City of Hutto shares preliminary budget

“The existing property values are dropping, and when that happens, your no-new-revenue rate becomes higher,” Barrett said. “So, our existing values are lower than what they have been in the past. That's what supports that understanding that our no-new-revenue rate will increase sales tax.”

A portion of the discussion involved the fiscal impact of establishing a city fire department, which would require an estimated 2.5-cent tax rate increase.

Because the no-new-revenue rate is projected to be around 40 cents, adding the fire department expenses would bring the city's proposed property tax rate to 0.425460. Barrett noted that this combined rate would still fall just below the estimated voter approval rate of 43 cents.

What’s next

This is the first of several budget presentations that will be brought before council. Key dates include a public hearing/meeting on the budget and/or tax rate Sept. 3, and a public hearing/meeting to adopt the budget and/or tax rate Sept. 10, if it is not adopted at the Sept. 3 meeting.