City of New Braunfels, Texas - File #: 25-1066

• File #: 25-1066
• Type: Presentation
• Status: Individual Item Ready
• File created: 8/21/2025
• In control: City Council
• On agenda: 9/8/2025
• Title: Discuss and consider approval of the second reading of an ordinance adopting the 2025 ad valorem tax rates.

PRESENTER: Presenter

Karrie Cook, Budget Manager

Body

SUBJECT: Title

Discuss and consider approval of the second reading of an ordinance adopting the 2025 ad valorem tax rates.

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DEPARTMENT: Finance

BACKGROUND INFORMATION:

City Council held work sessions on the FY 2026 Budget and tax rates on August 7, 18, 19, and 21^st.

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 2024 tax year and 2025 tax year. The Voter Approval tax rate (VAR) is the highest tax rate the City may adopt before a mandatory election is triggered.

The proposed tax rate of 40.89 cents remains consistent with last year. The two components that make up the rate have been modified. The total rate of 40.89 cents is less than both the Voter Approval tax rate and the No New Revenue rate. The Interest & Sinking (I&S - debt service) portion of the rate totals 19.39 cents while the Operations & Maintenance (O&M - General Fund) portion of the rate totals 21.50 cents. The following is a summary of the tax rate calculations completed by the Comal County Tax Office.

PROPOSED TAX RATE	$0.408936 PER $100
PRECEDING YEAR'S TAX RATE	$0.408936 PER $100
No New Revenue TAX RATE	$0.409475 PER $100
Voter Approval TAX RATE	$0.419268 PER $100

Because the No New Revenue rate is higher than the proposed tax rate, state law does not require a public hearing to discuss the tax rate. For the sake of transparency and encouraging community participation, the City of New Braunfels held a public hearing on September 4^th, 2025

FISCAL IMPACT:

The ad valorem tax revenues generated by the proposed tax rate provide funding for the FY 2026 Budget in the General Fund and Debt Service Fund.

Recommendation

RECOMMENDATION:

Staff recommends approval of the second reading of the tax ordinance for the 2025 ad valorem tax rates.