AGENDA BACKGROUND. Date: August 6, AGENDA ITEM: Discuss and review the Budget for the Fiscal Year PRESENTER:

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2 2 AGENDA BACKGROUND AGENDA ITEM: Discuss and review the Budget for the Fiscal Year Date: August 6, 2018 PRESENTER: Matt Fielder, City Manager BACKGROUND: The purpose of this item is to discuss and review a section of the Fiscal Year Annual Budget. FISCAL IMPACT: N/A RECOMMENDATION: N/A ATTACHMENTS: None.

3 3 AGENDA BACKGROUND AGENDA ITEM: Discuss and review the 2018 Ad Valorem Certified Appraisal Roll from the Tarrant County Appraisal District. DATE: August 6, 2018 PRESENTER: Matt Fielder, City Manager Sean Smith, Finance Director BACKGROUND: Receive the 2018 Ad-Valorem Certified Tax Roll from the Tarrant Appraisal District. FISCAL IMPACT: The Ad Valorem (Property) tax revenue (levy) is calculated by multiplying the tax rate (adopted by Council) by the estimated net taxable value provided by the Tarrant Appraisal District. The Tarrant County Tax Office bills and collects Ad Valorem taxes levied by the Town. RECOMMENDATION: No action required at this time. This item is for informational purposes only. ATTACHMENTS: Appraisal Roll Comparison 2018 Certified Appraisal Roll 2017 Certified Appraisal Roll (for comparison purposes only.)

4 4 Jeff Law, Chief Appraiser TOWN OF PANTEGO 019 Appraisal Roll Information Valuation Summary as of July 20, Certified Property Information I, Jeff Law, Chief Appraiser for the Tarrant Appraisal District, to the best of my ability do solemnly swear that the attached is that portion of the appraisal roll for the Tarrant Appraisal District which lists property taxable by the above named entity and constitutess their Certified Appraisal Roll. APPRAISED VALUE (Considers Value Caps) > $ 400,157,2177 Number of Accounts: 10,732 Absolute Exemptions Cases before ARB Appraised Value Incompletes Partial Exemptions In Process $ 16,669,108 $ 11,,725,300 $ 15,,253,873 $ 51,239,454 $ NET TAXABLE VALUE > $ 305,269,4822 Appraised Value minus Absolute Exemption amount, minus Cases before ARB amount, minus Incompletes, minus Partial Exemptions, minus the In Process accounts equals the Net Taxable Value. ESTIMATED NET TAXABLE VALUE > $ 322,233,795 Including suggested values to be used for pending ARB accounts (see page two), Incompletes (see page three) and In Process accounts (see page four). Jeff Law, Chief Appraiserr Tarrant Appraisal District 2500 Handley Ederville Road Fort Worth, Texas

5 5 Jeff Law, Chief Appraiser TOWN OF PANTEGO 019 Appraisal Roll Information Valuation Summary as of July 20, Appraisal Review Board Information Section (c) of the State Property Tax code directs the Chief Appraiser to prepare a list of all properties under protest with the Appraisal Review Board and pending disposition at the time of value roll certification. The values below are from the ARB roll and are not included in the totals by the Chief Appraiser and represented on page 1 of this report. $ 11,725,300 Total appraised value of properties under protest. $ 10,591,389 Net taxable value of propertiess under protest. $ 7,413,972 Estimated minimum taxable value forr the same properties. This value should be added to the net taxable value on page one. Tarrant Appraisal District 2500 Handley Ederville Road Fort Worth, Texas

6 6 Jeff Law, Chief Appraiser TOWN OF PANTEGO 019 Appraisal Roll Information Valuation Summary as of July 20, Incompletee Propertyy Information Section 26.01(d) of the State Property Tax Code directs the Chief Appraiser to properties that are not on the appraisal roll and not included on the ARB roll. prepare a list of all The values below are from the incomplete property listing and are not included in the totals by the Chief Appraiser and represented on page 1 of this report. The value of incompletee properties are subject to changee and are also subject to appeal before the Appraisal Review Board. $ 15,253,873 Total appraised value of incomplete properties $ 13,643,344 Net taxable value of properties under of incomplete properties. $ 9,550,341 Estimated minimum taxable value forr the same properties. This value should be added to the net taxable value on page one Tarrant Appraisal District 2500 Handley Ederville Road Fort Worth, Texas

