2008_08.07 CC Packet=R A.
Notice is hereby given that a Special Meeting will commence at 5:00 p.m. by the
governing body of the City of Kennedale, Texas, on the 7 day of August 2008 at 405
Municipal Drive, Kennedale Municipal Building, Kennedale, Texas at which time the
following subjects will be discussed to wit:
(SEE ATTACHED NOTICE)
Dated this 4 day of August 2008.
By: Bryan Lankhorst, Mayor
I, the undersigned authority, do hereby certify that the above Notice of Meeting of
the governing body of the City of Kennedale, Texas is a true and correct copy of said
Notice and that I posted a true and correct copy of said Notice on the bulletin board of
City Hall of said City in Kennedale, Texas, a place convenient and readily accessible to
the general public at all times, and said Notice was posted on August 4, 2008 at 4:00 P.M.
and remained so posted continuously for at least 72 hours preceding the scheduled time of
said Meeting.
Persons with disabilities who plan to attend this meeting and who may need
auxiliary aids or services such as interpreters for persons who are deaf or hearing
impaired, readers, large print, are requested to contact the City Secretary's Office at (817)
483 -1296 five (5) work days prior to the meeting so that appropriate arrangements can be
made.
,•��`` "' "" d4his the 4 day of August 2008.
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By. l L
Kathy Tur, er, TRMC
City Secretary
CITY OF KENNEDALE, TEXAS
OFFICE OF THE CITY SECRETARY
COUNCIL MEETING ROLL CALL
DATE: AUGUST 7, 2008
START TIME: PM
END TIME: PM
ROLL CALL:
CITY STAFF PRESENT:
PRESENT
ABSENT
MAYOR, BRYAN
LANKHORST
MAYOR PRO TEM
JOHN CLARK
COUNCILMEMBER
BRIAN JOHNSON
COUNCILMEMBER
JERRY MILLER
COUNCILMEMBER
KELLY TURNER
COUNCILMEMBER
DAVID GREEN
CITY STAFF PRESENT:
PRESENT
ABSENT
CITY MANAGER
BOB HART
CITY SECRETARY
KATHY TURNER
CITY ATTORNEY
WAYNE K. OLSON
STREET SUP.
LARRY HOOVER
POLICE CHIEF
TOMMY WILLIAMS
FIRE CHIEF
MIKE MCMURRAY
DIR. OF FINANCE
CAROLYN MARSHALL
DIR. PUBLIC WORKS
LARRY LEDBETTER
CODE ENFORCEMENT
GLEN GREENWOOD
KEDC DIRECTOR
MIKE SOAB
A l F
405 Municipal Drive, Kennedale, Texas 76060
AGENDA
KENNEDALE CITY COUNCIL
SPECIAL MEETING — AUGUST 7, 2008
405 MUNICIPAL DR. — KENNEDALE MUNICIPAL BLDG.
COUNCIL CHAMBERS
5:00 PM
L REGULAR ITEMS
a. Discuss and consider proposed tax rate; if proposed tax rate will exceed the
rollback rate or the effective tax rate (whichever is lower); take record vote and
schedule two required public hearings.
II. ADJOURNMENT
CITY OF KENNEDALE, TEXAS
OFFICE OF THE CITY SECRETARY
COUNCIL MEETING MINUTE SLIP
DATE: AUGUST 7, 2008
REGULAR ITEMS:
ITEM NUMBER: I -a
MOTION:
COUNCIL MEMBERS MOTION SECOND AYE I NAY ABSTAIN /ABSENT
CLARK
JOHNSON
MILLER
GREEN
TURNER IC
ORDINANCE/RESOLUTION NO. CARRIED
CONTRACT /AGREEMENT NO.
FAILED
Staff R
To the Honorable Mayor and City Council
Date: August 4, 2008
Agenda Item No: I -a
Subject: Discuss and consider proposed tax rate; if proposed tax rate will exceed the rollback rate or
the effective tax rate (whichever is lower); take record vote and schedule required public
hearings.
Originated by: Kathy Turner, City Secretary
Summary: The Texas Constitution and Texas Property Tax Code require taxing units to comply with certain steps
in adopting their tax rates. After receiving the Certified Tax Roll from the Appraisal District the
taxing unit takes the first steps in the tax adoption process. The effective tax rate and rollback tax rate
must be calculated and submitted to the governing body. These rates must then be published in a
local newspaper by August 7 or as soon as practicable thereafter.
