Pecos City council adopts proposed de minimis property tax rate of 0.44259

Pecos City council members at a special meeting on Monday, Aug. 11, 2025, voted to approve the 2025 property tax rate calculation and set a proposed de minimis property tax rate of 0.44259 per $100 of assessed valuation. The council made the motion and recorded a voice vote to adopt the calculation and proposed rate as the basis for the city’s draft 2025 budget.

The proposed rate is the de minimis rate allowable for Texas cities with populations under 30,000 and exceeds the no-new-revenue and voter-approval rates calculated for Pecos this year. Assistant City Manager Heather Ramirez, who presented the tax calculation worksheet provided by the Texas Comptroller’s office, said the de minimis rate was the figure included in the city’s working budget.

Why it matters: the tax-rate choice determines how much property-tax revenue the city can collect for general operations. Ramirez told council members the de minimis rate, if adopted, would yield about $6.3 million in property tax revenue in 2025; adopting last year’s rate instead would reduce general-fund revenue by a little over $514,000, she said.

Ramirez summarized the city’s calculations and displayed a multi-page tax-rate worksheet that uses formulas prescribed by the Texas Comptroller’s office. “This is the last page of about 10 pages that we work,” Ramirez said during the presentation. She explained the worksheet produces three standard rates: the no-new-revenue rate, the voter-approval rate and the de minimis rate, and that the de minimis rate is an option because Pecos’ population is under 30,000.

Council discussion focused on valuation changes, revenue impacts and the possibility of a petition-driven election. Ramirez and other staff said valuations had moved marginally from roughly $1.396 billion to about $1.414 billion this year, with new commercial property offsetting modest valuation declines on some parcels. Ramirez noted property taxes account for roughly 32% of the city’s general-fund budget.

Ramirez gave two illustrative homeowner examples: for a home with a taxable value of $150,000 and no homestead exemption, she said taxes would increase from $610.24 last year to $663.88 under the proposed rate — about a $53 difference. With a 20% homestead exemption applied, she said the increase for the same $150,000 home would be about $42.90.

The council also heard questions about appraisal practices and whether the city meets with the appraisal district. A council member noted apparent inconsistencies in commercial appraisals and Ramirez said she meets regularly with appraisal-district staff and had scheduled a meeting later that day to discuss specific valuation issues.

Councilman Graham moved to approve the 2025 tax-rate calculation and the proposed de minimis rate of 0.44259; Councilman Ronald seconded the motion. The council took a voice vote and the motion passed. Ramirez said a public hearing on the tax rate is scheduled for Aug. 19 at noon; she also noted that, because the proposed de minimis rate exceeds the voter-approval and no-new-revenue rates, voters may petition to force an election if they choose.

The council did not adopt a final budget at the meeting; Ramirez said the de minimis rate had been incorporated into the draft 2025 budget and that choosing a lower rate would require spending cuts. Council members did not instruct staff to change the draft budget at the meeting.