7 7 Jeff Law, Chief Appraiser TOWN OF PANTEGO 019 Appraisal Roll Information Valuation Summary as of July 20, In Processs Property Information The values below are from In Process properties and are not included in the Appraiser and represented on page 1 of this report. totals by the Chief $ Total appraised value of In Process properties $ Estimated net taxable value of In Process properties. This value should be added to the net taxable value on page one. Tarrant Appraisal District 2500 Handley Ederville Road Fort Worth, Texas

8 Tarrant Appraisal District TOWN OF PANTEGO 019 Totals for Roll Instance July Roll Value Detail Market Appraised Counts Taxable Real Estate Residential 194,946, ,700, ,252,049 Real Estate Commercial 162,286, ,286, ,255,234 Real Estate Industrial 2,853,120 2,853, ,853,120 Personal Property Commercial 47,831,368 47,831, ,786,867 Personal Property Industrial 2,180,235 2,180, ,180,235 Mineral Lease Properties 305, ,820 8, ,710 Agricultural Properties Total Value 410,404, ,157,217 10, ,504,215 Pending Detail Market Appraised Counts Taxable Cases Before ARB 11,856,197 11,725, ,591,389 Incomplete Accounts 15,253,873 15,253, ,643,344 In Process Accounts Certified Value 383,293, ,178,044 10, ,269,482 7/19/2018 9:25:15 AM Page 70 of 389

9 9 Exemption Detail Market Exempt Counts Appraised Absolute Public 2,687,652 2,687, ,687,652 Absolute Charitable 12,807,875 12,807, ,807,875 Absolute Miscellaneous Absolute Religious & Private Schools 1,173,581 1,173, ,173,581 Indigent Housing Nominal Value 129, ,950 4, ,950 Disabled Vet 10-29% 1,020,387 20, ,587 Disabled Vet 30-49% 262,743 7, ,529 Disabled Vet 50-69% 215,242 10, ,279 Disabled Vet 70-99% 4,276, , ,954,824 Disabled Vet 100% 2,129,961 1,197, ,024,936 Surviving Spouse Disabled Vet 100% Donated Disabled Vet Surviving Spouse Donated Disabled Vet Surviving Spouse KIA Armed Service Member Transfer Base Value for SS Disable Vet Inventory Homestead State Mandated-General Homestead State Mandated-Over Homestead State Mandated-Disabled Person Homestead Local Option-General 162,626,343 30,502, ,510,425 Homestead Local Option-Over 65 83,059,387 18,716, ,881,047 Homestead Local Option-Disabled Person 1,649,257 80, ,540,270 Solar & Wind Powered Devices Pollution control Community Housing Development Abatements Historic Sites Foreign Trade Zone Misc Personal Property (Vehicles, etc.) 382, , ,574 Surviving Spouse of First Responder KLD Transfer Base Value SS KIA Armed Service Member Transfer Base Value SS of First Responder KLD Total Exemptions 67,908,562 5,451 Deferrals Market Deferred Counts Appraised Ag Deferrals Scenic Deferrals Public Access Airports Other Deferrals Total Deferrals /19/2018 9:25:15 AM Page 71 of 389

