The Texas Property Tax Code requires that when a proposed tax rate exceeds the "no-new-revenue tax rate", the taxing unit's governing body must vote on a proposal to consider a tax increase. Additionally, the governing body must vote to place a proposal to adopt the rate on the agenda of a future meeting as an action item. The vote does not bind the governing body to the preliminary tax rate set; however, should the Town Council at a later date consider a tax rate other than the set preliminary tax rate, it cannot consider a higher tax rate.

The attached 2024 Tax Calculation Worksheet details the computation of the Town's "no-new-revenue tax rate" and "voter-approval tax rate". The Town's "no-new-revenue tax rate" is $0.198103, and the "voter-approval tax rate" is $0.208550 per $100 taxable assessed valuation.

The staff recommends that the Town Council vote to set the preliminary tax rate of $0.208550 per $100 valuation, and place a proposal to adopt a property tax rate of $0.208550 per $100 taxable assessed value on the agenda for the Town Council meeting on Tuesday, August 13, 2024.

The staff further recommends scheduling a public hearing on the preliminary tax rate at 8:00 a.m. on Tuesday, August 13, 2024.