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Lewisville staff outline economic outlook and warn House Bill 9 will shift property-tax burden toward residents
Summary
City staff told council that a recent state change (House Bill 9) raising the business personal property exemption will shrink the taxable base (estimated $210 million reduction for tax year 2024) and likely shift more of the property-tax burden to residents beginning in FY27; staff urged conservative forecasting and highlighted strong reserves and recent OPEB funding gains.
Lewisville city staff presented an economic outlook at the retreat that combined near-term revenue trends with longer-term capital and debt considerations, and warned a state tax law change will materially affect the city's fiscal picture.
Staff member Dave Erb told council the city faces broad economic uncertainty—from federal policy shifts to consumer-confidence softness—that is already tempering sales-tax growth. Erb said construction costs have risen sharply, noting that average construction costs increased “over 34%” in the last roughly four-and-a-half years, and that those increases have pushed some project bids well above engineer estimates.
The presentation highlighted the city's current fiscal strengths: general-fund reserves are near 36% of fund balance, well above the council's 20% policy target, and Lewisville maintains strong bond ratings. Erb said…
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