fiscal year fy2016 tax rate proposed vs. adopted budget
Post on 31-Dec-2015
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Agenda Items
Adopt FY2016 budget• Cover page requirements• Adopt budget
Record vote on tax rate• Specific wording required to adopt• Specific verbiage included in tax ordinance
Ratify tax rate
Adheres to all truth in taxation requirements
Property Tax Rates
.01 = $400,000
Adopted Rate (FY16) $0.579150
Maximum Tax Rate (FY16) $0.595520
Proposed Tax Rate (FY16) $0.555520
Rollback Tax Rate (FY16) $0.555524
Effective Tax Rate (FY16) $0.534304
Adopted Rate (FY15) $0.561800
.01 = $400,000
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Tax rate calculationsChange in Total Tax Rate
This year's adopted Total tax rate: 0.579150
Minus this year's Effective Total Tax Rate: 0.534304
Increase amount: 0.044846
Percent increase in Total tax rate:.044846 / .5343
04 = 8.39%
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Tax rate calculationsChange in M&O Tax Rate Only
This year's adopted M&O tax rate: 0.376724
Minus this year's Effective M&O Tax Rate: 0.326943
Increase amount: 0.049781
Percent increase in M&O tax rate:.049781 / .3269
43 = 15.23%
Raised M&O Taxes on a $100,000 Home
Taxable Value on a $100,000 home: $100,000
This year's adopted M&O tax rate: 0.376724
Minus last year's M&O tax rate: 0.343700
Increase in M&O tax rate over last year: 0.033024
Dollar increase in M&O taxes over last year:.033024/100 *
100,000 = $33.02
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FY2016Tax Rate Comparison
Tax Rate Component Proposed Rate
Adopted Rate
M&O: General Fund 0.328321 0.345750
M&O: Economic Development Fund 0.024773 0.024773
M&O: Infrastructure Investment Fund 0.000000 0.006201
Debt Service Fund Rate 0.202426 0.202426
Total 0.555520 0.579150
Impact on the Average Homeowner
The average taxpayer would pay about $110 ($9.16 per month) more than last year depending on their home value
FY 2015 FY 2016
Average Home Value* $258,203 $269,455
Tax Rate 56.180 57.915
Annual Tax $ 1,451 $ 1,561
*Taxable Value
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FY2016 Major Challenges –City Manager Proposed
General Fund• Decrease in sales tax had significant impact on fund
• Sales tax revenue projections reduced due to loss of major sales tax payer
• Funding of capital replacement significantly reduced
Utility Fund• Increased cost of wholesale water rates
Infrastructure Investment Fund• Unable to fund for FY2016 due to sales tax decrease
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All Funds OverviewAll Funds $109.8M
General Fund $33.3MHotel Fund $5.8MEconomic Development Fund $1.7MSpecial Revenue Funds $51KDebt Service Fund $8.9MInfrastructure Investment Fund $955KCapital Projects (Bond Funded) $31.5MAirport Fund $4.9MUtility Fund $13.7MStorm Water Fund $6.2MCombined Replacement $2.8M
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FY2016 Adopted Budget
• General Fund budget is balanced• Certified taxable property value increased
6% over FY2015 for a value of $4B• Increase in tax rate generates $956K in
additional revenue from proposed • Fully funds all capital replacement items• Funds Infrastructure Investment Fund
Key Facts
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FY2016 Adopted Budget
• Staffing levels remain the same as FY2015• Modified Levels of Service total $225,000• Fund balance requirements met• Funding for Capital Projects over $41M• Includes water rate increases due to
wholesale rate pass-through
Key Facts
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Adopted Modified Level of Services
Department MLS Amount Recurring
Special Events Enhancements for Taste Addison Entertainment
$100,000* Yes
Conference Centre New Carpet Replacement
$60,000 No
Performing Arts Replace Cyc Lights and Stage Lights
$40,000 No
Tourism World Affairs Council Additional Funding
$25,000 Yes
* Net amount
Tax Rate Adoption
16
Texas Tax Code, Sec. 26.05 (d)
As part of the requirements of adopting a tax rate, a municipality may not adopt a tax rate that exceeds the lower of the rollback tax rate or the
effective tax rate calculated as provided by this chapter until the governing body has held two public hearings on the proposed tax rate.
*must comply with posting regulations
Budget Adoption
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Texas Local Government Code, Sec. 102.006
As part of the requirements of adopting a budget, the governing body of a municipality must hold at least one public hearing on the proposed budget before the budget is adopted. Any person may attend and may participate
in this hearing.
*must comply with posting regulations
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