City of New Braunfels, Texas - File #: 23-1255

• File #: 23-1255
• Type: Ordinance
• Status: Individual Item Ready
• File created: 9/14/2023
• In control: City Council
• On agenda: 9/25/2023
• Title: Discuss and consider approval of the second and final reading of an ordinance adopting the 2023 ad valorem tax rates.

Date	Ver.	Action By	Action	Result
9/25/2023	1	City Council	approved	Pass

PRESENTER: Presenter

Jared Werner, Assistant City Manager

Body

SUBJECT: Title

Discuss and consider approval of the second and final reading of an ordinance adopting the 2023 ad valorem tax rates.

Header

DEPARTMENT: Finance

BACKGROUND INFORMATION:

At the September 18^th Council Meeting, City Council reconsidered the ordinance adopting the 2023 ad valorem tax rates that was originally passed at the September 11^th City Council Meeting.  This was due to a misprint identified by staff of the date of the public hearing on the tax rate on the published Notice of Public Hearing on the Tax Increase.  A second public hearing will be held on September 25^th, 2023, to allow the public an additional opportunity to comment on the proposed tax rates.  Prior to that, City Council held work sessions on the FY 2024 Budget and tax rate on August 7, 8, 10 and 14. 

The proposed tax rate of 40.89 cents is a 1/2 cent decrease from last year. The Interest & Sinking (I&S - debt service) portion of the rate totals 20.89 cents while the Operations & Maintenance (O&M - General Fund) portion of the rate totals 20.00 cents.  The total rate of 40.89 cents is less than the Voter Approval tax rate for this year as well. The O&M (General Fund) portion of the rate decreases by 1/2 cent. The I&S Rate remains the same, which will still provide sufficient revenue to support debt service payments for all existing and recently approved debt obligations to include the $35 million first issuance of the 2023 Bond Program, $10 million Certificates of Obligation to support the Sports Complex (NBEDC supported), and the $2 million Tax Note to support the rolling vehicle replacement program. 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	$0.413935 PER $100
NO NEW REVENUE TAX RATE	$0.376441 PER $100
VOTER APPROVAL TAX RATE	$0.418877 PER $100

The proposed tax rate represents the 4^th consecutive tax rate decrease. As a point of reference, property taxes paid to the City of New Braunfels represent approximately 22% of the overall property tax bill, with the remaining portion being paid to the respective school district and county.

FISCAL IMPACT:

The ad valorem tax revenues provide funding for the FY 2024 Budget in the General Fund and Debt Service Fund.

Recommendation

RECOMMENDATION:

Staff recommends approval of the second and final reading of the tax ordinance for the 2023 ad valorem tax rates.