PPT Item # 9 - 2024 Property Tax Rate & Scheduling hearing

Powerpoint 2024 Property Tax Rate & Schedule hearing

1. ADMINISTRATION AND
FINANCE
Presented by:
Robert Galindo
Finance Director
PROPOSED 2024 PROPERTY TAX RATE
ITEM # 9
AUGUST 12, 2024

2. PROPOSED TAX RATE 2023
The City is required by Ch. 26 of the Texas Property
Code:
To determine and publish the no new revenue tax rate
and the voter approval tax rate
Decide how much revenue is needed and calculate the
rate required to raise that amount
Publish notices and if the proposed tax rate will exceed
the no new revenue tax rate hold one public hearing
Adopt a tax rate
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3. THE PROPERTY TAX RATE AND PROPERTY
VALUATION HAVE AN INVERSE RELATIONSHIP
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If valuation
goes up
tax rate
goes down
No New Revenue Tax Rate would provide the same amount of revenue received in
prior year on properties taxed in both years which excludes new values.

4. 2024 PROPOSED TAX RATE PER $100
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No New Revenue Tax Rate
provides the same amount of revenue received in prior year on
properties taxed in both years which excludes new values
$ 0.370159
Voter Approval Tax Rate
maximum rate allowed by law without triggering an automatic
election to approve tax rates exceeding the voter approval tax
rate.
It is calculated as follows:
No New Revenue Maintenance and Operations Rate x 1.035%
+ Current Debt Rate
$ 0.399417
Proposed Tax Rate $0.370147 per
$100
Proposed M&O Rate$0.311327
Proposed I&S Rate$0.058820
Proposed 2024 Tax Rate$0.370147
Note: Once a proposed tax rate is decided for council action, the adopted tax rate cannot be higher.

5. PROPOSED 2024 TAX LEVY
Freeze Adjusted Taxable Value$1,716,100,986
Proposed Tax Rate $0.370147/$100
Taxable Revenue $6,352,096
Plus Tax Freeze Revenue $1,958,506
Total Property Tax Revenue$8,310,603
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FISCAL IMPACT
O&M (General Fund)$6,989,966
I&S (Debt Service Fund) $1,320,637
Total Property Tax Revenue$8,310,603

6. POLICY ANALYSIS
The 2024 proposed tax rate of $0.370147 is less than the
No-New Revenue Tax Rate of $0.370159
Once a proposed tax rate is set by council, the adopted tax rate cannot be
higher than the proposed tax rate.
City Council will schedule a public hearing to obtain citizen
input.
City staff will publish notices pursuant to the Texas Property
Tax Code.
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7. ACTIONS REQUIRED BY COUNCIL
ROLL CALL VOTE
Imovetosettheproposed2024TaxRateat$0.370147per
$100valuationcomposedoftheM&ORateof$0.311327
andtheI&SRateof$0.058820.
ImovetheCityholdapublichearingforconsiderationofthe
2024ProposedTaxRateonAugust26,2024.
ImovethecitysetanactionitemontheAugust26,2024
agendatoadoptthe2024TaxRate.
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