Commissioners are expected to adopt a property tax rate of $0.04 or less per $100 valuation at their Sept. 26 meeting. The current property tax rate is $0.04436 per $100 valuation.
What’s happening
ESD officials at their Aug. 22 meeting said the district’s tax base is expected to increase by about 11% year over year due to new property in the district and changes to the values of existing property. This means the “no-new-revenue tax rate” of $0.042481 per $100 valuation would actually bring in an additional $1.58 million year over year.
Commissioner David Langenberg proposed a $0.04 per $100 valuation tax rate for a true net zero increase in new revenue compared to FY 2023-24’s tax collections, resulting in just over $25 million in revenue for the district.
An alternative proposal from Commissioner Kevin Stertzel recommended a $0.037697 per $100 valuation tax rate to offset $6.8 million in interest income received this year. This proposal would result in about $23.65 million in property tax collection, he said.
“What that proposal does is essential shares that interest income—$3 million of it—with our taxpayers who are struggling,” he said, also noting year-to-date expenses are under budget and sales tax collection in 2023-24 has exceeded projections so far.
What you need to know
The owner of a home valued at $350,000 with no homestead exemptions would pay:
- $140 per year under Langenberg’s $0.04 per $100 valuation proposal
- $131.94 per year under Stertzel’s $0.037697 per $100 valuation proposal
The board will vote to approve the FY 2024-25 property tax rate at their Sept. 26 meeting, which will include a public hearing allowing residents to share feedback. The meeting is at 6 p.m. at the Cy-Fair Fire Department Administration Office, 10710 Telge Road, Houston.
The CFFD’s operations are funded by both property taxes and a 1% local sales tax. Demand for the department’s services has increased by about 48% since 2019, according to data presented at a Cy-Fair Houston Chamber of Commerce luncheon Aug. 20.
During the Aug. 22 meeting, Fire Chief Amy Ramon said the department has $126 million in reserves to cover new stations planned to be built over the next five to 10 years. She said the last station built cost $10 million, but construction costs are expected to be higher moving forward. Additionally, ladder trucks cost about $2.4 million, and fire engines are now $1.5 million.