10 10 New Exemptions Market Exempt Counts Appraised Absolute Public Absolute Charitable Absolute Miscellaneous Absolute Religious & Private Schools Indigent Housing Nominal Value Disabled Vet 10-29% Disabled Vet 30-49% Disabled Vet 50-69% Disabled Vet 70-99% Disabled Vet 100% Surviving Spouse Disabled Vet 100% Donated Disabled Vet Surviving Spouse Donated Disabled Vet Surviving Spouse KIA Armed Service Member Transfer Base Value for SS Disable Vet Inventory Homestead State Mandated-General Homestead State Mandated-Over Homestead State Mandated-Disabled Person Homestead Local Option-General 4,108, , ,004,325 Homestead Local Option-Over 65 2,295, , ,190,962 Homestead Local Option-Disabled Person Solar & Wind Powered Devices Pollution control Community Housing Development Abatements Historic Sites Foreign Trade Zone Misc Personal Property (Vehicles, etc.) Surviving Spouse of First Responder KLD Transfer Base Value SS KIA Armed Service Member Transfer Base Value SS of First Responder KLD Total New Exemptions 1,300, New Construction Market New Value Counts Taxable All Real Estate 586,437 78, ,464 New business in new improvement Total New Construction 586,437 78, ,464 New Construction in Residential 586,437 78, ,464 New Construction in Commercial Market Appraised Counts Taxable Annexation Deannexation /19/2018 9:25:15 AM Page 72 of 389

11 11 Tax Ceiling Market Taxable Counts Ceiling Amount Over Disable Person Total Ceilings New Over 65 Ceilings New Disabled Person Ceilings Capped Accounts Market Cap Loss Counts Appraised Cap Total 104,069,191 10,115, ,953,273 New Cap this Year 18,344,535 1,587, ,757,250 All Exemptions by Group Market Exempt Counts Appraised Residential 162,873,069 50,846, ,757,151 Commercial 16,968,671 16,933, ,968,671 Industrial Mineral Lease 129, ,110 4, ,110 Agricultural Exemption Total 67,908,562 5,035 Market Exempt Counts Appraised Prorated Absolute Multi-Prorated Absolute Current Taxable Counts Appraised Value Loss (d) Average Market Average Appraised Counts Average Taxable Averages for Value Single Family 223, , ,405 7/19/2018 9:25:15 AM Page 73 of 389

12 Entity Exemptions Report July Roll Page 1 of /19/ :35:02 AM 019 TOWN OF PANTEGO Exemption Type Certified Loss Count ARB Loss Count Incomplete Loss Count Total Loss Count Abatements $0 0 $0 0 $0 0 $0 0 Absolute Charitable $12,807,875 7 $0 0 $0 0 $12,807,875 7 Absolute Miscellaneous $0 0 $0 0 $0 0 $0 0 Absolute Public $2,687, $0 0 $0 0 $2,687, Absolute Religious & Private Schools $1,173,581 5 $532,012 1 $0 0 $1,705,593 6 Community Housing Development $0 0 $0 0 $0 0 $0 0 Disabled Vet 100% $1,197,949 8 $0 0 $0 0 $1,197,949 8 Disabled Vet 10-29% $20,000 4 $0 0 $0 0 $20,000 4 Disabled Vet 30-49% $7,500 1 $0 0 $0 0 $7,500 1 Disabled Vet 50-69% $10,000 1 $0 0 $0 0 $10,000 1 Disabled Vet 70-99% $228, $0 0 $0 0 $228, Donated Disabled Vet $0 0 $0 0 $0 0 $0 0 Foreign Trade Zone $0 0 $0 0 $0 0 $0 0 Historic Sites $0 0 $0 0 $0 0 $0 0 Homestead Local Option-Disabled Person $80,000 8 $0 0 $0 0 $80,000 8 Homestead Local Option-General $30,502, $451,899 7 $0 0 $30,953, Homestead Local Option-Over 65 $18,716, $150,000 3 $0 0 $18,866, Homestead State Mandated-Disabled Person $0 0 $0 0 $0 0 $0 0 Homestead State Mandated-General $0 0 $0 0 $0 0 $0 0 Homestead State Mandated-Over 65 $0 0 $0 0 $0 0 $0 0 Indigent Housing $0 0 $0 0 $0 0 $0 0 Inventory $0 0 $0 0 $0 0 $0 0 Misc Personal Property (Vehicles, etc.) $347,294 2 $0 0 $1,608, $1,956, Nominal Value $129,950 4,276 $0 0 $1,710 5 $131,660 4,281 Pollution control $0 0 $0 0 $0 0 $0 0 Solar & Wind Powered Devices $0 0 $0 0 $0 0 $0 0 Surviving Spouse Disabled Vet 100% $0 0 $0 0 $0 0 $0 0 Surviving Spouse Donated Disabled Vet $0 0 $0 0 $0 0 $0 0 Surviving Spouse KIA Armed Service Member $0 0 $0 0 $0 0 $0 0 Surviving Spouse of First Responder KLD $0 0 $0 0 $0 0 $0 0 Transfer Base Value for SS Disable Vet $0 0 $0 0 $0 0 $0 0

