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City staff warns HB 1116 could sharply reduce Avondale Estates ad valorem revenue; board urged to consider resolution
Summary
City staff told commissioners that the current iteration of House Bill 1116 would cap ad valorem revenue growth at about 3% annually and, in staff analysis, would have reduced the city’s revenue by roughly $2.1 million over five years; staff recommended the board consider a special meeting to adopt a resolution opposing the bill.
City staff presented an analysis of House Bill 1116 and told the Avondale Estates Board of Mayor and Commissioners the measure, as drafted at the time of the briefing, would cap the annual increase in ad valorem (property tax) revenue at roughly 3 percent unless a public vote authorized a larger increase.
The city manager said staff ran a five‑year pro forma to show the bill’s potential local impact and estimated the city would have collected about $2.1 million less during that period if the cap had been in place. Staff said that amount equates to approximately 35–36 percent of the city’s current annual budget and would have implications for operations, debt capacity and the city’s credit rating.
“Needless to say, it would be harmful to continue to operate the same way we do,” the manager said, urging the board to consider convening a special called meeting to consider adopting a formal resolution opposing the bill. Staff noted draft language remained subject to change and that neighboring municipalities had already adopted or were preparing similar resolutions.
No formal board action was taken at the meeting. Staff said it would monitor amendments to HB 1116 closely and return with a draft resolution if the board wanted to move quickly.
