Laredo council opens public hearing, introduces ordinance to set 2025 tax rate at $0.50609 per $100

The Laredo City Council on Sept. 9 opened a public hearing and introduced an ordinance to adopt a property tax rate of $0.50609 per $100 of assessed value for tax year 2025, city staff said.

The proposed rate would provide revenue for the general fund and debt service, and is made up of $0.377599 per $100 for maintenance and operations (M&O) and $0.128491 per $100 for interest and sinking (I&S) for debt service, and is estimated to produce a tax levy of $134,248,550, the City Secretary read into the record. The council scheduled the final vote on the tax rate for Sept. 15 at 5:30 p.m. in council chambers.

The tax assistant collector, Dora Madonaldo, clarified how the change affects overall revenue. “The increase is 11.94,” Madonaldo said, referring to the increase in taxable value and new revenue on the roll. She told the council that the 11.94% figure represents new property value and value increases on the tax roll — not the average taxpayer’s bill.

Madonaldo read the taxpayer-impact statement required by state law, showing the current tax roll rate for fiscal year 2024–25 at 0.507623 per $100. Under the proposed rate for 2025–26, the median homestead taxable value increased from $182,335 to $194,727. The tax on the median homestead would rise from $925.57 to $985.49, about a $60 difference annually, according to the statement introduced at the hearing.

During the public hearing discussion, Council member Mayank explained the council’s approach to the rate within the state cap: “The state of Texas caps the city of Laredo from raising taxes on the maintenance and operations of the city by 3.5%,” he said. Council members noted the council opted not to raise the overall rate beyond what state law allows for M&O, and instead moved 2 cents of the rate from M&O into I&S to cover debt service for infrastructure needs as the city grows.

Council members discussed that new taxable value on the roll — for newly built or improved properties and reappraisals — primarily accounts for the 11.94% increase in revenue, and that the typical median homeowner would see an approximate $60 annual increase under the proposed rate, not an 11.94% increase in their individual bill.

The council voted by voice to close the public hearing and introduce the ordinance; the mayor participated remotely and his vote was counted. The City Secretary said a roll-call vote is not required until the final reading. The final adoption vote is scheduled for Sept. 15, 2025, at 5:30 p.m. in the City of Laredo Council Chambers, 1110 Houston Street.

If approved at the final reading, the ordinance will set the official tax rate for tax year 2025 and allocate the portion for ongoing services and the portion for debt service as read at the hearing.