Agenda

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Item # 1.

Council Meeting - FY 2021 Budget

Meeting Date:	09/01/2020
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Continuously improve processes and policies to include the voice of the customer and ensure the policies are easily accessible

AGENDA CAPTION:

Hold a Public Hearing, Present, and Discuss the Town of Addison's Proposed Property Tax Rate for the Fiscal Year Commencing October 1, 2020 and Ending September 30, 2021.

BACKGROUND:

This is the first of two public hearings regarding the proposed tax rate for the Town of Addison. The second public hearing will be held on September 8, 2020, at a meeting that commences at 7:30 pm at the Addison Treehouse.

The proposed property tax rate for the Fiscal Year (FY) 2021 is $0.616878 per $100 of valuation. The proposed rate is made of the following components:

Tax Rate Component	Amount (per $100 of valuation)
Maintenance & Operations: General Fund	$0.419394
Maintenance & Operations: Economic Development	$0.023716
Maintenance & Operations: Infrastructure Investment	$0.006201
Interest & Sinking (Debt)	$0.167567
Total Proposed Rate for the FY 2021	$0.616878

The State's Truth-in-Taxation law also requires calculation and publication of each taxing entity's no-new revenue tax rate, voter-approval tax rate, and de minimus rate:

Tax Rate

Definition

Amount (per $100 of valuation)

No-New Revenue Tax Rate

The no-new-revenue tax rate is the tax rate for the 2020 tax year that will raise the same amount of property tax revenue for Town of Addison from the same properties in both the 2019 tax year and the 2020 tax year.

$0.637851

Voter-Approval Tax Rate

The voter-approval tax rate is the highest tax rate that Town of Addison may adopt without holding an election to seek voter approval of the rate, unless the de minimis rate for Town of Addison exceeds the voter-approval tax rate for Town of Addison.

$0.701933

De Minimis Rate

The de minimis rate is the rate equal to the sum of the no-new-revenue maintenance and operations rate for Town of Addison, the rate that will raise $500,000, and the current debt rate for Town of Addison.

$0.675536

Notice of this public hearing was published in the Dallas Morning News on August 21, 2020. Included with this agenda item is a copy of the publication notice.

The proposed budget recommends a property tax rate of $0.616878 per $100 valuation, which does not exceed the no-new revenue tax rate. This proposed rate is higher than last year’s adopted rate of $0.583500 per $100 of valuation.

The average taxable home value for the Town of Addison is $335,597, which generates a tax bill of $2,070. Last year, the average taxable home value was $329,891 which generated a tax bill of $1,925. The average tax payer would pay about $145 more in property taxes than last year. Individual taxes may increase or decrease depending on the change in the taxable value of your property.

The City Council is scheduled to consider adoption of the proposed tax rate and budget on September 8, 2020, during a meeting of the Council to be held at the Addison Treehouse at 7:30 pm.

RECOMMENDATION:

Information only, no action required.

Attachments
Notice of Public Hearing Advertisement
Public Hearing - Tax Rate Presentation