AGENDA CAPTION:
Title
Consider approval of Resolution 2025-150R, setting a maximum proposed tax rate of 64.96 cents per $100.00 of taxable value; setting the dates of September 2, 2025 and September 16, 2025, as the dates to hold public hearings on the tax rate; and declaring an effective date.
Body
Meeting date: August 19, 2024
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: On March 18,2025, City Council passed Resolution 2025-53R, approving the FY 2026 Budget Policy Statement. The Budget Policy Statement provided guidance for the property tax rate to be kept between the current rate and the voter approval rate.
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Background Information:
Truth-in-taxation laws require the governing body to publish notice and hold a public hearing if the maximum proposed tax rate exceeds the lower of the no-new-revenue tax rate or the voter-approval tax rate. The following tax rates are important relative to the FY 2026 Budget:
No-New-Revenue Rate 62.78¢
Proposed Budget Rate 62.78¢
Recommended Budget Rate 64.96¢
Current Rate 60.30¢
Voter Approval Rate 70.47¢
City Council must set the maximum proposed tax rate for the FY 2026 Budget. The final adopted tax rate may be equal to or lower than the maximum proposed tax rate. The final adopted tax rate may not be higher than the maximum proposed tax rate.
If the maximum proposed tax rate is equal to or less than the no-new-revenue rate of 62.78¢, City Council must take a record vote and a public hearing on the maximum proposed tax rate is not required. If the maximum proposed tax rate is higher than the no-new-revenue rate of 62.78¢, City Council must take a record vote and schedule a public hearing on the maximum proposed tax rate.
The proposed FY 2026 Budget as submitted by the City Manager is predicated on the proposed budget rate of 62.78¢. The City’s tax rate has been 60.30¢ since FY 2022. Public hearings on the tax rate are scheduled for September 2, 2025, and September 16, 2025.
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
City Council set the maximum proposed tax rate at 64.96¢ and set the dates of September 2, 2025, and September 16, 2025, to hold public hearings.