Title
Discuss and consider action to approve a resolution setting forth the Ad Valorem (Property) tax rate to be considered for adoption for the 2026 tax year; said rate proposed to be $0.5436 per $100 of taxable assessed value; and calling a public hearing prior to the adoption of the tax rate and the fiscal year 2027 budget.
Summary
Summary of Tax Rates:
Proposed Tax Rate $0.5436
No-New-Revenue Tax Rate: $0.5407
No-New-Revenue M&O Rate $0.2523
Debt Rate: $0.2826
Voter-Approval M&O Tax Rate: $0.2610
Voter-Approval Tax Rate: $0.5436
A municipality must first set a proposed tax rate before adopting the final tax rate. The City is then required to hold a public hearing and prepare notices to allow citizens to speak on the proposed tax rate. The Council may then adopt a rate at or below the proposed rate but cannot exceed the rate proposed and published.
The proposed tax rate consists of two components: Maintenance & Operations (M&O) + Interest & Sinking (I&S) = Total tax rate.
The proposed tax rate components:
- M&O: $0.2610, an increase from current rate by $0.011
- I&S (Debt Service): $0.2826, a decrease from current rate by $0.0024
- Total proposed tax rate: $0.5436, an increase from current rate by $0.0086
The rate approved in the resolution will be used in all notices required to be published on the tax rate. The next step in the property tax rate adoption process is to hold a public hearing, as required if the proposed rate exceeds the lower of the no-new-revenue or voter-approval rate. The hearing on the tax rate is currently scheduled for September 8, 2026 at 7:00 p.m. along with final adoption of the tax rate and budget.
Prior City Council Action
N/A
Deadline for City Council Action
Approval is requested on August 11, 2026 to be in compliance with the Tax Code.
Supporting documents attached:
Resolution
Notice of Public Hearing on Tax Rate
Recommended Action
Approve the resolution as presented.