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Decatur council sets FY2026–27 budget process in motion, proposes 0.676611 tax rate
Summary
Council heard a staff kickoff for the FY2026–27 budget, reviewed tax‑rate definitions and the local effect of House Bill 9, discussed using up to about $550,000 in impact‑fee reserves to reduce debt service, and voted to begin the tax‑rate and budget hearing schedule — proposing a 0.676611 ad valorem rate for public hearings.
City staff opened the FY2026–27 budget process and reviewed the tax‑rate calculations the council must follow, including the no‑new‑revenue rate, the voter‑approval rate, and de minimis options. Staff said certified taxable value for the city is $1,523,922,907, with about $28 million of that listed as new construction, and explained how House Bill 9 increased certain exemptions and reduced the city's taxable value by roughly $21 million.
Explaining the change in fee calculation and the tax mechanics, staff said, "The no new revenue tax rate is last year's levy, divided by the current taxable value." Staff also illustrated the local impact of using impact fees: "For every $150,000 worth of impact fees you use, you can reduce a penny off of your debt rate," and noted about $550,000 was currently available in the impact‑fee fund.
Council voted to schedule required public hearings and advance the budget and tax items for first reading; it later recorded a roll‑call vote approving the staff‑recommended voter‑approval ad valorem tax rate of 0.676611 as the proposed rate to begin the notice process. Staff emphasized the first reading status and that final adoption (and any adjustments) will occur after further balancing before the Aug. 10 meeting.
