New Braunfels City Council members on Monday postponed action to adopt the fiscal year 2021-22 budget, tax rate and plan of municipal services.
Council members were set to consider the second and final reading adopting the $322.87 million proposal and tax rate. However, Jared Werner, the city’s chief financial officer, told council members that while preparing for public hearings on the budget and tax rate, he noticed that there was critical language omitted in the public notice that was published, prompting the need to delay action on the items.
“The information that was omitted is required (by the state tax code),” Werner said.
Werner said the city would repost a public notice on the proposed budget and tax rate on Friday in the Herald-Zeitung, and the council would hold a second and final public hearing on the proposals on Sept. 27.
After that public hearing, council members are expected to consider adopting the budget and a property tax rate of 47.5376 cents per $100 assessed property valuation, a reduction of about 0.8 cents from the current tax rate of 48.32 cents.
The proposed rate is higher than the 2021 no-new-revenue tax rate, previously known as the effective tax rate, which is 44.9967 cents. The voter approval tax rate is 47.5376 cents.
The proposed rate for operations and maintenance, the city’s primary operating fund, is 24.7376 cents, entirely driven by the reduced voter approval threshold from 8% to 3.5%.
Senate Bill 2, passed by state lawmakers in 2019, prevents public entities from raising tax rates by more than 3.5% annually without voter approval.
The proposed interest and sinking rate, used for debt service, remains the same at 22.80 cents.
This budget will raise more total property taxes than last year’s budget by $2,709,337 or 6.4%, and of that amount, $1,339,530 is tax revenue to be raised from new property added to the tax roll this year.
The new fiscal year begins Oct. 1.