05-A thru F - Budget WorkshopAGENDA 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.
PRESENTED BY: Michael E. Malone, City Manager; Larry W. Schenk, City Attorney; and Gene
Anderson, Director of Finance
CO[INCIL DATE: Consider at City Council's August 7, 2003, Regular Meeting.
ADDITIONAL INFORMATION: See enclosed form for publication of notice of public hearing and
attached schedule for budget process.
SUMMARY OF BUDGET AND TAX RATE DEADLINES
THIS SCHEDULE ASSUMES THAT THE BUDGET WILL NOT BE AMENDED: 1. AUGUST 7 - Submit budget to City Council at a City Council meeting; at the same
meeting, give notice of subsequent meeting to vote on tax increase and authorize
preparation of an ordinance raising and setting the tax rate.
2. AUGUST 13 - Publish notice of budget hearing (if held on August 25).
3. AUGUST 13 - Publish notice of hearing on tax rate (i/held on August 25).
4. AUGUST 25 - First date City can hold hearing on budget and tax rate. First date
City can adopt budget.
5. AUGUST 25 - Conduct hearing on budget and tax rate. First date City can adopt
budget; must also give notice of date, time, and place to approve tax increase.
6. SEPTEMBER 8 - First (AND LAST if tax rate hearing held on August 25) day tax
increase can be adopted, assuming 72 hours notice has been published and budget
adopted (can be no sooner than the 30th day after the budget was filed with the City
Clerk and no later than the 14th day after the hearing on the tax rate).
7. SEPTEMBER 26 - Last day to adopt budget.
8. SEPTEMBER 30 - Last day to adopt tax rate.
IF THE BUDGET IS AMENDED: 1. SEPTEMBER 16 - Last day to publish notice of hearing on budget amendments that
add additional items or increase any item of appropriation.
2. SEPTEMBER 26 - Last day to have hearing on budget amendments and adopt
budget.
3. SEPTEMBER 26 - Give new notice of intent to adopt tax rate.
4. SEPTEMBER 30 - Last day to adopt tax rate.
m troller 50-197
~i~~I (Rev. 6-01/7)
Notice of Public Hearing on Tax Increase
The____ will hold a public hearing on a proposal
to increase total tax revenues from properties on the tax roll in the preceding year by
percent. Your individual taxes may increase at a greater or lesser rate,
or even decrease, depending on the change in 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.
The public hearing will be held on at
FOR the proposal:
AGAINST the proposal:
PRESENT and not voting:
ABSENT:
The following table compares taxes on an average home in this taxing unit last year to taxes proposed
on the average home this year. Again, your individual taxes may be higher or lower, depending on
the taxable value of your property.
Last Year This Year
Average residence homestead value $.
General exemptions available
(amount available on the average homestead,
not including senior citizen's or disabled
person's exemptions) $.
Average taxable value $.
Tax rate
Tax $.
Under this proposal, taxes on the average homestead would by $. or
percent compared with last year's taxes. Comparing tax rates without adjusting
for changes in property value, the tax rate would by $ per
$100 of taxable value or percent compared to last year's tax rate. These tax rate
figures are not adjusted for changes in the taxable value of property.
Criminal Justice Mandate (for counties):
The County Auditor certifies that County has
spent $ in the previous 12 months beginning .... for the
maintenance and operations cost of keeping inmates sentenced to the Texas Department of Criminal
Justice. County Sheriff has provided information on these costs, minus the
state revenues received for reimbursement of such costs.
Enhanced Indigent Health Care Expenditures (use if applicable):
The spent $ from to on
enhanced indigent health care at the increased minimum eligibility standards, less the amount of state
assistance. For the current tax year, the amount of increase above last year's enhanced indigent health
care expenditures is