Adoption of the Ad Valorem Tax Rate for Fiscal Year 2027

Staff Report & Agenda Item Details

<strong data-pasted="true"><em>First Reading and Public Hearing</em></strong><br><br><strong><span style="font-size: 16px;">THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.</span></strong><span style="font-size: 16px;"><br></span><strong><span style="font-size: 16px;"><br>THE TAX RATE WILL EFFECTIVELY BE RAISED BY 13.0 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $40.55.</span></strong><br><br>In conjunction with adopting the annual budget, the City Council is required to adopt an ad valorem tax rate. Chapter 26 of the Texas Property Tax Code requires taxing units to comply with "Truth-in-Taxation" laws when setting tax rates. This includes calculating a no-new-revenue tax rate, which provides for the same amount of property tax revenues collected as in the previous tax year, excluding amounts collected from newly developed property, and a voter-approval rate, which represents the highest rate the City could adopt without calling for a public vote. The calculated FY2027 no-new-revenue tax rate is $0.321034/$100 valuation, and the voter-approval rate is $0.352480/$100 valuation.<br><br>At $0.352480/$100 valuation, the proposed tax rate is higher than the no-new-revenue rate but not higher than the voter-approval rate. As required, the attached "Notice of Meeting to Vote on Tax Rate" was published in the <em>Fort Worth Star-Telegram</em> at least seven days prior to the September 1, 2026 Council Meeting, compliant with State Law and to communicate the City Council's intended tax rate to the public.<br><br>The current tax rate is $0.311931/$100 of valuation. The proposed tax rate increases the tax rate by $0.040549. The 14% residential homestead exemption remains to provide property tax relief for homeowners. This exemption reduces the taxable value of residential homesteads, lowering the overall tax burden on qualifying properties.

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 8.7/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).