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Title:
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Consider approving Resolution No. 2025-160 ratifying the property tax revenue increase reflected in the Fiscal Year 2025-26 Budget; and take appropriate action.
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Title
Consider approving Resolution No. 2025-160 ratifying the property tax revenue increase reflected in the Fiscal Year 2025-26 Budget; and take appropriate action.
Body
REQUESTOR:
City Management
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. 3958, approved just prior to this item, adopted the Fiscal Year 2025-26 Budget. The budget was developed with a tax rate of $0.5435, which is more than the no-new-revenue rate, but less than 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 $0.631795 for deliberation purposes and the maximum rate, if adopted, would have resulted in raising more revenue from property taxes than in the 2024-25 fiscal year (estimated budget increase of approximately $9.0M), legislation requires the ratification of the property tax revenue increase. A public hearing concerning the budget was held on September 2, 2025, 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:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2025-160 as presented. (Take record vote.)
2. I move to approve Resolution No. 2025-160 with modifications. (Take record vote.)
ATTACHMENT(S):
1. Resolution No. 2025-160 - to be completed after the vote.