13 Entity Exemptions Report July Roll Page 2 of /19/ :35:02 AM 019 TOWN OF PANTEGO Exemption Type Certified Loss Count ARB Loss Count Incomplete Loss Count Total Loss Count Transfer Base Value SS KIA Armed Service Member $0 0 $0 0 $0 0 $0 0 Transfer Base Value SS of First Responder KLD $0 0 $0 0 $0 0 $0 0 Subtotals ==> $67,908,562 5,451 $1,133, $1,610, $70,653,002 5,479

14 Entity Exemptions Report July Roll Page 3 of /19/ :35:02 AM 019 TOWN OF PANTEGO Exemption Type Certified Loss Count ARB Loss Count Incomplete Loss Count Total Loss Count Prorated Absolute (included in above Absolute categories) $0 0 $0 0 $0 0 $0 0 Deferral Type Certified Loss Count ARB Loss Count Incomplete Loss Count Total Loss Count Ag Deferrals $0 0 $0 0 $0 0 $0 0 Scenic Deferrals $0 0 $0 0 $0 0 $0 0 Subtotals ==> $0 0 $0 0 $0 0 $0 0 Entity Totals Total Appraised * $400,157,217 Absolute Exempt $16,669,108 Cases Before ARB $11,725,300 Incompletes $15,253,873 Partial Exemptions $51,239,454 In Process $0 Calculated Net Taxable Value $305,269,482 Total # of Accounts * 10,732 * Only includes totals from Agricultural Properties, Mineral Lease Properties, Personal Property Commercial, Personal Property Industrial, Real Estate Commercial, Real Estate Industrial, and Real Estate Residential.

