The Hutto City Council had a preliminary budget presentation for the upcoming fiscal year at its June 18 meeting, detailing the city's financial outlook and strategic priorities.
What you need to know
Finance Director Alberta Barrett outlined a projected certified property value of approximately $6.4 billion, noting that a drop in existing values may necessitate a higher no-new-revenue tax rate.
Barrett explained that existing property values in the city are lower than they have been in the past. Because these property values are dropping, the no-new-revenue tax rate inherently needs to become higher. Barrett estimated that the no-new-revenue rate will be 0.399627, while the voter approval tax rate is estimated at about 0.431749.
“The existing property values are dropping, and when that happens, your no-new-revenue rate becomes higher,” Barrett said. “So, our existing values are lower than what they have been in the past. That's what supports that understanding that our no-new-revenue rate will increase sales tax.”
A portion of the discussion involved the fiscal impact of establishing a city fire department, which would require an estimated 2.5-cent tax rate increase.
Because the no-new-revenue rate is projected to be around 40 cents, adding the fire department expenses would bring the city's proposed property tax rate to 0.425460. Barrett noted that this combined rate would still fall just below the estimated voter approval rate of 43 cents.
What’s next
This is the first of several budget presentations that will be brought before council. Key dates include a public hearing/meeting on the budget and/or tax rate Sept. 3, and a public hearing/meeting to adopt the budget and/or tax rate Sept. 10, if it is not adopted at the Sept. 3 meeting.
