Agenda

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Item # 16.

Work Session and Regular Meeting

Meeting Date:	08/27/2019
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Leverage Addison's unique assets to grow and expand placemeaking and events that will set Addison apart and attract talent and businesses

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, 2019 and Ending September 30, 2020.

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 3, 2019 at a meeting that commences at 5:00 pm in the Council Chambers.

The proposed property tax rate for the Fiscal Year (FY) 2020 is $0.591133 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	$0.411833
Maintenance & Operations: Economic Development	$0.023716
Maintenance & Operations: Infrastructure Investment	$0.006201
Interest & Sinking (Debt)	$0.149383
Total Proposed Rate for the FY 2020	$0.591133

The State's Truth-in-Taxation law also requires calculation and publication of each taxing entity's effective tax and rollback tax rate:

Tax Rate	Definition	Amount (per $100 of valuation)
Effective Tax Rate	Rate needed to raise the same amount of property tax revenue for the Town from the same properties in 2018.	$0.552371
Rollback Tax Rate	Highest tax rate that the Town may adopt before voters are entitled to petition for an election to limit the rate to the rollback rate.	$0.591133

These rates were published in the August 16, 2019 edition of the Dallas Morning News. Included with this agenda item is a copy of the publication notice.

The City Manager's proposed budget recommends a property tax rate of $0.591133 per $100 valuation, which exceeds the effective tax rate. This proposed rate is higher than last year’s adopted rate of $0.550000 per $100 of valuation.

The average home value for the Town of Addison is $331,280, which generates a tax bill of $1,958.30. Last year, the average home value was $319,582 which generated a tax bill of $1,757.70. The average tax payer would pay about $200.60 more in property taxes than last year. Individual taxes may increase or decrease depending on the change in the taxable value of your property.

Two public hearings will be held on the proposed budget. The first public hearing will take place at a meeting that commences at 5 pm on September 3, 2019 in the Council Chambers. The second public hearing will take place at a meeting that commences at 7:30 pm on September 10, 2019 in the Council Chambers. The City Council is scheduled to consider adoption of the proposed tax rate and budget on September 10, 2019 during a meeting of the Council to be held in Council Chambers at 7:30 pm.

RECOMMENDATION:

Information only, no action required.

Attachments
Presentation - 1st Public Hearing Tax Rate Fiscal Year 2020
Notice - 2019 Tax Year Proposed Property Tax Rate