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08-15-2002 (City Council) Agenda Packet NOTICE OF MEETING WYLIE CITY COUNCIL AGENDA Thursday, August 15, 2002 6:00 p.m. Wylie Municipal Complex—Council Chambers/Council Conference Room 2000 State Highway 78 North Wylie,Texas 75098 Action Taken CALL TO ORDER OCATtON t PLEDGE t F GIANCE ITEMS FOR INDIVIDUAL CONSIDERATION AND ACTION 1. Consider and Act Upon Accepting the proposed Ad Valorem Tax Rate and Calculation of an Effective Tax Rate for Fiscal Year 2002-2003. CITIZENS PARTICIPATION ADJOURNMENT. In addition to any specifically identified Executive Sessions, Council may convene into Executive Session at any point during the open meeting to discuss any item posted on this agenda. The Open Meetings Act provides specific exceptions that require that a meeting be open. Should Council elect to convene into Executive Session, those exceptions will be specifically identified and announced. Any subsequent action,as a result of this Executive Session,will be taken and recorded in open session. I certify that this Notice of Meeting was posted on this_day of ,2002 at 5:00 p.m. as required by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media contacted. This agenda is also posted to the City of Wylie Website at www ci.wylie.tx.us City Secretary Date Notice Removed The Wylie Municipal Complex is Wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary's office at 972/442-8100 or TD 972/442-8170. Page 1 of 1 WYLIE CITY COUNCIL AGENDA ITEM NO. I. August 15, 2002 Issue Consider and Act Upon Accepting the proposed Ad Valorem Tax Rate and Calculation of an Effective Tax Rate for Fiscal Year 2002-2003. Background In accordance with the"Truth in Taxation"laws of the State of Texas,notices must be published and a public hearing must be held if an entity's proposed tax rate exceeds 103 percent of the effective tax rate. Therefore, the City is required to vote on the proposed tax rate and publish the results of the roll call vote at least seven(7) days prior to the first scheduled public hearing on August 27`h. The purpose of the first public hearing is to give the taxpayers an opportunity to express their views on the increase. The Council may not adopt the tax rate at this hearing. Instead,at the end of the hearing,it must set and announce the date, time and place of the meeting at which it will note on the final proposed tax rate. The second public hearing on September 10`h to vote on the tax rate must take place no less than three (3) days and no more than fourteen (14) days after the first public hearing. The official detailed effective tax rate calculation is available in the office of the Collin County Tax Assessor/Collector (Kenneth L. Maun) in McKinney. A copy is also maintained in the Finance Department for the Council and public to view. Financial Considerations The proposed budget is based on the proposed tax rate of$0.71.5 per$100 valuation. This is the rate previously discussed by the Council. Any change in the proposed rate will require revision of the proposed budget. Other Considerations The City is required by law to follow certain meeting and notice(publication)guidelines as shown on the attached calendar excerpt from the "Truth in Taxation"guide. Staff Recommendation It is recommended that the City Council approve the proposed tax rate and schedule the next required public hearing on the tax rate for August 27, 2002. Attachments Resolution Reporting Record Vote 2002 Planning Calendar from the "Truth in Taxation" guide 2002 Property Tax Rates in the City of Wylie and Effective Tax Rate Calculation e-C) 2-444f-e9 ?/14 Prepared by Reviewed by Finance City Man er Approval RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, ACCEPTING THE PROPOSED PROPERTY TAX RATE FOR FISCAL YEAR 2002-2003; ACCEPTING THE CALCULATION OF AN EFFECTIVE TAX RATE; ESTABLISHING A DATE FOR PUBLIC HEARING ON THE PROPOSED PROPERTY TAX RATE; AND PROVIDING FOR THE PUBLICAITON AS PROVIDED BY THE TEXAS PROPERTY TAX CODE WHEREAS, the City of Wylie has received the calculated effective tax rate as presented by the Collin County Tax Assessor/Collector's Office; and WHEREAS, the proposed tax rate exceeds 103 percent of the effective tax rate and the Statute requires an additional public hearing in order to entitle the City Council to consider acceptance and adoption of an ordinance levying a proposed tax rate of$0.715 per$100 valuation; and WHEREAS, the Texas Property Tax Code Chapter 26, as heretofore amended, provides the specific procedures in which to consider the proposed tax rate; NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Wylie, Texas, SECTION 1. The City Council of the City of Wylie, Texas, does hereby accept the rate of $0.715 per$100 valuation as the proposed property tax rate for fiscal year 2002-2003. SECTION 2. The City Council of the City of Wylie, Texas, met in a public meeting on August 15, 2002, and accepted this resolution with a majority vote as follows: Mayor John Mondy YEA NAY ABSTAIN ABSENT Mayor Pro Tem J.C. Worley YEA NAY ABSTAIN ABSENT Councilmember Reta Allen YEA NAY ABSTAIN ABSENT Councilmember Eric Hogue YEA NAY ABSTAIN ABSENT Councilmember Merrill Young YEA NAY ABSTAIN ABSENT Councilmember Joel Scott YEA NAY ABSTAIN ABSENT Councilmember Chris Trout YEA NAY ABSTAIN ABSENT SECTION 3. A public hearing shall be held on August 27, 2002, at 6:00 p.m. in the City Council Chambers at the Wylie Municipal Complex, 2000 Highway 78 North, Wylie, Texas, to receive public comment regarding the proposed tax rate. SECTION 4. The content and vote taken on this resolution shall be published