PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Discuss and consider scheduling the public hearings on the 2026 tax rate and the FY 2027 Proposed Budget and Plan of Municipal Services.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: All districts.
BACKGROUND INFORMATION:
To ensure property owners in Texas are informed of changes to their property values and any resulting tax implications, truth-in-taxation requirements are established in the Texas Constitution and the Texas Tax Code. If a taxing unit proposes a tax rate that exceeds the No-New-Revenue Tax Rate, it is required to hold a public hearing before adopting the final tax rate.
Although the City's proposed FY 2026 tax rate is currently below the No-New-Revenue Tax Rate and a public hearing is not legally required, the City Manager's Office recommends holding a public hearing to provide residents with an additional opportunity to comment on the proposed tax rate. The hearing is proposed to be held on Thursday, September 10, 2026, beginning at 6:00 p.m. at City Hall.
Additionally, the Texas Local Government Code requires municipalities to hold a public hearing on the proposed annual budget before its adoption to allow for public input. The budget public hearing is also proposed to be held on Thursday, September 10, 2026, beginning at 6:00 p.m. at City Hall.
Before these public hearings can occur, City Council must formally establish the date, time, and location for both the proposed tax rate hearing and the budget public hearing.
FISCAL IMPACT:
The FY 2027 Proposed Budget and Plan of Municipal Services will provide funding for all programs and projects for the new fiscal year.
Recommendation
RECOMMENDATION:
Staff recommends City Council set the public hearings for the 2026 tax rate and FY 2027 Budget to be held on Thursday, September 10, 2026, beginning at 6:00pm.