15 Current Use Code Report - Certified Entity: 019 TOWN OF PANTEGO 15 Page 1 of 3 7/19/ :30:39 AM G r Category Roll Status # of Accts Market Value Appraised Value Taxable Value Ag Acreage Ag Deferred New Const. Value A -- "Residential SingleFamily" ARB 14 $3,552,522 $3,421,625 $2,819, $0 $0 A -- "Residential SingleFamily" Certified 840 $187,593,880 $177,557,647 $127,172, $0 $78,610 A -- "Residential SingleFamily" Totals: 854 $191,146,402 $180,979,272 $129,992, $0 $78,610 AC -- "Single Family Interim Use" Certified 1 $159,323 $159,323 $159, $0 $0 AC -- "Single Family Interim Use" Totals: 1 $159,323 $159,323 $159, $0 $0 B -- "MultiFamily Residential" Certified 22 $3,016,342 $2,936,657 $2,559, $0 $0 B -- "MultiFamily Residential" Totals: 22 $3,016,342 $2,936,657 $2,559, $0 $0 BC -- "MultiFamily Commercial" Certified 1 $6,700,000 $6,700,000 $6,700, $0 $0 BC -- "MultiFamily Commercial" Totals: 1 $6,700,000 $6,700,000 $6,700, $0 $0 C1 -- "Vacant Land Residential" Certified 55 $700,229 $700,229 $700, $0 $0 C1 -- "Vacant Land Residential" Totals: 55 $700,229 $700,229 $700, $0 $0 C1C -- "Vacant Land Commercial" ARB 2 $131,660 $131,660 $131, $0 $0 C1C -- "Vacant Land Commercial" Certified 17 $1,874,327 $1,874,327 $1,874, $0 $0 C1C -- "Vacant Land Commercial" Totals: 19 $2,005,987 $2,005,987 $2,005, $0 $0 C2C -- "CommercialLandWithImprovementValue" Certified 1 $28,166 $28,166 $28, $0 $0 C2C -- "CommercialLandWithImprovementValue" Totals: 1 $28,166 $28,166 $28, $0 $0 F1 -- "Commercial" ARB 6 $6,045,507 $6,045,507 $6,045, $0 $0 F1 -- "Commercial" Certified 176 $128,801,538 $128,801,538 $128,801, $0 $0 F1 -- "Commercial" Totals: 182 $134,847,045 $134,847,045 $134,847, $0 $0 F2 -- "Industrial" Certified 4 $2,853,120 $2,853,120 $2,853, $0 $0 F2 -- "Industrial" Totals: 4 $2,853,120 $2,853,120 $2,853, $0 $0 G1 -- "Oil, Gas and Mineral Reserve" ARB 2 $490 $490 $ $0 $0 G1 -- "Oil, Gas and Mineral Reserve" Certified 8,899 $298,780 $298,780 $176, $0 $0 G1 -- "Oil, Gas and Mineral Reserve" Totals: 8,901 $299,270 $299,270 $176, $0 $0 J2C -- "VarX Utility Gas Companies" Certified 1 $1,984,080 $1,984,080 $1,984, $0 $0 J2C -- "VarX Utility Gas Companies" Totals: 1 $1,984,080 $1,984,080 $1,984, $0 $0 J3 -- "Commercial Utility Electric Companies" Certified 9 $1,514,713 $1,514,713 $1,514, $0 $0 J3 -- "Commercial Utility Electric Companies" Totals: 9 $1,514,713 $1,514,713 $1,514, $0 $0 This report contains All Excluding Absolutes Process Code: 220 Table Group Name: July Roll

16 Current Use Code Report - Certified Entity: 019 TOWN OF PANTEGO 16 Page 2 of 3 7/19/ :30:39 AM G r Category Roll Status # of Accts Market Value Appraised Value Taxable Value Ag Acreage Ag Deferred New Const. Value J3C -- "VarX Utility Electric Companies" Certified 2 $4,415,070 $4,415,070 $4,415, $0 $0 J3C -- "VarX Utility Electric Companies" Totals: 2 $4,415,070 $4,415,070 $4,415, $0 $0 J4C -- "VarX Utility Telephone Companies" ARB 2 $32,568 $32,568 $32, $0 $0 J4C -- "VarX Utility Telephone Companies" Certified 7 $956,665 $956,665 $956, $0 $0 J4C -- "VarX Utility Telephone Companies" Incomplete 5 $16,872 $16,872 $16, $0 $0 J4C -- "VarX Utility Telephone Companies" Totals: 14 $1,006,105 $1,006,105 $1,006, $0 $0 J4P -- "Personal Property Utility Telephone Companies" Certified 1 $37,392 $37,392 $37, $0 $0 J4P -- "Personal Property Utility Telephone Companies" Totals: 1 $37,392 $37,392 $37, $0 $0 J6C -- "VarX Utility Pipelines" Certified 1 $291,670 $291,670 $291, $0 $0 J6C -- "VarX Utility Pipelines" Totals: 1 $291,670 $291,670 $291, $0 $0 J7C -- "VarX Utility Cable Companies" Certified 2 $367,774 $367,774 $367, $0 $0 L1 -- "Personal Property Tangible Commercial" L1 -- "Personal Property Tangible Commercial" L1 -- "Personal Property Tangible Commercial" J7C -- "VarX Utility Cable Companies" Totals: 2 $367,774 $367,774 $367, $0 $0 ARB 7 $1,456,237 $1,456,237 $1,456, $0 $0 Certified 366 $21,614,656 $21,614,656 $21,608, $0 $0 Incomplete 83 $9,565,652 $9,565,652 $9,563, $0 $0 L1 -- "Personal Property Tangible Commercial" Totals: 456 $32,636,545 $32,636,545 $32,628, $0 $0 L1C -- "VarX Commercial" ARB 1 $105,201 $105,201 $105, $0 $0 L1C -- "VarX Commercial" Certified 27 $2,845,613 $2,845,613 $2,498, $0 $0 L1C -- "VarX Commercial" Incomplete 95 $3,625,628 $3,625,628 $2,016, $0 $0 L1C -- "VarX Commercial" Totals: 123 $6,576,442 $6,576,442 $4,620, $0 $0 L2 -- "Personal Property Tangible Industrial" Certified 4 $139,153 $139,153 $139, $0 $0 L2 -- "Personal Property Tangible Industrial" Incomplete 4 $2,041,082 $2,041,082 $2,041, $0 $0 L2 -- "Personal Property Tangible Industrial" Totals: 8 $2,180,235 $2,180,235 $2,180, $0 $0 S -- "Personal Property Special Inventory" Certified 14 $432,363 $432,363 $431, $0 $0 This report contains All Excluding Absolutes Process Code: 220 Table Group Name: July Roll

