PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Discuss and consider approval of the Proposed 2024 Tax Rate.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: All Districts
BACKGROUND INFORMATION:
In order for property owners in the State of Texas to be informed of any increases in their property values, truth-in-taxation requirements were embodied in the Texas Constitution and the Tax Code. Taxing units are required to calculate the No New Revenue tax rate and the Voter Approval tax rate after receiving the certified appraisal roll from the chief appraiser.
The No New Revenue tax rate is the total tax rate needed to raise the same amount of property tax revenue from the same properties in both the 2023 tax year and 2024 tax year. The Voter Approval Tax Rate (VAR) is the highest tax rate the City may adopt before a mandatory election is triggered.
The FY 2025 Proposed Tax rate provides sufficient capacity in the General Fund to support critical recurring initiatives. The Debt Service portion of the rate provides capacity to support the 2023 bond program as well as the rolling tax note program dedicated to vehicle replacement.
The proposed tax rate will remain the same as last year at 40.8936 cents. The Interest & Sinking (I&S - Debt Service) portion of the rate 20.3928 cents, reflects a decrease of approximately ½ cent while the Operations & Maintenance (O&M - General Fund) portion of the rate increases approximately ½ cent for a total of 20.5008 cents. The total rate of 40.8936 cents is LESS than the Voter Approval tax rate for this year as well. Following is a summary of the tax rate calculations completed by the Comal County Tax Office.
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PROPOSED TAX RATE |
$0.408936 PER $100 |
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PRECEDING YEAR'S TAX RATE |
$0.408936 PER $100 |
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NO NEW REVENUE TAX RATE |
$0.398163 PER $100 |
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VOTER APPROVAL TAX RATE |
$0.418132 PER $100 |
State law requires that a public hearing be held by the governing body before adopting the final tax rate. This hearing will be held on September 5th, 2024.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☒Community Well-Being ☐N/A
Performance Measure: N/A
FISCAL IMPACT:
Property Tax is one of the primary sources of revenue supporting the General Fund and Debt Service Fund.
Recommendation
RECOMMENDATION:
Staff recommends City Council set the proposed tax rate with a record vote.