraised value in Line 16D, enter "0." Adjusted 2007 taxes with refunds. Add lines 12 and 13, subtract line 14. $13,805,197 Total 2008 taxable value on the 2008 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: $1,716,757,426 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 2008 captured appraised value $40,314,402 of property taxable by a taxing unit in a tax increment fmancing zone for which the 2008 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 2008 value. Add A and B, then subtract C and D. $1,676,443,024 Total value of properties under protest or not included on certified appraisal roll A. 2008 taxable value of properties under protest The chief appraiser $166,701,248 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 ofthe value if the taxpayer wins For each of the properties under protest, use the lowest of these values. Enter the total value. B. 2008 value of properties not under protest or included on certified $258,910,279 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. $425,611,527 2008 tax ceilings. Enter 2008 total taxable value of homesteads with tax $0 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 2007 or a prior year for homeowners age 65 or older or disabled, use this step. 15. 16. 17. 18. Truth In Taxation - May 2008 Page: 2 2008 Effective Tax Rate Worksheet Entity Name: City of La Porte 19. 20. Date: 09/4/2008 21. 2008 total taxable value. Add lines 16E and 17C. Subtract line 18. $2,102,054,551 Total 2008 taxable value of properties in territory annexed after January 1,2007. $8,369,271 Include both real and personal property. Enter the 2008 value of property in territory annexed Total 2008 taxable value of new improvements and new personal property $151,094,683 located in new improvements. "New" means the item was not on the appraisal roll in 2007. An improvement is a building structure, fixture or fence erected on or affixed to land A transportable structure erected on its owners 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, 2007 and be located in a new improvement New improvements do include property on which a tax abatement agreement has expired for 2008. 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 2008 taxable value. Add lines 20 and 21. $159,463,954 2008 adjusted taxable value. Subtract line 22 from line 19. $1,942,590,597 2008 effective tax rate. Divide line 15 by line 23 and multiply by $100. (/$100) 0.710 COUNTIES ONLY. Add together the effective tax rates for each type of tax the county levies. The total is the 2008 county effective tax rate. (/$100) 22. 23. 24. 25. A county, city or hospital district that adopted the additional sales tax in August or November2007 or in January or May 2008 must adjust its effective tax rate. The Additional Sales Tax Rate Worksheet on page 41 of the Texas Comptroller's 2008 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 2008 Page: 3 2008 Rollback Tax Rate Worksheet Entity Name: City of La Porte Date: 09/4/2008 See pages 17 to 21 of the Texas Comptroller's 2008 Truth-In- Taxation Manual for an explanation of the rollback tax rate 26. 2007 maintenance and operations (M&O) tax rate. (/$100) 27. 2007 adjusted taxable value. Enter the amount from line 11. 28. 2007 M&O taxes. 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 ~O expenses in 2007. Enter amount from full yeats sales tax revenue spent for M&O in 2007 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 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 If the 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." E. Taxes refunded for years preceding tax year2007: Enter the amount of M&O taxes refunded during the last budget year for tax years preceding tax year 2007. 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 year2007. This line applies only to tax years preceding tax year2007. F. Enhanced indigent health care expenditures: Enter the increased amount for the current yeats enhanced indigent health care expenditures above the preceding tax yeats enhanced indigent health care expenditures, less any state assistance. G. Taxes in tax increment financing (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 2008 captured appraised value in Line 16D, enter "0." H. Adjusted M&O Taxes. Add A, B, C, E and F. For unit with D, subtract if discontinuing function and add if receiving function Subtract G. 29. 2008 adjusted taxable value. Enter line 23 from the Effective Tax Rate Worksheet 30. 2008 effective maintenance and operations rate Divide line 28H by line 29 and multiply by $100. 31. 2008 rollback maintenance and operation rate. County, cities and others: Multiply line 30 by 1.08. (See lines 49 to 52 for additional rate for pollution control expenses.) (/$100) 0.611 $1,939,018,218 $11,847,401 $0 $0 $0 $59,266 $0 $30,701 $11,875,966 $1,942,590,597 0.611 0.659 Truth In Taxation - May 2008 1 Page: 2008 Rollback Tax Rate Worksheet Entity Name: City of La Porte Date: 09/4/2008 See pages 17 to 21 of the Texas Comptroller's 2008 Truth-In-Taxation Manual for an explanation of the rollback tax rate 32. Total 2008 debt to be paid with property taxes and additional sales tax revenue $1,921,804 "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 units 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 funds, subtract unencumbered fund amount used from total debt and list remainder Certified 2007 excess debt collections. Enter the amount certified by the $0 collector. Adjusted 2008 debt. Subtract line 33 from line 32. $1,921,804 Certified 2008 anticipated collection rate. Enter the rate certified by the 100.00% collector. If the rate is 100 percent or greater, enter 100 percent. 2008 debt adjusted for collections. Divide line 34 by line 35. $1,921,804 2008 total taxable value. Enter the amount on line 19. $2,102,054,551 2008 debt tax rate. Divide line 36 by line 37 and multiply by $100. (/$100) 0.091 2008 rollback tax rate. Add lines 31 and 38. (/$100) 0.750 COUNTIES ONLY. Add together the rollback tax rates for each type of tax the county levies. The total is the 2008 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 2008 Page: 2