Members of the Gainesville City Council voted Tuesday evening, Aug. 6, on a proposed tax rate for the upcoming fiscal year.
The proposed rate of 70 cents per $100 of assessed property value was unanimously agreed upon. However, the city’s tax rate will not be officially adopted until after two required public hearings.
Public hearings are scheduled for 6:30 p.m. Tuesday, Aug. 20 and Tuesday, Sept. 3 at the Municipal Building, 200 S. Rusk St.
In 2018, members of the city council set the current rate at 72 cents per $100 of assessed value, according to archived Register reports. While that was lower than the previous year’s rate, it was projected to bring in more revenue due to increasing property values, so public hearings were required last year.
According to the city’s draft 2019-2020 budget, the new budget will raise $110,394 more in property taxes compared to last year’s budget, an increase of 1.46%. The property tax revenue to be raised from new property added to the tax roll this year is $168,753.
The 2019-2020 proposed tax rate is one cent more than the effective rate of 69 cents, the draft budget shows.
The effective rate is the tax rate needed to bring in the same tax revenue as the previous year.
Last year, the effective rate was 66 cents per $100 of assessed value — six cents lower than what city council adopted as the 2018-2019 rate.
Council members also agreed Tuesday to set a public hearing on the proposed 2019-2020 budget that, if approved, will go into effect Oct. 1. The public hearing is slated for 6:30 p.m. on Sept. 3, the same night as the final proposed tax rate public hearing.
The proposed 2019-2020 budget is $43.2 million, according to the city’s draft budget. The revised budget for the current fiscal year is $43.6 million.