DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Justina Tate
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Ratification of Annual Consolidated Operating and Capital Budgets for FY 2020
SUMMARY:
Following the action taken for adoption of the Annual Operating and Capital Budgets for the City of San Antonio for Fiscal Year 2020, the City Council will consider, through separate ordinance, the ratification of the vote on the Budget to comply with State law.
BACKGROUND INFORMATION:
Texas Local Government Code Section 102.007(c) mandates that a budget that will raise more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax revenue increase reflected in the budget. The Fiscal Year 2020 Budget will raise more revenue from property taxes than the Fiscal Year 2019 Budget, and therefore, it will be necessary for the City Council to ratify its vote adopting the Fiscal Year 2020 Budget.
Property tax values are determined by the Bexar Appraisal District in conformance with State law. FY 2020 net taxable value for the City of San Antonio is $121.1 billion which is an increase in net taxable value of $6.4 billion or 5.6% more than the FY 2019 net taxable value. The net taxable value includes $1.9 billion for new improvements and an increase of $4.5 billion in existing valuations from the FY 2019 Budget.
This budget will raise more total property tax revenue than last year’s budget by $31,278,312 or 5.4%, and of that amount, $10,489,067 is tax revenue to be raised from new property added to the tax roll this year.
Of the $31,278,312 in added property tax revenue, $19,428,557 is proposed to be used in the City’s General Fund to support essential City services such as Police, Fire, Streets, Parks & Recreation and Code Enforcement. The remaining $11,849,755 is proposed to be used for debt service payments on debt issued for capital projects.
ISSUE:
Following the consideration and vote on the City’s Fiscal Year 2020 Budget, the City Council will be required by State Law to ratify their vote on the adoption of the Budget with an additional vote. This ratification vote is required since the Fiscal Year 2020 Budget will raise more revenues from property taxes than was raised by the Fiscal Year 2019 Budget.
ALTERNATIVES:
This item is required by State law.
FISCAL IMPACT:
City Council adoption of this ordinance, which is required by State law, will ratify the adoption of the FY 2020 Operating and Capital Budgets that establish approved expenditures and financial reserve levels. This budget will raise more total property tax revenue than last year’s budget by $31,278,312. Of the $31,278,312 in added property tax revenue, $19,428,557 is proposed to be used in the City’s General Fund to support essential City services such as Police, Fire, Streets, Parks & Recreation and Code Enforcement. The remaining $11,849,755 is proposed to be used for debt service payments on debt issued for capital projects.
RECOMMENDATION:
Staff recommends approval of this item.