The primary purpose of the "Notice of Effective Rate" that is published is to inform taxpayers of the
tax rate that would levy the same amount of taxes as the previous year on properties taxed in both
years (the effective tax rate) and the maximum rate which could be adopted without triggering a tax
rollback election (the rollback tax rate). If a tax rate is adopted that is higher than the rollback rate
voters can petition and call for an election to limit the size of the tax increase.
The calculated tax rates are based on the appraised values received from the Tarrant Appraisal District
on July 25, 2008, and the anticipated collection rate of 98.5% certified by the Tarrant County Tax
Assessor - Collector.
The calculated tax rates for Tax Year 2008 (Budget Year 08 -09) are listed below and are attached for
your review as well.
• Effective Rate $0.673255 per $100
® 2007 Tax Rate $0.722500 per $100
® Rollback Rate $0.737675 per $100
Two public hearings as well as the public notice requirements must be held if the proposed tax rate
exceeds the lower of either the effective tax rate or the rollback rate. The publication of these rates is
scheduled for August 7, 2008.
Recommendation: Recommend City Council move to set a proposed tax rate of $0.722500 (This
rdoes not rrreaara that the unit must aaddol)t this mate, they can work Grekiprarcds off
this rate, but cannot go Bier it.), and schedule two required public hearings:
first one for Thursday, August 21, 2008, and the second one for Thursday,
August 28, 2008 to begin at 7:00 p.m. in the Kennedale City Council
Chambers.
Disposition by Council:
2008 Property Tax Rates in City of I {ennedale 2008
This notice concerns 2008 property tax rates for City of Kennedale 2008. It presents
information about three tax rates. Last year's tax rate is the actual rate the taxing unit
used to determine property taxes last year. This year's effective tax rate would
impose the same total taxes as last year if you compare propertiestaxed in both years.
This year's rollback tax rate is the highest tax rate the taxing unit can set before
taxpayers can start tax rollback procedures. In each case these rates are found by
dividing the total amount of taxes by the tax base (the total value of taxable property)
with adjustments as required by state law. The rates are given per $100 of property
value.
Last year's tax rate:
Last year's operating taxes
$ 2,492,653
Last year's debt taxes
$ 652,191
Last year's total taxes
$ 3,144,844
Last year's tax base
$ 435,272,526
Last year's total tax rate
0.722500 /$100
This year's effective tax rate:
0.069570 /$100
Last year's adjusted taxes
$ 3,140,078
(after subtracting taxes on lost property)
This year's adjusted tax base
$ 466,402,015
(after subtracting value of new property)
= This year's effective tax rate
0.673255 /$100
(Maxinww rate unless writ publishes notices and holds hearings.)
This year's rollback tax rate:
Last year's adjusted operating taxes (after
$ 2,824,075
subtracting taxes on lost property and adjusting
for any transferred function, tax increment
financing, state criminal justice mandate, and /or
enhanced indigent health care expenditures)
This year's adjusted tax base
$ 466,402,015
= This year's effective operating rate
0.605502 /$100
x 1.08 = this year's maximum operating rate
0.653942 /$100
+This year's debt rate
0.153303 /$100
This year's total rollback rate
0.807245 /$100
Sales tax adjustment rate
0.069570 /$100
= Rollback tax rate
0.737675 /$100
Statement of Increase/Decrease
If City of Kennedale 2008 adopts a 2008 tax rate equal to the effective tax rate of
$0.673255 per $100 of value, taxes would increase compared to2007 taxes by
$98,257.
Schedule A - Unencumbered Fund Balances
The following estimated balances will be left in the units property tax accounts at the
end of the fiscal year. These balances are not encumbered by a corresponding debt
obligation.
Type of Pro Tax Fund Balance
DEBT SERVICE $41,000
Schedule B - 2008 Debt Service
The unit plans to pay the following amounts for longterm debts that are secured by
property taxes. These amounts will be paid from property tax revenues(or additional
sales tax revenues, if applicable).
