AGENDA CAPTION:
Title
Consider approval of Resolution 2026-167R, ratifying the property tax revenue increase in the budget for the fiscal year October 1, 2026 through September 30, 2027; and declaring an effective date.
Body
Meeting date: September 15, 2026
Department: Finance
Amount & Source of Funding
Funds Required: NA
Account or Project Number (C = CIP funds): NA
Funds Available: NA
Account Name: NA
Fiscal Note:
Prior Council Action: On February 26, 2026, City Council held a budget policy workshop and on March 31, 2026, Council passed Resolution 2026-46R, approving the Fiscal Year 2027 Budget Policy Statement. The Budget Policy Statement provided guidance for the property tax rate to be kept at the current (FY 2026) rate of 65.1500 cents. On August 18, 2026, the City Council set the maximum proposed tax rate for the FY 2027 budget at 65.1500 cents, and set September 1, 2026, and September 15, 2026, as the dates to hold public hearings on the tax rate. On September 1, 2026, City Council passed Ordinance 2026-38,on the first of two readings, setting the tax rate at 65.15 cents.
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Public Safety, Core Services & Fiscal Excellence
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Yes Core Services
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Background Information:
Texas Local Government Code §102.007(c), states that the adoption of a budget that will raise 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. The vote on this motion should be considered after approval of the budget ordinance on second reading and before the approval of the tax rate ordinance on second reading.
The proposed tax rate is the same as the FY 2026 tax rate, 65.1500 cents per $100 valuation.
Using the 65.1500 tax rate, the Fiscal Year 2027 Budget will raise more revenue from property taxes than last year’s budget by an amount of $7,105,917. Of that amount, $1,872,419 represents property tax revenue to be raised from new property added to the tax roll.
Council Committee, Board/Commission Action:
NA
Alternatives:
N/A
Recommendation:
City Council approve the resolution ratifying the property tax revenue increase reflected in the budget for the Fiscal Year October 1, 2026, through September 30, 2027.