Page 282 - Saginaw FY20 Annual Budget

TRE-TAX RATE EQUIVALENT: The method of calculating the financial impact of alternate funding
sources in terms of pennies on the tax rate. It helps you determine how much you would need to add or
delete from the tax rate to fund the budget.

TRUTH-IN-TAXATION (TNT): The Texas Constitution and Property Tax Code require taxing units to
comply with certain steps in adopting their tax rates. These truth-in-taxation laws have two purposes.
They are to make taxpayers aware of tax rate proposals and to allow taxpayers, in certain cases, to roll
back or limit a tax increase. Property owners have the right to know of increases in their properties’
appraised value and to be notified of the estimated taxes that could result from the new value. A City
must publish its effective and rollback tax rates before adopting an actual tax rate. They must publish
special notices and hold two public hearings before adopting a tax rate that exceeds the lower of the
rollback rate or the effective tax rate. If a taxing unit adopts a rate that exceeds the rollback rate, voters
may petition for an election to limit the rate to the rollback rate.

TWO IN/TWO OUT: Guideline established by the Texas Commission on Fire Protection requiring that
no less than a team of two firefighters can enter a burning building or structure. In addition, there must
be at least two additional firefighters outside the building in full protective gear that can immediately enter
the building to rescue the entry team in the event they become trapped.

UNDESIGNATED SURPLUS: Excess fund balance that has not been designated to a particular
expense. The Council reviews the undesignated surplus during budget preparation. This is mainly used
for one time capital outlay purchases.

W/WW: Water and Wastewater.

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