17 Current Use Code Report - Certified Entity: 019 TOWN OF PANTEGO 17 Page 3 of 3 7/19/ :30:39 AM G r Category Roll Status # of Accts Market Value Appraised Value Taxable Value Ag Acreage Ag Deferred New Const. Value S -- "Personal Property Special Inventory" Incomplete 2 $4,639 $4,639 $4, $0 $0 S -- "Personal Property Special Inventory" Totals: 16 $437,002 $437,002 $436, $0 $0 ARB Totals: 34 $11,324,185 $11,193,288 $10,591, $0 $0 Certified Totals: 10,450 $366,624,854 $356,508,936 $305,269, $0 $78,610 Incomplete Totals: 189 $15,253,873 $15,253,873 $13,643, $0 $0 In Process Totals: Report Totals: 10,673 $393,202,912 $382,956,097 $329,504, $0 $78,610 This report contains All Excluding Absolutes Process Code: 220 Table Group Name: July Roll

18 Entities Residential Graph Report 7/19/ Total Parcel Counts: 827 Average Market: TOWN OF PANTEGO 222,890 Average NTV: 2:57:52 PM 150,807 18

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34 TOWN OF PANTEGO APPRAISAL ROLL COMPARISON JULY JULY CERTIFIED CERTIFIED DIFFERENCE TOTAL APPRAISED VALUE $ 370,198, ,157,217 $ 29,958,303 Less Absolute & Partial Exemptions: Charitable $ 12,181,376 12,807,875 $ 626,499 Public 2,686,714 2,687,652 $ 938 Religious/Private Schools 1,375,753 1,173,581 $ (202,172) Veterans 1,084,809 1,593,399 $ 508,590 Homestead - Disabled Person 60,000 80,000 $ 20,000 Homestead-General 27,491,378 30,502,096 $ 3,010,718 Homestead-Over 65 18,065,769 18,716,665 $ 650,896 Nominal Value 77, ,950 $ 52,321 Pollution Control - 0 $ - Miscellaneous Personal Property (Vehicles, etc.) - 347,294 $ 347,294 Cases before Appraisal Review Board 13,780,476 11,725,300 $ (2,055,176) In Praocess Properties 35,392 0 $ (35,392) Incomplete Accounts 10,875,392 15,253,873 $ 4,378,481 $ 87,714,688 95,017,685 $ 7,302,997 $ - CERTIFIED NET TAXABLE VALUE $ 282,484,226 $ 305,139,532 $ 22,655,306 Plus Minimum Value of Protested Accounts $ 8,754,839 7,413,972 $ (1,340,867) Plus Minimum Value of In Process Properties $ 33,672 0 $ (33,672) Plus Minimum Value of Incomplete Accounts 6,673,683 9,550,341 $ 2,876,658 TAXABLE VALUE $ 297,946, ,103,845 $ 24,157,425 (Taxable Value Used in effective rate calculations) Taxable Value of New Construction $ 3,332, ,464 $ (2,917,104) Value of Average Home $ 138, ,405 $ 13,117 Tax Rate $ $ - Tax on Average Home $ $ 55 As of Taxable Value: $322,103, Tax Levy: $1,352, Tax Rate:.42/$100

