Live Oak adopts $38.0 million budget, sets tax rate; council ratifies revenue increase from new property

The Live Oak City Council on Sept. 9 adopted the fiscal year 2025–26 budget and set the city property tax rate for tax year 2025.

City staff presented the proposed budget, which the council approved as printed: $37,999,007.31 in all funds. "Our budget as it stands now will be $37,999,007.31," the city presenter said. Staff said the adopted budget will raise $462,008.25 more in property tax revenue than last year's budget, a 6.15 percent increase; the portion attributable to new property added to the tax roll this year is $302,004.74.

City attorney staff noted that Local Government Code section 102.007(c) requires the council to ratify any property tax revenue increase reflected in the adopted budget; the council took that procedural step and voted to ratify the $302,004.74 increase from new property on a 5-0 vote.

The council also adopted an ordinance levying property tax at a rate of 0.386734 per $100 valuation, which the staff said does not exceed the lower of the city's calculated no-new-revenue rate or the voter-approval tax rate. The council took separate recorded votes on the maintenance and operations (M&O) portion of the tax rate at 0.31227 per $100 valuation and the debt service portion at 0.074464 per $100 valuation; both votes passed 5-0.

Council members said the proposed budget and tax calculations followed the direction provided at earlier workshops and met statutory notice requirements. Staff said the proposed budget was made available on the city website and on file with the city secretary, and the council had held a joint public hearing with the Economic Development Corporation on Aug. 26.

The council approved the budget ordinance, ratification of the tax revenue increase and the tax rate ordinance in successive votes. No public comments were received during the meeting on these items.