The voter-approved tax rate is the maximum rate a city may set without needing voter approval. Adoption of the rate will bring the city's tax rate down from $0.4375 per $100 valuation in FY 2021-22 to $0.4280 per $100 valuation. However, this is $0.071 higher than the no-new revenue tax rate—the rate that would produce the same amount of revenue for the city year over year, according to city officials.
During an Sept. 7 workshop meeting, Interim Director of Finance Collin Boothe said he would not feel comfortable with the city adopting anything lower than the voter-approved rate to accommodate items in the budget—additional fire and police officers—as well as any potential economic downturns. All council members said they would approve the proposed tax rate on the agenda for Sept. 8.
Council Member Marsha Porter said during the meeting that the proposed rate is the only tax rate feasible without cutting the fire and police line items in the budget.
"Our backs are against the wall. ... This [tax rate] is a reluctant 'yes' from me," Porter said.
The tax rate will go before the City Council for approval—along with the proposed budget—on Sept. 8 during a regular meeting.