35 35 AGENDA BACKGROUND AGENDA ITEM: Discuss, direct and consider action on the 2018 Proposed Property Tax Rate. DATE: August 6, 2018 PRESENTER: Matt Fielder, City Manager Sean Smith, Finance Director BACKGROUND: Receive the 2018 Proposed Property Tax Rate. FISCAL IMPACT: The Effective Property Tax Rate is the total rate needed to raise the same amount of property tax revenue from the same properties in both the 2017 and 2018 tax years. The Rollback Property Tax Rate is the highest rate the Town may adopt before voters are entitled to petition for an election to limit the rate that may be approved to the rollback rate. The Tarrant County Tax Assessor-Collector s Office has issued revised calculations tax rate calculations. These reflect an increase in both the effective and rollback rates from what was provided to Council on July 30 th. The Town s Effective Property Tax Rate for the 2018 tax year is $ /$100 of assessed value and the Rollback Property Tax rate is $ /$100 of assessed value. The City Manager is proposing within the FY budget to adopt a tax rate of $0.42/$100 of assessed value. This is the same as the current tax rate that was adopted for the FY budget. STAFF RECOMMENDATION: Staff recommends the approval of the proposed tax rate of $0.42/$100 of assessed value as the maximum tax rate that will be adopted by the Town Council for the 2018 tax year. ATTACHMENTS: None.

36 36 AGENDA BACKGROUND AGENDA ITEM: Discuss, direct, and consider action on setting dates for the vote on the Proposed FY Budget and the Proposed 2018 Ad Valorem Tax Rate to be acted upon in the Town Council Chambers at a special meeting on September 4, 2018 and a regular meeting on September 10, 2018, and to schedule two public hearings to be held in the Town Council Chambers each for the FY Budget and the 2018 Ad Valorem Tax Rate on August 20, 2018 at 6:30 p.m. and August 27, 2018 at 7:30 p.m. DATE: August 6, 2018 PRESENTER: Matt Fielder, City Manager Sean Smith, Finance Director BACKGROUND: Texas Local Government Code requires that the governing body of a municipally holds a public hearing on the proposed budget after the 15 th day the proposed budget is filed with the City Secretary but before the date the governing body makes its tax levy. The governing body shall provide for public notice of the date, time, and location of the hearing(s). Truth-in-Taxation laws require that when a proposed tax rate for the entity s budget exceeds the rollback rate or the effective rate, whichever is lower, the taxing unit s governing body must vote to place a proposal to adopt the tax rate in the agenda as an action item. The vote must be recorded and the proposal must specify the desired rate. If the motion passes, the governing body must schedule two public hearings on the proposed tax rate and notify the public of the dates, times and place for these hearings. The Town must also provide information about the proposed tax rate at least seven days before the scheduled public hearings. The notice of these public hearings will also be posted on the Town s website and published in the Town s newspaper of record. In order to comply with the Texas Local Government Code, two public hearings will be held in the Council Chambers regarding the proposed budget. The first public hearing will be held on August 20, 2018 at 6:30 PM and the second on August 27, 2018 at 7:30 PM. The governing body is required to adopt the budget prior to adopting the tax rate. First reading to vote to adopt the Proposed FY Budget will be held on September 4, 2018 in the Council Chambers at 6:30 PM, and the second and final reading to vote to adopt the Proposed FY Budget will be held at a regular scheduled Town Council meeting on September 10, 2018 in the Council Chambers at 7:30 PM. In order to comply with Truth in Taxation laws, the Town Council will vote to place a proposal to adopt a tax rate of $0.42/$100 of assessed value. Two public hearings will be held in the Council Chambers regarding the proposed tax rate. The first public hearing will be held on August 20, 2018 at 6:30 PM and the second on August 27, 2018 at 7:30 PM. The Tax Code requires that the governing body adopt the tax rate no less than three days but no more than 14 days after the second public hearing. First reading to vote to adopt the proposed tax rate will be held on September 4, 2018 in the Council Chambers at 6:30 PM, and the second and final reading to vote to adopt the proposed tax rate will be held at a regular scheduled Town Council meeting on September 10, 2018 in the Council Chambers at 7:30 PM.

