Special Meeting Item # 1.          
Meeting Date: 09/04/2018  
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

Information
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, 2018 and Ending September 30, 2019.
BACKGROUND:
This is the second of two public hearings regarding the proposed tax rate for the Town of Addison and will be held on September 4, 2018 at 5:00 pm in the Council Chambers. The first hearing was held on August 28, 2018.

The proposed property tax rate for the fiscal year 2019 is $0.550000 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 $0.377435
Maintenance & Operations:  Economic Development $0.023716
Maintenance & Operations:  Infrastructure Investment $0.006201
Interest & Sinking (Debt) $0.142648
Total Proposed Rate for the Fiscal Year 2018 $0.550000
  







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 2017. $0.527064
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. $0.553323

These rates were published in the August 17, 2018 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 $0.550000 per $100 valuation, which exceeds the effective tax rate. This proposed rate is the same as last year's adopted rate of $0.550000 per $100 of valuation.

The average home value for the Town of Addison is $319,582 which generate a tax bill of $1,757.70. Last year the average home value was $299,911 which generated a tax bill of $1,649.51. The average tax payer would pay about $108.19 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 final vote on the property tax rate and adoption of the Fiscal Year 2019 budget is scheduled on September 11, 2018 in the Council Chambers at 7:30 pm.
RECOMMENDATION:
Information only, no action required.

Attachments
Presentation - Fiscal Year 2019 Proposed Tax Rate
Notice - Tax Rate Fiscal Year 2019