Fiscal Year FY2016

Tax Rate

Proposed vs. Adopted Budget

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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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Proposed AdoptedBudget Changes

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Proposed AdoptedBudget Changes

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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

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Questions?

DRAFT

Tax Rate Adoption

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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