PAMPA, Texas — City staff led a detailed discussion on Aug. 11 of Pampa’s property tax calculations and the Truth in Taxation process, recommending the commission propose a tax rate at or below the voter-approval rate.

The presentation, led by Theresa (identified in the meeting as the staff lead on tax rates), explained why the city sets a proposed tax rate after preparing a budget and outlined the statutory steps for comparing certified property values year to year.

Why it matters: The tax rate the commission sets determines city revenue for core services, debt service and the library, and interacts with state rules and local exemptions that affect homeowners.

Theresa told the commission that certified net taxable values were reported to the city (the staff presentation listed the certified net taxable value as $875,000,002.75) and that the proposed tax rate under consideration was the voter-approval rate with unused increment of 0.703304. Staff projected estimated ad valorem collections of $5,775,000 and an estimated net ad valorem tax for the general fund, library and debt service of $5,756,004.90.

She reviewed Truth in Taxation concepts used by cities: the “no new revenue” rate (the rate that would generate the same total revenue as the prior year after accounting for new improvements and changes), the voter-approval rate (3.5% above the no-new-revenue rate), and the de minimis rate for smaller cities (an additional statutory allowance tied to population and a revenue increment). Theresa noted the city had chosen a policy of proposing a tax rate at or below the voter-approval rate to avoid triggering an automatic election.

Staff also explained the city’s senior (65-and-older) tax freeze and its fiscal effects: taxes lost to the freeze were listed in the presentation as $322,503 and the subsidized rate for frozen property was shown as 0.504 compared with the proposed 0.703304. The downtown tax increment financing zone’s increment was noted as a deduction from ad valorem receipts for eligible TIF expenditures (presentation figure: $18,519).

Theresa highlighted the distribution of the proposed 0.703304 rate: a maintenance and operations (M&O) general fund rate of 0.467435, a library rate of 0.030000 and an interest-and-redemption (debt) rate of 0.205869. She reminded the commission that the city charter requires two readings of ordinances, which affects scheduling and deadlines in the budget/tax-rate process.

Staff outlined next steps: file the proposed budget with city staff on Wednesday, publish required notices and publish the proposed budget in the local newspaper on Saturday as part of the statutorily required notice process. Theresa also warned commissioners that the proposed rate can be lowered between proposal and final adoption but cannot be increased above the voter-approval rate once set.

No formal vote to set the final tax rate was taken at the meeting; the city will return for the adoption steps required by state law and the city charter.

Key quote: “Our city has determined that we would like to stay not to exceed the VAR, which is the voter approval rate,” Theresa told the commission.