The proposed tax rate of $0.561840 on each $100 of taxable value must be apportioned between Maintenance and Operations (M&O) and Interest and Sinking Fund (I&S). The M&O rate is $0.423094 on each $100 of taxable value and the I&S rate is $0.138746 on each $100 of taxable value which, when combined, equals the total tax rate of $0.561840 on each $100 of taxable value.
Therefore, it is recommended that City Council adopt a Tax Year 2020 tax rate for Maintenance and Operations of $0.423094 on each $100 of taxable value and a tax rate for the Debt Service of $0.138746 on each $100 of taxable value.
The 2020 proposed tax rate ($0.561840) is lower than Tax Year 2019’s adopted tax rate ($0.567920) by about 1.07%, or 0.6 cents. Pursuant to the Tax Code, because the proposed tax rate exceeds the No-New-Revenue tax rate, the motion to adopt the ordinance setting the tax rate must be made in conformance with Section 26.05(b) of the Tax Code.
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Tantri Emo, Chief Business Officer/Finance Director