16 & 17 - BUDGETItem Nos. 16 & 17
memorandum
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: BUDGET
DATE: August 17, 2015
BACKGROUND: We have discussed the 2015 -16 in multiple meetings over the last few
months, and I presented a draft budget on August 10 to the city council. The budget I presented
includes some new equipment, one -half of a new employee, some increases in compensation,
and some progress on safety and communications equipment in Fire. At this point it still
includes tax funding (within the existing $0.50195 rate) to pay debt on $2.5 million in
certificates of obligation. It does not include some of the raises for public safety we have
discussed, and I still think these raises are important enough to increase the tax rate by at least a
penny. A total tax rate of $0.51195 would generate approximately $150,000, at a cost of about
$7.47 per year for the average property owner. A recently as 2013 the total tax rate was
$0.51107, and it was $0.52000 in 2012.
STATUS OF ISSUE: We do need a decision very quickly on the CO issuance and on the total
tax rate. As you recall, although cities usually talk about a single tax rate, legally we adopt two
rates each year, one for debt service (I &S) and one for operations and maintenance (O &M). We
need to know what rate(s) the council intends to consider in formal hearings in September to be
able to advertise consistently with state law. For example, right now the I &S rate (proposed at
$.08854) is based on selling the COs; if the council decides not to do that, the money cannot
simply be moved over to O &M (proposed at $0.41341). If it is collected for debt, it must be
used for debt.
The council will have a special meeting on Mondayy August 31 to make any changes and discuss
the budget as needed. As always I encourage the council to provide general direction and policy
guidelines as much as possible in lieu of an unproductive line by line review. The budget is
schedule to be adopted on September 21.
BUDGET: NA at this time.
RECOMMENDATION: Call for public hearings on the budget and tax rates on September 8
and 14, and provide additional direction and clarification to staff.
Draft
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, CALLING A PUBLIC HEARING FOR SEPTEMBER 8, 2015 ON
THE CITY MANAGER'S PROPOSED BUDGET FOR FISCAL YEAR
2015 -2016; MAKING OTHER FINDINGS AND PROVISIONS RELATED
TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Manager of the City of Paris has submitted to the City
Council at a regular meeting convened on the August 10, 2015, the City Manager's
proposed budget for Fiscal Year 2015 -2016 as directed by Section 45 of the Charter of
the City of Paris; and,
WHEREAS, on August 18, 2015, the City Manager filed his proposed budget for
Fiscal Year 2014 -2015 with the City Clerk of the City of Paris in accordance with,
Section 102.005(a) Tex. Loc. Govt. Code and the City Charter; and,
WHEREAS, in accordance with Section 50 of the City Charter, a public hearing
must be held giving all interested persons an opportunity to be heard for or against
any item or the amount of any item in the proposed budget for Fiscal Year
2015 -2016; and,
WHEREAS, said public hearing shall be held on the 8th day of September,
2015, at 5:30 p.m., which date is at least fifteen (15) days after the date the proposed
budget was filed with the City Clerk, in accordance with Vernon's Texas Codes
Annotated, Local Government Code, Section 102.006(b);
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are
hereby in all things approved.
Section 2. That public hearing be, and the same is hereby, called for the 8th
day of September, 2015, at 5:30 p.m. in the City Council Chamber, 107 E. Kaufman
Street, Paris, Texas, for the purpose of hearing written and oral comments from the
citizens of Paris concerning the City Manager's proposed annual budget for fiscal year
2014 -2015.
Section 3. That the City Clerk of the City of Paris publishes notice of said
public hearings in the Paris News no less than five (5) days prior to September 8th,
2015.
PASSED AND ADOPTED this 24th day of August, 2015.
Sue Lancaster, Mayor Pro -Tem
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
Draft
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, CALLING TWO PUBLIC HEARINGS TO RECEIVE PUBLIC
COMMENT ON THE CITY'S PROPOSED PROPERTY TAX RATE FOR
FISCAL YEAR 2015 -2016; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on August 10, 2014, the City Manager of the City of Paris presented
his proposed budget for Fiscal Year 2015 -2016 which would require a tax rate of
.50195 per $100 of value to fund a balanced budget as required by Section 59 of the
Charter of the City of Paris; and,
WHEREAS, in accordance with Section 140.010 of the Texas Local
Government Code, two public hearings must be held at which the City Council must
afford adequate opportunity for proponents and opponents of the proposed tax rate
to present their views; and,
WHEREAS, the first public hearing on the proposed tax rate shall be at 5:30
p.m. on September 8, 2015 and the second public hearing shall be at 5:30 p.m. on
September 14, 2015, in the City Council Chamber, 107 E. Kaufman Street, Paris,
Texas;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are
hereby in all things approved.
Section 2. That a public hearing be, and the same is hereby, called for
September 8, 2015, at 5:30 p.m. and September 14, 2015, at 5:30 p.m., in the City
Council Chamber, 107 E. Kaufman Street, Paris, Texas, for the purpose of hearing the
views of proponents and opponents to the City's proposed tax rate for Fiscal Year
2015 -2016.
Section 3. That the City Clerk of the City of Paris shall publish notice of said
public hearings substantially in accordance with the Notice of 2015 Tax Year
Proposed Property Tax Rate attached hereto and incorporated herein as Exhibit "A ",
in the Paris News on or before the 27th day of August, 2015, setting forth the date,
time and place of said public hearings.
Section 4. That this resolution shall be effective from and after its date of
passage.
PASSED AND APPROVED this 24th day of August, 2015.
Sue Lancaster, Mayor Pro -Tem
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
50- 8 19
(OS -74/2)
NOTICE OF 2015 TAX YEAR
PROPOSED PROPERTY TAX RATE FOR
City of Paris
A tax rate of $ .50195 per $100 valuation has been proposed for adoption by the governing body of
City of Paris . This rate exceeds the lower of the effective or rollback tax rate,
and state law requires that two public hearings be held by the governing body before adopting the proposed tax rate.
PROPOSED TAX RATE
$
.50195
per $100
PRECEDING YEAR'S TAX RATE $
.50195
per $100
EFFECTIVE TAX RATE
$
.49854
per $100
ROLLBACK TAX RATE
$
.62945
per $100
The effective tax rate is the total tax rate
needed to raise
the same
amount of property tax revenue for
City of Paris
from the same properties in both the 2014 tax year
and the 2015 tax year.
The rollback tax rate is the highest tax rate that City of Paris may adopt before
voters are entitled to petition for an election to limit the rate that may be approved to the rollback rate.
YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS FOLLOWS:
property tax amount = ( rate ) x ( taxable value of your property) / 100
For assistance or detailed information about tax calculations, please contact:
Gene Anderson
City of Paris
135 S. E. First Street Paris, Texas 75460
903 - 784 -9241
ganderson @paristexas.gov
www.paristexas.gov
tax assessor - collector
You are urged to attend and express your views at the following public hearings on the proposed tax rate:
First Hearing: September 8, 2015 at City Council Chambers 107 E. Kaufman Street
Second Hearing: September 14, 2015 at City Council Chambers 107 E. Kaufman Street