HomeMy WebLinkAboutAgenda Packet City Council - 09/28/2017 (SP) Cit`, of Corpus Christi 1201 Leopard Street
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Meeting Agenda - Final
City Council
Thursday,September 28,2017 4:00 PM 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. REGULAR AGENDA:
The following items are motions, resolutions and ordinances that will be considered and
voted on individually. Citizen comments will be limited to three minutes.
1. 17-1229 Ordinance Adopting the Fiscal Year 2018 Property Tax Rate
Ordinance setting a property tax rate of$0.606264 per$100 valuation
which is effectively a 3.11% increase over the effective tax rate; and
declaring an emergency.
Attachments: Agenda Item Adopting the 2018 Ad Valorem Tax Rate 2
Ordinance Adopting the 2018 Ad Valorem Tax Rate 2x
D. ADJOURNMENT
City of Corpus Christi Page 1 Printed on 912 212 01 7
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1852 AGENDA MEMORANDUM
Action Item for the Special City Council Meeting of September 28, 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
Ordinance Adopting the Fiscal Year 2018 Property Tax Rate
CAPTION:
Ordinance setting a property tax rate of $0.606264 per $100 valuation which is
effectively a 3.11% increase over the effective tax rate; and declaring an emergency.
PURPOSE:
Chapter 26.05 of the Tax Code states that a governing body of a taxing unit shall adopt
a property tax rate before the later of September 30 or the 60th day after the date the
certified appraisal roll is received by the taxing unit. This agenda item is in compliance
with the Tax Code and will set the tax rate at $0.606264 per $100 valuation, which was
the rate used to determine the ad valorem tax rate revenue included in the revised fiscal
year 2017-2018 proposed operating budget.
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 voted to adopt the tax rate of $0.606264. However, they also decided to
propose a 2-cent increase to this rate — 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.
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. The 2 public hearings will be held on September 22, 2017 and September 25,
2017.
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.
This agenda item is required to set the property tax rate for fiscal year 2017-2018.
Since the property tax rate of $0.606264 per $100 valuation exceeds the effective tax
rate of $0.587958 per $100 valuation, specific wording is required in the ordinance to
adopt the tax rate. It should be noted that two different percentage "increases" are
noted in the ordinance. The first amount listed in the caption represents the percentage
change between the total proposed tax rate ($0.606264) and the total effective tax rate
($0.587958). The second amount listed in the body of the ordinance represents the
percentage change in the maintenance and operations portion of the proposed tax rate
($0.376806) to the maintenance and operations portion of the effective tax rate
($0.359940). This is in compliance with the specific wording outlined in the Tax Code.
In addition, Chapter 26.05(b) of the Tax Code specifies that for a taxing unit other than a
school district, the vote on the ordinance setting a tax rate that exceeds the effective tax
rate must be a record vote and at least 60 percent of the members of the governing
body must vote in favor of the ordinance. The motion to adopt the ordinance setting a
tax rate that exceeds the effective tax rate must be made in the following form
(customized with the City of Corpus Christi's property tax information):
"1 move that that the property tax rate be increased by the adoption of a tax rate
of$0.606264 per$100 valuation, which is effectively a 3.11% increase in the tax
rate."
Therefore, at the September 28, 2017 City Council meeting, prior to the vote on the tax
rate being taken, a City Council member will need to make the motion noted above
using the exact wording. Once the motion is seconded, then at least 6 members of the
City Council and Mayor will need to vote in favor of the motion for the motion to pass.
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:
Staff is requesting an emergency reading due to the fact that Section 26.06(e) of the
Tax Code specifies 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.
Since the second public hearing was held on September 25th, the soonest a vote could
be taken is the third day after the second public hearing — which is September 28th - the
date of the vote on the property tax rate
DEPARTMENTAL CLEARANCES:
• City Attorney's Office
FINANCIAL IMPACT:
❑ Not Applicable ❑ Operating Expense X Revenue ❑ CIP
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.
LIST OF SUPPORTING DOCUMENTS:
• Ordinance
Ordinance setting a property tax rate of $0.606264 per $100 valuation
which is effectively a 3.11% increase over the effective tax rate; and
declaring an emergency.
WHEREAS, this tax levy is in accordance with the Fiscal Year 2018 operating budget
adopted on September 26, 2017;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. The City Council of the City of Corpus Christi does hereby levy and adopt the
ad valorem tax rate on $100 valuation for this city for tax year 2017 as follows:
$0.376806 for the purpose of maintenance and operation
0.229458 for payment of principal and interest on debt
$0.606264 Total Tax Rate
THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE
AND OPERATIONS THAN LAST YEAR'S TAX RATE.
THE TAX RATE WILL EFFECTIVELY BE RAISED BY 4.69 PERCENT
AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS
ON A $1001000 HOME BY APPROXIMATELY $16.87.
SECTION 2. There is hereby levied, to be assessed and collected in current money of the
United States of America, for the use of the City of Corpus Christi, Texas, for the tax year
2017 and for each succeeding tax year thereafter, until otherwise provided and ordained,
an annual ad valorem tax of $0.376806 on each one hundred dollar value on all property,
real, personal, and mixed, located within the City of Corpus Christi upon which a tax is
authorized to be levied by law and upon all franchises of all individuals, partners, and
corporations holding franchises in the City for defrayment of current expenses of the
government including, but not limited to, street improvements of the City of Corpus Christi.
