Southlake is considering a $0.037 reduction in its tax rate for fiscal year 2019-20 to help provide tax relief for residents. If approved, the tax rate would drop from $0.447 per $100 valuation to $0.41 per $100 valuation. This recommendation is part of an overall proposed budget of $104.8 million, which staff presented to City Council at its Aug. 20 meeting. The average market value of a home in Southlake is $777,309, according to the Tarrant Appraisal District’s 2019 report. Compared with the current rate, the proposed rate translates to $288 in annual tax savings for the average homeowner in Southlake. Taxpayers may also qualify for Southlake’s 20% homestead exemption, which would further reduce their city tax rate to $0.328 per $100 valuation—the lowest tax rate offered in the city since the 1980s, Southlake Chief Financial Officer Sharen Jackson said. Southlake’s 20% homestead exemption would yield about $925 in annual tax savings compared to the current rate, according to calculations based on 2019 market values. The proposed tax rate is below the effective tax rate of $0.421665 per $100 valuation, according to a city presentation. The effective tax rate is the rate that will generate the same amount of property tax revenue as the previous year, excluding new construction and annexations. “Understanding that appraisals are constantly an issue of them going up, so to have a new tax rate that’s below the effective rate and still offer the 20% homestead exemption to our residents, which really gives them an extra piece of pie as compared to our commercial properties, I think that’s really important,” Southlake Mayor Laura Hill said in a news release from the city. “Our residents made a huge investment to raise their families here in our community.” As part of budget discussions, city staff outlined future investments that focus on mobility, city facilities, safety, roads and infrastructure, and technology. Two public hearings regarding the proposed FY 2019-20 budget are set for Sept. 3 and Sept. 17. A draft of the budget is available here.