Title
Consider and take action on the 2025 proposed ad valorem tax rate (Fiscal Year 2026 - October 1, 2025 to September 30, 2026) of $0.36355. The property tax rate will be adopted as an action item at the September 9, 2025 Council meeting (Assistant City Manager - CFO)
Background:
To begin the tax rate setting process, the City Council is required to propose a tax rate. This agenda item is for that purpose. The rate is used to prepare the required notices including a notice for public hearings if needed. The property tax rate adopted on September 9, 2025 may be the same or less than the rate proposed by this item, but cannot be higher.
2024 Tax Rate (FY2025 Budget) $0.369000 / $100
2025 No-New-Revenue Tax Rate (FY2026 Budget) $0.363550 / $100
2025 Voter-Approval-Rate (FY2026 Budget) $0.464192 / $100
On July 15, City Council was presented the FY2026 proposed budget based on an estimated no-new-revenue tax rate of $0.369000 per $100 valuation based on estimated taxable values of $13.59 billion. On May 27, City Council approved a resolution to increase the Senior Exemption from $100,000 to $200,000 in the FY2026 property tax rate ordinance on September 9, 2025.
Based on estimated certified taxable values at $13.28 billion received in late July, and the effect of the increase in Senior Exemption, the no-new-revenue tax rate is $0.36355, and the voter-approval-rate is $0.464192. Staff recommends proposing a tax rate of $0.36355 per $100 valuation which funds the FY2026 Proposed Budget with a reduction of $2 million to the General Fund. A list of General Fund reductions totaling $2 million will be presented to City Council at the August 12 work session for consideration. The proposed ad valorem tax rate of $0.36355 does not exceed the no-new-revenue tax rate; therefore, a public hearing is not required. There will be another vote to formally adopt the final tax rate at the September 9, 2025 Council meeting.
If the Council proposes a rate th...
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