The proposed tax rate of $0.550830 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 $0.402471 on each $100 of taxable value and the I&S rate is $0.148359 on each $100 of taxable value which, when combined, equals the total tax rate of $0.550830 on each $100 of taxable value.
Therefore, it is recommended that City Council adopt a Tax Year 2021 tax rate for Maintenance and Operations of $0.402471 on each $100 of taxable value and a tax rate for the Debt Service of $0.148359 on each $100 of taxable value.
The 2021 proposed tax rate ($0.550830) is lower than Tax Year 2020's adopted tax rate ($0.561840) by about 1.96% or 1.1 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