DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Maria Villagomez
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Adopting the Maintenance and Operations Tax Rates for FY 2016
SUMMARY:
This item presents for City Council consideration an ordinance adopting the Ad Valorem City Property Tax Rate for Maintenance and Operation (M&O) for the City of San Antonio at 34.677 cents per $100 of taxable valuation for the tax year beginning on January 1, 2015 and ending on December 31, 2015. In FY 2016 the City of San Antonio proposes a decrease to the City’s Property Tax Rate of ¾ of one cent. The Estimated Property Tax Revenue for Maintenance & Operation for FY 2016 is $293,694,785 or $25,217,021 more than the FY 2015 Adopted Budget.
BACKGROUND INFORMATION:
Property tax values are determined by the Bexar Appraisal District (BAD) in conformance with State law. FY 2016 total taxable value for the City of San Antonio is $90.59 billion which is an increase in net taxable value of $10.8 billion or 13.5% more than the FY 2015 Adopted Budget. Included in this total is an increase of $2.25 billion for new improvements and an increase of $8.56 billion in existing valuations from the FY 2015 Adopted Budget.
A reduction in the City’s Property Tax Rate for Maintenance & Operations is included in the City’s FY 2016 Proposed Budget. The following table shows the components of the FY 2016 Proposed City Property Tax Rate.
|
CITY PROPERTY TAX RATE (Per $100 Valuation) |
|
|
FY 2015 Adopted Budget (in cents) |
FY 2016 Proposed Budget (in cents) |
|
Maintenance & Operations |
35.419 |
34.677 |
|
Debt Service |
21.150 |
21.150 |
|
Total |
56.569 |
55.827 |
ISSUE:
The City’s FY 2016 Proposed Property Tax Rate of 55.827 cents per $100 valuation represents a decrease of ¾ of 1 cent compared to the City’s FY 2015 Adopted Property Tax Rate.
State property tax law requires taxing units to calculate the M&O portion of the tax rate to yield the same amount of operating revenue from year to year based on base valuations. This calculation of the M&O tax rate results in determination of the “effective M&O tax rate.” A decrease in the City’s Property Tax rate is proposed.
To meet the requirements of General Fund services recommended in the Proposed Budget, the FY 2016 M&O tax rate is calculated at 34.677 cents per $100 of taxable valuation which represents a reduction of ¾ of one cent for the City’s M&O Property Tax Rate.
ALTERNATIVES:
This item is required by City Charter.
FISCAL IMPACT:
The M&O tax rate for FY 2016 will generate $293,694,785 or $25,217,021 more in revenues for support of City government and represents a decrease to the City M&O Property Tax Rate as compared to the City’s Property Tax Rate in FY 2015.
RECOMMENDATION:
Staff recommends approval of this item.