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Home My WebLink AboutO-2010-3272 establishing Tax Rate/2010-2011 FY at $.71 cents for hundred valuation 12 ._--,.__..--'~'_. ..... ..... -.- .f' REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 13,2010 Appropriation Requested By: Michael G. 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 2010-11 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 = .605 cents per hundred dollar valuation Debt Service = .105 cents per hundred dollar valuation The tax rate of. 71 cents is the same rate that has been adopted for the last twenty-two years. The Effective Tax Rate = 0.758 cents per hundred dollar valuation, which is the maximum rate without advertisements and a public hearing. Action Required bv Council: dinance establishing the tax rate for Fiscal Year 2010-11 at 71 cents per hundred dollar ~/~ Date ORDINANCE NO. 10- 3~ 7fA 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, 2010, and ending September 30, 2011, 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 five tenths cents ($.605) on the one hundred dollars ($100.00) cash value thereof, estimated in lawful currency of the United States for the current expenses for the support, maintenance, and improvement of the City Government of said City of La Porte; and (2) An Ad Valorem Tax of and at the rate often and five tenths cents ($.105) 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 13th day of September, 2010. TE,TEXAS L ATTEST: Y1(MtIJU. ~ Martlla Gillett, City Secretary APij;:1D: ~ T tf-~ Clark T. Askins, Assistant City Attorney 2010 Property Tax Rates in City of La Porte This notice concerns 2010 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 properties taxed 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 Tbis year's effective tax rate: Last year's adjusted taxes (after subtracting taxes on lost property) 7 This year's adjusted tax base (after subtracting value of new property) = This year's effective tax rate 0.758/$100 (Maximum rate unless unit publishes notices and holds hearings.) Tbis year's rollback tax rate: Last year's adjusted operating taxes (after 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) 7 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 $14,149,185 $2,566,158 $16,715,343 $2,354,273,662 0.710/$100 $16,017,433 $2,111,573,113 $13,471,963 $2,111,573,113 0.638 /$100 0.689/$100 o 105 /$100 0.794/$100 Statement of IncreaselDecrease If City of La Porte adopts a 2010 tax rate equal to the effective tax rate of $0.758 per $100 of value, taxes would decrease compared to 2009 taxes by $488,118. Scbedule 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 Deht Service Fund Balance -..-----..-" $11,002,286 $2,981,268 Schedule B - 2010 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, ifapplicable). Principal or Interest to be Contract Payment Paid from Description to be Paid from Property ~_ ofDc_bt__!,~oJ'erty Ta",,"_ T-",xes __ Other Amounts to be Paid --~----- General Obligation $270,000 $176,783 $0 Bonds 2002 Series Certificate of $260,000 $229,470 $0 Obligation Bonds 2004 Series General Obligation $310,000 $253,239 $0 Bonds 2005 Series Certficate of $75,000 $57,798 $0 Obligation Bonds 2005 Series General Obligation $50,000 $45,414 $0 Bonds 2006 Series Certificate of $240,000 $225,823 $0 Obligation Bonds 2006 Series Certificate of $170,000 $311,708 $0 Obligation Bonds 2007 Series General Obligation $365,000 $166,262 $0 Refunding Bonds 20 \0 Series Certificate of $0 $310,079 $0 Obligation Bonds 2010 Series Total Required for 2010 Debt Service - Amount (if any) paid from funds listed in Schedule A - Amount (if any) paid from other resources - Excess collections last year = Total to be paid from taxes in 2010 + Amount added in anticipation that the unit will collect only 100.00% of its taxes in 2010 = Total Debt Levy This notice contains a summary of actual effective and rollback tax rates' calculations. You can inspect a copy of the full calculations at City of La Porte City Hall 604 W Fairmont Parkway, La Porte, Texas 7757l. Name of person preparing this notice: Katherine R. Powell Title: Tax Manager Date Prepared: September 2, 2010 Total Payment --~.._--- $446,783 $489,470 $563,239 $132,798 $95,414 $465,823 $481,708 $531,262 $310,079 $3,516,574 $0 $1,262,168 $0 $2,254,406 $0 $2,254,406