Item # 6 - FY 2022-23 Budget & 2022 Ad Valorem Tax Rate

1. 1
CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Robert Galindo, Finance Director
SUBJECT: Ordinances to be adopted in the following order:
1. FY 2022-2023 Operating Budget
2. 2022 Ad Valorem Tax Rate
3. Ratifying the Increase in Property tax revenue reflected in the FY 2022-
2023 Budget
DATE: August 22, 2022
SUMMARY
The Proposed Operating Budget for the FY 2022–2023 establishes the appropriations for the
General Fund, Utility Fund, Debt Service Fund, Capital Projects Fund, Capital Replacement
Fund, Street Maintenance Fund, and Comprehensive Fund. City Council approval of the budget
is required by City Charter.
The City is proposing to adopt a maintenance and operation (M & O) tax rate of $0.326051 per
$100 of taxable value, which is the rate that will produce tax revenues projected in the FY 2022-
2023 Budget. An interest and sinking (I & S) tax rate of $0.062000 per $100 of taxable value is
proposed to fund the debt payment which would be paid by 2022 property taxes. The total
combined tax rate is $0.388051.
Local Government Code Chapter 102 requires that if the adopted budget raises more total
property tax revenue than in the previous year, a separate vote be made to ratify the property tax
increase in the budget. The FY 2022-2023 budget will raise $407,242 more total property taxes
than last year’s budget.
Local Government Code requires cities to adopt a budget before the adoption of the tax rate.
Staff recommends approval of these ordinances in the order presented in accordance with state
law.
BACKGROUND INFORMATION
On August 8, 2022, staff formally presented the proposed budget to the City Council and citizens
of Alamo Heights. The proposed budget document is available on the City’s website. A public
hearing is scheduled for the proposed ad valorem tax rate on August 22, 2021. A budget public
hearing is scheduled on August 22, 2022 at the 5:30 p.m. City Council meeting. The projected
property tax revenue within the FY 2022-23 budget is based on the assumption that the 2022 tax

2. 2
rate will be $0.388051 per $100 valuation. The proposed 2022 maintenance and operation
(M&O) rate will decrease to $0.326051 per $100 valuation and the proposed 2022 Interest and
Sinking (I&S) rate will decrease to $0.062000 per $100 for the debt service to be paid with tax
revenues.
POLICY ANALYSIS
The City Charter Article XIV, Section 2, requires that the City Manager to prepare a budget to
cover all proposed expenditures of the City for the succeeding year and that the budget be
presented to the City Council for consideration and approval. The budget must be prepared in
conformity with state law and a City Council vote is required to set the property tax rate. State
law also requires a separate vote to ratify the property tax revenues increase in the budget.
FISCAL IMPACT
This action will establish an annual operating budget for Fiscal Year 2022-2023.
ATTACHMENTS
Attachment A – Ordinance Adopting FY 2022-2023 Operating Budget
Attachment B – Ordinance Adopting 2022 Ad Valorem Tax Rate
Attachment C – Ordinance Ratifying the Property Tax Revenue Increase in the Budget
______________________
Robert Galindo
Finance Director
______________________
Buddy Kuhn
City Manager

3. Attachment A
ORDINANCE NO. 2192
AN ORDINANCE MAKING APPROPRIATIONS FOR THE
SUPPORT OF THE CITY OF ALAMO HEIGHTS FOR THE
FISCAL YEAR BEGINNING OCTOBER 1, 2022 AND
ENDING SEPTEMBER 30, 2023; AND ADOPTING THE
ANNUAL BUDGET OF THE CITY OF ALAMO HEIGHTS
FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2022
AND ENDING SEPTEMBER 30, 2023
WHEREAS, on the 8th
day of August, 2022, the City Manager of the City of Alamo
Heights, Texas filed with the City Secretary the proposed budget for the City of Alamo Heights,
Texas, for the fiscal year beginning October 1, 2022 and ending September 30, 2023; and
WHEREAS, a public hearing was ordered by the City Council of the City of Alamo
Heights, Texas and a public notice of said hearing was duly posted and published in the San
Antonio Express/News in accordance with applicable state law and the City Council held a
public hearing on August 22, 2022 in the Alamo Heights Council Chambers at 6116 Broadway
and via Zoom; and
WHEREAS, during said public hearing, all interested persons were given the
opportunity to be heard for or against any item or the amount of any item contained in said
budget, after which said public hearing was closed; and
WHEREAS, the City Council, upon full consideration of the budget is of the opinion
that the budget hereinafter set forth is proper and should be approved and adopted.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ALAMO HEIGHTS, TEXAS:
SECTION. 1. Subject to the applicable provisions of state law and the City Charter, the
budget for the fiscal year beginning October 1, 2022 and terminating September 30, 2023, as
filed and submitted by the City Manager, and adjusted by the City Council, containing estimates
of resources and revenues for the year from all of the various sources, and the projects,
operations, activities, and purchases proposed to be undertaken during the year, together with
the estimated costs thereof, and estimated amounts of all other proposed expenditures, is hereby
approved and adopted.

