CC MEETING: September 9, 2025
DATE: August 27, 2025
TO: Erin Rinehart, City Manager
FROM: Melissa Everett, Finance Director
Diana Vaughn, Chief Financial Officer
Chrystal Davis, Assistant City Manager
Title
Consider An Ordinance Establishing The Tax Rate And Tax Levy For The City Of Carrollton For The Tax Year 2025 Upon The Taxable Property In The City Of Carrollton In Conformity With The Laws Of The State Of Texas And The City.
Body
BACKGROUND:
Section 26.05 of the Texas Property Tax Code requires a governing body to adopt a tax rate for the current tax year. The tax rate must be adopted as two separate components: (1) maintenance and operation and (2) debt service. The tax rate is proposed at 38.7652 cents per $100 valuation for maintenance and operation and 14.9848 cents per $100 dollars valuation for debt service, totaling 53.7500 cents per $100 valuation.
For Tax Year 2025, the City of Carrollton is proposing a tax rate that exceeds the no-new-revenue tax rate but does not exceed the voter-approval rate. Based on the proposed tax rate, the motion needs to be made as follows:
“I move that the property tax rate be increased by the adoption of a tax rate of 53.7500 cents per $100 dollars valuation, which is effectively a 4.45% percent increase in the tax rate.”
If the ordinance sets a tax rate that will impose an amount of taxes to fund maintenance and operation (M&O) expenditures of the taxing unit that exceeds the amount of taxes imposed for that purpose in the preceding year, the taxing unit must include specific wording in the tax rate ordinance and on the website of the taxing unit.
The no-new-revenue M&O rate for Tax Year 2025 is $0.376167 and the proposed M&O tax rate is $0.387652. Based on the proposed tax rate, the following statements must be included in the ordinance adopting the tax rate and on the home page of the City’s website.
THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR’S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED 3.05 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATION ON A $100,000 BY APPROXIMATELY $11.49.
FINANCIAL IMPLICATIONS:
The ad valorem tax revenue is part of the funding for the Fiscal Year 2026 Budget.
STAFF RECOMMENDATION/ACTION DESIRED:
City Council is requested to approve the Ordinance setting the tax rate for the 2025 tax year at $0.537500 on each $100 valuation of property. This ordinance includes the above wording required by section 26.05 of the Texas Property Tax Code.
Attachment:
Ordinance