Agenda

Back to Calendar Return

Item # 11.

Council Meeting

Meeting Date:	09/08/2020
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, Discuss, and Consider Action on an Ordinance to Levy Taxes for the Town of Addison, Texas, and to Fix and Adopt the Tax Rate of $0.608676 for the Town on All Taxable Property for the Fiscal Year Beginning October 1, 2020 and Ending September 30, 2021.

BACKGROUND:

This is the second of two public hearings regarding the proposed tax rate for the Town of Addison.

The proposed property tax rate for the Fiscal Year (FY) 2021 is $0.608676 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	$0.411192
Maintenance & Operations: Economic Development	$0.023716
Maintenance & Operations: Infrastructure Investment	$0.006201
Interest & Sinking (Debt)	$0.167567
Total Proposed Rate for the FY 2021	$0.608676

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

These rates were published in the August 29, 2020 edition of the Dallas Morning News. Included with this agenda item is a copy of the publication notice.

The proposed budget recommends a property tax rate of $0.608676 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 home value for the Town of Addison is $335,597, which generates a tax bill of $2,043. Last year, the average home value was $329,891 which generated a tax bill of $1,925. The average tax payer would pay about $118 more in property taxes than last year. Individual taxes may increase or decrease depending on the change in the taxable value of your property.

RECOMMENDATION:

Administration recomments approval.

Attachments
Notice of Vote on the Tax Rate
Presentation - Fiscal Year 2021 Tax Rate Adoption
Ordinance - Fiscal Year 2021 Tax Rate Adoption