Title
Consider a memorandum/resolution setting the preliminary property tax rate for the Fiscal Year 2026 Annual Budget and setting the date to hold a public hearing.
Body
DATE: August 5, 2025
TO: Kent Cagle, 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 2026 Budget:
Current Rate
0.6573
No-New-Revenue Rate
0.6487
Notice and Hearing Rate
0.6487
Budgeted Rate (Preliminary Tax Roll)
0.6830
Budgeted Rate (Certified Tax Roll)
0.7014
Voter-Approval Rate
0.7015
The preliminary tax rate serves as the maximum rate the City Council may adopt. The final rate may be equal to or lower than this amount but cannot exceed it.
Since the proposed rate of $0.7014 exceeds the no-new-revenue rate, setting the preliminary rate at this level requires a record vote and a public hearing.
The public hearing is scheduled for September 2, 2025, 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 2025
Proposed FY 2026
Difference
Median-Valued Homestead
$220,915
$233,428
$12,513
Tax Rate
0.6573
0.7014
0.0441
Annual Property Tax Levy
$1,452.07
$1,637.26
$185.19
Monthly Cost
$121.01
$136.44
$15.43
Property tax amount = tax rate X taxable value of your property / 100
THE ALTERNATIVES CONSIDERED:
Rate Type
Tax Rate
Tax Levy
Difference
Current Rate
$0.6573
$71,903,875
($4,561,587)
No-New-Revenue Rate
$0.6487
$71,014,313
($5,451,148)
Budgeted Rate (Preliminary Tax Roll)
$0.6830
$74,185...
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