Title
Consider public testimony regarding, and an ordinance adopting the 2025 Property Tax Rate for the City of Round Rock. (First Reading) (Requires Two Readings)
Body
This ordinance sets the ad valorem tax rate for the tax year 2025 (for fiscal year 2026). The rate is based on the net taxable property value at January 1, 2025, to assess taxes for collection during FY 2026. The proposed tax rate for the 2025 tax year is $0.372000 per $100 valuation. The proposed rate will yield the tax revenues required to fund the FY 2026 Annual Budget as proposed and presented to Council on July 24, 2025.
The 2025 proposed tax rate of $0.372000 exceeds the no new revenue tax rate of $0.348065. The increase in the proposed rate over the no new revenue rate is to provide additional funding for new police officers and firefighters to maintain good public safety and pay debt service on voter approved general obligation bonds. Under this proposal, total annual City taxes on the median taxable home value of $395,240 will be $1,470.
STATE LAW REQUIRES THAT THE MOTION TO ADOPT THE ORDINANCE BE STATED AS FOLLOWS:
“I move that the property tax rate be increased by the adoption of the tax rate of $0.372000, which is effectively a 6.9 percent increase in the tax rate.”
Summary of Proposed Tax Rate:
Maintenance & Operations (M&O) portion $0.256757
Debt Portion $0.115243
Proposed 2025 Tax Rate $0.372000
2024 Tax Rate $0.360000
2025 No New Revenue Tax Rate $0.348065
2025 Voter Approval Tax Rate $0.372075
State law further requires that a tax rate above the no new revenue tax rate requires a 60% approval by the governing body. For the City of Round Rock, that means five of seven council members must vote yes to approve this item.
If the ordinance sets a tax...
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