Horseshoe Bay sets proposed property tax rate of 0.26775; public hearing expected in September

The Horseshoe Bay City Council on a unanimous voice vote set a proposed property tax rate of 0.26775 per $100 of assessed value for fiscal year 2024–25 and directed staff to publish the rate and hold the required public hearing ahead of a final vote in September.

Molly Jester, who presented the third-quarter financial report, told the council the proposed rate is composed of a maintenance and operations (M&O) portion of 0.193626 and an interest-and-sinking (I&S) portion of 0.074124 per $100. Jester said the proposal reflects preliminary certified values provided by Llano and Burnet counties and the goal of maintaining the overall rate at last year’s level while adjusting the I&S component as needed for debt service.

"This tax rate is best based on estimated property value valuations provided from Llano County as of June 3 and Burnet County as of April 29," Molly Jester said, noting the combined preliminary valuation figure staff used in the presentation. She added that timing items such as ARPA receipts and a Summit Rock payment affect near-term revenue timing and that debt service payments due in August can make debt-related lines look low in the nine-month view.

Council member Morgan moved to set the proposed rate at 0.26775 per $100; the motion was seconded and carried. The council must hold a public hearing on the tax rate and adopt a final rate at the September meeting.

Why it matters: the proposed rate establishes the baseline for budget planning and public notice. Final adoption could change the I&S split depending on certified valuations and any future bond or debt decisions.