HomeMy WebLinkAboutFY26 Proposed Tax RateFiscal Year 2026
Proposed Tax Rate
October 1, 2025 – September 30, 2026
August 7, 2025
1
1
Table of Contents
Items To Review
Tax Rate Background Information
Comparison of Assessed Value
FY26 Proposed Tax Rates
Effective Tax Revenue to the City
FY26 Important Budget Dates
Up Next
August 7, 2025
2
2
Tax Rate Background Information
The No New Revenue and Voter Approval Property Tax Rates have been received from Jefferson and Orange County tax assessors.
No New Revenue Tax Rate (Previously Effective Tax Rate)
The tax rate needed to generate the same amount of taxes as last year
Voter Approval Tax Rate (Previously Rollback Rate)
The highest tax rate a taxing unit can adopt without holding an election
New legislation in 2021 created a modification of formula used for the M&O rate
Change in maximum rate from 8% to 3.5% increase without requiring an automatic election
Certified Values have been received from the Appraisal Districts and reflect a 7.55% increase over last year.
Property Tax Revenues are expected to increase approximately 4.86% for operations.
Due to increase in property values, there is a decrease from the current tax rate of $0.626272 per $100.
August 7, 2025
3
3
Comparison of Assessed Value
Certified Certified Percentage
(in Billions) FY2025 FY2026 Inc/(Dec) Inc/(Dec)
Total Market Value $6,400 $6,884 $483 7.55%
Less Caps & Exemptions $1,960 $2,026 $065 3.36%
1st Taxable Value $4,440 $4,858 $418 9.40%
Minus Other Adjustments $ 249 $ 337 $ 88
Adj Taxable Value $4,191 $4,521 $330 7.86%
August 7, 2025
4
4
FY26 Proposed Tax Rates
Calculated: FY2025 FY2026 Inc/(Dec)
No-New Revenue Tax Rate .585995 .582863 (0.53%)
Voter Approved Tax Rate .626272 .615724 (1.68%)
Proposed:
M&O Rate .376099 .365624 (2.79%)
Debt Rate .250173 .250100 (0.03%)
Total Proposed Tax Rate .626272 .615724 (1.68%)
Homestead taxable value Tax Tax
FY2025 FY2026
$250,000 $1,567 $1,539
August 7, 2025
5
5
Effective Tax Revenue to the City
Truth in Taxation Taxable Worksheet Values:
(in billions) FY2025 FY2026 Inc/(Dec) %
Assessed Value $4.191 $4.521 $.330 7.86%
(in millions)
M&O Revenue $15.8 $16.5 $0.766 4.86%
Debt Revenue $10.4 $11.3 $0.821
Total Revenue $26.2 $27.8 $1.587M
August 7, 2025
6
6
FY26 Important Budget Dates
Aug 7 Thursday City Council Hold record vote on the proposed
tax rate via resolution
Aug 19 Tuesday City Council Proposed Budget Workshop
Aug 26 Tuesday City Council Proposed Budget Workshop
Sep 23 Tuesday Public Hearing on Tax Rate, Adopt Budget, Tax Roll and Tax Rate
August 7, 2025
7
7
Up Next…
Hold record vote on the proposed tax rate via resolution, set public comment hearing on proposed Fiscal Year 2025-2026 Budget
August 7, 2025
8
8