Title
Consider a memorandum/resolution ratifying the property tax revenue increase reflected in the Annual Budget for the fiscal year October 1, 2026 and ending September 30, 2027.
Body
DATE: September 1, 2026
TO: Kent Cagle, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Ratifying the Property Tax Revenue Increase as Required by the Local Government Code
BACKGROUND AND FINDINGS:
Texas Local Government Code §102.007(c) requires a separate vote of the governing body to ratify the property-tax revenue increase reflected in a budget that will raise more property-tax revenue than in the preceding year. This vote is in addition to and separate from the vote adopting the budget and the vote setting the tax rate.
In accordance with Local Government Code §102.007(d), the following statement will be included in 18-point or larger type on the cover page of the adopted FY 2027 Budget:
This budget will raise more revenue from property taxes than last year's budget by an amount of $1,742,497, which is a 2.28 percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $1,002,271.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
The memorandum/resolution conforms with Local Government Code §102.007
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
There is no financial impact to the current fiscal year. The FY 2027 Budget includes $1,742,497 more in property-tax revenue than the FY 2026 Budget.
Is this a one-time or recurring revenue/expenditure?
Recurring revenue.
Is this revenue/expenditure budgeted?
Yes. The property-tax revenue increase is reflected in the FY 2027 Budget presented for adoption.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
N/A
RECOMMENDATION:
City Council approve the memorandum/resolution ratifying the property-tax revenue increase reflected in the FY 2027 Annual Budget.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Taxpayer Impact Statement
Presentation