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04 - Adoption of Property Tax Rate and Tax LevyItem 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. ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, FIXING THE TAX RATE AND THE TAX LEVY AND LEVYING AD VALOREM TAXES FOR THE CITY OF PARIS FOR THE CALENDAR YEAR 2024 UPON ALL TAXABLE PROPERTY WITHIN THE CITY OF PARIS IN CONFORMITY WITH THE CHARTER PROVISIONS AND ORDINANCES OF THE CITY; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Lamar County Appraisal District, as authorized by the laws of the State of Texas, has fixed the value of all property situated within the corporate limits of the City of Paris, Texas and subject to ad valorem taxes for the year 2024, such total valuation being the sum of $2,801,652,344.00; and, WHEREAS, in accordance with provisions of ordinances passed by the City Council of the City of Paris, property owners over the age of sixty-five (65) and disabled Veterans have filed exemptions; other adjustments for tax abatements have been approved; and other exemptions are authorized under state law, thereby reducing the total valuation subject to ad valorem taxes; and, WHEREAS, in accordance with the provisions of the Charter of the City of Paris, Texas, the Interim City Manager has heretofore submitted to the City Council a proposed budget of the revenues of the City and the expenditures for the conduct of the affairs thereof, providing a complete financial plan for the fiscal year beginning October 1, 2024 and ending September 30, 2025; and, WHEREAS, the City Council has heretofore by ordinance adopted the budget appropriating from ad valorem taxes the following sums, to -wit: General Fund $8,530,000.00 Debt Service Fund $3,812,626.00; and, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved and incorporated herein for all purposes. Section 2. That there shall be and is hereby levied for the year 2024 and ordered to be collected, a tax of $0.46120 on each and every ONE HUNDRED DOLLARS ($100.00) of the assessed valuation of all property of every description subject to taxation within the corporate limits of the City of Paris, and that said tax so levied shall be distributed and apportioned as follows: CURRENT EXPENSES: For the payment of CURRENT EXPENSES of the City Government of the City of Paris, on each and every One Hundred Dollars worth of property situated within the corporate limits of City of Paris and subject to taxation a tax of $0.31292 (of which $0.00082 will be for the operation of the Paris Municipal Band) For paying interest and creating a sinking fund for General Obligation Bonds Series 2017, on each and every One Hundred Dollars' worth of property situated within the Corporate limits of the City of Paris and subject to taxation, a tax of $0.02482 For paying interest and creating a sinking fund for Tax Notes 2020 on each and every One Hundred Dollars' worth of property situated within the corporate limits of Paris and subject to taxation, a tax of $0.00779 For paying interest and creating a sinking fund for General Obligation Refunding Bonds Series 2020 on each and every One Hundred Dollars' worth of property situated within the corporate limits of Paris and subject to taxation, a tax of $0.00818 For paying interest and creating a sinking fund for Certificates of Obligation Series 2021 on each and Every One Hundred Dollars' worth of property situated Within the corporate limits of Paris and subject to Taxation, a tax of $0.05003 For paying interest and creating a sinking fund for General Obligation Refunding Bonds Series 2023 on each and every One Hundred Dollars' worth of property situated within the corporate limits of Paris and subject to taxation, a tax of $0.05746 Total Debt Rate $ 0.14828 TOTAL TAX RATE $0.46120 Section 3. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 6.63 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BYAPPROXIMATELY $19.46. Section 4. That the City Tax Assessor and Collector of the City of Paris is hereby directed to assess, extend, and enter upon the rolls of the City of Paris, Texas, for the current taxable year, the amount and rates herein levied and shall be collected as provided by the ordinances and the Charter of the City of Paris, Texas, and the laws of the State of Texas; and when so collected, same shall be distributed in accordance with ordinance. Section S. That all provisions of the ordinances of the City of Paris, Texas in conflict with the provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of the City of Paris not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 6. That the repeal of any ordinance or part of ordinances affected by the enactment of this ordinance shall not be construed as abandoning any action now pending under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any penalty accruing or to accrue, or as affecting any rights of the municipality under any section or provisions of any ordinance at the time of passage of this ordinance. Section 7. That it is the intention of the City Council of the City of Paris that this ordinance, and every provision hereof, shall be considered severable, and the invalidity or partial invalidity of any section, clause, or provisions of this ordinance shall not affect the validity of any other portion of this ordinance. Section 8. That this ordinance shall become effective from and after its passage and publication as required by law. READ, ADOPTED, AND APPROVED BY THE CITY COUNCIL at a special meeting duly called and held at the City Council Chamber, 107 E. Kaufman in the City of Paris on this the 10th day of September 2024 in a record vote as follows: Mayor Mihir "Mark" Pankaj, District 4 Mayor Pro -Tem Gary Savage, District 3 Shatara Moore, District 1 Alix Putnam, District 6 Rebecca Norment, District 5 Mickey Ellis, District 2 Rudy Kessel, District 7 FOR AGAINST Mihir Pankaj, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney