The general fund budget is structurally balanced, which means that recurring revenues meet recurring expenditures, according to an Aug. 18 budget presentation.
What residents need to know
The proposed tax rate of $0.4089 is below the no-new-revenue tax rate of $0.4095. A no-new-revenue tax rate is the rate needed to generate the same amount of revenue from the prior year on existing properties. A voter-approved rate is the highest rate that can be adopted without triggering an election, according to the presentation.
The proposed tax rate is below the no-new-revenue, Assistant City Manager Jared Werner said.
Property taxes are paid to the city of New Braunfels, New Braunfels ISD and Comal County but only about 24% of property taxes are paid to the city, the presentation states.
Digging deeper
With 34%, sales tax makes up the most of the city’s revenue in its proposed general fund budget with property taxes making up 27% revenue, according to the presentation.
Also of note
Sales tax and revenue are two of the city’s largest sources of revenue in its general fund—but those revenue sources have stalled. Werner said this proposed budget positions the city well for the economic uncertainty they feel they are navigating.
“We’re seeing the lowest growth in property values since 2013. Sales tax is the city’s number one revenue source and when we look over the last 18 months there’s been a lot of volatilities in relation to sales tax collections,” he said.
Before you go
The city is expected to adopt its budget and tax in September.
- Sept. 4: Public hearing, first reading on ordinance to adopt budget and tax rate
- Sept. 8: Second and final reading of budget and tax rate ordinance and ratification of property tax tax revenue increase
