CITY OF KYLE, TEXAS

Approval of Ordinance to Adopt Ad Valorem (Property) Tax Rate for FY 2018

(First Reading) Approve an Ordinance of the City of Kyle, Texas, fixing the ad valorem tax rate at $0.5416 per $100.00 of assessed taxable valuation and providing for the levying of ad valorem taxes for use and support of the municipal government of the City of Kyle for the fiscal year beginning October 1, 2017 and ending September 30, 2018; providing for apportioning each levy for specific purposes; and providing when taxes shall become due and when same shall become delinquent if not paid.  ~ J. Scott Sellers, City Manager

The City Manager's proposed budget for fiscal year 2017-2018 as presented to City Council on July 29, 2017 included a proposal to reduce the ad valorem (property) tax rate by $0.0332 from $0.5748 to $0.5416 per $100.00 of assessed taxable valuation.

During the City Council budget meeting held on July 29, 2017, the City Council approved a Resolution to consider, at a future City Council meeting, an ad valorem (property) tax rate proposal for tax year 2017 that would not exceed the rollback ad valorem (property) tax rate.

The City Council held two (2) public hearings to receive comments on the proposed ad valorem (property) tax rates for fiscal year 2017-2018 from all Kyle residents, taxpayers, and interested persons.

The two (2) public hearings on the proposed ad valorem (property) tax rates under consideration by the City Council were held as follows:

1. August 15, 2017 at 7:00 p.m., at Kyle City Hall, 100 W. Center Street, Kyle, Texas 78640.
2. August 22, 2017 at 7:00 p.m., at Kyle City Hall, 100 W. Center Street, Kyle, Texas 78640.

Current Adopted Ad Valorem (Property) Tax Rates for Fiscal Year 2016-2017:

Maintenance & Operations (M&O):    $0.2395 per $100.00 of assessed taxable valuation

Interest & Sinking (I&S):                     $0.3353 per $100.00 of assessed taxable valuation

Total Property Tax Rate:                    $0.5748 per $100.00 of assessed taxable valuation

Effective Ad Valorem (Property) Tax Rate for Fiscal Year 2017-2018:

$0.5395 per $100.00 of assessed taxable valuation

Rollback Ad Valorem (Property) Tax Rate for Fiscal Year 2017-2018:

$0.5419 per $100.00 of assessed taxable valuation 

Proposed Ad Valorem (Property) Tax Rates for Fiscal Year 2017-2018:

After taking into consideration the comments received during the public hearings and budget meetings, the City Council is considering adopting an ad valorem (property) tax rate of $0.5416 per $100.00 of assessed taxable valuation for fiscal year 2017-2018 by approving an Ordinance on August 29, 2017 (1st reading) and September 5, 2017 (2nd reading).  

The maintenance and operations (M&O) and interest and sinking (I&S) components of the total ad valorem (property) tax rate of $0.5416 per $100.00 of assessed taxable valuation under consideration for adoption by the City Council for fiscal year 2017-2018 are as follows: 

Maintenance & Operations (M&O):    $0.2548 per $100.00 of assessed taxable valuation.

Interest & Sinking (I&S):                     $0.2868 per $100.00 of assessed taxable valuation.

Total Property Tax Rate:                     $0.5416 per $100.00 of assessed taxable valuation.