Tuesday, September 10, 2024
During its regularly scheduled meeting Aug. 6, the Granbury City Council unanimously voted to propose a property tax rate of $0.3850 per $100 valuation — the same rate as last year.
On July 23, the city received its Certified Appraisal Roll from the Hood Central Appraisal District, revealing a certified net taxable property value of approximately $2.78 billion — an increase of $69.74 million, or 3%, from preliminary valuations. This growth reflects both increased property values and new development within the city.
Finance Director Eva Gregory addressed the council during the meeting Tuesday and explained the implications of several tax rates that were calculated by the Hood Central Appraisal District.
The no-new-revenue tax rate, which allows the city to collect the same amount of property tax revenue as last year, stands at $0.393736 per $100 valuation. The voter-approval tax rate, which requires voter consent for any rate exceeding this figure, is set at $0.439924. The proposed rate of $0.3850 falls below both rates, allowing the council to proceed without a public hearing, as mandated by Senate Bill 2.
Gregory said that by adopting a rate lower than the voter-approval tax rate, the city can also bank any unused amounts below the unused increment rate for up to three years, which will provide greater flexibility for future tax rate adjustments. The unused increment rate is the three-year rolling sum of the difference between the adopted tax rate and voter-approval rate, which is $0.718077 for 2024.
The city also had the option to adopt the de minimis rate of $0.448527, intended to provide smaller taxing units with relief from the 3.5% voter-approval tax rate. This rate, introduced under Senate Bill 2, allows smaller cities to adopt a tax rate that can generate an additional $500,000 in property tax revenue compared to the previous year. However, the council chose to maintain the current rate instead of pursuing this alternative.
"I might reiterate, the $0.3850 is below the no-new-revenue tax rate of %.03937, so we're proud,” City Manager Chris Coffman said. “If you want to adopt a rate that exceeds that, now's the time to speak. There's plenty of streets to pave and infrastructure to rebuild.”
“If we do $0.3850 it's the same as last year, and considerably lower than all these other options that we have,” Place 3 council member Bruce Wadley said. “All the other options that are available to us are higher than that. If we adopt the 38-and-a-half, then we stay at the same level as last year.”
“Yes, and we do not have to have a public hearing,” Gregory added.
The council then unanimously voted to adopt the proposed tax rate of $0.3850 per $100 valuation, and to place the item on the agenda for the Sept. 3 council meeting.
The notice of the 2024 property tax rate along with the notice provision for the meeting to vote on the proposed tax rate is scheduled to be published in the Hood County News Aug. 17 edition and will be posted on the city's website.
A public hearing will also be held Sept. 3 regarding the city’s proposed annual operating budget for 2024-2025.
