taxable value. The market value is the value of property on the open market. The
appraised value is the market value, less caps or limitations on growth from one year to
the next. The taxable value is the market value, less appraised value and exemptions or
other reductions to determine the final amount eligible for tax payment. The tax-assessor
collector issues tax bills, processes payment, and refunds overpayment of property taxes.
The tax-assessor collector is also responsible for distributing tax revenue to taxing entities
and calculating refund liabilities for taxing entities. The tax payments are based on the
taxable values times the adopted tax rate. Staff will formally present Tax Year 2025/2026
certified property tax roll to City Council on August 1 during the Budget Work Session.
The preliminary tax rate included in the FY2026 proposed budget is $0.497841.
Ms. Lewis reviewed the historical certified market value and certified taxable value by
county for Tax Years 2022/2023, 2023/2024, and 2024/2025. She shared that the city's
total tax rate is comprised of the maintenance and operations (M&O) rate in the general
fund and the interest and sinking (I&S) rate in the debt service fund. The M&O is a
portion of the tax rate to pay for maintenance and operations. The I&S is a portion of the
tax rate to pay for tax supported debt.
Ms. Lewis provided an overview of the no new revenue rate, voter approval rate, and
adopted rate. The no new revenue rate is the tax rate that produces the same amount of
revenue as the prior year. The no new revenue rate excludes new construction values as
of January 1. The voter approval rate is the prior year's maintenance and operations
(M&O) rate, plus 3.5%, plus the interest and sinking (I&S) rate. The adopted rate is the
tax rate adopted by the entity. The No New Revenue Rate for FY2026 is $0.497841 and
the Voter Approval Rate is $0.511490. The preliminary tax rate included in the FY2026
proposed budget is $0.497841.
FUTURE AGENDA ITEM(S)
There were no requests from City Council for future agenda items.
EXECUTIVE SESSION
SECTION 551.071: CONSULTATION WITH THE CITY ATTORNEY TO SEEK
ADVICE ABOUT PENDING OR CONTEMPLATED LITIGATION OR ON A
1.
MATTER
IN
WHICH
THE
DUTY
OF
THE
ATTORNEY
TO
THE
GOVERNMENTAL BODY UNDER THE TEXAS DISCIPLINARY RULES OF
PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY
CONFLICTS WITH THE OPEN MEETINGS ACT - (1) CITY OF NORTH
RICHLAND HILLS V. MANUEL FINANCIAL NO. 2, LLC ET AL, CASE NO.
CC240015, MUNICIPAL COURT NO. 2, CITY OF NORTH RICHLAND HILLS,
TARRANT COUNTY, TEXAS; AND (2) CITY OF NORTH RICHLAND HILLS V.
MANUEL OLDSMOBILE, INC., CASE NO. CC240019, MUNICIPAL COURT
NO. 2, CITY OF NORTH RICHLAND HILLS, TARRANT COUNTY, TEXAS