Title
Discuss and consider action to approve a resolution ratifying the property tax increase reflected in the City's Fiscal Year 26 operating budget.
Summary
Pursuant to Section 102.007(c) of the Texas Local Government Code, a municipality is required to take a separate vote to ratify the property tax when the adoption of the budget will raise more property tax revenue than in the previous year.
At the Council proposed rate of $0.53500, the City's total estimated property tax revenue (excluding TIRZ) is an increase of $1.7M, or approximately 2.8% over the FY25 property tax projections. FY26 budget will raise more revenue from property taxes than last year’s budget by an amount of $1,711,206, which is a 2.82 percent increase from last year’s budget, and of that amount, $924,044 is tax revenue to be raised from new property added to the tax roll this year.
The total appraised taxable value of property (including the Tax Increment Reinvestment Zone (TIRZ) value) totals $12.5B, an increase of $552M over FY25’s appraised taxable value. The increase in taxable property value of existing property values consists of $380M, and new property value makes up $172M of the total value.
Prior City Council Action
August 12, 2025, the City Council adopted a resolution specifying a maximum property tax rate for FY26 of $0.53500/$100 valuation.
Public hearing held September 9, 2025.
Deadline for City Council Action
This additional action is required to complete the property tax rate approval.
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: _N/A_
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A _X_ Required __ Date Completed:
Supporting documents attached:
Resolution Ratifying Tax Rate
Recommended Action
Staff recommends approval of a resolution ratifying the property tax increase reflected in the City's FY26 operating budget.