Title
Consider approving Resolution No. 2024-148, ratifying the property tax revenue increase reflected in the Fiscal Year 2024-25 Budget; and take appropriate action.
Body
REQUESTER:
Finance, Fleet, and Facilities Department
BACKGROUND:
Texas Local Government Code Section 102.007(c) requires that adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A record vote of the City Council under this subsection is required to ratify the property tax revenue increase reflected in the budget in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26 of the Tax Code or other law.
DISCUSSION:
Ordinance No. 3880, approved just prior to this item, adopted the Fiscal Year 2024-25 Budget. The budget was developed with a tax rate of $0.5435, which is less than the no-new-revenue rate and is a reduction in the current tax rate of $0.0255 and a reduction of $0.060575 in the calculated rate the City is authorized to adopt without calling for an election.
However, because a motion was passed by the City Council to consider a maximum tax rate of $0.604075 for deliberation purposes and the maximum rate, if adopted, would have resulted in raising more revenue from property taxes than in the 2023-24 fiscal year (estimated budget increase of approximately $6.2M), legislation requires the ratification of the property tax revenue increase - even though it is not actually reflected in the budget.
A public hearing concerning the budget was held on September 10, 2024, and a public hearing concerning the tax rate was held earlier this evening. All applicable laws and City Charter provisions necessary for the adoption of the budget have been followed.
FISCAL IMPACT:
Financial Impact - Supports the City's Budget
DISTRICT:
All districts impacted.
POSSIBLE COUNCIL ACTIO...
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