On Aug. 5, City Council voted 4-2 to consider a tax rate of $0.530000 per $100 valuation, an increase of $0.015638 from the FY 2024-25 rate of $0.514382 per $100. Council members Phil Vaughan and Bernard Rubal were the two dissenting votes.
The council motion was to create a consensus for a proposed rate, which will officially be voted on at the next council meeting.
What you need to know
The proposed rate is lower than the no-new-revenue rate of $0.534103 per $100, according to a presentation from Finance Director Christine Green.
A no-new-revenue rate is one that would bring in the same revenue as the prior fiscal year for properties taxed in both years, excluding any new property added onto tax rolls, according to the Texas Comptroller.
Every one cent added to the property tax rate would add approximately $200,000 to revenue, with a 1.56-cent increase equating to approximately $312,000, Green said.
According to the presentation, a one cent increase in tax rate results in a change of $0.83 per month per $100,000 in taxable property value. A 1.56-cent increase to the rate means a homeowner of a property valued at $300,000 would see an increase of $3.88 per month, for example.
Green said some items for council to consider with the higher rate included increased demand for additional staffing, the sunsetting of American Rescue Plan funds for police and fire, mental health officers and previous decreases to the total tax rate.
What the council is saying
Council member William Shelby was in favor of the $0.530000 rate and said that large property owners will bear more responsibility with the increase than other citizens.
“I would love to pay less taxes, [but] I’ve had this conversation before, I also don’t want to kick the can down the road, because the farther we kick [it] down the road, the more it costs to fix it. So if I [have to] pay an extra $2.50 [per month] or whatever it comes out to for my property, I’ll pay it,” Shelby said.
Vaughan said he would like to see other options that would not increase the property tax rate, such as taking more money from the city’s venue tax or using alternatives to funding a new city firetruck.
Rubal motioned to consider a lower tax rate, but the motion died for lack of a second. Shelby said there is still a chance to shift the number, with the original motion used to find a council consensus before final passage.
Next steps
The city's tax rate will be officially proposed by council Aug. 19.
