Fredericksburg City Council on Monday night proposed a property tax rate of 24 cents (.240) per $100 valuation. That figure is a maximum proposed tax rate and may be lowered after the public has had a chance to hear more information and air their opinions in two public hearings on Aug. 24 and Aug. 31,
Fredericksburg City Council on Monday night proposed a property tax rate of 24 cents (.240) per $100 valuation.
That figure is a maximum proposed tax rate and may be lowered after the public has had a chance to hear more information and air their opinions in two public hearings on Aug. 24 and Aug. 31, said Kent Myers, city manager. Both hearings are set for 6 p.m. at City Hall.
“Today, we decided on a tax rate, which is not the one we finally settle on, but it is the maximum rate that we can settle on,” City Councilman Graham Pearson said. “The problem is right now we’re not dead sure on the numbers we’re getting from the county, so this can change.”
The proposed tax rate of .240 is slightly higher than the current tax rate of 23.13 cents (.2313) per $100 valuation, but falls under the calculated rollback tax rate of 24.35 (.2435) per $100 valuation.
Fredericksburg Director of Finance Laura Hollenbeak said the rollback and effective tax rates (ETR) were prepared by the Gillespie Central Appraisal District (GCAD).
“We have reviewed those and we agree with their calculations,” Hollenbeak said. “The effective tax rate has been calculated at .2203 (22.03 cents) per $100 of property value.”
The final vote on the tax rate, as well as approval of the final budget, are expected during the council’s Sept. 19 meeting.
FY 2016-2017 budget
Myers presented the fiscal year 2016-2017 budget, estimated at $43,713,288, to council.
This budget reflects a decrease of approximately $2.3 million compared to last year’s budget, due to land purchases and completed capital improvements.
Some major revisions to the budget included hiring new personnel.
“We have added two new positions: one is the historic preservation planner and the other is an IT specialist position,” Myers said. “And then council directed staff to add the major thoroughfare plan and the downtown parking plan to the budget.”
Council members also wanted staff to reduce the Lady Bird Johnson Golf Course deficit to $200,000, in anticipation that play can be increased at the golf course and an increase in player fees, Myers said.
Additional changes may be made to the budget before it’s finalized.
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