Consider action to adopt a resolution calling for a public hearing on the Fiscal Year 2027 Proposed Budget and tax rate for Tuesday, September 15, 2026, and to consider approval of a maximum tax rate of $0.867875 for Fiscal Year 2027.

Staff Report & Agenda Item Details

Truth-in-taxation is a concept embodied in the Texas Constitution and the Tax Code that requires local taxing units to make taxpayers aware of tax rate proposals. The City Council must hold a record vote to set the proposed tax rate (Tex. Tax Code §§26.06(c) and 26.061) . Subsequently, if the approved proposed tax rate exceeds the lower of the no-new-revenue rate or voter-approval rate, the governing body must hold a public hearing prior to the adoption of the tax rate (Tex. Tax Code §26.06(a)) . Notices of the tax rate hearing must include the proposed tax rate and the names of all members of the governing body, showing how each voted on the proposed tax rate and indicating any absences during the vote on the proposed tax rate. (Tex. Tax. Code §§ 26.06(b-1), (b-2), (b-3) and 26.061(b)) Additionally, a hearing on the proposed budget is required to be held each year before the adoption of the budget, which adoption must occur prior to adoption of the tax rate and the tax levy (Tex. Local Gov’t Code §§102.006(b), 102.009) . Further, the City Council must take a separate ratification vote to adopt any budget that will raise total property tax revenue. (Tex. Local Govt. Code § 102.007(c)). The purpose of the proposed rate is to provide a “ceiling” – or the maximum rate – the Council will consider adopting. The Council is not required to adopt this rate on September 16, 2026.

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 9.3/10). 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).