Said tax shall be assessed upon 100 percent of the market value of property subject
thereto.
SECTION 3. There is hereby levied, to be assessed and collected in current money of the
United States of America, for the use of the City of Corpus Christi, Texas, for the tax year
2017 and for each succeeding tax year thereafter, until otherwise provided and ordained,
an annual ad valorem tax of$0.229458 on each one hundred dollar value on all property,
real, personal, and mixed, and franchises described in Section 2 of this ordinance and
assessed upon 100 percent of the market value of property subject thereto, said taxes to
be appropriated for the purpose of creating a sinking fund to pay the interest and principal
maturities on all outstanding City of Corpus Christi bonds not otherwise provided for and
including the interest, agent fees, and maturities of the following City of Corpus Christi
bonds:
Page 1 of 4
ANNUAL DEBT SERVICE DUE
FY 2017-2018
Principal Interest & Fees Total
2008 Certificates of Obligation $285,000 $5,700 $290,700
2009 General Obligation $3,915,000 $78,300 $3,993,300
2009 Certificates of Obligation $365,000 $28,125 $393,125
2010 General Obligation $600,000 $380,163 $980,163
2010 Certificates of Obligation $130,000 $89,626 $219,626
2010 Combination Tax &
Surplus Airport Certificates of $235,000 $241,400 $476,400
Obligation
2012 General Obligation $1,990,000 $1,710,544 $3,700,544
2012 Combination Tax &
Surplus Airport Certificates of $190,000 $205,600 $395,600
Obligation AMT
2012 Public Property $610,000 $91,574 $701,574
Contractual Obligation
2012A General Improvement $810,000 $129,519 $939,519
(Airport) AMT
2012B General Improvement $50,000 $312,481 $362,481
(Airport) Non-AMT
2012C General Obligation $3,005,000 $3,677,850 $6,682,850
2012D General Obligation $8,720,000 $2,324,168 $11,044,168
2013 General Obligation $3,180,000 $3,436,800 $6,616,800
2014 Public Property $695,000 $162,077 $857,077
Contractual Obligation
2014 Tax Notes $1,140,000 $63,756 $1,203,756
Page 2 of 4
Principal Interest & Fees Total
2015 General Obligation $3,200,000 $3,743,850 $6,943,850
2015 Certificates of Obligation $80,000 $62,863 $142,863
2015 Certificates of Obligation $390,000 $322,599 712,599
(Taxable)
2015 General Improvement
Refunding Bonds (2007A and $0 $2,977,900 $2,977,900
2009
2016A Tax and Limited Pledge $600,000 $583,450 $1,183,450
Certificates of Obligation
2016 General Improvement $1,620,000 $572,700 $2,192,700
Refunding Bonds
2016A General Improvement $599,918 $138,303 $738,221
Refunding Bonds
Total required for FY 2018 $32,409,918 $21,339,348 $53,749,266
debt service
Less: Amount paid from
($6,915,400)
unencumbered fund balance
Less: Transfers for self- ($5,395,324)
supporting debt
Total to be paid from taxes in $41,438,542
FY 2018
In addition to the ad valorem tax levy for debt service totaling $41,438,542, the balance of
this debt, if any, incurred by the City of Corpus Christi shall be funded from sources other
than ad valorem taxes.
SECTION 4. All taxes for the tax year 2017 hereby levied shall be due on receipt of the tax
bill and shall be delinquent if not paid before February 1 , 2018, except as otherwise
provided in the Texas Property Tax Code; and penalty and interest shall be due on any
delinquent taxes as provided by Chapter 33 of the Property Tax Code. No discount shall
be allowed for early payment of taxes. The Texas Constitution, Property Tax Code, and
other applicable laws shall govern all matters related to the taxes levied herein, and the
City shall have all authority thereunder.
SECTION 5. If, for any reason, any section, paragraph, subdivision, clause, phrase, word
or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a
court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision,
clause, phrase, word or provision of this ordinance, for it is the definite intent of this City
Council that every section, paragraph, subdivision, clause, phrase, word or provision of this
ordinance be given full force and effect for its purpose.
Page 3 of 4
SECTION 6. Upon the written request of the Mayor or five Council members, copy
attached, the City Council: (1) finds and declares an emergency due to the need for
immediate action necessary for the efficient and effective administration of City affairs and
(2) suspends the Charter rule that requires consideration of and voting upon ordinances at
two regular meetings so that this ordinance is passed and takes effect upon first reading as
an emergency measure this 28th day of September, 2017.
ATTEST: CITY OF CORPUS CHRISTI
Rebecca Huerta Joe McComb
City Secretary Mayor
day of ' 2017
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance, an
emergency exists requiring suspension of the Charter rule as to consideration and voting
upon ordinances at two regular meetings: I/we, therefore, request that you suspend said
Charter rule and pass this ordinance finally on the date it is introduced, or at the present
meeting of the City Council.
Respectfully, Respectfully,
Joe McComb
Mayor
Council Members
The above ordinance was passed by the following vote:
Joe McComb Ben Molina
Rudy Garza Lucy Rubio
Paulette Guajardo Greg Smith
Michael Hunter Carolyn Vaughn
Debbie Lindsey-Opel
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