05-A thru F - Budget Workshop - Laserfiche WebLink

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AGENDA INFORMATION SHEET SUBJECT: Agenda items nos. 5-A through E, Budget Workshop Session items. BACKGROUND: You will note that under Agenda Item 5 for the August 7, 2003, regular Council meeting, there are five (5) separate items associated with review of the City Manager's proposed budget. It should be emphasized that all of these items are placed on the agenda solely for the purpose of providing City Council maximum flexibility as to which direction it may choose to go with regard to the budget. For example, item 5-C would allow the Council to take possible action on amendments to the budget, although no such amendments may be called for. The same is true in part for items 5-D and 5-E; 5-D provides City Council the opportunity to establish City Council work sessions regarding the budget and the tax rate. Item 5-E is a procedural requirement only if City Council desires to consider a tax increase for calendar year 2003. As was referenced when the schedule for the tax and budget process was presented to the City Council, the process the City of Paris must follow in approving its budget and adopting a tax levy is subject to the provisions of at least two (2) State statutes as well as the City Charter. Again with regard to agenda item number 5-E, calling for a record vote on the proposal to consider a tax increase for calendar year 2003, obviously this item is important only if the City Council is considering a tax increase associated with the budget. However, it is probably a good time to explain the background with regard to agenda item number 5-E. Section 26.06 of the Texas Tax Code, entitled Notice, Hearing, and Vote on tax increase, sets out the notice requirements incident to the process for adopting a tax rate which exceeds the effective tax rate by three percent (3%). As part of the process of conducting a public hearing on such a tax increase, the City is obligated to place a notice of the public hearing in a local newspaper conforming with the provisions of the state statute regarding that notice. The statute even stipulates the language which must be included in the notice. The notice must identify the name of the taxing unit, notify the reading public that a public hearing on a proposal to increase the tax revenues by a stated percentage will be held on a certain date and time at a certain meeting place, and contain the language "your individual taxes may increase at a greater or lessor rate, or even decrease, depending upon the change of the taxable value of your property in relation to the change in taxable value of all other property and the tax rate that is adopted." Finally, this same provision of the Texas Tax Code requires that the notice published in the newspaper must contain "the names of all members of the governing body, showing how each voted on the proposal to consider the tax increase, or, if one or more were absent, indicating the absences." As a consequence, in order to meet the requirements of the statute in publishing the notice, the City must therefore conduct a special vote on the preliminary tax rate, based exclusively on the City Manager's original budget, so information as to who voted for or against the preliminary tax rate can be published in the notice of hearing. A mere role call vote will not suffice; the vote must be recorded by a show of hands so the names of the members of the governing body, voting for or against, or shown absent, can be carried in the actual notice itself. DESCRIPTION/RECOMMENDED ACTION: Consider the various actions which City Council may take related to adoption of the fiscal year 2003-2004 budget and accompanying tax rate. SCHEDULE: An additional copy of the original schedule presented to City Council is enclosed with the budget materials; this schedule should be expanded to include budget work sessions and other associated meetings.