04 - Adoption of Property Tax Rate and Tax Levy

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Item No. 4 rM 5011 j4"V"?jT&W'4() ffm TO: Mayor, Mayor Pro -Tem & City Council Robert Vine, Interim City Manager FROM: Gene Anderson, Finance Director SUBJECT: ORDINANCE ADOPTING THE PROPERTY TAX RATE AND TAX LEVY DATE: September 10, 2024 BACKGROUND: Each year the City Council must adopt a property tax rate sufficient to fund the city budget as adopted by the Council. The ordinance setting the tax rate also indicates the amounts of budget appropriations resulting from levying the adopted property tax rate. At the proposed tax rate, the average residential homestead valued at $148,272.00 will pay $683.83 in city property taxes. STATUS OF ISSUE: The City Council, having adopted the 2024-25 City budget, must now adopt a property tax rate of .46120 per $100 of valuation (0.31292 O&M rate and 0.14828 I&S rate). This rate should produce $8,530,000 for the General Fund and $3,812,626 for the Interest & Sinking Funds from which debt payments are made. BUDGET: N/A RECOMMENDATION: Motion to approve an ordinance fixing the property tax rate, property tax levy, and levying the ad valorem taxes for the City of Paris for fiscal year 2024-25. The wording of the motion is dictated by the State Property Tax Code Section 26.05(b) and is shown below. "I move that the property tax rate be increased by the adoption of a tax rate of $0.46120, which is effectively a 5.71 percent increase in the tax rate." Tax Code Sec. 26.05(b) further requires that the ordinance must be passed in a record (roll call) vote.