File #: 25-3128    Name: FY26 Budget - Adopt Tax Rate
Type: Agenda Item Status: Approved
In control: City Council Regular Meeting
On agenda: 9/2/2025 Final action: 9/2/2025
Title: Conduct a Public Hearing to Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2025-26 (Tax Year 2025)
Attachments: 1. Ordinance

Title

Conduct a Public Hearing to Consider/Discuss/Act on an Ordinance Adopting a Tax Rate for Fiscal Year 2025-26 (Tax Year 2025)

 

Summary

 

COUNCIL GOAL:                     Financially Sound Government

(4A: Provide Funding and Organizational Framework to Ensure Continual Economic Improvements)

 

MEETING DATE:                     September 2, 2025  

 

DEPARTMENT:                      Financial Services

 

CONTACT:                                            Mark Holloway, Chief Financial Officer

                                                               

 

RECOMMENDED CITY COUNCIL ACTION:

  • Conduct the public hearing on the FY2025-26 proposed tax rate.
  • Conduct a record vote to adopt the tax rate.
  • Approve the ordinance to adopt the tax rate.
  • A motion to adopt the tax rate ordinance must be made in the following form:
  •  
  • “I move that the property tax rate be increased by the adoption of a tax rate of 0.412284, which is effectively a 3.58% percent increase in the tax rate.”
  •  
  • ITEM SUMMARY:
  • The proposed tax rate is $0.412284 based on 100% market ratio on each $100 of all taxable property within the City. The proposed tax rate is $0.003229 cents lower than last year.
  • The rate for Maintenance and Operations (M&O) is $0.276012 per $100 valuation. 
  • The rate for Interest and Sinking Funds (I&S) is $0.136272 per $100 valuation.
  • The tax rate ratio is 67% for M&O and 33% for I&S. 
  • The proposed tax rate exceeds the no-new-revenue tax rate of $0.398018.
  • The proposed tax rate will raise more taxes for M&O than last year’s tax rate.
  • The amount of taxes imposed this year on the median home value of $495,634 would be $2,043.
  •  
  • BACKGROUND INFORMATION:
  • State law requires an entity to hold a public hearing before adopting a tax rate.
  • On August 5, 2025, the City Council took a roll call vote on the tax rate and announced the public hearing and adoption date of September 2, 2025.
  • The vote on the ordinance setting a tax rate that exceeds the no-new-revenue tax rate must be a record vote, and at least 60 percent of the members of the governing body must vote in favor of the ordinance.
  •  
  • FINANCIAL SUMMARY:
  • Estimated maintenance and operations tax revenues of $119,864,284 for FY 2025-26 are based on this tax rate.