Title
Consider and take action to reduce the proposed tax rate for the 2015 tax year in the amount that would reduce the projected tax revenue increase in the FY 2016 proposed budget to $1.4 million, the amount of tax revenue provided by properties added to the tax roll this year (Mayor Paulissen and Councilmember Long)
Background:
Approval of this item will reduce the proposed property tax increase in the FY 2016 budget to only the amount provided by new properties added to the tax roll.
The preliminary taxable values received from the Galveston and Harris County Appraisal Districts reflected significant increases in the taxable values in the City. The City Council took action in May to increase the homestead exemption from 14 - 20%. While this action did reduce the amount of property tax increase that the homeowners would see, at the current tax rate of $0.597, the average homeowner would still see a higher tax bill than last year due to the increase in the assessed value.
Staff is scheduled to bring forward the proposed tax rate for City Council consideration in late August or early September. By providing this direction at this time, the staff and Council can make the adjustments to the proposed budget that will be required within this revenue reduction of $2.4 million.
FUNDING
{ } NOT APPLICABLE
{ } Funds are available from Account #___________________________
{ } Requires Budget Amendment to transfer from Account #____________to Account # ___________________