Principal or Interest to be
Contract Payment Paid from Other
Description to be Paid from Property Amounts Total
of Debt Pr operty Taxes__ T to be Paid_ Payment
1999 Aerial Truck $33,805 $9,450 $0 $43,255
Lease
2005 GO Bonds $30,000 $30,950 $0 $60,950
($790,000)
2006 Tax Notes $40,000 $8,918 $0 $48,918
($300,000)
2007 GO Refund $129,675 $99,530 $0 $229,205
($4.365M -
61.75 %)
2007 CO Bonds $20,000 $100,000 $0 $120,000
($2.735M)
2008 CO Bonds $130,000 $117,682 $0 $247,682
($4.5M/ $3M
support)
Total Required for2008 Debt Service $750,010
Amount (if any) paid from funds listed in Schedule A $30,000
Amount (if any) paid from other resources $0
Excess collections last year $0
= Total to be paid from taxes in 2008 $720,010
+ Amount added in anticipation that the unit will $18,462
collect only 97.50% of its taxes in 2008
= Total Debt Levy $738,472
Schedule C - Expected Revenue from Additional Sales Tax
In calculating its effective and rollback tax rates the unit estimated that it will
receive $335,121 in additional sales and use tax revenues
This notice contains a summary of actual effective and rollback tax rate§ calculations.
You can inspect a copy of the full calculations at405 Municipal Drive, Kennedale TX
76060.
Name of person preparing this notice: Clifford Blackwell
Title: Director of Finance
Date Prepared: July 26, 2008
2008 1 of c Rate
E nt it y Na City of Kennedale 20
2007 taxable value, adjusted for court- ordered reductions,
Enter Line 6 of the Effective Tax Rate Worksheet
2. 2007 total tax rate.
Enter Line 4 of the Effective Tax Rate Worksheet.
3. Taxes refunded for years preceding tax year2007.
Enter Line 13 of the Effective Tax Rate Worksheet
4. Last year's levy.
Multiply line 1 times line 2 and divide by 100.
To the result, add line 3.
5. 2008 total taxable value.
Enter Line 19 of the Effective Tax Rate Worksheet
6. 2008 effective tax rate.
Enter Line 24 of the Effective Tax Rate Worksheet or line 46 of
the Additional Sales Tax Rate Worksheet.
7. 2008 taxes if a tax rate equal to the effective tax rate is adopted
Multiply line 5 tunes line 6 and divide by 100.
8. Tax Increase (Decrease).
Subtract line 4 from line 7.
Date: 7/30/2008
$435,133,092
0.722500
$1,008
$3,144,844
$481,704,656
0.673255
$3,243,101
$98,257
9
Section 26.05(b) of Property Tax Code
Worksheet for Determination of New Steps Required for Adoption of Tax bate
Entity Name: City of Kennedale 2008 Date: 7/30/2008
Moe-f) Tax Increase in Current Year:
1 :ast year's taxable value, adjusted for $435,133,092
court- ordered reductions. Enter Line 6 of the
Effective tax rate worksheet
2.
Last year's M &O tax rate. Enter Line 26 of the
0.572665
Rollback Tax Rate Worksheet.
3.
M &O taxes refunded for years preceding tax
$877
Effective M &O Tax Rate. Enter Line 30 of
year 2007. Enter Line 28E of the Rollback
Rollback Tax Rate Worksheet.
Tax Rate Worksheet.
13.
4.
Last year's M &O tax levy. Multiply
$2,492,731
This year's rate minus effective rate Subtract
line 1 times line 2 and divide by 100.
12 from line 13.
To the result, add line 3.
Raised M&O Taxes on $100,000 Home:
5.
This year's total taxable value. Enter line
$481,704,656
$100,000
19 of the Effective Tax Rate Worksheet
Last year's M &O tax rate:
6.
This year's proposed M &O tax rate.
0.569197
0.569197
Enter proposed M &O tax rate approved
This year's raised M &O taxes:
($3.47)
by Governing Body.
7.
This year's M &O tax levy. Multiply
$2,741,848
line 5 times Line 6 and divide by 100.
8.
M &O tax increase (decrease)
$249,117
Subtract line 4 from line 7.
Comparison of Total Tax Rates:
sffective Total Tax Rate.
0.673255
10.
This year's proposed total tax rate
0.722500
11.
This year's rate minus effective rate Subtract 9
0.049245
from line 10.
Comparison of M &O Tax Rates:
12.
Effective M &O Tax Rate. Enter Line 30 of
0.605502
Rollback Tax Rate Worksheet.
13.
This year's proposed M &O tax rate
0.569197
14.
This year's rate minus effective rate Subtract
(0.036305)
12 from line 13.
Raised M&O Taxes on $100,000 Home:
15.
This year's taxable value:
$100,000
16.
Last year's M &O tax rate:
0.572665
17.
This year's proposed M &O tax rate:
0.569197
18.
This year's raised M &O taxes:
($3.47)