How we got here
During previous budget discussions, the proposed tax rate was split between lowering to $0.419382 per $100 valuation, or going with the rate staff proposed at $0.519382 per $100 valuation.
Council agreed to compromise on the rate bringing it to $0.514382 per $100 valuation Aug. 20. This rate would reduce the budget by $100,000.
While the rate is a decrease compared to the previous budget, property owners may have an increase in property taxes due to increasing home appraisal values.
Staff said the budget was balanced to accommodate the tax rate change.
What’s being done
The new rate would cause a $100,000 postponement to budgeted items, city staff said. These items would be moved from the fiscal year 2024-25 budget and put into the FY 2025-26 budget.
According to the budget presentation, the postponed items include $40,000 for mobile equipment purchases and $60,000 for a parks and recreation vehicle purchase. These items will be added to a future budget.
The approved rate is a decrease from the previous budget cycle, but residents may still pay additional taxes due to increasing appraisal values.
A home valued at $300,000 would pay around $1,543 in annual taxes to the city at the approved rate. The second reading and final approval of the tax rate will be held Sept. 17.
