Hearings set on proposed city tax rate
The City of Fredericksburg will hold two public hearings on a proposal to increase the property tax rate.
A tax rate of $0.232284 per $100 valuation has been proposed by the governing body of the City of Fredericksburg. This rate exceeds the effective tax rate. Therefore, in accordance with state law, two public hearings will be held by the city before adopting the proposed tax rate.
The first public hearing will be Wednesday, Sept. 11, at 6 p.m. at the City Hall Conference Room, located at 126 West Main St.
The second public hearing will be held on Monday, Sept. 16, at 6 p.m. at the Gillespie County Law Enforcement Center, located at 1601 East Main St.
The adoption of the tax rate and Fiscal Year 2020 budget will be voted on at a special city council meeting on Thursday, Sept. 19, at 6 p.m. at the City Hall Conference Room.
The governing body of the city proposes to use revenue attributable to the tax rate increase for the purpose of increases in capital expenditures and maintenance and operations cost to continue the existing quality of life and levels of service in public safety, streets and sidewalks, and parks and recreation for the citizens of Fredericksburg.
The following rate information is important to understand when discussing taxes, said a spokesman for the City of Fredericksburg.
Proposed tax rate — $0.232284 per $100.
Tax rate for 2019 — $0.225600 per $100
Effective tax rate — $0.207284 per $100
Rollback tax rate — $0.245636 per $100
The effective tax rate is the total tax rate needed to raise the same amount of property tax revenue for the city from the same properties in both the 2018 tax year and the 2019 tax year.
The rollback tax rate is the highest tax rate that the city may adopt before voters are entitled to petition for an election to limit the rate that may be approved to the rollback rate.
The average taxable value of a residence homestead in the city in 2019 was $303,512.
Based on the 2019 tax rate of $0.225600 per $100 of taxable value, the amount of taxes imposed in 2019 on the average home was $684.72.
The average taxable value of a residence homestead in the city this year is $332,686. If the governing body adopts the effective tax rate for this year of $0.207284 per $100 of taxable value, the amount of taxes imposed this year on the average home would be $689.60.
If the governing body adopts the proposed tax rate of $0.232284 per $100 of taxable value, the amount of taxes imposed this year on the average home would be $772.78.
Members of the public are encouraged to attend the hearings and express their views. The Proposed Budget for Fiscal Year 2020 can be found on the city’s website at https://www.fbgtx.org/127/Finance-Department.