PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Public hearing on the proposed tax rate for the City of New Braunfels for tax year 2025 and announce the meeting date and time of adoption.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
City Council held work sessions on the FY 2026 Budget and tax rates on August 7, 18, 19, and 21st.
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 2024 tax year and the 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 total rate of 40.89 cents is less than both the Voter Approval tax rate and the No New Revenue rate. The two components that make up the rate have been modified. 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.
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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 |
$0.409475 PER $100 |
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Voter Approval TAX RATE |
$0.419268 PER $100 |
Because the proposed tax rate is lower than the No New Revenue rate, state law does not require a public hearing to discuss the tax rate. For the sake of transparency and encouraging community involvement, the City of New Braunfels is holding a public hearing to discuss the tax rate.
The tax rate is scheduled for second and final reading on September 8th, 2025, at 6 pm, in City Council Chambers at 550 Landa St.
ISSUE:
N/A
FISCAL IMPACT:
The proposed 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:
No action is required.