37 37 FISCAL IMPACT: None. RECOMMENDATION: Staff recommends to place a proposed tax rate of $0.42/$100 of assessed value and to set the dates for the vote on the Proposed Fiscal Year Budget and the Proposed 2018 Ad Valorem Tax Rate to be acted upon at a special meeting held in the Council Chambers on September 4, 2018 and a regular meeting on September 10, 2018 and to schedule two public hearings for each to be held in the Council Chambers on August 20, 2018 at 6:30 p.m. and August 27, 2018 at 7:30 p.m. ATTACHMENTS: Approved Fiscal Year Budget Calendar

38 ****** FISCAL YEAR PROPOSED BUDGET CALENDAR ****** JUNE 2018 JULY 2018 S M T W T F S S M T W T F S H AUGUST 2018 SEPTEMBER 2018 S M T W T F S S M T W T F S H REGULAR TOWN COUNCIL MEETINGS 7:30 p.m. BUDGET WORKSESSIONS 6:30 p.m. ITEMS HANDLED BY STAFF OR COUNTY SPECIAL SESSION MEETING-IF NEEDED 38 July 9 The City Manager delivers the proposed FY Budget to the Town Council - City Manager's Overview Presentation File Proposed Budget with City Secretary and Post on Website July 16 July 25 July 30 August 1 August 6 August 8 August 13 August 14 August 15 August 20 August 27 August 28 September 4 September 10 September 14 September 28 1st Budget Work Session -General Fund Discussion: Revenues/Departmental Expenditures presentation and discussion Receive Certified Tax Roll from Tarrant Appraisal District Calculate Effective and Rollback Tax Rates 2nd Budget Work Session - Special Revenue Funds/Capital Project Funds/Transfers presentation and discussion Publish "Notice of Effective Tax Rate" Present Effective Tax Rate And Roll Back Rate To Town Council Present Certified Appraisal Roll from Tarrant Appraisal District to Town Council Present Ad valorem Collection Rate from Tax Assessor Collector to Town Council Preliminary Determination of Tax rate Vote to schedule Public Hearings for August 20, 2018 and August 27, 2018 on Tax Rate Increase Publish "Notice of Public Hearing" August 20, 2018 and August 27, 2018 (50-197) (1st 1/4 page) Includes date of vote on September 10, rd Budget Work Session - Water & Sewer Funds presentation and discussion Special Budget Work Session - If Needed Publish "Notice of Tax Revenue Increase" (50-198) (2nd 1/4 page) Includes date of vote on September 10, th Budget Work Session - Budget Recap 1st Public Hearing on Proposed Budget 1st Public Hearing on Tax Increase (Decrease) 2nd Public Hearing on Proposed Budget 2nd Public Hearing on Tax Increase (Decrease) Special Budget Work Session - If Needed Special Budget Regular Session 1st Reading of Ordinance adopting Budget 1st Reading of Ordinance adopting Tax Rate Final Reading of Ordinance adopting Budget Final Reading of Ordinance adopting Tax Rate File Tax rate with County Final budget as adopted submitted to Town Council. Adopted budget to be posted on the Town's website. Note: All dates MUST meet the "Truth In Taxation" Requirements