PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Discuss and consider approval of the second and final reading of an ordinance adopting the 2023 ad valorem tax rates.
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DEPARTMENT: Finance
BACKGROUND INFORMATION:
City Council held work sessions on the FY 2024 Budget and tax rates 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 |
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PRECEDING YEAR'S TAX RATE |
$0.413935 PER $100 |
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NO NEW REVENUE TAX RATE |
$0.376441 PER $100 |
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VOTER APPROVAL TAX RATE |
$0.418877 PER $100 |
The proposed tax rate represents the 4th 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.