Per Council direction at the Budget Retreat on August 2, 2024, staff will present budgetary options for discussion at this meeting on August 6 to be finalized at the August 20 City Council meeting, showing outcomes of lower tax rates for consideration. By doing this, it will allow Council to adopt a tax rate at that August 20 meeting that is lower than the maximum property tax rate, if that is the preference.

On July 25, 2024 the City received the certified property tax rolls from the Guadalupe, Comal, and Bexar appraisal districts. The Guadalupe Tax Assessor-Collector used this information, and information provided by the City of Schertz, to calculate the No-new-revenue and Voter-approval tax rates for the 2024 Tax Year.

The No-new-revenue rate is a calculated rate that would provide the city with same amount of revenue it received the year before on properties taxed in both years. The Voter-approval Rate is a calculated maximum rate allowed by law without voter approval. If Council adopts a rate higher than the Voter Approval Rate, the tax rate will automatically be on the November 2024 ballot.

The 2024 No-new-revenue Rate is $0.4805 per $100 of valuation and the 2024 Voter-approval Base Rate is $0.4990 per $100 of valuation. There is no unused increment rate this year. Staff is recommending setting a preliminary maximum property tax rate of $0.4990 per $100.

In accordance with Chapter 26.05(d) of the State’s Property Tax Code, a governing body must hold a public hearing on the tax rate if the proposed tax rate exceeds the lower of the No-new-revenue or Voter-approval Tax Rate.  In this case, the hearing is required as the proposed rate does exceed the No-new-revenue rate. Staff recommends holding public hearings on August 20^th and September 3^rd and encourages citizen participation and input in the adoption process.

A one-quarter page “Notice of Public Hearing on Tax Increase” must be published in the local newspaper and online in compliance with the Tax Code 26.06.  The notice will contain information based upon a preliminary tax rate to be determined by the City Council and the dates of the public hearings. 

During the final tax rate adoption process, Council can approve a lower rate at that time; however they will not be able to approve a higher rate without republishing the notices and holding additional public hearings.

Public Hearing dates are proposed for August 20th and September 3rd, 2024 with final adoption anticipated at the September 3rd meeting.

To set a preliminary tax rate and start the budget adoption process.

Setting a tax rate will provide for existing and expanded services for residents.

Per the Texas Tax Code Chapter 26, City Council will need to accept the calculated tax rates and set a preliminary maximum tax rates to use in the public notices, which Council will do by resolution.

The proposed maximum rate maintains quality service to residents and businesses and provides growth in service offerings based on the classification and compensation study, staffing study and City priorities. The current property tax rate is $0.4872 per $100 valuation. The proposed maximum tax rate is $0.4990 per $100 valuation.

The M&O portion of the property tax rate will increase to $0.3716 from $0.3324 per $100 valuation.

The I&S portion will increase to $0.1574 from  $0.1548 per $100 valuation. 

The annual impact on the average taxable home value of $343,118 will be a $63.47 increase in the tax bill or an additional $5.29 in monthly escrow payments.
 

Staff recommends Council approve resolution 24-R-94, accepting the No-new-revenue and Voter-approval rates as submitted by the Guadalupe Tax Assessor Collector, setting a preliminary tax rate, and scheduling public hearings.