City Council
	Agenda Request
Agenda Of:	11-03-09	Agenda Request No:		vii-c
Initiated By:	Donna Svatek Treasury Manager	Responsible Department:		Fiscal Services
Presented By:	Donna Svatek Treasury Manager	Department Head:		Linda Symank Director of Fiscal Services
		Additional Department. Head (s):
Subject / Proceeding:	First and Final Reading of Ordinance No. 1763 Adopting the Property Tax Rate of $0.30000 for Tax Year 2009
Exhibits:	Ordinance No. 1763
Clearances			Approval
Legal:	joe morris, city attorney		Executive Director:	n/a
Purchasing:	n/a		Asst. City Manager:	Karen Glynn
Budget:	Jennifer Brown Budget and Research Director		City Manager:	Allen Bogard
Budget
Expenditure Required: $			n/a
Amount Budgeted/Reallocation: $			n/a
Additional Appropriation: $			n/a
Recommended Action
Consideration and approval of Ordinance No. 1763 adopting a tax rate of $0.30000 for tax year 2009 and including a record of the vote on the tax rate.
Executive Summary
The FY10 budget was adopted on September 15, 2009 with a proposed tax rate of $0.30000. The City received the 2009 certified tax roll on September 7, 2009. A resident with the average residential value of $255,557 and a 7% homestead exemption will see a 2009 tax bill of $766.67, an increase of $35.54 compared to the average 2008 tax bill of $731.13, which is based on the average value of $243,710 and a 7% homestead exemption. Since the proposed tax rate exceeds the calculated effective tax rate of $0.29096, and will generate more property tax revenue than in 2008, the City must follow the steps mandated by the truth in taxation law in order to adopt the same tax rate as 2008. City Council is required to conduct two public hearings. The City has complied with the law and two public hearings were conducted on October 6 and October 20, 2009, with one citizen speaking at the October 20th public hearing. All required quarter page notices were published in the newspaper, and the notices were also placed on the City’s web page and municipal channel. Changes in the law also affect the tax rate adoption process, including mandating language in the motion to adopt the tax rate. In order to have the proper statement in the official record of the meeting, and allow explanation of the adoption of the same tax rate as last year , the following motion should be made in conjunction with this agenda item. “I move that the property tax rate be increased by the adoption of a tax rate of $0.30000, which is effectively a 3.11 percent increase in the tax rate.” If the maintenance and operations taxes exceed the prior year’s levy, a statement must be included in the ordinance and on the City’s web page. Since this year’s maintenance and operations taxes will raise $1,103,090 more than last year, the ordinance will include in larger type: “This tax rate will raise more taxes for maintenance and operations than last year’s tax rate.” Although the tax rate raises more for maintenance and operations than last year, increased revenues are mainly coming from new value on the tax roll. The ordinance must also include a record of the vote taken on the tax rate. The effective and rollback tax rates, unencumbered fund balances, debt schedule and other requirements were published in the newspaper on September 23, 2009. A taxing unit authorized to pay both maintenance and operations and debt expenses with property taxes must adopt its rate in two separate components. The maintenance & operations allocation of the rate for 2009 is $0.16000 and the debt rate is $0.14000. Staff recommends the City Council adopt Ordinance 1763, developed in accordance with the truth in taxation law, levying a tax rate for the Year 2009 and recording the vote.
Exhibits

ORDINANCE NO. 1763

AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, LEVYING A PROPERTY TAX RATE FOR THE YEAR 2009; DIRECTING THE TAX ASSESSOR-COLLECTOR TO ASSESS, ACCOUNT FOR, AND DISTRIBUTE THE PROPERTY TAXES AS HEREIN LEVIED.

WHEREAS, Section 26.05 (a) of the Tax Code requires taxing authorities to adopt a property tax rate by September 30 of each year or within sixty days after receipt of the certified appraisal roll; and

WHEREAS, Section 26.05 (a) of the Tax Code requires the total property tax rate be approved in two components: (1) Maintenance and Operations; and (2) Debt Service; and

 WHEREAS, Section 26.05 (b) of the Tax Code requires that the vote on the ordinance setting a tax rate that exceeds the effective tax rate must be a record vote; and 
 
 WHEREAS, Section 26.05 (b) of the Tax Code requires that a motion to adopt an ordinance setting a tax rate that exceeds the effective tax rate must be made in the following form: 
 
“I move that property taxes be increased by the adoption of a tax rate of $0.3000 which is effectively a 3.11 percent increase in the tax rate”; and 

 WHEREAS, Section 26.05 (b) of the Tax Code requires that if the ordinance sets a tax rate that, if applied to the total taxable value, will impose an amount of taxes to fund maintenance and operation expenditures of the taxing unit that exceeds the amount of taxes imposed for that purpose in the preceding year, the taxing unit must include in the ordinance in type larger than the type used in any other portion of the ordinance the following statement: "THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE";  NOW, THEREFORE;

BE IT ORDAINED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

Section 1. That the property tax rate per $100.00 valuation for the City of Sugar Land for tax year 2009 is adopted as follows:

Maintenance and Operations	$0.16000
Debt Service	$0.14000
Total Tax Rate	$0.30000

Section. 2 THAT THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR’S TAX RATE.

Section 3. That the record vote of the City Council on this ordinance is:

Council Members voting FOR adoption:

Council Members voting AGAINST adoption:

Council Members absent:

Section 4. That this ordinance is adopted upon one reading in compliance with Section 6.03 of the City Charter.

APPROVED on ____________________________, 2009.

________________________

James A. Thompson, Mayor

ATTEST: Reviewed for Legal Compliance:

____________________________

Glenda Gundermann, City Secretary