Agenda

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Item # 1.

Special Meeting - Budget Public Hearing

Meeting Date:	09/07/2021
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, 2021 and Ending September 30, 2022.

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 14, 2021, at a meeting that commences at 7:30 pm at the Addison Treehouse.

The proposed property tax rate for the Fiscal Year 2022 is $0.615105 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)	$0.173996
Total Proposed Rate for the FY 2022	$0.615105

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 2021 tax year that will raise the same amount of property tax revenue for Town of Addison from the same properties in both the 2020 tax year and the 2021 tax year.

$0.548593

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.

$0.679498

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.

$0.582153

Notice of this public hearing was published in the Dallas Morning News on August 20, 2021. Included with this agenda item is a copy of the publication notice.

The proposed budget recommends a property tax rate of $0.615105 per $100 valuation, which exceeds the no-new revenue tax rate. This proposed rate is higher than last year’s adopted rate of $0.608676 per $100 of valuation.

The average taxable home value for the Town of Addison is $349,537, which generates a tax bill of $2,151. Last year, the average taxable home value was $334,993 which generated a tax bill of $2,039. The average tax payer would pay about $111.61 more in property taxes than last year. Individual taxes may increase or decrease depending on the change in the taxable value of each property.

Of the total tax rate, $0.441109 is dedicated to maintenance and operations, which is that same rate as Fiscal Year 2021 for maintenance and operations, and $0.173996 is dedicated to debt service payments. The debt service portion of the tax rate is increasing as a result of the planned issuance of General Obligation Bonds that were approved by voters in the 2012 and 2019 Bond Elections.

The City Council is scheduled to consider adoption of the proposed tax rate and budget on September 14, 2021, during a meeting of the Council to be held at the Addison Treehouse at 7:30 pm.

RECOMMENDATION:

Information only, no action required.

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