City Council Meeting Date: September 1, 2026
Date: August 19, 2026
To: Erin Rinehart, City Manager
From: Melissa Everett, Finance Director
Diana Vaughn, Chief Financial Officer
Chrystal Davis, Assistant City Manager
Title
Consider A Resolution Ratifying The Property Tax Increase Reflected In The Fiscal Year 2026 - 2027 Operating Budget.
Body
Background:
Section 102.007 of the Local Government Code requires a governing body that adopts a budget which raises more revenue from property taxes than in the previous year to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law. While the overall revenue from taxes adopted is lower than the previous years due to calculation requirements of Truth in Taxation, the tax rate of 0.537000 is considered a tax rate increase.
Financial Implications:
The Fiscal Year 2026-2027 Budget will raise less revenue from property taxes than last year’s budget by an amount of $398,876, which is a 0.31 percent decrease from last year’s budget. The property tax revenue to be raised from new property added to the tax roll this year is $936,461.
Staff Recommendation/Action Desired:
City Council is requested to pass a Resolution ratifying the property tax increase.
Attachments:
Resolution