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Home My WebLink AboutO-2009-3182 establish Tax Rate for 2009-2010 FY; $.71 cents for hundred dollar valuation 13 . REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 21, 2009 Aoorooriation Requested By: Michael Dolby, CPA Source of Funds: N/ A Department: Finance Account Number: N/A Report: Resolution: Ordinance: xx Amount Budgeted: N/A Exhibits: Ordinance Amount Requested: N/ A Exhibits: Effective Tax Rate Calculation Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The Fiscal Year 2009-10 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 = .601 cents per hundred dollar valuation Debt Service = .109 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 = 0.737 cents per hundred dollar valuation, which is the maximum rate without advertisements and a public hearing. Action Reauired bv Council: Approve Ordinance establishing the tax rate for Fiscal Year 2009-10 at 71 cents per hundred dollar valuation. fJt/o? Date ' { ORDINANCE NO. 09-~.z 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, 2009, and ending September 30, 2010, 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, 2010, 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 and one tenth cents ($.601) on the one hundred dollars ($100.00) cash value thereof, estimated in lawful currency of the United States for the current expenses for the support, maintenance, and improvement of the City Government of said City of La Porte; and (2) An Ad Valorem Tax of and at the rate of ten and nine tenths cents ($.109) 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. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S RATE. 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 21st day of September, 2009. Q1TkWld MartHa Gillett, City Secretary A~ /f./- ~ r/~ C ark T. AskinS, Assistant City Attorney 2009 Property Tax Rates in City of La Porte This notice concerns 2009 property tax rates for City of La Porte It presents information about three tax rates Last years tax rate is the actual rate the taxmg unit used to determme property taxes last year. This years effective tax rate would impose the same total taxes as last year if you compare properties taxed in both years. This years 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 val ue 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 property) 7 This years adjusted tax base (after subtracting value of new property) = This years effective tax rate 0.737/$100 (Maximum rate unless unit publishes notices and holds hearings) This year's rollback tax rate: Last year's adjusted operating taxes (after $13,127,295 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) $13,716,980 $2,0]6,551 $15,733,531 $2,215,990,282 0.710/$100 $15,19],363 $2,060,287,540 7 This year's adjusted tax base = This years effective operating rate x 1.08 = this year's maximum operating rate + This year's debt rate = This year's total rollback rate $2,060,287,540 0637/$100 0687/$100 0.109/$100 0.796/$100 Statement of Increase/Decrease If City of La Porte adopts a 2009 tax rate equal to the effective tax rate of $0.737 per $100 of value, taxes would increase compared to 2008 taxes by $95,747 Schedule A - Unencumbered Fund Balances The following estimated balances will be left in the unit's 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 -------- - --- $10,884,924 $1,906,978 Schedule B - 2009 Debt Service The unit plans to pay the following amounts for long-term 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 Otber Description to be Paid from Property Amounts Total of Debt __ !..opertL~xes Taxes to be Paid _Pay~eD! 1998 General $125,000 $50,469 $0 $175,469 Obligation Bonds 2000 General $150,000 $93,194 $0 $243,194 Obligation Bonds 2000 Certificate of $150,000 $78,900 $0 $228,900 Obligation Bonds 2002 General $270,000 $188,258 $0 $458,258 Obligation Bonds 2004 Certificate of $245,000 $238,560 $0 $483,560 Obligation Bonds 2005 Certificate of $70,000 $60,228 $0 $130,228 Obligation Bonds 2005 General $300,000 $265,633 $0 $565,633 Obligation Bonds 2006 General $50,000 $47,226 $0 $97,226 Obligation Bonds 2006 Certificate of $235,000 $235,623 $0 $470,623 Obligation Bonds 2007 Certificate of $160,000 $318,308 $0 $478,308 Obligation Bonds 2009 Certificate of $235,000 $510,359 $0 $745,359 Obligation Bonds Total Reqnired for 2009 Debt Service $4,076,755 - Amount (if any) paid from funds listed in Schedule A $0 Amount (if any) paid from other resources $1,735,201 - Excess collections last year $0 = Total to be paid from taxes in 2009 $2,34] ,554 + Amount added in anticipation that the unit will $0 collect only 100.00% of its taxes in 2009 Total Debt Levy $2,341,554 This notice contains a summary of actual effective and rollback tax rates' calculations. You can inspect a copy of the full calculations at 604 W Fairmont Parkway, La Porte, TX 77571. Name of person preparing this notice: Katherine R Powell Title: Tax Manager Date Prepared: September 3, 2009