BACKGROUND/DISCUSSION:
During the budget workshop on the tax rate at the April 7th City Council meeting, tax rate terminology and tax rate options were presented. The Texas Property Tax Reform and Transparency Act of 2019, S.B 2, allows for an increase in the voter approval tax rate from 3.5% to 8% when a local disaster declaration has been made.
On March 20, 2020 Mayor Flippo executed a Declaration of Local Disaster for the City of Saginaw.
The Resolution will authorize the Finance Director to calculate the voter approval tax rate at 8% instead of 3.5%. The City Council is not approving a tax rate at this time. Approval of the resolution will give the City Council the option of approving a tax rate higher than 3.5% and up to 8% when it considers budget and tax rate decisions in August and September.
FINANCIAL IMPACT:
There is no fiscal impact to this decision. The voter approval tax rate is a calculation that must be made and advertised but does not obligate the City Council to approve the rate.
RECOMMENDATION:
Approval of Resolution No. 2020-17 is recommended if the City Council would like the option to approve a tax rate at a level higher than 3.5% during budget deliberations in August and September.