Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Tax topic
No spam. Unsubscribe anytime.
Henderson council approves proposing no-new-revenue property tax rate; motion carries by voice vote
Summary
During a rescheduled August meeting, the Henderson City Council voted to propose the no-new-revenue property tax rate for 2025 and authorized a record vote; staff presented a chart showing the difference between the no-new-revenue, voter-approval and current rates and recommended using new revenue to bolster reserves rather than add new spending.
The Henderson City Council voted to move forward with a proposed 2025 property tax rate set at the no-new-revenue level, with a motion carried by voice vote during a rescheduled August meeting.
City staff presented a chart comparing three measures — the no-new-revenue rate, the voter-approval rate and the current rate — and the projected revenue under each. A staff presenter explained that because of new property added to the tax roll (described as a one-time increase driven mainly by West Frasier expansion), the no-new-revenue line can show more revenue even if the rate is lower.
"You have the ability to do anything up to the voter approval rate, and then you can go down as low as you want," the staff presenter said while explaining the options. The presenter recommended that, if the council accepts the larger revenue tied to new property values, the city should not add ongoing expenditures and instead push funds into the general-fund reserve. "Other than potential cost-of-living stuff for staff, nothing should be added to the budget," the presenter said.
A public commenter who identified herself as "Miss Veil" urged the council to adopt the no-new-revenue rate and to keep revenue flat compared with the prior year. During that comment she criticized oversight of boards and cited specific statutory sections, saying, "HeadCo, for example, spent $27,000 on a mural without first seeking city council approval, a clear violation of Texas Local Government Code §501.073 and §505.158." She also urged the council not to adopt a tax rate higher than the no-new-revenue rate.
Council discussion recorded a budgetary difference tied to the rate options: adopting the current rate would raise about $550,931 more than last year, while the no-new-revenue alternative shown on the chart would lower that; the transcript notes a specific revenue-difference figure of $113,005.50 between two of the rates. When asked whether the difference would put the city in a bind, staff said the primary effect would be on how much could be returned to reserves.
After public comment, a council member moved "to approve the no new revenue fee at the recommended, or the lowest rate, the 52¢. 0.529139¢"; the motion was seconded, the council voted by voice and the mayor declared the motion carried. The transcript records procedural confusion about who made and seconded the motion in council remarks, and no roll-call vote or individual vote tallies were recorded; the meeting transcript shows only a voice vote and the mayor's announcement that the motion carries.
Clarifying details presented at the meeting included a staff estimate that the city should aim to restore general-fund reserves by about $1 million to $1.5 million over time; the presenter recommended funneling one-time revenue increases into reserves rather than adding recurring spending.
Ending: The council approved placement of the proposed tax rate per the no-new-revenue calculation and moved forward without adopting additional budget items tied to that new revenue during the meeting.
