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HomeMy WebLinkAboutAgenda Packet City Council - 09/25/2017 (SP) Cit`, of Corpus Christi 1201 Leopard Street rtif 5N11%, City Corpus Christi,TX 78401 forward.cctexas.com i Meeting Agenda - Final City Council Monday,September 25,2017 11:30 AM Council Chambers SPECIAL CITY COUNCIL MEETING Public Notice --THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's Office at 361-826-3105 at least 48 hours in advance so that appropriate arrangements can be made. A. Mayor Joe McComb to call the meeting to order. B. City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers. C. PUBLIC HEARINGS: Members of the audience will be provided an opportunity to comment, however citizen comments will be limited to three minutes. 1. 17-1227 Public Hearing on Fiscal Year 2018 Ad Valorem Tax Rate Attachments: Agenda Memo for Public Hearing regarding FY18 Ad Valorem Tax Rate 2 D. ADJOURNMENT City of Corpus Christi Page 1 Printed on 912 212 01 7 se GO � � fA O H U NCOMB 1ED 1852 AGENDA MEMORANDUM Second Public Hearing for the Special City Council Meeting of September 25, 2017 DATE: September 20, 2017 TO: Margie C. Rose, City Manager THRU: Sylvia Carrillo-Trevino, Assistant City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP@cctexas.com (361) 826-3227 Public Hearing on Fiscal Year 2018 Ad Valorem Tax Rate CAPTION: Public Hearing on Fiscal Year 2018 Ad Valorem Tax Rate PURPOSE: The State Property Tax Code requires that two public hearings be held when a taxing unit proposes a tax rate that exceeds either the rollback rate or the effective tax rate, whichever is lower. Although two public hearings were previously held on August 22, 2017 and August 29, 2019 and the City Council voted to adopt a tax rate of $0.606264 on the scheduled date of September 12, 2017, they also decided to propose a 2-cent increase to the current tax rate on September 12, 2017 — bringing the newly proposed tax rate to $0.626264 per $100 valuation — with the 2 cents being dedicated to residential street reconstruction in accordance with the Charter Amendment that was approved by the voters in November 2016. However at the September 19, 2017 City Council meeting during the discussion of the Fiscal Year 2018 ad valorem tax rate, the City Council decided to maintain the current tax rate of $0.606264 per $100 valuation which is in accordance with the Fiscal Year 2018 proposed operating budget filed with the City Secretary's office on July 28, 2017. BACKGROUND AND FINDINGS: The City of Corpus Christi initially proposed a tax rate of $0.606264 per $100 valuation for fiscal year 2017-2018. At the September 12, 2017 City Council meeting, the City Council adopted the proposed tax rate but also voted to propose an increase of 2 cents to be dedicated to residential street reconstruction in accordance with the newly approved Charter Amendment. Since this amount exceeds the tax rate originally proposed, Section 26(e) of the Property Tax Code indicates that the governing body must give notice of the new rate and begin the process again to hold 2 public hearings prior to the adoption of the tax rate. On Friday, September 15, 2017, a notice of the newly proposed tax rate was published in the Corpus Christi Caller-Times. Section 26.06 of the Property Tax Code indicates that the first public hearing may not be held before the seventh day after the date the notice of the public hearing is given. Therefore, the first date that a public hearing can be held is on Friday, September 22, 2017. Therefore, a special City Council meeting with be called on September 22, 2017 at 11:30 am to hold the first public hearing. The Property Tax Code goes on to say that the second public hearing may not be held earlier than the third day after the date of the first hearing. Therefore, the earliest date that the second public hearing can be held is September 25, 2017. A special City Council meeting will be called on September 25, 2017 at 11:30 am to hold the second public hearing. The Property Tax Code then states that the meeting to vote on the tax increase may not be earlier than the third day or later than the 14th day after the date of the second public hearing. Therefore, the earliest date that the vote for the final adoption of the tax rate can take place is September 28, 2017. A special City Council meeting will be called on September 28, 2017 at 4:00 pm so that the vote for the final adoption of the tax rate can take place. At the September 19, 2017 City Council meeting during the discussion of the Fiscal Year 2018 ad valorem tax rate, the City Council decided to maintain the current tax rate of $0.606264 per $100 valuation which is in accordance with the Fiscal Year 2018 proposed operating budget filed with the City Secretary's office on July 28, 2017. Since the notice of the higher tax rate and public hearing was published in the Corpus Christi Caller-Times on September 15, 2017, the two scheduled public hearings will still be held. In addition, the September 28, 2017 special City Council meeting will also still be held for the purpose of taking final action on the adoption of the Fiscal Year 2018 tax rate of $0.606264 per $100 valuation. ALTERNATIVES: n/a OTHER CONSIDERATIONS: On September 14, 2017, Governor Greg Abbott issued a proclamation granting an extension for Corpus Christi from the deadline that Texas cities have to adopt a budget and property tax rate. The proclamation suspended the September 30th deadline and established a new deadline (for this year only) of October 27, 2017. At the September 19, 2017, the City Council chose to adopt a property tax rate on September 28, 2017 so that the City of Corpus Christi's property tax levy would be included with the consolidated tax bill generated by the office of the Nueces County Tax Assessor- Collector; thus, saving approximately $120,000 from the printing of a separate tax bill for the City of Corpus Christi. CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON-EMERGENCY: • N/A DEPARTMENTALCLEARANCES: • City Attorney's Office • Office of Management and Budget FINANCIAL IMPACT: ❑ Operating Expense X Revenue ❑ Capital ❑Not Applicable Project to Date Exp. Current Future FISCAL YEAR: (CIP Only) Year Years TOTALS Budget - - $ 113,193,005 $ 113,193,005 Encumbered/Expended amount of(date) - - - - This item - $ 113,193,005 $ 113,193,005 BALANCE - - $ - $ - FUND(S): General Fund$70,351,865 Debt Service Fund$42,841,140 COMMENTS: n/a RECOMMENDATION: Staff recommends the City Council approve a property tax rate of $0.606264 per $100 valuation on September 28, 2017. LIST OF SUPPORTING DOCUMENTS: • None