PRESENTER:
presenter
Karrie Cook, Budget Manager
end
SUBJECT:
Discuss and consider a resolution of the City of New Braunfels ratifying the increase in revenue generated by the 2025 property tax rate included in the FY 2026 Annual Budget.
DEPARTMENT: Finance
COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND / RATIONALE:
Texas Local Government Code Section 102.007 requires the City Council to take a vote to ratify the increase in revenue generated by the 2025 property tax rate. This vote is in addition to and separate from the votes to adopt the budget or to set the tax rate as required by Chapter 26 of the Tax Code.
This resolution ratifies and acknowledges that the adoption of the FY 2026 Annual Budget will require raising more revenue from property taxes than in the previous year. This budget will raise more total property taxes than last year’s budget by $1,603,552 or 3.1 percent, and of that amount, $1,671,916 is tax revenue to be raised from new property added to the roll this year.
The increase in revenue is required to fund the programs and services as outlined in the FY 2026 Proposed Budget. The tax rate is 0.1% less than the no new revenue tax rate, which is the rate required to collect the same amount of revenue on the same properties that were on the rolls last year.
ISSUE:
N/A
FISCAL IMPACT:
The ad valorem tax revenues provide funding for the FY 2026 Budget in the General Fund and Debt Service Fund.
STAFF RECOMMENDATION:
Staff recommends approval of the resolution ratifying the increase in revenue generated by the 2025 property tax rate included in the FY 2026 Annual Budget.