Title
A. Conduct a public hearing regarding the proposed Fiscal Year 2025-26 ad valorem tax rate of $0.730000 per $100 assessed valuation.
B. An ordinance levying the ad valorem taxes for tax year 2025 (Fiscal Year 2025-26) at a rate of $0.730000 per $100 assessed valuation.
Body
This public hearing will allow citizen input on the proposed tax rate. The proposed tax rate is $0.730000 per $100 of assessed valuation.
The attached ordinance sets the City’s 2025 ad valorem tax rate at $0.730000 per $100 of assessed valuation.
Effective January 1, 2016, Senate Bill 1760, enacted by the 84th Texas Legislature, requires at least 60 percent of the members of the governing body of a city to vote in favor of an ordinance setting a property tax rate that exceeds the no-new-revenue tax rate. The proposed tax rate of $0.730000 per $100 of assessed valuation exceeds the calculated no-new-revenue tax rate of $0.695884 and therefore will require at least 60 percent (5 or more) of the City Councilmembers to vote in favor of the proposed tax rate.
The proposed tax rate is higher than the current tax rate of $0.690000.
If the required majority cannot be reached and the governing body fails to adopt the proposed tax rate, then by State law, the City may not adopt a rate that exceeds the voter-approval tax rate of $0.704692.
Recommended/Desired Action
Following the public hearing, staff recommends approval of the ordinance.
A motion must be read at the August 18, 2025, City Council meeting as follows: “I move that the property tax rate be increased by the adoption of a tax rate of $0.730000 per $100 of valuation, which is effectively a 5.8 percent increase in the tax rate.”
Attachment(s)
Ordinance
Drafter
Ted Chinn
Head of Department
Ted Chinn