Title
Consider and take action on an ordinance approving an ad valorem tax rate for the City of League City, Texas, upon all taxable property within the corporate limits of the City for the Fiscal Year ending September 30, 2027; directing the assessment and collection thereof; providing for a severability clause; and providing for an effective date (Assistant City Manager - CFO)
Staff requests approval on first and final reading.
Taxpayer Impact Statement Required per H.B. 1522 effective September 1, 2025 based on Tax Year 2025 (FY2026) and Tax Year 2026 (FY2027):
2025 Adopted Tax Rate $ 0.36355 with an estimated median homestead taxable value of $362,634 equals tax of $1,318.36
2026 No-New-Revenue Tax Rate $0.356505 with an estimated median homestead taxable value of $375,000 equals tax of $1,336.89
2026 Proposed Tax Rate $ 0.356505 with an estimated median homestead taxable value of $375,000 equals tax of $1,336.89
The change in total tax rate is a decrease of 0.007045 per $100, or -1.94%
The change in estimated median homestead taxable value is an increase of 3.41%
The change in tax on estimated median homestead property is an increase of $18.54 or 1.41%
Background:
Approval of this ordinance will set a property tax rate of $0.356505 per $100 for 2026 Tax Year (Fiscal Year 2027). First and final is requested based on Galveston County Tax Office’s preferred deadline of September 20th for statements to be mailed within the first week of October. The next City Council meeting is September 22nd.
Section 102.009 (a) of the Local Government Code states "The governing body of the municipality may levy taxes only in accordance with the budget." City Council approved the FY2027 budget based on the no-new-revenue property tax rate of $0.356505 per $100 valuation earlier during tonight’s meeting. Since the proposed tax rate of $0.356505 does not exceed the lower of the no-new-revenue tax rate or voter-approval tax rate, a public hearing is not required.
Senate Bill 2 Requires a Notice for the Meeting to Vote on the Tax Rate be published in the local newspaper, posted on the homepage of the City’s website, and ran on Channel 16.
Newspaper: Notice for the meeting to vote on the tax rate was published in the Galveston Daily News on Tuesday, September 1st. Senate Bill 2 requires the notice be published in a general circulation newspaper.
Web: The same notice was placed on the City’s website by Tuesday, September 1st, 7 days prior to the September 8th meeting. Senate Bill 2 requires the notice be published on the homepage continuously for at least seven days immediately before the date of the vote on the tax rate.
Television: The same notice was shown on Channel 16 by Tuesday, September 1st, 7 days prior to the September 8th meeting. The requirement is a 60-second notice at least 5 times per day between 7am and 9pm for at least seven days immediately before the date of the vote of the tax rate.
Total Tax Rate $0.356505
Debt Rate $0.056500
M&O Rate $0.300005
No-New-Revenue Rate $0.356505
Voter-Approval Rate $0.465935
Attachments:
1. Proposed Tax Rate Ordinance
2. Notice for the Meeting to Vote on Tax Rate