DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: John Woodruff
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Adopting the Maintenance and Operations Tax Rates for FY 2017
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, 2016 and ending on December 31, 2016. The estimated Property Tax Revenue for Maintenance & Operation for FY 2017 is $317,504,778 or $23,809,993 more than the FY 2016 Adopted Budget.
BACKGROUND INFORMATION:
Property tax values are determined by the Bexar Appraisal District (BAD) in conformance with State law. FY2017 total taxable value for the City of San Antonio is $99.2 billion which is an increase in net taxable value of $8.6 billion or 9.55% more than the FY 2016 Adopted Budget. Included in this total is an increase of $1.8 billion for new improvements and an increase of $6.8 billion in existing valuations from the FY 2016 Adopted Budget.
The following table shows the components of the FY 2017 Proposed City Property Tax Rate.
|
CITY PROPERTY TAX RATE (Per $100 Valuation) |
|
|
FY 2016 Adopted Budget (in cents) |
FY 2017 Proposed Budget (in cents) |
|
Maintenance & Operations |
34.677 |
34.677 |
|
Debt Service |
21.150 |
21.150 |
|
Total |
55.827 |
55.827 |
ISSUE:
The City’s FY 2017 Proposed Property Tax Rate of 55.827 cents per $100 valuation represents a consistent rate when compared to the City’s FY 2016 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.”
To meet the requirements of General Fund services recommended in the Proposed Budget, the FY 2017 M&O tax rate is calculated at 34.677 cents per $100 of taxable valuation which represents no change 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 2017 will generate $317,504,778 or $23,809,993 more in revenues for support of City government and represents no change to the City M&O Property Tax Rate as compared to the City’s Property Tax Rate in FY 2016.
RECOMMENDATION:
Staff recommends approval of this item.