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Item # 4.a.

Special Meeting - FY24 Budget Public Hearing

Meeting Date:	09/05/2023
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Continue development and implementation of the Long-Term Financial Plan

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, 2023 and ending September 30, 2024.

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 12, 2023, at a meeting that commences at 7:30 pm at the Addison Conference Centre.

The proposed property tax rate for the Fiscal Year 2024 is $0.609822 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	$0.420413
Maintenance & Operations: Economic Development	$0.023716
Maintenance & Operations: Infrastructure Investment	$0.006201
Interest & Sinking (Debt)	$0.159492
Total Proposed Rate for the FY 2024	$0.609822

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 2023 tax year that will raise the same amount of property tax revenue for Town of Addison from the same properties in both the 2022 tax year and the 2023 tax year.

$0.562728

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.

$0.636365

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.

$0.579183

Notice of this public hearing was published in the Dallas Morning News on August 25, 2023. Included with this agenda item is a copy of the publication notice.

The proposed budget recommends a property tax rate of $0.609822 per $100 valuation, which exceeds the no-new revenue tax rate. This proposed rate is the same rate that was adopted for fiscal year 2023.

The average taxable home value for the Town of Addison is $429,731, which generates a tax bill of $2,620.59. Last year, the average taxable home value was $380,057 which generated a tax bill of $2,317.67. The average tax payer would pay about $302.92 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, $0.450330 is dedicated to maintenance and operations, which is a slight increase from the Fiscal Year 2023 tax rate for maintenance and operations, and $0.159492 is dedicated to debt service payments. The debt service portion of the tax rate is decreasing despite the issuance of General Obligation Bonds that were approved by voters in the 2019 Bond Election as well as Certificates of Obligation.

The City Council is scheduled to consider adoption of the proposed tax rate and budget on September 12, 2023, during a meeting of the Council to be held at the Addison Conference Centre at 7:30 pm.

RECOMMENDATION:

Information only, no action required.

Attachments
Notice of Public Hearing Advertisement
Public Hearing Tax Rate Presentation