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Public Hearing: Consideration of an Ordinance Adopting the FY 2024-25 Tax Rate.
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ADMINISTRATIVE COMMENTS:
In accordance with state law, a public hearing is being held on the proposed tax rate for the 2024 tax year. Section 26.05(d) of the Texas Property Tax Code requires a governing body to hold a public hearing to adopt a tax rate for the current tax year if the proposed rate exceeds the lower of the voter-approval or no-new-revenue rate. The proposed tax rate was recommended by City Council at the budget workshop held on August 10, 2024. The total tax rate proposed for FY 2024-2025 is $0.422435. This is an increase of $0.003356 from the prior year rate of $0.419079. The proposed tax rate exceeds the no-new-revenue rate of $0.408408 by 3.43 percent but does not exceed the voter-approval rate of $0.422435. Since the proposed rate exceeds the no-new-revenue rate, specific language is required by ordinance, the vote on this ordinance must be a record vote and approved by at least 60 percent of the members of the governing body. For the City of Lewisville, this would equal at least five voting members. The motion to adopt the ordinance must be made using specific language as found in the recommendation below.
RECOMMENDATION:
That City Council approve the ordinance adopting the FY2024-25 tax rate with the following motion: “I move that the property tax rate be increased by the adoption of a tax rate of $0.422435, which is effectively a 3.43 percent increase in the tax rate.”