The details
Although the Bastrop City Council could adopt a property tax rate of $0.5392 without needing voter approval, staff is recommending adopting the no-new-revenue tax rate of $0.5179.
The no-new-revenue tax rate is the rate that would generate the same amount of property tax revenue in the current and upcoming tax year, not including new construction or annexations, while the voter-approval tax rate is the maximum rate a city can adopt without an election.
What we know
Bastrop City Manager Sylvia Carillo-Trevino explained how a decrease in home values would contribute to Bastrop residents having a lower tax bill.
“In 2024, the average resident had a home value of $335,116. That meant you would have received a bill from the city of Bastrop for $1,674,” she said during the meeting Aug. 12. “In 2025, the average home value dropped to $309,839. So at the no-new revenue rate of $0.5179, your tax bill should be $1,605, which is an actual reduction of about $69.”
Mayor Pro Tem John Kirkland emphasized how he favors the no-new revenue tax rate.
“There are politicians out there that will tell you that every year they were in office, they lowered your tax rate,” he said. “But the thing is, the amount that you pay in taxes is the valuation of your house times the tax rate. So if the value of your house goes up by 10% and they lower the tax rate by only 5%, then they have increased the amount of money that you have to pay in taxes.”
He noted that some houses might go up in value while some houses might go down.
“But on the whole, the total amount of money that we are receiving in taxation is the same from last year to this year on the same list of properties,” Kirkland said. “That is the true and accurate and detailed definition of not raising your taxes, and I just wanted to point that out.”
The specifics
Carillo-Trevino listed other key budget assumptions, including:
- A 1% increase in sales tax
- A 10% increase in hotel occupancy taxes
- A personnel addition in human resources, fleet and facilities, and finance
- Debt reductions of $773,000 from overcollection in fiscal year 2024-25
Carillo-Trevino called the financial outlook for Bastrop “bright.”
“The pent up demand for the development and growth in the area is beginning to pick up speed,” she said. “Additional reductions in the interest rate by the Federal Reserve are expected in the fall and to continue into next year. Many developers have been sidelined waiting for rates to drop before breaking ground.”
Also of note
Carillo-Trevino recommended a hearing be set for Sept. 9.
“I look forward to sharing this information with you and the residents in the coming weeks, and until adoption,” Carillo-Trevino said in a letter to Bastrop City Council.