4. Attachment A
SECTION 2. The City Council hereby authorizes the Mayor, and the City Manager to
sign documents authorizing the payment of funds, and to expend public expenditures that have
been expressly approved and appropriated in this budget.
SECTION 3: This ordinance shall become effective immediately after passage.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
ALAMO HEIGHTS, TEXAS THIS 22nd DAY OF AUGUST, 2022.
BOBBY ROSENTHAL, MAYOR
ATTEST:
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
FRANCISCO J. GARZA, CITY ATTORNEY

5. Attachment B
ORDINANCE NO. 2193
AN ORDINANCE LEVYING AN AD VALOREM TAX AT
THE RATE OF $0.388051 FOR EVERY $100.00 VALUATION
FOR THE SUPPORT OF THE CITY GOVERNMENT OF
THE CITY OF ALAMO HEIGHTS, TEXAS, SPECIFYING
SEPARATE COMPONENTS OF SUCH RATE FOR
MAINTENANCE AND OPERATIONS AND FOR DEBT
SERVICE; SAID TAXES BEING LEVIED FOR THE 2021
TAX YEAR; PROVIDING FOR DUE AND DELINQUENT
DATES TOGETHER WITH PENALTIES AND INTEREST;
PROVIDING FOR COLLECTION AND ORDAINING
OTHER RELATED MATTERS; AND SETTING AN
EFFECTIVE DATE.
WHEREAS, the appraisal roll of the City of Alamo Heights, Texas for 2022 has been
prepared and certified by the Bexar County Appraisal District and submitted to the City’s Tax
Assessor/Collector; and
WHEREAS, following notice and public hearing in accordance with applicable state law
and based upon said appraisal roll, the City Council has determined a tax rate to be levied for 2022
Tax Year is sufficient to provide the tax revenues required by the City;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALAMO
HEIGHTS, TEXAS:
Section 1. That there is hereby levied for the 2022 tax year on all property, real, personal
and mixed, within the limits of the City of Alamo Heights, Texas, not otherwise exempt by the
Constitution and laws of the State and the Ordinances of this city, a tax rate on $100.00 valuation
as follows:
$0.326051 for the purpose of maintenance and operation
$0.062000 for the payment of principal and interest on debt of this city
$0.388051 Total tax rate
Section 2. That the Bexar County Tax Assessor-Collector shall collect the tax aforesaid as
provided by law.
Section 3. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE
AND OPERATIONS THAN LAST YEAR’S TAX RATE.

6. Attachment B
Section 4. THE TAX RATE WILL EFFECTIVELY BE INCREASED BY 5.5
PERCENT AND WILL INCREASE TAXES ON THE AVERAGE TAXABLE HOME OF
$751,392 BY APPROXIMATELY $74.00.
Section 5. That all taxes levied by virtue of this Ordinance shall be due and payable not
later than the 31st
day of January 2023, and if then not paid, shall be subject to penalties and interest
in the manner provided by law.
Section 6. That the Bexar County Tax Assessor-Collector is hereby authorized to assess
and collect the taxes of the City of Alamo Heights, Texas, employing the above tax rate.
Section 7. That all ordinances and parts of ordinances in conflict with this ordinance are
hereby repealed to the extent of said conflict.
Section 8. That this ordinance shall take effect immediately upon passage.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
ALAMO HEIGHTS, TEXAS THIS 22nd DAY OF AUGUST, 2022.
BOBBY ROSENTHAL, MAYOR
ATTEST:
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
FRANCISCO J. GARZA, CITY ATTORNEY

7. Attachment C
ORDINANCE NO. 2194
AN ORDINANCE RATIFYING THE PROPERTY TAX
REVENUE INCREASE REFLECTED IN THE FISCAL
YEAR 2022-2023 BUDGET
WHEREAS, Sections 102.005 (b) and 102.007(c) of the Texas Local Government relating
in part to "truth-in-taxation disclosure"), requires a separate vote of the City Council to ratify a
property tax revenue increase, if any, reflected in a newly adopted budget and providing the
necessary disclosure language in the ratification, when there is an increase to the property tax
revenues in the proposed budget as compared to the previous year; and
WHEREAS, the City's 2022-23 Budget has an increase in property tax revenues as
compared to the previous year; and
WHEREAS, as a result of the approval of the 2022-23 Budget, the City Council finds that
it must ratify the increased revenue from property taxes.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ALAMO HEIGHTS, TEXAS THAT:
SECTION 1. The increased revenue from property taxes in the 2022-23 City Budget is
hereby ratified, with the following declaration:
THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST
YEAR'S BUDGET BY $407,242 AS REFLECTED IN THE 2022-2023 FISCAL YEAR
BUDGET ADOPTED ON AUGUST 22, 2022 AND IS HEREBY RATIFIED.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALAMO
HEIGHTS, TEXAS THIS 22nd DAY OF AUGUST, 2022
________________________________
MAYOR
ATTEST:
__________________________________
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
FRANCISCO J. GARZA, CITY ATTORNEY