Council to consider 2.3 percent decrease in property tax rate

The City Council is scheduled to hold public hearings Tuesday to gather citizen input on the city manager’s proposed $172.6 million budget for the upcoming fiscal year along with a recommended 2.3 percent decrease in the city’s property tax rate.

The council is also scheduled to vote on the first readings of the budget and proposed tax rate ordinances later in Tuesday’s meeting.

The ordinances, if finally passed Aug. 25, would lower the ad valorem tax from $.5201 per $100 assessed valuation to $.5082. This is slightly above the $.5065 figure Finance Director Perwez A. Moheet predicted during the July 31 unveiling of the city manager’s budget proposal. Of course, the council could lower the rate even further, but any additional reductions would have to be accompanied by a corresponding reduction in expenditures and since so much of this budget is devoted to infrastructure improvements near and dear to the hearts of council members and their constituents any reductions could be (1) difficult to find and (2) even more difficult to gain majority approval from council members.

The reduced property tax rate also will not translate into lower property tax bills because the Hays Central Appraisal District’s assessed valuations for properties in Kyle were 14.1 percent higher this year than last.

The Hays CISD, which accounts for the biggest chunk of a property owner’s tax bill, has yet to decide on how it plans to adjust its current tax rate of $1.4037 per $100 valuation for the next fiscal year.

Citizens can read the proposed budget, amendments already approved by council to that budget and other supporting budget documents here. The public hearings on the budget are items 5 and 6 on Tuesday’s agenda, which means they should take place shortly after the council convenes at 7 p.m.