08-16-2005 (City Council) Minutes (Special Called) MINUTES
WYLIE CITY COUNCIL AGENDA
Special Called Meeting
Tuesday, August 16, 2005
4:30 p.m.
Wylie Community Center
100 West Oak Street
Wylie,Texas 75098
CALL TO ORDER
Mayor Mondy called the meeting to order at 4:33 p.m. Council Members present were: Mayor Pro Tem
Eric Hogue, Councilwoman Reta Allen, Councilman Merrill Young, Councilman Earl Newsom,
Councilman Rick White and Councilman Carter Porter.
Staff present were: City Manager, Mark Roath, Assistant City Manager, Mindy Manson, City Engineer, Chris
Holsted; Planning & Zoning Director, Claude Thompson; Library Director, Rachael Orozco; Public Services
Director,Mike Sferra; Police Chief,Jeff Butters; Fire Chief, Shan English; WEDC Director, Sam Satterwhite;
City Secretary, Carole Ehrlich,Public Information Officer,Mark Witter,and many support staff.
PRESENTATIONS &DISCUSSION
• Discussion of"Truth in Taxation Laws" regarding the proposed 2005-06 Tax Rate and proposed
2005-06 Budget.(L. Williamson, Finance Director)
Mayor Mondy explained that with new state laws regarding "Truth in Taxation", and the complexity
surrounding the laws, he had requested a work session for Council to explain the proposed tax rate and the
laws governing truth in taxation and rollback margins. Mayor Mondy then asked Finance Director Larry
Williamson to give a short overview of the 2005-06 FY Budget and the tax rates that could be adopted to
support the budget.
Finance Director Williamson addressed Council stating that the Effective Tax Rate is a calculated rate that
would provide the City with roughly the same revenue it received the year before, on properties taxed in both
years. If property values rise, the Effective Tax Rate will decrease and vice versa. The Effective Tax Rate
calculation does not include new construction. The City's Effective Tax rate is calculated by dividing last
years adjusted taxes of$9,305,436. by this year's adjusted tax base of$1,403,520,093, giving an Effective Tax
Rate of$.6630 per$100 of taxable value.
The Rollback Rate is a calculated maximum rate allowed by law without voter approval. The Rollback Rate
provides the City with roughly the same revenue it spent the previous year as well as an 8 percent increase in
operation revenues, plus funds to pay for debt service in the coming year. The City's Rollback Rate is
calculated by dividing last years operating taxes of $7,443,117 by this year's adjusted tax base of
$1,403,520,093 to arrive at this year's effective operating rate of .530318 per $100 of taxable value. By
multiplying the effective operating rate of .530318 by 1.08% we get this year's maximum operating rate of
$.572743 per $100 of property valuation. By adding together this rate and the City's Interest and Sinking Fund
Minutes—August 16,2005(4:30 p.m.)
Wylie City Council
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- rate of.133053, we get the Rollback rate of$.705796 per $100 of taxable value. If the City adopts a tax rate
that is higher than the rollback tax rate, voters have the right to circulate a petition calling for an election to
limit the size of the tax increase. He explained that the tax rate to fund the proposed budget and maintain a
minimum 15% ending fund balance is $.6266 per $100 of taxable value. He explained that concern needs to
be given when approving a tax rate, in regards to funds available for future years and unexpected expenses that
can occur during the fiscal year. The City Administration understands that the City Council has a broad range
of tax rates it can select for the coming year. Staff recommendation, as a good compromise, would be an
effective tax rate of$.6630 per $100 of taxable value. Mr. Williamson explained that this recommended rate
would be an actual tax reduction of 3.2 cents / $100, and setting up a favorable environment for the bond
election.
Direction from Council was to hold a budget work session in the near future and then determine an effective
tax rate. Public Hearings on the proposed tax rate will be held August 23, 2005 and August 30, 2005 with the
final adoption of the FY 2005-06 tax rate on the 13`h of September.
ADJOUR TMEN '.:
With no further business before Council, Mayor Mondy adjourned the meeting at 5:28 p.m. Consensus of
Council was to adjourn.
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Minutes—August 16,2005(4:30 p.m.)
Wylie City Council
Page 2