In accordance with the Property Tax Code, the City must hold a public hearing on the proposed tax rate that exceeds the lower of the voter-approval tax rate or the no-new-revenue tax rate. The Property Tax Code requires only one public hearing if the proposed tax rate exceeds the lower of the no-new-revenue tax rate or the voter-approval tax rate. However, the City will hold two public hearings on the tax rate, with this first public hearing being the non-statutory, or courtesy, public hearing on the tax rate. The official Public Hearing will be held on September 15.

The City Council established the maximum proposed tax rate to be considered at $0.3895 per $100 of valuation on August 13th. This rate exceeds the no-new-revenue rate and requires the City to hold a public hearing on the tax rate. Only one public hearing is required per the Property Tax Code. The City will hold two public hearings to give taxpayers the opportunity to comment on the proposed tax rate. The maximum proposed tax rate of $0.3895 is greater than the City's current tax rate of $0.3576. Because the maximum proposed tax rate was set at $0.3895, the governing body will not consider a tax rate higher than this maximum rate. The City's proposed tax rate exceeds the No-New-Revenue tax rate and the Voter Approval Rate at 3.5%, but not the De Minimis Rate. The City published the proposed tax rate hearing notice in the Hays Free Press on Wednesday, August 19th, as required by the Tax Code.

Because the City of Buda’s population is under 30,000, state law permits the City to consider a tax rate higher than the standard 3.5% Voter-Approval Rate—up to an 8% threshold so long as it does not exceed the De Minimis Tax Rate. For FY 2027, the 8% Voter-Approval Rate of $0.3895 is also below the De Minimis Rate threshold of $0.3970. Therefore, adoption of the proposed rate would not trigger a petition from citizens nor an automatic election.

• Proposed Tax Rate - $0.3895 per $100 assessed valuation
• This is the first public hearing on the City's tax rate. The second public hearing will be held on September 15th.
• The reading of the ordinance to adopt the budget and tax rate will take place on September 15, 2026.

A tax rate of $0.3895 per $100 assessed valuation will generate a total of $ 12,515,717 in tax revenue to the City ($0.1081 M&O = $3,473,553 and $0.2814 I&S = $9,042,164)

None.

Hold a public hearing to provide the opportunity to comment on the proposed Fiscal Year 2027 tax rate.