From
Brady Olsen, Treasury and Debt Manager
Title
Resolution of the City Council of the City of Grand Prairie, Texas directing the Chief Financial Officer to calculate the City’s Property Tax Rate in accordance with State Law Provisions
Presenter
Becky Brooks, CFO
Recommended Action
Approve
Analysis
As a part of SB2, any city in which a disaster occurs can calculate their tax rate as set for special districts. This would allow the City Council to use the old rollback rate as opposed to the new voter approval rate. This resolution would only direct the CFO to calculate the rate allowed. This would not set a tax rate or even intimate Council has the desire to set a tax rate at the voter approval rate. This is a step that will allow Council greater flexibility to set a tax rate that supports the desired budget.
Financial Consideration
This resolution will allow for greater flexibility in setting the FY 2020/2021 budget as we collect more information on the ongoing financial effects of COVID-19.
Body
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS DIRECTING THE CHIEF FINANCIAL OFFICER TO CALCULATE THE CITY’S PROPERTY TAX RATE IN ACCORDANCE WITH STATE LAW PROVISIONS
WHEREAS, Chapter 26.04 (c-1) of the Tax Code provides an alternative property tax rate calculation methodology for the ‘voter-approval tax rate’ under a declared state of disaster. And, such alternative methodology is to be available for up to three tax years following the disaster, under specific conditions; and
WHEREAS, the Governor of the State of Texas declared the state a disaster proclamation on March 13, 2020 as a result of the COVID-19 Pandemic; and the Mayor declared a similar disaster for the City; and
WHEREAS, The Property Tax Code further requires the governing body to direct a ‘designated officer or employee’ to calculate the rate in this alternative manner, which responsibility in the City falls to the Chief Financial Officer (CFO) in conjunction with Dallas County Tax Assessor; and
WHEREAS, Chapter 26.07(b) of the Property Tax Code, and Chapter 26.013(b)(1) further define implications to the property tax rate process in years subsequent to a disaster and for any “unused increment rate”; and
WHEREAS, The City Council desires to evaluate all possible legally allowable property tax rate alternatives during their budget hearings as they deliberate the needs of the community and the resources expected to be available to pay for those needs; and
WHEREAS, The City Council desires to retain flexibility in setting the final property tax rate for fiscal year FY 2020/2021 and each subsequent period that may be affected by this calculation; and
WHEREAS, the City Council retains the authority to set the final property tax rate at an amount it determines to be in the best interests of the community, as established through all appropriate, legal and required processes.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1: THAT the CFO is the "designated officer or employee" for purposes of Texas Tax Code Chapter 26, and is directed to calculate, or have calculated, the possible property tax rate according to the methodology authorized in the event of a disaster.
SECTION 2: THAT the CFO is further directed to continue to calculate, or have calculated future possible property tax rates for subsequent years according to all methodologies allowed by state law in effect at the time.
SECTION 3: THAT as designated officer, the CFO will also update, or cause to be updated, the appraisal district web pages and any other duties of the designated officer as required in the Tax Code.
SECTION 4: THAT this resolution shall be in full force and effect from and after its passage and approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, IN REGULAR COUNCIL SESSION, THIS 16th DAY OF JUNE, 2020.