Title
Discuss and consider action to approve a resolution to set a proposed maximum 2024 property tax rate supporting the FY25 budget and schedule the date for the public hearing.
Summary
Summary of Tax Rates:
No-New-Revenue Tax Rate: $0.5259
Debt Rate: $0.2898
Voter-Approval M&O Tax Rate: $0.2530
Voter-Approval Tax Rate: $0.5428
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: $0.2530, an increase from current rate by $0.0045
- I&S (Debt Service): $0.2898, an increase from current rate by$0.002
- Total proposed tax rate: $0.5428, an increase from current rate by $0.0066
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 24 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 13, 2024 to be in compliance with the Tax Code.
Supporting documents attached:
Notice of Public Hearing on Tax Rate
Tax Rate Resolution 2024
Recommended Action
Approve the resolution to set a proposed maximum 2024 property tax rate supporting the Fiscal Year 2025 (FY25) budget and schedule the date for the public hearing.