What you need to know
Neeley presented the rate, an increase from the previous preliminary tax rate of $0.3609 per $100 valuation, after receiving certified property values from MCAD. According to the Texas Comptroller’s Office, a no-new-revenue tax rate is "based on a tax rate that would produce the same amount of taxes if applied to the same properties taxed in both years.”
The no-new-revenue tax rate is comprised of a debt service rate of $0.0963 per $100 valuation and a maintenance and operation rate of $0.3305 per $100 valuation, according to the city’s agenda packet. A public hearing is not needed for a no-new-revenue tax rate, officials said.
At the July 14 budget workshop, Neeley stated that the proposed FY 2025-26 property tax revenue would be flat from FY 2024-25 at $1.22 million if a no-new-revenue rate was adopted.
“The rate is different, but we're only collecting the same amount [and] we're not increasing our level of revenue, [but] decreasing the tax rate to match the increase of property values, so that the overall revenue the city brings in will be effectively the same,” Neely said.
According to officials, the projected sales tax revenue for FY 2025-26 is $3.38 million, an increase based on trends from the previous two fiscal years.
What else
City Council also discussed a change in the date public meetings will be posted due to House Bill 1522, which relates to notices for meetings held under the open meetings law. The city will be posting its agendas on the Wednesdays prior to its regular Monday meetings beginning Sept. 1.
What’s next
The FY 2025-26 tax rate and budget will be approved at 7 p.m. Aug. 25 at the Bob Williams Memorial Council Chambers at 27424 Robinson Road, Oak Ridge North.