in the official newspaper of the City as provided by the Texas Property Tax Code. DULY RESOLVED by the City Council of the City of Wylie, Texas, on this the 15`h day of August 2002. John Mondy, Mayor Barbara Salinas, City Secretary 2002 Planning Calendar May Mailing of notices of appraised value by chief appraiser. May 15 Deadline for submitting appraisal records to ARB. July 22 Deadline for ARB to approve appraisal records. July 25 Deadline for chief appraiser to certify rolls to taxing units. August Certification of anticipated collection rate by collector. Aug 7 Calculation of effective and rollback tax rates. Aug 14 Publication of effective and rollback tax rates; statement of schedules; submission to governing body. Aug 12 72-hour notice for meeting (Open Meetings notice). Aug 15 Meeting of governing body to discuss tax rate: if proposed tax rate will exceed the rollback rate or 103 percent of the effective tax rate (whichever is lower), take record vote and schedule public hearing. Aug 21 "Notice of Public Hearing on Tax Increase" (1st quarter-page notice) published at least seven days before public hearing. Aug 23 72-hour notice for public hearing (Open Meetings notice). Aug 27 Public hearing: schedule and announce meeting to adopt tax rate 3-14 days from this date. Sept 4 "Notice of Vote on Tax Rate" (2nd quarter page-notice) published before meeting to adopt tax rate. Sept 7 72-hour notice for meeting at which governing body will adopt tax rate. Sept 10 Meeting to adopt tax rate. Meeting is 3-14 days before public hearing. Taxing unit must adopt tax rate by September 30, or within 60 days of receiving certified appraisal roll. 2002 Property Tax Rates in City of Wylie This notice concerns 2002 property tax rates for City of Wylie. It presents information about three tax rates. Last year's tax rate is the actual rate the taxing unit used to determine property taxes last year. This year's effective tax rate would impose the same total taxes as last year if you compare properties taxed in both years. This year's rollback tax rate is the highest tax rate the taxing unit can set before taxpayers can start tax rollback procedures. In each case these rates are found by dividing the total amount of taxes by the tax base (the total value of taxable property) with adjustments as required by state law. The rates are given per$100 of property value. Last year's tax rate: Last year's operating taxes $3,690,994 Last year's debt taxes $1,743,265 Last year's total taxes $5,434,259 Last year's tax base $754,758,194 Last year's total tax rate 0.720000/$100 This year's effective tax rate: Last year's adjusted taxes (after subtracting taxes on lost property) $5,420,621 / This year's adjusted tax base (after subtracting value of new property) $840,610,116 = This year's effective tax rate 0.644843/$100 x 1.03=maximum rate unless unit publishes notices and holds hearing 0.664188/$100 This year's rollback tax rate: Last year's adjusted operating taxes (after subtracting taxes on lost $3,681,946 property and adjusting for any transferred function, tax increment financing, and/or enhanced indigent health care expenditures) / This year's adjusted tax base $840,610,116 = This year's effective operating rate 0.438009/$100 x 1.08 =this year's maximum operating rate 0.473049/$100 + This year's debt rate 0.211104/$100 = This year's rollback rate 0.684153/$100 Statement of Increase/Decrease If City of Wylie adopts a 2002 tax rate equal to the effective tax rate of$0.644843 per$100 of value, taxes would increase compared to 2001 taxes by$557,923. Schedule A Unencumbered Fund Balances The following estimated balances will be left in the units property tax accounts at the end of the fiscal year. These balances are not encumbered by a corresponding debt obligation. Type of Property Tax Fund Balance Maintenance&Operations $2,109,244 Interest&Sinking $306,860 Schedule B 2002 Debt Service The unit plans to pay the following amounts for long-term debts that are secured by property taxes. These amounts will be paid from property tax revenues(or additional sales tax revenues, if applicable). Principal or Contract Interest to be Payment to be Paid Paid from Other Description from Property Taxes Property Amounts Total of Debt Taxes to be Paid Payment Tax Refunding $227,550 $70,861 $500 $298,911 Bonds Series 1993 G.O. Bonds Series $62,784 $63,436 $500 $126,720 1995 G.O. Bonds Series $55,556 $68,985 $500 $125,041 1997 Tax Notes Series $160,000 $17,898 $500 $178,398 1998 G.O. Bonds Series $105,000 $156,344 $500 $261,844 1999 G.O. Bonds Series $60,000 $101,760 $500 $162,260 2000 G.O. Bonds Series $135,000 $200,913 $500 $336,413 2001 Tax Notes Series $95,000 $12,688 $500 $108,188 2001 Public Property $35,000 $5,190 $500 $40,690 Financing Cont. OB 1995 Public Property $60,000 $10,945 $500 $71,445 Financing OB G.O. Bonds Series $85,000 $112,500 $500 $198,000 2002 Tax Notes Series $45,000 $8,270 $500 $53,770 2002 Total required for 2002 debt service $1,961,680 - Amount(if any)paid from funds listed in Schedule A $0 - Amount(if any)paid from other resources $0 - Excess collections last year $0 = Total to be paid from taxes in 2002 $1,961,680 + Amount added in anticipation that the unit will collect only 100.00%of its taxes in 2002 $0 = Total debt levy $1,961,680 This notice contains a summary of actual effective and rollback tax rates'calculations. You can inspect a copy of the full calculations at 1800 North Graves, Suite 170 McKinney,Texas 75069. Name of person preparing this notice: Kenneth L. Maun Title: Collin County Tax Assessor Collector Date prepared:August 7, 2002