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Home My WebLink About2019-09-17 Special Meeting MinutesANNACITYCOUNCIL MINUTES SPECIAL MEETING September 17, 2019 The City Council of the City of Anna met in a Special Meeting on the above date at Anna City Hall, located at 111 North Powell Parkway (Hwy 5), to consider the following items. Call to Order. Mayor Pike called the meeting to order at 6:33 p.m. All Council Members were present. 2. Invocation and Pledge of Allegiance Mayor Pike led the invocation and pledge. 3. Consider/Discuss/Action approving an Ordinance adopting the 2019 Tax Rate (Finance Director Dana Thornhill) The FY 2020 budget can be funded by adopting a tax rate of $0.591288 cents per $100 valuation. Of the total tax rate, $0.451540 cents are dedicated to the general fund maintenance and operations (M&O) and $0.139748 cents are dedicated for the payment of general fund debt obligations, or interest and sinking (I&S). State regulations require specific language to be included in the ordinance and motion adopting the tax rate. The language in the motion is meant to reflect the change in the total tax rate while the language in section 5 of the ordinance only reflects the change in the M&O portion of the rate. The M&O rate exceeds the effective rate by 16.11 % and is equivalent to the 2018 adopted rate resulting in a $23.42 increase on a $100,000 home. As the proposed rate exceeds the effective rate of $0.536478 the motion must be made in the following form: "I move that the property tax rate be increased by the adoption of a tax rate of $0.591288, which is effectively an 10.10% percent increase in the tax rate." In addition to statutory requirements for the language of the motion to adopt the tax rate, Senate Bill 1760, which was passed during the most recent legislative session, requires 60% of the Council to vote in favor of a tax rate that exceeds the effective rate. This means that 5 members of the Council must vote in favor of the motion to pass the $0.591288 rate. Council discussed the rate and possible lower rate. Council discussion ensued. A ORDINANCE LEVYING PROPERTY TAXES FOR USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF ANNA FOR THE 2019-2020 FISCAL YEAR; PROVIDING FOR AN INTEREST AND SINKING FUND FORALL OUTSTANDING DEBT OF THE CITY OF ANNA; PROVIDING FOR APPORTIONING EACH LEVY FOR THE SPECIFIC PURPOSES; AND, PROVIDING WHEN TAXES SHALL BECOME DUE AND WHEN SAME SHALL BECOME DELINQUENT IF NOT PAID. MOTION: Mayor Pike moved that the property tax rate be increased by the adoption of a tax rate of $0.591288, which is effectively an 10.10% increase in the tax rate. Council Member Toten seconded. Motion carried 6-1 Miller opposed. Council Member Miller left the meeting. 4. Consider/Discuss/Action regarding a Resolution ratifying the property tax revenue increase reflected in the City of Anna FY 2019-2020 Budget (Dana Thornhill Finance Director) Section 102.007 of the Local Government Code states that "adoption a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget". The budget is funded by a tax rate of $0.591288, which equivalent to the tax rate adopted last year. The total amount of revenue generated from property taxes will increase by $1,091,680, which is a 16.48 percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $442,884. A RESOLUTION OF THE CITY OF ANNA, ACKNOWLEDGING AND RATIFYING THAT THE ADOPTION OF THE FISCAL YEAR 2019-2020 ANNUAL BUDGET WILL REQUIRE RAISING MORE REVENUE FROM PROPERTY TAXES THAN IN THE PREVIOUS FISCAL YEAR MOTION: Mayor Pike moved to approve. Council Member Toten seconded. Motion carried 6-0. 5. Consider/Discuss/Action approving an Ordinance adopting the FY 2019-2020 Budget (Dana Thornhill Finance Director) The Annual Budget and Plan of Municipal Services is the most important document adopted by the City Council each year. The Annual Budget is developed through an extensive process of reviewing requests received from various City departments then prioritizing those requests in a manner that utilizes resources effectively, within fiscal constraints, while working to achieve goals set forth by the City Council. The final draft budget was presented to the City Council on August 13th and was posted on the City's website on August 14th. Public hearings on the proposed budget and tax rate were conducted on September 3rd and September 10th The FY 2020 budget is funded with a tax rate of $0.591288 per $100 in taxable which is the same as the tax rate adopted last year. When compared with other cities in our area, the City of Anna has one of lowest average household property tax levies. While budgets are always a challenge, we have worked diligently to propose a budget that is both balanced and sufficient to meet the needs of the coming fiscal year. We express our appreciation to the City Council for their diligent efforts throughout the year in providing guidance, direction and support for our efforts to serve the citizens of Anna. As Anna continues to grow, the city remains committed to the its Strategic Vision. The 2019-20 fiscal year budget is designed to preserve and enhance the quality of existing services and respond appropriately to our city's continuing growth and development. AN ORDINANCE MAKING APPROPRIATIONS FOR THE SUPPORT OF THE CITY OF ANNA FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2019 AND ENDING SEPTEMBER 30, 2020; APPROPRIATING MONEY TO AN INTEREST AND SINKING FUND TO PAY INTEREST AND PRINCIPAL ON THE CITY'S INDEBTEDNESS; AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF ANNA FOR THE 2019 — 2020 FISCAL YEAR. MOTION: Mayor Pike moved to approve. Council Member Beazley seconded. Motion carried 6-0. 6. Adjourn. Approved on the 5:00 /. Sep em er 24, 2019. G<G� \``\ ++WtaNyr Nate Pike OF•AAV ATTEST: �'<; •• 9 City Secretary Carrie L. Smith •• c