Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Tax topic
No spam. Unsubscribe anytime.
Council reviews property-tax-rate options: staff lists no-new-revenue, debt and voter-approval components
Summary
Budget staff laid out Texas truth-in-taxation calculations, reporting a no-new-revenue component of 67.8856¢ per $100, a debt (I&S) rate of 25.6970¢ per $100 (unchangeable) and an M&O voter-approval component of 47.5561¢ per $100. Staff outlined revenue impacts and recommended options ahead of the Aug. 4 vote.
City budget director Arianna Beckman presented the calculations council must use under Texas truth-in-taxation law and described three benchmark rates the city may consider for FY2026–27.
Beckman said the "no new revenue" component of the tax rate is 67.8856¢ per $100 of assessed value and that the debt, or interest-and-sinking (I&S), portion calculates to 25.6970¢ per $100 — a component she said cannot change because it covers debt service. She said the M&O portion that composes the voter-approval tax-rate calculation is 47.5561¢ per $100, and staff combined those figures in the presentation to produce the overall voter-approval rate figure shown to council.
Staff also presented how each option affects the general fund: maintaining the current tax rate would, per staff slides, require roughly $840,000 in expenditure reductions to remain balanced; using the no-new-revenue rate would require larger reductions; adopting a voter-approval rate would avoid those reductions, staff said. Beckman noted the proposed budget currently shows a deficit of $771,000 and discussed options such as using fund balance, excluding market or COLA adjustments, or deferring capital projects.
"The resulting no new revenue tax rate is 67.8856¢ per $100 valuation," Beckman said during the presentation. "The resulting debt rate is 25.6970¢ for a $100 valuation."
