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Agenda No. 15.

CITY COUNCIL MEMORANDUM

City Council Meeting:	August 19, 2025
Department:	Finance
Subject:	Resolution 25-R-110 - Ratifying the property tax increase reflected in the Adopted Budget for FY 2025-26 (S.Gonzalez/J.Walters)

BACKGROUND

In accordance with the Local Government Code Section 102.007(c), with the adoption of a budget that will require raising more revenue from property taxes than in the previous year, a separate vote must be taken to ratify the property tax increase reflected in the budget.

This vote must be separate from the vote to approve the budget or adopt the tax rate.

GOAL

To be in compliance with state regulations and to ratify the property tax increase reflected in the Adopted Budget for FY 2025-26.

COMMUNITY BENEFIT

To comply with state regulations.

SUMMARY OF RECOMMENDED ACTION

Staff recommends City Council ratify the property tax increase as voted on and approved with the adoption of the FY 2025-26 Budget.

FISCAL IMPACT

The City Council ratifying the budget at the No New Revenue Rate ($0.5064) will raise more total property taxes than last year's budget by $1,287,413 or 4.6% increase, and of that amount, $1,192,510 is tax revenue to be raised from new property added to the tax roll this year. If Council wants to ratify the budget at a different rate, staff's attached presentation slides describe the impact of those options Council has discussed.

RECOMMENDATION