Based on certified property tax rates provided by the Travis Central Appraisal District, the city has a net appraised value of $6.6 million. City staff have presented a potential 7.05% increase over the voter approved rate based on the current COVID-19 disaster provisions.
However, city documents noted increased revenues acquired due to city growth will offset the proposed 7.05% increase, resulting in a lower tax rate compared to the current fiscal year's rate.
While disaster provisions are in place due to COVID-19, some council members voiced concern over the preliminary 7.05% rate increase proposed.
Senate Bill 2 was signed into law by Gov. Greg Abbott in June 2019 and limited how much a city or county can raise increase property tax revenue to 3.5% from the previous year before voter approval is required. Council Member Rudy Metayer said he had "serious concerns" about an increase larger than 3.5%, specifically addressing potential "retroactive actions" enacted by the Texas Legislature when it resumes in January.
City documents outline a proposed funding distribution of $32.94 million for fiscal year 2020-21, which includes a general fund, debt service and a tax increment reinvestment zone, or TIRZ, fund. That $32.94 million price tag is based off a proposed $.4970 per $100 valuation.
However, if Pflugerville City Council pursues a 3.5% rate increase, the city's total proposed tax rate would amount to a budget shortfall of approximately $616,000, based on the current budget proposal.
Council opted to table further discussion on its proposed tax rate until its Aug. 11 meeting, where the city will host its first public hearing for the fiscal year 2020-21 budget. Under its current timeline, Pflugerville will host its second public hearing on its budget proposal Aug. 25 before formal adoption.