City Of Coppell Publishes Proposed Tax Rate And Truth In Taxation Notice

From City of Coppell:

Per City Charter, the proposed City of Coppell Fiscal Year 2020-2021 budget was filed with the City Secretary on August 5. The proposed budget includes a tax rate of $0.58400 per $100 valuation, which is the same rate the City of Coppell levied last year. The proposed budget is now available for public review at coppelltx.gov/budget. As a result of the unexpected, coronavirus-related delays, this proposed budget and tax rate are based on the most current information available, the certified estimated property values. This proposed budget and tax rate are not based on final values, and they will be adjusted once certified values are made available to the City.

"We were pleased to present the City Council with a proposed budget that maintains the current tax rate while funding all of the necessary public safety and maintenance projects that keep neighborhoods and businesses safe and providing all of the high-quality services that Coppell residents expect," said City Manager Mike Land. "It is important to note, however, that we are anticipating final certified values from the appraisal district. Once the certified values are received, staff will revise the budget as needed before presenting it to City Council for approval."

This year, residents can also expect to see a few changes in how tax rate information is presented to the public. As part of Senate Bill 2, Texas municipalities are required to present additional tax rate information to the public. The City is presenting this information for transparency purposes, but only the proposed rate will be presented to City Council for approval.

"Senate Bill 2 provides us with a great opportunity to help residents understand how we use taxpayer monies," continued Land. "This year, residents can expect to see three different tax rates presented: the City's proposed rate, the no new revenue rate, and the voter approval rate. All of these rates are based on the most current information we have – the certified estimated property values."

The proposed tax rate, $0.58400 per $100 valuation, is the rate that the City has determined will raise the necessary revenue to fund public safety, public works and quality of life projects that residents desire. This is the rate that the City plans to present to City Council for approval.

The no new revenue rate, which has historically been referred to as the effective rate, is the property tax rate that the city would need to set to not generate any additional revenue from the same property over the previous year. Using the most current information available, the certified estimated property values, the City of Coppell's no new revenue rate will be published as $0.638729 per $100 valuation.

Finally, the voter approval rate, which will be published as $0.654106 per $100 valuation, represents the tax rate at which City Council would need to call an election to allow for voter approval. Under Senate Bill 2, the City Council must call an election if the proposed tax rate generates more than a 3.5% increase in revenue from existing property, not including new growth. The voter approval rate was also calculated using certified estimated values, not final numbers.

"We know that some of the new tax rate terms might be a bit confusing, and we know that the numbers seem strange this year," said Land. "The presentation of information is new this year as a result of Senate Bill 2, and then the pandemic hit and made things more confusing. We're thankful for the thoughtful and proactive planning that the Council and staff completed during their budget efforts to date that placed our community in a strong position to be flexible and agile as we work with the appraisal district to finalize the certified values and present an updated budget and tax rate to City Council for approval on September 15."

For more information on the budget, visit coppelltx.gov/budget.

This press release was produced by City of Coppell. The views expressed here are the author’s own.