Title
Consider a memorandum/resolution setting the preliminary property tax rate for the Fiscal Year 2027 Annual Budget and setting the date to hold a public hearing.
Body
DATE: August 4, 2026
TO: Kent Cagle, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Setting the Preliminary Tax Rate & the Date of the Public Hearing
BACKGROUND AND FINDINGS:
Truth-in-taxation laws require the governing body to publish notice and hold a public hearing if the proposed tax rate exceeds the lower of the no-new-revenue tax rate or the voter-approval rate. The following tax rates per $100 valuation are relevant to the proposed FY 2027 Budget:
Current Rate
0.7014
No-New-Revenue Rate
0.7048
Notice and Hearing Rate
0.7048
Budgeted Rate (Preliminary Tax Roll)
0.7215
Budgeted Rate (Certified Tax Roll)
0.7215
Voter-Approval Rate
0.7302
Recommended Preliminary Rate
0.7301
The proposed FY 2027 Budget was initially developed using a tax rate of $0.7215. However, following receipt of the certified appraisal roll, the projected property tax levy was lower than anticipated. As a result, staff recommends establishing a preliminary tax rate of $0.7301 to provide sufficient revenue to support the proposed FY 2027 Budget. Because the proposed operating tax rate exceeds the no-new-revenue tax rate, state law requires the City Council to establish the preliminary tax rate by record vote.
The preliminary tax rate serves as the maximum rate the Council may ultimately adopt. The final adopted tax rate may be equal to or lower than the preliminary tax rate but may not exceed it.
The public hearing is scheduled for September 1, 2026, with adoption of the tax rate to occur the same day. State law permits the governing body to adopt the rate at the hearing or within seven days following it. The required notice must be published at least five days before the hearing.
Taxpayer Impact
Current FY 2026
Proposed FY 2027
Difference
Median-Valued Homestead
$...
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