Richardson City Council approved the $406 million budget and a property tax rate of $0.54218 per $100 of assessed value, the lowest tax rate since 2005, during the Sept. 16 meeting.
The gist
The $406 million budget for 2024-25 is a $7 million increase, 1.8%, compared to the $399 million budget adopted for the 2023-24 fiscal year. Within the overall budget, the general fund’s expenditures are around $180.3 million, a 1.2% increase compared to $178.1 million for the 2023-24 budget.
According to a staff presentation, all Richardson employees will receive up to a 3% raise, while certain fire and police employees will also have their pay adjusted beyond the across the board pay bump. City Manager Don Magner said the wage increases for employees are part of the city’s compensation plan to have all employees make what is considered a living wage.
The tax rate of $0.54218 per $100 of assessed value is broken into two components: $0.32439 per $100 of assessed value for the maintenance and operations component, which covers basic operating expenses and $0.21779 per $100 of assessed value for the interest and sinking rate—which covers debt repayment.
The property tax bill for a homeowner with the average home value of $387,624 is $2,102, according to the staff presentation.
Diving deeper
As part of the budget process, council members approved an updated fee schedule, which includes utility costs, according to city documents.
Per the staff presentation, the updated taxpayer costs include:
- A $132 increase to the property tax bill for a homeowner with the average Richardson home value from $1,970 to $2,102
- A $29 annual increase to a water bill, based on 8,000 gallons of monthly usage between October and May and 18,000 gallons of monthly usage from June to September
- A $14 annual increase to sewer bills based on 98%, or 7,840 gallons, of monthly water usage
- A $1 monthly increase to the residential drainage fee, which is a $12 annual increase
- A $26 annual increase for trash bills
The city’s 2024-25 fiscal year starts Oct. 1, which also coincides with when updated fees take effect. The new property tax rate will impact tax bills received in January 2025.
